in than those of Elizabeth, as London is better than any
distant part of the country.

That the ability of the nation to sustain a given burthen, for a certain
number of years, is no proof of a permanent ability to support it, must
be admitted, even if the same annual resources were to continue; but,
that permanent ability becomes much less certain, when we consider
that the annual resources are perpetually varying, that, therefore, they
have so many uncertain quantities, that it is impossible to resolve the
problem.

As to the effect, with respect to the increasing the burthens of the
people, that has been treated under the general head of taxation.
Whether the money goes to pay for a ship of war, a regiment of
soldiers, or the interest of loans, makes no difference to him who pays
the tax; and, indeed, makes little to the general system of national
economy, as, in every case, what is paid to the state is employed on
unproductive labourers or idle people. That is to say, it is consumed,
and never appears again.

[end of page #238]

National debt, then, so far as it increases the taxes of a country, is like
any other national expenditure; and, in maintaining unproductive and
idle people, it is also the same; but it has, in another point of view, a
different effect, and that effect is an advantageous one.

In every nation, the greatest part of the capital is employed, or, as it is
called, sunk. Land, houses, machines, merchandize, &c. are the
principal employments of capital. As those are transferred from one to
another, or as the use or produce of them is paid for, by one to
another, money is wanted occasionally; and, if there were no other
employments, money must either be lying idle in some persons =sic=
hands, till an employment could be found for it, or the possessor of it
must begin some enterprise, and sink it himself.

But, when money is thus employed, it is no longer in the power of the
proprietor; and, though money may be borrowed on such sort of
security, it is slowly, and with difficulty. The expense, the
inconveniency =sic=, and time necessary, prevent the lenders of
money from lending any for occasional purposes on such sort of
security; but when a nation borrows, and the stock is divisible and
transferable at will, money can always be realized when it is wanted
for any purpose that affords a greater advantage than the stock affords.
{190}

Without this had been one of the effects of national debt,