1     	          January 1994
5     	     Public Debt -- 'an unnatural species of property' and
6     	     cause of unequal distribution of property
8     	                         .......edited by Marijan Salopek
10    	                  =============================
12    	Extract from Daniel Raymond, . Vol II. (Baltimore: F. Lucas, Jun. and E. J.
14    	Coale, 1823), pp. 310-355.
16    	                          Chapter XII 
18    	        The Influence of a Public Debt on National Wealth
21    	     Perhaps no subject relating to political economy is involved
22    	in greater obscurity, as it respects its influence on national
23    	wealth, than that of a national debt.
24    	     As the United States, happily, are not, nor ever likely to
25    	be, oppressed with a public debt, of any inconvenient magnitude,
26    	it may perhaps be thought unnecessary for an American politician
27    	to trouble himself with an investigation of its nature and
28    	influence on public wealth. The different branches of political
29    	economy, however, reflect light on each other: and a thorough
30    	knowledge of the nature and influence of public debt will enable
31    	us to understand other branches more clearly.
32    	     The United States have no colonies, but it is not for that
33    	reason unnecessary for an American statesman to have a thorough
34    	knowledge of the advantage of colonial monopoly. So an American
35    	statesman should have a thorough knowledge of a national debt,
36    	although he may never have one of any considerable magnitude to
37    	manage. He will find other subjects greatly illuminated by his
38    	knowledge upon this.
39    	     Although the whole science of political economy is involved
40    	in great obscurity, yet some branches are covered with more
41    	impenetrable veil than others. As no subject relating to the
42    	science is more imperfectly understood than that of a public
43    	debt, so there is none upon which there is a greater diversity of
44    	opinion, as to its influence on national wealth.
45    	     That public opinion should be divided upon this subject, is
46    	not to be wondered at, for it cannot be expected, that the great
47    	body of the people, should be acquainted with the science of
48    	political economy, any more than with the sciences of medicine
49    	and law. They may know something of the general principles of
50    	these, for there is not an old woman int he country, that does
51    	not known something of the healing art, nor a peasant, that does
52    	not know something of law, although unacquainted with those
53    	principles, and definitions, which constitute them sciences. They
54    	know not the meaning of the technical terms, or terms of art, and
55    	a knowledge of political economy is no more instinctive, or
56    	innate, than a knowledge of medicine or law.
57    	     Public affairs, it is true, may be administered with
58    	tolerable ability and success, without a scientific knowledge of
59    	political economy, although there can be no certainty, what
60    	effect particular measures may have upon public wealth, without
61    	this scientific knowledge.
62    	     Before the days of Harvey, the circulation of the blood was
63    	not known, although there were many skilful and successful
64    	physicians before his day. There were no doubt many mistakes
65    	made, in consequence of ignorance of the fact of circulation, for
66    	which the physician was not censurable; but at the present day, a
67    	physician who should make a mistake from ignorance of this fact,
68    	would be inexcusable; indeed he would be unworthy the name of a
69    	physician. So a legislator may conduct public affairs with skill
70    	generally, while ignorant of some undiscovered or unknown
71    	principle in the science of political economy, although liable to
72    	make mistakes, for which he is not censurable; but when these
73    	principles are known and settled, he will be alike inexcusable,
74    	for making any such political blunders.
75    	     There can be no doubt, but that politicians are as liable to
76    	make mistakes in consequence of ignorance of the true economy of
77    	the body politic, as physicians are in consequence of ignorance
78    	of the true economy of the natural body; and it must also be
79    	admitted, that the mistakes of the legislator, are vastly more
80    	deplorable in their effects upon human happiness, than the
81    	mistakes of the physician can possibly be. The mistakes of the
82    	legislator may affect, for ages, the happiness, and even prevent
83    	the existence of millions of human beings. The mistakes of the
84    	physician touch the life and happiness of only a few individuals
85    	at most.
86    	     What causes the difference between the numbers and happiness
87    	of the people in different countries, but the wilful or ignorant
88    	mistakes of politicians? Man is the same in all countries and
89    	climates, and liable to be operated upon by the same causes. The
90    	bounties of heaven are distributed with an equal hand throughout
91    	all inhabitable parts of the globe. The difference, therefore,
92    	between the sum of human happiness enjoyed in different
93    	countries, must be caused, mainly by the ignorant or wilful
94    	mistakes of the rulers of mankind. This ignorance is dispelled by
95    	a knowledge of the science of political economy, and so far as
96    	human happiness is concerned, it is vastly more important than
97    	any, or even all other sciences.
98    	     How then does it happen, that while such proficiency has
99    	been made in other sciences, the foundations of this are scarcely
100   	yet laid -- that while the science of medicine has its
101   	established principles, definitions, technical phrases and terms
102   	of art, which always convey the same ideas to its professors,
103   	there is not to be found in the whole science of political
104   	economy, a single uncontroverted principle, or an acknowledged
105   	definition.-- That philosophers are not yet agreed in their
106   	definitions of national wealth, nor in its sources or causes?
107   	     That so much less progress has been made in political
108   	economy, than in other sciences, arises in part from the
109   	different nature of the sciences, and in part from the careless
110   	manner, in which political economy has been treated, by using
111   	words without affixing to them a precise technical meaning.
112   	     The science of medicine, including anatomy and physiology,
113   	is a physical science. Political economy is a moral science. The
114   	one is a science of sense, the other a science of reason. A moral
115   	science is not susceptible of such minute accurate investigation,
116   	as a physical science. In the one case we see and feel the
117   	subject about which we reason.-- In the other the subject is not
118   	tangible -- it can only be grasped by the mind.
119   	     Metaphysics and moral philosophy are moral sciences, and
120   	have been subjected to the laws of science, and political economy
121   	may be subjected to the same laws. But in order to do this,
122   	writers must use no ambiguous words.-- They must use words
123   	relating to different branches of the science in their precise
124   	technical meaning, which must be understood, and always kept in
125   	mind.
126   	     This rule has never yet been observed by any writer on
127   	political economy; which frequently proceeds from carelessness in
128   	the use of words, rather than ignorance of their meaning. Adam
129   	Smith no doubt knew the precise meaning of the word, nation, but
130   	in reading his "Wealth of Nations," one would be led to suppose
131   	that by the word, nation; he meant some constituent part of the
132   	nation, as its merchants or farmers. A great deal of obscurity
133   	has also been caused by his ambiguous use of the word capital.
