The Statesman.
London, England, 1819-06-14 00:00:00

VIE SINNING FUND.

Mach iniscnoteption still remains in the minds of
many „ii,imionnall persons respecting what is called
the application of the Sinking Fund to is,e service
of
the rear, and the manlier in which this pretended
Fund is woken of is bet too well calculated to keep
up she delusion; most of those who talk or write
shoot it use ambiguous modes of espressino, which
leave the hearer or reader In doubt as to the real
meaning of what be hours or reads. The whole mut-
terer the Sinking Fund is, however, very simple,
sail might on soy occasion he very clearly stated.
When it is mid that the Stoking Fund is to he
applied Is Oho Introit, of the leer, the voids seem to
imply that musething produced by that Fond is to be
applied, or that at the least some money in the hands
of ,tea Commitsioners of the Sinking Fund is to be
thee Ipplied—which is jest the meets, of the feet;
and it would therefore be better not to use repres-
sive§ which bate no meaning, and which can only
misteed.
'/here is no Sinking Fend to apply to the service
of the year; nor, indeed, soy Sinking Fond at all
for any purpose ; neither hes there been any such
Fund since the expenditure of the Government es-
seeded the public rearm.e in the year 1763.
These can never be any iciest payment of debt
while the espenditere 'steeds the income ; but when,
eir the twittery, the income exceeds the expenditure,
thoditiecelice may be applied In pay off a portion cif
Um debt, and this is all chid can be done, even in that
ease.
Thole *ever ran he an ettemelated hoard or fend
composed of the I surplus of revenue, and of
'ropiest wining from the some which have been paid
elf ; they cannot be both paid elf and kept in hand.
Timm is only one snore, of revenue, namely,
TAUS'', and gibe the Taxes produce more money
than Is selicient to psy the interest of the Public
Debt sod the current *openers of the Government,
what remains may be applied to (edge, the debt.
It is not the debt which produces Interest. The
money which has been lent being wholly spent and
consumed, lens are levied on the People, and por-
tions of the money lbws raised are given to holders of
Stock, soder the name of interest ; end when by
seems of a surplus of income over expenditure a per.
ties of the debt has been conceited, it is absurd to be
ettektraing en the caocelled debt, either as producing
or bevies interest paid on It.
If we suppose the income of the present yes, to he
65,000,0001., and the el poise it en to be 60,000,0001.,
there will remain 3,000,0001., sod these 5,000,0001
may be applied to pay an espial sem of the public
debt-i if there were to change of eireemstamees
during the meat year, theist would be another
5,000,0001. at the end of it remaining in the Each,-
gee, ; bet as the former 5,000,0001. bad been ap-
plied to reduce the debt, the amount of the interest
which had formerly been paid to the individuals from
whom It bad been purchased, would now also recoils
in the Escheqeer to be added to the 5,000,0001. our.
plus, making together, soy 5330,0001., which might
be applied to pay off an equal sense( the public debt,
which could be reduced 10,250,0001. At the wed
of the third year there would be the usual surplus of
6,000,0001 sad the interest saved on 10,250,0001,
and thee at the rod of each succeeding year
• still larger sons would be csiocelled; and
thins remaining the same for about 100 jests,
the whole of the present debt 'meld be paid olf. It
may be preowned to be perfectly clear that this mode
(and it is the only possible one of catteelling the debt)
+tee not admit of accumulation in the hand* of Com.
miseiosiers, sr in any other bands, and that it eon
tomtit oho so fond. It is, indeed, imprint), the same
se Oat of a man who lly paid •tr • portion of
his debt ; be would be leas and less in debt, but he
would have accumulated nothing bat the cancelled se.
entities be had paid off.
Whee•vetr, tbetefere, there shell be a implies of
income above enpetrdtture, all that need be done is for
the Embalms to tomtit from time to limo too broker
to boy op mock, said to employ owe of its dribs to
make the trusties of meaty ismed lad stock purchased.
Those will need no Commiestemers, and no reproves
eolablishsneet whatever, lb. whole matter being per-
fectly simple, occupying very little time, and giving
tier) little trouble.
're, transactions about to be adopted are Imam
—A east of money has already been borrowed by
lasses of Fact 'goer Bills; about 15 000,0001. of
which were inteoded to be given to the Sinking Fund
Commis-inners to perches, stock, mod • loan of
30,000,0001. lies to have been made, 15,000,0001.
of which were to provide the stock for the Commis.
1601 W/ I, perdu's. : this plan bee, however, been
changed. sad the Commissioners are to percher*
3.006,0001. only ; the Loan is t.insequently less
than it we intended to be by 18,000,0001. and the
12,000,0001 of I.:sampler Dills, instead of being
glees to the Sinking Fund Commissioners, at•
to be applied in the service of the years. It is there-
fore no pert of the pretended Sinking Food which
isle be applied in the service of the yew, but twelve

or mono, borrowed o • Goveromeet moo-

isedation paper. celled Exchequer Bills, bea►ing In-
terest. These Eschew'', Bills must some day be
feuded, and form a pan of the permanent debt. It is
not therefore applying twto-tbitcle of the Sinking Feed
ashes been obserdly stated, to the retain, of the
year, bet it is petite% Ito end to feet•ftfthe G' the
ttenesetsons ennented with that pretended fund.—
The remaining ore-IMb we may now hope will also
bepot an end to; it may also be hoped that eke.
this takes place we •hall heir sun more of the re-
deemed dal* is tl bands of the Commissioners,
•bid has hitherto been talked of merely to per.
swede the credelnoi that this redeemed debt was act
amity prodocing niter's.— compound interest—sad
tepidly paying off Ad debt, oldie in fact it
',doted the debt one shilling, and prodeced nothieg
bet renenceand loss.
To those who are at all famine, with the sib.
jest no more need be said ; but the millifiration in
which it had been *lnvited, and the rrrrr mice with
which the calculation ii leoreed men hod commit it to hi
viewed, hose so blinded many toils real nothingness,

-
• rbe precba•es tor the Campiewrotp I. nee lnrna,inse anlll Obi
sth " JOT seat, by volli lb Stew rheus 7,50U.C0i1. of sine► vt
IN
bine been perebbsee, and 7.3011.1.10111. be Iliiebe.itter 1111/s. II "6
.__Sle.l4.4bee or which •111 bay.. bee:' perrba-ei. law be
•••g. s., Am. 1.• Net. Ike Minister will hue thew a She
I."'"rr be ISAUO4.IOII Eseip Tier llilk, mid set IIge,OUVI.
led the siferema owl be rade up by mew iseQes.