The Statesman.
London, England, 1823-03-12 00:00:00

NeVIONA-1, IYEAT. RiDteTION X 114..
The CHANCELLOR ufthe EXCHEQUERmoved, That
the house do resolve itself itself bre a Committee on the
Nstioual Debt Reduction Bill.

Mr. GitENFICLL said, that he would avail himself of
Mit opp tunity *to submit a few observations to the
house. His remarks would have reference to one branch
of the Sinking Fund, well described by an hon. Friend
below him, on a former night, by the denomination of '
the Sham Sinking Fond ; and he felt it the more neces-
eary-to address the house on th;s occasion, because he-
feared that the doctrines promulgated by the hon. Mem-
ber for Taunton, and the lion. aleinber for Midhurat, on
this subject, might have influence on many, on account
of the great authority which the names of those gentle-
men justly carried with them. In reference then to this
Sham Sinking Fund, he begged to remind the house that
iu the origival Sinking Fund Act, which was passed in
1786, a clause was introduced by Mr. Fox, whereby the
Commissioners for the reduction of the National Debt
were enabled to apply the whole, or part of the Sinking
Fund in their hands, to the subscriptions fur any loan
which the Government might be under the necessity of
making. This clause was universally known under the
name of Mr. Fox's clause, and nos a wise and salatary
provision. But, instead of acting in conformity to so
useful a principle, the Ministers of the country did, from
the year 1793 to the year 1919,a period of 26 years, con-
stantly persuade the home that it would be for the ad-
vantage of the public, that they should burrow from the
loan contractor millions of money, in exchange for which
they gave him an article known under the name of 3 per
cent. And in the same year it was thought wise, that
the minister should seal his commissioner and bro-
ker Into the market with this identical money so.borroe-
ed, to be'invested in the purchase of 3 per cents. This
' system was thought advautageous to the public. In
1814, he called the attention of she house to the ruinous
consequences of such an arrergement ; but it was not
until 1819, that a change wok place, and in that year
happily the system was wholly abolished. Had this sys-
tete been harmless to the puhlic, there would not be any
ground fur reproach ; but it could be clearly shown, that
an actual loss ea; sustained by the public, arising from
ibis system. It was calculated, that upon four
loans contracted for, during the fall operation of this
system, there teas an actual loss to the public of
5,000,e001. lie seated illustrate his meaning more clearly
by referring to the proceedings of 1819. On the 6.h of
June in that year, the keen was understood to be fixed at
twenty-six millions. llowever, when the gentlemen who
were to bid for the loin appeared before the Chancellor of
the Exchequer, to tin ir over astonishment and disappoint-
ment they heard from the Right Hon. Gentlemen, that
Government intended ti carry info effect Mr. Fox's clausal
lathe Act of 1786, and that the loan fur that year would I
be limited to twelve millions. Let the House mark the
result. At the moment when the gentlemen who were to
.bid, entered the Chancellor of the Exchequer's office, at
Downing-street, the Futids were at 65. On their return
to the City, the Stocks rose, and on the second day after
that, in which they bad the interview with the Minister,
they rose to 70 and 71. The loin of twelve millions hav-
ing been contracted for, according to the pri• e of the storks
of the day, the consequence a as, that upon that occasion
la taxing was made to the
.public equal to three millions.
—(tlear.) He had eo hesitation in saying upon the last
information, that if the Ministers had acted from the year
1793 to 1819, in pursuance of the authority of Mr. tux's'
clause, there would base been saved to the public, upon'
the loans contracted within the interveniog 26 years, no
less than fifty millions.—{dear.) He trusted then,that after
the experience they had had of the ruinous effects of tkis
system, that, if new loam sbould be necessary in any exi-
gency of the country, the system would not be revived.
After having said so mach on this branch of the Sinking
Lund, which he should have abstained• from doing but
for the Indirect countenance that bad been given to it
by persons of so much authority, be would now advert to
the subject of the teal Sinking Fund. In the same propor-
tion that he was au enemy to SAUD Sinking Vend, he was
a friend to a real one. He was a warm friend to the prin-
ciple of applying a real surplus of Revenue as a Sinking
A
rune, and allowing it to aecumnlate in the :winner pointed
Lent Ay the Bill before the House. Hewes surprised to hear
the ohjeetioos which had been urged against it by some
of hie bon. friende. It was argued in one quarter that
the House-Anon not countenance the maintenance of a
-fund for some future application, for they supposed that
in the intermediate tirue some rapacious Minister would
lay bis bands on it, aid m ,Ire an extravagant use of it.
But how was it possible fur any Minister, be his rapacity
ever so unlimited, to interfere with this fund in any
' manlier. 'unless with the sanction of the House and
that of the country? If an occasion should arise when it
would be proper to convert the Sinking Fund to same
purpose other than for which it was first designed, would
it not be a great advantage to the country that a resource
was inexistence on which the Government in an emer-
gency could lay its bands. He had supported the plan
proposed by the late Chancellor of the Exchequer in 1113,
because he wished to give the country a little breathing
time, and in point of fact, the plan had the effect of re-
lieving the country for three or foer years from the great
pressure of taxation. His Hon. Patina, the Member for
Portarlimiton (Mr. Ricardo), proposed to sateeitute for a
Sinking t. and a project of his own far the re luction of the
National Debt, by which he would make all species of
peeper!), in the country contribute its proportions to that
object. Now, with great deference to his hon. friend, he
begged to ray, that of all the %dans which lie bad heard
proposed for paying off the National Debt, this• was the
l
moat wild and visionary. He would ask his hon. friend,
in the first place, was It possible for consummate talents, I
aided by, the lights of the longest experience. to arrange
such a plan as would ascertain with etpity rid imparti-
alit:, what every 'peace of property was to contribute—'
freehold, leareholl, and the innumerable sreies of
property in this country? Funded property would be,
perhaps, the least difficult to render subservient to such a
plat, ; but tide was not the whole of the difficulty. After
hoeing ascetts::.edtheproportion to be contribute:abreact,
species ; was it practicable to make every msn in this
country bring forward such a proportion of his property
as would be necessary to assist in paying off the very tri-
fling debt of civic hundred millions ? fhe project, no
sou t, would be a very advisable one to adopt. The only
objection to it was that it was impracticable. What he had
to add on this subject, was in reference to his hoo.friend,
the Member for Aberdeen, to whose efforts in that !muse
he, in common with a great many, offered the tribute of
his applause. Among the Resolutions put on record by
his bun. Laced on the subject of the Sinking Fund, and
which exposed the operation of that measure in a men-
nee the most clear and comprehensive, there was ooa
which aepeared to him to proceed upon a fallacy. 'The
lceculuti .n stated, that because the debt of the country
bad increased during the period wbiist the Sinking
Fund was established, there-bre it was founded in felltry,
and maintained by delusion. He den'ed this inference,
and prozeetied to state a parallel case from which he con-
te.ndedethat the conclusion might be drawn, that it was
possible that the Sinking hand might not be inoper-
ative, and that the country might even improve whilst
ethe debt was increased. The honeurable gentleman
concluded by stating that he gave his hearty support to
the Bill.
M. JOHN SMITH said, that though the Sinking
Lund might, from a variety of circumstances, have preyed
insufficieot as to the real objects for which it was Jai-
tined, it certainly had horn useful during the war, in ta-
cilitnting the negotiation or loans upon comparativriy
advantageous terms to the country. His Hon. Frtend
who had just set down, had shown the injarmas goats oi
the system tbat bad beyponied op to the year 419, in