LIBRARY OF THE UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN CENTRAL CIRCULATION AND BOOKSTACKS The person borrowing this material is responsible for its renewal or return before the Latest Date stamped below. You may be charged a minimum fee of $75.00 for each non-returned or lost item. Theft, mutilation, or defacement of library materials can be causes for student disciplinary action. All materials owned by the University of Illinois Library are the property of the State of Illinois and are protected by Article 1 6B of Illinois Criminal Law and Procedure. TO RENEW, CALL (217) 333-8400. University of Illinois Library at Urbana-Champaign r m When renewing by phone, write new due date below previous due date. LI 62 HINT S; ADDRESSED TO THE U B L I C. r --; HINTS; ADDRESSED TO THE PUBLIC. CALCULATED TO DISPEL THE GLOOMY IDEAS WHICH HAVE BEEN LATELY ENTERTAINED OF THE STATE OF OUR FINANCES. B Y JOHN SINCLAIR, E s o^ London: PRINTED FOR T. CADELL, IN THE STRAND. MDCCLXXXIII. [PRICE ONE SHILLING.] HINTS, fee* npHE attention of Parliament is likely -*" to be diffracted for fome time to come, by the variety and importance of the different queflions which will require its confideration. Without adverting to Reforms in Parliament ; to the neceflity of improving the only mode of Mili- tary Defence by which the Liberties of this country can be fafely protect- ed ; to the new fyftem of Commercial Regulations, which mud fooner or later be devifed ; and indeed to a variety of other points; one fubjecl will require early and deliberate attention, namely, B what ( 6 ) what fleps ought to be taken to fupport the Credit, and to improve the Finances of the Country. It is the more neceflary to inveftigate this fubjecl, as it has been of late too com- mon for even refpeclable Individuals to amufe themfelves, and to terrify the Pub- lic, with exaggerated accounts of the dangerous ftate of the National Finances. The more our difficulties increafed, the greater pleafure they feemed to take in publishing our fituation to our Enemies ,* in damping the exertions of thofe, by whofe judgment and abilities alone, we could be extricated from the difficul- ties in which we were involved ; and in proving to what fatal lengths even va- luable Characters may be led, in fupport of a favourite hypothefis. ( 7 As an individual anxious for the ho- nour and profperity of his Country, I mud take the liberty of entering my Pro- teft againft the general tendency of fuch Performances. Every attempt to aflign a period, however remote, for the ruin of a large Community, (hikes me as highly impolitic. Nature has wifely rendered the exiflence of the individual uncertain, left the fear of death fhoulcl embitter his days, and difcourage him in every purfuit, even the mod laudable : and what reafon can be affigned why the order of Nature mould be reverfed, when Empires are in queftion ? Difpirited Na- tions, like difpirited individuals, are in- capable of fuccefsful efforts to extricate themfelves from danger : befides, the ap- prehenfionof evil is juflly accounted more dreadful than its aclual exiftence. B 2 Neither ( 8 ) Neither ought fuch performances to be countenanced in a country, which has long been confpicuous for popular diicon- tent ; even in the mofl flourifhing circum- flances, that perhaps a nation ever knew. Whether it originates from the natural turbulence of a free Pcoole, or from the gloomy atmofphere that we breathe ; cer- tain it is, that the inhabitants of this Ifland have long been difcontented with their fituation ; and the world has been flunned with their perpetual prognoftica- tions of ruin upon ruin, for at leaf! a century part. But fortunately, numerous Taxes, and Debts, however enormous, are not fuffi- cient of themfelves to render a Nation miferable ; and there is flill reafon to imagine, that, as we now ridicule the ill- founded defpondency of our anceftors, who ( 9 ) who imagined that fifty or a hundred millions would reduce them to a ftate of bankruptcy ; fo our poflerity will laugh at the folly, the ignorance, or the want of political Ikill and judgment in the Statefmen and Politicians of thefe times, whoprefume toaffert, that we have totally cxhaufted our refources ; and that the period is at laft arrived, when the Nation mud either deftroy her Debts, or her Debts will deftroy the Nation. Among the many gloomy Prophets of the Day, a refpeclable Nobleman has, in a particular manner, diflinguifhed himfelf, by an alrnoft annual offering at the flirine of Defpondency. His former fpeculations had this merit to recommend them, that they tended to demonftrate the fatal policy of continuing the American War, from which, confidcring the manner in wJiic~hit zvas conducted, we could expccl no advantage : but ( 10 ) but his laft Publication cannot be fb eafily juflified. Our public diflreffes had been before fufficiently announced ; and it was highly improper, by queftioning thefolidity of our public fecurities, to pre- vent Government from being able to ob- tain, on favourable terms, the money which it required for the exigencies of the State ; and flill more fo, by exaggerat- ing the weaknefs of the country, to give encouragement to our Enemies to break off the Peace, and renew the conflict with a country, fuppofed to be already ex- haufled. Far different is the hypothefis I mean to fupport ; and if it can be proved by in- controvertible evidence, that our diftrefles have been too deeply coloured — that our financial refources are not totally de- ftroyed ; and that Britain may flill retain her elevated rank among the Potentates of Europe ( ix ) Europe— I fliall not defpair of finding the Earl of Stair himfelf, among the happieft of its Citizens. But to enter, without farther pre- face, upon the intended fubjecl. There are four Points infilled on by the Noble Lord, which I beg leave to controvert. The firft is, That the an- nual Income of this Country (by which I underfiand the produce of the exifling Taxes) does not exceed, or will not yield much above Twelve Millions net yearly. * Secondly, That the enormous fum of 16,37 1,3461. is but Jcantily fiifficient to de- fray the National Expence. t — Thirdly, That the Unfunded Debt is at lead Forty Million* ; the intereft of which will amount * See An Attempt to Balance the Income and Expen- diture of the State, by John Earl of Stair, page 4. f Ditto, page 9. ( 12 ) amount to full Two Millions.