WHEN a tax is laid upon commodities, which are confumed by the common people, the neceffary confequence may feem to be, that either the poor must retrench fomething from their way of living, or raise their wages, fo as to make the burthen of the tax fall entirely upon the rich. But there is a third confequence, which very often follows upon taxes, viz. that the poor increase their industry, perform more work, and live as well as before, without demanding more for their labor. Where taxes are moderate, are laid on gradually, and affect not the neceffaries of life, this confequence naturally follows; and 'tis certain that such difficulties often ferve to excite the induftry of a people, and render them more opulent and laborious, than others, who enjoy the greateft advantages. For we may obferve, as a parallel inftance, that the moft commercial nations have not always poffeffed the greatest extent of fertile land; but, on the contrary, that they have labored under many natural difadvantages. TYRE, ATHENS, CARTHAGE, RHODES, GENOA, VENICE, HOLLAND, are ftrong examples to this purpose. And in all hiftory, we find only three inftances of large and fertile countries, which have poffeffed much trade; the NETHERLANDS, ENGLAND, and FRANCE. The two former feem to have been allured by the advantages of their maritime fituation, and the neceflity they lay under of frequenting foreign ports, in order to procure what their own climate refufed them. And as to FRANCE, trade has come very late into that kingdom, and feems to have been the effect of reflection and obfervation in an ingenious and enterprifing people, who remarked the immenfe riches acquired by fuch of the neighboring nations as cultivated navigation and

commerce.

THE places mentioned by CICERO, as poffeffed of the greateft commerce in his time, are ALEXANDRIA, COLCHOS, TYRE, SIDON, ANDROS, CYPRUS, PAMPHILIA, LYCIA, RHODES, CHIOS, BYZANTIUM, LESBOS, SMYRNA, MILETUM, Coos. All thefe, except ALEXANDRIA, were either fmall islands or narrow territories. And that city owed its trade entirely to the happiness of its fituation.

SINCE therefore fome natural neceffities or difadvantages may be thought favorable to industry, why may not artificial burthens have the fame effect? Sir WILLIAM TEMPLE *, we may observe, afcribes the industry of the DUTCH entirely to neceffity, proceeding from their natural difadvantages; and illuftrates his doctrine by a very ftriking comparison with IRELAND; where," fays he, by the largenefs and plenty of the foil, and fcarcity of people, all things neceffary to "life are fo cheap, that an induftrious man, by two days labor, may gain enough

to feed him the reft of the week. Which I take to be a very plain ground of "the laziness attributed to the people. For men naturally prefer eafe before labor, "and will not take pains if they can live idle; tho' when, by neceffity, they "have been inured to it, they cannot leave it, being grown a cuftom neceffary to "their health, and to their very entertainment. Nor perhaps is the change "harder, from conftant eafe to labor, than from conftant labor to eafe." After which the author proceeds to confirm his doctrine, by enumerating, as above, the places where trade has moft flourished, in antient and modern times; and

+ Account of the NETHERLANDS, Chap. 6.

d

Epift. ad Arr. Lib 9. Ep. 11.

Cc

which

which are commonly observed to be fuch narrow confined territories, as beget a neceffity for industry.

'Tis always obferved, in years of fcarcity, if it be not extreme, that the poor labor more, and really live better, than in years of great plenty, when they indulge themselves in idlenefs and riot. I have been told, by a confiderable manufacturer, that in the year 1740, when bread and provifions of all kinds were very dear, his workmen not only made a fhift to live, but paid debts, which they had contracted in former years, that were much more favorable and abundant*.

THIS doctrine, therefore, with regard to taxes, may be admitted in fome degree: But beware of the abufe. Exorbitant taxes, like extreme neceffity, deftroy industry, by producing defpair; and even before they reach this pitch, they raise the wages of the laborer and manufacturer, and heighten the price of all commodities. An attentive, difinterefted legislature will obferve the point, when the emolument ceases, and the prejudice begins: But as the contrary character is much more common, 'tis to be feared, that taxes, all over EUROPE, are multiplying to fuch a degree, as will intirely crufh all art and industry; tho', perhaps, their firft increase, together with other circumftances, might have contributed to the growth of thefe advantages.

THE beft taxes are those which are levied upon confumptions, efpecially those of luxury; because fuch taxes are lefs felt by the people. They seem, in fome measure, voluntary; fince a man may chufe how far he will use the commodity which is taxed: They are paid gradually and infenfibly: And being confounded. with the natural price of the commodity, they are fcarcely perceived by the con-fumers. Their only difadvantage is, that they are expenfive in the levying.

