The Works of the Right Honourable Edmund Burke
Chapter 15 : If this gentleman's hero of finance, instead of flying from a treaty, which, thoug

If this gentleman's hero of finance, instead of flying from a treaty, which, though he now defends, he could not approve, and would not oppose; if he, instead of s.h.i.+fting into an office, which removed him from the manufacture of the treaty, had, by his credit with the then great director, acquired for us these, or any of these, objects, the possession of Guadaloupe or Martinico, or the renewal of the _a.s.siento_, he might have held his head high in his country; because he would have performed real service; ten thousand times more real service, than all the economy of which this writer is perpetually talking, or all the little tricks of finance which the expertest juggler of the treasury can practise, could amount to in a thousand years. But the occasion is lost; the time is gone, perhaps forever.

As to the third requisite, _alliance_, there too the author is silent.

What strength of that kind did they acquire? They got no one new ally; they stript the enemy of not a single old one. They disgusted (how justly, or unjustly, matters not) every ally we had; and from that time to this we stand friendless in Europe. But of this naked condition of their country I know some people are not ashamed. They have their system of politics; our ancestors grew great by another. In this manner these virtuous men concluded the peace; and their practice is only consonant to their theory.

Many things more might be observed on this curious head of our author's speculations. But, taking leave of what the writer says in his serious part, if he be serious in any part, I shall only just point out a piece of his pleasantry. No man, I believe, ever denied that the time for making peace is that in which the best terms maybe obtained. But what that time is, together with the use that has been made of it, we are to judge by seeing whether terms adequate to our advantages, and to our necessities, have been actually obtained. Here is the pinch of the question, to which the author ought to have set his shoulders in earnest. Instead of doing this, he slips out of the harness by a jest; and sneeringly tells us, that, to determine this point, we must know the secrets of the French and Spanish cabinets[55], and that Parliament was pleased to approve the treaty of peace without calling for the correspondence concerning it. How just this sarcasm on that Parliament may be, I say not; but how becoming in the author, I leave it to his friends to determine.

Having thus gone through the questions of war and peace, the author proceeds to state our debt, and the interest which it carried, at the time of the treaty, with the unfairness and inaccuracy, however, which distinguish all his a.s.sertions, and all his calculations. To detect every fallacy, and rectify every mistake, would be endless. It will be enough to point out a few of them, in order to show how unsafe it is to place anything like an implicit trust in such a writer.

The interest of debt contracted during the war is stated by the author at 2,614,892_l._ The particulars appear in pp. 14 and 15. Among them is stated the unfunded debt, 9,975,017_l._, supposed to carry interest on a medium at 3 per cent, which amounts to 299,250_l._ We are referred to the "Considerations on the Trade and Finances of the Kingdom," p. 22, for the particulars of that unfunded debt. Turn to the work, and to the place referred to by the author himself, if you have a mind to see a clear detection of a capital fallacy of this article in his account. You will there see that this unfunded debt consists of the nine following articles: the remaining subsidy to the Duke of Brunswick; the remaining _dedommagement_ to the Landgrave of Hesse; the German demands; the army and ordnance extraordinaries; the deficiencies of grants and funds; Mr.

Touchet's claim; the debts due to Nova Scotia and Barbadoes; exchequer bills; and navy debt. The extreme fallacy of this state cannot escape any reader who will be at the pains to compare the interest money, with which he affirms us to have been loaded, in his "State of the Nation,"

with the items of the princ.i.p.al debt to which he refers in his "Considerations." The reader must observe, that of this long list of nine articles, only two, the exchequer bills, and part of the navy debt, carried any interest at all. The first amounted to 1,800,000_l._; and this undoubtedly carried interest. The whole navy debt indeed amounted to 4,576,915_l._; but of this only a _part_ carried interest. The author of the "Considerations," &c. labors to prove this very point in p. 18; and Mr. G. has always defended himself upon the same ground, for the insufficient provision he made for the discharge of that debt. The reader may see their own authority for it.[56]

Mr. G. did in fact provide no more than 2,150,000_l._ for the discharge of these bills in two years. It is much to be wished that these gentlemen would lay their heads together, that they would consider well this matter, and agree upon something. For when the scanty provision made for the unfunded debt is to be vindicated, then we are told it is a very _small part_ of that debt which carries interest. But when the public is to be represented in a miserable condition, and the consequences of the late war to be laid before us in dreadful colors, then we are to be told that the unfunded debt is within a trifle of ten millions, and so large a portion of it carries interest that we must not compute less than 3 per cent upon the _whole_.

