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3
:
[
1
ARTES
1837
LIBRARY VERITAS
SCIENTIA
OF THE
UNIVERSITY OF MICHIGAN
}
TURBOR
ALQUÆRIS-POHENSULAMARI
CIRCUMSPICE
1
+
HJ
2603
.562
THE
HISTORY
OF THE
PUBLIC REVENUE
OF THE
BRITISH EMPIRE.
1
By JOHN, SINCLAIR, Efq.
CÁVENDUM EST, NE EXHAUSTO ÆRARIO, REPENTINA CALAMITATE RESPUBLICA
DESERATUR.
BODIN. De Repub. Lib. vi. Cap. z.
LOND ON:
PRINTED BY W. AND A. STRAHAN, FOR T. CADELL IN THE STRAND,
MDCCLXXXV.
English
Sutton
1-3-27
13905
wi wee
ADVERTISEMENT.
HIS Work was begun in the month of Auguft
TH
1784, foon after the conclufion of the laft Seffion
of Parliament. When it was originally undertaken, the
Author had no conception of the immenſe difficulties at-
tending it; and they have increaſed to fuch a degree, that
he has found it impoffible to purſue it farther at preſent.
He has judged it expedient, however, to lay before
the Public the First and Second Parts of the Work:
and, if the preſent publication ſhould meet with a favour-
able reception, he propoſes attempting a Third Part, con-
taining-A Hiſtory of the Progreſs of the National Re-
venue, together with fome Obfervations on its preſent
State-An Hiftorical Account of the Progreſs of our
National Expences-Obfervations on the Refources of
A 2
the
iv
ADVERTISEMENT.
1
the Nation-An Analyſis of our Public Debts; and
an Enquiry into the real Nature and Amount of the
Burden—A Plan for re-eſtabliſhing the Public Credit
and Finances of the Country; together with fome Ac-
count of the Progreſs and Preſent State of the Revenue
of Scotland and Ireland.
at once.
It is impoffible that a Work of this nature, which
comprehends fuch a number of objects, and includes
fuch an extent and variety of matter, fhould be perfected
To complete it in a manner fuited to the Au-
thor's ideas and wiſhes; to compoſe ſuch a Hiſtory of our
Revenue as may clear up many doubtful points, correct
the miſtakes of former hiftorians upon the fubject, and
minutely aſcertain the real ſtate of the national income in
every æra of our hiftory, would require many years of
fevere labour and intenfe application. The prefent Work
is indeed little more than the firft fketch or outlines of
fuch a performance: and as the Author may, perhaps, be
unable to execute fo laborious a taſk himſelf, it is his in-
tention to add to the Third Part, a full Account of all the
various Writings which have been publifhed upon the
Finances of this Country, which may be of uſe to any
other perſon who, with more leiſure and happier talents,
may
alſo have courage and induſtry equal to fo arduous an
undertaking.
It
}
1
1
:
ADVERTISEMEN T.
It is only farther to be remarked, that although we
have had many naval, military, commercial, ecclefiaftical,
and parliamentary hiſtories, yet this may be faid to be the
firſt attempt at a financial hiſtory on an enlarged ſcale;
and, it may be hoped, will, on that account, be received
with the greater candour and indulgence by the Public.
TABLE of the SOVEREIGNS of ENGLAND,
from the CONQUEST.
Norman Line.
King's Names.
When their Reigns began.
Reigned
Years. Months. Days.
William the Conqueror
1066 October 14.
20
10 26
William Rufus.
1087 September 9.
12
10
24
Henry I.
Stephen
1100 Auguft 2.
35
4
1135 December 1.
18
ΙΟ
24
The Saxon or Plantagenet Line.
Henry II.
Richard I.
John
Henry III.
Edward I.
Edward II.
Edward III.
Richard II.
Henry IV.
Henry V.
Henry VI.
Edward IV.
Edward V.
Richard III.
1154 October 25.
34
8
Th
1189 July 6.
9
9
• 1199 April 6.
7
12
1216 October 19.
56
I
1272 November 16.
34
1307 July 7.
19
76
21
20
1327 January 27.
50
5
25
1377 June 21.
12
3
8
The Line of Lancaſter.
1399 September 29.
1413 March 20.
13
5
21
9
5
I I
1422 Auguſt 31.
38
6
4
The Line of York.
1460 March 4.
1483 April 9.
1483 June 22.
22
2
1 2 2
I
5
13
5
The
E
viii TABLE of the SOVEREIGNS of ENGLAND from the CONQUEST.
The Houſe of Tudor.
Kings Names.
When their Reigns began.
Reigned
Years.
Months. Days.
Henry VII.
1485 Auguſt 22.
23
8
Henry VIII.
1509 April 22.
37
9
6
Edward VI.
Queen Mary
Queen Elizabeth
1547 January 28.
6
5
8
1553 July 6.
5
4
1 [
1558 November 17.
44
4.
7
The Houſe of Stuart.
James I.
1602 March 24.
22
Charles I.
Charles II.
James II.
1625 March 27.
22
10
1648 January 30.
1684 February 6.
36
33♪
4
7
William III.
Since the Revolution.
1688 February 13.
13
23
Queen Anne
1701 March 8.
12
4
24
George I.
1714 Auguſt 1.
12
ΙΟ
10
George II.
1727 June 11.
33
4
14
George III.
1760 October 25.
;
*
CON-
CONTENT S.
PART I.
NTRODUCTION, and Plan of the Work
INT
CHA P. I.
Of the Modes made ufe of by the Ancient Britons for raiſing a public
Revenue
CHA P. II.
Of the Revenues of Britain under the Roman Government
1
CHA P. III.
Of the Revenue of England during the Government of the Saxons
CHA P. IV.
General View of the ancient Revenue of the Crown of England
CHAP. V.
Of the Revenue of England under the Government of the Norman
Line
#
CHAP. VI.
Of the Revenue of England during the Saxon Line, or Houſe of
Plantagenet
Page.
3
6
8
12
17
37
51
CHAP..
*
CONTENT S.
CHAP. VII.
Of the Revenue of England during the Government of the Houfes
of Lancaster and York.
CHA P. VIII.
Of the Revenue of England under the Government of the Houfe of
Tudor
CHA P. IX.
Of the Revenue of England, from the Acceffion of the Houfe of
Stuart to the Revolution 1688
PART II.
CHAP. I.
Of the various Modes of providing for the extraordinary Expences
of a Nation
CHA P. II.
Of Public Debts in general
CHA P. III.
Of the Public Debts of England, prior to the Revolution 1688
CHA P. IV.
Of the Rife and Progress of our prefent National Debts
CHAP. V.
•
Of the Steps hitherto taken to diminish the Capital, and to reduce the
Intereft of the National Debt, with fome Account of the different
Plans fuggefted for that Purpoſe
Page.
82
100
138
16
34
48
94
THE
3
+
THE
HISTORY
OF THE
PUBLIC REVENUE
..
OF THE
BRITISH EMPIRE.
:
PART I.
B
X
INTRODUCTION,
"
AND
PLAN of the WORK.
T
HE power of a State muft greatly depend on the income
it poffeffes. If it enjoys a confiderable and unencumbered
revenue, it can employ a greater proportion of its fubjects to
carry on war, or may cultivate to greater advantage, the arts of peace,
when unembarraffed with hoftilities: Whereas, with a ſmall income,
it can neither reward the fervices, nor encourage the exertions of its
people; and it muſt principally truft, both for its improvement and
protection, to the natural activity of mankind, or to the voluntary and
difintereſted zeal of public-fpirited individuals.
But however numerous the advantages of a great Revenue, they
are dearly purchaſed if they cannot be procured without oppreffion. A
certain fhare of his annual income no individual can refufe to contri-
bute for the general purpoſes of the State. Sometimes alfo a flight
additional burden may prove an incentive to labour, and a fſpur to
greater diligence and activity. But if the load becomes too heavy,
either in confequence of the greatneſs of the amount, or the impolitic
mode of laying it on, the induftry of a nation diminishes, its wealth
quickly diſappears, the number of its people decreafes, and the greater
the occafion it has for refources, the fewer it will actually enjoy.
Unfortunately, the fyftem of finance fo prevalent in Modern Europe,
has an unavoidable tendency to public oppreffion: Wars are per-
petually arifing, and the conteft generally is, who can firft drain the
Exchequer, and deſtroy the credit of the enemy. It is foon difcovered,
B 2
that
1
4
HISTORY OF THE PUBLIC REVENUE
that war is not a favourable feafon for impofing heavy taxes on the
property of the people, and that the beſt means of commanding the
neceffary ſupplies is, to borrow from thoſe who have confidence in the
faith of the nation and the fecurity it can afford; and confequently who
are willing to leave their capitals unclaimed, provided they are regu-
larly paid a certain annual intereft. To pay that intereft, new taxes
muſt be deviſed; and as little care is taken by ignorant, by intereſted,
or by timid minifters, to leffen the incumbrances of war during the
fhort intervals of peace, the burden perpetually increaſes; and the un-
happy ſubject finds himſelf obliged, not only to affift in defraying the
charges neceffary for fupporting the government under which he
lives, but is alſo compelled to contribute to the payment of expences
incurred for expeditions which took place a century ago, and for wars,
commenced, perhaps, contrary to the intereſt of the nation; conducted
with profufion and weakneſs, and, of courſe, terminated with dif
grace.
In no country has the fyftem I allude to been carried to fuch an exceſs
as in Great Britain. From the year 1684 to the preſent time, it has
been under the neceffity of increaſing its revenue from about Two, to
at leaſt Fifteen Millions per Annum. Fortunately the State can ſtill bear
that burden, heavy as it is; but as any confiderable addition to it would
probably be found unfupportable, and, at any rate, as fuch a fyftem
muſt fooner or later end in total bankruptcy, or the moft grievous
oppreffion, it is full time for the nation at large to confider what plan is
the moſt likely to relieve us and our pofterity from the danger either
of infamy or diftrefs.To affift the public in fo important a dif-
cuffion, the following Work has been compofed.
In attempting to give an hiftorical account of the finances of this
country, the ſubject naturally divides itſelf into two branches: The
firft will relate to our public Revenue prior to the Revolution 1688:
The fecond, to our fyftem of finance fince that period. During the
the firſt æra, the expences of the State were principally defrayed by the
ordinary revenue of the crown. It ſeldom happened that any extra-
ordinary tax was laid upon the people; and even then, it was only a
temporary grant to the monarch upon the throne. The period fince
the Revolution is diftinguiſhed by principles of a very different nature.
The
{
OF THE BRITISH EMPIRE.
5
The State has affumed the appearance of a great corporation : it extends
its views beyond the immediate events, and preffing exigencies of the
moment-it forms fyftems of remote, as well as of immediate profit-
it borrows money to cultivate, to defend, or to acquire diftant pof-
feffions, in hopes that it will be amply repaid by the advantages
they may be brought to yield. At one time it protects a nation whoſe
trade it confiders as beneficial: at another, it engages in war, left the
commerce of a neighbour and a rival fhould be too great: in fhort, it
propoſes to itſelf a plan of perpetual accumulation and aggrandizement,
which, according as it is well or ill conducted, muft either end in the
poffeffion of an extenſive and a powerful empire, or in total ruin.
How far fuch a ſyſtem can boaſt of advantages adequate to the
hazards with which it is accompanied, and the confequences to which it
leads, will more fully appear in the courfe of the following invefti-
gation.
СНАР.
6
HISTORY OF THE PUBLIC REVENUE
СНАР. I..
Of the Modes made use of by the Ancient Britons for
raifing a public Revenue.
THE original inhabitants of the fouthern part of this iſland, it is
pro-
bable, were deſcended from the ancient Gauls or Celtæ, to whom
they bore a ſtrong reſemblance in reſpect to manners, language, govern-
ment, and religion. They were divided into many tribes, or fmall com-
munities, who being engaged in perpetual hoftilities with each other,
could make but little progrefs in the arts of cultivation and improve-
ment. Their commerce principally confifted in the exportation of
hides, tin, and other articles of little value, and from which little
profit was derived. Their hiftory remains involved in fable and ob-
fcurity, until they became objects of importance fufficient to draw upon
them the notice and the arms of Rome, when, after a gallant ſtruggle,
they found themſelves obliged to refign their independence, and ſubmit
to its yoke.
The government of the Ancient Britons, like that of every nation in
a fimilar ftage of fociety, was of a mixed nature. Each little tribe
had a prince or leader, who conducted the operations of war; and
who, in proportion to his ability and fuccefs in that department, ac-
quired influence and authority over the community in times of peace.
But the weight of fuch princes was of little avail, unleſs it accorded
with the general wishes and prejudices of their fubjects; and their
income was of too fcanty and limited a nature to furniſh them with
the means of increafing the little power they were able to obtain.
·
The domain, or perfonal eftate of the monarch, was the principal
ſupport on which he placed his dependence. It enabled him to main-
tain the followers of his court, and occafionally to reward their fidelity
and attachment with beneficial grants. If any addition was made to
the territory of the State, the greater part of it in general fell to the
fhare of the fovereign, by which that domain would be not a little
increaſed; and when his authority came to be more confirmed, im-
3
portant
1
OF THE BRITISH EMPIRE.
7
?
portant acceffions would arife from the frequent confifcations which
muſt have taken place in fuch turbulent communities.
The British kings drew fome advantage from the exercife of certain
prerogatives with which they were invefted. They commanded the
forces of the community, and enjoyed a confiderable fhare of the
plunder that was taken; and the exclufive privilege they poffeffed
of coining money, was probably attended with fome pecuniary
benefit.'.
To the
Prefents and fubfidies from foreign nations are alſo accounted by fuch
"The German
monarchs an important branch of their revenue.
"princes (we are informed by a great hiftorian) chiefly rejoice in the
"gifts which come from neighbouring countries, not only fuch as are
"fent by particular perfons, but in the name of the State"."
monarch of a ſmall tribe, a fuit of fplendid armour, rich harneſs, and
chains of gold, are matters of great moment; and the tranfition is
not difficult from the receiving of fuch prefents, to that of an annual
fubfidy in money. The Romans were the first who taught the northern
nations that mercenary ſyſtem.
Before taxes exift to any great amount, a politic and popular fove-
reign may draw a precarious revenue from the voluntary contributions
of his fubjects. The northern nations, as defcribed by Tacitus, be-
ftowed on their princes, of their own accord, a certain number of
cattle, or a certain portion of grain, with a view, under the appearance
There is
of honour and of reverence, to fupply their neceffities ³.
every reaſon to believe, that fuch contributions were cuftomary among
the Ancient Britons, and indeed they are the real fpring from which,
in almoſt every country, taxes are derived.
Such, joined to perſonal ſervices in war, were the flender fources on
which alone the ancient inhabitants of this country depended, in order
to protect themſelves and their poffeffions from the ambition, the mili-
tary force, and the opulence of Rome. Yet poor as the Britons were,
and feldom united with each other, they were not fubdued without
making a gallant and obftinate reſiſtance. If the conqueft was fo dif-
ficult in their ſtate of poverty and difunion, it is ſcarcely to be doubted
Henry's Hift. of Great Britain, vol. i. p. 206.
2 Tacit. de Morib. Germ. c. 15.
3 Ibid.
}
that
HISTORY OF THE PUBLIC REVENUE
that they would have been able to have repelled their invaders, had
they been the ſubjects of one monarch poffeffed of valour and ability
in war, and enjoying an income fufficient to have enabled him to
reward the zeal and exertions of his fubjects. But, in the words of
Tacitus, " they rarely united their forces againſt the common enemy;
"and by this means, while each community fought ſeparately, they
were all fucceffively fubdued "."
$6
4 99
CHA P. II.
Of the Revenues of Britain under the Roman Government.
IN examining the various political diftinctions between ancient and
modern nations, none is more ſtriking, or perhaps better intitled to
attention, than the great difproportion between them, in regard to
their public revenues. It is a fingular and aſtoniſhing circumſtance,
that the province of Gaul alone ſhould have been able, about a century
ago, to maintain a body of men equal to the whole military and
naval eſtabliſhments of the Roman empire'; and it is more than pro-
bable, that the revenues of France, of Spain, and of Great Britain,
joined together, are at this time equal in amount to the whole income
of that empire, when it was moſt flouriſhing and moft extended².
It is natural to afcribe this circumftance, in fome meaſure, to the dif-
covery of America, and the great increaſe of ſpecie in confequence of
that event; and it is not to be doubted, that fuch an increaſe muſt
have enabled modern nations to pay, with greater facility, the demands
4 Tacit. vita Agric. c. 12. Thoſe who wish farther information with regard to the
revenue of the Ancient Britons, may confult Campbell's Political Survey, book iv. ch. 1.
and Henry's Hift. of Great Britain, vol. i. p. 204.
I
Gibbon's Hift. vol. i. p. 18.
2 A great modern hiftorian calculates the amount of the Roman revenue at only
fifteen or twenty millions of our money. Gibbon, vol. i. p. 164. But it must have be-
come more confiderable, particularly during the reign of Dioclefian, when a general fyftem
of exaction was fpread over the whole empire.
of
OF THE BRITISH EMPIRE.
9
"
•
of their reſpective governments. But notwithſtanding the great influx
of money into Europe, fince the fuccefsful difcoveries of Columbus,
unleſs ancient hiftorians deceive us, more fpecie must have actually
exifted in the various provinces of the Roman empire, during the
reign of Auguſtus, or of Trajan, than now circulates in the three mo-
narchies above-mentioned; and confequently other cauſes, perhaps the
following in particular, muft have produced fo great a difproportion.
A warlike nation like the Romans confidered commerce, and the arts
depending on it, as but fecondary objects of attention. With them
valour in war, and a knowledge of the jurifprudence and political in-
terefts of their country, were the only eſtimable qualifications; whilft the
fkill neceffary for carrying on traffic, was looked upon in a light the
moſt contemptible. The profeffion of a merchant being held in difre-
pute, it was purſued by none who had ſpirit or abilities calculated for
more popular and refpectable employments: hence little encourage-
ment was given to commercial exertions. The principles of trade were
but little known, and inſtead of any addition and improvement to the
progrefs made by other nations of antiquity, the diſcoveries they had
brought to light were neglected, and the ſpirit of enterpriſe they had
diſplayed, remained unrivaled by their conquerors. But in modern
times the cafe is different: trade is no longer confidered as diſhonourable;
it is undertaken by men of the greateſt capacity, and of the moſt re-
ſpectable characters'; the principles of commerce are developed, and
thoroughly underſtood: a ſpirit of induſtry is excited; the efforts of
the merchant and of the manufacturer meet with every poffible coun-
tenance and fupport: a new ftruggle has arifen among nations, and the
conteft is, not only who fhall acquire the greateſt extent of territory,
but alfo who fhall poffefs the greateſt number of active and induſtrious
fubjects. The confequence is, a confiderable addition to the general
wealth of thoſe countries where fuch objects have been attended to;
and hence they have been enabled to furniſh a greater revenue for the
purpoſes of the State.
The extenfion of paper credit, and the eſtabliſhment of public debts,
are alſo circumftances which have not a little contributed to increaſe the
oftenfible income of feveral modern nations. By the eafier circulation
which paper-money and credit produced, individuals are better enabled
C
to
"
10
+
HISTORY OF THE PUBLIC REVENUE
to pay the public burdens impofed upon them. If taxes were paid in
kind, as is ſtill the cafe in poor and uncultivated countries, paper-money
would be of lefs advantage to individuals or to the Public. But as the
exchequer muſt have money from the people, and as it receives with
equal facility paper-money and fpecie, the increaſe of the one, in a
financial view, is equally uſeful as a proportionable addition to the
other.
In a country where taxes are laid upon articles of confumption, and
where the intereft of the national incumbrances is paid chiefly to the
natives, the public debt itſelf contributes to the increaſe of the revenue.
This feeming paradox, it is not difficult to account for. In Britain,
for example, every individual who confumes his income, muſt pay, in
taxes to the State, about one-fifth part of what he expends. If, there-
fore, there is paid to the natives of this country eight millions per an-
num, as the intereſt of their ſhare of the national debt, a fifth part of
that fum, or one million fix hundred thouſand pounds, will be repaid
by thoſe creditors in taxes to the very government from which it is
received. This circumftance greatly contributes to render our national
incumbrances much lefs burthenfome than otherwife they would be. A
new debt thus produces a new fource of revenue, at leaſt in proportion
as the annual intereſt of ſuch a debt is paid to the natives of the king-
dom.
