that they could be more cheaply collected if an impost were alone laid upon territorial possessions. If the first position, therefore, be admitted, the second is too obvious to require discussion. Without admitting that all taxes rest ultimately upon land, there can be no question that, in many countries, particularly in Britain, and more so in Ireland, it is the case with many of the public imposts: in whatever degree, therefore, a circuitous mode of collection is adopted, it is an improvident one; a tax, on rent alone, is a dishonest one; and in this light it is considered by Sir James Steuart, when he says, "the nett produce alone of the earth, is to be considered as a fund liable to taxation, and every contribution which bears not a just proportion to this quantity is wrong.

In discussions of this nature, rent and produce have always been confounded. The nett produce is very often considered as the rent of the landlord ;+ but this is an egregious mistake. The nett produce, as it has been created, is divided among many, and has been distributed into various channels. The industry of man has converted the land, which may be considered as the raw material, into produce, and from this industry has partly arisen the means of paying those taxes which must ultimately fall upon it. That to which I here allude, will, perhaps, be better explained by an example: every English labourer, who now purchases a pint of porter, pays for it two-pence halfpenny; out of this, one-penny halfpenny goes to the revenue. Now, it seems impossible that the labourer could pay this two-pence halfpenny, if his wages had not been raised so as to afford it; and, at present, if the person, who raised the barley,§ paid the penny-halfpenny to the revenue, and the labourer purchased his beer for one-penny, his wages would be so much the lower. In this case the revenue would be immediately collected, without having to go through the hands of the maltster and the brewer, in place of from the farmer, in the increased wages, which he must necessarily pay his workmen.||

The true art of a financier consists in simplifying the mode of collection. His chief object, therefore, ought to be directed to keep down the accumulation of figures, which only increases the interference of government with the private concerns of the people.

Steuart's Inquiry into the Principles of Political Economy, Book v. ch. 2. vol. iv. p. 179. Dr. Adam Smith, in his Wealth of Nations, Book v. ch. 2. vol. iii. 294, says, p. 66 a tax upon the rent of land cannot raise rents, because the nett produce, which remains after replacing the stock of the farmer, together with his reasonable profit, cannot be greater after the tax than before it." In this respect I differ from Dr. Smith, only in the meaning of words. I comprehend more things in the term, "nett produce," than he does, and this leads me to say that it is divided.

↑ In China, the taxes consist chiefly of the tenth part of the produce of the land, paid in kind. Barrow's China, p. 400.

Colonel Wilkes, in his History of the Mysore, has collected various authorities which shew, that in the southern provinces of India one-sixth of the produce of the land goes to the sovereign, p. 128.

The tax upon hops is immediately levied on produce.

The Income Tax, scrutinized by Dr. Gray, is a work which should be read by every person who wishes to understand this subject.

Wherever the collection of taxes tends to abridge personal liberty, or derange domestic economy, they are considered as oppressive, and excite discontent. This is the case, in particular, among uncivilized nations, where the people, through ignorance, are unacquainted with the nature of the social compact, and the necessity of every one contributing to the defence and protection of the whole. Such people should be taught, that "the idea of absolute dominion over any thing which we possess, is altogether incompatible with the existence of society, which necessarily renders all our possessions conditional. Property, whether moveable or immoveable, even the disposal of our time and of our personal labour, the most valuable of our property and most unquestionably our own, are all liable to the conditions and resstrictions prescribed by the community to which we belong.'

The Irish, of all ranks and religions, are remarkably jealous of taxation, and pay these imposts with reluctance. No subject throws them into greater irritation. According to their account, the country is utterly unable to support such a burden, and they deprecate an augmentation as fraught with national ruin; forgetting, that "from the nature of man, the defence of the state is a burden that must be borne, and that all those employed in its defence, must be fed and maintained out of the national income, which feeds and maintains every other person in society."+

The Dutch financiers used to levy taxes only on consumption, and maintained that it was impolitic to tax capital while it was actively employed. But by adopting this system they raised prices, which amounts to the same thing. This circumstance, however, modern financiers, whatever they may allege, never take into consideration. Consumption, I admit, is a much better test of the ability to pay taxes than possession. Who is most capable, the luxurious occupier or the owner, of paying the rent of a house? for, when empty, it produces its proprietor no income.

