HKB
while he suffers the lash for his sins, he keeps himself up by twirling about. In politics, he is a good arithmetician, and in every thing else nothing at all.
There is one circumstance which comes so much within Lord North's province as a financier, that I am surprised it should escape him, which is, the different abilities of the two countries in supporting the expense; for, strange as it may seem, England is not a match for America in this particular. By a curious kind of revolution in accounts, the people of England seem to mistake their poverty for their riches; that is, they reckon their national debt as a part of their national wealth. They make the same kind of error which a man would do, who after mortgaging his estate, should add the money borrowed, to the full value of the estate, in order to count up his worth, and in this case he would conceive that he got rich by running into debt. Just thus it is with England. The government owed at the beginning of this war one hundred and thirty-five millions sterling, and though the individuals to whom it was due had a right to reckon their shares as so much private property, yet to the nation collectively it was so much poverty. There are as effectual limits to public debts as to private ones, for when once the money borrowed is so great as to require the whole yearly revenue to discharge the interest thereon, there is an end to further borrowing; in the same manner as when the interest of a man's debts amounts to the yearly income of his estate, there is an end to his credit. This is nearly the case with England, the interest of her present debt being at least equal to one half of her yearly revenue, so that out of ten millions annually collected by taxes, she has but five that she can call her own.
The very reverse of this was the case with America; she began the war without any debt upon her, and in order to carry it on, she neither raised money by taxes, nor borrowed it upon interest, but created it; and her situation at this time continues so much the reverse of yours that taxing would make her rich, whereas it would make you poor. When we shall have sunk the sum which we have created, we shall then be out of debt, be just as rich as when we began, and all the while we are doing it shall feel no difference, because the value will rise as the quantity decreases.
There was not a country in the world so capable of bearing the expense of a war as America; not only because she was not in debt when she began, but because the country is young and capable of infinite improvement, and has an almost boundless tract of new lands in store; whereas England has got to her extent of age and growth, and has not unoccupied land or property in reserve. The one is like a young heir coming to a large improvable estate; the other like an old man whose chances are over, and his estate mortgaged for half its worth.