revenue for the next four years, of 200,000l. When the debentures to the American loyalists shall be discharged, (which will be in about four years subsequent to the present,) the profits arising from the lottery, which, as I have already stated, are now set against this article of expenditure, will be left free, and will form an addition to the annual surplus. If the addition shall be distributed in the same manner as is now proposed, with respect to the present surplus, and if the tickets should continue to bear their present price, a further annual sum of 150,0007. (after allowing for the repeal of taxes to the same amount) will be appli cable to the reduction of debt. Previous to this period, the 4 per cents may naturally be supposed to have been reduced in the first instance to 3, and ultimately to 3 per cent.; and the saving by this reduction of interest will amount at first to about 160,000l., and when completed, to about 320,000l. By the operation of the present sinking fund, and of these additions to the redemp tion of the 3 per cents at par, it may be expected that 25 millions of 3 per cents will have been paid off in the year 1800, after which the 5 per cents become redeemable; and supposing the 3 per cents to continue at par, a further saving may then in a short time be made, by converting the 5 per cents to 3 per cents, which will amount in the whole to above 360,000l. and which I likewise suppose to be carried to the aid of the present sinking fund. The material question which on these suppositions it is natural to ask, is, When will the sinking fund arise to the amount of 4 millions per annum, which is the limit after which, according to the act of 1786, it is no longer to accumulate, but the interest of the capital which it thenceforth may redeem, is to be left open for the disposition of parliament? It will amount to that sum, on the suppositions which I have stated, in 1808, a period of about fifteen years from the present time.

I am not, indeed, presumptuous enough to suppose, that when I name fifteen years, I am not naming a period in which events may arise, which human foresight cannot reach, and which may baffle all our conjectures. We must not count with certainty on

a continuance of our present prosperity during such an interval; but unquestionably there never was a time in the history of this country, when, from the situation of Europe, we might more reasonably expect fifteen years of peace, than we may at the present moment. But in looking forward to this very period, there arises one of the considerations to which I have referred, and which may lead us still to amend and enforce our system for the reduction of debt.

When the sum of four millions was originally fixed as the limit for the sinking fund, it was not in contemplation to issue more annually from the surplus revenue than one million; consequently the fund would not rise to four millions till a proportion of debt was paid off, the interest of which, together with the annuities which might fall in in the interval, should amount to three millions.

But as, on the present supposition, additional sums beyond the original million are to be annually issued from the revenue, and applied to the aid of the sinking fund, the consequence would be that, if that fund (with these additions carried to it) were still to be limited to four millions, it would reach that amount, and cease to accumulate, before as great a portion of the debt is reduced as was originally in contemplation. This effect would be more considerable, if, instead of an annual addition of 350,000l. in the whole, which is the amount on which I have calculated, the further increase of the revenue should admit (as it probably may) of the application of a larger surplus: and in either of these cases, although the ultimate amount of the sinking fund would be equal to what was originally intended, and it would reach that point sooner, yet it would bear a less proportion to the capital of the debt which it would afterwards have to discharge, than it would have done according to the original plan. In order to avoid this consequence, which would, as far as it went, be a relaxation in our system, I should propose, that whatever may be the additional annual sums applied to the reduction of debt, the fund should not cease to accumulate till the interest of the

capital discharged, and the amount of expired annuities should, together with the annual million only, and exclusive of any additional sums, amount to four millions.

But I confess, that, in the present situation of the country, I am inclined to think that we ought not to stop here. What we did in 1786 was, perhaps, as much as could be attempted under the circumstances of that time. At present we ought not to continue our views to the operation of the sinking fund, compared with the debt now existing. If our system stops there, the country will remain exposed to the possibility of being again involved in those embarrassments, which we have, in our own time, severely experienced, and which, apparently, brought us almost to the verge of bankruptcy and ruin. We ought there. fore to look forward, in order to provide a permanent remedy against the danger of fresh accumulation of debt in consequence of future contingencies. And this, as I shall explain more particularly on some future occasion, may, I am persuaded, be effected without the danger of any inconvenience or embarrassment, which can counterbalance the magnitude of the object.

