manufactories and trade, were influenced by the continuance of statesmen in the poffeffion of emo❤ lument, or in the expectation of power. The husbandman and the failor only look for employment, the mechanic and the merchant only inquire for customers, without caring who are their rulers, fince they feldom gain from the contests of the great, and certainly know, that they enjoy protection from the adminiftration of justice, and from the operation of law,

CMAP.

CHAP. VI.

Foreign Difputes of George I.-The State of the Nation.-Obfervations.-The Progress of Commerce

and Shipping.-Complaints of a Decline of Trade. -Industry and Traffic encouraged.-Remarks.

HILE George I. who afcended the throne,

WHILE

in 1714, was, in fecret, little anxious about the enjoyment of his crown, amid the clafh of domestic parties, he engaged fucceffively in contests with almost every European power, because each, in its turn, had given protection to the Pretender to his rights.

But, the foreign difputes of this reign were short, as well as unexpensive. And they did not, therefore, call forth the whole force of the kingdom; which may be deduced in the following manner.

If the current of population continued its progrefs, as we have feen it did to the commencement of the prefent reign, the fighting men muft neceffarily have amounted, during the time of George I. to two millions and fifty thousand. And the effective wealth of the country, there is reafon to think, had accumulated mean while in a still greater proportion; from preceding encouragements, and the augmentation of capitals. H

Owing

Owing to the encrease of circulation, which enables the opulent to convert so easily land into coin, or coin into land, and to the accumulation too of moveable property, the intereft of money began to fall towards the end of King William's reign, when no great balance of trade flowed into the kingdom. And the natural intereft continuing low, even amid the preffures of the fubfequent war, the Parliament enacted, in 1713, that the legal intereft fhould not rife higher than five per cent. after September 1714. Thus England, while fhe was yet embarraffed with the never-failing confequences of war, gained "that abatement of intereft by law," which Sir Jofiah Child rather too fondly infifted, during the preceding age, would produce fo many benefits to his country: The advance of the price of lands in the purchafe; the improvement of the rent of farms; the employment of the poor; the multiplication of artificers; the increase of foreign trade; and the augmentation of the stocks of people. The natural interest of money fell to three per cent. in the reign of George I. while the government feldom borrowed at more than four.

The practice of borrowing on behalf of the ftate had commenced with the preffures of King William's reign. This policy was continued, and extended, during the wars of Anne. But, in the time of her fucceffor, the contract, between the government and the lenders, was not fo much made, as in preceding times, for the re-payment

of the principal, as for an annuity instead of interest.

The nation had thus contracted a debt, before the 31st of December 1714, of

to pay the intereft of which required, from the land and labour of this kingdom, yearly,

£.50,644,307;

£.2,811,904.

It ought to be remembered, however, that this debt was due by the nation in its collective capacity; but, that individual creditors had acquired a vaft capital in it, of the more importance to them and the public; as, befides yielding an annual profit, it was equally commodious as coin, for all the ufes of life; fince it could be easily pledged, or transferred. And land owners were thereby enabled to improve their eftates, manufacturers to carry on their bufinefs, traders to extend our commerce, and every one to pay their taxes. If by this debt, and by this annuity, the state was somewhat embarraffed, the induftrious claffes derived,. probably, fome advantage, from the active motion, which was thereby given to the circulating value of all things. Yet, if the people received no pofitive benefit, they were at least enabled, by this facility, to fuftain actual burdens with greater eafe.

While taxes were, without rigour, collected from annual income, and not from productive ca

pital, a financial operation was performed, in 1716, which gradually relieved the embarrassments of the state, and gave fresh vigour to circulation, that energetic principle of commercial times. All thofe taxes, which had from time to time been granted for the payment of various annuities, were at once made perpetual, and directed to be paid into three great funds. The intereft of the public debts was reduced from fix per cent. to five. And whatever furplufes might remain, after paying this liquidated intereft, were ordered to be thrown into a fourth fund, which was thenceforth called the finking fund, because it was defigned to pay off the principal and intereft of fuch debts as had been contracted before Chriftmas 1716.

So productive were the taxes, owing to the profperity of the people, that these furplufes amounted, before the end of the reign of George I. to £.1,083,190*. And these furplufes would have made the country ftill more profperous, had the finking fund been conftantly applied, as it was thus originally defigned; by keeping circulation full and overflowing, and thereby preventing what is commonly deplored as a fcarcity of money.

Notwithstanding that falutary operation, and our manufactures and trade were at the fame time greatly encouraged, the capital of the public debts amounted to nearly as much at the demife of

* Exchequer account, in the Hiftory of Debts.

George