that they cannot ferve as general examples. The French have tranflations of all the claffical poets in profe: but I prefume no judicious Frenchman would think that he could judge of their excellence, as poems, from fuch difplays of their fubject and fentiments. Aug. 8, 1796. PHILO RHYTHMUS. THE ENQUIRER. No. VII. QUESTION-Is the Funding Syftem con- MAINTAINING A WAR, BY ANNU- Dean Swift. IN defiance of the demonftrative logic of felfishness" pofterity can do nothing for me; why ihould I do any thing for pofterity"-Philanthropy will comprehend within his fyftem of morals, not only the whole exifting race of men, but even generations yet unborn. Every good man muft with, before he leaves the world, to do fomething, for which future ages may blefs his memory. Every honeft man will efteem himfelf ftrictly bound, as far as concerns his own conduct, not to leave the world in a worfe condition than he found it. What is found morality for an individual, is alfo found morality for a State. The measures of government. at any fuppofed geriod, will neceffarily affect the condition of fociety in the fubfequent age; and, if the ideas of national duty be not altogether vifionary, it muft be the duty of every civil community to conftitute its laws, and conduct its proceedings, with an honeft attention to the rights and interefts of pofterity. In wifely providing for the fafety and profperity of the prefent race, to lay a folid foundation for the happiness of the next, is to reach the highest point of political merit. Not to obftruct the future progrefs of fociety by injudicious reftrictions, and not to load future generations with unneceffary incumbrances, are rules of juftice, which cannot be violated without incurring national criminality. To enquire, whether the introducton of THE FUNDING SYSTEM, by which the proper burdens of the present race are thrown upon pofterity, be confiftent with juftice? is, in other words, to enquire, whether this measure be adapted to promote the prefent and future welfare of fociety? That cafes may occur, in which it will be both equitable and prudent to raife a fund on future expectation, will be easily admitted. It will not be queftioned, for example, that canals, roads, and other great public works, by which pofterity will certinly be benefitted, may, without injuftice, be executed, by means of loans, at the joint expence of the present and the future time. This plea for encumbering the next age with a fhare of the debts incurred by the operations of the prefent, cannot, however, be urged in defence of the application of the funding fyftem to the fupport of wars, which are feldom neceffary, and which are fcarcely ever, to either party, productive of real benefit. The queftion might be fatisfactorily folved in the negative, from the abstract confideration of the abfurd principle on which the fyftem in queftion is founded: for what can be more abfurd, than the notion, that prefent ftrength may be wifely procured by future weakness, and prefent wealth by future poverty? The ftatefman, who acts upon this principle, is a political fpendthrift, who, by anticipation, exhaufts in the prodigality of a fingle year, the refources of a whole life. But the ruinous tendency of the practice of funding will be beft feen from an appeal to facts. In making this appeal, it is wholly unneceffary to advert to the political imbelicity, which this practice has produced in the Republics of Venice and Genoa, where it took its rife in Spain, where, for upwards of two centuries, in concurrence with other caufes, it has been undermining the pillars of the state;---in France, where it has actually produced a convulfion which has terrified all Europe; or in the German empire, and other foreign ftates, which it has brought almoft to the laft ftage of political paralyfis : a brief review of the operation of the Britifh funds will furnifh us with proofs, abundantly fufficient, of the injustice and impolicy of the funding fyftem. When the plan of borrowing money to facilitate the operations of war, was first introduced by the English government, it was, probably, confidered merely as a temporary expedient to relieve a preffing exigency, without any apprehenfion of injury or inconvenience to pofterity. For feveral years, no other method 1796.] The Enquirer. No. VII. method was thought of, than that of anticipation; and parliamentary provifion for the fpeedy liquidation of the debts was made by means of annuities of various kinds, or by means of taxes appropriated to particular debts, and calculated to produce both the intereft and a furplus towards the discharge of the principal. Had this plan been ftrictly and effectually purfued, there would have been little ground of complaint. It would, in truth, have been nothing more than a contrivance, to afhift government in the prompt and vigorous exertion of its naval and military ftrength, and to indulge the public with the liberty of difcharging the expences of a war by eafy initalments. But, in the reign of Geo. I. the taxes appropriated under the two preceding reigns to the feveral debts, were found inadequate; other loans were become neceffary; and it was thought fafer to transfer the public debt to pofterity, and provide only for the payment of the intereft, than, at that time, to irritate the public mind by