Critical and Historical Essays - Volume 2 - Thomas Babington Macaulay (best book club books txt) 📗

will neither clothe nor conceal them; and they will remain always as offensive to the eye as to the mind.'"

Here is wisdom. Here are the principles on which nations are to be governed. Rose-bushes and poor-rates, rather than steam- engines and independence. Mortality and cottages with weather- stains, rather than health and long life with edifices which time cannot mellow. We are told, that our age has invented atrocities beyond the imagination of our fathers; that society has been brought into a state compared with which extermination would be a blessing; and all because the dwellings of cotton-spinners are naked and rectangular. Mr. Southey has found out a way, he tells us, in which the effects of manufactures and agriculture may be compared. And what is this way? To stand on a hill, to look at a cottage and a factory, and to see which is the prettier. Does Mr. Southey think that the body of the English peasantry live, or ever lived, in substantial or ornamented cottages, with box- hedges, flower-gardens, beehives, and orchards? If not, what is his parallel worth? We despise those mock philosophers, who think that they serve the cause of science by depreciating literature and the fine arts. But if anything could excuse their narrowness of mind, it would be such a book as this. It is not strange that, when one enthusiast makes the picturesque the test of political good, another should feel inclined to proscribe altogether the pleasures of taste and imagination.

Thus it is that Mr. Southey reasons about matters with which he thinks himself perfectly conversant. We cannot, therefore, be surprised to find that he commits extraordinary blunders when he writes on points of which he acknowledges himself to be ignorant. He confesses that he is not versed in political economy, and that he has neither liking nor aptitude for it; and he then proceeds to read the public a lecture concerning it which fully bears out his confession.

"All wealth," says Sir Thomas More, "in former times was tangible. It consisted in land, money, or chattels, which were either of real or conventional value."

Montesinos, as Mr. Southey somewhat affectedly calls himself, answers thus:-

"Jewels, for example, and pictures, as in Holland, where indeed at one time tulip bulbs answered the same purpose."

"That bubble," says Sir Thomas, "was one of those contagious insanities to which communities are subject. All wealth was real, till the extent of commerce rendered a paper currency necessary; which differed from precious stones and pictures in this important point, that there was no limit to its production."

"We regard it," says Montesinos, "as the representative of real wealth; and, therefore, limited always to the amount of what it represents."

"Pursue that notion," answers the ghost, "and you will be in the dark presently. Your provincial banknotes, which constitute almost wholly the circulating medium of certain districts, pass current to-day. Tomorrow tidings may come that the house which issued them has stopt payment, and what do they represent then? You will find them the shadow of a shade."

We scarcely know at which end to begin to disentangle this knot of absurdities. We might ask, why it should be a greater proof of insanity in men to set a high value on rare tulips than on rare stones, which are neither more useful nor more beautiful? We might ask how it can be said that there is no limit to the production of paper money, when a man is hanged if he issues any in the name of another, and is forced to cash what he issues in his own? But Mr. Southey's error lies deeper still. "All wealth," says he, "was tangible and real till paper currency was introduced." Now, was there ever, since men emerged from a state of utter barbarism, an age in which there were no debts? Is not a debt, while the solvency of the debtor is undoubted, always reckoned as part of the wealth of the creditor? Yet is it tangible and real wealth? Does it cease to be wealth, because there is the security of a written acknowledgment for it? And what else is paper currency? Did Mr. Southey ever read a banknote? If he did, he would see that it is a written acknowledgment of a debt, and a promise to pay that debt. The promise may be violated, the debt may remain unpaid: those to whom it was due may suffer: but this is a risk not confined to cases of paper currency: it is a risk inseparable from the relation of debtor and creditor. Every man who sells goods for anything but ready money runs the risk of finding that what he considered as part of his wealth one day is nothing at all the next day. Mr. Southey refers to the picture-galleries of Holland. The pictures were undoubtedly real and tangible possessions. But surely it might happen that a burgomaster might owe a picture- dealer a thousand guilders for a Teniers. What in this case corresponds to our paper money is not the picture, which is tangible, but the claim of the picture-dealer on his customer for the price of the picture; and this claim is not tangible. Now, would not the picture-dealer consider this claim as part of his wealth? Would not a tradesman who knew of the claim give credit to the picture-dealer the more readily on account of the claim? The burgomaster might be ruined. If so, would not those consequences follow which, as Mr. Southey tells us, were never heard of till paper money came into use? Yesterday this claim was worth a thousand guilders. To-day what is it? The shadow of a shade.

