32. Davenant’s Ways and Means, Article of Monthly Assessments.

In like manner the King of France had a very accurate estimate made of all France, when he formed his edict for a general subvention, which had pretty much the fate of the ship-money. And though the parliament refused their consent to the great subvention, they agreed to establish the epitome of it in August 1759: which see in the note[33].

33. This free gift was imposed upon all cities, towns, buroughs, villages, and suburbs, in France. And those lying within the jurisdiction of every Intendant were joined in one sum, leaving the repartition of them to those magistrates, as the custom is.

For the generality of Amiens 153 300  
For the generality of Orleans 356 000  
For the generality of Paris 1 578 000  
For the generality of Chalons 200 900  
For the generality of Poitiers 265 200  
For the generality of Soissons 60 700  
For the generality of Tours 34 434  
For the generality of Rochelle 131 800  
For the generality of Bourges 105 600  
For the generality of Moulin 91 770  
For the generality of Riom 165 628  
For the generality of Lyons 397 454  
For the generality of Artois 150 000 Sterling.
Sum total 3 690 786 £164 034 18 8

The duties imposed by this arret are to be levied upon all classes of the people, nobility, commons, clergy, even nuns and monks; no exception is made except in favour of hospitals for their own consumption only.

This tax, small as it is, may be of infinite consequence in times to come. The great difficulty of raising taxes is in the beginning; and if the levying of this trifle in every city, town, village, and suburb, in France, be carefully conducted, with a view to subsequent augmentations, and if it be properly distributed upon every branch of consumption and revenue, nothing will be so easy to the King as, by his own private authority, to enforce a gradual augmentation of it, and perhaps in time to absorb in it, the whole, or at least the greatest part of the revenue of his kingdom.

Besides the two twentieths, and the free gift of the cities, several other taxes of less moment were either imposed, renewed, or continued for a longer term, and then sold for raising money for the service of the year, viz.

1mo, Five years of the free gift of the clergy of France, amounting to 15 millions, were paid down at once by that body.

2do, That of the clergy of Alsace, paid in the same way, for the same term, produced 3 millions.

3tio, A duty on firewood, &c. in the city of Paris, valued at 3 400 000 a year, sold for 7 years, for 10 millions.

4to, Another duty upon the consumption of eggs, butter, &c. valued at 2 400 000, sold for 15 years for above 30 millions.

5to, A like sum got from the farmers general, for allowing them to raise the price of their tobacco 10 per cent. for 10 years. The annual amount of this I do not know.

6to, And in the last place, the third twentieth penny, which produced 36 270 000 a year, was sold for the two years for which it was imposed, for 60 millions.

Thus, of all the impositions raised during the last war, the second twentieth, and an epitome of the subvention raised in all cities, towns, villages, and suburbs, in France, remain unalienated.

In order to throw all the light I possibly can upon the present state of that nation, I shall next briefly recapitulate the extent of the annual supplies raised for the service of the different years of the war, from 1756 to 1762 inclusive; in which I shall point out, as well as I can, how this third branch of revenue was appropriated.

It is in this manner only I can communicate to the reader what I can guess concerning the present state of that nation. Could we know, as with us, the amount of taxes, and outstanding debts at every period, that detail would be unnecessary.

The extraordinary grants of 1756, amounted to 121 millions, 5 377 777l. sterling.

In October 1755, the farms of almost all the taxes were renewed. Upon such occasions, it is usual for the farmers to advance sums in proportion to the extent of their farms, for security of the lease; for which advances the King, at that time, allowed them an interest out of their yearly farm-rent of 5 per cent. and the sums advanced were appropriated for the service of the year 1756. Here follow the sums advanced upon the several farms.

    Fr. money. Sterling ditto.
    livres. l. s. d.
1. Upon the general farms, after repaying what had been advanced upon the former lease, nett into the royal treasure   40 000 000 1 777 777 15 6½
2. Upon the farm of the posts of France   3 000 000 133 333 6 8
3. Upon the farm of the stamps upon leather   1 000 000 44 444 8 10½
4. Upon the farm of the paulette   1 000 000 44 444 8 10½
5. Upon the farm of duties on gun-powder and salt-petre   1 000 000 44 444 8 10½
6. The farm of the market of Poissi was sold for seven years, for   15 000 000 666 666 13 4
 
