date

29 Oct. 1801 Polit. Economy
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.}
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  • Title: [29 Oct. 1801 Polit. Economy]
    Description: 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.}
  • Title: [31st Octr 180[...?] Polit Econ. Method]
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    Polit Econ. Method & Leading Features

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    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: [31 Oct. 1801 + A Polit. Economy]
    Description: 31 Oct. 1801

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    Polit. Economy

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    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.}