During the year 1847 the income of turnpike trusts was derived

The capital embarked in Gas Companies in London alone exceeds two millions of money; and as there is now hardly a town of any magnitude in England and Scotland in which gas-lighting has not been introduced, it is probably much within the mark to estimate the works provided for the purpose at ten millions. One Company managed in London, but carrying on its operations chiefly in Ireland (The United General Gas Light Company), has a capital employed of 450,0007. ; and another incorporation (The Imperial Continental Gas Company) has employed 250,0007. of English accumulations for providing light in various cities of Europe.

CHAPTER IV.

INVESTMENTS FOR COMMERCIAL PURPOSES.

Steam Engines in Birmingham-Shipping - Steam Vessels - Investments in Foreign Countries-Loans-Mines, &c., in British Colonies-Investments of Foreigners in our Public Funds withdrawn, and replaced by Savings of British Subjects-Live StockInvestments for Improvement of Landed Estates.

THE additional amount of fixed capital employed from time to time for trading and manufacturing purposes it is not possible to estimate. It is probable that, through the greater economy and simplicity of manufacturing processes, the amount of the national accumulations thus applied has not been altogether proportioned to the increase of the manufactures; but, on the other hand, it must be considered that the necessary effect of that simplification is, for a time at least, to raise profits, and thereby to induce the employment of a larger amount of capital, until by competition the equilibrium shall be restored, when the rate of profit will be reduced to the average current rate within the kingdom.

The investment of capital in this direction may, however, have been exceedingly great, although it may have fallen short proportionally to the increase in the produce. It was stated in a paper drawn up under the inspection of a committee of gentlemen belonging to the town of Birmingham, and which was read at the statistical section of the British Association, during its meeting there in 1839, that the number of steam-engines erected and employed in the various manufactories of Birmingham between 1780 (the date of the first introduction) and 1815 was only 42; and that the number so employed in 1839 was 240, showing an increase since the termination of the war of 198 engines, the larger proportion (120 engines) having been added since 1830.

The great extension given to the use of machinery in other branches of manufactures, and especially in the cotton manufacture, during the present century, has already been described (Section ii. Chapter ii.). The steam power newly provided in 1835 in the cotton districts of Lancashire and its immediate vicinity, was there shown to be more than seven

teen times as great as the whole steam power in use in Manchester at the beginning of the century. In the same year (1835) the returns made by the Inspectors of Factories stated that the number of power-looms employed in the cotton manufactories was 109,626, the whole of which had been made and put to use since 1801. The increase since 1835 has been exceedingly rapid, so that the number at this time (1850) falls but little short of 250,000.

The great increase shown to have been made to the foreign trade of the country, has called for the employment of a much larger amount of capital now than formerly in shipping. The number and tonnage of merchant vessels belonging to the British Empire were

The increase between 1803 and 1814 appears to have been 203 per cent, and between 1814 and 1849 the increased tonnage was 48 per cent. It is not difficult to account for this comparative falling off. The first period was one of war, while the second has been one of peace; and it is well known that a much larger provision of shipping is necessary for the prosecution of an equal amount of trade during war than suffices during peace, when the ships make the best of their way to the several ports of destination without having to wait for convoys. The greater economy of time thus attained has, of late years, been vastly augmented through the employment of steam-vessels. Besides these circumstances there was another cause which required the employment of a much larger tonnage during war than has since been needed. That part of the public service which regarded the conveyance of troops and stores was, in a great measure, carried on through the employment of private vessels hired by the Government for the purpose. Taking all these circumstances into calculation, it will be easily understood how the greatly augmented trade of the country is now prosecuted with so comparatively small an increased amount of shipping. As regards the capital embarked in the property of mercantile vessels, it is probably not much greater now than it was at any period between 1803 and 1814, owing to the smaller cost of the various materials required for the construction and equipment of vessels, and which countervails, to a great degree, not only the increased tonnage in existence, but also the increased cost of that part of our mercantile marine which is propelled by steam machinery. The number and tonnage of steam-vessels belonging to the United Kingdom and its dependencies at the end of 1849, was 1274 vessels of 173,580 tons burthen; but owing to the custom of not including in the register the tonnage contents of that part of these vessels which is

occupied by their machinery, the actual tonnage was much greater. The computed power of the engines employed was equal to that of nearly 100,000 horses. The accumulation of capital thus employed may be judged from this fact, that of the steam-vessels belonging to the British empire at the end of 1849, there were registered in

