greater gainers, by the new finking-fund, as it has been thus judiciously formed. And, in this view of the fubject, its fteady operation will be of ftill greater utility to the nation, than even the payment of debts, because it is the prosperity of individuals, which forms the real wealth of the ftate. The ingenious the orifts, who oblige the world with projects, for paying the national debt, confider merely the intereft of the corporation, or public, without attending to what is of more importance, the advantage of the private perfons, of whom the public confift. Of Mr. Pitt's finking-fund, it is one of the greatest commendations, that it promotes the true intereft of both parties, in just proportions. A new order of buyers being thus introduced, and a new demand being thereby created, the price of ftocks must neceffarily rife, notwithstanding the arts of the stockjobbers; because the public fecurities become in fact of more real value. In proportion as the money is fent from the finking-fund to the stock-exchange, the price of stocks must gradually rife ftill higher. And a rife of ftocks, when gradual and steady, never fails to produce the most falutary effects on universal circulation, by facilitating transfers of property, and by aiding the performance of contracts. Recent experience confirms this general reasoning. Every one must remember how impoffible it was for individuals to borrow money on any fecurity, for any premium, till towards the end of 1784. When the stocks began . began to rife, the price of lands equally rofe, When the government ceased to borrow, and the unfunded debts were liquidated, manufacturers and traders easily obtained discounts, and readily acquired permanent capitals. But, the wisdom of man could not have devised a measure more favourable to circulation, than the fending of large fums, from day to day, into the Stock-exchange; whereby the course of circulation is conftantly filled, and, being always augmented, becomes ftill more rapid. It is the rife of stocks, and the fulness of circulation, which make money overflow the coffers of the opulent, unless fome unforeseen drain fhould be unhappily opened. When cafh becomes thus plenty, the natural intereft of money gradually falls, and bills of exchange, and other private fecurities, are readily discounted at a lower rate. In this happy ftate of things, money is faid to be plenty; and every individual is accommodated with loans and with discounts, according to his needs, by pledging his property, or his credit. Owing to all those facilities, every industrious man easily finds employments. The manufacturers are all engaged. The traders fend out additional adventures. The fhip-owners are offered many freights. The produce of the husbandman is confumed by a bufy people. And thus are rents more readily paid, and taxes more eafily collected. Such are the benefits, which refult to individuals and the ftate, from a rapid circulation, that can can only be promoted, and preferved, by fending money constantly into the Stock-exchange. It is thus, by inciting an active industry, that the payment of public debts, through the channel of a quarterly finking-fund, enables the people to pay the greatest taxes with ease and fatisfaction. And thus may we folve a difficult problem in political œconomy, whether the furplus of the public revenue ought to be applied in the discharge of debts, or in the diminution of taxes: the one measure affuredly invigorates the industry of the people, in the manner, that we have juft obferved; the other may promote their indolence, but cannot procure them an advantage, in any proportion to the benefits of unceafing employments, and the accommodation of more extenfive capitals: by means of industry the heaviest burthens feem light: by the influence of floth the flightest duty appears intolerable. It was owing, probably, to the invigorating effects of an augmented circulation, that our agriculture and manufactures, our commerce and navigation, not only flourished, but gradually increased, to their prefent magnitude, amidst our frequent wars, our additional taxes, and accumulating debts. How much the fcanty circulation of England was filled, during the great civil wars of the last century, by the vaft impofts of thofe times, and how foon the intereft of money was thereby reduced, we have already feen. Similar confequences followed the wars of William, and of Anne, Anne, owing to fimiliar caufes. The finking-fund, which, for several years after its creation, in 1716, did not much exceed half a million, produced, affuredly, the most falutary influences, even before the year 1727: The value of the public funds rofe confiderably, though the ftipulated intereft on them had been reduced, first, from 6 to 5 per cent. and, in that year, from 5 to 4 per cent. The natural interest of money gradually fell: The price of lands in the mean time advanced from 20 and 21 years purchase to 26 and 27: And our agriculture and manufactures, our trade and our fhipping, kept a steady pace with the general profperity of the nation*. Such are the falutary effects of a circulation, which, being replenished by daily augmentations, is preserved conftantly full. And thus it is, that the people are eafed in the payment of taxes, by being better enabled to pay them, while taxes are continually augmented, though there may be fome impofts, which ought to be repealed, as they prefs upon particular objects. On the other hand, an obftructed circulation never fails to create every evil, which can afflict an induftrious people: Scarcity of money, and unfavourable discounts; unpurchafed manufactures, and want of employments; unpaid rents, and unperformed contracts; are the mischiefs, which dif tress every individual, and embarrass the community, while circulation is impeded. The com For the above-mentioned facts, fee And. Chron. Com. vol. ii. p. 316-22. merce merce of England was well nigh ruined, during King William's reign, by the diforders in the coin, the want of confidence, and the high price of money. The foreign bankruptcies, in 1763, reduced the value of cargoes, which were exported in this year, from fixteen millions to fourteen, during several years, owing to the decline of general credit. How much the domestic business of Great Britain was embarraffed by the bankruptcies of 1772 and 1773, which, in England, amounted, in the first year, to 525, and to 562, in the fecond, is ftill remembered *. The complaints, which were at thofe periods made of a decline of commerce, were merely owing to an obftructed circulation, as fubfequent experience hath amply evinced. Wars, then, in modern times, are chiefly deftructive, as they incommode the industrious claf The following detail is alone fufficient to demonftrate how the manufactures of a country may be ruined by a languid circulation, without the interruptions of war. Of linen cloth there were ftamped for sale in Scotland, Of woollen cloth, there were fulled, in the Weft Riding of Yorkshire, in the year ended |