Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1814 edition. Excerpt: ...The Doctor's plan for discharging the national debt by borrowing money at simple interest, in order to improve it at compound interest, is, we apprehend, completely delusive. He admits the absurdity of such a measure in private-life, --: and its absurdity in national finance is exactly the same. The cases differ only in extent of sum, and duration of time, which no ways alter the general tendency of the measure. Suppose a million borrowed for this purpose, and assigned to Commissioners for the redemption of the national debt, in whose hands it operates by compound interest. The interest of this loan is L.50,000, which must either be provided for by some additional tax, or saved by some measure of public economy; or if neither of these be adopted. ed, an additional loan must be made next year to pay the interest. In the former case, it is the tax or the economy, and not the operation described, that benefits the revenue; and they.would have produced the same effect by affording an additional surplus improved at compound interest, without any loan. In the latter case, an additional sum of L.50,000 is borrowed the second year; and a sum equal to the interest of both loans, or L. 102,500, the third year; and thus the debt accumulates by compound interest against the public, exactly to the same extent that the money vested in the hands of the commissioners accumulates in its favour. Dr. Price's assertion, that it is of little consequence what interest a nation paid for its loans, is untenable. In time of war, additional interest must be met by additional taxes, or accumulate by compound interest against the public. In time of peace, reduction of interest produces or increases a surplus, upon the application of which the redemption of national.