TAXES upon poffeffions are levied without expence; but have every other difadvantage. Most states, however, are obliged to have recourse to them, in order to fupply the deficiencies of the other.

But the moft pernicious of all taxes are thofe which are arbitrary. They are commonly converted, by their management, into punishments on industry; and alfo, by their unavoidable inequality, are more grievous than by the real burthen which they impose. 'Tis furprifing, therefore, to fee them have place among any civilized people.

In general, all poll-taxes, even when not arbitrary, which they commonly are, may be efteemed dangerous: Because it is fo eafy for the fovereign to add a littlemore, and a little more, to the fum demanded, that these taxes are apt to become altogether oppreffive and intolerable. On the other hand, a duty upon commodities checks itfelf; and a prince will foon find, that an increase of the impoft is na increase of his revenue. It is not eafy, therefore, for a people to be altogether ruined by fuch taxes.

HISTORIANS inform us, that one of the chief caufes of the deftruction of the ROMAN ftate, was the alteration which CONSTANTINE introduced into the finances, by fubftituting an univerfal poll-tax, in lieu of almost all the tithes, customs, and excifes, which formerly compofed the revenue of the empire. The people, in all the provinces, were fo grinded and oppreffed by the publicans, that they were glad to take refuge under the conquering arms of the barbarians; whofe dominion, as

To this purpofe fee alfo Effay I. at the end.

they

they had fewer neceffities and lefs art, was found preferable to the refined tyranny

of the ROMANS.

THERE is a prevailing opinion, that all taxes, however levied, fall upon the land at laft. Such an opinion may be useful in BRITAIN, by checking the landed gentlemen, in whofe hands our legislature is lodged, and making them preferve great regard for trade and induftry. But I must confefs, that this principle, tho' firft advanced by a celebrated writer, has fo little appearance of reafon, that were it not for his authority, it had never been received by any body. Every man, to be fure, is defirous of pushing off from himself the burden of any tax, which is impofed, and laying it upon others: But as every man has the fame inclination, and is upon the defenfive; no fet of men can be fuppofed to prevail altogether in this conteft. And why the landed gentleman fhould be the victim of the whole, and should not be able to defend himself, as well as others are, I cannot readily imagine. All tradefmen, indeed, would willingly prey upon him, and divide him among them, if they could: But this inclination they always have, tho' no taxes were levied; and the fame methods, by which he guards against the impofition of tradesmen before taxes, will ferve him afterwards, and make them fhare the burthen with him.

I SHALL conclude this fubject with obferving, that we have, with regard to taxes, an inftance of what frequently happens in political inftitutions, that the confequences of things are diametrically oppofite to what we should expect on the first appearance. 'Tis regarded as a fundamental maxim of the TURKISH government, That the Grand Signior, tho' abfolute mafter of the lives and fortunes of each individual, has no authority to impofe a new tax; and every OTTOMAN prince, who has made fuch an attempt, either has been obliged to retract, or has found the fatal effects of his perfeverance. One would imagine, that this prejudice or established opinion were the firmeft barrier in the world against oppreffion; yet 'tis certain, that its effect is quite contrary. The emperor, having no regular method of increafing his revenue, muft allow all the bashaws and governors to oppress and abuse the fubjects: And thefe he fqueezes after their return from their government. Whereas, if he could impofe a new tax, like our EUROPEAN princes, his intereft would fo far be united with that of his people, that he would immediately feel the bad effects of these disorderly levies of money, and would find, that a pound raised by general impofition, would have lefs pernicious effects, than a a fhilling taken in fo unequal and arbitrary a manner.

I'

T appears to have been the common practice of antiquity, to make provision, in time of peace, for the neceffities of war, and to hoard up treasures, beforehand, as the inftruments either of conqueft or defence; without trufting to extraordinary impofts, much lefs to borrowing, in times of diforder and confufion. Befides the immenfe fums above-mentioned, which were amafied by ATHENS, and by the PTOLEMIES, and other fucceffors of ALEXANDER; we learn from PLATOT, that the frugal LACEDEMONIANS had alfo collected a great treasure and ARIAN and PLUTARCH || fpecify the riches which ALEXANDER got poffeffion of on the conqueft of SusA and ECBATANA, and which were referved, fome of them, from the time of CYRUS. If I remember right, the fcripture alfo mentions the treasure of HEZEKIAH and the JEWISH princes; as profane history does that of PHILIP and PERSEUS kings of MACEDON. The antient republics of GAUL had commonly large fums in referve. Every one knows the treasure feized in ROME by JULIUS CAESAR, during the civil wars; and we find afterwards, that the wifer emperors, AUGUSTUS, TIBERIUS, VESPASIAN, SEVERUS, &c. always difcovered the prudent forefight, of faving great fums against any public exigency.

