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Chapter 5
A Closed-Economy One-Period
Macroeconomic Model

 Teaching Goals
There are three key points to be learned from this chapter. The first point is that when we allow the
consumers and firms that we studied in Chapter 4 to interact with each other and with the government,
the economy is able to achieve equilibrium through price adjustment. In this particular case, the “price” is
the relative price of leisure, the real wage. The second important point is that the equilibrium that markets
settle upon is a favorable one, in the sense of Pareto optimality. This point is in keeping with Adam
Smith’s notion that the “invisible hand” of self-interested individuals, meeting in a competitive market,
can work for the common good. The third point is that we can directly discover the equilibrium position
of a market economy by solving an economic planner problem. Although students may find this point to
be somewhat arcane, stress the point that it will be much simpler to solve problems (e.g., exam problems)
by working with a planner problem as opposed to directly solving general equilibrium problems. The
students, however, need to be aware when this solution method is not applicable. The section about the
Laffer curve is a good way to show when social and private optima do not coincide.

Once students have mastered the mechanics of the model, the two problems for which this model is best
suited are the analyses of changes in government spending and total factor productivity. In working these
problems, stress the applicability of these results to historical applications and as a guide to understanding
current events.

A key tactic of the textbook’s approach is the critical assessment of the usefulness and credibility of
competing models. Therefore, it is important to stress the extent to which models fit the facts. Does this
model fit the facts of long-run growth? Does this model fit the facts of the typical business cycle? These

©2014 Pearson Education, Inc.

 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 39

kinds of questions come up again and again in the course of macroeconomic study. Stress again and again
that scientific study needs to relate to observations, in our case the stylized facts of Chapter 2.

 Classroom Discussion Topics

An alternative approach to this material is to start with the example of Robinson Crusoe (or Castaway,
Gilligan’s Island, etc.). Does an isolated individual have any economic choices? What would guide these
choices? Would you rather be on an island with a more plentiful food supply? A pure income effect can
then be presented in the form of extra food (or a volleyball) washing up on shore, or in the form of “pirates”
(government?) demanding tribute. An increase in total factor productivity can be in the form of obtaining a
fishing net or a ladder to climb coconut trees. A change in capital can be the consequence of a hurricane, etc.

The next step would be to ask the students about the likely consequences of additional individuals on the
island. If they are all identical, and there are no economies to team production, will there be any reason for
markets to exist? Could a market improve things? How and why? Typically, markets improve things only
to the extent that people are different. However, these types of differences are what we are willing to
ignore when we adopt the fiction of a representative consumer.

 Outline
I. Competitive Equilibrium
A. A One-Period Model
1. No Borrowing or Lending
2. G  T
B. Equilibrium Modeling
1. Endogenous Variables
2. Exogenous Variables
3. Hypothetical Experiments
C. Properties of a Competitive Equilibrium
1. Representative Consumer Maximizes Utility Subject to Budget Constraint
2. Representative Firm Maximizes Profits
3. Markets Clear
4. Government Budget Constraint Satisfied
5. w  MRSl ,C  MRTl ,C  MPN

II. Optimality
A. Pareto Optimality
B. Welfare Theorems
1. 1st Theorem: A Competitive Equilibrium Can Be Pareto Optimal
2. 2nd Theorem: A Pareto Optimum Can Be a Competitive Equilibrium
C. Inefficiencies
1. Externalities
2. Distorting Taxes
3. Monopoly Power
D. Using the Second Theorem
1. Pareto Optima Are Easier to Identify
2. Effects of Disturbances on Pareto Optima

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40 Williamson • Macroeconomics, Fifth Edition

III. Effects of an Increase in Government Spending

A. Impact Effect
1. Parallel Downward Shift in PPF
2. Pure Income Effect
B. Equilibrium Effects
1. Reduced Consumption
2. Reduced Leisure and Increased Hours of Work
3. Increased Output
4. Lower Real Wage
C. Crowding-Out
D. Government Spending a Source of Business Cycles?
1. Government Spending Shocks Wrongly Predict Countercyclical Consumption
2. Government Spending Shocks Wrongly Predict Countercyclical Real Wages

IV. Effects of an Increase in Total Factor Productivity

A. Impact Effect
1. Upward Shift in PPF
2. Steeper PPF
3. Income and Substitution Effects
B. Equilibrium Effects
1. Increased Consumption
2. Leisure and Hours Worked May Rise or Fall
3. Increased Output
4. Higher Real Wage
C. Productivity and Long-Run Growth
1. Consumption Grows over Time
2. Hours Worked Remain about Constant
3. Output Increases over Time
4. Real Wages Rise over Time
D. Productivity as Source of Business Cycles?
1. Consumption Is Procyclical
2. Cyclical Properties of Hours Worked
a. Procyclical Hours Worked Is a Business Cycle Fact
b. Need Strong Substitution Effect to Predict Procyclical Hours
c. Intertemporal Substitution of Leisure
3. Increased Output Defines the Cycle
4. Procyclical Real Wage Rate

