Newspaper Page Text
t or and prudence c r "'hl do, to
guard against fill possible iutotc
dnnsrer*. And. fi st “ e must look
to the-greatest of Sill evils, the
prott act on of that dreadful visit
ation of war, which may’ he ex
tended for a time tj’rnost inc.efi
rite, level in such a cast, be
trusted the country had *he
means not only of maintaining
as it had hern maintaim'd..bn , il
possible with increased vigor.
He should then proceed to
take a general view ol the finan
cial state of the country. He did
not think that there would be any
occasion for him to conceal unv
part of his opinions on the sub
ject of ‘he finances of the coun
try, whether they were favoura
ble or urfavourable. He should
begin with a view that might ap
pear in some degree unfavorable.
Instead of stating that new taxe3
Could always be found to meet
the exigencies o; the times, his
surprise was-that the f.yvem of
taxa'ion had been able to go so
far as it had. In 1/81 the pet mfl
uent taxes amounted to only Jen
■millions annually, and thin that
great statesman (Mr. Pin) who
was theft at the head of the Ad
ministration found it very diffi
cult t: find out newtaxts,and was
obliged sotnetitr.es to abandon
those tl at he had first chosen.
Such howcvt i had been the grow
ing pioaperitv ol the country,
that the produce of the permanent
taxes at the conclusion of the last
war was 28 ini lions, and now a
niounud to near 32 millions. It
was impossible not to feel the
most lively satisfaction at finding
that the prosperity of the country
in every respect had kept pace
with the incteaseof its burdens.
Although every Minister who
held the si utuion lie had then the
honor to fill, had uuilo.mly ex.
pressed the ‘difficulties they fit
m adding to the burthens of the
countiy, yet he by no means
meant to sav, that new taxes
could not he found to meet the
interest nut onlv of the Loan for
next year, but for many years.
‘I in re was nothing in the present
circumstances ot the country
w iie.fi tendered it immediately*
necessai* to abandon the old sy
stem oi i “yjng i e.th taxes to cov
et die ant.. team'-, although
those luxes in,ist produce s>iiie
harem hips and additional pleasure
tO indi\. 1* ilials.
In iook.ig tor ward to the fo
rme pro jnc.s ot t'l9 c<Hiiv.rv
there was no rational mm who
could c. icula e ;i[ on the icuun
oi peacr ; it all events, it would
be nec.ss.irt to look to the possi
bility ot a long protracted war.
It w.i eheic ioie neces-aryto con*
auUrvihn menus and resources
v. e possess tot such a contest,
lie conctiwd that U was an ob_
jeetoi the fust consequence to
r -i eve the subjects ot this coun
ts v’ Irom accumulating b mile ns
ol lresh I’axes, and thrlclore he
thought it was derivable that the
pel influent 1 axes should not be
inert used beyond what they were
at present. It would be therelore
extiemely desirable that the pub
lic expenditure should Le. provid
ed tor, without either anticipat
ing the resources ot future years
(a principle which appeared to
him unjust) or without sacrific
ing any ot those principles, which
have been sanctioned by the o
pinion of the nation, on which
the public fault and the security
of the public creditor depend.
Much as he wished to relieve th
public from fresh taxation, \ et he
would not do t at the sacrifice of
any principle of national faith,
lihe resources of the country
wcie sufficient to uphold its ho
imi a. it had huherif beer.upheld.
Its prospesity had increastu in ..
most unexampled manner, and
that prosperity had not been ow
ing to foitune, or to any oi those
casualties, which sometimes give
u nation ud\ uuuige, buv a ua* itie
regular and gt sound rtsuii oi toia
sigi.i, ot couiage, aid o’ pru
clt liCC* Ai. Wdi il Oi#l dll
enu mere.is tug sprit of i.tai.->iry ,
and from the progress ol liberali
ty . mi so rwlcuge.
ine Vvr i axe* and the Sink.
Jug Tirrd. were *he two bases up*
on Which clone je meant to r‘t,
,t ~ p]-n that he should have
jl-e honor of r nbrnlttirp to the
Committee. It won id therefore
he necessary for him to state the
origin anil jo ogress ot
which he considered to be th.e
two gtat ard promment features
of the political and financial Mut
ation of the coutitrv. Ih e Smt.-
ing Flint! was created by Mr.
