sense, and the industry of the country, to put these things out of all doubt. It was more than could be thought possible, that, within a single year, such a success would happen. But it is not confined to one year; ever since the happy æra of the restoration of the peace, this has been more or less the case. The increase was slow at first, but constant; and the happy progress of last year shews, from pleasing experience, that we have no reason to fear its being stationary, or becoming retrograde. A great part of this flourishing appearance which trade has of late put on, and the great influx into the exchequer, have been owing to the regulations that have been taken to crush clandestine trade. This was the more to be believed, as the increase of revenue chiefly appeared from the customs; and this gave room to hope that further great and essential improvements of the revenue might arise from wholesome regulations with regard to articles of illicit traffic. Driven from its strong hold of tea, it lurks in other petty trenches, from whence it may be effectually chased. Every thing that is done to effect this, is introducing a permanent source of revenue by making trade return into a regular channel. What has been done in this way cannot as yet have had its full operation, because, as great capitals were employed in this clandestine business, the occupation will subsist for a while, even although it is a losing trade. The measures taken two years ago, under the articles of tobacco and spirits, have caused the smuggling of these to subside to a great degree, and have much increased our revenue. In the article of salt the frauds are very considerable, and ought immediately to be redressed. But, with regard to wines, the frauds arise to so great, to so enormous a pitch, that, if we will take the effectual measures to repress them, all the deficiencies will be made up in what is stated as the annual progress of the revenue. If we have the means of doing this in our power, and do not make use of them, we must certainly suffer just blame. I intend, for my part, to bring forward very soon a plan for that purpose, which I mean to submit to the consideration of the House, and flatter myself, that, if it meets with their approbation, it will occasion a very great

increase to the revenue of the kingdom. After having in this manner represented every thing in the fairest light I am able, to enable you to form a just view of the whole of the real and probable sources of our national income, I shall now proceed upon the idea that this is a true statement of our revenue, which has been laid upon your table by the committee, and that we may expect (with as much certainty as can attend any thing of this kind) that we shall enjoy an increasing revenue of 15,397,000l. per annum.

The next subject of our discussion is, what may be the annual expenditure of the nation. This the committee have also stated, and it amounts to 14,478,000l. There is a great part of the particular items, of which this sum is` made up, that the committee have omitted to mention, because the sums charged have been previously stated by act of parliament. This they considered as permanent expenses, and therefore distinguish them from what is fluctuating. In the former description they considered the interest of the national debt, which is 9,275,769/. and with the exchequer bills, make a sum of 9,532,000l.: this part contains also the civil list, 900,000/.; the charges on the aggregate fund, 64,000l.; and the appropriated duties, 66,500l.: the whole of this division is 10,554,000l. The other class of expenses include the different establishments for the defence of the nation; as the army, the navy, the ordnance, and the militia. There may be extraordinary charges for these purposes; but that the committee had not any thing to do with in the present estimate; they have stated the expense only that must be occasioned by a peace establishment, and this they have done on a very enlarged and liberal footing.

They have allowed for the navy, during peace, 18,000 men, which is more than ever had been kept up during any peace; and they allowed for this 1,800,000l. It must be observed that the committee did not go to state what ought to be the expense of our navy, but only what, after the deduction of all our expenses, would remain as a surplus; and therefore their business is to state every thing on the largest probable footing. They have

taken the army upon the same mode of reasoning; and they allow for the charge of it a sum of 1,600,000l., much greater than was in the peace establishment before the last war, when we had so numerous, but distant possessions to defend; and it is extremely probable that this may be reduced, in a short time, considerably under the sum stated in the report. The ordnance, also, is stated largely; this, however, we shall be under the ne cessity of keeping up; it was found that we were very wanting in this respect in the beginning of the last war; and it would be very hazardous to allow ourselves to run a similar risk in any other.

The miscellaneous services are taken upon an average of some years back: but I think it is very probable that they too have been stated higher than they will be found to be: these arose chiefly from addresses of this House to the king, for particular grants, and also from the establishments of our colonies abroad, and from bills of exchange drawn by their governors upon the treasury; these services were stated at 74,000l. Deducting the whole of the expenditure from the annual income, there remained a surplus of 900,000l.

