an annual waste of ninety-six millions of the aggregate capital of France by the expenditure of the government alone, besides what is consumed by the expenditure of private individuals. To supply an expenditure infinitely exceeding the prodigality and extravagance of any government that ever yet appeared in the world, the revolutionary government had recourse at first to the practice of increasing the mass of paper money. They declared, that they had no other means of sustaining the pressure of the present war, than by the creation of an additional quantity of assignats upon the pledge of the national property; consisting of the ancient church lands, the estates of the crown, the resumed grants or sales of crown lands, and the estates real and personal of the emigrants, and of all persons executed for state crimes. But they have been compelled to confess, that this resource of assignats cannot be available to any thing like the extent to which it was carried by their predecessors; and both from their language and their measures there is every reason to believe, that they are convinced that it cannot long be available at all. There is not a single speech or report upon the subject of finance, in which the quantity of assignats already in circulation is not represented as a grievance of the most urgent nature. In one of the reports they declare, that assignats are become their only instrument of commerce and measure of value; they give them the favourite title of revolutionary money; and then they describe their effect, which is indeed of the genuine revolutionary character; they say, "assignats grind the poor, cheat the rich, foment avarice, and nourish every species of ruinous speculation."*

* The total number of assignats created, has been

En caisse, on the 1st of May

Issued, about

Burnt to 1st August

Remained

Royal assignats demonetisés

In circulation on the 1st of August, 1793

5,100,000,000 485,000,000

4,615,000,000

840,000,000 3,775,000,000 558,000,000

3,217,000,000

Or above 130 millions sterling.

This sum is exclusive of forged assignats to a great amount. Upon this reasoning, they determine that it is absolutely necessary to diminish the quantity of assignats in circulation, and they enter upon a variety of projects and experiments for that purpose, which together form a system of finance so absurd and iniquitous in its principle, and so rapidly destructive in its operation, that its existence, in an age conversant with every question of political economy would be incredible, if it were not capable of proof by reference to the authentick reports of the several committees, and to the decrees of the convention. One of their first steps was to forbid, under the colour of a republican zeal for the extinction of every trace and vestige of the monarchy, the circulation of all assignats of above a hundred livres, bearing the image of the late king. This outrageous act of publick fraud is attempted to be justified by a most singular train of reasoning. Twelve or fifteen hundred millions of livres (that is, about 50 or 60 millions sterling) they say, are due on account of arrears by the purchasers of national domains; and six or seven hundred millions of livres (that is, from 25 to 30 millions sterling) are due on account of arrears of taxes. They therefore permit these dismonied* assignats, as they call them, to be received at the publick treasury in payment of either of these classes of arrears, provided such payment be made before the 1st of January, 1794. It is evident that this relief could have only a partial operation; it makes no provision whatever for the case of that numerous description of persons who might be in possession of royal assignats of above the value of a hundred livres, and yet might not be indebted to the publick treasury to that amount. But this was followed by a proceeding still more violent. On the 14th of December it appeared that there remained royal assignats of above 100 livres outstanding to the amount of 178 millions of livres, a sum exceeding 7 millions sterling. Cambon, in reporting upon the

* Demonetisés.

† This decree passed on the 31st of August, 1793.

subject treats this sum as a mere trifle. He adds, that none but aristocrats could at that period be the holders of royal assignats, and nobody could feel any regret at seeing them perish in such hands: besides, the republick would gain 50 or 60 millions (or about 2,500,0001. sterling) by this new operation. Upon this ground, a decree passed on the 14th of December, declaring that after the 1st of January, 1794, no royal assignat of above a hundred livres should either be circulated or received in the treasury on any account; that all holders of any such assignats after that day shall be bound to bring them to the municipalities to be burnt! and that after the 1st of February any holder of such an assignat shall be deemed a suspected person, and exposed to the vengeance of the republick. This decree can be considered as nothing less than a direct act of bankruptcy; to what precise amount must have depended on the value of the assignats paid into the treasury between the 14th of December, 1793, the day on which the decree passed, and the 1st of January, 1794, the time limited for receiving such assignats at the treasury. Cambon states, that the gain to the republick would be about 2,500,000l. sterling. We may therefore at least, take the amount of the bankruptcy of the republick upon his calculation.

The next proceeding which I have to state is of a still more extraordinary complexion. On the 24th of August 1793, a subscription was opened for a loan at 4 per cent. interest, for the purpose of taking up assignats. This loan was called by a singular epithet the voluntary loan, to contradistinguish it from the forced loan, by the plan of which it is accompanied in the same report, although the details of that plan were not formally enacted until the 3d of September. Few or no voluntary subscribers having appeared, (as might naturally be expected in a country where there is no publick credit, and no security for any property, and least of all for any property in the publick funds) the companion of the voluntary loan was now brought forward, and a decree was passed, exacting from the

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people of France a forced loan of one milliard, or forty millions sterling, being one third of the total collective annual income of all the individuals in France, according to the statement of the convention itself. The object of this measure is stated expressly to be to diminish the mass of assignats, and to bind the rich citizen to the fate and to the success of the revolution. This loan is to be levied on "all income arising from property in the publick funds, from private annuities, from interest of capital employed in commerce, in banking, or generally in profitable business of any kind." But this is not enough : even what is called idle capital is not exempt. Idle capital is defined to be any sum exceeding his half-yearly income, which an egotist may have laid by, either in his strong box, or at his banker's, or in the hands of persons indebted to him." This unproductive property is estimated to produce five per cent. interest, and according to that rate is to be reputed as income, and to be made liable to the tax. Any profit made upon capital employed before the year 1793 is also to be rated at five per cent. and subjected to the tax. A commission is appointed to ascertain every man's income, and every man is bound to give in the name and dwelling place of all his creditors. No interest is allowed upon this forced loan, and no part of it is to be repaid until the term of two years after the peace, when attested receipts of payments on account of the loan are to be admitted in the purchase of national domains. The rate of this tax is as follows: on all yearly income not exceeding a thousand livres, or forty pounds sterling, one-tenth is to be taken. The tax then increases progressively one tenth upon each one thousand livres, or forty pounds sterling, until where the income reaches ten thousand livres, or four hundred pounds sterling, two hundred and twenty pounds are absorbed by the tax. All income above four hundred pounds sterling is to be taken absolutely and entirely; so that the first basis of calculation on which this measure is founded is, that for the present year no man in France shall have an income of more than one hundred and eighty pounds.*

There are however certain deductions allowed. Το bachelors 401. income free from the tax; to every married man 60l.; and the ample allowance of forty pounds for the maintenance of his wife, and the same for each of his children; and all those who may choose to take charge of an old man, or of the wife or child of a defender of the country are to be allowed the same addition of forty pounds free income. What may be the expense of maintaining the wife or child of a defender of the country is difficult to compute; probably the intention of this regulation was to afford a pretext to the Jacobins and to their friends for evading this grievous tax. I leave it to the house to decide, what the operation of this tax must be upon the higher classes affected by it; and what relief it would be to a mant of ten, of five, or of one thousand

* The tax is calculated as follows, in sterling money :