The Writings Of Thomas Paine Volume I Part 9

PHILADELPHIA, June 9, 1780.

P. S. At the time of writing this number of the Crisis, the loss of Charleston, though believed by some, was more confidently disbelieved by others. But there ought to be no longer a doubt upon the matter.

Charleston is gone, and I believe for the want of a sufficient supply of provisions. The man that does not now feel for the honor of the best and n.o.blest cause that ever a country engaged in, and exert himself accordingly, is no longer worthy of a peaceable residence among a people determined to be free.

C. S.

THE CRISIS EXTRAORDINARY

ON THE SUBJECT OF TAXATION.

IT IS impossible to sit down and think seriously on the affairs of America, but the original principles upon which she resisted, and the glow and ardor which they inspired, will occur like the undefaced remembrance of a lovely scene. To trace over in imagination the purity of the cause, the voluntary sacrifices that were made to support it, and all the various turnings of the war in its defence, is at once both paying and receiving respect. The principles deserve to be remembered, and to remember them rightly is repossessing them. In this indulgence of generous recollection, we become gainers by what we seem to give, and the more we bestow the richer we become.

So extensively right was the ground on which America proceeded, that it not only took in every just and liberal sentiment which could impress the heart, but made it the direct interest of every cla.s.s and order of men to defend the country. The war, on the part of Britain, was originally a war of covetousness. The sordid and not the splendid pa.s.sions gave it being. The fertile fields and prosperous infancy of America appeared to her as mines for tributary wealth. She viewed the hive, and disregarding the industry that had enriched it, thirsted for the honey. But in the present stage of her affairs, the violence of temper is added to the rage of avarice; and therefore, that which at the first setting out proceeded from purity of principle and public interest, is now heightened by all the obligations of necessity; for it requires but little knowledge of human nature to discern what would be the consequence, were America again reduced to the subjection of Britain. Uncontrolled power, in the hands of an incensed, imperious, and rapacious conqueror, is an engine of dreadful execution, and woe be to that country over which it can be exercised. The names of Whig and Tory would then be sunk in the general term of rebel, and the oppression, whatever it might be, would, with very few instances of exception, light equally on all.

Britain did not go to war with America for the sake of dominion, because she was then in possession; neither was it for the extension of trade and commerce, because she had monopolized the whole, and the country had yielded to it; neither was it to extinguish what she might call rebellion, because before she began no resistance existed. It could then be from no other motive than avarice, or a design of establis.h.i.+ng, in the first instance, the same taxes in America as are paid in England (which, as I shall presently show, are above eleven times heavier than the taxes we now pay for the present year, 1780) or, in the second instance, to confiscate the whole property of America, in case of resistance and conquest of the latter, of which she had then no doubt.

I shall now proceed to show what the taxes in England are, and what the yearly expense of the present war is to her--what the taxes of this country amount to, and what the annual expense of defending it effectually will be to us; and shall endeavor concisely to point out the cause of our difficulties, and the advantages on one side, and the consequences on the other, in case we do, or do not, put ourselves in an effectual state of defence. I mean to be open, candid, and sincere.

I see a universal wish to expel the enemy from the country, a murmuring because the war is not carried on with more vigor, and my intention is to show, as shortly as possible, both the reason and the remedy.

The number of souls in England (exclusive of Scotland and Ireland) is seven millions,* and the number of souls in America is three millions.

* This is taking the highest number that the people of England have been, or can be rated at.

The amount of taxes in England (exclusive of Scotland and Ireland) was, before the present war commenced, eleven millions six hundred and forty-two thousand six hundred and fifty-three pounds sterling; which, on an average, is no less a sum than one pound thirteen s.h.i.+llings and three-pence sterling per head per annum, men, women, and children; besides county taxes, taxes for the support of the poor, and a tenth of all the produce of the earth for the support of the bishops and clergy.*

Nearly five millions of this sum went annually to pay the interest of the national debt, contracted by former wars, and the remaining sum of six millions six hundred and forty-two thousand six hundred pounds was applied to defray the yearly expense of government, the peace establishment of the army and navy, placemen, pensioners, etc.; consequently the whole of the enormous taxes being thus appropriated, she had nothing to spare out of them towards defraying the expenses of the present war or any other. Yet had she not been in debt at the beginning of the war, as we were not, and, like us, had only a land and not a naval war to carry on, her then revenue of eleven millions and a half pounds sterling would have defrayed all her annual expenses of war and government within each year. * The following is taken from Dr.

