PART III.

SECT. I.
Abstract of the Exports from and Imports to Great-Britain from 1697 to 1773, with Remarks.

Imports.Exports.Excess of Exports.
Annual Medium£.£.£.
for Four Years ended at 17004.956,9756.034,7241.077,749or 10/56 of the exports.
For Five Years ended at 17105.321,7176.713,2461.391,529or 10/48 of the exports.
at 17155.304,3437.401,9462.097,603or 10/35 of the exports.
at 17256.628,2799.663,5273.035,248or 10/32 of the exports.
at 17357.470,45411.855,2264.384,772or 10/27 of the exports.
at 17457.363,07911.922,9824.559,903or 10/26 of the exports.
at 17507.429,73912.877,1295.447,390or 10/24 of the exports.
at 17558.264,83413.406,5305.141,696or 10/26 of the exports.
at 17608.877,14414.253,3775.376,233or 10/26 of the exports.
For Four Years ended at 176410.110,87015.793,1585.682,228or 10/28 of the exports.
For Nine Years ended at 177311.996,76914.814,0742.817,305or 10/53 of the exports.

This Abstract has been formed from the accounts delivered annually to the House of Commons, and lately published by Sir Charles Whitworth.

In order to draw just inferences from it, the following particulars should be remembered.—First. The Exports in the Custom-House entries are, for reasons well-known, too high. This excess has, by some of the best judges, been reckoned at a million per ann.—Secondly. The Imports are too low, no smuggled commodities being included in them. This deficiency has been estimated at another million per ann. But, in order to be sure of keeping within bounds, I will take both at a million and a half per ann.—Thirdly. The interest of the national debt paid to foreigners; the money spent in foreign countries by English travellers; the bullion consumed in manufactures; and the wear of the current coin, cannot, perhaps, amount to much less than two millions per ann. I will, however, take them at no more than the annual sum which has been commonly supposed to be due to foreigners from our funds; or, a million and a half.—In order, therefore, to find the Grand Balance of Payment between Britain and the rest of the world since the last war, all these sums (making up Three Millions) must be deducted from the excess of the exports.—But, in order to find the same balance before the end of the last war, less must be deducted, in proportion as the national debt and the foreign trade were then less than they are now.

If the foregoing Abstract is examined with a due regard to this rule, it will be found that, from[114] 1710 to 1764, the Balance of Payment must have been in favour of Britain; and that consequently, there must have been, during that period, an influx of money into the kingdom.—It was this, together with the increase of our paper, that produced the rapid fall of interest which began a few years before the Accession. And it was this also that enabled us to bear the great expence of the two last wars, and the loss of those enormous sums which were sent out of the kingdom to pay foreign subsidies, and to support armies on the continent.

Before 1710 it appears to be doubtful, whether the excess of the exports was such as brought any money into the kingdom; but it seems certain, that it could not have been such as in any degree compensated that drain of the public cash, which was occasioned by the continental wars of King William and Queen Ann. In consequence of this, the quantity of specie in the kingdom must have been greatly diminished; and Dr. Davenant computes that in 1711 it was nine millions less than at the Revolution. Hence proceeded the high rate of interest; the unproductiveness of the taxes; and the difficulties which government met with in raising money during those two wars: And there is reason to believe, these difficulties would have been insurmountable, had not a substitute for specie been provided by the establishment of the Bank.

In the interval of peace between the two last wars, or from 1748 to 1755, the balance in favour of Britain was at the highest; and this contributed to raise the stocks[115] to such a price, as enabled government to reduce the interest of the public debts from 4 to 3 per cent.

But the observation I here intended principally to make is, that the balance, since the year 1764, appears, from the preceding abstract, to have been against Britain; and that this accounts for the high price of bullion, the scarcity of specie, and the distress of the Bank from that year to 1773.

It deserves farther to be observed that, while the exports were decreasing from 1764 to 1773, the Imports appear to have increased faster than ever: And the fact is, that since 1760, a greater addition has been made to them, than had been made during the whole time from the Accession to that year.—This is a striking proof that luxury has been for some years increasing with rapidity among us; and it is worth adding, that the productiveness of the taxes has kept pace, as might have been expected, with this increase of luxury, both the Customs and Excises having brought in lately, near 250,000l. per ann. each, more than they did twelve years ago.—It should be attended to, that this improvement of the revenue must be the effect solely of an increased consumption occasioned by luxury; the taxes, ever since the end of the last war, having been nearly the same.

The exports from 1710 to 1764 went on increasing constantly. I have observed, that from 1764 to 1773 they have decreased. One reason of this has been, the decline of the Portugal trade; the exports to that country having fallen, since 1760, from 1.200,000l. per ann. to 600,000l. per ann.—Another reason has been the check which a wretched policy has been giving, ever since 1763, to our trade with the Colonies. This trade had for many years contributed more than any other trade towards raising our exports; and even in the period between 1763 and 1774, notwithstanding the checks it received, it went on increasing, and produced a balance in our favour of a million and a half per ann. But since 1774 it has been entirely lost. Before this loss, the balance of payment between us and the rest of the world was, according to the account I have given, against us. Undoubtedly then, it was a loss we could by no means have sustained, had it not been for the seasonable interposition of some very particular causes. Time will shew whether these causes are of a permanent nature, or temporary and accidental.

SECT. II.
Historical Deduction and Analysis of the Public Debts.

State and Amount of the National Debt, at Midsummer, 1775, with the Charges of Management.

Capitals and Annuities transferable at the Bank of England.

