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may be made for ten years continuance of the whole national debt at once would be war, without imposing taxes in any one productive of something like national year to a greater amount than I have al- bankruptcy, for the capital being returned ready stated. And it must again be re- suddenly into the hands of the holder, marked, that if peace should occur at an without any means of disposing of it, that earlier period than the ten years here sup- capital would be equivalent almost to noposed, the burthens would of course be thing, while the interest he had before proportionally diminished; no further derived from it would be altogether extinsupplementary loans would then be requi- guished. The other evils which would red; the portions of war taxes then pled. arise from, and which must serve to dea ged would gradually fall in; those not monstrate the mischievous consequence of, pledged might at once be repealed, and a prompt discharge of the national debt, other resources would present themselves I shall shew presently.--Different arrangefor affording ease to all our financial ope- ments were adopted in the further prorations. Having gone through the two tirst visions inade on the subject of the sinking periods, I shall now proceed to the third.fund in 1792 and in 1802. By the first the But before I enter upon it, I must beg leave sinking fund of one per cent. which was again to call the attention of the commit- thenceforward to be provided for every tee, to the subject of the sinking fund, new loan, was made to accumulate at which during this period will become more compound interest until the whole of the immediately applicable to the public ser- debt created by such new loan should be vice. At 'the first establishment of the extinguished. And by the second arsinking fund, the amount appropriated to rangement all the various sinking funds the reduction of the debt bore so small a existing in 1802 were consolidated, and proportion to the total capital of the debt, the whole were appropriated to accumuand to the general extent of our money late at compound interest, until the disa transactions, that it might hardly have ap- charge of the whole of the debt, also expeared necessary to take any precautions isting in 1802. But the debt created since for preventing the inconveniences which 1802, amounting to about 100,000,0001. might at a future period arise from the too of nominal capital, is still left subject to rapid reduction of the debt, and too great the conditions of the act of 1792, which proaccumulation of floating capital in the vides sor each separate loan a sinking fund money market. Yet, with a view both to of only one per cent. on the nominal capithese inconveniences, and to the holding tal.- The plan of 1802, engrafted on the fore out a prospect of some relief to the public mer acts of 1786 and 1792, provided for the from taxes within a moderate distance of still more speedy extinction of the debt time, the accumulation of the sinking fund to which it applied. But it would post

compound interest was limited to the pone all relief from the public burthens extent of 4,000,0001., and after it should to a very distant period (computed in have reached that sum (which it was then 1802 to be from 1834 to 1844); and it computed would take place about 1808) it would throw such large and dispropora was thenceforward to be applied to that tioned sums into the money market in the extent only, leaving the accruing surplus at latter years of its operation, as might the disposal of parliament.--The reasons produce a very dangerous depreciation of which induced Mr. Pitt to fix this limita- the value of money. Many inconveniention are obvious. I need hardly press ces might also arise from the sudden upon the consideration of the committee, stop which would be put to the application all the evils likely to result from allowing of those sums when the whole debt should the sinking fund to accumulate without have been redeemed, and from the no any limit; for the nation would be expo- less sudden change in the price of all sed by that accumulation to the mischief of commodities which must follow from tahaving a large portion of capital taken at king off at one and the same moment, once out of the market without any ade- taxes to an extent probably then much exquate means of applying it, which would ceeding 30,000,0001. The fate of merof course be deprived of its value. This chants, manufacturers, mechanics, and evil must appear so serious to any man every description of dealers, in such an who contemplates its character, that I have event, must be conteroplated by every no doubt it will be felt, however paradox-thinking man with alarm; and this applies ical it may seem, that the redemption of to my observation respecting a national

bankrupicy, for should the national debt ger siuking fund will be applied to the rebe discharged, and such a weight of tax- demption of the present debt, until the ation taken off at once, all the goods re- period of its final extinction, than would maining on hand would be, comparatively have been applied during the same period speaking, of no value to the holders, be- by the effect of the present system. An cause having been purchased or manufac- amount also equal to the present debt will tured while such taxation prevailed, they be redeemed at a much earlier period by must be undersold by all those who might the proposed plan, than by the existing manufacture the same kind of goods after system; and an amount equal to all fusuch taxation had ceased. These objec- ture loans to be raised according to this tions were foreseen, and to a certain de plan during the continuance of the war,

gree acknowledged, at the time when the will, in any supposition of a rise in the - act of 1802 was passed: and it was then funds, always be redeemed very consi

