CHAPTER X.

DISTRIBUTION.-EFFECT OF TAXATION UPON WAGES AND PROFITS.

In the period which followed the close of the American war, the public revenue of Great Britain was 15 millions sterling. Of that sum about eight millions were required for payment of interest on the public debt, and about half a million per annum was applied to the extinguishment of the debt itself, which was reduced from 238 millions in 1783, to 233 millions in 1793.

In 1793, the first increase took place, amounting to only four millions. In this long period of peace the progress of production had been very rapid, as will be seen by an examination of the table herewith submitted. Shipping had grown from 846,000 tons to 1,563,000, in 1792. The hides imported, which averaged 344 millions of pounds, in 1784 and 1785, rose to 39 millions, in 1793. The foreign produce consumed rose from 11 to 134 millions. The imports of cotton wool, of sheeps' wool, and of silk, increased greatly. The bills for enclosures which, in 1785, were only 22, rose to 60, in 1793. The number of cattle and sheep brought to market, increased rapidly. The number of bricks which paid duty rose from 358 millions, in 1785, to 908 millions, in 1793; and tiles, from 56 to 76 millions. The price of wheat, in those years, fluctuated between 47s. and 60s. per quarter. The average of 1784, 1785, and 1786, was 54s., and that of 1791, 1792, and 1793, was 54s. 11d. Wages of bricklayers advanced from 2s. 4d. to 3s. per day, while those of masons and plumbers appear to have remained stationary. The power of commanding the necessaries of life had increased about 25 per cent. among the former, which could not have been the case without being accompanied by a general rise in the price of labour and increase in the power of obtaining commodities generally.

From 1793 to 1801, the extra expenditure amounted to 200 millions. During that time the population must have increased nearly 10 per cent., or probably 900,000 persons, requiring a corresponding increase in the amount of capital and of production. The government being, however, a competitor for that capital, the price rose, and stocks, of which only £ 102 could, in 1789, be had for £ 100 money, fell so low that, in 1797, £ 100 in money

A view of the progress of expenditure, of production, and of con

the American war to the termination of

YEAR.

sumption, in Great Britain, during the period from the close of the wars of the French Revolution, in 1816.

* We have taken the prices at Windsor, as given by Tooke, in preference to the average prices of England, because we had no table of the latter extending throughout the whole period.

would command £199, interest upon government securities having risen to six per cent. The natural consequence was that the revenue of individuals was no longer applied to promote that increase of production which was rendered necessary by the increased population. Not only did the ratio of production fall, but the actual production was diminished during many of those years, and as a natural consequence, the capitalist claimed an increased proportion of this diminished quantity.

Shipping, which had attained the height of 1,563,000 tons in 1792, fell to 1,103,000 tons in 1797, and in 1801, the quantity was only 1,345,000 tons. The import of hides experienced a slight increase. That of cotton wool, which had averaged, in 1789 and the three following years, 31 millions, averaged in 1795-6-7-8 less than 28 millions. In the three following years it underwent a considerable increase, a large portion of which was, however, for re-export.* The import of sheeps' wool experienced less variation. That of silk fell considerably. The consumption of foreign produce generally, which had risen during peace to 14 millions, fell in 1797, as low as 12 millions. It rose again to an average of 17 millions; but a very important portion of this increase was, as we have already shown, in raw materials, to be re-exported in a manufactured shape, and was not consumed at home. The number of bricks that paid duty, fell almost steadily from 1793 to 1799, being in the latter year only about 45 per cent. as great as in the former, and that of tiles experienced a great reduction. Enclosures, which had risen from 22 to 60, continued to rise during 1794, and 1795; and again in 1797; but the average of 1799, 1800, and 1801, was less than that of 1793-4-5. The number of cattle sent to market, which averaged in 1793, and 1794, 113 thousand, averaged in 1797 to 1800, only 116 thousand, notwithstanding an increase of 10 per cent. in the population. From 1793 to 1798, the number of sheep was not in any year so great as in 1792, and in the two following years the increase was less than 10 per cent. The average price of corn, in the eight years from 1794 to 1801, both inclusive, was 83s., being an increase of above 50 per cent. upon the prices of the previous period.

* The export of cotton manufactures, which in 1792, was £2,024,386, rose, in 1798, to £3,602,488; in 1799, to £5,808,009; and in 1800, to £5,854,057. It is probable that at least two millions of pounds of the apparently increased consumption of foreign produce was of raw materials for re-export. The quantity of cotton consumed in Great Britain, must have been less than in the previous years, notwithstanding the increase of population.

+ See note to page 166.

During this time wages remained stationary, the consequence of which was that the labouring classes could obtain but two-thirds as much wheat as during the former period. Capital no longer kept pace with population, and the capitalist would not invest his means, unless he could obtain at least as high interest as he could have from the government. The number of ships was reduced, and freights rose. The risk of capture caused insurance to be high. High profits, high freights, and great risks, raised prices, and diminished consumption. The number of enclosures no longer kept pace with the growth of population; capital was no longer applied in the usual ratio to the land, and prices of all descriptions of agricultural produce rose. The capitalist obtained a large proportion of the produce of labour, but his actual return in wheat for a given quantity of capital was diminished. During the period of nine years, from 1793 to 1801, 100 pounds would command, on an average, 148 pounds in the three per cents. In 1789, the same sum would have commanded 102 pounds. Interest had advanced 45 per cent., and provisions had advanced 50 per cent. The wealthy, whose expenditure for provisions bore but a very small proportion to the total amount, were enabled to obtain the services of the labouring classes upon the old terms, and articles of luxury rose but slowly compared with those of necessity. The owners of land obtained high prices for their products, while they paid low wages, retaining thus at large proportion. The money income of some landholders was much augmented, while their real income or power of obtaining commodities was diminished, and that of all was prevented from increasing. Had the capital wasted in war been applied to the making of roads and other improvements, all the land of Great Britain would have been rendered much more productive; the buildings would have continued to increase as they did in the period from 1783 to 1793, in which latter year the consumption of bricks was 908 millions; town lots would have risen in value; and water powers would have been occupied. All this was prevented. Those whose lands had been aided by capital, and who were provided with good roads, obtained large revenues, because others were prevented from competing with them. Those whose lots were built upon, obtained good rents, because the number of houses did not increase in the usual ratio, and those who had erected mills, and availed themselves of their water powers, were well paid, because the limitation of capital prevented competition; but when they came to apply their revenues to the purchase of