Pitt in the sear 1786, anti in
mentioning the author of it, he
felt peculiar satisfaction in ex
pressing bis cntiie approbation
of iliat measure ; and it gave him
pleasure to acknowledge that
this erasure of that great States
man was one of the mo t valua
ble and important which had ever
been adopted in this country. It
was a matter of pleasing recollec
tion to him, that this was a mea
sure fully approved of by a Right
Hon. Friend, (Mr. l*ox) whose
los9 they had more recently to
regret. Those two great and dis
tinguished Statesmen died with
in ihe same \ ear ; and although
their opinions on many subjects
difl’eicd widely, and some would
naturally prefer the one, & some
tile other, yet now they weie
dead, all would agree that the\
were truly great and eminent
men, the ornaments of the ( ntm
tr\, and o< the times in which
they lived {haul and ies ol hear hem !
J) am ail pi ‘ls of the Louse.) Ihe
origin ol the Sinking Fund was
marked !>v the most perleot union
of all parties in approbation ol Tie
tneastire. It came recommended
bv Mr. Pin, and supported by all
the additional weight that the coil
emreiice and authority of Mr.
Fox could give. Ihe measure,
introduced to Parliament uudei
such auspices, has continued ever
since to r: cetve the approbatmn
of that House, and of the country.
When tlie Sinking Fond was first
adopted, thy national debt was
233,321,2181. The annual million
witch was the first sinking fund,
bore to the debt the proportion of
1 to 238. In the year 1792, an ad.
and Mount saint ot 400, OCX)!, was ad
ded to this loud from ‘he surplus
of the prod ice ot certain 1 axes
lit the t ear C 79 i, on the break
ing out of the wu‘ with France,
another sinking fund wasestablisb
eil, to bn formed ol an addition of
one per cent, to the interest of e
v, rv loan : but Mr. Pitt toreseeing
that the effects of such a sinking
fund might be too rapid, propos
ed tli t after it should have incteas
vd to four millions a year annual
ly, that the surplus should be at
the disposal of Parliament. No al
teration hud been made in this
Rill until the close of the war, and
thru anew arrangement took
place, which promised to dis
charge tiie debt in a shorter time,
lu the year 1802, -Mr. Addington,
who was then at the head ot the
financial department, and of the
Administration of the country,
proposed that those two separate
sinking funds should he eoosoli
dated, and from that consolidation
they would bv acting together,
produce the desired effect in a
shorter time.
In the month of February,
1803, at the commencement of
die present vvar, the amount of
the public debt was 480,572,
4701. The finking fund lor
he redufcfion of that debt was
6,31 i 6261 so that, in (lead of
the proportion of 1 to 238,
with which it began, it was then
in the proportion of 1 to 77
ofthe debt that was to be .e*
duced. l’he propottion ofthe
Sinking Fund to tiie debt was,
however, greater now than at
any former period. The to
tal amount ofthe funded debt
-.t present w„s 530,351,689'.
now unredeemed. The finking
Fund, which was to be applied
to the reduction of this debt,
was now 8,331.709!. being in
the proportion of 1 to 63 ; but
if the debt was calculated, not
a: its nominal value, but at
the ieal money value, of about
601. for 3 per cent, then it
would appear that the afloat
proportion fLat tb.tr Sitnving
Fond now bore ?(> the wbo,e
debt was at t to 42.
As it was on the new mode
of application of the War
Taxes and of the Sinking
Fund that the plan which lie
had now to propose would red,
it would be necessary for him
alio to (fate the origin and pro
gress of the War I axes. It
was in 1797 that the system
firft began. The mode in j
which it was firft attempted ap
peared to him to he molt mr
fair and unjust. Ihe princi
ple of it was a very great irr
creafeon the Aflefled I axes.
