and that, upon the death, refignation, or removal, of every treasurer of the ordnance, the balance on the credit of his account fhould, upon the appointment of a fucceffor, velt in, and be carried over to the ac count of fuch fucceffor.

The terms upon which the contracts are made relative to the payment of the debentures in courfe, are not the most beneficial to the public: the contractor understands, at the time he makes his terms, that, without an exprefs ftipulation, he is not to be paid ready money for the articles he fupplies, or the fervice he performs, but must wait until he comes in turn. After thofe creditors are fatisfied whose demands are of a prior date: he knows too, that there ftands before him a long lift of unfatisfied arrears; and he can form no judgment to what period the increafing emergencies of the ftate may protract his payment, he is to be allowed no intereft for his debt; and his debenture will be for a fum fo great as to be out of the reach of common purchafers. Under thefe circumstances, in order to fecure to himself a fair and reafonable profit upon his contract, he must calculate what will be the value at market of the fecurity he is to receive for his debt; and he calculates this value, not at the price thofe fecurities bear at that time, or have borne at any proceeding period, but according to the lowest price to which the declining state of public credit may deprefs them: agreeable to fuch an estimate, he frames the terms of his propofals; and thus is government compelled to purchafe, at an extravagant rate, thofe articles that are affential to the defence and fecurity of the kingdom. Public credit is depreded by the number of its fecurities at market;

and we fee the return, without the bleffings of peace. The ordnance debentures have been lately at a difcount of 33 per cent. It is a difgrace to a nation, to fuffer the demands upon them to be brought to market fo depreciated, as to be fold at a price fixed by the courtesy of the purchafer, and accepted from the neceffity of the public creditor.

It is the part of a wife and faithful government to guard against thefe mifchiefs in their future contracts. The cheapest of all bargains, in public as in private life, is that made with ready money. If prompt payment be impracticable, a flated time of payment, strictly kept, is the next eligible method; and, laft of all, an allowance of intereft, according to the current value of money, punctually paid, upon fecurities eafily negociable.

Ordnance debentures are frequently made out for the amount of the demands, and, containing large fums with fractions, are negociated with difficulty and lots to give them that facility of circulation which, for the credit of the state, ought to attend all their fecurities, the fractions fhould be paid to the creditor in cafh, and the integral fum diftributed into debentures or bills for even fums, not exceeding 200l. each, and made transferrable with as little formality as India bonds or exchequer bills; and by that means they will bear an equal value in the market. These regulations extended to every board intrufted with the public expenditure, will enable them to treat upon terms more favourable to the public, and tend to the attainment of that great object, fo needful in every department of the state, a frugal administration of the public revenue. To carry regulations of

this kind into execution requires an efficient fund: it fuppofes that the produce of the revenue fall keep pace, at least, with the expenditure; it fuppofes a state of afflu. ence. That the nation may be reftored to fuch a state, it is the duty of every individual fubject to lend his affiftance, to the extent of his abilities private opulence is equal to the task; public juftice and public credit demand the exertion: a wife and frugal management on the part of government, and a fubmiffion to the payment of productive taxes on the part of the fubject, will accomplish this neceffary end.

:

It is unneceffary for us to urge the propriety of proceeding to a fpeedy examination into the voluminous lifts of fub-accountants, that fwell the official accounts of every treasurer of the ordnance, in every year we need not repeat the reafons we have given, in our reports upon the pay-offices of the navy and army, for liquidating the like accounts between the government and the subject, exiting in thofe offices. The board of ordnance have it in contemplation to call upon the fub-accountants to clear their imprefts; and for this purpose, by their order, dated the 22d of January laft, they have directed the clerk of the ordnance to prepare for them a lift of the imprets remaining in force, and of

the debts due to the ordnance.

That most useful and neceffary regulation, the abolition of all fees, gratuities, and rewards, and the fubftitution of certain fixed falaries in their stead, being adopted in the office of ordnance, and by his ma jefty's warrant of the 24th of Ja nuary 1783, before alluded to (with the exceptions therein mentioned), we are relieved from any enquiry into the quantum and fources of the

profits of the feveral officers employed in this extenfive department. In the establishment annexed to, and carried into execution by, that warrant, a falary is appointed to each office; and the annual amount of them, together, is 34,4571. is. 6d.

