debt redeemed in that year. This ar- fect of such an arrangement would be to rangement would not interfere with the consolidate the remainder of the war taxes commissioners for the Redemption of the with the general Debt, and to incorporate Debt, because they would still have a large the Sinking Fund upon it with the old Sinksum to bring into the market, which would ing Fund. There would be then no fund keep up the price of stocks. It was one by which they should be enabled to equalthing to divert the fund in the hands of the ize the Peace Establishment with the Excommissioners to this purpose, and another penditure. The Surplus of the Consolidato apply the interest of the suns redeemed ted Fund would be 3,500,000l. the Land in the year to the same end. The effect and Malt Tax, 2,750,000l. and the Lotof such a system would be, that the debt tery 450,000l. so that taking the Peace would remain stationary during a war, but Expenditure at fifteen millions, at the lowthat the Sinking Fund would again be pro- est, or at twenty millions, the sum to be progressive towards the final redemption of vided would in the first case be 8,300,000l. the debt on the conclusion of peace, whilst and in the 'ter 13,300,000l. The system the system of the noble lord would pro- of raising money by double Loans, resemduce a declining Sinking Fund after it had bled the usurious terms upon which a disarrived at its maximum. By the tables of tressed man raised money to defray the the noble lord it appeared that the Sinking interest of sums borrowed antecedently. Fund was in the present year 8,515,0427. When the noble lord erected his superstruc and that it would be in the year 1811, ture of two stories on such a basis, he 11,140,2747. or 140,000l. more than the might as well have reared his castle to as loan of that year. If this principle, there many more, like the Indian Pagoda, and fore, of which he was not the parent, though by borrowing the interest of the interest of he felt it his duty to mention it as one his Supplemental Loans have carried his mode of proceeding, were to be acted up- principle to its ultimate point. It was ceron, and the government would go on for tainly a most satisfactory consideration, that four years, it would exhibit the country to the noble lord and those who acted with the enemy in that proud situation in which him, now admitted that war might be mainit might carry on the war for any number tained for twenty years, without adding of years without increasing its debt, and greatly to the existing burthens of the counat the end of such war might revert try. What he had already stated, would 21 millions of War Taxes to the country, save him the necessity of examining the which would be available to any future fifth head of comparison, upon which he war. According to the tables of the no-had proposed to state his sentiments, nameble lord it appeared, that taking credit fly, the comparative state in which the counfor the annuities that would fall in of try would be placed by the noble lord's and 496,0061. and including the taxes proposed the present system. He had made out a by the noble lord, amounting to 2,051,000l. good case, that the system by single Loan, there would be wanted but the sum of with the ordinary Sinking Fund of one per 496,810l. to provide for the loans of 18 cent. on the capital borrowed, would anmillions in each of these four years, and as swer every object proposed by the noble the noble lord had stated, that it was not lord in the course of 20 years, and that from any inability to discover new sources the system of double loans was in the last of taxation, that he brought forward his degree usurious. The noble lord had system, there could be no difficulty in mak- dwelt much on the necessity of preserving ing a provision to that amount. These faith with the Stockholder, and he agreed two plans were not of his production; but with him that, though the Stockholder had as that of the noble lord seemed to him to no right that considerations for him should be fraught with ruin to the country, he had fetter the decisions of parliament, he yet thought it his duty to point out how he had a considerable claim on the attention could escape from the difficulties of his of that house. But the plan of the noble system in pledging the war taxes. The no-lord was unsecured both with respect to ble lord's tables stated, that the excesses of the Sinking Fund at the close of the war, which would amount to 9,900,000l. might be applied to setting free so much of the war taxes. This he admitted; but the ef the Stockholder and the public, because, by his own statement, there would be a defalcation in his Sinking Fund in the last ten years. The relief would be given to the Stockholder in the first ten years, ra ther than in the last, as, after the year 1820, his Sinking Fund would be declining; and in the year 1826, the amount of the debt would exceed the aggregate of his Sinking Fund by 6 millions. The Stockholder would prefer a Sinking Fand of 11 millions, and a loan of 12 millions, to a Sinking Fund of 26 millions, and a loan of 32 millions, which would create a capital of from 50 to 60 millions. However the noble lord might mask his principles under the machinery of this bill, the inachinery was calculated to take the money out of the pockets of the country, and to dilapidate its resources-He bad thought it his duty to submit his views on this subject to the house, not with any intention of derogating from the merit of the noble lord's plan, for he felt a sincere respect for that noble lord, and he felt the reverse of any wish to detract from the value of his proposition. But though he had explained at some length his objections to the plan of the noble lord, he was still anxious to submit them in a more precise