date

24 Aug. 1801 C2 Polit. Economy
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,
Similar Items
  • Title: [24 Aug. 1801 {C2} Section 9.]
    Description: 24 Aug. 1801

    {C2} Section 9.

    Polit. Economy

    Method D

    Non Agenda.

    II Narrow Measures

    4 Particulars

    v. Encouragement

    70

    5

    {2.} 5. Giving birth or encrease to this or that particular branch of {wealth

    or} productive industry {industry /labour/ productive of wealth} under the

    notion of giving an encrease thereby to the aggregate of the national mass of

    wealth.

    The aggregate mass of money employ'd in the shape of productive capital will in

    all branches of industry taken together be productive of /were[?]/ so much per

    Cent upon the amount of it say 15 per Cent, or more or less, according to the

    average rate of profit upon stock in the country in question, which is in[?] the

    inverse ratio of that portion of the mass of money in circulation, which is

    employ'd within the year in the shape of productive capital to that portion of

    it which is employ'd as money is employ'd by a man who is said to spend his

    income, {Note. each being multiplied by the number of times it has been employ'd

    within the year in making purchases constitutive of ultimate prices. /the

    purchases of which ultimate prices are composed./

    If in one of those branches the rate of profit is greater than in others in the

    one 16 for example in the others but 15, the greater the portion of capital

    employ'd in this most productive branch in preference to others less productive,

    the greater the annual addition to the aggregate mass of natural wealth. But, so

    long as they do but know which of all the branches open to them is most
  • Title: [24 Aug. 1801 C2 Polit. Economy]
    Description: 24 Aug. 1801

    C2

    Polit. Economy

    Method

    III Non Agenda.

    Encouragement

    71

    6

    10

    productive, individuals that have unengaged pecuniary capital to employ are

    already as compleatly disposed to engage /employ/ it in this most profitable

    branch as any thing that can be done /be employ'd/ by government can make

    them.b. (a) {Encouragement afforded by government to this or that particular

    branch is therefore either useless or mischievous or useless: useless if it be

    more productive than any other, mischievous, if it be not. /in the opposite

    case./

    Inclination, power, knowledge: inclination to apply himself to the most

    profitable of all branches is what the individual never can be in want of: power

    depends principally /generally/ upon money, which can not be given to one

    individual without being taken from others : knowledge as to what branch of

    industry would be most profitable to him is what in general each individual is

    apt to be possessed of in a greater degree than government: though if government

    through the industry or /and/ sagacity of any of its agents happens in this or

    that particular case to have more knowledge about the matter than the

    individuals who have the choice to make, there can be no harm in the

    communication /diffusion/ of it at the expense of government, because by even

    the mere advance of a minute /an impalpable/ portion of money well applied, an

    infinite stock /an infinity/ of useful knowledge may be diffused.}

    [(a)] See Note next page
  • 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.