Though Great Britain, France, and Spain cannot boaft, like the an-
cient Romans, of contiguous provinces fubject to their yoke, yet at the
fame time they enjoy diſtant colonies and poffeffions, which, in many
refpects, are equally beneficial. The furplus of the products of theſe
poffeffions, after maintaining their inhabitants, it is well known, centre
in the capital. The commerce carried on between the mother-country
and the colonies, furniſhes income and employment to many indivi-
duals in the former, who are thus better enabled to pay the burdens to
which they are fubject. The wealthieſt coloniſts are in general fond
of refiding at the feat of government, and contribute, by the taxes
levied on their confumption, to increaſe the income of the State; and
in fome cafes, fuch colonies pay no inconfiderable fum (after fup-
porting their own eſtabliſhments) into the coffers of their fove-
reign.
Not
OF THE BRITISH EMPIRE.
I 1
Not only have means been invented to increaſe the wealth, the in-
duftry, and the reſources of nations in modern times, but better modes
have alſo been deviſed for raiſing public revenues.
The ancient Romans fhewed no mercy to the nations they conquer-
ed. No fooner were the natives completely difarmed, and a little
inured to the yoke, than they found how fatal it was to be ſubject to
diftant rulers, ignorant of their fituation, and carelefs of their com-
plaints. Provided a revenue was raiſed, they were little anxious about
the means by which it was effected: but tyranny defeats its own ob-
ject; and thoſe countries are uniformly the moſt productive of re-
venue, where there is the leaft oppreffion, and where the greateſt atten-
tion is paid to the happineſs and profperity of the people.
It is not propoſed to give any particular account of the Roman fyftem
of taxation, as it is a ſubject which belongs more properly to the Ro-
man, than to the Britiſh hiftory, and would require a performance of
no contemptible fize to elucidate. It is fufficient for our prefent pur-
poſe to remark, that the taxes paid by Britain, and the other provinces
of the empire, were partly levied in kind, and partly in money: that
thoſe who paid taxes in kind, were obliged to furniſh about a tenth
part of the produce of their lands, and to carry the quantity they were
rated at, to any diſtance however great, according to the fuppofed ne-
ceffities of the State, or to the caprice of thoſe who were in power: that
ſo heavy a duty was laid upon cattle (in which Britain particularly
abounded), that, joined to other grievances, it was the occafion of a
very dangerous révolt, which was not extinguiſhed but with the greateſt
difficulty that heavy cuftoms were paid upon goods both imported
and exported that the proprietors of mines were obliged to pay a
certain fhare of their profits, for the benefit of the State: that a duty
was laid upon commodities fold by auction, or in the public market,
above a certain value: that capitation taxes were rigorously executed;
to which might be added a variety of other impoſts on legacies, flaves,
houfes, pillars, hearths, air, artiſts, animals, and other articles too tedious
to mention: "Nay, fuch, it was faid, is the exquifite tyranny, and
t
་
3.See Henry's Hiſtory of Great Britain, vol. i: p. 237. Campbell's Political Sur-
vey, Book iv. chap. 2. Whitaker's Hiſtory of Mancheſter, vol. i. p. 212.
C 2
"infatiable
12
HISTORY OF THE PUBLIC REVENUE
"inſatiable avarice of the Romans, that they extort taxes even from the
"dead";" alluding to a duty upon the body of the deceaſed, before it
was fuffered to be buried.
At firſt, the income of the province of Britain did not pay the whole
expence of the eſtabliſhment; but it came at length to be fo confider-
able, as to furniſh the Imperial treaſury with fome valuable remittances.
It is fuppofed by a modern hiſtorian, who founds his calculations upon
the authority of Lipfius, that the whole revenue could not be leſs than
two millions of pounds fterling. Our information, however, as to the
finances of the Roman empire in general, and in particular with regard
to the ſpecific fum drawn from each different province, is too ſcanty
and defective to furnish us with the materials neceffary to form any
exact computation.
;
}
C H A P. III.
Of the Revenue of England, during the government of the
1
Saxons.
i
FROM the departure of the Romans, to the invafion of Eng
land by William of Normandy, comprizes a period of about
fix hundred and twenty years; an Era diſtinguiſhed above all others in
the Engliſh, and perhaps in any other hiftory, for perpetual wars, ra-
vages, and bloodshed.
On the final retreat of the Romans, the northern parts of England
were laid waſte by the defultory, but deftructive incurfions of the Scots
and Picts. Upon their repulfion, a deſperate and fatal diſpute aroſe,
between the original natives of the country, and the Saxons, their auxi-
liaries. The latter had no fooner fecured the moſt fertile provinces of
4
Xiphil. ex Dione Nicolo, in Nerone.
5 Appian..in Pref. p. 3.
• Henry's Hiftory, vol. i. p. 238. But Campbell fays, that it is impoffible at pre-
fent, to form any probable gueſs, of the Roman income from this ifland. Political Sur-
vey, vol. ii. p. 493, note 9.
1
the
OF THE BRITISH EMPIRE.
13
the iſland, than the little kingdoms into which they were divided, be-
gan to contend with each other, for the fole poffeffion and intire go-
vernment of the country. This important difpute was no fooner
brought to a conclufion, than the Saxons were attacked by a dangerous
enemy, who haraffed their coafts with the moſt deſtructive inroads,
and, after much flaughter, compelled them to fwear allegiance to the fo-
vereigns of Denmark. At laft, William of Normandy, boldly determin-
ed to attempt another revolution, and actually fecured for himſelf and
his pofterity, the government of a country, thus ſtained with the blood
of ſo many conquerors, who were fucceffively vanquished in their
turn.
1
Little or no advantage could ariſe from a review of the reigns, or an
account of the revenues, of the innumerable multitude of monarchs,
who, in a greater or leſs degree, wielded the fceptre of England during
the Æra above mentioned. It will be fufficient to give a general ſketch
of the reſources from which their income arofe, without entering into
minute and unimportant details.
The demefnes of the Anglo-Saxon monarchs were very great: which
is a circumſtance not difficult to be accounted for. The kingdoms of the
Heptarchy were founded by Chieftains, who commanded troops attached
to them by the ties of confanguinity, who were born with an hereditary
regard for the family they reprefented, or were led to join in the in-
curfion from the high idea they entertained of their courage, character,
and good conduct. In other words, they were the heads of clans
or little tribes, ſuch as now exift among the Tartars, and ſome veftiges
of which ſtill remain in the mountains of Scotland. Such command-
ers, it is probable, would claim a confiderable ſhare of the territory that
was conquered; and as, beſides the plaufibility of their original pre-
tenfions, it was diſcovered in the courſe of the war, that many advan-
tages refulted from fubordination on the one hand, and pre-eminence
on the other, it was natural to fuppofe that a confiderable portion of
the new acquifition would be given to the leader, not only to preferve
fo uſeful a pre-eminence, but alſo to fupport the dignity of his office,
and to reward his valour in the field. Thus each petty monarch of
the Heptarchy came to be poffeffed of a landed eſtate of great value and
extent; and when all the domains of thefe different kingdoms, united
4
to
34
HISTORY OF THE PUBLIC REVENUE
to enrich one fovereign, the whole muſt have yielded a very confi-
derable revenue.
The power of a monarch to determine queſtions litigated among his
fubjects, is one of the firſt prerogatives with which he is entruſted.
Employed in diſtributing juſtice among the people, in proceſs of time
he is accounted the preferver and guardian of the public peace, and
gradually becomes intitled to a ſhare of the fines, impofed upon thoſe,
who disturb the quiet and good order of his government. Among the
Saxons and other northern nations, criminals of every defcription, were
only fubject to pecuniary puniſhments, in proportion to the fuppofed
atrociouſneſs of their offences: nay, 30,000 thrimfas were fuppofed to be a
fufficient atonement for the unpremeditated murder of a monarch, of which
15,000 were paid to his kindred, and 15,000 went into the public ſtock,
or enriched his fucceffor. Among a rude and licentious people, fuch
as the Saxons, it is probable that crimes of every dye and denomination
were not unfrequent; and, as a great proportion of the mulets im-
poſed on the offenders belonged to the king, it muſt have added not a
little to his income.
By the original conftitution of the Anglo-Saxon government, there
were three important duties, commonly known by the name of the Tri-
noda Neceffitas, to which every proprietor of land was ſubject. At firſt,
they were exacted in kind, and every individual was obliged to appear
in perfon, when legally called upon, for the purpoſe of repelling the
enemy, of conſtructing fortreffes for the public defence, or repairing
the bridges neceſſary for the internal commerce of the country. Such
fervices, both for the advantage of the State, and the convenience of its
more opulent and induſtrious members, were gradually converted into
money; and hence arofe the taxes known under the name of Heregeld,
Burg-bote and Brig-bote, which it appears were occafionally levied by
the Saxon monarchs 2.
1
Biſhop Fleetwood (Chron. prec. p. 29.) ſuppoſes 30,000 thrimfas to be equal to
150 Saxon pounds of filver. Hume (Append. vol. i. p. 219.) converts this fine into
1300l. of our money. But another hiftorian calculates it only at £. 351 : 11: 3.
Henry's Hiftory of Great Britain, vol. ii. p. 511. Rapin remarks, that wilful murder
was puniſhed, not by a fine, but with death.
2 The word Bote, in the Saxon language, fignifies to repair; Rapin's Hiftory, vol. i.
p. 119, note 3.
But
OF THE BRITISH EMPIRE.
15
}
3
But the ordinary revenues of the crown, and the perfonal fervices of
the people, were not adequate to the defence of the country, againſt the
incurfions of the Danes. They naturally began their depredations in
the weakest parts of the kingdom, where they flattered themſelves with
the greateſt booty, or where they were the leaſt expected; and as their
progreſs was marked with every fpecies of devaſtation and horror, it
was found neceffary, when the kingdom was unable or unprepared to
oppoſe them, to purchaſe their departure almoſt on any terms. In
order to raiſe the money wanted for that purpoſe, each hide of land ³
(of which it is faid there were 243,600 during the Saxon government)
was made fubject to a tax of one ſhilling or more, according to the pe-
culiar exigencies of the times. This impofition, which was called
Danegeld, or Dane-money, was firſt raiſed by Ethelred, anno 991, and
enabled him to purchaſe an ignominious truce from the Danes, for the
fum of £. 10,000, equal to about £300,000 of our modern money.
Anno 994, a fimilar agreement was made at the price of £. 16,000 *.
But ſuch bribes only ferved to expoſe the miſerable Saxons to freſh in-
fults, and greater extortion. For gratifying the avarice increaſed the
hopes, and fwelled the demands of the invaders'; and, on the whole,
theſe events furniſh an uſeful leffon to other nations, not to truft for their
ſafety and protection, to the wealth they are poffeffed of, but rather to
depend on the vigour of their councils, and their valour in the field.
3 A hide of land is by fome authors calculated to be as as much as one plough can
manage in a year. Bede fixes it at the quantity neceffary to maintain a family. Some
are fo particular as to ſay that it contained one hundred acres ; others again affert, that the
number of acres was uncertain. This tax was fometimes called Hidagium. See Mort..
Hift. of England, vol. i. p. 93. Brady (Hift. of England, vol. i. p. 270, note)
fays, that there were about 274,950 hides of land in England. See alfo Lytt. Hiftory
of Henry II. vol. iii. p. 82.
4 See Brady's Hiſtory, vol. i. p. 123.
5 The tribute paid to the Danes anno 1002, was £.24,000; anno 1007, £·36,000 ; anno
1012, £.48,000. The laft tribute of this kind raiſed for the purpoſe of bribing the Danes,
was anno 1018, when Canute exacted the ſum of £. 72,000 from the kingdom in gene-
raf, and about £. 11,000 from the city of London befides, with a view of rewarding hist
Daniſh followers, and of inducing them to leave England, which, without fome pecuniary
recompence, would not eafily have been effected. Brady's Hift. of England, vol. i.
p. 123.
At
J6
HISTORY OF THE PUBLIC REVENUE
At first, this tax was laid on folely to bribe the Danes to defift from
their depredations; but afterwards, under the pretence of making pre-
parations to prevent their inroads, it became an annual branch of the
revenue, and was levied by the fucceffors of Ethelred, until Edward the
Confeffor, anno 1051, in order to render himſelf popular, not only
aboliſhed it, but reftored to the feveral proprietors from whom it had
been collected, as much of the produce of the tax as remained in the
exchequer. It will be feen, in a future period of the hiftory of our
revenue, that this odious and oppreffive burden was revived by William
the Norman; a circumftance which greatly contributed to render him
obnoxious to the Engliſh.
It is impoffible to form any accurate calculation of the income that
would arife from thefe and other fources of revenue', which the king
of England enjoyed from the landing of the Saxons, to the deftruction
of the Heptarchy, and from thence to the Norman Conqueft. It is
computed that the tax called Danegeld, at the rate of a fhilling for each
hide of land; raiſed 12,180 Saxon pounds, equal in point of real value.
to £.360,000 of our modern money; and conſequently the tax laid on
by Canute anno 1018, amounting to 83,000 Saxon pounds, was equal
to a modern land tax of two millions and a half. It was found, how-
ever, too great a burden for the country to bear; and Danegeld, until
the reign of William the Norman, never afterwards exceeded four
fhillings per hide; but whatever was the income of the Saxon mo-
narchs (when they poffeffed abilities adequate to their fituation), their
revenue amply furniſhed them with the means of being refpected both
at home and abroad, and enabled a prince poffeffed of Alfred's genius
and capacity, to rival the fame, and to fhare in the immortality, of the
greateſt heroes and legiflators of antiquity.
6
CHAP.
• See Webb's account of Danegeld. Madox Excheq. chap. xvii. p. 1. Mort.
Hift. of England, vol. i. p. 118.
7 It is fuppofed that the Saxon monarchs exacted fome taxes of a feudal nature, par-
ticularly reliefs, then known under the name of heriots. It is alfo probable, that ſome
cuſtoms were paid on merchandiſe, and fome profit drawn from vacant benefices.
8 We are told that Alfred divided his revenue into two parts: he reſerved one part
for himſelf, the other he gave to the poor. His own ſhare was thrown into three di-
vifions, which he expended, in maintaining his houſehold, in paying his architects, and
other
OF THE BRITISH EMPIRE.
17
1
1
CHA P. IV.
General View of the ancient Revenue of the Crown of
England.
UNDER every great political fyftem of government there are four
principal fources of public revenue. The firft is, the income de-
rived from property veſted in the public; the fecond, the emoluments
of certain lucrative prerogatives annexed to the fovereignty; the third,
voluntary contributions from the people; the fourth, taxes or impofts,
not fpontaneouſly given, but legally exacted. From one or other of
theſe great fources all public revenue muft ariſe. Without entering
into any particular difcuffion of the principles on which they are re-
ſpectively founded, or enquiring where they are peculiarly productive,
or which of them are the leaft burthenfome to a nation, the fole intent
of the preſent chapter is to give a general view of the fources from
which the ancient revenue of the Crown of England was derived;
including alfo the firft dawning of our preſent fyftem of taxation.
I. Property veſted in the Sovereign.
lands.
In the preceding chapter it was obſerved, that the royal domains of 1. Crown
the Saxon monarchs were very confiderable. It is ſaid, that the crown
was poffeffed of 1422 manors, befides other lands and quit rents, in the
time of Edward the Confeffor; and great additions muſt have arifen
other curious workmen, and in penfions to ftrangers united to his court, for the inftruc-
tion of his ſubjects. The portion of his revenue appropriated for charitable ufes, was
divided into four parts. The firft was affigned for the relief of the poor in general; the
fecond, for the maintenance of the monafteries he had founded; the third, for the fub-
fiftence of the profeffors and ſcholars at Oxford; the fourth, for poor monks, whe-
ther English or foreigners. Hearne's Life of Alfred, p. 204.
Such as with to be more fully informed with regard to the revenue of England under
the Saxon government, may confult Henry's Hiftory of Great Britain, vol. ii. p. 258.
Campbell's Political Survey, vol. ii. p. 499. and Stuart's Hiftorical Differtation on the
English Conftitution, p. 105. 137. and 142.
D
from
f
18
HISTORY OF THE PUBLIC REVENUE
2. Forests.
3. Mines.
from the confifcated eftates of thoſe who fupported Harold, or who
were afterwards driven into rebellion by the tyranny of the con-
queror.
But whatever might be the original value and extent of the landed pro-
perty of the crown, and however great the acceffions which it might re-
ceive, and though the ſtricteſt laws were enacted to prevent its aliena-
tion, and to check encroachments, yet the royal domains of England
have ſhared the fame fate with thofe of other countries, and hardly a
veſtige now remains of the extenſive property which William I. and his
fucceffors were poffeffed of. Nor is this to be wondered at; for when
great eſtates are with difficulty kept for any length of time in the fa-
milies of private individuals, it cannot be expected, that property much
more valuable and extenſive can be long preferved from the artful ra-
pacity of needy favourites, the natural profuſion of courts, or the ne-
gligence and treachery of their officers.
The royal foreſts yielded no direct or certain revenue to the crown:
an income could not be expected from waſte lands fet apart for deer
and other animals of the chace, and deftined not for the king's profit,
but for his recreation and amufement. However, as many laws were
paffed, and particular courts and officers were appointed, for preſerving
the royal game, and as thofe who trefpaffed upon the royal forefts,
were liable to heavy fines and amerciaments, profufe and needy monarchs
were thence enabled to raiſe confiderable fums from fuch of their
fubjects as lived in their neighbourhood'. This mode of raifing
money was often complained of as oppreffive. It fell into difufe about
the time of Charles I. and indeed was totally incompatible with the
nature and principles of a free conftitution.
The only remaining ſpecies of property which the crown of Eng-
land was intitled to, was a right to all the mines of gold and filver dif-
covered in the kingdom: nay, it was contended, that if the ſmalleſt
quantity whatever of theſe precious metals was diſcovered in a mine, it
inſtantly became the property of the monarch. This harth and im-
The king poffeffed fixty-eight forefts, thirteen chaſes, and ſeven hundred and eighty-
one parks in different parts of England, which, confidering the extreme paffion of the
Engliſh and Normans for hunting, were ſo many fnares laid for the people, by which.
they were allured into treſpaſſes, and brought within the reach of arbitrary and rigorous
laws. Hume, Appendix ii. vol. 2. p. 136.
politic
OF THE BRITISH EMPIRE.
19
1
1
politic idea, was not completely effaced, until it was enacted ſoon after
the Revolution, that the crown ſhould only be intitled to purchaſe the
ore at a certain fixed price'; and even that provifion was of too unpo-
pular a nature to be carried into practice.
2. Lucrative Prerogatives.
certain rights annexed to the
They are privileges entruſted
The prerogatives of a fovereign are
royal dignity with which he is invefted.
to him for the common benefit of the public; and, as they are pro-
perly confined to the fovereign, and ought not to be ſhared by any of
his fubjects, they are fometimes attended with lucrative advantages,
and have yielded, when at their greateſt height, no inconfiderable
revenue.
"The
SEIGNIORY.
The king, in particular, by the laws of England, was accounted RIGHT OF
the fovereign lord, and original proprietor of all the lands in his king-
dom. It was fuppofed that every portion of the ſoil was at firſt granted
by the crown, and was holden of it, fubject to military ſervices.
"intention of this fiction was, to enable the king, by his royal prero-
"gative, to put the kingdom in a ſtate of defence, whenever it might
"be neceffary; and every holder of land was thus obliged to maintain
"the king's title, and to defend his territories with equal vigour and
fealty, as if he had received his eftate upon that exprefs condition *.'
But this ſyſtem, originally intended for the public protection and fecu-
rity, was afterwards made a pretext to introduce a plan of tyranny and
oppreffion hardly to be equalled in hiſtory.
66
}
For, in the first place, the proprietor of every eſtate in the kingdom, Eſcuage.
in proportion to its extent, was burdened with military fervices; for
which, in procefs of time, a certain fum of money was taken, by way
of fine or commutation, called efcuage. 2. He was alſo ſubject to Quit rents.
1 Will. and M. feff. i. c. 30. 5 Will. and M. c. 6.
s Black. Comm. on the Laws of England, book i. chap. vii. vol. i. p. 239, 7th edit.
4 Ibid. vol. ii. p. 51. 53, &c.
S
money paid in lieu of the fervice of the fhield.