134   	     It can hardly be supposed that any writer on political
135   	economy should not know the precise meaning of the word ,
136   	and the difference between a debt of an individual and a debt of
137   	a nation, when the creditors are citizens or constituent parts of
138   	that nation; and yet in treating of a national debt, almost every
139   	writer is in the constant habit of not discriminating between
140   	these different meanings of the word, and of using it in its
141   	wrong sense, when speaking of a national debt. The words,
142   	 and , are not more distinct than these
143   	different meanings of the word, debt.
144   	     It is true a nation may be in debt, in that sense of the
145   	word in which one merchant is in debt to another, but this is
146   	always when one nation is in debt to another nation, and not to
147   	its own citizens, or to itself.
148   	     If a man was to fancy, that one of his pockets owed the
149   	other a thousand dollars, and thence conclude that he was in debt
150   	a thousand dollars, it would not be more absurd than to conclude,
151   	that because a nation owed its own citizens, therefore, it was in
152   	debt, in the ordinary acceptation of the term. Or, it may with
153   	just as much propriety be said, that because A is in debt to B a
154   	thousand dollars, therefore, the nation is in debt a thousand
155   	dollars, as to say that because a nation owes its citizens a
156   	hundred million, therefore, it is in debt a hundred million, in
157   	the ordinary acceptation of the term.
158   	     It is unfortunate for the science of political economy, that
159   	the word, debt, was ever used to express the idea of a nation,
160   	owing to its citizens a sum of money. Men are so prone to attach
161   	to words their ordinary meaning, that they are constantly
162   	embarrassed and perplexed by the ambiguity of the word. Hence the
163   	advantage to science of never adopting a popular word as a
164   	technical term -- hence the advantage of taking terms of art from
165   	the dead languages. It prevents ambiguity and uncertainty. People
166   	who do not understand the term do not use them.  They never have
167   	a popular and a technical meaning, and their use can cause no
168   	ambiguity.
169   	     People often look with astonishment at the enormous
170   	magnitude of the debt of England, and had not the experiment been
171   	made, it would have been thought impossible for a nation to
172   	sustain the burden of a debt of a thousand millions, and
173   	regularly pay the interest on that debt, without exhausting, or
174   	even impairing the resources of the nation. But the whole
175   	difficulty of the problem proceeds from attaching the popular
176   	meaning to the terms, . If the nation is a debtor,
177   	it is likewise a creditor to an equal amount, and so long as the
178   	debit and credit sides of the account balance, what difference
179   	does it make whether the account be large or small? There may be
180   	some inconvenience in keeping so large an account, and receiving
181   	and paying so much money, but the means of payment can never
182   	fail, so long as the nation receives all that it pays.
183   	     A nation may be in debt in the popular sense of the word, as
184   	where one nation owes another nation money, and in that case a
185   	national debt becomes a drain upon the national resources. But in
186   	modern times this is not the case to any great extent, and not
187   	what is ordinarily meant when we speak of a national debt. By a
188   	national debt, is meant the amount of money which a nation owes
189   	to itself, or, what is the same thing, to its own citizens. To
190   	ascertain the influence of such a debt on national wealth, is the
191   	object of the present inquiry.
192   	     That a national debt of a very great magnitude, has an
193   	inauspicious influence on national wealth, there can be no doubt.
194   	I say, a debt of very great magnitude, because a national debt
195   	does not necessarily diminish public wealth.-- It is only when it
196   	becomes unwieldy and inconvenient from its magnitude, that it
197   	becomes oppressive to the nation. It is, however, a prevailing
198   	idea with those who talk of a public debt, and with many eminent
199   	writers too, that the resources of the country -- the energies of
200   	the nation, are physically impaired by a national debt. Thus says
201   	Adam Smith, "had they" (the public creditors) "not advanced this
202   	capital to the government, there would have been in the country
203   	two capitals, two portions of the annual produce instead of one,
204   	employed in maintaining productive labour." And again, "when the
205   	public expense is defrayed by funding, it is defrayed by the
206   	annual destruction of some capital, which had before existed in
207   	the country -- by the perversion of some portion of the annual
208   	produce, which had before been destined for the maintenance of
209   	productive labour."+1+
210   	     But this is a total mistake -- the aggregate of a nation's
211   	property or capital is just as great after as before a public
212   	debt is contracted.-- The expenditure of the money by the
213   	government is not a destruction of it. The capacity of a nation
214   	for acquiring the necessaries and comforts of life, may be just
215   	as great with a debt, as large as that of England, as it would be
216   	with no debt at all. -- A public debt does not necessarily impair
217   	either the source or cause of wealth. -- The industry of the
218   	nation may be just as great -- its lands just as productive --
219   	its manufactures and commerce just as lucrative, and therefore,
220   	the annual product of labour just as great, notwithstanding the
221   	debt, because it does not affect either the climate or soil of
222   	the country, or the physical energies of man in cultivating it,
223   	and so long as the public creditors are all citizens, it cannot
224   	diminish the quantity of circulating medium, for it sends no
225   	money out of the country. Its only necessary effect is, to alter
226   	the channels of circulation, and change the mode of distributing
227   	the annual product of labour to the consumer.
228   	     The money which represents the annual product of labour,
229   	will not circulate through precisely the same channels with a
230   	heavy national debt, that it would do without it. So a storm of
231   	wind may cause the waters of the ocean to circulate through the
232   	different channels, and to occupy a different relative position
233   	from what they would have done, but for the storm, although the
234   	storm neither augments the whole quantity of water, nor the
235   	quantity which one part of the ocean exchanges with the other
236   	parts.
237   	     So if a national debt lessens the quantity of money in one
238   	man's pocket, it augments the quantity to an equal amount in the
239   	pocket of another, and so far as national wealth is concerned, it
240   	matters not, whether the money is in the pocket of A or in that
241   	of B.-- The proportion that is in the pocket of each, may be a
242   	matter of some importance to the nation, and if a national debt
243   	has a tendency to cause a more unequal division of property, and
244   	consequently a more unequal division of the product of labour, it
245   	will for that reason, have an unfavourable influence on public
246   	wealth. But it is a matter of total indifference to the nation,
247   	whether A is rich, and B poor, or B rich, and A poor, provided
248   	the proportion is the same in both cases. All these circumstances
249   	are important to the individuals, and with those who suppose,
250   	that a privileged few, constitute the nation, they will be
251   	considered important to the nation, but with those who consider a
252   	nation as composed of every individual in it, these things, so
253   	far as national wealth is concerned, will be considered wholly
254   	unimportant.
