THE UNIVERSITY 
 
 OF ILLINOIS 
 
 LIBRARY 
 
 332 
 B875 
 V. 13

 
 ^ 
 
 AN 
 
 INQUIRY 
 
 CONCEUNINC 
 
 THE RISE AND PROGRESS, 
 
 THE REDEMPTION AND PRESENT STATE, 
 
 AND 
 
 THE MANAGEMENT, 
 
 OF THE 
 
 NATIONAL DEBT 
 
 or 
 
 GREAT BRITAIN. 
 
 THE SECOND EDITION, ENLARGED. 
 
 By ROBERT HAMILTON, LL.D. F.R.S.E. 
 
 FROFE«>UR 01 NATURAL PHILOSOPHY II THE MVRIICHAL COLLKCi 
 AND CNIVER9ITY OF ABERDEEN. 
 
 EDINBURGH : 
 
 PRINTED TOR OLIPHANT, WAUCH, AND INNESJ 
 
 AVD SOID BY W. TURKBOLL, GLASGOW; A. BROWH, ABERDEEN; AND LOXflMAK 
 
 • l-BST, BrtS, ORME, AND BBOWH, LONDON 
 
 1814.
 
 D. Chalmers & Co.p 
 Printers, Aberdeen.*
 
 PREFACE. 
 
 JL HE author of the following Inquiry has at- 
 tended for a course of years to the progress of 
 the national debt, from the interest which he felt 
 as a member of the community in a subject of 
 so much importance, and which has now assumed 
 so alarming an aspect. As he has observed that 
 many persons, in general well informed, were 
 imperfectly acquainted with the facts, and enter- 
 tained crude views of the principles of finance, 
 he trusts that what he now submits to the pub- 
 lic, may not be altogether useless. 
 
 In the first part, he lays down and enforces 
 some general principles of finance. A person 
 unacquainted with the management of our na- 
 tional debt, may blame him for bestowing labour 
 to prove truisms, or principles which cannot be 
 controverted ; but to those who know that our 
 a 'J financial
 
 IV PREFACE. 
 
 financial measures have been conducted for a 
 course of years upon opposite principles, the ar- 
 guments adduced will not appear unnecessary. 
 
 In the second part, a particular detail is given 
 of the origin, progress, management, redemption, 
 and present state of the national debt. A part 
 of these facts is generally known ; but as few are 
 possest of full information on the subject, a pub- 
 lication of this kind seemed wanted. The author 
 could not well have fixed upon a certain degree 
 of information as what his readers already pos- 
 sessed, and supplied the remainder. Had he at- 
 tempted to do so, his work would have presented 
 a mutilated appearance, without being a great 
 deal shorter. He has therefore drawn up such 
 a narrative as may communicate all necessary in- 
 formation to a young person or a foreigner, who 
 has no previous knowledge of the subject. 
 
 The materials for the statements previous to 
 the year 1786, are drawn from the best authori- 
 ties that could be procured; and, if not altoge- 
 ther correct, at least come near to the facts. — 
 Those since 1786, are taken from the official 
 
 papers
 
 PREFACE, V 
 
 papers presented to the House of Commons, and 
 the acts of Parliament relative to finance. The 
 author cannot expect that in so great a variety 
 of figures and statements no error has been com- 
 mitted ; but he trusts that the errors are neither 
 numerous nor important. 
 
 In the third part, the propriety of the mea- 
 sures adopted in the management of our finance, 
 is examined. It cannot give any reasonable 
 ground of offence, that the plans of respectable 
 authors, and the measures of eminent statesmen, 
 are discussed with freedom. The author is not 
 conscious of having censured any person with 
 asperity : But wherever he thought their opi- 
 nions erroneous, or their measures improper, he 
 was under the necessity of assigning his reasons 
 for doing so. 
 
 In this edition, the statements are continued 
 to the present time, and have been carefully re- 
 vised, ami some errors corrected. An account 
 and examination of Mr. Vansittart's plan of 
 nuance, adopted in the operations of the yeai
 
 VI PREFACE. 
 
 1813, is added; — also some general observations 
 on sinking funds. An Appendix is subjoined, 
 containing an account of the several stocks, — of 
 the East India Company, — and of the manner of 
 transacting loans, and transferring stock ;— and 
 several additional Tables are inserted in the con- 
 cluding Appendix. 
 
 contents.
 
 CONTENTS. 
 
 Preface, -------- Page iii 
 
 An Inquiry concerning the National Debt, l 
 
 PART I. 
 
 General Principles of Finance, ----- 7 
 
 PART II. 
 History of the Public Debt of Great Britain. 
 Sect. I. Progress and manner of conducting the funded 
 
 debt 59 
 
 Sect. II. Plans adopted for the reduction of the funded 
 debt, and their operation. 
 $ 1. Sir Robert Walpole's sinking fund, - - 93 
 § 2. Mr. Pitt's sinking funds - - - 97 
 § 3 Lord Henry Petty's plan of finance, - 99 
 §4. Mr Vansittart's plan of finance, - - 103 
 $ 5. Redemption of the national debt by the pur- 
 chase of the land tax, - - - - 109 
 §6. Operation of the sinking funds, - - 112 
 §7. Irish, Imperial, and Portuguese sinkingfunds, 115 
 Recapitulation, - - - - - 120 
 Sect. III. Unfunded debt, 122 
 
 ^ S . — r additional facts, - - \ 
 
 Postscript II i I 27 1 
 
 PART III. 
 
 Examination of Plans for the Redanption of the National 
 
 Debt, and other Financial Operations. 
 Sect. I. Examination of Dr. Price's views of finance, - 129 
 Sect. II. Examination of Mr. Pitt's sinking funds, - 149 
 
 Sect. III. Examination of Lord Henry Petty's plan of 
 
 finance, - - - - - - -161 
 
 Sect. IV. Examination of Mr. Vansittart's plan of finance, 173 
 Sect. V. General observations on sinking funds, - - 189 
 Sect. VI. Examination of the system of funding by in- 
 crease of capital, - - - - - - 197 
 
 Notei, - 207 
 
 Appendix
 
 CONTENTS. 
 
 APPENDIX I. 
 
 § 1. Account of the Siocks, - 229 
 
 § 2. Account of the East India Company, - 236 
 
 §3. Manner of transacting Loans, - 24+ 
 
 § 4. Manner of transferring Stock, - 248 
 Appendix II. Tables. 
 
 I. Amount of Funds, 1st January 1793 and 1st Fe- 
 bruary IS 13, 253 
 
 II. Progress of the funded debt of Britain from 1793 to 
 1813, with the annual charge on the same, - - 254 
 
 III. Progress and redemption of the funded debt of Bri- 
 tain, and balances unredeemed, according to the no- 
 minal capital, and also when reduced to 3 per cents. 256 
 
 [V. Loans for Ireland guaranteed by Britain, with the 
 
 annual charges and redemption, - - - - 258 
 
 V. Progress of the whole Irish debt payable in Dublin 
 
 and London, with the annual charge, - 260 
 
 VI. Sinking fund of 1 per cent, on loans, - 262 
 
 VII. Unfunded debt, - 26$ 
 
 VIII. Lord Henry Petty's plan of finance, 
 
 Part I. Loans on war taxes, - 264 
 
 II. Supplementary loans, - ib; 
 
 III. Joint view of both loans, - 265 
 
 IV. Comparison with other systems, - - ib. 
 
 IX. Mr. Vansittart's plan of finance, - 266 
 
 X. British funded debt redeemed and transferred, - 267 
 
 XI. Rates of interest and terminable annuities on loans, 268 
 
 ERRATA. 
 
 Page 08. line 9. for L.12. 10s. read L. 2. 10s. 
 
 — 70. — for See Note XVII. read See Notes X. and XVII. 
 
 — SO. — 4. from foot, for L.2,409,265, read L.2, 409,625. 
 
 — 83. — 2. from foot, for L.107, read L.10. 7s. 6d. 
 
 — 115. — 15. for $ 6. read § 7.
 
 I N Q U I R V 
 
 CONCERNING THE 
 
 NATIONAL DEBT. 
 
 INTRODUCTION. 
 
 L HE decision of national contests, in ancient 
 times, depended upon the numbers, courage, and 
 military talents of the contending nations. The 
 invasions of barbarous hordes, destitute of wealth, 
 and impelled to undertake these invasions by po- 
 verty, have often accomplished the subversion of 
 large and wealthy nations, amply provided with 
 all the means of warfare that wealth can furnish, 
 and long renowned for military prowess ; but fal- 
 len from their former pitch of valour, in < 
 quence of the luxury which wealth crives rise to. 
 In this manner were the Roman empiri 
 and eastern, subverted; and in this manner have 
 the opulent and luxurious nations of the 
 
 > subdued by indigent and hardy 
 barbari 
 
 b The
 
 The great alteration in the state of mankind in 
 modern times, and the changes introduced into 
 the art of war, have, in some measure at least, 
 transferred the decision of national contests to a 
 different principle. Money is said to supply the 
 sinews of war ; and gold, rather than steel, is ac- 
 counted the instrument which leads to victory. 
 It cannot be doubted that this is true in a certain 
 degree, although not to the extent that some 
 maintain. 
 
 In the middle ages, when the ferocious spirit 
 which had formerly animated the northern na- 
 tions, had in some degree subsided ; while com- 
 merce was still in its infancy, and little national 
 wealth accumulated ; wars were carried on lan- 
 guidly, and were generally of short duration. 
 Their operations were frequently interrupted by 
 truces, and sometimes discontinued through mere 
 feebleness. A victorious army, conducted by a 
 warlike leader, was obliged to stop short in a 
 successful career, from want of resources. 
 
 It is not our object at present to inquire into 
 the sources of weakness, and incapacity for fo- 
 reign expeditions, inherent in the feudal system, 
 then more or less established in every nation in 
 Europe. Under any system of government, the 
 general wealth was insufficient to supply the ex- 
 pense of those extensive and long-continued wars 
 
 which
 
 which have been waged in later times. The re- 
 venue of the sovereign was derived partly from 
 lands reserved as a royal demesne, and partly 
 from feudal casualties, and afforded a slender 
 provision for maintaining the royal state, and de- 
 fraying the ordinary expenses of government ; but 
 was altogether inadequate to the support of nu- 
 nierous and permanent armies. Supplies from 
 the people were obtained to a certain extent ; but 
 the people neither possessed the means, nor had 
 acquired the habit of granting liberal supplies. 
 Princes, under any emergency, real or supposed, 
 or actuated by any scheme of ambition, had re- 
 course to the measure of borrowing. The loans 
 which they raised, were partly compulsory; and 
 as the repayment was ill secured, the rate of in- 
 terest was high. Sometimes the jewels of the 
 crown were pledged, and sometimes the crown 
 lands were mortgaged. In this manner, the re- 
 v (Mines of most of the powers of Europe were an- 
 ticipated and encumbered. 
 
 This irregular mode of borrowing gradually 
 gave way to one more systematic ; which lias now 
 i.e. ,i carried by tin* nation to an extent far be- 
 yond what was ever known in any other age or 
 nation ; iar beyond what any person at its com- 
 jnencement, or even after its considerable ad- 
 vancement, believed to be practicable. This sys- 
 tem is still expanding. The public debt, which 
 b 2
 
 was inconsiderable at the Revolution, has in- 
 creased, in little more than a century, to its pre- 
 sent magnitude. The increase during every reign, 
 except the pacific reign of George I. has been 
 greater than during the preceding. The increase 
 during every war has been greater than during 
 the preceding. The increase during the latter 
 ' period of every war, except the present, has been 
 greater than in the earlier period. The increase, 
 by every national exertion, has been greater than 
 administration held forth when the measure was 
 undertaken. The part of the national debt paid 
 off, in intervals of peace, has borne a small pro- 
 portion to that contracted by the preceding war. 
 No man can foresee how far this system may be 
 carried, or in what manner it will terminate. 
 
 It, however, presents an aspect sufficiently im- 
 portant and alarming to command our most seri- 
 ous attention . In various periods of its progress 
 it has obtained the attention, perhaps, of states- 
 men, who were unwilling to publish all they 
 thought 5 certainly of men who were skilled in 
 the principles of political economy, and well ac- 
 quainted with the state of our finances; and 
 none of these, it is believed, have considered it 
 in a trivial point of view. Perhaps the unex- 
 pected magnitude to which the public debt is 
 carried, and the ease with which the funds for its 
 annual augmentations are procured, have contri- 
 buted
 
 buted of late to blunt the public feelings on this 
 important object. 
 
 Various schemes have been proposed, by means 
 of sinking funds, for diminishing, and, in course 
 of time, discharging our national incumbrances ; 
 and some of these have been carried into execu- 
 tion to a certain extent. The confidence placed 
 in the efficacy of these schemes has contributed 
 further to ease the alarm which the magnitude of 
 the public debt would otherwise have produced. 
 Their principles and probable result ought to be 
 scrutinized in the strictest manner. If they be 
 adapted to the relief and ultimate discharge of 
 our national burthens, under the system of pro- 
 tracted and expensive warfare in which we are 
 engaged, let us enjoy the comfort, which such a 
 prospect affords, upon rational grounds. If they 
 be, in whole or in part, deceptious, it is proper 
 that the deception should be pointed out, and 
 that we should know the hazards and the limits 
 of our financial system. If we shut our eyes to 
 national dangers of whatever kind, we are most 
 likely to be overwhelmed by them. It' \\ 
 them in their true • we Bland the fairest 
 
 chance of encountering them with success. It 
 a candid enquiry into this subject should lead 
 to results less favourable than those which have 
 been held forth by high authority, and are readily 
 adopted by ion of the pub* 
 
 lie,
 
 lie, the enquirer performs the part of a true friend 
 to his country, and ought not to be charged as 
 acting from factious motives. 
 
 In the following Inquiry we propose, 
 
 First, To lay down some general principle?, 
 which, if established, would lead to general con- 
 clusions, concerning our financial system, and in 
 a great measure, supersede the necessity of ex- 
 amining particular plans which have been pro- 
 posed or adopted. 
 
 Secondly, To give a narration of the manner 
 in which we have proceeded in conducting and 
 accumulating our public debt, and a statement 
 of its present amount and annual charge, and an 
 account of the plans which have been proposed 
 or adopted for its discharge, and their operation. 
 The necessary tables in illustration of these par- 
 ticulars will be subjoined in an Appendix. 
 
 Thirdly, By means of the general principles, 
 to scrutinize the efficacy of the schemes to which 
 we trUst for the relief of our national burthens ; 
 and examine the propriety of the methods we 
 have adopted in conducting our financial opera- 
 tions. 
 
 PART
 
 PART I. 
 
 GENERAL PRINCIPLES OF FINANCE. 
 
 I. The annual income of a nation consists of 
 the united produce of its agriculture, manufac- 
 tures, and commerce. This income is the source 
 from which the inhabitants derive the necessaries 
 and comforts of life ; distributed, according to 
 their stations, in various proportions ; and from 
 which the public revenue, necessary for internal 
 administration, or for war, is raised. 
 
 II. The portion of national income which can 
 be appropriated to public purposes, and the pos- 
 sible amount of taxation, is limited ; and we are 
 already far advanced to the utmost limit. 
 
 III. The amount of the revenue raised in time 
 of peace, ought to be greater than the expense 
 of a peace establishment, and the overplus ap- 
 plied to the discharge of debts contracted in for 
 
 mer
 
 8 
 
 mer wars, or reserved as a resource for the ex- 
 pense of future wars. 
 
 IV. In time of war, taxes may be raised to a 
 greater height than can be easily borne in peace- 
 able times ; and the amount of the additional 
 taxes, together with the surplus of the peace 
 establishment, applied for defraying the expense 
 of the war. 
 
 V. The expense of modern wars has been ge- 
 nerally so great, that the revenue raised within 
 the year is insufficient to defray it. Hence the 
 necessity of having recourse to the system of fund- 
 ing, or anticipation. The sum required to com- 
 pleat the public expenditure is borrowed on such 
 terms as it can be procured for ; and taxes are 
 imposed for the payment of the interest ; or per- 
 haps to a greater extent, with a view to the gra- 
 dual extinction of the principal. 
 
 VI. In every year of war, where this system is 
 adopted, the amount of the public debt is in- 
 creased ; and the total increase of debt during a 
 war depends upon its duration, and the annual 
 excess of the expenditure above the revenue. 
 
 VII. In every year of peace, the excess of the 
 revenue above the expenditure, ought to be ap- 
 plied to the discharge of the national debt j and 
 
 the
 
 g 
 
 the amount discharged during any period of 
 peace, depends upon the length of its continu- 
 ance, and the amount of the annual surplus. 
 
 VIII. If the periods of war compared with 
 those of peace, and the annual excess of the war 
 expenditure, compared with the annual savings 
 during the peace establishment, be so related, 
 that more debt is contracted in every war than 
 is discharged in the succeeding peace, the con- 
 sequence is a perpetual increase of debt ; and the 
 ultimate consequence must be, its amount to a 
 magnitude which the nation is unable to bear. 
 
 IX. The only effectual remedies to this danger, 
 are the extension of the relative length of the pe- 
 riods of peace ; frugality in peace establishment ; 
 lessening the war expenses ; and increase of taxes, 
 whether permanent, or levied during war. 
 
 X. If the three former of these remedies be 
 impracticable, the last affords our only resource. 
 By increasing the war taxes, the sum required to 
 be raised by loan is lessened. By increasing the 
 taxes in time of peace* the sum applicable to the 
 discharge of debt is increased. These measures 
 may be followed to Mich an extent, that the sa- 
 vings in time of peace may be brought to an 
 equality with the surplus expenditure in time of 
 war, even on the supposition thai the periods of 
 
 their
 
 iO 
 
 their relative duration shall be the same for cen- 
 turies to come that they have been for a century 
 past. 
 
 XT. When taxation is carried to the extent 
 mentioned above, the affairs of the nation will go 
 on, under the pressure of existing burthens, but 
 without a continual accumulation of debt, which 
 would terminate in bankruptcy. So long as tax- 
 ation is below that standard, accumulation of 
 debt advances ; and it becomes more difficult to 
 raise taxation to the proper height. If it should, 
 ever be carried beyond that standard, a gradual 
 discharge of the existing burthens will be obtain- 
 ed ; and these consequences will take place in 
 the exact degree in which taxation falls short of, 
 or exceeds the standard of average expenditure. 
 
 XII. The excess of revenue above expendi- 
 ture, is the only real sinking fund by which pub- 
 lic debt can be discharged. The increase of the 
 revenue, and the diminution of expense, are the 
 only means by which this sinking fund can be 
 enlarged, and its operations rendered more effec- 
 tual: And all schemes for discharging the national 
 debt, by sinking funds operating by compound in- 
 terest, or in any other manner, unless so far as they 
 are founded upon this principle, are illusory. 
 
 The
 
 11 
 
 The greater part of these propositions are so 
 incontrovertible, that it may appear superfluous 
 to adduce any arguments in support of them, and 
 the others may be inferred from these by a very 
 obvious train of reasoning. Yet measures incon- 
 sistent with them, have not only been advanced 
 by men of acknowledged abilities, and expert in 
 calculation, but have been acted on by successive 
 administrations, and annually supported in parlia- 
 ment, and ostentatiously held forth in every mi- 
 nisterial publication. These seem to have gained 
 possession of the public mind, and we hear them 
 daily extolled and confided in by persons, in other 
 respects, candid and intelligent. This not only 
 supplies an apology for examining the principles 
 minutely, but renders such an examination ne- 
 cessary. 
 
 i . J. The
 
 T. The annual income of a notion consists oftheuniU 
 ed produce qfits agriculture, manufactures, and 
 commerce. This income is the source from which 
 the inhabitants derive the necessaries and comforts 
 of life ; distributed, according to their stations, in 
 various proportions ; and from which the public 
 revenue, necessary for internal administration, or 
 for war, is raised. 
 
 In every nation, a part of the public income 
 must be withdrawn from the use of the inhabi- 
 tants, and applied to public purposes. This con- 
 stitutes the national revenue, and is levied from 
 the people by taxes. The amount required for 
 this purpose, even in peaceable times, and when 
 all practicable economy is observed, is consider- 
 able. The administration of justice and police, 
 the support of such an army and navy as the pre- 
 sent state of surrounding nations renders neces- 
 sary, and various other objects, require a large 
 expenditure. In time of war, the public expen- 
 diture is greatly increased. 
 
 This expenditure, however reasonable and ne- 
 cessary, is defrayed by subtracting from the funds 
 which supply the wants of the people, and tends 
 to lessen their enjoyments. Taxation, therefore, 
 although necessary, is not desirable. It may arise 
 to a magnitude which will press severely on the 
 comforts, and even encroach on the necessaries 
 
 of
 
 13 
 
 of the middling and lower ranks. Unnecessary 
 public expenditure, whether occasioned by en- 
 gaging in wars which might be avoided, or con- 
 ducting necessary ones with improper prodigality, 
 or by extravagance in internal administration, is 
 a serious evil to the public. 
 
 The proposition here laid down concerning tax- 
 ation, will not be universally admitted. Taxes 
 are affirmed to be harmless, and even useful, upon 
 two principles. They are said to be a spur to in- 
 dustry ; and the money collected is said to be no 
 loss to the community, as it is returned by various 
 channels to the people from whom it was raised. 
 
 It is foreign to the object of our present inquiry 
 to enter into a full examination of the arguments 
 adduced in support of these opinions; and it could 
 not be done without a full discussion of the prin- 
 ciples of political economy. 
 
 In regard to the first, we may briefly observe, 
 that the desire inherent in every man to improve 
 his circumstances, is a sufficient and effectual in- 
 citement to exertion. The farmer raises all the 
 produce he can from his land. If he be deficient, 
 it arises from want of capital, or of agricultural 
 knowledge. The manufacturer extends his ope- 
 rations as far :is his capital, the extent of the mar- 
 ket, and the number of hands he can employ, 
 permit him. In time of war, the sums exacted 
 in taxes lessen the abilities, and consequently the 
 
 exertions
 
 14 
 
 exertions of both. In regard to commerce, the 
 effects of war are various. Many branches are 
 circumscribed, or altogether destroyed. Others 
 go on with increasing alacrity : but taxation is 
 never the cause of their enlargement. The mer- 
 chant generally advances the tax, and, as this 
 employs part of his capital, he is obliged to cir- 
 cumscribe his speculations. He is afterwards re- 
 imbursed, perhaps with profit, by raising the price 
 of his commodities, and thereby devolving the 
 tax on the consumer : but the enhancement of 
 price can never increase the quantity of merchan- 
 dize sold. The only classes of men upon whom 
 taxation can be reasonably supposed to operate as 
 a spur to industry, are those of the lower order, 
 who earn their subsistence from day to day by 
 the labours of agriculture or manufactures. If a 
 man can maintain himself and family by four days 
 work in the week, he will not, it is said, work for 
 six. In regard to those employed in agriculture, 
 this seldom takes place. The unremitted labours 
 of the peasant are obvious to every one. In re- 
 gard to manufacturers and tradesmen, there is 
 more foundation for the observation. A few in- 
 temperate tradesmen, unless compelled by neces- 
 sity, may spend a day or two weekly in the ale- 
 house. But it is notorious, that the greater num- 
 ber continue regularly at their work, except upon 
 rare occasions ; and not a few wear out their 
 constitutions by excessive and too long continued 
 
 exertions.
 
 lr, 
 
 exertions. It is a comparatively small part of the 
 taxes which falls upon persons in these stations 
 of life. 
 
 The other argument (that taxes are only an 
 imaginary evil, because the money is returned by 
 various channels to those from whom it was col- 
 lected,) is founded upon the principle of the mer- 
 cantile system, that money constitutes wealth — a 
 principle which has been ably refuted by writers 
 on political economy, knd is now generally aban- 
 doned. The farmer pays part of his produce, or 
 its value, in taxes, and has so much the less for 
 other purposes; that is, he is so much poorer. 
 The money may be brought back to him to pur- 
 chase another part of his produce for the con- 
 sumption of the army or navy ; but the same 
 men Mho constitute the army and navy must 
 have been maintained, and his produce would 
 have found a market. Even if money were ad- 
 mitted to constitute wealth, it is not true that all 
 the money raised by taxes returns to those who 
 pay them. A large part is sent abroad ibr sub- 
 sidies to foreign powers, and for the support of 
 AfmieB employed in foreign service. 
 
 II. Tlu
 
 Id 
 
 II. The portion of national income which can be 
 appropriated to public purposes, and the possible 
 amount of taxation, are limited ; and zee are al- 
 ready far advanced to the utmost limit. 
 
 The truth of the first part of this proposition is 
 so obvious, that it may seem unnecessary to en- 
 large on it. Yet the unexpected increase of the 
 public revenue has drawn off the attention of 
 many from its ultimate limit. They will not 
 affirm that it may be extended to an indefinite 
 magnitude ; but, as it has been carried so much 
 farther than our fathers, or we ourselves in early 
 life, believed to be practicable, they maintain, 
 that its future extension may be greater than any 
 one now conjectures ; and that its reaching a 
 maximum is so distant an event, that the pros- 
 pect of it ought not at present to have any in- 
 fluence on our public measures. 
 
 It may, however, be evinced, that a large pro- 
 portion of our resources is already exhausted j 
 and that the continued increase of revenue, at a 
 rate equal to what has taken place these last 
 twenty years, cannot be carried on for a long 
 term of future years. 
 
 The whole annual income cannot, under any 
 exigency, be appropriated for public revenue. 
 A sufficiency must be reserved for supplying the 
 necessaries of life. The surplus only can be ap- 
 plied
 
 17 
 
 plied to public purposes, and the proportion 
 which can be actually applied to them for any 
 length of time falls much below this limit. 
 
 Taxes upon articles of luxury, if raised beyond 
 a certain pitch, lessen their consumption, and 
 become unproductive. The same holds in some 
 degree with regard to taxes on every article not 
 indispensably necessary ; and our government has 
 hitherto wisely been sparing of taxes on the ne- 
 cessaries of rife. Taxes upon commerce, for the 
 same reason, have their limit ; and it seems to 
 be believed, that the system of indirect taxation, 
 in some respects the most eligible, is now carried 
 nearly as far as it can be done : For, instead of 
 raising all the revenue wanted by taxes of this 
 kind for some years past, recourse has been had 
 to the system, little used before, of direct taxation. 
 
 Our direct taxes are of two kinds. The first 
 is a tax upon legacies and successions in case 
 of intestacy, being a certain proportion of the 
 moveable property left by every person at his 
 death, varying according to the propinquity of 
 the successor to the deceased, and amounting to 
 ten per cent, on property left to remote relations 
 or strangers. Of the same nature is another tax, 
 a stamp duty on the probates or inventories of 
 personal estates, wherein no abatement is allowed, 
 in whatever relation the successor may stand to 
 the deceased. 
 
 The second and more considerable branch of 
 d direct
 
 18 
 
 direct taxation is that of a certain proportion of 
 every man's income, from whatever source it 
 arises. This has been considered as a war tax, 
 and was first imposed in 1799, under the name of 
 the income-tax, at the rate often per cent. Af- 
 ter a short intermission during the peace which 
 succeeded the treaty of Amiens, it was revived 
 in 1804, under the name of the property-tax, at 
 the rate of five per cent. ; raised in 1806, to six 
 and one-fourth per cent. \ and in 1 807, to ten per 
 cent. ; at which rate it has continued since. In- 
 comes under L.50, arising from annuities or pro- 
 fessional gains, arc exempted ; and incomes of 
 that sort under L.150, are entitled to certain de- 
 ductions according to an established scale ; but 
 every income, however small, arising from capital 
 of any kind, is subject to the full tax of ten per 
 cent. The assessed taxes raised upon houses and 
 windows may also be referred to the head of di- 
 rect taxation. 
 
 The amount of property-tax levied, at an ave- 
 rage of three years preceding 5th January 1813, 
 was L.13,281,509 ; and the whole average amount 
 of taxes, permanent and annual, raised during 
 these years, after deducting drawbacks, &c. was 
 L.64,860,192. If the property-tax be ten per 
 cent, upon the general amount of income, the 
 whole taxation is nearly fifty per cent., or one- 
 half. The lower classes indeed are exempted, or 
 relieved in a certain proportion from the property- 
 tax y
 
 19 
 
 tax; and it is probable, that among the higher 
 classes who ought to pay ten per cent, consider- 
 able evasions take place : But as the higher and 
 middling ranks pay almost the whole of the as- 
 sessed taxes, and a larger proportion of the taxes 
 on consumption, their taxation cannot fall much 
 below one-half of their income ; and therefore 
 we are already far advanced to the utmost limit 
 which taxation can ever reach. The lower clas- 
 ses indeed pay a smaller proportion ; but it will 
 hardly be thought prudent or practicable to raise 
 the taxes upon them in a higher proportion than 
 is done to their superiors. 
 
 If we be nearly right in this view, it is imprac- 
 ticable, in the present state of public wealth, to 
 double our present revenue by increased taxation ; 
 and it would be a measure of great difficulty and 
 danger to enlarge it by one half 
 
 We do not, however, affirm, that the nominal, 
 or even the real amount of our revenue, can never, 
 at any future period, amount to double of its pre- 
 sent magnitude. A nominal increase may ari ie 
 from the depreciation of the value of money, which 
 has taken place rapidly for a century past, and 
 is probably still advancing. This depreciation is 
 necessarily accompanied by a nominal increase oi 
 public expenditure; as every article which go- 
 vernment has occasion to purchase, and the pa;, 
 of everj person in civil or military employment 
 Mulcr go> eminent] must be increased in the sanii 
 d 2 propoii ion.
 
 20 
 
 proportion. The increase, therefore, of nominal 
 revenue, while its effective power remains the 
 same, affords no advantage to the public. 
 
 The increase of the money price of commodi- 
 ties arises from two distinct sources, of which, 
 although the effects be blended, the principles, 
 when analyzed, are of a very different nature. 
 The first is the relative increase of the circulating 
 medium, compared with the mass of commodities 
 in circulation. This, so far as it arises from ad- 
 dition to the quantity of gold and silver in circu- 
 lation, although it first takes place in the nations 
 that are proprietors of the mines of the precious 
 metals, has a tendency, in no long time, to diffuse 
 itself, nearly equally, among all nations connect- 
 ed by a regular commercial intercourse. The 
 effect of it is to subject every creditor, public or 
 private, to a loss in proportion to the extent of 
 the deterioration of the value of money. It con- 
 sequently discharges part of the public debt; but 
 it produces little effect upon the actual revenue, 
 or the state of commerce. An increase of circu- 
 lating medium, by the artificial means of paper 
 credit, has the same effect upon the price of com- 
 modities, and upon the property of creditors, as 
 an increase of circulating coin : But this, al- 
 though adopted under one form or other by most 
 mercantile nations, has not the same tendency 
 to equalization, and may occasion considerable 
 changes in the state of commerce ; always to the 
 
 disadvantage
 
 21 
 
 disadvantage of the nation where fictitious circu- 
 lating medium most prevails.* 
 
 The second cause of the increase of the price 
 of commodities, is the taxes imposed upon manu- 
 factures, of which we have now a great variety, 
 and upon merchandize imported. The amount 
 of the tax is incorporated with the natural price 
 of the commodity, and paid along with it by the 
 consumer. It is nearly the same as if the con- 
 sumer paid the natural price of the commodity 
 to the manufacturer or importer, and paid at the 
 same time a tax to government, in proportion to 
 the extent of his consumption. Something of this 
 sort actually took place in what was called the 
 Commutation Tax. When government found it 
 expedient to repeal a part of the duties upon tea, 
 it imposed a tax upon every person for the quan- 
 tity of tea he was conjectured to consume, as 
 ascertained by the number of windows in the 
 house he possessed. This part of the price of 
 commodities, unless drawn back upon exporta- 
 tion, operates as an obstruction to commerce ; 
 and even when drawn back, the relief is only par- 
 tial. For it is not merely the amount of the tax 
 which the manufacturer must lay upon his com- 
 modities : lie must have an allowance for the ad- 
 vance of money, and for the additional wages 
 paid to his workmen to enable them to pay the 
 taxes on what they consume. Creditors, public 
 
 or 
 • Sec Nole I.
 
 22 
 
 or private, do not sustain any special injury by this 
 part of the increase on the price of commodities. 
 They only contribute their share, along with 
 others, to the increased exigencies of the public. 
 A real increase of revenue may arise from an 
 increase of national wealth ; and this increase of 
 revenue will be obtained by the existing taxes 
 becoming more productive, without the imposi- 
 tion of new ones. Our wealth has increased to 
 an amazing magnitude, and we do not affirm it 
 has reached its utmost limit. But, considering 
 the extent to which our commerce, a chief source 
 of our wealth, is already carried, it is not reason- 
 able to depend upon its further increase, under 
 growing burthens, as an inexhaustible source for 
 supplying all our exigencies in a state of conti- 
 nued warfare. 
 
 III. The amount of the revenue raised in time of 
 peace, ought to be greater than the expense of a 
 peace establishment, and the overplus applied for 
 the discharge of debts contracted informer wars, 
 or reserved as a resource for the expense of fu- 
 ture xvars. 
 
 The propriety of this conduct is obvious, and 
 it has been adopted to a certain extent, but has 
 not been followed out with important efficacy. 
 
 In the earlier part of our history, the ordinary 
 
 revenue
 
 23 
 
 reveooe was hardly sufficient for the ordinary ex- 
 penditure ; and parliamentary supplies, in time of 
 peace, were rarely granted. Henry VII. was the 
 last, and, we believe, the only English king, in 
 modern times, who amassed a considerable trea- 
 sure by a parsimonious and oppressive adminis- 
 tration, during a reign the greater part of which 
 was passed in peaee. Tin's treasure was dissi- 
 pated in a short time by his successor. It is un- 
 necessary to enter into a detail of the financial 
 measures of each reign, from that time to the 
 Revolution. Although the period, compared with 
 that which followed, was on the whole pacific, it 
 never afforded any surplus of revenue. 
 
 The nature and efficacy of the different kinds 
 of sinking funds established since the Revolution, 
 will be considered in the third part of this inquiry. 
 
 The amount of the payments of the public debt, 
 m time of peace, subsequent to the Revolution, 
 has been as follows : 
 
 During the peace which followed the treaty of 
 Rvswick, being a period of lour years, from 1697 
 to 1701, there was discharged L..5, 121,041 of 
 funded debt, being L.l, 280,260 annually, at an 
 average*; and at the rate of L. 5. 95 per cent, 
 on the public debt existing at the termination of 
 the preceding war. 
 
 During the peace which followed the treaty of 
 Utrecht, being a period of twenty^ , from 
 
 1714 
 
 *See Put II. Sect L
 
 24 
 
 1714 to 1740, there was discharged L.7,23 1,508* 
 of funded debt, being L.278,135 annually, at an 
 average ; and at the rate of L.0.52 per cent, of 
 the public debt existing at the termination of the 
 preceding war. 
 
 During the peace which followed the treaty of 
 Aix-la-Chapelle, being a period of eight years, from 
 1748 to ,1756, there was discharged L.6,003,640, 
 being L.750,455 annually, at an average, and at 
 the rate of L.0.96 per cent, of the funded debt 
 existing at the termination of the preceding war. 
 
 During the peace which followed the treaty of 
 Paris, being a period of twelve years, from 1 763 
 to 1775, there was discharged L.10,996,016, being 
 L.9 16,334 annually, at an average, and at the rate 
 of L.0.68 per cent, of the funded debt existing at 
 the termination of the preceding war. 
 
 During the peace which followed the American 
 war, being a period often years, from 1 783 to 1 793, 
 there'was redeemed by the commissioners for the 
 reduction of the national debt, L.10,242,100, be- 
 ing L. 1,024,2 10 annually, at an average, and at 
 the rate of L.0.43 per cent, of the funded debt 
 existing at the termination of the preceding war. 
 
 No debt was paid off in the short peace which 
 followed the treaty of Amiens in 1802. 
 
 IV. In time of war, taxes may be raised to a great* 
 er height than can be easily borne in peaceable 
 
 times ;
 
 times ; and the amount of the additional taxes, 
 together with the surplus of the peace establish- 
 ment, applied for defraying the expenses of the 
 
 war. 
 
 It is not intended to affirm that the power of a 
 nation to bear taxes is increased in consequence 
 of its being engaged in war. The contrary is 
 always the case. Commerce, manufactures, and 
 agriculture are the sources from which all reve- 
 nue is derived. The two former may be amelio- 
 rated in certain branches by war, but they are 
 depressed Oil the whole ; and agriculture also suf- 
 fers in some degree. But the necessity of the 
 case, real or supposed, has a powerful influence 
 on the public mind, and reconciles the commu- 
 nity to submit to privations, which in peaceable 
 times would be accounted insupportable. 
 
 Before the introduction of the funding system, 
 national exertion was limited by the revenue 
 which could be raised within the year : but so 
 soon as that system was established, the selfish 
 practice of devolving the burthens, arising from 
 the exigencies or passions of the present age, upon 
 . ity, was adopted in its full extent. The 
 first attempt to defray any considerable part of 
 the war expenses by taxes raised within th< 
 
 was under Mr Pitt's administration in 17^^, 
 when the aid and contribution tax was im; 
 *>eing a large addition to the former B 
 
 i
 
 26 
 
 taxes on houses, windows, servants, horses, car- 
 riages, &c. regulated by an increasing scale ac- 
 cording to the amount of the former assessment. 
 
 This tax, not succeeding to expectation, only 
 subsisted one year, and was succeeded by the in- 
 come tax, already mentioned. Another war tax, 
 first imposed in 17&8, was an additional duty on 
 all goods exported and imported, partly accord- 
 ing to a table, and partly at so much per cent, on 
 their real value, as ascertained by the oath of the 
 merchant, together with a tax upon the tonnage 
 of shipping. This tax is sometimes called the 
 convoy tax, being considered as a compensation 
 tor the security which our trade receives in time 
 of war by sailing with convoy. These, together 
 with some lesser articles, amounted in 1812 to 
 L.21, 838,166, being about one-third of our whole 
 taxation, and are proposed to be taken off so soon 
 as peace is restored. 
 
 Whether this relief will be actually granted, 
 or whether the burthens will prove perpetual, is 
 at present among the secrets of futurity. Past 
 experience shows, that taxes have been often im- 
 posed at first for limited terms, and afterwards 
 rendered perpetual ; and the incroachments that 
 have been already made upon the war taxes, do 
 not promise fair for their speedy removal. In the 
 years 1798, 1799, 1800, a sum of no less than 
 L.56,445,000 was charged upon the war taxes, * 
 
 and 
 * See Appendix, Table VI.
 
 27 
 
 and distinguished from what was then called the 
 permanent funded debt, being intended to be dis- 
 charged by continuing the war taxes alter the 
 restoration of peace. This system, however, was 
 abandoned under Mr Addington's administra- 
 tion, and the above sum consolidated with the 
 rest of the funded debt. The war taxes were dis- 
 continued during the short peace. The system 
 adopted by Lord Henry Petty, in 1S07, would 
 have entirely absorbed the war taxes for an inde- 
 finite period if it had been continued ; and during 
 the only year it was acted on, the war taxes were 
 mortgaged for the interest and sinking land of 
 the loan of thai year, for a term of at least four- 
 teen years, to the extent of - L. 1/200,000 
 and in L809 the charges of the loan 
 were again laid ujm)U the war taxes, 
 amount, 1,040,000 
 
 Sum for which the war taxes are 
 
 pledged, L.2,240,000 
 
 The war taxes are also charged with the interest, 
 
 1 the loan 1811, but certain additional duties 
 
 imposed that year are added to the war taxes, 
 
 which are expected not only to defray that charge, 
 
 but to afford a surplus. The measure, however, of 
 blending the war taxes in this manner, with the 
 
 general revenue, is not. favourable to the pros- 
 f their Bpeedy removal. 1 
 
 1. 2 \ 
 
 11
 
 ^3 
 
 V. The expense of modern wars has been generally 
 so great, that the 7'evenue raised within the year 
 is insufficient to defray it. Hence the necessity of 
 having recourse to the system of funding, or an- 
 ticipation. The sum required to complect t the 
 'public expenditure is borrowed on such terms as 
 it can be procured for ; and taxes are imposed 
 for the payment of the interest ; or perhaps to a 
 greater extent, with a riew to the gradual ex- 
 tinction of the principal. 
 
 Various causes may be assigned for the in- 
 creased expense of war in modern times ; the 
 nature of our military weapons ; the entire sepa- 
 ration of the character of the soldier from that 
 of the citizen ; the extensive system of coloniza- 
 tion and foreign settlements, in consequence of 
 which, a national contest, which a few centuries 
 ago would have been decided by a battle on the 
 frontiers of the contending nations, now extends 
 the ravages of war to every corner of the globe : 
 And since the system of the balance of power 
 has prevailed, large sums have been granted by 
 more opulent states, as subsidies to others sup- 
 posed to be interested in the same common cause. 
 While these and other causes have led to great 
 expense, the increase of national wealth has sup- 
 plied the means, and the rulers of this nation in 
 particular, by a strict adherence to public faith, 
 and by a well regulated system of transfer, have 
 
 been
 
 
 been able to draw forth a large proportion of the 
 wealth of their subjects, and a share of that of 
 foreigners, for the exigencies of the public. The 
 progress of our public debt, and manner of con- 
 ducting it, will be detailed in the second part of 
 this inquiry. 
 
 VI. In re cry year of Tar, where this system is 
 adopted, the amount of the public debt is increased, 
 and tlic total increase of debt during a war de- 
 pends upon its duration, and the annual excess 
 of the expenditure above the revenue. 
 
 VII. In every year of peace, the excess of the reve- 
 nue above the expenditure ought to be applied to 
 the discharge of the national debt; and the amount 
 discharged during any period of peace depends 
 upon the length of its continuance and the amount 
 of the annual surplus. 
 
 VIII. If the periods of war compared with those of 
 peace, and the annual excess of the war expendi- 
 ture compared with the annual savings during the 
 peace establishment, be so related, that mot 
 
 is contracted in every WOT than is discharf. 
 the succeeding peace, the consequence is a perpe- 
 tual increase of the debt ; and the ultimate co?t- 
 scquenee must be it* amount to a magnitude which 
 the nation is unable to I 
 
 Tm
 
 30 
 
 The two former of these propositions appear 
 incontrovertible, and the first part of the other 
 follows from them as a necessary consequence. 
 
 The doctrine of our national debt amounting to 
 a magnitude which the nation is unable to bear, 
 will not be easily relished. We are accustomed 
 to hear of our unexhaustible resources, and we 
 have experienced the amount of our debt to an 
 amazing magnitude with less pressure than might, 
 have been expected. 
 
 The observations already made in illustration 
 of the second proposition show how far our re- 
 sources are already exhausted. 
 
 In Part II. Section I. there is given a state- 
 ment of the amount of the funded debt at the 
 commencement of each war, and of each peace, 
 from the Revolution in 1688, to the present time, 
 being a period of 124 years, and the amount of 
 debt, contracted in each period of war, and dis- 
 charged in each period of peace. The number 
 of years of war in that period is 63, and those of 
 peace 61. But the duration of war expenditure 
 compared with that of peace establishment will 
 be found considerably greater than that propor- 
 tion, for, 
 
 1st. Along time is required at the termination 
 of a war, before affairs can be brought to the si- 
 tuation of a peace establishment, and a large ex- 
 pense is incurred during that period. If we add 
 a year of war expenditure to the duration of each 
 
 war
 
 31 
 
 war on this account, \vc shall not go beyond the 
 fact. 
 
 'id. Besides the wars enumerated in the state- 
 ment, the nation has been put to expense by se- 
 veral armaments, when national disputes assumed 
 the appearance of war, although they were adjust- 
 ed with slight or no hostilities. Something of 
 this kind occurred in regard to Spain oftenerthan 
 once in the early part of the 18th century, and 
 again with the same power, in 1770, from a dis- 
 pute concerning the Falkland islands in the south 
 extremity of South America, and in 1790, from 
 a dispute concerning Nootka Sound in the nor- 
 thern extremity of North America. When these 
 circumstances are attended to, the period of war 
 expenditure will be found considerably greater 
 than that of peace establishment. 
 
 The whole debt contracted during 6*5 years of 
 war is L.6S8,129,577j being L. 10, 129,040 annual- 
 ly, at an average. 
 
 The whole debt discharged during (>1 years of 
 peace is L.39,594,305, being L.649,087 annually, 
 at an average. 
 
 Bui the average sums are not those which chief- 
 ly claim our attention. It appears by inspection 
 of the table how rapidly the debt contracted iu 
 the latter part of the period has increased; and 
 future events will more probably assimilate to 
 that than to an earlier period. 
 
 The whole debt contracted during the period
 
 32 
 
 of war is to the whole debt discharged during the 
 period of peace, as 16.12 to I. 
 
 The average debt contracted annually in war 
 is to the average debt paid annually in peace, as 
 15.65 to 1. 
 
 It is maintained by many that there is no cause 
 to be alarmed at the magnitude of the national 
 debt, because the greater part of the national cre- 
 ditors are our fellow citizens, and a debt owing 
 by one part of the community to another is in 
 effect no debt at all. Some go so far as to main- 
 tain that the national debt is a part of our nation- 
 al wealth, and ought to be reckoned, along with 
 the value of our commerce, manufactures, and 
 agriculture, in estimating the amount of the na- 
 tional capital. 
 
 With these last we shall not undertake to argue. 
 Towards the others we shall partly concede the 
 point. But when every reasonable concession is 
 made, enough still remains to place the magni- 
 tude of the national debt in an alarming point of 
 view. 
 
 The large amount which the public have been 
 able to borrow is a proof of a large capital existing 
 among the community, and affording a surplus 
 after the demands of commerce, manufactures, 
 and agriculture, in their actual state, are sup- 
 plied. But it is unwarrantable to affirm that the 
 contraction of debt is necessary in order to find 
 
 employ-
 
 33 
 
 employment to this capital, or that it could not 
 have been invested in various ways to the fur- 
 ther increase of our public wealth in its genuine 
 sources. This would have diffused au additional 
 share of the comforts of life through every rank 
 of society. The taxes, which the public debt re- 
 quires, lessen these comforts. The wars in which 
 money has been expended, if not unnecessary, 
 are certainly unprofitable. The interest of the 
 public debt is, for the greater part, drawn from 
 the profits of the industrious part of society, and 
 paid to the idle and luxurious. It is drawn from 
 the merchant, the manufacturer, the farmer, and 
 paid to the stockholder. The amount so drawn 
 may be augmented till it occasion the ruin of 
 those who pay it, and involve the whole commu- 
 nity in distress and confusion. 
 
 Perhaps some think, though they do not ven- 
 ture to say, that matters may be restored, by 
 means of a public bankruptcy : and that this na- 
 tion, after such a measure, will retain the same 
 degree of internal wealth, and support the same 
 strength and importance in its relations to foreign 
 States as if do national debt had ever existed. — 
 It will not be necessary to enter into a long refu- 
 tation of this opinion. The extent of distress at- 
 tending a public bankruptcy, whether brought on 
 systematically or overtaking us as the nee 
 
 consequence of our being overwhelmed with the 
 
 magnitude of our debt, would be so great ; the 
 
 present
 
 34 
 
 present overthrow of every thing valuable so 
 compleat ; and their future extrication so uncer- 
 tain, that we can hardly conceive a greater pub- 
 lic evil. Among its probable consequences we 
 may reckon internal insurrections, and foreign in- 
 vasions by rival or hostile nations, taking advan- 
 tage of the time of our distress and weakness. 
 
 Every friend to Britain, every friend to huma- 
 nity, must deprecate such an event. And a pro- 
 per sense of the calamities in which it would in. 
 volve us, should keep us at a cautious distance 
 from the verge of so dreadful a precipice. 
 
 " Does the circumstance of our creditors be- 
 '* ing our fellow citizens afford no relief to the 
 " magnitude and burthen of our national debt, 
 " and are we in the same situation, as if we were 
 *' indebted to foreigners V* We do not affirm so. 
 So long as public faith is maintained, there are 
 two ways in which the burthen of our debts is 
 alleviated by having our countrymen for our cre- 
 ditors. 
 
 1st. A part of the taxes raised for the payment 
 of interest, and also for other purposes, falls upon 
 the stockholder, and this part is more consider- 
 able as the national debt increases, and bears a 
 greater proportion to the whole of the national 
 capital. 
 
 2d. The expenditure of the stockholder may 
 in some measure increase the profit of the indus- 
 trious citizen. 
 
 But
 
 35 
 
 But allowing for these advantages, still, the 
 greater part of the burthen falls upon the indus- 
 trious, and it receives only a very partial relief 
 from any advantage resulting from the expendi- 
 ture of the idle. 
 
 It is argued by those who still retain the gene- 
 rally exploded opinions concerning money, that 
 all the money raised in taxes, at least all that 
 comes to the stockholder, is spent among those 
 who pay it, and that therefore it is no loss to 
 them. This is no less absurd than the defence of 
 a house-breaker, who being convicted of carrying 
 off a merchant's money, should plead that he did 
 him no injury, for the money or part of it would 
 be employed in purchasing the commodities he 
 dealt in, upon which he would receive a profit. 
 
 Were a national bankruptcy ever to take place, 
 perhaps less evil might attend it if our creditors 
 were foreigners. It would not in that case oc- 
 casion internal distraction and convulsion. The 
 evil to be dreaded would be war with the injured 
 nations. And as we would retain our full na- 
 tional strength, and our resources would then be 
 unincumbered with debt, they might not find il 
 prudent to attack us. However, as we hold a 
 breach of national faith in detestation, we recoi- 
 led with pleasure, that the far greater part ofoui 
 creditors are our fellow citizens.' 
 
 Ju part of the foregoing argument we have 
 
 spoken 
 
 * Sec Nou in
 
 spoken of the industrious citizen and the stock- 
 holder as being separate persons, and, in some 
 respects, of opposite interests. In many indivi- 
 duals these characters are blended : But, in most 
 cases, the one or the other character predomi- 
 nates, and if, in a few, they be nearly equally ba- 
 lanced, it does not affect the general argument. 
 
 IX. The only effectual remedies to this danger are 
 the extension of the relative length of the periods 
 of peace ; frugality in the peace establishment; 
 lessening of the 'war expenses ; and increase of 
 taxes, whether permanent, or levied during rcr/r. 
 
 As the object of the present inquiry relates to 
 our national revenue, debt, and resources, we 
 shall avoid, as far as possible, the colateral subject 
 of entering into an examination of the necessity 
 or rashness, the expediency or inexpediency, the 
 justice or injustice, of the wars in which we have 
 been engaged. If the result of our inquiry 
 should be, that we are not able for another cen- 
 tury to carry on our warlike system in a manner 
 similar to that which we have done in the period 
 above reviewed, the rational inference is that we 
 should engage in wars with much circumspection, 
 and terminate them as soon as can be done with 
 safety. 
 
 If nations could derive wisdom from past ex- 
 perience,
 
 37 
 
 perience, and from the judgment which is formed 
 of many former wars, now that the passions which 
 excited them are subsided, much might be urged 
 in favour of a pacific system. It will be admitted 
 that we have frequently engaged in war for trivial 
 or unattainable objects — that the objects have 
 generally not been attained — that, under pretence 
 of guarding against distant and improbable dan- 
 gers, we have incurred present and imminent ones 
 — that passion and national pride, rather than ra- 
 tional views of national interest, have been often 
 the ruling principles of our public conduct — that, 
 as we have engaged in war rashly, we have perse- 
 vered in it with obstinacy, and rejected offers of 
 pacification more favourable than those which we 
 were afterwards under the necessity of accepting. 
 The view we entertain of the war of the present 
 day is seen through a different medium. Every 
 thing valuable to us as men and as a nation is at 
 stake — our national prosperity, our national ho- 
 nour, our national existence — our liberties and 
 lives. No exertion can be too great. 'Hie power 
 of our enemy is so formidable, and his ambition 
 so insatiable, that we have no alternative but to 
 prosecute the war with tin* utmost vigour, till we 
 lay him prostrate at our feet No pressure of in- 
 creasing burthens is to be regarded ; no dread of 
 exhausting our resources entertained. If he make 
 repeated overtures of pacification, they arc to be 
 considered as insidious, and rejected with scorn. 
 
 While
 
 33 
 
 While these passions prevail, any arguments 
 against our belligerent conduct, whether drawn 
 from past experience, or from a cool view of pre- 
 sent circumstances, will be urged in vain. As 
 the judgment we now form of the measures of 
 our ancestors is different from theirs, it may hap- 
 pen that the judgment formed of the measures of 
 the present day by posterity, or by the younger 
 part of our fellow citizens, when in advanced life, 
 may be different from ours. 
 
 Suppose the present war brought to a termi- 
 nation in a manner that left our situation in the 
 scale of nations nearly the same as it has been for 
 some centuries past, could it be reasonably ex- 
 pected that the succeeding period would be more 
 pacific than the past ? We can hardly expect it 
 would. If reason and past experience were lis- 
 tened to, they have much to urge : but the world 
 is not now in its infancy, and experience has long 
 furnished the same lessons of the inefficacy and 
 destructive tendency of war, in vain. It is like- 
 ly the same passions will involve rival nations 
 again in the calamities of war, upon slight or no 
 grounds. If there be any circumstance likely to 
 assuage the passion for war, it arises from the 
 pressure of public debt, a system peculiar to mo- 
 dern times, the effects of which, when carried to 
 its utmost extent, have not yet been submitted to 
 the test of experience. 
 
 In regard to the public expense during a fu- 
 ture
 
 30 
 
 ture peace, it is generally believed that the state 
 of Europe, under any probable terms which the 
 present war may be concluded by, will be such 
 as may render it necessary to keep up a higher 
 peace establishment than we have hitherto done. 
 In regard to the expense of future wars, it is 
 not in general wise, admitting their necessity or 
 propriety, to be sparing in exertion in those points 
 u In re the contest is likely to be effectually de- 
 cided. Our operations ought to be as prompt and 
 vigorous as we can make them. Neither ought 
 we to be sparing in any expense that contributes 
 to the health and comfort of the soldier, the care 
 of the sick and wounded, the comfortable provi- 
 sion for the worn-out and disabled. But there 
 are other points in which, without enfeebling na- 
 tional exertion, or without encroaching on the 
 demands of humanity, economy may be properly 
 practised. The following questions in regard to 
 the expenses of past wars may be pro] 
 Have there been no unnecessary and ineffectual 
 expeditions undertaken ? Have not considerable 
 armies been kept in places where they could be 
 of little or no use ? Has there been no lavish ex- 
 penditure in fortifications and barracks? Has 
 not the system of increasing the number of our 
 foreign colonies, and consequently the expense 
 of establishments and garrisons, been followed to 
 the utmost extent, and in quarters where it did 
 not weaken our enemy ; and where, by employ- 
 ing
 
 40 
 
 ing a part of our disposeable force, it weakened 
 our exertions in points of more importance ? Have 
 the national expenses been conducted with all 
 prudent frugality ? or have not enormous fortunes 
 been amassed by public contractors ? have not 
 large sums been retained for long periods of time 
 in the hands of public accountants ? and have not 
 large sums been ultimately lost by the insolvency 
 of these accountants, from whom sufficient secu- 
 rity had not been taken ? Have not large subsi- 
 dies been granted to foreign powers whose fide- 
 lity we had just cause from experience to distrust, 
 and who actually proved unfaithful ? 
 
