THE UNIVERSITY OF ILLINOIS LIBRARY 332 B875 V/8 '4 '% ' ELEMENTS OF A PLAN FOR THE LIQUIDATION OF THE OF THE UNITED KINGDOM; BEING THE DRAUGHT OF A DECLARATION, SUBMITTED TO THE ATTENTION f' OF THE LANDED, FUNDED, AND EVERY OTHER DESCRIPTION OF PROPRIETORY, OF THE UNITED KINGDOM. WITH AN INTRODUCTORY DISCOURSE. BY RICHARD HEATH FIELD, Gknt. LONDON .' PRINTED FOR LONGMAN, HURST, REES, ORME, AND BROWN, PATERNOSTER-HOW. 1819. INTRODUCTORY DISCOURSE. WHATEVER may be the difference of opinion, as to the causes and motives of the late war, it is evident that the British nation retires from the contest, with the advantage of great in- crease in all the means of political power. In agricultural and cultivated surface, the in- crease is very considerable ; in the British Ameri- can Colonies, in the Antilles, in Asia, in the south of Africa and in the British Isles, the augmen- tation of territory, of population and of pro- duction, constitute great accessions of power. In manufactures, generally, the ability of the United Kingdom to maintain successful competition, througliout the world, is demun- strated; the British warehouse is the resort of all nations for clothing, in most of the varieties B required by the convenience and taste of each ; the increase of demand on British Industry, exerted on the useful arts, is indisputable. And so happy is the distribution of these several interests, so fortunate the relation of the several parts to each other, so harmonious the whole, as, necessarily, to produce a mighty arm, for protection and defence, in the marine, by which the intercourse for the exchange of the natural and artificial productions of each is conducted. The effect of this harmonious and powerful combination, has been experienced, in the in- vincible fleets and armies of Great Britain, in the unexampled expenditure by which those fleets and armies have been maintained. How, then, does it happen, that the increase of public happiness, is not only, not co-extensive with the increase of power in the body politic, but, is to be contemplated, as declining in the inverse ratio of that increase ? That power in the whole, is suffering and sorrow in the individual ? The causes of the anomaly may be reduced to four general heads, namely. The System of the Public Debt. The want of a clear and well-defined System of Provision for those to whom facility of employment is not presented at home j by means of Colonization. Tlie Poor Laws. Education, as respects all classes of the community. Of these important subjects, the first men- tioned, only, is intended for present conside- ration, because, relief from the burthen of the public debt, appears to be indispensable to the successful institution of corrective or re- medial measures, with reference to all depart- ments of social life. Industry is the vital principle of property ; abstracted from labour, the land, the spindle, and the loom, are alike inert and unpro- ductive ; a free course to honest exertion, and protection and compensation to the indus- trious, are, therefore, first principles in the social compact. A public debt, whatever the circumstances in which it may originate, una- voidably bears adversely upon those princi- ples: the duties and taxes, inseparable from a public debt, enhance the price of all productions, particularly the price of do- mestic agricultural produce; the market for the productions of labour, and particularly of agricultural labour, is, consequently, circum- scribed J the course of industry is checked. The enhanced price of food, and of all neces- saries of life, unaccompanied by proportional B 2 increase in the price of labour and in the returns to active exertion, diminish the com- pensation to labour and exertion ; the enact- ment of a system of public debt, is a denial of the protection due to the active and pro- ductive classes of the community : an income is exacted, thereby, from those classes, to the inactive and unproductive. The chimje of in- terest for loans of money ought never to he in- curred by the state, — or, if necessary , as the al- ternative from a yreater evil, should, with the least possible delay, be removed, by the fair and honest discharge of the principal debt. Great Britain has so long been accustomed to a national debt, so many conveniences ac- tually do result and so many advantages appear to result, from her system of public debt, as to render the approach to the ques- tion of final and complete liquidation, an- . xious, and not unmixed with the apprehen- sion of the charge of temerity. The British system of pubhc annuities is sanctioned by time, is recommended by the facilities which it accords to the annuitant, and is familiarised by use. But, if the positions now advanced, be true, generally, they are, especially, true, with regard to Great Britain -, for, abstracted from the active disposition and industrious habits of her people, her empire is only » name: the sanction of a limited period of time, cannot alter the inherent character of things; if, for upwards of a century, a system of public annuities has been recognized and acted upon by the Government, necessity has ever been the plea for calling into action, a measure, always held to be objectionable, and ex- perience cannot be urged in favour of the attempt to support and continue the recent extension of the system: the convenience of individuals, is not to be indulged to the pre- judice of the best interests of the community, and the apparent advantages will be seen, as the illusions of the fancy, i/* the system be at variance with the first principles of society, if the labourer he deprived of his fair reward, if the good order and well being of the state he fearfully borne upon and interrupted. The public debt of Great Britain, is, for the most part, concocted on peculiar principles, principles which can only be justified by ne- cessity, and severe, indeed, must be the neces- sity which can justify their application. It is not lawful, between individuals, to con- dition for the payment of interest, and, also, for further compensation, by an addition to the principal sum advanced, on re-payment of the loan J a contract of such description. 