190 Mr TOZER, ON THE EFFECT OF THE 



whose services he retains, and in distributing such foreign productions 

 as are so consumed; and a third portion, which is commercial capital, 

 belonging either to resident natives or to foreigners, and which is employed 

 in purchasing and importing those foreign productions. 



Each of these classes is susceptible of the usual further divisions 

 into fixed and floating. 



Call these portions of capital C t C,', C 2 C 2 , C 3 C 3 respectively ; CV C 2 C 3 

 being fixed, and C X C 2 C 3 floating. 



Then if q be the amount of a unit of capital with its profit, C v C 2 , C» 

 must at the end of the year, or other period of return, yield q C„ q C 2 , q C 3 , 

 respectively, and C/, C», C 3 ' must yield annuities which pay the profits 

 (q — 1)CY, (q — l)C 2 ', (q — 1)C S ', and replace such portions of those capitals 

 as have been destroyed. Call these annuities A if A 2 , A s , respectively. 



Then if q . Q + A x — q(c x + c 2 + ... c„) = q^Lc, 



where c„ c 2 ... are portions of capital which respectively yield the returns 

 r u r 2 ...r„ for each unit, the fixed capital being expressed in terms of 

 its value as floating capital, and r u r 2 ...r n being a decreasing series, the 

 proprietor's income will be 



l} n c(r — q), which suppose = R; 

 %l indicating the sum of the terms c, (n - q) c % (r 2 - q)...c„ (r„ - q). 



Of this, a part Bt suppose will be paid in those direct taxes the pay- 

 ment of which will be evaded by non-residence. 



A part qC 2 + A 2 will be received by the owners of C 2 + C 2 . 



The remainder q.C 3 + A 3 by the owners of C 3 + C 3 . Let this re- 

 mainder = 2jo ; p„ p 2) &c. being portions of it which are exchanged for 

 portions of foreign produce of different kinds. 



Suppose now H to be the country in which the proprietor's lands 

 are situated, K that in which the equivalent for p, is produced ; and let 

 a-, be the price of that equivalent in K. 



Then if there be direct intercourse between H and K, and if K 

 import the produce of the proprietor's estates, this price in H must 

 have been raised to <r(l + e + v) where ea- is the expence of making 



