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The best taxes are such as are levied upon consumptions, especially those of luxury; because such taxes are least felt by the people. They seem, in some measure, voluntary; since a man may chuse how far he will use the commodity which is taxed: They are paid gradually, and insensibly:' They naturally produce sobriety and frugality, if judiciously imposed: And being confounded with the natural price of the commodity, they are scarcely perceived by the consumers. Their only disadvantage is, that they are expensive in the levying.

Taxes upon possessions are levied without expence; but have every other disadvantage. Most states, however, are obliged to have recourse to them, in order to supply the deficioncies of the other.

But the most pernicious of all taxes are the arbitrary. They are commonly converted, by their management, into punishments on industry; and also, by their unavoidable inequality, are more grievous, than by the real burden which they impose. It is surprising, therefore, to see them have place among any civilized people.

In general, all poll-taxes, even when not arbitrary, which they commonly are, may be esteemed dangerous: Because it is so easy for the sovereign to add a little more, and a little more, to the sum demanded, that these taxes are apt to become altogether oppressive and intolerable. On the other hand, a duty upon commodities checks itself; and a prince will soon find, that an encrease of the impost is no encrease of his revenue. It is not easy, therefore, for a people to be altogether ruined by such taxes.

Historians inform us, that one of the chief causes of the destruction of the ROMAN state, was the alteration, which CONSTANTINE introduced into the finances, by substituting an universal poll-tax, in lieu of almost all the tithes, customs, and excises, which formerly composed the revenue of the empire. The people, in all the provinces, were so grinded

to taxes, may be admitted in some degree: But beware of the abuse. Exorbitant taxes, like extreme necessity, destroy industry, by producing despair; and even before they reach this pitch, they raise the wages of the labourer and manufacturer, and heighten the price of all commodities. An attentive disinterested legislature, will observe the point when the emolument ceases, and the prejudice begins: But

as the contrary character is much more common, 'tis to be feared that taxes, all Over EUROPE, are multiplying to such a degree, as will intirely crush all art and industry; tho', perhaps, their first increase, together with other circumstances, might have contributed to the growth of these advantages.]

[This clause was first added in Edition Q.]

and oppressed by the publicans, that they were glad to take refuge under the conquering arms of the barbarians; whose dominion, as they had fewer necessities and less art, was found preferable to the refined tyranny of the ROMANS.

'It is an opinion, zealously promoted by some political writers, that, since all taxes, as they pretend, fall ultimately upon land, it were better to lay them originally there, and abolish every duty upon consumptions. But it is denied, that all taxes fall ultimately upon land. If a duty be laid upon any commodity, consumed by an artisan, he has two obvious expedients for paying it; he may retrench somewhat of his expence, or he may encrease his labour. Both these resources are more easy and natural, than that of heightening his wages. We see, that, in years of scarcity, the weaver either consumes less or labours more, or employs both these expedients of frugality and industry, by which he is enabled to reach the end of the year. It is but just, that he should subject himself to the same hardships, if they deserve the name, for the sake of the publick, which gives him protection. By what contrivance can he raise the price of his labour? The manufacturer who employs him, will not give him more: Neither can he, because the merchant, who exports the cloth, cannot raise its price, being limited by the price which it yields in foreign markets. Every man, to be sure, is desirous of pushing off from himself the burden of any tax, which is imposed, and of laying it upon others: But as every man has the same inclination, and is upon the defensive; no set of men can be supposed to prevail altogether in this contest. And why the landed gentleman should be the victim of the whole, and should not be able to defend himself, as well as others are, I cannot readily imagine. All tradesmen, indeed, would willingly prey upon him, and divide him among them, if they could: But this inclination they always have, though no taxes were levied; and the same methods, by which he guards against the imposition of tradesmen before taxes, will serve him afterwards, and make them share the

[Editions H to P omit the opening sentences as far as foreign markets,' and read instead of them: There is a prevailing opinion, that all taxes, however levied, fall upon the land at last. Such an opinion may be useful in BRITAIN, by checking the landed gentlemen, in whose hands our legisla

ture is chiefly lodged, and making them preserve great regard for trade and industry. But I must confess, that this principle, tho' first advanced by a celebrated writer, has so little appearance of reason, that, were it not for his authority, it had never been received by any body.]

1

burden with him. They must be very heavy taxes, indeed, and very injudiciously levied, which the artizan will not, of himself, be enabled to pay, by superior industry and frugality, without raising the price of his labour.

I shall conclude this subject with observing, that we have, with regard to taxes, an instance of what frequently happens in political institutions, that the consequences of things are diametrically opposite to what we should expect on the first appearance. It is regarded as a fundamental maxim of the TURKISH government, that the Grand Signior, though absolute master of the lives and fortunes of each individual, has no authority to impose a new tax; and every OTTOMAN prince, who has made such an attempt, either has been obliged to retract, or has found the fatal effects of his perseverance. One would imagine, that this prejudice or established opinion were the firmest barrier in the world against oppression; yet it is certain, that its effect is quite contrary. The emperor, having no regular method of encreasing his revenue, must allow all the bashaws and governors to oppress and abuse the subjects: And these he squeezes after their return from their government. Whereas, if he could impose a new tax, like our EUROPEAN princes, his interest would so far be united with that of his people, that he would immediately feel the bad effects of these disorderly levies of money, and would find, that a pound, raised by a general imposition, would have less pernicious effects, than a shilling taken in so unequal and arbitrary a manner.

