mary object in his mind, when he formed this plan, to guard against the possible alienation of the sinking fund to any other purposes whatever. In 1792 he brought forward a plan, of which the great est recommendation was this, that the principle of redemption was interwoven with the debt itself—that the moment any debt was contracted, that debt furnished out of itself the means of repayment within a limited period. This Mr. Pitt had insisted on as its principal recommendation; and this very feature had been made a ground of objection, inasmuch as it placed the reimbursement of the debt incurred out of the reach and beyond the control of parliament. The effect of the clause to which he had referred was simply this, that some such redemption was to take place as should liquidate the debt in 45 years; and that whenever any loan was made, from thenceforth there should issue from the exchequer, as a matter of course, from which there could be no deviation, a sum equal to a hundredth part of the capital stock created. The government might say they would pay it off by instalments quarterly, or by raising a sinking fund, not immediately, but within the time prescribed, so that the loan might be repaid within 45 years: but failing in either of these modes, then the one per cent. must issue as a matter of course from the exchequer. The principle on which the rate of one per cent. had been fixed upon was this, that one per cent. in three per cent. stock would reduce the whole 100 in about 45 years. At the period when the act passed the public debt consisted chiefly in three per cent. stock; consequently, the sinking fund accumulating at three per cent, would reduce the

whole amount of debt contracted in 45 years, but not sooner; so that this period of 45 years was fixed upon as a sort of maximum of time in which the sinking fund, if not acting with accelerated velocity from the depression of public credit, would necessarily reduce the public debt. Since the period of 1792, whenever any debt was contracted, this was understood to be the basis of the agreement between the chancellor of the exchequer and the contracting parties; or, if he did not tell them so, the law did, that the one per cent. would issue as usual. If the funds were at par, it would clear the debt in 45 years: in proportion as they were depressed, the period would be accelerated. At the time when many of our loans were contracted for, the funds were at a depression that would give to the regular operation of the sinking fund the effect of a two per cent. issue, and pay off the loan in about 23 years: consequently, the lenders were induced and compelled to give the public better terms. This was the advantage on the side of the public; and the advantage and the obligation were surely reciprocal. If he had succeeded in making himself intelligible, the application was obvious. All loans since 1792 had been made on the option of one per cent. This was the foundation of that system. But the foundation of the present plan is, that parliament is at liberty so to modify and regulate the redemption of debt incurred since 1792, as to extend it to the full period of 45 years, instead of the shorter term (in some cases one-half) at which it would otherwise have been reduced. If so, then the question of public faith arising is this, whether, having made the option of one per

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cent., and having derived a benefit from this, the issue of that one per cent. does not infer a plain duty? The words of the act of 1792 were so plain, that he thought it useless to explain them to the committee. With regard to the grand object of postponing the imposition of new taxes, the plan in the opinion of his right honourable friend might possess advantages which Mr. Huskisson could not discover; but all the minor calculations of benefits seemed calculated to perplex, and to withdraw the public attention from the real design. Those advantages were stated to be four: 1. That this plan provides for the gradual and equal reduction of the national debt. 2. That it provides against the evil of too rapid a di. minution of the rate of interest. 3. That it affords a subsidy of 120 millions for the immediate purpose of carrying on the war. 4. That it enables government to accumulate after the conclusion of the war a further treasure of 100 millions, as a provision against future hostilities. The last-mentioned benefit was stated to be an advantage that no other country in the world ever enjoyed. The chancellor of the exchequer seemed to think, that too much had already been done for the reduction of the national debt, as if he forgot that there yet remained 600 millions unredeened; and at the very time when we were increasing that amount, by borrow ing in every year twice as much as had been usual, it was proposed to reduce the means of liquidating it to one-half its present power. In two years a debt had been incurred that could not be liquidated in six years; and yet it was recommended that the means of defraying it should be lessened in the proportion of one-half. For the service

