JB_017_261.xml

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

JB_017_165.xml

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

Description: 31 Oct. 1801

+ A

Polit. Economy

Method

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.}

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}