In the year 1764, Parliament voted 650,000_l._ towards the discharge of the navy debt. This sum could not be applied solely to the discharge of bills carrying interest; because part of the debt due on seamen's wages must have been paid, and some bills carried no interest at all.

Notwithstanding this, we find by an account in the journals of the House of Commons, in the following session, that the navy debt carrying interest was, on the 31st of December, 1764, no more than 1,687,442_l._ I am sure therefore that I admit too much when I admit the navy debt carrying interest, after the creation of the navy annuities in the year 1763, to have been 2,200,000_l._ Add the exchequer bills; and the whole unfunded debt carrying interest will be four millions instead of ten; and the annual interest paid for it at 4 per cent will be 160,000_l._ instead of 299,250_l._ An error of no small magnitude, and which could not have been owing to inadvertency.

The misrepresentation of the increase of the peace establishment is still more extraordinary than that of the interest of the unfunded debt.

The increase is great, undoubtedly. However, the author finds no fault with it, and urges it only as a matter of argument to support the strange chimerical proposals he is to make us in the close of his work for the increase of revenue. The greater he made that establishment, the stronger he expected to stand in argument: but, whatever he expected or proposed, he should have stated the matter fairly. He tells us that this establishment is nearly 1,500,000_l._ more than it was in 1752, 1753, and other years of peace. This he has done in his usual manner, by a.s.sertion, without troubling himself either with proof or probability.

For he has not given us any state of the peace establishment in the years 1753 and 1754, the time which he means to compare with the present. As I am obliged to force him to that precision, from which he always flies as from his most dangerous enemy, I have been at the trouble to search the journals in the period between the two last wars: and I find that the peace establishment, consisting of the navy, the ordnance, and the several incidental expenses, amounted to 2,346,594_l._ Now is this writer wild enough to imagine, that the peace establishment of 1764 and the subsequent years, made up from the same articles, is 3,800,000_l._ and upwards? His a.s.sertion however goes to this. But I must take the liberty of correcting him in this gross mistake, and from an authority he cannot refuse, from his favorite work, and standing authority, the "Considerations." We find there, p. 43[57], the peace establishment of 1764 and 1765 stated at 3,609,700_l._ This is near two hundred thousand pounds less than that given in "The State of the Nation." But even from this, in order to render the articles which compose the peace establishment in the two periods correspondent (for otherwise they cannot be compared), we must deduct first, his articles of the deficiency of land and malt, which amount to 300,000_l._ They certainly are no part of the establishment; nor are they included in that sum, which I have stated above for the establishment in the time of the former peace. If they were proper to be stated at all, they ought to be stated in both accounts. We must also deduct the deficiencies of funds, 202,400_l._ These deficiencies are the difference between the interest charged on the public for moneys borrowed, and the produce of the taxes laid for the discharge of that interest. Annual provision is indeed to be made for them by Parliament: but in the inquiry before us, which is only what charge is brought on the public by interest paid or to be paid for money borrowed, the utmost that the author should do, is to bring into the account the full interest for all that money. This he has done in p. 15; and he repeats it in p. 18, the very page I am now examining, 2,614,892_l._ To comprehend afterwards in the peace establishment the deficiency of the fund created for payment of that interest, would be laying twice to the account of the war part of the same sum. Suppose ten millions borrowed at 4 per cent, and the fund for payment of the interest to produce no more than 200,000_l._ The whole annual charge on the public is 400,000_l._ It can be no more. But to charge the interest in one part of the account, and then the deficiency in the other, would be charging 600,000_l._ The deficiency of funds must therefore be also deducted from the peace establishment in the "Considerations"; and then the peace establishment in that author will be reduced to the same articles with those included in the sum I have already mentioned for the peace establishment before the last war, in the year 1753, and 1754.

Peace establishment in the "Considerations" 3,609,700 Deduct deficiency of land and malt 300,000 Ditto of funds 202,400 -------- 502,400 --------- 3,107,300 Peace establishment before the late war, in which no deficiencies of land and malt, or funds are included 2,346,594 ---------

Difference 760,706

Being about half the sum which our author has been pleased to suppose it.

