Lord Castlereagh,before he proposed to name ano–ther day for the consideration of the Fi–nancial Resolutions he had laid before the house, wished to take this opportunity of submitting three other resolutions which he proposed to bring under its consideration. He did not wish to enter into any detail that could provoke discussion or call for reply. His object was, simply to state the object of the new resolutions he meant to propose. He felt himself called upon to bring forward these resolutions, and par–ticularly in consequence of certain expres–sions which fell from an hon. gent. (Mr. H. Thornton), whose opinions were much looked up to on all subjects, but particu–larly on subjects of this nature. That hon. gent. had complained that his(lord C.'s) reso–lutions instituted comparisons between the noble lord's system and the old mode (Mr. Pitt's) of raising the expenses within the year, and not with either of the plans he proposed to substitute, and that this was not fair at a time when it was universally agreed that further taxation ought to be abstained from. Two of the resolutions he had now to propose, were to shew that the noble lord's plan would bear as little comparison with the modifications of it which he had proposed, as with the old system. The third resolution was to shew, that by the noble lord's mode of managing the sinking fund, more injury would be done to the stockholders, than by the former system, or either of the plans pro–posed by him. He wished to make a few verbal amendments in the resolutions now before the house, in order to put the house fully in possession of his views. Upon the fullest consideration, he saw no reason to alter the opinion he had at first formed of the noble lord's plan, and his objections to it were rather confirmed and increased, than diminished.—The further consideration of all the resolutions was then de–ferred till Monday fortnight. The whole of the Resolutions moved by the noble lord were as follow:
§ No. 1.—"That it is proposed by the New Plan of Finance, brought forward by the chancellor of the exchequer, that the annual excesses of the present sinking fund, above the interest of the debt charged upon it in any given year, should be de–clared to be at the disposal of parliament, and applicable to the public service. And it appears that the aggregate produce of 1005 the said excesses, between the years 1816 and 1826, will amount in the whole to 11,122,809l. (E.)*—That annuities to the amount of 683,062l. will fall in between the years 1807 and 1826. (K.)—That it is proposed by the New Plan of Finance, to charge, on the aggregate produce of the said excesses of the sinking fund, and upon the said annuities, the interest and sinking fund of 204,200,000l. supplementary loans (B.); 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. (C.)—That, in addition to the supplementary loans so to be provided for, it is proposed by the New Plan to raise war loans to the amount of 292,000,000l. on the credit of the war taxes, amounting to 21,000,000l. (C.)—That the war and supplementary loans of each year, added to so much of the war taxes as may remain unmortgaged, will produce in each year respectively the sum of 32,000,000l. (B.)—That, in order to raise the said sum of 32,000,000l. in each year, without mortgaging the war taxes, there would be required, in addition to the 21,000,000l. of war taxes, an annual loan of 11 millions only.—That, without any mortgage upon the war taxes, (supposing the charge and the permanent provision for the interest and sinking fund of the same, to arise proportionably in the re–spective years) an annual loan of 11 mil–lions might be provided for, for nearly 19 years, by the application of the same funds; viz. the annuities, amounting to. 683,062l.; the excesses of the sinking fund, amounting to 11,122,809l.; 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. 2.—"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 not generally of a nature which can, with propriety, be so pledged as se–veral of them (such as the tax on tonnage and exports, and the duties on tea and on spirits) must probably either be modified, or reduced, on a peace; whilst it is proposed by the said Plan, that the property tax, amounting to 11,500,000l. should in
* Note.—The letters refer to the tables in the printed papers, in which the price of the 3 per cent. stock is taken at 60.
1006
that event be entirely remitted; in which case (exclusive of any mortgage at the time affecting the residue of the war taxes) the portion of them which might be continued, without material prejudice to the public revenue beyond the war, must be wholly insufficient to equalize the revenue with the peace expenditure.