It is true that, the more readily claims of this sort are transferred from hand to hand, the more extensive will be the injury produced by a single failure. The laws of all nations sanction, in certain cases, the transfer of rights not yet reduced into possession. Mr. Southey would scarcely wish, we should think, that all indorsements of bills and notes should be declared invalid. Yet even if this were done, the transfer of claims would imperceptibly take place, to a very great extent. When the baker trusts the butcher, for example, he is in fact, though not in form, trusting the butcher's customers. A man who owes large bills to tradesmen, and fails to pay them, almost always produces distress through a very wide circle of people with whom he never dealt.

In short, what Mr. Southey takes for a difference in kind is only a difference of form and degree. In every society men have claims on the property of others. In every society there is a possibility that some debtors may not be able to fulfil their obligations. In every society, therefore, there is wealth which is not tangible, and which may become the shadow of a shade.

Mr. Southey then proceeds to a dissertation on the national debt, which he considers in a new and most consolatory light, as a clear addition to the income of the country.

"You can understand," says Sir Thomas, "that it constitutes a great part of the national wealth."

"So large a part," answers Montesinos, "that the interest amounted, during the prosperous times of agriculture, to as much as the rental of all the land in Great Britain; and at present to the rental of all lands, all houses, and all other fixed property put together."

The Ghost and Laureate agree that it is very desirable that there should be so secure and advantageous a deposit for wealth as the funds afford. Sir Thomas then proceeds:

"Another and far more momentous benefit must not be overlooked; the expenditure of an annual interest, equalling, as you have stated, the present rental of all fixed property."

"That expenditure," quoth Montesinos, "gives employment to half the industry in the kingdom, and feeds half the mouths. Take, indeed, the weight of the national debt from this great and complicated social machine, and the wheels must stop."

From this passage we should have been inclined to think that Mr. Southey supposes the dividends to be a free gift periodically sent down from heaven to the fundholders, as quails and manna were sent to the Israelites; were it not that he has vouchsafed, in the following question and answer, to give the public some information which, we believe, was very little needed.

"Whence comes the interest?" says Sir Thomas.

"It is raised," answers Montesinos, "by taxation."

Now, has Mr. Southey ever considered what would be done with this sum if it were not paid as interest to the national creditor? If he would think over this matter for a short time, we suspect that the "momentous benefit" of which he talks would appear to him to shrink strangely in amount. A fundholder, we will suppose, spends dividends amounting to five hundred pounds a year; and his ten nearest neighbours pay fifty pounds each to the tax-gatherer, for the purpose of discharging the interest of the national debt. If the debt were wiped out, a measure, be it understood, which we by no means recommend, the fundholder would cease to spend his five hundred pounds a year. He would no longer give employment to industry, or put food into the mouths of labourers. This Mr. Southey thinks a fearful evil. But is there no mitigating circumstance? Each of the ten neighbours of our fundholder has fifty pounds a year more than formerly. Each of them will, as it seems to our feeble understandings, employ more industry and feed more mouths than formerly. The sum is exactly the same. It is in different hands. But on what grounds does Mr. Southey call upon us to believe that it is in the hands of men who will spend it less liberally or less judiciously? He seems to think that nobody but a fundholder can employ the poor; that, if a tax is remitted, those who formerly used to pay it proceed immediately to dig holes in the earth, and to bury the sum which the Government had been accustomed to take; that no money can set industry in motion till such money has been taken by the tax-gatherer out of one man's pocket and put into another man's pocket. We really wish that Mr. Southey would try to prove this principle, which is indeed the foundation of his whole theory of finance: for we think it right to hint to him that our hard-hearted and unimaginative generation will expect some more satisfactory reason than the only one with which he has yet favoured it, namely, a similitude touching evaporation and dew.

Both the theory and the illustration, indeed, are old friends of ours. In every season of distress which we can remember, Mr. Southey has been proclaiming that it is not from economy, but from increased taxation, that the country must expect relief; and he still, we find, places the undoubting faith of a political Diafoirus, in his

"Resaignare, repurgare, et reclysterizare."

"A people," he tells us, "may be too rich, but a government cannot be so."

"A state," says he, "cannot have more wealth at its command than may be employed for the general good, a liberal expenditure in national works being one of the surest means of promoting national prosperity; and the benefit being still more obvious, of an expenditure directed to the purposes of national improvement. But a people may be too rich."

We fully admit that a state cannot have at its command more wealth than may be employed for the general good. But neither can individuals, or bodies of individuals, have at their command more wealth than may be employed for the general good. If there be no limit to the sum which may