§ The house having resolved itself into a committee of Ways and Means,
The Chancellor of the Exchequersaid, that before he stated the terms upon which he had contracted for the Loan for the service of the present year, he should shortly recapitulate the different heads of Supply and of Ways and Means, viz.
| SUPPLIES. | |
| £. | |
| Navy | 17,496,047 |
| Army | 19,439,189 |
| Ordnance | 4,534,571 |
| Miscellaneous | 1,750,000 |
| East India Company | 1,500,000 |
| Swedish Subsidy | 1,100,000 |
| Vote of Credit | 2,500,000 |
| Total joint Charge | £.48,319,807 |
| SEPARATE CHARGES OF GREAT BRITAIN. | ||
| Deficiency of Malt, 1806 | 275,845 | |
| Interest on Exchequer Bills, 1808 | 1,400,000 | |
| Exchequer Bills not funded | 4,024,200 | |
| Five per cents, 1797, to be paid oft | 153,696 | |
| 5,853,741 | ||
| Total Supplies | 54,173,548 | |
| Deduct Irish proportion of Supply and Civil List | 5,868,515 | |
| Total to be defrayed by Great Britain | £.48,305,033 | |
| WAYS AND MEANS. | ||
| Duty on Malt and Pensions | £.3,000,000 | |
| Bank Advances | 3,500,000 | |
| Unappropriated Surplus of the Consolid. Fund at 5th April | 726,876 | |
| Estimated Surplus of ditto, to 5th April, 1809 | 3,500,000 | |
| Surplus, Ways & Means, 1807 | 2,253,111 | |
| War Taxes | 20,000,000 | |
| Lottery | 300,000 | |
| Exchequer Bills to be issued to replace Bills not funded | 4,500,000 | |
| Do. for the East India Company | 1,500,000 | |
| Exchequer Bills, part of 10,500,000l. charged on Aids 1809, to replace the like Amount on Aids 1808, which has been funded | 1,161,100 | |
| Loan | 8,000,000 | |
| £.48,441,081 | ||
| Supplies | 48,305,033 | |
| Surplus of Ways and Means | £.136,048 |
§ After thus recapitulating the various heads of Supply and of the Ways and Means for the year, the Chancellor of the Exchequer proceeded to state to the committee the terms on which he had contracted for the Loan. The sum borrowed for England and Ireland was ten millions and a half, of which eight were for the service of this country. The whole sum was to be funded in the 4 per cents, and the contractors for every 100l. advanced to the public were to receive 118l. 3s. 6d. stock: so that the public paid for every 100l. capital, 4l. 14s. 6¼d. interest. In consequence of the loan often million and a half, there was a capital of debt created to the amount of 12,408,375l. from which, after deducting a proportion of 2–17ths for Ireland, making 2,954,375l. there would remain, as a permanent burden upon Great Britain, 9,454,000l. and an annual charge for interest of 475,536l. In addition to this, in consequence of the measure of funding four millions of exchequer bills, there was a capital debt created of 4,239,215l. and an annual charge for interest, including the sinking fund and management, of 253,247l. So that the sum to be provided for by taxes was:
| For the Interest of the Loan | £. 475,536 |
| For the Interest of Exchequer Bills funded | 253,247 |
| Making a total of | 728,783 |
§ For this Annual Charge he meant to provide in the following manner:
| Short Annuities fallen in | £.375,000 |
| Annual Saving on the Management of the Debt | 65,000 |
| Increase upon the Assessed Taxes | 120,000 |
| Stamp Duties | 170,000 |
| £. 730,000 |
§ The Chancellor of the Exchequer next proceeded to state the effect which had been produced by the financial measures adopted in the course of the year, and contended, that from funding four millions of exchequer bills, when stocks were at 63½, and by borrowing ten million and a half in the four instead of the three per cents, there had resulted a saving to the public of four millions of capital debt; and that by the single measure of contracting for the loan in the four per cents, there was a saving of 3,100,000l. capital debt; and also a saving in the annual charge, of 2000l.; besides the advantage of being able to redeem the debt at comparatively a very inconsiderable loss. He concluded 766 his statement with moving a Resolution, That it is the opinion of the committee, that towards providing the Ways and Means for the year, it is expedient to enable his majesty to raise eight millions by way of annuities for Great Britain, and two millions and a half for Ireland.
§ Mr. Tierneysaid, he observed, that there was one million of the loan for Ireland still to be provided for: 1,500,000l. was to be by loan from the Bank; but, he hoped the other million was not to be raised by exchequer bills, in which case there would be an issue, on that head, all together of six millions more than the ordinary grant. As to the loan, he congratulated the right hon. gent. on the terms on which it had been contracted; he was far from having expected any such: certainly, the terms were as good for the country as the public could have expected. He could by no means agree, however, that this advantageous bargain was to be attributed to the circumstance of its having been made in the four rather than the three per cents. Previous to the bidding, the four per cents. had stood at 84, odd; and, in contemplation of it, fell to 82½. He was, therefore, entitled to ask, would not the contractors for the loan have been disposed to make an equally good bidding in the three per cents.? Would they not be witling to contract in a stock they wished, rather than in one they did not wish to bid for? Nearly about the same sum would redeem the stock in the one fund as in the other. The right hon. gent. however, said there was a great saving, from his mode of contracting for the loan. There was so, as the right hon. gent. conceived it, but not as he (Mr. T.) viewed the question. There was, undoubtedly, a saving as to the one per cent. if the loan had been negotiated in the three per cents.; but, if this measure had been adopted, to answer the one per cent, there would have been a saving of 30,000l. per ann. As the bargain was, however, he again congratulated the right hon. gent, on the terms on which it had been contracted; and he congratulated the country on the pleasing consideration that there were men in it disposed to shew such confidence in the country as to conclude a loan on such terms.
§ Mr. Huskissonalluded to the terms on which the two funds might be redeemed; and argued, that the bidding in the four per cents, was, from that single circum- 767 stance, more advantageous to the country. He also argued, that by this mode, the sinking fund for the next year would be encreased rather than decreased, and would amount to 1–55th part of our whole debt. He stated, as the advantage to be derived from this circumstance in providing for the exigencies of the country, and of course lessening the deprivations to which the people were obliged to submit, that, where we formerly borrowed money at the rate of 8l. 7s. per cent, we now borrowed it at the rate of 4l. 14s.; so that there was here a saving of upwards of 3l. per cent, per annum.—After some further conversation between sir John Newport, Mr. Huskisson, and Mr. Tierney, the Resolution was agreed to.