§ Suppose a Peace Establishment at £.15,000,000: If the War Taxes were mortgaged, there would remain,
| Land and Malt | £.2,750,000 |
| Surplus of Consolidated Fund | 3,500,000 |
| Lottery | 450,000 |
| £6,700,000-6,700,000 | |
| Annual Deficiency to be provided for by New Loans or Taxes | 8,300,000 |
| Supposing the Peace Establishment to amount to | 20,000,000 |
| The Deficiency, to be provided for, in like manner, would be | 13,300,000 |
§ No. 3.—"That the New Plan will re–quire loans to a greater amount, to be raised in each year, than would be required if the usual system of borrowing were per–severed in.
| By the present System, in order to cover a War Expenditure of | —.32,000,000 |
| There would be wanted in each year, in aid of the twenty?one Millions War Taxes, a Loan of | 11,000,000 |
| Amounting, in twenty years, to | 220,000,000 |
| Amount of War Loans, for twenty years (B) | £292,000,000 |
| Ditto of Supplementary Loans, for ditto (B) | 204,200,000 |
| Total | £496,200,000 |
| Total Excess by the New Plan - £.276,200,000 | |
| The average capital to be annually raised by the New Plan is, | |
| Annual Amount of Loans, by the New Plan, on a 20-years' average: | |
| War Loan | £14,600,000 |
| Supplementary Ditto | 10,200,000 |
| Total by New Plan | 24,800,800 |
| Average Annual Excess by New Plan | 13,800,000 |
§ No. 4.—" That the comparative Increase of the Public Debt, which would be pro–duced by the two Systems, and the effect they will have on the proportionate amount of the sinking fund, by their operation in 20 years, is as follows:
§ EFFECT OF THE PRESENT SYSTEM,
§ As existing under 26, 32, 42 Geo. III. cap. 31, 55, 71.
| The Amount of Money Capital of the Public Debt is (by Table N.) in the year 1807 | £363,793,722 |
| The Amount of ditto will be, in the year 1826, supposing 11 millions raised in each year | 270,443,305 |
| Decrease of Debt in 20 years, raising 11 millions in each year | 93,350,417 |
| Amount of the Money Capital of the Public Debt, under the New Plan, is, in 1807, | £.364,993,722 |
| The amount of ditto will be, in 1826, | 455,537,932 |
| Increase by New Plan in 20 years | £. 90,544,210 |
| Decrease of Debt by Present System, as above | 93,350,417 |
| Increase of ditto by the New Plan | 90,544,210 |
| Total increase of debt by New System | £.183,894,667 |
| Amount of Sinking Fund, under the Present System, on the Public Debt, 1807, (N) | £.8,515,042 |
| Amount of ditto will be, in 1826 (N) | 27,115,881 |
| Increase of Sinking Fund in 20 years- | 18,610,839 |
| Amount of Sinking Fund, under the New System, is stated to be, in 1807 | 8,935,042 |
| Amount of ditto under the New System, will be, in 1826 | 26,901,360 |
| Increase in 20 years | £17,966,318 |
| Difference in favour of present System | 644,421 |
§ So that the New Plan gives only 26,901,360l. sinking fund on a debt of 455,537,932l.; whilst the present system would give the larger sinking fund of 27,115,881l. on the smaller debt of 270,443,305l. (N.)—The proportion of the sinking fund to the whole debt, would 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. (N.)—The sinking fund, under the present plan, above stated at 27,115,881l. continues to increase at compound interest, after the year 1826, till the whole debt is redeemed. —The Sinking Fund, under the New Plan, having attained its maximum of 28,155,358l. in the year 1820, descends to 26,901,360l. in the year 1826; and must continue to decline after that period, so long as the excesses shall be deducted."