This sum was the price of the total alienation of the duties collected in that market for the whole time; which duties should be marked as a branch of revenue; but as the annual amount of them cannot be ascertained, it is here thrown in as an extraordinary means of supply arising from the sale of a tax.          
7. Besides those casual supplies from the new farms, there was levied this year, for the sale of five years revenue of the free gift of the clergy of France, to 1761 exclusive 15 000 000 666 666 13 4
8. And for that of Alsace 3 000 000 133 333 6 8
9. Raised by a lottery, for which the annual sum of 3 800 000 was set apart for 11 years 32 000 000 1 422 222 4 5¼
10. And for the sale of the duties upon firewood, &c. in Paris, for 7 years 10 000 000 444 444 8 10½
Total extraordinary supplies for 1756 } 121 000 000 5 377 777 15 5¾
 
The supplies for 1757, amounted to 136 millions, £6 044 444 sterl.        
1. Two lotteries, for which were appropriated, for the first, 3 800 000 during 12 years; and for the second, 4 000 000 during 11 years. These sums were annually to be drawn, and paid every year; for which was paid to the King, for the first, 36 millions; for the second, 40 millions; together   76 000 000 3 377 777 15 6½
2. The ordinary revenue was charged with 6 millions of life annuities, at 10 per cent. sold for   60 000 000 2 666 666 13 4
    136 000 000 6 044 444 8 10½
 
The supplies for 1758, amounted to 135 millions, £6 000 000 sterl.        
1. The first was a loan of 40 millions, upon a perpetual annuity of 5 per cent. proposed to be paid off by way of lottery, at the rate of 3 200 000 yearly — — 40 000 000 1 777 777 15 6½
2. The King obliged those who have hereditary offices proportionally to purchase additional salaries, to the extent of 1 million a year, at the rate of 20 years purchase, or forfeit what they had   20 000 000 888 888 17 9¼
3. The additional 10 per cent. upon the price of tobacco, was sold this year to the farmers, for   30 000 000 1 333 333 6 8
4. The ordinary revenue was charged with 3 600 000 livres, life-annuities, upon two lives, at 8 per cent.; sold for the sum of   45 000 000 2 000 000 — —
    135 000 000 5 999 999 19 11¾
 
The supplies for 1759, amounted to upwards of 194 millions, £8 652 923 sterl.        
1. The first supply for this year was the epitome of the general subvention, called an extraordinary free gift from all the cities, towns, burgs, villages, and suburbs in France   3 690 786 164 034 18 8
2. 3 600 000 livres of perpetual annuities, borrowed upon the general farms, at 5 per cent. until reimbursement, sold for   72 000 000 3 200 000 — —
These are called the contracts upon the farms; each one thousand livres capital.        
3. The free gift of the clergy, for five years from 1761 inclusive, sold at once for   16 000 000 711 111 2 2½
4. The second twentieth penny produced for this year   35 000 000 1 555 555 11 1¼
5. Sold to the magistrates and heads of colleges in some towns in Flanders, some branches of their own taxes, for   8 000 000 355 555 11 1¼
6. The ordinary revenue was charged with 3 millions of annuities, called tontines, sold for   60 000 000 2 666 666 13 4
    194 690 786 8 652 923 16 5
 
The supplies for 1760, amounted to above 251 millions, £ 11 186 430 sterling.          
1. The Paris-duties above mentioned sold for 15 years   30 283 900 1 345 951 2 2½
2. The 3d shilling in the pound sold for two years, for   72 340 000 3 215 111 2 2½
3. The 2d shilling produced this year   35 000 000 1 555 555 11 1¼
4. Raised by perpetual annuities, at 3 per cent. secured on the King’s ordinary revenue[34]   60 000 000 2 666 666 13 4
5. The free gift of the cities, &c.   3 690 787 164 034 19 6½
6. By a lottery at 5 per cent. where the discredited paper (the payment of which was stopt, when the sinking fund was shut up in 1759) was taken in payment for one half, was raised 50 000 000 2 222 222 4 5¼
7. Borrowed from the officers of the town-house of Paris, at 5 per cent.
secured on the ordinary revenue 380 000 16 888 17 9¼
    251 694 687 11 186 430 10 7¼
 
The supplies for 1761, exceeded 120 millions, £5 364 034 sterl.        
1. Charged upon the ordinary revenue, 200 000 livres a year upon lives and other annuities, at 10 per cent. in favour of the order of the Holy Ghost, sold for   2 000 000 88 888 17 9¼
2. Borrowed on the duties upon leather, at 3 per cent.   30 000 000 1 333 333 6 8
 
