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The whole amount of the debt now it would be rash to decide, and the supexisting would, by the present mode, be position of any particular sum is assumed redeemed about 1845; by the new Plan, for illustration only, but it is by no means about 1837.
essential to the system itself, which will The Sinking Fund will be much greater | be found capable of being adapted to according to the present Plan, than by every variety of circumstances which can that proposed, till about the year 1830, be expected to arise. when the Consolidated Sinking Fund of In the event of peace, the Sinking 1802 will fall in, and an annual sum of Fund would continue to accumulate at twenty-one millions will be at once taken compound interest as at present, unless from it. Their subsequent progress will the inconveniences arising from the too correspond more nearly, as the successive rapid diminution of the rate of interest, extinction of loans will operate on both should induce parliament to interfere by
The new Plan will, however, continue ordering the stock purchased by the Commore equable and uniform in its progress. missioners to be cancelled. This kind of
If the sum necessary to be raised should interruption is not however peculiar to exceed 28,000,0001. the advantages of the the new system ; but must equally take new Plan, in point of taxation, would be place under the present mode of redempsomewhat diminished; but the redemption tion, whenever its progress should be of the existing debt would be accelerated, found to be too rapid. In case the preand the Sinking Fund would increase sent mode of redemption should be admore rapidly; and opposite effects would hered to, such a change, whenever it of course be produced, if the sums bor- might take place, would, however, be ate rowed were diminished, or if they were tended with the disadvantage of appearing obtained at a rate of interest below 5l. per to be a deviation from the established cent. This is shewn by Tables pointing principles of the Sinking Fund, while in out the effects of a succession of loans of the former it would obviously be a conse25,000,0001. and of 12,000,0001, respec- quence flowing from them. In either tively, [See Tables B. 1, 2, 3, and C. 1, case it is highly important that sufficient 2, 3.] which prove that in the latter case security should be preserved for the ul. no taxes would be required, except those timate redemption of the debt within 45 provided in the first year, till the com- years from its creation, according to the plete redemption of the existing debt. provisions of the Act of 1792.
It may however reasonably be hoped, but the principal advantage of the prothat even in the event of a continuance of posed Plan, in time of peace, would be the present rate of expence, the cessation the facility of keeping in reserve the of the imposition of taxes for some years, means of funding a large sum (suppose would have a considerable effect inimprov- 100,000,0001.) as a resource in case of ing the existing revenue, and consequently the renewal of hostilities. in lessening the amount to be borrowed. This fund, which would be formed in a This has been in some degree expe- few years by the redeemed stock standing rienced even in consequence of the par in the names of the Commissioners, would tial relief from additional taxes, which has be continually increasing, unless checked taken place since the year 1806. It in the manner above mentioned ; and in should also be remarked, that such a no case should it be reduced below such a saving of permanent taxes would create a sum as may be thought amply sufficient comparative facility of increasing the war to support the confidence of the country taxes, if such a measure should be thought at home, and to maintain its dignity advisable, as it probably may be in the abroad. It would, indeed, be such a trea. event of an increase of expence or even sure, as no other country has ever posof any considerable duration of its present sessed, and the first example of an imamount. How far this may be expected, mense accumulation of public property, formed without the impoverishment of any had in recommending it; but on the conindividual, or any 'embarrassment of the trary, a very confident persuasion, that the general circulation. For the sake of illus- more fully those circumstances are investrating this part of the subject, a Table is tigated, the more they will be found to annexed, which shews the application of enforce the expediency of such a system. the Plan to alternate periods of war and peace. [See Table D. 1, 2, 3.]
It may be observed, in favour of this The following TABLES, marked A. 1.Plan, that it is less liable than any other A. 2.-A. 3. B. 1.-B. 2.--B, 3. modification of the Sinking Fund, to be C. 1.-C. 2.-C. 3. D. 1.--D. 2. abused as a precedent for encroachment
D. 3, are intended to give a comupon it; not only because it arises out of parative View of The Existing Systhe principles of the Sinking Fund itself, TEM, and The PROPOSED PLAN; but because it turns entirely on the appli so far as relates to the Amount of cation of the stock purchased by the Com Taxes to be imposed in each Year, missioners, which must, in any possible The Amount of the SINKING arrangement of the Sinking Fund, be can Fund in each Year,—and, The succelled, sooner or later ; the only question cessive REDEMPTION of all FUNDED being as to time and mode. .
