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Joseph Lowe.

The present state of England in regard to agriculture, trade and finance; with a comparison of the prospects of England and France online

. (page 30 of 40)
Online LibraryJoseph LoweThe present state of England in regard to agriculture, trade and finance; with a comparison of the prospects of England and France → online text (page 30 of 40)
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increased, as to enable government, if they deter-
mined on borrowing i;f 4,000,000 annually, to repeal
taxes to the extent of 5 or ^6,000,000.

The Question of a small Annual Loan in lieu of
Taj^es.

State of the Monied Interest. — Amidst all the
losses and complaints of late years, the monied in-
terest, that mixed body of bankers, retired mer-
chants and capitalists, have, in a great measure,
escaped the general distress. Their situation has
exempted them from the fluctuations experienced
by many other classes ; by our agricultuiists, our
manufacturers, our exporters of merchandize to
the West Indies and America. The monied in-
terest comprises a number of old estabUshments,
who conduct their business more conformably to
rule and calculation than several other portions of
the mercantile community : they are strangers to
the hazard of credit, and the still greater hazard
of distant markets. The cloud, which, from the
depreciation of our currency, overhung them in



a .swr/// Annual Loan. \0\

tlie latter years of the war, has disappeared, and
the late reduction of" the rate of interest, consider-
able as it is, may be considered as innoxious to
them, their incomes having gained, or being likely
to gain, in value what they have lost in amount.
The fact is, that they have periodically at their
disposal, particularly after receipt of the public
■dividends, a fund of ready money, which has
caused the rise in our stocks, so idly ascribed to a
sinking fund, and M'hich has also afforded large
supplies to the exchequers of our neighbours.

Transmission of Capital to Foreign Countries. —
The interest of money is always highest in the least
advanced communities, and capital has conse-
quently a tendency to move thither, not rapidly,
we allow, but progressively. It is thus that at pie-
sent it begins to be withdrawn from England, ex-
actly as in the 17th and 18th centuries it was with-
drawn from Holland. Last year was remarkable
for the extent of such transfers, and by writers who
do not scruple to take an extra latitude in a popu-
lar argument, the imprudence with which these
advances were made, and the losses of which they
were productive, might be made the ground of
a vehement ap})eal in siip})ort oi" oiu- })lan of ex-
changing a ])art of our taxation for an annual loan.
We are desirous, however, to avoid all such ap-
peals, and to state deliberately and impartially, the
arguments on either side. ii\ on the one hand, it
be asked ** Why should we not render subser\ ic-nt
to a reduction of taxes that periodical surplus of
capital which has for some years been transtcrreti
to foreigners ? " the advocate of conunercial free-
ilom may say on the other, *' You are not at
liberty to exercise any interference, or to divert

D D



1'0'J 'J'hti Question o/'

ca))itnl from tlio direction wliicli it naturally takes:
its transfer to foreign countries may be, for au



Online LibraryJoseph LoweThe present state of England in regard to agriculture, trade and finance; with a comparison of the prospects of England and France → online text (page 30 of 40)