 Most of these questions will be generally an- 
 swered in the affirmative of misconduct : and yet 
 we find the estimates of the expense of each suc- 
 ceeding year are formed on a larger scale ; that 
 the execution generally exceeds the estimate ; and 
 that motions for inquiry into the public expendi- 
 ture and correction of abuses, are generally dis- 
 couraged j and that even where abuses in public 
 office are admitted, speedy and effectual measures 
 are not taken for their correction. 
 
 X. li
 
 41 
 
 X. //' the three former of these remedies be imprac- 
 ticable, the last affords our only resourcfi By 
 increasing the xcar taxes, the sum required to be 
 raised by loan is lessened. By increasing the to res 
 in time of peace, the sum applicable to the dis- 
 charge of debt is increased. These measures 
 may be followed to such an extent, that the 
 savings in time of peace may he brought to an 
 equality with the surplus expenditure in time of 
 :car, even on the supposition that (he periods of 
 their relative duration shall be the same for cen- 
 turies to come that they have been for a century 
 past. 
 
 The difficulty and danger of a further increase 
 of our taxes have been already considered. Every* 
 new imposition, as we approach the limit of taxa- 
 tion, becomes more oppressive and more unpro- 
 ductive. But if we cannot, or will not, adopt 
 more frugal or more pacific measures, there is no 
 alternative but an increase of our taxes to the ex- 
 tent above mentioned : And, if we cannot bear 
 this increase, it is impossible to escape national 
 bankruptcy. 
 
 We are far advanced to the utmost extent to 
 which taxation can be carried : But we have also 
 gone far towards defraying our annual expenses 
 by money raised within the year. During the 
 last ten years, or thereby, though we have been 
 engaged in a war of unprecedented expense, the 
 o amount
 
 u 
 
 amount of our taxes has been greater than the 
 expense of the war, but insufficient to answer, 
 along with that expense, the interest of the debt 
 formerly contracted. Taxation is now carried, 
 perhaps, as far as is necessary, upon the supposi- 
 tion that the intervals of peace in future were 
 equal to the time of war. We have now been en- 
 gaged in war for upwards of twenty years, with 
 scarcely any interval, and without having ap- 
 proached to the ostensible object for which it was 
 undertaken ; and some maintain, that since the 
 former system ot Europe is now dissolved, there 
 is no safety for us but in perpetual war. These, 
 if they were consistent, would perceive the ne- 
 cessity of raising our taxes to the amount of our 
 full expenditure. We reprobate the idea of eter- 
 nal war as barbarous and impracticable : But if 
 we have still the prospect of long protracted war, 
 prudence requires us to raise our taxes to the 
 measure of our expenditure ; which, however se- 
 vere a pressure it may occasion at present, must, 
 if deferred, occasion a still heavier pressure at a. 
 future period, when our public debt is further 
 accumulated. 
 
 So long as the practice was followed of defray- 
 ing almost all the war expenses by loans, and im- 
 posing taxes only for the payment of interest, the 
 burthens of the war were so lightly felt, that the 
 national promptness to engage in war was scarce- 
 lv under any restraint. Now., when a great part 
 
 of
 
 
 of the expense is raised within the year, and muci 
 of it by direct taxation, the burthen is far more 
 heavy, and this pressure would go far to indis- 
 pose the nation for war, except in a situation 
 where the necessity for prosecuting it was consi- 
 dered as great, or where hostile passions were ex- 
 cited to a more than usual height. Still, however, 
 our burthens are not raised to the measure of our 
 expenditure, and therefore the restraint does not 
 operate so for as it ought. Let us now feel the 
 full extent of the burthens we must ultimately 
 bear, and let it be tried how far our relish for war 
 will continue. Justice to posterity requires this. 
 Every generation has its own struggles and eon- 
 Of these, and of these only, it ought to 
 beta the burthen. We at present labour under a 
 heavy debt contracted by our ancestors, in wars, 
 perhaps unnecessary, certainly arising from causes 
 HOW past and gone, with which we have no con- 
 cern ; and, under a still heavier one, arising from 
 wars waged in our own days, the burthens of 
 which, at the time, we were unwilling to bear. 
 Had the debt, accumulated in these wars not. 
 existed, our present taxes would have been more 
 than sufficient to defray all the expenses of our 
 nt war, wideb led, and lavish- 
 
 K as ir. is conducted; 
 
 XI. When
 
 44 
 
 XL When taxation is carried to the extent mentioned 
 above, the affairs of the nation zvill go on, under 
 the pressure of existing burthens, but without a 
 continual accumulation of debt, which would ter- 
 minate in bankruptcy. So long as taxation is 
 below that standard, accumulation of debt advan- 
 ces, and it becomes more difficult to raise taxation 
 to the proper height. JJ it should ever be carried 
 beyond that standard, a gradual discharge of the 
 existing burthens will be obtained, and these con- 
 sequences will take place in the exact degree in 
 which taxation falls short of, or exceeds the stand- 
 ard of average expenditure. 
 
 XII. The excess of revenue above expenditure is the 
 only real sinking fund by which the public debt 
 can be discharged. The increase of the revenue, 
 or the diminution of expense, are the only means by 
 which this sinking fund can be enlarged, and its 
 operations rendered more effectual ; and all 
 schemes for discharging the national debt, by 
 sinking funds operating by compound interest, 
 or in any other manner, unless so far as they are 
 founded upon this principle, are illusory. 
 
 The progress and discharge of the debt of a 
 nation are regulated by the same principles as 
 those of an individual ; and experience shows, that 
 measures of public finance are often conducted 
 with a degree of imprudence seldom exhibited in 
 
 the
 
 1.) 
 
 the management of private affairs. We may, 
 however, extend our views to a greater length of 
 time, in regard to the former. 
 
 It is true that, upon abstract principles, the 
 smallest sum lent out for compound interest will, 
 in length of time, increase to an indefinite mag- 
 nitude*: But it is obvious, that the improve- 
 ment of money in that way would be limited, at a 
 certain amount, by the want of demand from bor- 
 rowers, and the impossibility of investing it in 
 productive capital of any kind. It is restricted 
 within a much narrower limit by the mutability 
 of human measures, and the actual impossibility 
 of adherence to the same system, conducted by 
 successive trustees through many generations. It 
 is true that if the system were invariably adhered 
 to, the sum would increase at the rate which cal- 
 culation points out, until it was limited by the 
 impossibility of rinding borrowers, or employing 
 it in any profitable manner. 
 
 The system of accumulating a national trea- 
 sure has been long laid aside, and is not likely to 
 be revived. We may therefore dispense with any 
 further consideration of nations storing up wealth, 
 and bestow our attention on the actual case of 
 nations labouring under debt ; sometimes en- 
 deavouring to discbarge it ; often obliged to in- 
 crease it. 
 
 Suppose an individual has contracted a cer- 
 tain
 
 46 
 
 tain extent of debt, and afterwards attains to cir- 
 cumstances which enable him to discharge it. 
 If no oppressive and usurious measures be prac- 
 tised against him by his creditors, and if he pay 
 the interest regularly, the sum which he must 
 pay altogether, before he be clear of debt, is the 
 amount of the money he borrowed, and the sim- 
 ple interest of each portion of the same, from the 
 time of its being borrowed to the time of its 
 repayment. Suppose he borrows L. 10,000, and 
 that for ten years he pays the interest, but no 
 part of the principal. If the rate of interest be 
 5 per cent, he pays during that time L.500 an- 
 nually for interest, or L.5000 altogether ; and if, 
 by a sudden acquisition of wealth, he is able to 
 discharge the debt at the end of ten years, he pays 
 exactly L. 15,000 altogether. But suppose, by an 
 amelioration of his circumstances, he is enabled 
 to pay L.1000 annually to his creditors, for prin- 
 cipal and interest. The first year he pays L.500 
 for interest, and L.500 towards the discharge of 
 the principal. The remaining debt is L.9500, 
 and the interest of this being L.475, if he can pay 
 L.1000 next year, he discharges L.525 of the prin- 
 cipal, leaving a debt of L.8975. The interest 
 of this is L.448 15s. and next year, by paying 
 L.1000, he discharges L.551 5s. of the principal, 
 and reduces the debt to L.8423 15s. If he con- 
 tinue to act in this manner, the whole debt will 
 be discharged in about 14\ years; and the whole
 
 
 mm winch lie pays, including the L.50uo paid 
 dnring tlie lirst 10 years, is L.19,250 neatly, be- 
 ing the amount of the principal, of 10 years inte- 
 rest on L. 10,000, of 1 1 years interest on L.9500, 
 of 12 years interest on L.8975, of 13 years inte- 
 rest on L.8423 15s. and so on ; altogether, the 
 principal, together with the simple interest of 
 each portion of the same, from the time that the 
 debt was contracted, till the time that portion 
 was repaid. If he can only spare L.750, and 
 therefore discharge L. 250 of the principal the first 
 year, it will require somewhat above 22 years to 
 di s ch a rge the whole ; and if he can only spare 
 L.bOO and therefore discharge L.iOO of the prin- 
 cipal the first year, it will require 37 years. In 
 ail these cases, it is the surplus of L.500, of 
 L.250, or of L.IOO, which the debtor can spare 
 above the interest, that enables him to discharge 
 ilie principal. 
 
 Instead of conducting the business in this man- 
 ner, he may pay only the L.500 of interest to his 
 creditors and lend out the other L.500 at interest, 
 and lend again L.500 more at the end of the next 
 year, and so on, accumulating the sums lent bv 
 compound interest, till it amount to L.1(),000, 
 and then discharge his whole debt at once. It 
 will requi: h <>* ' 1 /•' vears 
 
 to accomplish this. If he transact the business 
 himself, the second way will lie attended with 
 more trouble, but the result v. ill !v the same. If 
 
 he
 
 48 
 
 he employ an agent to transact the loans, he will 
 be a loser by following the last mentioned me- 
 thod, to the extent of the fees paid for agency. 
 
 If the debtor be able to pay no interest during 
 the first ten years, the creditors will either insist 
 on accumulating the interest with the principal, 
 in the manner of compound interest, or the debt- 
 or must borrow annually from other hands, to pay 
 the interest annually to his original creditors, and 
 must also borrow more each succeeding year, to 
 pay the interest of the debts thus contracted. In 
 either way, his debt at the end of ten years will 
 amount to L.16,289, the interest of which being 
 L.814 9s. an annual payment of L.IOOO would 
 discharge only L.185 lis. of the principal debt 
 the first year, and would require about 35 years 
 to discharge the whole, whether he pay the 
 L.IOOO annually to his creditors to lessen the 
 principal, after payment of the interest, or whe- 
 ther he accumulate the overplus by compound 
 interest till he be able to pay the whole debt at 
 once. 
 
 Substitute millions, or ten millions, for thou- 
 sands, and the above reasoning is equally appli- 
 cable to the public debt of a nation. 
 
 If the debt be ever discharged, w T hich can 
 only be done by a surplus revenue, and if the 
 business be transacted as private affairs are, 
 where the creditor is entitled to no more than 
 the sum lent, together with the interest, the time 
 
 re-
 
 49 
 
 required for the discharge of a public debt will 
 be the same as that for a private one, when the 
 proportion of surplus revenue is the same ; and 
 this holds whether the surplus be paid annually 
 to the creditors, in discharge of part of the debt, 
 ^o far as it will go, or accumulated in a sinking- 
 fund, in the hands of Commissioners appointed 
 for that purpose. 
 
 The who'e sum paid to the public creditor, 
 before the debt be discharged, is equal to the 
 sura advanced by him, together with the simple 
 interest of each portion of the same, from the 
 time it was advanced to the time it is repaid, 
 providing the interest be paid regularly from the 
 time the debt is contracted. But if the pay- 
 ment of the interest be suspended for a certain 
 time after the debt is contracted, then the whole 
 sum paid is equal to the principal debt, together 
 with the compound interest of the same, during 
 I he period of suspension, and the simple interest 
 of each portion of this accumulated sum, from 
 the time it is put in a train of payment, till that 
 portion be paid. 
 
 But the manner in which our public debt is 
 conducted is greatly more unfavourable to its re- 
 payment than in the case of private business. A 
 certain capital in the 3 per cents, or other fund, 
 igned to the public creditor tor every L.100 
 advanced, according to the price of the funds at 
 tin 1 time, and allowing alwayi a profit to the len- 
 h der.
 
 50 
 
 der. He is repaid according to the price of the 
 funds at the time of repayment ; and as the re- 
 payment is in time of peace, when the funds are 
 always much higher than in time of war, the 
 sum repaid is always much greater than the sum 
 advanced, together with the interest. 
 
 There is generally a colateral circumstance in 
 favour alike of the public and private debtor, 
 which was already mentioned in the illustration 
 of the second general proposition, arising from 
 the alteration of the value of money. In regard 
 to either, if the interval between the time of bor- 
 rowing and repaying be considerable, the nomi- 
 nal sum paid is likely to be of less real value than 
 a like nominal sum at the time the debt was con- 
 tracted. 
 
 Neither this advantage which the public debt 
 possesses in common with the private one, nor 
 the disadvantage which the public debt labours 
 under from the above mentioned imprudent man- 
 ner in which it is conducted, has any relation to 
 the argument concerning the inefficacy of the 
 sinking fund. 
 
 Let us next consider the case of a nation en- 
 gaged in war, the expense of which it is unable 
 r unwilling to bear during the year. Suppose 
 the annual expenditure of the war, added to the 
 peace establishment and interest of former debts, 
 exceed the present revenue by 11 millions. 
 That sum must be raised by loan, or additional 
 
 taxes,
 
 01 
 
 taxe3, and should be raised by the lalrer as far as 
 the nation can bear them. 
 
 If no additional taxes be imposed, the annual 
 loans of 11 millions will accumulate against the 
 nation with all the disadvantages of compound 
 interest. 
 
 If a sum less than the interest be raised by ad- 
 ditional taxes, the loans will accumulate in some 
 degree with the disadvantage of compound in- 
 terest. 
 
 If a sum equal to the interest be raised by ad- 
 ditional taxes, the nation will be burdened at the 
 conclusion of the war, or at any ]k riod of its con- 
 tinuance, with a capital debt equal to the amount 
 of the loans, and with additional perpetual taxes 
 equal to the amount of the simple interest of the 
 same. 
 
 Suppose the war to continue ten years, and 
 the loans to be raised in the 5 per cents, at par. 
 The whole sum borrowed will be 110 millions, 
 and the interest of each loan being L.550,000, 
 the whole additional interest will be L.5,500,000. 
 
 The surplus of the revenue, now burthened 
 with this additional sum, above a peace establish* 
 ment, is the only fund from which this debt can 
 be discharged during a subsequent peace. 
 
 If a sum greater than the interest of the loan 
 
 be raised by additional taxes, there will be less 
 
 accumulation of capital ; and the further taxation 
 
 IS carried, the more accumulation i< restricted: 
 
 H 2 but,
 
 but, until taxation is carried so far as to defray 
 the expenses within the year, there will be a cer- 
 tain accumulation ; and till it be carried so far as 
 to confine the accumulation within the limit that 
 may be reasonably expected to be discharged in 
 a subsequent peace, the system will prove ulti- 
 mately ruinous. 
 
 The restraint given to the accumulation of 
 debt in any period, short or long, depends alto- 
 gether upon the excess of the additional taxes 
 above the interest of the loans ; and it makes no 
 difference whether they be considered simply as 
 war taxes, or permanent taxes, according to fu- 
 ture exigencies ; or whether they be connected 
 with a sinking fund of any kind. 
 
 Suppose L.6 10,000 is raised annually by ad- 
 ditional taxes ; as this does more than cover the 
 interest of the loan, and part of it may be applied 
 to the expense of the war, a less loan than 
 L. 11,000,000 will be sufficient, and the loan will 
 be less in each succeeding year, so long as 
 L. 11,000,000 is the sum wanted. 
 
 The progress of the funded debt will be as 
 follows, 
 
 The first year L.550,000* from the additional 
 taxes being applied in payment of the interest of 
 
 the 
 
 * All the calculations in this inquiry, unless when otherwise 
 mentioned, are made at 5 per cent, interest ; the .'i per cent, funds 
 are valued at 60, the 4 per cents, at 80_, and the 5 per cents, at par
 
 53 
 
 the loan, there will be a surplus of L.(30,000 ap- 
 plicable to the service of the second year. 
 
 The loan required the second year will there- 
 fore be L. 10,940,000, and the amount of the loans, 
 in the two first years, L.21, 940,000, the interest 
 of which is L. 1,097,000, and as L.610,O00 more 
 of additional taxes are imposed the second year, 
 or L. 1,220,000 in these two years, there will be a 
 surplus, after paying the interest, of L. 123,000 ap- 
 plicable to the service of the third year, and the 
 loan required for that year will be L. 10,877,000. 
 
 The amount of loans during these three years 
 ifl therefore L.32,8 17,000, the interest thereof, 
 L. 1,640,8.50, the additional taxes imposed dur- 
 ing these three years, L. 1,830,000, affording a 
 surplus of L. 1 89, 1 .50, applicable to the service of 
 the fourth year. 
 
 The progress during ten years is exhibited in 
 the following Table. 
 
 Years, 
 
 1st 
 
 2.1 
 3d 
 +th 
 
 5 th 
 0th 
 
 7th 
 8th 
 9th 
 I Oth 
 
 Loan each 
 
 year. 
 
 Amount ot 
 loans 
 
 10,940,000 
 10,877,000 
 10,8 1 0,l5d 
 10.741,393 
 
 10,51 I, iso 
 
 I 1,0 O, 
 
 32,817 
 ♦3.627 
 
 B6,l M 
 
 000 
 000 
 
 ooo 
 
 070 
 
 529 
 
 Amount I Amount 
 interest, add. taxes 
 
 6+0 
 
 : i- 
 
 307 
 
 • 
 
 000 
 
 000 
 
 000 
 
 Surplus 
 
 80,000 
 123,000 
 
 108.1 15 
 $72,947 
 
 0(11,594 
 
 Thui
 
 54 
 
 Thus, at the end of ten years, when additional 
 taxes are imposed annually to the extent of 
 L.6 10,000, the amount of funded debt is 
 L. 106,906,529, instead of L. 110,000,000 which 
 it would have been if the additional annual taxes 
 had been only L.550,000. 
 
 If, instead of conducting the business in this 
 manner, we trace the effects of the system, actu- 
 ally followed, of transferring L. 1,200,000 annu- 
 ally from the public revenue to Commissioners 
 appointed for the reduction of the national debt, 
 by whom also the interest of the sums redeemed 
 are applied each succeeding year, in addition to 
 the above mentioned sum, for its further redemp- 
 tion, the result will be found exactly the same. 
 
 As L. 11,000,000 is annually wanted to com- 
 pleat the war expenses, and L. 1,200,000 to be 
 transferred to the Commissioners, the annual loan 
 must be L. 12,200,000, and the amount of the 
 loans in ten years, L. 122,000,000. 
 
 The first year, L. 1,200,000 of the debt is re- 
 deemed, leaving L. 11,000,000 unredeemed. 
 
 The second year, L.60,000, the interest of 
 this redeemed debt being added to the 
 L. 1,200,000, the sum applied by the Commis- 
 sioners for the redemption of the public debt is 
 L. 1,260,000, and this redeeming an equal sum 
 in the 5 per cents, the whole sum redeemed 
 the two first years is L.2,460,000, and the loans 
 of these years being L.24,400,000, the unre- 
 deemed
 
 deemed debt at the end of the second year is 
 L. 2 1,940,000. 
 
 The interest of the redeemed debt now 
 amounts to L. 123,000, which being added to 
 L. 1,200,000 gives L. 1,323,000, applicable to the 
 redemption of debt. The whole sum borrowed 
 the first three years is L.36,600,000; the whole 
 sum redeemed, L.3,783,000 ; and the unredeem- 
 ed debt L.S2,8 17,000. 
 
 The progress during ten years is as follows : 
 
 Years. 
 
 1st 
 
 Id 
 
 3d 
 
 -ith 
 5th 
 
 6th 
 7th 
 
 Bdi 
 Mi 
 
 1 10th 
 
 Loan each 
 year. 
 
 12,200,000 
 12,200,000 
 1 2,200,000 
 12.200,000 
 1 2,200,000 
 12,200,000 
 12,900,000 
 12,200,000 
 12,200.1 
 
 OOJ122 
 
 Amount of 
 Loans. 
 
 Debt re- 
 deemed 
 
 each >« ir. 
 
 ,200,000 
 ,400,000 
 ,000,000 
 ,H00,000 
 
 ,ooo,oooj 1 
 ,200,000! I 
 
 ■ 
 
 ,600,000 1 
 
 800,000 1 
 000,000. 1 
 
 .200,000 
 £60,000 
 
 389,150 
 
 ,458,607 
 
 ,."31,5.-8 
 ,608, 1 1 6 
 
 ,77'.V>i7 
 ,861,594 
 
 Amount of 
 debt re- 
 deemed 
 
 Interest 
 
 on debt 
 
 red 
 
 1,200,000 
 2,460,000|1 
 S,785,OOC 
 5.172.15C 
 6,630,757 
 8,162,895 
 0,770,11 
 1 1,458,930 
 13,231,877 
 15,095,471 
 
 60,000 
 23,000 
 
 89,150 
 
 331,538 
 
 108,115 
 
 ,520 
 
 572,947 
 
 661,594 
 
 488, 
 
 maiuing un- 
 redeemed. 
 
 11,000,000 
 21,940,000 
 32,817,000 
 43,627,850 
 54,369,243 
 65,037,705 
 75,629,590 
 86,141,070 
 96^568,1 
 106,906.52! 
 
 Thus it appears that the amount of unredeem- 
 ed debt at the end of ten years, when the system 
 of the sinking fund is strictly followed, is 
 L. 106,906,529, the same as the amount of the 
 debt under equal expenditure and taxation when 
 no sinking fund is established. It is the same 
 every year of that period, and will remain the 
 same for any length of time. The surplus of 
 taxes applicable to the expense of the war on the 
 one system answers to the interest of debt re- 
 deemed,
 
 oO 
 
 deemed, applicable to its further redemption, on 
 the other. 
 
 If, instead of funding in the 5 per cents, at 
 par, the transactions be made in the 3 per cents, 
 at L. 1 66 1 3s. 4d. capital, for L. 100 borrowed (and 
 this is nearly what has been done), the nominal 
 sums funded and redeemed are increased in the 
 proportion of 5 to 3, but no alteration is made 
 in the interest, or the real value of the debt. 
 
 If the L. 11,000,000 required yearly be fund- 
 ed in the 3 per cents, the capital funded is 
 L.l 8,333,333, and if a sinking fund of 1 per 
 cent, on this nominal sum be established for its 
 redemption, the sum required to be raised by 
 additional taxes yearly for that purpose is 
 L.l 83,333. This will have a greater effect in 
 preventing accumulation or increasing the sum 
 redeemed than a surplus of L.60,000 in propor- 
 tion to the sums : But the reasoning adduced in 
 regard to the one is equally applicable to the 
 other. 
 
 We have now examined the supposed effects 
 of sinking funds, in the cases of diminishing 
 debt during peace, and of increasing debt during 
 war, with a degree of prolixity which so clear a 
 subject little required, had not the efficacy of a 
 sinking fund, and omnipotence of compound in- 
 terest been strongly urged by respectable autho- 
 rity, and taken possession of the public mind, 
 
 and
 
 Oi 
 
 and influenced the public measures of finance for 
 a course of years. We trust we .have demonstrat- 
 ed their futility. No person ever doubted that 
 increase of taxation, and saving of expenditures 
 are means of retarding the accumulation of debt. 
 We ought to embrace the former as far as we are 
 able, and the latter, as far as safety permits. But 
 the point at issue is, whether, taxation and expen- 
 diture being the same, a sinking fund produces 
 any beneficial effect. 
 
 If a period of peace were protracted till the 
 public debt were discharged, the taxes might and 
 would be diminished to the limit of a peace ex- 
 penditure, for no person now thinks of accumu- 
 lating national treasure for future purposes. If 
 the periods of war and peace be so related, that 
 the debt contracted in the former be discharged 
 in the latter, the amount of the debt vibrates, 
 and this system may go on for an unlimited 
 length of time. But, if more debt be con- 
 tracted every war, than is discharged in the sub- 
 sequent peace (and this has hitherto been the real 
 i and if the accumulation be in a greater 
 proportion than the increase of national wealth, 
 there is a limit beyond which the system cannot 
 be supported. 
 
 I'AUl
 
 PART II. 
 
 HISTORY OF THE PUBLIC DEBT OF GREAT BRITAIN. 
 
 SECTION I. 
 
 Progress and Manner of Conducting the Funded 
 JfebL 
 
 The funding system commenced at the Re- 
 volution. The debt existing at that time was 
 inconsiderable, and not reduced to any regular 
 form. During the war waged by King William 
 against the abdicated monarch, and the king of 
 France who supported his claims, it was found 
 impracticable to raise the requisite sums within 
 the \ear, ami recourse was had to loans; for dis- 
 charging which taxes were imposed, to continue 
 for a limited number of years ; it being expected 
 that tin- produce of these taxes Mould discharge 
 the debts in the periods for which they were 
 granted. These expectations were not realized, 
 and the taxes were afterwards rendered perpetual.
 
 GO 
 
 Loans were also raised during that war on an- 
 nuities for lives, on very high terms, 14 per cent, 
 being granted for single lives, 12 per cent, for 
 two lives, and 10 per cent, for three lives j and 
 the amount of the public debt at its termination by 
 the peace of Ryswick, in 1697, was L.21, 515,742. 
 
 The legal rate of interest at the commence- 
 ment of the funding system was 6 per cent., and 
 it was reduced in the year 1714 to 5 per cent.* 
 The rate of interest granted for the public debt 
 has been often higher than the legal rate : But 
 instead of assigning capital to the public creditor 
 equal to the sum borrowed, and a rate of interest 
 which it could be procured for, according to the 
 circumstances of the times, the practice has ge- 
 nerally been to fix upon a low rate of interest, 
 and assign to the public creditor a capital larger 
 than the sum borrowed. The greater part of the 
 loans has been made in funds bearing 3 per cent, 
 interest on the nominal capital, some in a fund at 
 4 per cent, and some in one at 5 per cent. 
 
 Some loans have been contracted altogether 
 on annuities for lives or years : But most of 
 these annuities, which at present amount to a 
 large sum, have been granted as a colateral ad- 
 vantage to the public creditor, who received the 
 greater part of his recompence in a capital bear- 
 ing interest at three, four, or five per cent. 
 
 Annuities for lives have sometimes been grant- 
 ed 
 * See Note V.
 
 61 
 
 ed upon schemes called Tontines, in which the 
 benefit of survivorship is allowed. The sub- 
 scribers to these schemes appoint nominees, who 
 are divided into classes, according to their ages, 
 and a suitable annuity is assigned to each ; and 
 when some of the lives fail, the amount of the 
 annuities appertaining to each class is divided 
 among the survivors, so long as any remain, or 
 at least till the annuity amount to a large sum, 
 according to the terms of the scheme. 
 
 Tontines seem adapted to the passions of hu- 
 man nature, from the hope every man enter- 
 tains of longevity, and the desire of ease and af- 
 fluence in old age ; and they are beneficial to 
 the public, as affording a discharge of the debt, 
 although a distant one, without any payment. 
 They have been extensively adopted in some 
 foreign countries, but seldom in Britain. The 
 last, and almost the only scheme of this kind now 
 subsisting among us is that of 1789. Although 
 the sum proposed to be raised in this way was on- 
 ly L.l, 002,500, the persons who contracted with 
 Government for the whole were unable to com- 
 pleat it without loss; and an alternative was af- 
 terwards allowed them of a long annuity. • 
 
 The annuities for fixed terms now existing 
 (called Long Annuities) all terminate at the same 
 time, in i860. The first of these was granted in 
 the year 17<>1, being an annuity of L.l tor !»!> 
 
 years, upon every L.100 subscribed to the loan 
 
 of 
 
 * See Note VI.
 
 62 
 
 of L.l 1,400,000 contracted that year, in addition 
 to the permanent annuity of L.3 on a capita] 
 equal to the sum subscribed. Many other an- 
 nuities of this kind have been since granted, 
 and all of them for such periods as to termi- 
 nate at the same time. The amount of these an- 
 nuities for Britain, on the 1st February, 1813, 
 was L.l, 140, 601, and, except what was granted 
 in place of the tontine of 1789, they are all in 
 addition to the perpetual annuities on the capitals 
 of the loans. 
 
 Another colateral advantage has sometimes 
 been granted to the public creditors from lot- 
 teries. Tickets have been granted to the sub- 
 scribers to the loans on terms considered as be- 
 neficial, and instead of paying money to the 
 holders of the fortunate tickets, the prizes were 
 assigned them in capital stock of that kind in 
 which the loan of the year was funded. This 
 method was followed in most of the loans during 
 the seven years war, from 1756 to 1763. During 
 the subsequent peace, the lotteries were several 
 times connected with the schemes adopted for 
 discharging a part of the public debt. In the 
 lottery of 1769, the prizes were paid in money : 
 But during the American war, the- system fol- 
 lowed in the seven years war was revived. The 
 lotteries, from 1777 to 1784 inclusive, were con- 
 nected with the loans, and the prizes funded. In 
 1785, the prizes were paid in money, and the tic- 
 kets sold at a profit to the public ; and this me- 
 thod
 
 
 i hod has been adhered to in all the lotteries since. 
 The profit which the public draws from lot- 
 teries may be considered as a tax on the spirit of 
 gaming, and added to the amount of the other 
 taxes. In order to secure all that can be raised 
 this way to the public, private lotteries are prohi- 
 bited under heavy penalties. But a lottery was 
 granted in 1758 for the benefit of the British Mu- 
 seum, and a few others have been granted since 
 for private purposes. 
 
 Although the public creditor cannot demand 
 payment of the capital debt,* the mode of trans- 
 ferring it, even in small sums, is so conveniently 
 arranged, and the dividends so regularly paid, 
 that it is considered as an eligible property. The 
 value of the funds is liable to considerable fluc- 
 tuation. It depends chiefly upon the proportion 
 between the interest they bear, and the profit 
 which may be obtained by applying capital to 
 other purposes. It is influenced by the plenty 
 or scarcity of capital, and by the amount of the 
 loan required at the time ; and it is impaired by 
 any event which threatens the safety, or weakens 
 the credit of government* It is always much 
 higher in time of peace than in time <>\' war ; and 
 is affected by every event and even by e\ery re- 
 port, in time of war, favourable or unfavourable. 
 False reports are frequently raised by designing 
 people for that purpose. 
 
 I . 
 * The Loyilty Loan is an exceptko
 
 04 
 
 In the early part of the funding system, a se- 
 parate account was kept of each loan, and of the 
 tax imposed for payment of the interest. This 
 method was afterwards found inconvenient, as 
 the produce of some of the taxes fell short of the 
 expected sum, while that of others exceeded it, 
 and the multiplicity of funds produced confusion. 
 This gave occasion, soon after the peace of 
 Utrecht, to unite the various branches of the re- 
 venue into a few funds. The Aggregate Fund 
 was established in 1715, and the South Sea and 
 General Funds in the following year. To each 
 of these funds a variety of branches of revenue 
 were appropriated, comprehending altogether the 
 whole revenue existing at the time, except the 
 land-tax and malt-tax of sixpence per bushel, 
 and the branches then appropriated to the sup- 
 port of the civil government:* and each of them 
 were charged with the payment of certain annui- 
 ties then due by the public. The united surplus 
 of these funds formed the basis of the sinking 
 fund established in 1716, a particular account of 
 which will be given afterwards. 
 
 The funded capital has also been increased in 
 a manner different from loans. Exchequer and 
 Navy Bills have been funded to a great extent : 
 That is, instead of paying these bills, capital in 
 one or more funds has been assigned to the hold- 
 er, on such terms as they were willing to accept of. 
 
 The 
 * See Note VII.
 
 05 
 
 The amount of the National Debt at the Revolu- 
 tion, and at the commencement and termination 
 of each war since, has been as follows:* 
 
 National debt at the Revolution, - 1689 
 1 — at the peace of Ryswick, - - 1697 
 
 — at the commencement of the war, 1701 
 
 — at the peace of Utrecht, - - 1714 
 
 — at the commencement of the war, 1740 
 Funded debt at the peace of Ai x la Chapelle, 1748 
 
 — at the commencement of the war, 1756 
 
 — at the peace of Paris, - - 1763 
 including what was contracted in the sub- 
 sequent years to discharge arrears 
 
 — at the commencement of the Ameri- 
 can war, - - - - 1775 
 
 — at the peace of Versailles, - - 1783 
 including what was funded in the subse- 
 quent years. 
 
 And this being reduced by purchases made 
 by the Commissioners for the redemp- 
 tion of the national debt, there remained 
 unredeemed at the commencement of the 
 war, ... - - 1793 
 
 Funded debt at the peace of Amiens, 1 S02 
 including the loan of that 
 year, - - L 567,008,978 
 
 Of which redeemed, - 67,225,915 
 
 There was no reduction of the national 
 debt during the short peace which fol- 
 lowed the treaty of Amiens. 
 
 ! undid debt, 1st February, 
 
 L.8 12,<>I3,I 35 
 
 i )\ which redeemed, or con- 
 verted into life annuities, 2I2.+22.9 38 
 
 181 
 
 L.1,0 5 
 21,515,7+2 
 16,394,701 
 53.6S 1,070 
 46,449,568 
 78,293,313 
 72,289,673 
 133,959,270 
 
 1 2**903,254 
 233,231 
 
 227,08 
 
 
 The 
 
 ' Tlierc arc differences in tlic published statements of the amount of th 
 t-ition.il .lil.t .ii periods; but not of i uch magnitude as to aflVr 
 
 :il view of the
 
 66 
 
 In this statement the value of Annuities granted for years c* 
 
 lives is not included. 
 
 Debt at the Revolution, - 
 
 Contracted in war commencing 1689, of 8 years, 
 
 -r- in war commencing 1701, of 13 years, 
 
 — in war commencing 1740, of 8 years, 
 
 — in war commencing 1756, of 7 years, 
 
 — in war commencing 1775, of 8 years, 
 
 — in war commencing 1793, of 9 years, 
 
 — in war commencing 1 803, 
 
 to 1st February 1813, 10 years, 
 
 Years of war, 
 
 Debt paid in peace of 
 
 — — in peace of 
 
 — — in peace of 
 
 — — in peace of 
 
 — — in peace of 
 
 — — in peace of 
 
 Years of peace 
 
 Debt at the Revolution, 
 Debt contracted in seven wars, 
 
 1697, of 4 years, 
 1714, of 26 years, 
 1748, of 8 years, 
 1765, of 12 years, 
 1783, of 10 years, 
 1802, of 1 year, 
 
 . - 61 
 
 Debt paid in five periods of peace, 
 
 Funded debt 1st February 1815, including what is 
 transferred for land-tax, - 
 
 1,054,925 
 
 Annual 
 average. 
 
 20,460,8171 2,557,602 
 57,286,575 2,868,185 
 31,845,745 5,980,468 
 61,669,597 8,809,942 
 115,267,99414,408,499 
 271,765,91550,195,990 
 
 99,857,154 9,985,713 
 
 638,129,577(10,129,040 
 
 5,121,041 
 7,251,508 
 6,005,640 
 10,996,016 
 10,242,100 
 
 1,280,260 
 278,155 
 750,455 
 916,554 
 
 1,024,210 
 
 59,594,505 
 
 649,087 
 
 1,054,925 
 638,129,577 
 
 
 639,184,502 
 59,594,505 
 
 599,590,197 
 
 The
 
 
 i he terms of the Loans, and amount of money 
 borrowed, and capital funded, during the se- 
 ven years war, were as follows ; ' 
 
 rowed. 
 
 1755 At 3 percent, by lottery, 
 
 1756 At 3^ per cent redeemable after 
 
 1 5 years, ami redeemed in 17 7 1 
 Also at 3 per cent, by lottery, 
 W57 At 3 percent, with an addition*! 
 life annuity of L.l. 2s. od. per 
 L 100 borrowed, 
 175S At 3i per cent, reduced, in 1782 
 to 3 per cent. 
 Also at 3 per cent, by lottery, 
 
 1759 At 3 percent allowing L.l 15 ca 
 
 pital for L. IOO borrowed, 
 
 1760 At 4- per cent, for 21 years, and 
 
 then reduced to 3 per cent, and 
 allowing L. 1 03 capital for L. 1 00 
 borrowed, 
 
 1761 At 3 percent, with an additional 
 
 annuity of L.l. 2s. 04. tor 03 
 years, 
 Also at 3 per cent, by lottery, 
 
 1762 At 4 percent, irredeemable for I 'J 
 
 years, and then reduced to 3 
 per cent, with an annuity ol 
 L.l for 98 year* 
 1"G3 At 4 per cent, with the profit ol 
 a lottery ticket, valued at L 1 
 for L 100 borny 
 Also at 4- per cent, by lottery, 
 
 And the following additions wtrt 
 
 lO the falMpd debt, aftei 
 
 th ■ piace, ti> (litharge the ar 
 
 U.iT 
 
 \ bills fended 1 765, 
 Loan of 171 cent. 
 
 Loan of 17' 
 Loan of 1763, at 3 per cent. 
 
 K 2 
 • S«« Rou VIII. 
 
 1, 500,00* • 
 500,000 
 
 3,000,000 
 
 1,500,000 
 
 500,000 
 
 6,600,000 
 
 3,000,000 
 
 11,4-00,000 
 
 600,000 
 
 1 2,000,000 
 
 2.S00.O00 
 700LOOG 
 
 I 
 
 fun ' ■' 
 
 900,000 
 
 1,500,000 
 
 3,000,000 
 
 4-, .5 00,000 
 500,000 
 
 7,590,000 
 
 S. 24-0,000 
 
 1 1 , 100.000 
 
 1 2,000,000 
 
 2,800,000 
 
 ;...'3o,oo( 
 
 1,M%00< 
 
 19,J82,OO0f50,fl 
 
 The
 
 08 
 
 The loans during the American war were* 
 
 (776 At L. 107. 10s. in the 3 per cents, 
 
 1777 At par in the 4 per cents, with 
 
 an additional annuity of 10s 
 for ten years, 
 
 1778 At par in the 3 per cents, with 
 
 an annuity of L.12. 10s. for 
 30 years, or for lives, in the op- 
 tion of the subscribers, 
 
 1779 At par in the 3 per cents, with 
 
 an annuity of L.3. 15s. for 29 
 years, or for lives, 
 
 1780 At par in the 4 per cents, with 
 
 an annuity of L.l. 16s. 3d. for 
 80 years, - 
 
 1781 At L.l 50 in the 3 per cents and 
 
 L.25 in the 4 per cents. 
 
 1782 At L. 100 in the 3 per cents, and 
 
 L 50 in the 4 per cents, with 
 an annuity of 17s. 6d. for 
 years, - - - 
 
 1783 At" L.l 00 in the 3 per cents, and 
 
 L.25 in the 4 per cents, with 
 an annuity of 13s. 4d for 7 
 years, - 
 
 1 7 S 4 At'L.100 in the 3 per cents, and 
 L.50 in the 4 per cents, with 
 an annuity of 5s. 6d. for 7.5f 
 yoars, ... 
 
 L 2000 being deducted for the 
 failure of a subscriber. 
 
 1784 Navy and victualling bills fund- 
 
 ed in the 5 per cents, at 
 L.107. 10s. 6d. per cent. - 
 17S5 Navy, victualling, and transport 
 bills, and ordnance debentures 
 funded in the 5 per cents, al 
 L 1 11. 8s. per cent. - - 
 
 Sums bor- 
 rowed. 
 
 2,000,000 
 5,000,000 
 
 6,000,000 
 7,000,000 
 1 2,000,000 
 
 32, 
 
 000,000 
 000,000 
 
 13,500,000 
 
 1 2,000,000 
 
 6,000,000 
 5,500,000 
 
 6,397,90C 
 9,865,942 
 
 Capital 
 funded. 
 
 2, 1 50,000 
 5,000,000 
 
 6,000,000 
 
 7,ooo,ooe 
 
 12,000,000 
 
 32,150,000 
 21,000,000 
 
 20,250,00C 
 
 15,000,000 
 
 8,998,000 
 
 97,398,000 
 6,879,342 
 
 10,990,651 
 
 91,763,842 115,267,993 
 The 
 
 See N*te IX.
 
 69 
 
 The whole funded debt of Great Britain in 1788 
 was L.23 8,23 1,218 
 
 Annuities for terms of years, or for lives, - L.1,193,674 
 At that time the Sinking Fund, now existing, was establish- 
 ed, and part of the funded debt, has been since annually re- 
 deemed. In order to exhibit a distinct view of this subject, we 
 shall first state the progress and present amount of the funded 
 debt, and charges on the same, without regard to the redemp- 
 tion; and then the extent of the redemption, and the amount 
 now unredeemed. 
 
 At the commencement of the war in 1793, the capital 
 funded debt was the same as in 17S6, and consisted of 
 
 3 per cents. 
 
 - 
 
 - 
 
 L.187, 61 1,255 
 
 4 per cents. 
 
 - 
 
 - 
 
 32,750,000 
 
 5 per cents. 
 
 
 
 17,869,993 
 
 Amount funded debt,* 
 
 L.238,23 1,248 
 
 Of which redeemed by the Sinking 
 
 Fund, in 
 
 
 3 per cents. 
 
 - 
 
 - 
 
 10,242,100 
 
 Unredeemed debt, 
 
 L.227,989,148 
 
 Interest on 3 per cents. 
 
 L.5,628,338 
 
 on 4 per cents. 
 
 - 
 
 - 
 
 1,310,000 
 
 on 5 per cents. 
 
 
 
 893,499 
 
 Amount interest, 
 
 L.7,831,837 
 
 And the annuities, to which some addi 
 
 tions were 
 
 
 made since 1786, were 
 
 
 
 
 Short annuities which expire in 1305 
 
 L.53, 655 
 
 
 _ _ _ 
 
 in I80d 
 
 7,776 
 
 
 — — — 
 
 in 1807 
 
 14,892 
 
 
 — — — 
 
 in isos 
 
 418,333 
 
 
 r,650 
 
 Carried forward, 
 See a suterotnt of ihe »ev«ral fundi; ;n whkfa this tnniul whs invested, 
 
 in T.bl. I.
 
 Brought forward, - L.494,656 L 7,831,837 
 
 Long annuities which expire in 1860 704,740 
 
 L 
 Tontine 6 Geo. III. - 1*540 
 29 Geo. III. - 1S,442 
 
 .1,199,396 
 94,474 
 
 
 L. 18,982 
 Annuities for lives,* - 75,492 
 
 
 
 1,293,870 
 116,127 
 
 Management of capital debt, 
 of annuities, 
 
 L.98,869 
 17,258 
 
 
 - 
 
 Interest, annuities, and management, 
 Deduct interest redeemed, 
 
 L.9,241,834 
 307,263 
 
 Remainder unredeemed, 
 
 £.8,934,571 
 
 Since the commencement of the war, loans have been con- 
 tracted every year, and Exchequer and Navy Bills have been 
 frequently funded A part of most of the loans since 1797 
 has been for the use of Ireland, and in 1809 a part was for 
 Portugal. Some loans have been transacted in Britain for 
 Ireland, which though not connected with any British loan, are 
 guaranteed by Britain, and the interest payable there. The 
 particulars of these operations are as follows : 
 
 1793. 
 A. Loan, sum raised, - - L 4,500,000 
 
 Sum funded at the rate of L.100 in 3 per 
 
 cent. cons, for L.72 raised, - L.6,250,000 
 
 Interest, - L. 1 87,500 
 
 Management L 450 per million, - - 2,812 
 
 Total charge, - L 190,312 
 
 1794- 
 
 See Note XVII.
 
 71 
 
 1794. 
 A. Loan, sum raised, L. 11,000,000 
 
 funded at L.100, in 3 per cent. cons. - L. 11,000,000 
 and L.25 in 4 per cent. cons. - - 2,750,000 
 
 Total funded, L. 13,7 50,000 
 
 Interest of 3 per cents. .... L.3 30,000 
 of 4- per cents. ... - 110,000 
 
 L.440,000 
 And an annuity of 1 Is. 5d. for 66+ years, - 62,792 
 
 Management of capital, at L.450, L.6, 1 87 
 and for long annuities, - - 706 
 
 6,S94 
 
 Total charge, L.509,6S7 
 
 C. Navy and victualling bills funded, amount L.1,907,451 
 
 Sum funded at L.101 in 5 per cent. cons. - L. 1,926,526 
 
 Interest, ------ L.96,326 
 
 Management at L.450, ... 867 
 
 Total charge, L 97,193 
 
 1795. 
 D. Loan, sum raised, - L. 18,000,000 
 
 Funded at L. 100 in 3 per cent. cons. - L. 18,000,000 
 and L.33. fis. 8d. in 4 per cent. cons. 6,000,000 
 
 Total funded, L. 24,000,000 
 
 Interest in 3 per cents. - . - L.540,000 
 
 in 4 per cents. - - - 240,000 
 
 Carried forward, - L,780,000 
 
 And
 
 2 
 
 Brought forward, ... L.780,000 
 
 And an annuity of 9s. 6d. for 65i years, - 85,500 
 
 Management of capital, at L.450, L.l 0,800 
 and for long annuities, 962 
 
 11,762 
 
 Total charge, L.87 7,262 
 
 E. Navy and victualling bills funded, amount L.l, 490,647 
 Sum funded at L.l 08 in 5 percent, cons. L 1,609,898 
 
 Interest, L.S0,495 
 
 Management at L.450, ... 724 
 
 Total charge, L.81,219 
 
 F. Loan, (Dec.) sum raised, - - - L. 1 8,000,000 
 
 Sum funded at L.120 in 3 per cent. cons, and 
 
 L.25 in 3 per cent, reduced, L 26,095,800 
 
 N. B. A deficiency by non-payment of - 4,200 
 
 L.26, 100,000 
 
 Interest, L.782,874 
 
 And an annuity of 6s. 6d. for 64j years, 58,500 
 
 Management of capital at L.450, L.l 1,743 
 and for long annuity, 658 
 
 12,401 
 
 Total charge, L.853,775 
 
 1796. 
 G. Loan. Sum raised, - L.7,500,000 
 
 Sum funded at L.120 in 3 per cent. cons, and 
 
 L.25 in 3 per cent, reduced, - - L. 10,793,825 
 N. B. A deficiency by non-payment of - 81,175 
 
 L. 10,87 5,000 
 
 Interest,
 
 7.5 
 
 Interest! L. 323,81$ 
 
 And an annuity of 5s. 6d. for 63$ years, - 20,582 
 
 Management of capital at L.450, L. 4,857 
 
 and for long annuities, 231 
 
 5,089 
 
 L.349,486 
 
 II. Navy and victualling bills funded, amount L. 4,226, 727 
 
 funded at L.104 in? 1^404,884 
 
 and 1,827,800 funded at L 105 in do. 
 
 according to their dates, 1,919,190 
 
 L. 4,226,7 27 
 
 L. 4,414,074* 
 
 L.220,703 
 1,980 
 
 L.222,639 
 
 OfwhichL.2,39S,927J ,U " aeaat L - ,Ut m 
 I 5 per cent. cons. 
 
 Interest, 
 Management at L.450, 
 
 Tutal charge, 
 
 1796. (Nov.) 
 I. Navy and Exchequer Bills funded.* 
 
 Amount hills, 
 
 Funded in 3 per cent. cons. 
 in 4 per cent cons, 
 in 5 per cent. cons. 
 
 Total funded, 
 
 Interest in .'1 per cents. - 
 in 4 per cents. - 
 
 in 3 per cents. - 
 
 Amount, interest, 
 Management at L 450, - 
 
 Total cha 
 
 rge, 
 
 11,595,529 
 
 16,438,1 
 765,428 
 
 2,034,890 270,202 2,305, Oy 
 
 19,238,493 
 
 101.744 
 625,50" 
 
 634,16V 
 
 Exch. BilK 
 
 Total. 
 
 1,433,8700 3,029,399 
 
 1,999,699,18,437,874 
 i 04,432 869,860 
 
 2,374,9 
 
 1.177 
 
 13,510 115,254 
 
 1,069 
 
 
 553,136 
 34,794 
 
 703.185 
 9.728 
 
 712,911 
 
 K. LOYALTT 
 
 k\f Xute xr
 
 K. Loyalty Loan.* (Dec.) Sum raised, 
 
 L. 1 8,000,00© 
 
 Funded at 5 per cent, in a separate fund at 
 
 L 112. 10s. L.20,124,843 
 
 N. B. A deficiency by non-payment of - 125,157 
 
 Interest, 
 Management at L.450, 
 
 Total charge, 
 
 L.20,250,000 
 
 L. 1,006,243 
 9,05 G 
 
 L. 1,0 1 5,29^ 
 
 1797. 
 
 L. Joint loan for Britain and Ireland, funded at L.125 in 3 per 
 cent. cons. L.50 in three per cent, reduced, L 20 in 4 per 
 cent. eons, and an annuity of 6s. for 62J years. 
 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 Sums raised, - 
 
 1 3,000,000 
 
 1,500,000 
 
 14,500,000 
 
 Sums funded in 3 per cents, 
 in 4- per cents. 
 
 22,750,000 
 2,600,000 
 
 2,625,000 
 300,000 
 
 25,375,000 
 2,900,000 
 
 Total funded, 
 
 25,350,000 
 
 2,925,000 
 
 28,275,000 
 
 761,250 
 1 16,000 
 
 Interest in 3 per cents, 
 in 4 per cents. 
 
 682,500 
 104,000 
 
 78,750 
 1 2,000 
 
 Amount interest, 
 Long annuities, 
 Management of capital at 
 
 L450, 
 And for long annuiti«9, 
 
 786,500 
 39,000 
 
 11,41S 
 446 
 
 90,750 
 4,500 
 
 1,305 
 44 
 
 877,250 
 43,500 
 
 12,723 
 490 
 
 
 837,361 
 
 96,599 
 
 933,963 
 
 ■ See 
 
 Note XII, 
 
 
 1796.
 
 / ■> 
 
 1793. 
 VI, Joint loan for Britain and Ireland, funded at L.150 in 3 per 
 cent. cons. L.50 in 3 per cent, reduced, and an annuity of 
 4s. lid. for 61 \ years. 
 
 Sums raised, - 
 
 Sums funded in 3 per cents. 
 
 Interest, - 
 
 Long annuities, 
 Management of capital at 
 
 L.450, 
 And for long annuities, 
 
 Britain. 
 
 Ireland. 
 
 1 5,000,000 2,000,000' 1 7,000,000 
 
 30,000,000 4,000,0003 4,000,000 
 
 1 
 
 900,000! 
 
 36,875 
 
 13,500 
 415 
 
 1 20,000 
 4,916 
 
 1,800 
 55 
 
 Total charge, - - 950,790! 126,771 
 
 H. Loan. [December.] Sum raised, 
 
 1,020,000 
 41,791 
 
 15,300 
 470 
 
 1,077,561 
 
 L.3,000,000 
 
 Sum funded at L 100 in 3 per cent. cons, and 
 
 L 87. 9s 6d. in 3 per cent, reduced, - L.5,624,250 
 
 Interest, 
 Management at L.450, 
 
 Total charge, - 
 
 L.1 68,727 
 2,530 
 
 L 17 1,257 
 
 1799. 
 
 O. Joint loan for Britain and Ireland, funded at L.125 in 3 pel 
 cent. cons, and L.50 in 3 per cent, reduced. 
 
 Sums raised, - 
 
 Sums funded in 3 per cents. 
 
 Interest, - 
 
 Management at L.450, 
 
 Total charge, 
 
 Total. 
 
 00| 15,500,000 
 
 21,875,000 5,2 50,00027,125,000 
 
 v>j 157,500 
 
 9,U'>! 
 
 ■ 
 
 813,750 
 1 2,205 
 
 -
 
 76 
 
 1800. 
 
 P. Joint loan for Britain and Ireland, funded at L.l 10 in 3 per 
 cent. cons, and L.47 in 3 per cent, reduced. 
 
 Sums raised, - 
 
 Sums funded in 3 per cents. 
 
 Interest, 
 Management at L.450, 
 
 Total charge, 
 
 Britain, j Ireland. 
 
 Total 
 
 1 8,500,000*2,000,000 
 
 20,500,000 
 
 29,045,000 
 
 3,140,000 
 
 32,185.000 
 
 871,350 
 13,070 
 
 94,200 
 1,413 
 
 965,550 
 14,483 
 
 884,420 
 
 95,613 
 
 980,033 
 
 1801, 
 
 (J. Joint loan for Britain and Ireland, funded at L.l 25 in 3 per 
 cent. cons, and L.50. 15s. in 3 per cent, reduced. 
 
 Sums raised, - 
 
 Sums funded in 3 per cents. 
 
 Interest, 
 Management at L.450, 
 
 Total charge, 
 
 Britain. Ireland. 
 
 Total. 1 
 
 25,500,000 
 
 2,500,000 
 
 28,000,000 
 
 44,816,250 
 
 4,393,750 
 
 49,210,000 
 
 1,344,488 
 20,167 
 
 131,812 
 1,977 
 
 1,476,300 
 22,144 
 
 1,364,655 
 
 133,789 
 
 1,498,444 
 
 1802. 
 
 R. Exchequer bills funded at L.25 in 3 per cent. cons. L.25 in 
 3 per cent, reduced, L 50 in 4 per cent. cons. L.25 in 5 per 
 cents, joined to Loyalty Loan, and an annuity of 10s. 9d. for 
 58| years. 
 Amount bills funded, - L.8,9 10,450 
 
 Sum funded in 3 per cents. - L. 4,455,225 
 
 in 4 per cents. - 4,455,225 
 
 in 5 per cents. Loyalty Loan, 2,227,612 
 
 L-l 1,138,063 
 
 Interest
 
 77 
 
 Interest in 3 per cents, 
 in 4 per cents, 
 in 5 per cents. 
 
 Long annuities, 
 
 Management of capital at L.450, 
 
 And for lone annuities, 
 
 - 
 
 L.1 33,657 
 
 - 
 
 178,209 
 
 - 
 
 111,381 
 
 
 L.423,247 
 
 - 
 
 7,796 
 
 L.5,012 
 
 
 87 
 
 5,099 
 
 
 - 
 
 L.436,142 
 
 Total charge, 
 
 5. Joint loan for Britain and Ireland, funded at L.65 in 3 per 
 cent, cons L.60 in 3 per cent, reduced, and L.6. 19s. 3d. in 
 3 per cent. cons, the interest of which is deferred till the 
 year 1808.* 
 
 Sums raised, ... 
 
 Sums funded in 3 per cents. 
 Besides stock deferred, 
 
 Total funded. 
 
 Present interest, 
 Deferred interest, 
 
 Total interest, 
 
 Management at L.450, 
 
 Amount present interest 7 
 and management, ^ 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 23,000,000 
 
 2,000,000 
 
 25,000,000 
 
 28,750,000 
 1,601,375 
 
 2,500,000 
 139,250 
 
 31,250,000 
 1,740,625 
 
 30,351,375 
 
 2,639,250 
 
 32,990,625 
 
 862,500 
 48,041 
 
 75,000 
 4,178 
 
 937,500 
 52,219 
 
 910,541 
 
 79,17S 
 
 989,719 
 
 12,937 
 
 1,125 
 
 1 4,062 
 
 875,437 
 
 76,125 
 
 951,562 
 
 1803. 
 
 • 5*e No* XIII.
 
