AMOUNT OF SUPPLEMENTARY LOANS required in No. V. the commencement and close of any given year; and also, the Total Amount of the Sinking Fund applicable in each year to the Extinction of such Debt, the portions of the Excesses of the Sinking Fund above the Interest of the Existing Debt for the time being, which will be applied in diminution of the amount of New Taxes, having been first deducted from such Sinking Fund in each year. at the commencement and close of any given year, viz. the Debt charged upon the War Taxes, the Debt created by the Supplementary Loans, and the Present Debt; and also the Total Amount in any given year of all the respective Sinking Funds of the said Debts. The Price of Stocks is supposed to vary in the manner stated. each year of two successive series of ten years each, AMOUNT of the PRESENT DEBT, as it will stand at AMOUNT of the Three following DEBTS combined, as they will stand commencing with 1807.-Also the Amount of the Interest and Sinking Fund of 1-60th (or one per cent. upon the nominal capital created) to be provided for on account of those Loans. Also the effect of the application of the expiring Annuities to that purpose during the first series, on an average of seven years, and the effect of the application to the same purpose, both of the expiring annuities, and of the excesses of the present Sinking Fund, (according to the plan now proposed) during the second series, supposing the three per cents, Supplemen- Interest and tary Loans required. 1808 Debt remain- ment of each Year. Sinking Fund at same Periods. Debt at close of each Year. Year. Raje of Interest. War Debt, Sinking Funds Supplementary of War Debt, Debt, and present Debt, unredeemed at commencement of Year. Supplementary Debt, and present Debt, at same periods. 1807 £352,793,722 £8,331,709 £344,462,013 344,462,013 8,748,294 335,713,719 1812 85.71 1813 -1814 Par 1815 1816 1817 10,310,176 177,047,459 1823 177,047,459 9,492,351 167,555,108 1821 1824 167,555,108 1825 158,788,140 1826 8,766,968 158,788,140 1822 8,138,650 150,649,490 7,532,474 143,117,016 The annuities taken into these calculations as expiring within these two successive series of ten years, are as follows, wiz. 15,5151. which expire in the year 1807; 970,000l., being so much of the Short Annuities as are not pledged for the interest of the deferred stock upon the Loan of 1802, and which will expire in 1808; 230,000l. Imperial Annuities which will expire in 1820; and 67,5471. Life Annuities, granted in William and Mary and Geo. II. fallen in by the year 1920. It will be obvious that this column will shew the amount of new taxes which must be annually imposed, according to the present plan, supposing no aid were derived to it from the expiring annuities, or from the excesses of the Sinking Fund. 150,649,490 The respective Sinking Funds for the reduction of the respective debts, are supposed to operate by compound interest at 5 per cent.; but the respective Sinking Funds are issued to the Commissioners quarteriv. For this reason, the. capitis of debt redeemed, and the progressive amounts of the Sinking Funds will be greater than the computations in this Table represents them, though not in such proportion as into consideration the several different rates of interest cor to make it necessary to embarrass the accounts, by taking respondent to the periodical issues of the Sinking Funds for the reduction of debt by quarterly payments. 1826 608,512,931 24,812,533 583,700,398 612,500,398 26,292,908 586,207,490 616,607,490 27,769,694 588,837,796 620,837,796 29,242,784 591,595,012 623,595,012 29,160,066 594,434,946 626,434,946 29,074,866 597,360,080 629,360,080 29,128,504 600,231,576 632,231,576 29,142,690 603,088,886 635,088,886 29,095,890 605,992,996 637,992,996 29,065,719 608,927,277 [In the year 1810, the Sinking Fund will, on this calculation, be able to pay off about one thirty-fifth part of the whole debt: in the year 1820, it will pay off rather more than one-twentieth part of the whole debt: in year 1826, it will pay off a proportion considerally larger; notwithstanding the increase of the value of the Stocks to Par.] EDITOR, the Year commencg. Taxes required according to Plan proposed. Taxes required according to present System. No. VIII. AMOUNT OF WAR TAXES which would be released at the end of any given year, when Peace might take place; if the principle of rendering disposable the excess of the Sinking Fund above the Interest of the Debt were applied, on the return of Peace, to the Debt charged on the War Taxes, as well as to the present Debt; and, in that event, shewing how much of the Property Tax would remain pledged at the end of any given year; supposing the other War Taxes, exclusive of the Property Tax, to produce 19,500,000 per annum, and the Property Tax to produce £11,500,000, so as to complete the £21,000,000-(3 per cents. supposed to vary in the manner stated). Peace be applied | Interest of bot Excesses. released at End of any given Year. to release of Debts. Nil. 363,333 War Taxes. given Year. 1809 Nil. 733.333 No credit is taken for the annuities which will expire in 1808 and in 1820, nor for the sums which would arise from the reduction of the 5 to a 4 per cent, fund, and afterwards of the 4 to a 3 per cent. fund. No. VIII. The effect which the SINKING FUND of £1,000,000 per annum, established by act of 1786, and the annual sum of £200,000 added thereto, with the expired annuities and accumulations thereof, produced in the redemption of the public debt, up to the period of the arrangement established by act of 1802.