The British Press; or, Morning Literary Advertiser.
London, England, 1818-04-21 00:00:00

i• . •
points 000 lit he g4O 'Vaal, that d b
gained fol(the Is 'name of
the debt; sod, srlettisdlfs shit luck f chldwe old
be better thlis the redifetion of either diet xN S bet
cents., because it might reesoftelsty be expected
'that 31 pervent. wbtlld definer ,rtse to par than
either 4or 5 per cent. It would, perhaps, upon
experiment, be proved, that it would bk more satis-
factory to the 5 per cent. holders to have their
stock reduced upon these terms to 3i per cent.
with an assurance that this new-created stock should
not be hereafter redbeed to • lower rkitenf interest
titan hold a newly-cremed flock at 4 per cent. with-
out each an assurance. The system would then he
more advantageous to the holders of public stock,
and yet more beneficial to the public service. It
was intended to create by this means a capital
in stock of Q 7 millions. The subscribers to thii
newly-created fund, in consideration of transferring
their 3 percent, stock to dirt of 31 per cent. and
paying II per cent...a beatsstoGovernment, receiv-
ed tool. 31 per cent. stock. The price of the 3 per
cents. at this day fluctuated from 79 to 80, the
average advantage on the bargain was as 13 per
cent. whilst Government accepting 11 per cent. for
the exchange, there was an apparent bones of
per cent. held out to the subscribers, besides a
protection given against reduction to this species of
debt—an experiment which had been already tried
last Session with success, by the 57th of the King.
to Irish 31 per cents. Under this arrangement,
iu Ireland it had been Touted that although a
considerable portion of the nominal capital had
been sacrificed, yet there had been not less than
half a million subicribed—a sum by too mama
in the scale of Irish stock. Bitt he had ar-
gued that the public would be Much advan-
taged by creating another stork like that which
he now proposed, which, being payable in Lon-
don, would be more acceptable. But as he could
not depend on the transfer of 100,000,0001. as had
been advertised for on the 14th of April, a sulk-
tenpins') had been proposed, or held out, of another
kind, to raise part of the supplies of the year. As
a means of raising a further sum, an option had
been given to holders of Exchequer Bills to he-
come subscribers to thi species of stock. During
the first three days, 6,000,000/. had been subscrib..'
ed (an inconsiderable sum. it laving been expected
that it would require a transfer of 11.000.0001- to
complete the desired object). He had the lupin.
newt to find that on Fridays very considerable sum
was funded, and that on this day the whole
27.000,000/. hail been nerdy transferred. It was
intended that a sum created by an appropriation of
1 per cent. on this stock should be annually appro-
priated to the purchase of the stork so long as it
coutinueed under par. The total amount of stock
intended to be transferred out of the original stock•
in which it had stood, was 34,909.0001- of which
27,273,000/. was to be funded in the newly-created'
31 per rent. stock, the remainder in the 3 per cent.
The difference in the interest due upon the present'
3 per cents. compared with that of the interest
on the 31 per cent, would amount to 136,3.521.
The terms on which this ~dvance was expected to
be created, would be fumed to he extremely low,
amounting upon the whole operation los rate or in•
tercet not exceeding 4/. Ins. lofd. per cent. Upon
this newly-created fund,• it was intended to create •
sinking fund, when they should arrive at 80. The
total charge on the whole operation, it was expected,
would not exceed 1.6i5.000/. He felt happy in
having to congratulate the House and the country
on the terms upon which these arrangements had
been concluded, as more advantageous titan any
which had hitherto bean transacted. About the
same period after the close of the American
war as had elapited sines the conclusion of the
late peace, Mr. Pitt had funded his Exchequer
Bills, to the amount of ten millions, in the 5 per
cents. whet. their actual price was from 55 to'sB
per cent. and concluded the arrangement at from
58 to 59 per rent. Owing to the operation of
the Sinking Fund, our funds hat risen, and the
3 per cents. which were at the close of the late
war at 56 were now at 80, which had been et:
fected principally through the medium.of the ap-
plication of the Sinking Fund, which had enabled
Government to command the money market. and
had matured the operation of the other funds. He
was aware olonettrcumstance which might certain-
ly le objected, but which, in his opinion, was a
matter of no very peat moment. It Might be
imagined, perhaps, dolt the subscribers misfit di.
cline the contract. Therewere two reasons why lie
should think they would not—the &St' was, be.
cause in general the option afforded them was, as
usual, favourable to their interests; and the second
was, that the subscribers, in all former cases,
up to this hour, had never yet declined con-
cluding the optional part of their contract.--
With respect to the Consolidated Fuld, no change
had been intended. When'the pence of. 1814 had
been concluded, it had been held eat that the sur•
plus might he made a species of fund towards a
new loan. It should be therefore his care not to
increase the chow on it next Session. The object
he should pursue with peculiar satisfaction to him-
self, was to leave in the hands of the Commissioners