* And fourthly, That to raife additional Taxes to the amount of 4,371,3461. were it neceflary, is among the bared of all bare poflibilities. t I. NATIONAL INCOME. The prefent is the moft unfavourable period that could poflibly be pitched up- on, for inquiring into the real amount of the National Income : juft at the conclu- fion of an unfortunate War, in the courfe of which we loft the principal channels of our Trade, and the moft valu- able of our Colonial Poffeffions- — of a War carried on at a great diftance, for the fupport of which War, large bodies of our fellow-fubjecls had been fent abroad, and con- * An Attempt to Balance the Income and Expenditure •f the State, by John Earl of Stair, page $. f Ditto, page 12, ( *3 ) Considerable fums in the current fpecie of this country had been exported ; and the laft year of which was diftinguifhed by the moil unfavourable feafon, for the pro- duction of every kind of human fufle- nance, that for many years had been remembered. If at fuch a period, there happened to exift fome defalcation in the different revenues of the State, no indi- vidual, who was not wrapt up in fome fa- vourite hypothefis, would have founded any uniform train of reafoning upon fo cafual an event. Indeed, no controverfy of this nature, could poffibly be brought to a conclufion, were the exuberance, or the fcantinefs of a fingle year, to be ac- counted a fufficient bafis for forming a Syftem. The queftion therefore is, not what was the Income of the State for the year 1782, but what will be the produce of the different Taxes at prefcnt laid upon the Public, fhould the Peace continue, G and ( H ) and Chould no unforefeen public calamity diminifh the wealth, and confumption of the people. That produce, judging from analogical reafoning, I am convinced, will exceed in the year 1785, or at far- theft in the year 1786, fourteen millions per annum. The prefent Income of the State may be divided into four different Branches : Firft, into the Old Taxes, which were confolidated by 3 Geo. I. c. 7. and the fur- plufTes of which compofe the original Sinking Fund. Secondly, into the Taxes which were added to the Sinking Fund before the commencement of the prefent War. Thirdly, into the Taxes which, have been laid on in the courfe of the War. And fourthly, into the Land and Malt Taxes, which are only annually granted. There ( *5 ) There cannot be a better fign of the Uniform Increale flourifhing flate of our National Finances, oft heOld Taxes. than when the Old Taxes annually pro- duce a confiderable addition to the Public Revenue. New Taxes may be improper- ly laid on ; or from the erroneous calcu- lations of the propofers, may not yield fo much as might be expe&ed, and confe- quently cannot be confidered as a bafis fufficiently folid on which to lay the foun- dation of an incontrovertible Syltem. But the produce of old and eftablifhed Taxes is well known, and nothing can increafe them, but the increafing wealth and po- pulation of the country. The Old Taxes to which I allude, are ufually diftinguifhed by the names of the Aggregate, the General, and the South- Sea Company's Funds. The furplufles of thefe three great Funds, after paying the Civil Lift, and the Intereft and An- C 2 nuities ( 16 ) nuities charged upon them, are direded by the faid act 3 Geo. I. c. 7, to be accu- mulated together into a Sinking Fund, for the purpofe of diminifhing the National Debt. It will appear, from the following State, that during the fpace of thirty years, the excefles of thefe Funds have almoft uniformly increafed. State of the Surplusses of that Part of thePublic Revenue, commonly called the Aggregate, Ge- neral, and South-Sea Company's Funds, jince 1 6th Otlober, 1 7 5 1 , * after paying the Sum 0/ 1,428,1 9,6/. 3 s. lod. to which the faid Funds are annually liable ; exclufive of the 100,000/, lately granted to the Crozvn. Surpluses of the faid Funds for one year, ending £. s. d. ioOcl. 1752 1,451,050 o 2 Ditto - 10O&. 1753 i,54i.397 7 io{ Surplufles y The above State commences Anno 1752, as it was only 1753 that any New Taxes were at firit thrown into the Sinking Fund. ( '7 ) Surpluffes of the faid Funds for one Year, ending ioOa.1754 Ditto - i oOd.1755 Ditto - ] to oa. 1756 Ditto - 3 toOd. 1757 Ditto - 3 tooa. 1758 Ditto - 3 oOd. 1759 Ditto - 3 oOd. 1760 Ditto - 3 oOd. 1761 Ditto - 3 oOd. 1762 Ditto - i .oOd. 1763 Ditto - [oOa\i764 Ditto - ] to Od. 1765 Ditto - j [oOd. 1766 Ditto - 3 oOd. 1767 Ditto - } [oOd. 1768 Ditto - ] to Od. 1769 Ditto - 3 [oOd. 1770 Ditto - i [oOd. 1771 Ditto - [oOd. 1772 Ditto - [oOd. 1773 Ditto - ] toOd. 1774 Ditto - roOd.1775 Ditto - roOd. 1776 jr. s. i. 1,503,298 13 71 1,614,505 O I i*5 66 >943 II 6 1*665,2,37 10 4f 1*835,044 3 8{ 1,831,260 12 6J- 2*308,505 l8 4f 2,301,527 17 iol 1,768,242 9 1 2*209,434 9 7! 2,172,828 1 6J 2,224,094 18 oj 2 >37 2 *3 I 3 l8 j 2,217,068 17 2| 2*036,436 9 Of 2,368,906 II if 2,596,967 16 8 2 *5 2 3*53 6 J 3 4 2,276,096 15 1 2*850,913 3 io| 2,528,662 17 iof 2,73°>439 I2 8 * 2*7 88 >7 J 3 5 IQ i Surpluses ( 18 ) Surpluses of the faid Funds for one year, ending £. ;. j. ioOct. 