An Inquiry into the Permanent Causes of the Decline and Fall of Powerful and Wealthy Nations Part 39

The late and present wars, which have occasioned one-half of the debt, and for which our exertions are to be continued, were undertaken for the preservation of property; for, though the French system is so completely bad that even the beggars in England would be losers by adopting it, yet, it will be allowed, that the evil to people of property would be much greater than to those who have no property. Let us look to Flanders, Holland, and other countries, and say no if we can.

It was on this idea that an income-tax, afterwards termed a property- tax, was laid on, by which the rich are made to pay, and the poor are exempted. The justice and expediency of this was universally admitted: there might be some difference of opinion as to modes and rates, but there was none as to the general principle.

We would, then, propose to RAISE LOANS, at a low rate of interest to reimburse the present creditors, ON THE SAME PRINCIPLE ON WHICH THE PROPERTY-TAX EXISTS, in the following manner:

There are, by Mr. Pitt's calculation, (and his may be taken [end of page #243] in order to prevent caviling) 2,400,000,000 L. of capital in the kingdom. Let us then create a two and a half per cent. stock, into which every person possessed of property should be _compelled_ to purchase at par, in proportion to their capital, so as to redeem fifty millions every year, thereby creating fifty millions of new debt at two and a half per cent. and reimbursing an equal sum bearing an interest of five per cent.

A loan of two per cent. per annum, on each man's capital would do this, and would never be an object for the safety of the whole, particularly as it would only last for ten years. As he would have interest at two and a half per cent. he would, in reality, only lose half, that is, one per cent. a year during twelve years; so that a man, with 10,000 L. would only have given 100 L. a year for twelve years.

At the end of ten years, the interest of the national debt would be reduced to one-half its present amount, which, together with the war- taxes, would be sufficient to prevent the necessity of creating more debt. This, however, is not all, a more prompt effect and advantage may be expected. It is more than probable, that the moment our enemy found that the nation, could, without any great exertion, put its finances on a permanent footing, the present contest would finish. It is now only continued, in hopes of ruining our finances, and it is on the acc.u.mulation of the debt that the expectation of that is alone founded.

We observed, in the beginning of this Chapter, that most people are biased by hope or fear, in examining a question of great importance; and that, therefore, they do not state it quite fairly, without being sensible of their error. In the case of the gloomy calculators of this country, fear and anxiety operated in causing a misstatement; but, with regard to our enemies, hope is the cause of their magnifying the effect of our national debt, and, it must be allowed, that hope had seldom ever a more easy business to perform. The general conclusion is certain, and all the question that remains, is with respect to time.

The only mode of putting an end to this hope of our enemy, and to the war, at once, will be by shewing that enemy _that it is quite out of his power to augment our debt_, but untill =sic= a method shall be adopted by [end of page #244] us, that is PRACTICABLE AND EASILY UNDERSTOOD, that will not be believed by our enemy.

The rapidity of the operation of a sinking fund is easily calculated, but not so easily credited, particularly by people not inclined to do so, and who would not themselves have the constancy and self-denial to leave it time to operate. Besides, by this operation, we shall not get free of debt till the taxes are raised far above their present amount. Our enemies may be pardoned for believing it impracticable, particularly as many of our friends are of the same opinion.

France, which has always been the rival of this country, and hates it now more than ever, (envy being now an ingredient of its hatred,) knows well that it is fallen and degraded, that it has less wealth and happiness than England; but then it considers, that, however bad its finances may be, they are getting no worse; that to continue the war for twenty years will bring no more ruin on the nation, while half the term would probably ruin us. Till we show the fallacy of this calculation, we cannot expect a durable peace. Our ruin is become an object, not only of ambition, but of necessity, as it were, to France; and nothing but despair of being able to accomplish their object will make them abandon the attempt.

We must be permitted here to ask a few questions:

Is not the time favourable for the plan here proposed?

Would it not be fair in its operation?

Would it not bring relief effectually and speedily?

Would it not reduce our burthens, without breaking faith with the creditors of the state?

Would it not reduce the interest, without setting too much capital afloat, that might leave the country?

Could our enemies then calculate on the national debt destroying England?

The affairs of nations, it has been observed, become so complicated, and the details so multiplied, that those who have the management of them are scarcely equal to the business of the day; and they have no leisure to inquire into the best modes of keeping off evil when it is yet distant; of this we have had ample experience.

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Allowing all the credit possible to the sinking fund, (and a great deal is due,) still during war its operation is a sort of paradox; it does not obtain relief: it is liable to be questioned; but we are come to a point, where the stability of our finances ought to be put out of doubt, and beyond all question. The mode of settling our affairs ought not only to be such as in the end may succeed, but its efficacy and practicability ought to be such as our enemies can understand and give credit to.

Without this, we shall have no end to the contest.

With respect to what our enemies will give credit to, a good deal depends on their own natural disposition. A fickle and arbitrary people, who are continually breaking their faith, can have little belief in the constancy of a sinking fund, but they will be perfectly well inclined to believe, that men of property may be compelled, and will even be glad to pay one per cent. a year, for ten years, to ensure the safety of that property. Supposing then that the sinking fund were the better plan of the two in reality, it would not be so in the present circ.u.mstances, because it would not obtain credit, and the other will.

As to the rest, deprive the French of their hopes of ruining our finances, and they will make peace on reasonable terms, whenever we please; their object for continuing the war will then be at an end; and, if they do continue it, we can go on as long as they can, without any addition to our burthens.

