fund, so called from such union and addition; and the south sea fund, being the produce of the taxes appropriated to pay the interest of such part of the national debt as was advanced by that company and its annuitants. Whereby the separate funds, which were thus united, are become mutual securities for each other; and the whole produce of them, thus aggregated, liable to pay such interest or annuities as were [330] formerly charged upon each distinct fund; the faith of the legislature being moreover engaged to supply

any casual deficiencies.

THE Customs, excises, and other taxes, which are to support these funds, depending on contingencies, upon exports, imports, and consumptions, must necessarily be of a very uncertain amount; but though some of them have proved unproductive, and others deficient, the sum total hath always been considerably more than was sufficient to answer the charge upon them. The surplusses therefore of the three great national funds, the aggregate, general, and south sea funds, over and above the interest and annuities charged upon them, are directed by statute 3 Geo. I. c. 7. to be carried together, and to attend the disposition of parliament; and are usually denominated the sinking fund, because originally destined to sink and lower the national debt. To this have been since added many other entire duties, granted in subsequent years; and the annual interest of the sums borrowed on their respective credits is charged on and payable out of the produce of the sinking fund. However, the neat surplusses and savings, after all deductions paid, amount annually to a very considerable sum. For as the interest on the national debt has been at several times reduced, (by the consent of the proprietors, who had their option either to lower their interest or be paid their principal,) the savings from the appropriated revenues came at length to be extremely large. This sinking fund is the last resort of the nation; its only domestic resource on which must chiefly depend all the hopes we can entertain of ever discharging or moderating our incum

brances. And therefore the prudent and steady application of the large sums now arising from this fund, is a point of the utmost importance, and well worthy the serious attention of parliament; which was thereby enabled, in the year 1765, to reduce above two millions sterling of the public debt: and several additional millions in several succeeding years (42).

BUT, before any part of the aggregate fund (the surplusses whereof are one of the chief ingredients that form the sinking fund) can be applied to diminish the principal of the

(42) By the 26 Geo. III. c. 31. the parliament had the wisdom and firmness to vest unalienably in commissioners, the sum of 1,000,000%. annually for the reduction of the national debt; in which act every possible precaution was taken that could be devised, for preventing this fund from being diverted at any future time, and for carrying to the account of the commissioners for the purposes of the act the interest of such stock as should be purchased, and such temporary annuities as should fall in.

By that act it was provided, that when the whole sum, including the annual million, should amount to four millions, the dividends should no longer be paid upon the redeemed stock, and that the sinking fund should no longer accumulate.

By the 32 Geo. III. c. 55. it was directed, that, when the dividends amounted to 3,000,000l. exclusive of the annual grant, there should be no further accumulation.

And it was provided, that, upon all future loans which were not to be paid off within 45 years, one per cent. should be annually appropriated for their reduction.

By the 33 Geo. III. c. 22. an additional grant of 200,000%. was made for the same purpose, which has since been annually renewed.

The 42 Geo. III. c. 71. repeals so much of the 26 Geo. III. and 32 Geo. III. as fixed a limit to the accumulation of the sinking fund, and consolidates the funds provided by each act, and states that by the accumulation of that joint fund the whole national debt may be redeemed in forty-five years.

The wisdom of keeping this fund inviolable, is striking; for during a peace it provides resources against the periods of war and difficulty, it supports public credit by keeping the funds steady and uniform, and even in the times of the greatest depression the country derives the benefit of the rapidity of their redemption.

public debt, it stands mortgaged by parliament to raise an annual sum for the maintenance of the king's houshold and the civil list. For this purpose, in the late reigns, the produce of certain branches of the excise and customs, the post-office, the duty on wine licenses, the revenues of the remaining crown lands, the profits arising from courts of justice, (which articles include all the hereditary revenues of the crown,) and also a clear annuity of 120,000l. in money, were settled on the king for life, for the support of his majesty's houshold, and the honor and dignity of the crown. And, as the amount of these several branches was uncertain, (though in the last reign they were computed to have sometimes raised almost a million,) if they did not arise annually to 800,000l. the parliament engaged to make up the deficiency. But his present majesty having, soon after his accession, spontaneously signified his consent, that his own hereditary revenues might be so disposed of as might best conduce to the utility and satisfaction of the public; and having graciously accepted the limited sum of 800,000l. per annum for the support of his civil list; the said hereditary and other revenues were carried into and made a part of the

The following is the state of the sinking fund on the 1st of February 1802.