Let us put the whole together. The author states,--

Difference of peace establishment before and since the war 1,500,000 Interest of Debt contracted by the war 2,614,892 --------- 4,114,892 The _real_ difference in the peace establishment is 760,706

The actual interest of the funded debt, including that charged on the sinking fund 2,315,642

The actual interest of unfunded debt at most 160,000 --------- Total interest of debt contracted by the war 2,475,642 --------- Increase of peace establishment, and interest of new debt 3,236,348 --------- Error of the author 878,544

It is true, the extraordinaries of the army have been found considerably greater than the author of the "Considerations" was pleased to foretell they would be. The author of "The Present State" avails himself of that increase, and, finding it suit his purpose, sets the whole down in the peace establishment of the present times. If this is allowed him, his error perhaps may be reduced to 700,000_l._ But I doubt the author of the "Considerations" will not thank him for admitting 200,000_l._ and upwards, as the peace establishment for extraordinaries, when that author has so much labored to confine them within 35,000_l._

These are some of the capital fallacies of the author. To break the thread of my discourse as little as possible, I have thrown into the margin many instances, though G.o.d knows far from the whole of his inaccuracies, inconsistencies, and want of common care. I think myself obliged to take some notice of them, in order to take off from any authority this writer may have; and to put an end to the deference which careless men are apt to pay to one who boldly arrays his accounts, and marshals his figures, in perfect confidence that their correctness will never be examined.[58]

However, for argument, I am content to take his state of it. The debt was and is enormous. The war was expensive. The best economy had not perhaps been used. But I must observe, that war and economy are things not easily reconciled; and that the attempt of leaning towards parsimony in such a state may be the worst management, and in the end the worst economy in the world, hazarding the total loss of all the charge incurred, and of everything along with it.

But _cui bono_ all this detail of our debt? Has the author given a single light towards any material reduction of it? Not a glimmering. We shall see in its place what sort of thing he proposes. But before he commences his operations, in order to scare the public imagination, he raises by art magic a thick mist before our eyes, through which glare the most ghastly and horrible phantoms:

Hunc igitur terrorem animi tenebrasque necesse est.

Non radii solis, neque lucida tela diei Discutiant, sed naturae species ratioque.

Let us therefore calmly, if we can for the fright into which he has put us, appreciate those dreadful and deformed gorgons and hydras, which inhabit the joyless regions of an imagination fruitful in nothing but the production of monsters.

His whole representation, is founded on the supposed operation of our debt, upon our manufactures, and our trade. To this cause he attributes a certain supposed dearness of the necessaries of life, which must compel our manufacturers to emigrate to cheaper countries, particularly to France, and with them the manufacture. Thence consumption declining, and with it revenue. He will not permit the real balance of our trade to be estimated so high as 2,500,000_l._; and the interest of the debt to foreigners carries off 1,500,000_l._ of that balance. France is not in the same condition. Then follow his wailings and lamentings, which he renews over and over, according to his custom--a declining trade, and decreasing specie--on the point of becoming tributary to France--of losing Ireland--of having the colonies torn away from us.

The first thing upon which I shall observe is,[60] what he takes for granted as the clearest of all propositions, the emigration of our manufacturers to France. I undertake to say that this a.s.sertion is totally groundless, and I challenge the author to bring any sort of proof of it. If living is cheaper in France, that is, to be had for less specie, wages are proportionably lower. No manufacturer, let the living be what it will, was ever known to fly for refuge to low wages. Money is the first thing which attracts him. Accordingly our wages attract artificers from all parts of the world. From two s.h.i.+llings to one s.h.i.+lling, is a fall in all men's imaginations, which no calculation upon a difference in the price of the necessaries of life can compensate. But it will be hard to prove that a French artificer is better fed, clothed, lodged, and warmed, than one in England; for that is the sense, and the only sense, of living cheaper. If, in truth and fact, our artificer fares as well in all these respects as one in the same state in France,--how stands the matter in point of opinion and prejudice, the springs by which people in that cla.s.s of life are chiefly actuated? The idea of our common people concerning French living is dreadful; altogether as dreadful as our author's can possibly be of the state of his own country; a way of thinking that will hardly ever prevail on them to desert to France.[61]

But, leaving the author's speculations, the fact is, that they have not deserted; and of course the manufacture cannot be departed, or departing, with them. I am not indeed able to get at all the details of our manufactures; though, I think, I have taken full as much pains for that purpose as our author. Some I have by me; and they do not hitherto, thank G.o.d, support the author's complaint, unless a vast increase of the quant.i.ty of goods manufactured be a proof of losing the manufacture. On a view of the registers in the West Riding of Yorks.h.i.+re, for three years before the war, and for the three last, it appears, that the quant.i.ties of cloths entered were as follows:

Pieces broad. Pieces narrow.