1777 2,625,277 10 zj* Ditto - 10 Oct. 1778 2,486,122 2 5 Ditto - io OS.. 1779 2,759,428 4 11 Ditto - 10 Oct. 1780 2,756,502 3 7 Ditto - 10 Oct. 1 78 1 2,672,248 4 4 Ditto - ioOct. 1782 2,762,549 8 io| The above State will afford much room for curious fpeculation. From thence it is evident, that the furpluffes of the Old Taxes have nearly doubled within the fpace of thirty one years — That is furely no fign of a decayed Commonwealth. It is alfo not a little remarkable, that the furpluffes ending 10 Oct. 1762, the laflf * By 17 Geo. III. c. 21, an additional ioo,oool. was given to the Crown, payable out of the Aggregate Fund. As it commenced 5th January, 1777, I have added three quarters payment, or 75,0001. to the furplus for the year 1777, and ioo,oool. to the furpluffes in each of the fol- lowing years ; as this was a burden to which, prior to the year 1777, that Fund was not liable. ( «9 ) laft year of the formerWar, amounted only 101,768,2421. gs. id.— 'With much greater juftice, therefore, might it have been al- ledged, that the Nation was then on the eve of Bankruptcy, than at prefent, when the exceffes on the fame Funds amount to about one million more. The great and immediate increale, as foon as Peace was concluded, fully proves the real fallacy of fuch vifionary fpeculations. But the important inference to be drawn from the above State is this, that had it not been for the American War, the furpluffes of thefe three great Funds would have been greatly augmented ; and when the prefent Peace is firmly eftablifhed, we have every reafon to hope that the excefs may be fairly eftimated at 3,250,0001. per ann. ; and that it may afterwards increafe. It has been already dated, that thefe fur- pluffes accrue to the Public after paying no ( 20 ) Ho lefs a fum than 1,428,1961. 3s. lod.pef annum, to the Civil Lift and to the Public Creditors. Taxes ^he Taxes laid on during the courfe of laid on ° MWar 6 the laft War > or afterwards > to defray and prior t ^ e £ X p ence w ; t h which that War was to 16 r Geo. III. attended, are the next point to which it will be neceffary to advert; and it is a lingular and important circumftance, that they have alfo been upon the increafe ; and that the only deficiency is in the Fund created 31 Geo. II. nor is that of any material confequence. The following ftate commences Anno 1762, that the Reader may perceive the effential differ- ence between the produce of the fame Taxes in time of war, and in time of Peace. State ( 21 ) State of the Pr$duce of the Taxes which were added to the Sinking Fund, to defray the Expences of the loft War, from 10 Oft. 1761, to 10 Obi. 1782. Produce for one year, end- £* s, d. ing 10 Oft. 1762 1,876,019 n 8| Ditto - ioOft. 1763 2,133,049 8 9 Ditto - ioOft. 1764 2,650,772 15 4! Ditto - ioOft. 1765 2,727,736 2 4! Ditto - ioOft. 1766 2,724,732 7 4! Ditto - ioOft. 1767 2,640,188 12 n| Ditto - ioOft. 1768 2,888,352 7 5I Ditto - 10 031.1769 3,031,384 18 7I Ditto - ioOft. 1770 3,192,655 1 of Ditto - ioOft. 1771 3,003,072 6 2| Ditto • ioOft. 1772 2,960,206 5 5I Ditto - 10 Oft. 1773 2,937,630 3 10 Ditto - 10 Oft. 1774 2,961,325 19 1 Ditto - 10 Oft. 1775 2,969,329 19 7 J Ditto - loOft. 1776 3,283,924 16 6| Ditto - ioOft. 1777 3,038,139 8 9J Ditto - ioOft. 1778 3,114,328 14 10 Ditto - ioOft. 1779 3,049,831 9 n| Ditto - ioOft. 1780 3,323,909 13 7I Ditto - 10 Oft. 1 78 1 3,121,785 4 io| Ditto - ioOft, 1782 3,126,776 ii > D . The ( 22 ) The above State mufl be not a little fa- tisfaclory to thofe who pride themfelves in the profperity of their country. From thence it appears, that the Taxes laid on for defraying the Expences of the laft War, increafed from 1,876,0191. lis. 8d|. to 3,126,7761. lis. 3d. and have not been injured (which there was fome rcafon to apprehend) in confequence of the new burdens to which we have been fubje&ed : and if thus an increafe of no lefs a fum than 1,250,0001. took place, notwithftand- ing the unfortunate circumftances of the Country, to what amount would they not have arifen, had that War never ex- ifted ? and how much more is it not pro- able, they will increafe, when the Peace is fully re-efiablifhed ? From the above State, it is alfo evident, that itisimpomble to calculate the produce of Taxes in time of peace from their in- come ( 23 ) come in time of War. The difference is almoft aftonifhing ; and can only be cre- dited by thofe, who have computed the difference in regard to Revenue, between times of rapine and bloodfhed, and times of tranquility. It is not propofed to trouble the Reader Taxes laid on with any State of the produce of the Taxes during the pre- which have been laid on in the courfe of f en t War. the prefent War, for reafons which have been already hinted at in the preceding pages. In facl, it muft appear fufficiently evi- dent, from the State of that part of thp National Income which originated during the lad War, that the difference between Taxes when they are at firft laid on, and when they come in fome degree to be ef- tablifhed, is hardly to be conceived. Thus the Taxes laid on laft War, in the fpace D 2 of ( 24 ) of two years, increafed from 1,876,01 gl. 1 1 s. 8d|. to 2,650,7 7 2 1. 18 s. 4Jd. making a difference of little lefs than 800,000 1. per annum. It is alfo hardly poflible for any Fund, however judicioufly it may be contrived, to yield for fome time, the income which may be expe&ed. Thus the Taxes which were laid on during the laft War, and are now in fo flourifhing a flate, yielding a confiderable furplus, were formerly not a little deficient. Anno 1760, in no lefs a fum than 225,281!. igs. 46. Anno 1765, in 127,4041. igs. 8di. And Anno 1762, in 166,8391. 