form to the house, in the shape of Resolutions. He had as high an opinion of the resources of the country as the noble lord; and he was happy to receive from the noble lord on a former night, his liberal testimony, not only to the extent of the resources of the country, but to the transcendent merits of the great statesman who had laid the foundation of the system which had been so strongly fortified by the vigorous financial measures adopted by the noble lord last session, as well as by the efficient operation of the measures instituted by a noble member of another house (lord Sidmouth) at the conclusion of the late war, and at the commencement of the present. With this system the brightest hopes, and best future prospects of the country were intimately which were rather below than over the truth. If he had then stated what the noble lord did now, that the war might be carried on by the system of double loans without any great increase of the public burthens, he might have been open to animadversion, but certainly his nerves were not equal to that statement. He had then only to submit his Resolutions to the house, which he hoped they would receive with the same indulgence with which they had heard him. He offered them rather as his objections to the system of the noble lord, than as principles upon which he should be disposed to found any system. If they were incorrect, the noble lord would be able to expose the fallacy of them.-The noble lord then concluded with moving his first Resolution, proposing that the debate should be adjourned to Monday next.-The following is a copy of the said Resolutions. No. I. "That it is proposed by the New Plan of Finance, that the annual excesses of the present Sinking Fund, above the interest of the debt charged upon it in every given year, should be declared to be at the dispo sal of parliament, and applicable to the public service. And it appears that the aggre gate produce of the said excesses, between the years 1816 and 1826, will amount in the whole to 11,121,9387. That annuities to the amount of 685,5157. will fall in between the years 1807 and 1826. That it is proposed by the New Plan of Finance to charges on the aggregate produce of the said excesses of the Sinking Fund, and upon the said annuities the interest and Sinking Fund of 201,200,000l. Supplementary Loans, and to impose in aid of the said aggregate produce, between the years 1810 and 1816, new Taxes to the amount of 2,051,000l. That in be provided for, it is proposed by the New addition to the Supplementary Loans so to connected. He had said in a former sesPlan to raise War Loans to the amount of sion, that, as far as a powerful navy, a pow-210,000,000l. on the credit of the War erful army, though not so powerful as un- Taxes, amounting to 21,000,000l. That the der better and wiser regulations it might War and Supplementary Loans of each year have been; and as far as legitimate, stea- added to so much of the War Taxes as may dy, and unbounded resources were con- remain unmortgaged, will produce in each cerned, no country had ever been handed over by any ministers to their successors in lions. That in order to raise the said Sum of year respectively the sum of thirty two mila more triumphant situation than this coun32 Millions in each year, without mortgagtry at the late change. Whatever might ing the War Taxes, there would be requir be the want of authenticity in the state-ed, in addition to the 21 Millions of War ment, as coming from him, he had met with a considerable personal rebuke. But he had to express his gratitude to the noble lord for bearing out all his statements, VOL. VIII. Taxes, an annual Loan of 11 Millions only. That without any mortgage upon the War Taxes, an annual Loan of 11 millions might be provided for, for nearly 19 years, by the 3 B application of the same funds, viz. the annuities, amounting to 685,5151. the excesses of the Sinking Fund, amounting to 11,140,2741. and the New Taxes intended to be imposed by the New Plan, amounting to 2,051,000l. on which the Supplementary Loans are to be charged." No. II. "That the proposed System of Finance proceeds gradually to mortgage for 14 years the whole of the War Taxes for the Interest of Loans in War. That these Taxes are Suppose a Peace Establishment at Decrease of Debt in 20 years, raising Amount of the Money Capital of the Public Debt under the New Plan is, 364,993,722 The amount of ditto will be in 1826. 455,537,932 Increase by New Plan in twenty years 90,544,210 If the War Taxes were mortgaged, then Total Increase of Debt by New Systhere would remain tem.... 185,894,667 EFFECT OF PRESENT PLAN ON THE SINKING FUND. Amount of Sinking Fund under the present System on the Public Debt is 8,515.042 ..2,750,000 Lottery... 450,000 6,700,000 18,610,839 in 1807... Amount of Ditto will be in 1826.... 27,115,881 ....... 11,000,000 220,000,000 cover a War Expenditure of....... 32,000,000 There would be wanted in each year in aid of the 21 Millions War Taxes, a Lon of................. mounting in 20 years to...... NEW PLAN. Amount of the War Loans for 20 years 210,000,000 Ditto of Supplementary Loans for ditto 204,200,000 years....... Amount of Sinking Fund under the will be, in 1826..... Increase in twenty years....... tem..... 26,901,360 17,966,318 So that the New Plan gives only..... 26,901,360 Sinking Fund on a Debt of 455,557,992, whilst the present System would give the larger Sinking Fund of 27,115,881. on the smaller Debt of 270,443,305. The proportion of the Sinking Fund to the whole Debt will be under the present plan in 1826 above one-tenth. The proportion of the Sinking Fund to the whole Debt under the New Plan will be in 1826 about one-seventeenth. The Sinking Fund under the present plan above stated, at 27,115,8811. continues to increase at compound interest after the year 1826 till the Annual amount of Loans by the new plan on a whole Debt is redeemed. 