uch a delusion. The English
funding system will remain a monument of wonder, not so much on account
of the extent to which it has been carried, as of the folly of believing
in it.

Those who had formerly predicted that the funding system would break
up when the debt should amount to one hundred or one hundred and fifty
millions, erred only in not distinguishing between insolvency and actual
bankruptcy; for the insolvency commenced as soon as the government
became unable to pay the interest in cash, or to give cash for the bank
notes in which the interest was paid, whether that inability was known
or not, or whether it was suspected or not. Insolvency always takes
place before bankruptcy; for bankruptcy is nothing more than the
publication of that insolvency. In the affairs of an individual, it
often happens that insolvency exists several years before bankruptcy,
and that the insolvency is concealed and carried on till the individual
is not able to pay one shilling in the pound. A government can ward off
bankruptcy longer than an individual: but insolvency will inevitably
produce bankruptcy, whether in an individual or in a government. If then
the quantity of bank notes payable on demand, which the bank has issued,
are greater than the bank can pay off, the bank is insolvent: and when
that insolvency is declared, it is bankruptcy.(*)

* Among the delusions that have been imposed upon the
nation by ministers to give a false colouring to its
affairs, and by none more than by Mr. Pitt, is a motley,
amphibious-charactered thing called the _balance of trade_.
This balance of trade, as it is called, is taken from the
custom-house books, in which entries are made of all cargoes
exported, and also of all cargoes imported, in each year;
and when the value of the exports, according to the price
set upon them by the exporter or by the custom-house, is
greater than the value of the imports, estimated in the same
manner, they say the balance of trade is much in their
favour.

The custom-house books prove regularly enough that so many
cargoes have been exported, and so many imported; but this
is all that they prove, or were intended to prove. They have
nothing to do with the balance of profit or loss; and it is
ignorance to appeal to them upon that account: for the case
is, that the greater the loss is in any one year, the higher
will