I began with the war that ended in 1697, which was the war in which the
funding system began. The expense of that war was twenty-one millions
and an half. In order to ascertain the expense of the next war, I add
to twenty-one millions and an half, the half thereof (ten millions and
three quarters) which makes thirty-two millions and a quarter for the
expense of that war. This thirty-two millions and a quarter, added to
the former debt of twenty-one millions and an half, carries the national
debt to fifty-three millions and three quarters. Smith, in his
chapter on Public Debts, says, that the national debt was at this time
fifty-three millions.
I proceed to ascertain the expense of the next war, that of 1739, by
adding, as in the former case, one half to the expense of the preceding
war. The expense of the preceding war was thirty-two millions and a
quarter; for the sake of even numbers, say, thirty-two millions; the
half of which (16) makes forty-eight millions for the expense of that
war.
I proceed to ascertain the expense of the war of 1756, by adding,
according to the ratio, one half to the expense of the preceding war.
The expense of the preceding was taken at 48 millions, the half of which
(24) makes 72 millions for the expense of that war. Smith, (chapter on
Public Debts,) says, the expense of the war of 1756, was 72 millions and
a quarter.
I proceed to ascertain the expense of the American war, of 1775, by
adding, as in the former cases, one half to the expense of the preceding
war. The expense of the preceding war was 72 millions, the half of which
(36) makes 108 millions for the expense of that war. In the last
edition of Smith, (chapter on Public Debts,) he says, the expense of the
American war was _more than an hundred millions_.
I come now to ascertain the expense of the present war, supposing it to
continue as long as former wars have done, and the funding system not
to break up before that period. The expense of the preceding war was 108
millions, the half of which (54) makes 162 millions for the expense of
the present war. It gives symptoms of going beyond this sum, supposing
the funding system not to break up; for the loans of the last year and
of the present year are twenty-two millions each, which exceeds the
ratio compared with the loans of the preceding war. It will not be from
the inability of procuring loans that the system will break up. On
the contrary, it is the facility with which loans can be procured that
hastens that event. The loans are altogether paper transactions; and
it is the excess of them that brings on, with accelerating speed, that
progressive depreciation of funded paper money that will dissolve the
funding system.
I proceed to ascertain the expense of future wars, and I do this merely
to show the impossibility of the continuance of the funding system, and
the certainty of its dissolution.
The expense of the next war after the present war, according to the
ratio that has ascertained the preceding cases, will be 243 millions.