255   	     It has been stated in a preceding chapter, and attempted to
256   	be proved, that a national debt may be augmented until the
257   	ordinary expenditure of the government, and the interest on the
258   	public debt, which has been called its extraordinary expenditure,
259   	equals the value of the annual product of the nation's labour --
260   	that the effect of funding a public debt, is merely to separate
261   	the use of property from the possession and the legal title, and
262   	that so long as the government preserves its faith with the
263   	public creditors, its irregular or extraordinary sources of
264   	revenue from loans, cannot fail (unless some revolution or
265   	convulsion takes place), when the ordinary revenue of the
266   	government, will equal the revenue of the nation. In theory,
267   	these principles are susceptible of demonstration, although no
268   	nation will probably ever submit to have them adopted to their
269   	fullest extent in practice.
270   	     Experience, so far as it goes, corroborates this theory. The
271   	revenue of the English government is at present equal to one-
272   	quarter, if not one-third of the annual revenue of the nation,
273   	and yet this enormous revenue is paid with the utmost facility by
274   	the nation, perhaps with as little inconvenience as the United
275   	States pay their comparatively small revenue to the state and the
276   	general governments, and the English government finds as little
277   	and perhaps less difficulty in borrowing money now, than it did a
278   	hundred years ago, when its debt was comparatively nothing; and,
279   	although it is plain, that the debt of a nation cannot be augment
280   	, yet there are no assignable limits to its
281   	augmentation, short of those pointed out.
282   	     In our reasoning upon this subject, we must be careful to
283   	keep in mind the different parties concerned in creating a public
284   	debt. The individuals of whom the money is borrowed, are the
285   	creditors -- they area also a portion of the nation. -- The
286   	nation in its corporate capacity is the debtor, and all its
287   	property is bound for the payment of the debt.-- The government
288   	makes the contract for the nation, and binds it to the
289   	performance by pledging its property in point of fact, though not
290   	in form, for the payment of the debt, or the interest when the
291   	debt is funded.  The government acts in the capacity of an agent
292   	or broker between the parties, -- it acts with more dignity and
293   	authority than ordinary agents and brokers, it is true, but
294   	nevertheless it acts in this particular, correspond with the acts
295   	of an agent or broker in making a contract for their principals.
296   	The government, however, makes the contract in its own name, but
297   	for the parties as above described.
298   	     Nominally all the people, or the nation in its corporate
299   	character, is debtor to the government, but in reality those only
300   	are debtors who have more to pay than to receive. Most of the
301   	people no doubt who possess property, own more or less of the
302   	public stock, and it depends on the proportion between their
303   	stock and their other property, whether they are in reality
304   	debtors to the government. If their proportion of stock is too
305   	small, they are debtors -- if too large, they are creditors. When
306   	they are debtors, they pay more taxes than they receive dividends
307   	on the public stock -- when creditors, they receive more
308   	dividends than they pay taxes, but the sum total of the receipts
309   	is exactly equal to the sum total of the payments by the people.
310   	If a man owns a hundred acres of land and pays ten pounds taxes,
311   	or interest on the public debt, and owns stock which draws him
312   	ten pounds interest, his accounts with the government balance,
313   	and he in reality is not burdened with the public debt. A man who
314   	rents a farm and pays the taxes, of course rents it so much the
315   	cheaper for the taxes --If he buys one, it costs him so much the
316   	less --If he inherits it, he will have in quantity what will make
317   	up for the deficiency in value.
318   	     Suppose a farm without the charge of the national debt would
319   	rent for two hundred pounds, but with that charge, only rents for
320   	a hundred and fifty pounds, what difference does it make to the
321   	tenant, whether he pays a hundred and fifty pounds to his
322   	landlord, and fifty to the government, or the whole two hundred
323   	to the landlord? And what difference does it make to the
324   	landlord, whether in consequence of the national debt, he has two
325   	hundred acres of land which will rent for only a hundred and
326   	fifty pounds, or without the national debt, to have a hundred and
327   	fifty acres of land which would rent for the same money. The same
328   	observations apply to every other species of taxable property.
329   	     Should it be asked, what reason there is for supposing, that
330   	in consequence of the public debt, the property-holders in
331   	England have a greater quantity of property, than they would have
332   	had, without a national debt; I answer, because it must be
333   	presumed that the population of England would have been just as
334   	great without, as with the public debt. It will hardly be
335   	contended that it would have been less, for if the population is
336   	greater with, than it would have been without the national debt,
337   	its utility to the nation, is established beyond all controversy.
338   	     If the public creditors had not vested their funds in the
339   	national debt, they would have vested them in the real and
340   	personal property of the country -- they would have shared the
341   	land and other property in the kingdom, with the present
342   	proprietors, whose shares would of course have been lessened.
343   	     If then in consequence of the national debt, the public
344   	debtors, or in other words, the property-holders of the country
345   	have more to pay, than they would have had, had the debt never
346   	existed, they have also more means to pay with -- they have more
347   	land, more goods, more ships, and more money. An individual
348   	property-holder, may have more money to pay, inconsequence of the
349   	public debt, but the whole number of property-holders, have not.
350   	Or if an individual has more to pay, he has also more to pay
351   	with, so that it is as broad as it is long. There is just the
352   	same quantity of money to be paid, and the same quantity to be
353   	received. The tenant has the less to pay to his landlord, by as
354   	much as he pays to the government, and so of every other hirer or
355   	purchaser of property, personal as well as real. The channels of
356   	circulation may be changed, although the quantity circulated is
357   	not altered.
358   	     In short, the public debtors and public creditors stand in
359   	relation to each other, upon precisely the same ground, that
360   	private debtors and creditors stand.  The circumstance of
361   	interposing the government as a broker or agent, between the
362   	parties, does not alter the real nature of the case; and there
363   	would be just as much propriety in supposing, that a nation must
364   	necessarily sink under the private debts of the people, as under
365   	a public debt, within the limits pointed out.
366   	     If all the money that private creditors receive from their
367   	debts in a year, was collected into one mass, it would make an
368   	enormous heap. It might, perhaps, be as great as the annual sum
369   	paid by the English nation, on their public debt; but a single
370   	dollar in the course of a year may, perhaps, pay a hundred or a
371   	thousand debts, equal to its value. The act of paying does not
372   	diminish its capacity for paying, and if it was possible to
373   	circulate it so rapidly, it might pay a debt equal to its value,
374   	every minute the year round.
