The Sun.
London, England, 1807-02-02 00:00:00

ABSTRACT OF THE PLAN QF FINANCE,

,AND
OBSERVATIONS THEREON.

The. plan so ably developecl. by Lord HENRY'
1)1"I'Y &prided on the present rate of expence,
and intended to, provide, only for the charges of the
War, tho9gh ~its principle is npplicable to every
emergenty„
The expenditure of each year of War, exclusive
of Subsidies, .is therefore taken at 3e,000,0001. be-
yond the surplus bf the Consolidated Fund and the
Annual Taxes.

The price of Stocks is taken at Go, and 5 per Cent. 1
'as the interest of money; but variations on this price
will upon the whole be favourable to the' objeot to
view. The War Taxes are taken at 21,000,0001.
computing the Property Tax at 11,500,0001. and the
other ..Wa:r Taxes at 9,500,0001.
the: above-mentioned Expenditure cf
' 54,90,b,,,9001: annually • so long as the war may last,
it
.is fii-opcAdd to borrow, as a Charge upon the War
•Taxeli, t Q,000,0001. annually for the first three years;
for fhe fotirth year (or .1810) '14;000,0001; and fa
the ten succeeding years 16,000,0001. in each, year.
This' mode of dimributing the charge; by taking
smaller Loans at the beginning of the period, 00J
,increasing them, is preferred, because it will preveot
' too large an'addition to the future Supplementary
Loans, and consequently to the amount of Taxes.
But,. by 'this. atrangement; the utmost possible ad'
Vantagels not' taken Of the principle of the-plan ill
relief 'of our' present burthens.
In the first and, each succesive year for which these
Loans. shall beraised, so much of the :War Taxes i 5.•
to be appropriated- to thetwas•will provide for the In'
tertst on the Loan, and also such a Sinking Fund, 35,`
together with the interest; and charges of manage'
ment,*shall be equal to ten per cent: ott,the sate
borrowed, let the price of the- fuUds be whatever it
I may.

. . •
y, the natural operation of compound interest, $
five cent: Sinking Fund would redeem the Loan is
fdurteen years. If the funds should rise, the re'
deinption 'would be. accelerated, for if the Loan be
Made when the funds are at 75, or in other word::
at 4 per cent. then its corresponding Sinking Ftllls
will be 6 per cent. which will redeem tile capital in
thirteen years, the application of the Fund being
made quarterly.
To provide for this Interest and Sinking Fund d
-.10 per cent. an equal.arnounrof Virar Taxes is to ti
appropriated in each successive year; ankt wi:ich
continue pledged for 44-years; if the Ftiads should
continue at 60, but not so long if the Funds should
4IbliO;;1
f that
!.io lo)ro,oice.0,01.
be
borrowed at Go, in 180/1
witl -draw oil for interest and Sinking Fun
4
1,6'0(4001. for fourteen years. In 1620, tliii DO'
itr)n 0,6 totally. redeemed: And for seven years trn'a
thepeesent-time this* Plan' may be aled upon With'
but pledging the Property. Tax,-as the War Taxes 1
the cus,toms..and Excise will'provide arrample
for that Peridd; If the War •ShOuld be protraelv
beyond seven years, there are other ineOs to' wil.to
it .is propOsed to have recourse,' v6tliotir pledging tu
ProFrty.Tax lieyOn'irthe continuance of the War'.s
j. Ii Peace; be re-emblished sooner tbaniir
.by this other arrangenients
madefto release the portion. 4.): War Ta).ir,
thus to be_mortgaged.; but if, on the contrary,
should be protraCted beyond fourteen years, the oEra;
aiLn:ttaihnuc:iimisrtuaeymenth
i,will tall in upn•ael thisvte,3rp)t,hl-aen succeedingc• indefinitely;iirge,o fyasrcr:l:,
i•
lar War Loan to. ‘s. borrowed on thestnite. tenni 0,,
the service of eachso
0110. as -the 'War
continue.-

But as the Interest and Sinking
Zuid to be thugi
provided in each successive year tilt- the
.charle °'
, these; War Loans are taken ti'om the
Pr duck of 0
War Taxes, which now constitute- a pat, , 4 tV
means by which the annual expenditure is defrayed,
the deficiencies so created must be supplied as tvy
may respedivelv arise, and. it is propo,eci to do 015
by a Supplementary Loan.
• 0
In the first year (1807) the Supplementary 1)°31
'
0 1 so required to meet an expenditure of 32,0,009
will be only 200,0001. - _

War Loan 1807
War Taxes tr,Oco,opo
Dedud Interest and
Sinking Fiind of 1,200,600
War Lunt - -"----19,800,000
Supplementary ,Loan ,- - 200,000
Total Expenditure
to be provided for 32,000,000
by this Plan

12,,000,00c?

'
These Supplementary Loans will bo raised -0,
cording to the system pursued since the year .11g't
A Sinking Fund of one-sixtieth, or one per ce!'„'
upon the nominal Capital will be added to the '`..o
terest on these Loans, and the-chargeso created %Vl;ir
be provided for by the fading in of Annuities, Ql.
New Taxes.
'-'' ' • ' e
t
The amount of new Taxes- which. Will be Otis re.
quired in a period of twenty., years frOm the VDa
sent (supposing. the continuance of War) wili:o
2,100,0001. in all ; .at 'which period there. •wiltiot
.thirteen . years free from all new Taxes, and 0
the other seven years we shall be subject only 10
annual increase of 293,0001. -
f feti
The twenty years.is divided into two series 0 6
1
years each ; the first extending from 1807 to. 1
may be eased by the following expiring Annuiti°°
In 1.807 Annuities will fall in to the Z , • t
1541)
amount of - - - - 5
. , In 184 Annuities will fall in to the e
370,00 t,
• I. • amount of - : - - . 5
In afew years the Life Annuities granted
in William and Mary and Geo.ll. may 67,547
be ex petted to fall in to the amount of
In 18ro • Imperial Annuities will tali in g .
2,30,040
to the amount of • - - • -
£ 683,061 dot
. .
' • To this might be -added a sum arising froilleoti
redu6tion of the five per cent. to a four per et 01,1
fund, it the same were taken in aid of the ti'.olol
ries of seven years. The amount of this spill 00
be 480,5291. 04
There is no doubt but that the remainder of the,
millions might be obtained . better from the I ebcre):l
[hip and retOrm of existing taxes than by the de 0,
tion of new duties. ' And one great advaiter',
this scheme would be, that it. would afford Mit',. toi'
and, Parliament time to turn their attention lu
important subject, 160' e
The Annuities .which expire in 1 807 atidoitil
would veiy nearly provide for the derno-5