or Hamburgh money has risen? there is no standard by which this can be
determined. It is a plea which admits of no proof, and can neither be
positively affirmed, nor positively contradicted. The nations of the
world must have been early convinced, that there was no standard of
value in nature, to which we might unerringly refer, and therefore chose
a medium, which, on the whole appeared to them less variable than any
other commodity.

To this standard we must conform till the law is changed, and till some
other commodity is discovered, by the use of which we shall obtain a
more perfect standard, than that which we have established. While gold
is exclusively the standard in this country, money will be depreciated,
when a pound sterling is not of equal value with 5 dwts. and 3 grs. of
standard gold, and that, whether gold rises or falls in general value.

CHAPTER VII.

ON TAXES.

Taxes are a portion of the produce of the land and labour of a country,
placed at the disposal of the government; and are always ultimately
paid, either from the capital, or from the revenue of the country.

We have already shewn how the capital of a country is either fixed or
circulating, according as it is of a more or of a less durable nature.
It is difficult to define strictly, where the distinction between
circulating and fixed capital begins; for there are almost infinite
degrees in the durability of capital. The food of a country is consumed
and reproduced, at least once in every year; the clothing of the
labourer is probably not consumed and reproduced in less than two
years; whilst his house and furniture are calculated to endure for a
period of ten or twenty years.

When the annual productions of a country exceed its annual consumption,
it is said to increase its capital; when its annual consumption at least
is not replaced by its annual production, it is said to diminish its
capital. Capital may therefore be increased by an increased production,
or by a diminished consumption.

If the consumption of the government, when increased by the levy of
additional taxes, be met either by an increased production, or by a
diminished consumption on the part of the people, the taxes will fall
upon revenue, and the national capital will remain unimpaired; but if
there be no increased production or diminished consumption on the part
of the people, the taxes will necessarily fall on capital.

In proportion as the capital of a country