TH

Finances

'His fubject confifts of many parts, not a little intricate. A proper diftribution will tend to perfpicuity; and I think it may be fitly divided into the following fections. ift, General confiderations' on taxes. 2d, Power of impofing taxes. 3d, Different forts of taxes, with their advantages and difadvantages. 4th, Manner of levying taxes. 5th, Rules to be obferved in taxing. 6th, Taxes examined with respect to their effects. 7th, Taxes for advancing industry and com

merce.

As

SECTION I.

General Confiderations on Taxes.

S opulence is not friendly to study and knowledge, the men beft qualified for being generals, admirals, judges, or minifters

minifters of ftate, are feldom opulent; and to make fuch men ferve without pay, would be in effect to ease the rich at the expence of the poor. With refpect to the military branch in particular, the bulk of those who compose an army, if withdrawn from daily labour, must starve, unless the public which they serve afford them maintenance. A republican government, during peace, may indeed be fupported at a very small charge, among a temperate and patriotic people. In a monarchy, a public fund is indifpenfable, even during peace and in war it is indispensable, whatever be the government. The Spartans carried all before them in Greece, but were forc'd to quit their hold, having no fund for a standing army; and the other Greek ftates were obliged to confederate with the Athenians, who had a public fund, and who after the Perfian. war became mafters at fea. A defect fo obvious in the Spartan government, did affuredly not escape Lycurgus, the most profound of all legiflators. Forefecing that conqueft would be deftructive to his countrymen, his fole purpose was to guard them from being conquered; which in

Sparta

A

Sparta required no public fund, as all the citizens were equal, and equally bound to defend themfelves and their country. state, it is true, without a public fund, is ill qualified to oppose a standing army, regularly difciplined, and regularly paid. But in political matters, experience is our only fure guide; and the hiftory of nations, at that early period, was too barren to afford instruction. Lycurgus may well be excufed, confidering how little progress political knowledge had made in a much later period. Charles VII. of France, was the firft in modern times who established a fund for a standing army. Against that dangerous innovation, the crown-vaffals had no refource but to imitate their sovereign; and yet, without even dreaming of a refource, they fuffered themfelves to be undermined, and at last overturned, by the King their superior. Thus, on the one hand, a nation however warlike that has not a public fund, is no match for a ftanding army enured to war: extenfive commerce, on the other hand, enables a nation to fupport a ftanding army; but by introducing luxury it eradicates manhood, and renders

that

that army an unfit match for any poor and warlike invader. Hard may seem the fate of nations, laid thus open to deftruction from every quarter. All that can be faid is, that fuch viciffitudes feem to enter into the scheme of providence.

The ftability of land fits it, above all other fubjects, for a public patrimony. But as crown-lands lie open to the rapacity of favourites, it becomes neceffary, when these are diffipated, to introduce taxes; which have the following properties, that they unite in one common intereft the fovereign and his fubjects, and that they can be augmented or diminished according to exigencies.

The art of levying money by taxes was fo little understood in the fixteenth century, that after the famous battle of Pavia, in which the French King was made prifoner, Charles V. was obliged to disband his victorious army, tho' confifting but of 24,000 men, becaufe he had not the art to levy, in his extenfive dominions, a fum neceffary to keep it on foot. So little knowledge was there in England of politi cal arithmetic in the days of Edward III. that L. 1: 2: 4 on each parish was computed

puted to be fufficient for raising a fubfidy of L. 50,000. It being found, that there were but 8700 parishes, exclusive of Wales, the parliament, in order to raise the faid fubfidy, affeffed on each parish L. 5, 16 s.

In impofing taxes, ought not the expence of living to be deducted, and to confider the remainder as the only taxable fubject? This mode was adopted in the state of Athens. A rent of 500 measures of corn, burdened the landlord with the yearly contribution of a talent: a rent of 300, burdened him with half a talent: a rent of 200, burdened him with the fixth part of a talent; and land under that rent paid no tax. Here the tax was not in proportion to the estate, but to what could be fpared out of it; or, in other words, in proportion to the ability of the proprietor. At the fame time, ability must not be estimated by what a man actually faves, which would exempt the profuse and profligate from paying taxes, but by what a man can pay who lives with economy according to his rank. This rule is founded on the very nature of government: to tax a man's food, or the fubject that affords him bare neceffarics, is worse than

ta

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