V. Income Tax Revenue and the Laffer Curve

A. Tax Revenue
1. The Tax Base Depends on the Proportional Tax Rate
2. The Laffer Curve Measures Tax Revenue as a Function of the Tax Rate
3. Unless the Tax Rate Is Optimal, Two Tax Rates Yield the Same Tax Revenue
4. Supply-Side Economists Claim the U.S. Economy Is at the Bad Tax Rate
5. Empirical Evidence Tends to Prove Supply-Side Economists Wrong

©2014 Pearson Education, Inc.

 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 41

VI. A Model of Public Goods: How Large Should the Government Be?

A. Effects of higher GDP on optimal government spending.

B. Better government technology: what happens to optimal government spending and private
spending?

 Solutions to End-of-Chapter Problems

1. Although we often think about the negative externalities of congestion and pollution in cities, there
may also be some positive externalities. A concentrated population is better able to support the arts
and professional sports; cities typically have a greater variety of good restaurants, etc. Perhaps a more
basic issue is that there may be some increasing returns to scale at low output levels that make
industrial production more costly in small towns. There may also be externalities in production in
being located close to other producers. One example would be the financial industry in financial
centers like New York, London, Tokyo, etc. Another example would be large city medical centers
that enhance coordination between primary physicians and specialists.
One market test of whether productivity is higher in cities would be to look at the wages in cities
versus the wages in smaller towns and rural areas. Wages are often higher in cities for individuals of
comparable skills. Market efficiency suggests that the higher wages be reflective of a higher marginal
product of labor, and that the higher wages compensate those choosing to live in cities for the
negative externalities that they face.
2. In a one period model, taxes must be exactly equal to government spending. A reduction in taxes is
therefore equivalent to a reduction in government spending. The result is exactly opposite of the case
of an increase in government spending that is presented in the text. A reduction in government
spending induces a pure income effect that induces the consumer to consume more and work less. At
lower employment, the equilibrium real wage is higher because the marginal product of labor rises
when employment falls. Output falls, consumption rises, employment falls and the real wage rises.
3. The only impact effect of this disturbance is to lower the capital stock. Therefore, the production
possibility frontier shifts down and the marginal product of labor falls (PPF is flatter).
(a) The reduction in the capital stock is depicted in the figure below. The economy starts at point A
on PPF1. The reduction in the capital stock shifts the production possibilities frontier to PPF2.
Because PPF2 is flatter, there is a substitution effect that moves the consumer to point D. The
consumer consumes less of the consumption good and consumes more leisure. Less leisure also
means that the consumer works more. Because the production possibilities frontier shifts down,
there is also an income effect. The income effect implies less consumption and less leisure (more
work). On net, consumption must fall, but leisure could decrease, remain the same, or increase,
depending on the relative strengths of the income and substitution effect. The real wage must also
fall. To see this, we must remember that, in equilibrium, the real wage must equal the marginal
rate of substitution. The substitution effect implies a lower marginal rate of substitution. The
income effect is a parallel shift in the production possibilities frontier. As the income effect

©2014 Pearson Education, Inc.

42 Williamson • Macroeconomics, Fifth Edition

increases the amount of employment, marginal product of labor must fall from point D to
point B. This reinforces the reduction in the marginal rate of substitution from point A to point D.

(b) Changes in the capital stock are not likely candidates for the source of the typical business
cycle. While it is easy to construct examples of precipitous declines in capital, it is more difficult
to imagine sudden increases in the capital stock. The capital stock usually trends upward, and this
upward trend is important for economic growth. However, the amount of new capital generated
by a higher level of investment over the course of a few quarters, of a few years, is very small in
comparison to the existing stock of capital. On the other hand, a natural disaster that decreases
the stock of capital implies lower output and consumption, and also implies lower real wages,
which are all features of the typical business cycle contraction.

