referring for proof to certain tables which were to be put into the hands of the members; and he said that the immediate result of the system would be equal to a subsidy of above 100 millions; so that for four years to come, upon the supposition of the continuance of the war, it might be hoped that it would not be necessary to impose any other new taxes, than such as were requisite to furnish the additions to the sinking fund which he had mentioned. He concluded with reading a number of resolutions to be submitted to future discussion.

The conversation which ensued, consisting of observations hazarded without any precise understanding of the proposed plan, may be passed over. A future day was appointed for the further consideration of the subject.

On March 25th, the House being in a committee on the finances, Mr. Huskisson rose and made a long and elaborate speech, discussing the nature and merits of the plan proposed by the chancellor of the exchequer. As his arguments were entirely founded upon matters of calculation, they are incapable of abridgment; the general tenor of them, however, was to show that the new plan was an entire and dangerous deviation from the principles of Mr. Pitt's sinking fund system, and a breach of faith with the public creditor; and that the advantages it held out were mere fallacies.

The Chancellor of the Exchequer in reply said, that his right hon. friend had totally misunderstood his plan, and the principles on which it was founded; and he answered some of the principal objections

which had been stated in the preceding speech.

Mr. Huskisson's arguments were supported by Mr. Baring, Mr. H. Thornton, and Mr. Tierney: and the Chancellor's plan was defended by Mr. Long and Mr. Rose. The report was ordered for the next day.

The subject being resumed on March 26th, Mr. Baring said, that he should acquiesce in the motion for bringing up the report, with a view of moving a resolution that the House would early in the next session of parliament take it into consideration. He observed that the great argument used by the supporters of the new plan was, that it would relieve the country from the burthen of additional taxation; but a very small increase of taxation would enable the existing system to be continued another twelvemonth; and he was persuaded that parliament would not object to such an arrangement being made as would leave the new measure in an effective operation at the end of the year, if it were thought advisable to adopt it.

After several other speakers had entered into the debate, Mr, Baring made his motion as an amendment. It was negatived without a division, after which the report was read and agreed to, and a bill ordered upon it.

The resolutions were as follows: 1. Resolved, "That the total capital of the funded debt of Great Britain, in perpetual redeemable annuities, on the 5th day of January 1786, was 238,231,2481. 5s. 2d. that provision was made for the gradual reduction thereof, by an act passed in the same year; and that further provision has been made, by several since passed, for

the more effectual reduction of the said debt, and of the public debt since contracted.

2. "That, by virtue of the said acts, the sum of 238,350,1437. 18s. 1d. exceeding the said sum of 238,231,2481. 5s. 24d. by 118,8951. 12s. 10 d. had, on or before the first day of March 1813, been actually purchased by the commissioners for the reduction of the national debt, or transferred to the said commissioners for the redemption of land tax, or for the purchase of life annuities.

3. That it is expedient now to declare that a sum of capital stock equal to the total capital of the public debt, in perpetual redeemable annuities, existing on the said 5th day of January, 1786, hath been purchased or transferred as aforesaid; and so soon as further sums of the public debt shall have been so purchased or transferred, making in the whole an amount of annual charge of the public debt 'so purchased or transferred, equal to the whole annual charge of the public debt, in perpetual redeemable annuities, existing on the said 5th day of January, 1786, to declare further that an amount of public debt equal to the whole of such capital and charge of the public debt, existing on the said 5th day of January, 1786, hath been satisfied and discharged: and that, in like manner, an amount of public debt equal to the capital and charge of every loan contracted since the said 5th day of Jan. 1786, shall successively, and in its proper order, be deemed and declared to be wholly satisfied and discharged when and as soon as a further amount of capital stock, not less than the capital of such loan, in

perpetual redeemable annuities, and producing an interest equal to the dividends thereupon, shall be so redeemed or transferred.

4. "That, after such declaration as aforesaid, the capital stock purchased by the said commissioners, and standing in their names, in the books of the governor and company of the Bank of England and of the South Sea company, shall from time to time be cancelled, as if the same had been transferred for the redemption of land tax, at such times and in such proportions, not exceeding the amount of debt so declared to be satisfied and discharged, after reserving thereout any sum or sums necessary to make provision for the payment of all life annuities chargeable upon the sinking fund of Great Britain, as shall be directed by any act or acts of parliament to be passed for such purpose; in order to make provision for the charge of any loan or loans thereafter to be contracted upon the same funds or securities, as are chargeable with the said stock so declared to be satisfied and redeemed.

5. "That, in order more effectually to secure the redemption of the public debt, conformably to the provisions of the acts of the 32nd and 42nd years of his present majesty, it is expedient to enact, that all sums granted for the reduction thereof, by the several acts aforesaid, should be further continued, and made applicable by the reduction of all public debt now existing, or which may be hereafter contracted during the present war.