answered, that whenever the danger ap- derably within 45 years from the date proached, it might be obviated by subse- of the creation of every such loan. It quent arrangements.-It appears, there will easily be seen that the result will in fore, highly desirable that a plan should any case be that of a full compliance with be adopted which may remedy these in the provisions of the act of 1792. Thus conveniences, if it can be done without will parliament be enabled to afford ease injury either to the present or future into the public, and relief from taxation, in terests of the stock-holders, and without conformity to the principle of the act of retarding the discharge of the existing 1786, without violating in the smallest depublic debt beyond the period already Igree, the principles of the subsequent acts prescribed by parliament. This it is con- of 1792 and 1802, or trenching upon any ceived may be effected by rendering the right or interest enjoyed by the public creoperation of the sinking fund more equal ditor.-It remains now to shew what will in its progress, by increasing its present be the periods at which these arrangepowers, and by diffusing over a greater ments will come in aid of the means of number of years these extensive effects defraying the public expenditure during which would, according to the present the third period of 10 years, supposing the system, be confined to the very last pe- war so long to continue. The provision riod of its operation. The arrangements made for the first and second periods, is proposed for this purpose are founded in independent of any measure respecting the part on calculations drawn from the in. excesses of the present sinking fund. creased benefit which will have been gi- Those excesses will not, according to this ven to the stockholder, by applying a sink- plan, become available in respect of the ing fund of five per cent. on the money present debt till the beginning of 1817. capital, instead of oue per cent. on the In respect of the debt created by the new nominal capital, to so large a proportion supplementary loans, the excesses will not ! of the loans of the first ten years. It is be available until their sinking fund of one proposed in return for this advantage, that per cent. on the nominal capital, shall have when the present sinking fund shall have accumulated to an amount equal to the inso accumulated as to exceed in its amount terest of such part of those loans as shall the interest of such part of the present then be unredeemed. The whole sinking debt as shall then remain upredeemed, the fund created in respect of the debt charexcesses of the sinking fund above the in-ged upon the war taxes, must of course terest shall be at the disposal of parlia- during the war be applied invariably to ment: but that these excesses shall never the redemption of that debt, in order to be made available to such an extent as effect its extinction within the period of would either prevent the redemption of a 14 years, as above explained, and to sum equal to the now existing debt, in as set free such portions of those taxes as short a period as the same would be paid must be applied to the charge of fresh off by the operation of the present system, loans to be raised in the same manner so or postpone the final redemption of any long as the war shall continue. No exfuture loan beyond the 45 years limi- cesses of the war sinking fund could thereted for that purpose by the act of 1792. fore be available during the war, but on the And in this way a considerable increased return of peace there could be no objec. advantage is given to the stockholder. By tion to the consolidation of the war sinking the operation of the proposed plan a lar- fund with the sinking fand of the present

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debt, and to the leaving at the disposal of which we shall be enabled to release the parliament the excesses of such sinking Property tax, at the expiration of the term fund, so consolidated, above the interest of for which it is already pledged, that is, at the war debt, and of the present debt, the end of six months from the ratification which would in like manner, be consolida- of a definitive treaty of peace. I have ale ted for this purpose. These distinctions ready shewn that the amount of war taxes between present debt, war debt, and pledged in the next seven years will be supplementary debt, are however, meant|9,800,0001. a sum which it may be reato be preserved, only, by keeping sesonably expected the war duties of excise parate accounts of the payments made and customs will be sufficient to supply. from each of the sinking funds; in order Should peace therefore take place in the that the operation of the plan may dis- course of seven years from the present time, tinctly appear. But it is intended that no part of the property tax will have been in practice the whole of the present debt pledged. Should peace take place between shall be considered as forming one general the end of the seventh and of the tenth mass of debt, with the future war debts and year from the present time, that is, between supplementary debts, as they are succes- January 1814, and January 1817, part of sivels incurred; and that the ditlerent the property tax will have been applied to sinking funds shall be applied by the com- the purposes of this plan, but it may be missioners for the reduction of the na- released immediately on the conclusion of tional debt indiscriminately to the purchase peace, by extending that principle to the of any part of these dehts. From what has excesses of the sinking fund of the war debt been said, it will easily be seen that this which I have already stated it is intended plan will effectually provide for the present to apply to the excesses of the present expenditure, during the whole of the se- sinking fund. In 1817, the excesses of the cond series of ten years. I have already present sinking fund begin to arise, and mentioned, that with respect to the pre- when combined with the excesses of the sinksent debt the excess of sinking fund above ing fund of the war debt will be amply sufinterest, calculated on the present price of ficient to redeem, on the return of peace, stocks, will become available in the year any part of the property tax that nay

