ever may be the deficiency of public income upon the present system, but would be subject to reduction by the gradual and final extinction of the amount of stock, 350 millions, and annuities for lives and for terms of years, one million eight hundred thousand pounds,' in respect of which, the annual sum of thirteen millions is entered in the statement. The means suggested for this purpose are an impost on British Colonial and Asiatic property for a term of years to be limited, so far as such property can be subjected thereto; in effect, an income tax. The appropriation of any eventual surplus of taxes. The amount of stock which may for ever remain unclaimed. The probable greater amount of the private property than 2,500 millions. The expiration of annuities for lives or for terms of years.* The impost on Colonial and Asiatic property would be in immediate effect, in respect of property consigned and remitted to this country. The excess of duties and taxes would also be effective, if the duties and taxes, according to the present rate of production, should be fixed at thirty-one millions, as proposed in the statement; in proportion as the demand, in respect of the sum of thirteen millions, therein mentioned, might decline, by the progressive liquidation of the debt, an excess of revenue would arise. That excess would also be greatly increased by the greater produce of the continuing duties and taxes, and a large and progressively increasing surplus would become applicable to the liquidation of the remaining debt. In order not to incur the risk of stating the figures too favorably, the sum of thirteen millions is stated at upwards of half a million more than the probable sum to be required for the payment of the public creditor. The excess, if not required by the public creditor, would become applicable to the discharge of the principal debt, and the increasing surplus would be applied in like manner. As the debt might be reduced, and as the continuing duties and taxes might become more productive, in like proportion would the remaining debt yield to the force of this combined action. If the debt should at any time be reduced to ten mil Elements of a Plan for the Liquidation of the Public Debt, p. 14. Annuities for 229,958l. 12s. 4d., created in 1795, expired on the 1st May, 1819: since the date of the account cited therein. 2 It is also suggested, Elements of a Plan, &c. p. 11, that the impost of 15 per cent. might be continued in respect of property to be acquired within the United Kingdom, after the deduction of all expenditure, until the final liquidation of the debt; but it does not appear to be probable that recourse to that measure would become necessary. lions per annum, and the duties and taxes (now estimated at thirtyone millions) should produce thirty-four millions, which is an advance of ten per cent. only, for improved circumstances, the sum applicable, in this case, to the reduction of the debt, from this source, would be six millions, and in the following year would be more, because the amount of the dividends on stock would be less. The effective power of liquidating the debt, under this head, would be considerable. The amount of stock which may remain for ever unclaimed, would constitute a further annual sum in reduction of the amount of stock, in respect of which dividends would be payable; and under the great actual reduction of the debt, and the progression towards the liquidation of the whole debt, it might be considered justifiable, not to continue to issue dividends from the Exchequer to the Bank of England, in respect of stock whereon the dividend remained unclaimed for three successive issues: such dividends, when claimed, might become the subject of notice one month before a half-yearly issue, and then be issued from the Exchequer accordingly. The contribution of fifteen per cent. on the probable greater amount of private property in the United Kingdom than 2,500 millions cannot be relied or insisted upon as a resource; but persons of considerable information and respectable judgment are of opinion, that the private property exceeds that sum very considerably: the assessment of fifteen per cent. on the excess, if any, would accelerate the discharge of the remaining debt. Of the annuities for lives and for terms of years, amounting to one million eight hundred thousand pounds, one million three hundred and fifty thousand pounds will expire in the year 1860, The relief under this head, if not rapid, is certain. In considering the operation of the measure, two particulars press upon the attention. First-The care and protection due to the holders of goods whereon the duty may have been paid. Second-The sufficient advancement of the object, to assure the receipt into the Exchequer of the equivalent from property for the sum of fifteen millions duties, or duties and taxes, to be remitted before the operative repeal thereof. The first particular might be met, by not giving effect to the repeal of the duties until, at least, three months after the enactment of the repeal, and by returning the duty on the stock remaining on hand at the expiration of such time. The second must depend upon the activity with which the assessment on property might be fixed; for which purpose the extensive information and experience of the government, in the instance of the property-tax, must present great facilities. The rate or price of stock, to be fixed for the liquidation of the debt, has been the subject of much animadversion and discussion. The question is important, and, undoubtedly, admits of two views; namely, The mere construction of the letter of the contract. The application of the principle of equalising the burden of liquidating the debt, upon every description of proprietor, with only a limited regard to the contract rights of the stockholder. 0 10 Under the first view, all stock would settle at the par of 100. Deduct contribution of 15 per cent. Principal sum to be redeemed, at the 15,000,000 0 0 par of 100 £ 665,040,951 3 91 Under the second view, before any rate of price for three per cent. and other low stock be fixed, it is necessary to consider, that these stocks pay less annual interest for the money laid out, than five per cent. stock; and that the holders have elected to compound for less income, because they have calculated upon a superior chance of improvement in their principal, by the probability of greater advance upon the lower stocks, than upon the five per cent. stock. holders have, deliberately and really, made a sacrifice of present advantage upon the calculation (founded on the contract) of the great room for advance on the lower stocks, between the cost of the stock and the principal stock created. The It can only, therefore, be considered reasonable, upon the view now under consideration, to allow an advance or bonus upon the lower stocks, and to take five per cent. stock at a market price. Taking, then, the price of 3 per cent. stock at 681–1007., laid out in the purchase of this stock, will produce, per annum £4 31 per cent. at 77 7.-100l. will produce 2 4 per cent. 88-100 5 per cent. 2 7 7 4 10 4 410 8 4 15 5 If 31. 10s. be added to three per cent. stock, in consideration of Elements of a Plan for the Liquidation of the Public Debt, Table, p. 26. per the difference of income to be derived from 1007. laid out in three cent. stock, and 100%. laid out in five per cent. stock, being seven shillings and ten-pence per cent. per annum, the price will be advanced to 721. And, adding after the same rate of compensation, in proportion to the difference of income produced by the other low stocks, respectively, as compared with five per cent. stock, the prices will stand thus: 3 per cent. stock will be advanced to 4 per cent. £ 79 155 90 7 5 The application of these figures to the liquidation of the debt is shown as follows: |