land；　or　in　the　good　management　of　any　particular　portion　of
  capital　stock。　As　a　creditor　of　the　public　he　has　no　knowledge　of
  any　such　particular　portion。　He　has　no　inspection　of　it。　He　can
  have　no　care　about　it。　Its　ruin　may　in　some　cases　be　unknown　to
  him；　and　cannot　directly　affect　him。
  The　practice　of　funding　has　gradually　enfeebled　every　state
  which　has　adopted　it。　The　Italian　republics　seem　to　have　begun
  it。　Genoa　and　Venice；　the　only　two　remaining　which　can　pretend　to
  an　independent　existence；　have　both　been　enfeebled　by　it。　Spain
  seems　to　have　learned　the　practice　from　the　Italian　republics；
  and　（its　taxes　being　probably　less　judicious　than　theirs）　it　has；
  in　proportion　to　its　natural　strength；　been　still　more　enfeebled。
  The　debts　of　Spain　are　of　very　old　standing。　It　was　deeply　in
  debt　before　the　end　of　the　sixteenth　century；　about　a　hundred
  years　before　England　owed　a　shilling。　France；　notwithstanding　all
  its　natural　resources；　languishes　under　an　oppressive　load　of　the
  same　kind。　The　republic　of　the　United　Provinces　is　as　much
  enfeebled　by　its　debts　as　either　Genoa　or　Venice。　Is　it　likely
  that　in　Great　Britain　alone　a　practice　which　has　brought　either
  weakness　or　desolation　into　every　other　country　should　prove
  altogether　innocent？
  The　system　of　taxation　established　in　those　different
  countries；　it　may　be　said；　is　inferior　to　that　of　England。　I
  believe　it　is　so。　But　it　ought　to　be　remembered　that；　when　the
  wisest　government　has　exhausted　all　the　proper　subjects　of
  taxation；　it　must；　in　cases　of　urgent　necessity；　have　recourse　to
  improper　ones。　The　wise　republic　of　Holland　has　upon　some
  occasions　been　obliged　to　have　recourse　to　taxes　as　inconvenient
  as　the　greater　part　of　those　of　Spain。　Another　war　begun　before
  any　considerable　liberation　of　the　public　revenue　had　been
  brought　about；　and　growing　in　its　progress　as　expensive　as　the
  last　war；　may；　from　irresistible　necessity；　render　the　British
  system　of　taxation　as　oppressive　as　that　of　Holland；　or　even　as
  that　of　Spain。　To　the　honour　of　our　present　system　of　taxation；
  indeed；　it　has　hitherto　given　so　little　embarrassment　to　industry
  that；　during　the　course　even　of　the　most　expensive　wars；　the
  frugality　and　good　conduct　of　individuals　seem　to　have　been　able；
  by　saving　and　accumulation；　to　repair　all　the　breaches　which　the
  waste　and　extravagance　of　government　had　made　in　the　general
  capital　of　the　society。　At　the　conclusion　of　the　late　war；　the
  most　expensive　that　Great　Britain　ever　waged；　her　agriculture　was
  as　flourishing；　her　manufacturers　as　numerous　and　as　fully
  employed；　and　her　commerce　as　extensive　as　they　had　ever　been
  before。　The　capital；　therefore；　which　supported　all　those
  different　branches　of　industry　must　have　been　equal　to　what　it
  had　ever　been　before。　Since　the　peace；　agriculture　has　been　still
  further　improved；　the　rents　of　houses　have　risen　in　every　town
  and　village　of　the　country…　a　proof　of　the　increasing　wealth　and
  revenue　of　the　people；　and　the　annual　amount　the　greater　part　of
  the　old　taxes；　of　the　principal　branches　of　the　excise　and
  customs　in　particular；　has　been　continually　increasing…　an
  equally　clear　proof　of　an　increasing　consumption；　and
  consequently　of　an　increasing　produce　which　could　alone　support
  that　consumption。　Great　Britain　seems　to　support　with　ease　a
  burden　which；　half　a　century　ago；　nobody　believed　her　capable　of
  supporting。　Let　us　not；　however；　upon　this　account　rashly
  conclude　that　she　is　capable　of　supporting　any　burden；　nor　even
  be　too　confident　that　she　could　support；　without　great　distress；
  a　burden　a　little　greater　than　what　has　already　been　laid　upon
  her。
  When　national　debts　have　once　been　accumulated　to　a　certain
  degree；　there　is　scarce；　I　believe；　a　single　instance　of　their
  having　been　fairly　and　completely　paid。　The　liberation　of　the
  public　revenue；　if　it　has　ever　been　brought　about　by　bankruptcy；
  sometimes　by　an　avowed　one；　but　always　by　a　real　one；　though
  frequently　by　a　pretended　payment。
  The　raising　of　the　denomination　of　the　coin　has　been　the
  most　usual　expedient　by　which　a　real　public　bankruptcy　has　been
  disguised　under　the　appearance　of　a　pretended　payment。　If　a
  sixpence；　for　example；　should　either　by　Act　of　Parliament　or
  Royal　Proclamation　be　raised　to　the　denomination　of　a　shilling；
  and　twenty　sixpences　to　that　of　a　pound　sterling；　the　person　who
  under　the　old　denomination　had　borrowed　twenty　shillings；　or　near
