30 Oct 1801

A

Political Economy

Method

3

{Non-Agenda - I. Broad Measures. I Narrow Measures

I. Broad Measures- applying to all sources of wealth without distinction

I. Forced Frugality: Adding to National Capital (real capital) by money raised

on purpose: which must be by taxes. Of all ineligible measures, this is the

least ineligible, and most effective. The objection is that it is a defalcation

from individual property, without necessity.

When National Debt is paid off, it produces this effect, without the objection.

The money produced by taxes (imposed principally on income) is, in the buying in

or paying off of the Government Annuities, in which the debt consists, put into

the hands of the expelled Annuitants, who, to make it afford them an income as

before must employ it themselves in the shape of capital, or lend it to others

who will employ it in that shape.

II. Encreasing money: an indirect Income tax. Labour not money is the real

source of wealth All hands, being employ'd and employ'd in the most advantageous

manner, wealth could admitt of no further encrease: but money could be

encreasable ad infinitum.[Marginal note:] ? on Fixed-incomists. III

Reducing interest: viz: the lawful rate of interest on money borrowed by

individuals of individuals. A direct and (to the state) unproductive income-tax,

on those whose source of income arises out of a mass of money lent out at

interest. In Ireland, Ao 1788 or thereabouts this was proposed in the House of

Commons as a means of encreasing wealth, but rejected after a great struggle.

IV. Encreasing Land: viz: by Colonization: eligible when there is a prospect of

a deficiency of land with reference to population: ineligible in every other

point of view. The taxes borne by the Mother Country are not diminished by it,

but encreased. In the British Empire at least it is a principle that all

expences - establishments civil military, naval - and occasional wars - are to

be borne by the Mother Country. The capital employ'd 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

rati of profit upon capital so employ'd but 7 per Cent: the common calculation

gives for 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.