§ On the motion of the Chancellor of the Exchequer, the House resolved itself into a Committee of Ways and Means.
The Chancellor of the Exchequerbelieved it would not be necessary for him at present to go at any considerable length into the particulars of the Supplies which had been voted, and the sums which were necessary for the carrying on the public business of the country. He should merely observe, that 13 millions had been voted for the naval service; and two issues of Exchequer bills of five millions, and two millions and a half, and that the whole sum voted amounted to about 27 millions. The Ways and Means to meet the public exigencies were only the annual taxes, amounting to about three millions, and the sum to be raised by the loan concluded that morning. Before entering on the particulars of the loan, he would proceed to explain some of the circumstances connected with it. He believed it was unusual for a loan to be contracted before a former loan had been altogether paid up. In the month of June last, when the loan took 108 place for the service of 1813, it had been stated, that government did not consider themselves precluded from resorting to any other measure of a similar nature, which the public service in the course of the year, might render it necessary to adopt. It had been said, however, to the contractors, that it was believed such sums had been granted by parliament as would in all probability be adequate to the exigencies of the public service. Some time before the meeting of parliament, it became obvious to his Majesty's ministers, that it would be necessary to apply to parliament for a farther supply; not only from the additional expences of the public service, but also from others not in contemplation at the time of the former loan. The Exchequer bills had been issued on as favourable terms as could have been expected; but certain circumstances, favourable to the public credit of the country, rendered it not advisable that the market should be stocked with them to any great amount. Persons holding Exchequer bills were desirous of disposing of them for the sake of laying out the produce in the public funds. Under these circumstances, it was thought necessary, that the loan should be greater than what the circumstances of the public service, rendered absolutely necessary. A loan to the amount of 10 or 11 millions, world have enabled government to carry on the business of the country till the usual period of application to parliament. But, by way of relieving the Exchequer market, his Majesty's ministers found it the general opinion, that it would be better to combine two operations at once, and to raise such a sum of money at present, as would render it unnecessary for some months to come before parliament, and to issue any additional Exchequer bills. The loan therefore, amounted to the sum of 22 millions. It was considered advisable, under all the circumstances of this case, that a preference should be given to the contractors for the last loan, although they had no right to any such preference, in consequence of an express stipulation in their contract. It was the interest, however, of all parties, with a view to the consequences in the money market, that the last contractors should have a preference. Upon these principles, the transactions of that morning had taken place, and he hoped the bargain would be found extremely advantageous to the public. The amount of the sum to be raised was, 109 as he had already stated, 22 millions. It was agreed, that for every 100l. money subscribed, the contributor should be entitled to 110l. in the Three per Cents. Instead of the portion in the Long Annuities, as was the case last year, the whole of the remaining sum was taken in the 3 per cent, Consolidated Annuities. Every 100l. Advanced was, therefore, entitled to 110l. in the Reduced, and 67l. in the Consolidated Annuities. This, when compared with the terms of the loan of last summer, would be found highly advantageous to the country. The difference in favour of the country was 8s. 6d. of Long Annuities, and 7l. in, the three per cent. Consolidated Annuities. In June last a long annuity of 8s. 6d. per hundred was given. The present bargain, therefore, was more favourable by 1l. 18s. per cent; so that nearly 2 per cent. less was given to subscribers than in June last. The loan was also in other respects more favourable. The whole amount of the annuity to subscribers in June last, was 5l. 10s. 6d. per cent.; in the present loan it was 5l. 6s. 2½d. The bargain of that day with the contractors, therefore, was concluded at an interest of 5l. 6s. 2d. In other respects the loan was not less favourable. The estimated profits of last loan amounted to 4 per cent.; the estimated profits that morning were not more than 3l. 6s. per cent. and the discount 5s. 6d. He had heard in the course of the day, that the premium in the market already amounted to 3½ per cent. He had thus made a bargain which he hoped would be every way acceptable to the House and the country He might be allowed to mention, by the bye, that the loan of that day took place under very favourable circumstances. Instead of forcing a loan on the monied men, several of the most respectable gentlemen of the city seemed rather anxious to force a loan on the government. The next thing to be considered was, the charge on the country, created by this loan. There was allotted to it a sinking fund of 1½ per cent. in the manner pointed out by the Act of last year. So that in this year, without laying any additional burden on the public, it would be possible to comply with that Act, and lay, the foundation for the redemption of the debt created, in a manner highly advantageous to the public.
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Stock created in the 3 per £ cent. Reduced 24,200,000 In the Consolidated 14,740,000 Making together 38,940,000 The interest paid on the last loan was, as had been stated, 5l. 10s. 6d. per cent.; the interest on the loan of the year preceding the last also exceeded that of the present loan, which in point of terms was more satisfactory than any since the year 1811. Before he sat down, he had great satisfaction in being able to state to the House, that the revenue of the last quarter had experienced a considerable increase—that quarter exceeded by 1,900,000l. the revenue of the corresponding quarter of the preceding year.
The interest amounted to 1,168,200 Sinking Fund 584,100 Charges of management 11,682 Total annual charge 1,763,982
§ Several of the Resolutions resulting from the statements in the right hon. gentleman's speech, being put, were agreed to.
§ Mr. Whitbread,in the course of putting them, asked if the effect of this system would not be, to take the whole sum required out of the sinking fund already created; and thus to diminish it to the extent of the sum required for the present exigencies of the country?
The Chancellor of the Exchequeragreed, that the measure must, in the first place, have this effect; but that the original sinking fund would not thereby be ultimately impaired.
§ The other Resolutions were then put and agreed to, and the Report was ordered to be received to-morrow.