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 bonâ 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:

pro

Gentlemen-"This year, after the Annual Sinking Fund is vided 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 I 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

the fundholdhers; whilst the assessed taxes and excise continued to be collected at their old rates, without regard to the character of the currency, and became lessened in proportion to the number of country-seats and houses remaining unoccupied. The continuation of the principle of the property tax would therefore have carried within itself, to a certain extent, relief to the agricultural in

terest.

In treating upon the National Debt, too many view it as an inert mass, or load of obligation, kept up and supported (the money being spent) by an oppressive taxation, of which they feel the immediate pressure; but such are forgetful of the interesting circumstances from which it has arisen, or the advantages which its expenditure procured. I am of opinion, that when Ministers call upon the nation to maintain the public credit, the public are entitled to a most rigid and upright application of their resources. But economy carried to spoliation is the greatest of all extravagance. To dismantle our fleet, or destroy the matériel of our arsenals, the ordnace, or of the army, is only to lay the foundation for an immense demand for their regeneration, the moment a war should be forced upon us: to say nothing of the delay of equipment, during which, an active and enterprising enemy may first take the field and snatch a victory.

But the National Debt answers many most important public, mercantile, and private purposes. As a bank of deposit it is of most extended utility, in all cases of trusts, litigations, and guarantee as a means of income, it is a simple, certain, and unexpensive investment-as a circulating medium, its regularly paid and unfluctuating dividends supply to creditors a stream of payment from their debtors, of which, though they feel the influence, they too seldom acknowledge or suspect the source-in larger mercantile transactions, it supplies by an increased facility of discount, temporary capital, and individual accommodation-and among the lower classes, the means and facility of saving the smallest surplus of their industry, and thus leading to a provision for old age, gifts to children, establishments in retail trade, and many other applications, of which the opportunity will become more and more estimated; and I am certain, that there are thousands who clamor for the ruin of the fundholder and reduction of the National Debt, who unconsciously receive from them and it, through intermediate channels, their main support.

Notwithstanding its annual pressure, (not slightly balanced by the modes of application already pointed out,) the very accumulation of the debt may be viewed as the proof of national security for if so great a mass of money has been borrowed by the Government and expended, could it have been borrowed without the means to lend? Riches spring not up like mushrooms in the night. There

must have been some source from whence this : accumulated debt arose. It has arisen from the produce of industry I should rather say from the profits of industry; because it is a surplus capital, distinct from all other possessions; and at any time being wanted for other investment, for the active use of mercantile pursuits, or landed purchase; its abstracted part: can only be obtained by another supplying its place. To all intents and in fact, therefore, it is a source of capital, and yet is distinct from, and interferes not with any other required for different purposes.. I therefore repeat, that though the interest may be considered burthensome, still that the capability of amassing the amount of the debt is a proof of our national security."

Let us suppose, for one moment, that one half (400 millions,) could be paid off. What could be done with the money? I know of no other mode than investing it in land, to yield an interest of about one per cent., or having it coined into silver chairs and tables, to be melted when wanted. Besides, such re-payment. would be worse than useless-it would be ruinous. And, I think, as a general rule, that none but a rich, great, and powerful nation can create or bear a National Debt. There is however a limit, beyond which to pass, is destruction-to that limit England has approached-she should go no further-but she need not rob her confiding creditors.

Immense as is her debt, it will sink before an increasing population, actively and profitably employed, and consuming articles of taxation. In this state is England; and without any fresh impositions, a surplus of revenue must arise from all exciseable articles. For an increasing and consuming population is a profit to such a system of revenue. Whilst the war lasted, the influence of a growing population was not perceptible in reducing taxation, which went on in too overpowering a nation; but now taxation is retrograding, the power of a population actively and profitably employed, and increasing, as it must do, under such circumstances, will operate to create a surplus of revenue; and thus, our system of finance will upon examination be found to possess a quality of elasticity and expansion, (without increased individual pressure,) which will gradually perform that, which if done hastily and unwarily, would depreciate the currency far below any rate to which it may be supposed to have fallen.

There is yet another point in which the effect of the National Debt may be viewed ; and that is, as a former source of profit to the trade and manufactures of the country, and to its agriculture. This benefit is now forgotten, because its effect is not so predominant. Indeed it would seem, that the country deplores the loss of that expenditure, which, during its existence, was by many so much deprecated.