These were the annuities which were ordered to be reimbursed after the peace of 1763, at 20 years purchase; and which, I suppose, had been subscribed for, partly, in discredited paper.        
3. Charged on the ordinary revenue, 4 millions a year, for annuities at 8 per cent. upon two lives, sold for   50 000 000 2 222 222 4 5¼
    82 000 000 3 644 444 8 10½
4. Besides these sums, there was the amount of the 2d twentieth, and the small subvention, or free gift, which continued to be applied to the current service, as they had not been sold off; inde   38 690 787 1 719 590 10 8
Total   120 690 787 5 364 034 19 6½
 
The supplies for 1762, exceeded 159 millions, £7 076 923 sterl.          
1. The farms which had been lett in 1755, came to be again renewed this year; from which arose a sum for the security of them, of   83 200 000 3 697 777 15 6½
2. There was no borrowing this last year of the war. The second twentieth, which never had been sold; the third twentieth, which this year became free, as it was imposed a-new for two years more; and the little free gift by all the towns of France; made together an additional sum of   76 030 787 3 379 146 1 9¼
    159 230 787 7 076 923 17 4¾

34. When the bad consequences of shutting up the sinking fund were discovered, the King opened subscriptions, such as were the tontines of the last year, this of 60 millions, and one the next year of 30 millions; in which the discredited paper was received, in part payment of the sum. This I suppose is the reason why the supplies of 1759 and 1760 appear so high, and also why money appears to have been borrowed at so low a rate as 5 per cent. upon tontines, and 3 per cent. on article 4th of this year; because the interest of that part only which was paid in specie is stated; not the interest upon the discredited paper subscribed, which was paid out of the first twentieth.

Recapitulation of the expence of the seven years of the war.[35]

  Fr. money. Sterl. ditto.
  livres. l.
For 1756 121 000 000 5 377 778
For 1757 136 000 000 6 044 444
For 1758 135 000 000 6 000 000
For 1759 194 690 786 8 652 924
For 1760 251 694 687 11 186 431
For 1761 120 690 787 5 364 034
For 1762 159 230 787 7 076 924
Total 1 118 307 047 49 702 535

35. The Sterling money, in this recapitulation, is reduced to the nearest integer, neglecting fractions of a pound.

Having gathered together, from the best information I can, the amount of all the extraordinary supplies raised in France, for the service of the last war, let us suppose, that at the peace, no part of any capitals borrowed had been paid off, according to the plan laid down for that purpose at the time of contracting. Let us suppose, I say, that all the lottery funds and life-annuities, as well as those annuities which were intended to be paid off by way of lottery, stood at their full extent, without diminution, at the peace, and then calculate what sum of debt should have remained upon France in consequence of the war.

As for the sums raised, either upon renewing the farms of the revenue, the amount of new taxes imposed, or such branches of them as were sold at once for a sum of money, they remain no debt upon the King; and are therefore to be considered (as they really were) extraordinary resources drawn from the people, without any recourse to credit or borrowing.

    Fr. money. Sterling ditto.
    livres. l. s. d.
These sums collected from the above supplies, and laid together, amount to   520 926 948 23 152 308 16 —
Let us then state the whole of the supplies as above   1 118 307 047 49 702 535 — —
 
And from thence deduct the extraordinary resources drawn from the people, as above, to wit   520 926 947 23 152 308 16 —
 
There will remain a capital of borrowed money } 597 380 100 26 550 226 4 —
Of this the life-annuities (charged upon the ordinary revenue) form a capital of   217 000 000 9 644 444 8 10½
 
The lotteries form a capital of   108 000 000 4 800 000 — —
And the perpetual annuities, a capital of   272 380 100 12 105 781 15 6½
In all, as above   597 380 100 26 550 226 4 5

Let us next see the amount of annual payments for discharging either the capital or the interest.

    Fr. money. Sterling ditto.
    livres. l. s. d.
For the life-annuities until extinguished, paid out of the ordinary revenue   16 200 000 720 000 — —
 
To discharge the lottery fund, in 12 years at most   11 600 000 515 555 11 1¼
 
Suppose the perpetual annuities all at 5 per cent.; inde   13 619 000 605 288 17 9¼
Annual sum of interest   41 419 000 1 840 844 8 10½

Let me now draw up a state of the taxes raised for defraying the expences of this war. In that I shall only comprehend such articles as existed at the peace, unsold: as for the other, we may consider them only as expedients for raising money for the current service; but which, in time to come, may serve to augment the revenue.