§ No. 5.—"That an Increase of Charges for the interest and sinking fund of loans, for the 20 years, must take place under the New Plan, compared with the like charge, 1008 which would take place, were the present system persevered in.
| Annual Loan £ 11,000,000.;—Charge for Interest add Sinking Fund (L) | £. 733,333 |
| Amount of Loans for twenty Years, £. 220,000,000.—Charge for ditto (L.) | 14,666,680 |
| Charge of the Supplementary Loans, amounting in 20 years to £ 204,200,000. Expiring Annuities deducted (C) | £. 14,266,38 |
| War Taxes, mortgaged at the end of 20 years, which are to be liberated successively in the next 14 years after 1826 | |
| 21,000,000 | |
| Charge, as above, under the present System (L) | 14,666,660 |
| Charge under the New Plan, for Supplementary Loans only (G.) | 14,299,388 |
| Difference, exclusive of Charge of Distribution, as stated in Resolution 8. A. | 370,272 |
| War Taxes, mortgaged as above far War Loans, according to the New Plan | £. 21,000,000 |
| Ditto, according to the present System | Nil. |
§ No. 6.—"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, together 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 defraying 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 (F) | £11,122,809 |
| Applicable by the falling-in of Annuities | 683,062 |
| New Permanent Taxes proposed by the New Plan to be raised between 1810 and 1817, to the amount of (K) | 2,051,000 |
| Total | £13,856,871 |
| Charge of Supplementary Loans, Annuities not deducted (C) | £14,296,388 |
| *Ways and means as above | 13,856,871 |
| Remains to be provided for, exclu–sive of the charge of equalizing the Ways and Means, with the charge, so far as they do not arise propor–tionally within the respective years, | £439,517 |
* Vide Res. 8. A.1009
| Charge for the total amount of Loans, at the rate of 11,000,000l. a year, under the pre–sent System, at 733,333l. per annum, for In–terest and Sinking Fund; the Expiring Annui–ties not deducted (K) | £14,666,660 |
| As a Fund to supply this Charge, the Ways and Means, as above, for raising the Interest and Sinking Fund of the Supplementary Loans, may be applied, pro tanto | 13,856,871 |
| Remains to be provided for, in order to cover the charge, ex–clusive of the charge of distribution, as above | £. 809,789 |
§ It therefore appears, that the means re–quired to be applied under the New System, to defray the charge for Interest and Sink–ing Fund on the Supplementary Loans alone, would, with the addition of taxes to the amount of 370,272l., and the charge of distribution, as above, defray the total charges of the loans required to complete the fund of 32,000,000l. annually for war expenditure, without the necessity of any in-cumbrance whatever upon the War Taxes.
§ No. 7.—"That the comparative Effects which would 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 21 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 esta–blishment, 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 reve–nue of 6,700,000l. immediately applicable to support the charges of a peace establishment.—By table R. it appears that in, 1826, the excesses of the war and present sinking fund, will, if peace be then made, amount to 10,720,730l. 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 per–manent 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 present debt thus 1010 consolidated into a common debt; and the deficiency, on the peace establishment, must be provided for either by fresh taxes, or fresh loans."
§ No 8.—"That the sum of 11 millions a year, required in aid of the 21 millions War Taxes, to complete the War Expendi–ture of 32 millions, may be raised (should the principle of applying the excesses of the Sinking Fund to the public service be decided on) according to the following mode, without mortgaging the war taxes; without swelling the loans to be raised within the year to the inordinate amount of 32 millions sterling; without 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.
| The sum required as above, to provide for a loan of 11 millions per ann., for 20 years, is | £14,666,660 |
| The resources available, amount (exclusive of the charges of distribution) to | 13,856,871 |
| Deficiency | £809,789 |
§ The deficiency of 809,789l. exceeding on–ly by 370,272l. the charges for supplemen–tary loans, would remain an additional charge to he provided for, in addition to the charge of equalizing the ways and means with the annual demands within the respective years.—As the charges upon a loan of 11 millions would, in each year, amount to 733,333l., if it should be thought fit, in aid of the annuities, to raise, in the first 9 years, only the precise amount of taxes proposed by the New Plan, until the excesses of the sinking fund shall arise in 1816; the difference between the above funds, and the annual charge of 733,333l. may be added as it arises in the said pe–riod, to the loan of the year; the interest and sinking fund thereon being defrayed, in the first instance, out of the consolidated fund, till otherwise replaced."
