I now, Sir, come to state the articles of the ways and means, towhich I intend to have recourse to meet this expenditure. The first objects that present themselves are the duties substituted for the land and malt, I mean the duties on sugar, tobacco, and malt, which produce the sum of 2,750,000l. The next is the surplus of the lottery, giving 200,000.

Another article which follows is a subject of great and satisfac◄ tory difference to the committee in the consideration of the ways and means. Gentlemen will recollect I mentioned, last Christmas, that the growing produce of the consolidated fund was likely to be affected by many burdens and charges in arrear; and yet I now am happy to mention, that a considerable surplus is applicable to the supply. In one instance 699,000l. has been provided for by a vote. Two quarters have been paid, and two quarters of the six which it was supposed would remain, have actually passed. In looking at the actual produce, making good all charges, and computing the surplus of the consolidated fund up to the latest period, I am enabled to form a very different statement from what I formerly did. I took it last December, allowing for all considerations, at 1,500,000l.; and there is, at present, an actual surplus of 521,000l. in the quarters of January

and April. After paying all arrears, and including the advance of 800,000l. to Grenada, &c. and discharging the interest of the imperial loan, I am enabled to state the growing produce at 3,229,000l.; and this satisfactory circumstance arises from the extraordinary increase of the two last quarters: so that there is, in fact, an augmentation of 1,700,000l. beyond what I stated on conjecture last December.

The next article relates to the tax on imports and exports. The estimate which I formed amounted to 1,500,000l.; but, in consequence of different abandonments which were made, and some alterations which appeared obviously necessary, the product was taken at only 1,200,000l. The event has, however, turned out differently, and so very prosperously, as to justify the original statement of 1,500,000l.

The next article to which I come, I am concerned to observe, I cannot state with all the satisfaction which I wish I were ware ranted in expressing-I mean, Sir, the tenth upon income. Though I must admit that there have been grounds altogether sufficient to enable us to form a correct judgment on the ultimate produce of it, in many distant parts of the kingdom no returns of income have been hitherto made; and it must be observed, that no final decisions have passed the commissioners of appeal. But it is my duty to notice, that in one particular branch from which much was expected, the account of the returns appears likely to fall below my calculations. I allude to the commercial part of the community; and unless some farther examination should alter the operation of the tax, I have no reason to think it will produce more than one half of the four millions. But it must be observed, that my information on this point is not suf ficiently correct, as returns have been made to the general commissioners, and no deduction has been yet made. I may, Sir, at all events, remark, that whatever may ultimately happen, I shall not be justified from the present circumstances in taking credit for more than seven millions and a half, as the product of this tax. Whatever we may take it at, it is necessary for me to say, that any defalcation cannot lead us to a conclusion that material alterations may not be made with respect to its operation, and

for the purpose of rendering it more beneficial to the exigencies of the public service. We ought, Sir, to consider it as far from being a discouraging circumstance, and by some means or other the policy of the country should not be defeated.

I have now to notice the amount of an instalment, or aid and contribution, in 1798; it was 700,000l.; but now taken, as it should be, at 650,000l, it will, when added to the seven millions and a half, give the sum of 8,150,000l. But as it is liable to pay the interest of the loan of 1798 for one half year of the sum of 8,000,000l. a deduction for that purpose must be made from it of 240,000l. and also a year's interest of 51. 7s. per cent. on eleven millions, amounting to 588,000, which will leave the sum applicable to the supply at 7,300,000l. The first loan is for three millions, and the second for twelve; and these sums, with the others I have enumerated, will give a total sum of thirty-one millions, leaving a small surplus on the ways and means.

Surplus of consolidated fund in Jan. and April, 1799

521,000

30,522,000

Exchequer bills 3,000,0007.

* 3,000,000l. besides was borrowed for Ireland.

I must now, Sir, call the attention of the committee to the circumstance, that there is no provision made for the exchequer bills to the amount of 3,000,000l., as I leave them ultimately to be funded, and expect they will be so on more advantageous terms. This is a consideration the more probable, from the punctuality with which the navy bills are paid, and the few exchequer bills which will remain in the market, as they will all be absorbed in the instalments of the loan. The arrangement appears to me, in every point of view, more economical and prudent, than in adding 3,000,000l. to the loan.

My next duty, Sir, is to state to the committee the terms upon which the loan has been made, and they afford to us and to the country grounds of peculiar satisfaction. The usual mode of receiving offers by fair and open competition has been adhered to. The proposal was made to the competitors of taking 1251. in the 3 per cent. consols, and 50 in the reduced, and it was accepted at the price of the day, considerably less than the actual value of 100%. I have the satisfaction to notice, that there was no contest at the low price of long annuities. Three of the most respectable houses in the country concluded with me on terms the most advantageous to the public, and I hope they will prove not less beneficial to themselves. They agreed to pay for 1251. in the 3 per cent. consols 691. 4s. 41d. and for the reduced 281. 2s. 6d., making 971. 6s. 10d. which, with the benefit of the discount at 21. 6s. 6d., gave 991. 138. 44d. Gentlemen will observe, instead of bonuses, which had been the customary case, the present bargain has been concluded in a manner unexampled with respect to real advantage; and I think there can be no stronger ground to state, that the public opinion is in unison with my own, in considering the flourishing situation of our affairs. There is no cause for any gloomy view whatever, and our confidence in the national prosperity, spirit, and exertions, is, at least, equal to that entertained in the most distinguished and successful periods.

The next object to which I shall call the attention of the committee, will be the charges that are to defray the interest upon

part of this loan which remains unprovided for by any other fund. I have the satisfaction to state, that the amount of this sum is small; it is no more than 315,000l. The principle which I propose now to go upon, as the foundation of the whole system of finance, is the same which I offered to parliament last year, and which has been acted upon this year; it is, that there shall be no loan contracted for during any year, greater than what the amount of the sinking fund can pay off. By the operation of this fund the whole of the loan that is now to be raised to fifteen millions and a half, will be paid. The whole of the taxes which I mean to move for, will rest upon articles that arise entirely out of the present circumstances of affairs; and so far from operating as a tax, will rather be a relief to the public. This is to be done by withholding a certain proportion of the bounty, that has been allowed as a drawback upon sugars exported from this country.

I propose, that on clayed sugars from the British plantations, in addition to all other duties, a duty of 4s. per cwt. be laid, which, estimating the whole at 200,000 cwt. will produce 40,000l. On British plantation sugar exported, I shall also propose to withhold 2s. 6d. per cwt. of the drawback, in addition to 4s. now retained on 358 cwt.; on East India exported 76,000 cwt. at 6s. 6d. which will produce the sum of 62,000l. On foreign plantation sugar exported, at 2s. 6d. per cwt. will produce 14,000l. By taking 48. per cwt. from the bounty now payable on refined sugar exported, there will arise a sum of 39,000l. And by withholding 4s. from coffee exported, a sum of 65,000l. will be produced.

One article of importation I have omitted, I mean British sugars left for home consumption, which at 8d. per cwt. I estimate will produce the sum of 56,000l.

There is another article upon which I propose to lay a duty, which will scarcely be felt by any description of persons in the country. In many parts of the kingdom, there is an extensive circulation of small notes. On every note under 40s. I shall propose to lay a tax of 2d.; and as the number supposed to be circulated throughout Great Britain is estimated at 1,500,000l.