Third general branch.
    Fr. money. Sterling ditto.
    livres. l. s. d.
 
1. The 2d twentieth, never alienated   35 000 000 1 555 555 11 1¼
 
2. The 3d twentieth, imposed for the years 1762 and 1763, not alienated   30 000 000 1 333 333 6 8
 
3. The free gift of the cities, towns, &c. never alienated   3 690 786 164 034 18 8
    68 690 787 3 052 923 16 5¼

Let me now proceed to the fourth general branch of taxes, or of money raised upon the people of France: 1mo, To the profit of the farmers: 2do, Towards defraying the expence of collecting the three foregoing branches of revenue, which amount to about 403 millions: And 3tio, To pay what is appropriated to certain purposes within the country, here to be specified.

Fourth general branch.
    Fr. money. Sterling ditto.
    livres. l. s. d.
1. First then, the net profits of all the farmers of the revenue are calculated to amount to about   17 240 000 766 222 4 5¼
2. The expence of levying all the revenue is calculated to amount to about 10 per cent. of the whole; inde   40 300 000 1 791 111 2 2½
3. There is a revenue appropriated for keeping up the water-works at all the royal palaces   1 200 000 53 333 6 8
And to the invalids, St. Cir, and the hotel militaire   7 300 000 324 444 8 10½
There are taxes imposed for clothing the militia, to the amount of   3 800 000 168 888 17 9¼
All the towns in France have particular branches of taxes appropriated to themselves, for pavement, buildings, &c. and for maintaining the police; which amounts to   15 000 000 666 666 13 4
And the duties levied in the courts of law for sentence money, emoluments to the judges (epices), and expence of registrations, the vast sum of   27 000 000 1 200 000 — —
    111 840 000 4 970 666 13 3½

Formerly, all the officers of the courts of justice had salaries paid out of the King’s revenue. These were insensibly diminished in every reign, and those court-fees were augmented in order to fill up the void; from which the greatest oppression ensues.

If to the sum in this last article we add 22 millions above stated as a charge upon the ordinary revenue for salaries to first presidents, &c. and other expences of the law, we shall find that the article of justice alone costs near 50 millions of livres, a year, to the public. The greatest part of this sum should be considered as the interest of money borrowed by the Kings of France, the capitals whereof are still outstanding; and if the capitals were paid off, a great augmentation of income would arise from it. But the bad footing upon which their credit stands, renders even this burden expedient on some occasions; because the King can oblige all those who have such hereditary offices, to lend money upon an augmentation of their salaries.

To conclude this enormous catalogue of taxes paid by the kingdom of France, we must not omit the last branch, which comprehends the heads following:

Fifth general branch.
    Fr. money. Sterling ditto.
    livres. l. s. d.
1. What is paid for bulls, dispensations, baptisms and burials, to the pope, bishops, and inferior clergy, very near   10 000 000 444 444 8 10½
2. For the support of hospitals, a sort of poors rates   11 500 000 511 111 2 2½
3. To branches of impositions, of various kinds, belonging to private people, peers of France, governors of provinces, and officers of all the royal jurisdictions within the kingdom   20 000 000 888 888 17 9¼
    41 500 000 1 844 444 8 10¼

General recapitulation of all the money raised in France by public authority, for whatever purpose employed.

    Fr. money. Sterling ditto.
    livres. l. s. d.
1. The King’s ordinary revenue as it stood at the peace 1762   282 300 000 12 546 666 13 4
 
2. The extraordinary revenue raised at the peace 1748   52 338 000 2 326 133 6 8
 
3. The extraordinary revenue raised on account of last war, and for the payment of debts then contracted, not sold at the peace   68 690 787 3 052 923 17 4
 
4. The expence of raising the taxes, and emoluments of the farmers, with other branches perpetually appropriated for defraying regular expences   111 840 000 4 970 666 13 4
 
5. Taxes paid to the church, poor, and private persons   41 500 000 1 844 444 8 10½
Sum total raised annually in France   556 668 787 24 740 834 19 6½
 
Charges, or appropriations of it.      
 
