fifths of the effective power of money in the year 1792; if twenty shillings be only equal, in the year 1820, to twelve shillings in the year 1792, the RENT OF LAND must be considered as being reduced in the proportion of one-fifth, and not increased in the proportion of one-third. Supposing even rent to be as well and punctually paid in the year 1820, as in the year 1792.

By the measure proposed, three shillings and nine-pence of these twenty shillings, would be required under the assessment of fifteen per cent.; but, gradually and soon, the effective value of money, for the purpose of British expenditure, would become more than equal to the currency of 1792, for the like purpose.

On the supposition of the entire liquidation of the debt, and of the limitation of public relief to the incapable poor only, the amount of duties, taxes and rates to be required, would be very considerably less than in the year 1792. Since that time, the improvement and increase of the national territory and dependencies, of private property, of consumption, and in the productive powers of the national industry, has been very considerable; and although the increase of rent of land from 15s. per acre to 20s. per acre, is supposed, the burthen remaining to be sustained (in the event of the liberation of the country from debt) considered with relation to the means upon which that burthen would bear, would be very much lighter than in the year 1792. Money prices may be expected to decline in proportion to the reduction in the weight of impost, and the improvement in the productive powers of industry; and it may be inferred that the currency, after the liquidation of the debt, would be more effective, for the purpose of British expenditure, than the currency of the year 1792: it will be presumed, at the rate of not less than twenty per cent. It may be considered that the shilling would become equal to one shilling and two-pence halfpenny, nearly, of the currency of the year 1792.

In this case, the sixteen shillings and threepence which would remain to the landed proprietor for rent, after subtracting the assessment of fifteen per cent., would become equal, for the purpose

It is obvious that the alteration of money prices since the year 1792, varies in different situations. In towns, particularly in the metropolis, the difference is greater than in the country; and the variance between different parts of the country is considerable: a calculation of common application cannot therefore be given. The reader will, of course, adjust the calculation to the standard of his own information.

2 Taking the rent at 25 years purchase The assessment of 15 per cent would be at five per cent. 3s. 9d. per annum.

£25
3 15 or

By the word currency, as used in this tract, is meant simply, the power of money in commanding the possession of the necessaries and comforts of life, without regard to any distinction between a metallic and a paper currency.

of British expenditure, to nineteen shillings and sixpence of the currency of 1792.

In effective value, as compared with the present time, the improvement would be sixty-two and a half per cent, and the rent might be expected to be well paid. The landed proprietor (in respect of British income and expenditure) in lieu of being in a situation, inferior, as at present, to the landed proprietor in 1792, in the proportion which 12s. bears to 15s. or 1200l. to 1500l. per annum, (even supposing rent to be equally well paid) would become superior, in the proportion which 19s. 6d. bears to 15s. or 1950l. to 1500l. per annum. A great improvement, but not more than commensurate with the improvement and increase of the national territory and dependencies, and the national progress in the useful and productive arts.

If, however, in the course and development of circumstances, the landed proprietor (contrary to the supposition now entertained) should find that extent of improvement, more than would consist with the highest degree of general prosperity, some diminution of rent might ensue, and yet leave him in the enjoyment of great advantages from the liquidation of the Public Debt.

Other descriptions of property and income, will be considered upon the same estimate of the relative value of money, and with the like reference to British expenditure.

£60

The RENT OF DWELLING-HOUSES would perhaps, gradually decline. If an eventual reduction of one-third be allowed, the proprietor who receives ninety pounds at this time, equal to 547. only, of the currency of 1792, would receive Less the contribution 15 per cent. in a currency which would, progressively, become equal to 20 per cent. more than the currency of 1792, or

9-51

10 4

む 61 4

In this case, the sum of fifty-one pounds, which would remain to the proprietor, after subtracting the assessment of fifteen per cent. would become equal to sixty-one pounds four shillings of the currency of 1792. Which in effective value, as compared with the present income, is an improvement of upwards of thirteen per cent. The INTEREST OF MONEY, supposing the same rate of interest in each period, is less effective, in the year 1820, than in the year 1792, in the proportion of two-fifths.

If 1000l. per annum, in the year 1820, be admitted to be not more than equal to 600l. per annum in the year 1792, the interest of money, although maintaining the same rate, is in effect, two

fifths less.

The liquidation of the Public Debt, being calculated to render the currency more effective than even in the year 1792, when sixpence was equal to tenpence of the present currency, a person receiving ninety pounds for interest of money at 44 per cent.' equal in effective value to 54/. only, of the currency of 1792, would be required to pay 15 per cent., or 300l., in respect of the principal sum of 2000., which would leave remaining 17007., the produce whereof, at the same rate of interest, would be £76 10 per annum, which progressively would become equal

to 20 per cent. more than the currency of 1792, or 15 6

£91 16

The full sum of 20007., at 44 per cent. per annum, produces 901. per annum, in the reduced currency of 1820, equal to not more than 541. of the currency of 1792. The sum of 1700l. remaining, after subtracting the contribution of 15 per cent., would produce 76/. 10s. per annum, equal to 917. 16s. of the currency of 1792. In this case, the improvement upon the present incoine, in respect of the first mentioned sum of 2000l. after payment of the proposed assessment, would be seventy per cent.