4. Government Productivity. First consider the benchmark case in which z  1, and there is no effect of
changes in z on government activities. Now suppose that z increases. This case of an increase in z is
depicted in the figure below. The original production possibilities frontier is labeled PPF1 and the
competitive equilibrium is at point A. If the increase in z only affects the economy through the
change in zF ( K , N ), then the new production possibilities frontier is PPF2. The diagram shows a
case in which the income and substitution effects on leisure exactly cancel out, and the economy
moves to point B. The equation for the production possibilities frontier is C  zF ( K , h  l )  T . In the
benchmark case, T  G and so we have C  zF ( K , h  l )  G. For this problem, T  G / z , and so the
production possibilities frontier is given by C  zF ( K , h  l )  G/z. When z  1, the two PPFs
coincide. When z increases, the vertical intercept of the PPF increases by G/z. Therefore, the new
PPF is PPF3 in the figure below. The competitive equilibrium is at point C. There is an additional
income effect that provides an additional increase in equilibrium consumption, and a reinforced
income effect that tend to make leisure increase. Therefore, relative to the benchmark case, there is a
larger increase in consumption, and either a smaller decrease in leisure or a larger increase in leisure.

©2014 Pearson Education, Inc.

 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 43

5. Change in preferences.
(a) At the margin, the consumer decides that leisure is more preferred to consumption. That is, the
consumer now requires a bigger increase in consumption to willingly work more (consume less
leisure). In more intuitive language, the consumer is lazier.
(b) To work out the effects of this change in tastes, we refer to the figure below. The production
possibility frontier in this example is unchanged. The consumer now picks a new point at which
one of the flatter indifference curves is tangent to the production possibilities frontier. That is,
equilibrium will shift from point A to point B. Consumption falls and leisure rises. Therefore, the
consumer works less and produces less. Because employment has fallen, it also must be the case
that the real wage increases.

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44 Williamson • Macroeconomics, Fifth Edition

(c) This disturbance, which some might characterize as a contagious outbreak of laziness, would
have the appearance of a recession, as output and employment both fall. The consequent
reduction in consumption is also consistent with a typical recession. However, in this case the
real wage would rise, which is inconsistent with the business cycle facts. Therefore, this type of
preference change is not a cause of recessions.

6. Production-enhancing aspects of government spending.

(a) The increase in government spending in this example has two separate effects on the production
possibilities frontier. First, the increase in government spending from G1 to G2 implies a parallel
downward shift in the production possibilities frontier. Second, the productive nature of
government spending is equivalent to an increase in total factor productivity that shifts the
production possibilities frontier upward and increases its slope. The figure below draws the
original production possibilities frontier as PPF1 and the new production possibilities frontier as
PPF2. If the production-enhancing aspects of the increase in government spending are large
enough, representative consumer utility could rise, as in this figure.

©2014 Pearson Education, Inc.

 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 45

(b) There are three effects at work in this example. First, there is a negative income effect from the
increase in taxes needed to pay for the increased government spending. This effect tends to lower
both consumption and leisure. Second, there is a substitution effect due to the productive effect of
the increase in G, which is drawn as the movement from point A to point D. This effect tends to
increase both consumption and leisure. Third, there is a positive income effect from the increase
in G on productivity. This effect tends to increase both consumption and leisure. In the figure
above, the movement from point D to point B is the net effect of the two income effects. In
general, consumption may rise or fall, and leisure may rise or fall. The overall effect on output is
the same as in any increase in total factor productivity. Output surely rises.

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46 Williamson • Macroeconomics, Fifth Edition

7. (a) If households dedicate a hours to education today, it reduces the hours available for leisure and
work to h  a. The PPF has to start form point (G, h  a). Graphically, this corresponds to the
figure in the answer of question 6(b). The consequence is thus a reduction in consumption,
leisure, employment, aggregate output, but an increase in the real wage.
(b) In the future, workers will be more efficient, which corresponds to an increase in total factor
productivity. Thus we have the case described in Figure 5.9 of the textbook. There is an increase
in future consumption, aggregate output and the real wage. Changes in employment and leisure
are ambiguous.
(c) An increase in education leads to an immediate loss in welfare, as both leisure and consumption
are reduced. But this is compensated by an increase in future consumption, and possibly of
leisure, too. Whether this is worth doing depends on the preferences of households over current
and future utility.

8. We need to analyze each case separately. Start with the good equilibrium. As government expenses
increase, more tax revenue needs to be raised, and thus the tax rate needs to be increased. As shown
in the figure below, this tilts down the linear PPF. The new equilibrium leads to a lower indifference
curve. This leads to a negative income effect and a lower wage (remember, it is z(1 t)), thus a
substitution effect. The income effect lowers consumption and leisure, the substitution effect
decreases consumption and increases leisure. All in all, consumption is lower and leisure is higher, as
we know that the substitution effect dominates the income effect. This means that the labor supply is
reduced, and thus equilibrium labor and output.

The story is different in the bad equilibrium. To increase tax revenue, one needs to reduce the tax
rate. Then all the changes discussed above are exactly in the opposite direction.