1752 60,724 72,442 1753 55,358 71,618 1754 56,070 72,394 ------- ------- 172,152 216,454

Pieces broad. Pieces narrow.

1765 54,660 77,419 1766 72,575 78,893 1767 102,428 78,819 ------- ------- 3 years, ending 1767 229,663 235,131 3 years, ending 1754 172,152 216,464 ------- ------- Increase 57,511 18,677

In this manner this capital branch of manufacture has increased, under the increase of taxes; and this not from a declining, but from a greatly flouris.h.i.+ng period of commerce. I may say the same on the best authority of the fabric of thin goods at Halifax; of the bays at Rochdale; and of that infinite variety of admirable manufactures that grow and extend every year among the spirited, inventive, and enterprising traders of Manchester.

A trade sometimes seems to perish when it only a.s.sumes a different form.

Thus the coa.r.s.est woollens were formerly exported in great quant.i.ties to Russia. The Russians now supply themselves with these goods. But the export thither of finer cloths has increased in proportion as the other has declined. Possibly some parts of the kingdom may have felt something like a languor in business. Objects like trade and manufacture, which the very attempt to confine would certainly destroy, frequently change their place; and thereby, far from being lost, are often highly improved. Thus some manufactures have decayed in the west and south, which have made new and more vigorous shoots when transplanted into the north. And here it is impossible to pa.s.s by, though the author has said nothing upon it, the vast addition to the ma.s.s of British trade, which has been made by the improvement of Scotland. What does he think of the commerce of the city of Glasgow, and of the manufactures of Paisley and all the adjacent country? Has this anything like the deadly aspect and _facies Hippocratica_ which the false diagnostic of our state physician has given to our trade in general? Has he not heard of the iron-works of such magnitude even in their cradle which are set up on the Carron, and which at the same time have drawn nothing from Sheffield, Birmingham, or Wolverhampton?

This might perhaps be enough to show the entire falsity of the complaint concerning the decline of our manufactures. But every step we advance, this matter clears up more; and the false terrors of the author are dissipated, and fade away as the light appears. "The trade and manufactures of this country (says he) going to ruin, and a diminution of our _revenue from consumption_ must attend the loss of so many seamen and artificers." Nothing more true than the general observation: nothing more false than its application to our circ.u.mstances. Let the revenue on consumption speak for itself:--

Average of net excise, since the new duties, three years ending 1767 4,590,734 Ditto before the new duties, three years ending 1759 3,261,694 --------- Average increase 1,329,040

Here is no diminution. Here is, on the contrary, an immense increase.

This is owing, I shall be told, to the new duties, which may increase the total bulk, but at the same time may make some diminution of the produce of the old. Were this the fact, it would be far from supporting the author's complaint. It might have proved that the burden lay rather too heavy; but it would never prove that the _revenue from, consumption_ was impaired, which it was his business to do. But what is the real fact? Let us take, as the best instance for the purpose, the produce of the old hereditary and temporary excise granted in the reign of Charles the Second, whose object is that of most of the new impositions, from two averages, each of eight years.

Average, first period, eight years, ending 1754 525,317 Ditto, second period, eight years, ending 1767 538,542 ------- Increase 613,225

I have taken these averages as including in each a war and a peace period; the first before the imposition of the new duties, the other since those impositions; and such is the state of the oldest branch of the revenue from consumption. Besides the acquisition of so much new, this article, to speak of no other, has rather increased under the pressure of all those additional taxes to which the author is pleased to attribute its destruction. But as the author has made his grand effort against those moderate, judicious, and necessary levies, which support all the dignity, the credit, and the power of his country, the reader will excuse a little further detail on this subject; that we may see how little oppressive those taxes are on the shoulders of the public, with which he labors so earnestly to load its imagination. For this purpose we take the state of that specific article upon which the two capital burdens of the war leaned the most immediately, by the additional duties on malt, and upon beer.

Barrels.