D 2
Eſcuage is derived from efcu (French) a fhield; and efcuage was a certain ſum of
certain
:
រ
20
HISTORY OF THE PUBLIC REVENUE
1
Aids.
Relief.
Wardſhip.
certain annual payments or rents in money, laid on as a mark of the
lord's pre-eminence, and in order to keep the vaffal in perpetual re-
membrance of his feudal fubordination. 3. He was obliged, under
the name of aids, to give pecuniary affiftance when neceffary, to ran-
fom the king's perfon if taken prifoner, to furniſh a portion to his
daughter, and to contribute to the expence incurred on making his
eldeſt fon a knight. 4. It was fuppofed, upon the death of the
feudal poffeffor, that the eftate ought to revert into the hands of the
fuperior lord, and under that pretence it was contended, that the new
vaffal ought to make him a prefent of a fuit of armour (which, in an-
cient times, was reckoned peculiarly valuable), or to pay a fine under
the name of relief; to which, in proceſs of time, an addition was
made called primer feifin, intitling the king to demand from the heir of
any of his tenants in capite, who died feized of a knight's-fee, one
year's profit, upon his being put in poffeffion of the eftate. 5. If the
heir was under age at the death of his predeceffor, the king was in-
trufted with the wardship, or the cuftody both of his perſon and eſtate,
and enjoyed the income which it yielded, till he arrived at the age
of
twenty-one years, and confequently was able to perform the fervices.
ftipulated for his feud. If the heir was a female, fhe came of age at fix-
teen years, being then fuppofed capable of marrying a huſband who
might act in her ftead. 6. If the poffeffors of feudal eftates had the
power of entering into matrimonial connections during their minority,
according to their own fancy and humour, they might introduce into
the joint poffeffion of the fief, an enemy of the lord; perhaps one de-
fcended from a family with whom he had an hereditary variance ˚.
Upon this ground, the feudal fuperior was invefted with fome degree
of control over the ward's marriage, and at length the right of felling
the ward in marriage, or of receiving the price or value of the match,
Fine of alie- was confirmed by an exprefs act of the legislature. 7. It was afferted
by the feudal lawyers, that when the king gave an eftate to be holden
of himſelf and his fucceffors, it was a gift to a chofen and ſelected in-
dividual, which no other perfon ought to be put in poffeffion of, with-
out his privity and confent; and that any attempt to infringe upon this
effential ftipulation, by alienating the lands to a ftranger, ought to be
Marriage.
nation.
6
Dalrymple on Feud. Prop. chap. ii. fect. 2. 4th edit. p. 38.
attended
OF THE BRITISH EMPIRE.
21
attended with the forfeiture of the grant'. This right was exerciſed
with great feverity, during feveral reigns in the earlier part of the
Engliſh hiſtory, until at laft it was determined by ftat. Edward III.
ċ. 12. that one third of the yearly value of the lands ſhould be paid by
way of fine, for a licence of alienation; but if the tenants prefumed to
aliene without a licence, that they ſhould be liable to a full year's rent
of the eſtate. 8. Efcheat was the laſt fruit or incident refulting from the Efcheat.
feudal fyftem. It was a ſpecies of confifcation, by which the feud
reverted to the fovereign, either from the delinquency of the vaffal
(who held it under the implied condition that he ſhould not prove
guilty of any act of felony or treaſon), or in confequence of his dying
without an heir either fit to perform the ftipulated fervices, or intitled
by the original grant to fucceed to the feud.
Such was the heavy and complicated fyftem of perfonal flavery, and
of financial oppreffion, to which this country was fubject, from the in-
vafion of William the Norman, until the reſtoration of the regal go-
vernment in the year 1660. Fortunately, by 12 Car. 2. chap. 24. the
whole fabric was demoliſhed at one blow, and it is now a matter of juſt
aſtoniſhment how a nation who gloried in its freedom, and boaſted of
the mildneſs and benignity of its laws, could fuffer itſelf to be loaded
for fo many centuries with a burden, which, notwithstanding fome
partial mitigations, feems to have been almoſt infupportable. This,
among many other examples which might be produced from hiftory,
clearly evinces how ſtrongly men are rivetted to ancient uſages, and
how difficult it is to bring about any material innovation, however
falutary it may prove.
But theſe were not the only advantages attending the right of feig-
niory: for, as lord paramount of the kingdom, the fovereign claimed
all bona vacantia, or goods to the property of which no other perſon
had any legal pretenfion. Upon this principle chiefly, the king of
England was intitled, 1. To all treaſures of money, gold, filver, plate, Treafure-
2. To waifs, or goods ftolen Waifs..
or bullion, found hidden in the earth.
and waived, or thrown away by the thief in his flight, for fear of being
2 Bacon's Works, folio edit. vol. iii. p. 551.
• Lawyers make a diſtinction between efcheats and forfeitures. See Wright on Te-
mures, p. 117. note x.
apprehended,
trove.
$
22
HISTORY OF THE PUBLIC REVENUE
Eftrays.
Royal fish.
Goods
wrecked.
apprehended, provided the party injured did not exert himſelf in the
purſuit or conviction of the offender. 3. To eftrays, or valuable
animals found wandering without an owner, which, it is faid, belonged
to the king, not only as bona vacantia, but alſo to recompenſe the
damage done by them to the foil, of which he is the general proprietor.
4. To certain fiſh called royal on account of their fize and value, if
they were either thrown afhore upon the coaft, or caught fo near it, as
to require little dexterity to kill them. 5. To goods wrecked, if no
proof could be made within a certain ſpace of time who were the legal
proprietors; a privilege perhaps given to the fovereign with a view of
inciting him to check the inhuman practices too common upon fuch
occafions, when fuch goods are fuffered to be pillaged by the inhabit-
ants of the coaſt. 6. To the annual profits arifing from the eftates
of idiots, or natural fools, after defraying the expence of their main-
tenance. For an idiot was accounted nobody by the law: his effects,
therefore, during his life, were confidered as a ſpecies of bona vacantia,
and confequently belonged to the fovereign; but after his death, they
Goods unin- again reverted to their natural owners. Laftly, To the perfonal, as
well as landed property of every individual, to whofe inheritance no
juft and legal claim could be produced.
Cuftody of
idiots.
herited.
1. Military
prerogatives.
However trifling any advantages ariſing from fuch rights may appear
in modern times, yet anciently they were accounted of confiderable
value and importance. Nor was it reckoned at all beneath the dignity
of the crown to exercife any of its rights, even the moſt obnoxious,
provided it yielded profit to the exchequer.
The remaining prerogatives of the crown attended with any lucra-
tive advantages, were either of a military-judicial-political-inquifi-
torial-commercial, or ecclefiaftical nature.
The right of declaring war, and of making peace, is a very import-
ant prerogative, of old veſted in the fovereigns of this country. It was
originally given to the monarch, in confequence of his having uſually
acted as the general of the community; and it was fuppofed, with
fome degree of juftice, that none was fo capable of judging when the
nation was in a condition to carry on war, or required a peace, as the
commander of its forces. This prerogative was attended with fome
profit. For, in confequence of it, the crown was intitled to a fhare of
the
OF THE BRITISH EMPIRE.
23
the plunder taken in war, and it received into its exchequer, fuch
tributes as the enemies of the State were compelled to pay, in order to
purchaſe, either a continuation of peace, or a ceffation from hoftilities.
revenue.
The power of diftributing juftice, either perfonally, or through the 2. Judicial.
medium of courts inftituted for that purpofe, was another royal pri-
vilege, acquired at an early period of fociety, and productive of fome
As the adminiftrator of the laws, and guardian of the
public peace, all fines and pecuniary puniſhments were appropriated to
the uſe of the fovereign; nay, under the pretence of giving a recom-
pence to the king and his officers for their trouble in adminiftering
juſtice, they were permitted to exact fees in the courfe of a great
variety of legal proceedings, the profits of which were originally in◄
tended for the royal maintenance, though fince diverted to leſs uſeful
or effential purpoſes.
The fovereign of England was accounted the fole fountain of ho- 3. Political
nour-of office, and of privilege. It will appear, in the progrefs
of this work, that this prerogative yielded fome profit to the exche-
others making
quer; fome monarchs difpofing of offices for money;
a fale of titles and honours; and in general, all of them demanding
pecuniary returns for any privileges they beftowed, either on corporate
bodies or individuals.
torial.
It was imagined, that the king would often find it neceffary, with 4. Inquifi
a view of examining into the real ftate and circumftances of the
country, to make a perſonal progreſs throughout his dominions; and,
as the removal of the court would occafion an unuſual demand, at the
places to which it went, for every fpecies of provifions, it was thought
requifite to give the crown a right of purchafing neceffaries for the
maintenance of the royal houſehold, at an appraiſed valuation, in pre-
ference to all other perfons, and even to force the fale or the hire of
This pre-
any thing peculiarly wanted, without the owner's conſent º.
rogative, which obtained the names of purveyance and pre-emption, was
afterwards extended to every ſpot where the royal family refided. But
the powers veſted in the purveyors, or officers appointed for that pur-
poſe, being greatly abufed, and indeed becoming every day lefs requifite,
2 Hume's Hiſtory, vol. v. p. 365. 490. 547-
II
24.
HISTORY OF THE PUBLIC REVENUE
5. Com-
mcrcial.
6. Ecclefia-
itical prero-
gatives.
in confequence of the great increaſe of cultivation and improvement,
and of the abundance which neceffarily followed, the whole right was
aboliſhed, at the fame time with the harſh and obnoxious fyftem of
military tenures; and, by 12 Car. II. chap. 24. the hereditary ex-
cife, and a duty on wine licences, were fettled on the crown in their
ftead.
In that capa-
The king was alſo accounted the arbiter of commerce.
city, he had the direction and government of the internal trade of
the country.
He alone eſtabliſhed public marts; and he might
appropriate to his own ufe, the tolls and other profits ariſing from
them. He had the entire regulation of the weights and meaſures of
the kingdom, a right that was attended with fome profit, until by
ſtatute 11 and 12 W. III. chap. 20. the office of aulnager (who re-
ceived certain fees for meaſuring cloths for fale) was taken away;
and, as money is the medium of commerce, it was in confequence of
the fame prerogative, that the crown enjoyed the right of coining
money, and the gain attending it". Nor were theſe the only ad-
vantages reſulting from this right; for, in virtue of acting as the
arbiter of commerce, the king claimed the lucrative privilege of grant-
ing patents and monopolies, which, in the reigns of the firſt monarchs
of the Stuart race, was particularly abuſed: nay, the poft-office is pro-
perly a mercantile monopoly, which is ftill retained for the benefit of
the public, yielding no inconfiderable revenue.
Since the reign of Henry VIII. the monarchs of England have been
accounted the head of their people, not only in civil, but in ecclefiaftical
matters; and, even before the Reformation, they enjoyed fome pri-
vileges and revenues from the church, not, however, attended with
much real profit, as they were held under the implied truft of being
alone made uſe of for the advantage of the clergy. Without examin-
ing the propriety of that reſtriction, it is fufficient to remark, that either
10
The profit of coinage was five fhillings in every pound weight of gold; out of
which a ſhilling, and fometimes eighteen pence, was given to the maſter of the Mint,
for his work and trouble; and a fhilling for every pound weight of filver, of which the
king referved only a fourth part to himſelf. Afterwards, in the reign of Henry V. the
feignorage on filver was raiſed to fifteen pence. Sir M. Hales's Sher. Accounts,
P. 6.
as
OF THE BRITISH EMPIRE.
25
C
}
as head of the church, or before the Reformation, as poffeffing royal
authority, the King claimed a right, 1. To the profits of all archbiſhop-
rics and biſhoprics during a vacancy. 2. To a corody, or a right of
compelling any of his bishops to maintain one of his chaplains, or to
give him a benefice. 3. To the tythes of all extra-parochial diſtricts;
and laſtly, to the firſt fruits and tenths of the livings of the clergy,
which they originally paid to the pope; but which, upon the deftruc-
tion of his authority in England, were demanded by the King, as his
fucceffor in clerical fupremacy.
Such were the lucrative prerogatives annexed to the fovereignty of
England, of which it was thought neceffary to give this brief account,
principally extracted from the works of that learned commentator on
the laws of England, Sir William Blackftone, who had collected almoſt
every thing that either has been, or could be faid upon the ſubject.
The author flatters himſelf, that from this ſhort ſtatement and explana-
tion of the feudal terms, any obfcurity in the following chapters
will be prevented. With regard to thefe prerogatives, it
regard to theſe prerogatives, it may in gene-
ral be remarked, that they were of too harsh and individious a nature,
to be productive of much income, without occafioning the loudeft
complaints: and hence it was found neceffary, by other means, to provide
a revenue.
III.
Voluntary Contributions.
When the income of the public is found inadequate to the national
expences, it is natural for a Monarch poffeffed of any degree of popu-
larity, in the first place to truft to the voluntary contributions of his
fubjects; and in the financial hiſtory of England, it will be found, that
various benevolences or free gifts, were at different times paid by the
people. But fupplies of fo precarious and uncertain a nature could
not be much depended on; and it was neceffary at laſt to have recourſe
to taxes or contributions, exacted by the government of the country,
without particularly confulting the inclinations of the people, in their in-
dividual capacity; a fyftem of revenue, which, though, when abuſed,
it has given birth to much diſcontent, and indeed has occafioned many
revolutions, yet has hardly ever been accompanied either with much
E
diſguſt
26
HISTORY OF THE PUBLIC REVENUE
{
1. Taxes in
kind.
2. Perfonal
Taxes.
3. Taxes on
the Jews.
diſguſt, or with great oppreffion, where this rule has been invariably ad-
hered to, never to exact from any individual a fum of money, which, con-
fiftently with his circumftances and the fituation of the public, he ought
not, on every principle of justice, SPONTANEOUSLY to have given.
IV.
Taxes.
Taxes are the laft legal expedient for procuring a public revenue, to
which a financier can apply. They were not unknown in England prior
to the Revolution; but as they bore no reſemblance, either in reſpect to
their weight, or the variety and number of their branches, to the im-
menſe farrago of heavy burdens with which we are now loaded, it is
hoped that the following general view of this part of the fubject will
fuffice.
The ſcarcity of money in England, as well as in other kingdoms of
Europe, prior to the diſcovery of America, rendered it occaſionally ne-
ceffary to levy taxes in kind. Of this, fome inftances occur in the
Engliſh hiſtory, particularly in the time of Edward III. who, without
either money or fome valuable commodity, could not have carried on
his bold attempt of wrefting the crown of France from the houfe of
Valois. In the twelfth year of his reign, anno 1338, he procured the
enormous grant of half the wool in England, amounting to 20,000
packs, which was then worth, according to fome authors, 40l. a pack,
and confequently muſt have brought in the immenfe fum of 800,000 7.
Other hiſtorians, however, deny that wool was at that time ſo valuable.
Poll taxes, by which a man is compelled to pay for his perfonal ex-
iſtence, have always been accounted peculiarly hateful and oppreffive.
It is well known, that an attempt to levy fuch a tax in the reign of
Richard II. occafioned an infurrection under the command of Tyler,
Straw, and others, which had nearly ended in a revolution"; and al-
moſt in every inftance, when attempted in England, they have either
proved obnoxious or unproductive. One exception, however, it is ne-
ceffary to take notice of.
From the period of the Norman invafion, to the eſtabliſhment of
the Hanfeatic league, the commerce of the northern parts of Europe
Stevens's Hiftory of Taxes, p. 118.
was
OF THE BRITISH EMPIRE.
27
was principally carried on by the Jews; and as, in addition to the pro-
fits of trade, they enjoyed the more lucrative gains of ufury, it is eaſy
to perceive that they muſt in time have engroffed a great proportion of
the wealth of the country. But fuch as were ſettled in England, did
not long eſcape the fatal notice of the ſovereign and his miniſters; and
as in confequence of the method in which their riches were acquired,
and the peculiarity of their dreſs and manners, joined to religious pre-
judices, they were detefted by the people at large, the king met with
no oppofition in oppreffing and pillaging them, in any way he
thought proper. A court denominated the Exchequer of the Jews, was
inſtituted for the fole purpoſe of managing the revenue of Judaiſm, as it
was called, which remained unaboliſhed until the year 1290, when the
Jews were expelled from England by Edward I ".
money.
The ſpecies of houſe tax, called Hearthmoney, is among the moſt 4. Hearth-
ancient in the kingdom. It is even mentioned in Doomſday Book,
under the name of Fumage, or Fuage, and conſequently muſt have
exifted before the Conqueft". By Stat. 13 and 14 Car. II. ch. 10.
an hereditary revenue of two fhillings for every hearth, in all houſes
paying to church and poor, was granted to the crown for ever.
But as
the duty could not be regularly collected, unleſs the revenue officers
were empowered to view the infide of every houfe, it was thought
contrary to the principles on which the Engliſh government is founded;
and upon that ground, by
that ground, by 1 W. & M. feff. 1. ch. 10. it was utterly
taken away, in order (it is ſaid in the preamble of the bill) to erect a
"laſting monument of their Majefties goodneſs, in every houſe in the
kingdom."
CC
<C
But however neceffary it might be, in confequence of the politics of
the times, to enact fo popular a law, yet the real juſtice and propriety
of fuch an alteration may now be queftioned. The tax might furely
be levied without much hardſhip to the poor, or any great encroach-
ment upon the nice feelings of the wealthy; and as the tax upon coals,
carried by water, is a great diſcouragement to the manufactures and
agriculture of the country, checks the increaſe of our naval ſtrength, and
is in every reſpect abfurd and unequal, it is hoped that the time will come
12 See Maddox's Hift. Excheq. c. 7. and Tovey's Anglia Judaica.
13 Du Cange, voce Focagium. -Spelman, woce Fuage.
!
E 2
when
28
HISTORY OF THE PUBLIC REVENUE
5. Land tax.
6. Taxes on
perty.
when fo impolitic a daty will be abrogated, and the more equal and
falutary tax of Hearth-money eſtabliſhed in its room.
Before this part of the ſubject is concluded, it may be proper to re-
mark, that for fome years pofterior to the Conqueft, there exiſted in
England, a particular kind of Hearth-money, called Moneyage, or Mint-
age money, originally levied in Normandy, and thence imported
into this ifland. It was a tax of a fhilling for each Hearth, payable
every three years, by way of bounty or recompence to the king, not to
alter or debaſe the coin, which he was entitled to do by his prerogative.
This branch of the revenue was aboliſhed by the charter of Henry I.
and it was fo particularly obnoxious to the Engliſh nation, on account
of its Normanic original, and its repugnance to the laws of the Con-
feffor, that none of that monarch's fucceffors attempted to revive it.
The origin of land taxes, in this country, may be traced to the duty
called Efcuage, or Scutage, which has been already taken notice of, as
refulting from the feudal fyftem. At first, it was levied on the proprie-
tors of land by the royal authority; but in confequence of this right
being abuſed, it was at laft declared by Magna Charta, and afterwards
repeatedly confirmed by acts of parliament, that no Scutage ſhould be
impoſed without the conſent of the great men and commons, in parlia-
ment aſſembled. This tax was fometimes exacted, under the name of
Hydage, or Carrucage. But taxes on land came, at laſt, to be included
under the general name of fubfidies, and of monthly affeffments.
Nor was perfonal property exempted from incidental burdens. It
perfonal pro- will be feen, in the courſe of this work, that a tenth or fifteenth part of
the moveables, or perfonal eftates of the people, was occafionally given
to the king for carrying on his government. Tenths were firft granted
in the reign of Henry II. to enable him to defray the expences of a
pious expedition he had projected, in order to check the progreſs of
Saladine, who threatened to drive the Chriftians from their poffeffions
in Afia "; and hence it obtained the name of the Saladine Tythe. In
the eighth year of the reign of Edward III. this tax was brought to a
certainty. A tenth and fifteenth was then raiſed, to the fum of 29,000k..
14 Hume, Append. II. p. 132. Mort. vol. i. p. 206.
Is Hume, vol. i. p. 458. Black.. Comm.. vol. i. p. 308.
equal
OF THE BRITISH EMPIRE.
29
equal to 58,000l. of our prefent money "; and, ever after, it was
affeffed according to that ſtandard over the whole kingdom, without any
alteration in the proportion of each diſtrict.