Principal.Interest.
£.£.
Capital of their original Fund—See Note (1) [p. 125]3.200,00096,000
Exchequer bills, by 3d of Geo. I. c. 8th, bearing originally 5 per cent. interest, but reduced to 4 per cent. in 1727, and to 3 per cent. by 23d George II. 1749. See Note (2) [p. 126]500,00015,000
Purchased of the South Sea Company in 1722,—reduced from 6 to 5 per cent. interest in 1717; from 5 to 4. per cent. in 1727; and to 3 per cent. by 23d of George II. 1749.—See Note (3)4.000,000120,000
Lent to government at 4 per cent. in 1728, charged on the surplus of the fund for the lottery in 1714, and reduced to 3 per cent. by 23d George II. 17491.250,00037,500
Lent at 4 per cent. in 1727; charged on the duties on coals; and reduced to 3 per cent. by 23d of George II. 17491.750,00052,500
Lent at 4 per cent. in 1746; charged on licences for retailing spirituous liquors; and reduced to 3 per cent. by 23d Geo. II. 1749986,80029,604
Amount of Bank capital11.686,800350,604
See Note (4) [p. 126].
Charge of management 5,898l. per ann.
Bank Annuities.
Consolidated 4 per cent. annuities due April 5, and October 10—See Note (5)18.986,300759,452
These annuities fall to 3 per cent. in January, 1781.
Charge of management 10,680l. per ann.
Annuities at 3½ per cent. 1758, due Jan. 5, and July 5.—These annuities fall to 3 per cent. in 17824.500,000157,500
See an account of them in [p. 101].
Charge of management 2,805l. per ann. including management on half a million raised at the same time by a lottery, and made a part of the consolidated 3 per cents. Consolidated 3 per cent. annuities due Jan. 5, and July 5. See Note(6)38.251,6961.147,551
Management 21,087l. per ann.
Reduced 3 per cent. annuities, due April 5, and Oct. 10. See Note (7)18.353,774550,613
Charge of management 10,324l. per ann.
Three per cent. 1726, due Jan. 5, and July 5, charged on the deduction of 6d. per pound on all pensions from the civil list; and on all payments from the crown, except to the navy and army—See Note (8) [p. 128]1.000,00030,000
Management 360l. per ann.
Long annuity due Jan. 5, and July 56.702,750248,250
The remaining term from Jan. 1776, is 84 years—See Note (9) [p. 128].
Management 3,491l. per ann.
Capitals and Annuities transferable at the South Sea House.
South Sea Stock3.662,784109,884
The dividend on this stock, at 3½ per cent. is 128,197l. 9s.—Due Jan. 5, and July 5.
South Sea 3 per cent. Old Annuities due April 5, and Oct. 1011.907,470357,224
Three per cent. New Annuities due Jan. 5, and July 58.494,830254,845
Three per cent. 1751, due Jan. 5, and July 51.919,60057,588
Charge of management on South Sea Stock and Annuities 15,100l. per ann.—See Note (10).
Capital and Annuities transferable at the India House.
East India Stock3.200,00096,000
Interest 3 per cent.
Dividend 7 per cent. 224,000l. due Jan. 5, and July 5.—See Note (11).
Charge of management 1.285l. 14s. 4d.
East India Annuity due April 5, and Oct. 10, charged on the surplus of a tax on spirituous liquors. See Note (12)1.000,00030,000
Management 401l. 15s. 8d. per ann.
Annuities payable at the Exchequer.
Annuities for 96 and 99 years, from various dates, in the time of King William and Queen Anne—See Note (13)1.836,276131,203
Salaries to Exchequer officers, and management—5,250l. per ann.
Annuities for lives, with benefit of survivorship, granted by the 4th of William and Mary, 1693.—These annuities are not yet extinct, and they are valued at three years purchase22,7817,567
Annuities for lives, with benefit of survivorship, by an Act of the 5th of Geo. III. 1765—See Note (14)18,000540
Annuities for two or three lives, granted in 1694.—Also, Annuities on single lives 1745, 1746, and 1757.—See Note (15)—Their original amount, taken all together, was very nearly 124,000l. but they are now reduced by deaths to near 80,000l. and their value is here taken at 10 years purchase800,00080,000
Unfunded Debt, consisting of Exchequer bills, (1.250,000l.) Navy debt, (1.850,000l.) and Civil list debt, supposed 500,000l.—The interest is reckoned at 2 per cent.—See Note (16)3.600,00072,000
Salaries to Exchequer bill officers 650l. per ann.
Total of the principal and interest of the National Debt at Midsummer 1775.£. 135.943,0514.440,821

Notes containing an Explanation and History of the different Articles in the foregoing Account.

Note (1)—Bank Old Capital. See [Page 119].—The Bank was established in 1694. Their original capital was 1.200,000l. bearing 8 per cent. interest, charged on 5/7ths. of 9d. per barrel excise, with 4000l. per ann. for management.—In 1709, they lent to government 400,000l. without interest, which increased their old capital to 1.600,000l. bearing 6 per cent. interest. In 1742, they again lent to government 1.600,000l. without interest; and thereby increased this capital to its present amount, or to 3.200,000l. bearing 3 per cent. with the same annual sum for management.—It is of particular importance to observe with respect to the sums of 400,000l. and of 1.600,000l. just mentioned, that they were properly a compensation from the Bank to the public for continuing their exclusive privileges; and would have been advanced, or at least the greatest part of them, though government had not bound itself to return the purchase money, by making it a part of the principal due to the Bank, provided the same interest had been continued for some time on their former principal, and the same liberty granted to increase their stock.—The like is true of 1.200,000l. advanced by the India Company without interest in 1708.—In these instances, therefore, a needless addition was made to the public debt of 3.200,000l. which, had it been avoided, the public would have had not only a principal so much less to pay; but it would have saved in interest at least 96000l. per ann. for the old capital of the Bank and the capital of the East India Company would have formed, in this case, between them, a debt of only 3.200,000l. (instead of 6.400,000l.) the interest of which might long ago have been reduced at least one half; or from 8 per cent. the original interest, to 4 per cent.

Note (2)—Half a million, part of the Bank Capital. See [Page 119].—This part of the Bank capital consisted originally of two millions in Exchequer bills, cancelled for government by an act of the 3d of Geo. I. But half a million was discharged in 1729; and a million in 1738.

Note (3)—Four millions purchased of the South-Sea Company; part of the Bank Capital. See [Page 119].—In order to procure this money, the Bank sold new stock at 18 per cent. premium. This produced a saving of 610,169l. the sale of 3.389,831l. stock having produced four millions in money. And, consequently, though by this transaction the capital for which they received interest was increased four millions, yet the stock on which they made their dividends was increased only 3.389,831l.

Note (4)—Bank Stock and Dividend.—The stock on which the Bank divides is only 10,780,000l. This dividend varies as their profits vary; but for several years it has been 5½ per cent. payable half-yearly at Lady-day and Michaelmas. Their whole annual dividend is, therefore, 592,900l. which subtracted from 350,604l. the interest paid by government, makes their clear annual profit 242,296l.—Besides interest, they receive for management of their capital 4000l. per ann. on account of their old capital, and 1,898l. per ann. on account of four millions purchased of the South Sea Company; in all, 5,898l. per ann.—The Bank receives farther the sums specified in the foregoing account, towards bearing the expences of managing the annuities commonly called Bank Annuities. All these expences, including the sums granted for managing their capital, amount to 54,645l. per ann.

Note (5)—Consolidated 4 per cent. Bank Annuities. See [Page 120].—The capital of these Annuities consists of two loans, one in 1760, and the other in 1762, consolidated into one stock, and charged on the additional duty of 3d. per bushel on malt, the surplus of the duties on spirituous liquors, and the additional duties on windows; all which duties were ordered by 2d Geo. III. to be carried to the Sinking Fund, and the interest with which they were charged to be paid out of that fund.—I have made some remarks on these loans in [page 96], and [page 99]. They amounted to 20.240,000l. But 1.253,700l. of this capital was changed in 1770, from an interest of 4 to 3 per cent. and the capital reduced to the present sum.—A more full account of these annuities may be found in Mr. Ashmore’s Analysis of the several Bank Annuities, p. 17.

Note (6)—Consolidated 3 per cent. Bank Annuities. See [page 121].—The capital of these annuities is made a distinct stock from that of the annuities called Reduced, because it never bore a higher interest than 3 per cent.—It consisted originally of the following loans—37,821l. remaining in 1727, of 3 per cent. annuities, granted in lieu of St. Christopher’s and Nevis debentures—800,000l. borrowed in 1731—600,000l. borrowed in 1736—300,000l. in 1738—6.400,000l. in 1742, 1743, 1744 and 1745, and charged on additional duties on spirituous liquors, wines, vinegar, &c.—1.000,000l. borrowed in 1750—24.490,000l. borrowed in the course of the last war, and funded on the additional duties on beer, houses, stamps, &c.—4.900,000l. borrowed in 1766, 1767 and 1768—And 1.253,700l. of the 4 per cent. annuities, subscribed into the 3 per cent. annuities in 1770.