have 1817: But the whole of these excesses will been pledged.-From the length to which not on that calculation be wanted for the iny observations have already extended, I purpose of carrying on this plan, even sup- feel very reluctant farther to take up the posing the continuance of the war for the time of the committee; but I must beg whole of the second series. A part only leave to trespass upon their attention, while need on that supposition be taken in each I briefly recapitulate the beads of the syçe year, and the remainder will be carried as tem, which I have had the honour of deat present in aid of the accumulation of the tailing to them. We shall, in the first place, sinking fund. The result of this opera- by this plan be enabled to provide for an tion, with respect to these ten years will extraordinary expenditure of 32,000,0001.; then be, (supposing the war to continue so|(and here I wish most particularly to imlong) that no new taxes whatever will be press upon the minds of the committee, that required in the whole of this period. It the plan I have submitted undertakes to proappears hardly necessary to carry these vide only for an expenditure of 32,000,0001.: calculations beyond the supposition of 20 should any further charge arise, that charge years contivuance of the present war. But must under this, as under any other system to any one who considers the effect which of finance, be productive of additional must be produced on our finances by the in- burthens ;) but, sir, we shall by this plan termediate operations here described, and be enabled to provide for an annual extraby the proportion which the sinking fund ordinary expenditure of 32,900,0001. withwill then bear to the unredeemed debt, it out imposing any additional burthen on must be obvious that after that period 10 the public for the next three years, and considerable financial dificulty is likely to should the war so long continue, for the arise.--I shall now, sir, proceed to that seven subsequent years to that period, with point, which, if I may be allowed to judge the compartively trifling addition to from the feeling expressed when I before the taxes, of 293,0001. annually ; but stated the circumstance, will prove an ar- sbould the war be still further protracted, ticle of most satisfactory information to should it even continue for ten years bethe committee, viz. to explain the mode by yond the two periods I have already mentioned, we shall have the means of provi- the advantages which it offers.--Important ding for an expenditure of 32,000,0001. as the advantages are which this plan prewithout imposing on the public any addi- sents, both in the present relief which it tional burthen at all. And this relief, sir, affords in a season of great and unprecewill be obtained without the least injury to dented difficulty, and in the prevention of the interest of the stock-bolder; on the con- those future evils which the unlimited trary, an addition will be made to the sink- operation of the sinking fund must ultiing fund even in the present year; an mately occasion, yet its principal benefit amount equal to the present unredeemed consists in the impression which it must debt will be more speedily redeemed; the make both in this country and out of it, proportion which the sinking fund bears to where it will be seen that without any furthe unredeemed debt, and on which the ther material pressure on the resources of period of the redemption of that debt deathe country, and by a perseverance only in pends will be increased; and by a more its wonted exertions, parliament now finds equal distribution of the powers of the itself enabled to meet with confidence all sinking fund, those inconveniencies will the exigencies of the present war, to whatbe avoided which would necessarily arise ever period its continuance may be necesfrom the too great influx of money into the sary, for maintaining the honour and indemarket in the latter years of its operation. pendence of the empire.-Our enemy inIt is true indeed, sir, that a part of the war deed may still continue to consider our taxes will be pledged beyond the war, but subjugation practicable, while he thinks I have already shewn that the property our resources for war can be exhausted; tax inay under any circumstances be re- what neither diplomatic artifice, nor milileased at the end of six nonths from the tary power have been able to accomplish, ratification of the definitive treaty of peace, he may still look forward to as the result and by the application of the excesses of of the continued and aggravated pressure the sinking-funds of the present and war of taxation: but here too we possess the debts as they arise, the release of the other means of parrying the mortal blow, and war taxes will be considerably accelerated. defeating the favourite pursuit of insatiable -Such, sir, is the proposed plan of Finance ambition. If no interval of.repose is to be which his majesty's ministers have thought allowed to the harassed world, unless acdeserving of the serious attention of the companied by humiliation and by servihouse ; a plan resting on a foundation, the tude; if new schemes of aggression, consolidity and strength of which has been quest, and tyranny, are still to desolate proved by experience on the great re- Europe, it will be found that Great Brisources of the country; on the increased lain wants not the means to maintain the and increasing operation of the fund for contest to the last; that her resistance will the redemption of the national debt; ou be proportioned to the efforts that are emthe approved principle of raising the greater ployed to subdue her, and her exertions part of the supplies within the year, carried unremitted till peace can be obtained in to the extent to which it was last year, and consistency with her honour, her security, above all, on the constancy of a people re- and her independence. God forbid, sir, solved to omit no exertion; to be dismayed that any thing coming from me should be by no difficulty, and to shrink from no pri. so far misconstrued or misunderstood as to vation, which can be called for by the bo- convey an impression that I meant to connour and interests of their country.—The tend that any situation however prosperous, propositions which I have had the honour any system of finance however plausible, of submitting to the house, however im- any temptation to war, if such temptation possible it may be to guard against the ef- could be supposed for a moment to exist, fects of chance, and the mutability of should lead us to protract its evils longer events, are recommended by the most po- than we may be compelled to do by the sitive experience, and depend upon causes injustice of our enemy. Far from me be which have been already ascertained to be any such assertion or any such idea. Let constant and steady in their operation. our enemy employ his power in destrucIf the plan itself then be unobjectionable; if tion, if it shall continue to be so permitted; the reasoning be just; if the calculations to us it belongs to use the means with which and results should be found unexception- we are entrusted to protect and to save, able, we are justified in looking, if not defend ourselves from this wide-spreading with certainty, at least with confidence, to pestilence, and to support those to whom