6 between individuals, would be lield to be re- pugnant to fair and honest principle; would disgrace the lender, and injure, if not destroy, the credit of the borrower. — What, however, is conditioned, what undertaken in a British loan? An examination of the three per cent, annuities will lead to sufficient explanation. In a bargain between the public and the loan contractor, under which a three per cent, annuity is created, it is conditioned, that in consideration of the advance or payment of a sum of money, ordinarily varying between fifty-five and sixty -five pounds, a transferable annuity shall be granted of three pounds, the annuity not to be redeemable, compulsorily, for any less consideration than one hundred pounds : and, as it may be convenient to the annuitant, to sell the annuity, without awaiting the forced redemption ; the Government be- comes bound to carry, periodically, into the market for public securities, to purchase public annuities, sums of money, progressively in- creasing with the progressive amount of the annuities, actually, from time to time, bought up : under the arrangements for this purpose, the amount applicable to the reduction of the debt of the United Kingdom for the year «nded 5th January, 1819, was fifteen millions six hundred and twenty thousand five hundred and three pounds, seventeen shillings, and five pence halt-penny*. One effect relied npon from this plan, is the excitement of confidence on the part of the lender, and, nndoiibtedly, the calculation is encouraging ; he is assured of five per cent. interest or thereabouts, on the capital ad- vanced, he has before him the calculation of the effect of the government demand, in the market for public annuities; he buys an annuity for which the grantor assures to him a market, for the grantor binds himself to become the chief buyer therein ; and he en- titles himself to receive one hundred pounds for every sixty pounds advanced, (taking sixty pounds for the average) should his annuity be cancelled, compulsorily. The disadvantages of these terms are heavy and severe towards the public. The legisla- ture binds the public to pay the annuity which the government has granted, so long as held by the public annuitant; when no longer so held, when redeemed, in virtue of the contract with the annuitant, the amount of the annuity is still required from the public, and for what jmrpose? to be carried into the market for public annuities, to assure to the • House of Commons Reports.*— The public accounts cited throughout are the accounts to the 5th January, 1819. holders, so far as extensive, constant, and obligatory, purchases, can assure, an advan- tageous price for such annuities. It is to be admitted, that the ulterior object, proposed, or spoken of, is the redemption of the whole of the public annuities ^ but, in the face of the advance in the price of the annui- ties, incident to the present system of purchase by the government, in the face of the frequent creation of annuities, in the face of the too pro- bable calculation of the return to a state of war, is such a result to be expected ? The idea of the public debt being effectually re- deemed, by means of the present system, cannot be gravely entertained, by any person possessing ordinary powers of reflection. This is an awful conclusion; a conclusion in which the country cannot rest ; an alternative is to be sought, and the final object of these reflections is to point to that alternative j it will not, however, be improper, previously, to state some of the consequences, which actu- ally flow from the public debt. By the direct and indirect effect of duties and taxes, the difficulty of procuring individual support, by plain and simple exertion, has been greatly increased. By the unrestricted issue of paper, by the Bank of England ; by means of the pecuUar cir- culation of the currency, occasioned by the 9 immense collection and circulation by the Go- vernment; the facility to speculative pursuits has been greatly increased. By the example of persons, successfully en- gaged in speculative dealing in the public an- nuities, a similar spirit has been excited and carried into the pursuits of trade, to an unpa- ralleled extent. The encouragement of patient labour and exertion, has, consequently, declined -, the dis- grace of pauperism and insolvency has, there- forey diminished : The operations of trade have taken a turn decidedly speculative; regular profits from trade, are, therefore, comparatively, seldom realized : worse cannot befal a com- mercial community; the indisposition to honest and patient labour, and the disposition to pursuits merely speculative, when carried to an extreme, comprehend the dissolution of the moral character of trade, — that is, in a trading country, the moral character of the coHununity. The agricultural difficulties of the country, have been rendered plainly intelligible, by par- liamentary discussion; they are every where felt, and the Statute Book declares, that the people of the United Kingdom, must not expect, under the present system, at any definable pe- riod, to eat cheap bread; and yet, notwith- standing this admitted state of difficulty, thia C 10 kingdom, on the supposition of relief from the proportion of the duties and taxes, incident to the pubUc debt, might be expected to grow corn, at a rate of price sufficient!