Volume I Part 16 (1/2)

This is just as ridiculous, as to put against the general balance of the nation, how much more goods Ches.h.i.+re receives from London than London from Ches.h.i.+re. The whole revolves and circulates through this kingdom, and is, so far as regards our profit, in the nature of home trade, as much as if the several countries of America and Ireland were all pieced to Cornwall. The course of exchange with all these places is fully sufficient to demonstrate that this kingdom has the whole advantage of their commerce. When the final profit upon a whole system of trade rests and centres in a certain place, a balance struck in that place merely on the mutual sale of commodities is quite fallacious. 5thly. The custom-house entries furnish a most defective, and, indeed, ridiculous idea of the most valuable branch of trade we have in the world,--that with Newfoundland. Observe what you export thither; a little spirits, provision, fis.h.i.+ng-lines, and fis.h.i.+ng-hooks. Is this _export_ the true idea of the Newfoundland trade in the light of a beneficial branch of commerce? Nothing less. Examine our imports from thence; it seems upon this vulgar idea of exports and imports, to turn the balance against you. But your exports to Newfoundland are your own goods. Your import is your own food; as much your own, as that you raise with your ploughs out of your own soil; and not your loss, but your gain; your riches, not your poverty. But so fallacious is this way of judging, that neither the export nor import, nor both together, supply any idea approaching to adequate of that branch of business. The vessels in that trade go straight from Newfoundland to the foreign market; and the sale there, not the import here, is the measure of its value. That trade, which is one of your greatest and best, is hardly so much as seen in the custom-house entries; and it is not of less annual value to this nation than 400,000_l._ 6thly. The quality of your imports must be considered as well as the quant.i.ty. To state the whole of the foreign import _as loss_, is exceedingly absurd. All the iron, hemp, flax, cotton, Spanish wool, raw silk, woollen and linen-yarn, which we import, are by no means to be considered as the matter of a merely luxurious consumption; which is the idea too generally and loosely annexed to our import article.

These above mentioned are materials of industry, not of luxury, which are wrought up here, in many instances, to ten times, and more, of their original value. Even where they are not subservient to our exports, they still add to our internal wealth, which consists in the stock of useful commodities, as much as in gold and silver. In looking over the specific articles of our export and import, I have often been astonished to see for how small a part of the supply of our consumption, either luxurious or convenient, we are indebted to nations properly foreign to us.

These considerations are entirely pa.s.sed over by the author; they have been but too much neglected by most who have speculated on this subject.

But they ought never to be omitted by those who mean to come to anything like the true state of the British trade. They compensate, and they more than compensate, everything which the author can cut off with any appearance of reason for the over-entry of British goods; and they restore to us that balance of four millions, which the author has thought proper on such a very poor and limited comprehension of the object to reduce to 2,500,000_l._

In general this author is so circ.u.mstanced, that to support his theory he is obliged to a.s.sume his facts: and then, if you allow his facts, they will not support his conclusions. What if all he says of the state of this balance were true? did not the same objections always lie to custom-house entries? do they defalcate more from the entries of 1766 than from those of 1754? If they prove us ruined, we were always ruined.

Some ravens have always indeed croaked out this kind of song. They have a malignant delight in presaging mischief, when they are not employed in doing it: they are miserable and disappointed at every instance of the public prosperity. They overlook us like the malevolent being of the poet:--

Tritonida conspicit arcem Ingeniis, opibusque, et festa pace virentem; Vixque tenet lacrymas quia nil lacrymabile cernit.

It is in this spirit that some have looked upon those accidents that cast an occasional damp upon trade. Their imaginations entail these accidents upon us in perpetuity. We have had some bad harvests. This must very disadvantageously affect the balance of trade, and the navigation of a people, so large a part of whose commerce is in grain.

