New Taxes of less than £300,000, on an average of seven years from 1810 to 1816, both inclusive, are all that will be necessary, in order to procure for the Country the full benefit and advantages of the Plan here described; which will continue for twenty years; during the last ten of which again no new Taxes whatever will be required. It appears, therefore, that Parliament will be enabled to provide for the prolonged expenditure of a necessary War, without violating any right or interest whatever, and without imposing further burthens on the Country, except to a small and limited amount: and these purposes will be attained with benefit to the Public Creditor, and in strict conformity both to the wise principles on which the Sinking Fund was established, and to the several Acts of Parliament by which it has been regulated. It is admitted that if the war should be prolonged, certain portions of the War Taxes, with the exception of the Property Tax, will be more or less pledged for periods, in no case exceeding fourteen years. How far some parts of those Taxes are of a description to remain in force after the War; and what may be the provision to be made hereafter for a Peace establishment, probably much larger than in former periods of peace; are consider ations which at present need not be anticipated. It is reasonable to assume, that the means and resources which can now maintain the prolonged expenditure of an extensive War, will be invigorated and increased by the return of Peace, and will then be found amply sufficient for the exigencies of the Public Service. Those exigencies must at all events be comparatively small, whatever may still be the troubled and precarious circumstances of Eu rope. Undoubtedly there prevails in the Country a disposition to make any further sacrifices that the safety, independence, and honour of the Nation may require: but it would be an abuse of that disposition, to apply it to unnecessary and overstrained exertions. And it must not pass unobserved, that in the supposition of a continued War, if the Loans for the annual expenditure should be raised according to the system hitherto pursued, Permanent Taxes must be imposed, amounting in the period assumed, to 13 Millions additional revenue. Such an addition would add heavily to the Public Burthens, and would be more felt after the return of Peace than a temporary continuance of the War Taxes. In the mean time, and amidst the other evils of War, the Country would be subjected to the accumu lated pressure of all the old Revenues, of the War Taxes, and of new Permanent Taxes. The means of effectuating a Plan of such inimense importance, arise partly from the extent to which the system of the Sinking Fund has already been carried in pursuance of the intentions of its Author: and partly from the great exertions made by Parliament, during the War, to raise the War Taxes to their present very large amount. It now ap pears that the strong measure adopted in the last Session, by which all the War Taxes, and particularly the Property Tax, were so much augmented, was a step taken not merely with a view to provide for present necessities, but in order to lay the foundation of a System which should be adequate to the full exigencies of this unexpected crisis, and should combine the two apparently irreconcilable objects, of relieving the Public from all future pressure of Taxation, and of exhibiting to the Enemy resources by which we may defy his impla cable hostility to whatever period it may be prolonged. To have done this, is certainly a recom pence for many sacrifices and privations.— This is a consideration which will enable the Country to submit with chearfulness to its present burthens, knowing that although they may be continued in part, for a limited time, they will now be no further increased. A plan so novel in its kind as that to which we have been attending, could not expect to proceed into execution without that close examination and comparison, to which Britain is indebted for deliverance from many evils, we might add, for the enjoyment of many advantages. All things do not appear alike to all; whoever corrects an error, renders an important service to his country: whoever suggests an improvement confers a favour, not only on the minister, whose plan he enriches, but on the nation, whose welfare he promotes. The public is therefore obliged to Lord Castlereagh for a statement very different from the preceding. His Lordship supposes that the old system persevered in for about four years longer, would be most beneficial in the end. In proof of this proposition his Lordship has drawn up the following tables, which have been ordered by the House of Commons to be printed. We think it our duty to submit these, also, to our readers, in the present article. It will be agreeable to observe, that the idea of suspending the system of progressive taxation, enters into the contemplation of both financiers ; and that both consider it as attainable, notwithstanding the immense expences of a state of warfare. This subject will be looked back to, at subsequent periods of our history, with a lively interest. FINANCIAL RESOLUTIONS MOVED IN THE HOUSE OF COMMONS, FEB. 12, 1800, BY VISCOUNT CASTLEREAGH. No. I. That it is proposed by the new plan of finance, that the annual excesses of the present sinking fund, above the interest of the debt charged upon it in any given year, should be declared to be at the disposal of Parliament, and applicable to the public service. And it appears, that the aggregate produce of the said excesses, between the years 1816 and 1826, will amount in the whole to £11,121,938. That annuities, to the amount of £685,515 will fall in between the years 1807 and 1826. 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,ocol. supplementary loans, and to impose in aid of the said aggregate produce, between the years 1810 and 1810, new taxes to the amount of 2,051,000l. 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 210,000,000l. on the credit of the war taxes, amounting to 21,000,000l. 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 thirty-two millions. That in order to raise the said sum of thirtytwo millions ineach year, without any mortgage upon the war taxes, there would be required in addition to the twenty-one millions of war taxes an annual loan of eleven millions only. That without any mortgage upon the war taxes, an annual loan of eleven millions might be provided for, for nearly nineteen years, by the application of the same funds, viz. the annuities, amounting to 685,5151 the excesses of the sinking fund, amounting to 11,140,2741. 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. II. 