In Spain, large tracts of fertile land are untouched by the plough, as owing to the mal-administration of affairs, and the vexatious imposts, there is little inducement to industry; and that country, so well situated for commerce, has few ships, and no sailors, and is obliged to import her goods in the vessels of other powers.

The numerous natural advantages possessed by France have been, in great measure, neutralised by the want of a free government, and the innumerable benefits from thence resulting. At present, scarcely any new private buildings are seen in, the provincial towns of that kingdom; and, perhaps, there are few indications of prosperity less equivocal than the erection of houses. In 1818, in a journey of 350 miles from Paris to Lyons, occupying seven days, the author met only eight public carriages, and six private conveyances; whereas, in one day's journey, between London and Dover, he met twenty-two four-horse coaches, and twenty private carriages with post horses.

Our own country is the most extraordinary example ever seen of the riches resulting from natural and acquired advantages united.

*Townsend's Spain.

A free government, good laws, security for property, an industrious people, an insular situation, a healthy climate, mines of coal and iron, are some amid the innumerable benefits we enjoy, which have raised Great Britain to her present eminence !

In addition to what were termed natural and acquired advantages, the third circumstance which has been alluded to, as necessary to the progress of any country in wealth and greatness, is the Abundance of Capital in Proportion to the Demand for it.

If two countries be equal in other respects, that which possesses the most capital will give the greatest sum of employment, and therefore support the greatest number of persons employed.

For capital is necessary to make use of the natural advantages she enjoys. Capital must work her mines, open her canals, build her ships, erect her manufactories, and drain her rich marshes.

The accumulation of capital will be more or less rapid in proportion as a greater or less number of inhabitants are employed in pro

ductive labour; or, rather, in proportion to the quantity of productive labour in the country.

*

But productive labourers will be numerous + and effective, according to the encouragement they receive according to the demand for the products of their industry; and this encouragement and demand will depend, in great measure, upon the direction of the expenditure of the rich.

The happiness of the poorer classes must rest immediately and chiefly on their own conduct, but this conduct will be influenced by the education they have received, by the customs they have been used to, by the example set before them. The rich, by the direction of their ex

* See Appendix No. I. On the Probability of productive Investments during Peace.

+ "Denina (with many less acute authors) seems to have thought, that the welfare of a kingdom only depended on its population; and has proposed (as elsewhere) laws to promote its increase. It appears now to be acknowledged, that population always presses hard upon the actual means of subsistence, and these depend greatly upon the causes alluded to. The Italian might have traced the decline and depopulation of his country to the tyranny under which it has so long suffered; and to the ignorance, indolence, and vice, which tyranny never fails to create and to continue."

Revoluzioni d'Italia, lib. xxiv. cap. 4.

penditure, can exercise a good or evil influence on those around them; they are not only the makers of the laws, but of the manners of the country. It is desirable that the working classes should be frugal, industrious, and contented *; endeavouring to provide in youth for the wants of their old age; provident against illness, or loss of employment, they should depend upon their own exertions for support. The rich, on the other hand, should be liberal, public spirited, independent, mindful of the importance of their example, not selfish, luxurious, or unemployed. That expenditure, then, which is likely to produce and exemplify these several effects is beneficial; whilst a mode of expenditure which forms and perpetuates contrary habits, is detrimental to the happiness of the community. +

* Contented, not like the poor Irish, with wretchedness and dirt, merely because their forefathers have been used to them; but contented with those comforts which are within reach of their industry, care, and forethought,and contented with nothing less.

+ Vide the excellent introduction to the third volume of "Reports of the Society for the Poor," p. 9.

11

CHAP. II.

ON DIFFERENT DIRECTIONS OF EXPENDITURE.

1. EXPENDITURE may be neither productive *, profitable +, nor beneficial. ‡

2. It may be productive and beneficial, but not profitable; as in useful public works, &c. 3. Productive and profitable, but not beneficial; as in very unhealthy mines and manufactories.

4. Productive, profitable, and beneficial; as in agriculture, and most of our great manufactures.

* By productive is meant, according to Dr. Smith's definition, "What produces or increases the value of material objects useful to man;" which definition, though liable to some objections, appears, for the reasons adduced by Mr. Malthus (Political Economy, p. 30.), the best to adhere to.

+ By profitable is intended "that which gives a pecuniary profit to the expender."

Beneficial expenditure augments the welfare and happiness of the people.