All these loans were by 25 Geo. II. 1751, and several subsequent Acts of Parliament, consolidated into one joint stock; and carried, with the duties for paying the interest, to the Sinking Fund. And in 1770, they formed a capital of 39.781,521l. which has been since reduced, by the payments mentioned in the Postscript at the end of this tract, to the sum specified in the account to which this note refers.—See a more full account in Mr. Ashmore’s Analysis, &c. from page 5 to page 11.

Note (7)—Reduced 3 per cent. Bank Annuities. See [page 121].—The capital of these annuities consisted, in 1749, of loans in 1746, 1747, and 1748, and navy, ordnance and transport debts funded in 1749, amounting to 18.402,472l. and all bearing 4 per cent. interest.—By the 23d of Geo. II. 1749, these loans were reduced to an interest of 3 per cent. and by the great consolidating Act in 1751, they were converted into one stock, and carried into the Sinking Fund with the duties on carriages, and the additional duties on glass, spirituous liquors, houses, windows, stamps, merchandize imported, &c. which had been granted for paying the interest.—In 1751, certain exchequer tallies and orders, amounting to 129,750l. were subscribed into this stock; and in 1765, navy bills to the amount of 1,482,000l. were subscribed into it, which made its whole original amount 20.014.222l.—In 1751, there was paid off 830,898l. being stock which had not been subscribed agreeably to the Act in 1749 for reducing interest; and in 1772, 1774, and 1775, so much more of this stock was paid off as reduced it to its present amount.—See Mr. Ashmore’s Analysis, p. 12-16.

Note (8)—Civil List million. See [page 121].—The income settled upon King George I. for his civil list, was 700,000l.—In 1720, there had been granted him besides, from the Royal Exchange and London Assurance companies, 300,000l. And in 1726, this million was farther granted towards paying off his debts.

Note (9)—Bank Long Annuity. See [page 122].—This annuity consists of 128,250l. per ann. for 99 years, given in 1761, as a premium to the subscribers of 11.400,000l. at 3 per cent; and of 120,000l. per ann. for 98 years, given in 1762, as a premium to the lenders of twelve millions at 4 per cent. See [page 95] and [100]. It is charged, together with the loans to which it was annexed, on the Sinking Fund.—Its value in the Alley is about 25 years purchase; but the remaining term is really worth 27 years purchase, reckoning interest at 3½, (or the 3 per cents. being at 85¾.) But when interest is at 4 per cent. or the 3 per cents. are at 75, it is worth only 24 years purchase.—When this annuity is called a premium, it must not be imagined, that no compensation was given for it. Government received the value of it; but, at the same time, made itself a debtor for that value. And, what is very surprizing, this has been uniformly practised with respect to all the premiums or douceurs granted by government; and the consequence has been, that great and needless increase of the public debt explained in the 3d section of the 2d Part.

Note (10).—South-Sea Stock and Annuities. See [page 122].—These four capitals amounting to 25.984,684l. 13s. consist almost entirely of the remainder of debts contracted in the reigns of King William and Queen Anne. The following account will probably give sufficient information concerning them.

In 1711, Lord Oxford being minister, the proprietors of certain navy, army, ordnance and transport debts, to the amount of 9.177,968l. including arrears of interest, and half a million for the current supplies, were incorporated into a company for trading to the South-seas. They were allowed 6 per cent. interest for this debt, with 8000l. per ann. for management; and the duties on wine, tobacco, East-India goods, candles, &c. were made perpetual, and granted as a Fund (ever since called the South-sea Company’s Fund) for paying the interest. This kept up public credit at the time, and has been called the Earl of Oxford’s master-piece.—By the 1st of Geo. I. 822,032l. consisting chiefly of interest payable on the Company’s capital, was added to the capital, in consequence of which it was increased to TEN MILLIONS, (ever since called their original capital) bearing 6 per cent. interest.—In 1717, they agreed to take 5 per cent; and this was the first great reduction of interest, which in conjunction with the same reduction of the other redeemable debts almost all carrying 6 per cent. laid the foundation of the Sinking Fund established in this year. But it is remarkable, that so fast did interest fall at this time, that the price of South-sea stock, notwithstanding this reduction, rose from 101 to 111.—In 1719, the South-sea capital was increased to 11.746,844l. bearing 5 per cent. interest (with an addition of 1,397l. 9s. to their former allowance for management) by advancing to government 544,142l. and by the proprietors of 94,329l. 12s. lottery annuities for 32 years granted in 1710, accepting in lieu of them 1.202,702l. South Sea stock.—In 1720, the agreement was made by government with the South Sea Company, which produced the great South Sea bubble.—There existed at that time long annuities to the amount of 666,821l. 8s. and short annuities, for 32 years from 1710, to the amount of 127,260l. 6s. The proprietors of these annuities were allowed to subscribe them into the South Sea trading stock; and the Company, for every 100l. of the long annuity which should be subscribed, were to receive from government an addition to their capital of 2000l. bearing 5 per cent. interest till 1727, and afterwards 4 per cent. till redeemed: and for every 100l. of the short annuities, they were to receive an addition to their capital of 1400l. bearing the same interest.—They were besides to take in the redeemable debts to the amount of 16.546,482l. and to receive an addition to their capital of 100l. for every 100l. subscribed.—By the subscription of the long and short annuities which followed this agreement, a capital due from government to the Company was created, which was greater by 3.034,769l. than the original sum advanced for the annuities subscribed. And as much of these annuities and of the redeemable debts were subscribed, as increased the South Sea trading capital to 37.802,203l.—In 1722, four millions of this capital was purchased by the Bank, (See Note 3.) which reduced it to 33.802,203l.—By 9 Geo. I. 1723, this remaining capital was divided into two equal parts, one of which alone (or 16.901,101l.) was ordered to be the trading capital of the Company, and the other part was directed to be called South Sea Annuities.—In 1733, the South Sea trading capital had been reduced by payments at different times to 14.651,137l. 12s. By an Act of Parliament in that year, this remaining stock received a farther division; and only a fourth part, or 3.662,784l. was allowed to be the Company’s stock; and the other three parts, or 10.988,353l. were directed to be called New South Sea Annuities, in order to distinguish them from the former annuities, which have ever since gone under the name of Old South Sea annuities.—From 1733, to the present time, South Sea Stock has continued the same; but the capital of the Old South Sea annuities has been reduced, by redemptions, to 11,907,470l. and of the New South Sea annuities, to 8.494,830l. And of the whole South Sea debt, which in 1722 was 33.802,203l. there has, since that year, been paid off in all 9.737,119l. This should have reduced it to 24.065,081l. but it is in reality 25.984,685l. The reason of this is, that the diminution just mentioned of the South Sea debt was made in part with money borrowed in 1751, to pay off such proprietors of South Sea annuities as had refused to consent to the reduction of interest proposed to them in 1749. The sum borrowed for this purpose was 2.100,000l. bearing 3 per cent. with 1181l. 5s. for management. This debt is now reduced by redemptions to the sum specified in the preceding account; or to 1.919,600l.

