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upon this part of the subject as it forms|cation of that which was professedly a war a material branch of the systom which I tax, to provide for the interest of debt dushall have the bonour of submitting to ring the war, and for its redemption after their cousideration, the natural tendency a peace.

This inconvenience did not ose and great recommendation of which will cape Mr. Pilt's observation, and he found, be thai it ill give an increasing power to himself in consequence so far obliged to the operation of the Sinking Fund. The abandon this system, that in the year 1801, second branch of the proposed system he returned to his forger mode of raising refers to the War Taxes, to the origin, pro- loans, and no part of the loan for that year gress, character, and probable iniprove was charged upon the income tax. la ment of which I beg leave shortly to call 1802, after the peace of Amiens, when the attention of the committee. In the lord Sidmouth took the state of our puanyear 1797, recourse was bad to the prin- ces into consideration, with a view to a ciple of raising a considerable portion of peace establishment, the first circumstance the supplies within the year: but much as of embarrassment that naturally occurred I admire that principle, and however bene- was the state in which the income tax was ficial the effects that have arisen from its pledged. He found it mortgaged for a operation, I must yet say that from the debt of no less than 56 millions of manner of its application, it was particu- capital, to discharge which it would of larly in detail extremely unfair and unjust course be necessary to continue it niue in its pressure. I do not make this ob- years after the war, in order to pay not servation with a view to censure any per-only the capital debt, but the sum of sons whatever, nor should I feel justified 1,700,0001. annual charge for interest. in pronouncing censure upon the original with a view therefore not only to the reauthors of suci a plan from my own know- lief of the country from the burthen of this ledge of the extreme difficulties that arise tax, but also to leave this great resource in the endeavour to carry into compleie open to be applied to the public exigencies execution the principle of raising a large in the event of renewed hosulity, with all portion of the supplies within the year. the additional effect and improved direcBut I have always been of opinion that iht tion that could then be given to it, the application of that principle to the asses- noble lord who then filled the situation sed taxes in the case of the treble assess-, which I have now the honour lo occupy, ment was extremely unjust, as proceeding had recourse to the buld measure of repeal. upon the very erroneous ground of taking ing the tax and funding 56 millions of expenditure as the criterion of income. stock chargeable upon it, in addition to the The produce of the treble assessment for sum of 40 millions required on account of the year 1798 amounted only to 3 794,5521. the unfunded debt at the conclusiớn of the In the following year, from the experience war; and fur payment of the interest on of its imperfections, the treble assessment this sum of 96 millions he contrived 10 was laid aside, but the principle of raising tind sufficient taxes. Thus was the couna large portiou of the supplies within the try set free from this extraordinary buryear, was retained, and the income tax then, and atforded the opportunity of saving substituted in its room. At the first inn-lits means for those future exertions which position of the treble assessment, it had unhas pily it was but too soon afterwards been subjected to a charge of 16 millions, called upon to make, and the subsequent the interest of which was to be defrayed vecessity of which form the best comment out of its produce during the war, and on on the judicious policy which dictated, and the return of peace the residue was also the energy which effected a measure, with to be applied to the extinction of that out which, at the commencement of the debt. This charge therefore was trans- present contest, our means would have ferred to the income tax, which thus be-been crippled, and our principal systein came burthened with a double mortgage, weakened in the very point in which its to discharge which its continuance would strength could be most usefully displayed. bave been necessary after the war had --At the commencement of the present ceased, to defray the expenditure of which war, the tax upun property was substituiit was imposed. In consequence of this ted for that upon inconie. As this subject arrangement the principle of raising the bas already been amply discussed, I do not supplies within the year was sacrificed, or mean to observe furtlier úpou the property at least partially suspended, by the appli- tax at present than to say, that it contained