16s. gdi. As thefe de- ficiencies have now in a great meafure va- nifhed, why may we not expect, that the fame happy circumflance fhould take place in regard to the recent Taxes? Laflly, the Taxes alluded to, are daily increasing in point of produce : particular inftances ( *5 ) inftances will be found at the bottom of the page*. And if the other duties im- prove in the fame proportion, which from part experience we have reafon to expeft, the Taxes laid on fince the commence- ment of the prefent War, will at laft yield the full income that was expeded. What that income ought to be will appear from the following State. State * The following Account will explain, how much the Income of fome of the New Taxes have increafed. Anno 1778 Anno 1779 Anno 1780 Anno 1781 Anno 1782 Auctions Men Servants Port Horfes Houfe Tax £ 26,485 1 £ 34,691 24,486 952 26,392 £ 36,644 43,899 2 5> 8 45 69»9SS £ 36,903 46,970 92,921 "7»83$ 43>3 6 7 52,446 96,933 108,728 And in Scotland, which is not fuppofed to be the mofc productive part of the Ifland, in point of revenue, but where the Taxes at the fame time are very rigoroufly le~ vied, the Excife Duties have rapidly increafed within the fpace of eight years. STATE of the NET PRODUCE of the SCOTCH EXCISE* £ £• 139,888 ,174,651 190,860 211,672 1775 90,889 *779 1776 101,381 1780 1777 *"»3« 1781 1778 ■ 122,679 1782 ( 26 ) State of' the calculated Produce of the New Taxes (laid on fince the Commencement of the prefcnt War) when they were originally pro- pofed. Taxes Ditto propofed Anno 1776 64,500 1777 2,25,000 s. 4 Ditto - 1778 330,000 Ditto Ditto Ditto - 1779 472,000 1780 697,500 1 78 1 660,000 Ditto Total 1782 793,155 £.3,242,155 The Taxes laid on Anno 1776, already yield a confiderable furplus : and though the others have not as yet been equally productive, yet it is fuppofed that the ex- cefies arifing from fome of thefe Funds will make up for the deficiencies of others ; and that the whole will yield an annual produce of 3,240,0001. The ( *7 ) The produce of the Taxes on Land Land and and Malt, when the Land is charged at 4 {hillings in the pound, is well known. The firft is fuppofed to yield 2,000,000 1. and the other 750,0001. As to the defici- encies to which they are liable, if it does not proceed from negligence in the collec- tion, it ought to be made up, by a fmall addition, to either, or to both. It will now be proper to give a fhort State of the probable amount of the Na- tional Income, from the exifting Taxes. State of the fuppofed Produce of the existing Taxes, when Commerce revives , and Peace is fully re-ejlablijhed. 1. To the fixed Payments upon^J £. s. d, the Aggregate, the General, and the South Sea Company's Funds, for f l ^ 2 ^9 6 3 xo One Year — — j 2. To the additional ioo,oool."| granted to the Crown, and charged ^ 100,000 o o on the Aggregate Fund — j Carried over 1,528,196 3 10 ( 28 ) Brought over 1,528,196 3 1a 3. To the Surpluses of the faidi three great Funds, being the fum > 2,850,000 o o they yielded Anno 1773 — J 4. The Surplus on the faid Three ■ Funds Anno 1763, being only 2,200,0001. and in the fpace of ten years, namely, Anno 1773, having produced 650,0001. more, it is fup- pofed that they will now produce, in time of peace, an increafe of in- come to the amount of at lead • J» 500,000 o o 5. To the produce of the Taxes laid on to defray the expences of the lafl War, being the fum they yielded Anno 1780 — ' — . 6. Probable increafe on the fame > 3,300,000 o o 200,000 o o 7. To the calculated produce oFJ the Taxes laid on in the courfe of ^ 3,240,000 1 this War, prior to the year 1783 J o o 8. Land Tax at 4s. in the pound 9, Malt Tax — — 2,000,000 o o 750,000 o o Total fuppofed income from the! ^^9^6 3 IO prefent Taxes — — J I am very ready to confefs, that the above State is partly founded upon con- jeclure ( 2 9 ) jeelure and analogy ; but it is hardly pof- fible to judge of future events upon dif- ferent principles ; and if I happen to be wrong in afferting, that the exifling Taxes of this Country will yield, two or three years hence, a revenue of above Four- teen Millions per annum, the calculation will not be proportionably more errone- ous, than the miflake which the Earl of Stair has fallen into, who, in his flate of the Public Debts, publifhed Anno 1783, (See Account No. 3,) fays, that 931,9451. is more than the Sinking Fund would probably produce, for the half year end- ing 10 Oft. 1782; whereas it yielded no lefs a fum than 2,057,681 1. 6s. 5^d. It is, indeed, a circumftance that ought to be particularly attended to, by thofe who employ their time and attention, with in- vefligations into the flate of our Finances, that the Taxes are almofl uniformly more E produc- ( 30 ) productive in the half year ending on the 10th Ocl. than in the half year ending on the 5 th of April; which may principally be attributed to this, that the fix months pre- ceding the former term, is more favourable to Commerce and Navigation than the latter; on the Duties arifing from which, fo large a fhare of the Revenue of this Country depends. II. NATIONAL EXPENCE. THE National Expence, fo far as it can be yet afcertained, may be confidcred under four Heads. — The Interefl of the Funded Debt — The Peace Eflablifhment — The Civil Lift — Miscellaneous Services. As to the Unfunded Debt, and the con- cluding Expences of the War, it will be proper to treat of them in a fefparate ar- , tide. The ( Si ) The Funded Debt is involved in fuch intereftof confufion, owing to the different Compa- e d Debt* nies to whom the fame is paid, the dif- ^83. fcrcnt rates of Intereft which the Public Creditors receive ; (fome part of the Debt being at three, fome at three and a half, and fome at 4 per cent. ;) the various pe- riods at which the fame was contracted ; and the great difference between the Real, and the Nominal amount of the Debt, that it is very difficult to form a juft idea of the fubjeci. The National Funded Debt may be di- vided into two Branches. Firft, into that part of it which coniifts in Temporary Annuities, that die away of themfelves : And fecondly, into thofe Annuities which mufl remain a perpetual burden upon the Nation, unlefs they are paid off. E 2 The nuuies. ( 32 ) mr mi An- The Tem P orar y Annuities confift, firft, in the Annuities payable at the Exche- quer, the Capital of which is called 2,001,2451. 