  four　ounces　of　silver；　would；　under　the　new；　pay　with　twenty
  sixpences；　or　with　something　less　than　two　ounces。　A　national
  debt　of　about　a　hundred　and　twenty…eight　millions；　nearly　the
  capital　of　the　funded　and　unfunded　debt　of　Great　Britain；　might
  in　this　manner　be　paid　with　about　sixty…four　millions　of　our
  present　money。　It　would　indeed　be　a　pretended　payment　only；　and
  the　creditors　of　the　public　would　really　be　defrauded　of　ten
  shillings　in　the　pound　of　what　was　due　to　them。　The　calamity；
  too；　would　extend　much　further　than　to　the　creditors　of　the
  public；　and　those　of　every　private　person　would　suffer　a
  proportionable　loss；　and　this　without　any　advantage；　but　in　most
  cases　with　a　great　additional　loss；　to　the　creditors　of　the
  public。　If　the　creditors　of　the　public；　indeed；　were　generally
  much　in　debt　to　other　people；　they　might　in　some　measure
  compensate　their　loss　by　paying　their　creditors　in　the　same　coin
  in　which　the　public　had　paid　them。　But　in　most　countries　the
  creditors　of　the　public　are；　the　greater　part　of　them；　wealthy
  people；　who　stand　more　in　the　relation　of　creditors　than　in　that
  of　debtors　towards　the　rest　of　their　fellow…citizens。　A　pretended
  payment　of　this　kind；　therefore；　instead　of　alleviating；
  aggravates　in　most　cases　the　loss　of　the　creditors　of　the　public；
  and　without　any　advantage　to　the　public；　extends　the　calamity　to
  a　great　number　of　other　innocent　people。　It　occasions　a　general
  and　most　pernicious　subversion　of　the　fortunes　of　private　people；
  enriching　in　most　cases　the　idle　and　profuse　debtor　at　the
  expense　of　the　industrious　and　frugal　creditor；　and　transporting
  a　great　part　of　the　national　capital　from　the　hands　which　were
  likely　to　increase　and　improve　it　to　those　which　are　likely　to
  dissipate　and　destroy　it。　When　it　becomes　necessary　for　a　state
  to　declare　itself　bankrupt；　in　the　same　manner　as　when　it　becomes
  necessary　for　an　individual　to　do　so；　a　fair；　open；　and　avowed
  bankruptcy　is　always　the　measure　which　is　both　least
  dishonourable　to　the　debtor　and　least　hurtful　to　the　creditor。
  The　honour　of　a　state　is　surely　very　poorly　provided　for　when；　in
  order　to　cover　the　disgrace　of　a　real　bankruptcy；　it　has　recourse
  to　a　juggling　trick　of　this　kind；　so　easily　seen　through；　and　at
  the　same　time　so　extremely　pernicious。
  Almost　all　states；　however；　ancient　as　well　as　modern；　when
  reduced　to　this　necessity　have；　upon　some　occasions；　played　this
  very　juggling　trick。　The　Romans；　at　the　end　of　the　first　Punic
  war；　reduced　the　As；　the　coin　or　denomination　by　which　they
  computed　the　value　of　all　their　other　coins；　from　containing
  twelve　ounces　of　copper　to　contain　only　two　ounces；　that　is；　they
  raised　two　ounces　of　copper　to　a　denomination　which　had　always
  before　expressed　the　value　of　twelve　ounces。　The　republic　was；　in
  this　manner；　enabled　to　pay　the　great　debts　which　it　had
  contracted　with　the　sixth　part　of　what　it　really　owed。　So　sudden
  and　so　great　a　bankruptcy；　we　should　in　the　present　times　be　apt
  to　imagine；　must　have　occasioned　a　very　violent　popular　clamour。
  It　does　not　appear　to　have　occasioned　any。　The　law　which　enacted
  it　was；　like　all　other　laws　relating　to　the　coin；　introduced　and
  carried　through　the　assembly　of　the　people　by　a　tribune；　and　was
  probably　a　very　popular　law。　In　Rome；　as　in　all　the　other　ancient
  republics；　the　poor　people　were　constantly　in　debt　to　the　rich
  and　the　great；　who　in　order　to　secure　their　votes　at　the　annual
  elections；　used　to　lend　them　money　at　exorbitant　interest；　which；
  being　never　paid；　soon　accumulated　into　a　sum　too　great　either
  for　the　debtor　to　pay；　or　for　anybody　else　to　pay　for　him。　The
  debtor；　for　fear　of　a　very　severe　execution；　was　obliged；　without
  any　further　gratuity；　to　vote　for　the　candidate　whom　the　creditor
  recommended。　In　spite　of　all　the　laws　against　bribery　and
  corruption；　the　bounty　of　the　candidates；　together　with　the
  occasional　distributions　of　corn　which　were　ordered　by　the
  senate；　were　the　principal　funds　from　which；　during　the　latter
  times　of　the　Roman　republic；　the　poorer　citizens　derived　their
  subsistence。　To　deliver　themselves　from　this　subjection　to　their
  creditors；　the　poorer　citizens　were　continually　calling　out
  either　for　an　entire　abolition　of　debts；　or　for　what　they　called
  New　Tables；　that　is；　for　a　law　which　should　entitle　them　to　a
  complete　acquittance　upon　paying　only　a　certain　proportion　of
  their　accumulated　debts。　The　law　which　reduced　the　coin　of　all
  d