Star.
London, England, 1823-03-04 00:00:00

SINKING FUND.

The CHANCELLOR of the EXCHEQUER
moved the Order of the Day for the House resolving
itself into a Committee on the National Debt Re-
duction Act.—The Order was accordingly read ; and
the House having resolved itself into a Committee,
The CHANCELLOR of the EXCHEQUER said,
that as the object of his addressing the Committee
was to propose a series of Resolutions recommended
by the Commit:ee of last year, he flattered himself
they would not meet with any opposition. He, ne-
vertheless, thought it better to preface them with a
few observations, explanatory of the view taken by
his Majesty's Government of the subject to which
they referred. Of that subject it was impossible not
to see the importance and the difficulty. It was dif-
ficult, principally from the acknowldged fact, that
whatever the talents which had at different times
been exercised on the subject, whatever the zeal and
resolution of those who had examined them, expe-
-1 dente had told us that their plans had often met
with interruption, embarrassment, and counter-ac-
Ition. This had induced tnimy persons to infer that
it was altogether useless to follow up the plan ; but
these previous failures afforded, in his mind, no rea-
son for not endeavouring to effect the important ob-
ject. The argument of those who thought so, would,
if generally aioplied, lead to the paralyzing of the
energies of every country. It would apply even to
the reduction of taxation ; for if he, when pressed to
a reduction of taxation, we: e to say, Do not ask
for the reduction ; because there is no doubt a time
will come when they will be wanted again ;" his an-
swer
would be deservedly scouted. There was, how-
ever, one inference which Parliament ought to draw
from the past. They would see that if it was difficult,
from the known mutability of human affairs, to cal-
culate much on the future, it was particularly neces-
sary for us to be vigilant in the examination of our
income and expenditure, in order that we might se-
cure a surplus towards the discharge of debt; to ob-
serve a firm, but moderate line of policy ; to avoid
engaging in those conflicts which rendered the get-
ting of such a surplus difficult; at the same time not
forgetting, that if aggression required to he repressed,
if the national honour rendered a conflict indispen-
sable, it became the duty of the People to make
every sacrifice necessary to the attainment of those
important and desirable
,objects—(//car, hear).—
He had before observed, that the plans devised for
advantageously appropriating our surplus Revenue,
had become difficult in consequence of the failure of
previous plans on the same subject. To judge,
however, properly of those plans, it was necessary
that we should consider the circumstances attend-
ing them ; and he thought a fair review of those
circumstances entitled him to say, that he need not
anticipate any insurmountable difficulty which would
attend the subject in ordinary times—(Near, hear).
—The circumstances which almost immediately fol.
lossed the first adoption of Mr. Pitt's plan respecting
the Sinking Fund, were of so extraordinary a cha'rac-
ter, and events followed each other with such rapidity
and in such disorder, that human calculation was
baffled, and it was scarcely possible to form an accu-
rate opinion on the merits of a plan necessarily
affected by those circumstances and those events.—
For the sake of human happiness, he trusted they
would never be witnessed again ; and he hoped, that
if we steadily applied ourselves to the obtaining of a
surplus revenue, we should not meet any future in-
terruptions. He would, in the first place, examine
the state of our debt, on a comparison of the present
time with that at which it was at its highest. This
he did because those whose opinions were unfavour-
able to the Snaking Fund had said that they were not'
to expect any reduction of burdens as to our debt.—
Since the year 1816, at which time our debt' was at its
highest, there had been an actual diminution of debt,
not great undoubtedly, but it was an actual diminu-
tion, and must neces-arily have arisen from a surplus
revenue. On the sth of January, 1816, the whole
Funded Debt was 816,311,9401. and the Unfunded
48,511,3861. making a total of 864,523,3261. The
charge for the Funded was upwards of thirty millions,
and that for the Unfunded 2,100,0001. On the sth
of January, 1823, the whole Funded Debt was
796,530,1441. and the Unfunded was 43,526,6211.—
The charge was, in respect of the Funded Debt,
28,100,0001.—in respect of the Unfunded, 1,162,7521.
So that, en the comparison of the two years be had
taken, it 'would he found there had been, a reduc-
tion in the Funded Debt of 19,781,796/. and in the
Unfunded of 4,984,7251. being a total of 24,766,521/.
This, from the year 1816, gave an average of three
millions and a half for each year. This reduction
would have been considerably larger but for the mode
which had last year been adopted, of converting the
Navy Five per Cents. into Four per Cents. and which
had materially, though beneficially, affected the ca-
pital. This difference was so great, that it might be
safely taken at ten millions fur the last year. If this
were brought into the calculation, the diminution
would not be less than 35 millions. But if the charge
were considered, for this was the most material to be
looked.at, on a comparison of the same two years, it
would be found that the diminution in the amount of
charge exceeded three millions. Was it possible, then,
for any man to take the Paper he (the Chancellor of
the Exchequer) held in his hand, and say it was
hopeless to attempt to reduce the National Debt?—He thought not; and he trusted this House would
not consider it unreasonable in him to ask the
House to continue a plan which had already yielded
some advantage. In the hope that the House
would receive it favourably, he should propose
Resolutions, stating, in substance, that we might
assume-the Sinking Fund to start at rive millions.
It might be, and indeed it had been said, why pro-
pose the particular sum of five millions? Certainly
there was no magic in that particular sum, nor was
there any reason for takipg that in preference to any
other. - It was about, rather more, perhaps, than the
average of the excess of expenditure, and it was in
conformity with the Resolution of that House, passed
in the year 1819. The first Resolution would be for
applying these five millieins to the Sinki:gund.—
He proposed that many portions of the cr t Acts

