STATE BORROWING. 



(i). An individual — say 20 years of age— possessing 

 a fixed income, assumed to be terminable at 

 death. 



(ji. The average existing unit Taxpayer of the 



State, who may be regarded not only as pos- 

 sessing a practically interminable income, but, 

 owing to the natural increase of the popula- 

 tion, his present capital value, instead of 

 diminishing, gradually increases from year to 

 year. In this way a given fixed burden, which 

 may at the beginning of a century in a State, 

 with a population of, say, 4,000,000, demand a 

 tax of 41s. 1 id. per head, would only demand 

 for the same burden a tax of 7s. 8d. per head, 

 when the population then increased, probably, 

 to over 22,000,000 — that is at the close of the 

 century. 