 78 
 
 1803. 
 
 T. Joint loan for Britain and Ireland, funded at L 80 in 3 per 
 cent. cons. L.80 in 3 per cent, reduced, and an annuity of 
 6s. 5d. for 56* years 
 
 Sums raised, 
 
 Sums funded in 3 per cents. 
 
 Interest, - 
 
 Long annuities, 
 Management of capital at 
 
 L.340, - 
 
 And for long annuities, 
 
 Total charge, 
 
 Britain. 
 
 Ireland. 1 Total. 
 
 1 000,000 2,000,000jl 2.000 , 000 
 
 I6,000,00t 
 
 3, 200,000J1 9,200,000 
 
 480,000 
 32,083 
 
 5,440 
 273 
 
 96,000 
 6,417 
 
 1,088 
 54 
 
 576,000 
 38,500 
 
 6,528 
 327 
 
 517,796 
 
 103,559 
 
 621,355 
 
 804. 
 
 V. Joint loan for Britain and Ireland, funded at L.100 in 3 per 
 cent, reduced, and L 82 in 3 per cent. cons. 
 
 Sums raised, - 
 
 Sums funded in 3 per cents. 
 
 Interest, 
 Management at L.340, 
 
 Total charge. 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 1 0,000,000 
 
 4,500,000 
 
 1 4,500,000 
 
 1 8,200,000 
 
 8, 1 90,000 
 
 26,390,000 
 
 546,000 
 6,188 
 
 245,700 
 2,785 
 
 791,700 
 8,973 
 
 800,673 
 
 552,18b 
 
 248,485 
 
 ?505.
 
 79 
 
 1805. 
 
 V. Joint loan for Britain and Ireland, funded at L.150 in 3 per 
 cent. cons, and L.22 in 3 per cent, reduced 
 
 Sums raised, 
 
 Sums funded in 3 per cents. 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 20,000,000 
 
 2,500.000 
 
 22,500,000 
 
 3 4, 400,000 
 
 4,300,000 
 
 38,700,001; 
 
 1,032,000 
 11,696 
 
 129,000 
 1,462 
 
 1,161,000 
 13,158 
 
 1,043,696 
 
 1 30,462 
 
 1,174,158 
 
 Interest, 
 Management at L.340, 
 
 Total charge, 
 
 \V. A separate loan for Ireland in Britain, funded at L 24 in 
 5 per cent. cons, and an annuity of L.5 for 54+ years. 
 Sum raised, L. 1,500,000 
 
 Sum funded in 5 per cent. cons. 
 
 L 360,000 
 
 Interest, L. 18,000 
 
 Long annuities, .... 75,000 
 
 Management of capital at L.340, - L.122) 
 and for long annuities, - 63b j 
 
 760 
 
 Total charge, 
 
 L.93,760 
 
 1806. 
 
 X. Joint loan for Britain and Ireland, funded at L 100 in 3 per 
 cent. cons, and L.66 in 3 per cent, reduced 
 
 
 Britain. 
 
 Irduiul. 
 
 Total. 
 J0/)00,00( 
 
 Sums raised, 
 
 18.1)00,000 
 
 2,0OO,O0( 
 
 Sums funded in 3 per cents. 
 
 29,830,000 
 
 •J,320,O0( 
 
 33,200,000 
 
 Interest, ... 
 Management at L.340, 
 
 896,400 
 
 I'M.-) 
 
 99,600 
 1,129 
 
 996, OOC 
 1 1,288 
 
 Total charge, 
 
 £KX3,558 
 
 100,729 
 
 1,007,28* 
 
 1807.
 
 80 
 
 1807. 
 
 Y. Joint loan for Britain and Ireland, funded at L.70 in 3 pef 
 cent. cons. L.70 in 3 per cent, reduced, and L.10. 12s. in 5 
 per cent, cons.* 
 
 Sums raised, 
 
 Sums funded in 3 per 
 cents. 
 
 in 5 per cents. 
 
 Total funded, 
 
 Interest in 3 per cents, 
 in 5 per cents. 
 
 Total interest, 
 Management at L.340, 
 
 Total charge, - 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 C 12,000,000 7 
 { 200,000 3 
 
 2,000,000 
 
 1 4,200,000 
 
 f 16,800,000 7 
 { 280,000 j 
 f 1,272,000 7 
 I 21,200j 
 
 2,800,000 
 212,000 
 
 19,880,000 
 1,505,200 
 
 18,373,200 
 
 3,012,000 
 
 21,385,200 
 
 j" 504,000 7 
 { 8,400 3 
 | 63,600 7 
 { 1,0603 
 
 84,000 
 10,600 
 
 696,400 
 75,260 
 
 577,060 
 C 6,1457 
 1 102J 
 
 94,600 
 
 1,024 
 
 671,660 
 7,271 
 
 583,307 
 
 95,624 
 
 678,931 
 
 Z. A separate loan for Ireland in Britain. 
 Sum raised, - 
 
 L. 1,5 00, 000 
 
 Sum funded at L.160. 12s. lOd. in 3 per cent. 
 
 cons. L.2,409,265 
 
 Interest, 
 Management at L, 3*0, 
 
 Total charge, 
 
 L.72,289 
 819 
 
 L.73,108 
 1808. 
 
 See Note XIV.
 
 81 
 
 1303. 
 A. Joint loan for Britain and Ireland, funded at L.I 18. 3s. 6d. 
 in 4 per cent. cons. 
 
 Sums raised, 
 
 Sums funded in 4 per cents. 
 
 Interest, 
 Management at L S K), 
 
 Total charge, 
 
 B. Exchequer Bills funded. 
 
 Bills funded at L. 105 in 5 per cents. 
 
 Bills funded at L.(33 in 5 per cents. 
 
 and L.50 in 4 
 
 Amount Bills, 
 
 Britain. 
 
 Ireland. 
 
 Total 
 
 S,000,000 
 
 2,500,000 
 
 10,500,000 
 
 9.454,000 
 
 2,954,375 
 
 12,408,375 
 
 378,160 
 3,214 
 
 US, 175 
 1,004 
 
 496,335 
 4,213 
 
 381,374 
 
 1 19,179 
 
 500.553 
 
 per cents. 1 
 per cents j 
 
 L.3,524,200 
 475,800 
 
 L. 4,000,000 
 
 Sums funded in 5 per cent 
 
 cons. 
 
 - L.3,700,410 
 
 and, 
 
 " 
 
 300,944 
 L.4,001,354 
 
 Sum funded in 4 per cent. 
 
 cons. 
 
 237,900 
 
 Total funded, - 
 
 L. 4,239,25 fc 
 
 Interest at 5 per cent. 
 
 . 
 
 L.200,068- 
 
 at 4 per cent. 
 
 - 
 
 9, ■> 1 6 
 
 Total interest, 
 
 . 
 
 - I... 
 
 Management at L.310, 
 
 - 
 
 1,441 
 
 Total charge, 
 
 - 
 
 - L2 11,025 
 
 Interest of part of the loan of 1802, deferred 
 till tin-, year,* - ... 
 
 13,011 
 
 809 
 
 SvcNute XIII.
 
 82 
 
 1809. 
 
 € Joint loan for Britain, Ireland, and Portugal, funded at L.60 
 in 3 per cent, reduced, L.60 in 4 per cent. cons, and an an- 
 nuity of 8s. lOd. for 50l years.* 
 
 Sums raised, 
 
 Sums funded in 3 per 
 cents. 
 
 in 4 per cents. 
 
 Total funded, 
 
 Interest at 3 percent 
 at 4 per cent. 
 
 Total interest, 
 Long annuities* 
 Management, 
 
 Total charge, 
 
 Britain. 
 
 Ireland. 
 
 Portugal. 
 
 Total. 
 
 11,000,000 
 
 3,000,000 
 
 600,000 
 
 14,600,000 
 
 6,064,478 
 6,960,000 
 
 1,800,000 
 1,800,000 
 
 895,522 
 
 8,760,000 
 8,760,000 
 
 13,024,478 
 
 3,600,000 
 
 895,522 
 
 17,520,000 
 
 181,934 
 
 278,400 
 
 54,000 
 72,000 
 
 26,866 
 
 262,800 
 350,400 
 
 460,334 
 
 51,233 
 
 4,864 
 
 126,000 
 
 13,250 
 
 1,337 
 
 26,866 
 304 
 
 613,200 
 
 64,485 
 
 6,505 
 
 516,431 
 
 140,587 
 
 27,170 
 
 684,1 8S 
 
 I). Exchequer Bills funded, f 
 
 Bills funded at L.103. 5s. in 5 per cents. 
 
 Bills funded at L 8 1 . 8s. in 5 per cents. ") 
 
 and L.26. 5s. in 4 per cents. ) 
 
 Amount bills funded, - 
 
 Sums funded in 5 per cent- cons, 
 and, 
 
 Sum funded in 4 per cent. eons. 
 Total funded, 
 
 L.6,48 3,200 
 . 1,448,900 
 
 L.7,932,100 
 
 L 6,693,904 
 1,179,404 
 
 L.7,873,308 
 380,336 
 
 18,253,644 
 Interest 
 
 See Nate XV. 
 
 f Sfce Note XVI.
 
 83 
 
 Interest in 5 per cents, 
 in 4 per cents. 
 
 Total interest, 
 Management at L.340, 
 
 Total charge, 
 
 L.393.G6: 
 15,21 + 
 
 L.408,879 
 2,800 
 
 L.41 1,685 
 
 1810. 
 
 E. Exchequer Bills funded. 
 
 Amount bill* funded at L.103. 5s. in 5 per cent. 
 
 cons. L.8,3 11,000 
 
 Sum funded, .... 
 
 Interest at 5 per cent. 
 Management at L.3W and L.300, 
 
 Total charge, * 
 
 L.8,581,IOS 
 
 L.429,055 
 2,917 
 
 L.431,97 2 
 
 /''. Joint loan for Britain and Ireland, funded at L.130 in 3 per 
 cent, reduced, and L.10. 7s. od. in 3 per cent. cons. 
 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 Sums raised, 
 
 8,000,000 
 
 +,000,000 
 
 1 2,000,000 
 
 funded in 3 per cents. 
 
 11,230,000 
 
 5,615,000 
 
 |G,845,000 
 
 Interest, - 
 Management, 
 
 3 36,900 
 3,818 
 
 108,1-50 
 1,909 
 
 505,350 
 5,727 
 
 Total charge, 
 
 340,7 J 8 
 
 170,359 
 
 51 1,07 7 
 
 (5 A separate loan for Ireland in Britain, funded at L.130 in 3 
 per cents, reduced, and I.. 107 in 3 per cent. con-;. 
 
 I L. l,i
 
 84 
 
 Sum funJed in 3 per cents. - L. 1,965,250 
 
 Interest, L.58,957 
 
 Management, ----- 667 
 
 Total charge, L 59,621 
 
 181.1. 
 
 H. Exchequer Bills funded. 
 
 Amount bills funded at L.103. 14s. in 5 per 
 
 cent. cons. L 7,01 8,706 
 
 Sum funded, - - - - - 
 
 Interest at 5 per cent. - 
 Management, - - - - - 
 
 Total charge, - »' * 
 
 - L.7,278,392 
 
 L.363,9I9 
 2,385 
 
 - L.366,304 
 
 r . Loan to compleat L. 1 2,000,000. 
 Sum raised, - 
 
 - L.4,981,30O 
 
 Sum funded in 5 per cent. cons, at L.72 for 
 
 L.70 raised, L.5, 166,3 19 
 
 Interest, - 
 Management, - 
 
 L 258,316 
 1,550 
 
 Total charge, - 
 
 L.259,866 
 
 K. Loan of L. 12,000,000, of which L 4,500,000 is for the ser- 
 vice of Ireland. But as Britain is engaged to pay the inte- 
 rest, the whole is charged to the account of Britain. 
 Sum raised, L. 12,000,000 
 
 Stum
 
 85 
 
 Sum funded at L.100 in 3 percent, reduced, L.12,000,000 
 and L.20 in 3 percent, cons. 2,400,000 
 
 and L.20 in 4 per cent. cons. 
 
 L. 1 4,400,000 
 2,400,000 
 
 Total funded, 
 
 L. 16,800,000 
 
 Interest at 3 per cent. - - - - 
 at 4 per cent. - 
 
 L.432,000 
 
 96,000 
 
 Total interest, - 
 
 Annuity for 4S] years, at (is. lid. - 
 
 Management, - 
 
 L.528,000 
 
 41,500 
 
 5,392 
 
 Total charge, - 
 
 L 574,892 
 
 1S12. 
 JL. Exchequer Bills funded, amount 
 
 L.5,43 1,700 
 
 Capital funded at L. 108 in 5 per cent. cons. 
 
 L 5,866,236 
 
 Interest at 5 per cent. - 
 Management, - 
 
 L.293,312 
 1,760 
 
 Total charge, - 
 
 L.295,072 
 
 M. Exchequer Bills funded, and loan in supple- 
 ment, amount L.6, 789,625 
 
 Capital funded at L.108 in 5 per cent. cons. L.7, 332,795 
 
 Interest at 5 per cent. - L.366,63') 
 
 .Management, - 2,200 
 
 Total charge, L.368,83'* 
 
 N. Joint
 
 86 
 
 Britain. 
 
 Ireland. 
 
 East India 
 Company. 
 
 Total. 
 
 15,650,000 
 
 4,350,000 
 
 2,500,00022,500,000 
 
 27,544,000 
 
 7,656,000 
 
 4,400,000 
 
 39,600,000 
 
 826,320 
 8,263 
 
 229,680 
 2,414 
 
 1 32,000 
 
 1,320 
 
 1,188,000 
 11,997 
 
 834,533 
 
 '232,094 
 
 133,320 
 
 1,199,997 
 
 jV. Joint loan for Britain, Ireland, and the East India Com- 
 pany, funded at L 120 in 3 per cent, reduced, and L.56 in 
 3 per cent. cons. 
 
 Sums raised, 
 
 Capital funded, 
 
 Interest at 3 per ct. 
 Management, - 
 
 Total charge, 
 
 The loan in 1811 marked J, and that in 1812 marked M, 
 were partly made in Exchequer Bills. 
 
 In 1809, an option was given to the holders of the 3 per 
 cent, capital, to convert their perpetual annuities into life an- 
 nuities, at certain rates, according to the age of the annuitant. 
 In consequence of this, L. 1,961,582 of the 3 per cent, capital 
 was converted into life annuities before 5th January, 1813, 
 amounting to L.l 40,332, and reduced by death at that time to 
 L. 135,675. These annuities were charged on the sinking fund, 
 and the dividend, discharged by the extinction of the capital, 
 amounting to L.58,847, applied to that fund. 
 
 An abstract of all these operations, together with the amount 
 of the public debt* and the charge on the same at the commence- 
 ment of the war, 1793 ; at the peace of Amiens, 1S02; and on 
 the 1st February 1813, is exhibited in Table II. 
 
 It appears that the amount of the funded debt of Britain at 
 the peace of Amiens, was, 
 
 In the 3 per cents. .... L 467,105,854 
 
 In the 4 per cents. - 49,425,085 
 
 In the 5 per cents. - 50,478,039 
 
 Amoant of funded capital, - 
 
 - L 567,008,978 
 
 Interest.
 
 87 
 
 Interest on above, .... I,. 18,466,040 
 
 Annuities for years or lives, ... 1,604,915 
 
 Charges of management, ... 2(i<i,S7() 
 
 Amount of annual charge, ... L.20,337,825 
 
 Ami on the 1st February 1813, the amount of funded debt was, 
 
 In the 3 per cents. .... L 647,368,983 
 
 In the 4 per cents. .... 68,857,321 
 
 In the 5 per cents. - 93,825,240 
 
 Amount of funded capital, ... L.810,051,553 
 
 Interest on above, L 26,866,625 
 Long annuities which terminate in K860, 
 L. I, 'l 40,601 
 
 Annuities for lives,* - - 65,571 
 
 Ditto for capital converted, - 135,673 
 
 1,341.847 
 
 Charges of management, f - - - 214,154 
 
 Amount of annual charge, L 28,422,626 
 
 IRISH FUNDED DEBT. 
 
 We have already noticed that part of most of the loans made 
 in Britain since 17y7, has been for the use of Ireland ; and seve- 
 ral separate loans have also been made in Britain for Ireland. 
 The interest and other charges on these loans is annually re- 
 mitted from the trea^uiy of Ireland to the British treasury. 
 
 Table IV. contains a state of the sums raised by these loan*, 
 and the capital* fowled in the 3 per cent*. 4 per cents, and 5 
 per cents. ; the toUl capital foDoV d i the amount of 
 
 the Irish debt payable in Britain at IOC end of each year: also, 
 the interest, annuities, and chtrgei oi ID M igement, contracted 
 bv each loan. 
 
 Il 
 >: vji a KrttXVHl
 
 88 
 
 It appears that the whole sum raised in Britain for Ireland, 
 and guaranteed, to 1st February IS 13, is, - L.44,400,000 
 
 The capital funded in the 3 per cents. - - L.63,303,875 
 in the 4 per cents. - - 5,054,37.5 
 
 in the 5 per cents. - - 572,000 
 
 Amount capital funded in Britain for Ireland, L.6S, 9^0,230 
 
 Interest of Irish debt funded in Britain, - - L.2, 129,891 
 Annuities which terminate in 1860, - - 104,083 
 
 Charges of management, - 24,132 
 
 L.2,25S,10(> 
 
 Besides this, L.4,500,000, part of the loan raised in Britain m 
 1811, was for the use of Ireland ; for which there was funded 
 L.5,400,000, in the 3 per cents. -, L.900,000 in the 4 per 
 cents.; and a long annuity granted of L.15,562; but the inte- 
 rest of this being paid by Britain, it is not stated in the account 
 of the Irish debt. 
 
 But this is only part of the Irish funded debt. Another part 
 has been funded in Ireland, the interest of which is payable, 
 and the capital redeemable there. 
 
 The first operations in that kingdom were by tontine an- 
 nuities. In the years 1773, 1775, and 1777, L.7 40,000 was 
 raised in that manner, and annuities granted to the extent or* 
 L.4S.900. 
 
 The method generally followed of late is that of granting a 
 funded capital in the 3i per cents, equal to the sum borrowed, 
 and an additional funded capital in the 5 per cents, such as the 
 lender would accept of. Sometimes a Douceur in Irish treasury 
 bills has been also granted. 
 
 The progress of the whole Irish funded debt is exhibited in 
 Table V. 
 
 The
 
 89 
 
 The suras raised for Ireland from 1773, when the public debt 
 of that country commenced, to 5th January 1813, were, 
 
 Irish Currency.* 
 Sums raised in Britain for Ireland, including 
 L.1,900,000 not guaranteed, L. 4 6,300,000 
 British currency, ----- L.50,l 58,333 
 Sums raised in Ireland, - 23,413,517 
 
 Total raised, L.73,571.S50 
 
 Capital funded in Britain, the interest payable in 
 London and guaranteed, - L.68, 930,250 
 
 and a further sum, the interest of 
 which is also payable in London, 
 but not guaranteed, - - 1,900,000 
 
 L.70,830,250 
 equal in Irish currency to L.76,732,772 
 
 Capital funded in Ireland, and the interest pay- 
 able in Dublin. 
 
 3$ per cents. - L.1 2,680,972 
 ♦ per cents. - 227,600 
 
 5 per cents. - 13,195,64-S 
 
 26,104,220 
 
 Total Irish funded debt payable in London and 
 
 Dublin, L. 102,836,992 
 
 Interest on above, .... L.3,523,019 
 
 Annuities, ---... 179,782 
 
 L.5, 702,801 
 Management, (5th January 1 SI 2,) - 
 
 n By 
 
 1 I..1 S »f British currency at p.ir, i» mpui to I ..I" Irivli i Hut b 
 je, thi diflareoea is often :
 
 90 
 
 By the articles of L'nion between Britain and Ireland, which 
 took eflect 1st January 1801, the debts of each country, exist- 
 ing at that time, and their interest, are to continue as separate 
 charges on the revenues of the respective countries ; and such 
 future expenses as are for the special service of either country, 
 aie to be charged on the revenue of the same : But the general 
 charges for the army, navy, &c. being alike for the defence or 
 advantage of each country, are appointed to be charged in the 
 proportion of 15-17ths to Britain, and 2-17ths to Ireland. 
 
 When the Union between England and Scotland was accom- 
 plished in 1707, as Scotland was subjected, by the articles, to 
 the payment of certain duties of customs and excise, then pay- 
 able in England, and applicable to the debt of England con- 
 tracted before the Union, it was agreed that the sum of L.398,085 
 should be granted by the Parliament of England as an equiva- 
 lent for the same ; and this sum was applied to the payment of 
 the small public debt then due by Scotland, the indemnification 
 of the losses sustained by th« Darien Company, the improvement 
 of fisheries and manufactures in Scotland, and some other pub- 
 lic purposes. 
 
 IMPERIAL LOANS. 
 
 Two loans have been raised in Britain for the Emperor of 
 Germany, and guaranteed by the British government. The in- 
 terest, if not provided by the Emperor, (and he has never made 
 any provision) to be paid from the consolidated fund. ThC 
 money for these loans was advanced by the subscribers to the 
 British loans, in proportion to their subscriptions. The particu- 
 lars are, 
 
 Loan of 1795, contracted at a capital of L.83. 6s. 8d. in a. 
 fund at 3 per cents, for each L. 100 advanced, and an annuity of 
 L.5 for 25 years. 
 
 Loan-
 
 91 
 
 Loan of 1797, at a capital of L.226. IOa. in a 3 per cent, fund, 
 for each L. loo. advanced. 
 
 Ye.ir. 
 
 Sum raised. 
 
 Funded at 
 8 per rent. 
 
 Interest. 
 
 Annuity. 
 
 A$anage- 
 
 Illlllt. 
 
 Total 
 charge. 
 
 1705 
 
 1797 
 
 4,600,000 
 
 1,620,000 
 
 3,833,333 
 3,669.3QC 
 
 1 1 5,000 
 110,070 
 
 230,000 
 
 t,3I2 
 
 1,051 
 
 340,312 
 11 1,7 o 
 
 6,220,000 
 
 7,50 !,6S3 
 
 225,070 
 
 230.000 
 
 5,963 
 
 1.1-58 
 
 461,042 
 1,451 
 
 Reduction in management, 
 
 
 4.50.5 
 
 45 0.5 S 4 
 
 LOAN TO PORTUGAL. 
 
 A loan of L.600,000 for the service of Portugal, was raj>ei! 
 and guaranteed by Britain in 1809, and connected with the 
 loan of that year, in the manner explained in Note XV. 
 
 The sum funded in the 3 per cent, reduced, was, L. 8*5, 52'- 
 
 [nterest, L. 26,865 
 
 Management, ----- 304 
 
 Annual charge, (besides sinking fund of L.30,000,) L.27,170 
 
 MANAGEMENT OF THE NATIONAL DEBT. 
 
 The management of the national debt is conducted by the 
 Bank of England, except a small part which is in the hands of 
 rath Sea Company. The expense of management, in most 
 articles, previous to I7S0, was at the rate of L.502. IOa. per mi! 
 lion of capital, whether of a three, four, or live pet cent, an- 
 nuity, reckoning L 40,000 of terminable annuities, equal to a 
 million of Capital. 
 
 In 1786, the rate of management wai re-lured to I.. 1 pei 
 million j and ihi» rrai confirmed by an act of parliament in 
 
 1j
 
 P2 
 
 In 1808, the rate of management was further reduced, ant! 
 settled on the following terms : 
 
 L.450 per million, if the capital exceeded 300 millions, but 
 fell below 400 millions. 
 
 L.340 per million, if the capital exceeded 400 millions, but 
 fell below 600 millions. 
 
 L.300 per million, on such part of the public debt as exceed- 
 ed 600 millions. 
 
 No agreement was made for the case of the public debt fall- 
 ing below 300 millions. 
 
 Besides these allowances for management, the bank receives 
 considerable sums for conducting loans and lotteries. The 
 sum at present allowed for receiving contributions to the loan*, 
 is L.800 per million, and for transacting the business of the 
 lotteries, at the rate of L.1000 for each contract of 20,000 tic- 
 kets. 
 
 SECTION
 
 P3 
 
 SECTION II. 
 
 Vlans adopted for the Reduction of the Funded 
 Debt, and their Operation. 
 
 § 1. SIR IIOBEIIT WALPOLe's SINKING FLN'J).' 
 
 The first plan for the discharge of the rational 
 debt, formed on a regular system, and conducted 
 for some time with a considerable degree of firm- 
 ness, was that of the Sinking Fund, established 
 in 171(3. The author of this plan was the Earl 
 of Stanhope ; Out as it was adopted under tin- 
 administration of Sir Robert Walpole, it is com- 
 monly denominated from him. The taxes which 
 had been laid on before for limited periods, be- 
 ing rendered perpetual, and distributed among 
 the South Sea, Aggregate, and General Funds, as 
 lias been mentioned already, and the produce of 
 these funds being greater than the charges upon 
 them, the Burplusses were united under the name 
 of the Sin/iing Fund, being appropriated for the 
 discharge of the national debt. The iegal inte- 
 rest had been reduced from six to five per cent. 
 about two years before, and as that reduction 
 was conformable to the commercial state of the 
 country, Government was now able to obtain the 
 same reduction on the interesl of the public debt, 
 and apply the savings in aid of the sinking fund. 
 
 (n 17'-T, a further reduction of the interesl of the 
 
 public 
 
 ■ This account of Sir Robert Wftlpole'l sinking fond, \t 
 fly taken from Dr. Price's writing*.
 
 94 
 
 public debt from five to four per cent, was ob- 
 tained, by which nearly L.400,000 was added to 
 the sinking fund. And in the year 1749, the in- 
 terest of part of the debt was again reduced to 
 three and a half per cent, for seven years, and to 
 three percent, thereafter; and in 1750, the in- 
 terest of the remainder was reduced to three and 
 a half per cent, for five years, and to three per 
 cent, thereafter, by which a further saving of 
 near L.60O,CO0 was added to the sinking fund. 
 
 The opinion, strongly urged since by Dr. Price, 
 seems to have been entertained at that time, of 
 the importance of applying the produce of the 
 sinking fund invariably to the discharge of the 
 national debt, and borrowing by new loans when 
 the public exigencies required it. Accordingly, 
 the following sums were borrowed towards the 
 supplies, from 1718 to 1731, being a period of 
 peace. 
 
 In 1718, — — L.505,995 
 
 1719, — — 312,737 
 
 1720, — — 500,000 
 
 1721, — — 1,000,000 
 
 1725, — — 500,000 
 
 1726, — — 370,000 
 
 1727, -7- — 1,750,000 
 
 1728, ~ — 1,230,000 
 
 L.6, 168,732 
 
 1729, — — 550,000 
 
 1730, — — 1,200,000 
 1738, — — 500,000 
 
 L787418~732 
 
 The
 
 {)■> 
 
 The sums applied from the sinking fund to the 
 discharge of the national debt, from 1716 to 1728, 
 amounted to L.6,(i48,COO, being a very little more 
 than the additional debt contracted in that time. 
 
 In 1728, the sinking fund was charged with 
 the interest of the loan, and this was also done in 
 the loans of the following years, and the additional 
 taxes imposed for the payment of the interest of 
 the loans, were applied directly to that fund. 
 
 Soon after, the plan of preserving the sinking 
 fund inviolate, and borrowing by new loans, was 
 abandoned. In 1733, L..5<::>,000 was taken from 
 the sinking fund towards the supplies of the year. 
 In 1734, L. 1,200,090 was taken from it for the 
 same purpose; and in 1735, it was anticipated 
 and mortgaged. Since that time, the operations 
 of the sinking tund, in time of peace, have been 
 feeble, its produce being often diverted to other 
 purposes: and at that time, the nation had no 
 other free revenue, except the annual land and 
 malt taxes, which were inadequate to the expense 
 of a peace establishment on the most moderate 
 scale* It was therefore necessary, if no addi- 
 tional taxes were imposed* to have recourse to 
 the sinking \\\]\i], or to the inefficient system of 
 discharging old debts and contracting new ones. 
 In the peace which followed the treaty of Utrecht, 
 being a period of 26 years, the longest which the 
 
 nation ever enjoyed, the amount of debt dis* 
 charged was only L. 7, 23 1,508, In time of war, 
 
 the
 
 w 
 
 the produce of the sinking fund was applied to 
 the service of the year, and loans only made for 
 the additional sums wanted. 
 
 The produce of the sinking fund at its com- 
 mencement, in 1717, was - - L.323,439 
 Medium annual produce from 1717 to 
 
 1726, both inclusive, - - - 577,614 
 1727 to 1736, - - - 1,132,251 
 
 1737 to 1746, - - - 1,062,170 
 
 1747 to 1756, - - - 1,356,578 
 
 1757 to 1766, - - - 2,059,406 
 
 and it continued to increase afterwards. 
 
 It seems unnecessary to trace the operations of 
 this sinking fund further. It w r as continued no- 
 minally in the accounts of the exchequer, until 
 the establishment of Mr. Pitt's sinking fund in 
 1786 ; but did little in time of peace, and nothing 
 in time of war, to the discharge of the national 
 debt. Dr. Price says, that at the time he wrote, 
 in 1772, it had afforded about 20 millions towards 
 the payment of the national debt, in 56 years, be- 
 ing nearly L.357,000 annually, at an average. If, 
 from this sum of 20 millions, we subtract the 
 debt contracted from 1718 to 1738, the remain- 
 der is nearly equal to the debts discharged in the 
 periods of peace which followed the treaties of 
 Utrecht and Aix-la-Chapelle, 
 
 5*
 
 . 2. MR,. I'll] 's SIS KIN( I NDS. 
 
 1788. 
 
 The present sinking fund was established undo. 
 Mr. Pitt's administration, in 1786. The various 
 
 brandies of revenue then existing were united 
 under the name of the consolidated fund.* One 
 million taken from that fund, was vested annually 
 in the hands of Commissioners for the redemption 
 of the national debt, to be applied for purchasing 
 capital in such stocks as they should judge expe- 
 dient, at the market prices. To this fund was to 
 be added, the interest qf the debt redeemed, and 
 annuities fallen in by the failure of lives, or the 
 expiry of the terms for which they were granted, 
 and life annuities unclaimed for three years were 
 considered as expired, and added to the sinking 
 fund. When this fund amounted to four mil- 
 lions, it was enacted that the interest of the re- 
 deemed debt, and annuities fallen in, were no 
 longer to be applied to it, but remain at the dis- 
 posal of Parliament. 
 
 1792. 
 
 ither sinking fund was established this yeaij 
 
 of one per cent, on the nominal capital of each 
 loan, to which the dividends on the capital re- 
 deemed by this fund were to be added. When 
 annuities for a longer term than forty-five years, 
 o or 
 
 Note XIX.
 
 93 
 
 or for lives, "were granted, the value which would 
 remain after forty-five years, was appointed to be 
 estimated, and one per cent, on that value set 
 aside for their redemption. This fund was ap- 
 pointed to be kept separate, and applied for the 
 redemption of the debts contracted subsequent to 
 its institution, by which meajis it was estimated 
 that every loan would be redeemed in forty-five 
 years * at furthest from its contraction. 
 
 In the same year, L.400,000 was granted in aid 
 of the former sinking fund, and L.200,000 was 
 granted by annual acts for the same purpose, till 
 1802, when the grant was rendered perpetual. 
 Savings by reduction of the rate of interest of the 
 national debt, were appointed to be added to that 
 sinking fund ; but no savings of this kind have 
 taken place since its commencement. 
 
 1798. 
 
 This year, the application of one per cent, on 
 tlie capital of the loans to the sinking fund, was 
 deviated from. A part of the loan, (16 millions 
 capital,) was charged on a tax then imposed, 
 called the aid and contribution tax j for which 
 the income tax was substituted the following 
 year. In like manner, a part, or the whole of 
 the loans for several years, was charged on the 
 income tax, and no sinking fund of one per cent. 
 
 provided 
 
 * See Note XX.
 
 w 
 
 provided for their redemption. The amount of" 
 capital for which no sinking fund of one per cent, 
 was provided, is L.86,796,375. This system was 
 abandoned in 1802, when all the loans were unit- 
 ed, and the interest of these loans charged on the 
 consolidated fund. 
 
 1802. 
 
 The two sinking funds were united, applicable 
 io the discharge of debts existing in 1802 ; and 
 the system of a sinking fund of one per cent, on 
 loans subsequent to 1802, was revived, and has 
 been followed in all the loans since, except that 
 of 1807, when Lord Henry Petty 's system was 
 adopted. The limitation of the sinking fund to 
 four millions, enacted at its commencement, and 
 a similar limitation in 1792, were repealed; and 
 the application of annuities whose term was ex- 
 pircd, and of savings by the reduction of the rate 
 of interest, to the sinking fund, was repealed. 
 
 Table VI. contains a state of the loans from 
 1793, distinguishing those that were charged and 
 those that were not charged with the sinking fund 
 of one per cent, aud the present amount of that 
 fund. 
 
 § 3. LORD HENRY PETTy's PLAN OF FINANCE. 
 
 A mew plan of finance was proposed to parlia- 
 ment in 1807, by Lord Henry Petty, (now Mai 
 enjisof Lansdown,) Chancellor of the Exchequer, 
 2 and
 
 100 
 
 find adopted in the arrangement of the loan for 
 that year. 
 
 The annual expenditure during war, was esti- 
 mated at L.32,000,000 beyond what the surplus 
 of the consolidated fund, and the annual taxes, 
 could supply. The war taxes were estimated at 
 21 millions, viz. property tax, L. 11,500,000, and 
 other articles L.9,500,000. The annual defici- 
 ency to be supplied by loan was therefore 11 
 millions, which were proposed to be raised by 
 mortgaging the war taxes to the extent of ten 
 per cent, on the sum borrowed ; the surplus of 
 which sum mortgaged, after paying for interest 
 and management, was to form a sinking fund for 
 redeeming the debt, and thereby disengaging the 
 part of the war taxes mortgaged, in a certain num- 
 ber of years, according to the rate of interest at 
 which the loan was transacted. Thus, if the in- 
 terest and management was five per cent, there 
 would remain five per cent, as a sinking fund, and 
 this would pay offthe debt in fourteen years. The 
 sums proposed to be borrowed in this manner 
 were 12 millions for the first three years, 14 mil- 
 lions for the fourth, and 16 millions for each of 
 the succeeding ten years, amounting altogether 
 to 210 millions, for which, at the rate often per 
 cent, the whole of the war taxes would be mort- 
 gaged: But the debt contracted the first year 
 being now paid off by the sinking fund appropri- 
 ated to it, the portion of the war taxes mortgaged 
 
 for
 
 101 
 
 for it would be set free, and be applicable to the 
 loan of the following year ; and another portion 
 being set free the following and each succeeding 
 year, these loans might be continued on this 
 rem without limitation of time. 
 
 But as the sums mortgaged for these loans 
 were withdrawn from the war taxes, it was ne- 
 cessary to replace the same ; and this was pro- 
 posed to be done by raising supplementary loans, 
 the annual amount of which would be equal to 
 the sum mortgaged, deducting the excess of the 
 war tax loan for the year, above the sum of 
 L. 11,000,000 wanted. 
 Thus, the first year, the sum borrowed is, 
 
 - L.12,000,000 
 Of which required, - - 11,000,000 
 
 Excess, - - - L. 1,000,000 
 
 Portion of war taxes mortgaged, '...1,200,000 
 Deduct above excess, - - 1,000,000 
 
 .Sum to be raised by supplementary 
 
 loan, first year, - - L.200,000 
 
 The second year an equal portion of the wai 
 
 taxes was proposed to be mortgaged, amounting 
 
 together with the former, to - L.2,400,000 
 
 Deduct excess of loan as before, 1,000,000 
 
 Sum to be raised by supplementary 
 
 ban, second year, - L.l,400,< 
 
 In
 
 102 
 
 In this manner, the supplementary loan of the 
 fourteenth year, would amount to 16 millions, 
 and the amount of these loans for fourteen years, 
 to L.94,200,000. In the fifteenth year, it would 
 amount to 20 millions, which sum it would never 
 exceed, and never fall below 16 millions. In 
 twenty years, the amount of these loans would be 
 L. 204, 200,000 ; and in each period of fourteen 
 years after the first, the amount of supplementary 
 loans would be 238 millions. 
 
 A sinking fund of one per cent, on the nominal 
 capital, supposed funded in the three per cents, 
 at 60, and therefore equal to l-60th of the sum 
 borrowed, was, agreeably to the system of 1 792, 
 to be added to the interest of these supplementary 
 loans : and this charge to be provided for by im- 
 posing new taxes. It was proposed to diminish 
 the amount of these taxes, or to supersede them 
 altogether, by taking aid from the falling in of 
 annuities, and from the surplus of the present 
 sinking fund, after the amount of the same should 
 exceed the interest of the debt remaining unre- 
 deemed. This surplus was expected to become 
 available in the year 1817. 
 
 If a larger sum than 11 millions was required 
 for the service of any year, it w T as to be raised by- 
 other arrangements. 
 
 As the ministry who planned this system did 
 not continue long in office, it was never followed 
 out after the first year. Its merits will be con- 
 sidered afterwards. 
 
 § 4.
 
 103 
 
 § 4. ME. VANSITTART S PLAN OF FINANCE. 
 
 The plan of finance proposed this year (1813) 
 by Mr. Vansittart, and now adopted by Parlia- 
 ment, is a modification of Mr. Pitt's sinking 
 funds ; and, among other objects, is intended to 
 rescind the alterations, which have been made in 
 these funds, as originally established in 1786 and 
 1792, by subsequent acts of Parliament, and re- 
 store them, as far as practicable, to the state in 
 which they would have stood if no such altera- 
 tions had taken place. It will be proper, there- 
 fore, to recapitulate the original enactments and 
 alterations, in order to render the new system 
 more clearly intelligible. 
 
 The original sinking fund of 1786, consisting 
 of an annual grant of L.l, 000,000 from the con- 
 solidated fund, (increased in 1792 to L.l, 200,000) 
 together with the interest of the debt redeemed, 
 and annuities for lives or years which might ex- 
 pire, but limited not to exceed four millions, was 
 appropriated for the redemption of the debt then 
 existing, of L.288,23 1,248; and therefore when 
 a sum of redeemed debt, to that amount, should 
 be vested in the hands of the Commissioners, that 
 debt was to be considered as discharged. 
 
 In 1792, when the war with Prance com- 
 menced, ami new loans became necessary, a 
 sinking fund of one per cent, was created on the 
 nominal sum of each loan, which, it was esti- 
 mated,
 
 104 
 
 mated, would redeem it within 45 years at far- 
 thest from its contraction. In the succeeding 
 years this system was so far deviated from, that 
 loans to the amount of L.86,796,875 were con- 
 tracted, without any sinking fund being provided 
 for their discharge. 
 
 Had the original system of 17S6 and 1792 been 
 adhered to, so soon as the debt of 1786 was re- 
 deemed, the Nation would have been eased of 
 taxes to the amount of the interest of that debt, 
 and of the sum appropriated to the first sinking 
 fund ; or these sums, or any part of them, might 
 have been reserved for the charge of such loans 
 as the exigencies of the times should require. 
 
 Also, after 45 years, or perhaps a shorter pe- 
 riod, from the contraction of each loan, the na- 
 tion would have been eased of taxes to the amount 
 of the interest and sinking fund of that loan, or 
 these sums reserved to bear the charge of future 
 loans, as abovementioned. 
 
 In 1802, the two sinking funds were united and 
 appropriated to the discharge of the debt exist- 
 ing at that time, amounting to L.567,008,978, 
 or, deducting the part then redeemed, to 
 L.499,753,063, besides annuities for lives or 
 years. The limitation of the sinking fund to four 
 millions was repealed ; and loans contracted in 
 future were to be accompanied with a sinking 
 fund of one per cent. ; each sinking fund of this 
 kind being applied agreeably to the enactment of 
 
 1792,
 
 10., 
 
 1792, to the separate discharge of the loan to 
 which it was attached, until that loan was com- 
 pletely discharged ; and then to terminate, or be 
 released for future exigencies. 
 
 The effects produced by these alterations in 
 the sinking funds were, 
 
 1st. The prospect of any relief from existing 
 burthens, or the release of any funds at present 
 appropriated, for future exigencies, was protract- 
 ed by the union of the sinking funds to a more 
 distant period. By the original plan, such relief 
 would have taken place when the debt of 178C, 
 amount L.238,23 1,248, was redeemed, which was 
 expected about 1813. By the union of the sink- 
 ing funds, no relief could be obtained till the 
 debt of 1802, amount L.499,753,OG3, should be 
 relieved, which was not expected till 1830. 
 
 2d. By repealing the limitation of the sinking 
 fund to four millions, the united amount has been 
 increased far beyond what was originally in- 
 tended. 
 
 3d. The amount of taxes for supplying this en- 
 larged sinking fund has been much increased, at 
 the same time that no relief is obtained from the 
 repeal of the taxes appropriated t<> the redeemed 
 debt, until the whole debt existing in 1S02 shall 
 be redeemed. 
 
 The design of Mr. Vansittait's plan is to coun- 
 teract these effects : to provide at present that 
 relict "which the public would have obtained from 
 j> the
 
 106 
 
 llie original plan ; to restrain the excessive in- 
 crease of the sinking fund ; and, at the same time, 
 to afford equal security to the public creditors as 
 they were entitled to by the act of 1 792, by se- 
 curing the redemption of each loan in some way 
 or other, within a period not exceeding 45 years 
 at farthest from its contraction. 
 
 Tor these purposes it is proposed, 1st, That 
 whereas a sum equal to the debt of 1786, and 
 bearing an interest nearly equal to the interest of 
 that debt, is now vested in the hands of the Com- 
 missioners ; that so soon as the interest of the 
 debt redeemed shall become fully equal to that 
 of the debt of 1786, that debt shall be declared 
 discharged, and the sums hitherto appropriated 
 for the interest and sinking fund of the same shall 
 be appropriated, so soon as required, to bear the 
 charge of future loans ; and therefore no new 
 taxes shall be imposed for the interest or sinking 
 fund of the new loans, till the same amount to a 
 sum equal to the interest of that considered as re- 
 leased. By this means the loans of 1813, 1814, 
 1815, 1816, and part of that of 1817, will be 
 defrayed without any additional taxes. 
 
 2d. Whereas loans to the extent of L.S6,796,375 
 were charged on the consolidated fund in 1802, 
 without any sinking fund attached to them, in 
 consideration that the advantages abovemention- 
 ed, given to the general sinking fund by the en- 
 actments of that year, enabled it to bear that bur- 
 then j
 
 107 
 
 then ; it is proposed, now that these enactments 
 are partially repealed by the new system, in order 
 to place the public creditors in a situation equal- 
 ly favourable to what they held by the establish- 
 ment of 1792, that the one per cent, sinking 
 fund on the abovementioned sum, amounting to 
 L.S67,963, should be replaced to it. 
 
 3d. That as the amount of exchequer bills in 
 circulation, and not redeemed within the year, 
 has much increased, and at present is about 
 L. 26,000,000, that a sinking fund of one per cent, 
 on that sum, or L.2(iO,000, shall be provided ; 
 and that taxes to the amount of L. 1,1 27, 963 
 shall be imposed this present year, to meet that 
 sum, together with the sum mentioned in the last 
 article ; and that, in like manner, a sinking fund 
 of one per cent, shall be annually provided for 
 any addition to the amount of exchequer bills in 
 circulation, for the discharge of which, within 
 the year, no funds are provided. 
 
 4th. That, in future, instead of allocating the 
 Sinking fund of one per cent, for the discharge of 
 each separate loan, the whole funds of this kind 
 shall be united, and applied to the discharge of 
 the first contracted loan ; and so soon as a sum 
 equal to that loan shall be redeemed, the charge 
 on the same shall be considered as released for the 
 public service ; and in like manner each succcs- 
 sive loan shall be redeemed, and its charge re- 
 leased, in the order of their contraction, by the 
 r 2 united
 
 108 
 
 united produce of the sinking funds appropriated 
 for the redemption of all the loans contracted 
 since 1792 : But the whole sinking fund created 
 by the act of 1786, or by any subsequent acts, 
 shall be continued and applied, until the total re- 
 demption of all the debt now existing, or to be 
 created during the present war. 
 
 5th. As, by this arrangement, the discharge 
 of successive loans, instead of commencing from 
 their contraction, is postponed till all prior loans 
 be discharged j in order more effectually to se- 
 cure the payment of each loan within forty-five 
 years, a sinking fund, for the excess of the loan 
 above the sum applicable in the same year to the 
 reduction of the public debt, shall be provided, 
 equal to one half of the interest, and a sinking 
 fund of one per cent, on the nominal capital of 
 the remainder, agreeably to the act of 1792.* 
 
 6th. That the amount of taxes imposed each 
 year shall be determined as follows : — The time 
 of the discharge of each loan, according to arti- 
 cle 4th, being estimated, and the charge on the 
 loan for the year, according to article 5th : Then, 
 if no loan falls in within the year, new taxes shall 
 be imposed equal to the interest and sinking fund 
 of the loan contracted ; but, if one or more loans 
 fall in, the interest on these loans, being released, 
 shall be appropriated to the charge of the new 
 pne, and taxes imposed for the surplus only j and 
 
 if 
 
 * See Note XXI,
 
 I OP 
 
 if the interest on the loans released exceed the 
 charge on the loans contracted, no taxes shall be 
 imposed that year; and the surplus of interest 
 released shall be reserved in aid of the charge of 
 the loan of the subsequent year. 
 
 5 5, REDEMPTION OF THE NATIONAL DEBT BY THE 
 PURCHASE OF THE LAND TAX. 
 
 Taxes in various forms have been frequently 
 but not permanently imposed on land in England, 
 from a very remote time. The present land tax 
 commenced in 1692, when a valuation of the land 
 was made, and although considerably below the 
 real value at the time, it afforded a revenue of 
 about L.50O,00O, at one shilling per pound, in- 
 cluding a like tax upon personal property, esti- 
 mated at a very low rate. The valuation made 
 at that time has never been altered ; and the tax 
 has been imposed annually till 1798, sometimes 
 at one shilling, sometimes at two shillings, some- 
 times at three shillings, most frequently at four 
 shillings, which rate it has never exceeded. This 
 tax was long considered as a heavy burthen, and 
 much resisted by the landed interest. Of late 
 years it has been less regarded, partly from the 
 increasing influence of the mercantile interest, 
 and partly from its becoming, in consequence of 
 the increase of the rent of land, the deterioration 
 
 of
 
 110 
 
 of the value of money, and the general magnitude, 
 of our taxes, comparatively an inferior object. 
 
 In 1798, the land tax was rendered perpetual 
 at four shillings per pound, and the proprietors 
 were empowered to purchase the sums charged 
 on their estates for capital in the three per cents, 
 affording an equal dividend. If they did not ac- 
 cept this offer within a limited time, it might be 
 sold to others for capital affording a dividend of 
 one- fifth more than the tax purchased. The 
 term for purchase has been since repeatedly ex- 
 tended, and various regulations enacted. In con- 
 sequence of these enactments, the purchases of 
 land tax amounted the first year to L. 13,059,586 
 in the 3 per cents., and the second year to 
 L.3,034,216, but afterwards the purchases went 
 on languidly ; and after fourteen years the amount 
 of capital transferred for this purpose, on the 1st 
 February 1813, was L.24,378,804, and the land 
 tax redeemed, L.73 1,364, being somewhat more 
 than one-third of the whole. In order to encou- 
 rage the completion of this scheme, an act was 
 passed last session, in which terms more advan- 
 tageous to the purchaser were offered.* 
 
 This plan is, in effect, no other than a transfer 
 of part of the capital of the funded debt from the 
 former stockholders to the landed proprietors. 
 These last pay a value for the capital with which 
 
 they 
 
 * See Note XXU.
 
 Ill 
 
 they redeem their land tux, and their relief from 
 that tax is equivalent to their receiving a divi- 
 dend to the same extent. The landholders may 
 still be considered as subjected to the land tax at 
 its highest rate ; though some of them pay it by 
 drawing a dividend for capital in the funds, which 
 they have purchased for value, and have thereby 
 become stockholders to that extent. The public 
 revenue may still be considered as drawing the 
 whole of the land tax, and paying the whole of 
 dividends. Could the portions of other taxes 
 payable by particular classes of men be ascertain- 
 ed, it might as well be proposed to them to pur- 
 chase an exemption from these taxes. Such of 
 them as were able might embrace the offer, and 
 after they had paid the value and received their 
 exemption, they would be exactly in the same 
 circumstances as if they had purchased capital in 
 the funds, drawn their dividends, and applied 
 them in payment of taxes. The public, in like 
 manner, would lose in taxes what they saved in 
 dividends. We cannot, therefore, consider the 
 part of the national debt redeemed by the pur- 
 chase of the land tax as affording any relief to 
 the public burthens. 
 
 It has always been considered as necessary, up- 
 on the principles of the British constitution, that 
 part of the taxes should be granted annually by 
 Parliament as a restraint on the power of the 
 Crown. The land and malt taxes, producing 
 
 about
 
 112 
 
 about L.2, 700,000 annually, were formerly re- 
 served for this purpose. Since the land tax was 
 rendered perpetual, certain duties on sugar and 
 tobacco, and on offices, pensions, and salaries, 
 have been granted annually, together with the 
 malt tax. The average net annual amount of 
 these taxes for three years preceding 5th January 
 1813, was L.4,806,726. 
 
 § 6. OPERATION OF THE SINKING FUNDS. 
 
 The amount of money applied for the redemp- 
 tion of the national funded debt, and of capital 
 and interest redeemed since the commencement 
 of the sinking fund in 1786, to 1st February 
 1813, and the produce of the sinking fund at that 
 time, are as follows : 
 
 3 per
 
 11.) 
 
 3 per cents 
 
 4 per cents. 
 
 5 per cents. 
 
 Sums ex- 
 pended. 
 
 126,822,903 
 
 6,586,9 '54 
 
 126,99* 
 
 Converted for life annuities, 
 Transferred for purchase of land tax, 
 
 Capital 
 redct-med. 
 
 202,52 
 
 7,796,400 
 1 4-2,000 
 
 133,536,836210,461,356 
 1,961,582 
 
 212,422,938 
 
 24,37 8, S 04 
 
 2S6~.80I.74S 
 
 Permanent annual grant to sinking fund, 
 
 Additional permanent annual grant, 
 
 Amount of I per cent, sinking fund, Table VI. 
 
 Sinking fund of 1807, on Lord Henry Petty 's plan, 
 
 Annuities, the term of which is expired, 
 
 Lite annuities, of which the nominees have died 
 
 prior to 5th July 1802,* - 
 
 Life annuities unclaimed for three years prior to 
 
 5th January 1813, 
 
 Deduct life annuities granted for capital, L. 140,3 3 3 
 of which expired, ... 4,660 
 
 Interest 
 redeemed 
 
 6"075,688 
 311,856 
 7J00 
 
 6,394,644 
 58,847 
 
 6,453,491 
 
 1,000,000 
 200,000 
 
 4,738,683 
 
 620,255 
 
 79,880 
 
 21,141 
 
 _ 30, 135 
 13,149,58 
 
 135,67 3 
 13,013,914 
 
 Amount sinking fund, 1st February 1813, 
 
 The 3 per cents, were redeemed nearly at 62£ at an average. 
 
 The 4 per cents, at 84i. 
 
 The 5 per cents, at S9£-. 
 
 The fuirded debt, 1st February 1813, was L.8 12,0 1 3,1 35 
 
 Redeemed by sinking fund, - - - 210,461,356 
 
 Converted for life annuities, 
 
 Transferred for purchase of land tax, 
 
 L.601, 551,779 
 1,961,582 
 
 L.599,590.197 
 24,378,804 
 
 Unredeemed debt of Britain, 1st February 1813, L.575 211,393 
 
 Which 
 
 .«*» Note XX II I
 
 114 
 
 Which debt was invested in the following funds. 
 
 Bank annuities, L.l 1,686,800 
 
 Loan of 1726, 1,000,000 
 
 South sea annuities, including loan of 1751, - 16,125,684 
 
 3 per cent, consolidated, - 312,81)4,703 
 
 3 per cent, reduced, ----- 75,760,033 
 
 L.420,467,222 
 
 4 per cent, consolidated,, - - - - 61,060,921 
 
 5 per cent, consolidated, - L.92,060,254 
 Loyalty loan, - - 1,622,994 
 
 93,683,249 
 
 L.575,21 ,393 
 
 Table III. contains the amount of the capital 
 funded debt each year,* the amount redeemed 
 each year, and the balance, or difference, be- 
 tween the capital funded and the capital redeem- 
 ed; also the whole funded debt existing each 
 year, without regard to redemption ; the whole 
 debt redeemed, and the whole debt unredeemed. 
 But this gives an imperfect view of the progress 
 of the public debt ; for the loan of the year is 
 perhaps made in the five per cents, and the re- 
 demption in the three per cents. ; and therefore, 
 if the capitals only be exhibited, the debt re- 
 deemed will appear more in proportion to the 
 debt contracted than it really is. Therefore, 
 other columns are inserted, exhibiting the value 
 of the capital funded, the capital redeemed, and 
 the balance, reduced to 3 per cents, j the reduc- 
 tion 
 * See Note XXIV.
 
 115 
 
 tion of the capital being made in proportion to 
 the rate of interest, when the loan is wholly or 
 partially funded at a higher rate than .'J per cent. 
 
 If the whole of the present funded debts were 
 reduced to three per cents, the amount would 
 stand as follows : 
 
 3 per cents L.420,467,222 
 
 Value of L.61,060,921 — 4 per cents. 81,414,561 
 of L.93,683,249— 5 per cents. 156,138,478 
 
 L.658,020,531 
 
 And if this be reduced to 5 per cents, or the sum 
 lor which it might be redeemed when the 3 per 
 cents, are at GO, it comes, exclusive of the capital 
 transferred for land tax, to L.394,812,318. 
 
 § 6. IRISH, IMPERIAL, AND PORTUGUEZE SINK- 
 ING FUNDS. 
 
 A sinking fund for the redemption of the 
 Irish Debt payable in Britain, was established 
 in 1797, similar to the British one per cent, sink- 
 ing fund of 1792. 
 
 The amount of this sinking fund, 1st February 
 1813, was, 
 
 1 per cent, on L.68, 930,250, being 
 the amount of the Irish debt pay- 
 able in Britain, - L.os9,302 
 Sinking fund on long anuui; 
 
 ied forward, - - 1. 
 
 Broi
 
 iir> 
 
 Brought forward, - - L.698,131 
 Dividend on L. 10,653,499, redeemed 
 
 at 3 per cent. - 319,605 
 
 Amount of sinking fund for Irish 
 debt payable in Britain, 1st Febru- 
 ary 1813, .... L.1,017,736 
 
 Capital Irish debt payable in Bri- 
 tain, 1st February 1813, - L.68,930,250 
 Of which redeemed, - •' 10,653,499 
 
 Unredeemed debt, - - L.58,276,751 
 
 Besides L. 104,083 annuities, which expire in 1860. 
 This capital is invested in the following funds. 
 3 per cent. cons. - - - L.28,086,904 
 
 3 per cent, reduced, - - 24,563,472 
 
 4 per cent. cons. - 5,054,375 
 
 5 per cent, cons. - - , .. 572,000 
 
 L.58,276,751 
 
 Which reduced to 3 per cents, a- 
 
 mounts to L. 60, 342, 8 75 
 
 And to 5 per cents. 36,205,725 
 
 The sum paid for redeeming the above capital 
 of L. 10,653,499, was L.6,695,894, being about 
 62* per cent, at an average. 
 