9. We know from previous analysis that an improvement in total factor productivity pushes up the PPF,
and thus leads to an increase in consumption, a decrease in leisure, and thus an increase in the
quantity of labor supplied. This increases the tax base, and thus allows a reduced tax rate to achieve
the same tax revenue, or in other words, it pushes the left portion of the Laffer curve to the left. The
reduction in the tax rate has then a further impact on the variables of interest: as we saw in question 7,
first part with a reversal of all signs: consumption increases even more and leisure decrease yet more,
leading to an even higher quantity of labor. All in all, as both labor and total factor productivity
increase, output increases.

©2014 Pearson Education, Inc.

 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 47

10. a) With perfect substitutes preferences, indifference curves are straight lines with slope –b, where b is
the marginal rate of substitution. If b > 1/q, so that the indifference curves are steeper than the PPF, then
the optimal choice for the government is G=qY, so that C = 0. Thus if b is relatively large (the consumer
cares relatively more about public goods relative to private goods) and q is relatively large (the
government is relatively efficient), then all production should be carried on by the government.
Alternatively if b < 1/q, then G = 0 and C = Y, so that government is inactive. Thus, if b increases or q
increases, this makes it more likely that b > 1/q and we have the first case, where all production comes
from the government.
b) With perfect complements, indifference curves are as depicted in Figure 10.1, and the initial
equilibrium is at point A. If a increases, then the equilibrium shifts from A to B in Figure 10.2. An
increase in a represents a greater preference for private goods relative to public goods, and in Figure 10.2,
this results in less public goods and more private consumption in equilibrium. If q increases, this shifts the
PPF out as in Figure 10.3, and the equilibrium shifts from A to B. Both C and G increase, driven by
income effects.

Figure 10.1

Figure 10.2

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48 Williamson • Macroeconomics, Fifth Edition

Figure 10.3

11. (a) If public goods and private goods are perfect substitutes, then the consumer always chooses C and l
so that C = dl, and so given the production possibilities frontier, we must have
C
C  h G
d
and so

d (h  G )
C
1 d
and
hG
l
1 d
Therefore, consumption and leisure both decrease when government spending increases – a pure income
effect.
(b) However, suppose that public goods and private goods are perfect complements. As in part (a), it is
always optimal for the consumer to choose C and l so that C = dl. But the consumer faces a tax T = G,
and the wage is w=1. So, if the consumer chooses the C = dl and the budget constraint is satisfied, then

d (h  G )
C
1 d
and
hG
l ,
1 d
just as in part (a). This is the only optimum if
C  aG,

or

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 Chapter 5 A Closed-Economy One-Period Macroeconomic Model 49

dh
G
a(1  d )  d

But, if
dh
G
a(1  d )  d

Then, it is optimal for the consumer to choose

C  aG
and
aG
l .
d
In this case, the consumption bundle of the consumer actually lies inside the production possibilities
frontier, and government spending has a Keynesian effect. More government spending implies
greater consumption.

©2014 Pearson Education, Inc.