The measure which I have in view, is to enact, that whenever any loan should take place in future, unless raised by annuities which would terminate in a moderate number of years, there should of course be issued out of the consolidated fund, to the commissioners for the reduction of the national debt, an additional annual sum, sufficient to discharge the capital of such loan, in the same period as the sinking fund, after reaching its largest amount, will discharge what would then remain of the present debt. The committee will recollect, that the idea which I am now stating is not new to my mind, though I have never before proposed it as a permanent regulation. Two years from this time, when I had the mortification of thinking that the country might be engaged in an expensive war in consequence of our discussions with the court of Spain, I gave notice that I should propose to follow, very nearly, this system, with respect

ever, enlarge further on this subject at present. I have already stated enough to shew that the system which I wish to propose is calculated to provide effectually for the discharge of the public debt, at the same time that it diminishes the burdens of the people; and that, in consulting our own immediate ease, we cannot be accused of sacrificing the permanent interests of posterity.

Supposing, therefore, that the distribution which I have suggested should appear to the House fit to be adopted, and that taxes to the amount of 200,000l. per annum should now be taken off, I will beg leave next, for the purpose of bringing the whole subject under consideration, to state the particular taxes, which, if nothing preferable is suggested by others, I should propose to repeal. And, in making this selection, there are two objects which I wish principally to keep in view. The first, to which it is very material to attend, is, that the actual relief felt by the public should be proportioned to the amount of revenue which is relinquished. Under these descriptions those taxes seem most clearly to be included, which are raised by the mode of assessment, because as they are paid directly out of the pocket of the individual, and do not pass through circuitous channels like taxes upon the articles of consumption, where the tax is often blended with the price of the commodity, there can be little doubt that the relief intended to be given will in these instances be effectual to its fullest extent. The other object which I naturally have in view, is, that the relief intended should apply peculiarly to that class, to whom, on every account, it ought first to be extended, I mean the most necessitous, and the most industrious part of the community.

Combining these objects, the first article to which I have directed my attention is, the temporary duty on malt, imposed in the last session.

The three next taxes which I shall state are permanent taxes, which fall under the description of being raised by assessment, and which have also the further advantage of extending relief widely, and where we must most wish it to be extended. — The

first is the tax upon female servants, which is certainly paid by the poorer class of house-keepers, and which is charged upon about 90,000 different families the amount is 31,000l. The next is, the tax upon carts and waggons, which applies to the whole of the yeomanry of the country, to all those who are occupied in agriculture, who pay in this shape a sum not indeed very considerable, but which perhaps is felt, from the inconvenience and trouble which it occasions, more than from the burden itself. About 90,000 persons are affected by this tax also, of which the amount is nearly 30,000l. The third tax applies to the poorest of all the orders of the community, I mean the tax on houses having less than seven windows, which are exempted from the payment of any other tax, but that of three shillings. The amount of the sum is small, but to those who are the objects of it, its repeal will be a substantial relief and comfort, and it will at least be a pledge and earnest of the attention of parliament to their interests. It extends, I believe, to between three and four hundred thousand houses, and its amount is about 56,000l.

The next and last which I have to mention is the last additional tax of a halfpenny per pound on the article of candles, which presses more, perhaps, than any other tax on consumption, upon the class of whom I have been speaking; and if this tax is repealed from a given day, and the duty upon the stock in hand is allowed to all the manufacturers and dealers in that article, I believe there can be no question that the reduction of the price will be in proportion to the duty repealed: its amount is about 106,000l.; and the total of all these taxes is 223,000!.

I have now explained the several measures which I shall this day propose to the committee; but I should think that I left the subject imperfectly discussed, if I did not proceed to lay before you such considerations as may enable you to judge how far there is a reasonable prospect that the fortunate situation which I have described may be permanent. And in order to do this, I wish again to call your attention to the progressive in