able 17th of February in that year, when he moved the cessation of certain taxes, he said, as to the operation of the Sinking Fund, "his mind was relieved from all doubt on the subject, by the Act of 1786; the sum of four millions was originally fixed on as the limit for the Sinking Fund, but the Interest of the Capital, which it thenceforth may redeem, is to be left open for the disposition of the parliament it was not then 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 would amount to three millions. But as he proposed additional sums beyond the original million to be annually issued from the revenue, and applied to the aid of the Sinking Fund, the consequence would be, if that sum were still to be limited to four millions, it would reach that amount, before as great a portion of the debt is reduced as was originally in contemplation. In order to avoid which consequence, he should propose, that whatever may be the additional annual sums applied to the reduction of the debt, the fund should not cease to accumulate till the interest of the capital discharged, together with the annual million only, and exclusive of any additional sums, amount to four millions.

"But he confessed, notwithstanding the then prosperous situation of the country, the sinking fund ought not to stop there, although 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. 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 confine 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."

I have quoted Mr. Pitt's opinions as an authority against Mr. Vansittart's plan, for if Mr. Pitt considered, when the Debt redeemed should even be in proportion to the remainder of the debt as 5 to 12, we ought not to confine its operation, still less would Mr. Pitt have recommended it to be broken in upon when its proportion is only as 4 to 15.

In the year 1798, the national debt having greatly increased (it was then about half its present amount) the mind of Mr. Pitt was led to consider the best mean of increasing the sinking Fund in order to raise the funds from the state of depreciation' at which they then were; by enabling the sinking fund to increase and keep pace with the debt, and preventing the possibility of any future loans causing any material fall in the price of the Stocks. Mr. Pitt had seen the price of the three per cents at £90, and knew by experience what little progress was made in the reduction of the national debt in a time of peace. The redemption and sale of the Land Tax appeared to him most beneficial in its results, as it would increase the capital of the sinking fund, raise the then advantageous price of the Funds, and redeem a considerable portion of the debt, and thereby give security to the stockholder by its powerful operation that no material depreciation could ever take place in the price of the public funds.

I assert, without fear of contradiction, that the fall in the price of the funds about two years since was occasioned by a considerable addition being made from year to year to the national debt by the funding of Exchequer Bills and no addition being made to the Sinking fund in proportion to the

The three per cents were very near as low as £47. per cent.

increase of the debt, it being Mr. Pitt's anxious wish that the increase of the sinking fund should always be in proportion and keep pace with the increase of the debt. It is but justice to Mr. Vansittart to acknowledge, that he has provided for the redemption of Exchequer Bill Loans.

The system established by Mr. Pitt has been tried. It no longer rests upon theory or reasoning: it is recommended to us by the surest test-Experience: it has removed the apprehensions of the despondent by raising and maintaining the three per cents at their reputed value; it has given the stockholder security and relief by taking off the Market from time to time such a portion of the funds as the vast capital and increase of the national debt naturally brought for sale; and its operative utility was not confined merely to the relief of the Stock market, but it made money easy to be obtained; and thereby the Commercial part of the Country was assisted and encouraged in their mercantile labors.

From the magnitude of the Sinking fund, and its effect upon the Market, the Minister has been enabled to raise the necessary Loans at a very low rate of Interest; and taxes have been consequently the less; and should the war continue for some years, the Commissioners might have possibly become, from the continued operation of Mr. Pitt's system, the Contractors for the Loan, and Exchequer Bills return to their original source of being an anticipation of the receipts of the revenue, and not a debt to be got rid of by funding.

There are objections to Mr. Vansittart's Plan, which have much weight, particularly our probable situation in the year 1817, when additional taxes must be imposed to defray the interest of new loans, should the war continue; and in that event we shall have added to our national debt £112,000,000 Sterling, and the Sinking fund under his system will be £7,000,000 per annum less than under the present one; consequently, the average excess of our ex

penditure will then amount to 21 Millions per annum. This is not pursuing the safe system of equalizing the receipts with the expenditure of the Country, because we shall be more than 21 millions per annum short of so desirable an object.

Should the war continue, there is another objection to the interruption of the sinking fund, of great importance. In seven years, we must presume upwards of 60 Millions of Stock will be brought to market, and purchased by individuals, which under Mr. Pitt's system would have been redeemed by the Commissioners : the abundant supply of Stock arising from loans,' with a demand short of 60 millions will inevitably produce a serious, if not an alarming depreciation in the price of the public funds.

I believe that the Honorable gentleman has been impressed with the strong probability of a general peace; but should the war be procrastinated, the evil effects of his system will be felt by all classes of society throughout the kingdom; and I believe no man will feel greater regret, than the Honorable gentleman himself, that he had, by temporizing with the revenue and public credit of the nation, undermined the 17 years labor of Mr. Pitt. I hope the Honorable gentleman will feel the force of this statement. Facts are stubborn things; and it will give me the greatest satisfaction to find him not so prejudiced to his system, as to resist the force of Truth.

Highbury Place.

In seven years £200,000,000 sterling will be added to the debt.