Note (11).—East-India Stock. See [page 123].—In 1698, a company of merchants, in consideration of two millions lent to government at 8 per cent. were incorporated, and entitled to the sole privilege of trading to the East-Indies.—These two millions formed the first capital of the present East-India Company.—In 1702, an old company of traders to the East-Indies was united to this company; and in 1708, these united companies lent to government 1.200,000l. without additional interest, which made their capital 3.200,000l. bearing 5 per cent.—In 1730, this interest was reduced to 4 per cent. and by the 23d Geo. II. 1749, to 3 per cent.—The salt duties, and some additional stamp duties, were at first charged with the annuity due on this capital; but at present the duties constituting the aggregate fund are charged with it.

Note (12).—East-India Annuity. See [page 123].—The capital of this annuity was advanced to government in 1744, at 3 per cent. and, in consideration of this loan, the exclusive charter of the Company was continued to Lady-day 1783, at which time it is to cease, provided three years notice has been given, and the debt due from government discharged.

An observation here forces itself upon me, which I have often had occasion to make.—Part of this loan was a compensation from the East-India Company for prolonging the term of its charter; and, therefore, ought not to have been included in the loan. The Company would have lent 750,000l. on the interest common at the time, or 4 per cent. and the remainder would have been advanced as a gratuity.—It is a pity those who managed these contracts for the public, did not attend to the absurdity and extravagance of making a debt of purchase money, and borrowing in the very act of selling.

Note (13).—Exchequer Long Annuities. See [page 123].—These are the long annuities which, in 1720, remained unsubscribed to the South Sea Company. See Note 10.—They consist first of annuities to the amount of 54,900l. 14s. 6d. purchased by the 4th, 5th, and 6th of William and Mary, for 96 years, from January 1695, with the addition of 1350l. per ann. for salaries to exchequer officers. These annuities were originally 14 per cent. life-annuities. By the 6th and 7th of William and Mary, in order to raise more money, these annuitants, or any other persons for them, were offered a reversionary interest in the annuities after the failure of the lives, till the end of 96 years from January 1695, on paying 4½ years purchase, (that is 63l.) for every annuity of 14l.—The predecessors of the present company of the Million Bank (so called from the MILLION lottery 1694, in which they were some of the principal adventurers) purchased 30,669l. 4s. of these reversionary annuities. The life annuitants being now reduced to a very small number, almost the whole of this annuity is lapsed to the company; and though they have divided for several years 5 per cent. on a capital of half a million, yet their growing savings, from the falling in of lives, have been such, that, when their annuity ceases in 1791, they will, I am informed, have accumulated a fund considerably larger, than the capital on which they have made their dividends. But to return.

These Exchequer Annuities consist farther of

£.s.d.
30,40068purchased for 99 years from Christmas 1705, by 2d and 3d of Anne, with 1450l. for management.
23,234166purchased for 99 years from Lady-day, 1706, by 4 Anne, with 1470l. per ann. for management.
7,776100purchased for 99 years from Lady-day, 1707, by 5 Anne, with 375l. 12s. per ann. for management.
4,71000purchased for 99 years from Lady-day, 1708, by 6th of Anne, with 208l. 2s. per ann. for management.
10,18100purchased for 99 years from Lady-day, 1707, by a 2d Act of 5th of Anne, with 416l. per ann. for management.
Add54,900146
131,20378Total.

The original sum contributed for these annuities was 1.836,276l. They are even now worth more than this sum. The public has already paid above TEN MILLIONS; and by the time they are all extinct, it will have paid above THIRTEEN MILLIONS, on their account. This is great extravagance; but it is nothing to the extravagance constantly practised of borrowing on perpetual annuities, without putting them into a fixed course of redemption.

Note (14).—Tontine by an act of 6 Geo. III. See [page 124].—The intention of this Act was to raise 300,000l. towards paying off navy bills, by offering to subscribers for every 100l. advanced, an annuity of 3l. for their lives, with benefit of survivorship. But the scheme did not succeed, and only 18000l. was subscribed.

Note (15).—Life Annuities. See [page 124].—The annuities on two lives in 1694, were sold at 12l. per ann. during two lives, of any ages, and the annuities on three lives, at 10l. per ann. during three lives, for every 100l. advanced.—This was very extravagant; for, supposing the annuitants in general, about the age of 20 or 30, it was the same, in the case of two lives, with giving above 10 per cent. for money, and in the case of three lives, 9 per cent.—It is, likewise, extremely absurd in these cases to pay no regard to difference of ages. A single life at the age of 60, supposing money improved at 4 per cent. is intitled to 11 per cent. but at the age of 10, scarcely to 6 per cent. Two lives at 60, are entitled, on the same supposition, to 8½ per cent. but at 10, not to 5 per cent.—The original amount of these annuities was 22,700l. nearly. In 1762, that is, in 68 years, they were reduced by deaths no lower than 9,215l.

The other life-annuities mentioned in the preceding account were douceurs granted for loans in 1745, 1746, and 1757. An account of the annuities granted in the last of these years may be seen in [page 101].

The life-annuities in 1745, amounted to 22,500l. and were granted, together with the profits of a lottery, for a loan of two millions at 4 per cent.

The life-annuities in 1746, amounted to 45,000l. and were granted, with the profits of another lottery, for a loan of three millions, at the same interest.—The remarks made in the 3d section of the last part, and particularly in the note, [p. 101], are applicable to these two loans. The value of the life-annuities, and the profits of the lotteries, were made a part of the public debt. And, supposing the life-annuities worth, one with another, only 14 years purchase, and the profits of the two lotteries worth 300,000l. it will follow, that the capital created by these loans, instead of being 5.000,000l. should have been only 3.755,000l.

But there is another remark, which it is proper to mention here. The life-annuities granted in 1757, amounting to 33,750l. were, in January 1775, that is in 18 years, reduced by deaths to 28,732l. or but a little more than a seventh part. But, supposing the annuitants all in the firmest stage of life, or between the age of 10 and 30, they ought, according to some of the best tables of observations, to have been reduced a quarter. These life-annuities have, therefore, fallen in much more slowly than could have been expected; and I have found the same to be true of all the other life-annuities.—The reason, undoubtedly, is, that the tables exhibit the rate of mortality among all sorts and orders of men taken together; whereas, the lives on which annuities are bought, are a selection of the better sort of lives from the general mass, and therefore must be of greater value.—Indeed I am not acquainted with any table of observations which gives the probabilities of the duration of life high enough to be a guide in this case; except that which was formed by Mr. De Parcieux, from the French Tontines.—A calculation, therefore, of the values of lives, agreeably to this table, would be of considerable use.

Note (16).—Unfunded Debt. See [page 124].—I have given the navy debt, as it was in January, 1775.—The civil list debt in 1775, was probably more than the sum at which I have reckoned it. Lord Stair, in his account of the national debt, income, and expenditure, reckons it at 800,000l.