Average of strong beer, brewed in eight years before the additional malt and beer duties 3,895,059

Average of strong beer, eight years since the duties 4,060,726 --------- Increase in the last period 165,667

Here is the effect of two such daring taxes as 3_d._ by the bushel additional on malt, and 3_s._ by the barrel additional on beer. Two impositions laid without remission one upon the neck of the other; and laid upon an object which before had been immensely loaded. They did not in the least impair the consumption: it has grown under them. It appears that, upon the whole, the people did not feel so much inconvenience from the new duties as to oblige them to take refuge in the private brewery.

Quite the contrary happened in both these respects in the reign of King William; and it happened from much slighter impositions.[62] No people can long consume a commodity for which they are not well able to pay. An enlightened reader laughs at the inconsistent chimera of our author, of a people universally luxurious, and at the same time oppressed with taxes and declining in trade. For my part, I cannot look on these duties as the author does. He sees nothing but the burden. I can perceive the burden as well as he; but I cannot avoid contemplating also the strength that supports it. From thence I draw the most comfortable a.s.surances of the future vigor, and the ample resources, of this great, misrepresented country; and can never prevail on myself to make complaints which have no cause, in order to raise hopes which have no foundation.

When a representation is built on truth and nature, one member supports the other, and mutual lights are given and received from every part.

Thus, as our manufacturers have not deserted, nor the manufacture left us, nor the consumption declined, nor the revenue sunk; so neither has trade, which is at once the result, measure, and cause of the whole, in the least decayed, as our author has thought proper sometimes to affirm, constantly to suppose, as if it were the most indisputable of all propositions. The reader will see below the comparative state of our trade[63] in three of the best years before our increase of debt and taxes, and with it the three last years since the author's date of our ruin.

In the last three years the whole of our exports was between 44 and 45 millions. In the three years preceding the war, it was no more than from 35 to 36 millions. The average balance of the former period was 3,706,000_l._; of the latter, something above four millions. It is true, that whilst the impressions of the author's destructive war continued, our trade was greater than it is at present. One of the necessary consequences of the peace was, that France must gradually recover a part of those markets of which she had been originally in possession.

However, after all these deductions, still the gross trade in the worst year of the present is better than in the best year of any former period of peace. A very great part of our taxes, if not the greatest, has been imposed since the beginning of the century. On the author's principles, this continual increase of taxes must have ruined our trade, or at least entirely checked its growth. But I have a ma.n.u.script of Davenant, which contains an abstract of our trade for the years 1703 and 1704; by which it appears that the whole export from England did not then exceed 6,552,019_l._ It is now considerably more than double that amount. Yet England was then a rich and flouris.h.i.+ng nation.

The author endeavors to derogate from the balance in our favor as it stands on the entries, and reduces it from four millions, as it there appears, to no more than 2,500,000_l._ His observation on the looseness and inaccuracy of the export entries is just; and that the error is always an error of excess, I readily admit. But because, as usual, he has wholly omitted some very material facts, his conclusion is as erroneous as the entries he complains of.

On this point of the custom-house entries I shall make a few observations. 1st. The inaccuracy of these entries can extend only to FREE GOODS, that is, to such British products and manufactures, as are exported without drawback and without bounty; which do not in general amount to more than two thirds at the very utmost of the whole export even of _our home products_. The valuable articles of corn, malt, leather, hops, beer, and many others, do not come under this objection of inaccuracy. The article of CERTIFICATE GOODS re-exported, a vast branch of our commerce, admits of no error, (except some smaller frauds which cannot be estimated,) as they have all a drawback of duty, and the exporter must therefore correctly specify their quant.i.ty and kind. The author therefore is not warranted from the known error in some of the entries, to make a general defalcation from the whole balance in our favor. This error cannot affect more than half, if so much, of the export article. 2dly. In the account made up at the Inspector-General's office, they estimate only the original cost of British products as they are here purchased; and on foreign goods, only the prices in the country from whence they are sent. This was the method established by Mr.

Davenant; and as far as it goes, it certainly is a good one. But the profits of the merchant at home, and of our factories abroad, are not taken into the account; which profit on such an immense quant.i.ty of goods exported and re-exported cannot fail of being very great: five per cent, upon the whole, I should think, a very moderate allowance. 3dly.

It does not comprehend the advantage arising from the employment of 600,000 tons of s.h.i.+pping, which must be paid by the foreign consumer, and which, in many bulky articles of commerce, is equal to the value of the commodity. This can scarcely be rated at less than a million annually. 4thly. The whole import from Ireland and America, and from the West Indies, is set against us in the ordinary way of striking a balance of imports and exports; whereas the import and export are both our own.