Price's state of the taxes of England.

An account of the money drawn from the public by taxes, annually, being the medium of three years before the year 1776.

Amount of customs in England 2,528,275 L.

Amount of the excise in England 4,649,892 Land tax at 3s. 1,300,000 Land tax at 1s. in the pound 450,000 Salt duties 218,739 Duties on stamps, cards, dice, advertis.e.m.e.nts, bonds, leases, indentures, newspapers, almanacks, etc. 280,788 Duties on houses and windows 385,369 Post office, seizures, wine licences, hackney coaches, etc. 250,000 Annual profits from lotteries 150,000 Expense of collecting the excise in England 297,887 Expense of collecting the customs in England 468,703 Interest of loans on the land tax at 4s. expenses of collection, militia, etc. 250,000 Perquisites, etc. to custom-house officers, &c.

supposed 250,000 Expense of collecting the salt duties in England 10 1/2 per cent. 27,000 Bounties on fish exported 18,000 Expense of collecting the duties on stamps, cards, advertis.e.m.e.nts, etc. at 5 and 1/4 per cent. 18,000

Total 11,642,653 L.

But this not being the case with her, she is obliged to borrow about ten millions pounds sterling, yearly, to prosecute the war that she is now engaged in, (this year she borrowed twelve) and lay on new taxes to discharge the interest; allowing that the present war has cost her only fifty millions sterling, the interest thereon, at five per cent., will be two millions and an half; therefore the amount of her taxes now must be fourteen millions, which on an average is no less than forty s.h.i.+llings sterling, per head, men, women and children, throughout the nation. Now as this expense of fifty millions was borrowed on the hopes of conquering America, and as it was avarice which first induced her to commence the war, how truly wretched and deplorable would the condition of this country be, were she, by her own remissness, to suffer an enemy of such a disposition, and so circ.u.mstanced, to reduce her to subjection.

I now proceed to the revenues of America.

I have already stated the number of souls in America to be three millions, and by a calculation that I have made, which I have every reason to believe is sufficiently correct, the whole expense of the war, and the support of the several governments, may be defrayed for two million pounds sterling annually; which, on an average, is thirteen s.h.i.+llings and four pence per head, men, women, and children, and the peace establishment at the end of the war will be but three quarters of a million, or five s.h.i.+llings sterling per head. Now, throwing out of the question everything of honor, principle, happiness, freedom, and reputation in the world, and taking it up on the simple ground of interest, I put the following case:

Suppose Britain was to conquer America, and, as a conqueror, was to lay her under no other conditions than to pay the same proportion towards her annual revenue which the people of England pay: our share, in that case, would be six million pounds sterling yearly. Can it then be a question, whether it is best to raise two millions to defend the country, and govern it ourselves, and only three quarters of a million afterwards, or pay six millions to have it conquered, and let the enemy govern it?

Can it be supposed that conquerors would choose to put themselves in a worse condition than what they granted to the conquered? In England, the tax on rum is five s.h.i.+llings and one penny sterling per gallon, which is one silver dollar and fourteen coppers. Now would it not be laughable to imagine, that after the expense they have been at, they would let either Whig or Tory drink it cheaper than themselves? Coffee, which is so inconsiderable an article of consumption and support here, is there loaded with a duty which makes the price between five and six s.h.i.+llings per pound, and a penalty of fifty pounds sterling on any person detected in roasting it in his own house. There is scarcely a necessary of life that you can eat, drink, wear, or enjoy, that is not there loaded with a tax; even the light from heaven is only permitted to s.h.i.+ne into their dwellings by paying eighteen pence sterling per window annually; and the humblest drink of life, small beer, cannot there be purchased without a tax of nearly two coppers per gallon, besides a heavy tax upon the malt, and another on the hops before it is brewed, exclusive of a land-tax on the earth which produces them. In short, the condition of that country, in point of taxation, is so oppressive, the number of her poor so great, and the extravagance and rapaciousness of the court so enormous, that, were they to effect a conquest of America, it is then only that the distresses of America would begin. Neither would it signify anything to a man whether he be Whig or Tory. The people of England, and the ministry of that country, know us by no such distinctions. What they want is clear, solid revenue, and the modes which they would take to procure it, would operate alike on all. Their manner of reasoning would be short, because they would naturally infer, that if we were able to carry on a war of five or six years against them, we were able to pay the same taxes which they do.

