Just thus it is with England. The government owed
at the beginning of this war one hundred and thirty-five millions
sterling, and though the individuals to whom it was due had a right to
reckon their shares as so much private property, yet to the nation
collectively it was so much poverty. There are as effectual limits
to public debts as to private ones, for when once the money borrowed
is so great as to require the whole yearly revenue to discharge the
interest thereon, there is an end to further borrowing; in the same
manner as when the interest of a man's debts amounts to the yearly
income of his estate, there is an end to his credit. This is nearly
the case with England, the interest of her present debt being at least
equal to one half of her yearly revenue, so that out of ten millions
annually collected by taxes, she has but five that she can call her
own.
The very reverse of this was the case with America; she began the
war without any debt upon her, and in order to carry it on, she
neither raised money by taxes, nor borrowed it upon interest, but
created it; and her situation at this time continues so much the
reverse of yours that taxing would make her rich, whereas it would
make you poor. When we shall have sunk the sum which we have
created, we shall then be out of debt, be just as rich as when we
began, and all the while we are doing it shall feel no difference,
because the value will rise as the quantity decreases.
There was not a country in the world so capable of bearing the
expense of a war as America; not only because she was not in debt when
she began, but because the country is young and capable of infinite
improvement, and has an almost boundless tract of new lands in
store; whereas England has got to her extent of age and growth, and
has not unoccupied land or property in reserve.
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