The British Press; or, Morning Literary Advertiser.
London, England, 1826-05-05 00:00:00

nn the funded debt of both periods wee, for 1817, 29.870,8131., and
for 1826, 27,679,851 W., 'sheering a decrease In the nine years of an-
nual charge of 2.190,9971. The reduction of charge for tiefunded
debt was 794.7601., making with the former a total of 2 935,7571.
That was effected without any application of the surplus revenue,
or proceeds of loans, Imperial Annuities, or }exchequer Annuities,
expired or Long Annuities. Conversion 5 per cents in 182'2, end of
4 and fe per cents. 1/124. and charges of management. These items,
amounting to 1,1162,9071., added to dividends on capitals cancelled,
and on 3.807,1131. of 4 per auto. dissentients, formed a total re.
duction of charge on funded debt of 2,242,716!. Here thee were
seven millions actually rehire!. The Hon. Member then proceeded
to the consideration of :he total amocot of the reveeue in the years
1817-11125 (exclusive of loans and dead weight), which he Said was
:132,266,5351. ; and the total expenditure, including all charges
for interest of debt, civil and military cstablishnientst, in game
period, except payment to Commissioners of Sinking Fund, was
:106,309.6141., giving a clear surplus of 22.956,932 in which, with
other sums from Austria and the East India Company. mode an
amount of money of 25,961,5391, disposable for the redemption of
debt, exclusive of 6,917,5691. from the Bank of England in the
years 11122-21, in part payment of an annuity for 45 years. The
Hon. Member then referred to the Appendix of the document, to
show that the annual income of the kingdom for the last nine years
had been progressively Increasing each year ; yet. in the face of
such proofs, it was asserted by the Right Hon. Gentleman opposite
that the country was relieved froin taxation, 11e wished the Right
lion. Secretary of State for Foreign Affairs would peruse those
proofs before he repeated the assertion. The total moment of expen-
diture in the period was 508.309,6141., and of income 531,266,535/.
Thus there was an increase of real available Sinkino Fund to the
amount of about 2500,0001 e while the nominal Sinking Fund was
estimated at 125,000001. In the year 1017 there was a decrease of
7,1507,4021. applicable to a reduction of public debt. Under such cit.
cumstances the Ministers who vaunted of the 150,000,0001.0 f Sinking
Fund might fairly he accused of wishing to throw dust in the eyes of
the House. The Sinking Fu- d had amounted, in truth, on an ave-
rage, only to two millions and a half per year. It might be
asked by the Right Hon. Gentleman opposite, where did the
124,000,600 e come from ? By reference to thedocuinent, it would
be found that there was received, in the year 11117. a sum of four-
teen millions ; 1818, of fifteen millions and a half—(the lion.
Gentlemen referred to the Appendix, column C.) The Commis-
sioners of the Sinking Fund had received 116,000,000 f. of that
sum. (dome denial having bees made from the Treasury Bench)
—The Hon. Gentleman repeated that it was the fact, and he
would, to set the matter at rest, move for a Committee of Inquiry,
If the HOLM were to sit for two months or six weeks longer.
Mr. l'itt was grossly in error when he supposed that the Sinking
Fund could be a source of profit to the nation—it had, in fact.
never done otherwise than sink the money. of the nation. (A
laugh.) No nation cootd derive a profit by trading with them-
teelves, and therefore the Sinking Fund was founded in fallacy and
delusion. If an individual gave wheat for wheat, both belonging
to himself, how could he profit ? The fact was, that in a smell
state like Genoa, the surplus funds !night be advantageously em-
ployed by purchasing in the foreign funds, where a larger interest
might be obtained for it than at home. He wouid suppose, how.
ever, that the Last India Company should send teas to Bengal,
and buy silks in return, and then ask in what manner they could
realize dprolit ? They could not realize a profit by such a transac.
tion, both commodities being their own. He could show that mil.
lions had been lest since the year 171/4, by the operation of the
Sinkiug Fund ; or, in other words, by the nation dealing in Its
own securities. It hail been said that the Sinking Fund supported
public credit, but this he denied. It was a system of weenie:inn
which was destructive in itself ; as it originated with the Govern-
ment, that same Government ought immediately to put it down.
It was time to retrace our steps. He did not wish to lay blame at
any man's door in particular, but he fel: bound to declare that the
financial arrangements had swept away all the benefits which
might have been derived from the surplus revenue which had ac-
crued. It could be easily proved that the Sinking Fund did not
add to public credit, fur all the profit which it could realize must
be derived from the general wealth of the country. In the year
1819, the Chancellor of the Exchequer required a loan of twenty.
four millions; anti as soon as his object was announced, three sets
of Gentlemen made arrangements for becoming the bidders. It
was usual upon all occasions for Government to borrow double the
sum they required, in order to fund one-half towards the payment
of the other. On the Tuesday the funds fell in consemienee of the
announcement, and on Wednesday morning, an Hon. Friend of
his advised the Chancellor of the Exchequer to borrow only 12
millions, and transfer the remainder ; and he would thus throw
dust into the eyes of the ignorant. (A laugh.) The Chancellor
adopted the plan.
The CHANCELLOR of the EXCHE(eUER said, across the
table, that he had nothing to do with it.
Mr. 11U311: admitted that it was the predecessor of the flight ,
lion. Gentleman. The three sets of bidders hid offered to take
the loan at 661., but when the Chancellor declared that he refit' red
but 12 millions, they immediately raised their bidding to 691., b
which s savitig of three millions was effected. Every sum which
was added to the Sinking Fund was therefore clearly productive of
loss. He regretted extremely the mystification which pervaded all
the accounts which were submitted to the House relative to the
finances of the country. He had been some years ago a Member
of a Committee appointed fur the purpose' of ascertaining whether
those accounts could not be simplified, and a better system adopted.