Much the greatest part of the foregoing debts, with the taxes for paying the interest, including the duties composing the Aggregate, South-Sea, and General Funds, have, by the 25th of George the Second, 1751, and several subsequent acts of Parliament, been thrown into one general account; and the surplus of the whole, after deducting the interest, 800,000l. per ann. to the civil list, and a few other payments, forms the Sinking Fund.—The debts not brought to this account are about seven millions and a half in the South-Sea House; 11.186,800l. of the Bank capital; the Civil List million; four millions and a half borrowed at 3½ per cent. in 1758; the capital of the East-India annuity; and the Exchequer long and life annuities, except those granted in 1758. But the surplusses of the duties which pay the interest of these debts are either carried immediately into the Sinking Fund account; or brought first to the Aggregate Fund, and from thence carried into that account.—On the contrary. Deficiencies in these duties when they happen, are made good out of the Sinking Fund; and afterwards replaced from the supplies.

For example. Three old nine-penny excises on beer, with an additional three-pence per barrel, producing above half a million annually; also, 3,700l. per week out of the hereditary excise on beer, together with some duties on paper, coals, &c. and ⅓ additional subsidy of tonnage and poundage, are appropriated to the payment of the Banker’s Annuity; the Life Annuities granted in 1693 and 1694; the Exchequer Long Annuities; and annuities on various sums subscribed to the South-Sea Company in 1720. The surplusses make a part of the Aggregate Fund; and after contributing to satisfy the charge on that fund, are carried into the Sinking Fund.—Again. Certain additional duties on soap, parchment, coals, &c. are appropriated to pay the interest of 1.250,000l. and of 1.750,000l. parts of the Bank capital.—The surplusses are carried directly to the Sinking Fund.—In like manner. The duties on houses and windows imposed by an act of the 20th of George the Second, 1747,[116] after deducting from them 91,485l. per ann. to satisfy certain charges on old house-duties in the Aggregate Fund; and, also, other duties on houses and windows imposed by the 2d and 6th of George the Third, amounting in all to about 205,000l. per ann. are carried into the Sinking Fund, together with the capitals, the interest of which has been charged upon them. But the addition to these duties (with a tax on pensions) granted in 1758, and charged with the interest (at 3½ per cent.) of the loan in that year, having not been carried into the Sinking Fund, and proving deficient; the deficiency is constantly made good out of this fund, and afterwards replaced from the supplies.

State and Amount of the National Debt at Christmas 1753; with the Charges of Management.

Bank of England.

Principal.Interest.
£.£.
Bank capital11.686,800393,038
Of this capital 3.200,000l. bore at this time 3 per cent. interest; and the remainder bore 3½ per cent. till 1757, by 23d Geo. II. 1749.—See note (1) [p. 125].
Management 5,898l. per ann.
Three per cent. Bank Annuities consolidated by 25 Geo. II. 1751.—See note (6) [p. 127].9.137,821274,135
Management 4,450l. per ann.
Bank Annuities consolidated by 25 Geo. II. 2.713,618l. carrying 3½ per cent. interest till 1755; and 14.857,956l. carrying the same interest till 1757. See note (7) [p. 128].17.740,132619,546
Management 9,884l. per ann.
Civil List million, 17261.000,00030,000
Management 360l. per ann.
Whole charge of Management at the Bank in 1753—20,592l. per ann.
South-Sea Company.
South-Sea Stock carrying 4 per cent. till 17573.662,784146,511
Old and New South-Sea Annuities carrying 3½ per cent. till 175721.362,525747,688
Three per cent. 1751—See note (10) [p. 131].2.100,00063,000
Whole charge of management at the South-Sea-House on stock and annuities, 15,748l. per ann.
East-India House.
East-India Stock, reduced to 3½ till 17573.200,000112,000
East-India annuity 17441.000,00030,000
Management 1,687l. 10s. per ann.
Total[117]£. 70,851,2542.415,918
Exchequer.
Annuities for 96 and 99 years from various dates in King William’s and Queen Anne’s times being the original sum contributed. See note (13) [page 132].1.836,276131,203
Management 5,230l. per ann. inclusive of management for the two next articles.
Annuities for lives with benefit of survivorship, being the original sum contributed108,1007,567
Annuities for two and three lives, being the remainder after deducting the annuities fallen in by deaths, and reckoned worth 10 years purchase106,65010,665
Annuities for single lives 1745, being the remainder after deducting the annuities fallen in by deaths; and reckoned worth 14 years purchase 296,14221,153
Annuities for single lives 1746, being the remainder after the lives fallen in582,27441,591
Navy debt in 1754—Interest reckoned at 2 per cent.1.296,56825,931
Total of the principal and interest of the public debts in 1753£. 75.077,2642.654,028

State and Amount of the National Debt in 1739.

Bank of England.

Principal.Interest.
£.£.
Bank Capital, consisting of 1.600,000l. old capital carrying 6 per cent; and 7.500,000l. carrying 4 per cent. See note 1, [p. 123].9.100,000396,000
Bank Annuities at 3 per cent. for the lottery in 1731.800,00024,000
South-Sea Company.
Stock and annuities bearing 4 per cent.27.302,2031.092,088
East-India Company.
East-India stock carrying 4 per cent.3.200,000128,000
Exchequer Annuities.
Annuities at 3½ by 4 Geo. II. paid off in 1752400,00014,000
Annuities at 4 per cent. charged on the duty on wrought plate by 6 Geo. I. 1720312,00012,480
182,250l. of this capital was paid off in 1750. The remainder is now included in the capital of the reduced 3 per cent. annuities.
Annuities at 3 per cent. charged on the Sinking Fund by 9 and 10 Geo. II. Now included in the consolidated 3 per cent. annuities900,00027,000
Annuities on Nevis and St. Christopher Debentures at 3 per cent. Now included in the consolidated 3 per cents.37,8211,135
Exchequer Bills charged on a duty upon victuallers by 12 Geo. I. 1726—Carrying 3 per cent.480,00014,400
Exchequer Bills charged on a duty on sweets by 10 of Geo. II. 1737—Carrying 3 per cent. and paid off in 1754—See the note [p. 140].499,60014,988
Annuities for long terms from various dates1.836,276131,203
Annuities for lives with benefit of Survivorship granted in 1693108,1007,567
Annuities for two and three lives, 1694106,65015,000
Navy debt[118]1.300,00026,000
Total of the Principal and Interest of the National Debt in 1739[119]£. 46.382,6501.903,861

From the account in the Postscript, at the end of this tract, it will appear, that 10.639,793l. of the public debt was discharged between the years 1763 and 1775; and also that the funded debt was, in 1775, 1.400,000l. greater than it was at the end of the last war. From hence, and from the amount of the public debt in 1775, as stated in [page 124], it follows, that the funded debt at the end of the war was 130.943,051l. and the whole debt 146.582,844l. and, consequently, that the war left upon the nation an unfunded debt amounting to[120] 15.639,793l. This unfunded debt consisted of the following particulars—Of 3.500,000l. borrowed after the peace in 1763, and applied towards bearing such expences of the war as could not immediately cease with its operations.—Of near eight millions in navy, victualling, ordnance, and transport debts.—Of 1.800,000l. Exchequer bills; and the remainder, of subsidies to foreign princes, extraordinaries of the army, and German demands.

