to this account, the whole debt paid off, during 
eleven years of profound peace, amounted 
only to L.10,415,476 : 16 : 97⁄8. Even this 
small reduction of debt, however, has not 
been all made from the savings out of the ordinary 
revenue of the state. Several extraneous 
sums, altogether independent of that 
ordinary revenue, have contributed towards 
it. Amongst these we may reckon an additional 
shilling in the pound land tax, for three 
years; the two millions received from the 
East-India company, as indemnification for 
their territorial acquisitions; and the one hundred 
and ten thousand pounds received from 
the bank for the renewal of their charter. To 
these must be added several other sums, which, 
as they arose out of the late war, ought perhaps 
to be considered as deductions from the 
expenses of it. The principal are, 
The produce of French prizesL.690,449189 
Composition for French prisoners670,00000 
What has been received from the sale of the ceded islands95,50000 
If we add to this sum the balance of the earl 
of Chatham's and Mr. Calcraft's accounts
and other army savings of the same kind, together 
with what has been received from the 
bank, the East-India company, and the additional 
shilling in the pound land tax, the 
whole must be a good deal more than five 
millions. The debt, therefore, which, since 
the peace, has been paid out of the savings 
from the ordinary revenue of the state, has 
not, one year with another, amounted to half 
a million a-year. The sinking fund has, no 
doubt, been considerably augmented since the 
peace, by the debt which had been paid off, 
by the reduction of the redeemable four per 
cents to three per cents, and by the annuities 
for lives which have fallen in; and, if 
peace were to continue, a million, perhaps, 
might now be annually spared out of it towards 
the discharge of the debt. Another 
million, accordingly, was paid in the course 
of last year; but at the same time, a large civil-list 
debt was left unpaid, and we are now 
involved in a new war, which, in its progress, 
may prove as expensive as any of our former 
wars.[78] The new debt which will probably be 
contracted before the end of the next campaign
may, perhaps, be nearly equal to all the 
old debt which has been paid off from the savings 
out of the ordinary revenue of the state. 
It would be altogether chimerical, therefore, 
to expect that the public debt should ever be 
completely discharged, by any savings which 
are likely to be made from that ordinary revenue 
as it stands at present. 
The public funds of the different indebted 
nations of Europe, particularly those of England
have, by one author, been represented 
as the accumulation of a great capital, superadded 
to the other capital of the country, by 
means of which its trade is extended, its 
manufactures are multiplied, and its lands 
cultivated and improved, much beyond what 
they could have been by means of that other 
capital only. He does not consider that the 
capital which the first creditors of the public 
advanced to government, was, from the moment 
in which he advanced it, a certain portion 
of the annual produce, turned away from 
serving in the function of a capital, to serve 
in that of a revenue; from maintaining productive 
labourers, to maintain unproductive 
ones, and to be spent and wasted, generally in 
the course of the year, without even the hope 
of any future reproduction. In return for 
the capital which they advanced, they obtained, 
indeed, an annuity of the public funds, in 
most cases, of more than equal value. This 
annuity, no doubt, replaced to them their capital, 
and enabled them to carry on their trade 
and business to the same, or, perhaps, to a 
greater extent than before; that is, they were 
enabled, either to borrow of other people
new capital, upon the credit of this annuity 
or, by selling it, to get from other people a 
new capital of their own, equal, or superior, to 
that which they had advanced to government
This new capital, however, which they in this 
manner either bought or borrowed of other 
people, must have existed in the country before, 
and must have been employed, as all capitals 
are, in maintaining productive labour
When it came into the hands of those who 
had advanced their money to government
though it was, in some respects, a new capital 
to them, it was not so to the country, but was 
only a capital withdrawn from certain employments, 
in order to be turned towards 
others. Though it replaced to them what 
they had advanced to government, it did not 
replace it to the country. Had they not advanced 
this capital to government, there would 
have been in the country two capitals, two 
portions of the annual produce, instead of 
one, employed in maintaining productive labour
When, for defraying the expense of government
a revenue is raised within the year
from the produce of free or unmortgaged 
taxes, a certain portion of the revenue of private 
people is only turned away from maintaining 
one species of unproductive labour
towards maintaining another. Some part of