This mode of taking the ex*-
pences as the abiolute err
terion of property, appeared
to him to be extremely unfair;
and although this increase on
the AflcfUd Taxes was fir It
proposed merely as a War
Tax, yet, fhoitly after, a large
portion of the interell of the
Loan was charged upon those
Aflefled Taxes, this debt was
transferred over to the Income
Fax, and by this means, the
Income became pledged be
yond the period of the
war. This was certainly a
facrifice ofthe principle upon
which it was t ailed, which was,
that it Ihould merely be a War
Tax- In the year 1801 this
tax was charged with no less a
futn titan 56,000.000!. It was,
there fore, to have lubfilled,
riot only until it had redeem
ed these fifty-fix millions,
hut also until it had paid the
annual inteit-ft of that him, a
mounting to 1 700,000!. an’
nuaily. in the year iBo,
however, there was no farther
loan charged upon the In
come Fax : and Mr. Adding
ton, who was then Minister,
looking wifely at the system,
and conlidering in the firft
place the relief of the country
from the pre flu re of this tax,
and, fecondlv, to free i:s re
sources, so that it Ihould he
better ab'e to support another
comest, did molt wifely and
providently relolve to take the
bold measure of repealing the
Income Fax, and of finding
in one year new taxes fuffi
ctent to pay the interell of all
tiie lums for which it was
pledged. This was effcQed
in one year, and by one blow,
and tiie country by that means
gained additional relources to
maintain the prtfent war. At
the commencement ofthe pre
kin war, iullead of an Income
Fax, the lax upon property
was resorted to, and flill con
tumid. Me did not pretend
to fay that .he Property Tax
was perfectly cquai in its ope
ration. 1 his was a thing not
to be expected in any human
inlLtution. It was morally
imt.ofliblc. The fame thing
would apply to law as to taxa
tion. The wife ft laws that e*
ver were framed could not be
exafctly equal in their opera
tion. If from the lentence of
criminal law any corporal pu
nifliment was ordeied to be in
flicted, from the difference of
conllitutions and tempera
ments, the fame puniflirnent
would not effect all persons
equally. He therefore could
not pretend to deny but that
the Property ‘Fax, like every
other general measure, mult,
m foine particular cases, bear
bard upon fome individuals.
It was, however, as he con
ceived, much better than the
old Income Tax. It got rid
ot many vexations, and uar
ticniar'v’ the inc[i!r{;torial pow*
erthat wa>’ lb much complain
ed of. Ii was to ibis tax that
the attention of the Houle was
principally called in the lafl
feflion. The expences of the
country had increaled about
seven r*>illions, while the levc
tine had only increaled one
million. It was therefore tie du •
ty of government to propoie a
considerable addition to the
War taxes ; and in dtlcharge
of that duty he had in (he lad
feflion propoied that irscreafe.
Although it was a confidera
b’e increase to tfie burdens of
the country, yet, as he felt it to
he his duty, he did not shrink
from it. I lie property Tax
had coniiderably increased in
its produce, rot so much from
increased burdens, as from the
removing those evasions which
had formerly taken place.
The great and permanent foun
dations for providing for the
increased expcnces,and again It
the accumulation of debt, were
firlt, the Sinking fund which
now produced 8,300,000!. Sc
the war ta>jes which amounted
to 21,000,000!. It was there,
fore a fubjefct of national exul
tation and pride that we now
poffefTed a clear income of
near 30,000,000 k The great
quellion (hen in finance was,
how those means were to be
made mod applicable lo the
nectffary expendituie of the
country. Although fome far
ther increase in our expences
might be made necessary ei
ther by the increased price of
naval dores, or by future sub
fidies to foreign powers, yet
with such a free income war
might be carried on (if necessa
ry) for an almod indefinite
period without the neceifity of
large loans.
The expence of the coun
try for the next year he had
dated at 40,527,065 b The
Ways and Means would ex
ceed that sum by about 500*
0001. From the expence.
however, of the present year,
in calculating our annual ex
pence, there fhouid be deduc
ed one million and a half sub
sidies, 358,000 k of payment
on account of the Loyalty
Loan, which was a circurn’
dance that would not again oc
cur, and this would reduce it
to 38,677,000!.
The Loan, which he fhouid
date for this year at 12,000,
0001. was to be charged on the
interclt of the War Taxes;
and ihe Loans which were to
be raised in the succeeding pe
riods of the war, would be also
charged on different portions
of the War Taxes. It was
proposed for every Loan to
take a proportion of the War
Taxei, amounting to 10 per
cent, on Loan, and that one
half of this fhouid be applied
as a Sinking Fund to the re
duction of the debt so charged
upon the War Taxer, and to
let them free. Fourteen years
would be fufficient to redeem
any Loans to bemadein future.
