NOTES, OF PUBLIC CREDIT.

27 Essay Of the Balance of Trade.

28 Plut. in Vita Alex. He makes these treasures amount to 80,000 talents, or about 15 millions sterling. Quintus Curtius (lib. 5, cap. 2) says that Alexander found in Susa above 50,000 talents.

29 Melon, Du Tot, Law, in the pamphlets published in France.

30 In times of peace and security, when alone it is possible to pay debt, the moneyed interest are averse to receive partial payments, which they know not how to dispose of to advantage, and the landed interest are averse to continue the taxes requisite for that purpose. Why therefore should a minister persevere in a measure so disagreeable to all parties? For the sake, I suppose, of a posterity which he will never see, or of a few reasonable, reflecting people whose united interest perhaps will not be able to secure him the smallest borough in England. It is not likely we shall ever find any minister so bad a politician. With regard to these narrow, destructive maxims of politics all ministers are expert enough.

31 Some neighbouring states practise an easy expedient, by which they lighten their public debts. The French have a custom (as the Romans formerly had) of augmenting their money, and this the nation has been so much familiarized to that it hurts not public credit, though it be really cutting off at once, by an edict, so much of their debts. The Dutch diminish the interest without the consent of their creditors; or, which is the same thing, they arbitrarily tax the funds as well as other property. Could we practise either of these methods, we need never be oppressed by the national debt; and it is not impossible but one of these, or some other method, may, at all adventures, be tried, on the augmentation of our encumbrances and difficulties. But people in this country are so good reasoners upon whatever regards their interest, that such a practice will deceive nobody, and public credit will probably tumble at once by so dangerous a trial.

32 So great dupes are the generality of mankind, that notwithstanding such a violent shock to public credit as a voluntary bankruptcy in England would occasion, it would not probably be long ere credit would again revive in as flourishing a condition as before. The present King of France, during the late war, borrowed money at lower interest than ever his grandfather did, and as low as the British Parliament, comparing the natural rate of interest in both kingdoms. And though men are commonly more governed by what they have seen than by what they foresee, with whatever certainty, yet promises, protestations, fair appearances, with the allurements of present interest, have such powerful influence as few are able to resist. Mankind are, in all ages, caught by the same baits. The same tricks, played over and over again, still trepan them. The heights of popularity and patriotism are still the beaten road to power and tyranny; flattery to treachery; standing armies to arbitrary government; and the glory of God to the temporal interest of the clergy. The fear of an everlasting destruction of credit, allowing it to be an evil, is a needless bugbear. A prudent man, in reality, would rather lend to the public immediately after they had taken a sponge to their debts, than at present; as much as an opulent knave, even though one could not force him to pay, is a preferable debtor to an honest bankrupt; for the former, in order to carry on business, may find it his interest to discharge his debts, where they are not exorbitant. The latter has it not in his power. The reasoning of Tacitus (Hist. lib. 3), as it is eternally true, is very applicable to our present case: “Sed vulgus ad magnitudinem beneficiorum aderat: Stultissimus quisque pecuniis mercabatur: Apud sapientes cassa habebantur, quæ neque dari neque accipi, salva republica, poterant.” The public is a debtor, whom no man can oblige to pay. The only check which the creditors have on it is the interest of preserving credit; an interest which may easily be overbalanced by a very great debt, and by a difficult and extraordinary emergence, even supposing that credit irrecoverable. Not to mention that a present necessity often forces states into measures which are, strictly speaking, against their interest.

33 I have heard it has been computed that all the creditors of the public, natives and foreigners, amount only to 17,000. These make a figure at present on their income; but in case of a public bankruptcy would in an instant become the lowest, as well as the most wretched of the people. The dignity and authority of the landed gentry and nobility is much better rooted, and would render the contention very unequal, if ever we come to that extremity. One would incline to assign to this event a very near period, such as half a century, had not our fathers’ prophecies of this kind been already found fallacious by the duration of our public credit so much beyond all reasonable expectation. When the astrologers in France were every year foretelling the death of Henry IV., “These fellows,” says he, “must be right at last.” We shall therefore be more cautious than to assign any precise date, and shall content ourselves with pointing out the event in general.