}^ low, to- meet the flour of North America, in the mar- kets of the south of Europe; that measure of relief being supposed, the great capital of this country, the laborious habits of the people, the skill and management of the British farmer, the proximity to the markets of Spain and Portugal, would, probably, admit a liberal return of rent to the landed proprietor, andy of sufficient reduction of price to maintain com- petition in those markets : it is not intended to be advanced, that the United Kingdom could grow more than sufficient, or even suffici- ent, grain, for the national consumption ; the suggestion embraces, simply, the conception, that, in the case supposed, the rate of price would be such, as to assure to the grower, a fo- reign market for grain, in the event of a surplus quantity being produced, and, consequently, would encourage, in the highest degree, the investment of capital in the cultivation of the soil: whether that extent of consequence would or would not result, it is unquestionable, that under the supposed relief from impost, the people would be cheaply fed, and that great and powerful impulse to the agriculture of the United Piingdom, would be experienced. 11 The same remission of duties and taxes, although not calculated to affect the demand for manufactures, in a similar degree, must, necessarily, greatly augment that demand ; the United Kingdom is, undoubtedly, the general jesort of nations, for the productions of the loom and of the anvil; most descriptions of British manufa,cture are produced at prices, which render the labour of the manufacturer a bless- ing to mankind; but it is, notwithstanding, clear, :that an increase in domestic agriculture would cause an increase of consumption in manu- factures at home, and that reduction in price, and, consequently, extension of market abroad, would ensue, from the supposed reduction of impost: in many leading particulars, the Statute Book, to the very letter, is at variance with the first principles of pohtical economy; the duties which are imposed on the material of many branches of manufacture, may be in- stanced; namely, the duty on silk, hemp, flax, cotton-wool, foreign sheep's wool, leather, indigo, and on most of the importations of materials for dying, printing piece goods, and other process of manufacture : partially cor- rected, indeed, by drawbacks and bounties, but still, weighing, sensibly, against the demand for British manufactures. Many of the trading and fiscal laws of Great Britain are the growth of times of dis- C2 12 tressing emergency; those laws and regu- lations, to great extent, when enacted, were allowed to be objectionable, were adopted as the lesser of conflicting evils, and it would be presumptuous to assert, that measures less onerous, under the circumstances, could have been devised : that consideration, is not, how- ever, now to be entertained; it is plain, that the British system of public annuities is objec- tionable, in principle, and it is indisputable, that great inconvenience and distress proceed from its act]aal operation. It is, therefore, to he considered, whether, the immediate^ partial, relief, and the eventual, en- tire, relief, of the British nation, from the burthen of a Public Debt j upon the basis of a general contribution in respect of property, including the amount of stock, created in favour of the public creditor, and the amount of all other public securities, (not being the property of ex-resident Foreigners) can be rendered practicable and safe? It is difficult to estimate the private pro- perty in the United Kingdom, with the accu- racy to be desired. By the statement pub- lished by Dr. Colquhoun, which Dr. Colquhoun denominates, " An Attempt" to estimate the property ift Great Britain and Ireland, (1812) 13 the amount of private property, in the United Kingdom, is represented to be, two thousand six hundred and forty-seven miUions, six hundred and forty thousand pounds: in that statement, the cuhivated lands, constitute one half, nearly, of the whole sunij the cultivated lands, in England and Wales, being esti- mated at something more than £24 per acre: this is a moderate rate of estimate, the other particulars are evidently the fruit of much labour and research, and upon an attentive examination of the statement, taking into view the authorities which are cited in its support, there does not appear to be any reason to question the propriety, for the present purpose, of considering the private property in the United Kingdom under-rated at the sum of TWO THOUSAND FIVE HUNDRED MILLIONS, which is one hundred and forty-seven millions, six hundred and forty thousand pounds less than Dr. Colquhoun's estimate*. * Colquhoun on the Wealth, Power, and Resources of the British Empire. 2d Edit. p. 55, 14 The public obligations, in tionaldebt, separate into four Hs OS) £1 O P fD CD respect of the na- divisions; namely. C« CD 3 O P s:!! ■< fD et- ^<- ft) ^ , 1 ^ O •xJ GC CD P i-s 05 I—" •"^ -? CO O o CD P CD ft- P 5^ a> e^ P p 3 2: g p 5* P !:^ P 3 ^ g^ rt) D- ^ if ?r ^ O" S ^ 3 o I o U^ ^ O) CC •^ ^ <^ CD 2. P o „ P ^ p ?^ p CO — ^ o to --1 Q O O fcO ^ s- 2"g §1 Or * For the advantage of simplicity in treating the subject, regard is not had to the partial deviation from the principle of the Sinking Fund, which has been made in aid of the supplies for the present year (1819.) 15 Being a charge of forty-seven millions eight hundred and fifty-nine thousand nine hundred and eighty-seven pounds, fifteen shillings, and eleven pence half-penny, (not including the heavy charges of collection) in respect of a principal sum of one thousand one hundred and sixty-one millions eight hundred and three thousand two hundred and ninety-two pounds four shillings and three pence, and annuities for lives or for terms of years, in respect of which a principal sum of debt does not appear. The Sinking Fund, as to which the first mentioned charge of £15,620,508 17^. 