ESSAY IX.-Of Public Credit.

IT appears to have been the common practice of antiquity, to make provision, during peace, for the necessities of war, and to hoard up treasures before-hand, as the instruments either of conquest or defence; without trusting to extraordinary impositions, much less to borrowing, in times of disorder and confusion. Besides the immense sums

1 [The concluding sentence is not in Editions H to 0.-Ed. P. reads in its place: No labour in any commodities, that are exported, can be very considerably raised in the price, without losing the foreign market; and as some part of almost every manufactory is exported, this circumstance keeps the

price of most species of labour nearly the same after the imposition of taxes. I may add, that it has this effect upon the whole: For were any kind of labour paid beyond its proportion, all hands would flock to it, and would soon sink it to a level with the rest.]

above mentioned,' which were amassed by ATHENS, and by the PTOLEMIES, and other successors of ALEXANDER; We learn from PLATO,2 that the frugal LACEDEMONIANS had also collected a great treasure; and ARRIAN and PLUTARCH take notice of the riches which ALEXANDER got possession of on the conquest of SUSA and ECBATANA, and which were reserved, some of them, from the time of CYRUS. If I remember right, the scripture also mentions the treasure of HEZEKIAH and the JEWISH princes; as profane history does that of PHILIP and PERSEUS, kings of MACEDON. The ancient republics of GAUL had commonly large sums in reserve. Every one knows the treasure seized in ROME by JULIUS CAESAR, during the civil wars: and we find afterwards, that the wiser emperors, AUGUSTUS, TIBERIUS, VESPASIAN, SEVERUS, &c. always discovered the prudent foresight, of saving great sums against any public exigency.

On the contrary, our modern expedient, which has become very general, is to mortgage the public revenues, and to trust that posterity will pay off the incumbrances contracted by their ancestors: And they, having before their eyes, so good an example of their wise fathers, have the same prudent reliance on their posterity; who, at last, from necessity more than choice, are obliged to place the same confidence in a new posterity. But not to waste time in declaiming against a practice which appears ruinous, beyond all controversy; it seems pretty apparent, that the ancient maxims are, in this respect, more prudent than the modern; even though the latter had been confined within some reasonable bounds, and had ever, in any instance, been attended with such frugality, in time of peace, as to discharge the debts incurred by an expensive war. For why should the case be so different between the public and an individual, as to make us establish different maxims of conduct for each? If the funds of the former be greater, its necessary expences are proportionably larger; if its resources be more numerous, they are not infinite; and as its frame should be calculated for a much longer duration than the date of a single life, or

1 Essay V.

2 ALCIB. I. p. 123.

Lib. iii. 16 and 19.

4 PLUT. in vita ALEX. 36, 37. He makes these treasures amount to 80,000 talents, or about 15 millions sterl. QUINTUS CURTIUS (lib. v. cap. 2.) says, that

ALEXANDER found in SUSA above 50,000 talents.

STRABO, lib. iv. p. 188.

[Editions H to P add: Beyond the evidence of a hundred demonstrations.]

even of a family, it should embrace maxims, large, durable, and generous, agreeably to the supposed extent of its existence. To trust to chances and temporary expedients, is, indeed, what the necessity of human affairs frequently renders unavoidable: but whoever voluntarily depend on such resources, have not necessity, but their own folly, to accuse for their misfortunes, when any such befal them.

If the abuses of treasures be dangerous, either by engaging the state in rash enterprizes, or making it neglect military discipline, in confidence of its riches; the abuses of mortgaging are more certain and inevitable; poverty, impotence, and subjection to foreign powers.

According to modern policy war is attended with every destructive circumstance; loss of men, encrease of taxes, decay of commerce, dissipation of money, devastation by sea and land. According to ancient maxims, the opening of the public treasure, as it produced an uncommon affluence of gold and silver, served as a temporary encouragement to industry, and atoned, in some degree, for the inevitable calamities of war.

'It is very tempting to a minister to employ such an expedient, as enables him to make a great figure during his administration, without overburthening the people with taxes, or exciting any immediate clamours against himself. The practice, therefore, of contracting debt will almost infallibly be abused, in every government. It would scarcely be more imprudent to give a prodigal son a credit in every banker's shop in London, than to impower a statesman to draw bills, in this manner, upon posterity.

What then shall we say to the new paradox, that public incumbrances are, of themselves, advantageous, independent of the necessity of contracting them; and that any state, even though it were not pressed by a foreign enemy, could not possibly have embraced a wiser expedient for promoting commerce and riches, than to create funds, and debts, and taxes, without limitation? Reasonings, such as these, might naturally have passed for trials of wit among rhetoricians, like the panegyrics on folly and a fever, on BUSIRIS and NERO, had we not seen such absurd maxims patronized by great ministers, and by a whole party among us.'

[This paragraph was added in Ed. Q.]

2 [Editions H to P add: And these puzzling arguments, (for they deserve

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