all the improvements which might have object has been in a great measure accombeen expected from the experience of an-plished. Such means have been devised tecedent measures, for raising a large and put in force, to secure an accurate reportion of the supplies within the year, and turn of income, and such regulations that even in the first instance of its appli- adopted to ensure a strict collection in the cation, it exceeded in produce the hopes customs and excise, that without resorting of those by whom it was framed. The to any of the inquisitorial proceedings to largest amount of the income tax at 10 per produce a disclosure of property, which were cent, in the last war was 5,651,6421. the formerly complained of, a very large profirst year's produce of the property tax, in portion indeed of the expences of the war which its operation could be said fairly to have been raised within the year.–To have commenced was 3,919,1087. Still I these objects the attention of ministers do not mean to assert that this was at was called immediately after they entered its outset or is even now, strictly speak- into office last year, in consequence of the ing, an equal tax, or that it operates situation in which they found the finances with perfect equality upon all classes of of the country. Finding the annual exthe community, much less upon all the pences of the country bad increased no individuals who compose those classes. less than 7 millions, while the increase of That partial imperfection which is in- the annual revenue did not exceed one separable from all widely extended insti- million ; in this state of things, with a tutions must peculiarly attach to the pro- growing expence and inadequate supply, visions of a tax, calculated to include an it was determined to put the circumstances immense mass of property, and persons of the country upon a better footing. It placed in circumstances so infinitely di- was therefore resolved by government to versified. It is indeed morally impossible propose an addition to the property tax, to apply equally any large and general and also such further increase of the financial measure, without enfeebling its customs and excise as should raise the productive powers. As in the adminis- produce of the war taxes to 18 millions. tration of criminal justice, which alike As the humble organ of government, it assumes equality in its operation, the became my duty to submit these proposisane punishment affects. men differently tions to parliament. The duty was painful, according to the health, temperament, and I felt it most sensibly. I was fully aware, strength of body or of mind, or the parti- that the imposition of taxes is at all times an cular state and condition of the individual ungracious task, and that from the nature who suffers. So in taxation it ever has and amount of the taxes, the increase of been, and ever will be unequally felt in its which I was then called upon to propose, pressure, according to the peculiar situa- it was likely to be so in a peculiar degree. tion and local circumstances of the persons But with all these considerations on my to whom it attaches. This inequality is mind, combined with the reluctance which most sincerely to be regretted, and no man I must naturally feel to impose any addifeels more strongly than I do how desi- tional burthens upon my country, the rable it would be to provide for the most exigency of the public service and the equitable distribution of the public bur- magnitude of the objects in view would thens. But I apprehend that np inge- not allow me to shrink from my duty even nuity that can be exercised by any legis- so far as to yield to some of the exemplature will ever be sufficient completely to tions proposed. I have now the satisguard against the effect of that diversity of faction of thinking that the pain occasioned circumstances, which it would be difficult by the original proposition is in a great to ascertain and estimate, and much more measure compensated by the efficiency of difficult to counteract. The great prac-its produce. Such indeed has been the tical object in the arrangement of this tax increase of the property tax, not so much was to adopt some general principle, in the character of burthen, as in the rewhich should leave as little room as pos-moval of that part of the system which sible for evasion, because such evasion admitted of evasion, that I feel myself jusmust, not only with regard to this but to tified in taking its produce for the present all other taxes, be productive of injustice year at one million beyond what it yielded to those who do not evade while it serves in the last, which, combined with the other to injure the state : and I have the satis- war taxes, and the improved application faction to inform the committee that this of the sinking fund, will be amply adequate VOL. VIII.

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to defray our future expences to what-plies I have already stated at 40,527,0651., cver height they can be fairly calculated and that of the ways and means at to arise.— I trust that I have not deceived 41,100,0001. ; which leaves a surplus of the committee in the picture I have drawn more than 500,0001. But to this point I of the unfavourable points in our financial have already alluded.' Excluding from situation, and that I am justified in availing this statement all demands which do not myself to the extent to wbich I have gone, come into the regular account of our anof those points that are favourable, I think nual expenditure, or which may not recur, it will be found that I have neither con- and deducting also the amount of the cealed any part of the one nor exaggerated surplus of the consolidated fund and the any circumstance of the other. In estima- annual taxes, upon the produce of which ting the favourable points in our situation, we may safely rely, we then come to asI feel myself justified in taking the im- certain the sun wanted to supply the exiproved amount of the war taxes at gencies of the war. In the first place, de21,000,0001. which with the produce of ducting the subsidies 1,5000,0001. and the the sinking fund of 8,300,0001., I set sum required for the repayment of 5 per down as forming a clear annual revenue of cents. 1797, 350,000l. the supply will be about 30,000,0001. Of this sum then the reduced to 38,677,0001. But the farther country is in possession, and at liberty to deductions of 2,750,0001. for the mali apply it to ber use independently of the duty, of 3,500,0001. for the surplus of the aids derived from her ordinary permanent consolidated fund, and of 450,000l. for the revenues. (Hear! hear!) This is a fact lottery, will reduce the provision to be upon wbich the committee and the country made for the service of the war to must reflect with pleasure, and from which 31,977,0001. or, taking it in round numbers, gentlemen will proceed with greater satisfac- to 32,000,0001.-Now, sir, this is the tion to consider how such a sum ought to be point from which we are to depart in the applied to meet the calls of a war, which arrangement, which I shall have the honour from its nature demands our utmost ex- of submitting to you. I have shewn that ertion.- I now come to the consideration the sum required to defray the extra exof the Expenditure which may be incurred pence of the war, amounts to 32,000,000/. for the present year, and which will form To provide for this independently of the the criterion upon which I mean to found produce of the war taxes, I propose to my calculations as to the expence upon borrow the sum of 12,000,0001. by way of the future years of war. In taking this loan.— These 12 millions it is proposed to criterion, I judge of course by the present raise as a war loan to be charged upon the state of expence independently both of war taxes, a certain portion of which is subsidies to foreign powers and of such ad immediately to be set apart for its liquiditional charges as may be occasioned by dation. But here two difficulties present unforeseen emergencies, or by any increase themselves, which must have already ocin our establishments, or in the price of curred to the minds of the committee; naval and military stores. Should such the first is, that the tendency of such an emergencies arise, as most probably they operation must be gradually to exhaust will, or should the operation of any of the the war taxes, so that at the end of a cercauses I have just stated produce an ad- tain, although a remote period, this source dition to our expenditure, that addition of our supplies will be dried up.- The must under the system I shall have the other objection is, that on the supposition bonour to propose, as it must under any of a prolongation of the war beyond the other system of finance, be attended with period, in wbich the war duties of excise an increase of burthen upon the public. and customs will be exhausted, a part, or, --It may bowever be proper to observe, if the war should still continue, the whole that should such further demands arise, of the property tax will be pledged for ses they will occasion no departure from the veral years after the conclusion of peace. principle of the arrangement wbich I have the means, however, by which I propose to propose to you, as they will serve only to obviate both these difficulties, will, I to cause a proportional addition to the trust, when explained, receive the entire amount of new taxes which under this approbation of the committee.-It is proplan would otherwise be required in that posed, sir, to borrow 12,000,000l. annu. year. But to return to the question of ally for the first 3 years, from the present war expenditure: the amount of the sup- time; for the fourth year (or 1810)