jf_gr resulatiag the Sinking Fund slaauld be Spooled.
The Act now in'existence made the-nominal amount
of the Sinking Fund about fiftten or sixteen millions.
But he thought it was perfectly unnecessary to pre-
serve this machinery—(Cheers).—He proposed also
that the money should be paid to the Commissioners
quarterly; that the interest shiaald also be received
by the Commissioners, and put out to accumulate at
compound interest. In this respect he fully concurred
in the opinion of the Honourable Member for Taun-
ton (Mr. Baring). It would be better, he thought, to
let the sum accumulate until it had become sonfe-
what considerable, rather than remit it in such sums
that the remission would be almost imperceptible.
—This accumulation, he would suggest, should
continue until it should reach an amount equal to
one per cent. upon the whole amount of the Debt.
The time at which this might be expected to take
place was, of course, uncertain; but if the Revenue
continued to improve, and the expenditure to dimi-
nish, there was a fair prospect that the amount de-
sired would be bought up within a reasonable time.
It would occur to the House that it was in the power
of Parliament to improve the plan, and avail itself
of any future opportunity which might occur for
promoting the accumulation. He was not aware that
it was necessary for him to go into the subject at any
' greater length. lie conceived that he was entitled
on all hands to assurtw that a Sinking Fund was a
wise thing, provided we could maintain it; and five
millions, lie apprehended, was not an unreasonable
sum to commence with. Ile 1.4-a; convinced that the
House, by acquiescing in the Resolutions,would con-
fer a service on the country, and enable it to main-
tain its high station, in which, though it might have
occasionally raised the envy, had always commanded
the admiration of surrounding nations—(Hear, hear).
The Right Honourable Gentleman then moved,

"That it i 3 the opinion of this Committee, that the payment
of all sums of money which now tre charged upon and issuable
out of the Consolidated Fund of the United Kingdom of Great
and Ireland, to the Commissioners for the reduction of
the National Debt. should, upon and after the sth day of April,
185, cease and determine. _ _

"'That it is the ()Onion of this Committee, that all Capital
Stock and Annuities, for terms of years (save and escept the
Capital Stock ati,ing from donations and bequests, towards re-
ducirg the National Debt), which, on the sth day of April,
18'23, shall stand in the names of the Commissioners for the Re-
duction of the National Debt, in the books of the Governor 3ml
Company of the Hank of England, or of the South Sea Com-
pany, or of the Bank of Ireland, either on account of the Sink-
ing Fund, or for the purchase of Life Annuities; should, from
and after the sth day of April, 1823, be cancelled in the books
of the said Banks and South Sea Company, respectively ; and
the interest or dividends which would have been payable on the
said Capital Stock, upon or at any time after the said sth day of
April, shall cease to be issued or to be charged upon the said
Consolidated Fund.