In the interval of peace between 1748 and 1755 the following debts were paid off.

£.
Bank Annuities bearing 4 per cent.1.013,148
South-Sea Annuities bearing 4 per cent.176,893
Annuities bearing 3½ per cent. charged by 4 Geo. II. on additional Stamp-duties400,000
Exchequer Bills bearing 3 per cent. charged by 10 Geo. II. 1737 on the duties on sweets499,600
Borrowed in 1745 at 3½ per cent. on the credit of the Salt duties1.000,000
See note, [page 140].
[121]Total£. 3.089,641

From the whole, the following account of the progress of the National Debt, from 1739 to 1775, may be deduced.

Principal.Interest.
£.£.
Amount of the principal and interest of the national debt before the war which begun in 174046.382,6501.903,861
Amount in 1749 immediately after the war78.166,9062.765,608
Increased by the war31.784,256861,747
Diminished by the Peace from 1748 to 17553.089,641111,590
Amount at the commencement of the last war75.077,2642.654,018
Amount at the end of the war in 1763146.582,8444.840,821
Increased by the last war71.505,5802.186,803
Diminished by the Peace, in twelve years from 1763 to 177510.639,793[122]400,000
Amount at Midsummer, 1775135.943,0514.440,821

We are now involved in another war, and the public debts are increasing again fast. Exchequer Bills have been increased from 1.250,000l. to 1.500,000l. A new capital of 2.150,000l. has been added to the 3 per cent. Consolidated Annuities. And a vote of credit was given in the last session of Parliament for a million. The last year, therefore, has added 3.400,000l. to our debts, besides a vast sum not yet provided for, consisting of navy, ordnance, victualling, transport and army debts.—The present year (1777) must make another great addition to them; and what they will be at the end of these troubles, no one can tell.—The union of a foreign war to the present civil war might perhaps raise them to Two Hundred Millions; but, more probably, it would sink them to—Nothing.

SECT. III.
Of the Debts and Resources of France.

Ministers have of late sought to remove the public apprehensions by general accounts of the weakness of powers, which, from the circumstances of former wars as well as national prejudices, have been felt by the people as jealous rivals or formidable enemies.—I wish it was possible for me to confirm these accounts; and by contrasting the preceding state of our own debts with a similar one of those of France, to shew, that from this power in particular we have nothing to fear. The following particulars, on the correctness of which I can rely, may give some assistance in judging of this subject.

The whole expence of the last war to France was 1.118.307,047 livres; that is, 49.702,000l. sterling: of which 23.152,000l. (520.926,000 livres) consisted of money procured by the sale of taxes, by free-gifts, and extra-impositions during the war, which left behind them no debts: And 26.550,000l. (597.380,100 livres) consisted of LOANS, or money raised on perpetual annuities, life-annuities, and lotteries.—At the beginning of 1769 the whole amount of the debts of France, including all arrears and capitals advanced on annuities and lotteries, was 128.622,000l. sterling, or 2.894.053,616 livres. The annual charge derived from this debt was 6.707,500l. sterling (150.919,284 livres)—All the appropriations amounted to 8.218,500l. sterling (184.919,284 livres).—The expences of the army, navy, king’s houshold, prince’s houshold, foreign affairs, &c. amounted to 8.947,000l. or 201.307,312 livres. So that the whole annual expence was 17.165,000l. (386.226,596 livres).—The whole revenue had amounted, before 1769, to 13.484,500l. sterling (303.401,696 livres).—The public expence, therefore, had exceeded the revenue 3.681,000l. (82.800,000 livres.) per ann.

From the year 1769 to the present King’s Accession, by forced reductions of interest, and by new taxes, the public revenue was carried to 16.289,000l. sterling (366.508,000 livres) and the public expence was reduced so as not to exceed the revenue above 766,800l. per annum (17.253,000 livres).—The anticipations also of the revenue, which before 1769 had extended to seventeen months, were reduced to five months.—Such was the progress of reformation; namely, an increase of revenue amounting to little less than Three Millions sterling per ann. in a few years, under an unpopular minister, in the latter days of a reign never characterized by an attention to oeconomy, or a regard to the public interest; and at this time particularly stamped by unprecedented profusion and a general relaxation.

A new reign produced a new minister of finance whose name will be respected by posterity for a set of measures as new to the political world, as any late discoveries in the system of nature have been to the philosophical world.—Doubtful in their operation, as all unproved measures must be, but distinguished by their tendency to lay a solid foundation for endless peace, industry, and a general enjoyment of the gifts of nature, arts, and commerce.—The edicts issued during his administration exhibit indeed a phænomenon of the most extraordinary kind. An absolute king rendering a voluntary account to his subjects, and inciting his people to think; a right which it has been the business of all absolute princes and their ministers to extinguish in the minds of men.—In these edicts the king declared in the most distinct terms against a bankruptcy, an augmentation of taxes, and new loans; while the minister applied himself to increase every public resource by principles more liberal than France, or any part of Europe, ever had in serious contemplation.—It is much to be regretted, that the opposition he met with, and the intrigues of a court, should have deprived the world of those lights which must have resulted from the example of such an administration.

After a short interval, a nomination, in some respects still more extraordinary, has taken place in the court of France. A court which a few years since was distinguished by its bigotry and intolerance, has raised a Protestant, the subject of a small but virtuous republic, to a decisive lead in the regulation of its finances. It is to be presumed, that so singular a preference will produce an equally singular exertion of integrity and talents. Though differing from Monsieur Turgot in several principles, which regard the larger lines of government, he appears by his first steps, and, particularly, the preamble to a late edict for raising 24 millions of livres by a lottery, to put his foot on the same great basis of general justice, and a strict conservation of the faith o£ the king; and points more particularly at the surest of all resources in any modern states, a simplification of taxes and a reformation in the collection of them. This administration, making improvements in the Revenue its immediate object, is more capable of present exertion; and, as such, is more formidable.