I have already stated that the expense of conducting the present war, and the government of the several states, may be done for two millions sterling, and the establishment in the time of peace, for three quarters of a million.*

* I have made the calculations in sterling, because it is a rate generally known in all the states, and because, likewise, it admits of an easy comparison between our expenses to support the war, and those of the enemy. Four silver dollars and a half is one pound sterling, and three pence over.

As to navy matters, they flourish so well, and are so well attended to by individuals, that I think it consistent on every principle of real use and economy, to turn the navy into hard money (keeping only three or four packets) and apply it to the service of the army. We shall not have a s.h.i.+p the less; the use of them, and the benefit from them, will be greatly increased, and their expense saved. We are now allied with a formidable naval power, from whom we derive the a.s.sistance of a navy.

And the line in which we can prosecute the war, so as to reduce the common enemy and benefit the alliance most effectually, will be by attending closely to the land service.

I estimate the charge of keeping up and maintaining an army, officering them, and all expenses included, sufficient for the defence of the country, to be equal to the expense of forty thousand men at thirty pounds sterling per head, which is one million two hundred thousand pounds.

I likewise allow four hundred thousand pounds for continental expenses at home and abroad.

And four hundred thousand pounds for the support of the several state governments--the amount will then be:

For the army 1,200,000 L.

Continental expenses at home and abroad 400,000 Government of the several states 400,000

Total 2,000,000 L.

I take the proportion of this state, Pennsylvania, to be an eighth part of the thirteen United States; the quota then for us to raise will be two hundred and fifty thousand pounds sterling; two hundred thousand of which will be our share for the support and pay of the army, and continental expenses at home and abroad, and fifty thousand pounds for the support of the state government.

In order to gain an idea of the proportion in which the raising such a sum will fall, I make the following calculation:

Pennsylvania contains three hundred and seventy-five thousand inhabitants, men, women and children; which is likewise an eighth of the number of inhabitants of the whole United States: therefore, two hundred and fifty thousand pounds sterling to be raised among three hundred and seventy-five thousand persons, is, on an average, thirteen s.h.i.+llings and four pence per head, per annum, or something more than one s.h.i.+lling sterling per month. And our proportion of three quarters of a million for the government of the country, in time of peace, will be ninety-three thousand seven hundred and fifty pounds sterling; fifty thousand of which will be for the government expenses of the state, and forty-three thousand seven hundred and fifty pounds for continental expenses at home and abroad.

The peace establishment then will, on an average, be five s.h.i.+llings sterling per head. Whereas, was England now to stop, and the war cease, her peace establishment would continue the same as it is now, viz. forty s.h.i.+llings per head; therefore was our taxes necessary for carrying on the war, as much per head as hers now is, and the difference to be only whether we should, at the end of the war, pay at the rate of five s.h.i.+llings per head, or forty s.h.i.+llings per head, the case needs no thinking of. But as we can securely defend and keep the country for one third less than what our burden would be if it was conquered, and support the governments afterwards for one eighth of what Britain would levy on us, and could I find a miser whose heart never felt the emotion of a spark of principle, even that man, uninfluenced by every love but the love of money, and capable of no attachment but to his interest, would and must, from the frugality which governs him, contribute to the defence of the country, or he ceases to be a miser and becomes an idiot.

But when we take in with it every thing that can ornament mankind; when the line of our interest becomes the line of our happiness; when all that can cheer and animate the heart, when a sense of honor, fame, character, at home and abroad, are interwoven not only with the security but the increase of property, there exists not a man in America, unless he be an hired emissary, who does not see that his good is connected with keeping up a sufficient defence.

I do not imagine that an instance can be produced in the world, of a country putting herself to such an amazing charge to conquer and enslave another, as Britain has done. The sum is too great for her to think of with any tolerable degree of temper; and when we consider the burden she sustains, as well as the disposition she has shown, it would be the height of folly in us to suppose that she would not reimburse herself by the most rapid means, had she America once more within her power. With such an oppression of expense, what would an empty conquest be to her!

What relief under such circ.u.mstances could she derive from a victory without a prize? It was money, it was revenue she first went to war for, and nothing but that would satisfy her. It is not the nature of avarice to be satisfied with any thing else. Every pa.s.sion that acts upon mankind has a peculiar mode of operation. Many of them are temporary and fluctuating; they admit of cessation and variety. But avarice is a fixed, uniform pa.s.sion. It neither abates of its vigor nor changes its object; and the reason why it does not, is founded in the nature of things, for wealth has not a rival where avarice is a ruling pa.s.sion.

