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 be usefully laid out in public works and national improvement, then wealth, whether in the hands of private men or of the Government, may always, if the possessors choose to spend it usefully, be usefully spent. The only ground, therefore, on which Mr. Southey can possibly maintain that a government cannot be too rich, but that a people may be too rich, must be this, that governments are more likely to spend their money on good objects than private individuals.
But what is useful expenditure? "A liberal expenditure in national works," says Mr. Southey, "is one of the surest means for promoting national prosperity." What does he mean by national prosperity? Does he mean the wealth of the State? If so, his reasoning runs thus: The more wealth a state has the better; for the more wealth a state has the more wealth it will have. This is surely something like that fallacy, which is ungallantly termed a lady's reason. If by national prosperity he means the wealth of the people, of how gross a contradiction is Mr. Southey guilty. A people, he tells us, may be too rich: a government cannot: for a government can employ its riches in making the people richer. The wealth of the people is to be taken from them, because they have too much, and laid out in works, which will yield them more.
We are really at a loss to determine whether Mr. Southey's reason for recommending large taxation is that it will make the people rich, or that it will make them poor. But we are sure that, if his object is to make them rich, he takes the wrong course. There are two or three principles respecting public works, which, as an experience of vast extent proves, may be trusted in almost every case.
It scarcely ever happens that any private man or body of men will invest property in a canal, a tunnel, or a bridge, but from an expectation that the outlay will be profitable to them. No work of this sort can be profitable to private speculators, unless the public be willing to pay for the use of it. The public will not pay of their own accord for what yields no profit or convenience to them. There is thus a direct and obvious connection between the motive which induces individuals to undertake such a work, and the utility of the work.