-2d. The distinct operation of the respective sinking funds of one per cent. under act of 1792, on nominal capital of debt during last war.-3d. The combined operation of the different sinking funds of 1786 and 1792, from the period of their being consolidated by the act of 1802 to the 1st of November 1806.-Lastly, the distinct operations of the several sinking funds of one per cent., created for the liquidation of the debt incurred since the commencement of the present war in 1803, and which are subject to the conditions of the act of 1792. 1st.-The amount of nominal capital of debt existing before 1792, redeemed by operation of the sinking fund, under act of 1786, on 1st Feb. 1802 £39,885,301 Total amount of that sinking fund, 1st Feb. 1802, was 2d.-Amount of nominal capital of debt created by all loans, from 1792 to the close of the last war in 1802, redeemed by operation of sinking funds of one per cent., under the act of 1792, on 1st May, 1802 Total amount of that sinking fund, 1st May 1802 Total amount of all these sinking funds, 1802, after consolidation 3rd.-Amount of nominal capital of debt redeemed by these consolidated sinking funds, between 1st Feb. 1802 and 1st Nov. 1806 Amount to which these consolidated sinking funds had arrived, 1st Nov. 1806 2,534,187 20,738,431 2,462,103 5,706,017 48,374,566 7,050,418 FINA NCE. The new Plan of Finance has, for its obobject, to provide the means of maintaining the honour and independence of the British Empire, during the necessary continuance of the War, without perceptibly increasing the Burthens of the Country, and with manifest benefit to the interests of the Public Creditor. The proposed Measure is grounded on the flourishing state of the Permanent Revenue; on the great produce of the War Taxes; on the high and accumulating amount of the Sinking Fund; and on some inferior aids to be derived from Revenues set free by Annuities originally granted for a term of years, and now expiring. These circumstances, so favourable to the introduction and maintenance of a New System, are justly to be attributed to the wise, provident, and spirited exertions, which have had the concurrent support of Parliament and of the People, during the whole eventful period of the last twenty years. The Plan is adapted to meet a scale of Expenditure nearly equal to that of the year 1806; and it assumes, that during the War, the annual produce of the Permanent and Temporary Revenues will continue equal to the produce of the same year 1800. It is understood, that any further or unforeseen charge or any deficiency of Revenue, shall be separately and specially provided for. Keeping these premises in view, it is proposed, that the War Loans for the years 1807, 1808, and 1809, shall be Twelve Millions annually; for the year 1810, Fourteen Millions; and for each of the ten following years, Sixteen Millions. Those several Loans, amounting for the fourteen years to 210 Millions, are to be made a charge on the War Taxes, which are estimated to producee 21 Millions annually. The charge thus thrown on the War Taxes is meant to be at the rate of Ten per Cent. on each Loan. Every such Loan will therefore pledge so much of the War Taxes as will be equal to meet this charge:—that is, a Loan of 12 Millions will pledge £1,200,000 of the War Taxes. And in each year, if the War should be continued, a further portion of the War Taxes will, in the same manner, be pledged And consequently, at the end of fourteen years, if the War should last so long, 21 Millions, the whole produce of the War Taxes, would be pledged for the Total of the Loans, which would at that time have amounted to 210 Millions. The Ten per Cent. charge thus accompa nying each Loan will be applied to pay the Interest of the Loan, and to form a Sinking Fund, which Sinking Fund will evidently be more than Five per Cent. on such of the several Loans as shall be obtained at a less rate of Interest than Five per Cent. It is well known, that a Five per Cent. Sinking Fund, accumulating at compound Interest, will redeem any sum of capital debt in fourteen years. Consequently, the several Portions of the War Taxes, proposed to be pledged for the several Loans above-mentioned, will have redeemed their respective Loans, and be successively liberated in periods of fourteen years from the date of each such Loan. The portions of War Taxes thus liberated, may, if the War should