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 609. Edinburgh Ev. Courant, September 6, 1725. This paper remarks that the
extent of country which belonged to the late Earl of Seaforth, and disarmed on this
occasion, was no less than sixty miles in length and forty in breadth.
610. Lockhart Papers.
611. Miscellany Papers, Adv. Lib.
612. Ed. Ev. Courant.
613. D. Webster’s Account of Roslin Chapel, &c., Edinburgh, 1819.
614. Transactions of the Society of Improvers.
615. Caledonian Mercury, July 1735.
616. [Sinclair’s] Stat. Acc. Scot., xx. 74.
617. [Sinclair’s] Stat. Acc. Scot., viii. 525. A drawing and description of a
winnowing-machine used in Silesia appears in the Gentleman’s Magazine for 1747,
as a thing unknown in England.
618. Old Mortality, chap. vii.
619. Newspapers of the day.
620. Introduction to the Pirate—a novel, it need scarcely be remarked,
founded on the story of Gow.
621. ‘London, March 29, 1720.—Sunday evening the Duke of Douglas and the
Earl of Dalkeith fought a duel behind Montague House, and both were wounded.’—
Newspapers of the day.
622. Wodrow’s Analecta, iii. 208.
623. Lockhart Papers. Wodrow’s Analecta, iii. 210, et seq. Contemporary
narration.
624. See antea, under February 1697.
625. Sinclair’s Statistical Acc. of Scotland, article ‘Erskine.
626. Notice from the Edinburgh Post-office, Nov. 23, 1725.
627. Caledonian Mercury, Oct. 1733, and Jan. 1734.
628. Edin. Ev. Courant.
629. Chamberlayne’s Present State of Great Britain for the years cited.
630. Scottish Journal, p. 208.
631. Wodrow’s Analecta.
632. New Stat. Acc. of Scot., vi. 157.
633. Scrap-book of Dugald Bannatyne, quoted in New Stat. Acc. of Scot., vi.
231.
 634. Smollett’s Humphry Clinker.
635. Ramsay’s Works, i. 285.
636. Arnot’s History of Edinburgh, p. 366.
637. Mr Jackson had heard that Aston’s theatre was ‘in a close on the north
side of the High Street, near Smith’s Land. A Mrs Millar at that time was esteemed
a capital actress, and was also a very handsome woman. Mr Westcombe was the
principal comedian. The scheme was supported by annual tickets, subscribed for
by the favourers of the drama.’—Hist. Scot. Stage, p. 417.
638. Arnot’s Hist. Edinburgh, p. 366.
639. Analecta Scotica, ii. 211.
640. ‘Edinburgh, April 9, 1728.—Yesterday, Tony Astons, elder and younger,
stage-players, were committed prisoners to the Tolbooth. ’Tis said they are charged
with the crime of carrying off a young lady designed for a wife to the latter.’—Ed.
Ev. Courant.
641. Private Letters, &c.
642. Wodrow’s Analecta, iii. 309.
643. Printed by James Duncan, Glasgow, 1728, pp. 168.
644. Wodrow’s Analecta, iii. 318.
645. MS. in possession of the Junior United Service Club.
646. Struan Papers, MS. The Earl of Mar, writing to Struan from Paris,
January 6, 1724, says: ‘Our poor friend John Menzies has been very near walking
off the stage of life; but I now hope he may still be able to act out the play of the
Restoration with us, though he must not pretend to a young part.’ Among Struan’s
published poems is ‘an Epitaph on his Dear Friend John Menzies;’ from which it
would appear that Menzies had died abroad, and been buried in unconsecrated
ground.
647. History of the Robertsons of Struan.... Poems of Robertson of Struan,
Edinburgh, no date, p. 167.
648. Feb. 4, 1755. ‘At London, Edmund Burt, Esq., late agent to General Wade,
chief surveyor during the making of roads through the Highlands, and author of
the Letters concerning Scotland.’—Scots Mag. Obituary.
649. Burt’s Letters, ii. 189.
650. This poem exists in MS. in the library of the Junior United Service Club,
London.
651. Usquebaugh, whisky.
652. Library of the Junior United Service Club, London, to which body I have
to express my obligations for the permission to inspect and make extracts.
 653. Letters, &c. i. 77.
654. This road was completed in October 1729. See onward.
655. Select Transactions of the Society of Improvers.
656. Works of Lady Mary Wortley Montagu, Dalloway’s ed., iii. 127.
657. Gentleman’s Magazine, iii. 515.
658. Cyc. of Pract. Medicine, iii. 749.
659. Analecta Scotica, ii. 322.
660. Boswelliana, privately printed by R. Monckton Milnes, Esq.
661. Edinburgh Ev. Courant.
662. Hist Acc. of the Bank of Scotland, 1728.
663. Analecta, iii. 476.
664. A Letter containing Remarks on the Historical Account of the Old Bank,
by a Gentleman concerned in neither Bank. Edin., James Davidson & Co., 1728.
665. This is a statement of the pamphlet last quoted, p. 30.
666. In British Museum, 8223 C2 (b2).

