Reduction Of French Annui...
The Frnh averamest has not, for a long timhe; proposed alaw' I ti1pcpubLr, or whbich bMs excited so much discontent, as that juat -adoptedby tbe Chamber'of Deputies. All the sma11flsndhold'ersi', Ant t1iir huanber is very great in Paris vent tliesxselves in impre.. catfons 011 M. dle Villele. Persons, too, who have nofhing to do withthne funds, also participate in the discontent; because thgey cletir1Y~ Perceive tbat-themeaeue will not to be turrned to the advaii- of lseplbli, ut hatth emgrntunwder some form snore or ltISis~~~, ill obain allthe beefit. Thedsont~tprouce bythesucessof the mneasure in the CI m, rf Deutis i suficint t enbleus to foresee its consec- qutenlees it Is evident that the funidholders, having no certain ard prOfitableNway Of employing their capital, will be-obliged to accept the zeduction of 1-5th, Proposed bY the Mlinisters. This is a neces- 23tyCOic"quence of the manner in which the stocDk is distributed- According t tecalculation sabmitted to the Chamber of Dcputies, 14rJ1 tllloD, of restes, the capital which the Government is au.. tborize to Pay, ofi, are classed in the following manner :-In the hands Of foreigners, 25,000,010:, of the inbabitants of the depart- mnents, 20,000 000;ef the inhabitants of Paris, 77,000,01)0; float.. lag Ian "erring to feed the jobabing on the 'Change, 18,000,000. Erence it follows, that if the fuadholders were to accept thie pay-. ment of their capital, such an immense quantity of money would be thrown into circulation Ln a nhort space of time, that no0 means coId be ibund for employi-ng it. The amount of capital which egflculture COuld absorrb in the neighibourhood of Paris is niot worth mentioning, because the land round there bss acquired all thle value it i capable of attaining. It wouald Ithen be necessary thjat the whole of th enomous repesentd by77 millions of rentim should be asorbd b thecommrcil trnsations of a single town, which alredy osssse asmmhcajita asitstraae rcquires. This is al.. Ihe Ministers pretenid that their scheme will make capital flow into the channeLs, of agriculture or commerce. This niight he true 'if' the rentes belonged to landholders or merchants, or if the holders Of the rentes were the neighbours of those who nee'd Capital to enable tlaem to carry on their business. But the case is Precisely ~the reverse. In general the landholders are not sto5ck.. holders, and thooe to whomn thec rentes belong have no connexion with the possessors of the soil. How couldi a small. fuadholder in Paris intrast the capital on which his existence depends to a farmer living at a distance, of whom he kanew nothing, wIns perha-ps would niot be Wflstisal i1n pay-ing him hi's intereat, oir mnight oblige him to inlstittute an action to recover his money ? This pretension of the Mi- nistry to divert, by fbrced meants, the capital of a nation into a course contrary to that in which it is naturally disposed to flow, - is a strik- ing Proof either of igniorance or dishoneaty. The unPOPulard'y of the measure has. ifpossible,been increaed by the discussion to which it gave rise, and the impossibility of assign- inany-good reaso for the conduct of the Government. It was. ex- pected that in the course of the debates some new lighit woula have been thrown on the real motives of the law, or on the consequences wh.ich imight be exe)ected froma it; but in this respect every expec- zator~~ dceied.No new idea was disclosed by the discussion. Alltll~i sevedtoshow was., th-at tihe furidholiders must give up a fouth fthir ncoe, or withdraw their capital to live upon it; and The initer an~e epoterof the Committee apiw.nted to ex- arniie he aw rojct ssinedtworeasons for this financia mea- sur. he irt ws,the otaining a diminution of the public bur.. den, t th amuntof about 28 millions annua.117; the second, the loeigo hert fiteet yrleving individuals wharequire th s fcpta ntaefo the 'competitioni of the state. T'helatter reason ista nwihte Reporter insisted MOSt, and wthat is remarkeable, it never seemed to be perceived that it is totally Void of foundation. 'Were the membor of the Government to be asked why they wish to diTminish the Profit of capital, rather than the profit of labour, anda how it happens, that tbey fancy themselves interested in diminishiing the income of one class of society, they would Probably be very muc9h ernbarr-sed to gi-ve a satisfactory answer. But this is not thte mawnpoint: the question is-,to know whether itbe intheitrpower to reduce thie interest of mnoney, and above all, whether the measure which they have adopted can have that result. We do not hesitate to prTonounc ill the negative. The Ministers state, that the Government may borrow at 4 p3er Cent.., orTin othker words, mnay obtain a capital of 75 francs, by giving 8 francsl interest. But is it not evident, thait if capitalists find theCir acwii itg h o ~asngfrom the Government three' francs of rentes for acapiti 5frafincs, they would arrive at the same result by Purchasing fromn the fusndholdes5 francs of reates for 125 francs of capital ? TIheir income would remain exactly the same, anid their isecurity would be as goodI i(n the one cae as in the oilier. Properly speaking, the Golvernment opertion is nothing else than the tilking bY force out of the hands of the fnndholders a rente of 5 francs, for which 100 francs is Paid, and immnediately selling the same rente to French cvrforeign capitalists for 125 francs It is clear, that by this transaction the Government gains 25 per cent., which might have been in the Pockets of thc fundholders. lint how is the circumstance of the Government making the profit instead of the fundholder to lower the rate of ainterest ? Al. de Villele and the Reporter 'Of the committee may have explainLed this to us; but if they did, we have not been able to comprehend themr. The pretension of Govermment to fix the rate of interest is not new; but it is strange, that it should continue to be reproduced under new forms, after Political economnists have so often demuonstrated its absurdity. There is Only Onecertain means by which Governments can lower the' interests Of mnoney. It is to ziv see.oijsty te. fii. in th capital, and eeoe all obstalse en wcnstandIi h way-of the progress of national pro-tinerity. We find it no less difficult to be persuaded, that it is for the sake of the tax payers that the MUinister oblige the fundholders to part with 100 franics of rentes, which aTe immediatey sold for 125. The Ministers says, that this will produce an annual saving of about 28' nmilons. Bie it so; but it is proper to remark, that this econo- mical scheme is a change, and not a creation of property. 