What is the true inference to be drawn from the annual number of bankruptcies has been the occasion of much dispute. On one side it has been confidently urged as a sure symptom of a decaying trade: on the other side it has been insisted that it is a circumstance attendant upon a thriving trade; for that the greater is the whole quantity of trade, the greater of course must be the positive number of failures, while the aggregate success is still in the same proportion. In truth, the increase of the number may arise from either of those causes. But all must agree in one conclusion,--that, if the number diminishes, and at the same time every other sort of evidence tends to show an augmentation of trade, there can be no better indication. We have already had very ample means of gathering that the year 1796 was a very favorable year of trade, and in that year the number of bankruptcies was at least one fifth below the usual average. I take this from the declaration of the Lord Chancellor in the House of Lords.[52] He professed to speak from the records of Chancery; and he added another very striking fact,--that on the property actually paid into his court (a very small part, indeed, of the whole property of the kingdom) there had accrued in that year a net surplus of eight hundred thousand pounds, which was so much new capital. But the real situation of our trade, during the whole of this war, deserves more minute investigation. I shall begin with that which, though the least in consequence, makes perhaps the most impression on our senses, because it meets our eyes in our daily walks: I mean our retail trade. The exuberant display of wealth in our shops was the sight which most amazed a learned foreigner of distinction who lately resided among us: his expression, I remember, was, that "_they seemed to be bursting with opulence into the streets_." The documents which throw light on this subject are not many, but they all meet in the same point: all concur in exhibiting an increase. The most material are the general licenses[53] which the law requires to be taken out by all dealers in excisable commodities. These seem to be subject to considerable fluctuations. They have not been so low in any year of the war as in the years 1788 and 1789, nor ever so high in peace as in the first year of the war. I should next state the licenses to dealers in spirits and wine; but the change in them which took place in 1789 would give an unfair advantage to my argument. I shall therefore content myself with remarking, that from the date of that change the spirit licenses kept nearly the same level till the stoppage of the distilleries in 1795. If they dropped a little, (and it was but little,) the wine licenses, during the same time, more than countervailed that loss to the revenue; and it is remarkable with regard to the latter, that in the year 1796, which was the lowest in the excise duties on wine itself, as well as in