But, in knowing the cause, we are morally certain, that, according to the course of events, it cannot long subsist. In the three last years, we have exported scarcely any grain; in good years, that export hath been worth twelve hundred thousand pounds and more; in the two last years, far from exporting, we have been obliged to import to the amount perhaps of our former exportation. So that in this article the balance must be 2,000,000_l._ against us; that is, one million in the ceasing of gain, the other in the increase of expenditure. But none of the author's promises or projects could have prevented this misfortune; and, thank G.o.d, we do not want him or them to relieve us from it; although, if his friends should now come into power, I doubt not but they will be ready to take credit for any increase of trade or excise, that may arise from the happy circ.u.mstance of a good harvest.

This connects with his loud laments and melancholy prognostications concerning the high price of the necessaries of life and the products of labor. With all his others, I deny this fact; and I again call upon him to prove it. Take average and not accident, the grand and first necessary of life is cheap in this country; and that too as weighed, not against labor, which is its true counterpoise, but against money. Does he call the price of wheat at this day, between 32 and 40 s.h.i.+llings per quarter in London dear?[64] He must know that fuel (an object of the highest order in the necessaries of life, and of the first necessity in almost every kind of manufacture) is in many of our provinces cheaper than in any part of the globe. Meat is on the whole not excessively dear, whatever its price may be at particular times and from particular accidents. If it has had anything like an uniform rise, this enhancement may easily be proved not to be owing to the increase of taxes, but to uniform increase of consumption and of money. Diminish the latter, and meat in your markets will be sufficiently cheap in account, but much dearer in effect: because fewer will be in a condition to buy. Thus your apparent plenty will be real indigence. At present, even under temporary disadvantages, the use of flesh is greater here than anywhere else; it is continued without any interruption of Lents or meagre days; it is sustained and growing even with the increase of our taxes. But some have the art of converting even the signs of national prosperity into symptoms of decay and ruin. And our author, who so loudly disclaims popularity, never fails to lay hold of the most vulgar popular prejudices and humors, in hopes to captivate the crowd. Even those peevish dispositions which grow out of some transitory suffering, those pa.s.sing clouds which float in our changeable atmosphere, are by him industriously figured into frightful shapes, in order first to terrify, and then to govern the populace.

It was not enough for the author's purpose to give this false and discouraging picture of the state of his own country. It did not fully answer his end, to exaggerate her burdens, to depreciate her successes, and to vilify her character. Nothing had been done, unless the situation of France were exalted in proportion as that of England had been abased. The reader will excuse the citation I make at length from his book; he outdoes himself upon this occasion. His confidence is indeed unparalleled, and altogether of the heroic cast:--