 Table IV. contains, besides the particulars for- 
 merly mentioned, the Irish debt payable in Lon- 
 don
 
 117 
 
 don redeemed each year, the total redeemed, and 
 the balances remaining unredeemed each year. 
 
 There is also a sinking fund, established at the 
 same time, for the redemption of the Irish debt 
 payable in Ireland, which consists of a permanent 
 grant of L.67,635 ; of a charge of one per cent. 
 on loans payable in Ireland ; of dividends on stock 
 redeemed; and of annuities fallen in. The sum 
 appropriated annually to the Irish sinking fund is 
 L. 100,000 Irish currency, of which L.32,365 is 
 appropriated for the reduction of the debt bor- 
 rowed in Britain for Ireland in 1797; and the 
 remainder, L.67,635, together with the expired 
 annuities, is appropriated to the reduction of the 
 remainder of the Irish debt existing before 1797. 
 
 The amount of capital debt payable in Ireland, 
 redeemed on the 5th January 1812,* was, 
 
 Irish currency. 
 In 3^- per cents. - - - L.2,796,829 
 In 5 per cents. - - - 1,815,357 
 
 L.4,612,186 
 
 Which was redeemed for - - L.S,709,105 
 
 And the sinking fund for the debt payable in 
 Ireland, 5th January 1812, was, 
 
 Part 
 
 * The account of the debt redeemed in Ireland in I SIC ha* 
 not betn reenved.
 
 118 
 
 Part of annual grant, as above, - L.67,635 
 Expired annuities, ... 54,043 
 
 1 per cent, on loans, - - 203,962 
 
 L.325,640 
 
 Interest on debt redeemed, - 188,657 
 
 L.5 14,297 
 
 A sinking fund of one per cent, was charged 
 on the imperial loan of 1797, being L.36,693 
 annually. There was no sinking fund for the 
 loan of 1795. Now the amount of the two impe- 
 rial loans was - L.7,502,633 
 And the capital redeemed by the 
 
 above sinking fund, 1st February 
 
 1813, - 1,361,974 
 
 Imperial debt remaining 1st Febru- 
 ary 1813, - - - L.6, 140,659 
 
 The above debt was redeemed for L.824,328 
 being about 60^ per cent, at an average. 
 
 The present imperial sinking fund consists of 
 the abovementioned charge of 1 per cent. L.36,693 
 Dividend on L.l, 36 1,974, redeemed at 
 
 3 per cent. ----- 40,859 
 
 L.77,552 
 
 The Loan for Portugal in 1809, was charged 
 with an annual payment of L.30,000, in addition 
 
 to
 
 119 
 
 to the interest and charges of management, ibi 
 its redemption. 
 
 The capital funded for that loan in the 3 per cent. 
 
 • reduced, was - - - L.895,522 
 
 Of which redeemed, 1st Feb. 1813, 176,674 
 
 And remaining unredeemed, - L.7 18,848 
 The above debt was redeemed for L. 112,367, 
 
 being about 63\ per cent. 
 
 The present sinking fund is, 
 Annual appropriation, - L.30,000 
 
 Dividend on L. 176,674, redeemed at 3 
 
 per cent .5,300 
 
 L.35,300 
 
 RECA.
 
 HO 
 
 RECAPITULATION. 
 
 By collecting the particulars above detailed, 
 the state of the funded debt due or guaranteed 
 by Britain, on the 1st February 1813, appears 
 as follows : 
 
 Amount funded. 
 British debt, 
 Of which converted into 
 life annuities, - 
 
 Irish debt, 
 Imperial debt, - 
 Portuguese debt, 
 
 Of which redeemed by 
 sinking funds. 
 British, 
 Irish, 
 
 Imperial, - 
 Portuguese, 
 
 Remaining unredeemed 
 by sinking funds. 
 British, 
 Irish, 
 Imperial, 
 Portuguese, 
 
 Transferred for land tax, 
 
 tax,) 
 
 Irish, 
 
 Imperial, - 
 Portuguese, 
 
 5 per cents. 
 
 4 per cents. 
 
 5 per cents. 
 
 Total. 
 
 649,350,565 
 
 68,857,321 
 
 93,825,249 
 
 812,012,135 
 
 1,961,582 
 
 
 
 1,961,582 
 
 647,568,9^3 
 
 
 
 310,051^555 
 
 65,503,87 ^ 
 
 5,054,375 
 
 572,000 
 
 68,950,250 
 
 7,502,655 
 
 
 
 7,502,635 
 
 895,522 
 
 
 
 895,522 
 
 
 
 
 
 719,071,013 
 
 73,911,696 
 
 94,397,249 
 
 887,579,958 
 
 202,522,956 
 
 7,796,400 
 
 142,000 
 
 210,461,556 
 
 10,653,499 
 
 
 
 10,655,499 
 
 1,361,974 
 
 
 
 1,561,974 
 
 176,674 
 
 
 
 176,674 
 
 214,715,103 
 
 7,796,400 
 
 142,000 
 
 222,653,503 
 
 444,846,027 
 
 61,060,921 
 
 93,685,249 
 
 599,590,197 
 
 52,650,376 
 
 5,054,375 
 
 572,000 
 
 58,276,751 
 
 6,140,659 
 
 
 
 6,140,659 
 
 718,848 
 
 
 
 718,848 
 
 504,355,910 
 
 66,115,296 
 
 94,255,249 
 
 •1647726,455 
 
 24,578.804 
 
 
 
 24,578,804 
 
 
 
 
 
 479,977,106 
 
 66,115,296 
 
 94,255,249 
 
 340,547,651 
 Reduced to 
 
 
 Reduced to 
 
 
 3 per cents. 
 
 5 per cents. 
 
 al transferred for land 
 
 
 
 . 
 
 658,020,531 
 
 594,812,318 
 
 - 
 
 60,342,876 
 
 56,205,725 
 
 - 
 
 6,140,659 
 
 3,684,595 
 
 . 
 
 718,848 
 
 431,309 
 
 
 
 725,222,914 
 
 +35,133,747 
 
 And
 
 121 
 
 And the charge for interest, annuities, and ma- 
 nagement, is as follows : 
 
 
 
 Interest. 
 
 Annuities 
 
 Manage- 
 
 Total 
 
 
 
 
 
 meat 
 
 
 On British debt, 
 
 267927T,472 
 
 1, 206,171 
 
 294 673 
 
 28^426^378 
 
 Deduct from interest and 
 
 ma- 
 
 
 
 
 
 nagement, and add to annui- 
 
 
 
 
 
 ties, fur stock converted, 
 
 ■ 
 
 — 58,847 
 
 ■ja^i7T(J25 
 
 + 135,675 
 
 — 667 
 
 + 76jl59 
 28,5027477 
 
 
 L.TllTsT? 
 
 294,005 
 
 On Irish debt. 
 
 - 
 
 2,129,891 
 
 104,083 
 
 24,132 
 
 2,258,106 
 
 On Imperial debt. 
 
 - 
 
 225,079 
 
 230,000 
 
 4,505 
 
 459,584 
 
 < »u Portuguese debt, - 
 
 - 
 
 '26,865 
 
 
 301 
 
 27,169 
 
 
 king 
 
 29^48,460 
 
 1,675,930 
 
 522^94 6 
 
 31,247,336 
 
 Of which redeemed by sin 
 
 
 
 
 
 funds. 
 
 
 
 
 
 
 British, - . - 
 
 - 
 
 
 
 71,556 
 
 6,466,200 
 
 Irish, 
 
 _ 
 
 519,605 
 
 
 3,622 
 
 323,227 
 
 Imperial, 
 
 - 
 
 40,8.-'.) 
 
 
 463 
 
 41,322 
 
 Portuguese, 
 
 by 
 
 5.30(t 
 
 
 60 
 
 5,560 
 
 
 " 6.760408 
 
 
 75,701 
 
 6,83~6,109 
 
 Remaining unredeemed 
 
 
 
 
 
 sinking funds. 
 
 
 
 
 
 
 British, 
 
 - 
 
 20,4 71,981 
 
 1,341,847 
 
 222,44! 
 
 22,056,277 
 
 Irish, 
 
 - 
 
 1,810,286 
 
 104,083 
 
 20,510 
 
 1,934,879 
 
 Imperial, 
 
 - 
 
 18i,'_>20 
 
 250,000 
 
 4,042 
 
 418,262 
 
 Portuguese, 
 
 ■ 
 
 21,565 
 
 
 244 
 
 21,809 
 
 
 
 1,675,930 
 
 247,245 
 
 24,41 1.227 
 
 Transferred for land tax, 
 
 " 
 
 731,364 
 
 
 
 
 
 
 uPTr^za 
 
 238,950 
 
 23,67 1.56S 
 
 Such is the extent of the funded debt, due, or 
 guaranteed by Britain, and the annual charge at- 
 tending the same. It cannot now be doubted 
 that the Imperial and Portuguese debt are as 
 much a charge upon Britain as any part of its 
 proper debt; and suspicions may be entertained 
 that the Irish debt payable in Britain, or per- 
 haps the whole Irish debt, will terminate in the 
 same manner. In regard to tin's, it is premature 
 at. present to form fl decided opinion. 
 
 H SECTION
 
 in 
 
 SECTION III. 
 
 Unfunded Debt. 
 
 There is always a large sum, besides the fund- 
 ed debt, due by the British government. This 
 may arise from any national expense for which 
 no provision has been made, or the provision has 
 proved insufficient, or not forthcoming at the 
 time wanted. The forms of the unfunded debt 
 are various ; but the following are the principal 
 branches. 
 
 I. Exchequer Bills. These are issued from 
 the exchequer, in consequence of acts of Parlia- 
 ment, several of which are passed every session. 
 The first were issued in 1696, to the amount of 
 L.2, 700,000, and being intended as a temporary 
 substitute for money during the recoinage at that 
 period, some of them were then so low as L.10 
 and L.5. There are none issued now under L.100, 
 and many of them are for L.500, L.1000, and still 
 larger sums. Most of them bear interest, gene- 
 rally at the rate of from 3d. to 3|d. per day for 
 L.100; and being distributed among those who 
 are willing to advance their value, they form a 
 kind of circulating medium. After a certain time, 
 they are received in payment of taxes, or other 
 monies due to government ; and the interest due 
 on them at the time is allowed in the payment. 
 
 They
 
 123 
 
 They cease to bear interest so long as they are in 
 the hands of the revenue collectors, or other pub- 
 lic officers ; but the interest re-commences when 
 they are issued again to the public. The Bank 
 of England often engages to receive them to a 
 certain extent, and thereby promotes their circu- 
 lation; and the daily transactions between the 
 hank and the exchequer are chiefly carried on by 
 bills of L.IOOO, deposited in the exchequer by 
 the bank, to the amount of the sums received by 
 them on account of Government. 
 
 These bills are sometimes granted on the cre- 
 dit of the supplies for the present year ; and in 
 this way the produce of the annual taxes is gene- 
 rally anticipated. Sometimes they are charged 
 on the supplies of the following year, and a large 
 sum is generally authorized to be raised on them 
 in time of war, to answer exigencies, by an act, 
 proceeding upon what is called a vote of credit, 
 passed near the conclusion of each session of Par- 
 liament. New exchequer bills are frequently is- 
 sued in discharge of former ones ; and they are 
 often converted into funded debt, by granting 
 capital in some of the stocks, on certain terms, to 
 such holders as are willing to accept them. — 
 The operations of this kind since 17 l Jl, have been 
 already detailed. 
 
 II. Navy BlLLS. These are issued from the 
 navy office, to answer any purpose in that import- 
 ant
 
 124 
 
 ant branch of national expenditure ; and they 
 bear interest after a certain date, if not discharg- 
 ed. A practice had long prevailed, when the 
 number of seamen for the service of the year was 
 voted, to grant a sum estimated at the rate of 
 L.4 per month for each man, allowing 13 months 
 to the year, for the whole naval expense ; wages, 
 victualling, wear of shipping, and ordnance, in- 
 cluded. In consequence of the deterioration of 
 the value of money, this allowance became insuf- 
 ficient ; and navy bills, to a large amount, were 
 issued to supply the deficiency ; and these were 
 often funded afterwards in the same manner as 
 exchequer bills. Since 1797, this practice has 
 been discontinued ; and sums, considered as ade- 
 quate in the present circumstances, voted at once 
 for the service of the navy ; since which, the 
 amount of the navy bills has not been so great as 
 formerly ; and they have been paid from the 
 money granted for the navy, without recurring 
 to the system of funding. They are now made 
 out at 90 days date, and bear interest at 3}d.. 
 per day for L.100, and are negociated as bills of 
 exchange. 
 
 III. Ordnance Bills, or Debentures, are is- 
 sued in like manner from the ordnance office, for 
 supplying the exigencies in that branch of expen- 
 diture. 
 
 Victualling and transport bills are issued from 
 
 the
 
 125 
 
 the respective ollices in the same manner. Xlie're 
 is also always a large amount of floating debt at 
 the navy, victualling, transport, and ordnance of- 
 fices, for which no bills have been issued. 
 
 Table VII. exhibits the amount of exchequer 
 bills, navy bills, and ordnance bills, and other 
 debts at these offices, and the whole amount of 
 unfunded debt, in these three branches, on the 
 5th January of each year, from 1793 to 1813; 
 also the increase or decrease during the preced- 
 ing year. The fluctuation of the unfunded debt 
 explains in part the cause of the great inequality 
 of the addition to the funded debt, and must be 
 taken into consideration along with the increase 
 of the funded debt, after reducing both to the 
 same rate of interest, in order to form a judg- 
 ment of the whole increase of the public debt in 
 any year.* 
 
 A new kind of debt has originated in the finan- 
 cial arrangements of the present year. The hold- 
 ers of exchequer bills proposed to be funded, and 
 who were willing to contribute a further sum, 
 payable by instalments, to the extent of one half 
 of the bills funded, on the terms proposed, re- 
 ceived assignable debentures bearing interest at. 
 .7 per cent, and payable half yearl\ at I lie same 
 terms as the 3 per cent, reduced stoek ; the hold- 
 ers of which are entitled to demand payment in 
 worn'}-, on the 5th April is \j, or the 5th April 
 
 of 
 
 ie* Note XXIV.
 
 12(5 
 
 of any succeeding year, upon three months pre- 
 vious notice ; or, in place of money, to receive 
 for each L.IOO in said debentures, L.IOO in the 
 5 per cent, cons., L.120 in the 4 per cent, cons., 
 or L.150 in the 3 per cent, reduced, in option of 
 the holder. The sum raised in this manner was 
 L.800,000.* 
 
 Besides the three principal branches of the un- 
 funded debt, there are always a number of de- 
 mands on the public, for bills accepted by the 
 treasury j army charges, and miscellaneous ser- 
 vices of various kinds. These are daily fluctuat- 
 ing, and their amount at any particular time can- 
 not be easily ascertained. 
 
 The amount of these debts on the 5th January 
 1813, and the two preceding years, together with 
 the whole amount of the unfunded debt as re- 
 ported to Parliament these years, and the annual 
 increase, are subjoined to the Table. 
 The amount of the three great branches, 5th Ja- 
 nuary 1813, was - - L.54,055,632 
 Miscellaneous articles, - - 3,783,064 
 
 Amount reported to Parliament, L.57, 838,696 
 Increase of unfunded debt in 1812, L.3,800,637 
 To these sums a large addition may be made, for 
 demands due by the public, not brought to ac- 
 count. 
 
 The outstanding taxes, due to the public, may 
 
 be 
 * Resolution. House of Commons, proposed 8th July ISIS. II.
 
 127 
 
 be placed against the unfunded debt. The only 
 article of this sort deserving notice, is the pro- 
 perty tax, on which there is a large arrear. It 
 has amounted for some years past to about eight 
 millions ; but measures are now adopted for its 
 readier collection. 
 
 The imprest moneys, or sums in the hands of 
 the treasurers of the army and navy, and other 
 public accountants, and which, so far as not ex- 
 pended, are refunded to the public at clearance, 
 may also be stated against the unfunded debt. 
 The amount of these cannot be ascertained. 
 
 The unfunded debt of Ireland unprovided for, 
 ©n the 5th January 1813, consisted of 
 
 Irish currency. 
 Exchequer bills at 5 per cent. - L.2,508,940 
 '•Mini due to Britain on account, - 2,820,400 
 
 L.5,329,340
 
 US 
 
 POSTSCRIPT. 
 
 Additions to the funded debt, Session 1S12, — 13. 
 
 ft Exchequer bills funded, amount 
 
 Sum funded at L.115. 10s. in 5 per cent, cons 
 Interest at 5 per cent. - 
 
 Management, supposed at L.500, 
 Total charge, - 
 
 L. 12,000,000 
 L.l5,S6~aooa 
 
 L.693^000 
 
 4,158 
 
 L.6~97,15S 
 
 P. Exchequer bills funded, amount 
 Sum funded at L.139 in 4 per cents. 
 Interest at 4 per cent. 
 Management at L.300, 
 Total charge, 
 
 L.5,755,700 
 L..5,220,425 
 _ K208^816 
 
 1,566 
 
 L.2 10,382 
 
 Q. Joint loan for Britain and Ireland, funded at L.110 in the 3 per cent. 
 reduced ; L.60 in the 5 per cent. cons. ; and a long annuity of 8s. Gd. 
 for 46^- years. 
 
 Sums raised, - 
 
 Sums funded in 5 per cunt, reduced, 
 
 and in 3 per cent. cons. 
 Total funded, - 
 
 Interest, - - - - 
 
 Long annuities, - 
 
 3Iana<renient at L.500, 
 
 Britain. 
 
 Ireland. 
 
 Total. 
 
 21,000,000 
 
 6,000,000 
 
 27,000,000 
 
 23,100,000 
 12.600,000 
 
 6,600,000 
 5,600,000 
 
 29,700,000 
 16,200,000 
 
 45T9b"bTobo 
 
 "L577.000 
 
 114,750 
 
 1,49~L750 
 
 35,700,000 
 
 L07T,000 
 
 89,250 
 
 1,160,250 
 
 12,878 
 
 10,200,000 
 
 506,000 
 
 25,500 
 
 551,500 
 
 1,175,128 
 
 
 
 The amount money raised for Britain, in Session 1 SI 2,-15, including 
 
 exchequer bills funded, is 
 
 The capital funded in 5 per cents, 
 in 4 per cents. 
 in 3 per cents. 
 Amount funded, - 
 
 Interest, - 
 
 Long annuities, - 
 Management, - 
 
 Total charge, exclusive ef sinking fund,
 
 PART III. 
 
 EXAMINATION OF PLANS FOR THE REDEMPTION OF 
 THE NATIONAL DEBT, AND OTHER FINANCIAL 
 OPERATIONS. 
 
 SECTION I. 
 
 'Examination of Dr. Piice's Views of Finance. 
 
 Dr. Price's views of 'the national debt were 
 first announced in his Treatise on Reversionary 
 Annuities, in the year 1771 ; and more fully un- 
 folded in an appeal to the public on that subject, 
 published the following year \ and in some subse- 
 quent publications. 
 
 His plan for the redemption of the national 
 debt, is the application of a certain sum of mo- 
 ney annually, set apart from the rest of our an- 
 nual revenue, and appropriated for the purchase 
 of stock at the current prices ; the interest of the 
 part of the debt thus redeemed being always add- 
 ed to the original sum to increase the operation 
 of the fund. This system to be inviolably fol- 
 8 lowed,
 
 130 
 
 lowed in time of war as w r ell as in time of peace ; 
 and money, when wanted, to be raised by new 
 loans, as if no such fund existed. To secure the 
 steady execution of this plan, the management of 
 the fund to be committed to special Commission- 
 ers ; acting under penalties in such a manner as 
 would take it out of the hands of the treasury, 
 and form a check upon the House of Commons 
 itself. 
 
 The efficacy of this plan depends upon the 
 operation of compound interest, which he consi- 
 ders as omnipotent. Money, he says, bearing 
 compound interest, increases at first slowly ; but 
 the rate being continually accelerated, it becomes 
 in some time so rapid as to mock all the powers 
 of imagination. 
 
 He proceeds to illustrate and enforce his plan 
 in the following manner. 
 
 There are three ways in which a nation may 
 apply a sinking fund : 
 
 1st, The interests disengaged by it from time 
 to time may be applied in payment of the public 
 debt. 
 
 2d, They may be applied to current services. 
 
 3d, They may be immediately annihilated by 
 abolishing the taxes charged with them. 
 
 In the first way of employing a sinking fund, it 
 always increases, and that with a force which is 
 continually accelerated y and which, therefore, 
 
 however
 
 131 
 
 however small at first, becomes at length equal to 
 wy effect. In the second way, it admits of no 
 increase ; because it always acts with the same 
 force. In the first way it resembles a grain of 
 corn sown, and the produce sown again, and so 
 on ; which will soon afford an increase sufficient 
 to support a kingdom. In the second way, it re- 
 sembles a seed, the produce of which is con- 
 sumed. What has been said of the second way, 
 is true in a higher degree of the third. A fund 
 of the first sort is money bearing compound inte- 
 rest ; a fund of the second sort is money bearing 
 simple interest ; and a fund of the third sort is 
 money bearing no interest at all. 
 
 In illustration of this, the Doctor supposes an 
 annual sum of L.200,000, set aside as a fund for 
 keeping the debt, which the nation is continuallj) 
 incurring, in a state of redemption. If applied 
 the first way, a debt of L.200,000 is discharged 
 the first year, which, supposing interest at rive 
 per cent., disengages an annuity of L. 10,000. If 
 this annuity, instead of being spent on services, 
 is added to the fund, and both employed in pay- 
 ing debts, an annuity of L. 10,500 will be disen. 
 gaged the second year, or L.20,.500 in both years. 
 Computing in this manner, the amount of annui- 
 ties disengaged increases faster each succeeding 
 year, and in 86 years, becomes L. 1:3,083,000, 
 which being added to the original sinking t'liinl, 
 amounts to L.13,283,000. The full value, there- 
 
 9 'J
 
 132 
 
 fore, of an annuity of L. 13,083,000, will have 
 been paid off in eighty-six years, that is, nearly 
 262 millions of debt, and consequently, though 
 the state had been adding three millions to its 
 debt every year, or 258 millions altogether, it 
 would have been more than discharged, and that 
 at no greater expense than the annual saving of 
 L.200,000. 
 
 In the second way, the sum of annuities disen- 
 gaged by it would have been eighty-six times 
 L. 10,000, or L.860,000, and the discharged debt 
 would have been L. 17,200,000; but besides this, 
 there would be a debt saved, in consequence of 
 applying every year the disengaged annuities to 
 current services ; for which, otherwise, equivalent 
 sums must have been borrowed. L.lO,OOOwill 
 be saved at the beginning of the second year ; 
 L.20,000 at the beginning of the third year ; and 
 L. 850,000 at the beginning of the eighty-sixth 
 year ; and altogether, L.36,550,000, which, add- 
 ed to the L. 17,200,000 of debt discharged, makes 
 the advantage to the public from this plan in 
 eighty-six years, L.53,750,000 ; and as it was 262 
 millions by the first one, the difference to the 
 public in its favour, is L. 208, 250,000. 
 
 In the third way, the whole advantage derived 
 from it, is the discharge of a debt of L.200,000 
 annually, or L. 17,200,000 in all. 
 
 Such is the substance of Dr. Price's views. 
 He goes on to illustrate them by other supposi, 
 
 tionsj
 
 1JJ 
 
 tions, which, as his method of arguing is tbe 
 same, it is unnecessary to recapitulate. His 
 work is written in a very intemperate style, and 
 contains, among others, the following assertions : 
 
 1st, That no benefit is derived from applying 
 a fund in the second of the abovementioned 
 ways, rather than the first. In both cases, the 
 taxes are continued during the operation of the 
 fund, and the national burthens are the same. 
 The difference in favour of the former, already 
 stated, is gained without any kind of loss or expense. 
 By following the latter, we subject the nation to 
 a loss of 208 millions, from a circumstance abso- 
 lutely frivolous. 
 
 2d, War would increase the efficacy of the 
 sinking fund ; and any suspension of it then would 
 be the madness of giving it a mortal blow, at the 
 very time it was making the quickest progress. 
 
 3d, A state may, without difficulty, redeem its 
 debts by borrowing money at an equal, or even a 
 higher interest than the funds bear, and without 
 providing any other funds than such small ones 
 as are necessary to pay the interest of the sums 
 borrowed. In private life, such a measure would 
 be justly deemed absurd. But, in a state, it 
 would be the effect of the soundest policy. It is 
 borrowing money at simple interest, in order to 
 improve it at compound interest. 
 
 4th, The sinking fund proposed would render 
 it of little or no consequence what interesl a na- 
 tion
 
 1,34 
 
 iion paid for its loans. Reduction of interest 
 has not been attended with the advantages com- 
 monly imagined, and, as hitherto managed, has 
 only been an expedient to postpone public bank- 
 ruptcy, by lessening the possibility of avoiding it. 
 
 The arguments already adduced in support of 
 our twelfth general proposition, are perhaps suffi- 
 cient to point out the judgment which ought to 
 be formed of this plan, and of these assertions. 
 For several reasons, however, they demand a 
 more particular discussion. 
 
 1st, The excellent character and high reputa- 
 tion of the author. A pious divine,-^a respect- 
 able scholar, — an expert calculator, — -a virtuous 
 man, — and an upright patriot.* 
 
 2d, The effects which his plan has produced 
 upon our system of national finance. It has not 
 shared the common fate of the projects of private 
 individuals, and vanished in neglect and oblivion. 
 It is the basis of Mr. Pitt's sinking fund, adopt- 
 ed fifteen years after its first publication, and now 
 followed out for twenty-seven years ; and although 
 with some deviations, yet on the whole, with a 
 steadiness seldom experienced in public measures 
 for so great a length of time, and under a succes- 
 sion of different administrations. 
 
 It 
 
 * We respect highly the integrity of the man, and believe 
 that in all his writings, he was actuated by the purest niotivey 
 for the public welfare; but we do not mean to insinuate any 
 opinion in regard to his principles of civil liberty.
 
 135 
 
 It will be proper, before proceeding, to state 
 distinctly the points in which all agree, and the 
 points at issue. 
 
 It is universally admitted, that every produc- 
 tive additional taxation tends to prevent the pro- 
 gress of the national debt, if it be in a state of 
 accumulation ; and to accelerate its discharge, if 
 it be in a state of redemption. 
 
 That every increase of expenditure, whether 
 arising from necessity or profusion, tends to in- 
 crease its accumulation, or retard its discharge. 
 
 That any sum of money, however small, im- 
 proved by compound interest, will amount, in 
 length of time, to an indefinite magnitude ; and. 
 therefore, 
 
 That any surplus of national revenue above 
 national expenditure, will be sufficient, if it con- 
 tinue for a long time, and be faithfully applied, 
 to discharge any national debt, however great. 
 
 The doctrine maintained by Dr. Price is, that 
 the formation and inviolable appropriation of a 
 sinking fund, operating by compound interest, in 
 War as well as in peace, is a measure of the utmost 
 consequence, and that the effect) of this system 
 are greatly superior to those of any other applica- 
 tion of a surplus, tin ,v/v and taxation be* 
 nal. That this is his opinion, appears from 
 the passages above quoted, and many others to 
 the same purpose. His woi ! this, or it 
 means nothing : for it w t jllcd in ques- 
 tion
 
 ISO 
 
 tion, that saving of expenditure, or increase of 
 taxation, have a powerful effect on the state of 
 national finance. 
 
 In opposition to Dr. Price's doctrine, it is main- 
 tained, that the separation of a sinking fund from 
 the general revenue, is a measure of no efficacy 
 whatever j — that the first and second methods of 
 applying a surplus abovementioned, are merely 
 different modes of official arrangement, leading 
 to the same result ; — that in time of war, when 
 the expenditure exceeds the revenue, the preser- 
 vation of the sinking fund, and consequent in- 
 crease of loans, is a system from which no advan- 
 tage can arise ; — if it could be conducted with- 
 out expense, it would be nugatory ; as it is ne- 
 cessarily attended with expense, it is pernicious ; 
 — that at the conclusion of a war, any surplus 
 revenue applied for the discharge of debt during 
 the subsequent peace, operates by compound in- 
 terest, during the continuance of peace : But the 
 notion of uniting that period to another period of 
 peace, or to a still longer period of alternate war 
 and peace, in order to obtain the powerful effect 
 of compound interest acting for a great length of 
 time, is illusory. 
 
 We return to the case supposed by Dr. Price, 
 abovementioned, and compare the effects of the 
 first and second methods of applying the surplus, 
 either in time of peace or war. 
 
 In time of peace, when the second method is 
 
 followed,
 
 137 
 
 followed, L.10,000, being the interest of the debt 
 discharged the first year, is applied to the current 
 services of the second year ; L.20,000, the third 
 year ; and these sums are supposed requisite to 
 rompleat what the service of each year requires ; 
 and, as Dr. Price observes, they must have been 
 borrowed, if the first method had been followed. 
 If loans be made for this purpose, either taxes 
 must be imposed for the payment of the interest, 
 or the sums borrowed accumulate by compound 
 interest. In the former case, the nation is sub- 
 jected to the burthen of taxes for payment of the 
 interest of L.10,000 the first year; of L.20,000 
 more, or L.30,000 altogether, the second year ; 
 and of L.36,550,O0O the eighty-sixth year ; none 
 of which would have been imposed according to 
 the second method. It is this gradually increas- 
 ing, and ultimately large additional taxation, that 
 occasions the difference of L.208,250,000 stated 
 by Dr. Price, as the loss arising from the second 
 method. If the same taxes be imposed when the 
 second method is followed, their produce is not 
 wanted for the services of the year, and must ac- 
 cumulate at the end of the period to the above- 
 mentioned sum in fa\ our of the public. 
 
 If taxes be not imposed to pay the interesl of 
 these loans, then to the L.20,000 borrowed the 
 second year, there must be added a sum sufficient 
 to pay the interest of the loan of the former 
 und, in like manner, a sum must be borrowed each 
 t succeeding
 
 I CI o 
 JO 
 
 succeeding year, equal to the interest of all the 
 former loans, by which means the amount of these 
 loans would accumulate by compound interest 
 against the public. 
 
 The disengaged annuities under the second 
 method, may be dissipated by profusion, and then 
 there will be a difference between the methods 
 equal to what Dr. Price states j but it is the pro- 
 fusion, and not the mode of application, that is 
 the cause of that difference. They may be ap- 
 plied to the construction of canals, harbours, and 
 other objects of national utility ; and the benefits 
 accruing from these to the public, may repay the 
 expense of their execution, or otherwise ; but the 
 propriety of this mode of application of surplus 
 revenue, does not belong to our present inquiry. 
 In war, let us adopt Dr. Price's supposition of 
 three millions being required annually in addition 
 to the sums raised within the year, and of conti- 
 nuing the application of L.200,000 as a sinking 
 fund ; which sum is comprehended in the loan of 
 three millions. The debt contracted in three 
 years, is nine millions ; and the additional taxes 
 for payment of interest at five per cent, come to 
 L.450,000. The national debt redeemed by a 
 sinking fund of L.200,000, operating by com- 
 pound interest in three years, is L.630,500, and 
 therefore the additional unredeemed debt is 
 L. 8, 369,500. 
 
 If no sinking fund be continued during tlie 
 
 war,
 
 159 
 
 war, a loan of L. 2, 800,000 only will be required 
 the first year, the interest of which is L.140,000. 
 
 But the taxes imposed that year amount to 
 L. 1,50,000, (for we suppose the extent of taxation 
 m both methods equal), therefore there is a sur- 
 plus of L.10,000 applicable to the service of the 
 second year. The loan required for the second 
 year will therefore be L.2,790,000 ; the two loans 
 together, L. 5,590,000 ; and the interest upon 
 them L.279,500. The additional taxes imposed 
 the two first years amount to L.300,000, leaving 
 a surplus of L. 20,500 applicable to the service 
 of the third year. The loan required the third, 
 is therefore L.2,779,500, and the amount of the 
 three loans L.8,369,500, exactly the same as the 
 unredeemed debt when a sinking fund is conti- 
 nued ; and it is obvious the same equality will 
 hold for any number of years. 
 
 When Dr. Price says that a debt of 258 mil- 
 lions might be discharged in eighty-six years, at 
 no greater expense than an annual saving of 
 L. '200,000, he overlooks the taxes imposed year 
 after year, for the payment of interest ; a great 
 part of which would not have been needed, if 
 that annual sum had not been separated from the 
 public revenue. The reasoning used above is 
 equally applicable to any other supposition of war 
 expenditure, whatever be the annual deficiency, 
 whether uniform or varying, — whether continued 
 three, or thirty, or an hundred years, still the 
 t 2 taxation
 
 HO 
 
 taxation and expenditure of each year being the 
 same, the finances of the nation will be found in 
 the same condition at the end of the period, 
 whether the sinking fund be preserved inviolate, 
 or entirely laid aside. 
 
 If no sinking fund be kept up for thirty years, 
 a little alteration on the arrangement of public 
 accounts would bring them exactly to the same 
 state as if it had been uniformly adhered to ; and 
 conversely, the present form of our financial ac- 
 counts arising from a sinking fund, may be 
 brought by a like alteration of arrangement, to 
 the form in which they would have stood, if no 
 sinking fund had ever been thought of. It is 
 impossible that a mere change of order in the 
 public accounts, capable of being reversed at any 
 time, Can be attended with advantage to the 
 public. 
 
 At the termination of a war, the nation remains 
 charged with a certain debt, and it possesses, or 
 ought to possess, a certain surplus revenue. The 
 efficacy of this surplus to discharge the debt, de- 
 pends upon its proportion to the debt, and the 
 length of time during which it is applied to that 
 purpose, and upon these alone. It operates by 
 compound interest. But the manner in which 
 the debt was contracted, or the surplus obtained, 
 have no relation to the progress and period of its 
 discharge. It is of no avail that a sinking fund 
 
 had
 
 .Ml 
 
 had been operating- by compound interest (hiring 
 a former peace. When war breaks out again, the 
 operation of compound interest is at an end. In 
 place of continuing to discharge debt, an addi- 
 tional debt is contracted. When peace returns, 
 the operation of discharge re-commences from a 
 new basis, according to the state of finance at the 
 time. The public debt is certainly increased ; — 
 the proportion of surplus revenue to that debt, 
 and therefore the time requisite for its compleat 
 discharge, may be greater or less than at the for- 
 mer peace ; but the two periods of peace cannot 
 be united to obtain a powerful effect from the 
 long continuance of compound interest. 
 
 The Doctor's plan for discharging the national 
 debt by borrowing money at simple interest, in 
 order to improve it at compound interest, is, we 
 apprehend, completely delusive. He admits the 
 absurdity of such a measure in private life, — and 
 its absurdity in national finance is exactly the 
 same. The cases differ only in extent of sum, 
 and duration of time, which no ways alter the 
 general tendency of the measure. Suppose a 
 million borrowed for this purpose, ami assigned 
 to Commissioners for the redemption of the na- 
 tional debt, in whose hands it operates by com- 
 pound interest. The interest of this loan is 
 L.7<yxK), which must either be provided for by 
 some additional tax, or Baved by some measure of 
 Dmyj or if neither of these be adopt- 
 
 ed,
 
 142 
 
 ed, an additional loan must be made next year to 
 pay the interest. In the former case, it is the 
 tax or the economy, and not the operation de- 
 scribed, that benefits the revenue ; and they 
 would have produced the same effect by affording 
 an additional surplus improved at compound in- 
 terest, without any loan. In the latter case, an 
 additional sum of L.50,000 is borrowed the se- 
 cond year ; and a sum equal to the interest of 
 both loans, or L. 102,500, the third year; and 
 thus the debt accumulates by compound interest 
 against the public, exactly to the same extent 
 that the money vested in the hands of the com- 
 missioners accumulates in its favour. 
 
 Dr. Price's assertion, that it is of little conse- 
 quence what interest a nation paid for its loans, 
 is untenable. In time of war, additional interest 
 must be met by additional taxes, or accumulate 
 by compound interest against the public. In time 
 of peace, reduction of interest produces or in- 
 creases a surplus, upon the application of which 
 the redemption of national debt entirely depends. 
 
 The Doctor remarks, that a debt bearing a high 
 rate of interest, with a sinking fund attached, is 
 redeemed in less time than the same debt with the 
 same sinking fund at a low rate of interest ; and 
 he considers this circumstance as a recompense 
 for the burthen of the high interest. He over- 
 looks that as a much larger sum is annually raised 
 from the public when the interest is high, a great 
 
 part
 
 143 
 
 part of this additional burthen being paid to tiic 
 national creditors, is entirely lost to the public ; 
 and a part only being added to the sinking fund 
 as the redemption of the debt advances, accele- 
 rates the course of its discharge. A debt of ten 
 millions, bearing interest at six per cent, is re- 
 deemed by a sinking fund of L. 100,000, in about 
 33-[- years. If the rate of interest be only three 
 per cent, it will require 47 years. But in the for- 
 mer case, the annual burthen on the public is 
 L. 700,000, and the whole burthen L.23,450,000 ; 
 and in the latter case, the annual burthen is 
 L.400,000, and the whole burthen L. 18,800,000. 
 If the sum of L.700,000 had been raised annually 
 while the debt bore interest at three per cent. 
 it would have been discharged in 19 years for 
 L. 13,300,000. Or if L.477,000 had been raised 
 annually, it would have been discharged in 33{ 
 years, for L. 15,979,500. 
 
 Dr. Price supposes the case of a state burthen- 
 cd with debt, bearing five millions of interest, and 
 able, by its utmost exertions, to raise a million 
 more as a sinking fund. " This, if the debts bear 
 " interest at 6 per cent, will pay off three-fifths of 
 " them in twenty-three years, and the state may 
 " be saved ; but if the interest be no more than 3 
 M per cent, it will not give the same relief in less 
 " than double that time, anil a public bankruptcy 
 u may prove unavoidable."* He does not mention 
 
 that, 
 
 * Observations on Reversionary Annuities, 4th edit. t-A
 
 u 
 
 that, in the former case, the defct supposed to ex- 
 ist, and to be discharged, is L.83,333,333, and in 
 the latter calse, L. 166,666,666. The same national 
 exigencies must have required the contraction of 
 an equal debt. What he proves is only that a 
 debt of half the amount, but bearing interest at 
 a double rate, will be discharged in less time by 
 the same sinking fund. 
 
 Dr. Price, in comparing the different ways of 
 applying the disengaged annuities, says, that if 
 they be not applied the first way, they might, for 
 ought he knows, be best employed in the last 
 way, that is, in the abolition of taxes ; for a king- 
 dom will then be sure of receiving some relief. 
 We have endeavoured to evince that the first and 
 second methods are the same in substance, and 
 differ only in form. We esteem them greatly 
 superior to the third. It is by continuing the 
 taxes, and thus supporting the surplus during a 
 period of peace, that any thing effectual can be 
 done for discharging the national debt. 
 
 Dr. Price communicated to Mr. Pitt, in 1786, 
 three plans for the redemption of the national 
 debt.* 
 
 One of these, No. III. is the application of a 
 million surplus, exactly the same as was adopted 
 in the sinking fund established that year, which 
 will be examined in the following section. 
 
 Another 
 
 * Morgan's Review of Dr, Price's writings on the Finances 
 of Great Britain.
 
 145 
 
 Another, No. II. proposed that the sinking fund 
 should be raised from a million to L. 1,600,000, 
 by additional taxes imposed at the following 
 periods. 
 
 First year, 
 Second year, 
 Third year, 
 Fourth year, 
 Fifth year, 
 
 L.60,000 
 180,000 
 120,000 
 120,000 
 120,000 
 
 L.600,000 
 
 This plan is more efficacious than the former, as 
 the sum appropriated is greater ; but of the same 
 general tendency. 
 
 In the other plan, No. I. it is proposed to im- 
 pose the same additional taxes, but apply their 
 produce as follows : — A part of the three per cent, 
 stocks to be converted into four per cents., and 
 the additional interest to be paid by these taxes. 
 The holders of the three per cent, stock convert- 
 ed to advance an adequate sum for the increase 
 of interest, and this sum to be applied in addition 
 to the million for the redemption of the national 
 debt. 
 
 We entirely agree with Dr. Price in the disad- 
 vantage of borrowing at a low rate of interest, 
 with an in' nominal capital ; and the last 
 
 mentioned plan, so far as it tends to counteract 
 that system, appears beneficial. 
 
 u The
 
 146 
 
 The Doctor, in a subsequent publication,* pre- 
 suming that the sinking fund would strengthen 
 the public credit, and raise the three per cents, 
 considerably above par in intervals of peace, lays 
 down a plan, founded upon that supposition, for 
 reducing the national debt. Instead of a reduc- 
 tion of interest, which, he says, would retard the 
 extinction of the public debt, he proposes a re- 
 duction of capital ; and, supposing the three per 
 cents, at 110, he assumes, that the public credi- 
 tors would agree to have their capital reduced 
 from L. 100 to L.80, if secured of the present inte- 
 rest for fifteen years. At the end of that period, 
 the reduced capital, bearing interest at 3^ per 
 cent, would sell much above par, and a similar 
 operation might be repeated upon terms still more 
 advantageous, and by this scheme, the operation 
 of compound interest itself would be aided. 
 
 Admitting the price of stocks, and consent 
 of the creditors, as supposed, this appears to 
 us one of the best parts of the Doctor's plans. 
 The methods he proposes to improve the surplus 
 value of the stock for the public emolument, is, 
 perhaps, the most effective that could be taken. 
 
 The advantages expected by Dr. Price and his 
 friend, Mr. Morgan, from the execution of his 
 plans, depend in a considerable degree upon the 
 
 con- 
 
 * Preface to the third edition of Observations on Reversion- 
 ary Annuities, p. 14, &c. This article is omitted in the fol- 
 lowing editien.
 
 147 
 
 confidence which they suppose these measures 
 would give in government security, and the rise of 
 the price of stocks which that confidence would 
 produce. All this is so hypothetical as to ren- 
 der a more minute examination of these plans, so 
 far as they rest upon that expectation, unneces- 
 sary. 
 
 Much has been said by Dr. Price and others, 
 of the advantage which a sinking fund produces 
 in supporting the price of stock. We apprehend 
 it is incapable of producing any such effect. The 
 price of stock, like that of any commodity, de- 
 pends on the proportion of supply and demand. 
 Whatever sums are brought into the money mar- 
 ket, and applied by the Commissioners for the 
 purchase of stock ; equal sums are withdrawn 
 from the money market, by the additional loans 
 required to replace what is invested in the hands 
 of the Commissioners. Dr. Price justly observes,* 
 that whatever effect borrowing every year has in 
 sinking the funds, paying every year would have 
 an equal contrary effect. He has not attended 
 to the obvious consequence, that, if the payment 
 be made by means of borrowing, it can produce 
 no alteration in the price of the funds at all. 
 He supposes ten millions borrowed every year \r. 
 defray the expenses of war, nine millions only of 
 i 2 which 
 
 * Preface to third edition of Observation! on Revert 
 
 -Annuitic .
 
 148 
 
 which would have been wanted had not the sur- 
 plus million been locked up ; and further, that 
 this scheme, by keeping up public credit, and 
 throwing money every year into the hands of the 
 lenders, enables government to borrow at four in- 
 stead of five per cent, and thereby save L.50,000 
 of interest. He overlooks that the effect of 
 throwing a million into the hands of the lenders, 
 is compensated by demanding from them an addi- 
 tional million in the loan. 
 
 The purchases made by the Commissioners, no 
 doubt, support the funds at a higher rate than 
 they would stand, if there were no such pur- 
 chasers in the field, and the loan for the year the 
 same j and this advance takes place at a time 
 when a high price is disadvantageous to the pub- 
 lic : But the additional loan which the sinking 
 fund requires, must have as great an effect in 
 depressing the funds, and that depression takes 
 place at a time when a low price is disadvantage- 
 ous to the public. 
 
 SECTION
 
 149 
 
 SECTION II. 
 Examination of Mr. Pitt's Sinking Fwids. 
 
 The system of finance recommended by Dr. 
 Price, is the same as that carried into execution 
 under the administration of Mr. Pitt, and conti- 
 nued since. In the former section, we consider- 
 ed its merit and tendency on general principles. 
 In this, we are to consider the effects it has actu- 
 ally produced. 
 
 The result of the foregoing reasoning is, that 
 a sinking fund connected with an increasing debt, 
 providing the loans be obtained on the same 
 terms the debts were redeemed, and the addi- 
 tional operations conducted without expense, is 
 attended with no consequence, good or evil. But 
 in every loan, the contractors have a profit at the 
 expense of the public ; and when the system of a 
 sinking fund is followed, the public, besides ex- 
 pense, sustains a loss equal to the bonus attending 
 the additional loans. 
 
 It is of importance to ascertain whether the 
 nation has sustained a loss of this kind, and to 
 what extent. If the fact be ascertained, it cor- 
 roborates the foregoing reasoning ; if it be con- 
 siderable, it leads us to enquire for what reason 
 the system is persevered in. 
 
 The
 
 150 
 
 The whole sum raised by loans from 1793, 
 (when the first loan was made after the establish- 
 ment of the sinking fund) to 1st February 1813, 
 after deducting the part of the loyalty loan re- 
 paid, is ... L.322,358,532 
 And by funding exchequer and 
 
 navy bills, - 62,258,173 
 
 L.384,6 16,705 
 
 And there was expended in that period, by the 
 Commissioners for the redemption of British debt, 
 L.l 33,536,836. 
 
 During the whole of that period, the national 
 debt annually increased ; the sums borrowed by 
 loans, or otherwise, exceeding the debt redeem- 
 ed. Now, if no system for redeeming the nation- 
 al debt had been adopted, the amount of taxes 
 and expenses remaining the same, the requisite 
 money raised by loans or funded bills would have 
 been less by the last mentioned sum made over 
 to, and expended by, the Commissioners. 
 
 The sum raised by loans or funded bills, as 
 above, was, - - - L.384,6 16, 705 
 
 And the capital funded for these were, 
 
 In the 3 per cents. - - L.461,719,310 
 In the 4 per cents. - - 36,107,321 
 
 In the 5 per cents. - - 75,955,255 
 
 L.573,781,886 
 And
 
 151 
 
 And long annuities have been granted, at a me- 
 dium for 60 years, - - L.435,86I 
 Now these may be reduced to 3 per cents, by 
 allowing a capital in proportion to the rate of in- 
 terest, which is the natural value, and, although 
 there be some fluctuation in the market price, 
 comes near enough to the actual value. 
 Sum funded in 3 per cents. - L.461, 719,310 
 Value of L.36, 107,321 in 4 per cents. 48,143,09.5 
 of L.75,955,255 in 5 per cents. 1 26,592,09 1 
 
 L.636,454,496 
 Value of L.435,861 annuities for 60 
 years, at 18.9 years purchase, 
 L.823,773, in 5 per cents, and 
 in 3 per cents. - - 13,729,621 
 
 Whole value of funded capital and 
 
 annuities, reduced to 3 per cents. L.650, 1 84, 1 1 7 
 Now the capital redeemed by the Commissioners 
 
 R. N. D. for L. 133,536,836, was, 
 202,522,956, 3percents.redeemedfor 126,822,904 
 
 7,796,400, 4per cents, redeemedfor 6,586,934 
 1 42,000, 5 per cents, redecmedfor 126,998 
 
 L.210,461,356 L.1SS.5SI 
 
 And the capital redeemed, reduced to 3 per cent 
 
 is, - L.202,522,956 
 
 I. .7, 796,400 — iper cents. - 10,395,200 
 
 142,000— 5 per cents. - 236,666 
 
 I ..2 13, 1.".
 
 \5l 
 
 Now as L.384,6 16,705 (the sum raised) is to 
 L.650,184,117, (the capital required to be fund- 
 ed in the 3 per cents, in order to raise that sum) 
 so is L. 133,536, 836 (the sum delivered to, and 
 expended by the Commissioners, R. N. D. and 
 which might have been deducted from the 
 loans, if no such commission had existed,) to 
 L.225, 740,402, the sum which would have been 
 saved from the funded capital, (3 per cents.) by 
 lessening the loans. 
 
 Debts contracted from 1793 to 1812, reduced to 
 3 per cents. - - L.650,184,117 
 
 If no sinking fund had existed, it 
 
 would have been less by - L.225,740,402 
 
 And would have amounted only to L.424, 443,7 15 
 From above sum of L.65o,184,117 
 Deduct debt redeemed 213,154,822 
 
 Unredeemed debt, - - L.437,029,295 
 
 Loss to the public by the sinking 
 
 fund, - L.12,585,580 
 
 But the present excess of national debt occa- 
 sioned by the sinking fund is much higher. A 
 portion of this loss has occurred each year for a 
 period of twenty years ', and the whole effect 
 ought to be estimated by accumulated computa- 
 tion of interest. If the last mentioned sum be 
 equally divided, the annual loss is L.629,279, 
 
 and,
 
 153 
 
 and this, in twenty years, at compound in: 
 amounts to above twenty millions. Something, 
 however, may be deducted from this statement, 
 because the loss was not equally diffused through 
 the period ; the portions appertaining to the early 
 part being considerably smaller. 
 
 Neither has any thing been charged for the ex- 
 pense of the commission for the redemption of 
 the public debt. This branch of public expense, 
 indeed, has been very moderate ; but its amount, 
 with compound interest, ought to be added to the 
 other loss, in order to ascertain the whole. 
 
 We are next to examine that part of Mr. Pitt's 
 plan which attaches a sinking fund of one per 
 cent, to the nominal capital of every loan, impos- 
 ing taxes to that extent beyond what are required 
 for the payment of the interest. This plan was 
 also suggested by Dr. Price.* 
 
 There is an inequality in the extent of this fund 
 from its being applied to the nominal capital. It" 
 the loan be made in the 3 per cents, it amounts 
 to l-60th of the sum borrowed. If it be made in 
 the -> per cents, to MOOth. 
 
 Like the other parts of the plan, it occasions a 
 
 the public by borrowing upon higher terms, 
 
 in order to redeem a part of the debt upon lower 
 
 ones. It is equally destitute of all real efficacy 
 
 x 
 
 ■ Appeal to tbe Public, j>. i
 
 154 
 
 for the discharge of debt, under equal circum- 
 stances of taxation and expenditure. 
 
 The ultimate effects of adherence to this sys- 
 tem, during a long period of continued warfare, 
 remains to be ascertained. Suppose the annual 
 deficiency to be supplied by loan is 1 1 millions : 
 this funded in the 3 per cents, creates a capital of 
 L.18,333,333, the interest of which is L.550,000, 
 and the sinking fund, L. 183,333. 
 
 It is obvious that if no more taxes be imposed 
 than are required to pay the interest, the annual 
 deficiency of 1 1 millions remains the same. A 
 loan to that extent must be made annually, and 
 taxes imposed for the payment of the interest, 
 and our debt, interest, and taxes, increase annu- 
 ally, by equal sums, without the most distant pro- 
 spect of relief. 
 
 But if taxes be imposed to a greater amount 
 than the interest of the loan, the surplus fills up 
 some part of the deficiency. On the foregoing 
 supposition, L.183,333 is deducted from the 11 
 millions, leaving a deficiency of L.10,816,666 ; 
 and if an equal amount of taxes be imposed the 
 second and each succeeding year, the part of the 
 deficiency supplied will increase by compound 
 interest; and in a course of years, the whole 11 
 millions will be supplied, and no further loans or 
 additional taxes will be needed, provided the ex- 
 penditure remain the same as at the beginning of 
 the period. 
 
 Now,
 
 155 
 
 Now, as an annuity of L.l, at five per cent, 
 compound interest, amounts to L.60 in about 
 twenty-nine years, that length of time is required 
 before the deficiency of 11 millions be supplied. 
 During that time, L.733,333 of additional taxes 
 are imposed annually, or L.21, 266,666 altogether. 
 The result is, that if the nation, which cannot at 
 present raise 1 1 millions more to equalize its taxes 
 to its expenditure, shall increase them gradually 
 for twenty-nine years, till the addition amount to 
 21 millions, the point of equalization will be ob- 
 tained ; or, to use the language of the sinking 
 fund, the debt annually redeemed, will then be- 
 come equal to the debt contracted. 
 
 If the loan of 1 1 millions be made in a five per 
 cent, fund, the sinking fund is L.l 10,000, which, 
 added to the interest, gives an annual charge of 
 L.660,000. Upon this supposition, thirty-seven 
 years are required before the deficiency is sup- 
 plied ; and the additional taxes imposed, amount 
 to L.24,420,000. 
 
 A sinking fund of this kind is preferable in ul- 
 timate efficacy to one founded on the appropria- 
 tion and accumulation of a fixed annual sum. It 
 increases with the increase of the funded debt ; 
 and, in a long time, will be equal to the discharge 
 of any debt, however great, provided the nation 
 bear the taxes which it requires. An annual 
 sum, esteemed large at first, is likely to become 
 inadequate to the discharge of a debt which in- 
 x 2 creases
 
 156 
 
 creases beyond expectation. A sinking fund of 
 L. 1,200,000 would require forty-seven years and 
 a half to fill up a deficiency of 1 1 millions ; and 
 the additional taxes imposed, would amount to 
 above 23 millions. 
 
 We have stated the case of continued warfare, 
 as being more simple in calculation. In the case 
 of alternate war and peace, the periods would be 
 different, but the relative merits of the different 
 systems the same. 
 
 But the chief point to be attended to is, that 
 none of these plans, nor any possible plan, has 
 any intrinsic power to discharge, or aid the dis- 
 charge of our national burthens. An opinion 
 prevails that the minister who instituted the sink- 
 ing fund has put a powerful machine in action, 
 which, although its first operations were feeble, 
 has now become of great efficacy, and that the 
 efficacy will continue to increase without any fur- 
 ther exertion on our part, like the acceleration 
 of falling bodies by the power of gravity, till it 
 amount to an indefinite magnitude. 
 
 When a minister establishes a sinking fund con- 
 nected with a system of borrowing, he acknow- 
 ledges the inability of the nation to bear at pre- 
 sent the expense which his system of administra- 
 tion requires ; and his plan, whatever it be, does 
 no more than inform the public, that if posterity 
 be able and willing to raise such sums, by extend- 
 ed taxation, at certain periods which his plan 
 
 points
 
 157 
 
 points out, as will make up for our deficiencies, 
 with interest, and furnish besides what is wanted 
 for the exigencies and contests of their own time, 
 the public debt which he contracts will then be 
 discharged. 
 
 That minister would have reason to doubt whe- 
 ther posterity would submit to all this. Yet, the 
 plan of our sinking funds established in 1786 and 
 179'J, have been adhered to with great steadiness, 
 and our taxes raised to an amount beyond prece- 
 dent or expectation. 
 
 The sums annually raised by taxes, since the 
 commencement of the war, are as follows:* 
 
 Year ending 5th January. 
 179*3 L. 17,050,41 8 180-1. L.38,853,373 
 
 17!>4 
 
 17,170,400 
 
 1805 
 
 46,578,564 
 
 1 79.5 
 
 17,308,811 
 
 1806 
 
 51,339,045 
 
 1796 
 
 17,858,454 
 
 1807 
 
 54,982,035 
 
 1797 
 
 ] 8,737, 700 
 
 1808 
 
 60,189,414 
 
 1798 
 
 20,654,0.50 
 
 1809 
 
 63,026,563 
 
 179!) 
 
