The account of Spain would stand thus:
Gold 250 pounds, of the value of (suppose). 10,000 yards of cloth.
| By the two capitalists who quitted the mines, the value of 140 pounds of gold, or | 5,000 | yards of cloth. |
|---|---|---|
| By the capitalist who works the mine, No. 1, thirty pounds of gold increased in value, as 1 to 2½, and therefore now of the value of | 3,000 | yards of cloth. |
| Tax to the king seventy pounds, now of the value of | 7,000 | yards of cloth. |
| —— | ||
| 15,600 | ||
| —— |
Of the 7000 received by the king, the people of Spain would contribute only 1400, and 5600 would be pure gain, effected by the liberated capital.
If the tax, instead of being a fixed sum per mine worked, were a certain portion of its produce, the quantity would not be reduced in consequence. If a half, a fourth, or a third of each mine were taken for the tax, it would nevertheless be the interest of the proprietors to make their mines yield as abundantly as before; but if the quantity were not reduced, but only a part of it transferred from the proprietor to the king, its value would not rise; the tax would fall on the people of the colonies, and no advantage would be gained. A tax of this kind would have the effect that Adam Smith supposes taxes on raw produce would have on the rent of land—it would fall entirely on the rent of the mine. If pushed