”If our rival nations were in the same circ.u.mstances with ourselves, the _augmentation of our taxes would produce no ill consequences_: if we were obliged to raise our prices, they must, from the same causes, do the like, and could take no advantage by underselling and under-working us. But the alarming consideration to Great Britain is, _that France is not in the same condition_. Her distresses, during the war, were great, but they were immediate; her want of credit, as has been said, compelled her to impoverish her people, by raising the greatest part of her supplies within the year; _but the burdens she imposed on them were, in a great measure, temporary, and must be greatly diminished by a few years of peace_. She could procure no considerable loans, therefore she has mortgaged no _such oppressive taxes as those Great Britain has imposed in perpetuity for payment of interest_. Peace must, therefore, soon re-establish her commerce and manufactures, especially as the comparative _lightness of taxes_, and the cheapness of living, in that country, must make France an asylum for British manufacturers and artificers.” On this the author rests the merit of his whole system. And on this point I will join issue with him. If France is not at least in the _same condition_, even in that very condition which the author falsely represents to be ours,--if the very reverse of his proposition be not true, then I will admit his state of the nation to be just; and all his inferences from that state to be logical and conclusive. It is not surprising, that the author should hazard our opinion of his veracity. That is a virtue on which great statesmen do not perhaps pique themselves so much; but it is somewhat extraordinary, that he should stake on a very poor calculation of chances, all credit for care, for accuracy, and for knowledge of the subject of which he treats. He is rash and inaccurate, because he thinks he writes to a public ignorant and inattentive. But he may find himself in that respect, as in many others, greatly mistaken. In order to contrast the light and vigorous condition of France with that of England, weak, and sinking under her burdens, he states, in his tenth page, that France had raised 50,314,378_l._ sterling _by taxes within the several years_ from the year 1756 to 1762 both inclusive. All Englishman must stand aghast at such a representation: To find France able to _raise within the year_ sums little inferior to all that we were able even to _borrow_ on interest with all the resources of the greatest and most established credit in the world! Europe was filled with astonishment when they saw England _borrow_ in one year twelve millions. It was thought, and very justly, no small proof of national strength and financial skill, to find a fund for the payment of the interest upon this sum. The interest of this, computed with the one per cent annuities, amounted only to 600,000_l._ a year. This, I say, was thought a surprising effort even of credit. But this author talks, as of a thing not worth proving, and but just worth observing, that France in one year raised sixteen times that sum without borrowing, and continued to raise sums not far from equal to it for several years together. Suppose some Jacob Henriques had proposed, in the year 1762, to prevent a perpetual charge on the nation by raising ten millions within the year: he would have been considered, not as a harsh financier, who laid a heavy hand on the public; but as a poor visionary, who had run mad on supplies and taxes. They who know that the whole land-tax of England, at 4_s._ in the pound, raises but two millions, will not easily apprehend that any such sums as the author has conjured up can be raised even in the most opulent nations. France owed a large debt, and was enc.u.mbered with heavy establishments, before that war. The author does not formally deny that she borrowed something in every year of its continuance; let him produce the funds for this astonis.h.i.+ng annual addition to all her vast preceding taxes; an addition, equal to the whole excise, customs, land and malt-taxes of England taken together.

But what must be the reader's astonishment, perhaps his indignation, if he should find that this great financier has fallen into the most unaccountable of all errors, no less an error than that of mistaking the _identical sums borrowed by France upon interest, for supplies raised within the year_! Can it be conceived that any man, only entered into the first rudiments of finance, should make so egregious a blunder; should write it, should print it; should carry it to a second edition; should take it not collaterally and incidentally, but lay it down as the corner-stone of his whole system, in such an important point as the comparative states of France and England? But it will be said, that it was his misfortune to be ill-informed. Not at all. A man of any loose general knowledge, and of the most ordinary sagacity, never could have been misinformed in so gross a manner; because he would have immediately rejected so wild and extravagant an account.

The fact is this: the credit of France, bad as it might have been, did enable her (not to raise within the year) but to _borrow_ the very sums the author mentions; that is to say, 1,106,916,261 livres, making, in the author's computation, 50,314,378_l._ The credit of France was low; but it was not annihilated. She did not derive, as our author chooses to a.s.sert, any advantages from the debility of her credit. Its consequence was the natural one: she borrowed; but she borrowed upon bad terms, indeed on the most exorbitant usury.

In speaking of a foreign revenue, the very pretence to accuracy would be the most inaccurate thing in the world. Neither the author nor I can with certainty authenticate the information we communicate to the public, nor in an affair of eternal fluctuation arrive at perfect exactness. All we can do, and this we may be expected to do, is to avoid gross errors and blunders of a capital nature. We cannot order the proper officer to lay the accounts before the House. But the reader must judge on the probability of the accounts we lay before him. The author speaks of France as raising her supplies for war by taxes within the year; and of her debt, as a thing scarcely worthy of notice. I affirm that she borrowed large sums in every year; and has thereby acc.u.mulated an immense debt. This debt continued after the war infinitely to embarra.s.s her affairs; and to find some means for its reduction was then and has ever since been the first object of her policy. But she has so little succeeded in all her efforts, that the _perpetual_ debt of France is at this hour little short of 100,000,000_l._ sterling; and she stands charged with at least 40,000,000 of English pounds on life-rents and tontines. The annuities paid at this day at the Hotel de Ville of Paris, which are by no means her sole payments of that nature, amount to 139,000,000 of livres, that is to 6,318,000_l._; besides _billets au porteur_, and various detached and unfunded debts, to a great amount, and which bear an interest.

