by Edmund Burke
Far from any increase of revenue in their hands, I find, by a report of M. Vernier, from the Committee of Finances, of the second of August last, that the amount of the national revenue, as compared with its produce before the Revolution, was diminished by the sum of two hundred millions, or eight millions sterling, of the annual income, — considerably more than one third of the whole.
If this be the result of great ability, never surely was ability displayed in a more distinguished manner or with so powerful an effect. No common folly, no vulgar incapacity, no ordinary official negligence, even no official crime, no corruption, no peculation, hardly any direct hostility, which we have seen in the modern world, could in so short a time have made so complete an overthrow of the finances, and, with them, of the strength of a great kingdom. — Cedo quî vestram rempublicam tantam amisistis tam cito?
The sophisters and declaimers, as soon as the Assembly met, began with decrying the ancient constitution of the revenue in many of its most essential branches, such as the public monopoly of salt. They charged it, as truly as unwisely, with being ill-contrived, oppressive, and partial. This representation they were not satisfied to make use of in speeches preliminary to some plan of reform; they declared it in a solemn resolution or public sentence, as it were judicially passed upon it; and this they dispersed throughout the nation. At the time they passed the decree, with the same gravity they ordered the same absurd, oppressive, and partial tax to be paid, until they could find a revenue to replace it. The consequence was inevitable. The provinces which had been always exempted from this salt monopoly, some of whom were charged with other contributions, perhaps equivalent, were totally disinclined to bear any part of the burden, which by an equal distribution was to redeem the others. As to the Assembly, occupied as it was with the declaration and violation of the rights of men, and with their arrangements for general confusion, it had neither leisure nor capacity to contrive, nor authority to enforce, any plan of any kind relative to the replacing the tax, or equalizing it, or compensating the provinces, or for conducting their minds to any scheme of accommodation with the other districts which were to be relieved. The people of the salt provinces, impatient under taxes damned by the authority which had directed their payment, very soon found their patience exhausted. They thought themselves as skilful in demolishing as the Assembly could be. They relieved themselves by throwing off the whole burden. Animated by this example, each district, or part of a district, judging of its own grievance by its own feeling, and of its remedy by its own opinion, did as it pleased with other taxes.
We are next to see how they have conducted themselves in contriving equal impositions, proportioned to the means of the citizens, and the least likely to lean heavy on the active capital employed in the generation of that private wealth from whence the public fortune must be derived. By suffering the several districts, and several of the individuals in each district, to judge of what part of the old revenue they might withhold, instead of better principles of equality, a new inequality was introduced of the most oppressive kind. Payments were regulated by dispositions. The parts of the kingdom which were the most submissive, the most orderly, or the most affectionate to the commonwealth, bore the whole burden of the state. Nothing turns out to be so oppressive and unjust as a feeble government. To fill up all the deficiencies in the old impositions, and the new deficiencies of every kind which were to be expected, what remained to a state without authority? The National Assembly called for a voluntary benevolence, — for a fourth part of the income of all the citizens, to be estimated on the honor of those who were to pay. They obtained something more than could be rationally calculated, but what was far indeed from answerable to their real necessities, and much less to their fond expectations. Rational people could have hoped for little from this their tax in the disguise of a benevolence, — tax weak, ineffective, and unequal, — a tax by which luxury, avarice, and selfishness were screened, and the load thrown upon productive capital, upon integrity, generosity, and public spirit, — a tax of regulation upon virtue. At length the mask is thrown off, and they are now trying means (with little success) of exacting their benevolence by force.
