David Hume
David Hume believed that public credit is essential for a nation's financial independence and stability. He warned that the practice of contracting debt on parliamentary security can become pernicious, leading to ruinous effects that threaten the nation's existence. He also believed that a breach of public credit leads to general confusion, financial ruin for many, and a stagnation of commerce that universally affects the public.
- undated “The measure was so suddenly taken, that none had warning of the danger. A general confusion prevailed in the city, followed by the ruin of many. ... And men, full of dismal apprehensions, asked each other what must be the scope of those mysterious counsels, whence the parliament and all men of honor were excluded, and which commenced by the forfeiture of public credit...”
- undated “The more a nation advances in opulence and credit. The ruinous effects of it are now become apparent, and threaten the very existence of the nation.”
- undated “The source of degeneracy which may be remarked in free governments, consists in the practice of contracting debt, and mortgaging the public revenues, by which taxes may, in time, become altogether intolerable, and all the property of the state be brought into the hands of the public”
Extrapolation: David Hume's views on public credit highlight the importance of maintaining it to avoid financial ruin and ensure the stability of a nation.
The full record: ledger, contrary evidence, reasoning, sources
1. WHAT HE SAID (the record)
Record ledger
- BELIEF (undated): David Hume believed that a breach of public credit leads to general confusion, financial ruin for many, and a stagnation of commerce that universally affects the public. He argued that such a breach is a result of mysterious and arbitrary counsels, and it causes a loss of trust. (key quote above)
- BELIEF (undated): David Hume believed that as a nation advances in opulence and credit, the practice of contracting debt on parliamentary security becomes more pernicious, with ruinous effects that threaten the nation's existence. (key quote above)
- BELIEF (undated): David Hume believed that public credit is essential for a nation to avoid dependence on foreign loans and to establish financial independence. He argues that Queen Elizabeth improved England's public credit by repaying loans, which allowed her to shake off dependence on foreigners. "her credit by degrees established itself in the city, and she shook off this dependence on foreigners."
- BELIEF (undated): David Hume believed that if public credit falls, stockholders would be reduced to instant poverty and lose all authority. This shows that he viewed public credit as crucial to the financial stability and influence of stockholders. "And if public Credit fall, as it must by the least Touch, he woud be reduc'd to instant Poverty, and have authority no-where."
- BELIEF (undated): David Hume believed that public credit, particularly the practice of contracting debt and mortgaging public revenues, can lead to intolerable taxes and the concentration of property in the hands of the public, threatening the stability and sustainability of free governments. He argues that this practice is a modern issue and can ultimately lead to a loss of liberty. (key quote above)
- ACTION (editor's note) (undated; editor's note, not his words): David Hume, at the end of chapter xxi of his History, stated that the first instance of debt contracted upon parliamentary security occurred in the reign of Henry the Sixth. He described this practice as 'pernicious' and warned of its likely harmful effects, especially as a nation advances in opulence and credit. "Hume, at the end of chap. xxi. of his History, says:—'The first instance of debt contracted upon parliamentary security occurs in this reign [Henry the Sixth's]. The commencement of this pernicious practice deserves to be noted..."
- ACTION (editor's note) (undated; editor's note, not his words): David Hume wrote a note on his Essay Of Public Credit nineteen years before the date of the letter from Strahan (July 23). "M. S. R. S. E. Hume, in a note on his Essay Of Public Credit, published nineteen years earlier, had said:"
What cuts against it
- The contrary-evidence entries are already in the record ledger above: .
2. HOW IT APPLIES (reasoning; inference is marked)
1. David Hume believed that public credit is essential for a nation to avoid dependence on foreign loans and to establish financial independence. "her credit by degrees established itself in the city, and she shook off this dependence on foreigners."
2. He warned that as a nation advances in opulence and credit, the practice of contracting debt on parliamentary security becomes more pernicious, with ruinous effects that threaten the nation's existence. (key quote above)
3. Hume also believed that a breach of public credit leads to general confusion, financial ruin for many, and a stagnation of commerce that universally affects the public. (key quote above)
4. He argued that public credit, particularly the practice of contracting debt and mortgaging public revenues, can lead to intolerable taxes and the concentration of property in the hands of the public, threatening the stability and sustainability of free governments. (key quote above)
5. Hume believed that if public credit falls, stockholders would be reduced to instant poverty and lose all authority. This shows that he viewed public credit as crucial to the financial stability and influence of stockholders. "And if public Credit fall, as it must by the least Touch, he woud be reduc'd to instant Poverty, and have authority no-where."
3. HIS TAKE
Record coverage: PARTIAL
The record is silent on the specific mechanisms by which public credit can be maintained or restored in modern contexts, and on the role of international financial institutions in managing public credit.
Extrapolation: David Hume believed that public credit is essential for a nation's financial independence and stability. He warned that the practice of contracting debt on parliamentary security can become pernicious, leading to ruinous effects that threaten the nation's existence. He also believed that a breach of public credit leads to general confusion, financial ruin for many, and a stagnation of commerce that universally affects the public.
Competing readings: One reading is that Hume's warnings about public credit are primarily historical and may not fully apply to modern contexts. Another reading is that his views on public credit are more relevant to free governments and may not apply to absolute monarchies.
Confidence: Moderate, based on the historical context and the specific warnings Hume provided about public credit and its effects on a nation.
- The History of England, vol. I, Part F: From Charles II to James II (The History of England in Three Volumes (Hume's portion, to 1688)). Document: CHARLES II.. Date: undated. Source type: old edited collection. Passage id: hume/pg19216-the-history-of-england-vol-i-part-f-from-charles-ii-to-james/0003.21
- The History of England, vol. I, Part B: From Henry III to Richard III (The History of England in Three Volumes (Hume's portion, to 1688)). Document: HENRY VI.. Date: undated. Source type: old edited collection. Passage id: hume/pg19212-the-history-of-england-vol-i-part-b-from-henry-iii-to-richar/0010.29
- The History of England, vol. I, Part D: From Elizabeth to James I (The History of England in Three Volumes (Hume's portion, to 1688)). Document: APPENDIX III. Date: undated. Source type: old edited collection. Passage id: hume/pg19214-the-history-of-england-vol-i-part-d-from-elizabeth-to-james/0009.21
- Letters of David Hume to William Strahan (George Birkbeck Norman Hill (editor)). Document: LETTER L.: The Principles of Penal Law: Landholders versus Stockholders.. Date: undated. Source type: old edited collection. Passage id: hume/hill-letters-of-david-to-william-strahan/0068.01
- Essays (selection, with biographical introduction by Hannaford Bennett) (London: John Long Ltd, undated (early 20th c.)). Document: OF CIVIL LIBERTY. Date: undated. Source type: old edited collection. Passage id: hume/pg36120-essays-selection-with-biographical-introduction-by-hannaford/0014.06
- Letters of David Hume to William Strahan (George Birkbeck Norman Hill (editor)). Document: Editor's note [n497]. Date: undated. Source type: EDITOR'S NOTE (the editor's words, not the person's). Passage id: hume/hill-letters-of-david-to-william-strahan/0732.00
- Letters of David Hume to William Strahan (George Birkbeck Norman Hill (editor)). Document: Editor's note [n495]. Date: undated. Source type: EDITOR'S NOTE (the editor's words, not the person's). Passage id: hume/hill-letters-of-david-to-william-strahan/0730.00
Quote check: PASSED (12/12 quotations verified verbatim)