Situated as is the empire at present, the minister who deduces any result as to its resources or ability, defensive or offensive, from the custom-house and excise-office ledgers, or from the accumulating wares of merchants and manufacturers, will be egregiously mistaken. Let him discover the balance between the physical necessities of the productive part of the community, and those luxurious habits which they might abandon without injury, to themselves or to the state. Let him examine the, perhaps, latent resources of the empire, and he will then know the capabilities of the country. Let the people recollect, that in the payment of taxes, they are expending money for national defence; an object of much greater importance than the gratification of a taste for extravagant and luxurious living. Let the nation be informed, that the navy and army afford employment for its useless hands and superfluous manufacturers; and that although trade has been cramped by the peculiar cir

Wilkes's History of the Mysore, p. 108.

+ Dr. Gray's Income Tax scrutinized, p. 63.

Smith's Wealth of Nations, Book v. chap. 2. vol. iii. p. 289.

cumstances of the times, it is impossible that Europe can long continue in its present unprecedented condition.

The first object that attracts notice in considering the revenue of Ireland, is the debt, which exhibits a most melancholy picture of her financial situation. A rigid attention, therefore, to economy, will be necessary to prevent its increase. There are those, I believe, who would gladly apply a sponge to this part of our national accounts; but I consider those who entertain such views to be as much bankrupts in principle, as the present state of the revenue renders the country bankrupt in finance. It will, perhaps, be inquired, what remedy is to be applied? In the first place, a persevering system of economy, to lessen the national expenses, and the adoption of measures calculated to increase the national prosperity; which will enable the country to bear the burdens already imposed, and to support additional ones if ne

cessary.

The late Dr. Currie, under the name of Jasper Wilson, in a letter addressed to Mr. Pitt, says, "But when Mr. Hume predicted that a debt of a hundred millions* would bring on a national bankruptcy, he erred in his calculation only from not foreseeing the influence of the progress of knowledge on the useful arts, and the increased sources of revenue which would thus be opened."+ Again: "The security of property and the spirit of liberty diffused through the nation, have called forth the talents of our people. Britain has grown prosperous in spite of the wretched politics of her rulers. The genius of Watt, Wedgewood, and Arkwright, has counteracted the expense and folly of the American war." It is by such means as those to which Dr. Currie has adverted, that the evils of the national debt must be counteracted, for the writings of Mr. Pinto and of the Marquis de Casaux, can never render it beneficial; and it is obvious that the moment its amount becomes disproportioned to the income and population of the country, its speedy downfall is at hand.

To lay more taxes upon the people of Ireland in their present condition would, perhaps, be impolitic. The people in general, I speak here of the great mass of society, are poor and discontented; sufficiently enlightened to know something of their situation, but so necessitated, as to be able to afford little to the state.§ Should a weak minister, therefore, call upon them for contributions without raising their condition, his call will not be answered, but will recoil upon himself; displaying his ignorance and folly, and demonstrating the impotence of his measures.

* Davenant, who wrote about the time of the Revolution, and who, undoubtedly, was an able politician, foretold the ruin of Great Britain from a debt of two millions. Vol. ii. p. 283.

+ A Letter to the Right Hon. W. Pitt. London, 1793.

+ Ibid. p. 11.

Montesquieu has foreseen a country so situated.

In the next place, let the herd of idle tax-gatherers, who prey upon the vitals of the country, be discharged, and the revenue collected at as little expense as possible: enforce a rigid system of economy in every department of government; teach the people to respect themselves; animate them to industry; conciliate them;-and Ireland, emerging from her misfortunes, may yet be able to repay those from whom she has borrowed.

The ability to pay taxes depends upon the excess of productive labour over the wants of a country. Increase this excess, and you create consumption, without which no true system of taxation can exist; for that country must fall, the finances of which depend on exactions raised from possession. Many taxes on consumption are highly beneficial to the people; they may be so often imposed, as to restrain their immorality and their intemperance; they may be made to fall in such a manner, as to take from the idle to serve the industrious; and, in this case, they will tend not only to quicken, but to invigorate circulation.