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of the present year, a loan would be required of little less than 40 millions, including the sum for India and yet this was the period chosen for putting a stop to the re duction of the national debt. All the recent fortunate events on the continent, all our successes in the peninsula, had not enabled the chancellor of the exchequer to raise a single pound, much less 40 millions, at the legal rate of interest; and yet this was the period selected for a financial experiment. Last year, his right honourable friend had been called upon lend his aid he was desired to visit and examine the patient; he reported that he found the pulse of the nation in a very low stare; something must be done, and he promised a restorative that would restore the patient to all the former vigour of his constitution. He had now visited the sick for the second time, and what was the report he made? "Why," said he, " upon turning the case over in my mind, it strikes me that there is something in your constitution, that, about the year 1830, may, if care be not taken, expose you to the inconvenience of repletion; therefore, instead of the powerful invigorating restorative that I promised you inconsiderately, I must prescribe an immediate copious bleeding. To be sure, I see you are in a very weakly state, but you must be instantly phlebotomized; there is nothing like it for restoring a man in a consumption to health, and this bleeding must be followed by three others in rapid succession! Such was the prescription of his right honourable friend; but every other man in the profession dreaded the most fatal conse, quences from such mistaken treat ment. When this magnificent and astonish

astonishing scheme was first ushered into the world, Mr. Huskisson had imagined, that his right honourable friend had done nothing less than made a discovery of that which many had lost their lives to obtain, the philosopher's stone, which was to obtain for himself and his friends the title of the golden administration: at least, it might have been concluded that, in the diligence of his search, the chancellor of the exchequer had disco. vered a hidden treasure in some secret drawer; but little was it imagined that the whole plan was to accumulate fresh debt, and that the hopes of millions were to be disappointed by the destruction of the funding system. He talked of accumulating treasure such as no nation ever before possessed: true, and for this reason, because no nation was ever qualified to possess it, since the necessary preliminary was to run into debt: this was the first time he had ever heard that the way to become rich was to involve yourself as deeply as possible in debt: such a treasure any other country never did possess, never would wish to enjoy, and never would envy us the accumulation of. The right honourable gentleman seemed to make no distinction between incurring debts and amass ing wealth: because we were gradually devoting a certain sum to pay off incumbrances, it was immediate ly concluded that unbounded wealth was pouring in upon us from all quarters. The right honourable gentleman ought to be informed that the national debt was not wealth, but the melancholy record of wealth consumed. He admitted that this plan would postpone the necessity of raising taxes; but he warned the house against rejecting the experience of former 1813,

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parliaments upon this subject: the utmost extent of the postponement would be three or four years: and in alluding to this part of the subject, the right honourable gentleman made a statement which appeared somewhat paradoxical, that at the end of the period the country would find itself with a debt greatly increased, and yet with the charge upon the debt rather diminished; for it was impossible in 1830 that the debt should not be much greater if the means of dimi nution are lessened. [We regret that our limits do not allow us to follow the honourable gentleman in his very luminous speech.] He concluded by saying, that one of the arguments of the chancellor of the exchequer, in support of his plan, was rather an argument against it. He had said that, in the last session, the prospect of the country in the north was gloomy than at present, that there was but little expectation that Russia could successfully oppose France, aud that the continental system would not be fully established; and now, ed; and now, with well-grounded exultation, he had adverted to the successes of the Russians, and the probable revival of commerce. If our resources had been in the con dition which they must have been reduced to if the efforts of Russia had been unsuccessful, it was natu tural to have called for vigorous measures; but on what ground was our system now departed from, when our commerce was reviving, and when notwthstanding that public credit was not at all improved, as his right honourable friend would perceive by the inability of negotiating a loan on the same terms for the present as for the last year? He was ready to admit the difficulties under which

his right honourable friend laboured, and should be very willing to do his best to alleviate the burthen. As he had so long detained the house, it would be perhaps better to leave his own opinions untouched. There were in the circumstances of the war, however, means of relief not available in time of peace, and among these was relief to be expected? In the year 1819, continued the honour. able gentleman, no very distant period, the imperial annuities would fall in; and in 1821, the whole of the charge of the year 1807 would also fall in. If peace were to be restored, the five per cents might be reduced to a lower rate of interest, by which a saving of a million would be ef. fected. He would not be disposed to go the whole length with his right honourable friend with respect to the sinking fund. He wished them to avail themselves, during the war, of the resources which the war itself furnished. The situation of the country was this: there was a temporary revenue which was co-extensive with the war. The permanent revenue could not, with safety, be touched till the temporary revenue ceased to be available. What objection could there be, instead of breaking in on the sinking fund, by which the security of the public creditor might be affected, to the exchanging of a portion of the war taxes with a part of the sinking fund? His right honourable friend, in the speech with which he introduced the subject to the house on a former evening, said he was ready to lay down his life in the cause of his country. No one who knew him could doubt either the patriotism or the fortitude of his right honourable friend. It occurred to him,