375   	     The only difference between a debt which an individual owes
376   	the government, and one which he owes his neighbour, is, that in
377   	the one case, he has to pay the government the expense of
378   	collecting it, while in the other, there is probably no expense
379   	attending the collection, or if there is, the creditor pays it. A
380   	national debt does not affect the quantity of money in a nation,
381   	nor has the nation any more, or less money to pay in consequence
382   	of it.
383   	     A national debt does not necessarily diminish the quantity
384   	of national industry. The people of England have just as much
385   	physical power, or if they have not, they might have, with their
386   	enormous debt, as without it. They may be just as skilful in the
387   	arts, and just as industrious in their habits; and if we were to
388   	reason from analogy, we should be led to suppose, that a national
389   	debt, had a tendency to promote, rather than discourage national
390   	industry. Such would seem to be the inference from the history of
391   	the English debt.
392   	     If national debt was the mill-stone about a nation's neck,
393   	which it popularly supposed to be, England would long since have
394   	been sunk in the bottom of the political ocean. But although her
395   	debt has increased to an amount which the imagination can
396   	scarcely conceive -- to an amount vastly greater than all the
397   	gold and silver in the world; still it has not produced the least
398   	visible effect upon her wealth or power. Upon her prosperity it
399   	may have, for it is one great cause of the pauperism in that
400   	country.
401   	     The only way of ascertaining whether the sum of national
402   	industry, has been diminished, by the national debt, is by
403   	comparing England with those nations that have not been
404   	encumbered by such an enormous debt.  The result of such inquiry
405   	would seem to make in favour of, instead of against a national
406   	debt. There is certainly no nation in Europe, if in the world,
407   	whose national industry is as great as that of England. The
408   	annual product of her labour, in proportion to the number of her
409   	people, is greater than that of any other people on earth, and
410   	that the people of England do not enjoy the necessaries and
411   	comforts of life, in as great abundance, as nay other people on
412   	earth, is not because they are not produced by their labour in as
413   	great abundance, but because, in consequence of some defect in
414   	their system, they are not as equally distributed as they should
415   	be. That defect consists in those unequal laws which have caused
416   	the great inequality in the division of property which exists in
417   	that country.
418   	     The superior industry of the English over other nations,
419   	may, no doubt, be accounted for from other causes, than their
420   	national debt, although there is no doubt, but that a national
421   	debt, to a certain extent, may be useful in promoting national
422   	wealth.  Should the United States create a debt annually, of a
423   	million of dollars, and expend it in building bridges, canals,
424   	and roads, it would, no doubt, be the means of promoting public
425   	wealth; and any expenditure whatever by a government which
426   	augments the quantity of national industry, will also augment
427   	national wealth.
428   	     It is a popular notion, that one generation can load another
429   	generation with debt. Thus Mr. Hume says in his Essay on Public
430   	Credit, "our modern expedient for defraying the expense of war,
431   	is to mortgage the public revenues, and to trust, that posterity
432   	will pay off the incumbrance contracted by their ancestors." But
433   	this is a mistaken notion. The present generation of men inherit
434   	the earth as free of incumbrance, as any preceding generation;
435   	and as one generation cannot accumulate the fruits of the earth
436   	for posterity, neither can it load a succeeding generation with
437   	debt. This is manifestly true in regard to nations, except where
438   	one nation becomes indebted to another, and binds posterity to
439   	discharge that debt. This however never was and never will be the
440   	case, to any considerable extent.
441   	     It may, therefore, be laid down as a general rule, in regard
442   	to nations, that one generation can neither accumulate wealth for
443   	a succeeding generation, nor load it with debt. It may, however,
444   	make such a division of property, and leave its affairs in such a
445   	state of entanglement and perplexity, as to cause great national
446   	distress. An individual may accumulate property to such an
447   	amount, as to leave his posterity rich, but a nation can do no
448   	such thing. The annual product of labour must be consumed --
449   	there is no saving it for posterity. Every generation must labour
450   	for its own subsistence, but it cannot be compelled by any
451   	political manoeuvre whatever, to supply a preceding generation
452   	with either the necessaries or comforts of life. The fruits of
453   	the earth must be produced before they can be consumed.
454   	     An individual may accumulate such an amount of property as
455   	that others will supply him and his posterity with the
456   	necessaries and comforts of life for the use of that property,
457   	but it is manifest a nation can do no such thing.  All a nation
458   	can do, is to augment its capacity for acquiring the necessaries
459   	and comforts of life by labour. It may improve the cultivation of
460   	its lands, and acquire skill in the various arts -- this is all
461   	that can be done for posterity.
462   	     Adam Smith says, "it is not contrary to justice that both
463   	Ireland and American should contribute towards the discharge of
464   	the public debt of Great Britain."
465   	     Had he understood the nature of a national debt, he never
466   	would have made such an assertion.  Nothing could be more unjust.
467   	Such a law would be precisely analogous to one which should
468   	compel A to pay a part of B's debt. To show the injustice of such
469   	a measure, let us suppose, a landholder in England has five
470   	hundred acres of land, upon which he pays ninety pounds a year of
471   	the interest on the public debt. This is the ratio throughout the
472   	kingdom. This landholder we will also suppose owns public stock
473   	upon which he receives annually ninety pounds interest. Suppose
474   	then a tax levied on the colonies to an amount sufficient to pay
475   	one-third of the interest on the debt. What effect has that on
476   	the English landholder? It puts thirty pounds a year into his
477   	pockets, and the measure would be in principle precisely
478   	equivalent to one, which should require A in Ireland to pay
479   	thirty pounds of B's debt in England. It would increase B's
480   	fortune that amount. The case would be different, if the debt was
481   	due to a foreign nation.  In that case the whole nation is in
482   	debt, and each individual should bear his just proportion, but in
483   	the other case, it is in reality a debt from portion of citizens
484   	to another portion, and to require a third persons to pay a part
485   	of the debt, is as unjust as it would be to say, they should
486   	receive a part of the individual's.-- What then are the evils of
487   	national debt?