11s. lod. and the Annual Intereft and charges of which amount to 150,6401. 4 s. 8d. The other Annuities of a temporary nature, w T ere all granted by way of Douceurs, to thofe who ad- vanced money to the Public : the nature and extent of which, will appear fuffici- ently evident, from the following account of them. State of the Temporary Annuities payable by the Public. 1. Annuity for One Life, origin- "J £> s. d. ally granted Anno 1745, now re- J- 13,104 5 o duced to — — J 2. Ditto, granted Anno 1746, ] for One Life, now reduced to — J 24,400 10 o 3 . Ditto, granted Anno 1 7 c 7, for ] , r\ xc 1 f 27j°^9 o ° One Lire, now reduced to — J Carryover — £. 64,573 15 o ( 33 ) Brought over 4. Ditto, granted Anno 176 1, for 99 years — — 5. Ditto, granted Anno 1762, for 98 years — — 6. Ditto, granted for 10 years, from 10th of April 1777 — 7. Ditto, granted for 30 years, from 5th January 1778 — 8. Ditto, granted Anno 1 778, for One Life, now reduced to 9. Ditto, granted for 29 years, from 5th January 1779 — 10. Ditto, granted Anno 1779, for One Life, now reduced to 1 1 . Ditto, granted for 80 years, from 5th January 1780 < — 12, Ditto, granted for 78 years,] from 5th January 1782 * J £. i. a. 64,573 15 o 130,053 10 3 121,687 IO ° 25,351 11 3 149,219 13 o 2,819 *3 ° 260,797 13 7 5,276 12 7 220,558 11 10 J 118,125 ° ° Carry over — £. 1,098,463 16 6 | * In the Report of the Finance Committee, p. 12, this Annuity is faid to be for only twenty-eight years : — an error of the Prefs, which I take the liberty of remarking, left their refpeclable Authority fhould be adduced in oppofition to this Statement. ( 34 ) £. s. 1 $0,64.0 4 8 Anno 1 807, and fome of them fooner J Total Temporary Annuities 7,249,104 1 2 1 State of ihe different Pcrpeiual Annuities. 1. To the Eaft India Company, "| £. s. t l. including Management, and other ^ 127,687 10 o charges — — J 2. To the South Sea Company, 1 including ditto — — J 3. To the Bank, including the") Annuities payable to the Bank and I all the 3 per cent. 3I per cent, and I 4 per cent. Annuities, with the J 5»3H^35 9 9 I charges payable for the fame, in- J eluding alfo the Loan 1782 — J 4. To the Expence of managing"* certain Funds not yet allowed to V 20,000 9 o the Bank, fuppofed to amount to J Total Perpetual Annuities, prior \ tox 7 8 3 J- 6,256,565 9 »i Such is the real ftate of the National Funded Debt : from thence it appears, tliatthe Nation is liable to Temporary An- nuities, amounting to 1,249,1041. is. 2id. and ( 55 ) and to Perpetual Annuities, amounting to 6,256,565!. 9s. 2zd. the Nominal Ca- pital of which is commonly ftated at 195,301,1831. 6s. lod. But the Real Capital, if we fuppofe the money bor- rowed at five per cent, would only be 125,131,3091, 4s. 2d. Great as fuch a burden is, it does not appear fo formid- able, as when the Nominal and Real Ca- pital, and the Temporary and Perpetual Annuities, arc blended, without diftinc- tion, into one mafs. There is no point, to which it will be p ea ce rr r 1 X- • 1 Eftablifo more necellary tor the Nation in general mem. to attend, than to take ipecial care, that thofe to whom the government of our affairs is intruded, do not begin with ar higher Peace Eflablifhment, than this Country can with eafe and certainty af- ford. It is, therefore, with no fmall : gree of concern, that I have heard it com- monly ( 36 ) monly afferted, that we mufl be put to greater expences than at the concluiion of the lafl War, notwithftanding the immenfe extent of territory of which we have been deprived. It is indeed much to be feared, that, unlefs Parliament Jleadily interpofes, that will be the cafe. Each fervant of the Crown, attentive only to his own depart- ment, will be defirous of ingrofling as much of the National Income as he can ; and thus the Public, attacked from fo many quarters, and each claim having fome plaufible pretenfions to fupport it, every demand will be too eafily affented to ; and the Nation will remain involved in difficulties, from which, by a different conduct, it might have been extricated. There arc but two modes by which this evil can be prevented. The lirft is, by Parliament fixing upon fome particular Sum for the Peace E{labli(hment, beyond which , ( 31 ) which the Minifler fhall not be permitted to proceed ; leaving, however, the ar- rangement of the Sum fo fixed upon, to be divided among the different Depart- ments, as he may think proper to direct : and the fecond, for Parliament to afcer- tain the fpecific Sum to be appropriated to each particular department. If we wifh to have an Economical Peace Efla- blifhment, one or other of thefe Plans, I am convinced, mud be adopted : for we can hardly expect to fee a Minifler like Grenville, again placed at the HeacJ of our Affairs ; poffeffed of firmnefs of mind fufficient, without any affifl- ance from Parliament, to flem the torrent of public profufion. The Peace Eftablifhmentconfifts of three Branches — the Navy, the Army, and the Ordnance. F That ( 3» ) Navy. That a