This benevolence, the rickety offspring of weakness, was to be supported by another resource, the twin brother of the same prolific imbecility. The patriotic donations were to make good the failure of the patriotic contribution. John Doe was to become security for Richard Roe. By this scheme they took things of much price from the giver, comparatively of small value to the receiver; they ruined several trades; they pillaged the crown of its ornaments, the churches of their plate, and the people of their personal decorations. The invention of those juvenile pretenders to liberty was in reality nothing more than a servile imitation of one of the poorest resources of doting despotism. They took an old, huge, full-bottomed periwig out of the wardrobe of the antiquated frippery of Louis the Fourteenth, to cover the premature baldness of the National Assembly. They produced this old-fashioned formal folly, though it had been so abundantly exposed in the Memoirs of the Duke de Saint-Simon, — if to reasonable men it had wanted any arguments to display its mischief and insufficiency. A device of the same kind was tried in my memory by Louis the Fifteenth, but it answered at no time. However, the necessities of ruinous wars were some excuse for desperate projects. The deliberations of calamity are rarely wise. But here was a season for disposition and providence. It was in a time of profound peace, then enjoyed for five years, and promising a much longer continuance, that they had recourse to this desperate trifling. They were sure to lose more reputation by sporting, in their serious situation, with these toys and playthings of finance, which have filled half their journals, than could possibly be compensated by the poor temporary supply which they afforded. It seemed as if those who adopted such projects were wholly ignorant of their circumstances, or wholly unequal to their necessities. Whatever virtue may be in these devices, it is obvious that neither the patriotic gifts nor the patriotic contribution can ever be resorted to again. The resources of public folly are soon exhausted. The whole, indeed, of their scheme of revenue is to make, by any artifice, an appearance of a full reservoir for the hour, whilst at the same time they cut off the springs and living fountains of perennial supply. The account not long since furnished by M. Necker was meant, without question, to be favorable. He gives a flattering view of the means of getting through the year; but he expresses, as it is natural he should, some apprehension for that which was to succeed. On this last prognostic, instead of entering into the grounds of this apprehension, in order, by a proper foresight, to prevent the prognosticated evil, M. Necker receives a sort of friendly reprimand from the President of the Assembly.
As to their other schemes of taxation, it is impossible to say anything of them with certainty, because they have not yet had their operation; but nobody is so sanguine as to imagine they will fill up any perceptible part of the wide gaping breach which their incapacity has made in their revenues. At present the state of their treasury sinks every day more and more in cash, and swells more and more in fictitious representation. When so little within or without is now found but paper, the representative not of opulence, but of want, the creature not of credit, but of power, they imagine that our flourishing state in England is owing to that bank-paper, and not the bank-paper to the flourishing condition of our commerce, to the solidity of our credit, and to the total exclusion of all idea of power from any part of the transaction. They forget that in England not one shilling of paper money of any description is received but of choice, — that the whole has had its origin in cash actually deposited, — and that it is convertible at pleasure, in an instant, and without the smallest loss, into cash again. Our paper is of value in commerce, because in law it is of none. It is powerful on ’Change, because in Westminster Hall it is impotent. In payment of a debt of twenty shillings a creditor may refuse all the paper of the Bank of England. Nor is there amongst us a single public security, of any quality or nature whatsoever, th
at is enforced by authority. In fact, it might be easily shown that our paper wealth, instead of lessening the real coin, has a tendency to increase it, — instead of being a substitute for money, it only facilitates its entry, its exit, and its circulation, — that it is the symbol of prosperity, and not the badge of distress. Never was a scarcity of cash and an exuberance of paper a subject of complaint in this nation.
Well! but a lessening of prodigal expenses, and the economy which has been introduced by the virtuous and sapient Assembly, make amends for the losses sustained in the receipt of revenue. In this at least they have fulfilled the duty of a financier. — Have those who say so looked at the expenses of the National Assembly itself? of the municipalities? of the city of Paris? of the increased pay of the two armies? of the new police? of the new judicatures? Have they even carefully compared the present pension-list with the former? These politicians have been cruel, not economical. Comparing the expenses of the former prodigal government and its relation to the then revenues with the expenses of this new system as opposed to the state of its new treasury, I believe the present will be found beyond all comparison more chargeable.