One beauty may excel another, and extinguish from the mind of man the pictured remembrance of a former one: but wealth is the phoenix of avarice, and therefore it cannot seek a new object, because there is not another in the world.

I now pa.s.s on to show the value of the present taxes, and compare them with the annual expense; but this I shall preface with a few explanatory remarks.

There are two distinct things which make the payment of taxes difficult; the one is the large and real value of the sum to be paid, and the other is the scarcity of the thing in which the payment is to be made; and although these appear to be one and the same, they are in several instances riot only different, but the difficulty springs from different causes.

Suppose a tax to be laid equal to one half of what a man's yearly income is, such a tax could not be paid, because the property could not be spared; and on the other hand, suppose a very trifling tax was laid, to be collected in pearls, such a tax likewise could not be paid, because they could not be had. Now any person may see that these are distinct cases, and the latter of them is a representation of our own.

That the difficulty cannot proceed from the former, that is, from the real value or weight of the tax, is evident at the first view to any person who will consider it.

The amount of the quota of taxes for this State for the year, 1780, (and so in proportion for every other State,) is twenty millions of dollars, which at seventy for one, is but sixty-four thousand two hundred and eighty pounds three s.h.i.+llings sterling, and on an average, is no more than three s.h.i.+llings and five pence sterling per head, per annum, per man, woman and child, or threepence two-fifths per head per month. Now here is a clear, positive fact, that cannot be contradicted, and which proves that the difficulty cannot be in the weight of the tax, for in itself it is a trifle, and far from being adequate to our quota of the expense of the war. The quit-rents of one penny sterling per acre on only one half of the state, come to upwards of fifty thousand pounds, which is almost as much as all the taxes of the present year, and as those quit-rents made no part of the taxes then paid, and are now discontinued, the quant.i.ty of money drawn for public-service this year, exclusive of the militia fines, which I shall take notice of in the process of this work, is less than what was paid and payable in any year preceding the revolution, and since the last war; what I mean is, that the quit-rents and taxes taken together came to a larger sum then, than the present taxes without the quit-rents do now.

My intention by these arguments and calculations is to place the difficulty to the right cause, and show that it does not proceed from the weight or worth of the tax, but from the scarcity of the medium in which it is paid; and to ill.u.s.trate this point still further, I shall now show, that if the tax of twenty millions of dollars was of four times the real value it now is, or nearly so, which would be about two hundred and fifty thousand pounds sterling, and would be our full quota, this sum would have been raised with more ease, and have been less felt, than the present sum of only sixty-four thousand two hundred and eighty pounds.

The convenience or inconvenience of paying a tax in money arises from the quant.i.ty of money that can be spared out of trade.

When the emissions stopped, the continent was left in possession of two hundred millions of dollars, perhaps as equally dispersed as it was possible for trade to do it. And as no more was to be issued, the rise or fall of prices could neither increase nor diminish the quant.i.ty. It therefore remained the same through all the fluctuations of trade and exchange.

Now had the exchange stood at twenty for one, which was the rate Congress calculated upon when they arranged the quota of the several states, the latter end of last year, trade would have been carried on for nearly four times less money than it is now, and consequently the twenty millions would have been spared with much greater ease, and when collected would have been of almost four times the value that they now are. And on the other hand, was the depreciation to be ninety or one hundred for one, the quant.i.ty required for trade would be more than at sixty or seventy for one, and though the value of them would be less, the difficulty of sparing the money out of trade would be greater. And on these facts and arguments I rest the matter, to prove that it is not the want of property, but the scarcity of the medium by which the proportion of property for taxation is to be measured out, that makes the embarra.s.sment which we lie under. There is not money enough, and, what is equally as true, the people will not let there be money enough.

While I am on the subject of the currency, I shall offer one remark which will appear true to everybody, and can be accounted for by n.o.body, which is, that the better the times were, the worse the money grew; and the worse the times were, the better the money stood. It never depreciated by any advantage obtained by the enemy. The troubles of 1776, and the loss of Philadelphia in 1777, made no sensible impression on it, and every one knows that the surrender of Charleston did not produce the least alteration in the rate of exchange, which, for long before, and for more than three months after, stood at sixty for one. It seems as if the certainty of its being our own, made us careless of its value, and that the most distant thoughts of losing it made us hug it the closer, like something we were loth to part with; or that we depreciate it for our pastime, which, when called to seriousness by the enemy, we leave off to renew again at our leisure. In short, our good luck seems to break us, and our bad makes us whole.