667. Analecta, iii. 302.

668. Burt’s Letters from the North of Scotland, 2d ed., i. 230.
669. Sharpe’s Introduction to Law’s Memorials, cvi.
670. Scott’s Letters on Demonology and Witchcraft, p. 328.
671. Representation by the linen-drapers at the bar of the House of Commons,
Jan. 1720.
672. Letter in the Paper-office, quoted by Chalmers, Caledonia, i. 873, note.
673. Analecta, iii. 452.
674. Private Letters, &c., p. 59.
675. Edinburgh Ev. Courant.
676. Mr Wodrow relates that, about the same time, a number of ministers in
England met occasionally together under the name of the Orthodox Club, and
‘frequently their conversation is gay and jocose’—‘gay and’ being here a Scotch
adverb meaning considerably.
677. Private Letters, &c., p. 61.
678. State Trials, ix. 26. Arnot’s Crim. Trials, p. 190.
679. Private Letters, &c., p. 64. Mr Lindsay was soon after lord provost and
member for the city, in which latter capacity he made a remarkably good speech in
the House of Commons on the bill for taking away the privileges of the corporation
in consequence of the Porteous Riot. See Gentleman’s Magazine, vii. 457.
680. What seems sufficient to set this matter in a clear light is the fact that, up
to this time, such a thing as a sawn deal was unknown in the Spey Highlands; they
could only split a tree, and chip the pieces into something like a deal; and some of
the upper rooms of Castle-Grant are actually floored of wood prepared in this
manner.
681. At the end of the voyage, he took the curragh upon his back, and trudged
back to the point of departure. An example of this primitive kind of canoe was
exhibited at the archæological museum connected with the British Association at
Aberdeen, September 1859.
682. [Leslie’s] Survey of the Province of Moray, 1798, p. 267. Anderson’s
British Poets, viii. 655.
683. Analecta, passim.
684. Private Letters, &c., p. 66; also newspapers of the day.
685. Wodrow’s Analecta, iv. 97.
686. See under the year 1716 for some notice of her Grace’s services to the
country as a promoter of agricultural improvements.
687. Faculty Records, quoted in Analecta Scotica, ii. 170. The plate of Sallust
is now shewn under a glass-case in the Advocates’ Library.
688. Biog. Memoirs of William Ged. Nichols, London, 1781. To a daughter of
Ged, it was proposed that the profits of this publication, if any, should be devoted;
hence it may be inferred that the family continued poor.
689. Mores’s Narrative of Block-printing, with Notes, apud Topham and
Willett’s Memoir on the Origin of Printing. Newcastle, 1820.
690. Maitland’s History of Edinburgh, p. 460.
691. Arnot’s History of Edinburgh, p. 546.
692. Gentleman’s Magazine, v. 555.
693. The remaining verses of the poem are thus given in the Scots Magazine
for June 1773:

‘Ah! where is now th’ innumerous crowd,

That once with fond attention hung
On every truth divine that flowed,
Improved from thy persuasive tongue!

’Tis gone!—it seeks a different road;

Life’s social joys to thee are o’er;
Untrod the path to that abode
 Where hapless Penury keeps the door.

Drummond! thine audience yet recall,

Recall the young, the gay, the vain;
And ere thy tottering fabric fall,
Sound forth the deeply moral strain.

For never, sure, could bard or sage,

Howe’er inspired, more clearly shew,
That all upon this transient stage
Is folly, vanity, or woe.

Bid them at once be warned and taught—

Ah, no!—suppress th’ ungrateful tale—
O’er every frailty, every fault,
Oblivion, draw thy friendly veil.

Tell rather what transcendent joy

Awaits them on th’ immortal shore,
If well they Summer’s strength employ,
And well distribute Autumn’s store.

Tell them, if Virtue crown their bloom,

Time shall the happy period bring,
When the dark Winter of the tomb
Shall yield to everlasting Spring.’