increafing the taxes for the difcharge of the principal. This policy gave rise to the acts paffed in the years 715, 1716, 1717, by which the feveral taxes appropriated to the difcharge of the debts of government were confolidated into four funds: the Aggregate, the South Sea, the General, and the Sinking-fund; the latter of which was formed from the furplus of the three former, and was deftiued to the purpofe of finking or reducing the national debt. This was properly the commencement of the funding-fyftem. In 1720, the government gave feh proof of its attachment to this new plan, by expending three millions in converting most of the annuities which remained, into redeemable perpetuities; hereby increafing the debt, in order to diminish the prefent demand for the payment of intereft. It is not furprifing, that minifters have been eager to embrace a fyftem of finance, which has enabled them to produce the greatest poffible prefent exertion, with the leaft poffible prefent preffure upon the people. With the vaft weight of care which crushes the fhoulders of a minifter in a time of war, it would furely be unreasonable to expect, that he fhould lift up his head to look forward to distant confequences: "fufficient unto the day is the evil thereof." For the moment he is enabled to multiply his political force twenty-fold; and, contrary to the law of mechanics, 535 hè, by means of this inftrument, gains as much in time as he gains in power; why should he be deterred from employing this compound advantage, by the apprehenfion of cenfure in the next generation, when it may poffibly be difcovered, that he has "made more hafte than good fpeed?" But it is very furprfing, that the public, who, except when duft is thrown in their eyes, may be expected to look farther, and, perhaps, to fee clearer, than a minifter, fhould not have been earlier aware of the tendency of thefe forced exertions to weaken the national ftrength, and fhould have encouraged one adminiftration after another to conduct the wars of the country upon this ruinas plan, till the debt, which, in 1701, was in round numbers, only 16 millions; at the beginning of the war in 1740, was increafed to nearly 48 millions; at the peace of Aix-la-chapelle, in 1748, amounted to 79 millions; at the peace in 1763, was, rifen to 134 millions; at the termination of the American war. reached, in funded accounts, the vast fum of 211 millions; and, in 1795, was, in funded and unfunded arrears, fweiled to the enormous magnitude of 322 millions. During the rapid progrefs of this overwhelming debt, the British public has had ample experience of the mischievous operation of the funding-fyftem. Its moft immediate and prominent effect has been, a grievous accumulation of taxes, by which a great part of the public ftock of industry and ingenuity has been gradually alienated from its proper ufe, the production of individual comfort and happiness. The oppreffed hufbandman and mechanic have had great reafon to deplore the prodigality which has fubjected them to the hard necefity of contributing a large portion of their daily labour towards the payment of the intereft of debts contracted by the nation before they were born. The burdens which have immediately fallen upon the landlord, the merchant, and the manufacturer,, have been, in part, transferred to the lower claffes, in the fcantinefs of their wages, fo cruelly dif proportioned to the advanced price of provifions and other neceffaries. Hence, the quantity of labour which, in former times, would have procured the labourer a decent and comfortable maintenance, has, of late years, scarcely afforded him fubfistence; and almoft the only want he has been able to fupply, has been literally that of daily daily bread. By the middle claffes, too, the load has been feverely felt; and many conveniences, and many enjoyments, which formerly repaid their induftry, and cheered their hours of lei fure, are now beyond their reach. Thefe growing hardships it will not be thought unfair to impute, in a great degree, to the national debt, when it is recollected, that the intereft, which now amounts to about twelve millions annually, is more than equivalent to the whole expence of the prefent government, in time of peace. The injurious operation of the funding-fyftem upon agriculture and commerce, is very apparent. The numerous taxes which it creates, encumber both the landlord and the tenant with burdens, which difcourage their refpective exertions for the improvement of eftates. Proprietors of land are enticed, by the profpect of making great profits in the funds, to hazard their fuperfluous money in fpeculations of this kind, rather than to employ it in agricultural improvements, or render it productive of public benefit in commercial concerns. The fame flattering inducement operates upon the merchant, and the manufacturer, to divert a confiderable portion of his capital out of its natural channel into that of the ftocks. On the contrary, to those monied men, who poffefs no fpirit of adventure, and are more defirous of fecuring than increafing their property, the funds have offered an eafy method of making a moderate advantage of their wealth, while it is entrusted in the hands of government. Thus, the funding. fyftem deprives voung adventurers in trade of thofe aids which they might