pation; but the supposition is quite erroneous, for the debt is almost entirely owing to ourselves; a little more than seventeen millions and a half, is all I believe that is owing to other countries.

What was in reality spent during the war? It was not capital, for that never before accumulated at half so rapid a rate. It was the produce of the labour of the people— food, clothes, swords, muskets, ammunition, accoutrements, which were made in consequence of the demand which then existed for them, which, in the absence of that demand, would never have existed at all, and which, if occasion should require, we could produce again as rapidly, and with as little inconvenience as ever. Had the true principle of supply and demand, however, been understood, the national debt would never have existed; for the people, who, by their labour and capital, could meet the enormous demand created by the spending of borrowed money, could have met that demand precisely as easily, had it been made upon them in the shape of an equal per centage upon the produce of their industry.

I have been induced to confine my observations upon this subject to mere general remarks to play about the gate of the

labyrinth, rather than enter it—because I have only in view the endeavour to fix attention to the great principle of these pages. Let the advocates of things as they are, solve their own riddles, and explain their own mysteries, as best they can; and verily I do not think that they can pitch upon a more difficult problem to solve satisfactorily than the absolute effect of taxation in the present state of society: there are so many pros and cons, so many ifs and buts, that I question whether George Bidder himself could make it out.

With reference to the principles of the Social System, there is no such difficulty; for the productive powers of labour being at all times in full operation, taxes would be an evil exactly proportionate to their amount. The strength of the giant being always exerted, whatever portion of it should be demanded for the service of the state, must of necessity be so much lost to himself.

CHAPTER XIII.

The public debt-Preliminary considerations-Comparison between the public and a private debt-Estimated amount of property in the British empire-Summary view of the progressive increase of the national debt, from the period of the revolution to 1st February, 1813.

THE public debt is the public witch, on whose devoted head the politically superstitious are for ever heaping the opprobrium of all their misfortunes, difficulties, and troubles. If an individual be in debt, and wishes to get out of it, he has to consider the amount of his debt, the amount of his income, and how long a time it will require to pay off the former, by laying aside a portion of the latter for that purpose. There is, however, an important preliminary to consider, namely, the possibility of reducing expenditure. If, for instance, a man be in debt £100, and his annual income be but £100, and the expenditure of £100 be necessary to the support of existence, it is certain that unless that man

can increase his income, he can neither pay off his debt, nor a single shilling of it, so long as he continues to live; but if his debt be £100, his income £100, and the necessaries of life but £90, it follows, that in the space of ten years he may relieve himself of the burden. In considering, therefore, the possibility of reducing or paying off the national debt, this distinction should be constantly kept in view.

The present amount of the national debt is, in round numbers, about eight hundred millions; and, according to Mr Colquhoun, the annual income of the country is about four hundred and thirty millions; by appropriating a tenth part of our present income to the purpose, it would therefore require about twenty years to pay off the debt entirely.

The first thing, however, to be determined is the value of the money which the national creditor ought to accept in liquidation of his claims, which value has been particularly defined in the chapter of this work entitled Distribution. Perhaps there would be no great hardship in imposing a pretty heavy per centage upon the produce of the country, for the purpose of repaying the national creditors, because, upon the principles of the

Social System, it would tell two ways; and it would merely require us to work a little harder than would otherwise be necessary. The more we should work, the more wealth and money too should we create, which money would be as valuable as that which the national creditor lent. Thus, at the expiration of every year, a few millions might be handed over to the national creditors, who, in all human probability, would hand them back again, to be converted into lands and buildings, and other national capital, for which they would receive ample remuneration, under the provision of the first article of national charges, as mentioned at page 108.

A question arises, Could we afford to pay off a large sum annually, say twenty millions or so? And I think it is answered by the well known fact, that our present difficulties arise chiefly from our being able to create wealth so easily and so rapidly, that nobody can be found to buy it fast enough. This evil the Social System would most effectually

cure;

re; for, upon the principles here laid down, demand must ever keep pace with production.

Dismiss the millions, both in the case of the income and the debt: thus, debt £800;