THANSACTIONS OF SECTION F. 



677 



1. Absolute fairness, the debt being necessarily repaid with 100/. for each such 

 sum nominally borrowed ; while the element of chance introduced by the drawings 

 renders it absolutely impossible to favour the redemption of any particular bonds. 



2. The investment must be returned at some uncertain, but not distant, date, 

 and until its repayment regular interest ia received. It is on this question — the 

 preservation of wealth — that this system so immensely preponderates over its ri^•al, 

 the terminable annuity. The one promotes extravagance and injures posterity ; 

 the other inculcates thrift, and safeguards the rights of future generations. 



3. The principle is susceptible of unlimited modification, the magnitude or small- 

 ness of the debt being of no account one way or the other, except that small sums 

 are always more readily handled. 



4. The sinking fund is absolutely inviolable, and owing to this characteristic 

 may commence at a fractional sum; juJuuth part of the principal will redeem a 10 per 

 cent, debt in seventy-three years; while j^^o^h part will suffice to repay a 5 per 

 cent, debt in eighty-one years. The attention of statesmen and economists should 

 be more earnestly directed to the various phases of this truly grand financial evolu- 

 tion. In England especially it has been neglected for the study of antiquated and 

 malevolent schemes, and the outcome is that, having paid the debt six or seven 

 times over, we still owe 780 millions. Large as the debt undoubtedly is, its liqui- 

 dation would not be difficult to a nation of such vast resources as England, provid- 

 ing that we at once discard the present amusement of ' playing at repayment,' and 

 adopt, in lieu thereof, a grand and invincible principle. We can well afford the 

 luxury, as by so doing taxation is instantaneously reducible by a couple of millions 

 sterling, while the ultimate extinction of the debt is uncontrollably assured. 



5. By periodically checking the cumulative sinking fund provision can be made 

 for a rapid reduction in taxation. 



In the above epitomised summary of the salient features of the leading financial 

 principles, it will have been observed that I lean strongly to the last, although the 

 novel scheme of liquidation I now promulgate is equally applicable, by either of 

 the three. Perhaps the most valuable lessons may be taught the inhabitants of 

 Great Britain, if I address my remarks almost exclusively' to the subject of our 

 stupendous encumbrance. 



Space prevents more than a summary being given of the periodical paj'ments 

 required, by one or two plans. I exhibit the amounts, first at per million of debt ; 

 secondly, for the funded debt ; and, thirdly, for the total of the gross debts. 



S IT M M A R T. 