otherwise naturally expect from their wealthy friends; and, at the fame time, encourage idlenefs, by tempting many perfons, who, without this refource, would have employed their capital in trade, to content themselves with the occupation of receiving, as ftated intervals, their annual income. It must be added that he tranfaction of the bufinefs of the ftocks gives frequent occafion to fraudulent and iniquitous practices, and is, at beft, a kind of unproductive labour, which, however beneficial it may prove to certain individuals, is of no real benefit to the public. tious projects, which promise gain to the ex To the prefent burdens and mischiefs, arifing from the funding - fyftem, muft be added, the gloomy profpect which it opens in future times. Whilft the plan of "a nation maintaining its war by annually pawning itself," was yet in its infancy, before the perpetual funds were established, Dean Swift called it a deteftable project, and faid of the projector, who is fuppofed to have been Binop Burnet," he lived to fee fome of its fatal confequences, whereof his children will not fee the end." Even at that period, prior to the peace of Utretch, "the people looked back with horror on the heavy loads of debt they had contracted, univerfally condemning thofe pernicious counfels which had occafioned them+." Mr. Hume faid, about fify years ago, while the debt was not yet eighty millions, "Either the nation muft destroy public credit, or public credit will destroy Of ftill greater magnitude are the po litical evils attendant upon this fyftem. The facility with which it enables a minister to multiply his refources for a *Examiner, No. XIII. war, is a great encouragement to ambi- + Swift's Conduct of the Allies. Effay IX. the 1796.] The Enquirer. No. VII. the nation." If there was, thus early, room for fuch apprehenfions, what must we think after the experience of another half-century, during which the debt has increased to upwards of 300 millions; a fum which requires more than half the annual rental of the kingdom to difcharge its intereft? The predicted ruin is, happily, not yet arrived; but, when the cloud rapidly blackens, what can be expected, but that the ftorm should speedily burft over our heads? Dr. Price was mistaken, when he fixed the limit of public credit at 200 millions. Refources, far beyond all previous calculation, have arifen from the wonderful ingenuity of our manufacturers, from the enterprifing fpirit of our merchants, and from the extraordinary commercial exigencies of foreign ftates: but it requires little fkill in political arithmetic to fee, that, if the prefent fyftem of finance be continued, the dreaded catastrophe cannot be long poftponed. It is neither neceffary to adopt Mr. Paine's caculation of an arithmetical progreffion in the expences of our wars, nor to enter into the more minute and accurate computations of Mr. Morgan, to difcover that a nation which has encumbered itself, in lefs than half a century, with more than 200 millions of debt, cannot adhere to the fame plan through another half-century without imminent hazard. The pedlar, who, day after day, added another and another pound to his afs's load, at Taft broke his back. 537 fame mifchievous policy was, in fubfequent periods, ftill purfued; fo that from the first alienation of this fund, in 1733, to the year 1775, it only discharged eight millions and a balf of the national debt. Better things might reasonably be expected from the late act for the approbriation of one million per annum to the redemption of loans, could the public be affured that this plan would be fuffered to operate without interruption, and without the counter-action of new burdens from new wars. But while the debt is fuffered to increase twenty times fafter than it is difcharged, a finking fund, or an act for redemption, is a for lorn hope, A fyftem thus pregnant with prefent mifchief and future hazard, might without hefitation be pronounced unjust and impolitic, had not feveral very ingenious gentlemen lately inftructed the public that a national debt is a national benefit. According to one writer, the circulation of the annual intereft of the debt is the great fpur to induftry, and support of manufactures and commerce: according to another, who modeftly admits that the nation is fomewhat embarrassed by the debt, it is probable, that the induftrious claffes derive fome advantage from the active motion which the funds give to the circulating value of all things: ac cording to a third, who abandons altogether the romantic project of gradually diminishing the debt, the funds are the great wheel of that circulation which is the efficient caufe of our opulence-the general fountain of national profperity, difpenfing its golden ftreams through a thousand channels. "But the finking fund," says Mr.Chal. mers, is the true anodyne of the funding fyftem." That it has operated as an anodyne to the nation will be admitted. It will be granted, too-for Dr. Price, that accurate calculator, has afferted- The common argument of all these that, had the finking fund been inva- writers, in fupport of the utility of the riably applied to the purpofe for which national debt, is, fimply its operation it was inftituted, there would, in the in facilitating and increafing circulation. year 1775, have been in the revenue a