and it is rather disparaging the real purpose of the Sinking Fund, and creating a very unfair and prejudicial opinion as to its true use and purpose, to couple its execution with a future intention to diminish the stock-holder's income. For, though the operation of a bona fide Sinking Fund must inevitably tend to raise the value of the remaining stock, and decrease the rate of interest; (inasmuch as the money produce of the Sinking Fund will be so much capital seeking a new investment ;) still it is a very different argument to call that "the object," which, in reality, is "the unavoidable result." In the one case, the measure may be looked upon as obnoxious; but arising from true and correct financial calculation or system, it may be considered a public benefit realized.

There are some few minor errors in this Exposé, which, in an official pamphlet, would be inexcusable, and almost fatal; particularly in calculating the proportion which the reduction of taxation bears to the yearly estimate, which the demi-officials call one-sixth, or sixteen per cent.; but they commit an error in taking as a deduction the whole of the dead charge, or war pensions, amounting to five millions; whereas, they should take credit only for 2,200,000l., as Government contract to pay a pension of 2,800,000l., the remaining balance of the five millions. The ratio of diminution is twelve and a half per cent.

Acceding as I do to many of the general principles of the statement, yet I could not refrain from pointing out this vital error, or, if not an error, this misconception of the nature and use of the present Sinking Fund; which, if admitted, goes to the complete subversion of the measures determined upon during the last Session for the support of public credit, and the solidity of our financial system: and I the more earnestly deprecate and point out this objectionable part; because the same writers, at page 33, repeat again their destructive doctrine. They say, "the capital of the Sinking Fund is, in fact, a mass of treasure always at the call of Government upon real or distressing emergencies. In this point of view, it puts the Minister above the condition of lying at the mercy of the money market, when any great crisis, such as a sudden foreign war, or other events more easily to be conceived than decorously mentioned, shall require a prompt application of vast resources and consequent expense."

Now, I do not hesitate to assert, that the whole and sole object in the creation of the New Sinking Fund of five millions, was-to operate slowly and steadily and uninterruptedly a bonâ fide reduction of the National Debt, and with no view to its future application as a war fund.

I think, therefore, that the observations I have made, bear me out in the position I laid down, “ that semi-official announcements

are often dangerous, at most times impolitic, and always open to suspicion:" and I do the more press the rejection of these erroneous conclusions of this pamphlet; because I am certain, that if any thing tended to cheer up the Agricultural Interest, under their temporary embarrassment; it was the fact, that a real Sinking Fund should be constituted out of the surplus revenue; not merely without the creation of new taxes, but in the face of a great reduction of taxation. The capability to do this astonished the country gentlemen; and upon such a foundation, promising a low rate of interest, by which the weight of their incumbrances and mortgages might be reduced, (for the redemption of stock must naturally rest in landed securities,) they laid their hopes of better days. But if they are now to be told, that even the newly-constituted Sinking Fund is to be appropriated on the first great emergency which may occur, (when it would, by such misapplication, cease to be a Sinking Fund, and become a War Fund,) then, I contend, that they are deceived, and their hopes destroyed. Nor can I conceive, at this present moment, so destructive, so mischievous, and so false a financial averment, as "that the last Sinking Fund is, in fact, but a mass of treasure always at the call of Government upon real or distressing emergencies.'

If the pamphlet alluded to be really a demi-official bratling, 1 do hope and trust, that Ministers in their places, and my Right Honorable and sterling friend Peel in particular, will scout the insinuation of an intention to convert the security of the Fundholder, into an easy means of breaking out into another war. I contend that the Sinking Fund is virtually the property of the Fundholder; for in his loan it is contracted to him, that there shall be a redemption of his stock; and how, without an adequate reserve, can such redemption take place?

Of the influence of a Sinking Fund upon landed property, I shall hereafter have occasion to remark. I therefore conclude this part of my subject with declaring "1. That the New Sinking Fund must, under all circumstances, be fed annually by Government with five millions; till the capital so contributed shall afford dividends equal to the same amount.-2. That to do this, the expenses of any future war must be paid within its duration.— Or, 3. an addition be made to the existing Sinking Fund equal to the liquidation of any new debt; to be maintained upon the same inviolable footing."

Thus will the principle of ultimate extinction be preserved, under all circumstances; and the national credit be placed on an unimpeachable basis.

I am anxious upon this point. Let me, therefore, (that I may not be misunderstood) be rather thought prolix, than fail in making an impression.

I conceive that the New Sinking Fund, to the annual extent of five millions, is to be considered unalienable to any other than its original purpose, under all circumstances whether of war or peace.

That when its dividends amount to five millions, which will be when the capital has accumulated to 170 millions; then, and not till then, the annual surplus of taxation may be given up, and taxes to that amount be relinquished; and as every purpose of public confidence and national credit will be sanctioned by a bona fide contribution of five millions annually and unalienably; so, during its operation, it would be much more encouraging and gracious to give up in taxation all further surplus of revenue; and that such will arise I have no doubt.

The practical result of such plan would be this. Supposing the Chancellor of the Exchequer to speak, what a volume of meaning and satisfaction would not be contained in the following short declaration :—

Gentlemen-"This year, after the Annual Sinking Fund is provided for, I can, from a surplus of revenue, remit five shillings in the pound upon the assessed taxes; so that fifteen shillings in the pound on the last year's amount need only be collected; and 1 trust, that a continued surplus of revenue beyond expenditure, will prevent my_calling upon the country, at any future time, for its full amount. I do not mean, Gentlemen, that the five shillings in the pound are merely suspended-they are this year absolutely abated and expunged from the Annual Estimate."

