Annual Register

and out-pensioners had been defrayed, up to the last year, out of the funds of the hospital itself. A great part of those funds was vested in stock, and arose out of the share of prize money to which it was entitled during war. Now, as there was no prize money coming into its coffers during a time of peace, its funds had become so reduced, that the accountant-general of the hospital had found it necessary to state to government his opinion, that no payments could be lawfully made from it to the out-pensioners, and that the expense of supporting them must thenceforward devolve upon the public. As soon as that claim was made, an act of parliament had been passed to authorize the issue of Exchequer bills to meet it; and about 260,000l. had been so paid. Now, when these three last-mentioned sums, amounting together to 3,381,4561. and all employed for the reduction of the debt incurred, were added to the sum of 17,815,000l. it appeared that the total sum wanted for the services of the year was 21,196,4561.

To make good this amount, Mr. Vansittart proposed the following Ways and Means. In the first place, annual taxes to the amount of 3,000,000l. had been already voted. These taxes last year amounted to 4,000,000l. but they had been reduced this year to 3,000,000l. by the reduction of the annual malt duties, which formed a large constituent part of the annual taxes of last year. Then came 1,500,000l. reserved upon the tea duties, and 200,000l. upon the lottery. The next item was, old stores 151,000l., which last year amounted to 163,400l.; but, being one that arose from the general equipment of our forces, would

necessarily diminish during peace, until it reached the average of consumption. In the last year's budget, we had the advantage of 500,000l. the surplus pecuniary indemnity payable by France; but there was no longer any such sum to transfer this sum to the credit of the country. There was, however, 110,000l. to be repaid by the commissioners for issuing Exchequer bills for public works. These sums, added together, amounted to 4,961,000l. To complete the supply for the service of the year, Mr. Vansittart proposed to contract a sinking fund loan. In the last year the sinking fund loan had been 13,000,000l. in the two preceding years 12,000,000l.; but he now intended to reduce it to 7,500,000l. His reasons for so doing were these. In the first place, his wish was, that the sinking fund for the present year, instead of extending from the 5th of July 1822, to the 5th of July 1823, should only extend to the 5th of April 1823; for, in the next session of parliament, he meant to propose a general revision of the sinking fund. He should not therefore like to tie up the commissioners by a strict appropriation to so late a period as the 5th of July; and for that purpose he limited his sinking fund loan to 7,500,000l. If they supposed four quarters to be taken at the same rate, it would amount to 10,000,000l.; and one reason why he did not wish it to exceed that sum was, that a great reduction of the nominal amount of the sinking fund would take place at the end of the session, in consequence of the appropriation of 2,800,000l. to the payment of the pensions and the half-pay, which it was very evident would have an effect upon the nominal

sinking fund. Of the 7,500,000l. borrowed from the sinking fund, there was taken from the sinking fund of Great Britain, 7,350,000l. and from that of Ireland, 150,000l. The terms upon which this loan had been obtained, were very favourable. For every 100l. sterling, 100l. had been given in the three per cent reduced annuities, and 241. 10s. 7d. in the three per cent consols. Comparing the prices paid in the present year with those of last year, it would be found, that 1301. three per cent stock had been given in 1821, for 100l. sterling, which had been purchased this year by 1241. stock. In one point of view it was not a matter of public importance, whether a loan from the sinking fund was obtained at a lower or a higher rate; but it was of material importance, with a view to the public credit of the country, to know that there was an improvement of 6 per cent.

Mr. Vansittart next stated, that the sum appropriated and applicable to the real purchase of stock between the 5th July 1822, and the 5th July 1823, was 5,433,8551. Last year the sinking fund, it was calculated, would amount to 4,415,333l., including 110,820l. to be paid by the East India Company. Therefore, the sum to be applied to the reduction of debt exceeded by about 900,000l. that reckoned upon as applicable to the same purpose last year, including in both cases repayments to the Bank; and in the present year a reserve for paying the dissentient holders of five per cent stock.

The next item was a sum of 557,000l. from the East India Company. It was well known, that, during the last two years, the company had advanced consider

able claims upon the government, on account of various services performed for the country, and particularly on account of the St. Helena establishment for the detention of Bonaparte. The claim amounted originally, to a sum of 1,900,000l.; which, if interest were granted upon the scale usually allowed, would establish a debt due to the Company of 5,000,000%. But it appeared to the Treasury and its commissioners, that several of the claims of the Company were not justified-that some of them had been previously rejected, and that others were even then under consideration. On the other hand, a large counter-claim of the public was disputed by the company. The only mode of settling such a dispute between two such parties was by a compromise. Hence the discussion of the question assumed the appearance of a negotiation between two independent states. On the one side was the Company, consulting the interest of the proprietors: on the other, the Treasury struggling to prevent any unjust claim from being made upon the public service. The question was therefore submitted to arbitration; and it was thought better by both parties, that a sum should be first fixed on by the arbitrators, and afterwards be submitted to the wisdom of parliament, than that both of them should adhere to their strict rights, on which no tribunal could decide between them. After much investigation, it was thought fair and just to both parties, to allow the Company 1,300,000l. on its claim of 5,000,000l. The next consideration was, to what purpose this sum should be applied? And it appeared to be most just and equitable, that it should be