A fubfidy was properly neither a tax upon perfonal or landed pro- 7. Subídies.
perty, but upon income. Every defcription of perfons, in proportion
to their reputed eftates, paid after the nominal rate of four fhillings in
the pound for lands, and two fhillings and fixpence for goods, whilſt
aliens paid in a double proportion. This tax was originally introduced
in the reign of Richard II. and was calculated at ſo low a valuation, that
one lay fubfidy, at the above rates, did not exceed 70,000l. which, in
the ſhape of a modern land tax, would now produce two millions. But
it is to be remarked, that the eftates of the clergy were not included in
this fum; for their fubfidies (until the 15th of Charles II.) were granted,
not by parliament, but by their own convocation; and a fubfidy from
the church, at the rate of four fhillings in the pound, produced about
20,000l. The laft tax, by this mode of fubfidy, was levied anno
1670; fince which period, it was laid afide, and what is now called the
Land Tax, though it alfo impofes a burden upon perfonal property,
was eſtabliſhed in its room.
The cuſtoms were an old branch of the royal revenue. It is faid, 8. Cuſtoms,
that they were, at firft, ſmall fums paid by the merchants for the uſe of
the king's warehouſes, weights, meaſures ", &c. Afterwards, a tax,
known under the name of Prifage, took place, which was in fact no-
thing but a branch of purveyance; in virtue of which, the king's
officers feized two tuns of wine from every ſhip belonging to England,
importing twenty tuns, or more, in order to fupply the king's houſe-
hold with that valuable article; and for which they paid at the mo-
derate rate of only twenty fhillings per tun. Merchant ſtrangers were
exempted from the tax of Prifage, but in lieu thereof, paid a duty of
two ſhillings for every tun they imported, which was called Butlerage,
becauſe it was paid to the king's butler. The fubfidy called Tunnage and
Poundage, or a tax upon every tun of wine, and every pound of mer-
chandiſe, imported into this country, firft took place in the reign of
Edward I. But the hiſtory of that important branch of the revenue,
16 Hume, vol. iii. p. 178,
12 Gilb. Excheq. p. 214.
Note Z, vol. vi. p. 193
Hume, vol. ii. p. 177-
and
1
30
HISTORY OF THE PUBLIC REVENUE
9 Excife.
and the income which it produced, will more fully appear, in the farther
progrefs of this work
The excife was firſt eſtabliſhed in England by the long parliament,
anno 1643. It is fuppofed, that the plan was firft adopted, in confe-
quence of its ſucceſs in the neighbouring commonwealth of Holland.
It is not to be wondered at, that fo efficacious a mode of raiſing money,
when once it found admittance, fhould be perpetually increaſing. Its
preſent fize and magnitude, and the variety of its branches are well
known; and, unfortunately, it is more likely to receive fome additions,
than to fuffer any diminution.
Thus it appears, that there is hardly any productive tax to which we
are now ſubject, which may not be traced to a period earlier than the
Revolution, though the duties which then exifted, were neither fo
heavy in their amount, nor extended into fo many various branches.
The preſent ſituation of England, however, in regard to financial
burdens, cannot justly be compared with the paft, without taking into
our confideration, the illegal exactions of the fovereign, and the wealth
drawn from this country, by the extortions of the church of Rome.
66
5.
Regal Exactions.
Hume juftly remarks, "That the ancient kings of England, feem to
"have put themſelves on the footing of thoſe barbarous eaſtern princes,
“whom no one durft approach without a prefent; who fell all their
good offices; and who intrude themſelves into every buſineſs, that
"they may have a pretence for extortion"." And it is certain, that if
the difgraceful means they adopted to procure money, had refted folely
on the authority of hiſtorians, inſtead of remaining in our public records,
the ſtanding monuments, and indiſputable evidence of their ſhameful
venality, they would have been rejected as incredible. The exactions to
which I allude, are known under the names of Oblations-Queen-Gold
-Amerciaments-Talliages-and Farms of Counties; to which might
be added, extorted Benevolences, and compulfive Loans, if they re-
quired any particular explanation.
18 Hift. vol. ii. p. 131.
Oblations,
OF THE BRITISH EMPIRE.
31
Oblations, or Fines, as they were alfo called, are defcribed to be 1. Oblations.
voluntary proffers of money, or of any other article, or commodity, to
procure the favour of the crown, or to deprecate its refentment. It is
hardly poffible to enumerate the various ſpecies of them, which appear
upon the ancient rolls of the revenue; but it may not be improper to
give a fhort view of the moft fingular and important.
1. The Kings of England were, in the first place, accuſtomed to re-
ceive confiderable fums of money for granting, or confirming rights and
franchiſes of every kind. A few inftances are fufficient to fhow the
general nature of theſe payments. Robert de Cardinan gave ten marks,
that he might have a market at the ancient borough of Leftwithiel ';
the burgeffes of York, 200 marks for a confirmation of their liberties:
the burgeffes of Bedford paid forty marks, to have the fame liberties as
the burgeffes of Oxford: the vintners of Hereford paid forty fhillings,
to have the king's grant, that a fextercium of wine might be fold for
ten pence, in Hereford, for the ſpace of a year ".
2. A confiderable revenue alfo accrued to the Crown, by the fines
which were paid on account of proceedings at law. The fame Sove-
reign who pretended to be the fountain of juſtice, became too often the
fource of iniquity and of oppreffion. Even in the reign of Henry II.
who was undoubtedly the beft of the Norman Princes, there are in-
ftances of money being given to the King by feveral of his fubjects, for
ſtopping or ſuſpending pleas, trials, and judgments, or for expediting
them as ſpeedily as poffible; for procuring reftitution of lands, or
chattels, or that they might not be diffeifed; for obtaining an acquittal
of certain crimes, and certain modes of trial, or a diſcharge from im-
priſonment; and for infuring the king's protection, or his mediation in
their affairs 20. Nor was it unufual for a creditor, to offer the fovereign
a certain portion of the debt, which he, as guardian of the laws, and
the executor of juftice, would affift him in recovering ". To guard
againſt ſuch ſhameful abufes, was the object of the famous claufe in
18 6. Ric. I. Madox, p. 274.
19 For a variety of other inftances; fee Madox's Hift. Excheq. ch. 11.
20 Lytt. Hift. vol. iii. p. 261.
21
a¹ Madox, p. 311. Hume's Hift. vol. ii. p. 132.
Magna
32
HISTORY OF THE PUBLIC REVENUE
ແ
Magna Charta: Nulli vendemus, nulli negabimus, aut differemus rectum,
66
aut juftitiam 22.
99
3. A variety of inftances might alfo be produced, of oblations of fo
miſcellaneous a nature, that it is impoffible to reduce them under parti-
cular heads. Many fines were paid, for leave either to hold or to quit.
certain offices. The tenants of the crown, who held in capite, frequently
proffered confiderable fums of money, that they might not be compelled
to marry, or at leaſt, might be permitted to marry whom they chofe.
None were fuffered to exercife commerce, or induftry of any kind, un-
leſs they furniſhed the crown with money. Thus merchandiſe, in all
its various branches, became a fruitful fource of revenue. Some in-
ſtances likewiſe occur, of what were called, concurrent fines, and counter
fines: The firſt, when both parties concerned in any matter, fined to
obtain the fame thing: The laft, when their requeſts to the crown were
directly oppofite. But it is to be remarked, that though the money
was paid by each fuitor, yet, that the party who was unſucceſsful in the
fuit, had his money returned to him 23.
4. Nor was there any profit, however fmall, or any buſineſs, how-
ever ſtrange, unimportant, or even diſhonourable, in which the king
would not interfere, when an oblation was proffered. Roger, fon of
Nicholas, gave twenty lampreys, and twenty fhads, for an inqueſt to
find, whether Gilbert, fon of Alured, gave to Roger two hundred
muttons, to obtain his confirmation for certain lands, or whether Roger
took them from him by violence 24. The wife of Hugh de Nevile (who
was probably a prifoner under cloſe confinement) gave the king two
hundred hens, that ſhe might ſleep with her huſband one night; and
not being able to provide them immediately, her huſband, and Thomas
de Sanford, pledged themſelves, that they ſhould be delivered within a
limited time". Peter de Perariis gave twenty marks for leave to falt
fiſhes, as Peter Chevalier uſed to do. The Abbot of Rucford
gave ten
marks for leave to erect houſes, and place men upon his lands, near
24 Madox, 305.
23 Lytt. Hift. vol. iii. p. 262.
22 Art. 47.
25 Ditto, p. 326. This fingular Oblation was proffered, in the fixth year of the reign
of John. Lord Lyttelton, however, properly remarks, that the ludicrous kind of tyranny
which the King exerciſed over his ſubjects, muft rather be imputed to the character of the
man, than to the law, or cuſtom of the times. Hift. of Hen. II. vol. iii.
p. 263.
2
Welhang,
OF THE BRITISH EMPIRE.
33
Welhang, to fecure his wood there from being ftolen. Ralf Bardolf was
fined five marks, for leave to riſe from his infirmity: and to the diſ-
grace of the laws and juftice of England in thoſe days, the rich and
powerful county of Norfolk thought it neceffary to proffer an oblation
of forty marks, in order that it might be fairly dealt with: the burgeffes
of Yarmouth, twenty-five marks, that they might be dealt with according
to the king's charters, which they have for their liberties; and ſeveral
hundreds of Northamptonſhire, fixty marks, that they might be heard
without impeachment
26
2. Queen-
Gold.
When an oblation was proffered to the king in money, the Queen- 2:01.
confort at the time was entitled to demand from the party, a certain
addition to it, founded on the fuppofition, that when the king granted
any ſpecial favour to any of his fubjects, or mitigated any burden or
penalty to which they were liable, that ſhe had interpofed her good
offices in behalf of the ſuitor. This ancient perquifite was called Queen
Gold, or Aurum Reginæ, becauſe the queen received an ounce of gold,
for every hundred marks of filver promiſed to the king
27
ments.
The pecuniary puniſhments impofed by the fovereigns of England, 3. Amercia-
for crimes and trefpaffes committed by their ſubjects, formed another lu-
crative and diſgraceful branch of their revenue; and as no limit whatever
was put to theſe amerciaments, until they were fortunately brought
within fome reaſonable bounds by Magna Charta, many were obliged
to pay great fums of money, and were brought to the brink of ruin, for
trivial, and fometimes imaginary offences. Among the various in-
ftances which may be found in Madox's Hiſtory of the Exchequer 23, the
following will fufficiently explain the nature of theſe exactions. The
men of Northumberland were ammerced, for not cutting off the feet of
their dogs Harvey, the clerk, for impleading the abbefs of Winton,
contrary to the king's command 3: Ralph Fitz-Roger, for ſaying a
thing which he afterwards contradicted": Stephen de Mereflet, pro
ftulto refponfo. Gilbert de Henley, pro falfo dicto: Nicholas, fon of
29
30
Madox, Hift. Excheq. p. 295, 296. Thefe infamous tranfactions took place in the
reigns of John, and of Henry III.
27 Dial. de Scaccario, lib, ii. c. 26. Blackft. Comm. vol. i. p. 219. Lytt. Hift.
vol. iii. p. 263. Henry's Hift. vol. iii. p. 351.
23 Chap. 14.
→› Madox, p. 388.
39 Ibid. p. 390.
F
s¹ Ibid. p. 388.
Liulf,
34
HISTORY OF THE PUBLIC REVENUE
4. Talliages.
32
Liulf, pro ftulto dicto: Henry, the dean, and many others, pro ftulti-
loquio ": The hundred of Boctone, for the default of a certain maid-
fervant, who was prefent when a horſe ftruck a man, and killed him 33.
The amerciaments for the forefts were particularly oppreffive; and by
trefpaffes, defaults, purpreſtures, and otherwiſe, a great revenue was an-
nually raiſed from the diſtricts in their neighbourhood 34.
The tenants in the royal demefnes (in which, originally, all the great
towns in the kingdom were comprehended) were alſo fubject to certain
arbitrary exactions, called talliages, or cuttings, becauſe a certain pro-
portion of their perſonal property was under this name taken from them,
and appropriated to the ufe of the ſovereign ". In the king's manors-
and landed eftates, fuch exactions were totally arbitrary; but in towns,
it was a kind of free-gift from all the inhabitants, as a body corporate,.
who were affembled together by the juftices itinerant in the courfe of
their circuits, in order to be made acquainted with the king's neceffities,.
and the fum which he expected. If any town, or borough, however, in
confequence of this requifition, did not give, according to the wants or
expectations of the crown, the jufticiar enquired into their behaviour, and
into the manner in which their privileges were made ufe of, and any
plauſible pretence was embraced, of iffuing out Quo Warranto's, and of
confifcating the charters they had received ". Thoſe who held their
land in Frank Almoigne, or were fubject to military fervices, and to the
commutation known by the name of Efcuage, were exempted from this
exaction 37. But in proceſs of time, when the profits of Efcuage (for
reaſons which will be afterwards mentioned) were greatly reduced in
value and amount; and when it was perceived, that in confequence of
the great wealth acquired by thofe towns which were liable to be tal-
liaged, that they were capable of being made a great and productive
fource of revenue; it was then that Edward I. faw the propriety of
collecting the military and commercial tenants of the crown into one
body, and of procuring, by means of fuch an union, not partial aids,.
but fubfidies from the kingdom in general. The happy effects refulting,
from this judicious meaſure are well known. The public revenue was
33 Ibid. p. 393.
34 Ibid. p. 272.
35 Talliage is derived from the French verb Tailler, to cut. See Du Cange Gloff.
voce Tallagium.
36 Gilb. Excheq. p. 20. 21. 33. 34. & 192.
32 Madox, p. 392.
37 Lytt. Hift. vol. iii. p. 256.
increaſed,
OF THE BRITISH EMPIRE.
35
increaſed, and the lower houſe of parliament thus acquired that weight
and confequence in the ſtate, which enabled it to eſtabliſh the rights and
liberties of the people upon the firmeft foundations.
5. Farms of
But the ancient kings of England, not contented with thefe exac-
tions, were alſo accuſtomed to let the different counties in the king- counties.
dom, in farm, to certain officers, called Sheriffs, who, in confideration
of fums annually paid to the exchequer, were entruſted with powers,
too often attended with the greateſt oppreffion of the people. Such of
ficers would not exerciſe much caution in their mode of proceeding,
when they were accounted "the deputies of the Lord, of the great Seig-
"neurie of the realm." And as the leaſes which they received were
only annual, that circumftance would not tend to diminiſh the various
abuſes, which fuch petty tyrants would naturally be inclined, either
to countenance, or to commit, in their reſpective diſtricts".
crown.
5. Papal Exactions.
Whilft the authority of the Pope was acknowledged in this country,
England was deſervedly accounted one of the richeft jewels in the papal
Without entering minutely into the various exactions of the
Roman pontiffs, which may be found, at full length, in a volume con-
fined to that particular fubject ", it is fufficient for our preſent purpoſe
to remark, that, during the reign of King John, an annual tribute of
700 marks was paid for England, and 300 for Ireland; and that every
houſe in the kingdom, in which there was twenty penny worth of
goods, paid a penny yearly to the Pontiff, or his legate.
This tax
was levied with ſuch ſtrictneſs, that it was held to be a confuetudo quafi
apoftolica". The firſt fruits, and tenths, of all the fpiritual livings
38 Madox. Excheq. p. 223. The particulars of the proficium commitatis, may be ſeen
in Hales's Sheriffs Accounts, p. 30, 31, 32. The Crown alio exacted yearly farms,
or rents, from towns, burghs, and gilds. Madox, p. 226.
39 See the Romish Horfe Leech, or an impartial account of the intolerable charge of
Popery to this nation, by Thomas Staveley, Efq; The first edition was publiſhed anno 1664,
the fecond in 1769. Alfo Egane's Book of Rates, now uſed in the Sin Cuftom-houſe
of the Church of Rome, printed Anno 1673.
4 Sleiden fays, that when Peter's pence was abolished by Henry VIII. it
amounted to the fum of 7500l. per annum. See Lawfon's Mite into the Treafury,
chap. xi. p. 81. If this fum aroſe from a penny a houſe, there must have been
1,800,000 houſes in England alone, which is hardly to be credited,
F 2
in
36
HISTORY OF THE PUBLIC REVENUE
Conclufion.
in the kingdom were alſo exacted, and, befides regular taxes, there
were a variety of occafional exactions, as "penfions, cenfes, procura-
tions, fuits for proviſions, and expeditions of bulls, for archbiſhoprics
"and biſhoprics, and for delegacies; and the refcripts in cauſes of con-
"tentions and appeals, jurifdictions legatine, difpenfations, licences,
"faculties, grants, relaxations, abolitions, and infinite forts of bulls,
"brieves, and inftruments of fundry natures, names, and kinds, to
"the great decay and impoverishment of the kingdom" It is in-
credible, what fums of money are fuppofed to have been extracted out
of this kingdom under theſe pretences; and how much they contri-
buted, to render it difficult for the crown, to raiſe a revenue adequate to
the exigencies of the ſtate.
41 99
Such were the burdens to which the inhabitants of England were
formerly fubject. It is certain, that they did not exift at once; and
that fometimes one mode of exaction prevailed, which, in proceſs of
time, was abandoned in favour of another. But, whatever the lauda-
tores temporis acti may fay, it muſt be evident to every impartial
perſon, that our anceſtors had great reaſon to be diffatisfied with their
political fituation, even in the article of taxation; and perhaps the
preſent æra, is, in that, as well as in many other refpects, as defirable
a period to live in, as any that can be pointed out in the hiftory of this
country; our additional weight of taxes being fully compenfated, by a
more extended commerce, by improvements in every branch of ſcience
and of art, and by great acceffions to our wealth, our fecurity, and our
freedom.
$
41 25 Henry VIII. cap. 1.
OF THE BRITISH EMPIRE..
.37
>
CHA P. V.
Of the Revenue of England under the Government of
1
IT
the Norman Line.
T is natural at the first glance to imagine, that an infular dominion is
peculiarly inacceffible, and eaſy to be defended; that the expence
of a maritime expedition, the hazards of the fea, the difficulty attend-
ing the landing of troops, and the riſk of famine, joined to the oppofi-
tion of the natives, would place almoſt unfurmountable obftacles in the
way of an invader; and though, by choofing a happy moment, one
attempt might perhaps be profperous, yet that many ages would elapſe,
before another opportunity, equally fortunate, could poffibly occur.
is fingular, however, that Britain has hardly ever been invaded, with-
out having produced an important revolution; and it may not be im-
proper, briefly to ftate, whence this has proceeded, and what peculiar
circumſtances contributed to render the Norman invaſion ſucceſsful.
L
It
The more fecure a nation is, or confiders itſelf to be, the lefs precau-
tion it will take for its fafety and defence. Deriding the idea of in-
vafion, and laughing at the efforts of an enemy, it is unprepared to reſiſt
an attack when it actually takes place. If the firſt difficulties, there-
fore, are furmounted, and more eſpecially if the invader is fortunate
enough to conquer in the firft engagement, he afterwards finds no
fortreſs to check his progreſs, or to obſtruct his march to any place of
which he wiſhes to be mafter. The whole country becomes a ſcene of
tumult, anarchy, and confufion; and every diftrict ftrives which of them
ſhall manifeft the greateſt readineſs to ſubmit to his yoke.
An invader, qualified for any bold enterprize, on the other hand, is
thoroughly appriſed of all the difficulties he has to encounter; and is
fenfible, that his only profpect of fuccefs depends upon his power and
dexterity to overcome them. He makes, therefore, every neceffary
preparation-he proceeds upon a fettled plan-he cautiouſly weighs
every adverſe and untoward circumftance; and never ventures to fet
out,
38
HISTORY OF THE PUBLIC REVENUE
A
•
out, without a ſtrong probability in his favour, and a full affurance, if
fucceſsful, of being amply rewarded.
The being pent up in an iſland, and that iſland poffeffed by an enemy,
without any place of refuge, or hopes of eſcape, is a ſtrong ſpur to the
greateſt exertions. An ancient general, who was determined to con-
quer, placed his army, with a deep river behind them, and informed his
troops, that they muft either vanquish the foe, or perish in the flood.
An enemy, by whom an iſland is invaded, is uniformly in that deſperate
predicament; and has no alternative, but either to conquer, or be
deftroyed.
Peculiar circumftances alfo contributed to the fuccefs of the Duke of
Normandy. When he made his attempt, the Engliſh nation confiſted
of a motley mixture of Danes and Saxons, who detefted each other, and
many of whom had a predilection for the Norman manners, language,
and government. Edward the Confeffor indulged himſelf in this at-
tachment to the greateſt excefs; and his example was followed by all
the retainers and fervants of the court.
