National Debt. During our long and costly wars, much more was spent in each year than could be raised by taxes. Government, therefore, borrowed money of merchants and others, engaging to pay interest on what was borrowed till it should be repaid, which most of it has not been, and perhaps never will be. The lenders, therefore, received in exchange for their money annuities-that is, a right to receive so much a year out of the taxes raised by government; and the right to receive these annuities, which we call "Government Securities," or property in the Funds, may be sold by one person to another, or may be divided among several others, just like any other property. When a poor man has saved up a little money, he generally puts it into the funds (as it is called), or deposits it in a savings-bank, which does this for him; he is then one of the government creditors, and receives his share of the taxes. You see, therefore, that if the National Debt were abolished by law without payment, many even of the labouring classes would lose their all, and the nation would not be relieved of its burden, since it would only be robbing one set of our countrymen for the benefit of another set. We may be sorry that so much money was formerly spent on gunpowder, which was fired off, and on soldiers' coats and ships, which were worn out; but we can now do nothing which can recall this, any more than we can bring back last year's snow. The expense is over and past, and the taxes, raised to pay the interest of the money borrowed, are not so much money lost to the country, but only so much passed over from one person to another. We all contribute towards paying this interest in taxes; and all government creditors-that is, all who have money in the Funds, or in the savings-banks - receive a share of it as a just debt. Thus the taxes find their way back into many a poor man's cottage who never suspects it. I have said that a great part of the taxes are raised for paying the interest of the National Debt. The following calculation will make this clear to you; every twenty shillings paid in taxes is disposed of in about these proportions: Expense of the Army, Navy, &c. Civil List.-Sovereign, Judges, Ministers of State, and other public officers. Pensions and Sinecure Places, i. e., those that have no duties belonging to them. Interest of the National Debt s. d. 2 0 0 10 0 12 0 100 CHAPTER VIII. LABOUR AND CAPITAL. Master. Have you ever thought what employment you will choose, when you go out to get your living, Harry? Harry. I once thought it would be pleasant to work in the fields, so as to be able to observe all the beauties of Nature; but I see that there are many trades in which the workmen are much better off than labourers in the fields. I think I should like to be a carpenter. Master. If workmen in other trades are so much better off, why is it that there are any farmers. Why do not all men choose to be carpenters, bricklayers, or the like? Harry. They have not learnt the trade. I have been taught something of carpentering, and I know it takes a long time and a great deal of trouble to learn the trade thoroughly. Master. It requires practice to be expert in any employment; but it is easier to learn the work of a farmlabourer than of a carpenter, and a boy can make him self useful and earn wages sooner as a farm-boy than as a carpenter, though his wages would never rise so high as a carpenter's wages. It is well for us that the kind of labour of which most is wanted is most easy to practise. If the farm-labourer earns less money than the carpenter, he must remember that he has had less trouble to learn his trade, and has sooner begun to profit by it. What is it, then, that you must possess before you can attempt to be a carpenter? Harry. Skill. Master. Very well. Is anything else wanted before you can set up as a carpenter? Harry. I must find a place where I am likely to obtain employment. Master. Stop, stop! If I were to offer you a job tomorrow, could you execute it? Harry. No. I see I must have tools and materials. Master. If you have no money to buy these, what then? Harry. Well, I cannot start as a master-carpenter, so I must first become a journeyman; I need not have money for that, and I hope I may get good wages. Master. You see, then, that no one can enter upon any trade without some stock of money to furnish tools and materials. This is just as true in farming, however, as in other trades. But in farming the money required is greater than in such trades as a carpenter's or a bricklayer's. A farmer must buy horses and carts, and cattle and sheep, as well as ploughs and harrows, and seeds; and, besides, there is much work to be done, and many labourers to be paid before the farmer can receive a shilling. The money which is thus employed in any business is called Capital; and for a large business much capital is required. There would be no work for labourers who start without any money, unless some one had Capital to undertake a business. Harry. Yes. I heard my father say that Mr. Field will have laid out at least two thousand pounds before he has finished the mill which he has rebuilt; and besides the bricklayers and carpenters, and other workmen employed in building it, there will be a number of labourers regularly engaged in grinding the corn, and in carrying the flour to different places, who must, of course, all be paid. Master. A very large amount of good may be done to a neighbourhood with money well laid out; and I have no doubt that Mr. Field's mill will bring him in a good return for what he has spent upon it-that is, for his Capital. Then, if he makes more money by the work of his mill, he can enlarge it still further if he finds that a larger supply of flour is wanted; if not, he may establish a mill in another neighbourhood, or give the money to one of his sons, to set him up in this or in some other business. Thus, as it is true that the rich can do nothing without the poor, it is equally true that the poor would be much worse off without the rich. Some men look with envy upon persons better off than themselves; and there have been men foolish enough to fancy that it would be a good thing if all were equally rich. If you ever hear persons talking so foolishly, you may tell them that if the poor want plenty of employment, there must be some one who can undertake great works. No one can do this without Capital. A person with capital is a person who possesses money, and is what is called a rich man. CHAPTER IX. SAVINGS-BANKS. Master. Some persons who have begun with no money have acquired great wealth, but few are so fortunate or so clever as to accomplish this. You, Harry, are not thinking of becoming a very rich man, but are only looking to be one day a master-carpenter. You said you must start as a journeyman; how will you pro ceed? Harry. I must save something out of my wages, until I have money enough to make a start. Master. Then you will soon become acquainted with the Savings Bank. You may put your money into the bank, and you will not only have it kept safe for you, but you will have something added to it every year. This additional sum is called Interest, and is given by the bank in return for the use of the money put in. Thus, if you put in 17., at the end of a year you would have 17. Os. 7d.* This may at first not seem much ; but if a young unmarried man began with journeyman's wages of 15s. a week, he might very well supply most of his wants, and yet save 58. a week. If he did this for a whole year, he would have saved 137. But suppose he keeps back 17. for extras, and pays into the bank 17. on the last day of each month, then at the end of the year he will have in the bank 127., and 3s. 2d. added to it for interest. If he continues this for five years, his savings will be as follows: Harry. But 5s. a week is a very large sum to save? *The money put in is called the Principal. Here 17. is the principal, and 7d. the interest in one year. If you wanted your money at the end of the year, you would have 17. Os. 7d. to receive instead of 17.; but if you leave it in, they will give you interest for 17. Os. 7d, a's |