employed in the reduction of the loan made to the Company by government in 1812. It was afterwards agreed, that the Company, upon the payment of 557,000l. in addition to the 1,300,000l. allowed to be due to them, should be freed from any future call for the repayment of that loan. Of this sum of 557,000l., 27,000l. had been already paid to the government, and had been applied to the repayment of the holders of 5 per cents, and the remaining 530,000l. was at present due from the Company to the government. Now, if to the sums before mentioned, 2,450,000l. were added, which would be received from the commissioners for payments on account of the half pay and pensions, all the Ways and Means for the year were completed, except that portion of it that was connected with the unfunded debt.

In 1821, the Exchequer bills, unfunded,amounted to 29,000,000l. the Irish Treasury billsto1,000,000l., and the bills for public works and churches to 368,330l.,, making a total of 30,368,330l. In the year ending the 5th of January, 1822, the Exchequer bills were 31,566,550l. and Irish Treasury bills 1,105,181., making a total of 32,661,731. Adding to this sum 3,100,000l., which had been voted during the year for the deficiency of the Ways and Means of the last year, and for the payment of the holders of 5 per cents, there was a sum total of about 35,000,000l. The increase of the unfunded debt in the last year was, therefore, nominally about 5,831,670l., but in reality not much more than 1,000,000l.; for part of the above sum was expended in renewing old Exchequer bills, and in paying off holders of the five per cents, which

was equivalent to the extinction of a certain portion of our debt.

The right hon. gentleman next proceeded to show the actual amount of our means to meet the expenditure; assuming that, unless some extraordinary circumstances occurred, the produce of the ensuing year would, at least, equal that of the past. He found, that, for one year, ending the 5th April, 1822, the produce of the Customs of Great Britain was 9,325,000l.; the Customs for Ireland 1,418,000l.; making, together, 10,743,000l. The produce of the Excise of Great Britain for one year, up to the 5th April last, was 26,195,000l. ; that of Ireland 2,111,000l.; making 28,306,000l.; but, from the Excise must be deducted the amount of malt duty repealed, 1,500,000l., and also the loss on the salt duty, calculated at one half year's produce, 650,000l., making, together, 2,150,000l., leaving a nett sum of 26,156,000l. The stamp duty, to the 5th April, amounted to 6,637,000l. The post-office, 1,335,000l. The assessed taxes 7,525,000l. The assessed taxes, for Ireland, 1,300,000l., making 8,835,000l., from which should be deducted 500,000l.; leaving a nett sum of 7,335,000l. ; a further sum of 100,000l. might be expected, when the receiversgeneral should have paid in the balances; but calculating that sum at one-half, the whole sum might be taken at 7,385,000l. The miscellaneous taxes produced for the same period 380,000l. Old stores, 151,000l.; making, together, 53,033,000l., to which should be added 1,220,000l.; being onefourth of the produce of our annual taxes and tea duties; the whole amount would then be 54,253,000l.

Having stated the receipts of the

year at 54,253,000l., he recapitulated the expenditure for the same period. The charge on the unredeemed debt of the country would be this year augmented by the grant of annuities to the amount of 2,800,000l., making a total of 30,911,000l. The interest on Exchequer bills, together with payments for services charged upon the aids of the year, but not specially voted, was about 1,500,000l. For the army 7,705,000l.; extra expense in Ireland, 220,000l.; making a total for the army of 7,925,000l. ; navy, 5,480,000l.; ordnance, 1,200,000l.; miscellaneous, 1,550,000l.; and under that head, extraordinaries in Ireland, 150,000l.; Greenwich Hospital out-pensioners, 310,000l.; adding these several sums to the 30,911,000l., there would appear a clear surplus of 3,130,000l. for the country; add to this the saving on which we would be entitled to reckon on the 5th April, of 700,000l. in the five per cents., and 2,200,000l. in the half-pay and pension arrangement, and it

would be found that he had a surplus of 5,000,000l. at the end of the year for a sinking fund. Mr. Vansittart concluded with indulging in a prospective view of the probable expenditure for the year 1823. Estimating the army at 7,705,000l., provided no extraordinaries were required for Ireland, the navy at 5,500,000l., the ordnance at 1,200,000l., the miscellaneous at 160,000l. (supposing no excess under that head for Ireland), and supposing what he felt himself entitled to assume, that the receipts of the Revenue and Customs next year would equal the amount in the present, he had no doubt that the next year would afford a surplus of 6,142,000l.; so that taking the next year's surplus and the present, without any contingent prospects, the country had every reasonable ground to hope that the two years taken together would furnish a clear surplus of 10,000,000/.

The following is a view of the budget of the year, as compared with that of 1821.