The industry of man first establishes itself at home, and the test of its existence is exhibited in the investment of that industry by the improved state of agriculture; by the formation of canals, in consequence of the demands of trade, which, in fact, is the circulation of a country's products for the purposes of consumption; by the erection of buildings; by the opening of mines, and working them to advantage; and by extending the fisheries. It is from these that a revenue is to be collected,* and it will be cheerfully paid by an industrious nation. Let the financier of Ireland search for the causes, and he will be better able to discover the means; the income will of course follow. Can a minister look at the body of the people in that country, and meditate the imposition of duties there on hops, malt, soap, candles, and leather, all articles which are consumed by the people in England? It is useless to tax the land and the raw material, unless the landlord has customers for his produce, so as to render it advantageous to him to create revenue; encourage the creation of this revenue, and taxes may be collected as the produce is consumed.

The subject of national bankruptcy has been much discussed; but will it not be granted, that the finance of a country may be bankrupt without absolute ruin to the country? The Prince Regent, in the last session, 1810-1811, adverted to the defecit in the Irish revenue; but it is not apparent that there is the least cause for serious alarm. Under proper management the country will yet flourish, notwithstanding the amount of its debt. Were the people industrious, were they frugal,

• “Above all things, good policy is to be used, that the treasure and moneys of a state be not gathered into few hands; for otherwise, a statesman may have a great stock, and yet starve; and money is like muck, not good unless it spreads." Bacon's Essays, Civil and Moral, vol. i. p. 395.

+ "Political calculators abound with idle and visionary schemes for the payment of the national debt,, they would have been better employed in teaching the nation the easiest way, to bear it. The true secret is to increase our income; and, in proportion to the effecting that, you virtually lessen the debt." Annals of Agriculture, vol. i. p. 61.

and not over anxious for attaining by a short progress the highest state of polished society,* tillage and every other art would gradually improve as they extended. The surplus produce would condense itself in manufactures, in trade, in the purchase of shipping; and, instead of that universal complaint, so common in Ireland, of want of capital, the gales of its prosperity would blow from every quarter. Resources would be created independent of war or peace; resources, which, when once established, require no victories to defend, which dread not the invasion of hostile fleets, which no negociation could tear from their possessors, and that require no splendid establishments, for their maintenance.

There are calculators in abundance, who either dwell with great pathos on the wealth of the merchant, and the prosperity of commerce; or, on the contrary, comment on failures, which they say, shake the country to its centre. Foreign trade is highly valuable, but it is not the staff of the nation; it is by internal trade alone that we can estimate the circulation of national produce. Commercial capital I respect, because it represents the consolidated industry of the people. Attach the true meaning to these terms, and they will be readily understood; but it is nonsense to talk of the gain of internal barter. What one man receives, another expends: the country which furnishes the stake, sees it change hands, but does not on that account, become richer; and nothing more is acquired, than a proof that the knowledge or industry of man has created a something, which, if it did not exist, could not be transferred by barter from one hand to another. The commercial transaction which is going on, substantiates the important fact of the creation, and consequent possession of wealth, which in this point of view, is so far beneficial. To commerce I am a friend, and rejoice at its success. But foreign commerce would not long be carried on at a loss; and for every pound of export there is a re-payment, either in money or import, which is so much added to the national wealth. As to its depression, there are moments when the speculations of adventurers may produce that effect; but these are periods which last only for a season. It is impossible to annihilate industry when once created, or to destroy property which has been produced. Circulation may for a time cease, or become languid; but if it exist, the valuable part will again oscillate, without applying the nostrum of exchequer bills to increase rather than allay the disease. Ireland stands in need of circulation; the frequent settlement by conveniences to which I have often alluded, confirms this fact; and, as to the common test of custom-house entries, experience has shewn them to be exceedingly fallacious. Have we not seen France lose her West Indian trade, her American, her East Indian, her African,

* In Dean Tucker's Tracts on Trade and Revenue, this principle is shewn to a demonstration. Mr. Hume, in his letter to Lord Kaims, speaking of Scotland, says, "it is certain that the simpler kind of industry ought first to be attempted in a country like ours. The first arts will flourish, but in the capital, those of next value in the more opulent provinces, the coarser in the remote countries." 4 Survey of Britain, by Dr. Clarke, edit. 1801, p. 23.