488   	     They are of an entirely different character from what is
489   	generally supposed. When a national debt becomes very large, like
490   	that of England, the mere transfer of so much money, annually,
491   	from one class of citizens to another, causes not only a great
492   	deal of trouble and inconvenience to the people, but a great deal
493   	of actual distress and suffering. It may cause a man such trouble
494   	to pay a large sum of money every day in the year, although he
495   	may receive an equally large sum.  The money of the country
496   	circulates through an unnatural channel, and it requires a
497   	forcing pump, to keep it in motion.  All the money in the country
498   	is obliged to pass through the treasury three or four times a
499   	year, in order to be distributed according to the artificial
500   	order of things, which the national debt has caused.
501   	     The national debt, or more properly the national , is
502   	an unnatural, artificial species of property, which causes an
503   	unnatural, artificial mode of distributing the necessaries and
504   	comforts of life, to effect which, a troublesome, vexatious, and
505   	expensive machinery is necessary. This machinery consists of a
506   	host of collectors, excisemen, and the whole apparatus of the
507   	treasury department. These harrass, irritate, and oppress the
508   	people, and keep them in a constant state of excitement and
509   	disaffection towards the government. The real nature of public
510   	debt is never rightly understood by the people.-- It becomes
511   	therefore a powerful instrument in the hands of demagogues, who
512   	make it a hobby of popularity, and a theme of abuse. In short, a
513   	national debt of such an enormous magnitude as that of England,
514   	is a fruitful source of oppression, in the hands of government,
515   	in the collection of it -- a subject of eternal controversy among
516   	politicians, and of heart-burning and disaffection among the
517   	people.  It is also an engine of immense power, in the hands of
518   	the government, and power may be abused. These are serious evils,
519   	and constitute unanswerable objections to a large national debt.
520   	They are not, however, the only, nor indeed the principal evils
521   	of such a debt.
522   	     A public debt has a tendency to cause a much more unequal
523   	division of property, than would otherwise take place. It creates
524   	a new species property, what lawyers would call an incorporeal
525   	hereditament. It is a contrivance by which the stockholder
526   	acquires an interest in all the property of the nation, without
527   	the formality of deeds, and without having an exclusive right to
528   	any part of it.  The stockholder is relieved from the trouble and
529   	labour of managing any portion of the nation's property, or
530   	running any risk about the income that it may yield, while his
531   	share of the product is secured to him.  This contrivance enables
532   	the stockholder always to obtain interest fro his money, (an that
533   	too from the landholder, who can only make rent from his land,)
534   	without any risk of losing the principal. In short, a national
535   	debt, or national stock, is a sort of savings bank to the rich,
536   	and greatly facilitates their accumulation of property, and
537   	therefore strongly tends to increase the unequal division of
538   	property.
539   	     The treasury of England may be considered the strong box of
540   	the monied men of the nation, where they are permitted, not only
541   	to deposit their savings for safe keeping, but also for
542   	investment. The government is the broker, who takes charge of the
543   	fund, and so invests it, that it shall produce a profit to the
544   	owner. The poor man has no such strong box -- his weekly earnings
545   	will not be received into this great reservoir -- they are of too
546   	small account; or in other words, he cannot invest his small
547   	earnings in public stock -- the shares are too large to be
548   	purchased by him.  This increases the disparity between the rich
549   	and the poor, already too great.  It puts an engine into the
550   	hands of the rich, for augmenting their power, of which the poor
551   	cannot avail themselves.
552   	     A man who has invested a thousand dollars in stock, which
553   	yields six per cent interest, has acquired a power, in addition
554   	to his natural power, of compelling somebody to labour for him,
555   	to the amount of sixty dollars a year. In other words, he has
556   	acquired an artificial power of compelling somebody in the world
557   	to labour for him, until they produce a quantity of the
558   	necessaries and comforts of life, equal in value to sixty
559   	dollars; for sixty dollars is nothing but the measure or value of
560   	a certain quantity of the necessaries and comforts of life.
561   	     When, therefore, a man has acquired the power of procuring,
562   	without his own labour, a quantity of the necessaries and
563   	comforts of life, equal to sixty dollars, he has acquired a power
564   	of compelling, directly or indirectly, somebody to labour for him
565   	a sufficient time, to produce that quantity. Even the possession
566   	of a thousand dollars, then, confers a great power.  It may be
567   	compared to the lever in the hands of the savage. What then must
568   	be the power of his lever, when augmented a hundred or a thousand
569   	fold?-- Without the facility afforded by stocks of different
570   	kinds, there would not be the same facility for increasing this
571   	artificial power, as with them.
572   	     The operation of bank stock, and the funded national debt,
573   	that is, national stock, is precisely the same, with the
574   	exception of the different modes in which the interest is
575   	collected; the different agents by whom the different funds are
576   	managed, and the permanency of the interest. It is precisely the
577   	same thing to the debtor, whether he pays sixty dollars a year
578   	interest on bank stock, or on public stock.  In the one case, he
579   	pays the interest on a thousand dollars to the holder of the bank
580   	stock, through the agency of the bank officers. In the other
581   	case, he pays the interest on a thousand dollars to the holder of
582   	the public stock, through the agency of the government officers. 
583   	There may be this further difference: -- in the case of public
584   	stock, the debtor pays the expense of collection -- in the case
585   	of bank stock, the stockholder pays this expense.-- The law
586   	enforces the payment in both instances, though by different
587   	processes. In the one case, if the debtor does not pay the money
588   	when demanded, his goods will be seized, and sold by summary
589   	proceeding.  In the other, a suit must be brought, the expense of
590   	which the debtor must pay.
591   	     For the interest which the public debtor pays to the public
592   	creditors, he receives or enjoys an equivalent in property in
593   	proportion to the amount of taxes he pays, as much as a debtor to
594   	a bank receives from the stockholders, an equivalent for his debt
595   	and for the amount of interest he pays.  The tax-payer or public
596   	debtor, often thinks he receives no equivalent for the tax or
597   	interest he pays on the public debt.  But in this he is mistaken-
598   	- this is the source of error on this subject. In reality, the
599   	public creditor is a tenant in common with the public debtor or
600   	tax-payer, by a legal and equitable title, in all the property
601   	taxed for the payment of interest on the public debt, and the
602   	interest paid in the shape of taxes, may be considered as rent
603   	paid for the use of the public creditor's share.
604   	     Suppose the public creditors had not loaned their money to
605   	government; what would they have done with it?  What use would
606   	they have put it to? It cannot be presumed they would either have
607   	thrown it away, or hoarded it. They must then have vested it in
608   	lands, manufactories, ships, goods; or they must have loaned it
609   	to others who would have employed it in some of these ways.