§ No. 8.—(A.)"That the comparative ef–fects of the Plan in Res. 8. as contrasted with the New System, may be stated as follows:
§ FIRST CASE.—Supposing peace to take place at the end of the ninth year, that is, in 1815: 1011
| Capital borrowed in 9 years by New System. | |
| War Loans | £. 130,000,000 |
| Supplementary Loans | £. 30,200,000 |
| Total borrowed by New Plan | £. 160,2000,00 |
| Capital borrowed in 9 years by Resolution 8. | |
| Ordinary Loans, at 11 millions annually | £99,000,000 |
| To equalize Ways and Means with the charge, within the respective years, including the advances from the Consolidated Fund | 29,791,234 |
| Total borrowed by Resolution 8 | 128,791,234 |
| More capital borrowed by New Plan | £. 31,408,766 |
§ Debt remaining unredeemed at the end of 1815; also, Comparative Amount of Sinking Fund, supposing peace then to take place, the excesses of the war sinking fund in New Plan being previously deducted, in order to liberate the larger proportion of war taxes:
| By New Plan | 384,480,570— | 18,278,435 - 1/21 |
| By Res. 8. | 378,249,442— | 15,645,001 – 1/24 |
| More Debt by New plan. | £6,231,128 | |
| By New Plan, War Taxes pledged, and rendered permanent after the excesses of War Sinking Fund have been deducted | £9,517,749 | |
| By Resolution 8. War Taxes pledged | Nil. | |
| By New Plan, Loan raised in 1815 | 24,000,000 | |
| By Res. 8. Ditto, including a sum equal to the advances from Consolidated Fund | 17,019,360 |
§ In the above case no new taxes, beyond those to be imposed by the New Plan, will be required; as the excesses of the present sinking fund arising in 1816, will fully supply the permanent provision for the postponed charge of the loans raised in the preceding 9 years.
§ SECOND CASE.—Supposing war to con–tinue to the end of 20 years:
§ Capital to be raised by New Plan.
| War Loans | 292,000,000 |
| Supplementary Loans | 204,200,000 |
| Total borrowed by New Plan | £. 496,200,000 |
| Ditto, by Resolution 8, 11 millions in each year | 220,000,000 |
| To equalize Ways and Means up to 1815 | 29,791,234 |
| To equalize ditto up to 1826, supposing 500,000l. New Taxes (in addition to those proposed by New Plan) to be imposed in each of the 6 years successively from 1816 to 1821, both inclusive | 16,807,600 |
| Total Capital borrowed by Res. 8 | £. 266,598,834 |
| More Capital borrowed by New Plan | 229,601,166 |
§ Debt remaining unredeemed at the end of 1826; also, Comparative Amount of Sink– 1012 ing Fund, supposing peace then made, the excesses of the war sinking fund being previously deducted in order to liberate the larger proportion of War Taxes:
| By New Plan, in 1826 | 428,636,572—17,525,698—1/24 |
| By Res.8. in do. | 341,960,615—15,740,171-1/21 |
| More debt unredeemed by New Plan. | —. 86,675,957 |
| By New Plan, War Taxes pledged, and rendered permanent after the excesses of the War Sinking Fund have been deducted | £. 10,279,270 |
| By Res 8. War Taxes pledged | Nil. |
| By New Plan, loan to be raised in 1826 | 32,000,000 |
| By Resolution 8 | 11,000,000 |
§ There is, however, to be set off against the 10,279,270l. war taxes rendered per–manent by New Plan, the 3,000,000l. New Taxes to be laid on between 1816 and 1826, supposing the whole period to be one of war. In the event however of peace ta–king place between 1816 and 1821, these New Taxes, according to the period at which it shall happen, may be altogether dispensed with, or proportionably reduced. Whereas the amount of the war taxes, which will be pledged and rendered per–manent, even at the commencement of 1816, is 9,517,749l."