5ic?. has arisen, is required with reference to the Funded and Unfunded Debt, only; if the debt were provided for by other means, the demand on the pubhc, in that respect, would cease and determine. To provide for the liquidation of the funded and unfunded debt, it is proposed, first. That 3— All private property in the United Kingdom, including all claims on the Government, in re- spect of money lent and advanced, (not being the property of ex-resident Foreigners) be de- clared, by the legislature, liable and subject to a contribution of fifteen per cent. 16 By which measure, taking The Private Property, at - - ^^2,500,000,000 The Funded Debt, at - - 797,401,119 10| Allow for claims of ex-resident Foreigners 15,000,000 782,401,119 lOJ The Unfunded Debt, at - - 51,992,095 14 2| Total je3,334,393,214 15 1 Specific provision would be made for the Reduction of the Principal of Debt jg500,158,982 4 2 Principal of Debt, totals, Funded ^'797,401,119 lOJ Unfunded 51,992,095 14 2| — . — 849,393,214 15 I Leaving .... .' '^349,234,232 lO 11 To be provided from the following means and resources. "'/■' /^" ' ' ' If a clear' and'- decided intention were manifested by the legislature \d liquidate the national debt, oh the basis proposed, govern- ment stodk, of ever^ description, would, ne- cessarily, advance ' to' 1 pol siinis oi^ money, varying trom small to great, are in daily course of accumulation in the United Kingdom, as well by pubhc bodies as by individuals, which are the constant subject of investment ; in the •contemplated event of the advapce of all go- vernment stock to 100, a considerable proportion 17 of such monies, would be tendered to the British Government, without the intervention of third parties (as in the instance of a contract for a ge- neral loan) and without the creation of a princi- pal debt, exceeding the principal sum advanced, to be secured by transferable debentures, or otherwise, at an interest of three pounds per annum for the one hundred pounds advanced ; which would equal the produce of the same sum, if laid out in the purchase of 3 per cent, stock, at 100. It Avill be admitted, that the security of the British Government for the payment of the interest of money, is desirable ; if that se- curity be not found in the public market, it will be sought at the hand of the Government : the conditions of a loan, if money be not re- quired, in given sums, at stated times ; if ac- cepted, at a moment of convenience to the lender, will be prescribed by the borrower, by the Government, and not by the lender j and it is as clear as any prospective view of the nature of the question under consideration can be, that in the event of the measuresnow proposed being adopted, the facilities for the payment of the portion of the public debt, not otherwise provided for, arising from new and proffered loans of money, at a moderate rate of in- terest, would be very considerable.* ♦ The debentures to be paid off at the option of tlit D 18 •It is proposed, that all monies, soilent, shall he applied in discharge of the principal of the present debt; a fresh debt, will, indeed, be thus created, but, without the obligation to continue the present vSinking Fund, and not exceeding the amount of the principal of debt, not other- wise provided for. Other means and resources, with reference to the reduction, either of the capital of the original debt, or of the supposed newly created debt, are presented for consideration, namely : The contribution to be made in respect of British Colonial, and Asiatic property, so far as the same can be brought under the cognizance of the British legislature by an income tax, in respect thereof or otherwise. A contribution in respect of property /o he acquired within the United Kingdom, after the date of tlxe first ,gejtter«d. jassessmeut, that is to say, an income tax on all clear nett in- come, after the deduction of expenditure of every description. The surplus of taxes, which may be so re- gulated as to amount to a considerable sum, without preventing the large and liberal relief, immediately required. ot f Government, at six mqnths' notice, but payment not to be obligatory on the Government within ten years, and not more than ten millions to become payable in any one year; the earliest lenders to be the last paid off, compulsorily. 19 The amount of stock which may for ever remahi unGlaimed. The contribution of 15 percent on the pro- bable greater amount of property, within the United Kingdom, than the sum of 2,500 mil- lions, ah'eady mentioned. The examination in detail, of these latter particulars will not now be deemed necessary : it must be obvious, that, in combination, they present the means of completing the liquidation of the public debt ; opinion may vary as to the expediency of exerting all those means ; opinion may vary as to the selection of the means, if the whole be not exerted; but it is not questionable, that the means sug gested, would be fully equal to the purpose of liquidating-, the J debt, not otherwise provided for, taking the amount at 350 millions. The following are, the operative means, by which it is conceived, that the contribution or levy of 15 per cent, on the property actually within- the kipgdom, may be rendered prac- ticable and,'ii^fe : it wouhl not be prudent, if practicable, to carry the whole into effect, as respects the levy of money, at one moment of time, and'th nay essential, totheprosperity of the country. That the inquisition into the estate and pro- perty of every individual is objectionable, in principle, and would be inconvenient in prac- tice. That the advance of all government stock to 100 would give an advantage to the stock- holder, more than equivalent to the sum of his contribution of 15 per cent.; that he would derive a direct benefit, instead of bearing the burthen of the assessment, in common with the landed proprietor and commercial capi- talist. TJiat the want of the security of the Govern- ment would be severely felt, by the aged, the infirm, the minor; by corporate and other public bodies, by charitable institutions and by commercial