date

31 Oct. 1801 + A Polit. Economy
31 Oct. 1801

+ A

Polit. Economy

Method

Indication of the Indirect Income-Tax resulting from Encrease of Money.

In Britain. money is about ,72,000,000, mean (Ao 1801) about ,216 000 000

(72:216::1:3.) Each million added to money, adds therefore three million for

ever to pecuniary income and this (setting aside the 15 per Cent for ever

(,150,000) for profit on the million, if employ'd in the shape of capital)

without addition to real income. If every year ,2,000,000 be added to money,

plus ,300 000 for an equivalent to the addition made as above to real wealth, in

36 years (Ao 1837) the nominal or pecuniary amount of a mass of real income

equal to the amount of 1801 will be doubled i:e: become ,432,000,000: to which

will be added ,10 800 000 for an equivalent to the intermediate additions to

real wealth (,300,000 x 36) But the ,432 000 000 of 1837 being worth no more

than the ,216 000 000 of 1801, each ,10 of the ,432 000 000 will be worth but

,50 of the ,216 000 000: that is the income of each fixed-incomist will have

been subjected to an indirect income-tax of 50 per Cent: the King's ,900,000

will be reduced to ,450,000. He whose pecuniary income in 1837 is double what it

is in 1801 will in point of wealth be neither a gainer, nor loser, by the

change. Not so in point of comfort. For, by so much as he is a gainer in wealth

in the one way, by so much he is a loser in the other: and by the nature and

constitution of the human frame, sum for sum, enjoyment from gain is never equal

to suffering from loss.}
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  • Title: [Polit Econ. Method & Leading Features]
    Description: Polit Econ. Method & Leading Features

    6

    Note continued

    of real income, equal to the amount of 1801, will be doubled i:e: become

    ,432,000,000: to which will be added ,10,800,000 for an equivalent to the

    intermediate addition to real wealth (,300,000 x 36). But the ,432,000,000 of

    1837 being worth no more than the ,216,000,000 of 1801, each ,100 of the

    ,432,000,000 will be worth but ,50 of the ,216,000,000: that is the income of

    each fixed-incomist will, by that time, have been subjected to an indirect

    income tax of 50 per cent: (the King's ,900,000 will be reduced to ,450,000.)

    He, whose pecuniary income in 1837 is double what it is in 1801 will in point of

    wealth be neither a gainer, nor a loser, by the change. Not so in point of

    comfort. For, by so much as he is against in wealth in the one way, by so much

    he is a loser in the other: and, by the nature and constitution of the human

    frame, sum for sum, enjoyment from gain is never equal to suffering from loss.-

    End of Note

    II. Narrow Measures.

    V. Particular Encouragements to particular sources of wealth.

    II. Narrow or Particular Measures: applying to particular sources of wealth.-

    Wealth being the produce of capital (which is no more than labour, employed

    through the intervention of money (pecuniary capital) or otherwise) and capital

    being limited (for labour at least is limited)
  • Title: [31st Octr 180[...?] Polit Econ. Method]
    Description: 31st Octr 180[...?]

    Polit Econ. Method & Leading Features

    Ch.1. Method

    5

    61

    IV. Encreasing Land.

    not diminished by it, but increased. {In the British Empire at least it is a

    principle - that all expences in establishments, civil, military, naval - and

    occasional wars, are to be borne by the Mother Country.-} The capital employed

    in the cultivation of the Colonies by the Mother Country is so much sent out of

    it, without adequate return. Bryan Edwards, even in magnifying the utility of

    colonies, makes the rate of profit upon capital so employed but 7 per cent: the

    common calculation gives, for the profit on capital employ'd within the Mother

    Country, 15 per cent. Whatever capital is bestowed upon this employment is so

    much taken from other more lucrative ones.

    Note

    Encrease of Money.

    Income-Tax, the effect of it.

    b Note The following is an Indication of the Indirect Income Tax, resulting from

    Increase of Money.-

    In Britain, Money is about 72,000,000; income (Ao 1801) about ,216,000,000

    [72:216::1:3] Each million added to money, adds therefore three million for ever

    to pecuniary Income; and thus (setting aside the 15 per cent for ever (,150,000)

    for profit on the million if employed in the shape of capital) without addition

    to real income - if, in every year, ,2,000,000 be added to money, (plus ,300,000

    for an equivalent to the addition made as above to real wealth) in 36 Years (Ao

    1837) the nominal or pecuniary amount of a mass
  • Title: [29 Oct. 1801 Polit. Economy]
    Description: 29 Oct. 1801

    Polit. Economy

    Non Facienda

    2 Encreasing Money

    4

    6

    {2. If the fresh money on the occasion of the first employment or expenditure

    made of it is employ'd in purchases the inordinate effect of which is not to

    make any immediate addition to the mass of really productive capital, it then

    makes no addition to the growing mass of real wealth.

    In this case there is the usurious interest as in the former - the interest of

    300 per Cent - but no profit made by it. but the profit altogether wanting. The

    3 million a year income-tax stands pure and neat: the ,150,000 deduction has no

    place here.}

    {From the amount of this depretiation and this interest is to be deducted on a

    strict reckoning the sum[?] equivalent for the goods produced in each year by

    the addition thus made to the mass of real capital: say 15 per Cent for ever

    upon the million so employ'd. But this deduction is so small as in large[?]

    sums[?] to be scarce worth bringing to account. From /Upon/ the 3 million a year

    it amounts to but ,150,000.}