still be prolonged, become applicable in a revolving series, and may be again pledged for new Loans. It is, however, shewn by the printed Calculations and Tables, that, whatever may be the continuance of the operation, the Property Tax will not be payable beyond the period for which it is now granted by the 48 Geo. iii. ch. 65. but will, in every case, be in force only during the war, and until the sixth day of April next after the ratification of a definitive Treaty of Peace, and no longer. It is next to be observed, that the charge for the Interest and Sinking Fund of the proposed Loans, being taken from the annual produce of the War Taxes, a deficiency equal to that charge will be created in the amount of the temporary Revenue applicable to the War Expenditure. Supplementary Loans will be requisite to make good that deficiency. Those Supplementary Loans must increase in proportion to the increasing deficiency, if the War should be contined: but the whole Amount of the Loan, in any one Year, including that charged upon the War Taxes, and the Supplementary Loan, will never, even in a period of twenty years War from the present time, exceed Five Millions in any year, beyond the amount to which the combined Sinking Fund of that year will have been raised; and upon an Average of those 20 Years, will not exceed £3,800,000. It is proposed that the Supplementary Loans shall be formed on the established system of a Sinking Fund of One per Cent. on the nominal Capital. The Charge so created will be provided for during the first three years, by the expiring Annuities; and during that period the Country will have the great benefit of an exemption from all additional burthens. A new spring may thus be given to the energy of our commerce: at all events it will obtain a security from the increased pressures which it must otherwise experience. From 1810, and for the six following years, a charge must be provided for, amounting on the average of those seven years to not more than £293,000 annnally: a sum in itself so small, in comparison with the great additions which have necessarily been made to the Taxes in each year, for the last fourteen years, that it can scarcely be felt, and cannot create any difficulty as to the means of providing for it:-But even this comparatively small amount may probably be much diminished by the increasing produce of the actual Revenues, and by regulations for their further management. And thus provision is made, on the scale of actual expenditure, for ten years of war, if it should be necessary, without any additional Taxes, except to the inconsiderable amount above stated. At the close of that period, taking the Three per Cents at 60, and reducing the whole of the Public Debts at that rate to a Money Capital, the combined amount of the Public Debts will be £387,360,000, and the combined amount of the several Sinking Funds then existing will be £22,720,000. Whereas the present amount of the whole Public Debt taken on the same scale of Calculation is £352,793,000, and the present amount of the Sinking Fund is no more than £8,335,000 If the War should still be continued beyond the ten years thus provided for, it is proposed to take in aid of the public burthens certain Excesses to accrue from the present Sinking Fund. That Fund, which Mr. PITT (the great Author of a system that will immortalize his name) originally proposed to limit to Four Millions annually, will, with the very large Additions derived to it from this New Plan, have accumulated, in 1817, to so large an amount as 24 Millions Sterling. In the application of such a sum, neither the true principles of Mr. PITT's System, nor any just view of the real interests of the Public, or even of the Stockholder himself, can be considered as any longer opposing an obstacle to the means of obtaining at such a moment some aid in alleviation of the burthens and necessities of the Country. But it is not proposed in any case to apply to the charge of new loans a larger portion of the Sinking Fund than such as will always leave an amount of Sinking Fund equal to the interest payable on such part of the present Debt as shall remain unredeemed. Nor is it meant that this or any other operation of Finance shall ever prevent the Redemption of a sum equal to the present Debt in as short a period as that in which it would have been redeemed, if this New Plan had not been brought forward. Nor will the final Redemp tion of any Supplementary Loans be postponed beyond the period of 45 years prescribed by the Act of 1792 for the extinction of all future Loans. While each of the annual War Loans will be successively redeemed in fourteen years from the date of its creation, so long as War shall continue; and whenever Peace shall come, will be redeemed always within a period far short of the 45 years required by the above-mentioned Act. In the result therefore of the whole Measure, there will not be imposed any new Taxes for the first three years from this time. |