capitalists. These objections, are, severally, of apparent weight and it is not possible, in an imperfect state of society, to devise any comprehensive range of action, wholly free from difficulty ; it is, however, conceived, that each particular objected, will admit a satisfactory answer. Capital cannot be, directly, either increased or diminished by the liquidation of the public debt, by the means proposed: the stock-holder, or public annuitant, as such, is not a capitalist. The discontinuance of the sinking ; fund^ 2S would only render unnecessary the levy and repayment by the Government, of a sum of money equal to the amount of that fund. The reduction of demand on the nation by -the pubhc annuitant, would, in like mannec, jonly render unnecessary the levy and repay* ^ent of a sum of money equal to such reduc- iion. The proportion of the payment to be made hy ;the landed and other proprietor, in money, would pass through the Exchequer .to the *tock-holder, who would become the buyer or mortgagee of land or other property, to the same extent, as the proprietor, to pay his tjontribution, might become the seller or mort- gagor;* money must circulate fortliis purpose, fcut there would not be any increase of capital. There could not, in either case, be any m- crease or diminution of capital : wheilter more or less amount of money he passed through the Exchequer, the sum of capital remains the same. The real effect, would, indeed, be the reverse of that which is supposed in the ob- jection ; the relief which the country would experience under ain extensive remission of duties and taxes, would cause activity to ca- pital, and consequentiy, would, in the first in- stance, tend to the want; rather than the super- abundance 6f capital. U\i.. — r! ■■ . li » > >' ■■ < > >» . '.'. ♦ It will be recollected, that it is proposed that ten yeart be allowed for this course of operation. 24 The question of the half-yearly dividends turns upon a similar consideration ; the means of those payments are first derived from the public. In the instance of a village, con- taining fifty heads of families, who may contri- bute directly and indirectly to those issues, at the rate of 51, per annum, each ; if not so called upon, each individual (supposing the rate of wages to be the same) would find at his disposal, five pounds, yearly, more than he now commands, which he would expend within his own sphere, and thus would be the instrument of a better circulation, for all social and political purposes, than can be produced by any other means ; so with respect to all other classes of society. The instrumentality of the tax-gatherer, cannot he necessary to the healthy circulation of the body politic. The inconvenience incident to an inquisition into the estate and property of every individual, is, undoubtedly, very considerable, and for any inferior purpose ought not to be proposed : the purpose in question, is, however, of the deepest concern to all who feel the value of social existence ; distress and danger press, and if the measures now brought into view, comprehend the means of extensive relief, of what compara- tive weight is the inconvenience objected ? It is admitted that the stock-holder would en- joy an apparent advantage, as objected: three 25 per cent, stock, under the influence of the measures recommended, would advance to 100; the contribution of the stock-holder being only 15 percent, he would receive 85/. for what would now in the market, produce only 70/. ; upon the reinvestment of his money on government se_ curity, at3percent. he would, however, receive but 2/. lis. per ann. say 3 per cent, on 85/. in- stead of 100/. : his income would be reduced 15 per cent, and, in that way, an equality with the situation of the landed proprietor would be produced:* if indeed, the capital should not again be advanced on government security, or when finally paid off, the stock-holder would obtain an advantage, but not more than he would have obtained in the market, as now constituted, whenever any consi- derable reduction in the quantity of stock should have been effected ^ and it will not be contended that the nation, is, forever, to be oppressed ,yf,\ih 4eji)tj^ ^ _ to prevent the stock- holder from obtaining 100/. for the'lOb/, which ■ 'rr; .<;^-r... TmriKJ) (>qp ^v.^-,t>ffj. , ^r- • It may fairly be presumed that the Accountant General, most or all the corporate and other public bodies, and charitable institutions, the generality of trustees, and many individuals, on their own account, would avail them- selves of an opportunity of re-investing the amount of stock held by them or in their names, on government security, if paid off, and the opportuDity were presented. E 26 the bank books record in his name. The de- jection applies rather to the j)nnciple on which the stock has been Created, than to the prin- ciple on which it is proposed that it shall be redeemed. It is ialsO admitted that inconvenience would ensue to various establishments and classes of persons, if the Government were at any time wholly to decline all guarantee of interest for money, and it is not, now, necessary to deter- mine, definitively, whether, after the liquida- tion of the amount of the present debt, such guarantee should again, in any or what de- gree, and under what circumstances, be ac- corded or not; the incompatibility of such engagements, with first principles, 'has been shewn*, and in any event, it would be grate- ful to the country, to find her security the object of solicitude, and that the lender of money, on the security of the British TSfation, no longer considered himself entitled to the terms of singular advantage which he has hitherto enjoyed. The immediate effect of the measures pFO- posed may be' considered as represented in the following table. I . _._ ■ ■ ■ ■ . ... , .