DEBT-on different Suppositions. In considering this subject, we must not forget that the great and ultimate object. Those parts of them which relate to the of the Sinking Fund is, to relieve the na-proposed Plan, all assume that an annual tion from the burden of taxes which would sum of 867,9631. equal to one per cent. on be entailed upon it by the indefinite ex- the amount of the stock provided for in tension of the public debt. It answers 1802, and on which no Sinking Fund was other collateral purposes of considerable then created, will be added to the Sinking importance; but this is its direct and im- Fund, and provided for by new permamediate object. Now, as it cannot be less nent taxes: and also, that 260,0001. a important to prevent the immediate in-year will be added to the Sinking Fund, crease of taxes, than to provide for their in respect of unprovided Exchequer Bills. future possible reduction, that would seem This latter sum is supposed to be supplied to be the best arrangement of a Sinking by new war taxes, to an equal amount; Fund, which, while it provided for the ul- and these sums together make up the timate discharge of debt within a certain amount of 1,127,9631. for which taxes are moderate period, afforded the earliest stated in the Tables to be provided in the relief to the public, and limited the maxi- first year of the new Plan. mum of total charge within the narrowest The several loans (except in Table C.) compass.
are supposed to be raised at 5 per cent. Such are the leading considerations interest, with a Sinking Fund equal to which have suggested the foregoing Plan, one-third of the interest, being the proand the objects which it has been intended portion applicable, according to the Act to effect. There is, however, no wish to of 1792, to a 3 per cent. stock, except in disguise the weight, which the political those cases, in which, by the proposed circumstances of the present moment have Plan, a larger Sinking Fund is required.
Table, A. 1.
Estimated Annual and Total Amount of New Taxes, to be imposed ac
cording to the Existing System, and according to the Proposed Plan; on the Supposition of Annual Loans of £. 28,000,000 at £.5 per cent. until the Redemption of all Funded Debt created prior to 1813.
*1821) 1,800,000 | 16,733,328 1,987,500 9,086,610 7,646,718 | 52,619,342 1822 1,800,000 18,533,328
9,086,610 9,446,718 62,066,060 1823 1,800,000 20,333,328 624,4311 9,711,041 10,622,287 | 72,688,347 1824 1,800,000 22,133,328 | 1,158,356 10,869,397 111,263,931 83,952,278 1825) 1,800,000 23,933,328 1,979,166 | 12,818,563 11,084,76.5 95,037,013 1826) 1,800,000 25,733,328 1,095,316 13,943,879 11,789,449 106,826,492 18271: 1,800,000 27,533,328 | 618,013 | 14,561,892 12,971,436 119,797,928 1828| 1,800,000 | 29,333,328 1,962,500 | 16,524,392 [12,808,936 132,606,864 1829 1,800,000 | 31,133,328 210,342 | 16,734,734 14,398,594 147,005,458 1830 - - - 31,133,328 | 1,326,662 18,061,396 13,071,992
31,133,328 886,706 18,948,102 12,185,226
* In 1821, the War Taxes pledged for the Loan of 1807 will, according to the Existing System at £.5 per cent. be set at liberty by the Redemption of that Loan, and again become applicable to the Service of the year. The future Annual Loans are therefore reduced to £. 27,000,000 and the Charge thereby occasioned to £.1,800,000; and from the year 1829, it is supposed that the Loans will be charged upon the Funds appropriated to the Consolidated Sinking Fund of 1802, which will fall in in 1830, and the several Loans which will fall in after that year; and therefore no further Taxes will be necessary.
1 Table, A. 2.
Table, A. 3.
Estimated Amount of the SINKING FUND,
at the 1st of August in each Year, according to the Existing System, and according to the Proposed Plan, upon the foregoing Suppositions.
Statement of the Periods of Re
demption of the FUNDED DEBT contracted prior to 1813, according to the Existing System, and according to the Proposed Plan; continuing the foregoing Suppositions.
