by the application of a larger sinking the sinking fund, those inconveni. fund to the redemption of the pre- ences would be avoided, which would sent debt, until the period to its necessarily arise from the too great final extinction, than would have influx of money into the market been made during the same period, during the latter years of its opera. by the effect of the present system.

tion. It was true, indeed, that a Lord Petty, in recapitulating the part of the war taxes would be heads of his system, stated, that we pledged beyond the war, but, he should in the first place, by this had already shewn that the property plan, be enabled to provide for tax might, under any circumstances, an extraordinary expenditure of be released at the end of six months £.32,000,000, -Should any farther from the ratification of the definitive. charge arise, that charge must, under And, by the application of the ex. this, as under any other system of cesses, as they should arise, of the finance, be productive of additional sinking funds of the present warburthens. But (unforeseen charges debts, as they should arise, the reapart) we should be enabled to pro. lease of the other war taxes would be vide for £.32,000,000 without any considerably accelerated. additional burthen on the public for Important, lord H. Petty oba the next three years, and, should served, as the advantages of this plan the war continue so long, for the 'were, both in respect of the present seven years subsequent to that relief which it afforded, and the preperiod, with the comparatively vention of those future evils, which trifling addition to the taxes of the unlimited operation of the sink£.293,000 annually. But, should ing fund must ultimately occasion, the war be still farther protracted, its principal benefit consisted in the should it even continue for ten years impression which it must make both beyond these two periods, we should in this country and out of it: have the means of providing for an where it would be seen, that without expenditure of £.32,000 withoutim. any farther material pressure on the posing on the public any additional resources of the country, and by a burthen at all. And this relief would perseverance only in the wonted ex. be obtained without the least injury ertions, parliament now found itself to the interest of the stock-hoider. enabled to meet with confidence all On the contrary, an addition would the exigencies of the present war, be made to the sinking fund even in to whatever period its continuance the present year. An amount equal might be necessary for maintaining to the present unredeemed debt the honour and independence of the would be more speedily redeemed. empire.--He concluded with laying The proportion which the sinking eleven resolutions relatiņg to his fund bore to the unredeemed debt, plan, on the table ; and proposed and on which the period of the du. that the consideration of them should ration of that debt depended, would be adjourned till Wednesday se'n. be increased. And, by a more night.* equal distribution of the powers of Mr. Johnstone, though he agreed

These resolutions will be found in the Appendix to the Chronicle. See also, in the Appendix to the Chronicle, this plan of Finance, as described by the miDister, and published in an official Paper.

to

on

to the propriety of postponing all de-' try. Nor had he made any allow. bate till the resolutions shouldbeprint. ance for, what was inevitable, the ed, yet thought it necessary to make situation of the continent, which à very few observations at the pre. would call for essential aid from sent moment; because if the impres- this country. The chairman of the sion made by the elaborate and elo- committee reported progress,

and quent speech of the noble lord were obtained leave to sit again on to go abroad with the apparent ac. the present question; which was quiescence of the house, the country brought into discussion the might be induced to entertain an 12th of February, when lord Cas. opinion which could never be reali. tiereagh rose for the purpose of zed. All the noble lord's conclusions reviewing the new and extended proceeded on the supposition, that plan of finance, proposed, and to the annual expenditure of the coun- compare it in all its parts, and all try would not exceed 38 millions. its bearings, with the present system. Grant him this basis, and the rest Any one, he said, who looked to followed. What had been the con. such an extended system of war. séquence of a similar hope held out fare as the present, would be satis. at the beginning of the war? Lord fied as to the necessity of being preSidmouth, for whom he entertained pared for it to an indefinite length. the highest respect, then at the head He was not displeased that the no. of his majesty's government, on the ble lord had gone the length of cal. supposition that the annual expen. culation on a probable duration of diture would not exceed 26 millions, this for 20 years. But it was too trusted that we might be enabled to much to incorporate the calculation carry on the war without any in. of the expences of sach a length of crease of debt, by the operation of the time, into arrangements to be adopta sinking fund. But, in the 4th year ed at present. It was impossible of the war, our debt had increased that parliament could now provide 50 millions on account of England, for occasions so distant, and events and 17 on account of Ireland. He so uncertain, without involving it. feared that a similar result would self in infinite contradictions and follow the present calculations. Lord embarrassments. He admitted that Sidmouth had assumed, that the an. unless data were assumed, it was im. nual expenditure would not go be. possible to reason or arrive at any yond 26 millions: and lord H. Petty conclusion. But what he feared was, had assumed that it would not that by the assumption of fallacious go beyond 38 millions *. The data, far from Leing enabled to pro. grounds of the former prediction had ceed consistently, we should be led failed; and so might those of the into continual errors. It should be latter. Besides this, the noble lord recollected, that the expenditure of had omitted to consider the neces. £.32,000,000 was an expenditure sary enhancement that must take cut down from £.44,000,000, and place in the price of every article in setting that forth, as the proba. required for the service of the com- ble amount of our war expenditure,