 30,202,915 
 
 1810 
 
 65,227,204 
 
 1800 
 
 35,229,908 
 
 1811 
 
 09,188,041 
 
 ISO] 
 
 33,890,464 
 
 1812 
 
 60,973,208 
 
 1802 
 
 . 1 15,096 
 
 1 8 1 3 
 
 66,4**, 106 
 
 1803 
 
 37,240,218 
 
 
 
 From this statement it appears that the amount 
 
 of our taxes, whieh was nearly stationary for some 
 years after the commencement of the war, lias 
 
 increased progressively, (with one or twp slight 
 
 exception*) 
 * Sec Note XXV.
 
 158 
 
 exceptions) since the year 1 795 ; that the in- 
 crease was most rapid some years after the re- 
 commencement of the war, when heavy war taxes 
 were imposed, and that the present amount of 
 taxes is about four times what it was at the com- 
 mencement. 
 
 The whole amount of taxes, upon the average 
 of the three last years, after deductions, is about 
 65 millions ; a sum more than sufficient to defray 
 the expense of the war, enormous as it is ; but 
 not sufficient to provide at the same time for the 
 interest of debt formerly contracted. 
 
 Our present national revenue would therefore 
 have been sufficient to support, without limitation 
 of time, the expense of the present war on the 
 scale it is conducted, if the taxation during for- 
 mer wars, and the early period of the present one, 
 had been equal to the expenditure. 
 
 The cause of this is, not that certain sinking 
 funds were established twenty or thirty years ago, 
 but that we now submit to a taxation of 65 mil- 
 lions, and to the privations occasioned thereby. 
 The same amount of taxation would have pro- 
 duced the same effect, although none of these 
 funds had ever been established. 
 
 Convinced that the sinking fund has contri- 
 buted nothing to the discharge of the public debt, 
 and that it has occasioned a large addition to our 
 public burthens, we next inquire, whether any 
 and what advantages have been derived from it. 
 
 The
 
 151) 
 
 The means, and the only means, of restraining 
 
 the progress of national debt, are, saving of ex- 
 penditure, and increase of revenue. Neither of 
 these have a necessary connection with a sinking 
 fund. But if they have an eventual connection j 
 and if the nation, impressed with a conviction 
 of the importance of a system established by a 
 popular minister, has, in order to adhere to it, 
 adopted measures, either of frugality in expendi- 
 ture, or exertion in raising taxes, which it would 
 not otherwise have done, the sinking fund ought 
 not to be considered as inefficient j and its effects 
 maybe of great importance. 
 
 "We arc not of opinion that the sinking fund 
 has contributed in any degree to frugality in ex- 
 penditure. The time during which it has ope- 
 rated, has not been a time of national frugality. 
 Ministers have had the full power of raising what 
 loans they pleased, to supply the means of any 
 expenditure, however lavish ; and it will not be 
 said they have used this power with a sparing 
 hand. 
 
 In regard to increase of taxes, we arc of opi- 
 nion that the sinking fund has had a real effect 
 in calling forth exertions, which, although they 
 might have been made as well and as effectually, 
 would not have been made, unless to follow out 
 the line which that Bystem required. A loan is 
 made, and the revenue is considered as charged, 
 not only with the interest, but a certain propor- 
 tion
 
 160 
 
 tion of the principal, annually. Taxes are im- 
 posed to meet the one as well as the other. If 
 the sinking fund had not been in view, it is likely 
 taxes would have been imposed for the interest 
 only. 
 
 If the sinking fund could be conducted without 
 loss to the public, it would not be wise to propose 
 an alteration of a system which has gained the 
 confidence of the public, and which points out a 
 rule of taxation that has the advantage at least 
 of being steady. If that rule be laid aside, our 
 measures of taxation might become entirely loose. 
 
 But if the sinking fund be attended with a hea- 
 vy loss, it seems proper to inquire whether a plan 
 might be followed that would deliver us from this 
 loss, and at the same time carry on the necessary 
 measure of increased taxation. The present pro- 
 portion of one per cent, on the nominal capital 
 might be continued. If a loan of twenty mil- 
 lions be transacted in the 3 per cents, the sink- 
 ing fund attached to it on the present system is 
 L.333,333. Now taxes may be imposed to that 
 extent, besides what are required for interest; 
 and that sum, instead of being made over to 
 Commissioners, may be deducted from the loan. 
 Thus the nation would save the loss it at present 
 sustains, of borrowing on lower, and paying on 
 higher terms ; and the imposition of L.333,333 
 additional taxes, which is the only measure of 
 real efficacy, would be the same as before.* 
 
 SEC- 
 * See Note XXVI.
 
 "Uil 
 
 SECTION III. 
 
 Examination of Lord Henry Pettj/'s Plan 
 nance. 
 
 We have already given an account of Lord 
 Henry Potty's plan of finance. It was proposed 
 
 to Parliament and the public, in the year 1807, 
 accompanied with an elaborate set of tables. 
 Being very complex, it was not generally under- 
 stood. As it promised to raise the necessary 
 loans with little or no increase of taxes, it was 
 favourably received, and probably would have 
 been continued for some years, if the ministry 
 who brought it forward had remained in office. 
 
 The scheme, as proposed, though sufficiently 
 complex in itself, is blended with many circum- 
 stances extraneous to its general merit. Advan- 
 tage is taken of the falling in of annuities at dif- 
 ferent periods, by the expiry of their term, and 
 of the reduction of the rate of management, and 
 of an expected surplus from the present sinking 
 fund. The savings by annuities and manage- 
 ment, must give the same relief to the national 
 annual burthens, under any system of finance ) 
 and if it be a beneficial measure to call in the aid 
 of the surplus of the present sinking fund, when 
 it attains a certain magnitude, the advantage re- 
 y suiting
 
 i&2 
 
 suiting from it will be the same, with whatever 
 other measures it be connected. The proper way 
 to judge of the new scheme, is to lay these ex- 
 traneous circumstances aside ; to leave the old 
 debt to combat with the sinking funds already 
 provided for its redemption, aided by any other 
 means which existing circumstances supply ; and 
 to consider the operation of the new scheme, in 
 regard to the new debt, contracted during the 
 time it is in force, compared with the effects of 
 the continuance of the former system. This will 
 render our view of the subject simpler ; and if 
 the new scheme will not bear the test of exami- 
 nation when applied in this manner, it will not 
 bear it at all. 
 
 The first point which presents itself to our 
 view, is, that the sums proposed to be raised by 
 new taxes, during the first years of the scheme, 
 are much less than the interest of the debts con- 
 tracted ; and therefore money must be borrowed, 
 not only to supply the excess of the war expendi- 
 ture above the sum raised within the year, but 
 also to pay the interest of a great part of the loan, 
 and thus subject the nation to the heavy and in- 
 creasing expense of compound interest. 
 
 The sums borrowed the first year were, 
 On war taxes, - L. 12,000,000 
 
 By supplementary loan, - - 200,000 
 
 Carried forward , L. 1 2, 200,000 
 
 But
 
 U)3 
 
 Brought forward, L. 12,200,000 
 
 But there was applied to the re- 
 demption of the war tax loan 
 from the mortgaged (axes, - (>oo,000 
 
 Xett loan, deducting part redeemed, L.l 1,600,000 
 The sum required to compleat the 
 
 expenditure is ... 11,000,000 
 
 And the remainder applied to pay 
 
 the interest of the war loan is L.GOO,000 
 
 The only additional taxes imposed, are L.10,000 
 for interest of the supplementary loan, and L.3,333 
 for a sinking fund on the same ; and as the for- 
 mer of these is appropriated, the latter only is to 
 be stated against the interest of L. 11,400,000, 
 added to the funded debt, exclusive of the sup- 
 plementary loan, of which, only 1 1 millions were 
 applied to the public service. 
 
 In the second year, the sums proposed to be 
 borrowed were, 
 
 On war taxes, - - - L.12,000,000 
 
 By supplementary loan, - - 1,400,000 
 
 L. 13,400,000 
 ()i which applied to the redemption 
 of war tax loans, by taxes mort- 
 gaged this and Conner year, - 1,200,000 
 
 Xett loan, deducting part redei I II ■'. 1 .12,800,000 
 
 aid.
 
 164 
 
 Brought forward, L. 12,200,000 
 
 Sum required for expenditure, 11,000,000 
 
 Remainder applied to pay the in- 
 terest of the war loans for two 
 years, L. 1,200,000 
 
 Against which there is to be stated, 
 Sinking fund of supplementary loan of 
 
 first year, with interest, - L.3,500 
 Sinking fund of supplementary loan, se- 
 cond year, 23,333 
 
 Interest of war tax loan redeemed first 
 
 year 
 
 30.000 
 
 L.56,833 
 Leaving an additional interest, for which no taxes 
 are laid on, of L.l, 143,667. 
 
 If we trace the proposed operations of this 
 scheme further, we will find that the same perni- 
 cious mode of borrowing, for payment of the in- 
 terest as well as the principal, continues for a 
 course of years, though at a rate gradually dimi- 
 nishing, because the interest on the loans annual- 
 ly raised on the credit of the war taxes, for which 
 no new provision is made, becomes less, owing 
 to the redemption of part of that debt ; and the 
 interest on the supplementary loans, for which, 
 together with a sinking fund, provision is made, 
 increases, together with these loans themselves. 
 
 In
 
 165 
 
 In order to shew what the progress and effects 
 of this system, if continued, would have been in 
 a period of twenty years, unincumbered with ex- 
 traneous matter, Table VIII. is inserted in the 
 Appendix, divided into several parts. 
 
 Part I. relates to the loans on the war taxes ; 
 Part II. relates to the supplementary loans ; and 
 Part III. exhibits a general view of the effects of 
 both loans combined. 
 
 The debts contracted and redeemed, inserted 
 in this table, are according to their real value. 
 If invested in a three per cent, fund, as was pro- 
 posed, the nominal sum will be greater, (suppos- 
 ing the three per cents, at CO,) in the proportion 
 of five to three. 
 
 By comparing the two last columns of Part 
 III. it will appear how far the sums raised an- 
 nually by taxes imposed since the commence- 
 ment of the scheme, would fall short of the inte- 
 rest on additional debt contracted, for which taxes 
 ought to have been provided. At the commence- 
 ment, the difference is very great ; and although 
 they come near to an equality towards the end of 
 the period, yet, taking in the whole, the differ- 
 ence is great. The necessary effect of this defi- 
 ciency of taxation, is to subject the public to the 
 loss incurred by compound interest. 
 
 Part IV. is added to assist us in forming a 
 judgment of the effects of this system compared 
 
 with others. I amount of debt ex- 
 
 isting
 
 166 
 
 isting, and taxes paid each year, for twenty 
 years : first, upon the supposition of no sinking 
 fund being established, and taxes imposed annu- 
 ally for the payment of the interest of the loans 
 only - 7 secondly, upon the supposition of a sinking 
 fund of 1- 100th of the sum borrowed ; thirdly, 
 of a sinking fund of l-60th of the same. The 
 first of these was the old system j and, though 
 not a good one, may be taken as a standard of 
 comparison, whereby to judge of the merit of the 
 others ; the second is, the present system, when 
 the loan is made in a five per cent, fund at par ; 
 and the third, when it is made in a three per 
 cent. fund. 
 
 It appears from this table, that, at the end of 
 fourteen years, the period at which the whole 
 war taxes are mortgaged, the amount of unre- 
 deemed debt, by Lord Henry Petty's system, is 
 L.202,784,803, and the amount of taxes paid du- 
 ring these fourteen years, is L.28,41 3,333. When 
 no sinking fund is established, the amount of ex- 
 isting debt at the same period is L. 154,000,000, 
 and the taxes paid, L.57,750,000. The addition- 
 al debt contracted by the former, is L.48,784,803, 
 and the saving in taxes, L.29,336,666. The ex- 
 cess of the additional debt above the saving in 
 taxes, is L.19,448,137. At the end of twenty 
 years, the amount of unredeemed debt, by Lord 
 Henry Petty's system, is L.285,5 19,205, and the 
 amount of taxes paid during these twenty years,
 
 
 is L.92,393,333. The amount of debt on the 
 old system is 220 millions, and of taxes, 115 
 millions. The additional debt contracted by the 
 former, is L.65,5 19,205 ; and the saving in taxes, 
 L.22, 106,667 y the excess of additional debt above 
 the saving in taxes, L.43,412,53S. 
 
 In the system where a sinking fund of 1- 100th 
 is established, the unredeemed debt at the end 
 of fourteen years, is L. 139,527,1 62 ; and the 
 amount of taxes, L.69,300,000. The debt is less 
 by L. 14,472,838 than according to the old sys- 
 tem ; and to obtain this saving, there is paid in 
 additional taxes, L. 11,550,000. The debt saved 
 exceeds the additional taxes by L.2,922,838. At. 
 the end of twenty years, the unredeemed debt is 
 L.187,617,650; the taxes, L. 138,600,000. The 
 saving in debt is L.32,382,350 ; the additional 
 taxes, L.23,600,000. The excess in the saving of 
 debt above the additional taxes, L.S,7S2,350. 
 
 In the system where a sinking fund of l-60th 
 is established, the unredeemed debt at the end 
 of fourteen years, is L.l 29,878,004, and the a- 
 mount of taxes, L.77,000,000. The debt is less by 
 L.24, 12 1,396, than according to the old system, 
 and the additional taxes amount to L. 19,250,000, 
 and the debt saved exceeds the additional taxes 
 by I. .4, 87 1,396. At the end of twenty years 
 the unredeemed debt is L. 166,029,44 7, and tin 4 
 amount of taxes, L.154,(>0(),(X)0. The saving 
 in debt is L.53,970,583 ; the add. ional 
 
 9,000,000 .
 
 168 
 
 L.39,000,000 ; and the debt saved exceeds the 
 additional taxes by L. 14,970,583. 
 
 Thus it appears that Lord Henry Petty's sys- 
 tem is by far the worst, and in twenty years 
 brings on an addition of funded debt, (five per 
 cents.) besides what is applied to the public ser- 
 vice, of L.G5,5 19,205 
 By the old system, the debt con- 
 tracted, is equal to the sums ap- 
 plied to the public service. 
 By the system of a sinking fund of 
 1-1 00th, the debt contracted is 
 less than the sums applied to the 
 public service, by - - 32,332,350 
 By the system of a sinking fund of 
 l-60th, the debt contracted is less 
 than the sums applied to the pub- 
 lic service, by 53,970,583 
 
 The general result might have been known 
 without calculation. In Lord Henry Petty's 
 system, taxes are only imposed for a part of the 
 interest of the loan, and in the first years only 
 for a small part ; and the interests not provided 
 for, must accumulate in the manner of compound 
 interest, to augment the capital debt. In the 
 system where a sinking fund of 1 -100th is esta- 
 blished, a part of the loan is annually paid, and 
 its interest of course cancelled; and as taxes 
 were imposed for the full interest, the part thus 
 
 saved,
 
 1(39 
 
 saved, operates in depressing the capital debt: 
 and this effect takes place in a higher degree 
 when a sinking fund of l-60th is established. 
 
 In comparing the merit of different systems, 
 the only points necessary to be attended to are, 
 the amount of the loans contracted, — the part of 
 these loans redeemed, — the interest incurred, — 
 and the sunn raised by taxes. The arrangement 
 of the loans under different branches, and the ap- 
 propriation of particular funds for payment of 
 their respective interests, are matters of official 
 regulation ; and the state of the public finance is 
 neither the better nor the worse whether they be 
 conducted one way or other. A complicated 
 system may perplex and mislead, but it can never 
 ameliorate. 
 
 It is frivolous to maintain that a part of the 
 public debt is charged on the war taxes, and, be- 
 ing in a course of" discharge, ought to be sepa- 
 rated from the remainder, in forming an est imate 
 of the whole. That part, as much as any other, 
 is a burthen on the nation. It must be dischfl 
 if ever it be so, by taxes levied in future on the 
 nation ; and until it be paid, its interest must be 
 provided for by such (axes ; Otherwise compound 
 interest accumulates against the public. It is of 
 wsequenc of the 
 
 kind originally imposed under the name of war 
 
 taxes, and afterwards rendered permanent, at 
 
 for a period, by such appropriation ; or new 
 
 i taxes
 
 170 
 
 taxes of a different kind, imposed when the war 
 taxes are discontinued.* 
 
 As well might a land steward, when required 
 by his employer to lay before him a state of his 
 rents and debts, reply, that it was unnecessary to 
 bring the whole into view at once ; that he had 
 allocated a part of the rents of such a manor 
 for the gradual discharge of a certain bonded 
 debt, and those of another manor for the dis- 
 charge of another bond ; that, if the remaining 
 rents, after these defalcations, were insufficient to 
 support his lordship's expenses, he could easily 
 borrow what money might be wanted ; and if a 
 growing deficiency should be the result of these 
 operations, it might perhaps be made up at some 
 future time, when the present leases on the estate 
 expired, and the rents might rise. 
 
 We have heard it maintained, that a system 
 may be so constructed, that, although it does 
 harm in the first years of its operation, the result, 
 after a long continuance, will be beneficial. From 
 its effects after a few years, we may judge with 
 certainty of its ultimate tendency. Suppose, af- 
 ter a trial of ten years, it has rendered the state 
 of our national finance so many millions, worse 
 than it would have been under a different system, 
 but after that period it takes a beneficial turn. 
 Were this possible, it would be better to follow 
 the measures of that other system for these ten 
 
 years, 
 * See Note XXVII.
 
 171 
 
 years, and then commence, upon a better basis, 
 the measures of the former. But the supposition 
 of a change of tendency is absurd. If it do harm 
 in the beginning, it will do more harm the longer 
 it is persevered in. 
 
 We have stated the loss to the public by 
 Lord Henry Petty's system in twenty years, at 
 L.65,5 19,205, or, deducting the saving in taxes, 
 at L.43,412,53S. But it may be justly estimated 
 at a sum considerably higher. The above is the 
 sum which the public must pay to the national 
 creditors, or remain under the burthen of, in ad- 
 dition to the sums raised by loan, and applied to 
 the national service. It arises from the operation 
 of compound interest against the public, and is 
 incurred for the sake of postponing the payment 
 of interest, which should commence when the 
 debt is contracted, to a distant time. But besides 
 this, another loss is inclined by the system of 
 borrowing larger sums than are wanted, in order 
 to maintain a sinking fund, the consequences of 
 which were considered in the last section ; and a 
 further loss is incurred by borrowing in a three 
 per cent, fund during war, when the juice is low, 
 to be repaid during peace when the price is high, 
 the- consequences of which will be farthei 
 sidcred in a following section. Thes I .iirccs 
 
 of 1.)-- indeed attach toother systems, wh< 
 milar are followed, as well as to Lord 
 
 Henry Petty's ; hut they take place in his system 
 
 to
 
 \12 
 
 to a greater degree, because the measures from 
 which they arise, are carried on to a greater ex- 
 tent. 
 
 The distinction of war tax loans and supple- 
 mentary loans, is in itself entirely futile : But 
 occasion is taken from it to ascertain the portions 
 of debt for which the interest shali be levied in 
 taxes, and the portions, for the interest of which 
 no provision shall be made at present. The pro- 
 portion of these, like the scheme from which they 
 arise, is altogether arbitrary, and very irregular, 
 — the taxes imposed in the early part of the 
 system being much smaller than those imposed 
 afterwards. 
 
 After a continuance of twenty years, the sum 
 raised in taxes within the year, is L. 13,6 13,333, 
 being L.2,6 13,333 more than it would have been 
 under the old system, though less by L.662,627 
 than it ought to be, in order to cover the interest 
 of the debt. This, and an additional capital of 
 L.65, 519,205, is incurred, for the sake of saving 
 L.22,106,677 in taxes during these twenty years, 
 chiefly in the early part of them. In the 1 6th and 
 following years, the taxes raised within each year 
 are greater than those required by the old system. 
 
 section
 
 173 
 
 SECTION IV. 
 Euaminalion of Mr. Vansiltarfs Plan of Finance, 
 
 I. This plan has been assailed as trenching on 
 the sinking hinds formerly established, and there- 
 by diminishing the security of the public credi- 
 tors, to whom the national faith is pledged on the 
 terms of these funds. It does not seem liable to 
 any just censure upon this ground. It is justly 
 observed, that " the separation kept up for the 
 " purposes of account between the original sink- 
 " ing fund of 1786, and the additions subse- 
 " quently made to it, is only nominal ; it neither 
 " has been nor can be attended to in practice, 
 " because the whole of the debt contracted since 
 " the establishment of the sinking fund having 
 " been borrowed upon the old stocks, andnodis- 
 " tinction made between the old and new pro- 
 11 prietors, the whole debt is now considered as 
 " one indiscriminate mass, to which the purchases 
 4t made by the sinking fund arc equally appli- 
 " cable. \o right of priority of redemption can 
 11 exist in any particular class of stockholders, 
 " nor any conditions of repayment be claimed 
 " (except in the itifet&nce of the 5 pet cent, loan 
 " of 17 ( .*7) beyond those laid down in the ac 
 11 1792, under the faith of which all subsequ 
 
 M loans
 
 174 
 
 w loans may be considered as contracted. By 
 " that act, provision is made for the redemption, 
 '* within forty-five years, of all the debts subse- 
 <( qnently created ; and within this limit, Parlia- 
 " ment has the power to regulate the mode of 
 " redemption at its discretion."* 
 
 The advantages given to the public creditors 
 by the regulations of Mr. Vansittart's plan, ap- 
 pear to place them in a situation equally favour- 
 able to that which they held under the enact- 
 ments of 1792. 
 
 After all, the security of the public creditors 
 is not so much affected by any regulations adopt- 
 ed in the management of our finance, as by the 
 magnitude and increase of the national debt. If 
 the amount of the loans be greater than what the 
 capitalists can easily supply, the consequence is 
 a depression of the funds ; and this, at the same 
 time that it occasions the loans to be contracted 
 on unfavourable terms, induces a loss upon those 
 stockholders who are obliged to sell. The large- 
 ness of our late loans, and the high amount of 
 funded capital, are the real causes of the depres- 
 sion of the funds ; and no security ever was or 
 could be given to the public creditors, at the con- 
 traction of any loan, that could limit the contrac- 
 tion of such debts in future as the exigencies of 
 the times might require j and if the amount of 
 debt seem to approach to its utmost limit, while 
 
 the 
 * Outlines of a Plan of Finance, ISIS, pages 6 and 7.
 
 17.3 
 
 the public expense is still increasing, the dread 
 of a national bankruptcy will depress the funds 
 in a still higher degree. 
 
 A private creditor attends to the amount of the 
 debts, and the comparative state of the income 
 and expenses of his debtor. If he finds his debts 
 increasing beyond the measure of his estate, his 
 alarms will be excited, and they will not be much 
 relieved by any detail of the arrangement of Iris 
 affairs which the steward may communicate to 
 him. 
 
 II. It is observed, that " nothing more can be 
 '• expected in a permanent war system than to 
 " provide for such a scale of expense as must ne- 
 " cessarily arise out of the war, without includ- 
 *' ing that great increase which has been occa- 
 " sioned by our extraordinary exertions abroad 
 " in the four last years, — which must be consi- 
 " dered as only of an occasional nature, — that 
 u the equalization of the public income and ex- 
 " penditure may be considered as a primary ad- 
 ** vantage of the sinking fund ; and this object, 
 " so far as is requisite to meet that part of the 
 " expenses of the war, which may be considered 
 •* as necessarily permanent, appears to have been 
 M already accomplished.*'* 
 
 The doctrine here laid down cannot be admit- 
 ted without considerable allowances. If the si- 
 tuation 
 • Outlines, 1S13, pages 4 and J.
 
 170 
 
 tuation of a nation, as connected with surround- 
 ing nations, and the system of conduct observed 
 toward them, be such as to promise alternate 
 periods of war and peace at no long intervals, the 
 proportion of revenue and expenditure may be 
 regulated with a view to such a prospect. When 
 there is a probability of a long continued war, 
 (and the outlines appear to be drawn with a view 
 to that case) the public revenue must be raised 
 to the average of war expenditure, in order to 
 prevent the risk of our finances being overwhelm- 
 ed. If, during the continuance of war. the ex- 
 pense of one year, or of a few years, should, from 
 special circumstances not likely to recur, much 
 exceed the average war expenditure, it is consist- 
 ent with safety, and proper, that the revenue 
 should equal the average expenditure, and not 
 the increased expenditure of these years. There 
 is the same reason for this, as for regulating the 
 revenue under a system of alternate peace and 
 war, to the average expenditure of a period which 
 comprehends both. So far the doctrine is ad- 
 mitted. But the application to existing circum- 
 stances should be made with caution. We ought 
 to enquire what reason there is to believe, on the 
 supposition of the continuance of the present 
 war, that the expense of the following years will 
 be less than that of the present and immediately 
 preceding ones. Shall we have fewer enemies ? 
 Do we propose to carry on our operations, by sea 
 
 or
 
 177 
 
 or land, on a less extensive scale ? Can we sup- 
 port our armies and navy, or defray any branch 
 or' public expenditure, at a lower, or even an 
 equal sum, as we did some years ago ? Have wc 
 tower foreign possessions to defend ? Shall we be 
 less lavish in bestowing subsidies at every quar- 
 ter ? "We have often flattered ourselves, during 
 this war, that our expensive exertions would not 
 be of long continuance, and these hopes have 
 been uniformly disappointed. If our present pros- 
 pects be not more favourable, our measures should 
 be regulated accordingly. 
 
 III. No observation is juster, or of more import- 
 ance, than that already quoted from the outlines, 
 of considering the whole public debt as one indio- 
 < riminaie ma.ss. We have had occasion to enlarge 
 on this point in former parts of the present inqui- 
 ry. By the system of frittering down the public 
 debt into various portions, and allocating differ- 
 ent funds for the discharge of each, and noticing 
 the time when this and the other part would bo 
 discharged, the public has been misled, and even 
 am financiers have not escaped embarrassment, 
 in the outlines however clearly the above prin- 
 ciple is laid down in limine, it seems to be lost 
 Bight of in the detail. In the annexed tablet) the 
 time when each loan will be discharged, accord- 
 ing to the differenl us, i- 
 \ a calculated
 
 178 
 
 calculated with special care, and seems to be 
 considered as an important circumstance. 
 
 IV. The system now under consideration is 
 attended with the same palatable feature which 
 accompanied that of Lord Henry Petty's, of pro- 
 mising an exemption from additional taxes for 
 the three next years, and a smaller amount of 
 them in the succeeding years. The manner of 
 obtaining the former of these points is by declar- 
 ing the debt of 1786 cancelled, and allocating the 
 sinking fund, provided for it, to bear the charge 
 of the new loans. This is merely a point of offi- 
 cial regulation. The measure itself is attended 
 with no injury to the national creditors ; but it is 
 not clear that it is salutary for the public. When- 
 ever a nation does not tax to the amount of its 
 expenditure, an increase of debt, to a higher 
 amount than the sum saved in taxes, is inevitable ; 
 and in the comparison of different systems, those 
 which impose the lightest taxes must always bring 
 on an increase of debt in a still higher degree. 
 This principle has been fully illustrated in former 
 parts of this inquiry : We shall now state its ap- 
 plication to the different suppositions considered 
 in the outlines. 
 
 The first hypothesis, contained in Table A, is 
 that of an annual loan of 28 millions, at 5 per 
 cent, which is reduced in the then existing sys- 
 tem
 
 179 
 
 tern to 27 millions, in the year 1821, but conti- 
 nues without diminution in the new system. To 
 exhibit the comparative effect of these systems on 
 this hypothesis, Table X. is inserted in our Ap- 
 pendix,* from which it appears that the amount 
 of additional taxes to be laid on from 1814 to 
 1821 inclusive, according to the existing system, 
 
 is L. 14,933,328 
 
 According to the new system, - 7,099,110 
 
 The whole amount of additional 
 taxes levied these eight years, 
 by the existing system, is - L.67, 199,976 
 by the new system, - - 22,227,352 
 
 Excess of taxes by the existing sys- 
 tem, L.44,972,624 
 
 The debt created, by either system 
 
 in these eight years, is - L.224,O00,O00 
 
 The amount of the sinking fund, 
 
 existing system, - - L.152,912,S80 
 
 new system, - - . 99,278,439 
 
 Additional debt unredeemed, 
 
 existing system, - - L.7 1,087,620 
 
 new system, - - 124,721,561 
 
 a a 2 The 
 
 * Set Note XXVU!
 
 180 
 
 The national debt (reduced to 5 per 
 
 cents.) is greater, after eight 
 
 years, in the new system, by L.53,633,94T 
 
 Saving in taxes, new system, during 
 
 that period, - - - - 44,972,624 
 
 Excess of additional debt, above 
 
 saving in taxes, - - L.8,661,317 
 
 The amount of additional taxes to be imposed 
 in sixteen years from 1814 to 1829 inclusive, 
 by the existing system, is - L.29,333,328 
 by the new system, - - 16,524,392 
 
 The whole amount of additional 
 taxes levied these sixteen years, 
 by the existing system, - L.251, 466,600 
 
 by the new system, - - 118,859,736 
 
 Excess of taxes by the existing sys- 
 tem, ... L. 132,606, 864 
 
 Debt contracted in these sixteen 
 years, existing system, - L.440,000,00O 
 new system, - - 448,000,000 
 
 Amount sinking fund, 
 existing system, - - L.403,586,488 
 
 new system, - - 226,114,350 
 
 .Additional debt unredeemed, 
 
 existing system, - - L.36,413,512 
 
 new system, - - 221,885,650
 
 i8l 
 
 Fhe national debt (reduced to .> 
 per cents.) is greater after six- 
 teen years, in the system, by L.18.5,472,138 
 
 Saving in taxes, new system, dur- 
 ing that period, - 132,606,864 
 
 Excess of additional debt above 
 
 saving in taxes, - - L.52,865,27+ 
 
 The hypothesis in Table B. is that of an annual 
 loan of 25 millions, at 5 per cent, reduced, in thr 
 existing system in 1821, to 24 millions. Accord- 
 ing to this hypothesis, there is more additional 
 debt contracted and unredeemed by the new sys- 
 tem, in the first eight years, to the amount of 
 
 - L.51,543,153 
 The saving in taxes is - - 43,626,792 
 
 Excess of additional debt above sav- 
 ing in taxes, - L.7,9 16,361 
 
 The unredeemed national debt (reduced to 5 
 per cents.) will be greater in the new system, af- 
 ter sixteen years, by - - L. 184, 692, 891 
 Saving in taxes, - - 130,208,242 
 
 Excess of additional debt above 
 saving in taxes, - - L.54,484,649 
 
 The hypothesis in Table C. is that of au an- 
 nual loan of 12 millions, at 3 per cent, reduced, 
 in the existing system in 1826, to 11 millions. 
 
 Accord-
 
 182 
 
 According to this hypothesis, the national debt, 
 on the new system, is greater after sixteen years, 
 by L.53,566,359 
 
 Saving in taxes, - - 46,992,592 
 
 Excess of additional debt above sav- 
 ing in taxes, - - - - L.6,573,767 
 
 The hypothesis in Table D. is that of the con- 
 tinuance of war until 1820, and afterwards alter- 
 nate periods of ten years peace and war ; annual 
 loans of 25 millions, during war, but reduced 
 in the existing system after 1821 to 24 millions ; 
 interest during war 5 per cent., during peace 4 
 per cent. According to this hypothesis, the na- 
 tional debt is greater by the new system, at the 
 end of 7 years war, by - - L.42,000,234 
 And the saving in taxes, - 35,600,907 
 
 Excess increase of debt above saving 
 
 in taxes, - - - L.6,399,327 
 
 During the next ten years of peace, the sum 
 
 applicable to the discharge of the public debt, in 
 
 the existing system, is greater by L. 114,435,708 
 
 And the aggregate of additional 
 
 taxes in that period is greater by 81,383,850 
 
 Excess of sum applicable to dis- 
 charge of debt above additional 
 taxes, .... L.3S,051,858 
 
 V. The next circumstance which claims our 
 
 attention
 
 133 
 
 attention is the periods at which additional taxes 
 are proposed by the new system. All the late 
 systems of finance have held forth a distant pros- 
 pect, that after a certain period, more or less re- 
 mote, the national revenue would become equal 
 to its expenditure, even in a state of continued 
 warfare, and therefore no further taxes would be 
 needed. If that period should ever arrive, it is 
 obvious that the amount of taxes then levied must 
 be much greater than what would at present co- 
 ver our expense. For what reasons then do we 
 not now raise them to that amount ? We shall 
 not ascribe this to our propensity to stave oft 
 the evil day at present, and leave posterity to 
 provide for themselves as they can. In whatever 
 degree this motive may operate, it is too unprin- 
 cipled to be openly avowed. The only other rea- 
 sons we remember to have heard adduced, are, 
 that the nation is increasing in wealth, and will 
 be better able to bear heavier taxes at a future 
 time ; and that a sudden increase of taxes would 
 occasion so much discontent that a Minister dare 
 not attempt it ; whereas taxes, at first moderate, 
 and increased at intervals, are submitted to with 
 less reluctance, and do not become unproductive 
 ill an equal degree by occasioning the disuse of 
 the articles taxed. We shall not at present enter 
 into a discussion of these reasons. Whether we 
 refer the deferred and gradual increase of taxation 
 to either or both of them, or to any other that 
 
 can
 
 184 
 
 can be imagined, they concur in this point, 
 that additional taxes should be imposed annually 
 and equally while the public necessities continue 
 the same. By the new system, the amount of 
 taxes imposed in different years is very unequal. 
 According to the first hypothesis there are no ad- 
 ditional taxes imposed in the years 1814, 1815, 
 and 1816. In 1817, the additional taxes come 
 near to L. 1,300,000; in 1818, they fall below 
 L. 700,000 ; in each of the three following years 
 they amount to about L.2,000,000 ; in 1822, there 
 are no additional taxes; and in 1823, the addi- 
 tional taxes little exceed L.600,000. Like in- 
 equalities occur in the following years, and ac- 
 cording to the other suppositions. The reason of 
 this is, that the amount of taxes imposed is regu- 
 lated by the periods at which the loans of former 
 years are declared to have been redeemed. If 
 several loans, or one large loan fall in, no new 
 taxes are imposed. If none fall in within the 
 year, a large amount of additional taxes is had 
 recourse to. Thus the amount of taxes to be 
 imposed in future years is made to depend on the 
 amount of loans contracted many years ago, and 
 the period of the redemption of these loans, as 
 ascertained by their terms, and the sinking funds 
 appropriated to them at their contraction, under 
 the regulations of the new system. There seems 
 to be no good reason for regulating the periods 
 of additional taxation in this manner. The seve- 
 ral
 
 105 
 
 ial loans constitute the public debt, united into 
 one indiscriminate mass. If the means adopted to 
 meet the increase of this debt be a progressive in- 
 crease of taxation, the progress ought to be uni- 
 form ; or if otherwise, any diversity ought to 
 arise from the circumstances and exigencies of 
 the times when the taxes are imposed, and not 
 from the discharge of former loans as estimated 
 by an artificial system. In time of war, there is 
 no real discharge of debt, but an annual contrac- 
 tion of debt, equal to the difference between the 
 capitals created and the capitals redeemed. 
 
 VI. An advantage of a very extraordinary kind 
 is affirmed to result from this system. " The 
 " principal advantage of the proposed plan in 
 " time of peace, would be the facility of keeping 
 " in reserve a large sum (suppose L. 100,000,000) 
 " as a resource in the case of the renewal of hos- 
 " tilities. This fund, which would be formed in 
 " a few years by the redeemed stock standing in 
 " the name of the Commissioners, would be con- 
 " tinually increasing, unless checked in the man- 
 *' ner abovementioned ; and in no case should be 
 " reduced below such a sum as may be thought 
 " amply sufficient to support the confidence of 
 " the country at home, and maintain its dignity 
 " abroad. It would indeed be such a treasure as 
 " no other country has ever possessed, and the first 
 •■ example of an immense accumulation of public 
 t b " property.
 
 186 
 
 " property, formed without the impoverishment 
 " of any individual, or any embarrassment of the 
 " general circulation."* 
 
 We are altogether at a loss to form a distinct- 
 conception of the nature of the valuable treasure 
 here held forth. So soon as any stock is pur- 
 chased by the Commissioners, and stands invest- 
 ed in their name, a like amount of the public debt 
 is in fact discharged. Whether a Parliamentary 
 declaration to that effect be made or not, is only 
 a matter of form. If the money remain vested 
 in the name of the Commissioners, no doubt it 
 may be transferred again to purchasers, in the 
 stock exchange, when war breaks out anew, and 
 money may be raised for the public in this man- 
 ner. But this is in every respect a new loan. It 
 is an application to the public to invest their ca- 
 pital in the purchase of this dormant stock. The 
 capitalists must be possest of the sum wanted j 
 and they will not part with it, except upon terms 
 from which they derive a profit. They would do 
 this with equal readiness, if a loan was proposed 
 to them in the ordinary form. We can discover 
 no facility or advantage which the public could 
 derive from a loan conducted in this manner, ra- 
 ther than any other. Indeed the inefficacy of this 
 reserved treasure appears so clear, that we almost 
 doubt whether we have rightly apprehended the 
 
 nature 
 
 * Outlines, page 17.
 
 lo7 
 
 nature of the resource held forth : But we are 
 
 not able to affix any oilier meaning to it. 
 
 If it be said that the whole capita] of funded 
 debt was once in circulation, and although a part 
 of it is for a time withdrawn, it may be brought 
 into circulation again, this amounts to no more 
 than that the nation having once born a greater 
 amount of debt than at the time alluded to, it may 
 be expected to be able to bear a like amount 
 again. This may be affirmed either of a nation 
 or a private estate, if other circumstances remain 
 the same; but it is not much to the purpose. 
 The proprietor of the private estate, who has ex- 
 perienced the hardships that result from being in 
 debt, will feel little solacement, after thes'.- are 
 relieved, from the consideration that if he chooses 
 to engage in a fresh career of extravagance, he 
 will only be plunged again into the same difficul- 
 ties ; and if ever the public be partially delivered 
 from that load of debt which cramps its national 
 operations, and occasions privations to the indi- 
 viduals who compose the public, it will be no 
 great source of rejoicing that it may engage in 
 lor a season without undergoing great- 
 er hardship! than those which it had experienced 
 before. 
 
 It is true, that if the taxes Imposed durifi 
 
 for the purpose of a sinking llm i, be continued 
 
 peace is restored, till a large sum (suppose 
 
 L. 100,000,000) be vested in the hands of the 
 
 b b 2 Commis.
 
 183 
 
 Commissioners, the public, upon the renewal of 
 war, may spend to that amount without imposing 
 fresh taxes. This amounts to no more than that 
 if we choose, during peace, to submit to the 
 hardships of war taxation after our debt is partial- 
 ly discharged, we may engage again in war, with- 
 out bearing heavier burthens than those from 
 which we might have been delivered, if we had 
 repealed the taxes as the debt was discharged. 
 
 VII. In examining this and the other systems 
 of finance, we have chiefly confined ourselves to 
 a view of the effects expected from them, during 
 the first 16 years or thereby from their establish- 
 ment. Such a period is fully sufficient to ascer- 
 tain their merits. In the Tables annexed to the 
 plan, their operation is traced for a much longer 
 time. That of the sinking fund, Table C. 2. is 
 extended as far as the year 1866 j and we are in- 
 formed in a note, that the remaining debt will 
 be redeemed according to the existing system in 
 the year 1912, and according to the new system 
 in the year 1875. It is altogether unnecessary to 
 trace their operation to such distant periods. It 
 is morally impossible any system can be adhered 
 to so long. Sir Robert Walpole's sinking fund 
 was never supported with efficacy. Mr. Pitt's 
 sinking fund commenced in 1786, and was cor- 
 roborated in 1792 j considerably infringed on in 
 1798 j underwent a great alteration in 1802 j was 
 
 laid
 
 189 
 
 laid aside for Lord Henry Potty's plan in 1807; 
 revived in 180S ; and is now superseded by Mr. 
 Vansittart's plan in 1813; and it may be almost 
 certainly foreseen that measures different from 
 those now proposed will be had recourse to by 
 succeeding financiers. This will arise, not only 
 from the different views of different men, but 
 from the change of circumstances which the fluc- 
 tuation of human affairs always induces. The 
 proper measures to be followed in that great de- 
 partment of national administration half a cen- 
 tury hence, will depend on the exigencies and 
 resources of the time, and cannot be foreseen at 
 present. 
 
 SECTION V. 
 neral Observations on Sinking Funds. 
 
 I. Ix the resolutions frequently proposed by 
 Ministry to Parliament, in order to exhibit a ge- 
 neral and comparative view of the state of our 
 finance; ;it different periods, the proportion of the 
 sum applicable to the discharge of debt, to the 
 debt itself, is introduced, and seems to be consi- 
 dered as an important circumstance. This pro- 
 portion
 
 190 
 
 portion in 1786 was *y T , in 1793 it was T y S , in 
 3 803, T r T, in 1809, ? T 4 , and in 1813, ^. The in- 
 ference drawn from this growing proportion is, 
 that although the national debt has greatly in- 
 creased, the means provided for its discharge have 
 increased in a still higher degree, and therefore 
 its present magnitude affords no cause of alarm. 
 
 The extent of the sinking fund is artificial, 
 and may be brought, by a mere change in 
 the arrangement of the public accounts, to 
 bear any proportion to the amount of debt, 
 without the slightest advantage, or any tenden- 
 cy to promote its discharge. In time of war, 
 we raise a certain sum by taxes for the expense 
 of the year, and borrow what farther is want- 
 ed. If a sinking fund be maintained, the sums 
 appropriated are deducted from what would 
 have otherwise been expended on the war, and a 
 greater loan is required. We may throw into the 
 sinking fund any share of the revenue we please. 
 We have only to add as much to the loan, and 
 we shall raise a larger sum in the form of loan, 
 with the same facility, by the effect of the sums 
 thrown into the money market for the stock pur- 
 chased by the Commissioners. In time of war 
 the sinking fund is nominal; in time of peace a 
 large sinking fund will discharge the debt more 
 quickly ; but this amounts to no more than that 
 a continuance of the, taxes, which we paid in 
 war, after peace is restored, will be attended with 
 
 a
 
 191 
 
 a speedier reduction of debt, than what would 
 take place if a large part of these taxes were re- 
 pealed. 
 
 II. A similar circumstance, held forth to ease 
 the alarms arising from the magnitude of the na- 
 tional debt, is the progress already made in its 
 discharge by the sinking fund, and the large sum 
 redeemed. We are told that these operations 
 have succeeded beyond expectation, and that the 
 whole debt existing in 17S6, amounting to 238 
 millions, is already paid off. This is altogether 
 fictitious and delusive. We may pay oif as much 
 debt as we please at any time by borrowing : But 
 the only real alteration in the state of our finance 
 is the difference between the debt contracted and 
 the debt paid off; and while the former of these 
 exceeds the latter, our situation is growing worse 
 to the extent of that difference. 
 
 A private gentleman, whose estate is incum- 
 bered, may, if he have any credit, pay off all his 
 debt every year, by borrowing from other hands ; 
 but if he spends more than his free income, his 
 embarrassments will continually increase, and his 
 affairs are so much the worse by being conducted 
 in this manner, from the fees he pays to his 
 agents. The absurdity of deriving any satisfac- 
 tion from this annual discharge of his debts will 
 appear still stronger, if we suppose him, instead 
 •f borrowing from other hands, only to renew the 
 
 securities
 
 192 
 
 securities io the same creditors annually, paying 
 a fee to the agents, and a douceur to the credi- 
 tors themselves on the renewal. All these obser- 
 vations are equally applicable to the debt of a 
 nation, conducted as ours is. It would not be 
 impracticable, or very difficult, to redeem our 
 whole debt in any year, if the measures we fol- 
 low be redemption. It would only require a large 
 loan every month, and the large sums we were 
 thus enabled to pay would supply the funds for 
 these loans. Our capitalists would be well pleased 
 to promote these loans, as they would derive a 
 bonus from each. Such a system would be ruin- 
 ous in the extreme ; and the system we follow is 
 the same on a smaller scale, and is therefore only 
 pernicious in a less degree. 
 
 In the year 1786 our funded debt was 238 mil- 
 lions. We have paid all this off, but we have con- 
 tracted (exclusive of the loans of 1813) a new debt 
 of 574 millions. Does not this amount to the 
 same, as that we have paid no debt at all, but 
 contracted an additional debt of 336 millions ? 
 
 III. The dangers, arising from the magnitude 
 and progressive increase of the national debt, 
 ought to be laid before the public without exag- 
 geration, but without palliation. Another source 
 of alarm has been started of late years, of the 
 evils to be apprehended from too great an increase 
 of the sinking fund, and too rapid a discharge of 
 
 the
 
 103 
 
 the national debt, or too sudden a repeal of luxes 
 These fears were first announced (at least with any 
 degree of energy) on the publication of Lord I Ien- 
 ry Potty's Plan of Finance, in 1807 ; and they seem 
 to have taken considerable possession of the public 
 mind. " It [the plan of 1802] would throw such 
 " large and disproportioned sums into the public 
 " market, in the latter years of its operation, as 
 " might produce a very dangerous depreciation of 
 " the value of money. Manyinconveniences might 
 " also arise from the sudden stop which might be 
 " put to the application of these sums, when the 
 " whole debt shall have been redeemed, and from 
 " the no less sudden change in the price of all 
 " commodities, which must follow from taking 
 " off) at one and the same moment, taxes to an 
 " extent then probably much exceeding 30 mil- 
 " lions."* — " This successive redemption is, in- 
 " deed, a point of no small importance to the re- 
 " gulation of the money market, as the rate of 
 " interest, and the value of money might be very 
 " inconveniently affected by the too rapid in- 
 " crease, or the too sudden reduction of the sums 
 " brought into circulation by the sinking fund. 
 " It should not, therefore, be suffered roaccumu* 
 u late for too long a period, while, on the other 
 " hand, it should not be too much diminished, 
 " by extinguishing at once too large a proportion 
 11 of the public debt."t We have seen the fears 
 
 C C (-!' 
 
 ' Plan of Finance, 1 107, p. 1 +. 1 Plan of Finance, till
 
 94 
 
 of these inconveniencies urged, in some private 
 publications, in still stronger terms. They ap- 
 pear to us altogether groundless. 
 
 Thq operation of the sinking fund during war, 
 when loans to a higher amount are annually con- 
 tracted, we trust we have evinced to be altoge- 
 ther fictitious. It is not probable, whatever be 
 the continuance of the war, that our taxes will 
 be raised to the measure of our war expenditure ; 
 but they are likely to exceed much what is want- 
 ed for a peace establishment ; and the excess is 
 likely to be larger, the longer the war is continued. 
 We shall then be possest of a surplus revenue at 
 the restoration of peace, which we may either 
 diminish or annihilate altogether, by the repeal 
 of taxes, or apply to the discharge of the public 
 debt. It is proper and probable that we shall em- 
 brace both measures ; and the proportions of sur- 
 plus revenue to be disposed of, the one way or 
 the other, are completely at command, and ought 
 to be determined from the state of affairs at the 
 time, and not from the results of an artificial sys- 
 tem, laid down many years before. 
 
 It is generally believed that, when the present 
 war is terminated, prudence will require us to 
 support a higher establishment than we ever did 
 during any former peace. This prospect alone 
 may allay our fear of bad consequences from too 
 sudden a discharge of debt. 
 
 Those who believe, as we do, that the load of 
 
 public
 
 195 
 
 public debt is a great evil-, and that its discharge 
 would be a great deliverance, may at the same time 
 admit, that a sudden alteration, however beneficial 
 in its ultimate result, would be attended with se- 
 rious inconveniencies, and thai every precaution 
 should be employed to prevent or alleviate these. 
 
 The inconveniencies apprehended, arise from 
 the difficulty of employing the capital paid off, 
 and the reduction of the rate of interest. 
 
 A low rate of interest is generally esteemed 
 benelicial, and is said to have prevailed in the 
 wealthiest and most flourishing nations, while the 
 rate has been much higher in those that were in 
 a semibarbarous state. We do not admit this 
 doctrine without considerable qualification; but 
 could not discuss the argument without a length 
 of digression unsuitable to this place. 
 
 We have no doubt that the whole capital, at 
 present invested in the funds, maybe beneficially 
 employed in agriculture, manufacture, and com- 
 merce, and thereby prove a source of increasing 
 wealth to the country. Dot this cannot be done 
 all at once. These objects must expand by de- 
 grees, and no more capital should be paid off in 
 any year than can be otherwise disposed of to 
 advantage. We have little apprehension that 
 we should have more to oiler j but, if the C88C 
 should be otherwise, we can restrict it, in any de- 
 gree, by the repeal of taxes. 
 
 Apprehensions of inconveniencies from the 
 
 ( c 2 sin'
 
 195 
 
 sudden amelioration of the circumstances of the 
 middling and lower ranks, arising from the re- 
 peal of taxes, have been insinuated. We cannot 
 enter into these views. That numerous part of 
 the community, which has for some time labour- 
 ed under great privations, when they feel this 
 relief, will afford themselves a greater share of 
 the comforts of life ; and by their additional con- 
 sumption, give encouragement to agriculture, 
 manufacture, and trade. Excess, in a certain 
 measure, will be the consequence of affluence in 
 every rank ; but it will not be maintained that, 
 in order to avoid that evil, nations should always 
 be kept in a state of depression. The sudden 
 dismission of many of the officers employed in 
 collecting the revenue is surely too trivial an ob- 
 ject, and admits of too obvious remedies to merit 
 notice. One evil apprehended from the sudden 
 repeal of taxes is the loss which dealers would 
 sustain, by the fall in price of the commodities on 
 hand, on which the taxes were repealed. This 
 class of men gained by the rise in price of com- 
 modities on hand when the taxes were imposed. 
 We would not, however, wish them to undergo a 
 loss on their repeal. This might be greatly alle- 
 viated, if not altogether prevented, by allowing 
 a considerable time between the enactment and 
 repeal, and by other regulations suited to that 
 purpose. 
 
 A funded capital, transferable as ours, is con- 
 sidered
 
 197 
 
 sidered to be beneficial, as affording an easy and 
 secure way of investing small sums belonging to 
 persons in the lower ranks of Hie — the hard earn- 
 ed savings of industry. There is something in 
 this ; but there is no reason to apprehend the 
 amount of our funded debt will ever fall so low as 
 to be insufficient for that purpose. 
 
 SECTION VI. 
 
 Examination of the System of Funding by Incrcast 
 oj' Capital. 
 
 In the early part of the funding system, the 
 capital assigned to the public creditor seldom ex- 
 ceeded the sum advanced by him. We find only 
 two slight deviations from this rule during the 
 seven years war, and one in the American war, 
 before 1781. But alter that year, when the diffi- 
 culty of raising loans increased, capitals were 
 assigned to the creditors much higher than the 
 Minis advanced ; and this practice has been con- 
 tinued since to a great extent. 
 
 It has been maintained in the House of Com- 
 mons, on the part of Ministry, and, if we mi 
 not, even admitted by the < >pposition, that I 
 
 the duty of n financier Ut raise the loan at thi I 
 
 am I
 
 198 
 
 annual expense it could be procured for, without 
 regard to the amount of the nominal capital. We 
 apprehend that this opinion is indefensible, except 
 upon the supposition that all views of discharging 
 the national debt, or any part of it, are for ever 
 laid aside, and that the measures founded on it 
 are very pernicious. The nation ought to pay 
 no more in discharge of debt than the sum bor- 
 rowed, together with the interest during the time 
 the debt subsists. By the system now followed, 
 it pays besides, the excess of the capital assigned 
 above the sum borrowed, in case the redemption 
 be at par. Or, if the price of the funds enable 
 the Commissioners to redeem the debt on lower 
 terms, the nation pays, in addition to the sum 
 borrowed, the difference between the price of 
 stock at the times of borrowing and paying, 
 which is always great. 
 
 The terms of the debt contracted during the 
 American war, and since the commencement of 
 the war in 1793, have been already given. The 
 excess of the capital funded, above the money 
 borrowed, is as follows : 
 
 Debt contracted during American war, 
 Loans from 179S to 1812, inclusive, 
 Hills funded in that period, 
 
 Of which redeemed by the Commis- 
 sioners, 
 
 Sums raised. 
 
 Capital funded. 
 
 91,763,842 
 322,358,532 
 
 62,258,173 
 -176,380,547 
 
 133,536 ,836 
 342,843,711 
 
 Excess of capital funded above sums raised. 
 
 115,267,993 
 
 498,861,867 
 
 74,920,020 
 
 689,049,880 
 
 210,461,356 
 
 478~,58S,524 
 342,843,711 
 r3T,744,SI3 
 
 Thus
 
 199 
 
 Thus it appears, that if the funded debt, con- 
 tracted since the commencement of the Ameri- 
 can war, were paid off at par, the nation would 
 pay above 135 millions more than it ever received, 
 which is about four-tenths of the debt contracted. 
 The far greater part of this excess has arisen 
 since the war of 1793, and almost the whole of it 
 since the year 1780. 
 
 The national creditors are not obliged to ac- 
 cept of payment under par, that is, a sum equal 
 to their nominal capital. But as they cannot, 
 like private creditors, demand payment, and as 
 the price of those funds which bear a low rate of 
 interest is generally under par, it has been in the 
 power of the public, in former intervals of peace, 
 to pay off part of the national debt considerably 
 under par, with the voluntary consent of the cre- 
 ditors; and the same end is now obtained, in a 
 more constant manner, by the purchases made 
 by the Commissioners. 
 
 Dr. Price was of opinion, at the time he wrote, 
 that the three per cents, on the return of j 
 would rise to par, or above it ; and he considered 
 that as a desirable event. Whether it would be 
 SO] we may hesitate to pronounce, when we at- 
 tend to the variety of interests involved. It 
 could not take place without a general reduction 
 of the rate of interest; and this must be accom- 
 panied by a like reduction of the profits on trade 
 and manufacture. It would obstruct the re- 
 
 ptioa
 
 ^uu 
 
 demption of the national debt under par, and 
 prevent its being accomplished, unless at the loss 
 abovementioned. 
 
 But we do not consider the rising of the three 
 per cents, to par as a probable event ; and had 
 Dr. Price lived to see the magnitude which our 
 debt has now attained, it is likely he would have 
 been of the same opinion. From the establish- 
 ment of the sinking fund to the 1st of February 
 1791, there was L.6,772,350 of the three per 
 cents, redeemed for L.5,424,592, being at the 
 rate of 80 nearly. It is therefore a probable sup- 
 position, that on the return of a steady peace, the 
 three per cents, may rise to 80. 
 
 Now, if we suppose the three per cents, redeem- 
 ed at 80, and the four per cents, and five per 
 cents, at par, the sum required for the redemp- 
 tion of the abovementioned debt would be, 
 L.323,846,354 Capital in three per 
 
 cents, at 80, L.259,077,083 
 
 154,742,170 Capital in 4 and 5 
 
 per cents, at par, 1 54, 742, 1 70 
 
 L.478,588,524 redeemed for L.41 3,819,253 
 
 sum borrowed, 342,843,711 
 
 L.60,975,542 
 Hence the loss incurred by the public on this fa- 
 vourable supposition would be 60 millions, in dis- 
 charging the whole capital, and a like proportion 
 
 for
 
 201 
 
 for any part of it that might he discharge J during 
 a period of peace. 
 
