8 March 1804

Wealth I. 2 a

2

HK Political Economy - Non-Facienda - 2. Encreasing Money.

1. If money at its first introduction be employed in making an addition to

productive capital, it is so much added to real wealth. p.1.

2. But by this addition the value of the whole mass of money is diminished, and

it is worth no more than the whole mass of vendible articles, as before. p.1.

3. The effect of this depretiation is to impose a virtual Income Tax on fixed

Incomists. p.2.

4. Circulating money 72 millions - national Income 216 millions - in this state

of things the effect of the introduction of one million into the circulation

would be to add 3 millions to the national income, while the quantity of

vendible articles would remain the same. p.2.

5. The amount of the tax is diminished by the compensation to those to whom the

money immediately passes. p.2.

6. By this operation an addition is made to national capital by raising money at

300 PrCt.

7. From this depretiation is to be deducted about 15 PrCt for goods produced by

capital - amounting to ,150,000 out of the 3 million. p.3.

8. 2. If a mass of money at its first introduction is not employed in making an

addition to capital it then makes no addition to wealth. p.4.

9. In this case as in the former there is the 300 PrCt interest, paid tho'

without any profit being made upon it. p.4.

1. Non-agenda.

1. Adding to money to add to real wealth.

2. Encouraging a particular branch of wealth under the idea of increasing the

aggregate wealth. p.1.

2. Pecuniary wealth always being equal to real wealth, the effect of an addition

to money is to depretiate the existing stock of it. p.1.

3. Every issue of paper money is therefore a tax upon fixed incomists, and the

effect of it on wealth depends on its being issued as Income or Capital or lent

to be employed as Capital.

p.2.

4. In England income is to money as about 3 to 1 so that for every ,100 thus

added to capital a tax of ,300 a year is laid on fixed incomists deducting

/minus/ 15 per cent for commercial profit. p.2.

5. More