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

the punctual fulfilment of engagements. What had
the Public contracted to do? Why, to pay certain
perpetual annuities; and as long as they continued
to p hose annuities, public credit would be main-
tained—(Hear, hear).—Trhe late Chancellor of the
Exchequer had a most extraordinary idea of shat
constituted public credit. He (the Chancellor of the
exchequer) thought it consisted in a high rate of
stock. With all due deference to the opinion of the
late Chancellor of the Exchequer, he was of opinion
that a high price of stock was injurious to the coun-
try. He would fearlessly appeal to the present Chan-
cellor of the Exchequer, for his opinion as to whether
the means adopted by his predecessor for bolstering
up the funds had not been attended with unfortunate
results? The excess of income over expenditure from
]Bl7 to 1822, amounted, as he had before sta:ed, to
£7,528,869. What did the late Chancellor of the
Exchequer do, when he found himself in possession
of that surplus? He sent the Commissioners for the
reduction of the National Debt into the market, and
they purchased stock to the following amount in the
respective years:
In 1817 £13,696,991
In 1818 . 14,562,932
In 1819 9,436,053
In 1820 4,257,934

In 1821 4,524,574
Nothing could possibly exhibit the absurdity of the
Sinking Fund in a stronger light than these trans-
actions. Although there existed only a net surplus
of 7,000,0001. during the five years he had mentioned,
the Chancellor of the Exchequer actually borrowed,
by means of loans, 90,000,0001. out of which he gave
80,000,0001. to the Commissioners for the Reduction
of the National Debt, to be expended in the purchase
of Stock. in order to keep up the price of the Funds.
The effect of so bolstering up the Funds had been to
induce Englishmen to invest their capital in foreign
seem ities; which he did not like to see. It the Reso-
lutions which had been proposed by the Chancellor
of the Exchequer had for their object the keeping up
of the Sinking Fund, he would oppose hem at every
step—(Wear, hear).—The plan of the r.ight flonour-
able Genaernan was, paying with one hand and bor-
Moving with the other; whereas the uncertai:;ty and
additi .nal expense of that mode might be avoided by
caneeliing the D:bt as the surplus accrued. The
Right Honourable Gentleman had laid great stress
noon adhei in?, to the Ite.olution of 1819. What was
that ?—that the public credit of the country could not
be effectually held up without a surplus of five mil-
lions as a Sinking Fund : but was there that surplus?
liv had contended at that time, that no such surplus
ceuld exist without the riddi of new taxes.—
He now asked s hat was the result? The House had
come to the abominable resolution to add three ma-
ligns, by additional taxation, to make up this sum
of live millions, which was to be called a Surplus
Revenue and a Sinking Fund. Ile should never
cease to object to a system founded as this was. It
had been said that a great advantage to the public
creditor was in this, that be was paid in a better
currency than that in which the debt was for the
greater part contracted; true it was, and he would
here again repeat his anxious wish that good faith
should be kept with the public creditor: but the
Chancellor went farther; he gave more than was re-
quired in justice to the other branches of the com-
munity, for he continued the depression upon those
other branches, by keeping up a Sinking Fund of
5.000,0001. to be, as it were, a greater security.
Now, he contended, that in fact it would afford no
greater real security to the public creditor, while at
the same time it would be greatly injurious to the
other classes, and might be the means of injury
to all, inasmuch as it would enable Ministers to
continue their system of enormous expenditure.—
But it might be. asked—would he have no surplus?
Yes, he would answer; he would remit the 5,000,0001.
in taxes, and still there would be left a surplus of
from 1,000,0001. to 1,500,0001. and, besides, the re-
venue would improve in proportion as the burdens of
the people were lightened. As was said on the repeal
, of the Salt Tax, a great part of the sum reduced would
comeback to the Exchequer in another shape, it would
be the same in the reduction of these 5,000,0001.—a
considerable portion of the money would find its way
back in the increased consumption of various at titles.
He there:ore called upon the House not to sanction
the continuance of this surplus of 5,000,0001. under
the delusive idea that it u as necessary to support pub-
Yc faith or strengthen public credit. As long as we
were in a condition to nay the public creditor what
was due to him, so long would public credit be sup-
rotted, The credit of the country was never in a
more flourishing condition, as far as confidence in its
resources went, than in those years when we had, in
effect, nn surplus whatsoever. From the years 1793 :o
1817 we were borrow ing every year,had no real Sinking
Find, and yet, during all that time, public ci edit was
kept up in a manner which had not been exceeded since.
The Honourable Member then went on to contend,
that it was a blind and absurd policy to go on ima-
gining a surplus fund, while there was a deficiency
of some millions in the Consolidated Fund—that it
would be wrung to leave any surplus fund which
might exist at the disposal of Ministets, holding out
to them at least a temptation to divert it flour its
original purpose. He would leave them nothing.—
The House had been much too confiding already.
He hoped, therefore, the Chancellor of the Exchequer
would not press his plan. If they were to have a
binking Fund at all, let it be a real one: but he,
maintained that we wanted none—that the fundholders
wanted no additional security ; therefore the sinking
Fund would be no relief to them, but that the con-
tinuance of it would be a real oppression upon a
large portion of the community already too much dis-
kressed, and who ought in justice to be relieved from
t!:i:r burdens by the amount of this sum. The
honourable Member then contended, in reply to the
argument of the Honourable Member for Taunton
Or. A. Baring), that it would be equally unsound
policy to leave this sum as a kind of fund to be used
in case of any sudden emergency—Mean hear).-
11 it weie to be so kept, how could it be called a fund
for the reduction of debt ? But if it was for the re-
daction of debt, let it be so applied in the proper
form, and not allowed to accumulate in the hands of l
those who would be too ready to dispose of it in ano-
ther manner. There were many ways of making the
surplus applicable to the payment of debt—by can-
telling stuck, and by redeeming annuities; but to lay
it 0111 in buying tic at :s0 what we sold at little more
tiblnso) would be absolutely throwing away the pub-
" money. The lion. Member their read One of the.