From these facts and observations it is impossible not to conclude, that if we trust our safety to the difficulties of France, we may find ourselves fatally deceived. I will add, that though (like the 3s. land-tax and lotteries among ourselves) some of the extraordinary impositions of the last war have been continued in France, there are some which ceased with the war, and which they can renew. It is, particularly, an advantage of unspeakable importance to them, that they can carry on a war, as they did the last, at half our expence; and that, having no dependence on the flattering delusion of paper, they can, as they did in 1759, bear even a bankruptcy in the middle of a war, and yet carry it on vigorously.—Their debts time itself is sinking fast. Of 3.111,000l. (seventy millions of livres) in annuities on the Hotel de Ville at Paris, 1.777,000l. (forty millions of livres) consisted in 1774 of Life Annuities, which were falling by deaths at the rate of 71,000l. (1.600,000 livres) every year.—Even their loss of credit, whatever present embarrassment attends it, favours them upon the whole. To this they owe the advantages just mentioned. The facility with which our high credit has enabled us to run in debt ensnares us; and, if a change of measures does not take place,[123] must ruin us. Experience has given them a just horror at borrowing on permanent funds; and were they inclined to do it, they are not able to do it to any great amount; and, consequently, they cannot go on mortgaging one resource after another till none is left.—While we lose sight of the capital in the interest, they carry their views chiefly to the reimbursement of the capital; and after receiving high interest, for some years, can be satisfied with receiving back a part of their capital.—Their debts, being confined in a great measure to the Farmers General and others at Paris, are not circulated and diffused among the body of the people in the manner ours are: And it is well known, that they can make use of methods to discharge them which our government must never think of. The acts of arbitrary power and unjust expedients to which, on many occasions, they have had recourse for this purpose without producing any tumults, are such as appear to us almost incredible; and should the time ever come, when it will be necessary in this country to make use of any violence of the same kind, all government will probably be at an end.

In point of territory and number of inhabitants, the two countries will bear no comparison[124]. We have hitherto opposed France by our free spirit, and our colonies; and to them chiefly we owe our prosperity and victories. Our colonies once separated from us, the islands will soon follow. But should they remain ours, our comparative advantages will best appear from the following authentic account of the imports into France from their islands.

In 1774.

Weight in Pounds.
Sugar imported into France147.986,959
Indigo1.734,206
Rocou210,187
Coffee58.247,133
208.178,485

In 1775.

Weight in Pounds.
Sugar imported into France171.932,972
Indigo2.134,247
Rocou169,831
Coffee58.545,000
[125]232.782,050

Value of the above commodities re-exported from France, taken upon the average price.

Livres.Sterling.
In 177475.901,3733.373,000
In 177574.961,3183.331,000

The whole importation from the West Indies into Britain is about three millions per ann.

But I have gone much beyond the views with which I begun this section. The facts which have been stated, and the reflections which they have occasioned, are intended principally to shew that we ought not to suffer ourselves to be drawn into security by any assurances of the weakness of France.—May she, however, find herself the weakest of kingdoms whenever, from motives of interest or ambition, she shall attempt to injure any of her neighbours.—May Britain, hitherto the most favoured spot under heaven, always preserve her distinguished happiness, and escape the danger which now threatens her. And may the time soon come, when all mankind, sensible of the value of the blessings of peace and equal liberty, shall suffer one another to enjoy them, and learn war no more.

SECT. IV.
Containing an Account of the National Income and Expenditure; the Surplus of the Revenue; and the Money drawn from the Public by the Taxes; with Remarks on Lord Stair’s Account.

Appropriated Revenue at Midsummer, 1775.

£.
Interest of the national debt4.440,821
Civil list revenue. See the note in [page 163]800,000
Expences of management attending the national debt; of which 71,432 l. is the expence of management at the Bank, South-Sea House, and India House; and 5.900 l. salaries to Exchequer Officers. See [Page 119, &c.]77,332
Annuities payable out of the Aggregate Fund to the Duke of Gloucester, 8000 l.—Duke of Cumberland, 8000 l.—the Representatives of Arthur Onslow, Esq; 3000 l.—And the Sheriffs of England and Wales, 4000 l.—In all23,000
Clerk of the Hanaper in Chancery—Coinage[126] expence—Tenths and first-fruits of the Clergy appropriated to the augmentation of small livings—Extra revenues of the crown, consisting of American quit-rents; duty of 4½ per cent. in the Leeward Islands; revenues of Gibraltar and dutchy of Cornwall, &c.—Fees for warrants and orders, for auditing and engrossing accounts of dividend warrants, and other charges at the Exchequer and Treasury[127]100,000
Total of the Appropriated Revenue£. 5.441,153

State of the Surplus of the Revenue for 11 years ended at 1775.

Unappropriated Revenue.

Neat Produce of the Sinking Fund, for five years, including casual surplusses, reckoning to Christmas in every year; being the annual medium, after deducting from it about 45,000l. always carried to it from the supplies, in order to replace so much taken from it every year to make good a deficiency in a Fund established in 1758.£. 2.610,759
Neat annual produce of Land Tax at 3s. militia deducted; and of the Malt Tax[128]1.800,000
(N. B. These two taxes in 1773, brought in only 1.665,475l.)
There are some casual Receipts, not included in the Sinking Fund, such as Savings in Pay-Office, duties on Gum Senega, American Revenue, &c. But they are so uncertain and inconsiderable, that it is scarcely proper to give them as a part of the permanent Revenue. Add however on this account50,000
Total of unappropriated Revenue£. 4.460,759

Produce of the Sinking Fund, reckoned to Christmas in every Year.

1770£. 2.486,836
17712.553,505
17722.683,831
17732.823,150
17742.731,476

The average of these five years is 2.655,759l. or, deducting 45,000l. (as directed in the last page), 2.610,759l.

In 1775, the Sinking Fund was taken for 2.900,000l. including an extraordinary charge of 100,000l. on the Aggregate Fund; but it produced 2.917,869l. The average of six years, including 1775, was 2.654,443l. The average of five years before 1770, was 2.234,780l.

ANNUAL EXPENDITURE.

£.
Peace Establishment, for the Navy and Army, including all miscellaneous and incidental expences3.700,000
Annual increase of the Navy and Civil List debts350,000
Interest at 2 per cent. of 3.600,000l. unfunded debt, which must be paid out of the unappropriated Revenue72,000
Total4.122,000
Annual Surplus of the Revenue338,759
Annual income £.4.460,759

The estimate for the peace establishment, including miscellaneous expences, amounted, in 1775, to 3.703,476l.—But the extraordinary expences, occasioned by the war with America, made it fall very short.—In 1774 it amounted to 3.784,452l. exclusive of 250,000l. raised by Exchequer Bills, towards defraying the expence of calling in the gold coin. And the medium for eleven years, from 1765, has been nearly 3.700,000l.—According to the accounts which I have collected, the expence of the peace establishment (including miscellaneous expences) was in 1765, 1766, and 1767, 3.540,000l. per ann.—In 1768, 1769, and 1770, it was 3.354,000l. per ann.—In 1771, 1772, 1773, 1774, and 1775, the average has been nearly four millions per ann. exclusive of the expence of calling in the coin.

The parliament votes for the sea service 4l. per month per man, including wages, wear and tear, victuals and ordnance. This allowance is insufficient, and falls short every year more or less, in proportion to the number of men voted. From hence, in a great measure, arises that annual increase of the navy debt, mentioned in the second article of the National Expenditure. This increase in 1772 and 1773 was 669,996l. or 335,000l. per ann. The number of men voted in those two years, was 20,000. I have supposed them reduced to 16,000, and the annual increase of the Navy Debt to be only 250,000l.—Add 100,000l. for the annual increase of the Civil List Debt, and the total will be 350,000l.

Soon after the publication of the preceding account in February last year, the Earl of Stair obliged the public with another account of the same kind, which brings out a conclusion much more unfavourable. According to this account, were lotteries abolished, and the land-tax at 3s. in the pound only, there would be a deficiency in the revenue, instead of such a surplus as I have stated. The following remarks will shew the reason of this difference.