On the contrary, our modern expedient, which has become very general, is to mortgage the public revenues, and to truft, that pofterity, during peace, will pay off the incumbrances contracted during the preceding war: And they having before their eyes, fo good an example of their wife fathers, have the fame prudent reliance on their pofterity; who, at laft, from neceffity, more than choice, are obliged to place the fame confidence in a new pofterity. But not to waste time in declaiming against a practice which appears ruinous, beyond the evidence of a hundred demonftrations; it seems pretty apparent, that the antient maxims are, in this refpect, much more prudent than the modern; even tho' the latter had been confined within fome reasonable bounds, and had ever, in any inftance, been attended with fuch frugality, in time of peace, as to discharge the debts incurred by an expenfive war. For why should the cafe be fo very different betwixt the public and an individual, as to make us establish fuch different maxims of conduct for each? If the funds of the former be greater, its neceffary expences are proportionably larger; if its refources be more numerous, they are not infinite; and as its frame fhould be calculated for a much longer duration, than the date of a fingle life, or even of a family, it should embrace maxims, large, durable, and generous, fuitable to the fuppofed extent of its exiftence. To truft to chances and temporary expedients, is, indeed, what the neceffity of human affairs frequently

reduces us to ; but whoever voluntarily depend on fuch resources, have not neceffity, but their own folly, to accufe for their misfortunes, when any fuch befal

them.

If the abufes of treafures be dangerous, either by engaging the ftate in rafh enterprifes, or making it neglect military difcipline, in confidence of its riches; the abules of mortgaging are, more certain and inevitable; poverty, impotence, and fubjection to foreign powers.

ACCORDING to modern policy, war is attended with every deftructive circumftance; lofs of men, increase of taxes, decay of commerce, diffipation of money, plunder by fea and land. According to antient maxims, the opening of the public treafure, as it produced an uncommon affluence of gold and filver, served as a temporary encouragement to induftry, and atoned, in fome degree, for the inevitable calamities of war.

WHAT then fhall we fay to the new paradox, That public incumbrances are, of themselves, advantageous, independent of the neceffity of contracting them; and that any ftate, even tho' it were not preffed by a foreign enemy, could not poffibly have embraced a wifer expedient for promoting commerce and riches, than to create funds, and debts, and taxes, without limitation? Difcourfes, fuch as thefe, might naturally have paffed for trials of wit among rhetoricians, like the panegyrics on folly and a fever, on BUSIRIS and NERO, had we not feen such abfurd maxims patronized, by great minifters, and by a whole party among us. And these puzzling arguments, (for they deferve not the name of fpecious), tho" they could not be the foundation of Lord ORFORD's conduct, for he had more: fenfe; ferved at least to keep his partizans in countenance, and perplex the underftanding of the nation.

LET us examine the confequences of public debts, both in our domeftic management, by their influence on commerce and industry; and in our foreign tranfactions, by their effect on wars and negotiations.

THERE is a word, which is here in the mouth of every body, and which, I find, has alfo got abroad, and is much employed by foreign writers *, in imitation of the ENGLISH; and that is, CIRCULATION. This word ferves as an account of every thing; and tho' I confefs, that I have fought for its meaning in the prefent fubject, ever fince I was a fchool-boy, I have never yet been able to difcover it. What poffible advantage is there which the nation can reap by the eafy transference of flock from hand to hand? Or is there any parallel to be drawn from the circulation of other commodities, to that of chequer-notes and INDIA bonds? Where a manufacturer has a quick fale of his goods to the merchant,. the merchant to the fhopkeeper, the fhopkeeper to his cuftomers; this enlivens industry, and gives new encouragement to the firft dealer or the manufacturer, and all his tradefmen, and makes them produce more and better commodities of the fame fpecies. A ftagnation is here pernicious, where-ever it happens; because it operates backwards, and ftops or benumbs the industrious hand in its production. of what is useful to human life. But what production we owe to CHANGEALLEY, or even what confumption, except that of coffee, and pen, ink, and paper, I have not yet learned; nor can one forefee the lofs or decay of any one be

MELON, DU Tor, Law, in the Pamphlets published in FRANCE.

neficial