90 Years Average Charge as above under the present System.... 14,666,660 Charge under the New Plan for the War Taxes mortgaged as above for War "That the Ways and Means proposed by the New Plan to prevent the necessity of imposing new Taxes to any considerable Amount, viz. the expiring Annuities, toge ther with the excesses of the Sinking Fund, above the interest of the unredeemed Debt, are equally applicable pro tanto, to mitigate their increase under any other mode of raising Loans which may be decided on. The means proposed by the New Plan of defray ing the Interest and Sinking Fund of the Supplementary Loans are as follows: Produce of the Excess of the Sinking Fund between 1816 and 1826, above the interest of the unredeemed Debt..... Applicable by the falling in of Annuities. New permanent Taxes, proposed by the New Plan to be raised between 11,122,809 683,092 1810 and 1817, to the Amount of.. 2,051,000 Total........ 15,856,861 Charge of Supplementary Loans, Annuities not deducted.. Ways and Means as above..... 14,296,388 13,856,000 "That the comparative effects which will be produced on the public income by the two systems, on return of peace, and on the formation of a peace establishment are as follows: UNDER THE PRESENT PLAN. There would be no charge whatever upon any part of the War Taxes. The whole twenty-one millions would remain free. The Property Tax, or whatever portion of the other War Taxes were not required towards making an adequate provision for the peace establishment might be immediately remitted, leaving that resource unpledged and available on the recurrence of war. UNDER THE NEW SYSTEM. When peace takes place, a considerable part, if not the whole of the War Taxes, will have been mortgaged. In the latter case there will only remain a clear revenue of 6,700,000l. immediately applicable to support the charges of a peace establish ment. It appears that in 1806 the excess of the War Sinking Fund will be 9,967,2831. If this sum shall be then preferably applied to liberate a part of the Property Tax mortgaged for the War Debt, the remainder of the Property Tax, and all the War Taxes, will become Permanent Taxes, and Part of the Consolidated Fund, and be mortgaged like the other parts of that Fund, for the redemption of the War Debt, and the pre Remains to be provided for..... 440,388 sent Debt thus consolidated into a Common Charge for the total amount of Loans, at the rate of 11,000,000l. a year, under the present system, at 733,3331. for interest and Sinking Debt, and the deficiency on the Peace Establishment must be provided for either by fresh Taxes, or fresh Loans. No VIII. In four years, therefore, from the present time, no new Taxes will be required (the data remaining the same), however long the will remain free at the close of the War, War may continue; and the War Taxes when the Sinking Fund will resume its pro by the Commissioners being continued in the mean time to the full amount of the "That the sum of 11 Millions a year, required in aid of the 21 Millions War Taxes, to complete the War Expenditure of 32 Millions may be raised (should the principle of applying the excesses of the Sinking Fund to the Public Service be decided on) accord-gressive operation; the purchase of Stock ing to the following mode, without mortgaging the War Taxes, or rendering new Taxes of any materially greater amount necessary than it is proposed to lay on by the new System, and without making so considerable an addition to the Debt, as will be made should the new System be carried into execution. As the Charges upon a Loan of Eleven Millions would in each year amount to 733,3331. if it should be thought fit, in aid of the Annuities, to raise only the precise amount of Taxes proposed by the New Plan to be imposed in the first ten years, until the excesses of the Sinking Fund shall arise in 1816, the difference between the above Funds and the Annual Charge of 733,3331. (amounting on an average to 489,6821. a year), must be added, as it arises, to the Loan of the Year, the Interest and Sinking Fund thereon, amounting to about 33,000l. a year, to be defrayed, in the first instance, out of the Consolidated Fund; and to be afterwards replaced out of the Excesses of the Sinking Fund as they accrue. No. IX. "That nearly the same results may be produced by determining, that, when the Loan of the Year in war does not exceed the amount of the Sinking Fund in the said year, instead of making provision for the interest of the said Loan by new Taxes, the same shall be provided for by and out of the interest receivable on the amount of Stock in that year redeemed by the commissioners of the National Debt; in which case the amount of Debt unredeemed will continue stationary during war. The Sinking Fund is at present 8,515,042 It will be in 1811 11,140,274 Sinking Fund.-That the Charge for four Amount of Debt in 1826, by New 455,517,932 Ditto, in 1826, by this Plan........ 369,590,887 Difference of Debt in favour of this Plan.... And no War taxes are mortgaged. 86,147,043 "That the expence of raising any given amount of Loan on the present system, viz. by a single Loan with a Sinking Fund of one per cent. as compared with the principle of the New Plan of raising the same amount by double and concurrent Loans: the one raised upon a Fund of ten per Cent. for Interest and Sinking Fund; the other raised upon a Fund of six per cent. for Interest and Sinking Fund, calculating the payments on account thereof from the commencement to the final liquidation of the said Loan, is as follows, the Sinking Fund, in both cases, being taken on the money instead of the nominal capital. Suppose 12,000,000l. to be raised, |