V. A fifth branch of the perpetual revenue consists in the stamp duties, which are a tax imposed upon all parchment and paper whereon any legal proceedings, or private instruments of almost any nature whatsoever, are written; and also upon licenses for retailing wines, letting horses to hire, and for certain other purposes; and upon all almanacks, newspapers, advertisements, cards, dice, and pamphlets containing less than six sheets of paper. These imposts are very various, according to the nature of the thing stamped, rising gradually from a penny to ten pounds. This is also a tax, which, though in some instances it may be heavily felt, by greatly increasing the expense of all mercantile as well as legal proceedings, yet if moderately imposed, is of service to the public in general by authenticating *instruments, and rendering it much [*324] more difficult than formerly to forge deeds of any standing; since, as the officers of this branch of the revenue vary their stamps frequently, by marks perceptible to none but themselves, a man that would forge a deed of King William's time, must know and be able to counterfeit the stamp of that date also. In France and some other countries the duty is laid on the contract itself, not on the instrument in which it is contained; (as, with us too, besides the stamp on the indentures, a tax is laid by statute 8 Ann. c. 9, of 6d. in the pound, upon every apprentice-fee, if it be 50. or under; and 18. in the pound, if it be a greater sum;) but this tends to draw the subject into a thousand nice disquisitions and disputes concerning the nature of his contract, and whether taxable or not; in which the farmers of the revenue are sure to have the advantage.(e) Our general method answers the purposes of the state as well, and consults the ease of the subject much better. The first institution of the stamp duties was by statutes 5 and 6 W. and M. c. 21, and they have since in many instances been increased to ten times their original amount.

VI. A sixth branch is the duty upon houses and windows. As early as the conquest, mention is made in domesday book of fumage or fuage, vulgarly called smoke farthings; which were paid by custom to the king for every chimney in the house. And we read that Edward the Black Prince (soon after his successes in France) in imitation of the English custom, imposed a tax of a florin upon every hearth in his French dominions. (f) But the first parliamentary establishment of it in England was by statute 13 and 14 Car. ÍI, c. 10, whereby an hereditary revenue of 28. for every hearth, in all houses paying to church and poor, was granted to the king forever. And, by subsequent statutes for the more regular assessment of this tax, the constable and two other substantial inhabitants of the parish, to be appointed yearly, (or the surveyor, appointed by the crown, together with such constable or other public officer,) were once in [*325] every year empowered to view the inside of every house in the parish. But, upon the revolution, by statute 1 W. and M. st. 1, c. 10, hearthmoney was declared to be "not only a great oppression to the poorer sort, but a badge of slavery upon the whole people, exposing every man's house to be entered into, and searched at pleasure, by persons unknown to him; and therefore, to erect a lasting monument of their majesties' goodness in every house in the kingdom, the duty of hearth-money was taken away and abolished." This monument of goodness remains among us to this day: but the prospect of it was somewhat darkened, when in six years afterwards, by statute 7 Wm. III, c. 18, a tax was laid upon all houses (except cottages) of 28. now advanced to 3s. per annum, and a tax also upon all windows, if they exceeded nine, in such house. Which rates have been from time to time, (g) varied, being now extended to all windows exceeding six: and power is given to surveyors, appointed by the (e) Sp. of L. b. xiii. c. 9. (f) Mod. Un. Hist. xxviii. 463. Spelin. Gloss. tit. Fuage. (g) Stat. 20 Geo. II, c. 3. 31 Geo. II c. 22. 2 Geo. III, c. 8. 6 Geo. III, c. 38.

hope of those who favored this reduction was, that the increase in correspondence in consequence would be so great, that the government would actually be gainer thereby; and this hope has been fully justified by the result. Mr. Rowland Hill was the person principally entitled to the credit of this reform. The franking privilege was at the same time abolished.

crown, to inspect the outside of houses, and also to pass through any house two days in the year, into any court or yard, to inspect the windows there. A new duty from 6d. to 18. in the pound, was also imposed by statutes 18 Geo. III, c. 26, and 19 Geo. III, c. 59, on every dwelling-house inhabited, together with the offices and gardens therewith occupied: which duty as well as the former, is under the direction of the commissioners of the land-tax.

VII. The seventh branch of the extraordinary perpetual revenue is a duty of 21s. per annum for every male servant retained or employed in the several capacities specifically mentioned in the act of parliament, and which almost amount to an universality, except such as are employed in husbandry, trade or manufactures. This was imposed by statute 17 Geo. III, c. 39, amended by 19 Geo. III, c. 59, and is under the management of the commissioners of the land and window tax.

