think I may render what I say more easily understood, if I, in this place, state my reasons why I produce Mr. Vansittart's Plan of Finance in 1813, as a part of my question, and as essentially connected with the propriety and the expediency of the measures which it may be prudent to adopt in 1815.

If I could be induced to consider this measure of Mr. Vansittart's in 1813, as a mere temporary expedient, in times, which I admit to have been of extraordinary embarrassment, I should have said no more than that Mr. Pitt would not have felt this difficulty so soon, nor would he have resorted to so dangerous a precedent as the only resource.---Mr. Vansittart will not be offended if I do not hesitate to declare that he cannot be compared as a financier with Mr. Pitt; especially, as I am prepared to say that no one is more sensible of his unimpeachable integrity, as well as of his industry and general ability, and that I do really think, that although his imagination may not be so brilliant as that of his supposed rivals in the department of finance, yet I think the public are much more safe in his hands than in those of any other who might be opposed to him.--But I do not consider this measure of 1813 as temporary expedient; on the contrary, the more I examine it, the more am I convinced that it is purposely contrived as the basis of a gradual system of departure from the true spirit of the Act of 1786 for the Reduction of the National Debt, introduced solely by Mr. Pitt; and the Act of 1792, first proposed by Mr. Fox in debate, and then immediately adopted in principle, by his illustrious political antagonist.---I know that the opinion which I have expressed, has been disputed. I have heard or read the arguments which have been used, and have no difficulty in deciding that they can mislead no man, who will give himself the trouble fully and fairly of examining the question."

These arguments, however, did satisfy the public mind at the time; the country was well pleased with a

plan, which relieved it from present burthens, and the Ministers were no less satisfied with themselves, as they enjoyed the popularity which they very justly deserved by their vigour in carrying on the war without incurring the odium of imposing new taxes. I should myself have been also in a great degree satisfied with the measure, if it had been produced and justified on its true grounds, viz. as a temporary resource in a moment of unprecedented difficulty; instead of which I find principles recorded and made permanent in this act of Mr. Vansittart's, which, without any violent distortion of their meaning and spirit, or without any gross misapplication or misunderstanding of their purpose, may, in a very short period, render the details of the Sinking Fund of Mr. Pitt, as much the history of what has been, as those of the Sinking Fund of Sir Robert Walpole.

It is from this view of the question, that I have introduced Mr. Vansittart's plan into notice, and shall subjoin an accurate account of its actual effects during the two years of its existence. I most ardently hope that the People, the Parliament, and the executive Government, will see the real interest of the country in its true point of view,---and that they will manfully unite in providing for the expenditure necessary for maintaining our Peace Establishment on a respectable footing, by some form of direct taxation best suited to the situation of the country; and above all, I hope, that they will abstain from resorting to the Sinking Fund as a further source of supply; as I confess that I should feel any new measure of Parliament, of this description, neither consistent with that manly frame of mind, that jealousy of national honour, and that regard to public faith, which are the prominent features of the true British character.

MR. VANSITTART'S PLAN OF FINANCE---1813.

53 Geo. 3, c. sect. 1.---This Statute, after reciting that £238,350,143 perpetual redeemable annuities had beeg

purchased or otherwise transferred to the Commissioners for the redemption of the public debt under the Statutes in the margin, and stating that this sum exceeded the total amount of this species of debt existing in the year 1786, when the plans of Mr. Pitt were first carried into execution, enacts, That the whole of the debt existing in 1786, (£238,231,248) shall be deemed " to be satisfied and discharged;" and empowers Parliament to "cancel" any part thereof by any act or acts to be passed in the present Session, in order to make provision for any addition to the public funded debt by Loan or otherwise for the service of the present year (1813).

