have been greatly accelerated, and the term of patriotic hope proportionately abridged. The exact period at which the redemption of this debt will be effected, at every fuppofeable average price, may be feen by the following table; and as the dividends due on fuch parts of the old debt, as fhall be paid off after the finking fund fhall have attained its maximum, and the annuities which shall afterwards fall in, will be at the difpofal of parliament; the period of repealing taxes annually, to an amount equal thereto, cannot be very long delayed. An account of the feveral dates when the old finking fund will have increased to its greatest amount, 4,000,000l., a-year, (adding thereto the 200,000l. annually voted by parliament:) alfo the dates when the whole amount of the debts incurred before the year 1793, will be redeemed, by the operation of the finking fund, according to the feveral average prices at which the three per cents. funds may hereafter be purchased. Excefs above 4,200,000l., in the first year after the old finking fund' fhall attain its maximum, according to the prices of ftocks as under. It is obvious that, in fome cafes, the finking fund will increafe to its greatest amount fooner with the stocks at a high price than at a lower one, by the redemption of the 5 per cents, or 4 per cents. L 2 REDEMPTION REDEMPTION OF LOANS. The finking fund eftablished in 1786, had already been productive beyond expectation, infomuch that on the fifth of April, 1792, when its operation for fix years was complete, the commiffioners had bought in 9,441,850. of the capital of the national debt. It was now, however, thought proper, that, befides that general provifion for buying up the national debt, there fhould be a particular provifion made for the gradual extinction of any future debts to be created. For that purpofe Mr. Pitt wifely availed himfelf of the plan propofed many years before by Doctor Price, by establishing, along with the funds neceffary for paying the intereft of any debt to be created, an additional annual fund of one hundredth part of the capital created. This plan was fanctioned by the authority of parliament, the funds appropriated for it being placed under the management of the fame commiffioners who have the charge of the annual million, the proceeds to be improved in the fame manner. And it was enacted, that when the income of the fund fhould arife to three millions annually, exclufive of the fums paid in from the exchequer, the dividends fhould no longer be iffued, and the capital to that amount fhould be confidered redeemed. This is by far the most judicious, and the most powerful, diffolver of the national debt ever yet invented, and it has the peculiar advantage of bringing the remedy along with the difeafe. This finking fund, and that established in the year 1786, have made a filent but a rapid progrefs in reducing the debt in the fairest poflible way by buying, at the current price, from thofe who are defirous of felling. There need no longer be any of the tumult, vexation, and diftrefs, which have been produced by the violent, not to fay cruel and unjust, measure of compelling any of the national creditors to receive payment, or to fubmit to a reduction of their income. It is alfo a great beauty of this plan, that the higher the intereft of money is, or, in other words, the lower the prices of the funds are, the quicker is the progrefs made in extinguifhing the national debt, or of transferring the dividends from the fellers to the national purfe, for the purpose of annihilating, in time, a portion of the taxes which prefs fo hard upon the community. And a great advantage to all proprietors of the national debt is, that the conftant and large purchafes made by the commiffioners, keep the value of their property confiderably higher than it could be, if fuch large fums were not thus taken entirely out of the market: hence alfo the nation, corporately confidered, derives a great advantage, from thus keeping up the price of the funds, in negotiating new loans on more favourable terms than could otherwife be obtained. By buying only from thofe creditors who are defirous of felling their stock, no one is diftreffed by being compelled, as in fome other nations, to accept an annual payment of one or two per cent., which being too trifling to be reinvefted or employed to any ufeful purpose, ferves only to wither away the capital in the hands of the creditor, and perhaps to work his ruin; this admirable plan has the great advantage of reconciling the interefts of all parties. I As the operation of this truly grand principle of finance is perpetual, the following table will fully difplay its effects under all probable and almost all poffible circumstances. Account of the feveral periods of time in which each capital of public debt, bearing intereft at 3, 4, and 5 per cent. per annum respectively, will be redeemed by an annual fund of one per cent., applied by quarterly iffues, in purchafing the faid capitals at the feveral average prices at which the 3 per cent. funds may be redeemable, as ftated underneath. Periods of redeeming by a Sinking Fund Average prices At 3 per cent. At 4 per cent. At 5 per cent. of the 3 per cent. Funds. per annum. per annum. per annum. On the 31st of October, 1805, the fum of, national debt which had been redeemed, exclufive of the fum purchased by fale of the land tax, was 101,203,940. which coft in money 62,866,335. 