 This system was only in its infancy when Dr. 
 Price wrote, and he censures it in the following 
 terms: — " In 1759, the lenders of L.6,GOO,000 
 " were entitled to a capital of L.115 for every 
 %< L.lOO subscribed, or L.7, 590,000 in the stock 
 " of the three per cent, annuities i The conse- 
 " quence of which must be, that, in discharging 
 " this debt, 15 per cent, or near a million, must 
 " be paid, which was never received, and by 
 " which nothing has been gained. — Were a per- 
 " son in private life, to borrow L.100, on condi- 
 M tion it should be reckoned L.200 borrowed, at 
 " two and a half per cent, he would, by subject* 
 " ing himself to the necessity (if he ever dis- 
 " charged the debt,) of paying double the sum he 
 " received, gain somewhat of the air of borrow- 
 " ing at two and a half per cent, though lie real* 
 '* ly borrowed at five per cent. But would such 
 " a person be thought in his senses ? One can- 
 " not, indeed, without pain, consider how need- 
 " lessly the capital of our debts has been, in se- 
 
 k < vera! instances, increased. Thus do spend* 
 
 "thrifts go on, loading their estates with debt, 
 " careless what difficulties they throw on the dis- 
 " charge of the principal, leaving that to their 
 u successors, and satisfied with any expedients 
 " that will make things do their time."* 
 
 d d This 
 
 * Preface to 5 J «J. of Observations on Reversionary Ad
 
 202 
 
 This censure, severe as it is, appears in a great 
 measure deserved. We ought, however, to pay 
 attention to any saving of interest, which is the 
 inducement for contracting the public debt in 
 the manner that has been followed. 
 
 The natural proportion of the price of capital 
 in the three per cent, four per cent, and five per 
 cent, funds, is the same as that of the respective 
 rates of interest. Thus, if the five per cents, be 
 at par, the four per cents, should be at 80, and 
 the three per cents, at 60 ; and this proportion, 
 except some slight deviations from transient 
 causes, would continue to hold when the prices 
 rose, providing the debt was irredeemable. The 
 only object, in that case, in which the national 
 creditors are interested, is to draw an annuity 
 for the money they advance ; and it would be to 
 them a matter of indifference what denomination 
 be given to the fund from which the dividends 
 were drawn. If the three per cents, rose to 75, 
 the four per cents, should rise to 100, and the 
 five per cents, to 125. But as all the funds are 
 redeemable at par,* the actual price can never 
 much exceed it. So soon as the five per cents, 
 rise above par, the financier will offer payment, 
 and by doing so, induce the creditors to submit 
 to a reduction of interest. The holders of stock 
 in a three per cent, or four per cent, fund, have 
 
 thus 
 * See Note XXIX.
 
 203 
 
 thus a prospect of gain by the rise of value, iu 
 which the five per cent. Stockholders do not par- 
 ticipate ; and, in like manner, when the three per 
 cents, rise above 75, the holders have a further 
 gain in which the four per cent, stockholders do 
 not participate. In consequence of these expec- 
 tations, the price of four per cents, is higher, com- 
 pared with that of the five per cents. ; and the 
 price of the three per cents, higher than that of 
 either of the others, than the proportion of the 
 rates of interest ; and loans are transacted in the 
 S per cents on easier terms. The lender expects 
 to gain by the rise of stock ; and what he gains, 
 the public loses, at re-payment on redemption. 
 
 In order to estimate the extent of the differ- 
 ence of interest occasioned by funding in capitals 
 of different sorts, we may consider the rates of 
 interest paid by the public on those loans, and the 
 sums funded, where the contract was made at one 
 rate only, and not incumbered with a long an- 
 nuity. 
 
 There have been eleven loans of this sort, in 
 the three per cents, since the commencement of 
 the war in 17^:5, the amount borrowed being 
 
 L.158,e5O,O0O f arid the samfiindedL.159,215,875, 
 
 the interest of which is L.7,77f>,47'i, being at the 
 rate of L.4. ISs. per cent, on the sum borrowed ; 
 f lie particulars being as follows : 
 
 Dd2 1793,
 
 204 
 
 
 Sums raised. 
 
 Sums funded. | Interest. 
 
 1793, 
 
 4,500,000 
 
 G,250,OOo|~T 87^500 
 
 1798, 
 
 3,000 000 
 
 5,624,25d 168,727 
 
 1799, 
 
 12,500,000 
 
 21,875,000 
 
 650,250 
 
 J 800, 
 
 1 8,500,000 
 
 29,045,000 
 
 871,350 
 
 1801, 
 
 25,500,000 
 
 44,816,250 
 
 1,344,488 
 
 1802, 
 
 23,000,000 
 
 30,351,375 
 
 910,541 
 
 1 804, 
 
 10,000,000 
 
 18,200,000 
 
 546,000 
 
 1 805, 
 
 20,000,000 
 
 3 4, -100,000 
 
 1,032,000 
 
 1800, 
 
 18,000,000 
 
 29,880,000 
 
 896,400 
 
 1810, 
 
 8,000,000 
 
 11,230,000 
 
 336,900 
 
 IS 12, 
 
 15,65O,0"O 
 
 27,544,000 
 
 826,320 
 
 
 r5?,650,000 259,2 15,875 
 
 7,776]476 
 
 The only loan at 4 per cent, was that of 1 808, 
 when L.8,000,000 was raised, and funded for 
 L.9,454,000, the interest of which, L.378,160, is 
 at the rate of L.4. 14s. 6d. per cent. 
 
 There have been three loans, and six operations 
 of funding bills, in the 5 per cents., viz. 
 
 1794, 
 
 Bills, 
 
 1795, 
 
 Bills, 
 
 1796, 
 
 Bills, 
 
 
 
 Loyalty loan 
 
 1810, 
 
 Bills, 
 
 1811, 
 
 Bills, 
 
 
 
 Loan, 
 
 IS! 2, 
 
 Bills, 
 
 
 
 Loan, 
 
 Sums raised. 
 
 Capital funded.) Interest. 
 
 1,907,451 
 
 1,926,526 
 
 96,326 
 
 1,490,647 
 
 1,609,898 
 
 80,495 
 
 4,226,727 
 
 4,414,074 
 
 220,703 
 
 1 8,000,000 
 
 20,124,843 
 
 1,006,243 
 
 8,311,000 
 
 8,581,108 
 
 429,055 
 
 7,018,70( 
 
 7,278,392 
 
 363,919 
 
 4,981,300 
 
 5,166,319 
 
 258,316 
 
 5,431,700 
 
 5,866,236 
 
 293,312 
 
 6,7S9,625 
 
 7,332,795 
 
 366,039 
 
 58,157,150 
 
 02,300,191 
 
 3,115,OOS 
 
 L.58, 157, 150 money borrowed and bills fund- 
 ed in the 5 per cents, for L. 62, 300, 191, interest 
 L.3, 115,009, being at the rate of L.5. 7s. id. per 
 cent. 
 
 But if the loyalty loan, which was remarkably 
 unfavourable for the public, be set aside, the sum 
 
 raised
 
 20.5 
 
 raised is L.40,157,150 funded in the 5 per cents, 
 for L.42, 175,338, interest L.2,108,767, being at 
 the rate of L.5. 5s. per cent, and 7s. more than 
 on the money funded in the 3 per cents. 
 
 Another consideration considerably reduces 
 this difference in the interest. In the loans, the 
 public pays the whole interest for the year that 
 the loan is transacted, although the money be 
 advanced by instalments, or discount allowed if 
 the whole be paid up at once. If the lender did 
 not obtain this advantage, he would demand an 
 additional capital at least equivalent to L.2. 10s. 
 in the five per cents, and yielding an interest of 
 2s. 6d. Nothing similar to this occurs in the 
 transactions of funding bills, from which the 
 greater part of the 5 per cent, stock arises. 
 
 Thus, for a difference not exceeding five or six 
 shillings per cent, on the interest, the public in- 
 curs almost a certainty of paying L.l 33 for eve- 
 ry L.100 borrowed, and a risk of paying L.l 66, 
 when the debt comes to be discharged.* 
 
 This simple view of the result is sufficient to 
 reprobate the system of borrowing on an advance 
 of capital, and a low nominal interest. The ca- 
 pital funded should never exceed the sum raised, 
 and such a rate of interest should be allowed on 
 this capita] as the lender is willing to accept of. 
 At the present price of the funds, money cannot 
 be borrowed at 5 per cent. ; and perhaps it might 
 be thought improper to give, in direct terms, ■ 
 
 higher 
 * Sue Note XXX.
 
 206 
 
 higher rate of interest than can be legally taken 
 in private transactions, though there is a necessity 
 for doing so in an indirect manner. To avoid 
 this, the highest rate of interest on the capital 
 might be fixed at five per cent. ; and in addition 
 to this, when necessary, a long annuity might 
 he granted ; and when the funds are higher, the 
 rate of interest might be fixed at three or four 
 per cent, together with a long annuity, if neces- 
 sary. 
 
 It is impossible to go over this subject without 
 being struck with the great variety of modes that 
 have been had recourse to in raising money. — 
 From 1793 to 1812 inclusive, there have been 
 twenty-five loans, of which fifteen have been in 
 the three per cents, and four of these have been 
 aided by a long annuity. One has been funded 
 in the four per cents, and three in the five per 
 cents. Five have been funded partly in the three 
 per cents, and partly in the four per cents. ; all 
 of them accompanied by a long annuity : and one 
 partly in the three per cents, and partly in the 
 five per cents. 
 
 In the same period there have been ten opera- 
 tions of funding bills, of which six have been al- 
 together in the five per cents. ; two partly in the 
 four per cents, and partly in the five per cents. ; 
 and two, jointly in the three, four, and five per 
 cents. ; and to one of these a long annuity is at- 
 tached. 
 
 NOTES.
 
 NOTES. 
 
 Note I. — Page 21. 
 
 The increase of circulating medium, of whatever kind, by- 
 deteriorating the value of money, enhances the money price of 
 manufactures and native produce, and thereby obstructs, cateris 
 paribus, their sale in foreign markets. In this respect, paper 
 money is always disadvantageous. It may give encouragement 
 to industry by extending private credit, and thereby prove be- 
 neficial ; but its application in this way is apt to be carried too 
 far. The consideration of its influence upon the rate of ex- 
 change with foreign countries, and the other effects it produces, 
 would lead us beyond the bounds of our present subject. 
 
 Note II. — Page 27. 
 
 Since the imposition of war taxes in 1798, the permanent 
 revenue has been divided into two great branches: 
 
 1st, The consolidated fund, consisting of all the branches ex- 
 isting in IT so, win ii Mi Pitt's sinking fund was established, 
 and many taxes which have been imposed since ; and charged 
 with IOC interest of the public debt, the sums payable to the 
 CoO H PiniOQtni lor its redemption, the allowance to the civil list, 
 BB<] |»( -nsions and oilier grants by Parliament. The surplus, 
 which is always considerable, is applied to the current service- 
 Of too year. 
 
 2d, The \\ W tOXI s, consisting of tOC property-tax, tboconvojl 
 tax, and some other article* ; and charged with the interest, &c. 
 
 of
 
 208 
 
 of the loans of 1S07 and 1811, the amount of which is transier- 
 red to the consolidated fund. 
 
 To these may be added, 
 
 3d, The duties granted annually. These were formerly the 
 land and malt-tax : Since the land-tax was rendered perpetual, 
 certain duties on sugar and tobacco, and on offices, pensions, and 
 salaries, besides the malt-tax, have been granted annually, 
 
 Note III. — Page 35. 
 
 The amount of foreign property in the British funds, as ascer- 
 tained by the claims of exemption from property-tax in 1806, 
 was L.l 8,598,666, besides L.17,147 per annum of terminable 
 annuities. This account does not include the bank stock, the 
 duty on the dividends of which are paid by the company. The 
 ■whole amount may be estimated at about 22 millions, being 
 about I -25th of the funded debt then existing. The foreign 
 property in the British funds, in 1762, has been estimated at 
 IS millions, being about l-7th of the funded debt at that time. 
 
 Note IV. — Page 45. 
 
 Paradoxical effects are ascribed to the increase of money by 
 compound interest. 
 
 One penny put out at the Christian era, at five per cent, com- 
 pound interest, would, before this time, have increased to a 
 greater sum than could be contained in Jive hundred ?nillions of 
 Earths, all of solid gold. 
 
 Mr. Ricard appointed by his will, that the sum of 500 livres 
 should be divided into five portions. The first, at the end of a 
 hundred years, amounting to 13,100 livres, to be laid out in 
 prizes for dissertations proving the lawfulness of putting out 
 money to interest. The second, at the end of two centuries* 
 amounting to 1,700,000 livres, to be employed in establishing 
 a perpetual fund for prizes in literature and arts, and for virtuous 
 
 actions.
 
 209 
 
 iulions. The third, at the end of three centuries, amounting to 
 more than 226 millions of livres, to be employed for establishing 
 patriotic banks, and founding museums with ample establish- 
 ments. The fourth, at the end of four centuries, amounting to 
 30,000 millions, to be employed in building a hundred towns in 
 France, containing each 150,000 inhabitants. The fifth, at the 
 end of five centuries, amounting to four millions of millions of 
 livres, to be appropriated for the payment of the national debt of 
 Britain and France, — for producing an annual revenue to be di- 
 vided among all the powers of Europe,— fee buying up useless 
 offices, purchasing a royal domain, increasing the income of the 
 i lergy, and abolishing fees for masses, — for maintaining all 
 children born in France till they be three years of age, — for im- 
 proving waste lands, and bestowing them on married peasants, 
 — for purchasing manors, and exempting the vassals from all 
 servitude, — for founding houses of education, workhouses, houses 
 of health, and asylums for females, — for portioning young wo- 
 men, — for conferring honorary rewards on merit ; — besides a 
 large surplus to be appropriated at the discretion of his execu- 
 tors. 
 
 Dr. Franklin planned a similar will. 
 
 It is theoretically true that compound interest may accom- 
 plish all these things ; but such extravagancies rather tend to 
 throw ridicule on the subject, than increase our confidence in 
 its operations. 
 
 Note V. — Page 00. 
 
 In early times, all interest for money, or usury, ai it was dun 
 called, was unlawful. Yet, in defiance of heavy penalties, ne- 
 cessity enforced the payment of intereet, often upon exorbitant 
 
 terms. The first itaiOtC ■ntborising and limiting the rate of in- 
 terest in England, was in the reign of Henry VIM. in tlie year 
 1 'i Mi, when it was fixed at ten per cent. in the nign of hit: 
 £'icr*s»or, F.dward VI. all interest was agaiu prohibited. In th« 
 e e yea*
 
 210 
 
 year 1572, in the reign of Elizabeth, interest was permitted at 
 the rate often per cent. In 1 624-, in the reign of James I. the 
 fate was reduced to eight per cent. In 1651, during the usur- 
 pation of Cromwell, it was reduced to six per cent.; and this 
 was confirmed at the Restoration. In 1714, it was reduced to 
 five per cent.; at which, as the legal rate, it has continued 
 since. 
 
 All these reductions by law seem rather to have followed than 
 anticipated the actual rate of interest, arising from the commer- 
 cial state of the nation. To compel the lending of money at a 
 lower rate of interest than that which naturally results from 
 existing circumstances, is equally impracticable as to prohibit 
 interest altogether. But when the actual rate of interest fell 
 below the legal standard, that rate was reduced to prevent par- 
 ticular acts of oppression. 
 
 In Italy and other states where commerce was earlier esta- 
 blished, interest was reduced sooner and lower than in England. 
 In Scotland, the reduction took place a little later. Interest 
 there was reduced to eight per cent, in the year 1633, being 
 nine years later than in England : and it was reduced to six pei" 
 cent, in 1661, ten years later than in England. 
 
 Note VI. — Page 6 1 . 
 
 The terms of this tontine were, That the subscribers of 
 L.100. 5s. being distributed into six classes according to their 
 ages, should receive the undermentioned annuities, with benefit 
 of "survivorship in their respective classes, till the annuity on 
 the original share amounted to L.100O, after which the surplus 
 is to fall to the public. 
 
 1st Class, under 20 years of age, - L.4 3 
 
 2d Class, from 20 to 30, - - * - 4 5 6 
 
 3d Class, from 30 to 40, - . - - - 4 S 6 
 
 4th Class, from 40 to 50, - - - - 4 13 6 
 
 •>th Class, from 50 to 60, - - - - 5 16 
 
 6th Class, above 60, - - - - - 5120 
 
 The
 
 211 
 
 The amount of annuities granted on these terms (including a 
 subsequent addition) was - L.18,347 
 
 And for the remainder, annuities for 6'ji years were 
 allowed at the rate of LA. 5s. for each subscription, as 
 above, amounting to - L.21-,36"; 
 
 And in order to place those persons who retained their shares 
 in the tontine on the same footing as if the whole had been fill- 
 ed up, the treasury was empowered to nominate lives among 
 persons in public station, to be distributed in the several classes 
 in the same proportion as the nominees appointed by the sub- 
 scribers ; by whose death, as well as that of the actual holders 
 of the tontine, the benefit of survivorship should be regulated. 
 The amount of annuities entered in these names was L.21,681: 
 Thus the sum payable by the public is variable, according as a 
 greater proportion of deaths happens among the real or fictitious 
 nominees. 
 
 Note VII.— Page 6-k 
 
 The branches of revenue formerly appropriated to the civil 
 list, were the profits of the post-office; a few branches of the 
 excise and customs; part of the duty on wine licences; the re- 
 mains of the ancient hereditary revenue ; anil a further sum of 
 L.I 20,000, charged on the aggregate fund. At the beginning 
 of the present reign, these branches were added to the aggre- 
 gate fund, and that fund was charged with Em annual payment 
 ',000, as the full and permanent allowance for the civil 
 list. This sum has been since augmented several tiuns, and 
 now amounts to L.9&8.0OO, betides all— a wet* to tin- branches 
 . al family ; — an augmentation by no means adequate 
 to the deterioration of tli>- rftfcK of mom \ during the period. 
 And although <;.ui ~»;!ii ahlc tiflM li.iVr I. mi lM tilled to supply 
 
 the deficiencies <>i id.- <ivil list, the vrbole money appropriated 
 
 to it during this rei^n, is inferior to the produce of the brunches 
 of revenue which finality belonged M it. 
 
 \OTE
 
 212 
 
 Note VIII.— Page 67. 
 
 In the account of the public debt presented to the House of 
 Commons in 1799, it is said, that " it has been found im- 
 " practicable to ascertain the amount of the sums raised at dif- 
 " ferent periods, which created the capitals composing the 
 " several funds existing prior to 33 Geo. III. Anno 1793." 
 
 This avowal of ignorance, which may appear surprising where 
 every means of official information was at command, may ex- 
 cuse a private inquirer, if his statements at an earlier period be 
 imperfect An error, in the former edition, of stating the sums 
 raised by lotteries during the American war, as being in addi- 
 tion to the loans, is now corrected. We have not attempted a 
 statement of the financial operations by funding bills during that 
 period. 
 
 Note IX.— Page 6S. 
 
 All the loans contracted in the American war were connect- 
 ed with lotteries. The subscribers to the loan of 1776 received 
 for every L.100 subscribed, stock in the 3 per cents. L.77 10 
 And three lottery tickets (in all 60,000) valued at 
 L.10. The prizes being funded, the holders of 
 the fortunate tickets received a capital in the 
 same fund of - - - - • -30 00 
 
 L.107 10 
 
 This arrangement was intended to afford a profit on the lot- 
 tery tickets to the subscribers, and a plan still more beneficial 
 was adopted in the loans of the following years. 
 
 The subscribers to the loan of 1777 received 50,000 tickets, 
 being one ticket for every L.100 subscribed. 
 
 The subscribers to the loan of 1778 received 48,000 tickets, 
 being eight tickets for every L.1000 subscribed. 
 
 The
 
 213 
 
 The subscribers to the loan of 1779 received 49,000 tickets, 
 being seven tickets for every L.100O subscribed. 
 
 The subscribers to the loan of 1780 received 48,000 tickets, 
 being four tickets for every L. 1000 subscribed. 
 
 The subscribers to the loan of 1781 received 48,000 tickets, 
 being four tickets for every L 1000 subscribed. 
 
 The subscribers to the loan of 1782 received 40,500 tickets, 
 being three tickets for every L.1000 subscribed. 
 
 The subscribers to the loan of 1 7S3 received 4S,000 tickets, 
 being four tickets for every L.1000 subscribed. 
 
 The subscribers to the loan of 17 84 received 30,000 tickets, 
 being six tickets for every L.1000 subscribed. 
 
 The subscribers to the loans subsequent to 1776 paid for their 
 tickets at the rate of L.10 in addition to the sum advanced by 
 them for the loans ; and the prizes were not funded, as they 
 had been in the seven years war, and in the lottery of 1776, 
 but were paid to the holders of the fortunate tickets, to the ex- 
 tent of L.10 per ticket, in the spring of the following year. 
 
 Note X. — Page 70. 
 
 The following annuities, expired before 1793, were transfer- 
 red to the Commissioners for the redemption of the national 
 debt. 
 
 Old long annuities, William and Mary, - - L.54,881 
 Annuities, 17 Geo. III. ----- 25,000 
 
 Which added to the annuities existing in 1792, - 
 
 Makes up the sum stated by the select committee 
 
 of finance, in 1797, L.1, 373,751 

 
 214 
 
 Note XL— Page 73. 
 
 In funding the navy bills, 1797, option was given to the hold- 
 ers to receive capital either in the three per cents the four per 
 cents, or the five per cents, at different rates, according to the 
 dates of the bills, as exhibited in the following table. 
 
 Bills dated before 
 
 IstJanuary, 1796, 
 30th April, 
 31st July, 
 27th October, 
 
 If all the navy bills then funded, had been at the second of 
 
 these rates, (which were the rates allowed for the Exchequer 
 
 bills funded at the same time) the amount would have stood as 
 
 follows : — 
 
 L.9,293,483 in 3 per cents, at L.I76 19 9| L.16,438,175 
 
 544,982 in 4 per cents, at 137 13 7| 765,428 
 
 1,728,617 in 5 per cents, at 118 10J 2,034,890 
 
 3 per cent. 
 
 4 per cent. 5 per cent. 
 
 L.173 11 5 
 176 19 9$ 
 175 8 9 
 173 18 3 
 
 L 138 17 9£ 
 137 18 7| 
 136 19 8§ 
 136 1 1 
 
 L.119 111 
 118 6 10! 
 
 117 12 ni 
 
 116 19 2 
 
 L. 1 1,567,082 L. 19,238,493 
 
 But the amount of navy bills actually funded, was L.1 1,595,529 j 
 therefore the average rates must have been lower than those of 
 the second class. 
 
 Note XII.— Page 74. 
 
 The loan of L.l 8,000,000 in the year 1796, (commonly call- 
 ed the Loyalty Loan,) was contracted on the following terms : 
 The subscribers of L.l 00, received a capital of L.1 12. 10s. in a 
 separate fund at five per cent.; and it was agreed that the hold- 
 ers, two years after the ratification of a definitive treaty of peace, 
 should be entitled either to receive payment, or to have their 
 stock converted into three per cents, at the rate of L.l 33. 6s. 8d. 
 
 for
 
 21 
 
 for L.100 capital. But this loan is not redeemable on the part 
 of Government, till three years after the other five per cents, be 
 paid. The subscription was filled up in a few days, the sum 
 funded being L .'20,121,843. 
 
 This agreement came to be implemented in 1801. The con- 
 l O Q W Mlt operation* were continued for several years, and some 
 portion of this loan has been paid every year since ; but these 
 are all introduced in the (able, in the year 1805. 
 
 In consequence of the renewal of the war, the price of the 
 funds was so low, that the holders of the loyalty would have 
 been losers by accepting of L. 135. 6s. 8d. in the three per cents. 
 It was necessary, therefore, either to pay them, or ofFer them 
 more advantageous terms. 
 
 By act 11 Geo. III. cap. IV), the holders of the loyalty loan 
 were intitled to receive L. 100 in the five per cent, consols ; and 
 so much additional in the three per cent, reduced, as would 
 make up the value of L.IOO, at the current price. 
 
 By act 15 Geo. III. cap. 8. the holders of L. 1,11-3, 817 were 
 to receive so much capital in the five per cent, consols, or the 
 three percent, reduced, as would be equal in value to L.IOO; 
 and M much additional capital in the three per cents, reduced, 
 as would be equal to ten shillings more ; and these terms were 
 accepted by the holders of about three-fourths of that sum. 
 
 B- act 15 Geo. Ill cap. 7 3, the same terms were granted to 
 other holders of the loyalty loan, to the extent of 1*1,254,62° • 
 
 The money required to pay such as did not accept of these 
 terms was obtained by allowing the same terms in the way of 
 loan; and the capital granted in the live per cents, for every 
 I.. ioo advanced, as lettled !>v the average price of stock for the 
 ten preceding days, w as L. i i 3. i 3s. Id. 
 
 The holders of the five | r cent annuities 1902, amount, 
 L.2,227,6 1 2, which waa joined to the loyalty loan, were enti- 
 tled to the same terms. 
 
 The effect of these operations was to make an addition to the 
 
 three
 
 216 
 
 three per cents, of 
 
 And to subtract from the five per cents. 
 
 L.7,426,2S3 
 4,045,502 
 
 Making an addition to the funded debt of - L.3,380,73 1 
 
 And there has been paid of the loyalty loan, 
 
 The particulars are as follows : 
 
 L.1,762,394 
 
 1804 
 
 1805 
 
 Sums transfer- 
 red from loyal 
 ty loan. 
 
 3,263,553 
 
 2,678,561 
 
 2,019,661 
 
 1,005,290 
 18,967,067 
 
 Capitals added 
 to S per cts. and 
 5 per cts. cons. 
 
 subscribed into 5 per cent, cons; 
 And an additional capital granted in 
 
 3 per cents, reduced, of 
 subscribed into the 3 per cent, reduced, 
 And an additional capital of - 
 Afterwards a further additional capi- 
 tal of ... 
 Capital added to 3 per cents 
 subscribed into 5 per cent. cons, and 
 an additional capital granted in the 
 same of 
 borrowed in 5 per cent. cons, to pay 
 
 off loyalty loan. 
 And an additional capital of 
 Sums added to 5 per cent, capital, 
 Sums transferred from loyalty loan to 3 per cents. 
 
 as above, __-.-- 
 
 Loyalty loan paid off in 
 
 2,716,815 
 2,678,561 
 1,785,707 
 
 245,149 
 
 7,426,233 
 
 265,018 
 
 130,436 
 
 395,454 
 
 L.2,678,561 
 
 1806, 
 1807, 
 1808, 
 1809, 
 1810, 
 1311, 
 J 8 1 2, 
 
 L.979,257 
 336,088 
 153,697 
 60,867 
 18,776 
 113,410 
 100,292 
 
 Sums deducted from 5 per cents. 
 
 Curried forward. 
 
 1,762,394 
 
 L. 4,440,956 
 
 .Sums
 
 2)7 
 
 Brought forward, L. 1,110,950 
 
 Suras added to 5 per cent. cons, as above, 395*454 
 
 Balance deducted from 5 per cents. L.4,015,502 
 
 And the present state of the loyalty loan is as follows : — 
 
 Amount loyalty loan, - L.20,121,8 13 
 
 Five per cents. 1 802, - 2,227,612 
 
 L.22,352,155 
 Sums transfened as above, L.1 8,967,067 
 
 Sums paid off as above, - 1,762,391 
 
 20,729,161 
 
 Remaining of loyalty loan, 1st Feb. 1812, L 1,622,904, 
 
 By these operations on the loyalty loan, there is 
 
 added to the interest on the public debt, L.20,513 
 
 And to the management, - 1,682 
 
 L.22,195 
 
 Note XIII.— Page 77 and 81. 
 
 A method was had recourse o in adjusting the terms of the 
 loan 1802, which indicated considerable pressure on our re- 
 sources : L.125 was granted in the three per cents. ; and as part 
 of the annuities for terms of years expired in 1808, an addition- 
 al capital was granted to compleat the necessary emolument, 
 the interest of which was deferred till these annuities should 
 expire. Thus the relief in view by the falling in of these an- 
 nuities, was disappointed to a certain extent. The bidding fur 
 the loan was on this deferred stock, and it was taken at 
 L.6. 19s. 3d. 
 
 Note XIV.— Page 80. 
 
 The loan of 1807 was raised on Lord Henry Petty's plau. U 
 
 account of which is given, page 99, &e. 1)19,000*000 UJ » 
 
 r f cbtrged
 
 213 
 
 charged on the war taxes, and L. 1,200,000 of these taxes mort- 
 gaged for interest and redemption. The remaining L.200,000 
 was raised as a supplementary loan in the common manner, 
 with a sinking fund of one per cent. A separate accompt is 
 kept of this loan : But this plan, though intended to be perpe- 
 tual, was never followed out afterwards. 
 
 Note XV.— Page 82. 
 
 The loan of 1 S09 was raised at L.60 in the three per cent, 
 reduced, L.60 in the four per cent. cons, and a long annuity of 
 Ss. lOd. L.600,000 of this loan was for Portugal; and instead 
 of distributing that sum among the different funds charged with 
 the general loan, L.895,522 was set aside in the three per cent, 
 reduced, as an equivalent, and a sinking fund of L.30,000 pro- 
 vided for its redemption. 
 
 Note XVI.— Page 82. 
 
 An option was given this year to the holders of the exchequer 
 bills proposed to be funded, that they might receive either 
 L.103. 5s. in the five per cent. cons, or L.81. 8s. in the five 
 per cents, and L.26. 5s. in the four per cents. A similar option 
 was given next year. 
 
 Note XV1L— Page 70 and 87. 
 
 Annuities for lives have been granted at various times, to 
 the amount of L. 15 1,437, exclusive of those which were con- 
 verted, or entirely fallen in before 1786; generally on single 
 lives; sometimes on two or three lives; and sometimes with 
 the benefit of survivorship. They were reduced by death in 
 1786, to L.94,878 ; at which time the present sinking fund was 
 established, and the sums saved by their farther reduction, ap- 
 pointed to be carried to that fund. They were reduced in 
 
 1798
 
 213 
 
 1798 to L.79,135; in 1S02, to L.73,796; and in 1612, to 
 L.65,571 ; and as a considerable part of this last sum has not 
 been demanded for these three years, the reduction by death is 
 probably greater. The particulars of tUe original amount of 
 these annuities; their state at the commencement of the sinking 
 fund; and their present state, are exhibited in the following 
 table. 
 
 ACTS. 
 
 Original 
 
 Expired 
 
 Remain- 
 
 Expired 
 from 1786 
 
 Rem a in - 
 
 
 amount. 
 
 1786. 
 
 ing 1786. 
 
 to 1813. 
 
 
 5 Will, and Marv, 
 
 22,033 
 
 14,438 
 
 8,195 
 
 8,195 
 
 
 18 Geo. II. 
 
 22,500 
 
 10,182 
 
 12,318 
 
 4,034 
 
 8,284 
 
 19 Ditto, 
 
 45,000 
 
 22,533 
 
 22,407 
 
 7,517 
 
 l (,944 
 
 30 Ditto, 
 
 33,750 
 
 9,183 
 
 24,507 
 
 8,400 
 
 10,101 
 
 Geo. III. tontine, 
 
 5K) 
 
 - 
 
 540 
 
 - 
 
 540 
 
 1 8 Ditto, 
 
 2,849 
 
 80 
 
 2,709 
 
 232 
 
 2,538 
 
 19 Ditto, 
 
 5,318 
 
 143 
 
 5,175 
 
 923 
 
 4,252 
 
 pt Ditto, tontine, 
 
 18,442 
 151,032 
 
 
 18,442 
 
 " 
 
 18,442 
 05,100 
 
 94,473 
 
 Addition to tontine, 
 
 405 
 
 - - 
 
 405 
 
 - 
 
 405 
 
 151,437 
 
 56,559 
 
 94.87S 
 
 29,307 
 
 65,571 
 
 Amount of annuities granted for years or lives, L. 1,7 29,7 3 1 
 Addition to tontine of 1789, ... 405 
 
 L.l, 730,137 
 
 Deduct annuities fallen in by expiry of the term 
 in 1805, 0, 7, and 8. - L. 191,0 )0 
 
 By i«ath of annuitants from 1780 to 
 
 1S13, 29,307 
 
 Addition to tontine, 
 
 
 -23,90^ 
 
 Sumdeducted from annuities in TaMc II. L. >2 (,557 L.1 ,2<>0,l 7 I 
 £&d life annuities for capital converted, - - 1 > ,'>7 
 
 Amount of annuities existing 1st February I813j L. I,J U,*> 17 
 
 Motj
 
 220 
 
 Note XVIII.— Page 87. 
 
 An account of the allowances for the management of the na- 
 tional debt is given, page 91 and 92. It has been diminished 
 by the reduction of the rate, — by the falling in of annuities, — - 
 the redemption of the capital by the sinking fund, — and the 
 transference for land tax. It was thought unnecessary to intro- 
 duce the portions of abatement in the statement of each year's 
 charge, and the whole is deducted at the end of Table II. 
 
 The savings in management by the reduction of the rate, and 
 annuities fallen in, is ... - - L.54,493 
 
 For capital redeemed by the sinking fund, - - 71,556 
 Tor capital transferred for purchase of land tax, - 8,295 
 
 L. 134,344 
 Tor capital converted into life annuities, - - 667 
 
 L. 1 35,0 II 
 
 Note XIX.— Page 97. 
 
 The interest, &c. of all the debt, whether existing at the esta- 
 blishment of the consolidated fund, or contracted since, as well 
 as the civil list, and other parliamentary grants, are charged on 
 the consolidated fund ; and it is credited with all the taxes in 
 force at its commencement, or imposed since, applicable to 
 these purposes. But the articles on both sides preceding 1303, 
 are now charged promiscuously ; and the charges on the loans 
 since 1303, are placed against the branches of revenue appro- 
 priated to each. 
 
 The interest, &c. of the loan 1 803, is charged on L.250,000 
 reserved out of the consolidated customs ; L.59,965 from the 
 consolidated stamp duties; and a variable sum from the assessed 
 taxes. 
 
 The interest, &c. of the loan 1804, is charged on the conso- 
 lidated
 
 221 
 
 iidated stamp duties, which were augmented by a duty on the 
 transfer of property according to its value. 
 
 The interest, ice. of the loans 1 805, is charged on consolidated 
 stamp duties and customs, to which certain additions were made; 
 on additional postage ; additional duty on horses; and ad " 
 al excise, on salt, auctions, bricks, coffee, cyder, glass, via 
 and wine. 
 
 The interest, &c. of the loan 1806, is charged on additional 
 duties on wine and spirits ; an addition of ten per cent, on as- 
 sessed taxes ; and a small charge on the stamp duties. 
 
 The interest, ice. of the loan 1307, is charged on the war 
 taxes, agreeably to Lord Henry Petty*! syi 
 
 The intere^r, ice. of the loans 3 SOS, is charged cr. I 
 assessed taxes and stamp duties. The short annuities, now fallen 
 in, and savings by the reduction of the rate of management, were 
 brought in aid of this year's charge. 
 
 The interest, ice. of the loans I2O9, was charged on the war 
 taxes, except an allowance of L. 105,000 from the consci 
 customs. 
 
 The interest, ice. of the loans IS 10, was charged on th: 
 plus of stamp duties, produced by their increase and consolida- 
 tion. 
 
 The interest, ice. of the exchequer bills funded in 1811, was 
 charged on additional duties on spirits ; and that of the loan, on 
 the war taxes : to replace which, additional duties were imposed 
 on timber, ashes, and foreign linen, and added to the war taxes. 
 
 The interest, &c. of the deb: contracted 1512, was charged 
 on additional assessed taxes; additional duties on glass, hides, 
 tobacco, and snuff; and additional postage. 
 
 The sum required by the system adopted in 1313 is charged 
 on additional duty on tobacco, additional customs, (exc<n 
 tea, sugar, wine, raw silk, and cotton wool,) additional duty on 
 French wine, and additional war taxes on import* and exj
 
 222 
 
 Note XX.— Page 98. 
 
 The term of forty-five years was mentioned when the one 
 per cent, sinking fund was announced, as that in which each 
 loan would be repaid at furthest. The actual term depends upon 
 the rate of interest, and the comparative prices of stock when 
 the debt is contracted, and during the period of its redemption. 
 Supposing these equal, and the sinking fund 1-lOOth of the 
 sum borrowed, the periods required for redemption are, 
 
 At 3 per cent, interest, - 47 years. 
 
 At 3l per cent. 44 years. 
 
 At 4 per cent. - - 41 years. 
 
 At 5 per cent. 37 years. 
 
 But if the loan be funded in the three per cents, at 60, and there- 
 fore the sinking fund l-60th of the sum borrowed, the periods 
 required for redemption are, 
 
 At 3 per cent. - - 35 years. 
 
 At 3i per cent. - - 33 years. 
 
 At 4 per cent. - - 31 years. 
 
 At 5 per cent. 29 years. 
 
 Note XXL— Pajje 108. 
 
 To place the sinking fund proposed on the loans, upon Mr. 
 Vansittart's plan, in a clear point of view, we shall detail its 
 application to the financial operations of the year 1813.* 
 
 Exchequer bills funded at L.l 15. lGs. in 
 
 5 per cents. .... 
 Ditto funded at L. 1 39 in 4 per cents. 
 Loan funded at L.l 70 in 3 per cents. 
 
 Kstimated sum applicable to the dis- 
 charge of the national debt, 1st Fe- 
 bruary 1813, 
 
 Additional debt contracted, 
 
 bums 
 borrowed. 
 
 2,000,000 
 
 36,755,700 
 
 13,013,914 
 23,741,786 
 
 Capitals 
 funded. 
 
 13,860,000 
 
 3,755,700 5,220,423 
 2 1 ,000,000 35,700,000 
 
 54,780,423 
 
 The 
 
 See act 53, Geo. III. cap. 95.
 
 The linking fund to be provided on the former i» 1 per c«nt. 
 on the funded capital, and on the latter, one half of the interest. 
 
 The charge on the former part is, 
 funded for 
 Ex. Bills, L. 12,000,000 L.13,860,000 Interest, L.G'.»3,000 
 
 Ditto, 1,013,914- 1,409,340 Interest, 56,874. 
 
 L.1 3,01 5,9 14 L.I5,2G9,340 Interest, L.749,37 4 
 
 Management, 4,580 
 1 percent. 152,093 
 
 Amount charge on former part, - L.900,047 
 
 The charge on the latter part is, 
 
 Ex.BilU, L.2,7H,7S6 L.3,81l,OS3 Interest, L. 152,443 
 
 One hall, 7G.221 
 
 Management, 1,14V 
 
 Amount charge on Exchequer bills, - - L.229,808 
 
 Loan, 21,000,000 35,700,000 Interest, L. 1,07 1,000 
 
 L.23,741,7S6 L.39,51 1,083 One half, 535,500 
 
 13,013,914 15,209,3 KJ Longanimity, 89,250 
 
 L.50,755,7oo L.54,780,423 Management, 12,878 
 
 Amount charge on loan, - L 1,708,028 
 
 on Exchequer bilk 
 
 Amount charge on latter part, - * - 1 
 
 on former part, - 
 
 Whole charge, 
 
 And the sinking fund h.
 
 in 
 
 One per cent, on former part, 
 
 L. 152,593 
 
 Half interest on latter part, 
 
 - L76,22I 
 
 and 
 
 535,500 
 
 
 611,721 
 
 Whole sinking fund on debt of 1813, - - L.764,414 
 
 Now, to meet the above charge of L.2,845,084 
 
 the following capitals are ordered to be cancelled. 
 3 per cent. cons. L.46,88 4,600 
 3 per cent, reduced, 47,892,500 
 
 L.94,777,100 Interest, L.2,843,31S 
 
 Note XXII.— Page 1 10. 
 
 The terms for the purchase of the land tax, now offered, are 
 the following, in option of the purchaser. 
 
 1st. Transfer of stock at one time, or by four instalments in 
 two years. 
 
 2d. Payment of money at like periods, the amount being re- 
 gulated by the current price of stock. 
 
 3d. Transfer of stock in sixteen years, by two instalments 
 each year. 
 
 4th. Payment of money at the like periods, and to the like 
 amount. 
 
 5th. Land tax on houses may be redeemed at 1 S years pur- 
 chase, to be paid within three months. 
 
 6th. Land tax on lands not exceeding L. 10, may be redeem- 
 ed by a double assessment of land tax for 1 S years. 
 
 7th. By a double assessment of land tax, until the quantity of 
 atock purchased therewith, and the dividends and interest accru- 
 ing thereon be sufficient for the redemption of the land tax, giving 
 the proprietor the benefit of accumulation at compound interest. 
 This mode, at the present price of stock, will redeem the land 
 fax in 14 years. 
 
 Not*
 
 no 
 
 Note XXIII.— Page 113. 
 
 In the official account of the funded debt of Great Britain, 1st 
 February 1812, the amount payable to the Commissioners for 
 annuities fallen in by death is L.29,307. But in the account of 
 the progress made in the redemption of the debt, the sum ap- 
 plicable to the reduction of the debt from the death of nominees 
 to life annuities, prior to ,5th July 1 802, is stated only at 
 L.2 1,1 + 1 ; and the same difference occurs in the statements of 
 the former years. 
 
 Note XXIV.— Page 11*. 
 
 The inequality of the funded debt contracted in different years 
 is remarkable. The expense was much greater in some years 
 fhan others; but the inequality is partly to be accounted for 
 from the loans having sometimes been made near the end of the 
 year, and applied to the service of the following year; and 
 also, from the increase or diminution of the unfunded debt. The 
 debt contracted annually since the renewal of the war in 1803, 
 has been less than in the former war, owing to the large sums 
 raised by war taxes and otherwise, within the year. It is re- 
 markable that the debt redeemed in 1S08, before reduction to 
 three per cent, is greater than the debt contracted. 
 
 The increase of the public debt for Britain, in IS 12, may be 
 thus estimated. 
 
 Reduced to 5 per ccntj. 
 J. Funded in 5 per cents. - L.5, 866,236 L 9,777,0(50 
 
 U. Funded in ditto, - 7,332,71)5 12,231,325 
 
 V. Funded in 3 per cents. - 27..VH..OOO 
 
 L. +9,54-2, 3 8 5 
 (DCreftM of unfunded debt, 3,80U,637 MO '' 
 
 Carried forw L.V\87o,7.so 
 
 <•• 5 Btdwed
 
 226 
 
 Brought forward, - L.55,876,780 
 Redeemed by sinking fund in 3 per cents. - 20,922,876 
 
 Addition to public debt, estimated in 3 per cents. L.34-,953,904 
 and estimated in 5 per cents ... 22,972,342 
 
 And the increase in other years may be estimated in the same 
 manner. 
 
 Note XXV.— Page 157. 
 
 These sums (except the two last,) are taken from the return 
 to an order of the House of Commons, dated 19th February 
 1811 They do not comprehend the charges of collection, 
 amounting now to above three millions, nor the money repaid 
 on drawbacks, bounties, and like allowances. They compre- 
 hend the rents of crown lands, and some other parts of heredi- 
 tary revenue, which do not form any part of taxation. They 
 comprehend the balance in the hands of the collectors and re- 
 ceiver general, and the bills in the hands of the receiver- general 
 at the commencement of each year; and as the balances and 
 bills outstanding at the end of the year, are not deducted, the 
 sums contained in the table are larger than the amount of the 
 taxes by the amount of these balances, which, on the 5th Ja- 
 ■uary 181 1, were L.1, 877,518 ; and on the 5th January 1812, 
 L.2,03 1,826 ; and on the 5th January 1813, to L.2, 195,888. 
 
 Notwithstanding these inaccuracies, this table exhibits a 
 competent view of the progress of our taxation. 
 
 Note XXVI.— Page 160. 
 
 The high encomiums bestowed upon Mr. Pitt's sinking funds., 
 rendered it necessary to enter into a full discussion of their 
 merits. 
 
 " To the consolidated fund the country has looked for the 
 " interest of its debt, and for its •xtinction, to the sinking fund. 
 
 " The
 
 227 
 
 41 The best eulogium that could be made on the sinking fund, 
 " was the plain statement he had made. There could be but one 
 " opinion in the House on the subject. It ivas owing to the inslitu- 
 " tion of the sinking fund that the country was not charged ivith a 
 " much larger amount of debt. It was an advantage gained by 
 " nothing, and a system likely to be attended with still greater 
 " advantages. Therefore, independent of considerations of good 
 " faith, which should induce the House to hold and cling to a 
 " system once adopted, it was pledged to support it, having 
 " positive trial and experience of its utility." — (From Ijori 
 Henry Petty's Speech at opening the Budget, 29th March, 1 806, 
 as reported in the Newspapers at the time.) 
 
 " On the same principle which guided the determination of 
 •' Parliament in 1786, another act was passed in 1792, which 
 " provided, that on all future loans, a surplus of one per cent. 
 " per annum on the capital, should be raised for the redemption 
 " of the capital. This was an idea conceived in the spirit of in.' 
 " flexible integrity and economy, of which nations rarely afford an 
 *• example, though, like the same virtues in private life, it n 
 " calculated to promote, in the highest degree, their prospe- 
 " rity." — (Examination into the Increase of the Revenue, from 
 >792 to 1799, by George Rose, Esq.) 
 
 Quotations of a like kind might be adduced to a large extent. 
 
 Note XXVII.— Page 170. 
 
 In Mr. Rose's Examination into the Increase of the Revenue, 
 &c. 1799, a table is given of the money borrowed, and capital 
 debt contracted since the commencement of the war, in which 
 the loan of 1793 is stated at nine millions, with a corresponding 
 capital, and the columns summed accordingly. He adds, in- 
 deed, in a note, that " the loan of 1798 was for 17 millions; 
 " but the charge on the consolidated fund was only for nine 
 " millions, as the remaining eight millions is to be supplied 
 k. g 2 " l'ruin
 
 2:28 
 
 " from the aid and contribution tax, in purchasing stock to the 
 " extent of the capital created by that sum." 
 
 Did he believe, or (lid he expect his readers to believe, that 
 this part of the loan, which he endeavours to keep out of view, 
 was less a burthen on the public, because it was then proposed 
 to discharge it by a certain tax to be levied on the public ; — an 
 arrangement which was soon after relinquished? 
 
 Note XXVI11. —Page 179, 
 
 In the first part of Table X. which exhibits the progress of 
 taxation and of the sinking fund on Mr. Vansittart's plan, com- 
 pared with that of the former system, the years marked on the 
 margin are higher by one, than in the outlines, Table A. 1.; 
 because the taxes imposed, suppose .in 1813, can hardly be- 
 come effectual before the 1st August of that year; and, there- 
 fore, their produce the first year, or from 1st August 1813 to 
 1st August 181 4-, ought to be set in opposition to the produce 
 of the sinking fund during the same time. 
 
 Note XXIX.— Page 202. 
 
 In order to support the value of the five per cent, stock, it was 
 enacted that it should not be redeemable till 25 millions of the 
 three per cents, were paid off with money applicable to the re- 
 demption of the public debt. This restriction is now removed 
 by the condition being fulfilled. The loyalty loan is not re- 
 deemable at par till the expiration of three years after the con- 
 solidated five per cents, are paid ofK 
 
 Note XXX.— Page 205. 
 
 The subject of this section is more fully examined now thaw 
 >. was in the former edition, and, the result is more favourable 
 the system of funding in the 3 per cents. Nothing, howevn , 
 /•pears sufficient to alter our general judgment on the subject. 
 
 APPEKBWS
 
 APPENDIX I. 
 
 § 1. ACCOUNT OF THE STOCKS. 
 
 The term Fund properly signifies any sum of money, or an» 
 nual revenue, appropriated to a particular purpose. Thus, the 
 part of the revenue which is set aside for the payment of the 
 national debt is called the Sinking Fund. But when we speak of 
 the funds, we generally mean those large sums which have been 
 lent to Government, and constitute the national debt, and for 
 which the lenders or their assignees receive interest from the 
 public revenue. These persons are said to invest their money 
 in the funds. The term Stock is used nearly in the same sense; 
 and is also applied to the sums which form the capital of the 
 Bank of England, the East India and South Sea Company, and 
 other public companies, the proprietors of which are entitled to 
 a share of their respective profits. 
 
 The funds which at present constitute the public debt, or are 
 connected with it, are, 
 
 Bank Stock. The Bank of England was incorporated in ] 0' ( J4. 
 Their original stock, raised bv subscriptions not exceeding 
 L.20,000 in one name, was E 1 ,:>(.)< ),<)00, which was lent to 
 Government at S per cent, interest, and L490Q allowed for ma- 
 nagement, amounting together to L 100,000. In the year 
 1709, the Bank advanced L.lOD.oi)) moru to Government, with- 
 out
 
 230 
 
 out addition*! interest, which reduced the interest received by 
 them to 6 per cent. They afterwards advanced various sums to 
 Government, by withdrawing exchequer bills or otherwise, un- 
 til the permanent debt due to them amounted, in 17 46, t» 
 L.1 1,636,800, at which it has remained since. The rate of in- 
 terest has been gradually reduced, and is now 3 per cent. Be- 
 sides this permanent debt, the Bank has been long in the prac- 
 tice of assisting Government, by advancing money on exchequer 
 bills, in anticipation of the land and malt taxes, and now of the 
 annual taxes substituted for the former; by payment of bills 
 drawn on the treasury, and otherwise, to a great extent. The 
 stock of the Bank has been enlarged, at a rate nearly keeping 
 pace with their advances to Government, but not exactly the 
 same : The sum upon which they divide is L. 1 1,64-2,400. 
 
 The first term of the charter of the Bank was only to the year 
 1705, and it has since been extended from time to time, being 
 liable to dissolution at the term specified in each charter, upon 
 twelve months notice, and repayment of the money advanced, 
 by Government. It is also provided by the various loan acts, 
 that the Bank shall remain an incorporation after the term spe- 
 cified in the charter, for the purpose of transacting the business 
 of these loans, till they be redeemed. 
 
 In the year 1800, at which time their chatter stood extended 
 to 1812, it was agreed, upon the advance of L.3,000,000 by the 
 Bank to Government for six years without interest, to prolong 
 their charter till the end of twelve months notice, after 1st Au- 
 gust 1833; and, in 1806, it was agreed to continue this ad- 
 vance till six months after the conclusion of a definitive treaty 
 of peace, at 3 per cent, interest. 
 
 In 1808, a further advance of L.3,000,000 was agreed to be 
 made by the Bank, without interest during the war, in consi- 
 deration of the large deposits of public money made in their 
 hands, the average of which was estimated to exceed ten mil- 
 lions. 
 
 The state of these agreements stands thus : 
 
 Interest
 
 231 
 
 Interest on L 6,000,000 advanced by the bank, at 5 per cent. 
 
 would be------- L.300,000 
 
 But Government pays only interest on L.3,000,000, 
 
 at 3 per cent. ..--,. 90,000 
 
 Balance in favour of Government, - L.2 10,000 
 
 The Bank have also advanced to Government L.376,739, and 
 afterwards L.500,000 more, without interest, in consideration 
 of the large sum of unclaimed dividends on the public funds al- 
 ways remaining in their hands. 
 
 The dividend on the bank stock at its establishment in 1 69+, 
 was 8 per cent. In 1697 it rose to 9 per cent, but soon after- 
 wards fell, and yaried from 6 to 5\, and 5 per cent. ; and in 
 175+ fell so low as 4-1 per cent. In 1783 it rose to 7 per cent, 
 jmd in 1807 to 10 per cent., at which rate it has continued since. 
 The dividends are payable on the 5th April and 10th October. 
 In the interval between 1783 and 1807, the following bo- 
 nuses were paid to the proprietors of bank stock, in addition to 
 the dividend, from the surplus profits. 
 
 Ladyday, 1799, L.10 per cent, in the loyalty loan. 
 Ladyday, 1 800, 5 in the navy 5 per cents. 
 Michaelmas, 1802, 2 10 in ditto. 
 Michaelmas, 1 80+, 5 in money. 
 Michaelmas, 1805, 5 in money. 
 Michaelmas, 1806, 5 in money. 
 
 In all, - - L.32 10 
 
 The income of the Bank arises from the interest of the per- 
 manent debt, and temporary advances to Government ; the al- 
 lowance for the management of the public funds; for receiving 
 contributions for loans, and transacting the business of lotteries ; 
 from the interest of stock held by the company, the discount of 
 bills of exchange, and some smaller articles. 
 
 The South S<a Cu.mpany w»3 incorporated in the year 171 1$ 
 
 for
 
 232 
 
 for the ostensible purpose of trading to the western coast 81 
 America. Their original capital was L.9, 177,967, lent to Go- 
 vernment, for which they received 6 per cent, interest, and 
 L.S0OO for management In 1715 the capital was increased to 
 L.10,000,000, and in 17 19 to L I 1,746,84-4, chiefly by adding 
 arrears of interest unpaid to the former capital. In 1720 a 
 scheme was formed for uniting all the public funds into one ; 
 ind, for that purpose, the Company was authorized to purchase 
 the debts and annuities due by Government, and enlarge their 
 capital in proportion to the extent of their purchase, and sell 
 this additional stock on the most advantageous terms they could 
 procure. The amount of these debts and annuities, (besides 
 those due to the Bank and East India Company, and not com- 
 prehended in the scheme) was, 
 
 Redeemable debts, bearing interest at 5 percent. L.1 1,779, 66d 
 Ditto, bearing interest at 4 per cent. 4,776,822 
 
 Amount of redeemable debts, ... L. 16,556,482 
 
 Long annuities for 89, 96, and 99 years, - - L.666,821 
 
 Lottery annuities for 32 years, - - - - 127,260 
 
 Amount of annuities, ... L.794,081 
 
 This scheme gave rise to an extraordinary scenfe of national 
 infatuation, generally called the South Sea Bubble. The expec- 
 tations entertained of advantage to be derived from this agree- 
 ment with Government, and from the extended trade to the 
 South Sea were so extravagant, that the price of their stock rose 
 in a short time to 1000 per cent, and soon after, upon a disco- 
 very of the delusion, fell as rapidly, to the ruin of many. The 
 folly of this national credulity is the more surprizing, as a simi- 
 lar delusion, of the Missisippi Company, had taken place in 
 France about a year before, attended with consequences still 
 more fatal. 
 
 The greater part, heweter, of the public debt was subscribed 
 
 into
 
 233 
 
 into the stock of this Company, and their capital was raised to 
 I,.37,302,4S3, of which four millions were purchased by the 
 Bank in 1722. The only branches of trade in which the Com- 
 pany ever engaged, were that of conveying slaves to the Spa- 
 nish colonies, and the whale-fishery ; and these being attended 
 with loss, were abandoned. Since 17 IS they have carried on no 
 trade whatever. Their stock has since undergone various modi- 
 fications, and has been considerably reduced by payments from 
 Government, and the rate of interest has sustained the same re- 
 ductions as in the other public funds. It is at present distributed 
 into the following branches: — 
 
 South Sea Stock, considered as the trading capital of the Com- 
 pany, though they have long ceased to trade. This was fi\ed, 
 in 1733, at L.S, 662,784, and has remained invariable since. 
 The dividend received by the proprietors of this stock is 3* per 
 cent, of which 3 per cent is paid by Government, and the re- 
 maining half per cent, by the Company. This they are enabled 
 to make from fines to which they are entitled from ships trading 
 within the bounds of their charter, and the allowance received 
 from Government for management. This article amounted, in 
 17S6, to about L 15,000, but is since reduced inconsequence 
 of the purchase of part of the capital under their management 
 by the Commissioners. 
 