So far the measure is purely temporary; and though confessedly a deviation from all the preceding Acts, it does not establish any systematic principle for future proceedings; but the very next sentence discloses the whole plan and contrivance, as we there see it generally enacted, with no limitation as to time---1st, as to debt existing on the first January, 1786, and then as to" the "annual charge in perpetual redeemable annuities of "each loan contracted since the said 1st January 1786," That all such perpetual redeemable annuities shall be deemed satisfied and discharged and may be cancelled by Parliament, "whenever such a further amount of "the capital funded debt of Great Britain shall have "been purchased by or transferred to the Commis→ "sioners as shall be equal to the whole capital, and "shall have produced an yearly dividend or interest "equal to the whole annual charge of each loan,"

I particularly recommend this clause to the atten→ tion of my readers.--It establishes in my view, a total and systematic deviation from the Acts of 1786 and 1792; for under these Acts, the total dividends of the Stock now directed to be cancelled, was applicable for the reduction of the old debt previous to this Act of 1813.---It will be seen from the above clause, and those

* 26 Geo. 3, c. 31–27 Geo. 3, c. 13-32 Geo. 3, c. 55–42 Geo. 3, c. 75 (Lord Sidmouth's act).

that follow, that the stock" cancelled" is now applicable exclusively to the new debt contracted since 1813.--The table herein after inserted will fully explain both what is here said, and exhibit in detail the practical effects of this system of cancelling, " or in other words, borrowing from the old sinking fund without any plan for repayment.

Sect. 2.--Declares that the dividends of all stock, not cancelled, shall still be applicable to the reduction of the old debt.

The following section is also particularly worthy of notice, as under a form of placing a limit to this operation of cancelling, it contains a principle affecting the reduction of the debt, which, with a slight deviation from its meaning; I may say, by a deduction from it not entirely irregular, may lead to the most pernicious consequences.

Sec. 3.---This section fixes a limit to the power of cancelling stock, i. e. the stock (vested by former acts in the Commissioners for the reduction of the public debt) and enacts, that this cancelling shall not proceed to such an extent," as not to leave in the hands of the " said Commissioners a sum sufficient, &c. to redeem or purchase such an amount of the redeemable public "annuities &c. as existed previous to the 22d of June, "1802, within 45 years from the said 22d June 1802, as well as to redeem or purchase an amount of perpetual redeemable annuities equal to such part thereof "as hath or shall be created subsequent to the said 22d

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June 1802, within 45 years from the respective "periods of the creation of the said redeemable perpe"tuities respectively."--Such is the limit proposed by this Act, to the power of cancelling (as it is termed) the public stock before vested in the Commissioners for the reduction of the public debt and applicable to no other purpose.

I shall not, in this place, make any observation on

this and indeed on the former clauses; reserving that part of my subject for a second letter.

In the mean time, I can only earnestly recommend the subject to the consideration of all the good people of this country, who place their due value both in a moral and a political view on the continuance of the public faith and public credit of Great Britain.

Sec. 5.---The next Section in the Act, which I shall notice, provides for the application of the dividends, due on the stock to be cancelled.

It must be observed that the former Sections empower Parliament generally in the cases specified to provide for the charge of Loans from the dividends of Cancelled Stock.

Sec. 6.---This clause provides the following Sinking Fund to be supplied from the same dividends, viz. 11. per cent. on the capital of so much of the new Stock created, as shall be equal to the sum estimated, to be applicable to the reduction of the National Debt on 1st February 1813, or in any future year.

As to the remainder of such New Stock, it provides a somewhat larger reduction fund, viz. half the dividend due annually thereon, but still out of the same dividend on cancelled stock.

Sec. 6.--This last section, which I shall notice, deserves much commendation. It states, that the Stat. 42, Geo. 2, c. 75, made no provision for a sinking fund for redeeming £86,796,300 before charged on the "Income Tax," and then made chargeable on the Consolidated Fund.---It then directs, that £867,963 shall be set apart and issued for this purpose at the receipt of the Exchequer out of the Consolidated Fund.

There is one remark only, which suggests itself on reading this clause, and this is, that it is a distinct admission that this Act of 1802 was in this respect at least (I think so in many others) a departure from the genuine original plans of 1786 and 1792.---I protest therefore against the citing this Act of 1802, as a pres