I
Though Harold poffeffed perfonal courage and abilities, yet he was
not the legal, hereditary fovereign of the country. The Engliſh ad-
mired his valour, and they had recently feen all the qualities of a great
commander ſucceſsfully diſplayed againſt a formidable army of Nor-
wegians; but they knew, that he fat upon a throne, to which another
was entitled. They fought under his banners therefore, as if they
contended rather to fupport their own character, and to defend their
own rights, than to fecure his crown from the pretenfions of a rival.
Indeed, if Harold had not been confidered as an ufurper, they would
not have murmured becauſe the Norwegian booty was withheld, nor
would they have abandoned his colours, in confequence of that diſap-
pointment, or difregarded the orders of their general, when the fate of
England depended upon their diſcipline and obedience.
To crown the whole, Edgar Ætheling, the repreſentative of the Saxon
monarchs, and confequently the legitimate fovereign of the country,
to whom, after the death of Harold, the Engliſh naturally looked up,
had neither experience nor abilities calculated to act with vigour in ſo
critical a juncture. He neither knew how to curb the foe, how to
conciliate the affections of his fubjects, or how to animate troops.
difpirited
4
#
OF THE BRITISH EMPIRE.
39
difpirited by the overthrow they had received; and being better fitted for
the calm fcenes of private life, than for the tempeft of war or the in-
trigues of a cabinet, he relied on his infignificance, for at leaſt perſonal
fafety and throwing himſelf at the feet of the Norman, was one of
the firſt who furnished an example of fubmiffion to the Conqueror.
In confequence of theſe fortunate circumftances, joined to the coun-
tenance of the Pope, the affiſtance of the Engliſh clergy, the pretended
will and deftination of the Confeffor, but above all to the prudence of
his own conduct, and the ftrong affurances he gave his new fubjects,
that every attention would be paid to the preſervation of their public
liberties, and private rights; William of Normandy, after having van-
quifhed the army of England, and flain its monarch, at the decifive
battle of Haftings, was acknowledged the fovereign of the country, and
crowned at Weſtminſter, with all the forms uſual at fuch folemnities.
His pofterity have ever ſince fat upon the throne of England. But as
Henry the Second was likewiſe deſcended from the old Saxon line, to
whom, in the opinion of the Engliſh nation, the crown belonged; and
as, in the perſon of that Prince, the former royal race was ſaid to have
been re-eſtabliſhed, and a new æra to have been introduced into the
Engliſh hiſtory, the preſent Chapter is therefore reſtricted to the reigns
of the four firft Kings after the Norman invafion.
1
L
2
C
1
Revenue of WILLIAM the Conqueror.
It has been much controverted, whether William ought to be ac-
counted the Conqueror of England, in the plain and literal ſenſe of that
word; antiquarians having diſcovered, that conqueftus may be applied
not only to an acquiſition by force of arms, but alſo by purchaſe, or
by donation. They have thence contended, that by the Norman
Conqueft, ancient hiftorians meant the acquifition of England by the
Duke of Normandy, in confequence of the pretended will of the Con-
feffor, and the voluntary fubmiffion of the English. It is certain, that
William conducted his meaſures with the greateſt art, prudence and
dexterity; that he foothed the inhabitants of the country, until they
were completely in his power: and, perhaps, he would have trufted
them,
40
HISTORY OF THE PUBLIC REVENUE.
1. Eftablish-
ment of the
feudal fyf-
tem.
z. Dooms-
day Book.
in
them, if he could have depended on their fidelity and attachment. But
both parties were jealous of each other, and it is impoffible, conſiſtently
with hiſtorical evidence, to confider the firft of the Norman monarchs
any other light, than as a conqueror who, partly by force, and partly
by ftratagem, fubdued a country, to the government of which he had no juſt
pretenfion, and a majority of whofe inhabitants detefted the tyrant they
were fubject to, and would gladly have thrown off his yoke.
Among the other means purſued by William I. to fecure his acquifi-
tion, the following are more particularly connected with the object of
this work: namely, the complete eſtabliſhment of the feudal fyftem
the furvey made of the kingdom in general, and in particular, of the
value and extent of the royal domains; and the inftitution of a court of
exchequer, after the model of a fimilar court in Normandy.
+
The enjoyment of landed property, fubject to military fervice, is not
an unuſual mode of holding an eftate. It was cuſtomary in ancient, as
well as in modern times: it exiſted in the Roman, as well as other
empires. But what diftinguiſhed fiefs from every other military fyftem
was this, that in the firft place, they were not hereditary: and fecond-
ly, that in order to remedy this original defect, a thouſand fubtilties were
invented, to fecure the advantages of fucceffion to the heirs of the
original proprietors. Hence aroſe wardſhips, reliefs, and other in-
Even under
cidents, or peculiar characteriſtics of the feudal tenure.
the Saxon monarchs, every proprietor of land was bound to aſſiſt his
fovereign in war, without pay or recompence; and he was alfo fubject
to a relief, or acknowledgment to his immediate fuperior, when he
firſt entered into the poffeffion of his eftate. But the various burdens
of the feudal fyftem were not completely eſtabliſhed until after the
conqueft. The whole kingdom was then divided into 60,215 knights
fees; the holder of each of which, was not only bound to furniſh a
knight, or armed horfeman, for the public defence, but he was likewife
liable to a variety of impoſitions, at firſt light and eaſy, and apparently
for the benefit of the vaffal, but afterwards converted, by the fubtile
dexterity of the feudal lawyers, into a fyftem fraught with every
fpecies of oppreſſion.
The monarchy of England was originally compofed of feven inde-
pendent kingdoms, the fovereign of each of which, was poffeffed of a
6
confider-
OF THE BRITISH EMPIRE.
41
1
confiderable domain in all the various diſtricts of the heptarchy: and
as, in confequence of that circumftance, the eſtates belonging to the
crown of England, when the heptarchy was deſtroyed, were not only
extenſive in themſelves, but difperfed and ſcattered over the whole face
of the country, they were expofed to great diminution, and could
hardly be preſerved entire, unleſs frequently furveyed and diſtinguiſhed
from the property of individuals. It is certain, that Alfred completed
a furvey of that nature, which, for a long time, was carefully preferved
at Wincheſter. In imitation of fo laudable an example, and, as fome
imagine, with a view of extending his feudal prerogatives over every
diftrict in the country, William began, and actually finiſhed a furvey,
not only of the royal domains, but alſo of all the landed property of the
kingdom, fome of the northern counties only excepted. Six years
were employed in this laborious undertaking. The fruit of it was, that
ancient record, lately engraven at the public expence, called Dom-boc,
on account of its being the book which contained the final doom, or
fentence, in what manner each eftate was to be held, and afterwards
Doomſday Book (in alluſion to the day of judgment), becauſe no man
was fpared, but every perſon was obliged to give in a particular ac-
count of his eſtate. Its authority was held to be fo final and conclu-
five, that all controverfies in regard to tenure were decided by it, even
in caſes where its evidence proved unfavourable to the crown.
The extent of the royal domains, and the number of diftricts into
which they ſpread, joined to the great variety of the feudal fources of
revenue, rendered it neceffary, foon after the Conqueft, to erect a new
court, called the Court of Exchequer, for the better management of the
royal income. Some antiquaries have contended, that an inſtitution
of a fimilar nature exifted under the Saxon government; a point
which it is unneceffary to enter into, as it is acknowledged, that the
• Hearne's Life of Alfred, p. 115.
2 This furvey, however, is not fo complete as fome authors pretend. Some cities
and towns of note are not mentioned in it, and the greater part of the villages are
omitted. It was principally intended to give the king a true account of his own lands,
and demefnes, and thofe held by his tenants in capite. Rapin, vol. i. p. 177. Note 4.
3 Dial. de Scaccario, lib. i. cap. 16. But fome imagine, that Domeſday is a corruption
of Domus Dei, from this book being at firſt kept in a church. Hearne's Alfred, p. 115.
Note 4.
G
name
3. Court of
Exchequer.
42
HISTORY OF THE PUBLIC REVENUE
1. Landed
Eſtate.
2. Voluntary
Gifts.
•
name is of Norman extraction, and that it imitated, in a great meaſure,
the Norman forms and manner of proceeding * It was founded on
principles perfectly confonant to thofe on which the Conqueror acted;
whofe great object, at leaſt in the latter part of his reign, certainly
was, to opprefs a nation of whom he was jealous, and whoſe ſpirit he
wiſhed to cruſh, under the appearance of law, and femblance of juſtice.
The revenue of William I. may be confidered under four heads—-
The income of the Royal Domains-Voluntary Gifts-Legal Taxes-
Tyrannical Exactions.
Notwithſtanding William's liberality to thoſe who affifted him in the
conqueft of England, and the immenfe eftates which he beſtowed upon
his particular favourites, yet fpecial care was taken, to reſerve a domain
amply fufficient to fupport the dignity of the crown, and to maintain
that rude hofpitality for which feudal courts were diftinguiſhed. In-
deed, without that immenſe ſupply of provifions, that was furniſhed by
the tenants of their demefnes, it would have been impoffible for the
firſt of the Norman monarchs, to have celebrated the feftivals of Chrift-
mas, Eaſter, and Whitſuntide (when all the great barons of the king-
dom, with their principal followers, were entertained by their fovereign),
with the plenty and abundance to be expected at a royal table. It is to
be remarked, that this practice continued until the middle of Henry the
Second's reign, by whom, on account of the expence which it occafion-
ed, it was finally aboliſhed.
William began his reign, in a manner which tended fo much to con-
ciliate the affections of his new fubjects, that they were prevailed upon,
foon after his coronation, to make him voluntary gifts and prefents to
a confiderable amount. The Engliſh fondly imagined, that by fuch
means they would not only ingratiate themſelves with their fovereign,
but would alſo enable him amply to reward his Norman followers,
without requiring any tax or addition to his revenue But, notwith-
ſtanding the large fums of money, which he thus found means to ob-
tain; and though he had got poffeffion of the treaſures which Harold
had amaffed, which were not inconfiderable, yet he foon diſcovered,
that with money alone, it was impoffible for him to fatisfy a rapacious:
Dial. de Scaccario, lib. i. cap. 4. Madox, p. 120.
3
foldiery
OF THE BRITISH EMPIRE.
43
foldiery, who had joined his ſtandard in hopes of durable eſtabliſhments
in land, and not of a temporary bounty; and hence it is faid, that he
was reduced to the neceffity, of exaſperating the Engliſh, and driving
them to rebellion, in order that he might have a pretence for diftribut-
ing their forfeited eſtates, among his friends and followers.
The income received by the firſt of the Norman monarchs, as Lord 3. Taxes.
Paramount, or Feudal Superior of all the lands in England, depended
upon fo many contingencies, that it is impoffible to form any eſtimate
of its value or amount. But in addition to the great but uncertain
revenue which he thus received, and the other fources above-mentioned,
he joined the odious tax of Danegeld; at firſt, under the uſual pretence
of guarding the fea from pirates; but afterwards, in confequence of an
attack he apprehended from Sueno King of Denmark, who intended, it
was faid, to vindicate his claim to the throne of England, with all the
ftrength and forces of which he was poffeffed. During the reign of Wil-
liam, Danegeld varied from one to fix fhillings per hide, according to
the exigencies of the crown. But the revival of fo obnoxious an impofi-
tion, however plaufible the grounds might be, on which it proceeded,
gave much diſcontent, and greatly contributed to the frequent infur-
rections, by which his government was diſturbed.
It is afferted alfo, by fome ancient hiftorians, that William extorted
confiderable fums of money from his fübjects, without any legal pre-
tence and finding that many of the Engliſh, in terror of his exactions,
had depofited their wealth in monafteries, he ordered them to be
ſearched; and not only appropriated to his own ufe, all the money,
jewels, plate, and other valuable effects, belonging to individuals, which
were diſcovered there, but alſo ſeized the very fhrines and chalices of
the churches: articles which were accounted fo facred and inviolable,
in that fuperftitious age, that it is difficult to conceive how a prince,
who affected fo much zeal for religion, could hazard ſuch an attempt.
4: Tyran-
nical exac-
tions.
The amount of the Conqueror's income has been much difputed. Amount.
Ordericus Vitalis fays, that, befides all the cafual profits of his feudal
5 Matthew Paris fays, that Danegeld was raiſed to fix fhillings per hide, anno 1083.
He calls it graviffima pecuniarum exactio, p. 10.
6 Matthew Paris, Hift. Angl. Folio edit. 1606, p. 10.
G 2
preroga-
44
HISTORY OF THE PUBLIC REVENUE
prerogatives, he enjoyed a revenue of about 400,000l. per annum'.
This, in the opinion of two celebrated modern hiſtorians, is perfectly in-
credible. Hume remarks, that a pound of filver in that age contained
three times the weight that it does at prefent; confequently 400,000l.
then was equal to 1,200,000% of our fpecie; and as any given ſum of
money, would then purchaſe about ten times more of the neceffaries of
life, than at preſent, the Conqueror, according to this calculation, muſt
have enjoyed an unencumbered annual income, equal to nine or ten
millions of the prefent currency. His military tenures, likewiſe, fur-
niſhed him with a formidable army without any expence; ſo that he
muſt have exceeded, in real power and opulence, any monarch recorded
in hiſtory. Voltaire, though he converts the Conqueror's income only
into five millions of modern money, alſo contends, that ancient writers
muſt have been greatly miſtaken in their account of his wealth. For
the revenue of England, he ſays, including Scotland and Ireland, does
not yield fo much, if we deduct what is levied for payment of the na-
tional debt. The ſubſtraction of any thing on account of the intereſt paid
to the public creditors, is a very inaccurate and unjuſtifiable pofition,
becauſe it arifes from taxes levied on the fubject, as much as any other
part of the national income. But theſe two great authors ſeem to have
carried their ſcepticiſm too far in this, as they have done in many other
inftances. It is probable, that both of them would have been equally
incredulous, had they been told thirty years ago, that Great Britain and
Ireland could have raiſed in the year 1784, a revenue of above fourteen
millions per annum. After all, it is impoffible totally to difcredit the ac-
counts of Vitalis, an hiftorian who was born only nine years after the
conqueft, and confequently muft have enjoyed better accefs to infor-
mation, than any modern can pretend to. Indeed, without ſuch an in-
come, it would have been impoffible for the kings of England to have
lived with ſuch ſplendour and magnificence; to have beſtowed ſuch li-
'Or 10617. 10s. old. a day. The words of Vitalis are-" Ipfi vero regi (ut fertur),
"mille et fexaginta libræ fterilenfis monetæ, folidique triginta, et tres oboli ex juftis redditi-
"bus Angliæ, per fingulos dies redduntur, exceptis muneribus regiis, et reatuum redemp-
❝tionibus, aliifque multiplicibus negotiis, quæ regis ærarium quotidie adaugent." L. 4.
P. 523. apud Duchef,
• Hume's Hiftory, vol. i. p. 277.
• Gen. Hift. vol. i. p. 166.
beral
OF THE BRITISH EMPIRE.
45
beral donations on the church; to have carried on fo many public works;
to have engaged in ſo many expenſive wars; and after all, to have left
behind them fuch confiderable treaſures. Sixty thouſand pounds in fil-
ver, equal to go0,000l. of modern money', was found in the Royal
Treaſury at Wincheſter, after the death of the Conqueror; befides gold,
jewels, veftments, and other articles of great value: and as he died in
Normandy, where he had alſo large fums of money hoarded
up (indeed
it was his ufual practice to carry a treaſure about with him), there is lefs
reafon to believe that the accounts given of his wealth and annual in-
come, could be greatly exaggerated. Befides, Vitalis is fo particular in
the ſum he mentions, ftating not only the pounds, but even the number
of farthings which William received; namely, one thoufand and fixty
pounds and thirty fhillings and three farthings a day (which is the mode
of counting ſtill uſed in the exchequer, inftead of one thouſand and fixty-
one pounds ten ſhillings, &c.), that one would fuppofe his information
was derived from authentic records, and was not founded on vague or
hafty computations.
12
As to the amount of this income in modern money, authors greatly
differ. Dr. Henry computes it, as equal in efficacy to 5,808,975l."; Lord
Lyttleton, to 5,369,925 l."; and as they both differ fo much from Hume
and indeed from other hiſtorians, it is eafy to perceive what latitude
there is in fuch computations for prejudice and fancy; and, perhaps, on
the whole, there is more reaſon to conclude, that a modern may err in
making ſuch calculations, than to fuppofe that an ancient writer could
be grofsly miſtaken in a plain matter of fact".
WILLIAM
RUFUS.
The ſecond ſon of William the Conqueror, called Rufus, or the Red,
on account of the colour of his hair, fucceeded to the throne of Eng-
10
Henry's hift. vol. iii. p. 28. ** Ibid. vol. iii. p. 352. 12 Hift. vol. iii. p. 454.
11 The Conqueror's income muſt have ariſen, firſt, from the tax of Danegeld, which at
fix fhillings per hide would produce 73,0801.; and fecondly, from the rents of his domains,
which, it is more than probable, would make up the deficiency. This is a point, however,
which must foon be aſcertained, as our antiquaries will now be able, from the publication
of Domeſday-book, fully to explain the value of the Royal Domains, and the income which
they produced.
land,
1
46
HISTORY OF THE PUBLIC REVENUE
land, in confequence of his father's deftination, the remiffneſs of his
brother Robert, his own activity, and the attachment of Lanfranc
Archbiſhop of Canterbury, by whom he had been educated, and who
poffeffed great weight and authority with the Engliſh. The thirteen
years during which this tyrant governed England, was a perpetual feries
of extortions, of which the church in particular had great reafon to
complain. It was an uſual practice with him, when any Biſhopric or
Abbey became vacant, to feize all its temporalties, and to farm them
out to his favourites, or to thoſe who made him the higheſt offer; and
when
any circumſtance induced him to fill the vacancy, he exacted con-
fiderable fums from thofe who were appointed. The plunder he col-
lected from the church muſt have been very great, when it is confidered
that, at his death, he held in his own hands the Archbishopric of Can-
terbury, the Biſhoprics of Wincheſter and of Saliſbury, and twelve of
the richeſt Abbacies in England".
•
Nor were the laity lefs haraffed by his extortions". A tax of four
ſhillings for every hyde of land in the kingdom, was levied, to enable
him to acquire the poffeffion of Normandy. Great fums were extorted,
under the name of benevolences or free gifts, though, in fact, they were
compulfatory; for it was well known that the king would puniſh thoſe
Anno 1096. who refuſed to contribute. In the fixth year of his reign, he enliſted
troops for an expedition into Normandy; and when they were affem-
bled, in order to be embarked, either finding their affiſtance unneceffary,
or imagining that a fum of money would anſwer his purpoſe better, he
exacted ten fhillings from each man, under the pretence of defraying the
expence he had been put to in furniſhing them with provifions". In
fhort, he was unquestionably well entitled to the name of the Red Dra-
gon, by which appellation his miferable fubjects attempted briefly to de-
ſcribe his violence and rapacity.
The hiſtory of this monarch furniſhes an uſeful leffon on the vanity
of human ambition. He fucceeded to the throne of England, contrary
to the hereditary pretenfions of an elder brother, diſtinguiſhed for valour
and military ſkill. He found means to acquire, from that very brother,
the poffeffion of the dutchy of Normandy, in confideration of ten thou-
14 Matt, Paris, p. 52.
15 Ibid. p. 42.
16 Ibid. p. 16.
fand
OF THE BRITISH EMPIRE.
47
fand marks, advanced to him by way of mortgage; a fum which, though
very inadequate to its value, yet enabled Robert to undertake his fa-
vourite enterprize (an expedition for the recovery of Jerufalem) in a
manner fuitable to his dignity and ſtation. Rufus had entered into an
agreement with William Duke of Aquitaine, who was feized with the
fame phrenzy of devotion; and, had not his death prevented it, he
would foon have been mafter of that important dutchy for a ſimilar
confideration: nay, it was commonly fuppofed, that he intended to em-
brace any favourable opportunity that might occur, of attempting the
acquifition or the conqueſt of France, either by corruption or force.
But, in the midſt of his ambitious projects, whilft engaged in his favour-
ite diverfion of hunting, he was pierced by an arrow, which foon put a
period to his days; and it has never been clearly aſcertained by whofe
hand he fell, or whether his death was occafioned by any fortuitious ac-
cident, or was purpoſely effected.
HENRY
I.