as much as possible, so as to pay the mitres, of the
new loan, and yet ►o as not to increase the stock in
the hands of the Commissioners. The improve-
ments of the Revenue and Excise, which he
thought, without being considered excessive, he
tnitht estimate at three millions and a hail, was
peculiarly gratifyiug during the last quarter. On
the last year. therefore, there had teen an iu-
crease of 515,0001. which amounted to more
than ten pounds per cent. on the whole ac-
count. There *as another circumstance to which
it was necessary merely to refer for the sake of ex•
planation, which was, that there had been a great
anticipation of the sugar duties in the year pre-
ceding. The produce this last year war considera-
bly beyond its former amount, which only proves
bow far it would have exceeded its former produce
had it not been necessa►y so far to have anticipated
this part of the revenue. Looking to the improve-
mein of our navigation, manufachorea, and internal
industry, he entertained a strong conviction the
lapse of a few weeks would afford very considerable
additions to the Consolidated Fund ; in the next
year he expected that very considerable additional
funds would arise. The Right Hun. Gentleman
then moved his brat'vestolution,

That any person or persons who shall, oa or before lbe
14th of April, subscribe 2,5001. Mork in the 3-per cents. to
the account of the new stock 'of 31 *heats. shall; upon

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.caseti stbeic iroidlfseriLhll bring tistisferre4 to the said tie.
•conet by the Governors and Company of the Bank of Erie-
lewd, and span the 'marmot of I 1 /. per cent. in money, be
entitled to 190/. in the said new SI per cent, fur every 1001.
moper cent. so subscribed and transferred The whole of the
usey shbacription to be completed in payments 4 one
I pound per cent. each month. and the whole to beeitnally
' made good and paid on the 4th of February next.. 'llse mid
nevrlywreated stuck not to be liable to he paid off until
April 1859.
The Resolution being put,
Mr. BROUGHAM, although lie could tint take
upon himself to enter into a question like the pre-
sent, containing such se multiplicity of dead, mill
must avow his dissatisfaction with twiny of the ob-
serrations that the Right Hon. Gentleman had snide.
The great mini throughout all his speech was, to
conceal „his object—namely, that there being r
clear itelicit of fourteen millions, it was neeessery
to mite this fourteen aniline* in some way or other.
he whole ingenuity of the plan consisted its stu-
diously avoiding the ordinary form of borrowing,
mild thus disguisiug it under a different name,
the interest of which onset be defrayed by
the operation of the Sinking. Fund, ju part.—
To present to the House it finaiiciii
meat of this Wore, after the third or Ninth yei.
of peace, and assert it *as • subject of emigre.
tidatirmi was too much to expect the House should
hear without expressing it. displeasure, or at least
ill dissent. So far froin making both ends meet,.
Ministers were obliged to have recourse to the old
war meilts. These pouters of revenue even had
run dry, and they had now attempted to charge
part of the interest on the Sinking Fend. This
great plan of finance was nothing more than • sort
of lialfWay-lionse in the decline of the funds' former
stability, rod it' must he expected the 4 and 5 tier
cents. would so dile progress be reduced also. He
protested against this Budget ; it embraced the con-
temptible sad trifling, hot disgraceful and immoral
profits of the lottery ; 400,090/. had been sacrificed
to the cause of justice and humanity in the case of
the slave 'redo, of which he appealed ; hest why
had not this 250,0001. been is well sacrificed ?.
They would no doubt reply they could not spare
it. So much the worse. He had risen merely be-
anise he felt it was due to the character of the
Millet., that the first period who rose to speak on
it, should enter his strongest protest against it.
Mr. GaitairEm. expressed his decided disappro-
bation of tine boasted plan, as bring one of the
must improvident bargains ever made for the. public
by any financier. lie contended, the option was
greatly in favour of the subscriber, who might,
if the stock rose, Rorke good his engagetnent, but
it it declined lie was very likely to decline if.—
Nothing could be more improvident than funding
Exchequer Bills at 79, when it might as_well be
done by a loan at once, and less expense.
Mr. Maseithe considered this had been con-
tracted on advantageous terms to the country.
The CHANCELLOR of the EXCHEQU RR admitted
there was a deficit of 14 millions, as had been stated,
but • great part ..f this had driven out of the ex-
traordinary charges of the year. Another
Charge had arisen out of the increase of the use
funded debt. The amount of Exchequer Bills
next year Wouldliot exceed 40 millions, and at pre-
sent they only bore interest .at id. per day.
There consideratienii warranted hiM in saying,
there must be a considerable available surplus this
year. Many were happy, and there would be
found still many more disputed to subscribe to the
proposed plan, although that could not bethought
a bail bargain for the public, where thectiontky
was paying off a debt of 4,000,000/. by a payinent
of 50.0001. a year.
Mr. F. Lewis entered at considerable length
into the merits of the praposition. lie contended
it was imprudent policy indeed. when motley
private life could be had at fotir per cent. that'
Government should' be foolish ennugh to give RAW
and a hull for money flit the /Midi/ use. Althittikh'
it increased the intl.:test; it' provided for no reduc.
lion until this near stock was shave 90 per cent.
the streams of the three add a half per cent. com-
pared with stock now, beitigl7/: 1-01. Though the
reduction of course was' desirable, he contended it
was desirable is. this way. Filially, he ()Netted' to
it as it rendered the Sinking Fund's mire ominousl
and inefficient piste of machinery, prodUctive of
no general benefit.
Mr. H. Davis approved of the proposed plan,
and saw no prejudicial consegitentes likely tO. arise
from the increased rale of interest.