1. Charges upon the ordinary revenue per list above   236 050 000 10 491 111 2 2½
 
2. Ditto upon the second general branch per ditto   55 690 000 2 475 111 2 2½
 
3. Ditto upon the third general branch for lotteries and perpetual annuities constituted during the war: the life-annuities being already charged in article 1st   25 219 000 1 120 844 8 10½
 
4. Ditto upon the fourth general branch totally exhausted inde   111 840 000 4 970 666 13 4
 
5. Ditto upon the fifth general branch ditto   41 500 000 1 844 444 8 10
 
There remains (unappropriated) for all extraordinary expences of state, which compleats the sum total of what is raised in France   86 369 787 3 838 657 4 —
    556 668 787 24 740 834 19 6

In this light does the state of the French affairs appear, from the sketch I have been able to give of it.

Had the sum of 86 millions, remaining as unappropriated at the peace, been any way sufficient for paying off claims which have not appeared upon the state we have given, and for all extraordinary expences, the credit of France would not have been so low as it then was, and still continues to be.

The expence of a kingdom must constantly exceed the amount of all regular and permanent income.

At the end of a war what great sums of debts unprovided for are constantly found! Taxes also, when stretched as they were, and imposed in so great a proportion upon possessions, in respect of what was raised upon consumption, must always diminish in their produce; but the expence and charges never fall short. This is more especially the case in a country where paper credit is not established.

The constant complaints for want of money to carry on circulation in the time of war, is a proof of it. When peace returns, and money is kept at home, then all taxes are readily paid in France, and half the burden of them is not felt, although they be more productive than before.

As I said in setting out, I do not pretend that the account I have given of this dark affair, is in any degree so correct as to satisfy a French minister; but it is a rough sketch, which contains the general state of their affairs; and if it be worth any man’s while, who is better informed, he may correct it, and thereby bring on a farther inquiry into the true state of the question.

What interest a nation, which is not in an actual state of bankruptcy, can have in concealing its affairs, I cannot find out. How much more then is it not the interest of a mighty kingdom, which possesses such amazing resources, to expose its situation in a fair light to the world, to which it must, upon all occasions, have recourse for assistance in point of credit?

Of the many branches which compose this great national revenue of above 550 millions, there are several articles which must of necessity be cut off, so soon as the debts are brought into a regular form. The double poll-tax is most oppressive on the poorer sort, and therefore was imposed only for a time: the three twentieths, as they are levied, are no less so upon the higher classes of the people.

These four articles amount, however, to 116 millions. If we deduct this from the revenue, as we have stated the account of it, it will not only exhaust the balance of 86 millions, but it will create a deficiency, upon the whole, of 30 millions, which can only be compensated by discharging a corresponding part of the burden of debts, while those branches do subsist.

But then the same resources are open upon every new emergency; and as they have now begun to be collected, they will be more easily paid at another time.

Besides, what an acquisition will be made to the revenue by the extinction of 16 millions of life-annuities, and by the expiration of so many anticipations of taxes for terms of years!

On the other hand, it is not to be supposed that the King will continue to demand of the clergy, above 1 500 000 livres a year, or one shilling in the pound upon their benefices. That body is becoming daily more and more indebted, by the practice introduced of late, of making payment of their free gifts to the King, by borrowing the money, instead of paying every one’s proportion out of his benefice. This in time may oblige them to accept of pensions for their benefices, and to make over their revenue in tithes to the King: they will, at least, in one way or other, become entirely at his mercy, and at that of their own creditors.

Before I conclude, I must say a word concerning the method of levying the taxes in France.

The most general distribution I can make of this, is to reduce it under four principal heads.

The first comprehends the general receptes; to wit, the taille, or land-tax, the capitation, or poll-tax, and all the twentieths. These are administred by the intendants of the provinces, who both make the distribution of them upon the subjects, and who levy them by officers under their direction; and for the expence of levying, is superadded to the taxes, 10 per cent. upon the whole. When they are collected, they are paid in to the receivers general at Paris, who deliver them in, and account for them to the royal treasury.

The second comprehends all the taxes which are farmed. The farmers are vested with the King’s authority for raising the duties let to them, according to certain regulations; and as they are obliged to keep open books, the expence of management is known, and at every new lease a reasonable profit is allowed to them over and above.

The third branch comprehends all free gifts of determinate sums of money, imposed according to certain regulations prescribed to those bodies politic who pay them; into which may be comprehended all taxes upon the clergy; because they levy them themselves.