The abfence of the Duke of Normandy, who had not yet returned
from his crufade, furniſhed Henry, the Conqueror's third fon, with an
opportunity of mounting the throne fo unexpectedly vacant by the death
of Rufus. Not an inftant was loft in taking every ftep neceffary for
that purpoſe. The regalia, and the royal treaſures, kept at Wincheſter,
were firſt taken poffeffion of. A council was haftily affembled at Lon-
don, by whom his title to the crown was recognized; and, in lefs than
three days after his brother's death, the ceremony of his coronation was
performed at Weſtminſter, by Maurice Biſhop of London. The whole
was conducted in a manner, which impreffes us with a favourable idea,
of his vigour and abilities.
As Henry's title to the throne was highly queftionable, he found it ne-
ceffary, in order to conciliate the affections of his fubjects, to purſue a
ſyſtem of government very different from that of his brother: according- Anno 100.
ly, foon after his coronation, he granted a charter, which contained many
articles highly favourable to the liberties of the people. It was the bafis on
which Magna Charta itſelf was founded; and it fully proves at what an
early
18
HISTORY OF THE PUBLIC REVENUE
early period the Engliſh were attentive to the preſervation of their rights
and privileges, and that no fit opportunity was loft to have them aſcer-
tained.
Though this king is, in general, repreſented by our hiſtorians in a very
advantageous light, yet he is accuſed of having occaſionally forgotten his
engagements to the public. Contrary to an exprefs clauſe of the char-
ter he had granted, he feized the temporalties of the archbishopric of
Canterbury, fold the woods belonging to it, plundered the tenants, and
kept poffeffion of its revenues for above five years. His levying three
fhillings on every hyde of land, when his daughter Matilda was married
to Henry IV. Emperor of Germany, may be juſtified upon feudal prin-
ciples; but the ſpecific fum he demanded (amounting, it is fuppofed, to
about 800,000 of modern currency) was to the greateſt degree op-
preffive". The exactions of this monarch, however, are to be attri-
buted, principally to his great anxiety, at firſt to acquire, and afterwards
to preſerve the dutchy of Normandy; a re-union with which, many of
his Engliſh fubjects confidered to be effential. In the fifth year of his
reign, they were particularly oppreſſed, to raiſe a ſum of money for de-
fraying the charges of an expedition to the continent, upon which the
poffeffion of that dutchy depended. A tax was laid even upon churches;
and every incumbent was made anſwerable for the rate at which his pa-
riſh-church was affeffed". Many heavy taxes were alſo laid on, in the
ſeventeenth year of his reign, in confequence of a war he was obliged to
carry on againſt the King of France, for the ſecurity of Normandy".
The reign of Henry is diftinguiſhed by a very important alteration in
regard to his revenue. We are informed by Gervas of Tilbury, in his
famous Dialogue on the Exchequer 20, that the rents of the Royal Do-
mains, for many years after the Norman Conqueſt, were principally paid
in kind; and that, in the reign of this monarch, they were converted
17 Brady, vol. ii. p. 270.
18 During the rage of this oppreffion, Henry was met, in his road to London, by two hun-
dred pariſh prieſts in their furplices, who, on their bare knees, petitioned for fome mitiga-
tion of fo oppreffive an impofition; but their entreaties were ineffectual: for Henry never
fuffered pity, to get the better of intereft. Mort. vol. i. p. 212. Note.
* Stevens, p. 18.
20 Lib. i. ch. 7.
into
OF THE BRITISH EMPIRE.
49
into money". As Henry lived much in Normandy, and was engaged
in many foreign expeditions, money was particularly convenient to him;
and in confequence of the ſcarcity of fpecie at that time, the converfion
was made on terms highly favourable to the vaffal, an ox being only
valued at one ſhilling, and a ſheep at four pence. Both parties were then
fatisfied; but it is certain that Henry's fucceffors had much reaſon to
complain of the inadequate compoſition he had accepted of: for it not a
little diminiſhed, at an after-period, the relative value and amount of
the royal income; and greatly contributed to the future poverty and ne-
ceffities of the crown.
STEPHEN.
The attempt of Stephen to feat himſelf upon the throne of England,
is one of the boldeft enterprizes recorded in hiftory. He was the grand-
fon, it is true, of William the Conqueror, whofe daughter Adela had
been married to his father the Earl of Blois, but he was the third fon of
that marriage; and, as both his elder brothers were living, he had no he-
reditary claim to the fucceffion. He oppoſed the daughter of a ſove-
reign who had long reigned over the English; and whofe government,
though fometimes harsh and oppreffive, was in general popular. His
rival, the Empreſs Matilda, indifputably reprefented the Norman, and
had ſome pretenfions to the inheritance of the Saxon fovereigns of Eng-
land. Nor could he truft to the effects of his lavish promiſes to
the Engliſh nation, of maintaining a ftrict regard to the prefervation
of their rights and privileges; for having abandoned the folemn
engagements he had contracted to fupport the emprefs in her fucceffion
to her father, it was natural to fuppofe that he could not be depended
on to fulfil any other obligation. But fuch was the unfettled ftate
of fucceffion to the crown; fo much were the people of that age
delighted with bold and daring enterprizes, and fo attached to men
of gallantry and fpirit, that Stephen found his attempt fuccefsful
beyond his moft fanguine expectations. He was anointed King of
21 Madox Excheq. p. 186. Carte's Hift. of England, vol. i. p. 518. Hales's Sher.
Accounts, p. 22. Dalrymp. of Feudal Prop. p. 27.
H
England
50
HISTORY OF THE PUBLIC REVENUE
Conclufion.
England foon after his arrival, and affumed the exerciſe of the royal au-
thority with hardly any oppofition.
The reign of this monarch paffed in perpetual war and civil blood-
ſhed. During the whole period, the nation is repreſented to have been
in a ſtate the most deplorable. Some forfook their native country, to
avoid the miferies under which it groaned. A multitude of foreign
mercenaries brought over by Stephen to affift him in his ufurpation,
and to fupport his authority, fpread horror and devaſtation wherever
they went. Many who had lived in opulence were glad to ſhelter them-
felves in the meaneft cottages, and to feed upon dogs and carrion-the
fields lay fallow and neglected-commerce and induftry were aban-
doned-towns of confiderable note were deferted by their inhabitants :
nor was any place, however facred or remote, exempted from the general
calamity 22. Such is the deſcription given us of the ſtate of England
during the reign of this ufurper, who at the fame time was a prince
(if we may judge from fome traits of his character) well qualified to
have promoted the happineſs and profperity of his fubjects, had he fuc-
ceeded by a juſt title, or had he enjoyed the undisturbed poffeffion and
government of the country "3.
23
Stephen had promiſed on his coronation day, for ever to remit the
odious tax of Danegeld; but the neceffity of his affairs compelled him
to exact it, notwithſtanding his oath, and a charter which he had granted.
It was the only regular tax he impofed. For during the greateſt part
of his reign, the only means he had of fupporting his troops, and main-
taining his dignity, was by plunder and extortion. He is alfo accuſed
of having alienated the demefnes of the crown, of having debaſed the
coin, and of felling to the highest bidder, honours, offices, dignities,
and benefices in the church, the laft pitiful refource of a profufe and
indigent monarch.
It appears from this chapter, what little progrefs had been made in
the knowledge of finance, from the Norman invafion to the death of
Stephen. During the whole period, it was underſtood, that the king
fhould live upon his own domains, and the profits of the feudal prero-
12
22 Lytt. vol. i. p. 328. and vol. ii. p. 133.
23 Hume, vol. i. p. 369.
Stevens, p. 21.
gatives;
OF THE BRITISH EMPIRE.
51
gatives; and every ſpecies of taxation (military ſervices only excepted)
was the object of averfion and diſguſt. Danegeld, the only regular tax that
exiſted at the time, though perhaps neceffary for the protection of the
commerce of the nation, was conſidered as ſo peculiarly ſevere, that
every monarch who attempted to levy it, was accounted a tyrant and an
oppreffor, and that fingle tax occafioned as many complaints, and as
great an outcry, as the whole load of multifarious impofts, to which
this country is at prefent fubject.
CH A P. VI.
Of the Revenue of England, during the Saxon Line, or
Houfe of Plantagenet.
TH
HE hiftory of England, and indeed of every other country fub-
ject to a monarchical form of government, clearly demonftrates
the manifold advantages refulting from a ftri& hereditary fucceffion.
Whenever any doubt exiſts to whom the crown legally belongs, dif-
putes will ariſe; and turbulent and ambitious men, will embrace the party,
which feems the moſt likely to be of the greateſt advantage to themſelves,
without regarding the welfare or ſafety of the State. The country is thus
ruined by a competition between rivals, perhaps equally worthlefs; and,
after all, the conteft is determined, not in favour of him who has the beſt
title, or who will govern beft, but of him who makes the moft lavish
promiſes, or who is able to command the greateſt number of bold and
deſperate adherents. It was by means of fuch promiſes, and fuch fupport,
that Stephen vindicated his pretenfions to the crown of England, to
which another was legally intitled; at leaſt, if the immediate defcendants
of William the Norman had a right to the fovereignty.
H 2
But
1
52
HISTORY OF THE PUBLIC REVENUE
But Henry II. not only claimed the crown, as lineally defcended
from the Conqueror, but alſo as in ſome meaſure' repreſenting the
Saxon monarchs of England. His mother, the Empreſs Matilda, was
defcended from Edmund Ironfide, the laſt of the Saxon race who left
any pofterity. Edmund's fon, known by the name of Edward the Out-
law, had two children, Edgar Etheling, who died without iffue, and
Margaret, in whom the Saxon hereditary right conſequently refided.
By her huſband, Malcolm king of Scotland, ſhe had ſeveral children,
and among the reft, Matilda, the wife of Henry I. who by him had
the Empreſs Maud, mother of Henry II.-At the fame time, it muſt be
acknowledged, that he could not claim an hereditary right to the king-
dom, by a regular courfe of fucceffion from the royal Saxon family;
for the fons of Margaret unquestionably inherited her rights in pre-
ference to her daughter, and conſequently her title to the crown de-
volved on her grandfon David King of Scotland: however, Henry's
connexion with the Royal Saxon family was ſuch, that it endeared him
not a little to the Engliſh nation; and they fondly imagined, that they
faw another Alfred feated upon the throne.
In conformity therefore to a very ancient prejudice, we fhall confider
Henry's acceffion, as the reftoration of the old Saxon line, though
that event did not, ftrictly speaking, take place, until James I., the
lineal heir and reprefentative of Margaret, fucceeded to the crown.
Revenue of Henry II.
Among the various meaſures taken by this monarch after his acceffion,
perhaps the boldeſt and moſt important was, the refumption of fuch
of the crown-lands as had been granted by his predeceffor Stephen,
and even by his mother, the emprefs Matilda.
And here it is neceffary
to take notice of a very material diſtinction in regard to the royal
demefnes. The ancient patrimony of the crown, called in Doomſday-
book Terra Regis, was held to be fo unalienable, that if any portion
of it was given away, either the king by whom it was granted, or any
'Black. vol. i. p. 201.
logy from the Flood, p. 90.
Lytt. vol. i. p. 223. Matthew Paris traces his Saxon genea-
of
OF THE BRITISH EMPIRE.
53
of his fucceffors, could at any time refume the donation. Whereas
lands which eſcheated to the crown, in confequence of a default of heirs,
or any feudal delinquency, it was in the power of the fovereign to
diſpoſe of, in any manner he thought proper. This diftinction was, at
different periods of the Engliſh hiſtory, productive of very oppofite
effects. At firſt, when a prejudice ran in favour of the unalienability
of the public domains, it was difficult to ſupport any grant, even of
lands which the crown had acquired by any mode of confiſcation or
eſcheat. But when the popular cry took an oppoſite direction, it was
held impoffible to diftinguiſh between the two kinds of domain: the
one became gradually confounded with the other; and hence the king
acquired the right of alienating both. The crown was thus enabled
to diffipate the immenfe landed property which it originally poffeffed,
and which, had it remained undiminiſhed, muſt have rendered our kings
perfectly independent, and almoſt uncontroulable.
The reſumption, by Henry, was unquestionably juftifiable. In the
treaty with Stephen, that monarch became bound to refume what had
been alienated to the nobles, or ufurped by them of the royal demefnes*:
and though Stephen had neglected to carry this article of the treaty of
Wincheſter into execution, yet it was neceffary for Henry to enforce it,
in conſequence of the exorbitant grants which had been made by his
predeceffor, and the confequent poverty of the crown. He therefore
fummoned a parliament, and having laid before it his diſtreſſed ſituation,
the illegality of the grants in queſtion, and the neceffity of an immediate
reſumption, he obtained the concurrence and authority of that aſſembly
for fo effential a purpoſe. Little difficulty was found in refuming the
grants made by Stephen, whofe neceffities had compelled him to alienate
the royal domains in a manner not to be defended. But thoſe which
had been given by the Emprefs, and with which fhe had recompenfed
the greateſt and moſt meritorious fervices to herfelf and family, her
adherents fcrupled to reftore. Henry, however, was determined to
make no diſtinction; and, after ſome oppoſition, actually recovered the
poffeffion of all the landed property which Henry I. had enjoyed; thofe
lands only excepted, that had been granted to the church, which that
2
Lytt. Hift. vol. ii. p. 256. 290.
i
powerful
54
HISTORY OF THE PUBLIC REVENUE
D fects of
the feudal
$item.
Origin of
fcutages.
powerful and politic body, in the original treaty of Winchefter, had
taken care to ſecure.
tr
66
"The military force, eſtabliſhed by the feudal inſtitutions (it is re-
"marked by a great hiſtorian), was extremely burthenfome to the
fubjcct, yet rendered very little fervice to the fovereign. The
barons, or military tenants, came late into the field; they were
obliged to ferve only forty days; they were unfkilful and diſorderly
"in all their operations; and they were apt to carry into the camp,
"the fame refractory and independent fpirit, to which they were
"accuſtomed in their civil government'." Such a military eſtabliſh-
ment might, by great attention and by frequent exerciſe, prove a fafe
and adequate defence to dominions entirely infular, but was ill calculated
for the exigencies of thofe foreign wars which the crown of England
was fo frequently engaged in at that time, in confequence of its
continental poffeffions *.
Henry, it is probable, had the merit of firſt diſcovering a remedy
for this defect. It was originally attempted in the ſecond year of his
reign, when, in order to carry on a war againft the Welſh, he laid a
duty, or fcutage, as it was called, of twenty fhillings for each knight's
fee, upon the eſtates of thoſe prelates who were bound to military
fervices'. Many fcutages were afterwards levied in the courſe of his
reign. In particular, one for carrying on the war of Touloufe, which
amounted to the fum of 180,000l. equal to 2,700,000l. of modern
money. This commutation, though heavy, was, on the whole, lefs
burdenſome to the vaffals of the crown, than to perform their ſervices
in perfon. For, befides the expence of going to war in a diſtant
country, and returning from it at their own charges when the campaign
was over, their affairs at home were neglected, their eftates were
fuffered to lie wafte, and thus, in addition to the hazards of war, they
were fubject to a thouſand domeſtic incoveniences. It was a plan, at
the fame time, attended with much advantage to the crown; as inſtead
of troops, though brave, yet diforderly and untractable, it was thus
3 Hume's Hift. vol. i. p. 468. See alfo Carte, vol. i. p. 570. 731.
Lytt. Hift. vol. ii. p. 429.
15
Lytt. Hift. vol. ii. p. 429.
5 Maddox's Hift. of Excheq. p. 435-
enabled
!
OF THE BRITISH EMPIRE.
55
enabled to purchaſe the fervices of real foldiers, equally martial and
diſciplined.
But the religious zeal, fo prevalent at that time, gave rife to a new Firft tax on
perfonal pro
impofition, with which England had been hitherto unacquainted. It perty.
was a tax on perfonal property, and it was levied in a very fingular
manner. A cheſt was erected in the different churches, into which
every man, after having taken an oath, and justly fummed up the
value of his effects, and the debts of which he had a certainty of being
paid, was obliged to put in two pence in the pound for the firſt year,
and a penny in the pound for the four following years, under the pe-
nalty of his breaking his oath, and incurring the fentence of excom-
muication denounced againſt thoſe who acted fraudulently.
the firſt tax on perfonal property known in England; and though it
amounted to fix pence in the pound only, it would not probably have
been eaſily ſubmitted to, had it not been appropriated for fo popular
a purpoſe as that of affifting the chriftians in the eaſt, who were then
threatened with expulfion.
-
This was
This contribution, however, did not much avail. At leaft, anno 1188, Saladine
more powerful aſſiſtance became neceffary". For in that year, intelli- tithe.
gence arrived from Paleſtine, that Jerufalem, the darling conqueſt of
the chriſtian world, had been taken by Saladine, the fultan of Egypt,
and that he was preparing to drive the worshippers of the crofs from
their remaining poffeffions in Afia. The greateſt potentates in Europe,
alarmed at the news, confederated together to check the progreſs of ſo
formidable a conqueror, and, if poffible, to recover the holy city from
the hands of the infidels. Not only Henry, but the emperor Frederic I.
and Philip, king of France, determined, with their united forces, to
engage in this crufade. A council of the bifhops and nobility of
England was foon after held, to confider of the beſt means to raiſe the
neceffary ſupplies; and at laft it was determined, to levy a tax of a
tenth part of all the perfonal property of thoſe, who, remaining at home,
took no ſhare in fo pious an enterpriſe. This, which is the firſt inſtance
7 Hume, vol. ii. p. 265.
9 Stevens's Hift. p. 28, 29, 30.
8
⁹ Anno 1166. 12 Henry II.
Carte's Hift. vol. i. p. 599. M. Paris, p. 101. on
the other hand, fays, that four pence was collected from every ploughland..
20
35 Hen. 2. See Hoveden,, p. 366.
of
56
HISTORY OF THE PUBLIC REVENUE
Feudal aid
pur fille
marier.
Danegeld.
of a tenth being exacted, was called the Saladine Tithe, from the
name of the gallant Muffulman, whofe valour gave riſe to this impo-
fition ". It is faid, that the Engliſh paid above 70,000l. and the Jews
in England, about 60,000l. as their reſpective proportions of the tax,
which, when joined together, was equal to about two millions of
modern money. The difproportion was very great: but it is to be
confidered, that none of the Jews were exempted; whereas many of
the wealthieſt of the Engliſh, in confequence of their having taken the
croſs, pleaded immunity from the impoft. Nay, the greater part of
the regular clergy were freed from the burden, having contended that
they were obliged by their prayers only to affift the crufade, their
lands being held in frank almoigne, a tenure which exempted them
from all duties but religious exerciſes.
In the thirteeenth year of his reign, Henry having married his
daughter Matilda to the Duke of Saxony, levied an aid from his fub-
jects, to enable him to give her a portion adequate to her rank, and that
of her huſband. This tax amounted to one mark for each knight's-
fee. It was paid by the ſeveral knights and barons holding of the crown
in capite, according to the number of their reſpective fees. Nor were
the biſhops or abbots exempted from this impofition ".
The odious tax of Danegeld, though levied in the beginning of
Henry's reign, was either totally remitted by this monarch, or fell into
difufe. There is much uncertainty in our public records, as to the final
extinction of this tax, which Madox, with all his knowledge and in-
duſtry, has not been able clearly to develope". After the ſecond
year of
Henry II. he conjectures, that it was not a fettled part of the public.
revenue. Perhaps it was difficult, however, at once, totally to abandon
fo
ſo conſiderable a branch of the royal income; and there is reaſon to
believe, that it was occafionally levied, particularly in the thirteenth and
twentieth years of Henry's reign, and probably in the twenty-firſt,
when writs of fummons, for that purpoſe, were iffued out of the ex-
chequer.
Some authors have accufed this monarch of pillaging the poffeffions
of the church; of executing, with the greateſt rigour, the harsh regula-
2
J. 1
Carte, vol. i. p. 719.
Madox, Excheq. p. 398. *3 Ibid. p. 478 & 479.
tions
OF THE BRITISH 57
•
EMPIRE.
tions of the foreft laws; and of reviving the old Saxon taxes of Burg-
bote, Brig-bote, Heregeld and Horngeld". But, on the whole, there
ſeems to have been little reaſon to complain of the general tenor of his
government; and it is recorded, much to his honour, that having been
for fome time abfent from England, and finding, upon his return, that
great abuſes had taken place in the collection of his revenues, and in-
deed in the adminiſtration of juftice, he appointed a commiffion of
fome of the moſt reſpectable of his ſubjects, to enquire fully into the
grievances that were complained of; and, in confequences of their
report, many of the fheriffs, and other officers of the crown, were re-
moved, and obliged to give fatisfaction, not only to the king, but to
any private individuals who were injured ".