694. Letter by a clansman of the deceased. Edin. Ev. Courant.

695. Culloden Papers, p. 111. Edin. Ev. Courant, Oct. 9, 1729. This chronicle
adds: ‘They named the bridge where the parties met Oxbridge.’ A statement which
appears somewhat inconsistent with one already made in our general account of
the Highland roads.
General Stewart of Garth, in his interesting book on the Highland Regiments,
makes an amusing mistake in supposing that General Wade here condescended to
be entertained by a set of cearnochs, or cattle-lifters.
696. Notes to 2d ed. of Burt’s Letters. There being a distinction between
natural tracks, such as formerly existed in the Highlands, and made roads, and
‘made’ being used here in a secondary and technical sense, it is not absolutely
necessary to suppose, as has been supposed, that the author of this couplet was an
Irish subaltern quartered at Fort William.
697. In May 1711, the ‘relict’ of Sir John Medina, limner, advertised her having
for sale ‘a great many pictures of several of the nobility, gentry, and eminent
lawyers of this nation,’ at her lodging, ‘the first stone land above the Tron Church,
second story.’—Ed. Ev. Courant.
 698. Daniel Wilson states, in his work, Edinburgh in the Olden Time, that
Scougal possessed Sir James Steuart’s house in the Advocates’ Close, and there
fitted up an additional floor as a picture-gallery.
699. The document is fully printed in the Edin. Annual Register for 1816.
700. Caledonian Mercury.
701. Analecta, iv. 86, 162.
702. Minutely narrated in Burnet.
703. Caledonian Mercury, April 6, 1724.
704. Sir D. Brewster’s Life of Sir Isaac Newton, 1855, i. 57
705. Edin. Ev. Courant.
706. Stewart’s Highland Regiments, i. 49.
707. Dom. Annals, under March 1, 1701.
708. French, commère, a godmother.
709. An Essay on the Means of Inclosing Scotland, 1729, p. 229.
710. Records of the Bank, quoted in Chalmers’s Caledonia, i. 873, note.
711. Edin. Ev. Courant.
712. Wodrow’s Analecta.
713. Domestic Ann. Scot., ii. 495.
714. See under June 24, 1736.
715. It is rather curious that, in a subscription for the relief of the sufferers by
a fire in the Lawnmarket of Edinburgh, in 1725, ‘Colonel Francis Charteris, £4, 4s.’
is the only contribution from a private individual. Uncharitable onlookers would
probably consider this as intended for an insurance against another fire on the part
of the subscriber.
716. Private Letters, &c., p. 80.
717. Gentleman’s Magazine, ii. 674.
718. Caledonian Mercury.
719. Cal. Mercury, August 8, 1732.
720. Chalmers’s Life of Ruddiman, p. 136.
721. Caledonian Mercury, May and July 1733.
722. Caledonian Mercury, February 14, 1734.
723. Historical Register for 1721, p. 253.
724. July 21, 1744, died at his seat of Orangefield, in the shire of Ayr, James
Macrae, Esq., late governor of Fort George.
 725. The son, Captain James Macrae, was a person of most unhappy history,
having shot an innocent gentleman in a duel, and obliged, in consequence, to leave
his native country.
726. Caledonian Mercury, July and August 1733.
727. See under 1718, pp. 440, 441 of this volume.
728. A riding of the stang, attended with tragical results, happened in March
1736. George Porteous, smith at Edmondstone, having severely beaten and abused
his wife, was subjected to the ignominy by his neighbours; which so highly
‘affronted’ him, that he went and hanged himself.—Caledonian Mercury.
729. Caledonian Mercury, passim.
730. Edinburgh newspapers, passim.
731. James VII.’s First Parliament, chap. 12.
732. [Sinclair’s] Stat. Acc. Scot., xviii. 362.
733. Wodrow Pamphlets, vol. 275.
734. From Mein’s original paper, apparently prepared for publication, 1735.
MS. in possession of Society of Antiquaries.
735. Act of Town Council, August 29, 1740. Robert Mein died in 1776, at the
age of ninety-three.
736. Amongst the papers of General Wade, in the possession of the Junior
United Service Club, is a letter addressed to him by a lady who felt interested in
behalf of Porteous. It is here transcribed, with all its peculiarities of spelling, &c.,
as an illustration of the exceptive feeling above adverted to, and also as a curious
memorial of the literary gifts then belonging to ladies of the upper classes. The
writer appears to have been one of the daughters of George Allardice of Allardice,
by his wife, Lady Anne Ogilvy, daughter of the fourth Earl of Findlater:
‘I dute not Dear general waid but by this time yon may have heard the fattel
sentence of the poor unhappy capt porteous how in six weeks time most dye if he
riceve not speedy help from above, by the asistance of men of generosity and mercy
such as you realy are it is the opinion of all thos of the better sort he has been
hardly deelt by, being cond’mned but by a very slender proof, and tho he was much
provokted by the mob and had the provest and magestrets order to fire which th’y
now sheamfuly deney nor had he the leeberty to prove it tho even in his own
defence, but the generous major powl will assure you of the trouth, and yet tho the
capt had thos crule orders it is proven my [by] commiserer wesly mr Drumond
doctor horton and severel other gentel men of undouted crided he realy did not
make use of them, that there eyes were fixed on him all the while and have declar’d
upon oth he deed not fire, true it is he presented his firelock in hopes to frighten
the mob when ane unlucky felow at the same time and just by the capt fired which
lead the two witness into the fatel mistake that has condmn’d him the unfortenat
pannal both befor and after the dismal sentence protested befor god and the judges
he was entierly inesent puting all thes circomstances to gether the miserable state
he now is in most draw your generous pity on his side ther’for dr general waid
continwa your uswal mercy and plead for him and as our sex are neturly
compassinot and being now in the power of the quin, so generous a pleader as you
may easely persuad, considring it is a thing of great concquenc to the whol army
which yourself better knou then I can inform the duke of buccleugh, marques of
Lowding [Lothian] Lord morton geneal myls all the commissioners and chiff baron
are to join ther intrest with yours in this affair, by your own generous soul I beg
again Dear sir you will do whats in your power to save him, thos that think right go
not through this poor short life just for themselves which your good actions shou
you oft consider, and as many just now put a sincer trust in your generous mercy I
am sure they will not be disapointed throgh aney neglect of yours let this letter be
taken notes of amongst the nomber you will reseve from your frinds in Scotland in
behalf of the unfortunat capt which will intierly oblidg

Dear general waid

your most affectionate and most
obident humble servant
Catharine Allardice.