14,000,0001.; and for the ten succeedingssition of the continuance of the war for years, if war shall so long continue, the whole 14 years. If peace should be soon16,000,0001. in each year.-In the first er re-established, other arrangements may and each successive year for which these easily be made, by which the portions of loans shall be raised, so much of the war war taxes so pledged may be released at taxes is to be appropriated, as will amount earlier periods; and the part not pledged to 10 per cent. on the loan so raised. Out will of course immediately be liberated on of this 10 per cent. the interest and charges the return of peace. If on the contrary of management are first to be defrayed, the war should be prolonged beyond these and the remainder is to constitute a 14 years, war loans to the amounts above sinking fund for the redemption of that stated may be continued indefinitely, and loan-When the interest of money is at 5 per the fresh charge so created in each year cent. such a sinking fund would redeeni each may be defrayed by the portions of war loan in 14 years from its creation; and in taxes thus successively falling in, withcase of a rise in the funds, this redemption out the necessity of laying on for that purwould be accelerated; because the loans pose any further taxes beyond those now would be borrowed at a lower rate of in- in existence. But as the interest and sinkterest, and that proportion of the ten per ing fund to be thus provided in each succent, which would be applicable to the cessive year for the charge of these war sinking fund, would consequently be grea- loans are taken from the produce of the ter.-But, without distracting the attention war taxes, which now constitute a part of the committee with the different results of the means by which the annual exdeducible on the supposition of variations penditure is defrayed, the deficiencies so of the funds, which, if they should arise in created must be supplied as they may reany material degree, are likely to favour the spectively arise by supplementary loans. operation of this plan, I will proceed on The loan so required this year will be only the supposition that the funds remain at 200,0001. But it is obvious that the 60.—Thus, if 12,000,0001. be borrowed at amount of the supplementary loans re60, in 1807, the portion of war taxes ap- quired for this purpose will, in each sucpropriated to the interest and sinking fund ceeding year, progressively increase by so on that loan will be 1,200,0001. ; and that much as the interest and sinking fund of portion will continue payable for 14 years, the fresh war loans, annually charged upon (that is, till the end of the year 1820,) and the war taxes, shall lessen the unapproat the expiration of those 14 years the loan priated residue of those taxes. But, ale of 1807 will have been wholly redeemed tbough the supplementary loans will proby the operation of its own sinking fund, gressively increase, yet it will appear that and consequently the 1,200,0001. war taxes the whole amount to be raised by loan 80 pledged will then be liberated, and so in in any one year for the period of 20 succession with respect to the loans of the years, (supposing the war so long to contifollowing years, each of which will mort- nue) or, in other words, that the combigage for 14 years its corresponding portion ned amount of the war and supplementary of the war taxes. It will be seen that this loans, will only in one year exceed by system may be carried on for 7 years from more than 5,000,0001. the sum which will, 1807, without pledging any part of the on the principles assumed in this plan, be property tax; as the whole charge on the applicable in the same year to the reducwar taxes in those seven years, will amount|tion of the national debt. Calculations to no more than 9,800,0001. The war du- of this nature are indeed liable to be varied ties of customs and excise; exclusive of the by fluctuations in the price of the stocks. property tax, are estimated at 9,500,0001., But on the whole, there seems no reason and it may be reasonably expected that the to doubt, that although the sums to be produce in the course of the next7 years will borrowed in the latter part of the abovebe raised to 9,800,0001. I shall take an op- mentioned period of 20 years, should portunity hereafter of stating the other mea- the present war so long continue, might sures to which it is proposed to have re- unquestionably appear large; yet their efcourse, in order to prevent the necessity of fect upon the money market will always pledging the property tax beyond the period be sufficiently counteracted by the large for which it is now imposed, viz. the con- amount to be paid off within the same tinuance of the present war.-This part year, by the operation of the sinking fund, of my calculation is framed on the suppo- in the manner, and with the limitations