The amount of the treaſure which Henry left behind him, is a point Treaſure,
about which hiſtorians differ. Hume ftates it only at an hundred thou-
fand marks 16. But Matthew Paris, and other authors, affirm, that it
amounted to 900,000 l. in gold and filver, befides plate, jewels, and pre-
cious ſtones". The former account, however, is the more probable: for,
with ſo great a treaſure as Matthew Paris ſuppoſes this monarch to have
been maſter of, he must have carried on the war, in the latter part of
his reign, with more ſpirit, and with more fuccefs; and would not have
been reduced, a few days before he died, to the hard neceffity of ratify-
ing a treaty, which impofed terms equally ruinous and difgraceful, and
which tarnished all the glory and renown he had formerly acquired.
RICHARD I.
The reigns of heroes, or of martial monarchs, however advantageous
to the military character, yet are uniformly deftructive to the property,
and baneful to the commercial interefts of a nation. The fubjects of
fuch monarchs, though unintereſted in the fuccefs of the wars in which
they are engaged; and though, if fuccefsful, the glory wholly centers
in the fovereign, yet are under the neceffity of defraying the heavy load
of expence, which the wildneſs of their ambition occafions; and thus
the folid intereſts of a nation are facrificed, to gratify the pride, to in-
35 Vol. ii. p. 5.
14 Stevens, p. 34.
7 Matth. Paris, p. 147.
15
as Lytt. Hift. vol. iv. p. 292,
Carte, vol. i. p. 738.
I
dulge
į
58
HISTORY OF THE PUBLIC REVENUE
TheCrufade.
Richard's
ranfom.
dulge the paffions, and to promote the aggrandizement, of one arro-
gant or vain-glorious individual. Notwithſtanding theſe circumſtances,
the reign of Richard Cœur de Lion, or the Lion-hearted, is a favourite
one with the English reader, who fondly fancies, that, by his valour,
the fame of England was eſtabliſhed in the moſt diſtant corners of the
Laft.
The preparations made by Richard for his expedition, are a full proof
of that monarch's zeal for the enterpriſe he had undertaken; and in-
deed, if his fubjects had not entered into it with the fame alacrity, they
could hardly have fuffered him to take fteps of fo oppreffive and danger-
ous a nature. Every means that could be invented for raifing money,
was adopted without heſitation. The crown lands, and offices of the
greateſt truſt and power, were diſpoſed of, almoſt at any price. The
feudal ſuperiority of Scotland was fold for ten thouſand marks. Arbitrary
fines were levied from the officers of the crown, under the pretence of
delinquency. The rich, who had efcaped other modes of extortion,
were compelled to ſupply the king with money by way of loan, without
any hope of being repaid. Nay, under colour that the great feal was
loft, former grants were held to be invalid. A new feal was made, and
every perſon was obliged to purchaſe a renewal and confirmation of his
grant. It is faid, that, by theſe and other means of exactions equally
odious, ſo much money was raiſed, and carried out of the kingdom,
that a genuine coin, of this monarch's ftamp, is hardly to be met with,
in the moſt valuable and curious collections ".
The conſequence of this monarch's expedition to the eaſt, the re-
nown he acquired in the courfe of the war, and his difgraceful captivity
on his return home, are circumſtances well known to every perſon in
the leaſt converſant with the Engliſh hiſtory. Leopold, duke of Auſtria,
and Henry, emperor of Germany, by whom Richard was impriſoned,
having demanded the exorbitant fum of a hundred and fifty thoufand
marks for his releaſe, a heavy tax was laid upon his fubjects, in aid of
the king's ranſom, to which the vaffals of the crown were bound by
the nature of their tenures. England had not yet recovered the lofs of
fpecie, which it had ſuſtained by Richard's former extortions, and the
18 Parl. Hift. vol. i. p. 19.
treaſure
OF THE BRITISH
EMPIRE.
59
treaſure that he carried with him to Afia. At a time when money was
fcarce in Europe, and the commerce of England was inconfiderable, a
freſh ſupply of fpecie was not eaſily procured: it was, therefore, with
the utmoſt difficulty, that the firft payment of 100,000 marks was made,
though his fubjects, notwithſtanding the variety of taxes impoſed upon
them at that time, vied with each other, which of them fhould pay in
the greateſt voluntary contributions for the ranſom of their fovereign ".
From the return of Richard to his death, his reign was a perpetual feries Extortions.
of war abroad, and of extortion at home; principally, however, occa-
fioned by the attempts of Philip Auguſtus, king of France, to conquer the
dominions of England on the continent. In confequence of the enter-
priſes of that formidable enemy, joined to the heavy ranſom he had been
obliged to pay, he was reduced to the neceffity of cancelling all the
contracts he had entered into, previous to his Afiatic expedition; and
of reſuming all the offices, together with fuch of the` crown lands as
were purchaſed at that time. The whole body of the clergy alſo, but
more particularly the Ciftercian monks, were obliged to pay confiderable
fums of money to ſupply the king's neceffities; and at this period we
firſt hear of wool being taken in kind for the purpoſes of revenue. In
the tenth year of his reign, Danegeld likewiſe, under the leſs obnoxious
name of Hydage, was levied at the rate of five fhillings per hyde
20
It is not a little fingular, that the reign of this monarch fhould
furniſh an example of raiſing a revenue by means of licences; a mode Licences.
which, in modern times, has become fo prevalent. Neceffity, how-
ever, is the parent of invention; and, confidering the difficulties to
which Richard and his miniſters were reduced, it is not to be wondered
at, that they ſhould make this important diſcovery. At the period we
are now writing of, it is well known, that, for the better exercifing of
the people in the arts of war, jufts and tournaments were encouraged,
and they naturally became faſhionable in fo martial an age. But, with.
19 Carte, vol. i. p. 759. Authors differ much as to the amount of this monarch's
ranfom. Diceto calls it 100,000l. of filver. Jervafe of Canterbury, 150,000 marks.
M. Paris, p. 167, 140,000 marks of filver. The MS. Chronicle at Chefter, 160,000
marks. But Hoveden, p. 4.15, gives us a copy of the agreement, from which it appears,
that 100,000 marks were paid down, and that, for the remaining 50,000, hoftages were
to be given, but the payment was conditional. 100,000 marks was equal to 194,000 1.
of modern money. Folkes on Coins, p. 6. Note.
20 Stevens, p. 40.
Ι I 2
a view
60
HISTORY OF THE PUBLIC REVENUE
Amount.
a view of rendering that practice profitable to the exchequer alfo, it was
enacted, by Richard, that every perfon fhould pay for a licence before
he engaged in fuch exerciſes, according to the following rates: every
carl, twenty marks of filver; every baron, ten marks; every knight,
having lands, four marks; and fuch as had no lands, two marks. No
perſon under the rank of a knight was permitted to enter the lifts".
23
It is related by Hoveden, a very refpectable ancient hiftorian, that, in
the ſpace of two years, 1,100,000 marks, equal to 753,332 l. fterling,
or 376,666 l. per annum, had been collected for public fervices 22. This
fum, Hume ſuppoſes to be totally incredible "3. But it is ſtated upon
the authority of Hubert, archbiſhop of Canterbury, who had infpected
the records, and examined the public accounts, to difcover the real
amount; and it is to be obferved, that this was not the annual income
of the crown, but compriſed the various fums which had been extorted
to carry on the war againſt Philip, and perhaps the money which the
Engliſh had paid, either in the ſhape of taxes, or of voluntary contri-
butions, for the redemption of their captive fovereign.
JOHN.
This deſpicable and odious tyrant, whofe hiftory it is impoffible to
contemplate without a mixture of difguft, indignation, and horror,
claimed the crown, as next of kin to the deceaſed king, of whom he
was the only furviving brother. But the Engliſh had foon reaſon to
regret the ſupport they gave him, in oppoſition to the pretenfions of
Arthur, and of his fifter Eleanor, the children of Geoffrey, who was
next brother to Richard, and whofe defcendants, therefore, by the right
of repreſentation, were entitled to the throne. To remove fo danger-
ous a rival as Arthur, who had diſplayed, at an early period of life,
ſpirit and abilities beyond his years, every art that treachery could
invent, or barbarity could execute, was put in practice by his inhuman
uncle; and it is fuppofed, that this obftacle to his ambition, which no
21 Carte, vol. i. p. 764.
22 Hoveden, folio edit. p. 437, anno 1196.
23 Vol. ii. p. 38. See alfo Carte, vol. i. p. 769; and Davenant, vol. iii. p. 74, who
fuppoſes the fum equal to eleven millions of modern money.
4
other
OF THE BRITISH EMPIRE.
6 &
!
other perfon had the cruelty to remove, was murdered by his own
hands 24. By the death of this unfortunate prince, and Eleanor's cap-
tivity and impriſonment, he flattered himſelf, that his government was
eſtabliſhed on a rock, which could not eaſily be fhaken. Instead of
which, abroad, he loft the ancient patrimony of his family on the
Continent; and, at home, paffed a life of mifery, turbulence, and
difgrace.
tions.
Neither the clergy nor the laity were exempted from his rapacity. His extor-
In the twelfth year of his reign, he is faid to have exacted 140,000/.
from the church. In his thirteenth year, 400,000 marks were alfo de-
manded; and in the courſe of a reign of ſeventeen years, only three
are diſtinguiſhed as being freed from one fpecies of impofitions or
another. But the Jews in particular felt the weight and violence of
his extortion. An. 1210, 66,000 marks were demanded from them ;
and perſons of both fexes were feized, impriſoned, and tortured, in
order that they might deliver up all they were worth ". One of them,
a Jew of Briſtol, having refuſed to pay 10,000 marks affeffed upon
him, the tyrant ordered a tooth to be pulled or beat out every day,
until this exorbitant fum was paid, which the unhappy Ifraelite was at
laft compelled to do on the eighth day, after ſeven of his teeth had
been ſtruck out 26.
·
The only circumſtance which can prove in any reſpect agreeable to Magna
the reader during the whole courſe of his reign, is the confirmation, ex- Charta,
torted from this monarch with confiderable difficulty, of the rights and
liberties of the people of this country, in the deed fo emphatically
named, The Great Charter of the Liberties of England". By this
important inftrument, a variety of regulations were enacted, favourable
to the vaffals of the crown, by which the pecuniary burdens of the
feudal law were confiderably diminiſhed; and by the 14th, 15th, and 16th
articles it was declared, that no fcutage or aid ſhould be impoſed on the
kingdom in general, and in particular on the city of London, or any
of the other cities, towns, or boroughs of the kingdom, unleſs with
the confent of the common council of the realm, excepting for ranſoming
24
Hume, vol. ii. p. 48.
25. Stevens, P. 44.
26 M. Paris, p. 220. Tovey's Anglia Judaica, p. 70. Madox Excheq. p. 151.
27 See the famous Petition of Right, clauſe 3.
the
62
REVENUE
HISTORY OF THE PUBLIC
1
Cultoms.
the king's perfon, making his eldeſt ſon a knight, or marrying his eldeſt
daughter; and even then, only a reaſonable aid was to be demanded :
and by another claufe, fines and amerciaments, which had formerly
been very grievous and oppreffive, were reftricted within proper
bounds. On the whole, this charter, though it does not contain a
complete ſyſtem of civil liberty, is, at the fame time, without doubt,
the moſt important, extenſive, and valuable compact entered into
between reigning monarch and his fubjects, to be met with in the
hiſtory of almoſt any age or country.
It appears from the forty-eighth article of Magna Charta, that fome
duties were paid on goods at that time, and had been formerly exacted.
The merchants were to trade, "fine omnibus malis toliis." But, at the
fame time, the articles in which they dealt, were to pay custom "per
antiquas et rectas confuetudines." What thofe ancient and equitable
duties were, is now unknown; but they must have been very
fiderable, as they were let in farm, in the fourth year of John's reign,
for only 1000 marks 28.
incon-
John continued the dangerous practice, begun by his brother Richard,
of felling the offices under the crown. Nay, he ventured to diſpoſe of
the high employment of chancellor, to one Gray, during his life, for
only 5000 marks.
HENRY III.
At the age of nine years, Henry III. inherited the crown of Eng-
land. He mounted the throne at a time when the greatest experience
and the moſt ſplendid abilities were neceffary to preſerve the kingdom
from the ruinous confequences of inteftine wars and foreign invaſion.
Fortunately, William Earl of Pembroke, the marifchal of England, and
confequently by his office, in times of fuch turbulence and confufion, at
the head of the government, was poffeffed of virtue and abilities adequate
to fo dangerous a crifis; and, by means of his prudence, vigour, and
exertions, and the return of many of thoſe barons to their allegiance,
29 An. 1202.
See Madox, p. 529. It appears alfo from p. 530, that the cuſtoms of
all England, and the profits, arifing from its principal fairs, amounted only to £ 4958: 7 : 3½
from the faft of St. Margaret in the fourth, to the feast of St. Andrew in the fixth year
of this monarch's reign.
who,
!
OF THE BRITISH EMPIRE.
63
"
who, from hatred to their late monarch, had thrown themſelves into
the arms of France, Henry at laft acquired the peaceable poffeffion
of his dominions, both in England, and on the continent.
The reign of this monarch, which lafted upwards of fifty-fix years,
is the longeſt in the annals of this country. Unfortunately, it cannot
boaſt of ſplendour equal to its duration : it was neither happy at home,
nor reſpectable abroad. His fubjects complained of the weakneſs of his
government, of his rapacity and profufion; whilft his enemies had no
reaſon to tremble at the vigour or abilities of their opponent. Henry's
character, perfectly well adapted to the ftill life of a private citizen, was
but ill fitted for the buſtle and intrigues of a court, or the tumults of
hoftility and war.
His attachment to unworthy favourites, and profuſe liberality to the Revenue.
minions who were about him, in a great meaſure occafioned the miferies
of his reign. By his inconfiderate bounties, he had reduced the income
of the crown to 60,000 marks per annum ", and he was not fcrupu-
lous as to any means of making up the deficiency.
It would be trefpaffing upon the reader's patience, to attempt an
enumeration of the number of fcutages, aids, talliages, carrucages,
hydages, tenths, fifteenths, benevolences, &c. which this king, by
different means, and under various appellations, obtained, or extorted
from his fubjects, in the courfe of his long adminiftration. He is faid
to have taken 400,0co marks from the Jews". His expences in a vain
attempt to conquer Sicily for his fecond fon, are faid by Matthew Paris
to have amounted to 950,000 marks". In the forty-third
In the forty-third year of his
reign, he was reduced to the greateſt neceffity. And when Lewis king
of France, who was not perfectly ſatisfied with his right to Normandy
and Anjou, offered him 300,000 livres Tournois, and lands to the
value of 20,000 livres per annum, in full of his claim to the fovereignty
of thoſe two provinces, for that trifling confideration he renounced all his
pretenfions to the ancient patrimony of his family, and ever after ftruck
out from his other titles, thofe of Duke of Normandy, and Earl of
Anjou. To this king and his minifters may be attributed a new device.
22 M. Paris, p. 647.
30 Steven's Hift. of Taxes, p. 48.
31 M. Paris, p. 918. This is the probable meaning of a paffage which has puzzled
many of our hiftorians,
to
64
HISTORY OF THE PUBLIC REVENUE
Confe-
quences of
to raiſe a revenue, of which his fucceffors afterwards availed themſelves.
The mode was, to compel every one who poffeffed fifteen or twenty
pounds a-year in landed property holden of the crown, either to take
the order of knighthood, or to pay a certain fum of money in its ftead,
by way
of compofition. This was a fure mode of raiſing money; for
thoſe who did not compound, were obliged to pay confiderable fees at
their creation, which all went into the exchequer.
The miferable ſtate to which Henry was reduced, is fufficient, one
his profufion. fhould imagine, to deter any monarch from imitating his extravagance
and profufion. He found the utmoft difficulty to pay his eldeſt fon
Edward, the ſmall pittance of 15,000 marks per annum, for his fup-
port. His debts, amounting to about 300,000l., he was totally unable
to diſcharge. In order to raiſe money, he was obliged to fell the very
furniture of his palace; to pawn the jewels of the crown; nay, the
thrine of St. Edward the Confeffor, for whom he had always expreffed
the higheſt veneration 3. He is reprefented as wandering about the
country, foliciting the charitable contributions of his fubjects"; and
his attendants were reduced to fuch ftraits and difficulties, that they were
compelled to confederate with gangs of robbers, in order, by their ſhare of
the booty, to fecure a maintenance 34
Customs.
32
In the reign of Henry, this branch of the revenue was increafed to
6oool. per annum 35. But the exaction of fuch high cuftoms was
complained of, as contrary to Magna Charta, and was faid to be
attended with an apparent overthrow of trade"; a proof how much
people are apt to complain of the flighteft burdens, and indeed how
inconſiderable the commerce carried on by England at that time muſt
have been.
32 Noy's Rights of the Crown, chap. viii. Stevens, p. 70.
33 Stevens, Pref. p. 31.
35 Hume, vol. ii. p. 170. Note C.
36 Noy's Rights of the Crown, p. 78.
34 Hume, vol. ii. p. 228.
EDWARD
!
OF THE BRITISH EMPIRE. ·
65
、
EDWARD I.
Edward the Firſt, the great reformer of our laws, and hence called the
English Juftinian, was one of the wifeſt and moſt fortunate princes, that
ever fat upon the throne of England. In him were united the prudence
and forefight of the ſtateſman and legiſlator, with the valour and mag-
nanimous ſpirit of the hero. The expenſive wars, and the variety of
important enterpriſes in which he was engaged, occafioned the levying
of many taxes, and fometimes gave rife to oppreffions, of which his
fubjects had ſome reaſon to complain: but the money he exacted from
them, was uniformly expended for the honour and benefit of his
kingdom; and the laws which he propofed, or to which he gave his
confent, firſt extended that commerce, confirmed thofe liberties, and
eſtabliſhed that conftitution, on which the future happineſs of this
country depended.
Among the other great tranſactions by which the reign of this
monarch is diſtinguiſhed, the final eſtabliſhment of Magna Charta, to-
gether with fome important additional articles, and a full and com-
plete confirmation of the famous ftatute " de tallagio non concedendo,
are intitled to particular attention. The former (Magna Charta) had
already been frequently confirmed by the different monarchs, who, fince
the firft paffing of that important deed, had fat upon the throne; but
it was ſtill thought requifite, to have that folemnity again repeated. The
latter was rendered neceffary, in confequence of fome defects in the
Great Charter, particularly as it had permitted the crown, by its own
authority, to levy aids for ranſoming the king's perfon, making his eldeſt
fon a knight, or marrying his eldeſt daughter; a prerogative liable to
abuſe; and, at the fame time, it had laid the crown under no reftraint, in
regard to exacting arbitrary talliages, from its demefnes.
But by
the ſtatute above-mentioned, no aid or talliage whatfoever could be de-
manded, without the conſent and approbation of Parliament; and this
important conceffion, in the words of Hume, "the English nation had
"the honour of extorting from the ableft, the moſt warlike, and the
"moſt ambitious of all their princes, who was thus bereaved of the
K
power
Confirma-
tion of
Magna
Charta, and
of the ſtatute
de Tallagio
non conce™
dendo.
66
HISTORY OF THE PUBLIC REVENUE
Exactions
from the
Jews.
'
power
which he and his predeceffors had hitherto affumed, of impof-
ing arbitrary taxes on the people "." By this famous ftatute, the
people of England, as Bodin well expreffed it, defended themſelves, as
if with a fhield, from the exactions of their fovereign ".
38
But whatever acquifitions of liberty, or fecurity for their perfons and
eftates, were obtained by the people in general, yet fome of his ſubjects,
who thought themfelves equally intitled to his protection, were treated
in a manner which impreſſes us with no very favourable idea of Edward's
humanity. It is his treatment of the Jews to which I allude. Beſides
large fums of money extorted from them at his acceffion to the throne,
in the third year of his reign, they were made ſubject to a poll-tax of
three-pence each, without any exception on account of poverty, fex, or
age". In the fourth year, the tax was raiſed to five-pence a head: but
in the eighteenth year, the whole nation was fentenced to perpetual
Anno 1290. exile by act of parliament. All their property was confifcated for the
uſe of the crown; many were hanged under various pretences; in par-
ticular two hundred and eighty in one day, who were accuſed of hav-
ing adulterated the coin; and above fifteen thouſand were plundered of
all their wealth, and baniſhed the kingdom". So odious were the Jews
at that time to the nation in general, that the laity granted the king a
fifteenth, and the clergy a tenth of their perfonal eftates, for conſenting
to, and perhaps encouraging their expulfion ".