In reply to a question from Mr. Alderman SHAW,
the CHANCELLOR of the EXCHEQUER stated. did.
Commissioners for sedating the debt would of (vitae'
purchase such stock as waslowfat in the mart.

Sir JOHN NFWPOLT sa* no mown why the
holders of this stock should be secure from a re-
d uctioit, whennthe holders of offiek'stick 146'. net
provided with any such protecting clatiliat'ega. Ina
their stock being reduced, and considel.eo the bar:
gain imprrividebt MA detrimental to the (financial
intereats of the certainty.
Mr. HUSKIS§ON contended, that the rarirket'lnul
never been SO open to persons of every deacrip-
pro.int. Any petson who could coin-
mend a con' le of tkoutnaud poiands might en-
ter the market: For his parta be should li..
to see the whole of the debt reduced in
same way as this'had been, although' the money.
had been raised to do it at 4 per cent. interest.
lie contended that no proper distinction was slrawn
between the necessary means of feeding a Budget
in time of war, and one for a race estahliskineid,
and warinly enforced the necessity of not postponing.
for another year the effective consideration of' the'
finances of the country, and looking at its pernni:
neat expenditure and the means by which it could
be met.

Mr. J. P. GRANT said, that the great' merit
which wai attributed to the Right. Hon. 'Gentle-
man's plan was simply this, that the charges in the
amount of interest were less iii raising a larger &init.!
ing fund on a smaller capital, than in raising.. larger
capital on a smaller sinking fund. This was a clear
and indisputable proposition. But still in,the mode
of doing it, rather a loss than • saving bactuceurred :
'for here the country had to pay an tuterest,of
on every 111. raised.; this was at the meat/. 101.;
whereas, by other means, money naigtit be ►rased
at 41. or perhaps 3/. 17*. 'the great insportance,
in a larger view of this subject, was tl'e relative M..
tustion between the public debt and the means fur
its ultimate and systematic liquidation. There
was what Vll4l called an extraordinary expenditure
of one million Bad a half this year. which would not

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