Whatever the cause of a war may be, the hope of success is the only possible motive for persisting in it. The French have been led into two errors; first, by the comparison of this country to Carthage, and of their own to Rome, (an absurd comparison that does not hold,) and, in the second place, by looking on our ruin, from the increase of our debt, as certain. We ought to undeceive them, and then they will have less inclination to persist in war. No pains has. .h.i.therto been taken to set them right; nor, indeed, with respect to the national debt, can it ever be done by the present method, till they see the effect; for though the progress of a sinking fund in peace is easily understood, in time of war there is much appearance of deception; it looks like slight =sic= of hand more than a real and solid transaction.

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CHAP. V.

_Of Taxes for the Maintenance of the Poor.--Their enormous Increase.--The Cause.--Comparison between those of England and Scotland.--Simple, easy, and humane Mode of reducing them_.

Amongst the interior causes that threaten England with decline, none is more alarming than the increasing expenses of the poor; expenses evidently rising in a proportion beyond our prosperity, and totally without example, either in the history of past times, or in that of any modern nation.

The poor of England cost more to maintain than the free revenue of the country amounted to thirty years ago, and to nearly three times the amount of the whole revenues of the nation, at the time of the revolution.

The proportion between the healthy and the sick cannot have changed so much as to account for this augmentation; we must, therefore, seek for the cause elsewhere.

It probably arises from several causes; the increasing luxury, which leaves more persons in indigence when they come to an advanced age, owing to their being unwilling or unable to undergo the hards.h.i.+ps to which nature subjects those who have been born to labour, and outlive their vigour; being thereby deprived of those indulgences which, in better days, they have experienced. In England, menial servants are accustomed to consume more than people of moderate fortune do in other countries, and they are the race of people most likely to be left to penury in their old age. In countries where there are, indeed, greater trains of menial attendants than in England, they, in general, belong to the great, who make some provision for them, or who, keeping them from ostentation, can retain them to a more advanced age; and, at all events, as they live a less luxurious life, they can make a better stand against that penury which it is their hard destiny to encounter. [end of page #247]

In a commercial country there is less attachment between master and servant, than in any other; and the instances of provision for them are very rare.

In proportion as a nation gets wealthy, the human race shares the same fate with other animals employed in labour; they are worked hard, and well fed while they are able to work, but their services are not regarded when they can do but little. {194}

Want of economy in the management of the funds destined for the purpose of their maintenance is another cause of increase in the expense of the poor. In a nation where every individual is fully occupied with his affairs, and has little time to attend to any thing else, those who manage the affairs of the poor find that few are inclined to look close into matters, and fewer still have the means of doing it if they would; so that abuses increase, as is always the case when there is no counteracting check to keep them within bounds.

Another cause, no doubt, is that, as the number of unproductive labourers increase, greater numbers of children are left in want.

To all those causes we must add the increase of towns, and the decrease of hamlets and villages. Towns are the places where indigence has the greatest consolation, and where the relief which is held out is attended with the least degree of humiliation and reproach.

When we compare the cases of England and Scotland, the causes cannot be doubted; for, there, servants live harder, the working cla.s.s do not labour so hard, and are not so soon worn out, neither have the towns increased so much, at the expense of the hamlets and villages.

The greatest of all the causes of the increase of poor, however, arises from taxation and rent. It has been observed, in the chapter on Taxation, that, for a certain length, taxes and rent are productive of industry, and that, at last, they finish by crus.h.i.+ng it entirely.

{194} If it were the custom to keep horses that were worn out till they died a natural death, the maintenance of them would cost more in England than in any other country; for their vigour is exhausted before the term of old age arrives. The calculation is in this country, to pay well, and be well served.

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The manner that this happens, is, that long before a country is as highly taxed as the majority of its inhabitants will bear, those who are the least able to pay are crushed, and reduced to absolute poverty.

There are two causes which may render a person unable to support the burthen of taxation: the one is, having a great family; the other is, being able to gain but little from weakness, or some other cause; and, where there are two causes that tend to produce the same effect, though they operate separately, they must, of course, sometimes act in conjunction.

The weakest part of society gives way first, in every country; and, on account of the arbitrary and ignorant, though lavish method of relieving that portion of society, in England, the evil is increased to more than double.

There is no relief at home in their own houses, no help, no aid, for the indigent, which might produce so admirable an effect, by counteracting the ruin brought on by heavy taxes and high prices; no, the family must support itself, or go wholesale to the workhouse. This is one of those clumsy rude modes of proceeding that a wealthy people, not overburthened with knowledge, naturally takes to overcome a difficulty, but without care or tenderness for the feelings of those relieved, or that regard for public interest, which ought to go hand in hand. For this it would be well to search a remedy.

A father and mother, and six children, will cost, at least, fifty pounds a year in a workhouse; but, perhaps, the aid of twelve or fifteen pounds would keep them from going there, and by that means save the greatest part of the money, while the country, which loses their industry, would be doubly a gainer.

There is a sort of rough, vulgar, and unfeeling character, prevalent amongst the parish-officers, that is a disgrace to the country and to the character of Englishmen. It is highly prejudicial to the nation; and, if there were no moral evil attending it, if the feelings of the poor were no object, =sic= the rich ought to attend to it for self-interest. If they will not, the government of the country is interested, both in honour and in interest, to do so.

Exemption from taxes will do little or nothing, the lower orders [end of page #249] are nearly all exempt, but that general dearness, that is the consequence of a general weight of taxes, is severely felt by them, and from that they cannot be exempted. They must get relief by a.s.sistance, and that a.s.sistance ought to be given in a manner that will not throw them altogether a burthen on the public. {195}