In every office, thofe perfons who prefide, and are intrusted with the fuperin ending power and control over the whole, having full knowledge of the bufinefs allotted to each divifion, are the proper judges what number of officers and minifters are neceffary, and what industry and talents are requifite for the performance of every branch of the duty: it must reft upon their judgment and fidelity to the public, that neither the number nor falaries exceed the demands of the fervice. Before this regulation was in force, fees and gratuities, under the fanction of cuttom, were paid by the contractor, in various fiages of his tranfaction with the office, from the procuring his contract, to his payment by debenture: a contract for the hire of a fhip of 700 tons, 20 months in the fervice, coft the contractor, in agency, fees, and gratuities, 3821. One per cent. the customary poundage for agency only, upon 2,180,3961. the amount of the freight, is 21,8031. Whatever faving accrues from this regulation is gain to the public; for the contractor, to infure his profit, will charge it in its fullest extent to the account of the public.

This regulation is a part of that fyftem of economy that ought to be extended to every revenue department, whether of receipt or expenditure. The exertion of the authority of the fuperior officer, vefted in him by virtue of his of fice, with his majesty's approbation and confirmation, has effected it in

the

the ordnance: were the fame feps taken in other offices, the fame end would be attained: there is hardly any office but poffeffes the like powers, lodged either with the fupreme officer or a board; and, hould any defect or obftruction check the exercife of the power, the legislature can lend their ad. The utility of the regulation has the fanction, not only of high authority, in the inftance before us, but of the declared fenfe of the legiflature, by their etablishing it in the office of the paymatter-general of his majesty's forces.

It appears from this inquiry, that the auditor of the impret is employed upon the ordnance, as upon the navy and other accounts that have been before us, in little more than comparing different entries of the fame fums, and examining the formality of vouchers, and the accuracy of computations and caftings: thofe circumftances of the account in which the intereft of the nation is the most materially concerned, the terms of the contract, and the fidelity of the execution, are not within his reach the board of ordnance alone are intrusted to decide upon them, and upon the authority of the fignature of the board-officers he admits the voucher for an expenditure to be true in every circumstance, except in thofe which, being confidered as the leaft important, are ufually commited to the care of inferior clerks.

This account first undergoes, in the office of ordnance, an examin. ation fimilar to that given to it by the auditor of the impreft, every article is checked by the proper of ficer; and the final examination of the ledger with the vouchers is made by the board previous to their fignature. a fecond examination of the fame kind, in another office, at

the expence to the public of 310l. a year, the customary fee to the auditor for the business transacted by him, feems to be of no ufe; and therefore we are of opinion, that auditing the accounts of the treafurer of the ordnance in the office of the auditors of the impreft, is an unneceffary expence to the public, and ought to be difcontinued: that, after thofe accounts have been fully examined by the board of ordnance, the articles fhould be ranged under diftinct and feparate heads of fer. vice, and the accounts reduced into the official form, by the treasurer of the ordnance, and by him paffed through the neceflary offices of the exchequer.

Having, in conformity to the exprefs directions of the legislature, inquired into and included in our reports upon the offices in the receipt of his majefty's exchequer, and upon the pay-offices of the navy and army, an account of the profits and emoluments accruing to the feveral officers and minifters in those departments, we directed our attention to the fame object in the office of the auditors of his majesty's impreft: we required from them an exact state of the falaries, fees, and gratuities received or to be received by the officers and clerks in their offices for business transacted there in during the year 1783, together with an account of the fees claimed by fuch officers and clerks, for the feveral fpecies of business.

Five accounts were tranfmitted to us purfuant to this requifition, and are inferted in the appendix: two of them contain the grofs and net amount of the falaries and fees received by each of the two auditors themfelves in the year 1783. Two of them, the amount of the falaries, fees, allowances, and gratuities received by the deputies.

and

and clerks in each of the two of fices in the fame year; the fifth is an account of the fees and gratuities claimed by the officers and clerks on the feveral fpecies of bufinefs tranfacted in these offices.

From these accounts, and from the examination of Charles Harris, efq. one of the deputy auditors of the impreft, we learn what are the eftablishments in the two divifions of the office of the auditor of his majesty's impreft, and by what means they are fupported.

One of thefe divifions confifts of the auditor, one deputy, nine clerks, eight extra clerks, and a meffenger: the other, of the auditor, two deputies, cight clerks, eight extra-clerks, an office-keeper, and a meffenger.

Since the beginning of the year 1781, the establishments and a number of extra clerks in each divifion have been increased, for the purpofe of bringing up and completing the arrears of bufinefs in the office. The deputies, and all the clerks and officers, are in the appointment of the auditor; to all of them he pays falaries, and to fome of them he adds allowances, out of his fees and payments, for extra-work. The deputies receive all the profits of the office, and account to the auditors and clerks for their fhares. The whole expence of the office is defrayed by the auditor.

