348 
loans, to prevent bankruptcies, which 
followed the commencement of the war) 
money became cheap, and there being no 
demand for it in loaus, or very profitable 
disposition of it in trade, the interest 
sunk of course, which it bond fide did, 
when the three per cenis rose to 93. 
The usual profit of trade is estimated at 
ten per cent. which is small, if compared 
with the risque: in some branches it is 
more; and taking it, as arule, that as 
much will be given for money, as can be 
made of it; it follows, that, when trade is 
bad, the fade and the jane will be re- 
sorted to, as better and safer modes of in- 
vesting capital; and the funds thus be 
kept up. Besides, the bankers, who are 
the chief agents in these matters, having 
no comparative field for profitable specu- 
lations, will make larger investments in 
government securities. 
‘Thus it appears tome, that trade, when 
prosperous, is likely to diminish the va- 
Jue of funded property, as paying better 
interest: and as to agriculture, - it is 
known that it presents no adequate meaus 
of employing a capital; and, vice versd, 
when trade is bad, or the profit cheap- 
ened, through excessive competition, the 
funds gain. 
It is a matter of great importance, and 
-some curiosity, though, so far as I know, 
it has never been done, to know what 
have been the annual sums for a series 
of successive years vested in the funds, 
and which the purchaser continued to 
hold at the end of the twelve-months. 
‘this datum being obtained, and an esti- 
mate of capital employed in trade, taken 
trom the returns of the Imports, Exports, 
Excise, and Property-Tax, being also ta- 
ken, some important conclusions might, 
in my opinion, be formed, which would 
point out to government some very es- 
sential truths, in the modes and capabili- 
ties of assessments, so as to show where 
and how they can be best raised, and with 
the least injury. 
Napoleon knows, that employment in 
commerce prevents the facility of recruit- 
ing,and the prohibition distresses his eue- 
my: but, the final tendency of all-sach 
measures, is to render the nations much 
poorer, than they would otherwise be. 
Trade is favourable toliberty, law, police, 
~ AOy bles aSIngs 5 and its evils are cer- 
tainly less than those which arise from a 
feudal system and idlenes $8, and a military 
banditti. 
‘Faxes upon the direct articles of trade, 
are laid in the very worst manner, because 
they either fall upon the consumers, with 
Thoughts on the Influence of Trade upon the Funds. 
[May I; 
an additional tax laid by the vendor,or they 
narrow the consumption, and depress the 
industry of the people.Taxes upon land are 
taxes upon provisions,which again operate 
to the injury of tr ade, by augmenting the 
price of labour. Taxes upon stamps have 
been reprobated by the ingenious Mr.Ben- 
tham as taxes upon justice, which is true: 
but as the expence occurs but occasionally, 
the operation is rather against petty, than 
important, litigation. In the opinion of 
the writer of this essay, a direct tax upon 
income, as upon profits, is attended with 
the smallest ill consequences, because no 
further tax is levied se bich the consumer ; 
but the case is quite otherwise, when fixed 
upon articles of commerce or provisions. 
There the tax falls upon the consumer ; 
and as a great part of these consumers 
are the poor, the price of labour, and the 
poor-rates, both rise also together. 
it requires a larger annual currency of 
specie, to pay 40 millions, than 10 per an- 
num, and this produces a great deception 
in the estimates of national means. No 
increase of revenue: can persuade any 
man in his senses, that at the present pe- 
riod England is in a more thriving pecu- 
niary condition, than she was_a twelve 
month ago; or because a man has more 
to pay, that he is so much the richer in 
prefits. Norisit considered that half the 
incomes, which support expensive living, 
are paid by persons occupied in com- 
merce, and are-levied upon articles of 
commerce; and’ that those who ery out 
against trade, would without it have to: 
make up the de ficienees, by a much hea- 
vier expence upon themselves. If they 
live in equal luxury, the tax is levied upon 
themselves as consumers + and if they do: 
not, government must look to them for 
the ‘deficiency. 
It is the opinion of the writer of saa 
essay, and it is an opinion perhaps as 
vain as it may appear presumptuous, 
that should any serious evils ensue, from 
defects, &c. of commerce, no service can 
be rendered more essential, than a re- 
lease of the Janded and commercial inter- 
ests from the present form and modes of 
taxation; that is, a commutation to a pros 
perty tax : and a resolution to avoid in fue 
ture every species of assessment, which 
had a direct bearing upon provisions or 
marketable commodities of any kind, 
where there was no danger of being un- 
dersold from abroad. This, however, is 
a huge project: and may deserve a smile, 
though the present modes both are and 
continue to be highly injurious. 
Your’s, &c, MY ke 
OBSERVATIONS: 
