Econlib

The Library

Other Sites

 Front Page arrow Titles (by Subject) arrow REMARK, by the Translator. - Observations on the Importance of the American Revolution, and the Means of Making it a Benefit to the World

Return to Title Page for Observations on the Importance of the American Revolution, and the Means of Making it a Benefit to the World

Search this Title:

Also in the Library:

Subject Area: Economics
Subject Area: Political Theory
Subject Area: War and Peace
Topic: The American Revolution and Constitution

REMARK, by the Translator. - Richard Price, Observations on the Importance of the American Revolution, and the Means of Making it a Benefit to the World [1784]

Edition used:

Observations on the Importance of the American Revolution, and the Means of Making it a Benefit to the World. To which is added, a Letter from M. Turgot, late Comptroller-General of the Finances of France: with an Appendix, containing a Translation of the Will of M. Fortuné Ricard, lately published in France (London: T. Cadell, 1785).

About Liberty Fund:

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.


REMARK, by theTranslator.

These observations shew that M. Ricard was himself possessed in a high degree of that knowledge of arithmetic which he has required in the comptrollers-general (p. 139) as a condition of the redemption of the debts of France. In the last paragraph, however, there is an incorrectness which shews that he had not attended sufficiently to one circumstance in the improvement of money by compound interest. This will appear from the following calculations.

One hundred livres will amount, if improved at 5 per cent. interest,

Paid yearly. Livres.Half-yearly. Livres.
In 100 years to131,501139,560
In 500 years to3″,932,400′,000,000—5″,296,100′,000,000
Paid quarterly.
In 100 years to143,890 livres.
In 500 years to6″,166,000′000,000 livres.

By directing, therefore, that the last hundred livres should be improved at 5 per cent. quarterly interest, M. Ricard might have gained an additional sum equal to 2″,234,000′,000,000 livres; that is, nearly equal to a hundred thousand millions sterling, which is a sum more than sufficient to encompass the earth with a belt of guineas all close and five feet broad.