610   	Suppose the money invested in land, what would have ben the
611   	effect upon the present landholders? it must necessarily have
612   	lessened their quantity of land, so that a landholder, who now
613   	has five hundred acres, would have only four hundred, or such a
614   	proportion as the national debt bears to the whole property in
615   	the kingdom. And although in that case he would have had no
616   	interest to pay on the stock of the public creditors, yet he
617   	would have had a hundred acres less land, which it is to be
618   	presumed, is equal to the interest he pays on the public debt.
619   	The same would have been the case with the merchant and
620   	manufacturer; so that, but for the public debt, they could not
621   	have purchased and held so much. In other words, the public
622   	creditors must have had their share of all the property both real
623   	and personal in the kingdom. They are therefore in reality,
624   	though not formally, tenants in common by a legal and equitable
625   	title with the public debtors in all the property on which they
626   	pay taxes; and the debtors do nothing more or less, than purchase
627   	out of their interest, by annuity, equal to the amount of
628   	interest, paid by the debtor, and to the amount of stock held by
629   	the creditor. The government is the broker that transacts the
630   	business, in the first place of investing the money, often, it is
631   	true, in mad schemes of ambition, or idle ones of extravagance;
632   	and afterwards of collecting and paying over this interest, with
633   	a view to the interests of both parties.
634   	     In reality then, the man who pays a portion of the interest
635   	on the public debt, receives a consideration for it, as much, and
636   	as ample as the man who pays interest to the holder of bank
637   	stock. The one receives a loan  in money, the other an
638   	equivalent in property, according to the nature of the property
639   	upon which he pays taxes. The one can rid of paying interest to
640   	the bank stockholder by returning the loan to the bank.-- The
641   	other by returning the property loaned.
642   	     Suppose a man owns five hundred acres of land upon which he
643   	pays sixty dollars a year towards the interest on the public
644   	debt. He wishes to be rid of paying this sixty dollars interest.
645   	How is it to be done? Let him sell the amount of the public
646   	creditor's interest in it, which is one thousand dollars.-- Let
647   	him take this thousand dollars to a public creditor, and purchase
648   	a thousand dollars worth of stock with it. He will then be a
649   	public creditor to that amount, and if he has sixty dollars a
650   	year interest to pay, he will also have sixty dollars to receive,
651   	so that his interest account will balance. His debt, it is true,
652   	cannot be extinguished nominally, although it may be in reality.
653   	     The analogy, therefore, between national stock and bank
654   	stock, holds substantially throughout, except as to the agents by
655   	whom the two are managed, and the processes of collecting the
656   	interest; and all the evils that flow from one, may flow from the
657   	other, and except the evils arising from the different modes of
658   	collection, the evils of the one, in proportion to the magnitude
659   	of the different stocks, are probably as great in the case of
660   	bank stock, as in the case of public stock.
661   	     Bank stock has, however, an advantage to the nation over
662   	national stock, in its flexibility of interest. The interest on
663   	public stock is permanent, and cannot fluctuate with the times.
664   	Bank stock is flexible, and accommodates its dividends, or
665   	interest, to the changes of the times. Hitherto, however, this
666   	has been an advantage rather in name, than in reality, for bank
667   	stock has always, (with, perhaps, a few exceptions,) yielded a
668   	higher interest than national stock.
669   	     Bank stocks are attended with many of the evils of a
670   	national stock; and if we are to judge from experience, we should
671   	be led to conclude, that they were as liable to abuse in their
672   	management. The people of this country have suffered vastly more
673   	from the mal-administration of bank stocks, in proportion to
674   	their magnitude, than the people of England have, from the mal-
675   	administration of the national stock of that country.
676   	     People in this country look with astonishment at the
677   	enormous increase of the national debt of England, in the last
678   	thirty years. They are deceived by appearances, and misled by
679   	names, or they would turn their astonished eyes from the increase
680   	of England's debt, and look with still greater astonishment, at
681   	the equally enormous increase of bank stock (which is but another
682   	name for a national debt,) in this country. The operation of the
683   	two kinds of debt upon the public is precisely the same.  The
684   	interest paid on the two kinds of stock, which is the only thing
685   	that affects the people in either case, is derived from the same
686   	source, and is produced by the same cause. The labour of the
687   	nation produces it in both cases. In the one case the stream runs
688   	from the fountain to the reservoir direct, and the eyes of the
689   	people can trace it from one  to the other. In the
690   	other case it takes a more circuitous course, and the people lose
691   	sight of it in its meandering.
692   	     Suppose a man in England lives on his dividends on national
693   	stock, and another in this country lives on his dividends on bank
694   	stock, will it be pretended that these dividends arise from
695   	different sources, or are produced by different causes?  Let them
696   	be traced to their origin, and see if they do not flow from the
697   	same fountain.
698   	     The national stockholder in England receives his dividends
699   	from the treasury -- who put them into the treasury?-- perhaps
700   	the landholder-- but how came he by them? If he cultivates his
701   	own land, then he dug them out of the earth.-- If he rents his
702   	land, then they were paid to him by his tenants, who dug them out
703   	of the earth by their own labour. If they were paid into the
704   	treasury by the brewers in England, under the name of excise;
705   	then the brewer obtained them from the farmer, the merchant, the
706   	mechanic, the manufacturer, and from his customers, one and all,
707   	to whom he sells his beer. These dividends the farmer digs out of
708   	the earth, the blacksmith hammers them out of his anvil, the
709   	weaver conjures them out of his loom, the merchant subtracts them
710   	from his balance of trade, the sailor mounts to masthead in the
711   	midnight storm, and gathers them from the winds and the
712   	lightning, and in this way the stockholder's dividends in England
713   	are produced, collected, and paid over. The whole is produced by
714   	the labourers of the country.
715   	     The bank stockholder also receives dividends on his stock,
716   	even to a greater amount than the national stockholder. Where
717   	does he get them? Out of the vaults of the bank. But how came
718   	they in the vaults of the bank? They were put there by the money
719   	borrowers -- by those who have obtained discounts. Here there is
720   	a winding in the rivulet, and people lose sight of it. They take
721   	the borrower to be the source from which it flows. But let the
722   	question be answered, where does the money borrower get the
723   	interest which he pays to the bank?
