Such is the basis upon which I propose to your majesty to create anew the sinking fund. Then, this institution, a truly national institution, will realize the sanguine hopes which are attached to its destinies. The tables annexed of the effects of the sinking fund calculated during an interval of twenty years, and with means inferior to those which are now to be placed at its disposal, may give an idea of the degree of prosperity which it may reach, when it shall have full scope and ample resources. Thus, sire, have I fulfilled the duty which devolved upon me, by placing under the eyes of your majesty the situation of your finances. I have concealed none of the afflicting features which it wears. The resources of 1814, and of 1815, are exhausted, and there re | mains to be paid arrears amounting to 625 millions. The budget of 1816 cannot cover its expenses but by a considerable addition to taxes already so heavy. Corroded by regrets for the past, bent under the weight of the present, we must look to futurity for consolation. Let us hope that peace, which has cost us so dear, that the restoration of order and of domestic tranquillity, that the union of all Frenchmen in one sentiment, will accelerate the term of our sacrifices. This hope is in the heart of your majesty. Heaven owes it to your virtues to realize it. The Minister Secretary of State for the Department of Finance. COUNT CORVETTO. BRITISH FINANCES, For 1815 and 1816. THE Chancellor of the Exchequer, in rising to submit to the committee the terms on which he had contracted a loan that morning, could not but regret that circumstances had made it necessary for him to propose that a provision should be made for the prosecution of a war on the most extensive scale, while the country was yet labouring under the burthens thrown upon it by a former contest. It would be in the recollection of the committee, that but a few months had elapsed since that house was employed in debating what provision would be necessary for the peace establishment of the country, and by what means the nation should be gradually released from the charge of the expenditure imposed upon it by the events of the late struggle in the cause of Europe. Scarcely, however, had the ratification of the treaty of of peace with America arrived, before circumstances occurred which had led to a renewal of the war with France. The circumstances which had attended the landing of Bonaparte in France were of a nature so extraordinary and unprecedented, that they could neither be by possibility foreseen, nor prevented by any act of the British government; and they were felt throughout Europe as an electric shock, which in a moment rouzed all its nations into arms. The declaration of the allies of the 13th of March, issued at a time when it was not possible for them to have had any communication with this country, proved that the impulse had not been given by England, but that it was the opinion of all the great sovereigns on the Continent, that with a government like the present government of France, whose authority rested in no rightwhich was founded on oppression at home, and insatiable ambition abroad-there was no safety for them but in war; satisfied as they were, that such a power would labour to effect the subjugation of Europe, if it were not overpowered itself. This country had at that time made some progress in the reduction of its expenditure. The American war was at an end; but at the same time large demands were existing against the nation. Though this war was closed, it was still necessary to provide for the return of our army from America, and also for the paying off of the large arrears which remained in consequence of that contest in Europe which had preceded it. These circumstances being taken into the consideration of the committee, they would not wonder that a loan, in its amount beyond all example, should be called for; and he trusted that it would not be thought too great, when it was remembered that it was intended to meet not only the charges of a new war in which we were engaged, but also to extinguish the arrears of an old one. Though he regretted the necessity for it, still he could not but derive some consolation from the reflection, that the manner in which it had been raised would prove to the world how large were our resources, and how prosperous the state of the country. Undoubtly it was satisfactory to him, that great as the sums called for were, and extensive as were the charges which the country had to bear, he had no reason to comment in detail upon the different articles which caused this expenditure, as they had already undergone the consideration, and for the most part received the sanction of Parliament. He had only to recapitulate the supplies which had been granted; and what were the means by which it was proposed that they should be met. There might be some further expenses to be provided for, which in the course of his statement he would take an opportunity to point out. The total amount of the charge for the service of the Davy for the present year was 14,897,000l., and for transports 3,747,000l. making together the sum of 18,644,000l. Here, however, it was to be observed, two millions were to be included for the repayment of the navy debt, and which, therefore formed no part of the service of the current year. The different expenses on account of the army amounted to 13,876,000l. The arrears of the extraordinaries unprovided for, were 11,983,000l. For the extraordinaries of the current year, including Ireland, a sum of no less than 12,000,000l. had been voted. The charge for the barrack service was 99,000l., which had not yet been voted, but which would be proposed in the committee of supply the same evening. This sum would appear uncommonly small; but he would shortly assign the reasons which might be expected to render it sufficient, and any further circumstances requiring notice would be fully explained by his right honourable friend in proposing the vote. The total amount of the sums called for on account of the barrack service was 250,000. The difference between the sum last mentioned and the 99,000l. proposed to be voted, was occasioned by a saving arising from the sale of the old stores, and of barracks no longer necessary for the public service. The commissariat caused a charge of 1,100,0001,: the store-keeper general one of 91,000l.; giving a total on account of the military ser vice, of 39,150,000l. For the ordnance service, the supply was 4,431,000l. For the expense of subsidies this year to the allies, the house had voted 5,000,000. They had