by the interpofition of the legislature, was as fol- Public Debts lows': As by the act above mentioned, their whole demand was reduced to the fum of £. 664,263 it is evident, that the lofs they fuftained, must have been about £. 2,800,000. With regard to the confequences of these tranfactions, we are told, that, notwithstanding fo violent a breach of the public faith, Charles was able, two years after he had fhut up the exchequer, to borrow money at eight per cent. ", the fame rate of interest which he had paid before that event; and Hume from thence takes an opportunity of remarking, "That public credit, instead of being of "so delicate a nature as we are apt to imagine, is "in reality fo hardy and robuft, that it is very dif"ficult to destroy it"." But the events at the time, were far from juftifying this position. In a tract written anno 1693, (attributed to the Marquis of Halifax), wherein, among other modes of raifing money, he takes into confideration, that of borrowing upon perpetual funds, it is observed, 1 See a Modeft Vindication of the Memory of King Charles II. in relation to the Stop at the Exchequer. m Danby's Memoirs, p.65. " Hume's Hift, vol. viii. p. 226. prior to the Revolution. "That prior to the Revolution. Amount of our public Revolution. "That the breach of the exchequer credit by King Charles, will make men very fhy of parting "with their money, upon new projects at a dif"tance," and indeed, the great difficulty that was found, in procuring money after the Revolution, and the high intereft that was paid for it, was in a great measure owing, to the fatal ftep taken anno 1672, which rendered men cautious in again confiding any confiderable fum to government, unless they were tempted, by exorbitant profit, and ufurious advantages. It was the more neceffary to give an hiftorical account of this tranfaction, becaufe the above principal fum of £. 664,263 compofes a part of the prefent national debt of this country, and indeed is the only portion of it that was contracted before the Revolution P. There was, it is true, a fmall fum, (about 4.60,coo), due to the fervants of Charles II. which was directed to be paid to them in three years, from the 24th of December 16899. But it was fuppofed, that little of it was paid, because there was a provifo in the act, that no money fhould be given to any of that prince's fervants, who did not take an oath to the new government, before the 1st of February 1690; which, it is probable, many of them refufed or neglected to do. There was alfo, on the 5th of •Somers's Collection of Tracts, vol. iv. p. 67. P Hiftory of the Public Revenue, by James Poftlethwayt, 91 William and Mary, feff. 1. cap. 28. Hiftory of our National Debts and Taxes, p. 6. 1 OF THE BRITISH EMPIRE. 401 prior to the November 1688, an arrear of £. 300,000 due to Public Debts the army, and about £. 280,000 of the revenues of Revolution.. the crown had been anticipated. But the money that was found in the exchequer, and the fums which were in the hands of the different receivers and collectors of the revenue, fully compenfated thefe demands. As to the intereft of the fum above ftated, it was originally at 6 per cent. and confequently amounted to L. 39,855 17 s. 7 d. per annum; but as the bankers' debt was incorporated by 3 George I. cap. 7. into the general fund, at 5 per cent. and was afterwards fubfcribed, in confequence of 6 George I. cap. 4. into the South Sea ftock, which now bears only 3 per cent. intereft, L. 664,263 of principal, and £. 19,927 185. 9 d. of intereft, is the whole of our prefent debt, contracted prior to the Revolution. Such are the moft material tranfactions which Conclufion. took place with regard to public debts, during the period of 450 years prior to the Revolution: from an attentive confideration of which, and of the circumstances stated in the enfuing chapter, the reader will be enabled to determine, whether it is moft to be regretted, that the funding fyftem ever took place, or that it was not fooner adopted. Had it exifted at an earlier Æra, a fuccefsful conqueror, like Henry V. would never have been impeded in his progrefs, by the want of a few thou 8 Hiftory of our National Debts and Taxes, p. 7. VOL. I. D D fand Public Debes fand pounds, which feems to have been his unforprior to the Revolution.. tunate cafe. Whereas, on the other hand, had no Rife and Frogress of our prefent National Debts. money ever been borrowed, were we now free from the burden of those taxes, which have been impofed, to provide for the intereft of our prefent national incumbrances, the fituation of this country, at this time, in point of finance at least, would have been truly happy and desirable. CHAP. IV. Of the Rife and Progress of our present National T Debts. HE principal political objects which our statesmen feem to have had in view, from the Æra of the Revolution, to the present Time, were: First, to humble the power of France, which at that period threatened the reft of Europe with total fubjection: Secondly, to protect the British Colonies in America, from the encroachments of that powerful monarchy: Thirdly, to preserve the allegiance, and maintain the connexion of those very colonies with their mother country, when, trufting to the promises, and fupported by the arms of France, they declared themselves independent States: and Fourthly, to ftem the progrefs of those revolutionary principles, which were likely to spread over Europe, in consequence of the establishment of the French Republic. The purfuit of thofe objects gradually brought on those heavy incumbrances, under which the na Other causes of lefs moment Rife and Progrefs of National tion now groans. may indeed have occafionally contributed to in- our prefent crease them: but upon the whole, it will hardly be Debts. denied, that our prefent national debts owe their origin, and the greater part of their amount, to the neceffity we have been under, either to oppose the arms, or to guard againft the political intrigues of the government of France, for above a century past. The power that France had attained, and which rendered fuch exertions neceffary, is in a great meafure to be attributed, to the wretched policy, which has too often prevailed in the councils of this country. It began under the government of Cromwell, who, flattered by the artful Mazarine, and expecting to fecure acquifitions, either on the Continent, or in America, that would give luftre to his ufurped administration, was induced to join his arms with France, against the weakened and degenerate monarchy of Spain; and by his additional weight, not only elevated the house of Bourbon, on the ruins of that of Auftria, but also compelled the Spaniards to give their Infanta to Lewis XIV. and thus enforced an alliance, which has fince been productive of fo many fatal confequences. Unfortunately alfo, the restoration of the royal family, did not correct this mistake in politics. During their long refidence abroad, they had imbibed foreign manners and foreign principles, and. felt little of the natural, and perhaps ufeful, prejudices of an Englishman. Charles, diffatisfied |