§ No. 9.—"That nearly the same results (viz. the having abstained from mortgaging the war taxes, and the having kept the loan of the year within moderate limits,) 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 provi–sion 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, redeem–ed by the commissioners of the national debt: in which case, the amount of debt unredeemed will continue stationary du–ring war.
| The Sinking Fund is at present (N) | £. 8,331,709 |
| It will be, at the close of 1810 | 10,956,941 |
§ In about 4 years therefore, from the pre–sent time, no new taxes will be required, (the data remaining the same) however long the war may continue; and the war taxes will remain free at the close of the war, when the sinking fund will resume its progressive operation; the purchase of stock by the commissioners being conti–nued, in the mean time, to the full amount of the sinking fund. 1013
| That the charge for 4 years Loan, as above, for 11 millions in each year, taking credit for 385,515l. Annuities, amounts to | 2,547,810 |
| Taxes required in each year, for the next 4 years | 626,952 |
§ The taxes so to be imposed exceed only by 496,810l. the total amount of New Taxes proposed by the New Plan to be imposed between 1810 and 1817; by which Plan the war taxes are at the same time progressively absorbed and pledged for the redemption of the loans raised upon them.
| According to this plan, the Debt would continue stationary throughout the war, at | 358,955,705 |
| Amount of Debt at close of 1826, by New Plan (N) | 428,636,572 |
| Ditto in 1826, by this plan | 358,955,705 |
| Difference of Debt in favour of this plan | £69,680,867 |
§ And no War Taxes mortgaged.
§ Any excess of annual expenditure above the 32 millions, is supposed in this, as in the New Plan, to be separately provided fox in the usual manner."
§ No. 9(A.) "The Comparative Effect of the above Plan (Res. 9.) as contrasted With the New System, may be stated as follows:
§ 1st Case.—Supposing peace to take place at the end of 7th year, 1813:
§ Capital borrowed in 7 years.
| By New Plan, War Loans | 98,000,000 |
| By ditto Supplementary Loans | 15,800,000 |
| Total borrowed by New Plan | 113,800,000 |
| By Res. 9, 11 millions in each year | 77,000,000 |
| More borrowed by New Plan | £. 36,800,000 |
§ Debt remaining unredeemed at the end of 1813; also Comparative Amount of Sinking Fund, supposing peace then made, the excesses of the War Sinking Fund in New Plan being previously deducted in order thereby to liberate the larger pro–portion of war taxes.
| By New Plan | £. 377,653,730 | 15,915,952 – 1/23 |
| By Res. 9. | 358,955,705 | 10,956,941 – 1/32 |
| More Debt by New Plan. | 18,698,625 | |
| By New Plan, War Taxes pledged and rendered permanent after the excesses of the War Sinking Fund are deducted | £. 7,773,921 | |
| By Res. 9. War Taxes pledged | Nil. | |
| By New Plan, New Taxes imposed | 1,172,000 | |
| By Res. 9, ditto | 2,547,810 | |
| By New Plan, Loan to be raised in 1814 | 20,800,000 | |
| By Res. 9. ditto in ditto | 11,000,000 |
§ 2d CASE.—Supposing peace to take place at the end of 14 years, 1820:
§ Capital borrowed in 14 years,
| By New Plan, War Loans | 210,000,000 |
| By ditto, Supplementary Loans | 94,200,000 |