That the circulation of property is faci furplus of more than five millions, in- litated and increased by means of public ftead of a debt of 137 millions. But, if banks will not be difputed but to im we are to judge of the future from the pute the facility of circulation to thofe paft, little confidence is to be placed in effects which belong to the money circu this remedy. The finking fund, which lated, or rather to that property, per was established in 1716, was, in oppofi- fonal, or real, which money reprefents, tion to an express act of parliament, is manifest sophistry. It is to afcribe the foon charged with the payment of the effect produced by a machine, not to the intereft of new loans. In 1733, Sir R. ingenuity of the artist, or the industry of Walpole applied half a million of this the workmen, but to the oiling of the fund to the current expenditure; a mea- wheels. A great advantage in trade is, fure which Sir J. Barnard, at that time, doubtlefs, derived from free circulation wifely predicted would bring upon its but this advantage may be nearly as well advifer the curfes of pofterity. The obtained by private as by public banks. MONTHLY MAG. NO. VII, 3 Z That That the national funds are, on the whole, favourable to commerce, may be confidently denied, for the reafons already fuggefted. Were there no public funds, the country gentleman would lend more freely to the trader, and the trader would more conftantly apply the furpius of his gains, not employed in his current expenditure, to the enlargement of his trading capital. In fhort, every advantage, real or imaginary, which is afcribed to the funding fyftem, will vanifh, when brought into fair comparifon with the mifchiefs and infelicities which it has produced, and fill threatens to produce, and which fully authorife us to pronounce. it unjust and impolitic. By what means thofe ftates which have involved themfelves in the grievous embarraffment of this fyftem, may be extricated from their difficulties, and efcape impending ruin, is a queftion which may perplex the wifeft ftatefman or philofopher. One thing, however, is evident; that an unjust and impolitic, fyftem ought to be abandoned. He who is loft in a labyrinth, fhould proceed no farther, till fome kind Ariadne prefent him with a clue to guide his courfe. To the man who ftands upon the edge of a precipice, another ftep may be deftruc tion. I To the Editor of the Monthly Magazine. SIR, BEG permiffion to correct an error of your Correfpondent A, in his account of Drouet, page 401, of your Magazine for June. He is ftated to have been delivered over to the Auftrians by Dumourier, with Camus and others; but Drouet was commiffioner at Maubeuge, and during its blockade, he attempted to pafs from thence to Phillipville, under an efcort of about fixty troopers, when falling in with a detachment of Blankenftein's huzzars, himself, with fifteen of his efcort, were made prifoners; the reft efcaped, as would Drouet, if his horfe had not fallen. F.C. contribute my mite towards so defirable an object. The evils complained of, may, I think, be traced to two fources: the ignorance, and the poverty of practifers. That thefe may exist wholly unconnected with each other, no one will deny: we frequently fee men of fplendid talents oppreffed with pecuniary misfortunes ; and who, if those misfortunes were removed, would prove ornaments to their country. Of thefe, it might be faid, they fhould confine themfelves, to the more humble walks of life; but let us remember that had all fuch done fo, we fhould not fee fo many fhining characters as we do. On the other hand, we may obferve, that wealth is not always accompanied either by fhining talents or probity. Any regulation, therefore, in refpect to the members of the profeffion, which fhall embrace only one defcription of them, will lofe half the defired effect. cleanfing When the prefent Chief Juftice came to the Bench, we heard much of " the Augean Stable :" his Lordship, however, muft have, obferved, that vice would frequently be able to elude the purfuit of juftice; and that only the bold and daring villains, a defcription always comparatively few, would feel the lafh of punishment. The evil was, therefore, to be prevented by cutting off the fource of it; and then we have the "Attornies' Clerks' Tax." This, as being a tax on a particular fet of men, already heavily taxed, was an invidious measure: but, befides this, it was not adequate to the evil; for, although it may prevent the admiffion of neceflitous perfons into the profeffion, yet if a man is of ability to pay the 100l. however ignorant or difhoneft he may be, he is equally eligible as before: whilft a Pratt, a Murray, or, perhaps, even a K- if the 100l. could not be conveniently fpared, muft betake himfelf to fome mechanical employment, ill-fuited to his genius; and where his talents would be of little fervice to his country. I admit that there are many evils which arife from the poverty of attornies: men who muft live, and, from their fituation, are compelled to fupport a genteel appearance; and who, when preffed by neceffity, are apt to foment difcord to gain employment; verifying the proverb, 66 Bon avocat, mauvais voifin." But, I muft fay, and I believe experience juftifies the affertion, that evils, by far more numerous, and of much greater |