Ch. vii. Of Poor- Laws, continued. 105 



The foregoingillustration represents more nearly 

 than may generally be imagined the effects of a 

 national debt on the labouring classes of society, 

 and the very great mistake of supposing that, be- 

 cause the demands of a considerable portion jof 

 the community would be increased by the ex- 

 tinction of the debt, these increased demands 

 would not be balanced, and often more than ba- 

 lanced, by the loss of the demand from the fund- 

 holders and government. 



It is by no means intended by these observa- 

 tions to intimate that a national debt may not be 

 so heavy as to be extremely prejudicial to a state. 

 The division and distribution of property, which 

 is so beneficial when carried only to a certain ex- 

 tent, is fatal to production when pushed to extre- 

 mity. The division of an estate of five thousand 

 a year will generally tend to increase demand, 

 stimulate production, and improve the structure 

 of society ; but the division of an estate of eighty 

 pounds a year will generally be attended with 

 effects directly the reverse. 



But, besides the probability that the division 

 of property occasioned by a national debt may in 

 many cases be pushed too far, the process of the 

 division is effected by means which sometimes 

 greatly embarrass production. This embarrass- 

 ment must necessarily take place to a certain ex- 

 tent in almost every species of taxation; but 

 under favourable circumstances it is overcome by 

 the stimulus given to demand compared with sup- 

 ply. During the late war, from the prodigious in- 

 crease of produce and population, it may fairly be 