formidable Navy ought to be kept up, I am very ready to acknow- ledge,* but I hope, that its flrength will confift more in having a number of Ships ready for immediate lervice, than in a great body of Seamen. We ihall fuppofe, however, that 20,000 Seamen, including Marines, are retained in pay, (4,000 more than during the former Peace) the wages and victualling of which, will amount to 1,040,0001. The remainder of our eftimated Naval Expences is abfurdly divided into the Or- dinary and Extraordinary. The Ordi- nary includes the Salaries of the different Officers, and the General Expence of the Eflablifhment • together with fomc part, of the money expended in building and repairing Ships : the remainder of the Building Expences is thrown together into the Account of Extraordiharies, which frequently ( 39 ) frequently contains the names of fliips, and the fums propofed to be laid out on them, which are never expended for that purpofe ; whilft no mention is made of other veffels on which part of that verv money is laid out. The proper mode of giving thefe Accounts to Parliament would be, for the Ordinary Account to Rate merely the Expence of the Eftablifh- ment, Salaries of Officers, Half-pay, 8cc. whereas the Extraordinary mould contain the whole Eftimate of what may be ne- ceffary for the Building and Repairing of the Ships, and providing Stores for that purpofe. In that view, the Ordinary of the Navy may be calculated at 300,0001. per annum ; and if 66o,oool. is appro- priated for the Extraordinaries, thefe two fums, joined to the charge of 20,000 Seamen, would make, in all, an expence of Two Millions per annum ; which, if properly laid out, would furnifh us F 2 with C 40 ) with the moll formidable Navy in Eu- rope. Our Military Expences are, with great propriety, lefs popular than thofe which are laid out on the natural ftrength, and bulwark of the Country. It would be dangerous, however, to countenance pre- judices againfl the Army, fo as to dif- courage men of family, of character, and of merit, from making it a Profeflion. — The Art of War is (till in a gradual pro- grefs to much greater perfection ; and un- lefs we reward, with fome degree of li- berality, the fervices of thofe who improve the Art of War among our- felves, or who adopt and make known the Improvements of other Nations, we fhall not be able long to retain the Mili- tary character we have obtained, among •the States of Europe. — It is a fad, how- ever, ( 41 ) ever, which, were it neceflary, it would not be difficult to prove, though it might require entering a good deal into detail, that i, 200,000 1. per annum, frugally and properly expended, would fupporta Mi- litary Eftablifhment, fufficient to form the bafis of an army, which, when a new War takes place, may be fit to contend in the field with the Enemies of this Country, I know no means by which the con- Ordnance fufed extravagance of the Ordnance De- partment can be prevented, except by a parliamentary declaration, that a larger fum than Two Hundred and Fifty, or 300,000 1. at the utmoft, is all that can poffibly be expended in fervices of that nature. It does not proceed from any perfonal extravagance in thofe, who of late years have been at the Head of that department, that fuch loud complaints have been uniformly dated againfl the Ellimates ( 42 ) Estimates they have produced ; but the facl is, that progrefhve profufion is the very principle of a Board of Ordnance — Pow- der and Ball indeed, and all the appendages of Artillery, are eafily eftimated, and may be kept within proper bounds ; but to Fortification there is no limit. One Ditch is the fruitful parent of another : and when we think that we are completely de- fended, we find that a thoufand ramparts mil ft yet be raifed, before we can expecT: any advantage or protection, from the works which have been already con^ Unified. There is too much reafon to apprehend, Civillift. that the Civil Lift, will very fpeedily re- quire the addition of another 100.000L to make it up a million : but it muft not be expecled, that any fum this Country can afford, for the fpecial fervice of the Crown, will prevent the income of the Sove ( 43 ) Sovereign from being annually exceeded. The moft frugal and bed intentioncd Mo- narch will try it in vain : for in the end lie will find, that nothing can flop the profufion of a Court, but want of means to fupply its extravagance. When an additional fum, however, is granted to the Civil Lift, it is hoped that care will be taken, that it is folely appropriated to • the different branches of the Royal Fa- mily, fo that any farther Demands upon the Public may be prevented. The Miscellaneous Services are of a na- Mifcdla- r • i it i • - i • • Qet >usSer« ture io various and diicordant, that it is vices. impoflible, confidently with thefe Ihort Hints, to examine them with the accuracy that might be neceffary. I rnuft therefore recur to the old obfervation, that it would be proper for Parliament to Fix a parti- cular fum, beyond which the Misiiiler of the Day ftiaH not be fullered to go; which fum, ( 44 ) fum, at a medium, ought not to exceed 200,00,0 1. per annum. The following then will probably be the full amount of the National Expences in time of Peace, provided a wife and pru- dent Syftem of Economy is enforced, in the different departments of the State. State of the National Expenditure, when Peace is fully re-ejlabliftjed. £. s. d. i. The temporary Annuities pay- j r> , 49?104 \ 2 | able by the Public — — J 2. The Perpetual Annuities 6,256,565 9 2 J £• 3. The Navy 2,000,000 4. The Army 1,200,000 5. The Ordnance 300,000 3,500,000 o o 6. The Civil Lift, fuppofinganj I>000)000 additional ioo,oool. is granted — J 7. Mifcdlareous Services — 200,000 o o £. 