In these therefore,
and these only, the property of the public creditors does really and
intrinsically exist: and of course the land, the trade, and the
personal industry of individuals, are diminished in their true value
just so much as they are pledged to answer. If A's income amounts to
100_l._ _per annum_; and he is so far indebted to B, that he pays him
50_l._ _per annum_ for his interest; one half of the value of A's
property is transferred to B the creditor. The creditor's property
exists in the demand which he has upon the debtor, and no where else;
and the debtor is only a trustee to his creditor for one half of the
value of his income. In short, the property of a creditor of the
publick, consists in a certain portion of the national taxes: by how
much therefore he is the richer, by so much the nation, which pays
these taxes, is the poorer.

THE only advantage, that can result to a nation from public debts, is
the encrease of circulation by multiplying the cash of the kingdom,
and creating a new species of money, always ready to be employed in
any beneficial undertaking, by means of it's transferrable quality;
and yet productive of some profit, even when it lies idle and
unemployed. A certain proportion of debt seems therefore to be highly
useful to a trading people; but what that proportion is, it is not for
me to determine. Thus much is indisputably certain, that the present
magnitude of our national incumbrances very far exceeds all
calculations of commercial benefit, and is productive of the greatest
inconveniences. For, first, the enormous taxes, that are raised upon
the necessaries of life for the payment of the interest of this debt,
are a hurt both to trade and manufactures, by raising the price as
well of the artificer's subsistence, as of the raw material, and of
course, in a much greater proportion, the price of the commodity
itself. Secondly, if part of this debt be owing to foreigners, either
they draw out of the kingdom annually a considerable quantity of
specie for the interest; or else it is made an argument to grant them
unreasonable privileges in order to induce them to reside here.
Thirdly, if the whole be owing to subjects only, it is then charging
the active and industrious subject, who pays his share of the taxes,
to maintain the indolent and idle creditor who receives them. Lastly,
and principally, it weakens the internal strength of a state, by
anticipating those resources which should