At the end of the war, the interest payable on her debt amounted to upwards of seven millions sterling. M. de la Verdy, the last hope of the French finances, was called in, to aid in the reduction of an interest, so light to our author, so intolerably heavy upon those who are to pay it. After many unsuccessful efforts towards reconciling arbitrary reduction with public credit, he was obliged to go the plain high road of power, and to impose a tax of 10 per cent upon a very great part of the capital debt of that kingdom; and this measure of present ease, to the destruction of future credit, produced about 500,000_l._ a year, which was carried to their _Caisse d'amortiss.e.m.e.nt_ or sinking fund. But so unfaithfully and unsteadily has this and all the other articles which compose that fund been applied to their purposes, that they have given the state but very little even of present relief, since it is known to the whole world that she is behindhand on every one of her establishments. Since the year 1763, there has been no operation of any consequence on the French finances; and in this enviable condition is France at present with regard to her debt.

Everybody knows that the princ.i.p.al of the debt is but a name; the interest is the only thing which can distress a nation. Take this idea, which will not be disputed, and compare the interest paid by England with that paid by France:

Interest paid by France, funded and unfunded, for perpetuity or on lives, after the tax of 10 per cent 6,500,000 Interest paid by England, as stated by the author, p. 27 4,600,000 ---------- Interest paid by France exceeds that paid by England 1,900,000

The author cannot complain, that I state the interest paid by England as too low. He takes it himself as the extremest term. n.o.body who knows anything of the French finances will affirm that I state the interest paid by that kingdom too high. It might be easily proved to amount to a great deal more: even this is near two millions above what is paid by England.

There are three standards to judge of the good condition of a nation with regard to its finances. 1st, The relief of the people. 2nd, The equality of supplies to establishments. 3rd, The state of public credit.

Try France on all these standards.

Although our author very liberally administers relief to the people of France, its government has not been altogether so gracious. Since the peace, she has taken off but a single _vingtieme_, or s.h.i.+lling in the pound, and some small matter in the capitation. But, if the government has relieved them in one point, it has only burdened them the more heavily in another. The _Taille_,[65] that grievous and destructive imposition, which all their financiers lament, without being able to remove or to replace, has been augmented no less than six millions of livres, or 270,000 pounds English. A further augmentation of this or other duties is now talked of; and it is certainly necessary to their affairs: so exceedingly remote from either truth or verisimilitude is the author's amazing a.s.sertion, _that the burdens of France in the war were in a great measure temporary, and must be greatly diminished by a few years of peace_.

In the next place, if the people of France are not lightened of taxes, so neither is the state disburdened of charges. I speak from very good information, that the annual income of that state is at this day thirty millions of livres, or 1,350,000_l._ sterling, short of a provision for their ordinary peace establishment; so far are they from the attempt or even hope to discharge any part of the capital of their enormous debt.

Indeed, under such extreme straitness and distraction labors the whole body of their finances, so far does their charge outrun their supply in every particular, that no man, I believe, who has considered their affairs with any degree of attention or information, but must hourly look for some extraordinary convulsion in that whole system: the effect of which on France, and even on all Europe, it is difficult to conjecture.

In the third point of view, their credit. Let the reader cast his eye on a table of the price of French funds, as they stood a few weeks ago, compared with the state of some of our English stocks, even in their present low condition:--

French. British.

5 per cents 63 Bank stock, 5-1/2 159 4 per cent (not taxed) 57 4 per cent cons. 100 3 per cent ” ” 49 3 per cent cons. 88

This state of the funds of France and England is sufficient to convince even prejudice and obstinacy, that if France and England are not in the same condition (as the author affirms they are not) the difference is infinitely to the disadvantage of France. This depreciation of their funds has not much the air of a nation lightening burdens and discharging debts.