There is one circumstance which comes so much within Lord North's province as a financier, that I am surprised it should escape him, which is, the different abilities of the two countries in supporting the expense; for, strange as it may seem, England is not a match for America in this particular.By a curious kind of revolution in accounts, the people of England seem to mistake their poverty for their riches; that is, they reckon their national debt as a part of their national wealth.They make the same kind of error which a man would do, who after mortgaging his estate, should add the money borrowed, to the full value of the estate, in order to count up his worth, and in this case he would conceive that he got rich by running into debt.Just thus it is with England.The government owed at the beginning of this war one hundred and thirty-five millions sterling, and though the individuals to whom it was due had a right to reckon their shares as so much private property, yet to the nation collectively it was so much poverty.There are as effectual limits to public debts as to private ones, for when once the money borrowed is so great as to require the whole yearly revenue to discharge the interest thereon, there is an end to further borrowing; in the same manner as when the interest of a man's debts amounts to the yearly income of his estate, there is an end to his credit.This is nearly the case with England, the interest of her present debt being at least equal to one half of her yearly revenue, so that out of ten millions annually collected by taxes, she has but five that she can call her own.
The very reverse of this was the case with America; she began the war without any debt upon her, and in order to carry it on, she neither raised money by taxes, nor borrowed it upon interest, but created it; and her situation at this time continues so much the reverse of yours that taxing would make her rich, whereas it would make you poor.When we shall have sunk the sum which we have created, we shall then be out of debt, be just as rich as when we began, and all the while we are doing it shall feel no difference, because the value will rise as the quantity decreases.
There was not a country in the world so capable of bearing the expense of a war as America; not only because she was not in debt when she began, but because the country is young and capable of infinite improvement, and has an almost boundless tract of new lands in store; whereas England has got to her extent of age and growth, and has not unoccupied land or property in reserve.The one is like a young heir coming to a large improvable estate; the other like an old man whose chances are over, and his estate mortgaged for half its worth.
In the second number of the Crisis, which I find has been republished in England, I endeavored to set forth the impracticability of conquering America.I stated every case, that I conceived could possibly happen, and ventured to predict its consequences.As my conclusions were drawn not artfully, but naturally, they have all proved to be true.I was upon the spot; knew the politics of America, her strength and resources, and by a train of services, the best in my power to render, was honored with the friendship of the congress, the army and the people.I considered the cause a just one.I know and feel it a just one, and under that confidence never made my own profit or loss an object.My endeavor was to have the matter well understood on both sides, and I conceived myself tendering a general service, by setting forth to the one the impossibility of being conquered, and to the other the impossibility of conquering.
Most of the arguments made use of by the ministry for supporting the war, are the very arguments that ought to have been used against supporting it; and the plans, by which they thought to conquer, are the very plans in which they were sure to be defeated.They have taken every thing up at the wrong end.Their ignorance is astonishing, and were you in my situation you would see it.They may, perhaps, have your confidence, but I am persuaded that they would make very indifferent members of Congress.I know what England is, and what America is, and from the compound of knowledge, am better enabled to judge of the issue than what the king or any of his ministers can be.
In this number I have endeavored to show the ill policy and disadvantages of the war.I believe many of my remarks are new.
Those which are not so, I have studied to improve and place in a manner that may be clear and striking.Your failure is, I am persuaded, as certain as fate.America is above your reach.She is at least your equal in the world, and her independence neither rests upon your consent, nor can it be prevented by your arms.In short, you spend your substance in vain, and impoverish yourselves without a hope.
But suppose you had conquered America, what advantages, collectively or individually, as merchants, manufacturers, or conquerors, could you have looked for? This is an object you seemed never to have attended to.Listening for the sound of victory, and led away by the frenzy of arms, you neglected to reckon either the cost or the consequences.You must all pay towards the expense; the poorest among you must bear his share, and it is both your right and your duty to weigh seriously the matter.Had America been conquered, she might have been parcelled out in grants to the favorites at court, but no share of it would have fallen to you.Your taxes would not have been lessened, because she would have been in no condition to have paid any towards your relief.We are rich by contrivance of our own, which would have ceased as soon as you became masters.Our paper money will be of no use in England, and silver and gold we have none.In the last war you made many conquests, but were any of your taxes lessened thereby? On the contrary, were you not taxed to pay for the charge of making them, and has not the same been the case in every war?