^ . * Page 3. ge 14, £ Annuities for Live* f Y'^ar'^, inclii'.jng f Management. s. d. • ,503 17 51 * ,187 3 7| Q^'d 16 7| 612 18 3| ,987 15 Ul 312,4 ( *2Q ) Tiio Debt and Interest have been stated, page 14, as follows:— Sinking Fund Funded Debt Unfunded Debt .... Annuities for Lives or for Terms of Years Immediate Reduction. The 7vhole of the Sinking Fund Fifteen per cent, on Funded Debt, amount Allow for claims of ex-resident Foreisrners Principal. Interest, &c. £. s. d. Principol. £. S. d. 312,410,077 9 2 797,401,119 lOj 28,131,187 3 71 15,000,000 529,178 17 01 117,360,167 17 1 7,798,814 7 1 ?82,401,119 10| ebt . . . 27,602,008 G Qi Fifteen per cent, on Unfunded Debt The Debt and Interest would immediately be simplified and reduced to 15,620,503 17 5} 4,140,301 4 11 311,952 11 6 The application of the Assessment on the property estimated at 2500 millions would also be immediate, in relief of the industry and exertion of the country, and the principal sum of the Assessment being collected, the -principal of the Debt would be reduced by the sum of Until collected, the Interest thereon at 5 per cent, per annum, payable by the several parties assessed, and apph- cable to the satisfaction of Interest payable to the stock-holder, would amount to Leaving to be provided for to complete the liquidation of the debt, the principal sum of ... . Or for Interest, and Annuities for lives and for terms of years, and charges of management, the sum of . Principal. £. ,. d. ,410,077 9 2 ,401,119 10; ,992,095 14 2: 1161,803,292 4 3 437,569,059 1-3 4 724,2-34,232 10 11 375,000,000 349,234,233 10 11 Charge* of Managfonent. <£■ ». d. 15,620,.50.3 17 5f 28,131,187 3 7| 2,079,6X3 16 7J 2,028,612 18 Si -,859,987 15 Hi 20,072,757 13 I0| 27,787,230 2 1 18,750,000 9,037,230 2 1 It ife to be observed on the above statement, Uiat the sum' "rdmaining to be paid in «respect of Interest would vary*j so long as the whole sura of 375 millions remained unpaid, the sum of £9,037,230 2*. Id. would be correct; on the extreme supposition to the contrary, namely, that the whole sum of 375 millions were to be paid immediately, the sum for Interest and Annuities for lives and for terms of years, would be as follows : Interest on £S-i9,2-iA,232 \0s. l^cT. taknig Ihe average, ,rate pT the Interest £12,421,107 3} Annuities for lives or for terms of years .. ., ,.,,,, ■ , • • - • • ■ 2,028,612 18 3| ■- -— ^ 14,440,719 18 7' In the event, the amount would vary between the two extremes, that is between £9,037,230 3*. Id. and £14,449,719 18«. Id. ,- • TheJqterest for which Taxes must, for a time, be provided, would increase on the satisfaction or paymet^t pf the principal sum of the contribution, because so much of the contribution as would operate to ihe reduction of 3 per cent. 3§ per cent, or 4 per cent, stock, would prevent an annual demand on an equal amount of principal at 5 per cent.; an individual being assessed in respect Of landed or other property of the value of one million, would be required on that account to pay ,i'150,000, which at 5 per cent, per annum, would amount to X 7,500 per annum, if tlie same individual possessed 3 per cent, stock to the same amount, the income therefrom would be £i,50Q only, but by cancelling his stock, he would be relieved from the annual payment of £1,500 — this consideration would .tccclerate the liquidation of the debt, but it would, in its operation, increase the amount of annual interest to be provided for by taxes: the same effect would follow on the redemption of 3 per cent, stock, by means of the application of monies received at the Exchequer for that purpose. ' ' jtout pciuii coiIfcCft' 27 For the present purpose, the principal sum of funded and unfunded debt, remaining to be provided for, after the cessation of the sinking fund, and the application of the principle of a contribution of fifteen per cent, to the funded and unfunded debt, and to the private property in the United Kingdom; may be taken at three hundred and ^fty millions, and the interest thereon and annuities for lives or for terms of years, at thirteCxi millions. The means and resources for the liquidation of the principal sum of 350 millions have not been strictly deSned, but it has been shewn that they are ample, and might be adopted, wholly, or in part, as should be deemed expedient. These n:eans and resources may be recapi- tulated as follows, viz. British Colonial and Asiatic Income. Fviture Prouerty. Excess of Taxes.* * If the taxes, relatively to the national debt, were fixed at thirteen millions, to which sum they might be reduced imme- diately on the legislative enactment of the measures now pro- posed and suggested ; to be continued at that amount, until the final extinction of the national debt ; in proportion as the principal sum of 350 millions and the annuities for lires or for terms of yeurs were reduced, a sura, from the taxes, would be> come applicable to the discharge of the remaining principal. 28 Stock unclaimed. The probable greater amount of the private property, than 2,500 millions. Expiration of Annuities for lives or for terms of years, by effluxion of time. On a review of the preceding statement, it appears, that the burthen to be borne by the combined property and exertion of the United Kingdom, lamounts to one thousand one hun- dred and sixty-one millions and upwards, be- sides annuities for lives and for terms of years, amounting to two miUions and upwards, equal to an aggregate capital sum, of, one thousand two hundred millions or thereabouts, and that the annual charge, in respect thereof, amounts to forty-eight millions, nearly, exclusive of the heavy charges of collection. The whole of the private property in the United Kingdom has been stated at two thousand five hundred millions; it may be somewhat more or less, but it will not be questioned that the relation of the debt to the property is as one to two, or ap- proaching thereto. By this brief summary, it will become mani- fest, that the conceptions