19 Dec r 1800

Paper Mischief

Ch. < > Government Hoard

2

Defalcation like addition - defalcation from the source in question as from any other, defalcation as well as addition - may be considered as before with reference to addition to wealth - addition to prices - and influence in commercial credit. Let us begin with wealth.

1. That a defalcation produced /made/ in this or any other way from the mass of money in circulation should in any case be productive of any addition to the mass of wealth is seen to be impossible at the first word.

2. If, at the commencement /outset/ of the hoarding plan, the capacity for /national stock of/ labour happens to be fully employed, and employed to the best advantage, or if in respect of the encrease of wealth though not employd to the best advantage things are so circumstanced that no addition to the mass of money, or no addition employd in the shape of productive capital could have the effect of causing the stock of capacity for labour to be employd to any greater advantage, and if at this time the ratio of money to wealth and consequently the amount of prices is on the encrease, a defalcation to any amount short of /not exceeding/ that of the supposed encrease of the stock of money can not be productive of any defalcation from the growing mass of wealth.

3. In any other than this last-supposed case, the defalcation thus made from the mass of money will be productive of a defalcation to certain degree from the mass of wealth. Of the amount of this latter defalcation Let us endeavour to form an estimate according to /under/ the different modifications of which the case is susceptible.