This, then, is the sum which remains to be applied to the purpose of decreasing the annual debt: but, as the fund for this purpose ought to be a million annually, I shall move, in this committee, such taxes as will produce the sum of 100,0007. And I am happy to say, that this may be done without laying fresh burthens upon the people. I shall move that an additional duty be laid upon spirits; they were formerly charged in what is called the wash, with seven-pence per gallon, that was afterwards decreased to five-pence; I shall now raise it to six-pence per gallon, which will produce about 70,000l., without being any encouragement to smuggling. Another I mean to lay is only a modification of a tax; a duty upon the importation of two species of timber, deals and battens: I will rate this at 30,000l. I shall lay another upon an article of mere luxury; upon perfumery and hair powder; these I will rate at 15,000, or 20,000%.

14

So that, altogether, the sum wanted to complete the million will

be made up.

After I have now stated these things to you, I must observe that, although this is stated to be the annual expenditure, some time must intervene before the expenditure can be reduced to this point. It must be attended to, that we are only just emerged from the most ruinous and expensive war in which this country was ever engaged. Many of the heavy burthens we incurred during that war, had not ended with the conclusion of it, but still continued, and must be expected some time to continue to hang upon us. Under the head of the navy, many ships that had been laid upon the stocks were to be finished. They had been built too far to allow them to go back, and to be lost to the public; and they were, besides, necessary to increase our naval strength to an equality with our powerful neighbours. This was so considerable, that, although the committee had stated the peace establishment of the navy at 1,800,000l., yet the expense attending this present year was 600,000l. above it, though it may not, perhaps, be more than 560,000l. In the army also, the exceedings were much above the common run of the expense on that establishment; and this amounted to nearly 300,000l. This is chiefly expended in a way where justice and humanity forbid economy to the reduced officers on half pay, and to the widows of officers; a part of the navy extraordinary is taken up in the same way. These two sums would go almost to annihilate the surplus if it was to be applied to these purposes within the year. But in truth and fact they are not annual charges, they are only the remaining sums of the expenses of last war, and must cease altogether in a few years. It would, therefore, be unfair and unwise to charge them as annual expenditures. In four years the great burthen of them, that of the ship-building, will cease: nor can this be effected sooner. I conceive, therefore, that you' must look to a future average to come at your expense. It appears to me that this may be done with great safety; and I have not a doubt but that resources are to be found that will justify this mode of proceeding, and be sufficient to keep every thing

And if we judge in this

well without burthening the nation. manner, there can be no doubt that the expectations raised by the public will be amply satisfied.

Now, therefore, I wish to call the attention of the committee to this object. I am clear that we immediately appropriate this million to the payment of the debt, even although the time when we shall have this surplus free from all other expenses, cannot be exactly ascertained. I myself am persuaded, that, as I have already intimated, we have certain extraordinary resources to which we may apply to liquidate this sum, without the addition of new taxes. Let us then examine what sums they are for which we have to provide the means of payment.-This extraordinary expense chiefly arises from the navy: and it was occasioned by the very large contracts into which we had entered for the building of ships. On this account 2,400,000l. had been called for this year, as the extraordinary expense of the navy; but this would not continue to be required after the ships now building were completed. This would decrease each year, and would be, in every probability, reduced to a standing sum for a peace establishment in the year 1790. This expense, and the very liberal establishment of 1,800,000l. would enable us to possess a marine the most flourishing this country ever beheld. As the estimate for the navy stands this present year, it is 600,000l. above what is stated at the settled peace expense in the year 1790. But it is to be noticed, that, after two new ships have been completed, which will be in the course of this year, this extra sum will be reduced to 400,000l.; this, in four years, amounts to the sum of 1,600,000/., and, with the additional expense of this year, to 1,800,000/.

With regard to the army, the expenses also had been very great, but were of a nature which also tended to diminish, in time, but which it was impossible to restrict. What this chiefly arose from was, as I mentioned before, from pensions to officers' widows, and to officers upon half pay; and this sum amounted to about 260,000l. Under this head of expense comes also that occasioned by bills of exchange from our colonies abroad;