date

24 Aug. 1801 Polit. Economy
24 Aug. 1801

Polit. Economy

Method

III. Non Agenda

1 Money

2

6

{divides itself as between the hoarded mass /portion/ and the mass /portion/ in

circulation in the same proportion as the pre-existing mass is so divided, it

follows that for every ,100 added thus to capital, and producing issues or

creates and to the employer of it in a commercial way or to the employer

borrowing it and the creator lending it between them, a perpetual tax of ,300 a

year is imposed upon the class on whom the burthen of the tax falls, viz: the

class of possessors of fixed income, deducting only /subject to a deduction from

this ,300 a year, to the amount of/ ,15 being the equivalent in money for the

fresh goods produced by the employment of the ,100 of fresh capital, where the

money is employ'd in a commercial way, and but without any deduction, where it

is employ'd in a non-commercial way.

When the addition made to money is made by metallic money, no such addition to

real wealth no such deduction from the amount of the indirect income tax takes

place. If imported, being imported by commercial hands, it is employ'd in a

certain proportion in the shape of capital: but if instead of the ,100 of money

or the materials of money property to the same value had been imported in the

shape of vendible commodities, those commodities would on being sold put into

the hands of the seller ,100 in the shape of money, to be employ'd by him as

capital, as much as if the value had been imported in that shape: the only

difference is that in the one case the money employ'd by him as capital is money

belonging to th old stock, in the other case money added to the old stock.}
Similar Items
  • 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[?]

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  • Title: [24 Aug. 1801 Polit. Economy]
    Description: 24 Aug. 1801

    Polit. Economy

    Method

    III. Non Agenda

    1 Money

    2

    6

    {individuals, each to double his money in the same time: neither the aggregate of

    real wealth, nor any man's share in it would thereby receive any encrease. Every

    encrease of money by paper money, produces a correspondent depretiation in the

    value of the pre-existing mass of money, and operates thereby as an indirect tax

    upon pecuniary income; a tax the benefit of which is reaped by the issuer, and

    the burthen borne by the possessors of what is called fixed income. If in

    issuing it, he employs it in a non-commercial way, i:e: pays it away as a man

    not in trade pays away the money by the spending of which he is said to spend

    his income -ploy'd in expenditure of pecuniary income, the profit is all his

    own, and it adds nothing to the mass of real wealth: if in issuing it, he

    employs it in a commercial way,: viz. as money is employ'd in the shape of

    capital, i:e: in making those purchases of things and labour of which real

    productive capital is composed, the profit in this case too is all his own, he

    adds to the national stock of present wealth (real wealth) to the amount of that

    capital, and to growing wealth to the amount of the current rate of gross profit

    upon stock or capital: if in issuing it he lends it to another who employs it

    /by whom it is employ'd/ in the shape of capital as above, the borrower gets

    profit upon stock deducting interest, and the lender interest, and the addition

    to real wealth is as before.

    In Britain the whole mass of pecuniary income may be about three times the mass

    of money in existence, of which a part only, though the greater part, by passing

    in the course of the year through a number of hands, greater by some number, but

    not a great number, than those, constitutes the above mass of pecuniary income.

    If then each added mass}
  • Title: [29 Aug. 1801 Polit. Economy]
    Description: 29 Aug. 1801

    Polit. Economy

    E

    9

    Method

    Finances

    Taxation

    Foreign capital obtained on loans is doubly useful: at the time of borrowing

    /contracting debt/, by diminishing the /that/ consumption of capital, by which

    the mass of growing wealth is diminished: at the time of paying off debt, by

    diminishing that inordinate encrease of capital, by which as if it were by an

    unproductive income tax the income of money'd men is reduced.(a)

    Ever since the existence of Government Annuities, men have cried out against the

    Annuitants, especially such of them as are foreigners as so many drones and

    bloodsuckers: with as much reason might they cry out against the Baker they deal

    with as a bloodsucker for taking money for his bread.

    The quantity of foreign capital that in an unascertainable but always a very

    considerable quantity has always been sent by foreigners for the purchase of

    British Government Annuities has been a fruit and evidence of probity and good

    faith.

    Note

    (a) If however the quantity of capital employ'd by foreigners in the purchase of

    British Government Annuities has been such as to produce an influx of the

    materials of money, and thence of money to such an amount as to overballance the

    increase in the same time in the mass of vendible commodities, and thereby to

    produce encrease of prices depretiation of money, and indirect income tax, so

    much as operates in that character does thereby more harm than good. But without

    the addition to money by paper money, addition of this sort would hardly have

    taken place.