He thought it would be the best
way to consider what would be
the effect of this measure, as ap
plied to the loan of the present
year. The loan being 12,000,
0001. l.:>.00,000l. would be de.
tached from the war taxes, in or
der to meet it, and to form a
Sinking Fund for its redemption-
This Sinking Fund would, in the
course of lourteen years, redeem
the loan ot the present year, and
m she same in&nner the loan of
I every preceding year would also
i>e redeemed iu the course ol the
next fourteen years. If he were
tc look to a pei iod of fourteen
vears of war, d !r . . H
| the la- 1 ten yea-s
, increase from tiv,.],,
millions; hat a. t !-„
fourteen years the 1 , K
present year h , V H
and as evetv
would also rt-dei ;n 3
one year, it would IV!,
even a war of such H
would not. exhtur t uis r . r H
r 's ‘ho country, h u t |,, H
would he perpetually r en |
and unimpaired. A1
loans should !> e char-- ci i H
War 1 axes geneta’h ,v t : tc ®
he easily arranged i n s qc ; 1: ’ ■
ner that the property tax |
nut be fettered a mo mcil , ■
the peace. The taxouirh„B
in variably applied accorii-M
i>s original institution, ■
during war. For tin,
carrying this system into
tion, it would be n-reuvfl
have a small Supplementary |
every year equal to that p :l |
the war taxes which shv,il
detached to meet the iaurcfl
the loan. |
For the present year V;|
plementary loan would L, |
si .il, only 200,0001. |
In the years 1807, 18ml
1309, annuities would fal|
which would make it a ; )-(h|
unnecessary to impose any |
tax by way ofcoveringiiic il
esto! those supplementary |,|
In the year 1807 annuiti w |
fail in to the amount of r;g|
I' l the year 1803, of 85u;j|
> n the year 1809. to the air.|
of 173,8431. which math- a |
in the three years of 2t9}|
which would he more than ,|
cientfor that purpose. Tiie|
plus of this sum over the itv.cH
of the supplementary loans d®
next three years might besa|
tributed among the next s®
years, that even if me wars'll®
last for ten vears, the new tal
at the end of that period col
only amount to 385,5151. tvl
there were no surplus tonrr®
that necessity. If, hmveva®
the one side, it was sup®
that the expences of future 1 ®
would be greater than th®
the present, on account oIH
increased pric<* of naval stefl
and other articles, i: must I
same time be recoliccnd I
the produce of the taxes w®
be greater also. 9
It was a pleasing reSecti®
think that the war might b; I
lied on with eq ml, if not I
greater vigor than it has kithl
been conducted, without rqß
ing anew tr,x for r.lie next uB
years; and that if then weshoß
not arrive at peace, hut thitl
war was even to be proincß
for seven years longer, the B
taxes then would be merely lB
ling, supposing die necessity I
isted of laying on new taxes; B
that there was every reasoß
imagine, that even in case I
vvar should he protracted t!iH
‘j would be no necessity for B
j taxes. Supposing even thaß
I the end oi ten years, the B
should be protracted lor I
years longer,even then, althoß
the supplementary loans nmsß
course increase, yet sti l at I
end of that period the new tafl
could not e.-iceed 3,459,00<8
this was taking almost as unlaß
rable a view of the case as >B
be had, when he supposed I
vvar to last for 20 years. I
Such would be the result!
transferring the interest c I
loan to the War taxes. I
should now proceed to what■
had stated as the other basal
the measures that he intended
propose. When the ns "V 3 !
lrg Fund was established) -
Pitt foresaw the inconvenient
the mischief which might ar
from ihe extinguishing at
a very large portion ol
onal Debt. If the two
Funds had been allowed to
cumulate to their full cX£etll ’,
mischief would have lo >
that at one and the saitw 11
immense capital would l‘ ait
destroyed. In fact b_.
all their capitals to the ■
of stock, capital
cease to be of value, an *■ ••