The Sun.
London, England, 1830-03-27 00:00:00

CHEQUER, the House resolved itself into a Committee
of the Four per Cent. Annuity Acts.
The RIGHT FlotT. GENTLIC3IAN, when in Committee,
said, that though the measure be was about to bring
under the consideration of Parliament was, in a financial
point of view, of great importance, it would not be
necessary for him, in explaining ita bearings, to trespass
tany length on the attention of the Committee. His
object was to relieve the public burdens by a reduction of
a partion of the public debt. The principle of such a
measure Was One needed not' in' that House any
argument by way of justification ; for it had ever been
felt by Mr. Pitt,
.and...those who succeeded him in the
management of the finances of the country, that it was the
duty of Ministers to take advantage of every opportunity
which the state of the public credit afforded of reducing
the a:nount of the national burdens. This principle had
been asserted by Mr. Pitt, and would no doubt have been
acted upon by him but for the eventful war, the extent,
duration, and consequences of which, it was impossible
for him to foresee. It was, however, as he had stated,
always kept in view by those who had succeeded him in
office, an 1, since the peace, had been carried into practice
by them to the extent of relieving the public burdens
annually of about 2,000,000/. The period ,had new
arrived for effecting a still further reduction of those
burdens, and accordingly he thought it his duty to take '
advantage of the first fair opportunity of availini, himself
of it. He proposed therefore to effect that further' reduc-
tion, by the conversion of the new Four per Cent. Annui-
ties intos new Three and a Half per Cent. stock.—(Hear,
bear.)—The circumstances of the country were highly
favourable to such a conversion, as a moment's considera-
tion of the rate of interest in the money-market, and of
the amount of capital seeking for a profitable outlay, would
convince any Hon. Member. Capital to a large amount
was laid out on mortgages at 4 per cent, interest, and was
now offered within his own knowledge for Si per cent.
When this fact was taken into consideration, and when
the peculiar advantages which an investment in the public
funds afforded were also borne in mind, the House he was
sure would not for a moment refuse its sanction to a conver-
sion of the Four to Three-and-a-Half per Cent. stock. It
could not be objected that the measure would operate as a
breach of contract explicitor ; for the act under which
the new Four per Cent. Annuities were created, explicitly
stated that that rate would be guaranteed for but seven years
—that is, that the act would be in force for only that pe-
riod ; Government being left at liberty at the expiration
of that term to act towards the holders of that stock as it
might appear advantageous to the public. Those seven
years had expired, for the act was passed in 1822, and
Ministers deemed it their duty to effect the proposed con-

version.—(Hear.)—He felt therefore that no further argu•

ment was necessary, so far as ti principle of his intended
measure was concerned. The only question then for the
Committee was, what were the terms on which he meant
taieffect the reduction? Those terms would, he persuaded
himself, be found those conducive to the public advantage.
He proposed to give every holder of the new (that
of 1822) Four per. Cent. Annuities, who should not
signify his dissent, 1001. of a new Three-and-a-half
per Cent. stock, and that 3f per cent. interest he
would guarantee for ten years. The price at present in
the market was 99} per cent. exclusive of interest, so that
his 1001. at Three-and-a-Half was a fair estimate. To
those who should express a dissent from these terms, he
would give an option of subscribing to a new Five per
Cent. stock, not redeemable until the sth of January, 1873,
each holder of Four per Cents. to receive 70/. of the Five
per Cent. stock for his 1001. It might be asked, perhaps,
why he had not preferred converting all the Four per
Cents. into this Five per Cent. 701. fifty-two years stock,
as there would accrue a great consequent saving to the
public ? The answer to the nestion was contained in the
fact, that at least 2-sthe of ciLe holders of the Four per
Cents. were trustees of the property of others—that
is, persons respousible for the management of property not
their own ; so that if they were compelled, without option, '
to take in lieu of every 1001. Four per Cents., 70/. Five
per Cents., Parliament would be neither more nor less
than legalizing an immoral act, by which, for the sake of
temporary advantage, a large amount of trustee property
might be deteriorated one-third. It might also be asked
why forty-two years had been fixed upon for the intended
Five per Cent. 701. stock, instead of that recommended in
a pamphlet, in which the subject had been minutely in-
vestigated. (We understood the Right Hon. Gent. to
allude to Mr. Briekwood's pamphlet.) In answer he could
say, that it appeared in calculation that all things consi-
dered, that 701. at five per cent. for forty .two years was
equal to 1001. at three and a half per cent. ; and that if
the recommendation of the pamphlet had been acted upon,
18,000,000/. capital would be sacrificed for 229,000/. per
annum; and for a Ss. reduce'-n of present interest the
possibility of a reduction of 109. in a few years. With
this brief explanation of his plan he should proceed to
move the resolutions on which he would found his Bill.—
He would be happy to afford any Hon. Member every
further information in his power. lie counted on the
sanction of the Committee to a resolution by which the
public would save next year 778,000/., and that, too,
without at all impairing the means of public credit ; on the
soutrary, its effect would be to add to those means, and
Vtereby to the character and resources of the country.—
(Hear.)—The Right Hon. Gent. concluded with moving
a resolution to the effect, that all holders of New Four per
Cents, who shall not signify their dissent shall have for
every 1001. of the Four per Cent. Annuities, 100/. of a
new Three sand a Half per Cent. stock, the first dividends
on which shall be payable on the sth of next January, and
which shall not be liable to redemption till the sth of
January, 1840, with an option to the holder of subscribing
to a new Five per Cent. 701. stock, redeemable on the sth
pf January, 1873.
Air. BERNAL was anxious to know by what plan the
diesentienta were to be paid off, because that ought to be
ascertained before the House were called upon to provide
for the necessary amount.
The CHANCELLOR of the EXCHEQUER said in
reply, that it would be inexpedient for the Government
prematurely to expose its plan. He hoped it would be
enough far his Hon. Friend to know, that the intended
gno4te of proceeding would be what became the country to
pursue, in fairness and justice to the public creditor.
After n few words, which were inaudible in the gallery,
between Mr, P. Tnoatsorr, Mr. BERNAL, and the CHAN-.
IIItLLOIL of the RxertxcluEß,
Mr. HUME pressed earnestly upon the Chancellor of
the Exchequer to state, in justice to the stockholders of
the Four per Cents., what his mode of proceeding would
be, to enable them to have proper time to decide whether
they would accept his new stock or take their money. He
ought also to say hew he meant to provide for the dis-
sentients ; because it was essential for the public to know
how far the Bank of England was to be engaged in the
transaction, considering the heavy liabilities to which that
corporation were already exposed. These two points of
information he hoped the Right Hon. Gentleman would
take an early opportunity of giving.
Mr. ROBINgON was quite convinced that the project
of the Chancellor of the Exchequer was practicable, but
he thought the fullest information should be given to all
the parties concerned.
Lord ALTHORP entirely approved of the principle of
the proposed arrangement, but he wished to call the Right
Hon. Gentleman's attention to the plan of converting the
stock into terminable annuities. His plan would be, to
allow the some rate of interest, but to give the induce-
ment of a bonus.
The CHANCELLOR of the EXCHEQUER promised
to give his best attention to every suggestion upon this
subject.
Mr. MABERLY expressed his satisfaction that Mr.
Briekwood's plan was to be tried.
The resolutions in furtherance of the Chancellor of the
echequer's proposition were then put, and agreed to.—
To Ise, reported on Monday next.