GENERAL HISTORY. 



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pated. But, were the whole of 

 the outstanding bills, beyond the 

 amount which it must be con- 

 sidered as desirable to keep out- 

 standing during peace funded at 

 once, he had the satisfaction to 

 say, that no addition would be 

 made to the capital of the national 

 debt beyond that at which it stood 

 at tlie conclusion of the war. 

 For gentlemen were perhaps not 

 aware of the progress that had 

 been made by the sinking fund 

 during the peace. Such had 

 been the progi'ess of that fund, 

 that no less tharf 50,000,000/. of 

 capital stock had been reduced 

 by it since November 1815 ; — 

 he meant that the amount of the 

 debt on the 1st of November 

 1815 was 50,000,000/. higher 

 than it was at the moment he was 

 speaking. This reduction of the 

 debt to so great an amount must 

 have had the effect of clearing the 

 market of stock, and of removing 

 the apprehensions arising from so 

 great an annual expenditure. — 

 By the quantity of unfunded debt 

 which it was now proposed to 

 fund, he hoped the money market 

 and the public credit would be so 

 much improved, as to lead to very 

 important ulterior consequences 

 — he meant to the reduction of 

 the four and five per cents. He 

 entertained a hope that the ac- 

 complishment of this desirable 

 object might be looked for at no 

 very distant period. Such indeed 

 Was the improved state of the 

 money market, that although it 

 might not be expedient to pro- 

 pose such a reduction within the 

 E resent year, it might, he thought, 

 e confidently looked for within 

 the next session. But he did not 

 altogether despair of being, able 



to bring forward such a measure 

 even within the present session. 

 He should now state the principle 

 on which the present plan was 

 founded. The object of ministers 

 had been to raise a considerable 

 sum of money for the service of 

 the year without increasing the 

 nominal capital of the debt, by 

 creating out of the 3 per cent 

 stock a stock which should bear 

 the interest of 3| per cent ; 

 while the existence of such a 

 stock would naturally serve ta 

 facilitate the reduction of the 4f 

 and 5 per cents ; for the 3^ per 

 cents would rise to par sooner 

 than the 3 per cents ; and if the 

 holders of the 5 per cents were to 

 be reduced to 4 per cent, instead 

 of this 3^ stock, there might be 

 an apprehension entertained by 

 them that they would be even- 

 tually reduced to 3, which by the 

 terms of the contract for the 

 creation of the 3^ per cent stock, 

 tliey were secure from for 10 

 years. On those grounds he 

 looked to the new stock as the 

 means of affording great facilities, 

 for the reduction of the four and 

 five per cents ; while the creation 

 of that stock produced no addi- 

 tion to the nominal capital of the 

 debt. It was proposed that the 

 new stock should consist of 

 27,000,000/., by which the sum 

 of 3,000,000/. would be raised 

 for the public service, by the 

 payment of 1 1 per cent, on the 

 sum transferred as a compensa- 

 tion for the difference of value 

 between a 3i and a 3 per cent 

 fund. It was also proposed to 

 fund exchequer bills to the amount 

 of 27,000,000/. The terms had 

 already been before the public. 

 The subscriber would have to 

 [H 2] pay 