however, that this sentiment had arisen in his bosom, when he was contemplating some very different measure from the present. When he had thoughts of following up the vigorous measures, which he announced at the close of the last parliament, and which he supposed would draw down upon him a great deal of clamour and unpopularity, it seemed to be the prologue to a drama of a very diffeient description from that which he had at last thought proper to bring forward. The measures which he had at last proposed were by no means new in the history of this country. Something similar had been done by a chancellor of the exchequer of a very different description from his right honourable friend, sir Robert Walpole. his right honourable friend yielded to the temptation which his measure held out to him, he might procure to himself a short period of delusive peace, but he must not expect to be honoured with the praise of fortitude, or the crown of martyrdom: while imitating the conduct of Caesar, he must not aspire to the fame of Cato.

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Mr. Vansittart replied, and a long debate ensued; after which the resolutions were agreed to, and the report ordered to be received.A bill was afterwards brought in in pursuance of the report, and was with modifications passed into a law.

March 30.-The house, on the motion of lord Castlereagh, resolved itself into a committee on the affairs of the East India company; and Mr. Warren Hastings being called to the bar, and a chair being provided for him,

Mr. Adam, as counsel for the East India company, intimated his intention of examining him touching two points, viz, as to the effect

which the free admission of Europeans to reside in Hindostan would be likely to have on the state of that country; and as to the probability that at any future period such a change might be effected in the habits of the population of India, as would produce a greater consumption of European commodities than now took place there. The learned counsel then proceeded in his examination, first desiring to know if Mr. Hastings, while residing in India, had observed the effects resulting from the residence of Europeans in India -Mr. Hastings said he could not speak as to the Carnatic; but that, gene- rally speaking, he was of opinion that if Europeans were to be permitted to sojourn in India accord. ing to their own pleasure, and without any restraint whatever, the effect would be most ruinous to the government, the interest of the company, and the peace of the country. The Hindoo was feeble in body, and timid in spirit; and, in consequence, liable to be much depressed by the bold and daring spirit of Englishmen, whose very name was to them a sufficient protection; who, relying on the countenance and support of each other, committed offences which they would not dare to commit at home; and, in short, were enabled to practise all the excesses of despotism. To other questions of a similar import Mr. Hastings replied, that the unrestrained residence of Europeans would undoubtedly give birth to many acts of tyranny and oppression which would be extremely prejudicial to the British power in India, inasmuch as it would render the Hindoos disaffect ed to the British government, and would thus afford a strong temptation to the neighbouring states to

invade the territories which were subject to it.-Mr. Adam then asked, whether he was of opinion, if a free intercourse were permitted with India, that regulations could be devised, by which Europeans could be compelled to reside within certain limits in the principal settlements? Mr. Hastings thought that Europeans, not in the company's service, might be so restricted, and the introduction of private traders would be attended with no injurious effect, if they were amenable to the company; but if adventurers were empowered to go out without being so amenable, he conceived that it would lead to such an unrestrained sojournment of Europeans in all parts of India, as must be highly dangerous to the power of this country in India. He did not mean, he said, to speak of the effects of a free export and import trade with India, as unconnected with residence; but if Enropeans were allowed to go where they pleased in the country, it would be extremely injurious to its safety and tranquillity. Mr. Adam next proceeded to the second of the two points to which he had proposed to confine his examination, viz. the probable increase of the consumption of European commodities in India. Mr. Hastings stated, that the habits of the Hindoos were simple, and their wants few, being confined to a rude dwelling, their food, and a proportion of cloth, which latter articles were obtained at their own doors, and with very little cost. The Mahometans were not able to purchase many articles, they were in a very impoverished state on the whole he was of opinion that no material increase of consumption could be expected. Mr. Adam then asked in what manner the natives of India disposed

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