It remains only to consider the proofs of financial ability furnished by the present French managers when they are to raise supplies on credit. Here I am a little at a stand; for credit, properly speaking, they have none. The credit of the ancient government was not, indeed, the best; but they could always, on some terms, command money, not only at home, but from most of the countries of Europe where a surplus capital was accumulated; and the credit of that government was improving daily. The establishment of a system of liberty would of course be supposed to give it new strength: and so it would actually have done, if a system of liberty had been established. What offers has their government of pretended liberty had from Holland, from Hamburg, from Switzerland, from Genoa, from England, for a dealing in their paper? Why should these nations of commerce and economy enter into any pecuniary dealings with a people who attempt to reverse the very nature of things, — amongst whom they see the debtor prescribing at the point of the bayonet the medium of his solvency to the creditor, discharging one of his engagements with another, turning his very penury into his resource, and paying his interest with his rags?
Their fanatical confidence in the omnipotence of Church plunder has induced these philosophers to overlook all care of the public estate, just as the dream of the philosopher’s stone induces dupes, under the more plausible delusion of the hermetic art, to neglect all rational means of improving their fortunes. With these philosophic financiers, this universal medicine made of Church mummy is to cure all the evils of the state. These gentlemen perhaps do not believe a great deal in the miracles of piety; but it cannot be questioned that they have an undoubting faith in the prodigies of sacrilege. Is there a debt which presses them? Issue assignats. Are compensations to be made or a maintenance decreed to those whom they have robbed of their freehold in their office or expelled from their profession? Assignats. Is a fleet to be fitted out? Assignats. If sixteen millions sterling of these assignats forced on the people leave the wants of the state as urgent as ever, Issue, says one, thirty millions sterling of assignats, — says another, Issue fourscore millions more of assignats. The only difference among their financial factions is on the greater or the lesser quantity of assignats to be imposed on the public sufferance. They are all professors of assignats. Even those whose natural good sense and knowledge of commerce, not obliterated by philosophy, furnish decisive arguments against this delusion, conclude their arguments by proposing the emission of assignats. I suppose they must talk of assignats, as no other language would be understood. All experience of their inefficacy does not in the least discourage them. Are the old assignats depreciated at market? What is the remedy? Issue new assignats. — Mais si maladia opiniatria non vult se garire, quid illi facere? Assignare; postea assignare; ensuita assignare. The word is a trifle altered. The Latin of your present doctors may be better than that of your old comedy; their wisdom and the variety of their resources are the same. They have not more notes in their song than the cuckoo; though, far from the softness of that harbinger of summer and plenty, their voice is as harsh and as ominous as that of the raven.
Who but the most desperate adventurers in philosophy and finance could at all have thought of destroying the settled revenue of the state, the sole security for the public credit, in the hope of rebuilding it with the materials of confiscated property? If, however, an excessive zeal for the state should have led a pious and venerable prelate (by anticipation a father of the Church) to pillage his own order, and, for the good of the Church and people, to take upon himself the place of grand financier of confiscation and comptroller-general of sacrilege, he and his coadjutors were, in my opinion, bound to show, by their subsequent conduct, that they knew something of the office they assumed. When they had resolved to appropriate to the fisc a certain portion of the landed property of their conquered country, it was their business to render their bank a real fund of credit, — as far as such a bank was capable of becoming so.
To establish a current circulating credit upon any land-bank, under any circumstances whatsoever, has hitherto proved difficult at the very least. The attempt has commonly ended in bankruptcy. But when the Assembly were led, through a contempt of moral, to a defiance of economical principles, it might at least have been expected that nothing would be omitted on their part to lessen this difficulty, to prevent any aggravation of this bankruptcy. It might be expected, that, to render your land-bank tolerable, every means would be adopted that could display openness and candor in the statement of the security, everything which could aid the recovery of the demand. To take things in their most favorable point of view, your condition was that of a man of a large landed estate which he wished to dispose of for the discharge of a debt and the supply of certain services. Not being able instantly to sell, you wished to mortgage. What would a man of fair intentions and a commonly clear understanding do in such circumstances? Ought he not first to ascertain the gross value of the estate, the charges of its management and disposition, the incumbrances perpetual and temporary of all kinds that affect it, — then, striking a net surplus, to calculate the just value of the security? When that surplus (the only security to the creditor) had been clearly ascertained, and properly vested in the hands of trustees, then he would indicate the parcels to be sold, and the time and conditions of sale; after this he would admit the public creditor, if he chose it, to subscribe his stock into this new fund, — or he might receive proposals for an assignat from those who would advance money to purchase this species of security. This would be to proceed like men of business, methodically and rationally, and on the only principles of public and private credit that have an existence. The dealer would then know exactly what he purchased; and the only doubt which could hang upon his mind would be the dread of the resumption of the spoil, which one day might be made (perhaps with an addition of punishment) from the sacrilegious gripe of those execrable wretches who could become purchasers at the auction of their innocent fellow-citizens.
