Page images
PDF
EPUB

in general.

Pinto afferts, that the English might have done as Public Debts much, during all their wars, with one third lefs expence. This is undoubtedly exaggerated. But Conclufion. no one can poffibly deny, that if effectual steps had been taken at the Revolution, to check public frauds, and if the fame rneafures had ever fince been perfevered in, a confiderable portion of our public debts would have been prevented.

These are the principles on which public debts may, in general, be fafely contracted, and which, if steadily adhered to, would always prevent the funding fyftem, from becoming burdenfome, or ruinous to a State. Nor ought the inveftigation of fuch a fubject to be accounted useless to this country. For though our principal object, at this time, ought to be, how to overcome the difficulties in which we are involved from paft mifconduct, yet an invariable plan of borrowing money for public fervices, in time to come, fhould be formed without delay; and indeed our present incumbrances ought, if poffible, to be reduced within the bounds of fuch permanent regulations, as the abilities of our statesmen, and the wisdom of our legislature, may deem moft conducive to the intereft of the community P.

Effay on Credit, p. 107.

P Thefe obfervations, regarding the funding fyftem in general, and the establishment of an unalienable finking fund in particular, were originally contained in the first Edition of this work, printed anno 1785, and the reader will at once perceive, that it contains thofe identical principles, from the promulga-,

Public Debts prior to the Revolution.

CHAP. III.

Of the Public Debts of England, prior to the Revolution 1688.

THE

HE public debts of a nation, when it is fubject to a monarchical form of government, may be confidered in two different points of view either as the perfonal debts of the fovereign, or as real incumbrances on the community.

A modern continental author, (Monfieur Linguet,) contends, that in an abfolute government, like France, the reigning prince has only a temporary interest in the revenues of the State; and confequently, that it would be not only a prudent and humane, but even a legal operation, to annihilate

tion of which, Mr. William Pitt, has fince endeavoured to derive fuch exclufive celebrity, as if they belong peculiarly to him. The fact is, that it is no new difcovery; the whole plan, has, at various times, been explained by different political authors; Mr. Pitt's merit confifts in this, that he is the first minifter, who procured the fanction of the legislature to the plan of a finking fund, which however imperfect, was certainly better than any preceding one; but fo thoroughly was the fubject understood, that no man could have been the minifter of this country, at that time, without making the trial, and fucceeding, perhaps better, in the attempt.

[ocr errors]

Linguet, Annal. politiq. du dix huitieme Siecle, tome i. P. 38.

the

prior to the

the public debt at the commencement of every Public Debts reign. But in England, where a limited monarchy Revolution. exifts, and where the money is borrowed by the representatives of the people, he thinks that the whole kingdom ftands pledged for the fecurity of the contract, and that fuch a measure would be a difgraceful and criminal bankruptcy.

It is impoffible to perceive, either the justice of the distinction ftated, or the benefit that would refult from it, to an abfolute government.

As to the juftice of the measure that is propofed, it is evident, that the money is borrowed, in both cafes, by the legal fovereign, and is fuppofed to be expended for the public ufes of the State; and whether the fovereign that enters into fuch pecuniary engagements, is a defpotic monarch, or confifts of many individuals, does not feem to be

material.

With regard to the advantage of fuch a diftinction, it would foon appear how unferviceable it must prove. The credit of an abfolute monarch, who could only give fecurity to his creditors, during his own life, would be neceffarily unproductive and infignificant. Indeed fuch a principle would be equivalent to the establishment of a perpetual inability of borrowing money, even in the most preffing emergency, except on terms the moft ufurious and deftructive.

But the reader will be better enabled, to form an opinion on this curious fubject of political fpeculation, from examining the hiftory of our public

debts

prior to the

Public Debts debts prior to the Revolution, during which period Revolution. they were only accounted the perfonal obligations of the fovereign, and weighing the confequences. they produced at that time, when put in competition, with those perpetual national incumbrances which have fince taken place.

Henry III. 1232.

Edward 1.

The unfortunate Henry III. is the first monarch of England whose debts are recorded in history. In the fixteenth year of his reign, they had become fo great, that parliament was obliged to grant an aid to affift him in paying them off. His pecuniary distresses, however, in confequence of his folly and extravagance, were perpetually increafing; and he in vain endeavoured to relieve them, by pawning the jewels of the crown, his robes of State, and other regal ornaments; nay, the fhrine of St. Edward, though at that time an object of particular veneration. Indeed, we are informed by Matthew Paris, that he owed fo much, to fo many different people, for the very neceffaries of life, that he durft hardly appear in public for the clamours of his creditors. And other historians reprefent him, as publicly declaring, that fuch were his difficulties, that it was more charitable to give him money, than any beggar at the door.

Henry died confiderably in debt, but his fon Edward I. was induced, either from the generofity of his own difpofition, or from a fuperftitious idea which prevailed at that time, that the foul of the

See Stevens's Hiftory of Taxes, pref. p. 31.
Parliamentary History, vol. i. p. 27, 28. 44.

See also

deceased

Revolution.

deceased remained in purgatory, until all his debts Public Debts were paid, to make great exertions in order to dif- prior to the charge them. And thofe incumbrances, which the many wars he was engaged in, rendered it neceffary for him to incur, he was always anxious to pay off, as fpeedily as his narrow revenue, and fmall refources, would permit.

It appears that Edward II. imitated his father's Edward II. example, in refolving to difcharge the debts of his predeceffor; for in the third year of his reign, writs were issued to the collectors of the customs, requiring them to pay certain vaft fums of money to his father's creditors, out of the faid customs, and £. 100,000 befides, for the lofs and damage they had fuftained, in confequence of the late and flow payment of the money that was due to them *.

The various military expeditions carried on by Edward III. Edward III. neceffarily involved him in the greateft difficulties. It is ftated in the very writ by which a parliament was fummoned in the fourteenth Anno 1340. year of his reign, that he had borrowed fo much money abroad, upon his perfonal fecurity, that if the fums for which he stood engaged were not all paid, he was obliged, in his own proper perfon, to return to Bruffels, and to remain there, as a pledge to his creditors. Compulfive loans were not unusual during

In the words of the record," ad exonerationem anime "Henrici regis, patris noftri."

4 See Turner's cafe of the bankers and their creditors, p. 37. • Cafe of the bankers, p. 20.

« PreviousContinue »