| Total borrowed by New Plan | 304,200,000 |
| By Res. 9. 11 millions in each year | 154,000,000 |
| More borrowed by New Plan | £. 150,200,000 |
§ Debt unredeemed at end of 1820; also Comparative Amount of Sinking Fund, supposing peace then made, stated as in preceding case:
| By New Plan | £. 401,231,629 | 17,744,021 – 1/22 |
| By Res. 9. | 358,955,705 | 10,956,941 – I/33 |
| More debt by New Plan. | 42,275,924 | |
| By New Plan, War Taxes rendered permanent | £. 9,180,896 | |
| By Res. 9. War Taxes pledged | Nil. | |
| By New Plan, New Taxes imposed | 2,051,000 | |
| By Res. 9. ditto | 2,547,810 | |
| By New Plan, Loan in 1820 | 32,000,000 | |
| By Res. 9. ditto in ditto | 11,000,000 |
§ 3d CASE.—Supposing peace to take place at the end of 20 years, 1826:
§ Capital borrowed in 20 years,
| By New Plan, War Loans | 292,000,000 |
| By ditto Supplementary Loans | 204,200,000 |
| Total borrowed by New Plan | 496,200,000 |
| By Res. 9, 11 millions in each year | 220,000,000 |
| More borrowed by New Plan | £. 276,200,000 |
§ Debt unredeemed at end of 1826; also, Comparative Amount of Sinking Fund, supposing peace then made, stated as in the preceding cases:
| By New Plan | £. 248,636,572 | 17,524,698 |
| By Res. 9. | 358,955,705 | 10,956,941 |
| More debt by New Plan | 69,682,867 | |
| By New Plan, War Taxes rendered permanent | 10,280,000 | |
| By Res. 9. War Taxes pledged | Nil. | |
| By New Plan, New Taxes imposed | 2,051,000 | |
| By Res. 9. ditto | 2,547,810 | |
| By New Plan, Loan in 1826 | 32,000,000 | |
| By Res. 9. ditto in ditto | 11,000,000 |
§ That the improvidence of the mode of raising money, proposed by the New Plan, will best appear, if, instead of having the whole of the war taxes free upon a peace, as is the case by Res. 9. a portion of them equal to the amount pledged, and ren–dered permanent in 1826 by the New Plan, viz. 10,279,270l. should be then gi–ven over to the sinking fund, as it will stand by Resolution 9. in that year. The 1015 comparison of debt and sinking fund would then stand thus; the war taxes being equally mortgaged:
| By New Plan | £. 428,636,572 | £. 17,525,698 |
| By Res. 9. | 358,955,705 | 21,236,211 1/16 |
| By New Plan, more Debt. | £. 69,680,867 less Sinking Fund | £. 3,710,513 |
§ The same observation applies to both the preceding cases.
§ If the measure of imposing the 2,547,810l. new taxes, required by resolution 9. in the first four years, be objected to, and it be deemed expedient that the imposition of new taxes in the next three years be wholly abstained from, their commence–ment may be postponed till the fourth year, by simply confining the provision in the first 3 years to a sum sufficient to co–ver the difference between the eleven mil–lions to be raised, and the stock purchased within the year, by the sinking fund, that is, to the sum of 2,668,291l., the annual interest and sinking fund on which amoun–ting to 177,886l., will be nearly covered by the annuities which are to fall in, in the two first years. A small increase of tax–es beyond the 2,547,816l., viz. of 533,658l. will result from this temporary indul–gence in the following years; but, on the other hand, credit may be taken for the annuities, amounting to 298,092l. which are subsequently to talk in."