Redeemed by the new sinking fund

£. 20,490,003 39,885,308

£. 60,375,311 18,001,148

£. 78,376,459

Sums applicable to the reduction of the public debt on the 1st of

n

aggregate fund, and the aggregate fund was charged with the payment of the whole annuity to the crown of 800,0001. which, being found insufficient, was increased in 1777 to 900,000l. per annum. Hereby the revenues themselves, being put under the same care and management as the other branches of the public patrimony, produce more and are better collected than heretofore; and the public is still a gainer of near 100,000l. per annum by this disinterested conduct of his majesty. The civil list, thus liquidated, together with the four millions and three quarters, interest of the national debt, and more than two millions produced from the sinking fund, make up the seven millions and three quarters per annum, neat money, which were before stated to be the annual produce of our perpetual taxes; besides the immense, though uncertain, sums arising from the annual taxes on land

and malt, but which, at an average, may be calculated [332] at more than two millions and a quarter; and, added

to the preceding sum, make the clear produce of the taxes (exclusive of the charge of collecting) which are raised yearly on the people of this country, amount to about ten millions sterling (43).

THE expenses defrayed by the civil list are those that in any shape relate to civil government; as, the expenses of the royal household; the revenues allotted to the judges, previous to the year 1758; all salaries to officers of state, and every of the king's servants; the appointments to foreign embassadors; the maintenance of the queen and royal family; the king's private expenses, or privy purse; and other very numerous outgoings, as secret service money, pensions, and other bounties: which sometimes have so far exceeded the revenues appointed for that purpose, that application has been made to parliament to discharge the debts contracted on the civil list; as particularly in 1724, when one million was granted for that purpose by the statute 11 Geo. I. c. 17. and

n Stat. 1 Geo. III. c. 1.

o See page 326.

(43) See notes 37, 38, and 39, to this chapter.

in 1769 and 1777, when half a million and 600,000%. were appropriated to the like uses, by the statutes 9 Geo. III. c. 34. and 17 Geo. III. c. 47.

THE civil list is indeed properly the whole of the king's revenue in his own distinct capacity; the rest being rather the revenue of the public, or its creditors, though collected and distributed again, in the name and by the officers of the crown: it now standing in the same place as the hereditary income did formerly; and, as that has gradually diminished, the parliamentary appointments have increased. The whole revenue of queen Elizabeth did not amount to more than 600,000, a year: that of king Charles I. was P 800,000l. (44), and the revenue voted for king Charles II. was 9 1,200,000/. though complaints were made (in the first years at least) that it did not amount to so much. But it must be observed, that under these sums were included all manner of public expenses; among which lord Clarendon in his speech to the parliament computed, that the charge of the navy and land

forces amounted annually to 800,000l. which was ten [333] times more than before the former troubless. The same revenue, subject to the same charges, was settled on king James II', but by the increase of trade, and more frugal management, it amounted on an average to a million" and a half per annum, (besides other additional customs, granted by parliament", which produced an annual revenue of 400,000l.) out of which his fleet and army were maintained at the yearly expense ofw 1,100,000l. After the revolution, when the parliament took into its own hands the annual sup port of the forces both maritime and military, a civil list revenue was settled on the new king and queen, amounting, with

o Lord Clar. continuation. 163.

p Com. Journ. 4 Sept. 1660.

q Ibid.

r Ibid. 4 Jun. 1663. Lord Clar. ibid.

s Lord Clar. 165.

t Stat. 1 Jac. II. c. 1.

u Ibid. c. 3 and 4.

w Com. Journ. 1 Mar. 20 Mar. 1688.

(44) The revenue of the commonwealth was upwards of 1,500,000%. (Sinc. Hist. Rev. 2 vol. xiv.) This is a striking instance to prove, that the burdens of the people are not necessarily lightened by a change in the government.