care should be taken not to mislead carrying the interest of it, i.e.
the country with regard to the bur. £. 33,000 to be advanced out
thens it would have to bear, Lord of the consolidated fund, to be
Castlereagh proceeded to state, at replaced by the sinking fund, as
great length, and with much detail, soon as it should afford a surplus
his objections to lord H. Petty's applicable to the purpose, the whole
plan of finance, which, on raising difficulty would be surmounted.
money by double loans, resembled There was another principle, lord
the usurious terms on which a dis. C. said, that might be applied to
tressed man raised money to defray the object of lord II. Petty, namely,
the interest of sums borrowed ante. that when the amount of the sink.
cedently. When the noble lord e. ing fund should exceed the interest
rected his superstructure of two of the redeemed debt,

no prostories on such a basis, he might as vision should be made by new taxes well have raised his castle to as many for the interest of the loan, but that more, like the Indian pagoda, and, it should be provided for out of the by borrowing the interest of the interest of the debt unredeemed in interest of his supplementary loans, that year; and that this was not hare carried his principle to its ul. fair at a time when it was universal. timate point. But though lord C. ly agreed, that further taxation ought had explained at some length, his to be abstained from. Two of the objections to the plan of Lord H.P., resolutions which he subsequently he was still anxious to submit them proposed, were therefore intended in a more precise form to the house, to shew,that lord H. P.'s plan would in the shape of resolutions; which bear as little comparison with the he offered rather as his objections to modifications of it, which he had the system of the noble lord, than proposed, as with the old system. as the principles on which he should The third resolution was,' to shev be disposed to found any system. that by lord U. P.'s mode of mana. Lord Castlereagh afterwards, Feb. ging the sinking fund, more injury 26, added to these, three other would be done to the stock-holdresolutions.

ers, than by either of the plans proIt had been alledged by Mr. posed by lord C. Thornton, that lord C.'s resolutions, The whole of the resolutions mo. instituted comparisons between lord ved by lord Castlereagh, will be H. Petty's, and the old mode (Mr. found in another part of this voPitt's) of raising the expenditure lume*. Lord H. Petty observed, within the year, and not with either of, that the great objection of lord C. the plans he proposed to substitute. to the new financial system, was, Lord C. calculated, that in 1816 that it meant to legislate for futurity. the sinking fund would not only be ca. He begged to call the attention of pable of furnishing the aid now looked the house to the fact, that neither to from it, but also a large sum in he, nor those who supported his addition, 'By adding, therefore, the system, had ever stated to the house annual average want of £. 400,000 that they could anticipitate the fu. to the loan of the year, and ture, or prepare any plan that

a

would cover the exigencies of a war, cluded by moving, that the con• for 20 years, without any change. sideration of his resolutions should If he continued to fill the situation be postponed to that day se’nnight. which he then held, it would be Lurd H. Petty would not object to his duty to explore the cause of the any day for the consideration of the change when it occurred. He pro noble lord's resolutions, though, he

. posed to equalize the operation of observed, these must come under the sinking fund, by adding to it review in discussing the present now, with a view of taking from it plan. The motion of lord Castle. hereafter. But the noble lord had reagh, for postponing the consider. taken advantage of the excess of the ation of his uwn resolutions, was then sinking fuud, without adverting to agreed to. the concurrent principle of adding Lord H. Petty moved, that the to that fund, which was a leading house should resolve itself into feature of his system. He had a committee, to consider further of taken all the beneficial result, but the finances of the country, which left out the operating cause.

