#7098.) 
Jo the Editor of the Monthly Magazine. 
SIR, 
HE land tax which has hitherto been 
granted annually, having been made 
perpetual from the 25th of March next, 
the time when the annual aé paffed in 
the beginning of the daft feflon will ex- 
pire, it is natural to enquire into the 
advantages likely to arife from the adop- 
tion of a meafure, which formerly would 
have been ftrenuoufly oppoled, on princi- 
ples now thought of little importance, in 
comparifon with any pecuniary advantage 
to the ftate or to individuals. 
When Mr. Pirr introduced the pro- 
jet into parliament, it was not .for the 
purpote of providing for the intereft ‘of a 
new loan, but with the view of facili- 
tating the raifing of future loans, by ab- 
forbing a large quantity of the ftock at 
prefent in the market, and thus railing 
the current price ; while at the fame time 
jt would be attended with an increafe of 
yevenue. This at leaft was the minifter’s 
avowed objest, and he eftimated that it 
would be the means of redeeming, or 
taking out of the market, about 
$o0,000,000l. of ftock; but it appears 
that this eftimate is too high, even if the 
lan can be fully carried into execution 
without any alteration ot the prefent, 
terms, which is very improbable. ‘The 
tax cannot be fairly ftated to produce on 
an average more than 1,900,0o0cl, per 
ann, and if one half is redeemed by per- 
fons interefted in the.land, fo much three 
per cent. ftock muft be transferred as 
will produce an annuity of 1,045,000l. 
and tor the other half purchafed: by per- 
fons not interefted, the ftock transterred 
muft produce an annuity of 1,140,000l. 
making together 2,185,o00l. per ann. 
and the capital of ftock transferred, 
72,833,333. 6s. 8d. This appears to 
be the greateft extent of its operation that 
«an be expected; tor if the plan were to 
fucceed, it is probable that the principal 
part would be purchafed by perfons in- 
terefted in the land, and if more than 
half was purchafed by fuch perfons, the 
capital of ftock transferred muft be pro- 
portionably lefs than the amount I have 
ftaged. Inorder to form a juft idea of 
the permanent effect that the redemption 
of fuch a portion of {tock would have, it 
fhould be recollected, that it is only about 
a fixth part more than the amount of the 
new ftock created laft year would have 
appeared, had the loyalty loan been made 
gn three per cents. 
“ Obfervations on the Purchafe of the Land-tax. 
239 
The meafure may be thought of confi. 
derable importance at prefent for {upport- 
ing the credit of the publi¢ funds, by 
keeping up their price; and if fully car- 
ried into execution, it would certainly 
produce an addition to the revenue; but 
this gain to the revenue is evidently a lofe 
to individuals, who transfer a fixed an- 
nuity in order to be releaféd from the ~ 
payment of an annuity of lefs amounty 
when they might pay the latter regularly 
out of the former, and retain the furplus. 
Thus, in order to redeem 20]. land-tax, 
the capital of three per cents, which muft 
be transferred, is 7331. 6s. 8d. produc- 
ing 221. per annum. But if a perfon 
purchafes only 6661. 13s. 4d. flock, and 
keeps it inhis own hands, appropriating 
the dividend to the payment of his land- 
tax, to which it is juft equal, it is ob- 
vious he faves 66]. 138. qd. ftock. In 
the cale of perfons purchafing the tax who 
are not interefted in the land, the lofs to 
the individual is doubled, and may be fet’ 
in a ftill clearer view: fuch perfons, for 
z2ol.-land tax muft transfer Sool. three per 
cents. which, if bought at 50, makes 
the intereft the tax pays them for their 
money exactly five per cent. whereas the 
ftock transferred produced them exactly 
fix per cent. and the only inducement 
which there appears to be for relinquith- 
ing this difference of intereft is a prefer- 
ence of the fecurity of a tax upon land, 
to the revenues on which the public funds 
depend, though many perfons will be in- 
clined to doubt the jultnefs or propriety 
of any fuch diftinétion. 
One of your correfpondents, p. 18, 
exprefles a doubt with refpect to the fuc- 
cefs. cf the {cheme, and his doubts are 
likely to be increafed, by the great num- 
ber of landholders who are totally at a 
lofs to difcover the advantages which it 
is fuppofed to offer to them. What thele 
advantages are, I would willingly fate, 
in order to enable others to form a fair 
judgment on the fubjeét, but I can dil- 
cover none, except the poflibility that as 
eftates generally increafe in value the lefs 
they are incumbered; fuch as are thus 
exonerated from the tax, may, upon fale, 
produce a greater difference beyond the 
price they would otherwife have fold at, 
than the fum paid at pyelent for the tax 
would then amount to; and the {fuppofi« 
tion that fome may prefer an increafe of 
the nett income of their eftates to a fome- 
what greater income arifing in part from 
a different fource. 
OF, 12, 1798. G. 
To 

