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and Metz had left very vulnerable, and the formation of a vast and costly navy, which was probably intended to intimidate Italy and overbalance the power of England in the Mediterranean, account for much. Much, too, was due to the great energy with which the French Republic has pushed on the work of national education; and the expense of this work was enormously increased by the anti-ecclesiastical spirit which insisted on building fresh schoolhouses where ecclesiastical schools were abundantly supplied, and which refused to make any use of the great voluntary institutions established by the Church. But, in addition to these things, there has been another great source of expense, on which the best French economists dilate with unfeigned alarm. It is the enormous and wasteful expenditure on public works which are, for the most part, unremunerative; which are intended, by giving employment, to conciliate the working-classes, and which are extended to every department, almost to every commune, as a reward for supporting the Government. Much of this kind was done—especially at Paris—under the Second Empire, but the system never acquired the enormous extension and extravagance that it has assumed under the Republic. The name of M. de Freycinet is specially attached to this great development of public works; but, as might be expected, it soon far outgrew the proportions which its author had originally assigned to it, though his first idea was to spend four milliards of francs, or 160 millions of pounds, on railways alone. Very naturally, such a system of artificial employment having been started, it was found impossible to abandon it. Very naturally, every locality desired its share of the beneficence of the Government. Countless millions were squandered, either in purely Government work or in tripling or quadrupling local subventions, or in rendering gratuitous public services which had once paid their expenses, or in multiplying inordinate Government posts. And the result was that, at a time when severe economy was imperiously required, the Republic added to its debt a sum which was little, if at all, less than the expense of the War of 1870.²⁷

      We can hardly have a more impressive illustration of the truth that universal suffrage wholly fails to represent the best qualities of a nation. No people in their private capacities are more distinguished than the French for their business talent, for their combination of intelligent industry with great parsimony, for the courage with which in times of difficulty they retrench their expenditure. Yet few Governments have been more lavishly and criminally extravagant than those which have emanated from universal suffrage in France.

      The forms of corruption which are practised in a pure democracy are in general far more detrimental to the prosperity of nations than those which existed in other days. Sinecures, and corrupt pensions, and Court favours, and small jobs, and the purchase of seats of Parliament, may all be carried very far without seriously burdening the national revenues. A millionaire may squander with reckless profusion his shillings and his pence, but as long as the main lines of his expenditure are wisely ordered he will find no great difference at the end of the year. There are, it is true, occasional instances in which the extravagance of an individual or of a Court may have ruined a nation. The most amazing modern example has been that of Ismail Pasha, who, in the thirteen years between 1863 and 1876, raised the Egyptian debt from a little over three millions of pounds to eighty-nine millions, and who, mainly through his personal extravagance and reckless gambling, burdened a poor and struggling population of six million souls with an annual payment for interest of not less than seven millions of pounds.²⁸ Such prodigies of colossal selfishness, however, are, happily, rare; and if the world had not come to form a wholly false measure of the enormity of political crimes, both in rulers and subjects, they would lead to something very different from a simple deposition.

      Corrupt Governments are not necessarily on the whole extravagant. The great corruption which undoubtedly prevailed in the French Government under Louis Philippe did not prevent that Government from managing French finances with an economy which, in the light of later experience, can only be regarded as admirable. The jobs and sinecures and pensions of the Irish Parliament in the eighteenth century were very notorious; yet Irish statesmen truly said that until the outbreak of the great French war Ireland was one of the least taxed nations, and its Government one of the cheapest Governments in Europe. These kinds of corruption do much to lower the character of Governments and to alienate from them the public spirit and enthusiasm that should support them; but except in very small and poor countries they seldom amount to a serious economical evil. Wars, overgrown armaments, policies that shake credit and plunder large classes, laws that hamper industry, the forms of corruption which bribe constituencies or classes by great public expenditure, by lavish, partial unjust, taxation—these are the things that really ruin the finances of a nation. To most of these evils unqualified democracies are especially liable.

Modern Radicalism is accustomed to dilate much upon the cost to a nation of endowing princes and supporting the pageantry of a Court. If there be a lesson which repeated and very recent experience clearly teaches, it is the utter insignificance of such expenditure, compared with the cost of any revolution which renders the supreme power in a State precarious, lowers the national credit, drives out of a country great masses of capital, dislocates its industry and trade, or gives a false and extravagant ply to its financial policy. Brazil and Spain are poor countries, but the millions that have been lost to them by revolutions due to the selfish ambition of a few unprincipled adventurers would have gone far to pay for all the extravagances of all the Courts in Europe.

      France can, no doubt, bear the burden of her enormous debt better than most countries. Her great natural advantages, her vast accumulated wealth, the admirable industrial qualities of her people, the wide distribution among them both of landed property and of portions of the national debt, and the fact that this debt is mainly held within the country, have all contributed to the high credit which she still enjoys. Great as is her present debt, it bears a much smaller proportion to her riches than the English debt did to the revenue of Great Britain at the Peace of 1815, than the debts of Italy and Russia still bear to their national resources. No one can doubt that, if a policy of strict economy and steady peace is pursued in France for the coming half-century, her finances will again become very sound. Some portions of her debt consist of terminable annuities. The good credit which is largely due to the wide diffusion of the debt among Frenchmen renders the policy of conversion at diminished interest possible; and in 1950 the railways of France will become national property. A country which was able in 1894 to convert without difficulty 280,000,000l. of stock bearing 4 1/2 per cent. interest into 3 1/2-percent. stock is certainly in no desperate financial condition, and the cheapness and abundance of money, while it increases the temptation to borrow, diminishes the burden of debts.

But, in spite of all these things, no serious French economist can contemplate without alarm the gigantic strides with which both her debt and her taxation have of late years advanced. Such men well know that few national diseases are more insidious in their march, more difficult to arrest, more disastrous in their ultimate consequences. The immediate stimulus to employment given by a new loan masks its ultimate and permanent effects, and if the interest alone is paid out of taxation, the increase is at first scarcely perceptible. No one can suppose that France is destined for a long period to remain at peace, and there is very little prospect of serious retrenchment in her internal affairs. A policy which would involve greatly diminished expenditure in public works, and, at the same time, considerable increase of taxation, can never be popular with the great uninstructed masses, on whose votes all French Governments now depend. Few Governments would venture to propose it, and least of all feeble, transitory, and precarious Governments, like those which have existed in France since 1870. Such Governments necessarily take short views, and look eagerly for immediate support. All the lines of policy that are most fitted to appeal to the imagination and win the favour of an uninstructed democracy are lines of policy involving increased expenditure, and the whole tendency of European democracy is towards enlarging the functions and burdens of the State. When great sections of the people have come habitually to look to Government for support, it becomes impossible to withdraw, and exceedingly difficult to restrict, that support. Public works which are undertaken through political motives, and which private enterprise would refuse to touch, are scarcely ever remunerative. On the other hand, nothing can be more certain than that the evil of excessive taxation is not merely to be measured by the amount which is directly taken from the taxpayer; its indirect, remote consequences are much more serious than its direct ones. Industries which are too heavily weighted can no longer compete with those of countries where

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