ears 1838
and 1839 amount to forty-seven million five hundred thousand francs. In
1840, the excess of expenses over receipts is expected to be twenty-two
million five hundred thousand francs. Attention was called to these
figures by Lord Ripon. Lord Melbourne replied: 'The noble earl unhappily
was right in declaring that the public expenses continually increase,
and with him I must say that there is no room for hope that they can be
diminished or met in any way.'"--National: January 26, 1840.

A nation is the tenant of a rich proprietor called the GOVERNMENT,
to whom it pays, for the use of the soil, a farm-rent called a tax.
Whenever the government makes war, loses or gains a battle, changes the
outfit of its army, erects a monu-ment, digs a canal, opens a road,
or builds a railway, it borrows money, on which the tax-payers pay
interest; that is, the government, without adding to its productive
capacity, increases its active capital,--in a word, capitalizes after
the manner of the proprietor of whom I have just spoken.

Now, when a governmental loan is once contracted, and the interest is
once stipulated, the budget cannot be reduced. For, to accomplish that,
either the capitalists must relinquish their interest, which would
involve an abandonment of property; or the government must go into
bankruptcy, which would be a fraudulent denial of the political
principle; or it must pay the debt, which would require another loan;
or it must reduce expenses, which is impossible, since the loan
was contracted for the sole reason that the ordinary receipts
were insufficient; or the money expended by the government must be
reproductive, which requires an increase of productive capacity,--a
condition excluded by our hypothesis; or, finally, the tax-payers must
submit to a new tax in order to pay the debt,--an impossible thing. For,
if this new tax were levied upon all citizens alike, half, or even more,
of the citizens would be unable to pay it; if the rich had to bear the
whole, it would be a forced contribution,--an invasion of property.
Long financial experience has shown that the method of loans, though
exceedingly dangerous, is much surer, more convenient, and less costly
than any other method; consequently the government borrows,--that is,
goes on capitalizing,--and increases the budget.

Then, a budget, instead of ever diminishing, must necessarily and
continually increase. It is astonishing that the economists, with all