6. "That, in order to carry into effect the provisions of the said acts of the 32nd and 42nd of the

king, for redeeming every part of the national debt within the period of 45 years from the time of its creation, it is also expedient, that in future, whenever the amount of the sum to be raised by loan, or by any other addition to the public funded debt, shall, in any year, exceed the sum estimated to be applicable, in the same year, to the reduction of the public debt, an annual sum, equal to one half of the interest of the excess of the said loan, or other addition beyond the sum so estimated to be applicable, shall be set apart out of the monies composing the consolidated fund of Great Britain, and shall be issued at the receipt of the Exchequer to the governor and company of the Bank of England, to be by them placed to the account of the commissioners for the reduction of the , national debt, and upon the remainder of such loan, or other addition, the annual sum of one per cent, on the capital of all perpetual redeemable annuities created in respect thereof, according to the provisions of the said act of the 32nd year of his present majesty.

7. "That, in order to prevent the increase of the public debt, by means of Exchequer bills annually renewed, or other unfunded government securities, bearing interest, it is expedient that, on the 5th day of January in every year, an account be taken of all such Exchequer bills, and other government securities, outstanding and charged upon funds not deemed capable of making good the same, within one year from such 5th day of January, and that a sum equal to one per cent thereupon be granted out of the supplies of such

year to the said commissioners for the reduction of the national debt. 8. " That, for the purpose of giving effect to the above resolutions, it is expedient that the said act, passed in the 42nd year of his present majesty, be amended.

9. That it is expedient to make provision, that an annual sum of 867,9631. being equal to one per cent on the capital stock created in respect of several loans raised by virtue of divers acts passed in the 38th, 39th, and 40th and 42nd years of his present majesty, and for the interest and charges of which provision was made in the said 42nd year of his majesty, shall be set apart out of the monies composing the consolidated fund of Great Britain, and shall be issued at the receipt of the Exchequer to the governor and company of the Bank of England, to be by them issued to the commissioners for the reduction of the national debt.

10. That it is expedient to make farther provision for the more effectual and speedy redemption of the land tax.'

On April 2nd, Mr. Tierney introduced a motion respecting the sinking fund, the object of which, he said, was to call the attention of the House to the foundation on which the plan of the Chancellor of the Exchequer was erectedwhether his measure was a true and equitable construction of the acts of the 26th, the 32nd, and the 42nd of the king; and whether, without a breach of faith with the public creditor, he had the means of carrying into effect all the details of the bill before the House. The hon. member then gave an account of the nature and purpose

of the several acts above specified, and endeavoured to show that the plan proposed was entirely inconsistent with the spirit of that of 1802. He concluded by moving, "That a select committee be appointed to take into consideration the acts passed for the more effectual reduction of the national debt, in the 26th, 32nd, and 42nd years of his majesty's reign, and to report to the House whether due regard being had to the just claims of the holders of shares in the several public funded securities, purchased subject to the operations of the said acts, any and what part of the monies placed to the account of the commissioners for reducing the national debt, can now be placed at the disposal of parliament."

The Chancellor of the Exchequer contended, that on no former occasion of a similar kind had a committee been previously appointed to investigate the details of the subject. He made various remarks to show that his plan involved no breach of the public faith, and said that he should dissent from the motion.

After some observations on each side from different members, the Attorney General rose to give a legal opinion as to the effect of the proposed measure on the three acts of parliament referred to, and held that there was not the smallest violation of good faith, or infraction of the law, in its operation.

The House at length divided; for the motion, 59; against it, 152; majority, 93.

The third reading of the bill, the title of which was, "To alter and amend several acts passed in his present majesty's reign, relating

to the redemption of the national debt; and for making further pro, vision in respect thereof," was moved on April 7th. The debate on this occasion presented nothing new in argument, and the bill passed the House.

The second reading of this bill in the House of Lords was moved by the earl of Liverpool on April 12th, in a speech which recapitulated the substance of that of the Chancellor of the Exchequer.

The Marquis of Lansdowne advanced some objections, chiefly founded on the injury to the security of the public creditor, which would result from this measure. He did not mean, however, to give it a pertinacious opposition.

The Earl of Lauderdale spoke in depreciation of the sinking fund altogether, and declared himself to be one of those who held all plans of finance very cheap, in comparison with an effectual plan of public economy.

No other proceedings are recorded concerning it in the House of Lords, and it soon after passed into a law.

In connection with financial matters, it may be proper to notice the renewal of an attempt to bring in a bill respecting sinecure offices upon the same principles with that which had been rejected in the last session of parliament. It was moved in the House of Conimons on Feb. 12, by Mr. Bankes, who introduced it with some general observations on the nature of the intended measure, for the information of the new members. Its essence was the gradual abolition of sinecure offices as they should fall vacant, with the provision of a permanent fund for the adéquate