Stock borrowed in the 3 per cents in

STATEMENT OF THE FUNDED AND UNFUNDED DEBT ALREADY INCURRED BY THE PRESENT WAR.

Navy Debt funded in the 5 per cents in

Ditto

April

1796

1,021,612

An Annuity of 63,498 for 66

years, in

1794

4,604,150
139,176,993

Whole amount of the annual expence on that part only of the debt which has been funded since the commencement of the present war

UNFUNDED DEBT.

Navy Debt on the 31st of December 1796
Ordnance Debt on ditto
Exchequer Bills, voted in December 1796
Deduct the Navy debt on the 31st De-
cember 1792

£•4,948,877

145,404 5,500,000

2,745,991 10,594,281

55,814

8,301,805

Ordnance debt on ditto
Exchequer Bills issued on ditto 5,500,000

Increase of the unfunded debt * during the war

2,292,476

But these sums, great and enormous as they are, by no means constitute the whole amount of the debt which has been incurred by this ruinous war. The Emperor's loan, which was to have been paid off by half-yearly instalments of 46,000 /. still retains its original magnitude. Not a single instalment has ever been made, and even the dividends, which became due in November last, would not have been discharged, had not a much larger sum been given by the Minister without the consent of Parliament, in order to enable the Imperial directory to appropriate a part of it for the payment of them. It is more than probable, therefore, that the principal and the interest of this loan will soon become a permanent burthen on this devoted country.'

Principal.

Interest and
Sink. Fund.

£139,176,993 £.6,356,176 2,282,476 151,213

4,874,646

4,491,735

16,616,416

-25,982,797

1,721,250

8,228,639

Amount of debts and taxes produced by the
war, if it ends with the present year 167,442,266

If to this sum be added the Emperor's loan, the capital and interest of which are respectively equal to 6,956,013 7., and 348,232 l., the whole debt incurred by the war, will exceed one hundred and seventy-four millions, and the taxes eight millions and a half.

* It will be recollected that 26 millions of this debt have been funded in the last year.'

In the year 1791, when all the arrears of the American war were either funded or discharged, the annual interest upon the public debts amounted to 9,289,110l. In less than five years, therefore, the present Chancellor of the Exchequer will have added very nearly as much to the taxes, as all the ministers that have ever afflicted this country from the Revolution to the commencement of his administration.'

In p. 42, Mr. M. states that, in the year 1795-6, the following sums have been borrowed.

• Loan in December 1795

April 1796

Navy funded in ditto

£18,000,000

7,500,000 4,414,000

Navy and Exchequer bills funded in October 1796 14,493,000.

£•44,407,000'

It may be remarked that he does not include the loan of 18,000,000l. of December 7, 1796, in the sums borrowed in the course of that year. He appears to be of the same opinion which we expressed in our account of Lord Lauderdale's "Thoughts on Finance," when we noticed his Lordship's inaccuracy with regard to that sum.

C WHOLE AMOUNT OF THE NATIONAL DEBT.

Additions to the funded Debt since the Year 1788.

Principal. Interest and

Whole of the funded debt, and its interest 396,085,989

15,596,665

Unfunded Debt, supposing the War to end with the present Year.

Unfunded debt, from page 30

10,594,281

Extraordinaries of the army and navy not yet

provided for, together with the probable expences attending the termination of the war (page 36)

* See p. 89. of our last Review.

2,423,230

25,982,797

36,577,078 2,423,230

Balance

Can any person read this account without apprehension, or indulge the frantic opinion, that a nation, oppressed by such an enormous mass of debts and taxes, can persevere in the present system of war and profusion without soon involving itself in ruin? But these statements, however alarming, by no means represent the evil in its whole extent. The expences of the army and navy, the civil list, and the sums annually appropriated to the sinking fund, must be added to the account before an accurate idea can be formed on this subject. Supposing, therefore, that hostilities were to cease with the present year, the whole expenditure of this country will be nearly as follows:

Interest of the funded debt, including expences of management, and the addition of 1l. per cent. on the capital borrowed since the year 1793 Average peace establishment of the army and navy for seven years before the present war

Additional peace-establishment arising from an increase
in the half-pay list, barracks, foreign settlements,
&c. which I am satisfied is below the truth
Interest on the unfunded debt, including the sum
which must be raised for the unprovided services of
the year, and for winding up the accounts of the
war (page 50)

Civil list

Sums annually appropriated for the sinking fund

£.15,596,665

5,151,183

500,000

2,638,839

900,000 1,200,000

£.25,986,687 • If

* In these statements I have not included the Emperor's loan, which would have swelled the amount to more than 444 millions.

8

After

If such be the sum which must be raised by taxes from the people of this country, it will naturally be asked, "to what sum do the present impositions amount, and consequently to what further extent must taxation yet proceed before a sufficient provision shall be made for the public exigencies?" In answer to these inquiries, the following account of the revenue will afford ample, though perhaps not very consoling information.

Nett produce of the taxes imposed prior to
January 1791, for one year, ending the
5th January 1797;
Difference in the produce of the duties upon
British spirits in the last year, and their
average produce in the three preceding
years, in consequence of stopping the
distilleries,

12,958,439

nuary 1797,

602,659

Bounties allowed on corn imported in the year 1796

573,418

23,649

Bounties for raising seamen in ditto,

Deduct the increase in the produce of the duties upon beer in the last year above their average produce in the three preceding years, in consequence of lessening the consumption of British spirits,

14,158,165

Produce of all the taxes which have been imposed in 1793, 1794, and 1795, in one year, ending the 5th of Ja

196,683

13,961,482

2,408,476

Taxes imposed in the years 1796 and 1797, supposing them to produce the full sums at which they were estimated,

3,724,000

Land and malt tax, estimated by the commissioners of public accounts to produce on an average annually,

2,558,000

L.22,651,958

Whole amount of the revenue,

Deducting this sum from 25,986,6871. a deficiency of 3,334,729 / will remain to be made up by new taxes, in order to render the national income equal to the expenditure.'

But the stoppage of the Bank is not considered by Mr. M. as a mere temporary calamity.

The conduct of the Bank Directors, (he observes, page 65,) in surrendering their trust into the hands of the Minister, the sacred ties,

After deducting, therefore, all the stock which in the course of the last ten years has been purchased by the commissioners, the national debt, at the end of this year, will exceed 400 millions of guineas. But it is of very little consequence whether this debt exceed 400 millions of guineas or 400 millions of pounds. In either case, I am afraid that it is equally impossible for the nation to support it.'