" That it is the opinion of this Committee, that, upon the sth
day of April, 1823, or as soon after as the same can be prepared,
an accouut shall be laid before Parliament, chewing the total
amount of the Unredeemed Funded and Outstanding Unfunded
Debt in Exchequer Bills, unprovided for, of the United King-
dom, on the said sth day' of April; together with the annual
Charge attending the same. And there shall front thenceforth
he set apart and issued, at the receipt of the Exchequers of Great
Britain and Ireland, out of the said Consolidated Fund, to be
placed to the account of the Commissioners for the Reduction

of the National Debt, the annual sum of 5,060,0001. to be ap-
plied by them towards the reduction of the National Debt of
the United Kingdom, and which said sum shall he charged upon
the said Consolidated Fund, and be issued by equal quarterly
payments; the first quarterly payment to be charged upon the
said Consolidated Fund on the sth day of April, 1823.
" That it is the opinion of this Committee, that it is expedient
that so much of the Acts of the 53d and 56th years of his late
Majesty, relating to the redemption of the National Debt, as re-
quire that, whent.vr r an amount of capital funded debt of Great
Britain and Ireland respectively, should have been transferred
to the said Commissioners, as should be equal to the whole ca-
pital, and should produce an interest or yearly dividend, equal
in amount t 3 the whole annual charge, in perpetual annuities of
each loan contracted since 1786, that a certihcate and declara-
tion thereof should be made by the said Commissioners of the
amount of the I'ublic Debt, to which such certificate and decla-
ration should relate, should from time to time be deemed to be
wholly satisfied anddischarged, and an equal amount of capital
stock standing in the names of the said Commissioners, shoutl
he considered to be redeemed, and should, from time to time,
be cancelled, be repealed.
" That it is the opinion of this Committee, that no capital
stock, or annuities fur terms of years, which after the sth day of
April, 1823, shall be placed in the names of the said Com-
missioners, in the books cf the Bank of England, or of the South
Sea Company, or cf the Bank of Ireland, shall be cancelled
(save and except the Stock placed in their names, for the re-
demption of the said tax), until the interest of the debt re-
deemed by the said Commissioner; by the application of the

said sum of £5,000,000, and of the irowing interest thereof,
shall, together with the said sum of £5,000,000, have accumu-
lated to a suni, the annual amount whereof shall not be lets than
the one-hundredth part of the then existing unredeemed funded
debt, and outstanding unfunded debt in Exchequer Bills, unpro-
vided for, of the United Kingdom taken together ; and that any
capital stock, which shall be placed in the names of the said
Commissioners on account of the Sinking Fund, or further pur-
chase of Life Annuities, after the sail Sinking Fund shall
amount to the one-hundredth part of the said unredeemed funded
debt and unfunded debts, taken together as aforesaid, shall be
liable to be cancelled, at such tinier. and in such manner as Par-
liament shall from tinir to time direct.

" That it is the opinion of this Committee, that a new and se-
parate account shall be raised and kept in the books of the Go.
velnor and Company of the Bank of England, of the sums al-
ready given by way of donation or bequest towards 'educing the
National Debt, and of all sums which shall hereafter be given
or bequeathed4or the like purpose, and the interest or dividends
which shall accrue on all stock arising therefrom, shall be ap-
plied in the purchase of public annuities composing the National
Debt, for the purpose of fulfilling the directions of the person or
persons giving or bequeathing the same, and to no other purpose
whatever.

" That it is the opinion of this Committee, that the annual
expense of the establishment in Great Britain for the reduction
of the National Debt, shall be charged upon the Consolidated
Fund of the United Kingdom of Great Britain and Ireland.
. . .

That it is the opinion of this Committee, that the expenses
of the establishments necessary for carrying into execution ' An
Act of the 48th year of the reign of his late Majesty, for enabling
the Commissioners of the National Debt to grantlafe Annuities,
and of two Acts made in the 39th and 54th years of the reign of
his said Majesty, for Redemption of the Land Tax,' shall be
charged upon the said Consolidated Fund.
" That it is the opinion of this Committee, that it is expedient
that the several Acts for the Reduction of the National Debt
should be altered and amended."

Mr. LEYCESTER remonstrated against the cal-
lous feelings which could allow the House to listen
patiently to such calculations as those which the
Right Hon. Gentlemann, had just submitted to them
instead of turning their attention to the means of af-
fording relief to the distresses of the'country. The
condition of the Treasury was a secondary considera-
tion in the present crisis. The purse of the people
was the best Treasury of the State. With respect to
the Sinking Fund, even if it were wise in its origin,
it had become a folly, and was wholly inapplicable
to the existing condition of things. What kind of
' policy was that which pressed still more heavily
those who were already sinking under the burdens
imposed on them ? What kind Of policy was that,
which pretended to payoff the capital of a debt, the
mere interest of which it was found a matter of the