A very large amount of capital belonging to individuals in this country, the result of their savings, has of late years sought profitable investment in other lands. It has been computed that the United States of America have absorbed in this manner more than twenty-five millions of English capital, which sum has been invested in various public undertakings, such as canals, railroads, and banks in that country. Large sums have also been, from time to time, invested in the public securities of that and other foreign governments-not always, indeed, with a profitable result.

When the security thus accepted proves good, there can be no reasonable objection made to this course. We may feel quite sure that capital would not thus be sent abroad but with the reasonable expectation of obtaining for its use a greater return than could be secured at home, and by such means the accumulation of property is accelerated. Besides the ultimate advantage, there results this present good from the transmission of our savings to other lands, that it sets in motion the springs of industry to provide the means for that transmission. It is not money, in the usual acceptation of the word, that thus finds its way abroad for investment, but products and manufactures, the results of British industry. We have no surplus bullion out of which such advances could be made, and even if we had, it would not be profitable to us thus to dispose of it. It may be in insulated cases, and under temporary influences, that bullion is exported for such a purpose at times when we cannot very well spare it, but even then the evil is soon remedied through the ordinary and well-understood operations, either direct or indirect, of commerce.

Large sums have, from time to time, been lent to various foreign states by English capitalists, whose money has been put to great hazard, and in some cases lost. On the other hand, many foreign loans have been contracted by our merchants which have proved highly profitable

through the progressive sale of the stock in foreign countries at higher than the contract prices. It is evidently impossible to form any correct estimate of the profit or loss which has resulted to the country from these various operations; the general impression is, that hitherto the losses have much exceeded the gains.

Amid the fever of speculation that arose in 1824-5, attention was drawn towards the mines of South America and Mexico, and several companies were formed with large capitals, to be employed in once more bringing those storehouses of the precious metals into productive operation. The capitals embarked, and it may be said sunk, in a few only of those undertakings, amounted to five millions sterling. By this means the supply of silver and gold towards the general circulation has been augmented, but at an expense to the adventurers so much greater than the returns, that the capitals originally subscribed may in most cases be considered lost. Investment has also been found for more than two millions and a half of money by joint-stock associations for the purchase and sale of lands in our North American and Australian colonies.

During the war which led to the downfall of Napoleon, a general feeling of insecurity pervaded the Continent, and large sums were invested by foreigners in the public funds of England with a view to safe custody. These investments were very convenient to us while such constant and great additions were being made to the national debt, and no doubt tended to make the terms of borrowing more favourable to our Government than they otherwise might have been. An additional inducement to the foreign capitalist to place his money thus in security was offered by the assurance that the income thence arising would not be subjected to deduction by taxation. It is a mistake to suppose that in the exemption from property-tax then extended to foreign holders of a portion of our public funds, any favour was shown to them. To subject. the dividends to taxation would have been not only impolitic, it would have been unjust. The property-tax was collected from British subjects, holders of stock, at the times when the dividends were paid, because it afforded a convenient opportunity for collecting a tax imposed by law, not upon the public debt of the state, but upon the incomes of its subjects. In the Act which established the Income Tax in 1842, the same regard has not been paid to strict justice.

We learn from the claims made on the part of foreigners to this exemption from property-tax, that the amount of stock held by them in 1813 amounted to more than twenty millions.

With the return of peace came comparative security for capital, and increased means for its profitable investment abroad. The increased marketable value then given to the public funds enabled the foreign