The Earl of Stair has taken the annual produce of the Sinking Fund at 2.506,400l. being the average produce of EIGHT years ended at Lady day 1775.—I have taken it at 2.610,759l. being the average of FIVE years ended at Christmas 1775.—The neat produce of the land and malt taxes has been also taken near 50,000l. higher in my account; and I have besides admitted 50,000l. per ann. for casual supplies, which his Lordship has not charged.

The annual increase of the Navy Debt, Lord Stair states at 300,000l. and of the Civil List at 200,000l. I have stated the former at 250,000l. and the latter at 100,000l.—In order also to avoid, as much as possible, all exaggeration, I have thrown out the expence of the new coinage. Lord Stair has admitted it, and given an yearly expence derived from hence of 100,000l.—He has also taken the Peace Establishment for 1774, as a fair medium for common years of peace, because it was lower in that year than in the three years preceding 1775. I have taken the average of eleven years of peace, which is 75,000l. less.

In consequence of these differences, the national PEACE expenditure in Lord Stair’s account comes out 325,000l. per ann. higher than in mine; and the national income comes out 204,359l. lower; from whence it follows, that without lotteries, and the land being at 3s. in the pound, the kingdom must, according to his Lordship’s calculation, run out at the rate of about 200,000l. every year.

In some of the particulars I have mentioned, this account is probably nearest to the truth; but, I hope, it will be considered, that I have studied to give moderate accounts, and aimed at erring always rather on the favourable than the unfavourable side.

Second Method of deducing the Surplus of the Revenue.

From the year 1763 to the year 1775, or during a period of 12 years, 10.639,793l. of the public[129] debt was paid off.—The money employed for this purpose must have been derived from the surplus of the ordinary revenue, added to the extraordinary receipts. These receipts have consisted of the following articles.—1st. The land-tax at 4s. in the pound in 1764, 1765, 1766, and 1771; or 1s. in the pound extraordinary for four years, making 1.750,000l.—2. The profits of ten lotteries[130] making (at 150,000l. each lottery) 1.500,000l.—3. A contribution of 400,000l. per ann. for five years from the East India Company, making 2.000,000l.—4. Savings by debts discharged at a discount,[131] making at least 400,000l.—5. Paid by the Bank in 1764 for the renewal of their charter, 110,000l.—6. Savings on high grants during the war; produce of French prizes taken before the declaration of war; sale of lands in the ceded islands; and composition for maintaining French prisoners,[132] making 2.520,000l.—All these sums amount to 8.280,000l. There remains to make up 10.639,793l. (the whole debt discharged) 2.359,793l. and this, therefore, is the amount of the whole surplus of the ordinary revenue for twelve years; or 196,000l. per ann.[133]

The Earl of Stair has also, in this method, calculated the surplus of the Revenue; and makes the total, for eleven years, to be no more than 2.557,378l. even with the assistance of lotteries, and the land-tax at 4s. in the pound for five years; from whence it follows, that without these assistances, there would have been a deficiency of near 60,000l. per ann.—The reason is, that his Lordship has taken the whole debt paid since 1763, at no more than 7.053,855l. or three millions and a half less than I have made it; and he has taken it so much less, chiefly in consequence of including in the amount of the public debt in 1775, the excess of the expences of that year above the common peace expences. This excess is to be charged to the present war; and, in determining the ordinary peace surplus, which is my object, it was proper to exclude it, and to terminate the account at the commencement of the war.—I will only add, that Lord Stair has also included more in the extraordinary receipts than I have; and, particularly, 700,000l. which he supposes the public gained by the TEA INDEMNITY.—But this was only a compensation made by the East-India Company for the loss which the public sustained by taking off, in 1766, a part (or 1s. per pound) of the duty on tea. In 1772 it was restored; and the excise upon tea has since, if I am rightly informed, produced as much as ever. Before 1766, it produced annually 474,091l. Immediately[134] after 1766, it produced 341,284l.—But in 1775, it produced near half a million.

Sketch of an Account of the Money drawn from the Public by the Taxes, before the Year 1776.

£.
Customs in England, being the medium of the payments into the Exchequer, for 3 years ending in 1773[135]2.528,275
Amount of the Excises in England, including the malt tax, being the medium of 3 years ending in 17734.649,892
Land Tax at 3s.1.300,000
Land Tax at 1s. in the pound450,000
Salt Duties, being the medium of the years 1765 and 1766218,739
Duties on Stamps, Cards, Dice, Advertisements, Bonds, Leases, Indentures, News-papers, Almanacks, &c.280,788
Duties on houses and windows, being the medium of 3 years ending in 1771385,369
Post Office, Seizures, Wine Licences, Hackney Coaches, Tenths of the Clergy, &c.250,000
Excises in Scotland, being the medium of 3 years ending in 177395,229
Customs in Scotland, being the medium of 3 years ending in 177368,369
Annual profit from Lotteries150,000
Inland taxes in Scotland, coinage duties, casual revenues, such as the duties on Gum-Senega, American revenue, &c.150,000
Expence of collecting the Excises in England, being the average of the years 1767 and 1768, when their produce was 4.531,075l. per ann.—6 per cent. of the gross produce297,887
Expence of collecting the Excises in Scotland, being the medium of the years 1772 and 1773, and the difference between the gross and nett produce—31 per cent. of the gross produce43,254
Expence of collecting the Customs in England, being the average of 1771 and 1772, bounties included, and 15 per cent. of the gross produce, exclusive of drawbacks and over-entries468,703
N. B. The bounties for 1771 were 202,840l.—for 1772, 172,468l.
The charges of management for 1771, were 276,434l.
For 1772, 285,764l. or 10 per cent. nearly.
Interest of loans on the land tax at 4s. expences of collection, militia, &c.250,000
Perquisites, &c. to Custom-house officers, &c. supposed250,000
Expence of collecting the Salt-duties in England, 10½ per cent.27,000
Bounties on fish exported18,000
Expence of collecting the duties on Stamps, Cards, Advertisements, &c. 5¼ per cent.18,000
Total £.11.900,505

It must be seen, that this account is imperfect and defective. It is, however, sufficient to prove, that the whole money raised DIRECTLY by the taxes, (exclusive of tithes, county rates, and the taxes which support the poor,) cannot be much less than Twelve Millions. The Earl of Stair has in his papers made it to be above 400,000l. more, by including in his estimate several articles which I have omitted; particularly, the interest and management on the equivalent to Scotland, the Scotch crown Revenues, Dutchy of Cornwall and Lancaster Fines, &c. He has also given an estimate of the fees and perquisites of office of every kind, and reckoned them at half a million; whereas, I have only reckoned the perquisites of office at the Custom-house.

I should be inexcusable were I to quit this subject, without taking notice of the particular gratitude due from the public to Lord Stair, for publishing his papers; and for stepping forth at this time to draw attention, by the weight of his name and character, to calculations, which, as he justly says, “it becomes every man of property among us to understand; to awaken the nation from the lethargy into which the mockery of paper wealth has plunged it; and to bear his testimony against the present unnatural war.”