724   	     The borrower at bank is probably a merchant, and the loan
725   	serves him as a capital, which enables him to carry on the
726   	business of exchanging one commodity for another. His first
727   	operation, we will suppose, is to purchase a thousand barrels of
728   	flour, and a hundred hogsheads of tobacco, which he ships to a
729   	foreign market. He sells his flour and tobacco, and invests the
730   	proceeds in foreign goods, which he imports and sells to the
731   	farmer, the mechanic, the manufacturer, the sailor, in precisely
732   	the same manner that the brewer sells his beer to the same
733   	classes of people. After this is done, he strikes his balance,
734   	and finds that he has made gain enough to pay the interest on the
735   	loan, and leave him a profit. Not only the interest, but the
736   	profit, is paid to him by the persons to whom he sells his goods,
737   	and this interest is derived from precisely the same source,
738   	primarily, that the brewer in England derived the excise, which
739   	paid the interest on the national stock; and this source is
740   	precisely that which has furnished every cent of interest that
741   	ever was or ever will be paid on either a national or bank stock;
742   	and the cause which produces it is precisely the same.  The
743   	source is that great fountain, the earth -- the cause is the
744   	labour of man.
745   	     The principal evils of national debt consist in the trouble
746   	and vexation, which the collection of such an enormous amount of
747   	taxes, cause, and in its tendency to produce an unnatural
748   	inequality in the division of property.  This tendency proceeds
749   	in a great measure from the difference between rent and interest,
750   	the government borrowing money at the ordinary rate of interest,
751   	and obliging the nation to pay that interest from rent and the
752   	ordinary rate of profits, which are much lower than interest, for
753   	the reasons heretofore stated. The necessary consequence of such
754   	a system is gradually the transfer to the public creditors the
755   	use or beneficial interest in all the property of the nation, and
756   	must ultimately cause a national bankruptcy.
757   	     The question has been much discussed among the politicians
758   	of England, whether their national stock can be redeemed, or in
759   	other words, whether the national debt can be paid off; and what
760   	the effect of paying it off, would be upon national wealth and
761   	prosperity. For the accomplishment of this object various
762   	expedients have been proposed. It is not my intention to examine
763   	these various expedients, or compare their respective merits.  My
764   	knowledge of the subject is not sufficiently minute to justify
765   	the undertaking, nor is the subject itself of sufficient
766   	importance to an American politician to require it. It may
767   	however be well to state some few general principles respecting
768   	it.
769   	     Upon this subject it is always to be recollected that the
770   	public creditors are tenants in common, in fact, if not in form,
771   	with the public debtors, or property-holders, in all their
772   	taxable property.  That the title of the one, both in law and
773   	equity, is as valid, as the title of the other, and that any law
774   	which should operate to extinguish the title of the public
775   	creditors, without a fair compensation, would be equally unjust
776   	with a law which should extinguish the title of the public
777   	debtors to their property, and turn them out of the possession.
778   	The nation has a right to redeem the stock according to the terms
779   	of the contract with the public creditors, but no right whatever
780   	to take the property of the creditors and give it to the debtors,
781   	any more than to take the property of the debtors and give it to
782   	the creditors.
783   	     Some politicians have supposed, that if the national debt
784   	was , as the phrase is, it would relieve the nation from
785   	its present distresses. They reason about as wisely as a surgeon
786   	would, who seeing a patient afflicted with , should
787   	propose to relieve him by amputating a leg. A principal evil of
788   	the national debt of England, arises from the unequal division of
789   	property which it causes, and spunging the debt would have the
790   	effect of aggravating the evil tenfold. By extinguishing the
791   	title of the public creditors in the property of the public
792   	debtors, it would in effect transfer to the latter all the
793   	property of the former. It would not give a foot of land to the
794   	poor, nor put a cent of money in their pockets, nor would it
795   	raise the price of labour, but on the contrary lower it; for it
796   	would not increase the demand for labour.-- There would be no
797   	more work required after the debt was spunged, than before, and
798   	indeed, not as much, for the consumption would not be as great.--
799   	The public creditors whose means had been thus violently taken
800   	from them, would not have wherewithal to pay for so great a
801   	quantity of the comforts, and perhaps, could not even supply
802   	themselves with the necessaries of life. That part of the
803   	community whose property had been so suddenly increased, in
804   	consequence of spunging the debt, would not as suddenly increase
805   	their consumption of the necessaries and comforts of life. The
806   	consequence would be, that as the consumption of the country
807   	would be greatly diminished, the demands for labour would be
808   	diminished in the same proportion; and not only this, but the
809   	quantity of labour, that is, the number of those who must live by
810   	their labour, must also be increased. There would be a , and in the opinion of those who maintain
813   	that either of these constitute national wealth, spunging the
814   	debt, would, perhaps, promote national wealth.  But if national
815   	wealth consists in every able bodied man, being able to procure
816   	for himself and family, at least the necessaries of life, by his
817   	labour, spunging the debt would be an act of desperate madness,
818   	and instead of lessening, would aggravate the distress of the
819   	nation tenfold.
820   	     As then a national debt is a public evil, and as the evil
821   	cannot be cured, by the violent act of spunging, the next inquiry
822   	is, whether it can be redeemed.
823   	     One who has witnessed the operation and effects of winding
824   	up the concerns of a little, contemptible, broken bank, may form
825   	some idea of the operation and effects of redeeming the public
826   	stock of England, or of paying of the public debt. It usually
827   	takes several years to wind up the concerns, and pay off the
828   	stockholders of a bank of a few hundred thousand dollars, and it
829   	could not be done even so soon, but for the facilities afforded
830   	to the debtors of the bank, to transfer their debts to other
831   	banks. The effect also of paying off the stockholders, is in a
832   	great measure neutralized, by the facility they have of re-
833   	investing their money in other bank stock. Still, these small
834   	things enable us to form more distinct and accurate ideas of
835   	large ones, as an artificial globe enables us to form more
836   	accurate ideas of the globe we inhabit.
837   	     There is, however, this difference in the two case, in
838   	favour of national stock. The debtors to a bank, owe usually much
839   	greater in amount, in proportion to their means of paying, than
840   	the debtors to the nation; and the difficulty of paying, depends
841   	not upon the number of debtors, or the amount of the stock, but
842   	upon the means of the debtor for paying. On the part of the
843   	debtors, therefore, there might be less difficulty in redeeming
844   	the national stock, than the debtors of a bank, would find in
845   	paying off the stockholders.