The fourth comprehends retentions which the King makes out of the salaries he pays. This needs no explanation.

What farther observations may be made on this head will find a place when we speak of taxes.

CHAP. VII.
Comparative View of the Revenue, Debts, and Credit of Great Britain and France.

In comparing the state of credit in the two nations, I must first observe, that it is not so essential to compare the extent of the revenue of both countries, as the resources they have for obtaining extraordinary supplies in case of need.

Whatever be the permanent revenue of a state, we may be very certain that the exigencies of it will be in proportion; and whenever any extraordinary expence is to be incurred, it must be provided for by extraordinary means.

In examining the state of Great Britain and France, we have found this observation verified. If the expences of the year do no more than absorb the revenue of it, and if the sinking funds appropriated for paying off incumbrances be properly applied, the state has no reason to complain.

This distribution evidently points out how necessary it is not to confound those branches of revenue which are appropriated to state expences, with those which ought to be set apart for the payment of debts and interest. This however I apprehend is too much neglected in both kingdoms.

If times of tranquillity be not made use of, to disengage those funds which necessity had opened, it cannot be denied, that future exigencies must then seek for a supply, from resources as yet undiscovered.

That nation, therefore, which has certain branches of revenue lying dormant in time of peace, has the advantage in point of resources.

In this respect the advantage hitherto has lain on the side of France; she has had her dixiemes, vingtiemes, and double poll-tax, which have never been imposed except in cases of necessity.

But on the other hand, Great Britain has a noble and opulent branch of permanent taxes, which composes her sinking fund. Were this employed in times of peace, as it ought to be, it would prove in time of war a more ready fund of credit than any France can boast of.

Those extraordinary resources of France cannot be mortgaged. They are supplies for the current service; but they are no fund of credit. Whereas the sinking fund of Great Britain is always ready in the mean time to supply urgent demands. While this subsists, there is no danger of being obliged to break faith with all the public creditors, upon a demand for a million and a half sterling, as was the case with France in 1759. The one resembles a credit in bank; the other the rents of a great estate. The sinking fund affords time to raise new supplies, in proportion to the debts contracted; and if these, when new, and raised in time of war, prove sufficient to answer the interest of the loan, they will probably do more as they continue to be levied, and upon the return of peace.

One very remarkable difference between the state of credit in the two nations is, that in Britain the object of attention is the rate of interest; in France it is the speedy repayment of the capital. The great care of a British minister is to support the price of the funds: the meaning of which is, to keep the interest of money low. Did not the price of the funds regulate the rate of money, the state would be nowise concerned in the price of them.

Now the credit of Great Britain is so firmly established, that she may command money at all times, providing she will give the interest required.

The case is totally different in France. Her credit is not well established; that terrible Missisippi-monument, of near a thousand millions, standing fixed upon the ordinary revenue to this day at 2½ per cent. first reduced from the most exorbitant interest, by successive acts of power, after the late King’s death, and afterwards from a moderate interest to 2½ per cent. in the year 1720, is reason sufficient to deter monied men from lending to France upon perpetual interest.

In borrowing upon life-annuities at 10 per cent. and upon lotteries at nearly the same rate, for 11 or 12 years, France obtains credit for large sums. She also borrows with tolerable success at 5 per cent. when there is a lottery-clause put in, which stipulates a large sum to be annually paid for extinguishing the capital. The reason is, she is more punctual to such engagements: they remain constantly under the eye of the public: the stock-holders consider their money as constantly coming in; and any interruption in the payment gives a general alarm. But when funds are settled at perpetual interest, people lose sight of the capital altogether. The contracts by which they are commonly constituted, are not so easily transferred as other funds: in a word, it is not the taste of the French nation to lend their money in that way, and far less the taste of strangers; and the reason is, that as matters have hitherto been conducted, it has by no means been their interest.

Before the commencement of the late war, no security in France was looked upon as better than the actions of the company of the Indies. This was a fund of perpetual interest. They brought in to purchasers little more than 4 per cent. and every body wished to have them. Every action bore a dividend of eighty livres a year; and the action itself sold from eighteen to nineteen hundred livres. The war had not lasted four years, when the dividends were reduced to one half, and the capital fell to about 700.

In short, all perpetual funds in France, whether upon government or company-security, are very precarious; and while this is the case, we may decide that the credit they are built on is precarious also.