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our assistance may yet be useful. Dis-ties of excise granted to his majesty by the claiming therefore every idea of employing 43 Geo. III. c. 81, and by the 46 Geo. III. the resources

we possess to protract the c. 42, shall be further granted and contievils of war, disclaiming entirely any in-nued, and shall be payable in such protention to assert that an improved system portions, and for such further terms as of finance ought to operate as a motive to may be directed by any act or acts of parimpair the resolution to which I trust we liament bereafter to be passed for defrayshall invariably adhere, of earnestly and in- ing the charge of any loan or loans tɔ be dustriously embracing every occasion that charged thereupon in manner bereinafter may serve to restore to the world the bless mentioned, that is to say:-That on every ings of peace, I may yet be allowed to say loan to be raised on the credit of the said that it will be not a little satisfactory to several duties, or any of them, and charged reflect that if we should again fail in our thereupon, there shall be set apart, out. future, as we have failed in our past at of the produce of the said duties and aptempts to accomplish that great work, we propriated to the consolidated fund of have amply the means of continuing the Great Britain, an annual sum equal to war, if war shall be unavoidable. It ten pounds per centum on the amount of nothing can bring our enemy to modera- the sum to be raised by every such loan, tion—if nothing will satisfy him short of out of which annual sum the interest and the destruction of all that remains of inde charges of the management of such loan pendence in Europe, it is consoling to resball, in the first instance, be defrayed, flect that if we cannot at once subdue our and a sum equal to the residue thereof present difficulties, we may at least sur- shall be paid in each year, by equal quarvive them. (Hear! hear ! J-By combi- terly payments, into the Banx of England, ning and applying the great resources which and placed to the account of the commissithe state of the country now affords, we oners for the reduction of the national debt, may at least hope from our efforts, that and shall be by them applied in the purif the devouring fame which already has chase or redemption of such public annuilaid waste the fairest portions of the world, ties, charged on the consolidated sund of should be still permitted to spread its de- Great Britain, as they shall deem most structive influence, blasting all that it expedient, until by the operation thereof an teaches, and threatening all that it ap- amount of capital stock of such annuities, proaches, we, through the excellence of equal to the capital stock created in conihe institutions under which we live, and sequence of every such lóan respectively, the blessing and protection of an over- shall have been purchased or redeemed; ; ruling Providence, may walk unhurt amidst and that whenever and so soon as such the conflagration, and transmit to our amount of capital stock shall have been posterity and the descendants of those so purchased or redeemed, the aforesaid continental nations which have been ac- annual sum shall be at the disposal of parcustomed to look and may again look to us liament." as the last bulwark and defence of liberty IT. “ That the several duties granted to and law, when invæded by tyranny and vio- bis majesty on the profits arising from prolence, the most important and sacred trust perty, professions, trades, and offices, by that it was ever the lot of man to guard the acts of 43 Geo. III. c. 122, 45 Geo. and preserve, the splendid inheritance we III. c. 15, and 45 Geo. III. 65, shall be have derived from our ancestors, the un- appłicable in like moner for defraying the diminished glory and independence of our charge of any such loan or loans, so long country, and last and best of all, the pure as the said duties shall continue payable by and unsullied faith and honour of the Bri.virtue of the said acts, and no longer." tish character and name. The noble lord III.“ That the total amount of any loan concluded with laying the following Reso- or loans to be so raised and charged shall lutions on the table, and proposed that the not exceed the sum of 16,000,0001. in any consideration of them should be adjourned one year, or of 210,000,0001. within 14 till Wednesday se'nnight:

years from this time." RESOLUTIONS.

IV." That any further or supplementary 1. “ That the several duties of customs loan or loans which may be necessary for granted to his majesty by 43 Geo. III. c. the service of any year beyond the loan or 76, by 44 Geo. III. c. 53, and by the 45 loans so charged as aforesaid on any of Geo. III. c. 39, and also the several du- the several duties abovg-mentioned shall Vol. VIII,

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