An open, and exact statement of the clear value of the property, and of the time, the circumstances, and the place of sale, were all necessary, to efface as much as possible the stigma that has hitherto been branded on every kind of land-bank. It became necessary on another principle, — that is, on account of a pledge of faith previously given on that subject, that their future fidelity in a slippery concern might be established by their adherence to their first engagement. When they had finally determined on a state resource from Church booty, they came, on the fourteenth of April, 1790, to a solemn resolution on the subject, and pledged themselves to their country, “that, in the statement of the public charges for each year, there should be brought to account a sum sufficient for defraying the expenses of the R.C.A. religion, the support of the ministers at the altars, the relief of the poor, the pensions to the ecclesiastics, secular as well as regular, of the one and of the other
sex, in order that the estates and goods which are at the disposal of the nation may be disengaged of all charges, and employed by the representatives, or the legislative body, to the great and most pressing exigencies of the state.” They further engaged, on the same day, that the sum necessary for the year 1791 should be forthwith determined.
In this resolution they admit it their duty to show distinctly the expense of the above objects, which, by other resolutions, they had before engaged should be first in the order of provision. They admit that they ought to show the estate clear and disengaged of all charges, and that they should show it immediately. Have they done this immediately, or at any time? Have they ever furnished a rent-roll of the immovable estate, or given in an inventory of the movable effects, which they confiscate to their assignats? In what manner they can fulfil their engagements of holding out to public service “an estate disengaged of all charges,” without authenticating the value of the estate or the quantum of the charges, I leave it to their English admirers to explain. Instantly upon this assurance, and previously to any one step towards making it good, they issue, on the credit of so handsome a declaration, sixteen millions sterling of their paper. This was manly. Who, after this masterly stroke, can doubt of their abilities in finance? — But then, before any other emission of these financial indulgences, they took care at least to make good their original promise. — If such estimate, either of the value of the estate or the amount of the incumbrances, has been made, it has escaped me. I never heard of it.
At length they have spoken out, and they have made a full discovery of their abominable fraud in holding out the Church lands as a security for any debts or any service whatsoever. They rob only to enable them to cheat; but in a very short time they defeat the ends both of the robbery and the fraud, by making out accounts for other purposes, which blow up their whole apparatus of force and of deception. I am obliged to M. de Calonne for his reference to the document which proves this extraordinary fact: it had by some means escaped me. Indeed, it was not necessary to make out my assertion as to the breach of faith on the declaration of the fourteenth of April, 1790. By a report of their committee it now appears that the charge of keeping up the reduced ecclesiastical establishments, and other expenses attendant on religion, and maintaining the religious of both sexes, retained or pensioned, and the other concomitant expenses of the same nature, which they have brought upon themselves by this convulsion in property, exceeds the income of the estates acquired by it in the enormous sum of two millions sterling annually, — besides a debt of seven millions and upwards. These are the calculating powers of imposture! This is the finance of philosophy! This is the result of all the delusions held out to engage a miserable people in rebellion, murder, and sacrilege, and to make them prompt and zealous instruments in the ruin of their country! Never did a state, in any case, enrich itself by the confiscations of the citizens. This new experiment has succeeded like all the rest. Every honest mind, every true lover of liberty and humanity, must rejoice to find that injustice is not always good policy, nor rapine the high-road to riches. I subjoin with pleasure, in a note, the able and spirited observations of M. de Calonne on this subject.