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  it　was　not　so　to　the　country；　but　was　only　a　capital　withdrawn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　or　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　what　they　pay　in　those
  taxes　might　no　doubt　have　been　accumulated　into　capital；　and
  consequently　employed　in　maintaining　productive　labour；　but　the
  greater　part　would　probably　have　been　spent　and　consequently
  employed　in　maintaining　unproductive　labour。　The　public　expense；
  however；　when　defrayed　in　this　manner；　no　doubt　hinders　more　or
  less　the　further　accumulation　of　new　capital；　but　it　does　not
  necessarily　occasion　the　destruction　of　any　actually　existing
  capital。
  When　the　public　expense　is　defrayed　by　funding；　it　is
  defrayed　by　the　annual　destruction　of　some　capital　which　had
  before　existed　in　the　country；　by　the　perversion　of　some　portion
  of　the　annual　produce　which　had　before　been　destined　for　the
  maintenance　of　productive　labour　towards　that　of　unproductive
  labour。　As　in　this　case；　however；　the　taxes　are　lighter　than　they
  would　have　been　had　a　revenue　sufficient　for　defraying　the　same
  expense　been　raised　within　the　year；　the　private　revenue　of
  individuals　is　necessarily　less　burdened；　and　consequently　their
  ability　to　save　and　accumulate　some　part　of　that　revenue　into
  capital　is　a　good　deal　less　impaired。　If　the　method　of　funding
  destroys　more　old　capital；　it　at　the　same　time　hinders　less　the
  accumulation　or　acquisition　of　new　capital　than　that　of　defraying
  the　public　expense　by　a　revenue　raised　within　the　year。　Under　the
  system　of　funding；　the　frugality　and　industry　of　private　people
  can　more　easily　repair　the　breaches　which　the　waste　and
  extravagance　of　government　may　occasionally　make　in　the　general
  capital　of　the　society。
  It　is　only　during　the　continuance　of　war；　however；　that　the
  system　of　funding　has　this　advantage　over　the　other　system。　Were
  the　expense　of　war　to　be　defrayed　always　by　a　revenue　raised
  within　the　year；　the　taxes　from　which　that　extraordinary　revenue
  was　drawn　would　last　no　longer　than　the　war。　The　ability　of
  private　people　to　accumulate；　though　less　during　the　war；　would
  have　been　greater　during　the　peace　than　under　the　system　of
  funding。　War　would　not　necessarily　have　occasioned　the
  destruction　of　any　old　capitals；　and　peace　would　have　occasioned
  the　accumulation　of　many　more　new。　Wars　would　in　general　be　more
  speedily　concluded；　and　less　wantonly　undertaken。　The　people
  feeling；　during　the　continuance　of　the　war；　the　complete　burden
  of　it；　would　soon　grow　weary　of　it；　and　government；　in　order　to
  humour　them；　would　not　be　under　the　necessity　of　carrying　it　on
  longer　than　it　was　necessary　to　do　so。　The　foresight　of　the　heavy
  and　unavoidable　burdens　of　war　would　hinder　the　people　from
  wantonly　calling　for　it　when　there　was　no　real　or　solid　interest
  to　fight　for。　The　seasons　during　which　the　ability　of　private
  people　to　accumulate　was　somewhat　impaired　would　occur　more
  rarely；　and　be　of　shorter　continuance。　Those；　on　the　contrary；
  during　which　the　ability　was　in　the　highest　vigour　would　be　of
  much　longer　duration　than　they　can　well　be　under　the　system　of
  funding。
  When　funding；　besides；　has　made　a　certain　progress；　the
  multiplication　of　taxes　which　it　brings　along　with　it　sometimes
  impairs　as　much　the　ability　of　private　people　to　accumulate　even
  in　time　of　peace　as　the　other　system　would　in　time　of　war。　The
  peace　revenue　of　Great　Britain　amounts　at　present　to　more　than
  ten　millions　a　year。　If　free　and　unmortgaged；　it　might　be
  sufficient；　with　proper　management　and　without　contracting　a
  shilling　of　new　debt；　to　carry　on　the　most　vigorous　war。　The
  private　revenue　of　the　inhabitants　of　Great　Britain　is　at　present
  as　much　encumbered　in　time　of　peace；　their　ability　to　accumulate
  is　as　much　impaired　as　it　would　have　been　in　the　time　of　the　most
  expensive　war　had　the　pernicious　system　of　funding　never　been
  adopted。
  In　the　payment　of　the　interest　of　the　public　debt；　it　has
  been　said；　it　is　the　right　hand　which　pays　the　left。　The　money