Thus the unalienable Sinking Fund of five millions, coupled with an occasional remission of assessment, would form a new era in finance; and a most gracious and conciliatory system of taxation. It would come home to the bosom of every family: it would be understood, be felt by, and be participated in by all housekeepers.

I may not here misplace some passing observations upon the subject of the National Debt, in answer to those who rashly, and in my mind most ignorantly, advocate its sudden redemption in part, or its partial annihilation. I cannot but congratulate the country on the late financial measures, which appear to have swept away, as so many cobwebs, the various plans for robbing the public creditor; because his property was public.

I pass by with unfeigned contempt, the projects for scattering bundles of forged Bank notes, and other violent attacks upon the principal or dividend of the national creditor; such could only have originated with, and have been entertained by persons possessed of no property. But now and then, propositions apparently conscientious, for the equitable reduction of the debt by payment to the public creditor, (with the exception only of such part as would fall to his own share of liquidation) have been suggested.

The fairest and most plausible was a proposition for liquidating 500 millions of the debt, and 29 millions of income, by an assessment of 15 per cent upon all property-of which 125 would be furnished by the fundholder, and 375 by the remaining properties of the kingdom. Without stopping to consider what a mass of confusion and depreciation, the transfer of so immense a sum from lands, houses, goods, chattels, and implements, into money or securities, would occasion; it may be sufficient for the purpose to observe, that the whole transaction would resolve itself into the simple purchase of 29 millions of taxation, at a rate of about six per cent. Now, at all events, some benefits should accrue to those thus redeeming the load of their taxation; and I think, men of business would hardly be found willing to sink 500 millions to redeem an annuity of 29 millions at such rate; when, at a moderate scale of profit, they may expect ten per cent., (being 50 millions ;) and thus gain a surplus of 21 millions beyond such amount of taxation; and also retain their capital for the purpose of a succeeding operation.

As I never met with any nearer approach than this to a fairness of principle, I need not remark upon any others less honest, The one alluded to is conclusive against the measure as one of profit ; and may satisfy those, who think to relieve themselves en masse, from the pressure, of a heavy National Debt.

I can hardly be expected to enter into long and tedious details of calculation; but I would make one short and tremendous summary, as being one of a comparative nature; and which may serve to open the eyes of hundreds of thousands, and enable them to know what Great Britain (that snug little Island) is composed of.

I submit then, that the capital of the British Empire in all its mighty interests, cannot be estimated at a much less sum than four thousand millions; and that the productive annual value of such capital, is not estimated at less than nine hundred millions. Thus her debt, as compared to her capital, is as 1 to 5; as compared with her annually created property, as 8 to 9; but the interest of her debt, and amount of her taxation as compared with the income of her industry, is as 1 to 15-being not quite 7 per cent.

This statement is correct, as far as calculations of such magnitude and of such infinite detail can admit of; and may serve to give my countrymen some insight into the greatness of their transactions, and at least make them ashamed of talking of, or listening to, any plan of National Bankruptcy.

The effect of a breach of faith appears to be a matter of no moment to some men, and to some understandings; yet what consternation in the money market has not so trifling a transaction as the Columbian Loan created, when it was suspected to be unautho

rised, or doubtful of ratification? Compare this (a mere bubble to the ocean, in reference to the debt of Great Britain) with the effect of a breach of faith by the British Empire. Were the sea which surrounds us to swallow us up, it would scarcely produce a more electric effect through created nature, than in the commercial world would a stain upon the credit of Great Britain! For great as is her debt, yet it is rendered, by the pursuits of trade and facility of conversion, a mass of capital so constantly changing hands, that it may be fairly said to be "a mint of ready coin."

The eyes of the world are upon England, steadily, and eagerly, and anxiously, and enviously looking at the financial situation of her, who in the hour of danger was fearless; in the moment of victory, disinterested; and who, in an unnatural state of warfare, became more powerful and more rich. Let then England conquer her finance-learn to respect herself-to know better her own means and her own importance: let the maintenance of public faith be to her a new and solemn commandment, and she will continue what she now is-the Umpire of the Christian World! Let her depart from it; and those countries who have not to struggle against such a burthen, will profit by her errors, and supercede her importance.

By divesting the National Debt of much of its terror, and by contrasting it with the resources and capital of the empire, it may be insinuated that I am an advocate for unremitted taxation. I am no further its advocate, than it becomes necessary to pay the just debts of the whole nation, due to others of its community. If, in an anxious and hasty moment, I accused the country of “ an impatience of taxation," in reference to the repeal of the Income Tax; I am not disposed to apologise for an honest though somewhat an uncourteous expression. No other term was more suitable to the cry of the moment, and nothing could be more ruinously dexterous, than the mode in which that cry was originated.

Every day which succeeded that ministerial defeat, I saw just reason to deplore its effect; for by thus forcing the executive at an early period of the peace to propose three millions of new ad valorem taxes; a clamor was raised, which led to false conclusions, upon all their financial measures: but in fact, and in fairness, such new taxation was not so much an addition of impost, as a recovery of that balance of income and expenditure which "an impatience of taxation" had destroyed. Had the property tax been allowed to continue, the assessed taxes might have been dispensed with, and also much of the excise; and there was this beneficial feature in the property tax, namely-that whilst it adapted itself to every presumed change and fluctuation in the value of the circulating medium, it brought within its grasp the income of absentees and of