 Old South Sea Annuities. These were separated from the other 
 funds of the Company in 1723, when they amounted to 
 L. 10, 90 1, 099, bearing interest at 5 per cent., reduced in 1727 
 to 4 per cent., in 17.31 to 3i per cent., and in 1757 to 3 per 
 cent. Part of the capital being paid oil' at diiFerent times, it waa 
 reduced in 1775 to L.l 1,907,470, at which it remained till .Mi. 
 Pitt's linking fund was established in 1786. 
 
 Nelv South Sea Annuities, separated from the other funds of 
 the Company in 17*33, when they amounted to L 10*998,31 8, 
 bearing interest at 4 per cent. The capital was reduced in 
 177 5 to L.8,494,830, ami tin; interest bai undergone the same 
 reductions as that of the old annuities. 
 
 n h /
 
 ::34 
 
 Thee per cent, annuities, 17 5 I, are also under the management 
 of the South Sea Company. This fund consisted originally of 
 L.2,100,000, borrowed for the purpose of paying off those 
 holders of South Sea annuities who did not consent to the reduc- 
 tion of interest which took place at that time. It was reduced 
 in 1775, by payments at various times, to L.1,9 19,600. 
 
 A considerable part of these three last mentioned funds has 
 been redeemed by the Commissioners since 1786. 
 
 The dividends on the South Sea stock, the new South Sea an- 
 nuities, and the 3 per cents. 1751, are payable 5th January 
 and 5th July ; those on the old South Sea annuities 5th April 
 and 10th October. 
 
 Tiiree per cent, reduced annuities. This fund commenced in 
 1746, and was then formed of various articles of public debt 
 which formerly bore a higher rate of interest, from which cir- 
 cumstance it derived its name. But many additions have been 
 made to it by subsequent loans which never bore interest at any 
 other rate. The dividends are payable 5th April and 10th Oc- 
 tober. 
 
 Three per cent, consolidated annuities- This is the largest of all 
 the public funds. It commenced in 3 731, but derived its pre- 
 sent name from the consolidating act in 1751, being formed by 
 the union of several capitals formerly kept separate. Many 
 additions have since been made to it. The dividends are pay- 
 able 5 th January and 5th July. 
 
 Three per cent, annuities, 1726. This fund consists of L. 1 ,000,000 
 borrowed by lottery in that year, for the discharge of exche- 
 quer bills issued for paying the arrears of the civil list. The 
 interest was at first charged on a duty of 6d. per L.l on pen- 
 sions, but it is now paid from the consolidated fund ; though 
 the fund itself, for reasons which do not appear, is still kept se- 
 parate. The dividends are payable at the same terms as those 
 of the 3 per cent. cons. 
 
 A fund bearing interest at Si per cent, was established in 
 
 175t>.
 
 235 
 
 1766, but the sums it was charged with have been since reduced. 
 to 3 per cent, interest, or paid oft'. 
 
 Four per cent, consolidated annuities. This fund commenced 
 in 1760; but L.23, 500,000 borrowed on it, in that and the fol- 
 lowing years, being paid oft) or the rate of interest, reduced, the 
 earliest article now belonging to it is a loan of L 5,000,000, in 
 1777, to which various other loans, or parts of loans, have since 
 been added. The dividends are payable at the same terms as 
 those of the 3 per cent, reduced 
 
 Navy five per cent, consolidated annuities. This stock com- 
 menced in I784j and was first applied for funding the navy, 
 victualling, and transport bills, then in circulation, from which 
 it derived its name. It has since received many additions, chief- 
 ly by funding exchequer bills. The dividends are payable at 
 the same terms as those of the 3 per cent. cons. 
 
 Loyalty Loan, or five per cent, annuities, 1 7 91 and 1802. An' 
 account of this fund is given in Note XII. The dividends arc 
 payable at the same terms as those of the 3 per cent, reduced. 
 
 Imperial three per cent, annuities. An account of this fund is 
 given, pages DO, 91. The dividends, though due November 1st 
 and May 1st, are not paid till January and July. 
 
 Irish five per cent, annuities, are not guaranteed by Britain, but 
 transferable at the Bank of England, and the dividends payable 
 there on the L'5th March and 23lh September. 
 And the terminable annuities are, 
 
 Annuities on lives. The amount of these, standing in tlte books 
 •f the exchequer, including tontines, on the 1st February is 13, 
 was L.6.3,57 I ; but a considerable part had not been demanded 
 for upwards of three years, and is probably expired. They are 
 payable at the exchequer half yearly, on the 5th January and 
 .Hh July, and are transferable by assignment indorsed on the 
 ordt t, which must be registered at the exchequer. Any person 
 receiving an annuity, knowing the nominee lo be dead, lorleiu 
 and treble the sum received. See Note XVII. 
 
 ». These terminate on the Stb Fanuary 1800; 
 
 ii h ■ mi
 
 3 23b 
 
 and are now payable half yearly, at the Bank, on the 5th April 
 and ]Oth October. The amount on the 1st February 1813, was, 
 
 British, L.1, 140,601 
 
 Irish, 104,083 
 
 L. 1,244,684 
 
 Converted life annuities. [See page 86.] The amount of stock 
 converted on the 5th January 1813, was, 
 
 3 per cent. cons. - L.l, 365,145 
 
 3 per cent, reduced, - 596,437 
 
 L.l, 961,582 
 
 and the subsisting annuities amounted to - L.l 35,675 
 
 payable at the same terms as the dividends of the converted 
 stock. 
 
 Imperial annuities, granted along with the last imperial loan 
 for 25 years, and payable at the same terms as the dividends 
 on that loan. They expire in May 1819, amount L.230,000. 
 
 § 2. OF THE EAST INDIA COMPANY. 
 
 The affairs of the East India Company have been, and still 
 are, so much blended with the public revenue, that some ac- 
 count of their progress and present state belongs to the subject 
 of our inquiry. 
 
 This Company presents a singular example of a mercantile 
 30ciet commencing on slender funds, and gradually expanding, 
 but not assuming for a century and a half any great political 
 importance; and afterwards acquiring the sovereignty of a 
 
 mighty
 
 237 
 
 mighty empire, exceeding the British Isles in extent and popu- 
 lation, perhaps in wealth ; still remaining in compleat subjec- 
 tion to the parent state, without contributing much, at least 
 not directly, to the public revenue. 
 
 The first charter was granted by Queen Elizabeth in 1600, 
 and conferred the exclusive privilege of trade to all countries, 
 from the Cape of Good Hope to the Streights of Magellan, for 
 fifteen years. Their original capital was only L.7 2,000 in shares 
 of L.50 each ; and it was not formed into a joint stock for some 
 years after, and for a long time their exertions were feeble. In 
 the reign of James I. they received a new charter, and their 
 stock was enlarged. The Company was dissolved during the 
 usurpation of Cromwell in 1755, and the trade laid open to the 
 public; but this being attended with inconveniences, it was re- 
 established about three years after, at which lime their nominal 
 stock was L.739,782, whereof only one half, or L.3 69,891 was 
 paid up, and was properly their trading capital. In the subse- 
 quent period, the renewals of their charter were frequent, there 
 being no fewer than six between the Restoration and the Revo- 
 lution, and three between the Revolution and 16 ( J8. These 
 charters conferred sovereign power. The Company had been 
 invested with criminal jurisdiction by the charter of James I. 
 They were now authorized to possess all plantations, forts, and 
 factories, in the .East Indies, and erect new fortifications there, 
 and at St. Helena, and to make war or peace with any prince oi 
 people that ivere not Christians The other charters were chiefly 
 granted for enlarging their powers to suppress interlopers. In 
 1693, a tax ol 5 per cent, was imposed on their stock, which at 
 that time amounted to L.7 1- 1,000, and their charter was for- 
 feited for nonpayment, but was immediately restored These 
 Charters were not limited in point of time, but reserved a power 
 of dissolving the Company upon three years intimation, it itl 
 privileges should be found prejudicial to the public. 
 
 Anew East India Company w as established by King William . 
 
 io i oys, which advanced 1*2,000,000 to Goveituaaat, at 
 
 cent
 
 238 
 
 cent, interest. Their right of trade was to continue till 1 7 J 4, 
 after which they might be dissolved upon three years notice, 
 and repayment of the money due by the public; and a similar 
 clause was inserted in all the subsequent charters. In 1702, the 
 two Companies were united, and, in 1708, the united Company 
 lent a further sum of L. 1,200,000 to Government without inte- 
 rest, which reduced the rate of interest to 5 per cent, upon which 
 their charter was prolonged to 1729. In 1712, it was further 
 prolonged to 1736, and again in 1730 to 1769, on which occa- 
 sion the Company gave L.200,000 to the public revenue, and 
 agreed to the reduction of the rate of interest on their debt to 
 ^ per cent. The next prolongation of their charter took place 
 in 17 13, when they advanced L. 1,000,000 to Government at 3 
 per cent, interest, and obtained an extension to 1783. When a 
 general reduction of the interest on the public debt took place 
 in 174-9, the interest of the whole debt of L.4,200,000 due to 
 the Company was reduced to 3 per cent, and they were em- 
 powered to borrow by the sale of annuities to that extent, and 
 did borrow L.2,992,440 accordingly. The debt due them by 
 the public remained in this state as a separate fund till 1793, 
 when it was joined to the 3 per cent, reduced stock The an- 
 nuitants on the Company agreed to accept of 3 per cent, re- 
 duced stock in exchange for their annuities, and the Company 
 themselves became holders in that stock, to the extent of 
 L 1,207,560, being the residue of the debt of L.4,200,000. 
 This is the only debt now due by the public to the Company. 
 
 The dividends of this Company, arising from the profits oi 
 trade, have been variable, and the value of their stock exposed 
 to greater fluctuation than that of any other of the other public 
 funds. Previous to 1757, although invested in some measure 
 with sovereign power, their possessions in India were limited to 
 forts and factories, with a small contiguous territory : But soon 
 after that time, in consequence of the conquests made by Lord 
 Clive and others, they acquired extensive dominions, which 
 they held at first by dependent Nabobs, whom they raised and 
 
 removed
 
 230 
 
 removed at pleasure, but afterwards assumed into their imme- 
 diate possession. From these dominions they drew an ample 
 revenue, which soon attracted the attention of Government, as 
 an object in which the public had a right to participate. An 
 agreement was made in 1767, that the Company should pay 
 L.400,000 annually for two years, and in 1769 it was extended 
 for five years more, as a consideration for being permitted to 
 retain the revenue of their acquired territory. The Company, 
 however, have been so often engaged in expensive wars with 
 the native powers, that the prospect of deriving a revenue to 
 Britain from their possessions was never realized for any length 
 of time. In 1773, they were not only unable to make the sti- 
 pulated annual payment, but were obliged to apply to Govern- 
 ment for a loan, and received one of L.l, 400,000, their divi- 
 dends being limited to 6 per cent, till it should be repaid. This 
 debt was paid up in 1777, and the restriction on their dividends 
 of course removed. 
 
 In 1781, a new agreement was made with the Company. A 
 payment of L. 400,000 made that year was accepted of, in dis- 
 charge of all former claims ; their exclusive privileges were ex- 
 tended to 1794 1 and, their dividends being at that time 8 per 
 cent, it was stipulated that three- fourths of their surplus profits 
 should be appropriated to the public service, and the other fourth 
 retained by the Company for the enlargement of their divi- 
 dends ; which, however, were not to be increased above one 
 per cent, in any year, and never to exceed 12i per cent. The 
 public never derived any revenue from this agreement ; for, in 
 the following years, the nett profits of the Company did not 
 amount to 3 per cent., and their affairs fell under such embar- 
 rassment, that Government was induced to postpone the pay- 
 ment of customs due by them, and also to issue exchequer bills 
 to the amount of L.300,000, upon which the Bank advanced 
 money, for their relief. 
 
 By an act passed ill \~b\-, the Board ©f Commissioners for the 
 aOVti-of India, generally rilled the Board of Controul, was 
 
 I
 
 240 
 
 established, to whose orders the Directors of the East India Com- 
 pany are subject in all matters of civil and military government, 
 and who have also the power of regulating tbf administration of 
 their territorial revenue ; and " whereas schemes of conquest and 
 '* extension of dominion in India are measures repugnant to the wish, 
 " the honour, and the interest of this nation," the Governor-gene- 
 ral was prohibited from commencing hostilities, or entering into 
 any treaty for making war against any of the princes of the 
 country, unless hostilities have been committed, or preparations 
 made for hostilities against them or their allies. The history of 
 the succeeding thirty years will show how far the conduct of 
 Britain to the native powers of India has been conformable to 
 this excellent principle. 
 
 At the next renewal of their charter, in 1793, the exclusive 
 privileges of the Company underwent some restrictions. Every 
 British subject was permitted to export any good's, except mili- 
 tary stores and copper, to India, but not to China; and the 
 civil servants of the Company, and merchants residing in India 
 under their protection, were permitted to import any goods, ex- 
 cept piece goods of cotton and silk, on board the Company's 
 ships to London ; and for these exports and imports in private 
 trade, the Company was obliged to appropriate 3000 tons of 
 shipping, at L.5 per ton outwards, and L.15 inwards, of freight, 
 in time of peace, with an addition in time of war. Under these 
 limitations, their exclusive privileges were extended to 1st April 
 1814 The full extent abovementioned of tonnage for private 
 trade outwards has never been required. 
 
 The clear profits of the Company were directed to be applied 
 as follows: 1st, in payment of 10 per cent, dividend on their 
 stock, besides one half per cent, more, eventually, from a separate 
 fund; 2d, in payment of L.500,000 annually of bills drawn 
 from India for the liquidation of the debt due by the Company 
 in that country j 3d, in payment of L 500,000 annually to the 
 exchequer for the public service. The surplus after these pay- 
 ments to be applied to the further discharge of the debts in In- 
 dia,
 
 241 
 
 dia, till it should be reduced to two Crores* of rupees; and of 
 the bonded debt in England, till it should be reduced to 
 L. 1 ,500,000 ; after which one-sixth of the surplus profits was 
 to be applied to the augmentation of the dividends, and the re- 
 maining five-sixths to be paid into the Bank of England, to be 
 placed to the account of the Commissioners for the reduction of 
 the national debt, till it should amount to 12 millions, (which 
 sum was to be a guarantee fund for securing the stock and divi- 
 dends of the Company) ; and when that fund was completed, the 
 foresaid five-sixths of surplus profits was to paid into the exche- 
 quer as the property of the public The abovementioned pay- 
 ment of L. 500,000 to the exchequer, has not been made since 
 April 1794. It is unnecessary to add, that the guarantee fund 
 has never been made up ; and, consequently, that the public 
 have never participated of any surplus profits. In 1812, the 
 embarrassed state of the Company's affairs obliged them to ap- 
 ply again to Government for aid ; and, accordingly, a loan of 
 L.2,500,000 was granted to them, joined to the loan of that 
 yearf The sum funded for this was L. 4, 100,000 in the 3 per 
 cents. ; and the Company was bound to pay into the Bank of 
 England, besides the interest and charges of management, 
 L.I I0.S20 as a sinking fund for the discharge of the principal, 
 being about 2\ per cent, on the funded capital. 
 
 The charter being now [1813] on the eve of expiring, the ob- 
 ject, so long contended for, of laying the trade to India open 
 to the public, is at last, in a great measure, obtained Permis- 
 sion is granted to every British subject to trade to India, but not 
 to China, both in export ?nd import, after 10th April, 18 14-, 
 This trade, however, is subjected to various regulations, the most 
 important of which arc : — That no vessel shall proceed on pri- 
 vate trade, to India, without a licence from the Directors, which 
 shall be granted, on application, of course, to the principal set" 
 tlements of Fort-William. fort-George, Bombay, or Prince of 
 , i Wale 
 
 ■ \ CrOK <>f ni|i< • • ,ual to a million Sterling
 
 Ul 
 
 Wales Island ; but no vessel may fit out to other places, unless 
 specially authorized ; and in case the directors refuse to grant 
 such special licence, the Board of Controul shall ultimately de- 
 termine in regard to the same : That no vessel under 1 50 tons 
 shall be employed : That goods imported in private trade shall 
 be brought to some port in the united kingdom which shall have 
 been declared fit for that purpose by order in council : That 
 the importation of articles of silk and cotton manufacture, for 
 home consumption, shall be confined to the port of London, and 
 the goods deposited in the Company's warehouses there : And 
 the importation of tea, in private trade, is prohibited without li- 
 cence from the Company. 
 
 The Company retain, till 10th April, 1834, the government 
 and revenue of their territorial acquisitions, subject to the regu- 
 lation of the Board of Controul, and the exclusive trade to China, 
 and may trade as a corporation to India, in common with hia 
 Majesty's other subjects. 
 
 The same hopes of procuring a revenue to the public, which 
 have so often before proved delusive, are still held forth. The- 
 enactments for the distribution of their territorial and commer- 
 cial revenue are nearly the same as at the renewal of their char- 
 ter in 1793- Their commercial profits are to be employed, 1st, 
 inpayment of bills of exchange ; 2d, in paying debts, (the prin- 
 cipal of the bond debt in England excepted,) and commercial 
 charges; 3d, in payment of a dividend of 10f per cent, on their 
 capital ; 4th, in the reduction of their bond debt. No annual 
 payment to Government, except the interest and sinking fund 
 of the loan of 1 8 1 2, is required. The territorial revenue in India 
 is applicable for the civil and military charges in that country, 
 the payment of the interest, and liquidation of the Indian debt, 
 and of the bond debt at home ; and when the Indian debt is redu- 
 ced to 10 millions, and the bond debt to 3 millions, then the surplus 
 revenue, both territorial and commercial, shall be paid into the 
 exchequer, and applied, in the first place, for raising a guarantee 
 fund of twelve millions ; and when that fund is completed, one- 
 
 si\th
 
 243 
 
 sixth of the surplus shall belong to the Company, and the other 
 five-sixths become the property of the public. 
 
 The progress and present state of the stock of the Compaq- 
 is as follows : — 
 
 
 Capital. 
 
 
 Sbms advanced. 
 
 1708, 
 
 L.3,200,000 
 
 at 87| per cent. 
 
 L 2,800,000 
 
 1786, 
 
 800,000 
 
 at 155 per cent. 
 
 1,24-0,000 
 
 1789, 
 
 1,000,000 
 
 at 174- per cent. 
 
 1,74-0,000 
 
 1793, 
 
 1,000,000 
 
 at 200 per cent. 
 
 2,000,000 
 
 
 L.6,000,000 
 
 L.7,7 80,000 
 
 In 1797, an act was passed authorising the Company to aug- 
 ment their capital by L.2,000,000; but this has not yet been 
 carried into execution. 
 
 The dividends on India stock have been as follows: — 
 
 Lad yd ay, 
 
 1709, 
 
 5 
 
 per cent. 
 
 Michaelmas, 
 
 1709, 
 
 8 
 
 per cent. 
 
 Michaelmas, 
 
 1711, 
 
 9 
 
 per cent. 
 
 Christmas, 
 
 1716, 
 
 10 
 
 per cent. 
 
 Midsummer, 
 
 1722, 
 
 8 
 
 per cent. 
 
 Christmas, 
 
 1732, 
 
 6 
 
 per cent. 
 
 Midsummer, 
 
 1733, 
 
 7 
 
 per cent. 
 
 Christmas, 
 
 1755, 
 
 8 
 
 per cent. 
 
 Christmas, 
 
 1766, 
 
 6 
 
 per cent. 
 
 Midsummer, 
 
 1767, 
 
 10 
 
 per cent. 
 
 Midsummer, 
 
 1769, 
 
 11 
 
 per cent. 
 
 Midsummer, 
 
 1770, 
 
 12 
 
 per cent. 
 
 Midsummer, 
 
 1771, 
 
 184 
 
 per cent. 
 
 Christmas, 
 
 1772, 
 
 6 
 
 per cent. 
 
 Christmas, 
 
 1776, 
 
 7 
 
 per cent. 
 
 Midsummer, 
 
 1778, 
 
 8 
 
 per cent. 
 
 Midsummer, 
 
 1708, 
 
 10* 
 
 per cent. 
 
 And tho\ have 
 
 continued 
 
 at that 
 
 rate since. 
 
 India
 
 244 
 
 India Bonds. The Company owes a large sum on transferable 
 bonds, generally of L.100 each, the rate of interest on which 
 has frequently varied, and is at present 5 per cent, payable 
 twice a year, on the 31st March and 30th September, clear of 
 property tax, which is paid by the Company. Government 
 have several times interfered to restrict the amount of this debt. 
 In 1773, their dividend was limited to 7 per cent, till their bond 
 debt was reduced to L. 1,500,000; and this was effected in 1778. 
 Being afterwards enlarged to L.3, 200,000, they were again re- 
 quired to restrict it to L. 1,500,000, as a condition of the increase 
 of their capital ; but this reduction was not completed, and this 
 debt has been enlarged since, with consent of the Board of Con- 
 trou!, occasioned partly by the transference of part of ttye debt 
 due by the Company in India, to Britain. These bonds are re- 
 ceived by the Company as cash, when there is six months inte- 
 rest due on them, and are a very marketable security, generally 
 bearing a premium, being very convenient to be kept by mer- 
 chants or public companies to answer exigencies. When trans- 
 ferred, the interest to the day of sale, together with the pre- 
 mium, is added to the sum of the bond, and paid by the pur- 
 chaser. 
 
 § 3, MANNER OF TRANSACTING LOANS. 
 
 In the early part of the funding system, the subscription for 
 loans was taken at the Exchequer; but, since 1714, they have 
 been transacted at the Bank of England ; and this was formerly 
 done by open subscription. Terms were proposed to the public, 
 and as these were calculated to afford a profit, the subscription 
 
 was
 
 245 
 
 was generally filled up in a short time. If the terms were not 
 judged sufficient, and consequently the subscription not filled up, 
 others more advantageous were offered afterwards. 
 
 For a considerable number of years, a mode of transacting 
 loans still more favourable to the public has been adopted. The 
 Chancellor of the Exchequer fixes upon the funds in which the 
 loan is to be made. These are often of different kinds, and not 
 unfrequently a long annuity forms part of the emolument. He 
 then gives public intimation that he is ready, on a certain day, 
 to receive offers, and assign the loan to those who are willing 
 10 accept of the lowest terms. If a long annuity be a part of 
 the proposed emolument, the other funds to be assigned to the 
 lenders are fixed at a rate somewhat lower than the estimated 
 value for each L.100 borrowed, and the bidding is on the long 
 annuity, the loan being granted to those who will accept of the 
 least annuity in addition to the capital offered. If the loan be 
 in different funds, but without an annuity, the capitals in all 
 the funds except one are previously fixed ; and the bidding is 
 on that fund, the loan being granted to those who will accept 
 of the least capital. The Chancellor of the Exchequer is gene- 
 rally attended, at the time appointed, by several of the princi- 
 pal bankers in London, who deliver their offers, having pre- 
 viously made up a list of persons who are willing to share with 
 them to a certain extent, in case their offer be accepted ; and 
 the loan is assigned to the offerer who proposes the lowest terms. 
 This method, since its adoption, has been conducted with the 
 utmost impartiality, and, being a fair and open competition for 
 the public benefit, has been uniformly ratified by Parliament. 
 The only deviation from it, since its first adoption till the pre- 
 sent year, was in the loan of 1700, called the Loyalty Loan, 
 when the method of open subscription at the Hank was hail re- 
 course to. In the loan of November 1813, a preference was 
 jiven to the contractors of the. former loan. 
 
 The loans are always payable by U rent pe-
 
 $40 
 
 riods of the year. But the dividends are payable on the whole 
 from the first usual term of the funds in which the loan is made, 
 Thus the lender receives dividends during the whole of the first 
 year, although he only advances the raonsy on the days ap- 
 pointed for payment of the instalments ; or if he advances the 
 whole at first, he is allowed a suitable discount, and he derives 
 part of his profit from these allowances ; and, according to the 
 terms of the loan, he is generally possest of several interests ; ao 
 much perhaps in a 3 per cent, fund, so much in a 5 per cent, 
 fund, so much in a long annuity, and formerly so much in lot- 
 tery tickets. After the loan is compleated, these interests are 
 assignable separately ; but when the loan is in progress, they 
 may be either assigned separately or together. The separate 
 parts in this stage of the business are called strip, and their 
 united amount is called omnhm. In order to obtain a loan, it 
 is necessary that the value of omnium at the time should be above 
 par. This difference, which often amounts to 5 pei cent, or up- 
 wards, is called the bonus to the lenders, Instances, however, 
 have occurred, in which the price of omnium fell below par, be- 
 fore the loan was compleated. Lenders who do not pay their 
 instalments at the appointed terms forfeit their subscriptions. 
 The Bank of England not unfrequently lends its aid in advan- 
 cing some of the instalments. 
 
 The terms of the loan of 27 millions, contracted in June 1813, 
 were, 
 L.1 10 in 3 per cent, reduced scrip, valued at 57-}, 
 
 60 in 3 per cent. cons, scrip, valued at 56J, 
 Long annuity scrip, of 8s. 6d. for 46| years, at 14- 
 
 years purchase, - 
 
 Value of omnium, - - - - -L.1 03 46 
 
 Bonus to subscribers, besides discount for prompt 
 payment, ------ 3^6 
 
 And the loan was payable by the following instalments. 
 
 Deposit 
 
 L.63 
 
 10 
 
 6 
 
 33 
 
 15 
 
 
 
 5 
 
 19 
 

 
 247 
 
 Deposit at subscription, - 
 
 
 L.10 
 
 July 23d, - 
 
 - 
 
 - 
 
 10 
 
 August 20th, 
 
 - 
 
 - 
 
 15 
 
 September 17 th, 
 
 - 
 
 - 
 
 10 
 
 October 22d, 
 
 - 
 
 - 
 
 15 
 
 November 19th, 
 
 , 
 
 - 
 
 10 
 
 December 17 th, 
 
 - 
 
 - 
 
 10 
 
 January 21st, 
 
 - 
 
 - 
 
 10 
 
 February 18th, 
 
 - 
 
 - 
 
 10 
 
 1814. 
 
 L.100 
 Upon payment of the first instalment, a separate sheet is de- 
 livered to the original holder for the sums paid on each compo- 
 nent part of the loan, containing, on one side, a receipt for the 
 3um paid, and on the other, a form of assignment. When a 
 sale takes place, the original holder puts his name to the assign- 
 ment, without filling it up, and delivers it thus blank indorsed 
 to the purchaser ; and, in this manner, scrip and omnium pass 
 from hand to hand like bank notes. These receipts are so made 
 out, before delivery from the Bank, as to show how much mr>- 
 ney must be paid upon the several scrips, at each instalment. 
 Thus, in the abovementioned loan there was paid for 
 L.1000 subscribed at the first instalment, 
 L.60 on the 3 per cent, reduced. 
 3+ on the 3 per cent. cons. 
 6 on the long annuities. 
 
 L.100 being 10 per cent, on the loan ; and like sums were pay 
 able at the instalments in July, September, November, and De- 
 cember, 1813; and in January and February 1814; and our - 
 half more, or 15 percent, on the instalments in August and 
 October 1813. The holders of scrip mun attend to the pay: 
 of these instalments at the Bank on the appointed days, under 
 pain of forfeiture ; and when the last instalment is paid 
 term, or the whole paid up at an earlier time, with allowance
 
 243 
 
 of discount, the scrip is converted into stock, and consolidated 
 with the mass of the stock of the same name previously existing, 
 from which it cannot afterwards be distinguished. 
 
 The value of scrip, after any given number of payments have 
 been made thereon, is computed by deducting the amount of 
 the remaining payments from the value of the stock, at the mar- 
 ket price. 
 
 § 4. MANNER OF TRANSFERRING STOCK. 
 
 Agreements for the sale of stock are generally made at the 
 Stock Exchange, which is frequented by a set of middlemen 
 called Jobbers, whose business is to accommodate buyers and 
 sellers with the exact sums they want.* A Jobber must be pos- 
 sest of considerable property in the funds; and he declares a 
 price, suppose 59i or 59 » in the three per cent cons. ; that is, 
 he is willing to buy any sum from any person at 50i, or sell 
 him at 59$. By this means, one who wishes to sell, suppose 
 L.375. 10s. and could hardly find a purchaser for that precise 
 sum without the assistance of a Jobber, obtains his purpose, and 
 the smallest sums are purchased and sold with the utmost facility. 
 The Jobber's profit is generally I per cent, for which he trans- 
 acts both a sale and a purchase ; and these persons often engage 
 in no other stock speculation, but go away when the business 
 t f the day is over, possest of the exact sum of stock they had in 
 the morning. 
 
 The bargain, being agreed on, is carried into execution at 
 
 the 
 
 * This is the proper acceptation of the term Jobber, in the language of 
 the Stock Exchange. In common conversation, we generally understand * >r 
 it, a speculator in the stocks.
 
 m 
 
 the transfer office, at the Bank, or the South Sea house. For 
 this purpose the seller makes out a note in writing, which con- 
 tains the name and designation of the seller and purchaser, and 
 the sum and description of the stock to be transferred- He 
 delivers this to the proper clerk,* and then fills up a receipt, a 
 printed form of which, with blanks, is obtained at the office. 
 The clerk, in the meantime, examines the seller's account, and 
 if he find him possest of the stock proposed to be sold, he makes 
 out the transfer This is signed in the book by the seller, who 
 delivers the receipt to the clerk; and upon the purchaser's sign- 
 ing his acceptance in the book, the clerk signs the receipt as 
 witness. It is then delivered to the purchaser upon payment of 
 the money, and thus the business is compleated. 
 
 This business is generally transacted by brokers, who derive 
 their authority from their employers by powers of attorney. 
 Forms of these are obtained at the respective offices. Some au- 
 thorize the broker to sell, others to accept a purchase, and others 
 to receive the dividends. Some comprehend all these objects, 
 and the two last are generally united. Powers of attorney, au- 
 thorizing to sell, must be deposited in the proper office for exa- 
 mination one day before selling. A stockholder acting person- 
 ally, after granting a letter of attorney, revokes it by impli- 
 cation.f 
 
 The person in whose name the stock is invested when the 
 books are shut, previous to the payment of the dividends, re- 
 ceives the dividend for the half year preceding; and, therefore, 
 k k a 
 
 ■ The letters of the alphabet are placed round tlio room, and the seller 
 must apply to the clerk who has his station under the initial letter of his 
 uarne. In the 3 per cent. cons, office, there are also supervising clerks, wh» 
 join in witnessing the transfer. 
 
 f The rate of brokerage is 12s. Sd. per L.IOO for buying or selling. A 
 letter of attorney costs L.l. Is. 6d. The registration of a will, 2s. 6d. The 
 transfer of Bank stock under I. .'_'", costs fis., above it, It's ; of South Sea 
 stock under L. 100, 10s., above it, 12s.; of India stock, I..1. 1 .. O&nn 
 
 nienf «tod is trin^frrrfd * iiliout any charge.
 
 2oi) 
 
 a purchaser, during the currency of the half year, has the benefit 
 of the interest on the stock he buys, from the last term of pay- 
 ment to the day of transfer. The price of stock, therefore, rises 
 gradually, ceteris paribus, from term to term ; and when the 
 dividend is paid, it undergoes a fall equal thereto. Thus the 3 
 per cent. cons, should be higher than the 3 per cent, reduced, 
 by i per cent, from 5th April to 5lh July, and from 10th Octo- 
 ber to 5lh January ; and should be as much lower from 5th 
 January to 5th March, and from 5th July to 10th October; and 
 this is nearly the case. Accidental circumstances may occasion 
 a slight deviation. 
 
 The dividends on the different stocks being payable at differ- 
 ent terms, it is in the power of the stockholders to invest theii 
 property in such a manner as to draw their income quarterly. 
 
 The business of speculating in the stock is founded on th< 
 variation of the price of stock, which it probably tends, in somi 
 measure, to support. It consists in buying or selling stock, ac 
 cording to the views entertained by those who engage in thi 
 business of the probability of the value rising or falling. 
 
 This business is partly conducted by persons who have pro 
 perty in the funds. But a practice also prevails among thos 
 who have no such property, of contracting for the sale of stock 
 on a future day, at a price now agreed on. For example, A. ma; 
 agree to sell B. L. 10,000 of three per cent, stock, to be transfer 
 red in twenty days, for L.6,000. A. has in fact no such stock 
 but, if the price on the day appointed for the transfer, be onl; 
 58, he may purchase as much as will enable him to fulfil hi 
 bargain for L.5,800, and thus gain L.200 by the transaction 
 On the other hand, if the price of that stock should rise to 6i 
 he will lose L.200. The business is generally settled withot 
 any actual purchase of stock, or transfer, by A. paying to B. < 
 receiving from him, the difference between the price of stock o 
 the day of settlement, and the price agreed on 
 
 This practice, which amounts to nothing else than a wage 
 concerning the, price of stock, is not sanctioned by law; yet
 
 231 
 
 is carried on to a great extent : and as neither party can be 
 compelled by law to implement these bargains, tlfeir sense of 
 honour, and the disgrace attending a breach of contract, are the 
 principles by which the business is supported. In the language 
 of the Stock Exchange, the buyer is called a Bull, and the sel- 
 ler a Bear, and the person who refuses to pay his loss is called 
 a Lame Duvk ; and the names of these defaulters is exhibited in 
 the hall of the Stoi k Exchange, where they dare not appear 
 afterwards. 
 
 The most usual times for which bargains of this sort are made, 
 are the first transfer days in February, May, August, and No- 
 vember. These are called rescontre, or settling days. Sometimes, 
 instead of paying the difference on the rctcoaln day, the settle- 
 ment is deferred to a future day on such terms as the parties 
 agree on. This is called a continuation. 
 
 All the business, however, which is done in the stocks for 
 time, is not of a gambling nature. In a place of so extensive 
 commerce as London, opulent merchants who possess property 
 in the funds, and are unwilling to part with it, have frequently 
 occasion to raise money for a short time. Their resource, in 
 this case, is to sell fur money, and to buy for a future time ; and 
 although the money raised in this manner costs more than the 
 legal interest, it atFords an important accommodation. 
 
 The following statement has been given of the highest and 
 lowest prices of the stocks, since 1720. 
 
 
 HIGHEST 1'RICI 
 
 s. 
 
 
 1 per cents. 
 
 June 
 
 1739, 
 
 L.I07 
 
 V per cents. 
 
 August 
 
 1791, 
 
 107* 
 
 'j per cents. 
 
 Ditto 
 
 — 
 
 1221 
 
 Bank stock, 
 
 February 
 
 17'.»2, 
 
 219 
 
 South Sea stock 
 
 May 
 
 I7M, 
 
 111 
 
 India stock, 
 
 December I708j 
 
 
 
 Kk'J 
 
 
 J— A -
 
 252 
 
 LOWEST PRICES. 
 
 
 3 per cent. cons. 
 
 January 1798, 
 
 LA'i 
 
 3 per cent, reduced 
 
 June 1797, 
 
 M 
 
 4- per cents 
 
 January 1798, 
 
 59l 
 
 5 per cent, navy, 
 
 January 1798, 
 
 69! 
 
 Bank stock, 
 
 January 1782, 
 
 91 
 
 South Sea stock, 
 
 February 17 82, 
 
 62 
 
 India stock, 
 
 January 1781, 
 
 118*
 
 APPENDIX II. 
 
 TABLE I. 
 
 Amount of the different Funds on the 1st January 1793, and 1st 
 February 18 i 3, with the sums redeemed, and balances unredeemed ; 
 including the debts for Ireland, Germany, and Portugal, guaranteed 
 by Britain. 
 
 3 per cent. South Sea stock, . . 
 3 per cent, old South Sea annuities, 
 3 per cent, new South Sea annuities, 
 
 3 per cent, annuities, 1751, . . 
 
 Amount transferable at the South 
 
 Sea house, 
 
 Bank of England, 
 
 3 per cent, annuities, 1726, . . 
 
 7 Britisb.i . . 
 3 per cent. cons. \ ... T 
 
 -\ British,§ 
 3 per cent, reduced, v Irish, . . 
 
 3 Portuguese, 
 3 per cent Imperial loans, . . . 
 
 Amount 3 per cents 
 
 Redeemed before 1793, . . . 
 
 4 per cent. cons. 
 
 British, 
 _ Irish, . 
 
 7 British, 
 
 5 per cent, navy, J ^ 
 
 6 per cent, loyalty loan, 
 
 Debt, Jan 
 
 3766z,78/i 
 l,907.47C 
 8,494.83 
 
 24,065,084 
 1,919,600 
 
 25,984,684 
 
 11,686,80c 
 
 1,000,000 
 
 107.399.69° 
 
 41.540,073 
 
 Debt, 1st 1'Vbruary. 1 8 1 .". 
 
 Contracted. 
 
 3,662,784 
 
 11,907,470 
 
 8,494,8 10 
 
 24,065,084 
 1,919,600 
 
 187,611,255 
 IO,242.ICO 
 
 I77.369.i55 
 32,750,000 
 
 17.869,993 
 
 25,984,684 
 
 11,686,800 
 
 I.OOO.OOC 
 
 404,730,558 
 
 33.^35.125 
 
 205,928,52 
 
 30,068,750 
 
 895.522 
 
 7.502,633 
 
 721,032,5 93 
 
 -•d.-f- Unredeemed 
 3,67)2,784 
 
 I 9,859,000 
 
 1 
 J 
 
 227,989,148 
 
 68,857,321 
 5.054.375 
 
 92,202,254 
 
 572,000 
 
 1,622,994 
 
 .341.53: 
 
 12,462,90c 
 
 ir.'.SMoo 
 
 1, 00 c, 00c 
 
 312,894,704 
 
 28,086,904 
 
 78,760,033 
 
 24,563.472 
 
 718,848 
 
 6,140,659 
 
 9f.835.854 
 
 5,148,221 
 127,168,488 
 
 5.505.278 
 176,674 
 
 1.361,9 
 241,055,489479.9/7.104 
 
 7,796,400 
 142,00c 
 
 248,993,899 
 
 61,060,921 
 
 5-054,375 
 
 92,060,254 
 
 572,00c 
 
 1, 622,994 
 
 640,347,648 
 
 • In the following tables, and also in the foregoing statements, the figure 
 marked in the unit place of the sum of a column is often dill'erent from what it 
 will be found on trial, owing to the omission of the shilling and peine. 
 
 I The capitals transferred for the purchase of land tax, and those converted 
 into life annuities as well as those purchased by the Commissioners, are included 
 in the statement of the redeemed debt lure given. 
 
 \ L. 1,400,000 funded in the 3 per cent. cons, lor a loan to the East India Com- 
 pany, in \x\-, is not included. 
 
 § L.3,000,000 funded in the 3 per cent, reduced, for the East India Company. 
 as above, is not included.
 
 254 
 
 TABLE II. 
 Progress of the Funded Debt of Britain from 1793 to 1S13, 
 
 Preceding 1793, . . . . 
 
 1793 Loan 
 
 1794 Loan 
 
 Navy Bills . . . 
 
 1795 Loan 
 
 Navy Bills . . . 
 Loan 
 
 1796 Loan 
 
 Navy Bills . . . 
 Navy and Exch. Bills 
 Loyalty Loan . . 
 
 1797 Loan 
 
 1798 Loan 
 
 Loan 
 
 1799 Loan 
 
 1800 Loan 
 
 1801 Loan 
 
 1802 Exchequer Bills . . 
 Loan 
 
 1803 Loan 
 
 1804 Loan 
 
 1805 Loan 
 
 Operations Loyalty Loan,* 
 
 180G Loan 
 
 1807 Loan 
 
 1808 Loan 
 
 Exchequer Bills . . 
 
 Interest deferred 1802, 
 
 1809 Loan 
 
 Exchequer Bills . . 
 
 1810 Exchequer Bills . . 
 Loan 
 
 1811 Exchequer Bills . . 
 
 Loan 
 
 Loan 
 
 1812 Exchequer Bills . . 
 
 Loan 
 
 Loan 
 
 Reduction management,! 
 Expired annuities,^ . . 
 
 Converted into life annuities, 
 
 Debts contracted since 1793, 
 By loans, .... 
 By funding bills, . . 
 
 Contracted before 1793, . 
 
 Sums 
 
 raised. 
 
 unknown. 
 
 4,500,OCC 
 
 I i,ooo,ooc 
 1,907,451 
 
 l8,OOG,OOC 
 
 ' 1,490,64 
 
 18,000,00 
 7,300,000 
 4,216,737 
 13 0:9,399 
 18,000,000 
 13,0c 0,000 
 jj, 000,00c 
 3,000,000 
 12,500,00c 
 i8,50o,ool 
 
 2',5GO,OCO 
 
 8,910,450 
 
 23,000,00- 
 
 217,064,67/1 
 
 10,000,000 
 
 10,000,000 
 
 20,000,000 34,400,000 
 
 257,064,674 S$',io5$44 
 — 1,763,394+7-4-6,233 
 
 1 8,000,000 
 
 12,200,000 
 
 8,000,000 
 
 4,coo,ooo 
 
 II,O0C,O0O 
 
 7,932,10c 
 
 8,311,000 
 
 8,000,000 
 7,018,700 
 4,981,300 
 
 12,000,000 
 
 5,431.700 
 6,789,625 
 
 15,650,000 
 
 84.616,705 
 
 122,358,532 
 '.2,258,173 
 584,616,705 
 
 CAPITAL FUNDED. 
 
 o per cent 
 
 187,-11,255 
 
 6,250,00c 
 
 1 1, c 00,00c 
 
 1 8,000,06^ 
 
 26,095,800 
 10,793,825 
 
 18,^37,874 
 
 21,750,00c 
 30,000,00c 
 
 5,624,23 c 
 2l,87f,ooo 
 29,045,00c 
 44,816,250 
 
 4,4J.5,225 
 30,351,375 
 467,105,85 
 1 6,000 00c 
 
 l8,20C,00C 
 
 255,302,2801543,132,087 
 
 29,880,000 
 1 7,080,000 
 
 6,064,478 
 
 130,000 
 
 14,400,00c 
 
 27,544,00c 
 
 ^49,330.565 
 
 1,961,581 
 
 647.168^ 9^3 
 
 438,826,211 
 22,893,099 
 461,719,31c 
 1 8 7,611,25/ 
 
 649, -30,56. 
 
 4_pei- cent. 5 per cent, 
 32,750,000 17,869,993 
 
 2,750,000: 
 6,000,000 
 
 4,455.325 
 49,425,085 
 
 49,425,085 
 49,425^085 
 
 9,454,000 
 437,900 
 
 6,960,000 
 380,336 
 
 68,857,311 
 
 '8,857,321 
 
 1,926,526 
 
 1,609,898 
 
 4,4-M,074 
 2,30, 092 
 
 20,124, 
 
 2,227,61 
 
 5078,039 
 
 5 0,478,039 
 —4,045,502 
 
 46,432,537 
 1,193,100 
 
 4,001,354 
 
 7,873,308 
 8,581,108 
 
 7»*78,392 
 5,166,319 
 
 5,866,239 
 7,332,795 
 
 93,835,149 
 
 93,825,249 
 
 50,164,000 29,871,655 
 5,94;, 321 1 46,083,600 
 56,107,3211 75,955,255 
 ,2,75Q,ooo| 17,869,993 
 
 1.8,857,321! 93.82.5-249
 
 255 
 
 
 With the 
 
 Annual Ch 
 
 arge on the same. 
 
 
 Tbtal. 
 
 238,131,248 
 
 ANNUAL M LOAN. 
 
 Whole an- 
 nual charge- 
 
 Interest. 
 
 Annuities. 
 
 Management. 
 
 Total. 
 
 7,831,837 
 
 I,»93,870 
 
 116,127 
 
 9,241,834 9,241,^34 
 
 A 6,250,000 
 
 187,50c 
 
 
 2,812 
 
 190,312 
 
 9,432.'46 
 
 B 13,750,000 
 
 440,000 
 
 62,792 
 
 6,894 
 
 509,686 
 
 9.941.832 
 
 C 1,926,516 
 
 96,326 
 
 
 867 
 
 97,19.; 
 
 10,039,015 
 
 D 24,000,000 
 
 780,00c 
 
 85,500 
 
 11,762 
 
 877,262 
 
 0,916,918 
 
 E 1,609,898 
 
 80,495 
 
 
 724 
 
 81,219 
 
 10,997,506 
 
 F 26,095,800 
 
 782,874 
 
 58,500 
 
 12,401 
 
 853,775 
 
 11,851,181 
 
 G 10,793,825 
 
 3*3,815 
 
 20,582 
 
 5,o8? 
 
 349,486 
 
 11,100,767 
 
 11 4.4l4i°74 
 
 220,703 
 
 . . . . 
 
 1,986 
 
 222,689 
 
 12,423,456 
 
 I 21,612,826 
 
 703,185 
 
 
 9,7^6 
 
 712,911 
 
 13,136,397 
 
 K 20,124,843 
 
 1,006,243 
 
 
 9,056 
 
 1,015,299 
 
 14,051,666 
 
 L 25,350,00c 
 
 786,500 
 
 39,000 
 
 II.864 
 
 837,364 
 
 14,989,030 
 
 M 30,000,000 
 
 900,000 
 
 36,875 
 
 13,915 
 
 950.79° 
 
 15,939,820 
 
 N 1 5,624,2^0 
 
 168,727 
 
 
 M30 
 
 171,257 
 
 16,111,077 
 
 O 21,875,000 
 
 656,250 
 
 
 9-843 
 
 666,093 
 
 16,777,170 
 
 P 29,045,000 
 Q 44.816,250 
 
 871,35c 
 
 
 13,070 
 
 884,420 
 
 17,661,590 
 
 1,344,488 
 
 
 20,167 
 
 1,364,655 
 
 19,026,245 
 
 R 11,138,063 
 
 423,247 
 
 7,796 
 
 5.099 
 
 436,142 
 
 19.462,387 
 
 s 10,351.375 
 
 862,50c 
 
 
 12.93 7 
 
 875.437 
 
 iO.337.825 
 
 567,008,978 
 
 18,466,04c 
 
 1,604,915 
 
 266,870 
 
 40,33 7,825 
 
 
 T 16,000,000 
 
 480,00c 
 
 32,083 
 
 5,713 
 
 517,796 
 
 20,855,621 
 
 U 18,200,000 
 
 546,000 
 
 
 6,188 
 
 552,188 
 
 21,407,809 
 
 V 34,400,000 
 
 1,032,000 
 
 
 ir,696 
 
 1,043,696 
 
 22,451,505 
 
 6377608^78 
 
 20,524,04c 
 
 1,636,978 
 
 290,467 
 
 22,451,505 
 
 
 +3,380,731 
 
 + »°»5»3 
 
 . . . . 
 
 +1,682 
 
 + 22,195 
 
 22,473,700 
 
 638,989,709 
 
 20,544,^5; 
 
 1,636,998 
 
 292,149 
 
 22,473,700 
 
 X 29,880,000 
 
 896,40c 
 
 
 10.159 
 
 9 o6 >559 
 
 23.380,259 
 
 Y 18,373,200 
 
 5 7 7,o6c 
 
 
 6,247 
 
 583,307 
 
 13.96.3,566 
 
 A 9,454,000 
 
 378,16c 
 
 
 3,214 
 
 38i,374 
 
 24,344,940 
 
 B 4,239.25 -4 
 
 209,584 
 
 
 l,44i 
 
 211,025 
 
 24,511,965 
 
 
 48,041 
 
 
 
 48,041 
 
 24,604,006 
 
 C 1 1,024,478 
 
 460,334 
 
 5h*33 
 
 4,864 
 
 516,431 
 
 25,120,437 
 
 D 8,253,644 
 E 8,581,108 
 
 408,879 
 
 
 2,806 
 2,917 
 
 411,685 
 43L972 
 
 25,532,"2 
 25,964,094 
 
 429,0^5 
 
 
 'F 11,230,00c 
 
 316,90c 
 
 
 3,818 
 
 340,7iS 
 
 26,304,711 
 
 H 7.278,39* 
 
 363,9 I 9 
 
 
 1,385 
 
 366,304 
 
 26,671,116 
 
 / 5,166,319 
 A' 1 6, 8oo,occ 
 
 2j8,^ 
 
 528,00c 
 
 t 
 
 1,550 
 5,39* 
 
 259,86' 
 
 26,931,981 
 
 41,500 
 
 574,892 
 
 17,506,874 
 
 L 5.866,23c 
 
 293,312 
 
 
 1,760 
 
 294,072 
 
 27,800,946 
 
 M 7,.13*,79J 
 
 ' 66,63 ! 
 
 . . 
 
 2.2C0 
 
 368,839 
 
 18,169,775 
 
 N 17,544,03c 
 
 826,32c 
 
 . 
 
 8,263 
 
 835,583 
 
 19,004,368 
 
 812,013,13. 
 
 26,925,475 
 
 1,749,731 
 
 349.I67 - 
 
 29,004,36$ 
 
 
 
 
 — 134.344 
 
 — 131.344 
 
 — 523.55 7 
 
 28,870,014 
 28,346,467 
 
 
 
 1,206,174 
 
 
 
 214,821 
 
 28,346,467 
 
 — 1,961,58 
 
 — 58,84' 
 
 + 135.673 
 
 - 667^ 
 
 114,154 
 
 +_76.r59 
 28,412,61' 
 
 28,4:2.6:6 
 
 4 10,- <;i,s<; 
 t98.86l.86 
 
 26,8.V,,62. 
 ! I5,864,93< 
 
 3 3,228,70 
 
 1,341,847 
 
 428,06c 7 
 7»7f*i 
 
 125,296 
 
 19. 6 54.79 2 
 
 571.7Ti788" 
 
 7 <9i°93»6l 
 
 435,861 
 
 ~~ 715,296 
 
 19,654,79 
 
 138,1 ; i.i 1 
 
 * 7,831.8; 
 
 ' 770,3 3_ 
 
 89.525 
 214,811 
 
 ia8,34~£«6 
 
 
 • 1 . 1 . 1 | 
 
 i 16,915,47 
 
 1 1.206,174
 
 256 
 
 TABLE III. 
 Progress and Redemption of the Funded Debt of Great Britain, 
 
 Preccd. 
 
 I79 1 
 I79t-l 
 
 '793 
 '794 
 t795 
 t75»6 
 1797 
 £79^ 
 1799 
 t8oo 
 1801 
 180a 
 
 1803 
 r8o4 
 1805 
 
 1806 
 1807 
 1808 
 1809 
 1810 
 1811 
 181a 
 
 A, 
 
 B, C, 
 
 D, E, 
 
 F, G, H, 
 
 I, K, L, 
 
 M, 
 N, O, 
 
 P, 
 
 Q, 
 R, S, 
 
 T, 
 U, 
 V, 
 
 Onerat. 635,608,97* 
 
 3,38 0,731 
 
 638,989,709 
 
 29,880,00 • 
 
 1 8, 1, 7 3,200 
 
 13.^93.254 
 
 21,278,12?. 
 
 19,811,108 
 
 29,244.711 
 
 40,743.031 
 
 8 1 2,0 1 3, 1 3 ji 
 
 Transferred for life annuities, ' 
 
 for land tax. . . 
 
 L. Loan, 
 
 X, 
 
 Y. 
 
 A, B, 
 
 CD, 
 
 E,F, 
 
 H, I K, 
 
 L, M, N 
 
 funded each 
 
 y^ 
 
 138,231,248 
 
 6,250,000 
 15,676,526 
 25,609,898 
 
 4I,3 C, 3»699 
 67,087,66.; 
 30,000,00c 
 a7.499»a5o 
 29,045,000 
 44,816,250 
 41,489,438 
 567,008,978 
 16,000,000 
 18,200,00c 
 34,400,000 
 
 Capital 
 redeemed 
 each year. 
 
 '6,773,350 
 
 3,469,750 
 2,174,405 
 2,804,945 
 3.083,455 
 4,390,670 
 6,695,585 
 7,779.807 
 7.151,984 
 7,247,? 6c 
 8,018,393 
 7,667,01: 
 
 67,255,91/ 
 10,442,552 
 •11,305,292 
 
 12,14 2,043 
 101,145,802 
 
 101,145,802 
 12,714,715 
 14,076,585 
 13,871,014 
 14,234,82c 
 15,513,087 
 17,983,457 
 20,922,876 
 
 210,461,356 
 1,961,582 
 24,37 8,804 
 36,8or,74a 
 
 Balance 
 each year. 
 
 Z3J.458, 
 127,989 
 4.Q75' 
 12,871. 
 22,526. 
 36,913: 
 60,392 
 22,220. 
 ao,347 ; 
 ai,797' 
 36,797: 
 332822 
 
 499-753. 
 
 5,557, 
 
 6,894, 
 
 22,257, 
 
 534,463. 
 3,38o 
 
 J37.843. 
 
 17.165, 
 
 4,296, 
 
 — 177 
 
 7.043: 
 
 4,299 
 
 ir,26r, 
 
 19,820. 
 
 601,551 
 
 Total 
 funded. 
 
 Total 
 redeemed. 
 
 Debt 
 unredeemed 
 
 231,248 
 231,248 
 481,248 
 
 157,774 
 782,672 
 07L37i 
 159,040! 
 159,040' 
 658,290 
 '03,290 
 519,540 
 008,978 
 
 008,978 
 208,978 
 608,978 
 
 638,989,709 
 
 869,709 
 242,909 
 
 214,285 
 025,393 
 
 270,104 
 
 013,135 
 
 6,773,350 
 
 10,242. 
 
 12,416,505 
 
 15,221,450 
 
 18,304,905 
 
 32,695,575 
 
 39,391 
 
 37,170,976 
 
 44,333,95 
 
 51,571,111 
 
 59,588,904 
 
 67,355 
 
 60364 
 
 915499 
 
 77,698,915 
 89,003,-59 
 101,145,802 
 
 101,145,802 
 
 113,860,51 
 
 127,937,102 
 141,808,116 
 156,042,936 
 
 171,555,033 
 189,52.8,480 
 
 210,461,356 
 
 236,801,742 
 
 231,458,898 
 
 227,989,148 
 
 232,064,743 
 244,936,333 
 367,457,767 
 304,375,796 
 797,880 
 386,889,073 
 
 407,355,339 
 429,132,799 
 
 465,920,636 
 
 ' 753,063 
 
 505, 3 ro,5ii 
 512,205,219 
 534,463,176 
 
 537,843,907 
 
 555,009,192 
 559,305.807 
 559,128,047 
 566,171,349 
 570,470,370 
 581,731,624 
 601,551,779 
 
 212,422,938599,590,197 
 
 575.311,393
 
 257 
 
 And Balances unredeemed. 
 
 Capital 
 landed oacl 
 
 year. 
 £7,c6i 
 
 A, 
 
 1», C, 
 
 D. E, 
 
 F, G, II 
 
 I, K, L, 
 
 M. 
 N, O, 
 
 P, 
 
 Q, 
 It. S, 
 
 T. 
 I , 
 V, 
 
 X, 
 
 Y. 
 A, a. 
 
 .'. I). 
 
 /:. f, 
 
 //. /, /'. 
 
 /., V, X. 
 
 llKDUCl'D TO THREE l'l.U CENTS. 
 