The Hon. Member for Abingdon ( Mr. Millie-Fly) and himself had
done their utmost to persuade the Committee to adopt a pion :Adele
they deemed calculated to render those accuunla as clear aell as 10.
telligible as-they ouelit to be. The French Government kept their
accounts in such a manner as that any man of common understand.
ing might see at a glance the state of the finances of the country.
Indeed, every country did so except Englund. Their &bets were,
however, unavailing, the Committee declining to adopt their sug-
gestion. in the course of nine years there had accrued a disposable
surplus of 25 millions, and as during that period there was no equi-
valent reduction of debt, he wished to know what hall becoille of
that surplus. He had thewn what the charge of the public debt
amounted to in ;817, and he would now proceed to spew what it
would have been in 1826 if the surplus revenue had been applied,
year after year, to tine liquidation of the debt, instead of being
placed in the Sinking Fund. The Honuurable Gentleman then
proceeded to read a !series of calculations, the result of which went
to establish the fact, that if the plan he had adverted to had
been adopted without the operation of the Sinking Fund, the
unfunded debt, which now amounted to 32,000,000/., would
have been only 23,500 0001. Ile felt, therefore, that he was
entitled to call for an explanation. Be was entitled to
ask how the Sinking Fund could operate beneficially for the
nation, when 'he found that upwards of' three millions were lost by
its operation. lie hoped that the Chancellor of the Exchequer,
now that he was in a condition to do so, would put an end to a per.
nicious system. In one instance. die Commissioners for the Sink-
ing Fund had applied six millions of money, which had been bor-
rowed at the rate of 75/. far every 1007.. to the purchase of stock at
the rate of 811/.; by which a loss of 21 per cent, accrued to the
country—a hem to the amount of nearly a million and a half, which
might much better have remained in the pockets of the people. In
the twenty-four years following the year 1792, the revenue of
the country amounted to 1.126,000,0001. ; the expenditure during
the same period to 1,533,000,0001; leaving an excess of expenditure
of 497,000,000/. Instead of borrowing that sum, however, in or.
det to pay the deficiency, the sum borrowed watt 618 000,0007., and
of this 128,000.000/. was appropriated to the Commission for the
reduction of the National Debt. From this statement an idea
might be formed of the extent of their transactions. Ile hoped,
however, there would be an end put to the purchase of the three
pet cents. when they arrived at a certain sum, and that the surplus
revenue might be applied to the purchase of lung annuities. Ile
believed he •Itatl offered sufficient reasons to prove that the whole
system was fraught with error and delusion. The country was
in such a situation as demanded the immediate attention
of his elajeety's Ministers. It was imperative upon them to lessen
the emit tiditure of the country, or they must give up the expecta-
tion of maintaining it in a flourishing condition. In proportion as
our difficulties increased, in the same proportion was the value of
the productions of the country reduced, in thesaine proportion also
was taxation increased ; for even though nominally the same, its
burden was increased when the value of the produce of the country
was diminished. This was In accordance with his 27th Resolution,
which was. That the state of our manufacturing, commercial,
and agricultural relations demand the most serious attention, as the
evidence before the House proved a progressive diminution in the
remuneration for labour in many of die staple articles of manufac-
tures, as well as for agricultural labour, in refereoce either to the
means of subsistence at the present time, or in confparlson with the
remuneration for labour at former periods; anti that although die
quantity of the products of British labour annually exported pro.
gressively increases, yet their value is progressively decreasing." In
alluding to the returns of the imports and exports, he whirled to re-
mark, that to each article there was affixed two values—the official
and the declared. The official value referred to quantity, which
explanation he believed would render die returns intelligible. It
appeared from the returns that the annual average official value of
die quantity of products of British labour exported in the three
years 1814. 1811, and 1816, was 36,502,3671., and their declared
value 44,476,519/. ; whilst in the three years 11123, 1824, and 1825.
the annual average official value of the quantity exported was
45.880,927 e, and their declared value only 36,782.9381., showing a
depreciation in value, after allowing tior the difference in the value of
money, at the two periods, exceeding 25 per cent., and consequently
seowing adincreased pressure of taxation In 18%.3,5 to that extent,
if estintateti in the production of British labour. In three years
from 1814, the official value of thirteen articles, spirits, cinnamon,
&c. &c. imported, was 59,000,000:, and the declared value upon
the same articles, when exported, was 73,000,0001. He mentioned
this for the Hon. Member for Grampounil (Mr. Robertson) in par.
titular, in order to show the fallacy of making any statement
(omitted upon such returns. It would appear by them that the
articles had increased In value by being merely warehoused in this
country. In 1814 the official value of the exports of British menu.
factures was thirty-three millions, the declared value was 43 mil.
lions. In 1825 the official value was thirty-eight million., while
the declared value was forty-Rix millions ; so that the ar-
ticles sent out to the foreign market, hi reality worth
forty-tax millions, were only valued at thirty-eight millions.
This wan a depreciation th it called for die aerious attention of the
House, and he was. sure that if the statement were examined by
any individual, it would be found perfectly correct, lie, however,
only made this statement .in order to carry the House along with
him to more important mattrra. He would now call due attention
of the House to his next Resolution, being No. 29in the printed
paper, in whisk' he undertook to show, " that although the Finance
Committee of 1017 celled the notice of the House to the low
establishments of the year 1792, and recommended that as near an
approximation as possible should be made to the scale of este•
blisliment and expense of that year, yet the taxer, raised in the
United Kingdom, in 1825,exceeded 58 millions, or treble the amount
of 1792; in 4 the expenses of the Civil List, themaral sod military

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