An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
General
An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
Besides the articles of expence here stated, there are many others, to
which no limit can be set. The _comptant_, or the King’s private orders
for secret service, and many different expences, form a great article.
Subsidies also to foreign courts: in short, much more, in all human
probability, is spent, than all the produce of this permanent revenue
can answer. So that from this no relief from debts can be expected,
except so far as it may be augmented by the falling in of the annuities
on lives. But public debts are to be paid only by funds appropriated for
that purpose: and were this revenue to be relieved of the whole 45
millions of interest charged upon it, I have little doubt but the King’s
expence would augment in proportion.
I shall delay making any observation upon the nature of the impositions
which produce this revenue, until we come to the subject of taxes, to
which it naturally belongs.
Besides this ordinary revenue of the Kings of France, which (if we
except 26 600 000 livres, or 1 182 222 _l._ 4 _s._ 5¼ _d._ upon the
capitation, added on account of the war only for a time) may be
considered as their civil list; there are other branches of revenue,
which are to be looked on as extraordinary supplies, imposed for raising
money in time of war, and for paying off the debts contracted, upon the
return of peace. Of this nature are _dixiemes_ and _vingtiemes_; taxes
very contrary to the spirit of the French nation, and to which they
never have submitted without the greatest reluctance, and only on very
urgent occasions.
The credit of France fell very low towards the end of the former war,
which began in 1744, and ended in 1748. The parliament registred with
great unwillingness every edict imposing new burthens. The _dixieme_ was
a great augmentation of revenue, for the time it lasted; but being an
imposition which the Kings of France never have been able to make
perpetual, it could not be pledged for such large sums as are required
in time of war, and which no nation, however wealthy, can furnish
annually, as they are demanded.
To supply, therefore, the want of a fund to be mortgaged, and
consequently the want of public credit, the King’s banker M. de
Monmartel, with other men in business, joined their credit, and supplied
the King’s extraordinary occasions. They opened a sort of bank _anno_
1745, where they received money at ½ _per cent._ _per_ month, the
principal payable on demand. This fund gained credit; payments being
regularly made as soon as demanded.
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