Existing System. Proposed Plan.*
1821 23,090,971 13,896,609 1822 24,718,019 15,208,314 1823 | 26,426,419 14,498,729 1824 28,220,239 14,409,318 1825 30,103,750 14,876,057 1826 32,081,437 16,227,984
| 34,158,008 | 16,719,465 1828 36,338,408 16,734,351 1829
38,627,828 18,161,693 11830 19,745,200 17,820,636
addition of £. 1,127,963 proposed to be made in the present year. * Throughout this Column, the Sinking Fund is shewn as increased by the
All prior to - 1793 | 1830 | 1813 Loan of ... 1793 ditto 1813
1794 ditto 1814 1795 ditto 1816 1796 ditto
1818 1797 ditto 1822 1798 ditto 1823 1799
ditto 1824 1800 | ditto 1826 1801 ditto 1827 1802 ditto 1829 1803 1832 1829 1804 1834 1830 1805 1834 1831
1806 1835 1832 E SWar Tax Loan | 1821 1833 Supply Loan 1837 1833
1808 1844 1833 1809
1835 1811 1845
1836 1844 1837
1831 21,204,960 | 18,634,662 1832 22,094,571 | 19,027,436 1833 | 23,671,799 | 19,606,337 1834 23,063,828 19,877,542 1835 23,494,319 20,523,121 1836 | 25,141,534 21,300,648 1837 | 26,858,638 21,917,084 1838 28,674,069 1839 30,580,272 1840 32,581,785
1841 34,683,374 1842 36,890,042 1843 37,158,317 1844 36,822,317 1845 | 37,953,346
N.B. Supposing no further Loans to be contracted after the total Re. demption of the Debt existing prior to 1813, and the Redemption of Debt to proceed thenceforward at £.3 per cent. compound interest, the Debt remaining unredeemed in the year 1845, according to the Existing System, would be wholly redeemed in the year 1891.
And the Debt remaining unredeemed in 1837, according to the Proposed Plan, would be wholly redeemed in the year 1870.
+ In 1830, the Sinking Fund, according to the Existing System, is reduced from £.41,031,719, its amount on the 1st August of that year, to £. 19,745,200 in consequence of the Redemption of the Debts consolidated by the Act of 1802.
A reduction of a similar nature, but of smaller amount, takes place on the Redemption of each subsequent Loan, the Period of which may be found in Table, A. 3.
Table, B. 1.
Estimated ANNUAL and Total Amount of New Taxes, to be imposed accord
ing to the Existing System, and according to the Proposed Plan; on the Supposition of Annual Loans of 25 Millions at £.5 per centum, until the Redemption of all Funded Debt created prior to 1813. - N. B. In chis, and the following Tables, it has not been thought necessary to make allowance in the calculations which relate to the Proposed Plan, for the application within the first year of the Per-Centage provided for each Loan; the operation of which has, however, been attended to in Table A. and throughout all the calculations respecting the Existing System.
*1821 1,600,000 | 14,933,328 | 1,766,666 / 7,074,109 7,859,219 51,486,011 1822) 1,600,000 16,533,328
7,074,109 | 9,459,219 60,945,230 1823) 1,600,000 18,133,328 | 1,086,931 8,161,040 9,972,288 | 70,917,518 1824) 1,600,000 19,733,328 858,333 9,019,373 10,713,955 | 81,631,473 1825 1,600,000 21,333,328
9,952,729 11,380,599 93,012,072 1826) 1,600,000 22,933,328 882,816 | 10,835,545 112,097,783 (105,109,855 1827 1,600,000 24,533,328 | 1,750,000 12,585,545 11,947,783 117,057,638 1828 1,600,000 26,133,328 397,179 12,982,724 113,150,604 130,208,242 1829] 1,600,000 27,733,328 | 1,741,666 | 14,724,390 113,008,938 (143,217,180 1830 - · 27,739,328 | - - - 14,724,390 13,008,938
* In 1821, the War Taxes pledged for the Loan of 1807 will, according to the Existing System at £.5 per centum, be set at liberty by the Redemption of that Loan, and again become applicable to the Service of the year. The future annual Loans are therefore reduced to £. 24,000,000 and the Charge thereby occasioned to £.1,600,000; and from the year 1829, it is supposed that the Loans will be charged upon the Funds appropriated to the consolidated Sinking Fund of 1802, which will fall in in 1830, and the several Loans which will fall in after that year; and therefore no further Taxes will be necessary.