29 Oct 1801

Polit. Economy

Non-Facienda

2. Encreasing Money

2

4

{ In this case the effect of such depretiation, is to produce, (as explained

elsewhere) an indirect unproductive income tax on fixed incomes, to the annual

amount of x[?] times the amount of the fresh money so introduced: x being as the

aggregate of the sum composes the annual income of individuals to the sum of

fresh money so introduced.

Call the aggregate mass of money in circulation 72 millions: and the aggregate

of national income 216 millions: 72 x 3 = 216: and let the fresh money so

introduced in the compass /course/ of a year be one million. The effect of this

one million of fresh money so introduced is to add to the 216 million, being the

money or pecuniary power representative of the aggregate amount of the national

income 3 million, making together 219 million; while the real income it self,

the vendible /the mass of consumable and other/ articles of all sorts to be had

for the money is not encreased, any otherwise than by and in proportion to the

addition made to the mass of real and really productive capital, by the first

expenditure of the money, as above.

The amount of this tax is drawn back as it were before hand by those who receive

a share of the fresh money equal to the amount of the depretiation: these

receive before hand a compensation (adequate in money at least howsoever it may

in regard to feelings) to their loss by the indirect tax. On those who receive

no share of the fresh addition to money - on those whose sole income consists in

an unencreasing sum of money, it bears with undiminished pressure.}