VIII. An eighth branch is the duty arising from licenses to hackney coaches and chairs in London, and the parts adjacent. In 1654 two hundred hackney coaches were allowed within London, Westminster, and six miles round, under the direction of the court of aldermen. (h) By statute 13 and 14 Car. II, c. 2, four hundred were licensed; and the money arising thereby was applied to repairing the streets. (i) This number was increased to seven hundred by statute 5 W. and M. c. 22, and the duties vested in the crown: and by the statute 9 Ann. c. 23, and other subsequent statutes for their government (j) there are now a thousand coaches and four hundred chairs. This revenue is governed by commissioners of its own, and *is, in truth, a benefit to the subject; as [*326] the expense of it is felt by no individual, and its necessary regulations have established a competent jurisdiction whereby a very refractory race of men may be kept in some tolerable order.

IX. The ninth and last branch of the king's extraordinary perpetual revenue is the duty upon offices and pensions; consisting in an annual payment of 18. in the pound (over and above all other duties) (k) out of all salaries, fees, and perquisites, of offices and pensions payable by the crown, exceeding the value of 100l. per annum. This highly popular taxation was imposed by statute 31 Geo. II, c. 22, and is under the direction of the commissioners of the land-tax.

The clear net produce of these several branches of the revenue, after all charges of collecting and management paid, amounts at present annually to about seven millions and three quarters sterling; besides more than two millions and a quarter raised by the land and malt tax. How these immense sums are appropriated is next to be considered. And this is, first and principally, to the payment of the interest of the national debt.

In order to take a clear and comprehensive view of the nature of this national debt, it must first be premised, that after the revolution, when our new connexions with Europe introduced a new system of foreign politics, the expenses of the nation, not only in settling the new establishment, but in maintaining long wars, as principals, on the continent, for the security of the Dutch barrier, reducing the French monarchy, settling the Spanish succession, supporting the house of Austria, maintaining the liberties of the Germanic body, and other purposes, increased to an unusual degree: insomuch that it was not thought advisable to raise all the expenses of any one year by taxes to be levied within that year, lest the unaccustomed weights of them should create murmurs among the people. It was therefore the policy of the times to anticipate the revenues of their posterity, by borrowing immense sums for the current service of the state, and to lay no more taxes upon the subject than would suffice to pay the annual

(j) 10 Ann. c. 19, § 158. 12 Geo. I, c. 15. 7 Geo. III, c. 44. 10 Geo. III, c. 44. 11 Geo. III, c. 24, 28. 12 Geo. III, c..49.

(k) Previous to this, a deduction of 6d. in the pound was charged on all pensions and annuities, and all salaries, fees, and wages of all offices of profit granted by or derived from the crown; in order to pay the interest at the rate of three per cent. on one million, which was raised for discharging the debts on the civil list, by statutes 7 Geo. I, st. 1, c. 27. 11 Geo. I, c. 17, and 12 Geo. I, c. 2. This million, being charged on this particular fund is not considered as any part of the national debt,

interest of the sums so borrowed: by this means converting *the prin[*327] cipal debts into a new species of property, transferable from one man to another at any time and in any quantity. A system which seems to have had its original in the state of Florence, A. D. 1344: which government then owed about 60,000l. sterling; and being unable to pay it, formed the principal into an aggregate sum, called metaphorically a mount or bank, the shares whereof were transferable like our stocks, with interest at five per cent., the prices varying according to the exigencies of the state. (1) The policy of the English parliament laid the foundation of what is called the national debt: for a few long annuities created in the reign of Charles II, will hardly deserve that name. And the example then set has been so closely followed during the long wars in the reign of Queen Anne, and since, that the capital of the national debt (funded and unfunded) amounted, at the close of the session in June, 1777, to about an hundred and thirty-six millions: (30) to pay the interest of which together with certain annuities for lives and years, and the charges of management, amounting annually to upwards of four millions and three-quarters, the extraordinary revenues just now enumerated (excepting only the land-tax and annual malttax,) are in the first place mortgaged, and made perpetual by parliament. Perpetual, I say; but still redeemable by the same authority that imposed them: which, if it at any time can pay off the capital, will abolish those taxes which are raised to discharge the interest.