also voted 1,653,000/. for the repayment of the bills of credit created under act of 1813; but there remained other expenses to be provided for, arising out of the deficiency of the force which we were bound to maintain on the Continent by the additional treaty of Chaumont, and out of some other subsidiary engagements. On account of the supplementary convention of Chaumont, (he was not sure the sum he was about to name was quite correct, as the accounts were not finally made up, but he was satisfied it would prove nearly accurate), there was a charge of 370,000l. To complete the subsidies granted to Austria under former treaties, a sum of 400,000/. was necessary. This arose partly from the circumstance of some stores which were intended to be delivered for the Austrian service, having been otherwise employed; and of some other stores having been charged in the subsidiary account which it had been agreed to omit, and the value of which in both cases was consequently to be made up in money. The greater part of this sum had already been paid, and the account had been laid before the house. He had stated the bills of credit voted by parliament, to amount to 1,650,000l. There remained the sum of about 200,000. to be made good to complete the two millions and a half, which we were bound to provide by the treaty, together with the interest | due; but for this sum he should not propose any vote in the present session, as its amount could not exactly be ascertained, depending on the course of exchange. There was also due to Russia on engagements contracted during the former war, the sum of about 530,0000; 100,000. had been paid to Spain, and 200,000l. to Portugal, on a similar account; and a sum was also due to Hanover. He considered himself as justified in stating the supplies for these services, the accounts of which were under the examination of the house, to amount to about 3,500,000.; which, with 1,000,000. voted as a compensation to Sweden for the cession of Guadaloupe, made a charge of 4,500,000l. for foreign expenditure; of which, about 4,000,000. would be payable | within the year, in addition to the 5,000,000. voted as subsidies to the three great powers, Austria, Russia and Prussia. The total amount therefore of the charge for foreign payments, including bills of credit, was 9,000,000. He should have besides to propose to parliament a vote, to make good to the army which had fought under lord Wellington the amount of the value of stores captured by them in different fortresses. This charge, not being altogether of an ordinary nature, would require some explanation; but he trusted that, though considerable in its amount, it would be received with | favour, in consideration of what that army had achieved for the glory and advantage of their country. On the reduction of a fortress an estimate was commonly made of the value of the stores captured, which were applied to the public service, and afterwards accounted for to the captors. During the war in the Peninsula, the ac count had been kept in the usual manner, but no payment had yet been made; and from the extent of the service performed in the course of a war which had continued for seven years, this charge formed a considerable item; it was estimated at eight hundred thousand pounds: to this the sum of 142,000l. was to be added, for the stores and artillery taken at the capture of the island of Java. It was proper here to observe, that in the operations against that island, no part of the royal artillery was employed. The artillery which was used there was directed by the officers of the East India company's establishment; and therefore the usual certificates, signed by the officers of the royal artillery, could not be obtained. In all other respects the ordinary forms had been observed, and the captors appeared to be entitled to the same remuneration as had been made in other cases when fortified places had been captured; but though the service performed was thought to come within the ordinary principles, and though the honour and accuracy of the company's officers were as unquestionable as their skill and gallantry, the ordnance department had thought proper to issue an order for the payment of the sum which appeared due, without first having the special authority of parliament to do so. He now came to the miscellaneous services. Of The vote of credit intended to be proposed this year was to the extent of 6,000,000l., and would be made good in the usual way, by an issue of exchequer bills to the same amount. Anxious, however, that there should not be too great a pressure on these securities, he should propose a reduction of three million from those voted last year, besides the repayment of 5,000,000l. issued on the last vote of credit; by these means the sum paid off would be equal to that which it might be necessary to issue in the course of the present year. When it was foreseen that an expenditure to the VOL. I. immense amount which had now become necessary, must be provided for in the course of the present session, an important consideration arose, whether it would be better that an extraordinary exertion should be made to raise an unusually large proportion of the supplies within the year, or whether it would be preferable to call on the public only for what they had been accustomed to pay in formér years, and raise what remained wanting by means of a loan. Much might be said in favour of either course. For his own part, he had no hesitation in declaring that if he had considered it probable that a similar expenditure would be necessary in future years, he would at once, whatever the hazard might be, have made an appeal to the spirit and magnanimity of the country; and from such an appeal he was sure the country would not have shrunk. From the feeling which had been manifested in conséquence of the recent events, he was satisfied that those measures, which the wisdom of parliament might think necessary to the honour and security of the country, would be cheerfully submitted to. But thinking as he did, that an expenditure to the amount of that of the present year, was not likely again to recur, even if the war should continue on the present scale, which was what he could not anticipate, he had thought it wiser to have recourse to no other means than those which it had been usual for Parliament to adopt on former occasions. However large the demand which had in consequence been made on the credit of the country, he saw no reason to regret this resolution. The right honourable gentleman now proceeded to state the ways and means which would be, in the 3 D |