JB_017_195.xml

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.}

JB_017_197.xml

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}

JB_017_273.xml

Title: [24 Aug. 1801 C2 Polit. Economy]

Description: 24 Aug. 1801

C2

Polit. Economy

Method

III Non Agenda

Encouragement

74

9

13

Divide productive industry into any number of branches, for instance four as

with A. /Adam/ Smith: husbandry including mines and fishing, manufacture for

home consumption - manufacture for foreign consumption, and carrying trade Every

encouragement afforded to any one of the four branches is pro tanto /operates to

the amount in/ discouragement of all the others. If however the encouragement

were /be/ given in the shape of capital granted or lent, it will make an

addition say ,100,000 to the amount of it to the aggregate of real capital, and

thence to the amount of a percentage upon that capital to the annual aggregate

of growing wealth. But the addition thus made to wealth will depend for its

magnitude not on the choice made of the branch of industry, unless as to an

extremely minute part of it, but on the addition made to capital /the productive

capital of the community/ at the expence of its income. A mode that would bid as

fair for disposing of the money to the best advantage would be to let a certain

number of commercial men draw lots for the money with liberty to apply it each

in his own way. But what again would contribute in an equal way /degree/ to the

same end is, if the Nation has a debt, to employ the same sum in the buying in

or paying off a portion of the debt, for in that case the receivers of the money

in lieu of Annuities would employ each of them his money in some branch of

industry in his own way of course under his mere[?] management or that of

somebody to whom he lends the money. The first course requires /is attended

with/ expence,