tends to make us less thrifty--to blind us to our real situation. If the expenses of a war be 40 millions per annum, and the share which a man would have to contribute towards that annual expense were 100_l._, he would endeavour, on being at once called upon for his portion, to save speedily the 100_l._ from his income. By the system of loans he is called upon to pay only the interest of this 100_l._, or 5_l._ per annum, and considers that he does enough by saving this 5_l._ from his expenditure, and then deludes himself with the belief that he is as rich as before. The whole nation, by reasoning and acting in this manner, save only the interest of 40 millions, or two millions; and thus, not only lose all the interest or profit which 40 millions of capital, employed productively, would afford, but also 38 millions, the difference between their savings and expenditure. If, as I before observed, each man had to make his own loan, and contribute his full proportion to the exigencies of the state, as soon as the war ceased, taxation would cease, and we should immediately fall into a natural state of prices. Out of his private funds, A might have to pay to B interest for the money he borrowed of him during the war, to enable him to pay his quota of the expense; but with this the nation would have no concern. A country which has accumulated a large debt is placed in a most artificial situation; and although the amount of taxes, and the increased price of labour, may not, and I believe does not, place it under any other disadvantage with respect to foreign countries, except the unavoidable one of paying those taxes, yet it becomes the interest of every contributor to withdraw his shoulder from the burthen, and to shift this payment from himself to another; and the temptation to remove himself and his capital to another country, where he will be exempted from such burthens, becomes at last irresistible, and overcomes the natural reluctance which every man feels to quit the place of his birth, and the scene of his early associations. A country which has involved itself in the difficulties attending this artificial system, would act wisely by ransoming itself from them, at the sacrifice of any portion of its property which might be necessary to redeem its debt. That which is wise in an individual, is wise also in a nation. A man who has 10,000_l._, paying him an income of 500_l._, out of which he has to pay 100_l._ per annum towards the interest of the debt, is really worth only 8000_l._, and would be equally rich, whether he continued to pay 100_l._ per annum, or at once, and for only once, sacrificed 2000_l._ But where, it is asked, would be the purchaser of the property which he must sell to obtain this 2000_l._? The answer is plain: the national creditor, who is to receive this 2000_l._, will want an investment for his money, and will be disposed either to lend it to the landholder, or manufacturer,