28 Aug. 1801

E

Polit. Economy

Method

Finance

5

92

Borrowing money to defray War expenses (operations or preparations) takes from

pecuniary capital thence from real capital thence from growing wealth in the

amount of the sum so raised:- minus the amount of mercantile profit upon such

part of the expence as consists of purchased articles.

Repaying money formerly borrowed for war or other expences adds to pecuniary

capital - thence to real capital - thence to growing wealth to the amount of the

money so discharged /employ'd in such repayment or discharge/ - deducting such

part, if any, as is exported without return to foreign countries; which is the

case with such part as is exported by the proprietor to be employ'd abroad by

him or on his account, without being re-imported that or the profit made by it.

By the mere discharge of a million worth of debt as much or more is therefore

done towards the encrease of wealth as by a million given in the way of bounties

for the encouragement of this or that particular branch of trade.

Those who in the one case receive the amount of the debts respectively due to

them, give up the future interest, and the rest of the community is exonerated

from the payment of it: those who in the other case receive the million in the

score of Bounty, give up nothing in return for it.