Lord was agreed to. On the motion for P. however, assured lord C. that the speaker's leaving the chair, Mr. not only in this instance, but at all Long rose, and said, that though times, he would be ready to attend it was not possible, even for those to any suggestions from him, orany who were conversant with subjects of the honourable gentlemen near of this nature, to make themselves him. The debate was then adjourn. masters of the noble lord's plan, ed to Monday the 16th of February. within a time so limited, as

On that day lord Castlereagh rose house was called on to discuss the for the purpose of moving the post. plan, he would now offer the few ponement of his finance resolutions, observations that at present occurred from that to some future day. He to him.-Lord H. Petty thought knew that in considering lord H. that he had better state these in the P.'s resolution, his own must of committee. course come under review ; but he Mr. Long replied, that he thought hoped that the noble lord, consider- it more regular to proceed now, as ing the magnitude of the subject, his objections pointed rather to the would be disposed to grant some principle of the plan, than to the further delay.--He was desirous detail, though he did not obof entering upon some explanation ject even to the principle, to a cer. of the modification of lord P.'s plan, tain extent. To a certain extent he which he had offered the other day, saw no objection to borrowing from because, though from this explana. the war taxes ; but he must object, tion, it should appear that the mo. he said, to the system of pledging dification was more objectionable the whole of the war taxes, indethan was at first apprehended, yet pendent of the property tax, and at the noble lord, in pointing out the last the property tax also... The nodefects of this, would illustrate the ble lord ought to consider the nature defects of his own plan. lle con. of his system of ways and means ; fessed that he had discovered some and particularly to consider the errors in his own statements, which furious objections made to the pro. he had amended. - Lord C. con. perty tax, which was called a sys

tem, not of taxation, but of confis. necessary. As to the depreciation of cation But if he had great doubts, money, if there was any mode better as to the propriety of pledging than another for preventing the de. the wår taxes to the ful extent preciation of money, it was, to preproposed by the noble lord, he vent any additonal taxation. The had still stronger doubts as to the house then went into a committee. data, on which the plan was found. Mr. Roge, with many calcula. ed. H had supposed, that during tions and details, contended that the whole period of 20 years, the war lord H. Petty's plan, not only had expences would not exceed 32 mil.

à direct tendency to interrupt the lions annually. But he ought to have progress of the old sinking fund, in taken into the account, the subsidies paying off the present deht, but anthat might be wanted, and the de. ticipated our resources instead of preciation of money that might be providing new ones; and that, in wanted. --That lord H. P. imposed the course of its operation, it would no new taxes for the first three years, have the effect of diminishing the was a measure of which Mr. Long sinking fund, and increasing, to highly approved. For by this means, an immense amount, the capital of relief would be afforded to the peo. the debt. A moderate and reasonple, and taxation might be had re- able allowance for unforeseen expencourse to afterwards, if this should ees, would unavoidably increase the be necessary:

This circumstance supplementary loans, and involve a would have the best effect too, on necessity of imposing taxes to a conthe permanent taxes. If, therefore, siderably larger amount than the this periodof respite had been extend. noble lord had led the house to ex. ed to five years, he could have had pect. IIis treaty, however, to no objection to the plan. The noble the no le lord was, not that he lord, in the mean time, might have would re inquish his plan, nor even observed the progress of the sinking that he wou d at present make any fund, of the war taxes, and of alteration in the detail of it: but, the permanent taxes, and have only to imit the experiment of it to borrowed upon these, as he should the present year, which would an. find it expedient. But to take a pe

swer all his purposes completely and riod of 20 years, and to proceed on etiectually, and a ford him and his the supposition that 32 millions on y majesty's other subjects leisure to would be required for the war ex. consider it more fully themselves, penditure, was to legislate for futu, and to advise with others, as well rity, on grounds the most uncertain as to the public, to understand it bet. and erroneous that could be con. ter than they now do. ceived.

Lord Henry Peity, in the course Mr. Tierney said, that lord H. P.'s of a further explanation, and vindiplan was not intended to legislate cation, at great 'ength, of his own for 20 years, it merely held out the plan, particularly where it was opprospect of what might be done in posed to lord Ca-tiereagh's, depre. 20 years, certain data being allowed. cated and protested against the It did not tie up the hands of the opinion that what had been raised legislature from adopting such alter. as necessary to the prosecution of ations as circumstances might render war, should be levied and rendered