846   	     The difficulty of redeeming a national debt does not, as is
847   	generally supposed, lie with the public debtors, or property
848   	holders, for it would not, probably, take more than twenty-five
849   	or thirty per cent of all the property in England, to pay the
850   	public debt; in other words, the interest of the public
851   	creditors, in the property of England, does not probably amount
852   	to more than a third or fourth of the value of the property. The
853   	debtors, therefore, in paying off the public debt, would not have
854   	more than a third or a fourth of their property to redeem, and it
855   	would seem, that a whole people might do that in fifty years, at
856   	most. It would seem, that every property holder in the kingdom,
857   	might at least pay one per cent of his debt a year, besides
858   	paying the interest on that debt. But if the public debt does not
859   	amount to more than a fourth of all the property in the kingdom,
860   	the property holders, in order to pay off the debt in fifty
861   	years, would only have to pay one half per cent of their debt a
862   	year, besides paying the interest on that debt. A general
863   	contribution then, of all the property holders of one per cent a
864   	year, on all their property, besides paying the interest, would,
865   	at farthest, pay off the national debt of England in fifty years.
866   	If the property holders then see fit, there seems to be no
867   	difficulty in paying off that debt within a moderate period,
868   	without much inconvenience to themselves.
869   	     But the most severe operation of paying off the national
870   	debt, would be on the public creditors. To compel them to sell
871   	their full amount of property, (for property they have, although
872   	they do not hold it by any of the common law titles, assurances,
873   	or conveyances,) and to receive their pay in money, at a price
874   	fixed half a century ago, which, at the time payment is made, is
875   	perhaps but a nominal price, may be upon them a very great
876   	hardship. The very effect of paying off the debt, would be, for a
877   	time, to lower the value of money, and raise the price of land
878   	and other property. Those creditors who had been paid in money,
879   	must vest it in something, and they could vest it in nothing but
880   	property. The demand for property would therefore be increased,
881   	and of course, would rise in value. The creditor would be
882   	compelled to sell his property at a fixed price, which cannot
883   	vary, and be obliged to re-invest his money in property, which
884   	has no fixed price, but which is constantly augmenting in value,
885   	in proportion to demand.
886   	     The legal title of all the property in the country, is in
887   	the public debtors-- the public creditors have a sort of
888   	incorporeal hereditament, or legal entity in that property, which
889   	the very act of paying off the public debt, extinguishes. The
890   	very effect then, of paying off any portion of that debt, is to
891   	relieve the property of the kingdom from a charge equal to the
892   	amount of the debt paid off, and to put the public creditors in
893   	possession of such a quantity of money, as there as been, of the
894   	debt, paid. This must immediately be invested in some kind of
895   	property, in order to procure to the owner a revenue -- he must
896   	either loan it, or he must reinvest it in property. If he loans,
897   	the borrower must invest it in property.
898   	     The demand for property is therefore increased, but the
899   	quantity in market remains the same. The consequence must be a
900   	rise in value. Money being the standard, or weight, by which the
901   	value of property is ascertained, it follows, that whenever
902   	property rises, the value or weight of money must sink. Property,
903   	therefore, which the public debtor has for sale, is raised in
904   	value, and money, which the public creditor is put in possession
905   	of, by the act of paying off the public debt, is sunk in value,
906   	by the very same operation; and this rise of the one, and fall of
907   	the other, is greater or less, in proportion to the rapidity with
908   	which the public stock is redeemed.
909   	     If paid off gradually, so as to give time for the money
910   	which the creditor is put in possession of, to be prudently
911   	invested before another quantity comes into market, something
912   	like an equilibrium may be preserved between the present value of
913   	money and property.
914   	     It is therefore, the interest of the property holders, or
915   	public debtors, to pay off the debt as fast as possible. It is
916   	for their interest to lay an income tax, and every other species
917   	of tax, which shall cause the public debt to be paid off, with
918   	the greatest possible rapidity. It is for the interest of the
919   	stockholders, or public creditors, not to have the debt paid off
920   	at all; or if paid off, to have it paid off as gradually as
921   	possible. Public stock is the most convenient property they can
922   	own, although not so for the nation.
923   	     The misfortune is, that the public creditors understand
924   	their interest much better than the public debtors or property
925   	holders, and they have besides, more influence with the
926   	government. When the property holders come to understand their
927   	interests as well as the public creditors, they will be the
928   	advocates for heavier taxes, for the purpose of paying off the
929   	public debt.+2+
931   	     +1+ Wealth of Nations, book v. chap. 3.
933   	     +2+The following observations of Mr. Malthus so nearly
934   	coincide with my own views of this subject, that I hope the
935   	intelligent reader will excuse me for quoting them. "I am far
936   	from being insensible to the evils of a great national debt.
937   	Though in many respects, it may be a useful instrument of
938   	distribution, it must be allowed to be a very cumbersome and very
939   	dangerous instrument. In the first place, the revenue necessary
940   	to pay the interest of such a debt, can be raised only by
941   	taxation, and as this taxation, if pushed to any considerable
942   	extent, can hardly fail of interfering with the powers of
943   	production, there is always a danger of impairing one element of
944   	wealth, while we are improving another. A second important
945   	objection to a large national debt, is the feeling which prevails
946   	so very generally among all those not immediately concerned in
947   	it, and consequently among the great mass of the population, that
948   	they would be immediately and greatly relieved by its extinction,
949   	and whether this impression be well founded or not, it cannot
950   	exist without rendering such revenue in some measure insecure,
951   	and exposing a country to the risk of a great convulsion of
952   	property. A third objection to such a debt is, that it greatly
953   	aggravates the evils arising from changes in the value of money.
954   	When the currency falls in value, the annuitants, as owners of
955   	fixed incomes are most unjustly deprived of their proper share of
956   	the national produce; when the currency rises in value, the
957   	pressure of the taxation necessary to pay the interest of the
958   	debt may become suddenly so heavy, as greatly to distress the
959   	productive classes, and this kind of sudden pressure must very
960   	much enhance the insecurity of property vested in public funds."
961   	     As to spunging the debt, Mr. Malthus says, "it is generally
962   	thought that all would be well, if we could but be relieved from
963   	the burden of our debt. And yet I am perfectly convinced, that if
964   	a spunge could be applied to it to-morrow, and we could put out
965   	of our consideration the poverty and misery of the public
966   	creditors, by supposing them to be supported comfortably in some
967   	other country, the rest of the society, as a nation, would be
968   	impoverished.  It is the greatest mistake to suppose that the
969   	landlords and capitalists would either at once, or in a short
970   	time, be prepared for so great an additional consumption as such
971   	a change would require." . p. 374, 375.
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