By this means the quantity of property in the kingdom is greatly increased in idea, compared with former times; yet, if we coolly consider it, not at all increased in reality. We may boast of large fortunes, and quantities of money in the funds. But where does this money exist? It exists only in name, in paper, in public faith, in parliamentary security; and that is undoubtedly sufficient for the creditors of the public to rely on. But then what is the pledge which the public faith has pawned for the security of these debts? The land, the trade, and the personal industry of the subject; from which the money must arise that supplies the several taxes. In these, therefore, and these only, the property of the public *creditors does really and intrinsically exist; [*328 ] and of course the land, the trade, and the personal industry of individuals, are diminished in their true value just so much as they are pledged to answer. If A.'s income amounts to 100l. per annum; and he is so far indebted to B. that he pays him 50l. per annum for his interest; one-half the value of A.'s property is transferred to B., the creditor. The creditor's property exists in the demand which he has upon the debtor, and no where else; and the debtor is only a trustee to his creditor for one-half of the value of his income. In short, the property of a creditor of the public consists in a certain portion of the national taxes: by how much therefore he is the richer, by so much the nation, which pays these taxes, is the poorer.

The only advantage that can result to the nation from the public debts is the increase of circulation, by multiplying the cash of the kingdom, and creating a new species of currency, assignable at any time and in any quantity; always therefore ready to be employed in any beneficial undertaking, by means of this its transferable quality, and yet producing some profit even when it lies idle and unemployed. A certain proportion of debt seems therefore to be highly useful to a trading people; but what that proportion is, it is not for me to determine. Thus much is indisputably certain, that the present magnitude of our national (1) Pro tempore, pro spe, pro commodo, minuitur corum pretium atque augescit. Aretin. See Mod. Un Hist. xxxvi. 116.

(30) [The national debt in 1755, previous to the French war, was 72,289,000l.; interest, 2,654,0001.

In January, 1776, before the American war, it was 123,964,0007.; interest, 4,411,000.

In 1786, previous to which the whole debt of the last war was not funded, it was 239,154,000l. : interest, 9,275,0001. Exclusive of a capital of 1,991,000l., granted by parliament to the American loyalists, as a compensation for their loss of property. Brief. Exam. 10.] The funded national debt of Great Britain on March 31, 1869, was 741,190,3281.

incumbrances very far exceeds all calculations of commercial benefit, and is productive of the greatest inconveniences. For, first, the enormous taxes, that are raised upon the necessaries of life for the payment of the interest of this debt, are a hurt both to trade and manufactures, by raising the price as well of the artificer's subsistence as of the raw material, and of course in a much greater proportion, the price of the commodity itself. Nay, the very increase of paper circulation itself, when extended beyond what is requisite for commerce or foreign exchange, has a natural tendency to increase the price of provisions as well as of all other merchandize. For, as its effect is to multiply the cash of the kingdom, and this to such an extent that much must remain unemployed, that cash (which is the *universal measure of the respective values of all other commodities) must necessarily sink in its own value, (m) and every thing [ *329 ] grow comparatively dearer. Secondly, if part of this debt be owing to foreigners, either they draw out of the kingdom annually a considerable quantity of specie for the interest, or else it is made an argument to grant them unreasonable privileges, in order to induce them to reside here. Thirdly, if the whole be owing to subjects only, it is then charging the active and industrious subject, who pays his share of the taxes, to maintain the indolent and idle creditor who receives them. Lastly, and principally, it weakens the internal strength of a state, by anticipating those resources which should be reserved to defend it in case of necessity. The interest we now pay for our debts would be nearly sufficient to maintain any war that any national motives could require. And if our ancestors in King William's time had annually paid, so long as their exigencies lasted, even a less sum than we now annually raise upon their accounts, they would in the time of war have borne no greater burdens than they have bequeathed to and settled upon their posterity in time of peace, and might have been eased the instant the exigence was over.