which I shall presently explain.--And this, I be the first effect of the system I have I trust, will prove a most satisfactory arti- the honour to propose ; in the course of cle of information to the committee. the next three years no new taxes will be For, if we look back to the loans of last imposed, but on the contrary, a surplus of war, we shall find that in one year (1797) the the annuities already mentioned will readdition made to the public debt, that is main applicable to the service of subseto say, the excess of the sum borrowed quent years. With respect to the second above the sum redeemed by the sinking period of seven years commencing with fund in that year, amounted to the enor-1810 and ending with 1816, the charge mous sum of 40,000,0001. money capital ; occasioned by the supplementary loan in and that on an average of the last 14 years 1810, will be 133,333l.; in 1811, 106,6661. ; the addition to the public debt amounted and will then increase progressively in to 15,000,0001. annually; whereas under each year, till in 1816, 640,0001. will be the system which I shall this night have wanted. For these charges provision the honour of proposing to the committee, might be made by raising taxes to the should the war be protracted till the close amount required in each year; but as this of the year 1826, the addition to the pub- mode might have the appearance of a delic debt will in no one year, except the last sire to shift the burthen from the earlier so (1823), exceed the sum of 5,000,0001., as to make it fall with disproportioned and on an average of the 20 years from pressure on the latter years of the period, 1807 to 1826 inclusive, will fall below the it has been thought more advisable to take

of 4,000,0001. annually, - It is an average in order that the pressure may proposed to raise these supplementary be evenly diffused over the surface of the loans according to the system pursued since seven years. The result of this average is, the year 1792. A sinking fund of one per that it will be necessary to raise the sum cent. upon the nominal capital will be ad. of 293,000l. annually by new taxes, for ded to the interest on these loans, and the the period of seven years, from 1810 to charge so created will be provided for by 1817.---I am confident, sir, that the comimposing new taxes, or by the falling in of mittee participates with me the satisfacannuities.-The sum requisite to defray lion I feel at being enabled to make so the interest and sinking fund of those satisfactory a statement, That at this supplementary loans will in the present time, sir, at the commencement of the year (1807) be 13,335l.; in 1808, 93,3351.; tifth year of a war, the most expensive and so on progressively increasing in each in its progress and the most important in year. But in considering the mode in its consequences that this country has which provision is to be made for those ever carried on, we bave in our hands the charges, it will be convenient, for reasons means of providing for an annual extrathat will hereafter present themselves to the ordinary expenditure of 32,000,000l. with, committee, to divide the whole period of out imposing any additional burthen for 20 years into three successive periods the next three years, and with only the of three, seven, and ten years.--With comparatively trifling addition of 293,0001, respect to the first period of three years annually for the seven subsequent years, is from the present time, the amount of taxes surely a statement of which the house and required in 1807 will be 13,333l. ; in 1808, the country may be justly proud. And I 93,333l. ; and in 1809, 173,333l.; or the trust, sir, that I shall not incur the charge amount required in the whole three years of being too sanguine in my expectations, will be 279,9991.; but in the present year when I stale my belief that this annual adannuities will fall in to the amount of dition of 293,0001. will in all probability 15,5151.; and in 1908 to the amount of be considerably diminished by the spring, 370,0001., making together the sum of which will be given to consumption by the 385,5151.-The amount of these annuities relief afforded to the public from addibeing therefore more than sufficient to dis- tional taxation, and which will operate to charge the interest, &c, upon the supple- the increase of the existing revenue, and mentary loans to be contracted for within by the further increase in the produce of the period of three years, the committee the existing revenue arising from improvewill hear with satisfaction, that for those ments in the mode of collection, which three years not a shilling of new taxes the relief from additional taxation will whatever will be imposed upon the coun. tend greatly to facilitate.It is, however, try. [A loud cry of hear! hear !] This will sufficient to have shewn, that provision

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