date

29 Oct. 1801 Polit. Economy
29 Oct. 1801

Polit. Economy

Non Facienda

2 Encreasing Money

3

5

{ In this case the operation /expedient measure/ coincides with the one already

reprobated - the making encreasing addition to the mass of national capital

/real capital/ by money raised by taxes. The difference is that the mode in

which the money is raised, is raised on terms beyond comparison more

disadvantageous - disadvantageous to a degree of usuriousness much beyond any

thing ever exemplified under that name - money raised at an interest of 300 per

cent payable for ever by the possessors of fixed incomes.

From the amount of this depretiation, and this interest, is to be /would be/

deducted, on a strict reckoning, an 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 to be

scarce worth bringing to account. Upon the 3 million a year it amounts to but

,150,000.}
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  • 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.}
  • 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

    2

    4

    { In this case the effect of such depretiation, is to produce, (as explained

    elsewhere) an indirect unproductive income tax on fixed incomes, to the annual

    amount of x[?] times the amount of the fresh money so introduced: x being as the

    aggregate of the sum composes the annual income of individuals to the sum of

    fresh money so introduced.

    Call the aggregate mass of money in circulation 72 millions: and the aggregate

    of national income 216 millions: 72 x 3 = 216: and let the fresh money so

    introduced in the compass /course/ of a year be one million. The effect of this

    one million of fresh money so introduced is to add to the 216 million, being the

    money or pecuniary power representative of the aggregate amount of the national

    income 3 million, making together 219 million; while the real income it self,

    the vendible /the mass of consumable and other/ articles of all sorts to be had

    for the money is not encreased, any otherwise than by and in proportion to the

    addition made to the mass of real and really productive capital, by the first

    expenditure of the money, as above.

    The amount of this tax is drawn back as it were before hand by those who receive

    a share of the fresh money equal to the amount of the depretiation: these

    receive before hand a compensation (adequate in money at least howsoever it may

    in regard to feelings) to their loss by the indirect tax. On those who receive

    no share of the fresh addition to money - on those whose sole income consists in

    an unencreasing sum of money, it bears with undiminished pressure.}