manufactures, into the hands of great merchants, whose capital overflows the market, and returns in the shape of mortgages. There is, at the same time, a great want, and a great abundance of money. Such are the effects of a great national debt upon individuals. But there is another view in which this debt is an unmixed evil. I mean as it impairs and exhausts the resources of the state. The expence of former wars render it at last difficult for a nation to raise taxes for its defence. So much of the rent of the land-holder is taken from him, that the minister dares not ask for more, as it would be equivalent to the confiscation of the land itself.

Mr. Hume has speculated with great ingenuity on the consequence of the national debt arriving at this pitch. He supposes that one of three methods must be resorted to. The first is, that the scheme of some projector should be adopted, which could only tend to increase the confusion and dismay, and the nation would thus "die of the doctor." The next is a national bankruptcy; a plan that he seems to look upon with some approbation. The third, and last,

is, that the nation would persevere in paying the full interest. He continues thus: "These two events, supposed above, are calamitous, but not the most calamitous. Thousands are thereby sacrificed to the supply of millions. But we are not without danger that the contrary event may take place, and that millions may be sacrificed for ever to the temporary safety of thousands. Our popular government, perhaps, will render it dangerous for any man to venture on so desperate an expedient as that of a voluntary bankruptcy. And though the House of Lords be altogether composed of proprietors of land, and the House of Commons chiefly; and consequently can neither of them be supposed to have great property in the funds: yet the connection of the members may be so great with the proprietors, as to render them more tenacious of public faith than prudence, policy, or even justice, strictly speaking, requires. . . . . The balance of power in Europe, our grand-fathers, our fathers, and we, have all esteemed too unequal to be preserved without our attention and assistance. But our children, weary of the struggle, and fettered with incumbrances, may sit down

secure, and see their neighbours oppressed and conquered; till at last they themselves and their creditors lie both at the mercy of the conqueror." The picture of things at home he draws in the following manner:-"No expedient remains for preventing or suppressing insurrections but mercenary armies: no expedient at all remains for resisting tyranny: elections are swayed by bribery and corruption alone: and the middle power between King and people being totally removed, a grievous despotism will prevail. The landholders, despised for their poverty, and hated for their oppressions, will be utterly unable to make any opposition to it."*

If we look to foreign nations, we shall see that Venice, after wars of glory, arrived, in the beginning of the last century, at that stage of decay of which Mr. Hume speaks. Her revenue was not sufficient to pay the interest of her debt. She suspended payment, but still was unable to support the expense of her government. It requires, however, more space than we have here, to examine the complicated causes of her downfall.

* Hume's Essays. Essay on Public Credit.

Holland was also borne down in her latter

years by the weight of her enormous in proportion to population.

debt. It is still

her wealth and

France began the revolution with a debt she could not support. By a summary process in the middle of the war, she virtually abolished the greater part of it. No country, however, has yet been precisely in the situation of England. Commerce and credit are not confined to a spot, but run through every vein in her body, A national bankruptcy would give a sudden check to industry that would not easily be restored. Very mistaken notions prevail with respect to the good effects which would follow from applying a spunge to the debt. Of these mistakes none is more evident nor more mischievous than the notion which many entertain and inculcate, that the labourer who receives 18s. a-week, of which ten are consumed by the taxes on beer, candles, &c., would, if all these taxes were taken off, receive the same 18s., and obtain more than twice as much for them. The real price of labour, it must be recollected, is regulated by the supply and demand. The

money-price of course will vary with the moneyprice of the provisions, house-rent, clothes, candles, &c. which are required for the maintenance of the labourer. If the demand for labour remains the same, and by a reduction of taxes the articles which the labourer uses are reduced in price from 18s. to 8s. his wages will fall from 18s. to 8s. But it will be said that the farmer and manufacturer, having more capital to lay out on labour, the reduction of taxes will bring an increased demand. This, indeed, may ultimately be the case; but it is not likely that such effect would follow a sudden stoppage of the payment of the dividends. So many consumers are spread over this country, who derive their income, either directly or indirectly, from the funds, that the first effect of a national bankruptcy would be a great diminution of demand, and a general depreciation of agricultural and manufactured produce throughout the country.

Since the approach of peace, this country has been visited, at two periods, by severe distress. The first began in 1813, when speculators in foreign corn brought grain, raised, perhaps for