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 several of them, such as the tax on exports, 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 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 preju Decrease of debt in twenty years, raising eleven mil lions in each year 93,350,417 Effect of the new Plan. Amount of money capital of Decrease of debt by the present system, as above Increase of ditto by new w plan Total increase of debt by new 364,993,722 455,537,932 90,544,210 93,350,417 90,544,2to 183,894,667 17,966,318 644,421 Increase in twenty years Difference in favour of present system So that the new plan gives only 26,901,360 sinking fund on a debt of 455,537,9321. whilst the present system would give the larger sinking fund of 27,115,8811. on the smaller debt of 270,443,3051. The proportion of the sinking fund to the whole debt will 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-seventeenthi. The sinking fund, under the present plan, above stated at 27,115,8811. continues to increase, at compound interest, after the year 1826, till the whole debt is redeemed. The sinking fund, under the new plan, having obtained its maximum of 28,155,3581. in the year 1820, descends to 26,901,36ol. in the year 1826, and must continue to decline after that period, so long as the excesses shall be deducted. No, V.That an increase of charges, for the interest and sinking fund of loans, for the twenty years, must take place, under the new plan, compared with the like charge, which would take place, were the present system persevered in. War taxes, mortgaged as above, for war loans, according to the new plan Ditto according to the present system 370,272 21,000,000 Nil. No. VI. 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 play of defraying the interest and sinking fund of the supplementary loans, are as follow: Produce of the excess of the sink- No. VII. That the comparative effects which will be produced on the public income by the two systems, on return of peace, and on the formation of a peace establishment, are as follow: Under the present Plan. There would be no charge whatever upon any part of the war taxes. The whole twenty-one 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 establishment, 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 revenue of £6,700,000 immediately applicable to support the charges of a peace establishment. It appears, that, in 1826, the excess of the war sinking fund will be 9,967,2831.-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 consolidated into a common debt, and the deficiency on the peace establishment, must be provided for, either by fresh taxes, or fresh loans. 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 eleven millions per annum, for 20 years, is 14,666,6601. The resources available amount to 13,856,861 809,799 Deficiency This deficiency of 809,7991. exceeding only by 369,4311. the charges for supplementary loans, would remain an additional charge to be provided for. As the charges upon a loan of eleven millions would in each year amount to 733,3331. if it should be thought fit, in aid of the annuities, to raise only the precise amount of taxes proposed by the new plan to be imposed in the first ten years, until the excesses of the sinking fund shall arise in 1816; the difference between the above funds and the annual charge of 733,333 (amounting, on an ave rage, to 489,682 a year) must be added, as it arises, to the loan of the year; the interest and sinking fund thereon amounting to about 33,000l. a year, to be defrayed in the first instance out of the consolidated fund, and to be afterwards replaced out of the excesses of sinking fund, as they accrue. No. IX. That nearly the same results 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 provision for the interest of the said loan by new taxes, the same shall be provided for, by and out of the inte rest receivable on the amount of stock in that year, redeemed by the commissioners of the national debt: in which case, the amount of debt unredeemed will continue stationary during war. The sinking fund is at present 8,515,0421. It will be in 1811 -11,140,274 In four years therefore from the present time; no new taxes will be required (the data re maining 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 continued in the mean time to the full amount of the sinking fund. 2,547,81ol. No. VIII. That the sum of eleven millions a year, required in aid of the twentyThat the charges for four years loan as one millions war taxes, to complete the war above, for eleven millions in each year, takexpenditure of thirty-two millions, may being credit for 385,515 annuities, amounts 10 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, or rendering new taxes of any greater amount necessary than it is proposed to lay on by the Taxes required in each year for the next four years 626,970 The taxes so to be imposed exceed only by 496,810l. the total amount of new taxes pro posed 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 at 369,390,887 throughout the war. Amount of debt in 1826, by new plan Ditto in 1826, by this plan Difference of debt in favour of this plan And no war taxes are mortgaged. 455,517,932 86,147,045 No. X.-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 compared 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 sinking fund; the other raised upon a fund of six per cent. for interest and sinking fund; calculating the payments on account 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. New Plan. Ten per cent. interest and sinking fund on 12,000,000l. for one year A like charge for 13 years more, at which time the principal is redeemed 1,200,000 15,600,000 16,800,000 Total payments 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 forty-three years. Payments on account thereof Payments as above Total payments 43,344,000 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 forty-three years. Payments to be made on account thereof till its redemption 30,960,000 peace The following statements, as our readers will perceive, had not escaped us. in our introduction to the present important article. We must acknowledge that the pressure of the moment gives additional weight to the representations of the committee of ship owners. But, we have supposed that whenever should take place, those imposts which burthened the commerce of the country, in any considerable degree, would be removed, from this particular department of nationothers, of equal security to the stockholder, al concern, and would be replaced by and of more general collection from the community. In the mean while, if our information be correct, the eastern parts of the kingdom are carrying on shipbuilding to an enlarged extent, and these are flourishing; while the port of London is making representations. The building branch which suffers most, because the of large ships appears to be that particular investment of capital is so much longer in these than in others, before it produces any advantage by returns. In the year 1805, the decrease of large vessels built in Great Britain was 57; the increase of small vessels was 57; of course the decrease on the general tonnage was considerable, and there was less work for the ship-builder. But, besides the port of London, Bristol also, and Liverpool have decreased in ship-building; and this leads living, &c. in large towns has a detrito the idea that the increased expenses of mental effect on workmanship and trades, which may be equally well carried on elsewhere. It agrees also with the increase of small vessels, since vessels of the larger classes are not those which principally occupy the dock yards of Yarmouth, Newcastle, or Sunderland. We flatter ourselves, whatever suspension of our trade the present circumthat they will not be permanent: The stances of the Continent may occasion, minister has lately proposed a bounty on the exportation of refined sugar of 10s. per cwt; of raw-sugars 2s. under 40s. value and 1s. under 45s. He has also proposed to favour the consumption of rum, by laying an additional duty of 2s. 6d. per gallon on brandy. But the benefits to be derived from these assistances cannot be immediate. : At a meeting of the Committee of Ship Owners for the port of London, held this 9th |