 »43 
 
 6,150,000 
 
 r7,87M43 
 
 28,68;. 165 
 
 44.146,415 
 8:,.I97.5 79 
 30,000,000 
 17-499-15^ 
 19.045.000 
 44,816,250 
 44.459- 587 
 It 7,136,03 
 16,000,000 
 18,200,00-: 
 34. P '. 00 
 
 585,5 }D»03< 
 
 683.73c 
 686,419776 
 
 I9.591.4j 
 
 »8,973.77 
 »5.53I.84« 
 38,341.18 
 49,542,385 
 
 &97.J » > 
 
 Capital 
 redeemed 
 
 each year. 
 ~6T7~7J^35C 
 
 3.469,75C 
 2.1-.;, 405 
 2,804,945 
 3.252.455 
 4.39°- 6 7 
 6.695.585 
 7.779.8o 
 7.151.984 
 7. 2 4 7.5 6 
 8,246,726 
 , C« 4 »>T44 
 68,128,58 
 10,44 ,;,-j 
 ".399,958 
 12.14 2,043 
 
 102,112,934 
 
 Balance 
 •ai-li year. 
 
 102,112,95 
 
 12.71.1,71 
 
 1 4,430,447 
 I5,Oia,82 
 
 15,900,987 
 17.983,457 
 20,922,876 
 
 Total 
 funded. 
 
 261,061,245 
 261,061,243 
 267,51 r, 243 
 
 254,288,895 
 250,819,145 
 
 4.075.59 
 
 15,072.598 185,1 88,;8( 
 113,871,949 
 358,718,364 
 
 441,315.945 
 
 471,515,94 
 
 498,815,193 
 
 ,-;.• 2, 6 -'',.44 
 617,156,050 
 
 »5'43C.7<>8 
 
 39.855,745 
 •6,501.99 
 22,220,195 
 20,547,266 
 
 21. -97. 44 
 36,569,524 
 36.3i7. 44 
 1:49,007.649 
 5.557.448 
 6,800,042 
 22,2 57,95 
 585,62 t,,0()f, 
 
 6 
 6,8a< 
 f,t8« 716,199,76c 
 
 633,136,03c 
 
 651.336,03c 
 
 85,736.03c 
 
 86.4r9.76' 
 
 5,161,009 
 
 13,960,95-; 
 9,650,85,; 
 
 28,619,509 
 684,360,91 
 
 755,116,549 
 784.s00.312 
 809,632,16 
 
 897.5«5.73 
 
 Total 
 
 redeemed. 
 
 "67:7^37 
 10,242,10c 
 12,416,3 .<■ 
 r5.22r.45c 
 18,473,001 
 22,864,57*! 
 29,560, t6c 
 
 37.339»967 
 44.49».95*1 
 
 5i.73';,5 1 1 
 59,986,25- 
 68,128,38: 
 
 78.570,93.- 
 89,970,891 
 102,112,9 
 
 102,111,93/5 
 
 n 4,827,64 
 
 143.334.68] 
 158,347,5 c 
 [74,148,48! 
 192,131,94 
 
 215,154,821 
 
 115,1 [6,4 
 i39.495.*c; 
 
 Debt 
 unredeemed, 
 
 "4,288,893 
 
 25 0,719,143 
 54,894.738 
 
 195,398.044 
 535.253.789 
 
 tr 1.755,783 
 i33.975,976 
 154.323.242 
 
 176, '2d>,682 
 
 ,- : 2,6b .206 
 
 T49.CD7.649 
 
 »54,5*5»097 
 561,365,135 
 
 584,506,826 
 
 %-T.472.TI) 
 ',06,630,859 
 
 11,791.86s- 
 .25, 752. 821 
 535,383,680 
 •55,74t,4o8 
 184,360,91; 
 
 '82,599,335 
 
 I !
 
 26(3 
 
 TABLE IV. 
 
 Loans for Ireland, guaranteed by Britain, with the annual Charges ; 
 
 Preced. 
 
 17.98 
 
 1799 
 i[ ■ 
 r8oi 
 .< 802 
 
 1803 
 1804 
 1805 
 
 Sep. loan 
 1806 
 1807 
 
 Sep. loan 
 1808 
 
 Int. del' 
 1809 
 
 l'o T < 
 
 Sep.lpai 
 
 1811 
 181-, 
 
 K 
 M 
 
 
 R 
 
 S 
 
 T 
 
 V 
 W 
 
 X 
 
 A 
 
 c 
 
 F 
 
 S 
 
 Sums 
 raised. 
 
 3 per cent. 
 
 4 per cent. 
 
 5 per 
 cent. 
 
 Total 
 each year. 
 
 Amount 
 funded debt. 
 
 1,50 ?,oo 
 
 2,000,000 
 3,000,00c 
 2,000,00c 
 ',500,00c 
 2,000,000 
 
 2,625,00c 
 4,000,00c 
 5,250,00c 
 3,140,00c 
 
 4,393,75' 
 2,639,25c 
 
 300,00c 
 
 
 2,925,000 
 4,000,000 
 5,250,000 
 3,140,000 
 4,393.750 
 2,639,250 
 12,348,000 
 3,200,000 
 8,190,000 
 4,300,000 
 360,000 
 3,320,000 
 3,012,000 
 2,409,625 
 2,954,375 
 
 2,925,000 
 6,925,000 
 12,175,000 
 15,315,000 
 19.708,750 
 22,348,000 
 
 25,548,000 
 33,738,000 
 38,038,000 
 38,398,000 
 41,718,000 
 44,730,000 
 47,139.625 
 50,094,000 
 
 
 
 (3,000,000 
 2,000,000 
 4,500,000 
 2,500,000 
 1,500,000 
 2,000,000 
 2,000,00c 
 1,500,000 
 2,500,00c 
 
 12,048,00. 
 3,200,00c 
 8,190,00c 
 4,300,00c 
 
 3,320,00c 
 2,800,00c 
 2,409,625 
 
 300,00 
 2.954,375 
 
 ,60,00c 
 ll2,ooc 
 
 3,000,000 
 4,000,00c 
 1, 400,00c 
 
 1,800,00c 
 5,6x5,00c 
 /,965,25c 
 
 1, 800,00c 
 
 
 3,600,000 
 5,615,000 
 1,965,250 
 
 53,694,000 
 59,309,000 
 61,274,250 
 
 4,500,00c 
 
 44.4C-^.OOC 
 
 7,656,00c 
 
 5,054,37 c 
 
 
 7,656,000 
 
 68,930,250 
 
 ■ 7 2,000 
 
 62,o3o,2<ro 

 
 259 
 
 Also the Redemption of the same. 
 
 
 .Sum red. 
 Mtfh year. 
 
 Amount 
 redeemed. 
 
 Amount 
 unredeemed. 
 
 Interest. 
 
 Annuity. 
 
 Manage- 
 ment 
 
 Total c harp i' 
 
 ,-acli yi'ir. 
 
 K 
 
 20,4 V 
 
 20,40! 
 
 2,904,532 
 
 90,7 c 
 
 4.5- 
 
 i.349 
 
 96,599~ 
 
 M 
 
 9I.46t 
 
 111,93.1 
 
 6,3i 3 ,:66 
 
 iao,ooc 
 
 4,9 r 6 
 
 1,8/5 
 
 126,771 
 
 
 
 I30 f l8' 
 
 »4*."S 
 
 11,932,881 
 
 157,50c 
 
 
 .. j ka 
 
 159.862 
 
 P 
 
 iSS.i^ 
 
 475.47'/ 
 
 14,830,521 
 
 94-Joc 
 
 
 1,4x3 
 
 9 c >6i3 
 
 R 
 
 310,911 
 
 786,40; 
 
 18,922,343 
 
 I3I.8k 
 
 
 i,977 
 
 ' 133.789 
 
 r 
 
 ttftooj 
 
 1.123,45 
 
 i,f»Mi.< 
 
 :i,i24.5*5 
 
 73>0* 
 
 
 
 76,125 
 888,759 
 
 660,1 : 
 
 9>4l6 
 
 1 0,08 1 
 
 47 M5' 
 
 1,595/) 71 
 
 23,952,329 
 
 9.^,00 
 
 6,417 
 
 J, 142 
 
 103,559 
 
 u 
 
 579-335"- 
 
 
 ;i,562,90i 
 
 245, ~o. 
 
 
 1,785 
 
 348,485 
 
 V 
 
 w 
 
 I 738.93, 
 
 2.913.94^ 
 
 55,484,052 £ 
 
 129,00 
 i8,oot 
 
 75,000 
 
 1,46: 
 
 70c 
 
 130,46a 
 
 93.76o 
 
 \ 
 
 tofcsyj 
 
 3.721.34 
 
 •,7.996.659 
 
 99,60c 
 
 
 1,129 
 
 100,729 
 
 V 
 
 / 
 
 £ 907,58/ 
 
 4,628,91' 
 
 12,510,699 | 
 
 72,18. 
 
 
 1,024 
 819 
 
 95,624 
 73.»o8 
 
 4 
 
 951.46.- 
 
 5.580.38, 
 
 14,513,611 
 
 "8,175 
 4,17* 
 
 126,00c 
 
 
 1,004 
 
 H9.t79 
 
 4,178 
 
 14 .J87 
 
 C 
 
 u<*3,sn 
 
 6,593,96c 
 
 17,100,034 
 
 13.250 
 
 r,3j7 
 
 F 
 
 G 
 
 I Ut$Sf7tl 
 
 7,729,68; 
 
 53,544,568 J 
 
 168,45c 
 5^,95: 
 
 
 1,909 
 667 
 
 170,359 
 5 7- ''24 
 
 
 l.356,i-( 
 
 9,085,95^ 
 
 52,188,292 
 
 
 
 . . . 
 
 
 \ 
 
 1,067,541 
 
 IVS53.49. 
 
 >- ^,276,75! 
 
 229.681 
 
 
 _2.4f4 
 
 132.094 
 
 
 10.6- -„.\ ,' 
 
 
 
 2,1^9.891 
 
 104,083 
 
 26,534 
 
 4^*60,508 
 
 2.402 
 
 Deduct reduction in ni.ui.i^i. 
 
 
 Deduct interest and management of 
 
 
 
 24Jt 3* 
 
 .^258,104 
 
 
 debt redeemed, 
 
 319,605 
 
 
 
 323,227 
 
 1 
 
 •. fee. unredeemed. 
 
 
 
 

 
 200 
 
 TABLE V. 
 
 Progress of the whole Irish Funded Debt, payable in Dublin 
 
 Years. 
 
 1 7 n-s-'i 
 
 1787 
 1788 
 
 1791, &c 
 
 1793 
 Vote Cr. 
 
 1794 
 
 1795 
 
 1796 
 Vote Cr. 
 
 1797 
 
 1798 
 
 1799 
 
 1800 
 
 1801 
 
 1 80a 
 
 1803 
 1804 
 1805 
 1806 
 1807 
 1808 
 1809 
 1810 
 1811 
 181a 
 
 Bank of 
 Ireland, 
 
 prec.1797 
 1797 
 1808 
 
 Sums raised 
 
 Irish 
 
 currency. 
 
 740,00c 
 
 200,001 
 
 918,24c 
 
 174,60c 
 
 200,00c 
 
 150,00c 
 
 1,029,65c 
 
 1,591,666 
 
 640,00c 
 
 325,00 
 
 2,018,700 
 
 :.,424,476 
 
 5,261, 00c 
 
 4,666,666 
 
 2,750,319 
 
 3,791,666 
 
 27,881,985 
 2,166,666 
 
 6,i25,coc 
 
 4,333,333 
 4,166,666 
 3,844,666 
 3,458,333 
 4,500,000 
 5,856,198 
 2,501,000 
 6,388,000 
 
 71,221,850 
 
 Capital funded, payable in Dublin — 
 Irish currency. 
 
 \ per cent.|4 per cent.]5 per cent. Total 
 
 200 
 918 
 
 1,770,232 
 
 2,780,00c 
 
 1,012,50c 
 
 1,500,00c 
 
 3,000,00c 
 1,500,00c 
 
 2,680,972 
 
 174,600 
 
 174,600 
 
 53.ooo 
 
 127,600 
 
 200.000J 
 
 i50,oooj 
 487.9831 
 400,000 
 
 640,000, 
 
 200,00c 
 918,240 
 174,600 
 200,000 
 150,000 
 487,983 
 400,000 
 640,00c 
 
 635,000 
 2,054,950, 2,' 
 
 635,000 
 054.95C 
 2,011,000, a,oii,ooc 
 500,000 
 41,985 
 770,232 
 
 2,500,000 3 
 41,9851 
 
 9,120,918 12,183,990 
 
 1,404,531 
 
 6,1 
 
 1,000 
 
 313.000 
 
 10,845,648 
 
 1,404,531 
 
 2,780,000 
 
 53,ooc 
 
 1,012,50c 
 
 1,500,000 
 
 6,198 
 
 3, 100,00c 
 
 1,183,00c 
 
 23^7547220
 
 2(il 
 
 and London, with the Annual Charge. 
 
 Years. 
 
 1773-5-7 
 
 1787 
 1788 
 
 1791, &c 
 1793 
 
 Vote Cr. 
 J 794 
 1795 
 1796 
 
 Capital funded, pay. in London — 
 British currency. 
 
 Annual charge — 
 Irish currency. 
 
 5 per cent. 
 
 4 per cent. 
 
 5 per cent 
 
 Interest. 
 
 Annuities 
 
 
 
 
 
 48,9001 
 
 ! '. '. *.i 
 . . . .1 
 
 4.875 
 5.326 
 
 
 
 
 7,OOC 
 
 32.138 
 
 6,984 
 
 IO,000 
 
 7,50c 
 
 51,482 
 
 79.583 
 
 32,000 
 
 16,250 
 
 130,062 
 
 232,747 
 
 271,175 
 
 a27.05C 
 
 144,896 
 
 147.735 
 
 
 * * " 
 
 500,00c 
 
 
 
 
 
 
 300,00c 
 
 1797 
 1798 
 1799 
 1800 
 1801 
 1 80a 
 
 1803 
 1804 
 1805 
 1806 
 1807 
 1808 
 1809 
 1810 
 1811 
 181Z 
 
 Bank of 
 
 Ireland, 
 
 prec.1797 
 
 1797 
 
 1808 
 
 2,625,00c 
 
 300,00c 
 
 5,250,00c 
 3,140,00c 
 4.393.75C 
 2,6.59,25c 
 
 
 
 
 
 12,048,00c 
 3,200,00c 
 8,190,00c 
 4,300,00c 
 3,320,00c 
 5,209,62« 
 
 1,800,00c 
 7,580,25c 
 
 7,656,00c 
 
 300,00c 
 
 1,900,000 
 360,000 
 
 1,396,60^ 
 104,00c 
 336,401 
 159.25^ 
 
 182,91c 
 163,46c 
 189,00c 
 
 105,05. 
 316,97c 
 
 3.405.519 
 
 30,00c 
 25.CO 
 
 62,50/ 
 
 59.i°i 
 6,951 
 
 81,250 
 
 14.354 
 
 167756 
 
 18,125 
 
 TTo.7Xi 
 
 2.954.375 
 1,800,000 
 
 a 1 2,000 
 
 53,3<>3.875 
 
 5,054.315 
 
 2,472,000 
 
 
 
 
 
 
 
 $3,303,875 
 
 W?4,U! 
 
 
 3,03,019
 
 262 
 
 TABLE VI. 
 
 Sinking Fund of 1 per cent, on Loans. 
 
 Years. 
 
 Loans charged 
 
 Loans not 
 
 Annuities 
 
 Sink, fun J 
 
 Sink, fund 
 
 a ith 1 per cent. 
 
 charged. 
 
 on loans. $ 
 
 n annuities. 
 
 1793 Loan, 
 
 6,250,000 
 
 
 
 62,, 00 
 
 . . . . 
 
 1794 Loan, 
 
 13,750,000 
 
 
 
 62,792 
 
 . 137.500 
 
 9,680 
 
 Navy Bills, 
 
 1,926,526 
 
 
 
 
 . 19.2^5 
 
 
 1795 
 
 24,000,000 
 
 
 
 85.50c 
 
 240,000 
 
 12,835 
 
 Navy Bills, 
 
 1,609,898 
 
 
 
 
 16*099 
 
 
 1796 
 
 26,095,800 
 
 
 
 58,50c 
 
 260,958 
 
 8,460 
 
 Navy Bills, 
 
 4,414,074 
 
 
 
 
 44,140 
 
 
 
 10,793,825 
 
 
 
 20,582 
 
 107,938 
 
 2,925 
 
 Loyalty Loan, 
 
 20,124,843 
 
 
 
 
 201,248 
 
 
 1797 
 
 35,350,000 
 
 
 
 39.00- 
 
 2 53,500 
 
 5.308 
 
 Navy Bills, 
 
 19,238,493 
 
 
 
 
 192,384 
 
 
 Excheq. Bills, 
 
 1,374,333. 
 
 
 
 
 33.743 
 
 
 1798 Loan, 
 
 14,000,000 
 5,624,250 
 
 16,000,000 
 
 17,209 
 
 140,000 
 56,242 
 
 2,340 
 
 1799 Loan, 
 
 2,625,000 
 
 19 250,00c 
 
 
 26,250 
 
 
 1800 Loan, 
 
 7,850,000 
 
 21,195.000 
 
 
 78,500 
 
 
 1801 Loan, 
 
 44,816, -.50 
 
 
 
 448,162 
 
 
 Excheq. Bills, 
 
 11,138,063 
 
 
 7.796 
 
 111,380 
 
 841 
 
 1802 Loan, 
 
 241,981,355 
 
 3C35 *.37i 
 
 
 
 
 86,796,375 
 
 29 r »379 
 
 2,419.813 
 
 42,289 
 
 1803 Loan, 
 
 16,000,000 
 
 
 32.083 
 
 160,000 
 
 3.138 
 
 1804 Loan, 
 
 1 8,200,000 
 
 
 
 182,00c 
 
 
 1805 Loan, 
 
 34,400,000 
 
 
 
 344,000 
 
 ».'•.. 
 
 Operat. L. L 
 
 3.280,731 
 
 
 
 33.807 
 
 
 1806 Loan, 
 
 29,880,000 
 
 
 
 298,800 
 
 
 1807 Loan, 
 
 301,200 
 
 18,072,000 
 
 
 3.012 
 
 
 1808 Loan, 
 
 9,454,000 
 
 
 
 94S540 
 
 
 (Excheq. Bills, 
 
 4,239,254 
 
 
 
 i 41,39* 
 
 
 1 1809 
 
 13.024,478 
 
 
 5L233 
 
 130,244 
 
 2,669 
 
 •Excheq. Bills, 
 
 8,253,644 
 
 
 
 82,536 
 
 
 1810 E. B. 
 
 8,581,108 
 
 
 
 85,811 
 
 
 Loan, 
 
 11,230,000 
 
 
 
 112,300 
 
 
 1811 E. B. 
 
 7,278,392 
 
 
 
 72,784 
 
 
 Loan, 
 
 5,166,319 
 
 
 
 51.663 
 
 
 Loan, 
 
 t6,*oo,ooo 
 
 
 41,50c 
 
 168, JOG 
 
 1,451 
 
 1812 E. B. 
 
 5,866,236 
 
 
 
 58,662 
 
 
 Loan, 
 
 7.332.793 
 
 
 
 73.32/ 
 
 
 Loan, 
 
 27,544,000 
 468,913,572" 
 
 
 
 275.440 
 
 
 [04,868,375 
 
 416,195 
 
 4,689,135 
 
 49-528 
 
 Not charged, 
 
 104,868,375 
 
 
 19,66c 
 
 49.548 
 
 
 
 573,781,887 
 
 
 "7387861 
 
 4.738,683 
 
 TotaCT p. ct. 
 
 Debt preced- 
 
 
 
 
 
 
 ing 1793 
 Whole funded 
 
 238,2.? 1,248 
 
 
 
 
 
 
 debt, 
 
 812,013,135 
 
 
 

 
 263 
 
 TABLE VII. 
 Unfunded Debt. 
 
 Year ending 
 5th January 
 
 1793 
 1794 
 1795 
 1796 
 J797 
 1798 
 1799 
 1800 
 1801 
 1802 
 1803 
 1804 
 1805 
 1806 
 1807 
 1808 
 1809 
 1810 
 1811 
 1812 
 1813 
 
 Exchequer 
 Bills. 
 
 361,100 
 11,849,00c 
 to, 11 1,300 
 13,781,00c 
 t3,2iS,6oo 
 3,368,400 
 14,310.400 
 zo, 60,700) 5 
 46,080,100 
 20,588,10c 
 16,456,000 
 19,067,600 4 
 
 15,25.1,50° 5 
 
 27,180,400 5 
 
 27,207,500 5 
 
 34,942,400 6, 
 
 39,301,200 7 
 
 39,164,100 8 
 
 3§,»86,3od 7 
 
 41,491.800! 7 
 
 4^,406,400! 7 
 
 Navy debt. 
 
 450,130 
 
 709,74 
 
 413,164 
 
 321,82* 
 
 48^,79, 
 
 150,588 
 
 556,o. 
 
 992,22* 
 
 705,819 
 
 100,80c 
 
 105,64* 
 
 037,307 
 
 011,567 
 
 ,911.588 
 
 ,885,819 
 
 561,237 
 
 221,167 
 
 263,175 
 
 595,838 
 
 883,890 
 
 748.872 1 
 
 Ordnance 
 debt. 
 
 9MOi 
 
 303,458 
 
 755.564 
 
 1,235,631 
 
 763,153 
 
 548,233 
 
 983,249 
 
 631,83 
 
 823,113 
 
 701,428 
 
 399.76c 
 
 682,343 
 
 r, 260,480 
 
 1,104,512 
 
 1,255.071 
 
 1,165,82: 
 
 861,36^ 
 
 [,015,36c 
 
 ,11,089,441 
 
 -1,078,476 
 
 900, 3 6u 
 
 Total. 
 
 M,8 1,375 
 
 18,862,3. t 
 
 ao,52J,464 
 
 27.348,45V 
 
 18,464,55: 
 
 20,414,66 
 
 20,849.683 
 
 26,984,8.9 
 
 35,628,09, 
 
 28,400,4 ..8 
 
 19,961,40: 
 
 23.787,52' 
 
 32,515,54^ 
 
 34,196,50c 
 
 )4,348,39' 
 59,679,96c 
 47,383,631 
 ^,442,63. 
 
 46,971,579 
 
 :o,454,i66 
 f.!,o;^,632 
 
 Increase or 
 decrease. 
 
 059,5 7> 
 662,158 
 
 813,995 
 
 880,9 
 
 947,H4 
 
 435,0? 7 
 
 643,28c 
 227,691 
 439,000 
 826,113 
 ,728,027 
 680,952 
 151,981 
 331,569 
 703,672 
 059,003 
 470,886 
 482,587 
 601,466 
 
 "Whole Unfunded Debt reported to Parliament. 
 
 
 Exch. Bill* 
 Navy and Ord- 
 nance 
 
 Miscellaneous 
 
 articles. 
 
 Total. 
 
 Increase. 
 
 1811 
 
 l8<2 
 I8I3 
 
 46,971>579 
 
 50,454,166 
 54,055,632 
 
 3,64<^,368 
 3.573.893 
 2,783,064 
 
 50,619,947 
 54,038,059 
 t7.838.696 
 
 +3,418,112 
 
 4-?. 800,61 7
 
 264 
 
 TABLE VIII. 
 
 Lord Henry Petty's Plan of Finance. 
 
 Paut I. — Loans on War Taxes. 
 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 G 
 
 Yrs. 
 
 Loans on 
 
 War taxes 
 mortgaged 
 
 \ Amount 
 war taxes 
 
 Sum 
 
 redeemed 
 
 Whole sum 
 
 Interest 
 on amount 
 
 
 
 each year. 
 
 mortgaged.. 
 
 each year. 
 
 
 redeemed. 
 
 1807 
 
 12,000,000 
 
 1,200,000 
 
 6;o,ooc 
 
 600,000 
 
 6cc,ooo 
 
 30,00c 
 
 1808 
 
 I 2, 000,000 
 
 1,200,000 
 
 1, 200,00c 
 
 1,230,00c 
 
 1,830,00c 
 
 91,500 
 
 1809 
 
 1 2,000,000 
 
 1, 200,00c 
 
 i,8oc,ooc 
 
 1,891,50c 
 
 3,721,50c 
 
 186,075 
 
 i8ro 
 
 14,000,000 
 
 1,400,00c 
 
 2,JC0,0C0 
 
 2.686,07, 
 
 6,407,57.) 
 
 320,378 
 
 1811 
 
 16,000,00c 
 
 1, 600,00c 
 
 3,tco,ooc 
 
 3,620,3 7* 
 
 10,027,95; 
 
 501,398 
 
 1812 
 
 1 6,000,00c 
 
 1,600,000 
 
 .1,100,000 
 
 4,601,398 
 
 14,629,351 
 
 731.467 
 
 1813 
 
 1 6,000,00c 
 
 1,600,000 
 
 4,900,00c 
 
 5,631,467 
 
 20,260,818 
 
 1,013,041 
 
 i8r 4 
 
 16,000,000 
 
 1,600,000 
 
 5,700,00c 
 
 6,713,041 
 
 26,973.859 
 
 1,348,693 
 
 1 8 15 
 
 1 6,000,00c 
 
 1,600,000 
 
 6,500,00c 
 
 7,848,693 
 
 34,822,552 
 
 1,741,127 
 
 1816 
 
 1 6,000,00c 
 
 1,600,000 
 
 7,300,00c 
 
 9,041,128 
 
 43,863,680 
 
 2,193,184 
 
 1817 
 
 1 6,000,00c 
 
 1,600,000 
 
 8, 1 00, 00c 
 
 10,293,184 
 
 54,156,864 
 
 2,707,84; 
 
 1818 
 
 1 6,000,00c 
 
 1,600,000 
 
 8,900,00c 
 
 11,607,843 
 
 65,764,707 
 
 0.288,235 
 
 1819 
 
 1 6,000,00c 
 
 r, 600,000 
 
 9,700,00c 
 
 12,988,235 
 
 78,752,942 
 
 3.937,647 
 
 18 JO 
 
 16,000,000 
 
 1,600,000 
 
 10,500,00c 
 
 14,437,649 
 
 93,190,589 
 
 4,659,529 
 
 JIO,OCO,OOC 
 
 21,000,000 
 
 75, 100,00c 
 
 93,190,589 
 
 
 
 18 J] 
 
 I 2,OOC,OOC 
 
 1 ,3CO,000 
 
 10,500,00c 
 
 14.559.529 
 
 107,750,118 
 
 5. ^7,505 
 
 182. 
 
 1 2,000,00c 
 
 1,200,000 
 
 10, jocooc 
 
 14,687,505 
 
 122,437,623 
 
 6,121,880 
 
 182. 
 
 r 2,0 0,00c 
 
 r, 200,000 
 
 io,5oo,oor 
 
 14,821,880 
 
 137,259.503 
 
 6,862,974 
 
 \iiZ4 
 
 14, 00,00c 
 
 i,40C,occ 
 
 10,500,00c 
 
 14,862,974 
 
 152.122,477 
 
 7,606,12; 
 
 1823 
 
 1 6,000,00c 
 
 x, 600,00: 
 
 10,500,00c 
 
 14,806,123 
 
 166,928,600 
 
 8,346,429 
 
 1820 
 
 1 6,000,00c 
 
 i,6oc,coc 
 
 r 0,5 00,00c 
 
 14,746,429 
 
 181,675,029 
 
 9.o83.75i 
 
 
 492, 000,00c 
 
 29,200,000 
 
 
 181,675, 029 
 
 
 
 Part II. — Supplementary Loans. 
 
 f 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 ~ 
 
 Supplement- 
 ary loans. 
 
 Interest. 
 
 Sinking 
 fund. 
 
 Sum 
 redeemed 
 each year. 
 
 Whole sum 
 redeemed. 
 
 Interest 
 on amount 
 redeemed. 
 
 !t8o 7 
 
 200,000 
 
 10,000 
 
 3.333 
 
 3,333 
 
 3,333 
 
 166 
 
 |i 808 
 
 1,400,00c 
 
 70,000 
 
 23.333 
 
 36,833 
 
 30,166 
 
 1,508 
 
 1809 
 
 2,600,00c 
 
 130,000 
 
 43.333 
 
 7L508 
 
 101,674 
 
 5.083 
 
 1810 
 
 2,000,00c 
 
 100,000 
 
 33.333 
 
 108,416 
 
 210,090 
 
 10,504 
 
 18XI 
 
 1,600,006 
 
 80,000 
 
 26,666 
 
 140,504 
 
 35o,594 
 
 I7.530 
 
 1813 
 
 3.200,00c 
 
 160,000 
 
 53,333 
 
 200,863 
 
 551.457 
 
 *7,573 
 
 
 4,800,00c 
 
 240,000 
 
 80,00c 
 
 290,906 
 
 842,363 
 
 42,118 
 
 1814 
 
 6,400,00c 
 
 3 20,000 
 
 106,666 
 
 412,118 
 
 1,254,481 
 
 62,724 
 
 1815 
 
 8,000,00c 
 
 400,000 
 
 1.33.333 
 
 566,057 
 
 1,820,538 
 
 91,027 
 
 1816 
 
 9,600,00c 
 
 480,000 
 
 160,000 
 
 754,36c 
 
 2,574,898 
 
 128,744 
 
 18X7 
 
 1 r, 200,00c 
 
 560,000 
 
 186,666 
 
 978,744 
 
 3,553,642 
 
 177.683 
 
 1818 
 
 1 2,800,00c 
 
 640,000 
 
 "3,333 
 
 1,241,015 
 
 4,794,657 
 
 239.73» 
 
 1819 
 
 14,400,00c 
 
 720,000 
 
 240,00c 
 
 l,543. 65 
 
 6,337.722 
 
 316,886 
 
 1820 
 
 1 6,000,00c 
 
 800,000 
 
 266,666 
 
 1,886,886 
 
 8,224,608 
 
 411,330 
 
 
 94,200,00c 
 
 4,710,000 
 
 1,570,000! 
 
 8,324,608 
 
 
 
 1821 
 
 20,000,00c 
 
 1,000,000 
 
 333.333 
 
 2,314,563 
 
 10,539,171 
 
 526,958 
 
 1822 
 
 20,OCO,OOC 
 
 1,000,00c 
 
 333,333 
 
 2,763,614 
 
 13,302,795 
 
 665,139 
 
 I8»3 
 
 2C,O00,OCC 
 
 1,000,000 
 
 333,333 
 
 3,235,139 
 
 16,537,934 
 
 836,896 
 
 182^ 
 
 18,000,00c 
 
 900,000 
 
 300,000 
 
 3,696,896 
 
 20,234,830 
 
 1,011,741 
 
 j 825 
 
 16,000,00c 
 
 800,000 
 
 266,666 
 
 4,148,407 
 
 34,383,237 
 
 1,319,161 
 
 1826 
 
 16,000,000 
 
 800,000 
 
 266,666 
 
 4,622,494 
 
 29,005,731 
 
 1,450,286 
 
 
 20.1,200,00c 
 
 r 0,2 1 0,000 
 
 3.403,333 
 
 29.005,731 
 

 
 265 
 
 Lord Henry Petty's plan of Finance continued. 
 Part III. — Joint View of both Loans. 
 
 
 13 
 
 14 
 
 is 
 
 1G 
 
 17 
 
 IS 
 
 19 
 
 rs. 
 
 Amount 
 war tax 
 loam. 
 
 Amount 
 
 supplement- 
 ary loans. 
 
 War tax 
 
 loans unre- 
 deemed 
 
 11,400,000 
 
 Supplement- 
 ary loans 
 unredeemed 
 
 196,666 
 
 Tot il loans 
 
 unredeemed 
 
 11,596,666 
 
 Interest 
 on loans 
 
 5-9T8J3 
 
 Amount 
 taxes raited 
 eacli year. 
 
 *3*332 
 
 o- 
 
 12,000,0.0 
 
 200,00: 
 
 Gi 
 
 24,000,000 
 
 1,600,000 
 
 12, 1 70,000 
 
 1.569.833 
 
 23,739. 8 33 
 
 1,186,991 
 
 106,666 
 
 09 
 
 36,000,000 
 
 4,200,000 
 
 32,278,500 
 
 4,098,316 
 
 36,377,126 
 
 1,818,856 
 
 a8o,ooc 
 
 lio 
 
 50,000,000 
 
 6,100,000 
 
 43.59.^425 
 
 5,989,910 
 
 49.585.335 
 
 2,479,26^ 
 
 413.333 
 
 .11 
 
 66,000,000 
 
 7,800,00c 
 
 55,972,047 
 
 7,449,406 
 
 63,421,453 
 
 3,I7I. 72 
 
 5 10,00c 
 
 III 
 
 82,000,000 
 
 11,000,000 
 
 67,370,649 
 
 10,448.543 
 
 77.819.192 
 
 3.89 .959 
 
 733»333 
 
 ll3 
 
 98,oo.-,ooo 
 
 15,800,000 
 
 77,739.182 
 
 14,957,637 
 
 92,696,819 
 
 4,634,841 
 
 1,053,333 
 
 lU 
 
 114,000,000 
 
 11,200,000 
 
 87,026,141 
 
 10,945,519 
 
 107,971,66c 
 
 5.398,583 
 
 1,48, 00c 
 
 Ixj 
 
 130,000,000 
 
 30,100,000 
 
 95,177,448 
 
 18,379,462 
 
 123.556,910 
 
 6/77,845 
 
 2.013,333 
 
 tl6 
 
 146,000,000 
 
 39,800,000 
 
 102,136,320 
 
 37,225,102 
 
 139,361,427 
 
 6,968,071 
 
 1,653,333 
 
 ii- 
 
 162,000,000 
 
 51,000,000 
 
 107,843,136 
 
 47.446,358 
 
 155,289,494 
 
 7,764,474 
 
 3,400,00c 
 
 tiS 
 
 178,000,000 
 
 63,800,000 
 
 112,235,293 
 
 59,005,343 
 
 1 7 1, 240,636 
 
 8,562,031 
 
 4,253.333 
 
 ll 9 
 
 194,000,000 
 
 78,100,000 
 
 115,247,058 
 
 71,862,278 
 
 1 S - . r - j.' \t 
 
 9.355.466 
 
 5.213.33; 
 
 [ac 
 
 210,000,000 
 
 94,200,000 
 
 116,809,411 
 
 85t975t39a 
 
 XOa.784.803 
 
 CO.i39.4iI 
 
 6,180,00c 
 
 
 
 
 72,117.353 
 
 28,413.335 
 
 ::i 
 
 422,000,000 
 
 r 14,100.000 
 
 114,429,882 
 
 103,660,829 
 
 218,090,711 
 
 10,9 4,535 
 
 7.6 '3,333 
 
 laa 
 
 134,000,000 
 
 134,200,000 
 
 ur,s62,3 v -2 
 
 120,897,205 
 
 232,459,58- 
 
 11,612,979 
 
 8,946,666 
 
 1*3 
 
 246,000,000 
 
 154,200,000 
 
 108,740,502 
 
 
 246,402, s68 
 
 12,310,118 
 
 10,280,00c 
 
 '14 
 
 260,000,000 
 
 172,200,000 
 
 107,877.528 
 
 151,965,170 
 
 259,842,698 
 
 11,992,13^ 
 
 11,480,000 
 
 bj 
 
 176,000,000 
 
 188,200,000 109,071,405 
 
 163,816,763 
 
 272,888,168 
 
 13,644,408 
 
 12,546,666 
 
 [16 
 
 292,000,000 
 
 |204,200,0C0| 1 10,324.976 
 
 175. '94,229 
 
 285,519.205 
 
 I4,175.96o 
 
 I3,6i3.333 
 92,893,333 
 
 
 
 
 
 
 
 147,887,498 
 
 
 P 
 
 MtT IV. — Comparison * 
 
 Mth other Systems 
 
 
 
 '.'0 
 
 81 
 
 89 
 
 88 
 
 84 
 
 -.'> 
 
 Yrs. 
 
 1807 
 
 No sinking fund. 
 
 Sinking fund of l-I^o. 
 
 Sinking fund of 1-GO. 
 
 Debt. 
 
 11,000,000 
 
 Taxes. 
 
 550,000 
 
 Debt unreal 
 
 Taxes, 
 
 Debt unred. 
 
 Taxes. 
 
 10,890,00c 
 
 660,00c 
 
 10,816,666 
 
 733,333 
 
 1 s ■ * 
 
 12,000,000 
 
 1,1 10,000 
 
 11,664,50c 
 
 I,32C,ODO 
 
 21,440,833 
 
 1,466,666 
 
 1809 
 
 3 .,000,000 
 
 1,650,000 
 
 32,317.725 
 
 1,980,000 
 
 31,861,875 
 
 1,200,000 
 
 l8lO 
 
 44,OCO,OCO 
 
 2,100,000 
 
 41,843,611 
 
 2,640,000 
 
 41,071,685 
 
 2.933.333 
 
 l8ll 
 
 55,000,000 
 
 1,750,000 
 
 53,235.792 
 
 3,300,000 
 
 52,059,653 
 
 
 1812 
 
 66,000,000 
 
 3,300,C00 
 
 63,487,582 
 
 3,96o,oco 
 
 61,812,636 
 
 4,400,000 
 
 181 3 
 
 7 7,000,00c 
 
 3,850,000 
 
 73.591. 9 6 ' 
 
 4,620.000 
 
 71.319,95.' 
 
 5. > 33.333 
 
 I'M.: 
 
 88,coo,ooo 
 
 
 83.541. ?59 
 
 5,280,000 
 
 80.569,265 
 
 5,86o,6;,6 
 
 1 8 15 
 
 99,000,000 
 
 
 93,3:8,62:- 
 
 5,940,000 
 
 1 
 
 6,600,000 
 
 1816 
 
 IIC.OOO.COO 
 
 5,5CO,nOO 
 
 102,945,069 
 
 6,6oo,ccc 
 
 
 7,333.333 
 
 181; 
 
 111,000,000 
 
 6,050,COO 
 
 
 
 
 8,066,666 
 
 1818 
 
 131,000,000 
 
 6,600,000 
 
 
 
 
 
 18 17 
 
 . 
 
 
 : 
 
 
 
 
 1820 
 
 154,000,000 
 
 7,700,000 
 
 
 
 
 7-, ioO|Ooa 
 
 
 
 57,750,000 
 
 
 69,300,000 
 
 1811 
 
 165,000,00c 
 
 8,150,000 
 
 148,153.510 
 
 9,900,000 
 
 
 11,000,000 
 
 1821 
 
 176,000,00c 
 
 8,8oc,ooo 
 
 I56.551, 196 
 
 10,^60,000 
 
 I43.58{,J1' 
 
 
 18.3 
 
 187,000,00a 
 
 9.350.-00 
 
 164,708,756 
 
 ■ 
 
 I49.847.9at 
 
 12*466,666 
 
 1^4 
 
 198,000,00c 
 
 9,900,000 
 
 172,614,194 
 
 11,880.000 
 
 
 
 ' 
 
 209,000,00c 
 
 10,450,000 
 
 
 
 l6l, 91,3 " 
 
 
 I8ir 
 
 1 120,000,00c 
 
 | If, .:\ooo 
 
 - 
 
 
 . 
 
 154,OCO,CC3 
 
 
 1 
 
 1115,000,000 
 
 
 ■■'
 
 260 
 
 TABLE IX. 
 Amount of British Funded Debt redeemed and transferred. 
 
 Irish debt redeemed, 5 per cents 
 Portuguese debt redeemed, ditto 
 Imperial debt redeemed, ditto 
 
 Total. 
 
 1,507,10c 
 1,962,65c 
 2,174,405 
 2,804,545 
 3>°83,45J 
 4.39°> 6 7c 
 6,695,585 
 7>779'8o? 
 20,211,57c 
 10,281,776 
 
 9.9*5,739 
 8,846,45c 
 
 12,409,853 
 11,951,711 
 12,673,476 
 13,105,180! 
 I4,337,*°9j 
 14,574,5341 
 15,000,4511 
 16,087,487 
 18,509,174 
 21,716,165 
 236,807,742 
 10,643,499 
 176,674 
 
 1 ,361,974 
 
 248,993.899
 
 267 
 
 TABLE X. 
 
 Comparison of Mr. Vansittart's plan of Finance 
 former System. 
 
 Paiit I. — Comparison of Tuxes Levied. 
 
 with the 
 
 Year 
 
 ending 
 
 Former System. 
 
 New Syatem, 
 
 Excess of 
 
 taxes by for- 
 
 Taxes im- 
 
 raxes levied 
 
 raxes iiii- 
 
 I'.ixes levied 
 
 1st Aag. 
 
 posed aim. 
 
 annually. 
 
 posed ami. 
 
 annually. 
 
 mer system. 
 
 1814 
 
 T866~666 
 
 ~ 7,8667667, 
 
 1.1*7.963 
 
 "TTiZT^I 
 
 Ip^I 
 
 1815 
 
 1,866,666 
 
 3t733.J3- 
 
 
 1,127,963 
 
 2,605,369 
 
 1816 
 
 1,866,666 
 
 5.599-99* 
 
 
 1,127,963 
 
 4,472.035 
 
 l8t 7 
 
 1,866,666 
 
 7,466,664 
 
 
 i,i2;,;6.5 
 
 6,338,701 
 
 i8r8 
 
 1,806,666 
 
 9.333.J3- 
 
 1,290,206 
 
 2,418,169 
 
 6,915,161 
 
 1819 
 
 1,866,666 
 
 IX, 199.996 
 
 676,775 
 
 3,094,944 
 
 8,105,052 
 
 1820 
 
 1,866,666 
 
 13,066,662 
 
 2,008,333 
 
 5.103.277 
 
 7.963.385 
 
 1821 
 
 1,866,666 
 
 14.933.328 
 
 1.995.833 
 
 7.099.1 ic 
 
 ^83 4.2! 8 
 
 
 »4*233»3»S| 67,199,976 
 
 7,099,110 
 
 22,227.35 
 
 44.972,624 
 
 i8jz 
 
 1,800,000 16,733,328 
 
 1,987,500 
 
 9,086,6 IC 
 
 7,646,718 
 
 1813 
 
 1,800,000 18,533,328 
 
 
 9,o8! , '.6i 
 
 9(446,718 
 
 1S24 
 
 1,800,000 20,333,328 
 
 624.431 
 
 9,711. -4 
 
 In/>22,i8- 
 
 1825 
 
 1,800,0 22,133,328 
 
 r. 158.356 
 
 
 I 1,263,',;, 1 
 
 1826 
 
 i,8oo,ooj| 23,933,328 
 
 1,979,166 
 
 
 1 1. -8 4,7 6," 
 
 1817 
 
 1,802,000 25,733, '28 
 
 l.oWi3l< 
 
 13,943.-875 
 
 
 1828 
 
 1,800,000' 27,533,328 
 
 618,013 
 
 14,561,89: 
 
 i:,v;i..r/ 
 
 1829 
 
 i,8o:,ooo ; 29.333.3*8 
 
 1,962,500 
 
 
 12,808,936 
 
 
 *9-3J 3-3 *8 25 1,466,600 
 
 16,524,392'! 1 S,X59,7.u 
 
 
 P 
 
 art II. — Comparison 
 
 if Sinking Fundi* 
 
 
 Sinking 
 
 Sinking 
 
 Excess of 
 
 Bxcess 61 vink- 
 
 Years. 
 
 fund, fonnei 
 
 fund, new 
 
 s : nkingfund. 
 
 ing fund, o.s. a- 
 
 1814 
 
 system. 
 "147423.45/ 
 
 system. 
 73,677787- 
 
 old system. 
 
 bOM adil. taxes. 
 
 7 75.63' 
 
 _ 1679 15~ 
 
 1815 
 
 15. 634.6*; 
 
 12,860,207 
 
 2,774,42- 
 
 169.051 
 
 1816 
 
 16,906,35- 
 
 12,033,217 
 
 4.873.14= 
 
 40 r, 105 
 
 1817 
 
 18.i41.67.; 
 
 11,164,87 
 
 7,076,7';" 
 
 738,-/' 
 
 1818 
 
 19643.75- 
 
 11,607,83; 
 
 8,037,92 c 
 
 1,120.";, 
 
 i8 19 
 
 »1, 1 15,944 
 
 11,428,84: 
 
 0,687,102 
 
 1,582,05 3 
 
 1820 
 
 22,661,74c 
 
 12,639,033 
 
 1 2,022,707 
 
 2,059.322 
 
 1821 
 
 24,184.82' 
 
 13,896,60.; 
 
 10,388,21, 
 
 M53.999 
 
 
 i5J,972738c 
 
 99.278,43V 
 
 53A7J7'4i 
 
 8/.6r,l7 
 
 1822 
 
 24,718,01^ 
 
 15,208,31.: 
 
 9,509,705 
 
 1,862 , * 
 
 1823 
 
 26.426.4i', 
 
 14,198,72-, 
 
 rr.9a7.69 
 
 ■ ■ 
 
 1824 
 
 28,220,23',, 
 
 u.i •;. Ill 
 
 13.810,921 
 
 1 
 
 18:5 
 
 30,103,75^ 
 
 14.8760;; 
 
 1 
 
 &9& : - 
 
 1820 
 
 32,081,43; 
 
 16,227,78.. 
 
 
 .•,8 s 
 
 1827 
 
 3 1,158,00! 
 
 I^,7I9,<6 
 
 1 
 
 5,649 
 
 1828 
 
 
 
 
 
 182; 
 
 
 
 
 
 
 
 
 
 
 
 1 1 :'>.! I.».': 
 
 17' • 1-..1 ••: 
 
 ., •.-''.:. 2" }
 
 268 
 
 TABLE XL 
 Rates of Interest and Terminable Annuities on Loans. 
 
 Years. 
 
 *I755 
 
 *i 7 56 
 
 and by lottery, 
 
 1757 
 
 *i? 5 8 
 and by lottery, 
 
 *J759 
 
 *i76o 
 
 ♦1761 
 
 and by lottery, 
 
 1762 
 
 li 
 
 ' 1763 
 ; I766" 
 ! i;6 7 
 1768 
 
 •1776 
 
 ti777 
 fi778 
 
 ■j-1779 
 fi 7 8o 
 fi 7 8i 
 +178* 
 +1783 
 I 1-^784 
 
 1764 
 
 1784 
 1785 
 
 Sums 
 borrowed. 
 
 Interest 
 
 aoo,ooo|3 o 
 
 I,50o,ooo'3 10 
 
 500,0003 o 
 
 3,000,000 
 4,500,000 
 
 500,000 
 6,600,0003 
 8,000,000 
 11,400,000 
 
 600,000 3 
 
 12,000,0003 o c 
 500,000 40c 
 
 1,500, 
 Moo, 
 1,900, 
 2,000, 
 5,000, 
 6,000. 
 5,000, 
 
 1 2,000, 
 1 2, CO. J, 
 13-500 
 12,000. 
 6,000 
 
 OOO 3 
 
 I,482,' 
 6.397, 
 9.865,941 
 
 90C 5 
 
 0003 O 
 
 .0003 o 
 
 000 3 o 
 
 ,0003 4 
 
 OOO 4 O 
 
 000 3 o 
 
 ,000 3 O 
 
 ,0004 O 
 
 000 5 10 
 
 ,000 5 o 
 
 ,000 4 o 
 
 ,000 5 o 
 
 7 
 5 " 
 
 rerminable 
 
 annuities. 
 
 l. s. D. 
 
 I 2 6 
 
 o 10 o 
 
 o 7 
 a 6 
 
 10 o 
 
 2 10 o 
 
 3 15 o 
 
 1 16 3 
 
 Duration of 
 annuity. 
 
 life 
 
 24 years 
 
 21 years 
 99 years 
 
 o 
 
 3 IO 
 o 
 
 4 * 
 3 10 
 3 o 
 3 9 
 t a 
 t * 
 3 o 
 
 19 years 
 
 98 years 
 
 10 years 
 life,or3oyrs 
 life, or 
 
 80 years 
 
 78 years 
 77 years 
 7 5i years 
 
 Total. 
 
 3 4 
 
 4 10 
 10 
 
 29y rs l6 15 
 
 5 16 
 
 J 10 
 5 17 
 
 4 13 
 
 5 7 
 
 3 o 
 5 7 
 5 11 
 
 3 o 
 
 3 o 
 300 
 
 * The subscribers to the loans marked thus had also the profits of lotteries, 
 the prizes in which were funded. When funded on the same terms as the 
 rest of the loan, they are joined to it in the above Table ; but when funded 
 on different terms, they are stated separately.
 
 269 
 
 TABLE XI.— Continued. 
 
 Peace. 
 
 Years. 
 
 1793 
 1794 
 1795 
 I796 
 
 1797 
 
 1798 
 1799 
 
 1800 
 1 80 1 
 
 i8oz~ 
 
 1803 
 
 1804 
 
 1805 
 for Ireland, 
 
 1806 
 
 1807 
 for Ireland, 
 
 1808 
 
 1809 
 
 1810 
 for Ireland 
 
 in 
 
 1812 
 1813 
 
 borrowed. 
 
 Jl. s. d. 
 
 4,500,0004 3 A 
 
 11,000,0004 
 
 18,000,0004 
 
 i8,ooo,ooaU 
 
 7,500,0004 
 
 8,000,000!$ 
 
 14,500,000*) 
 
 1 7,000,000.6 
 
 3,000,0005 
 
 i5,50C,ooo[ 
 
 10,500,000 
 
 28,000,000 5 
 
 25,000,000 
 
 I J,OOC,OvjG 
 
 14,500,0005 
 12,500,000 
 
 1,500,000 
 20,000,000 
 14,200,000 
 
 1,500,000 
 10,500,000 
 14,600,000 
 
 £2,000,000 
 1,400,00 
 
 S 
 
 3 19' 
 
 4 16 
 9 
 
 5 3 
 4 
 
 4 19 
 4 14 
 4 16 
 4 14 
 4 4 
 4 4 
 4 4 
 4,^81,3005 2 10 
 
 6,789,625 
 22,500,00015 5 
 17,000,000 ; a 
 22,000,000 
 
 I2,000,000|4 8 o] o 6 II 
 
 V 8* 6 
 
 S 8 
 
 S 6 
 
 terminable 
 
 annuities. 
 
 o 11 5 
 096 
 
 066 
 056 
 
 060 
 o 4 II 
 
 065 
 
 500 
 
 O 8 IO 
 
 Duration of 
 ann uities. 
 
 Years. 
 
 66; 
 
 65 i 
 6 4 i 
 63i 
 
 (63 
 
 54i 
 
 50; 
 
 48J 
 
 46} 
 
 Total 
 
 L. S. I 
 
 4 3 
 4 II 
 
 4 16 
 4 13 
 
 4 II 
 
 J ia 
 7 
 6 4 11 
 
 5 I* 
 5 c 
 
 4 14 
 5_J 
 
 3 x i. 
 
 % 
 
 9 
 5 3 
 
 6 4 
 4 19 
 4 14 
 4 16 
 4 14 
 4 12 10 
 
 4 4 
 i4 4 
 
 5 * ic 
 
 4 14 II 
 
 5 8 
 S 5 
 
 5 6 
 
 f The subscribers to the loans marked thus had also the profits of lotteries, 
 the prizes in which were paid. 
 
 Fractions under a penny in the rate of interest arc emitted.
 
 270 
 
 TABLE XL—Continued. 
 
 Interest, &c. of Debt contracted by Funding Bills. 
 
 Years. 
 
 Amount 
 bills. 
 
 Interest. 
 
 Terminable 
 annuities. 
 
 Duration of 
 annuities. 
 
 Total. 
 
 1794 
 1795 
 1796 
 
 1 80a 
 1808 
 1809 
 1810 
 1811 
 181a 
 1813 
 
 I.907.45 1 
 1,490,647 
 4,226,727 
 
 l3.o29'399 
 8,910,450 
 
 4,000,000 
 7,932,100 
 8,311,000 
 
 , 7,018,700 
 5.43L700 
 
 12,000,000 
 3.755.7oo 
 
 JU S. D 
 
 5 1 
 580 
 5 4* 
 5 7 II 
 
 4 15 ° 
 
 5 4 9 
 5 3 1 
 5 3 3 
 5 3 « 
 58c 
 
 5 15 6 
 5 11 2 
 
 L. S. D. 
 
 Years. 
 
 L. s. i>. 
 5 I 
 5 8 
 5 4» 
 t$ 7 11 
 5 5 9 
 5 4 9 
 J 3 I 
 5 3 3 
 5 3 « 
 580 
 5 15 6 
 < 11 2 
 
 
 
 
 
 
 
 IO 9 
 
 sH 
 
 
 
 
 
 
 
 
 

 
 271 
 
 POSTSCRIPT II. to PART II. 
 
 A loan was contracted in November 1813, at L.l 10 in the 
 3 per cent, reduced, and L.67 in the 3 per cent. cons. 
 Sum raised, L.22,000,000 
 
 Sum funded in 3 per cent, reduced, - L.24,200,000 
 
 and in 3 per cent. cons. - - 14,740,000 
 
 Total funded, ----- L.38,940,000 
 
 Interest, ------ L. 1,1 68,200 
 
 Exchequer Bills were received, to the extent of one-half of 
 this loan, at the rate of L.100. 5s. for each L.l 00 of Exchequer 
 Bills. 
 
 Five per cent, discount was allowed for payment by advance. 
 The allowance on former loans was generally 4 per cent. 
 
 The omnium of this loan soon rose to an unparalleled height, 
 and i* now [February 1814] transacted at about 20 percent. 
 
 ADDITION TO PAGE J 17, 118. 
 
 Irish currencj 
 The amount of Irish debt payable in Dublin, re- 
 l il on the 5th January 1813, was, 
 
 In the 3 1 per cents. - L.3,521,088 
 
 In the 5 per cents. - 1,823,967 
 
 L.5,345,055 
 
 Which wns redeemed for - - - L. 4,212,529 
 
 Amount
 
 tn 
 
 Iris.Ii currency. 
 
 Amount redeemed in Britain, L. 10,653,499 British, L.l 1,54-1,290 
 
 in Ireland, - - - 5,345,055 
 
 Total redeemed, - - - L.16,S86,345 
 
 Leaving unredeemed, - 85,950,647 
 
 L.102,836,992 
 The charge of management of the Irish debt, at that time, 
 amounted to L.22,886. 
 
 And the sinking fund for the debt payable in Ireland was, 
 
 Part of annual grant of L 1 00,000, - 
 
 L.67,649 
 
 Expired annuities, - 
 
 54,043 
 
 1 per cent, on loans, - 
 
 221,962 
 
 
 L.343,654 
 
 Interest on debt redeemed, - 
 
 214,436 
 
 Amount sinking fund, 5th January 1813, 
 
 L.558,090 
 
 
 
 CoiiRiGENDfM, page 62, 
 
 Instead of lines 26, &c. read — 
 In 1770, on the eve of the American war, the system of 
 funding the lottery prizes was revived ; but, in the subsequent 
 lotteries during that war, the prizes were paid in money, and 
 the tickets granted to the subscribers, as an encouragement to 
 the loans, for a price equal to the sum distributed in prizes. 
 
 THE END. 
 
 D, Chill mere & Co,? 
 
 Printers,
 
 \
 
 UNIVERSITY OF I 
 
 3 0112 062406746 
 
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