  does　not　go　out　of　the　country。　It　is　only　a　part　of　the　revenue
  of　one　set　of　the　inhabitants　which　is　transferred　to　another；
  and　the　nation　is　not　a　farthing　the　poorer。　This　apology　is
  founded　altogether　in　the　sophistry　of　the　mercantile　system；　and
  after　the　long　examination　which　I　have　already　bestowed　upon
  that　system；　it　may　perhaps　be　unnecessary　to　say　anything
  further　about　it。　It　supposes；　besides；　that　the　whole　public
  debt　is　owing　to　the　inhabitants　of　the　country；　which　happens
  not　to　be　true；　the　Dutch；　as　well　as　several　other　foreign
  nations；　having　a　very　considerable　share　in　our　public　funds。
  But　though　the　whole　debt　were　owing　to　the　inhabitants　of　the
  country；　it　would　not　upon　that　account　be　less　pernicious。
  Land　and　capital　stock　are　the　two　original　sources　of　all
  revenue　both　private　and　public。　Capital　stock　pays　the　wages　of
  productive　labour；　whether　employed　in　agriculture；　manufactures；
  or　commerce。　The　management　of　those　two　original　sources　of
  revenue　belong　to　two　different　sets　of　people；　the　proprietors
  of　land；　and　the　owners　or　employers　of　capital　stock。
  The　proprietor　of　land　is　interested　for　the　sake　of　his　own
  revenue　to　keep　his　estate　in　as　good　condition　as　he　can；　by
  building　and　repairing　his　tenants'　houses；　by　making　and
  maintaining　the　necessary　drains　and　enclosures；　and　all　those
  other　expensive　improvements　which　it　properly　belongs　to　the
  landlord　to　make　and　maintain。　But　by　different　land…taxes　the
  revenue　of　the　landlord　may　be　so　much　diminished；　and　by
  different　duties　upon　the　necessaries　and　conveniences　of　life
  that　diminished　revenue　may　be　rendered　of　so　little　real　value；
  that　he　may　find　himself　altogether　unable　to　make　or　maintain
  those　expensive　improvements。　When　the　landlord；　however；　ceases
  to　do　his　part；　it　is　altogether　impossible　that　the　tenant
  should　continue　to　do　his。　As　the　distress　of　the　landlord
  increases；　the　agriculture　of　the　country　must　necessarily
  decline。
  When；　by　different　taxes　upon　the　necessaries　and
  conveniences　of　life；　the　owners　and　employers　of　capital　stock
  find　that　whatever　revenue　they　derive　from　it　will　not；　in　a
  particular　country；　purchase　the　same　quantity　of　those
  necessaries　and　conveniences　which　an　equal　revenue　would　in
  almost　any　other；　they　will　be　disposed　to　remove　to　some　other。
  And　when；　in　order　to　raise　those　taxes；　all　or　the　greater　part
  of　merchants　and　manufacturers；　that　is；　all　or　the　greater　part
  of　the　employers　of　great　capitals；　come　to　be　continually
  exposed　to　the　mortifying　and　vexatious　visits　of　the
  tax…gatherers；　the　disposition　to　remove　will　soon　be　changed
  into　an　actual　removal。　The　industry　of　the　country　will
  necessarily　fall　with　the　removal　of　the　capital　which　supported
  it；　and　the　ruin　of　trade　and　manufactures　will　follow　the
  declension　of　agriculture。
  To　transfer　from　the　owners　of　those　two　great　sources　of
  revenue；　land　and　capital　stock；　from　the　persons　immediately
  interested　in　the　good　condition　of　every　particular　portion　of
  land；　and　in　the　good　management　of　every　particular　portion　of
  capital　stock；　to　another　set　of　persons　（the　creditors　of　the
  public；　who　have　no　such　particular　interest）；　the　greater　part
  of　the　revenue　arising　from　either　must；　in　the　long…run；
  occasion　both　the　neglect　of　land；　and　the　waste　or　removal　of
  capital　stock。　A　creditor　of　the　public　has　no　doubt　a　general
  interest　in　the　prosperity　of　the　agriculture；　manufactures；　and
  commerce　of　the　country；　and　consequently　in　the　good　condition
  of　its　lands；　and　in　the　good　management　of　its　capital　stock。
  Should　there　be　any　general　failure　or　declension　in　any　of　these
  things；　the　produce　of　the　different　taxes　might　no　longer　be
  sufficient　to　pay　him　the　annuity　or　interest　which　is　due　to
  him。　But　a　creditor　of　the　public；　considered　merely　as　such；　has
  no　interest　in　the　good　condition　of　any　particular　portion　of
  land；　or　in　the　good　management　of　any　particular　portion　of
  capital　stock。　As　a　creditor　of　the　public　he　has　no　kn