which have been disclosed, do not involve the principle of individual or personal sacrifice ; it is sufficient- ly plain, without having recourse to analysis, that the pressure of the debt, already, falls 29 heavily on property: the husband man, the artificer, all in the subordinate ranks of life, are distressed ; and in a country, so knit by the social ties, what distress can afflict the poor that does not re-act upon the wealthy ? the wealthy bear not only their own immediate proportion of the burthen, but, by re-action from those who are below them, in the scale of society, are destined, eventually, to bear the whole ; they are the last to feel the whole weight of con- sequences, but they are the responsible members of the firm, and on them the consequences will accumulate and finally fall : the burthen is equal to fifty per cent ; property throughout the United Kingdom, is, in effect, mortgaged for fifty per cent. The redemption proposed, proceeds on the calculation of a contribu- tion of fifteen per cent, only; it may appear paradoxical, but every proprietor would, rela- tively, be much richer, after the alienation of part of his property, than before, and the ex- pectation might be indulged, that he would become a member of a well regulated, and prosperous, instead of a deranged and harass-. ed community. These explanations have been deemed ne- cessary to the introduction of the Draught of Declaration annexed. The nation requires im- mediate relief, and the form of a declaration has been preferred, because, it is more manly so quite as constitutional, and, in all respects, more becoming, that measures, comprehend- ing the reduction, as to extent, though not in efficient value, of the property of every indi- vidual, should originate with the subject, rather than with the Executive Government, on whom, this pecuHar and weighty duty, cannot, fairly, be devolved, without the previous, fa- vourable, manifestation of public sentiment and opinion; and if persons, whom the question, from extent of possession and weight of in- fluence, more nearly concerns, should, in any instance, assemble to deliberate on the sub- ject, the conceptions are thus presented to them in the form most convenient for that; purpose. m DRAUGHT OF DECLARATION. WE, the - - - - have, with great anxiety, considered the state of the United Kingdom, on the well-being of which, we, se- verally, depend, in all -the relations of social existence: we are actuated by an unfeigned and unmixed desire to contribute to the relief of the inconvenience and distress which press upon all orders of society ; we are persuaded, that, clear, simple, and comprehensive arrange- ments, in respect of the national debt, are ne- cessary to that end, and, under the influence of that conviction, we consider it a duty of indispensable obligation, to declare our sentiments, judgment and opinion thereon : which we, accordingly,'' declare, as follows j namely : Ist. Tbat, the British Empire embraces a va- €ty and extent of territory and population j comprehending the means of producing great increase of national wealth and power, and of advancing private and individual comfort and happiness. Qnd. That, notwithstanding the possession and command of such means, the national duties and obhgations are, with great difficulty, discharged, and severe and unusual pressure and inconvenience are experienced, in agricul- ture, in trade, and in manufactures ; by every order and class in active and social life. 3rd. That, the great weight of taxes occa- sioned by the present system of the national debt, is a principal cause of the existing incon- venience and distress. 4th. That, the abandonment of that system is indispensable to the full and proper exer- cise of the powers of this great community. 5th. That, the immediate reduction of the amount now payable by the British Nation, by way of annuity, or otherwise, annually, and the eventual complete redemption of the public debt of the United Kingdom, may be effected, without violation of the national faith, and v^dthout any dangerous or mischievous distur- bance of the state of property. 6th. That, the annual sum payable, either to the government annuitant, holder of pub- lic floating securities or to the commissioners for the redemption of the public debt, consider- ed with reference to a principal sum of debt, is equal to a principal sum of one thousand two hundred millions or thereabouts. 7th. That, the sum payable in respect of as the national debt, including the charges of collection and management, approximates to one million, sterling, weekly. 8th. That, the levy of that sum, combined with the levy of the further sum necessary for the current purposes of the state, oppresses the industrious, injures the capitalist, and threatens the most calamitous consequences. 9th. That, the national debt is susceptible of liquidation on the basis of a contribution of fifteen per cent, on property, including the amount of stock created in favour of the public creditor, and of all other public obligation in respect of the loan or advance of money. 10th. That, it is, therefore, expedient, that all private property in the United Kingdom, not being the property of ex-resident foreigners, in government or public annuities, be declared liable and subject to a contribution of fifteen per cent, on the value thereof. 11th. That, in the event of the adoption, by the legislature, of effectual measures for the general application of such principle of con- tribution, the further operation of the sinking fund would become unnecessary. 12th. That, in such event, the contribution of fifteen per cent, to be paid by the public annuitant, or other public creditor, would be, virtually, effected, by the permanent reduction of all public annuities payable to British sub- F 84 jects, and of all other public securities, to the extent of fifteen per cent. 13th. That, the nation would be immediately relieved by that measure, from claims amount- ing to twenty millions, nett, annually, orthere- abouts. 