Ch. vii. Of Poor- Laws, continued.. 103 



conviction, that if the whole of the taxes were 

 removed to-morrow, this stagnation, instead of 

 being at an end, would be considerably aggra- 

 vated. Such an event would cause another great 

 and general rise in the value of the circulating 

 medium, and bring with it that discouragement to 

 industry with which such a convulsion in society 

 must ever be attended. If, as has been repre- 

 sented, the labouring classes now pay more than 

 half of what they receive in taxes, he must know 

 very little indeed of the principles on which the 

 wages of labour are regulated, who can for a mo- 

 ment suppose that, when the commodities on 

 which they are expended have fallen one half by 

 the removal of taxes, these wages themselves 

 would still continue of the same nominal value. 

 Were they to remain but for a short time the 

 same, while all commodities had fallen, and the 

 circulating medium had been reduced in propor- 

 tion, it would be quickly seen that multitudes of 

 them would beat once thrown out of employment. 

 The effects of taxation are no doubt in many 

 cases pernicious in a very high degree ; but it may 

 be laid down as a rule which has few exceptions, 

 that the relief obtained by taking off a tax, is in 

 no respect equal to the injury inHicted in laying it 

 on; and generally it may be said that the specific 

 evil of taxation consists in the check which it 

 gives to production, rather than the diminution 

 which it occasions in demand. With regard to all 

 commodities indeed of home production and home 

 demand, it is quite certain that the conversion of 

 capital into revenue, which is the effect of loans, 



