Note 21 — PART IV. OF PUBLIC CREDIT.

Thus were taxes established in France, in spight of the great aversion of that nation to them. The exigencies of the state were apparent; Princes were considered as under an absolute necessity to find money at any rate; they appeared to be in the hands of unrelenting usurers, who became the execration of the people, to whose fury they were sometimes delivered over, when stripped of their wealth: the people were now and then relieved of a part of their burthen; the tax remained under milder management; formed an addition to the King’s revenue, and served as a fund for future emergencies.

But the nature of man is such, that the more he grows in wealth, the more the desire of spending it increases. Thus the fund provided for unforeseen emergencies, is insensibly incorporated with that which is appropriated for the current service of the state.

Nothing however is more certain than that in time of war, far greater sums are required than any people can pay, without contracting debts.

Is it not then indispensibly necessary, either, 1mo, To have a sum locked up in treasure? Or, 2do, A fund appropriated, to borrow upon in time of war, which may serve to pay off the debts in time of peace? Or, 3tio, To borrow upon the stipulation of an annual payment, which may, in a certain number of years, acquit both interest and principal? The first is the plan of the King of Prussia; the second that of England; the third is, in a good measure, that of France: Holland borrows no more, and pays as she can what she owes; Spain lives on her income; and Austria remained in the old way till very lately, without credit, and consequently without much debt.