12,255,669 10 5 The ( 45 ) The National Income, according to preceding calculations, it was fuppofed would yield a revenue of 14,368,1961. 3 s. lod. from which, deducting the Peace Eftablifhment above ftated, there will re- main a Sinking Fund, amounting to 2,112,5261. 13 s. 5 d. per annum, which, with any tolerable management, will, in procefs of time, relieve the Country from no inconfiderable part of the burdens with which it is loaded. It will next be proper to confider what is the probable amount of the Unfunded Claims againfl the Public, including the Loan of this Year : and how far there are refources in the Country, fufficient to pay the Intereft of thofe Debts, without making any farther encroachment upon the Sinking Fund. G III. UN- ( 46 ) III. UNFUNDED NATIONAL DEBT. IT is impoflible to give, with any de- gree of certainty, an accurate account of trie Unfunded Claims againft the Public, cr the concluding Expences of a War, carried on at fuch a diflance. Twelve Millions, however, have been already bor- rowed, which, it is probable, will clear off that great mafs of Expences with which the conclufion of fuch remote Hof- tilities mull be accompanied. The Tem- porary Annuity, in confequence of this Loan, amounts to 8o,oool. and the Per- petual Annuities to 480,000). But if we fuppofe, that the money bor- rowed this year is able to pay the con eluding expences of the War, yet it is well known that the Public is indebted in a large C 47 ) a large fum, now circulating under the name of Exchequer Bills ; and that the enormous Debts of the Navy and the Ordnance, continue undiminished. The Exchequer Bills, remaining undif- Exche- querBills. charged at this particular period, and which it will be neceflary either to pay off, or to renew, may be calculated at Ten Millions : fuch, however, is flill the flourifhing liate of the Credit of this Country, that Bills, to that amount, may be circulated auhe rate of 3 per cent, and consequently will only require, a Fund of 300,0001. per annum, 10 defray the In- terefl. It is a angular circumflance, that, in a N avvan d Country where the Public Revenue is fup- t^^ pofed to be fd carefully prou-.Jilec — in which it is aflcrtcd, that no Money can be raifed upon the Subject, without the in- G 2 terpoluion ( 4§ ) terpofition of Parliament ; and where even the formality of a Vote of Credit is neccffary, to enable the Sovereign to raife any fum of money, for the exigencies of the State, a few fubordinate Commif- fioners mould have it in their power to run the Nation in debt, with fcarcely any controul or reftriction. No man vyiflies lefs to make the Naval Departs ment unpopular : but, if in addition to what is called the Ordinary Eflimate of the Navy — in addition to the Extraordi- nary Expences (a confufed and inextri- cable account of which is annually laid before Parliament) — if, in addition to the 4I. per man, per month, for every Sea- man and Marine that is voted, various unknown charges are to be permitted, formed we know not how, and demanded we know not for what *, I tremble to think, that the time may come, when it were almoit to be wilhed, that the pride, the ( 49 ) the darling, and the principal bulwark of this Country were to be annihilated. It is not propofed at prefent to point out the means by which this deftruflive evil, in future, may be prevented : fulfice it to remark, that it is a fyflem which has accumulated a debt upon this Country, flill unpaid, amounting to about Twelve Millions. The Ordnance has fortunately had lefs plaufible grounds for iffuing forth its Debentures; and confequently has only run about One Million in debt.' But as the Navy and Ordnance Bills, at the conclufion of the laft War, were funded at the rate of four per cent, and as the fame operation may now be re. peated, the Intereft on thisfpecies of Pub- lic Security, may be flated at 520,0001. per annum. Some ( 5« ) Some other unfunded demands upon the Public may, perhaps, remain unob- ferved ,* but, if the idea of felling the Royal Forefts, and difpofing of a variety of unproductive, but troublefome claims belonging to the Crown, is perfevered in, it will more than counterbalance any far- ther Sum that can poffibly be adduced. The following, then, will be the amount of the Annual Intereft that mud be paid on the Unfunded Incumbrances of the Public. State of the Inter eft on the Loan, 1723, and on the Unfunded Debt. 1. Temporary Annuities for 77"! £. s. d m years, from 5th January? 1 783, in con- r 80,000 o o fequence of the Loan this year — * 2. To the Perpetual Annuities j 48o?ooo Q Q granted this year — — J Carry over — £. 560,000 o o ( 51 ) Brought over 560,000 o o 3. To the Intereft of 10,000,000!. of Exchequer Bills, at the rate of 3 [► 300,000 o o per Cent. — } 4. i o tne intereit or 13,000,0001.^ of Navy and Ordnance Bills, which V may be funded at 4 per Cent. — J 4. To the Intereit. of 13,000,000!. lual Expences which ^ I, if io,ooo,oool. of I are kept in circula- J 5. To the Annual Expences which will be incurred, Exchequer Bills are tion 520,000 o o 4,000 o 6. To the fuppofed Charges of the Bank, for managing the Loan 1783, and the next Loan, if the Navy and Ordnance Bills are funded — 15,000 o o Total Intereit and Charges of the 1 r * Unfunded Debt - _ j^9,°°° ° ° Such is the nature and extent of the Unfunded Debt, which, it is hoped, will be brought into fome kind of order, as foon as poffible ; for whilft it remains in an un fettled ftate, no judicious plan can be carried into execution, for difcharging our burdens: but when once we know the ( 52 ) the real nature, and the full amount, of all our National Incumbrances, then it may- be expecled, and