‘you would be sory for the unexresable los I have had of the kindest mother,
and two sisters I am now at Mrs Lind’s where it would be no smal satesfaction to
hear by a Line or two I am not forgot by you drect for me at Mr Linds hous in
Edenburg your letter will come safe if you are so good as to writ Mr Lind his Lady
and I send our best complements to you, he along with Lord aberdour and mr
wyevel how has also wrot to his sister mrs pursal go hand in hand togither makeing
all the intrest they can for the poor capt and meet with great sucess they join in
wishing you the same not fearing your intrest the generals Lady how is his great
friend were this day to speak to the Justes clarck but I have not since seen her, so
that every on of compassion and mercy are equely bussey forgive this trouble and
send ous hop’
737. Caledonian Mercury.
738. Statutes at large, vi. 51.
739. In November 1737, the poet is found advertising an assembly (dancing-
party) ‘in the New Hall in Carrubber’s Close;’ subscription-tickets, two for a
guinea, to serve throughout the winter season.—Cal. Merc.
740. Caledonian Mercury.
741. Newspapers of the time.
742. Caledonian Mercury.
743. Daily Post, Aug. 17, 1738, quoted in Household Words, 1850.
744. His name was William Smellie. The fact is stated in his Memoirs by
Robert Kerr, Edinburgh, 1811.
 745. Scots Magazine, January 1739.
746. Scottish Journal, p. 313.
747. Houghton’s Collections on Husbandry and Trade, 1694.
748. Arnot’s History of Edinburgh, 4to, p. 201.
749. Robertson’s Rural Recollections, 1829.
750. ‘The man has not been dead many years who first introduced from
Ireland the culture of the potato into the peninsula of Cantyre; he lived near
Campbelton. From him the city of Glasgow obtained a regular supply for many
years; and from him also the natives of the Western Highlands and Isles obtained
the first plants, from which have been derived those abundant supplies on which
the people there now principally subsist.’—Anderson’s Recreations, vol. ii. (1800)
p. 382.
751. ‘This singular individual died at Edinburgh [January 24, 1788]. In 1784,
he sunk £140 with the managers of the Canongate Poor’s House, for a weekly
subsistence of 7s., and afterwards made several small donations to that institution.
His coffin, for which he paid two guineas, with “1703,” the year of his birth,
inscribed on it, hung in his house for nine years previous to his death; and it also
had affixed to it the undertaker’s written obligation to screw him down with his
own hands gratis. The managers of the Poor’s House were likewise taken bound to
carry his body with a hearse and four coaches to Restalrig Churchyard, which was
accordingly done. Besides all this, he caused his grave-stone to be temporarily
erected in a conspicuous spot of the Canongate Churchyard, having the following
quaint inscription:

“HENRY PRENTICE,

Died.

Be not curious to know how I lived;

But rather how yourself should die.“‘
—Contemporary Obituaries.

752. Scots Magazine, Oct. 1740. Act of Town Council, Dec. 19, 1740.
753. Scots Magazine, July 1741.
754. Moncrieff’s Life of John Erskine, D.D., p. 110.
755. Scots Magazine, July 1742.
756. Scots Magazine, Oct. 1712. New Statistical Acc. Scot., art. ‘Lochbroom,’
where many curious anecdotes of Robertson, called Ministeir laidir, ‘the Strong
Minister,’ are detailed.
757. Lays of the Deer Forest, by the Messrs Stuart.
 758. Edin. Ev. Courant, Nov. 15, 1743.
759. Spalding Club Miscellany, ii. 87.
760. Old Statist. Acc. of Scot., xv. 379.
761. Domestic Ann. of Scot., ii. 392.
762. Memorabilia of Glasgow, p. 502.
763. Newspaper advertisement.
764. Jones’s Glasgow Directory, quoted in Stuart’s Notices of Glasgow in
Former Times.
765. Culloden Papers, p. 233.
766. Appendix to Burt’s Letters, 5th ed., ii. 359.
767. Tour in Scotland, i. 225; ii. 425.
768. Gentleman’s Magazine, xvi. 429.
769. Scots Magazine, 1750, 1753, 1754.
770. Tour through the Highlands, &c. By John Knox. 1787, p. 101.
771. [Sinclair’s] Stat. Acc. Scot., xx. 424. The minister’s version is here
corrected from one in the Gentleman’s Magazine for January 1733; but both are
incorrect in the historical particulars, there having been during 1728 and the
hundred preceding years no more than six kings of Scotland.
772. Printed in Spalding Club Miscellany, ii. 7.

Page Changed from Changed to

90 resetter reseller
 TRANSCRIBER’S NOTES
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2. Retained archaic, non-standard, and uncertain spellings
as printed.
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