24 Aug. 1801

C2

Polit. Economy

Method

III Non Agenda.

Encouragement

72

7

11

Note to last page

It may however happen in some instances that a branch of industry which if

pursued would be more profitable than any other requires a mass of capital of

such magnitude, as individuals separately taken or in small numbers are not able

to raise. But where this happens it can only be in consequence of some positive

regulation of government, which in contemplation of the mischief apprehended

from over grown masses of capital in certain cases forbids limits or endeavours

/seeks/ to limit the quantity of capital that shall be applied under one

management to any branch of industry, by limiting the number of individuals who

shall be allowed to contribute to it, or by not suffering a man to embark in

trade any part of his property without embarking the whole. In giving an

encouragement of this sort /in this shape/, government does little or nothing

more than remove discouragements /obstacles/ of its own creating, and the good

it does if any is done at no expence.

When by the assistance /exertions of/ government a mass of capital which

otherwise would have gone into a branch of productive industry producing but 15

per Cent is directed into a branch producing 16 per Cent, the profit by those

exertions is not the 16 per Cent, but the difference between that and the 15 per

Cent, viz: the one per cent. It is for the 16 per cent however and not the one

percent that credit is commonly taken by those statesmen who go to market for

glory with the merit of affording encouragement to trade: and if 10