§ No. 9.—(B.) "That much prejudice and embarrassment is likely to result both to the interest of the stockholder, and to the money transactions of the country, from the large and rapidly increasing loans which must be raised, according to the New Plan, in each year of war, the annual amount of which, in the latter years of the operation (if to their estimated amount, viz. 32 millions, be added the sums which will be required for the service of Ireland, for subsidies, and other unforeseen expences, and for the progressive advance of charge upon any given establishment) will probably not fall short before the close of the period, of from 40 to 50 millions money capital; which, supposing the 3 percents. at 60, would require the creation of a capital of from 66 to 82 millions annually.—That the making of loans to such an inordinate amount (increasing in each year in a greater proportion than the sinking fund) must, by the great influx of new stock to be thus created, and sold in 1016 the market, have a tendency to lower the price of the public securities, and conse–quently to reduce the value of the property of the stockholder.—That the negociation of loans to so large an amount, and the augmented issues which will be required to be made from the exchequer in execu–tion of the said Plan, must lead to an ex–tension of the circulating medium of the country, to increased charges of manage–ment on the part of the public, and to the accelerated depreciation of the value of money, on the stability of which the inter–est of the stockholder, and those who may enjoy fixed rents, so peculiarly depends.—That the principle of placing at the disposal of parliament the excesses of the sinking fund above the interest of the debt unre–deemed, as proposed by the New Plan, is calculated to lead to a much more exten–ded diversion of the sinking fund from its application to the purchase of stock, than the principle proposed in Resolution 9. viz. that of applying in war, not the fund itself, but the interest of the stock redeemed within the year by the fund, as a provision for the loan of that particular year; inas–much as the latter only Proposes to derive aid from the operations of the sinking fund during war, awl only to the precise extent of the interest of the sums redeemed within the year, leaving the fund entire to resume its operation at compound interest, upon a peace; whereas the former Plan opens the excesses of the sinking fund to the ab–solute disposal of parliament, in peace as well as in war, "for such public services as par–liament may direct," without any other limitation than that a sum equal to the debt subsisting in 1802, shall be redeemed with–in 45 years from that period, instead of 24 years from the present time, as it would be reduced by the operations of the fund, as it now stands, under the provisions of the 42d Geo. III. cap. 71. thereby annually subtracting from the fund itself after the– year 1816, and rendering it, even in peace, a declining instead of a growing fund.— That the equivalent which, it is alleged, is to be given to the stockholder for so ex–tensive and permanent a disappropriation of the sinking fund from the redemption of the debt; viz. the additional 5 per-cent sinking fund on the war loans, cannot be deemed, for the reasons above stated, even in time of war, to operate as any compen–sation or equivalent whatever, as the value of his property is likely to be more injured by the unnecessary and improvident accu? 1017 mulation of loans in the market, than im–proved by the addition thereby made to the sinking fund of the year by borrowed capi–tal. But as the benefit (if it really were one) can accrue only during war, and must cease with it, the stockholder is called upon, for the temporary enjoyment of this question–able advantage (possibly only for a few months) to submit to have the sinking fund, which is now expressly pledged by the 5th section of the 42d of Geo. III. cap. 71. to the uninterrupted liquidation of his debt, large–ly diverted from that object even in time of peace, when no adequate public exigency can be alleged to justify the same; and when, from a variety of intervening causes, (at least there are no grounds upon which parliament can at this day safely conclude to the contrary) the interests of the stock–holder, as well as those of the public, may be best consulted, by suffering the accumu–lation of the sinking fund to proceed, as hitherto, at compound interest, in reduction of the national debt, and in con–formity to the provisions of the existing law."
§ No. 10.—"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 compa–red 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 sink–ing fund; the other raised upon a fund of six per-cent. for interest and sinking fund; calculating the payments on ac–count 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:
| Ten per cent. Interest and Sinking Fund on 12,000,000l. for 1 year | 1,200,000 |
| A like charge for 13 years more, at which time the Principal is redeemed | 15,600,000 |
| Total Payments | £. 16,800,000 |
§ To cover the interest and sinking fund of 1,200,000l. at six per-cent. a fund of 72,000l. must be provided in each of the fourteen years;—the amount thereof is 1,008,000l.
§ The latter sum, being raised on a one–-per-cent. sinking fund, may be considered as an annuity of 43 years.
| Payments on account thereof | 43,344,000 |
| Payments as above | 16,800,000 |
| Total Payments | £. 60,144,000 |
§ PRESENT SYSTEM:
§ The Interest and Sinking Fund on a loan of 12,000,000l., at six per-cent. amounts, per annum, to 720,000l.
§ This charge being raised on a one-per–cent. sinking fund, may be considered as an annuity of 43 years.
| Payments to be made on account thereof till its redemption | £30,960,000 |
| Payments on New System, upon a loan of 12,000,000 | 60,144,000 |
| Ditto on present System | 30,960,000 |
| Excess of the charge of Redemption by New System" | £. 29,184,000" |