It would, however, probably happen, in numerous cases, that security in all respects eligible or desirable-security equal to the hitherto reputed security of government annuities-could not be obtained at 4 per cent. If it be supposed that 3 per cent. only, could be obtained, the income from 17007, would be

add 20 per cent, as before

£51 0

10 4

£61 4

which, in effective value, is upwards of thirteen per cent. increase upon the effective value of the income of 90l. first mentioned, in the currency of the present time.

With regard to PUBLIC SALARIES, PAY, AND PENSIONS, an income of 100l. per annum (and in the like proportion for any greater or lesser sum) would be reduced to 851. But 1007. is how equal to 60l. only, in the year 1792; and in the event of the Liquidation of the Public Debt

adding 20 per cent. as before

would be equal, in the currency of 1792, to

£85 0

17 O

£102 O

Taking three per cent, stock at 68), and other Government stock at

the ordinary relative price, the interest or annuity is equal to four and a

half per cent. for money.

VOL. XVII.

Pum.

NO. XXXIII.

Ꭰ

£100 per annum is now equal to 607. per cent. per annum only, in the currency of 1792; 851. per aunum would progressively become equal to one hundred and two pounds of the currency of the year 1792; which is an improvement of upwards of seventy per cent. upon the present income.

The PROPRIETOR OF LANDS AND DWELLING-HOUSES, THE STOCKHOLDER, PUBLIC OFFICER, and all other PERSONS in the enjoyment of PUBLIC PAY AND INCOME, would, in effect, be benefited, after the subtraction of the proposed assessment of fifteen per cent., to an extent varying between thirteen and seventy per cent. in their respective incomes.

That is, supposing the present rate of rent of land not to decline, the rent of dwelling-houses to decline one-third, and admitting the ex-stockholder not to invest his capital, in numerous cases, at a higher rate of interest than 3 per cent.

The condition of the FARMER also admits of being sustained and improved.

To establish the farmer in a condition to support the peasant, to maintain his own family in the comforts proper to his station in society, and to make a proper and liberal return to the proprietor of the soil, is the first object, in the reduction of duties, taxes, and

rates.

The supply of grain and other native produce, at prices properly and sufficiently reduced, is the last, but important and eventual object, to be expected; which object should follow surely, but gradually, as the consequence of the ability previously afforded to the farmer, of producing at a less cost.

The proposed immediate or early reduction of duties and taxes, and the anticipated amelioration of the condition of the poor, to which might be added the repeal of the assessed taxes bearing immediately upon husbandry, would enable the farmer, in future, to produce at a cheaper rate.

And the laws regulating the import of foreign grain would prevent a precipitate or undue decline in the market price for grain; whilst a gradual reduction of the price regulating the admission of foreign grain (which a reduced cost of production would, from time to time, admit) would protect the consumer against the payment of any undue price.

Under this course of proceeding, the reduction of the rent of land does not appear to be in any manner necessary; it is therefore presumed, that if the average rent of land, at this time, be twenty shillings per acre, the rent of land generally might remain at that rate, and in particular cases might admit of increase.

And if, after the liberation of the country from debt, it should appear that that rate of rent could not be supported, without limiting the importation of foreign grain by law; the great weight

of the landed proprietors, in the legislation of the kingdom, affords sufficient assurance, that such limitation would not be removed without their assent and concurrence; and consequently, that if any limitation, in respect of the importation of foreign grain, should be necessary to the support of the interests of the landed proprietors, such limitation would be continued. The public debt being liquidated, the rate of rent, so far as might depend upon the regulation of the import of foreign grain, would be in their own hands. The public debt being liquidated, what interest in this country could or ought to prevail against any reasonable purpose of the landed proprietors ?

The MERCHANT, MANUFACTURER, AND TRADER, might be protected, in respect of any description of goods, the duty on which might be the subject of reduction or repeal, as already suggested,' by the return of the duty paid by them on goods on hand, so far as the previous payment of the duty could be ascertained. To this extent a decline of price would not prejudice the dealer.

And in regard to the further decline of money prices, most descriptions of goods (in the wholesale market) are at this time much depressed in price; the markets for goods, both domestic and foreign, have been so lowered, as to leave little ground of apprehension of any further immediate decline of price, from the proposed measure, (abstracted from the consideration of that constituent of price which consists of the direct duty) and against any tendency to further immediate decline, may be opposed the calculation of the effect of the general improvement of the country; and in particular, the consideration of the removal of the impediments, which the high duties present, to the advantageous revision of the British commercial system.

Eventually, lower money prices (than the mere reduction or repeal of duties would in the first instance justify) are to be expected; but there does not appear to be any ground for the apprehension of a sudden shock to market value, nor to apprehend that a decline in money prices would outstep the fair and desirable provision of the means of sale, under the advantage of less cost.

In respect of debits and credits, the public, on the balance, must be indebted to the merchant, manufacturer, and particularly to the tradesman, (unimportant as respects any alteration in the value of the currency, in the detail, to the debtor; but important in the aggregate, to the creditor) and the advantage of the improvement in the effective value of the currency, would be in their favor, in the proportion to which the public is so indebted.

1 "Further Observations," pp. 70, 71.