'rhe profit is to be divided among a population of 30 millions, each of whbich may have to pay-unnually somnewhat short of a franc less ; but teloss wil fall upon 150.000 fundholders, each of whom will, at an svsrnge, sustain a losi of 186 francs 66 cents, from hiis annual in.. come. The good Proceeding from the meIMure will be inpercepri.. ble: the evil will fall with a severfe weight upon families who have regulated their plan of life according to ant income which appeared certain. The Mlinisters reasoned in a way whiich proves that they possess no very just idea of the nat-aye of prope-rty. They argued, that the fuindholders had no right to complain, since they were to re- ceive 100 francs for renties which at mo,st coat them only go, Admiting that thes rcnes wre urchased for 88R. by te peson whonow ossss tem,that is no reason forrobingthe. Wat oul bethoght of a measure Py whch Gvernent ouldrequre t be iven up to itself, a thrd r a ourh ofthevalu ofall roprtie acuird gratui- tuy,within terms snore or less remote olli etogt just to say to the proprietors, "1The pzoperty whicItaefo yu cost you nothing you or your ancetors have obandi o ohng ; at was given to them or to you, and you ought to thiin'k yoursielf for- tunate tobeabletoprese-veany portion ofit : the fourth paitkofthe value whichbrpay you is a fixed cle2r advantage whichi you possess." This reasoning is exactly that which the M1inister of the interior employs.-` We shall give 100 frnncs,!r ays he," to thuse who,on ala average, have only advanced 70;, thus the fusndholder gains 30 per 100, and the State reduces its debt abotut 28 or 3i0 millions." The Minister should have known, that when a property is legally ac- quired, it becomes the basis of the existence of families ; that on it the moat imiportant social transactions are foutnded- that marrages are formed,...children brought into the worldl on the faith of its security, and that to obtain po-ssesion of it for a less amorunt than its value, uinder the pretext that it cost less,, at its original purchase, is to commit a real spoliation asi great as to s9eize in the same wasroperty which originally cnstdouible itsreal valuae. Qne Of the motadistuaguishing characters of revolutionary gnvern- rnents Is a contempt for exiatencieslerally acquiriedl; anld in this re- spect the p resent Government of France has as revolutionary a clia.. victer a.s that of 1793. 1 shall not speak to you of thp subatile distinctions into whiceh tIle Mlinisters and the Mtembe-s of Opposition entered withi respect to those things which musta be reguilated'bs civil lavw, andl those depend- ing upon pblic law. I eshould find it difficult to make you under- .tand what7eachi meant, for I haLve a shirewd suspicion that they djid not understand what they meatnt themnselves. Thec discussion was very weakly conducted on both sides ; huit the composition of the Chamber had prepared every body to expect this. Already great number of the small annuirants have with- drawn their finds: many others will fellow their example ; hut the stuccess of the contractors who have treated with the French Government wil not be the less certain, provided thieir funds en- able them to sustain the first shock that may (thoughi not neciessa- riy) result fromithis eperation. Those who now withdraw their funds, or w'ho intend to demand reimbursement, will be obliged to buY rent's with them, because they will have no other means of profitably employing their capitas. The sttruggle, -which in these .circurnatancesis goingz to begin btetween the great capitalists of Eu- rope on one side, and the small aninuitants on the other, will possess a certain analoxy to thecontests whiich sometinies occur between the masters anid their workmen. As those who have the power of sup- portingfor the longest period the cesstion of labour, can force their antagonists to capitulate; so tilos, who have it in their Power to allow their capitals to he unprodluctive for the shortest period, will be obliged to submit at discretion to the others. I sball end mnY letter with a refl&tion which should strike thle Inind Of all -those who observe the conducet of Governi- ment in this country. The intestinec war whichi dividles the POPulation na ot taken Plac 'between' the ancient aristocracy and the la-_At classes of so'ety: it takes Place only between this ancicntaritstoeracyandtfelaiei Ziriingclass. Theobjec-tof the Minis.. tersis to reduce thelatter bypushin'git down towards the veryvlowes,t clatses. The surest means to attaini this enid is to attack thti r pro- pet;adthis is done by reduction of the renter. it is not te a -oreaorth obe whIu etr an ti i hmta the la- auction can iJure. Ar is calculated that in Paris alone, the duction ou1d occasion a loss of lfi- millions.. Let us then consider, on one hand, what cl.ss wilsuffer, and on the other what cla wilprofitby this m.casure; and,we sball instantly lamrn the secret. of the law. _4?ZTIOZT, q,FO FRECFI ANNUITIES! PAnITQ. Ar.x- Al I