14th. That, the contribution of fifteen per cent, in respect of land, manufacturing, ship- ping, commercial, and other property and ca- pital, would, further, as we apprehend, relieve the nation, from claims amounting to fifteen millions, nett, annually, or thereabouts. 1 5th. That, it would not be necessary to press for the immediate payment of the con- tribution of fifteen per cent, in respect of the subject matter of the preceding paragraph, because, for the term during which the same should remain unpaid, an annual payment of ifive per cent, on the amount of the respective ^ums remaining unpaid, might be accepted, by way or in lieu of interest, for a term of years to be limited ; at the expiration of which term of years, the payment of such contribution of fifteen per cent, should become peremptory. 16th. That, it appears to us, however, that, to great extent, a peculiar facility for the payment or satisfaction of such contribution of fifteen per cent, is presented; namely, in respect of all persons who are public annuitants or other public creditors, and who would also become 85 liable and subject to the contribution of fifteen per cent., in respect of other descriptions of property. 17th. That, the contribution on account of such other property, might be, effectually and readily, made, by such persons, by cancelling an equal amount or value in public annuities. 18th. That, we apprehend, that the class of persons referred to in the preceding paragraph is numerous, and that such persons are, under the present system, in effect, paying an annuity to themselves, from their own property, under a heavy loss, by means of the expence of ma- nagement, and under the more severe conse- quences of loss, prejudice, and inconvenience, by sympathy with, and participation in, the public and general distress. 19th. That, to assure the final and effectual relief of this United Kingdom from the disad- vantages incident to a public debt, it is expe- dient that measures should forthwith be deter- mined upon with a view to complete the liqui- dation of the debt. 20th. That, various means and resources are presented for that purpose, namely, A contribution, for a time to be limited, in respect of property, to be derived from the British Colonies, and from British India. The contribution, which might be levied, for F3 a time to be limited, in respect of property, to be acquired and realized, hereafter, in the United Kingdom. A surplus of taxes, after effecting the great reduction now indispensably and imme- diately required. The expiration of the annuities for lives or for terms of years, by effluxion of time. The probability that some part of the govern- ment debt will for ever remain unclaimed, and that the amount of property, in the United Kingdom, exceeds the sum of two thousand five hundred millions, at which sum, the same has been estimated as the basis of the 14th paragraph. Slst. That, without offering any opinion as to the expediency of having recourse to all the measures suggested in the preceding para- graph, or as to the selection of measures, should not the whole be combined, we recog- nize, therein, abundant means for the complete payment and satisfaction of the principal of the national debt, not provided for by the other measures recommended in this declaration. 22nd. That, whilst the measures now recom- mended and suggested, would be in course of operation, we anticipate that all government stock would advance to and remain at or above 100, and that the sum of one hundred pounds, invested in the purchase of three per cent. S7 stock, would, consequently, produce an annual income, not exceeding three pounds. 23rd. That, the security of the British Go- vernment, for the principal and interest of money, is a security, of a description, highly to be desired. 24th. That, simis of money, varying from small to large sums, are in constant course of accumulation in this United Kingdom, as well by public bodies as by individuals, which monies are the frequent subject of investment in go- vernment securities. 25th. That, in the contemplated event of the advance of all government stock to 100, we anticipate that a considerable proportion of such monies would be tendered to the British Government, on loan, without the intervention of third parties, (as in the instance of a contract for a general loan) the principal sum advanced, simply, to be secured by debentures or other- wise, at a rate of interest of three per cent, per annum. 26th. That, the application of such monies, when so lent and advanced, in aid of the liqui- dation of the existing debt, would, as we an- ticipate, very powerfully accelerate the dis- charge thereof, and, although a new debt would, thus, be created, the new contract would be plain, direct, and simple, unincumbered with the obligation of the present extensive Sinking 38 Fund ; and would, as we presume, at no distant period, be terminated by the entire cessation of public debt. 1 27th That, we are impressed with a deep con- viction of the advantages which would flow to this Empire, from the force of simple institu-' tjons ; that we cannot apprehen d any mischievous or dangerous consequences from the temperate and gradual, but early and complete, relief of the nation, from the present complicated system of finance; and we do, therefore, hereby ex- press our anxious and unqualified desire to i witness the adoption, and to promote, by our individual example, the execution of any mea- sures, founded on a principle of equal contri-^ bution, adequate to a purpose, which, com-: prehending the interests, in their vital prin- ciple, of this mighty Empire, embraces the interests of the human race. M. Brjrer, Printer, Bridge-street, Blackfriars, '»r^>^'Z vf .-SiMt^s^^'Sssssmimii^^^s.ySi^s&MM