194 ADAM SMITH. 



scribed is not accurately traced, and because, therefore, 

 the important point of their ultimate incidence is not 

 accurately and satisfactorily pursued and explained. Some 

 of the most important taxes are very slightly touched 

 upon, and the subject of an income-tax is very imperfectly 

 handled. The doctrine of the Economists of a single 

 tax, impot fonciere, being substituted for all others, is 

 rather indirectly treated than fully and authoritatively 

 exposed, while so great an error claimed ample refuta- 

 tion ; and the manifest fairness as well as advantage of 

 so distributing taxes, as to give every variety to them, 

 and thus to make their ultimate incidence as universal 

 as possible, and yet as far as possible proportionate to 

 the means of payment, is not at all dwelt upon, hardly 

 touched. 



iii. In the early stages of society and of government, 

 the Sovereign always making provision for extraordinary 

 occurrences, used to amass out of his annual income, 

 either accruing from property or obtained by taxes, 

 savings which formed a treasure in course of time. Even as 

 far down as the early part of the eighteenth century, the 

 Prussian treasure enabled Frederic II. to carry on suc- 

 cessful wars almost as much as the disciplined army, to 

 which he succeeded from his father. But in our times 

 extraordinary emergencies are met by borrowing; and 

 all Governments are more or less in debt, many of them 

 heavily indebted. It is much easier for the Government 

 of a commercial country to raise loans than for any other, 

 because capitalists are ever to be found able and willing to 

 advance money on the public security. For the most part 

 these loans have at first been personal, that is, on the 

 general credit of the Government ; afterwards when 