The respective produces of the several taxes before mentioned were originally separate and distinct funds; being securities for the sums advanced on each several tax, and for them only. But at last it became necessary, in order to avoid confusion, as they multiplied yearly, to reduce the number of these separate funds, by uniting and blending them together; superadding the faith of parliament for the general security of the whole. So that there are now only three capital funds of any account, the aggregate fund, and the general fund, so called from such union and addition; and the south sea fund, being the produce of the taxes appropriated to pay the interest of such part of the national debt as was advanced by that company and its annuitants. Whereby the separate funds, which were thus united, are become mutual securities for each other; and the whole produce of them, thus aggregated, liable to pay such interest or annuities as were formerly charged upon each distinct fund; the faith of the legislature being moreover engaged to supply casual deficiencies. (31)

[*330 ] The customs, excises, and other taxes, which are to support these funds, depending upon contingencies, upon exports, imports, and consumptions, must necessarily be of a very uncertain amount; but though some of them have proved unproductive, and others deficient, the sum total hath always been considerably more than sufficient to answer the charge upon them. The surpluses therefore of the three great national funds. the aggregate, general, and south sea funds, over and above the interest and annuities charged upon them, are directed, by statute 3 Geo. I, c. 7, to be carried together, and to attend the disposition of parliament; and are usually denominated the sinking fund, because originally destined to sink and lower the national debt. To this have been since added many other entire duties, granted in subsequent years; and the annual

(m) See page 276.

(31) The gross revenue of Great Britain for the year ending March 31, 1869, was 72,680,1977. of which 22,422,472 was from customs, 41,827,604 from excise, stamp, income and other internal taxes, 4,553,580 from the post-office, 446,174 from crown lands, and 3,555,992 from miscellaneous

Sources.

interest of the sums borrowed on their respective credits is charged on and payable out of the produce of the sinking fund. However, the net surpluses and savings, after all deductions paid, amount annually to a very considerable sum. For as the interest on the national debt has been at several times reduced, (by the consent of the proprietors, who had their option either to lower their interest or be paid their principal,) the savings from the appropriated revenues came at length to be extremely large. This sinking fund is the last resort of the nation; its only domestic resource on which must chiefly depend all the hopes we can entertain of ever discharging or moderating our incumbrance. And therefore the prudent and steady application of the large sums now arising from this fund, is a point of the utmost importance, and well worthy the serious attention of parliament; which was thereby enabled, in the year 1765, to reduce above two millions sterling of the public debt; and several additional millions in several succeeding years.

But, before any part of the aggregate fund (the surpluses whereof are one of the chief ingredients that form the sinking *fund) can be applied to [*331] diminish the principal of the public debt, it stands mortgaged by parliament to raise an annual sum for the maintenance of the king's household and the civil list. For this purpose, in the late reigns, the produce of certain branches of the excise and customs, the post-office, the duty on wine licenses, the revenues of the remaining crown lands, the profits arising from courts of justice, (which articles include all the hereditary revenues of the crown,) and also a clear annuity of 120,000l. in money, were settled on the king for life, for the support of his majesty's household, and the honour and dignity of the crown. And, as the amount of these several branches was uncertain, (though in the last reign they were computed to have sometimes raised almost a million,) if they did not arise annually to 800,000l. the parliament engaged to make up the deficiency. But his present majesty having, soon after his accession, spontaneously signified his consent that his own hereditary revenues might be so disposed of as might best conduce to the utility and satisfaction of the public; and, having graciously accepted the limited sum of 800,000l. per annum for the support of his civil list, the said hereditary and other revenues were carried into and made a part of the aggregate fund, and the aggregate fund was charged, (n) with the payment of the whole annuity to the crown of 800,000l., which, being found insufficient, was increased in 1777 to 900,000l. per annum. Hereby the revenues themselves, being put under the same care and management as the other branches of the public patrimony, produced more, and are better collected, than heretofore; and the public is still a gainer of near 100,000l. per annum by this disinterested conduct of his majesty. The civil list, thus liquidated, together with the four millions and three-quarters interest of the national debt, and more than two millions produced from the sinking fund, make up the seven millions and three-quarters per annum, net money, which were before stated to be the annual produce of our perpetual taxes; besides the immense, though uncertain, sums arising from the annual taxes on land and malt, but which at [ *332 ] an average *may be calculated at more than two millions and a quarter; and, added to the preceding sum, make the clear produce of the taxes (exclusive of the charge of collecting) which are raised yearly on the people of this country, amount to about ten millions sterling.

The expenses defrayed by the civil list are those that in any shape relate to civil government; as, the expenses of the royal household; the revenues allotted to the judges, previous to the year 1758; all salaries to officers of state, and every of the king's servants; the appointments to foreign ambassadors; the maintenance of the queen and royal family; the king's private expenses, or privy purse; and other very numerous outgoings, as secret service money, pensions, and other bounties; which sometimes have so far exceeded the revenues appointed for that purpose, that application has been made to parliament to discharge the debts contracted on the civil list; as particularly in 1724, when

(n) Stat. 1 Geo. III, c. 1.