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Show 588 Sl1Ml\IARY. PAGE ing an increased cost ·of production, and ernbarrassing com-nierce . . 479 Taxation, though it may sometimes stimulate to wealth, is so dangerous an instrume"{lt of distribution, that it can never be recommended with this view; yet, when a different distribution of property has actually been effected by it, the policy of a fresh change may be doubtful . . 480 If distribution be a nece ary element of wealth, it would be rash to affirm, that the abolition of a national debt must certainly increase wealth and employ the people . . . . 481 If the powers of production in a well peopl d country were tripled, the greatest difficulty would be the means of distribution; and it would depend upon the circum tance of proper means of di tribution being found, whether the in- . creased powers were a great good, or a great evil . . . . 482 It may be a question, whether, with the great powers of procluction possessed by this country, and with its actual division of property in land, the same stimulu , could be given to the increase of wealth, without the distribution occa-sioned by a national debt . . . . 483 Still there are serious evils belonging to a national debt. It is both a cumbersome and a dangerous instrument of dis-tribution . . . 4 84 On these accounts it 1night be desirable to dimini h the debt, and discourage its growth in future_; but after being accustomed to a great consumption, we cannot recede without passing through a period of great distress . . . 485 If a sponge were applied to the national debt, the rest of the society, instead of being richer, would be the poorer for it. More labourers would be thrown out of employment, and more capital would en1igrate . . . 486 The landlords would probably employ more menial servants, and this would be the best remedy that in the actual circumstances could be applied; but the structure of so-ciety would be greatly deteriorated by the change . . 487 The profits of capitalists, notwithstanding their relief fr~m taxation, would fall from the want of distribution and demand, and in a few years the whole produce would be re-duced . ib. SUMl\IARY. 589 A country with la~d, labour, and capital, has certainly the PAGE power of recovermg from this state of things ; but it would have p~ss~~ through a ~eriod of great stagnation; and finally a considetable body of unproductive labourers may be absolutely ne.cessary to call forth its resources . . . . . 488 The most ~esJrable proportion between the productive and unproductive classes is that which will give the greatest ex-changeable value to the national produce and th' . • , 1 piopor-tlon must vary according to the powers of production 489 ·--- SEcT: X.-Application of .some rif the preceding Principles to the Dzst_r~sses of the Labourzng Classes, since 1815, with general Observatzons,. The distresses of the labouring cl~sses have been attributed to de.ficient capital.. . The capit.al may be deficient compared With the populatwn, and yet not deficient compared with the effective demand for it . . . . . . . . . 490 If one fourth of the capital of a country were suddenly destroyed, or transported to a different part of the world, pro-fit~ would be high and saving would be the remedy required . . . . . . . . . . . . ' . . . . . 491 If, on the other hand, capital were diminished by the failure of some branches of trade which had formerly been very prosperous, profits would be low, and saving would not be the remedy required . . . . . . . . . . . . . ib. The state of England at present bears the nearest resemblance to the 1atter case. Its capital has been diminished, but its revenue and eftec~ive demand for produce have been dinlin, shed still more, and profits are low and uncertain . . 493 But when profits are low, and capital is on that account flowing out of the country; to encourage saving, is like the policy of encouraging marriage when the population is starving and emigrating . . . . . . . . . . 495 Our present low profits have been attributed to the cultivation of poor land, heavy taxation, and restrictions on com .. merce; but it is difficult to admit a theory of our distresses inconsistent with the theory of our prosperity . . . . ib. Whatever may be the final tendency of these causes ; yet as the country was more than usually prosperous when they |
