Let the income of both be supposed to be 2100l. sterling; and let the branches of their expence be ranged under six different heads. Let (A) be supposed to spend upon the first 100l. on the second 200l. on the third 300l. on the fourth 400l. on the fifth 500l. on the sixth 600l. in all 2100l.
Let us suppose (A) to enjoy in every one an ample sufficiency.
(B), on the other hand, spends upon his first article 1600l. and upon each of the other five, no more than 100l. Here the first article of (B’s) expence is sixteen times greater than any of the rest; and by the supposition, 100l. is supposed to denote an ample sufficiency upon each article.
I come to (A), and I say to him, you disapprove of the extravagance[extravagance] of your neighbour (B) upon his first article of expence, where he spends sixteen parts of his income, and where you spend but one; and yet you must allow that upon every other article of his expence, he is a better oeconomist than you. Would it not be for your interest to bring the other articles of your expence down to his standard, without increasing any thing upon your first article, which is already within the compass of what may be called sufficient.
To what purpose, says (A), would you advise me to so strict an oeconomy? And what should I do with so great a saving on my annual income? Be in no pain about that, I shall lay it out for you in discharging your debts; in providing for your children, and giving them a good education; in improving your estate; repairing your house; making up your inclosures; all shall be usefully spent; and out of 600l. a year, you shall have every thing necessary for your family.
Here is the representation of a scheme between a good statesman, and a people whose interest he consults.
After the imposition of taxes, the individuals of a state, whose income is already formed, begin to pay greatly more than they used to do for every thing they consume. A great part of this additional price goes to the public, and is thereby laid out for national purposes. The whole of such expences are thrown into circulation, as much as if the rich proprietors had laid it out upon articles entirely adapted to their own taste.
Is it not evident, that in this way of appropriating the income of a country, it must produce a more extensive encouragement to industry of all kinds, than if the proprietors only had spent it? They never would have thought of becoming merchants, or of setting up manufactures for the supply of foreign markets: their whole expence would have been calculated to supply their own wants; and it would have been indifferent to them whether these were supplied by natives or by strangers.
Let us apply this doctrine to common experience. Let us compare the nature of circulation in a trading town, with that of a country place, where many gentlemen of large fortunes reside. How extensive the objects of the first! how contracted those of the latter!
Let us compare again the exigencies of government, with those of a trading city, what a variety of new wants here occur to be supplied, which the city never could have occasion for?