not till then, that means will be propofed, for relieving the State of a load, which cannot be too fpeedily diminifhed. IV. NATIONAL RESOURCES. BUT the fituation of the Country would be deplorable indeed, were there not dill Refources in it, fufficient to pay the Intereft of the Debts above-ftated, without making any farther encroachments upon the Sinking Fund. High as this Country is taxed, no individual can fur- vey, for a moment, the fplendor in which fo many of its inhabitants live, without perceiving, that though the State is poor, yet individuals are wealthy, and that they can probably bear fome additional bur- dens, without being reduced to diftrefs. It ( 53 ) It would be improper for me, however, to interfere with thofe, whofe particular province it is to inveftigate this Subject. It is in their power alone to obtain that knowledge of fads, without which, the belt conceived ideas are mere vifionary fpeculation : I (hall therefore confine my- felf to very curfory and general Obferva- tions. , The Income of the People of this Country, arifing from Lands, from Com- merce, and from Manufactures, is corn-, monly calculated at 1 00,000,000 1. per annum: I am inclined, however, to think even that fum is rather a low valuation. But if the inhabitants of this Ifland have but 80,000,000 1. to expend, that fum, if charged with Four Shillings in the Pound, would yield an annual Income to the State of 16,000,0001. H There ( 54 ) There is alfo a confiderable difference between a large Revenue lavifhed in the Operations of War, and the fame Reve- nue expended in time of Peace. Money- laid out in carrying on Wars, is fpent in Articles which the War confumes, or in purchafing Provifions, at an enormous rate, perhaps from your Enemies, for the Suftenance of your Forces. Whereas, money, fpent in time of Peace, reverts immediately into circulation ,• and even the Public Creditor, in confequence of the different Articles which he confumes, which are liable to various Duties, returns to the Public, in procefs of time, a con- fiderable part of that money which he re- ceives, But the material Point, upon which my hopes of an Increafe of Public Revenue are founded, is this, that a very fmall pro- portion of the Public Debt is the Pro- perty ( 55 ) perty of Foreigners. I know well, that this matter is confiderecl to be one of the great Myfteries of the State 5 and that the Share, which Foreigners have in our Funds, is concealed, as if the Fate of the Nation depended upon the Difclofure. From any information I have been able to obtain, there is no reafon to prevent that matter being fully known : the fad, 1 am convinced, would turn out, that of the 8,800.000 1. per annum, due by the Public to its Creditors, Funded and Un- funded, not One Million is the Prooertv of Peifons living out of this llland. If that is the cafe, the Refburces of this Country, for Additional Revenue, will be not a little increafed, by the Additional Confumption of tfrofe Individuals, to whom the Income of the New Taxes muft be paid. II 2 I mall ( 56 ) I fliall now Hate what appears to me, the real fituation of the Finances of this Country, General View of the Suppofed Income and Expences of the Nation. INCOME. £. s. d. i. To the fcppofed Produce of the 1 II>6l8jI96 3 IO Taxes laid on prior to 1783 — J 2. The Land Tax at 4s. — 2,000,000 o o 3. Malt Tax — — 750,000 o o 4. New Taxes which mufl be laid on to pay the Intereftof the Debt not yet funded or borrowed, including the Taxes to be laid on this year — 1,399,000 o o £. 15,767,196 3 10 EXPENCES, 1. Temporary Annuities, -^ £. s. d, payable by the Public prior > to 1783 — 2. Temporary Annuities, ] fi nno 1783 — — J Anno 1783 £. s. d. \ 1,249,104 1 2 |- OOO o o Total Temporary Annuities £ 1 , 3 29, 1 04 1 2 I Carry over £1,329,104 1 2 \£ 15,767,196 3 lo ( 57 ) £. s. d. £. s. d. Brought over 1,329,104 1 2§ 15,767,196 3 10 3. Perpetual Annuities, | g^^ g 2 ,_ ior to 1783 — — J prior to 1783 4. Perpetual Annuities, "I « nno 178* — — J 000 o o Anno 1783 — — J 5. Suppofed Intereft of\ the remainder of the Un- I funded Debt in Perpetual { 839,000 o o 1 Annuities, exclulive of Loan I i 7 8 3 - - '! Total Intereft due to the Public Creditors othe | 8,804,669 10 5 6. Peace Eftablifhment 3,500,000 o o *•. Civil Lift — 1,000,000 o o 8. Mifcellaneous Services 200,000 o o —13,504,669 10 5 Total Balance, or SiNk-1 r , , r £• 2,262,526 13 5 ing Fund I hope it will appear fufficiemly evi- Conc ^- dent, from the preceding fhort Hints, that the Finances of this Country are not in fo defperate a (late as they are com- monly reprefented ; and our fituation will be (till more profperous, if wife and judicious ( 58 ) judicious Plans are entered into, for dif- charging the moll burthenfo.me of our In- cumbrances ; which a clear Sinking Fund of Two Millions, joined to the gradual acceffions, from the falling in of the Tem- porary Annuities, will enable us to effed. It is unnecefTary, however, to enter at prefent into the Examination of fuch a Queftion, as fome time muft undoubtedly elapfe, before any Scheme of that nature can be carried into execution. The pre- fent objecl of Adminiflration ought to be, to know what is the utmoft extent of the National Incumbrances, and to put them on a footing, that may enable Zealous and Public-fpirited Men to form Plans for their Liquidation. When that period arrives, the Writer of this Tracl will pro- bably again arnufe himfelf with Specula- tions upon the fubjecl : Some ideas having occurred to him, which he imagines, may be ( 59 ) be of fomc ufe in promoting fo defirablc a Work ; and which, indeed, cannot fail to be effectual, if there is any remains of Public Virtue in the Country. V I N I S.