The profits of the auditors arife from falaries and fees. The falaries are inconfiderable; one hundred marks granted to each in the letters patent by which he holds his office, payable out of the exchequer, and certain other small falaries, the whole amounting to about 100l. a-year to each of them. His fees depend upon the accounts audited, and the inrolment of public instruments in the office. In the

ordinary accounts, the fees upon fome of them are a certain payment upon each account, whatever may be the amount of the fum accounted for; upon others of them the quantum of the fee bears a certain proportion to the fum in the ac count; but for the army account he receives both a fixed fum for each year's account, and also a certain fum for each troop and company the pay of which is contained therein. The fees upon extraordinary accounts are uncertain; they are in proportion to the length and period of the account, and the trouble it gives to the office. The fees for inrolments are fmall payments, according to a table long eftablished in the office. The fees to the auditor are, except fome of thofe arifing from inrolments, all at the expence of the public; for the auditor inferts them, and they are allowed in the discharge of the accountant.

The authority upon which the auditor grounds his right to fees, is either the warrant of the lord high treasurer Godolphin, in the year 1704, alluded to in our last report, which ascertains the fees to be taken by him for auditing most of the ordinary accounts fubject to his cognizance; or otherwife the royal fign manual, or the treasury warrant, allowing the fee craved by him in his memorial to the treasury, for auditing any particular account.

The deputies, befides the falaries paid to them by the auditor, receive fees and gratuities. The fees are certain known fums upon certain particular accounts, grounded upon ufage in the office; fome of thefe are inferted in the accountant's bill of incidents, and confequently paid by the public. The gratuities are voluntary donations by the accountants, but limited to fuch fums as

the

the deputy understands to have been ufually given upon auditing accounts of the fame or a fimilar defeription.

The clerks have, over and above their falaries, for fome accounts, certain payments; for others, a certain proportion out of the fees to the auditor; they are allowed like wife by him fums for ingroffing, and for extra bufinefs; and have gratuities from individuals.

By the accounts before us, it appears, that in the year 1783, the grofs-receipt of one of the auditors was 19,8081. 16s. 6d. ; the expences of his office 35781. 128. 6d.; and his net recript 16,230l. 4s.: of the other auditor the grofs re. ceipt was 19, 109l. 98. 1d.; his expences 30361. 6s. d.; and his net receipt 16,3731. 35. 44. The payment to the deputies and clerks in the firft office amounted to 39731. 128. id.; of which 30491. 18s. 6d. was paid by the auditor out of bis profits, and 9231. 138. 78. in fees and gratuities; this lat fum being added to the grofs receipt of the auitor, makes the total expence of the office 20,732l. 10s. 1d. The amount of the payments to deputies and clerks in the other office was 34891. gs. 8d.; of which 26191. 8s. 7d. was part of the profits of the auditor; and 870l 1s. 1d. arofe from fees and gratuities; which, added to the grofs receipt of the auditor, increases the total expence of that office to 20,2791. 118.

Hence it appears, that in the year 1783, the grofs fum received by all the officers and clerks in the two divifions of this office, was 41,012l. 1s. 1d.; the net profits of the two auditors was 32,6031. 78. 4d.; and of the deputies and clerks 74631. s. 9d.; and the whole of that grofs fum (except a part of about 400l. the ufual amount of fees from 1786.

inrolments; and a part of 17931. 145. Sd. the amount of the fees and gratuities paid to the deputies and clerks neither of which parts can be easily afcertained) was a charge upon the public.

But neither of the auditors confiler the funs flated in the accounts of their own falaries and fees, as properly the profits of the year 1783, though received in that year; they reprefent them as fwelled to an unusual magnitude by the ex. traordinary industry and exertions of the officers and clerks, in clear. ing away, is that year, the arrears of accounts of former years: for thefe arrears the one deducts 78441. 178. 6d. and reduces his clear profits for the ordinary annual business of the year 1783, to 83851. 6s. 6d. ; the other deducts 86471. 125. 3d. and reduces his clear profits to 77251. 118. id.

The year 1783, then, being a year of extraordinary diligence, the profits of that year was no rule by which we could form a judgment of the general annual profits arifing from this office; and there. fore we required from the auditors an account of the annual grofs and net receipt of the profits of their offices, for the five years preceding the year 1783. The returns to this requifition are inferted in the Appendix; in one of them, the average net receipt is 60241. 88. 8d.; in the other 69641. 75. 6d. ; to which, if one fifth of the profits be added, from the arrears received in the year 1783, fuppofing them to be the arrears of thofe five years, the one fum will be increafed to 75931. Ss. 2d.; and the other to 86931. 175. 11d.

In the progrefs of our inquiry into the manner in which the public accounts are audited in this office, we have not been able to dif(M)

cover,