15s. 10d. THE BANK, It has already been mentioned that the buf nefs relative to the funds is tranfacted at the bank of England. This establishment is, on all accounts, fo important to the nation, and its tranfactions fo clofely connected with the highest interefts of the country, that an account of it with fome length of detail will not be improper. ORIGIN. Many attempts were made to bring fuch an inftitution to bear, before the prefent bank was established. Soon after the restoration it was propofed to erect an office of Credit for the reception of goods and merchandize; for the apprail ed value of which, notes were to be iffued, which it was imagined the merchant would find lefs difficulty in negotiating than attended the borrowing of money on the goods themselves: and fuch a plan might be attended with confiderable advantage to commerce, if commodities were to be warehoused in public repofitories, a proper receipt given by an officer appointed for that purpofe, and the property of goods transferred by indorsements upon fuch receipts. In 1678, Doctor Lewis, an eminent clergyman, publifhed his model of a bank, with fome obfervations on the great advantages that would accrue from it, to the crown and to the people; but who could venture in the reign of Charles II., to truft his property in any place to which the king could find accefs? The fame circumftance prevented the establishment of a bank in 1683. By letters patent from the crown, a company had been erected, called the Royal Fishery of England, inftituted for the purpose of carrying on that branch of commerce with advantage to this country, and, indeed, with the hopes of depriving the Dutch of the profits they acquired by fishing on our coafts. Upon this company, it appears, that a general bank of credit was engrafted: but though the plan was fupported by perfons of confiderable character and property, neither the ftate of the government, nor the temper of the times, was calculated for fuch an inftitution; and confequently it was foon difcontinued. ESTABLISHMENT. The prefent bank of England was established in 1694. It was fuggefted by William Patterson, a Scotchman of great abilities, who was afterward one of the original directors, and the plan rendered practical by the exertions of Michael Godfrey, a gentleman of confiderable influence in the city, who was appointed the first deputy governor. Nothing can more clearly prove the low ftate of public credit, and the great fcarcity of fpecie at that time, than the terms which parliament found itself under the neceflity of granting. For the fake of receiving 1,200,000l., government agreed to pay not only interest at eight per cent., and 4000l. for the expence of mar pagement; but the fubfcribers were alfo erected into a corpo rate rate body for the purpose of carrying on the lucrative trade of banking. It was expected, however, that the circulation of their notes, and the establishment of paper credit, would greatly facilitate the raifing of fupplies, and prove a general eafe and accommodation to the public in all pecuniary tranfactions. There were in Europe, at this time, but four very confiderable banks, those of Amsterdam, Venice, Genoa, and Hamburgh; of which all but that of Genoa were folely for the convenience of merchants. At Amfterdam, Venice, and Hamburgh, all bills of exchange and other large payments were ufually made at their banks, which faved much trouble to merchants. There were banks in other parts of Europe, not only for the conveniency of commerce, but alfo for the emolument of their proprietors, who had originally advanced money to the state, for which they had a perpetual fund of intereft; and they obtained alfo the privilege of being cash-keepers for merchants and others. Such were the banks of Genoa, Naples, and Bologna; there being two fuch in the latter city, in one of which, though only ten per cent. was ever paid in, they were faid to make a dividend on the whole nominal capital; and to lend money at one per cent. per annum, proceeding from the great fums with which they were entrusted without intereft; and after this fecond fort of bank was the bank of England modelled. The project was not fuddenly popular; government was at that time reduced to great difficulties in raifing the annual fupplies, to fupport an expenfive war against a potent foreign enemy, while the public measures were clogged and diftreffed by a violently difaffected faction, who alleged, that banks could thrive no where but in a republic, and yet would, at other times, argue, that fuch a bank as was propofed would make the king abfolute. The projector found great difficulty in obtaining for his plan the fanction of the privy council, previous to its being brought into parliament; it was long debated with great pertinacity in prefence of queen Mary, the king being abfent in Flanders; many were of opinion that a bank would not fucceed, as only eight per cent. intereft was to be paid on the 1,200,000/ to be advanced by the propofers of this bank. The difaffected were all hoftile to it, alleging that it would ingrofs the money, stock, and riches of the kingdom. The monied men alfo oppofed it, left it fhould diminifh (as it certainly foon afterward did) their exorbitant gains from the public diftreffes; for even eight per cent. on the land tax, befide additional premiums, though payable within the year, did not fatisfy them. Other anticipations of the public revenues were much higher, the intereft, premiums, and difcounts on them rifing to twenty, shirty, and forty per cent. And fad it was to confider, that L4 contracts |