DEBT, NATIONAL. 



flition to the sinking fund, the yearly pro- 

 duce of which, on an average of ten years 

 previous to this augmentation, was 

 1,356,578/. ; an income sufficient to have 

 effected a very considerably diminution 

 of the public debts, if it had been strictly 

 applied to the purpose for which it was 

 designed; but being constantly taken 

 towards the yearly supplies, scarce any 



Srogress was made in the reduction of the 

 ebt. 



The total amount of the national debt 

 at the commencement of the seven year's 

 war, in 1756, was 74,980,886^ ; and as 

 the increased expenditure, beyond the 

 charge of preceding wars, which is one 

 of the inevitable consequences of per,pe- 

 tuating taxes, rendered it necessary to 

 borrow larger sums than had ever be- 

 fore been raised on loan, the debt in- 

 creased rapidly, and at the end of the 

 war, including the loan of 1763, and a 

 valution of the terminable annuities, it 

 amounted to 136,367,757^., exclusive of 

 the unfunded debt. 



After the peace in 1763, the income 

 of the sinking fund increased considera- 

 bly. The causes of this were, partly the 

 falling in of life annuities, and the greater 

 productiveness of the taxes arising from 

 the increase of commerce and population. 

 But the principal cause was, the falling in 

 of the interest of about ten millions and a 

 half of the public debt, which was dis- 

 charged during the twelve years of peace 

 ending with 1775. This diminution of 

 the public debt could not, however, be 

 said to be made by the sinking fund, as 

 other sources supplied the principal part 

 of the amount : these were, a contribution 

 from the East India Company of 400,000/. 

 per annum, begun in 1768, and continued 

 for five years : the profits of ten lotteries ; 

 the composition agreed to be paid by the 

 King of France for the maintenance of 

 French prisoners ; monies arising from 

 the sale of French prizes taken before 

 the declaration of war, and other extraor- 

 dinary receipts, amounting in the whole 

 to above eight millions. The sinking fund, 

 therefore, did not pay off more than two 

 millions and a half, the rest of its produce 

 having been employed in bearing the ex- 

 pences of the peace establishment, which 

 during that period were not much less 

 than double what they had been in any 

 former period. 



At the commencement of the American 

 war, then considered as litte more than 

 a partial insurrection, which would be 

 speedily suppressed, the resources and 



perseverance of the colonists were much 

 underrated : it was not, therefore, deemed 

 necessary to incur any great expense for 

 the purpose of subduing them ; but when 

 the interference of France extended the 

 operations of the war in all directions, ve- 

 ry serious exertions became requisite, and 

 the expenditure was in consequence aug- 

 mented far beyond its amount in former 

 wars. The sums which it was necessary to 

 borrow thus increased from two millions 

 to five, seven, and twelve millions, and in 

 1782 the loan was thirteen millions and a 

 half. The apparent magnitude of the 

 debt was also much increased, by the 

 practice of entitling the subscribers to the 

 loans to a larger capital of stock than the 

 money advanced, by which means, for the 

 total sum of 75,500,000/. borrowed during 

 this war, including the loan of 1784, a 

 debt was created of 97,400,000/. exceed- 

 ing the- money borrowed by 21,900,000/. 

 The interest payable on the whole amount- 

 ed to 4,119,125/. per annum, being equal 

 to 51. 9s. Id. per cent, on the sums, borrow- 

 ed. In addition to these sums, a very con- 

 siderable amount of navy debt was funded 

 after the conclusion of the war, which, be- 

 ing properly part of the expenses of it, 

 makes the total debt incurred by the A- 

 merican war amount to IJ.5,267,992/., and 

 the interest payable thereon 5,012,562/. 

 per annum. 



The total amount of the national debt, 

 funded and unfunded, including a valua- 

 tion of the terminable annuities at theiir 

 current prices, was, on the 5th January, 

 1786,, 268,100,379/. and the amount of 

 the annual interest 9,512,232/. At this 

 period, the general conviction of the ab- 

 solute necessity of some provision being 

 made for the gradual reduction of the 

 debt, induced government to propose 

 the establishment of a new sinking fund, 

 under regulations which rendered it a | 

 considerable improvement on the fund 

 formerly established for the same pur. 

 pose. But although the revenue was 

 represented as sufficiently productive to 

 furnish a considerable surplus for this 

 purpose, which, with a few new taxes, 

 would amount to a million per annum, 

 it was* found necessary in 1789 to bor- 

 row, towards the supplies, 1,002,140/. on 

 a tontine, and 187,000/. on short annui- 

 ties. 



The total amount of the national debt, 

 as it stood in 1792, being the year pre- 

 vious to the war with the French re- 

 public, was, according to the official 

 statement, 238,231,248/. ; but, including 