Exactions
from the
Church.
But Edward's conduct to the clergy foon convinced them, that
attachment to the fuperftition prevalent at that time, had no fhare in
rendering him fo great an oppreffor of the Jewiſh race. The church
from the beginning had ſome reaſon to be afraid, that a monarch ſo
high-ſpirited and fo ambitious as Edward, would be frequently under the
neceffity of applying to it for pecuniary affiftance; and the clergy
were not a little alarmed, when, in the fixteenth year of his reign, he
gave orders to fearch all the monafteries in England, and to feize for his
own uſe the money and valuable effects depofited in them. They flat-
tered themſelves, however, that the authority of the Pope would ſhield
them from his rapacity; and, in confequence of an application from
37 Hume, vol. ii. p. 292. 295. 33 De Repub. lib. i. cap. 8.
Hume's hift. vol. ii. p. 236.
·
* Tovey's Anglia Judaica, p. 232.
41 Stevens, p. 84.
39 Stevens, p. 79..
the
十
​OF THE BRITISH EMPIRE.
67
the
the Archbishop of Canterbury, Boniface VIII. who then fat upon
Papal throne, iffued a bull, prohibiting all princes to levy any taxes
upon the clergy, and all clergymen to pay any impofition without the
authority of the Pope. Edward was determined, by the moft vigorous
meaſures, to puniſh the clergy for making this application, and to com-
pel them to renounce any benefit it could poffibly afford. He put the
whole church out of his protection: he declared that thoſe who refufed
to ſupport the civil government, were not intitled to receive any
advantage from it. The judges were directed to fuffer any perſon to
haraſs or plunder them with impunity; whilft, on the other hand, no
court of law would give them any redrefs. The king at laft prevailed
in the conteft: the Pope's bull was either contemned or evaded, and the
clergy were glad, almoſt on any terms, to be reinſtated in the royal pro-
tection, and to enjoy again the benefit of the laws
42
i
Thus the church was made ſubject to the civil power; nor was it
afterwards thought neceffary to have a bull from the Pope, previouſly
to any clerical impofition.
Taxes on the exportation and importation of goods, became, in the Cuſtoms.
reign of this monarch, an important branch of the revenue. It is
probable that cuſtoms were at firſt only ſmall duties, levied at ferries
and bridges, and, perhaps, for the liberty of trafficking on the
Thames, together with fees for weighing and warehouſing of goods,
which the officers of the crown exacted for their labour and attendance.
Theſe trifling exactions might gradually take place, without the
fanction of parliament, in confequence of the king's (who was account-
ed the arbiter of commerce) having provided weights and beams, and
erected warehouſes, where, fubject to certain cuſtomary fees and duties,
(thence called cuftoms) all goods and commodities might be fold 4³.
Cuftuma.
But Edward I. was not fatisfied with fuch petty advantages: for The Antiqua
having feen, during the courſe of his expedition to Paleſtine, with
what facility confiderable fums of money were levied by way of custom
in foreign countries, he thought it would be a happy expedient for
raiſing a revenue in his own kingdom. The firft duties laid on, how-
ever, were very moderate, amounting only to fix fhillings and eight-
42 Carte, vol. ii. p. 265. 267. Hume, vol. ii. p. 286.
43 Gilb. Hift. of the Exchequer, chap. xv.
K 2
pence
68
HISTORY OF THE PUBLIC REVENUE
Origin of
tunnage and
poundage.
Feb. 1,
1304.
44
pence on every fack of wool exported; and the like fum for every
three hundred wood-fells; and a mark, or thirteen fhillings and four-
pence, for every laft of hides, at the rate of twelve dozen per
per laſt
Thefe duties, Lord Coke imagines, were granted by parliament in the
third year of his reign; and, though the record is now loft, it is evi-
dently referred to in a ſubſequent act (25 Edw. I. c. 7.); in which no-
tice is taken of the cuſtoms on wool, ſkins, and leather, formerly granted
to that monarch, by the commonalty of the kingdom".
Edward's neceffities however demanded a more productive reve-
nue; and he began with additional duties on aliens or foreign mer-
chants, wifely conjecturing that any taxes they were willing to pay,
might afterwards be extended with lefs difficulty to his own fubjects.
He granted, therefore, a charter (entitled Charta Mercatoria) to the
merchant ſtrangers fettled in England, by which certain valuable privi-
leges were beſtowed on them, in confideration of their having agreed to
pay the following cuſtoms. 1. In lieu of the duty called Priſage, the
fum of two fhillings for every tun of wine imported by them, over and`
above the ancient cuftoms; a tax which afterwards obtained the name
of Butlerage, being paid to the king's butler. 2. Forty pence for every
fack of wool, and for every 300 wood-fells exported, in addition to the
half mark, or fix fhillings and eight pence, paid by the natives; toge
ther with fix fhillings and eight pence additional for every laft of hides.
3. Befides fome duties upon cloth and wax, a general poundage, or tax of
three-pence in the pound on all goods imported or foreign commodities
re-exported, after having been landed in England, excluſively of the an-
cient cuſtoms to which they were formerly ſubject. Theſe rates were
called Nova Cuftuma, and fometimes Alien duties, and were levied by the
authority of the crown, without the fanction of parliament, in confe-
quence of the voluntary confent that was given by the foreign mer-
chants. In the third of Edward II. however, this charter was fuf-
pended; and it was totally repealed in the fifth of Edward II. by the
lords, who at that time were entrusted with the government of the
country: but it was again eſtabliſhed in the reign of Edward III.", and
44 Madox, p. 536. Forfter on the Cuftoms, Introd, p. 14.
45 Gilb. Excheq. p. 276.
46 Forst. p. 26.
47
27 Edward III..
in
OF THE BRITISH EMPIRE.
69
in fact it is the foundation of the duties of tunnage and poundage, fo
famous in the hiſtory of England.
Such were the cuſtoms paid by aliens in the reign of this monarch.
As to the native merchants of the country, it was always the policy of
England to give them ſuperior advantages for carrying on their com-
merce; and as the Nova Cuftuma above-mentioned, were founded upon
an agreement between Edward and the foreign merchants, the legality
of which the commons were much difpofed to queftion, there is every
reaſon to believe, that the natives of the country were not at all affected
by theſe new impofitions. Here it may be proper to remark, that, anno
1298, the duty upon wool exported had been raiſed by Edward to forty
fhillings per fack, an increaſe grievously complained of; not only as it
was laid on by the authority of the crown alone, but was in itſelf too
high". The right of adding to the old, or of levying new cuftoms,
came at length to be a matter of fuch public importance, that, for many
years, it was warmly conteſted between the crown and the people.
But fince the forty-fifth of Edward III. and eleventh of Richard II.
chap. 9,
it has been generally held, that no impoſition whatever can be
levied, either on exports or imports, without the conſent of parlia-
ment*9.
49
·
•
The difcovery of fome valuable mines in Devonshire, alfo tended to Mines.
enrich this monarch". It is on record, that within three years from
their being firft difcovered, about 1700 pounds weight of filver were
extracted from them; and it is probable that, afterwards, they would
produce more, in confequence of a greater number of workmen having
been employed..
and govern-
From the conqueft to the æra we are now confidering, the ufual mode New fyftem
of levying money for the extraordinary expences of the crown, was by of taxation
ſcutages, or pecuniary commutations for perſonal ſervice: but a variety ment.
of circumftances contributed to render fuch a fyftem no longer effectual.
Scutages were levied in proportion to the number of knights fees which
each perſon poffeffed. But, in confequence of the fluctuation of private
property, and of many evafions which it was impoffible to foreſee, and
difficult to check, joined to the inaccurate manner in which the rolls of
43 Stevens, p. 96.
49 Forft. Introd. p. 16.
5° Stevens, P. 79:
knights
70
'HISTORY OF THE PUBLIC REVENUE
knights fees were kept, it became impracticable to aſcertain the number of
fees with which each perfon ought to be charged. And when a ſmall
number was once accepted of, it was confidered to be a binding prece-
dent for the future". Thus the crown was deprived of the military fer-
vices of its vaffals; was defrauded of the compenfation to which it was
juſtly entitled; and was reduced to the neceffity of providing fome other
means for the public defence. Some fcutages, however, were levied du-
ring the reign of Edward: indeed ſo prudent a monarch could never
have entirely relinquished an old and eſtabliſhed mode of taxation, un-
til he had known, by experience, that a more productive fyftem of rc-
venue could be carried into effect.
In the mean while, a new defcription of perfons, attracted the atten-
tion of the fovereign. For many years, pofterior to the conqueft, the
poffeffors of lands were the only rich and powerful individuals in the
community: but, in proceſs of time, towns came to be emancipated
from their former fubordination and dependence; their citizens be-
came induſtrious and opulent; they engroffed a confiderable ſhare of
the wealth and property of the country; the ſmalleſt portion of which
they were unwilling to part with, unleſs with their own confent. Ori-
ginally the principal towns in England were included in the royal do-
mains, and the crown was entitled to impofe talliages or taxes upon
them, whenever it thought proper. The city of London itſelf was in
that predicament; and, after fome conteft, whether it was talliable or
not, in the thirty-ninth of Henry III. was compelled to pay a talliage of
3000 marks affeffed upon it by the king and his council 2. But when
the famous ftatute de tallagio non concedendo, paffed into a law, there
was an end of that prerogative; and it was neceffary for the crown, if
it wiſhed to reap any pecuniary advantage from the opulence of the
towns and boroughs, to affemble their deputies together, and to endea-
vour, through their medium, to obtain the fupplies neceffary for the exi-
gencies of the State. Hence arofe the practice of regularly fummoning
the repreſentatives of boroughs to parliament, which had occaſionally
taken place before the reign of Edward, but fince his time has never
¹ Hume, vol. ii. p. 278.
12 Madox, p. 491. Authors differ as to the nature of this council, but it was evidently
not a parliament. Lytt. vol. iii. p. 258.
1
been
1
OF THE BRITISH EMPIRE.
71
been interrupted. Brady and Hume, confider the twenty-third year of
the reign of Edward, as the epocha of this great revolution"; but it
cannot, with ſtrict propriety, be faid to have taken place until, in confe-
quence of the ftatute above-mentioned, enacted in the twenty-fifth year
of
this reign, all other legal means of taxing cities and boroughs, excepting
by their repreſentatives in parliament, were finally aboliſhed.
Thoſe who look upon themſelves as the warmeft friends of public li-
berty, cannot hear, with patience, that the commons houfe of parlia-
ment had not acquired, at an earlier æra, its full dignity and importance.
The period of five hundred years, which has almoft elapfed fince the
twenty-fifth of Edward I. does not alleviate their anxiety, or fatisfy their
zeal. They wish to trace the origin even of burgal reprefentation :
throughout all the dark labyrinths of "Saxon and Norman antiquities.
The natural prejudices of a free country, it is always diſagreeable and
often dangerous to oppofe: but it may furely be remarked, without
giving the moſt ardent friend to ancient liberty the ſmalleſt offence, that
if taxation and repreſentation are fo infeparably connected, as fome po-
litical writers are defirous of inculcating, boroughs could have no repre-
ſentatives in the earlier part of the Engliſh hiſtory; for this plain rea-
fon, that they were not liable to parliamentary taxes. For, above a hun-
dred years after the Norman invaſion, no tax was laid upon perfonal ef-
fects, by which alone the boroughs could be materially affected. In
deed, before the reign of Edward I. or, at leaſt, of Henry III. very few
inftances occur of impofitions upon perfonal property. Whatever right
therefore the towns and boroughs originally might have, in confequence
of the free principles of the Saxon government, to partake in the legifla-
tive power of the country, it is certain, that, for many years after the
conqueft, it was unneceffary for them to be loaded with the burden and
expence of fending reprefentatives. Inſtead, therefore, of carrying on fo
abſtruſe, and, after the lapfe of fuch a number of years, fo unimportant a
controverfy, it were better to contend, who ſhould pay the fincereft tri-
bute of gratitude, to thoſe patriots, whoſe exertions eſtabliſhed the rights
and privileges of England. It ought ever to be remembered, that, to the
zeal and prudence of Langton, Archbishop of Canterbury, the great char-
ter was principally owing; and that, to the undaunted fpirit and manly
53 See Brady on boroughs, edit. 1777. p. 68: Hume, vol. ii. p. 2720.
6
perfeverance
72
HISTORY OF THE PUBLIC REVENUE
perfeverance of Humphry Bohun, earl of Hereford, the conftable, and
of Roger Bigod, earl of Norfolk, the mariſhal of England, the paffing of
that ſtatute ought to be attributed, which, by annihilating for ever the
royal prerogative of impofing arbitrary taxes upon the fubject, laid the
true foundation of a limited monarchy, without which every other right
and privilege were in vain.
EDWARD II.
The reign of Edward II., comprizing a period of about twenty years,
is remarkable for the inconfiderable taxes levied upon the fubject. The
power of the crown to raiſe money, in virtue of its own prerogative,
having been completely abandoned by his father, it is not to be fuppofed
that it could poffibly be regained, under the adminiſtration of a ſon in
every reſpect his inferior: and, as Edward's miſconduct in government,
and his attachment to unworthy favourites, did not entitle him to any
great pecuniary affiftance from his people, they had ſome little conſola-
tion in the lightneſs of their taxes, for the diſgraceful calamities of his
unfortunate reign.
Among the other events, which contributed to heap diſhonour on
the government of this monarch, the lofs of Scotland was unquestionably
the moſt important. It is natural for a native of that part of the iſland
to imagine, that Edward's character could not be materially tarnished, for
failing in an attempt to fubdue that country, defended as it was by a gal-
lant nation, renowned, both in ancient and in modern times, for its forti-
tude and valour. Their reſiſtance, however, would probably have been
ineffectual, had Edward endeavoured to complete the conqueft of that
country immediately after his acceffion, before the Scots had recovered
their fpirit, or had received affiftance from their allies on the continent.
But, though Edward fucceeded to the crown on the 7th of July 1307,
the battle of Bannockburn, on which the reduction of Scotland depend
ed, was not fought till the 25th of June 1314: and thus Robert the
Bruce and his ſubjects enjoyed an interval of about ſeven years, and had
time ſufficient to acquire ftrength, difcipline, and experience. The
fubfidies granted to this monarch were principally intended to carry on
bis wars againſt the Scots, the fuccefs of which yielded no encourage-
ment
OF THE BRITISH EMPIRE.
73
.
ment to his fubjects to furnish him with fupplies for any other purpoſe
whatſoever.
The new mode which Edward I. had difcovered, of increafing his Cuftoms.
revenue by duties upon commerce, occafioned fo much jealoufy, that in
the famous ordinances, which were enacted anno 1311, for the better
government of the kingdom, they were entirely abolished. By one
article, the tax of Butlerage was prohibited to be collected; and by
another it was declared, that natives only ſhould be employed in the
collection of the cuſtoms; fome foreigners, to whom that branch of
the revenue was farmed, having been guilty of extortion.
It was alſo enacted, that the money which the remaining branches of
the cuſtoms yielded, fhould be appropriated to the maintenance of the
houſehold, that the king might be enabled to live upon his own re-
venue, without being reduced to the neceffity of oppreffing his fub-
jects". In the fecond year of his reign, he had impoſed, after his
father's example, two fhillings a tun upon foreign merchants, in ad-
dition to what they had formerly paid; and as this tax was exacted
without the fanction of parliament, it gave rife to much fufpicion,
and, probably, was the reafon why the articles above-mentioned were
fo particularly infifted upon. For it was a principle in the law of Eng-
land, that levying new cuſtoms, or adding to the old, could only be
done either by parliament, or confenfu mercatorum; and impofts laid on
by the royal authority alone, were called Maltoltes", or evil duties,
by which trade was materially injured, and which it was neceffary,
therefore, to take the earlieſt opportunity to abrogate and repeal ".
The anxiety of the Engliſh nation to atchieve the conqueft of Scot- New tax.
land, made them chearfully fubmit, in the reign of this monarch, to an
impofition of fo dangerous a nature, that it was expreſsly provided in
the grant, that it ſhould not be made a precedent for any fimilar demand
in future. By this fingular grant, which took place anno 1316, every
village, town, and city in the kingdom, was ordered to furniſh a certain
54 Mort. Hift. vol. i. p. 498. Note.
55 Some writers have fuppofed, that Maltoltes were duties upon malt; and others, a
fpecies of excife, without confidering, that cuftom-houfe duties were then as much
dreaded as exciſes are now.
36 Noy's Rights of the Crown, p. 77 & 80. Gilb. Excheq. p. 272. 275.
L
number
1
74
HISTORY OF THE PUBLIC REVENUE
Forefts.
number of ftout, and well-armed foldiers, in proportion to its wealth
and ability, provided with fubfiftence for fixty days; after which, they
were to be maintained at the expence of the crown. In addition to
this tax, a fifteenth part of the moveables of the laity was granted, to
render the conqueft more fecure. But the ſeaſon was paft: for the
battle of Bannockburn had previouſly eſtabliſhed the independence of
that country.
In
An attempt was made by Edward and his miniſters, to increaſe the
public revenue, by cultivating the forefts belonging to the crown.
his fecond year, a commiffion was granted to farm out fuch waſte lands,
fi abfque injuria alterius fieri poteft; and in his fifteenth year, a great
part of his woods were let for rent. The idea, however, was not then
purſued. But it is hoped, that a plan, of which it was faid of old,
"That it would increaſe many thouſand families for the public fervice,
"would bring many thouſand pounds into the public coffers, and
"would convert much wafte land, to habitations of chriftians," will be
no longer neglected".
Grants.
EDWARD III.
The reign of Edward III. is, without doubt, the moft fplendid in
the Engliſh hiſtory, for warlike atchievements. Befides many important
victories obtained by himſelf, his fon the Prince of Wales, the general
whom he employed, and even his Queen Philippa, boaſted of exploits,
which would have adorned any other æra, but which were all loft in the
fuperior luftre of thoſe of Creffy, of Sluys, and of Poitiers. His
ſubjects were ſo dazzled by his valour and fuccefs, that they willingly
fubjected themſelves to the moſt exorbitant taxes; and with reafon
afferted, that they had gone beyond all the commons in the world, in
liberality to their fovereign 5
58
A variety of parliamentary grants, under the ufual denominations of
tenths, fifteenths and twentieths, were received by Edward; and fome
taxes in kind were alſo granted him, as the ninth ſheaf, the ninth lamb,
and ſometimes a fubfidy in wool. But in the forty-fifth year of his
reign, there was a tax of a very particular nature, which is recorded alfo
57 Noy's Rights of the Crown, p. 6г.
58 Rot. Parl. 50 Edward III. Num. ix. vol. ii. p. 322,
as
OF THE BRITISH EMPIRE.
95
as the firſt inſtance of any ſpecific fum of money having been voted by
Parliament. It was a grant of 50,000l. for carrying on the war with Anno, 1371.
France. To raiſe this fum, every pariſh in England was affeffed in the
payment of 1. 3s. 4d. each, the greater to affift the lefs; and it was
ſuppoſed, that there were pariſhes enough in the kingdom, to make up
the complete fum that was required. But fo ignorant was the Parlia-
ment at that time of the ftate of the country, and of the number of
parochial diſtricts into which it was divided, that, inftead of 17. 35. 4d.
every pariſh was obliged to pay 57. 16s. each ".
59
The expences to which this monarch was put, appeared to be fo Customs.
much beyond the natural powers and refources of his kingdom, that it
was currently reported, he had diſcovered the art of making gold from
Raymond Lully, or ſome other ſkilful alchymift". But the only fecret
which Edward made ufe of, was to encourage the commerce of his
fubjects; for he knew well, that the neceffary confequence of an in-
creaſe of trade muſt be an addition to his revenue. Nay, he found
means to raiſe the cuſtoms of the port of London alone to 12,000 marks
per annum, which was more than the whole cuftoms of England had
yielded in the time of Henry III.". In the twenty-firſt year of his
reign, many merchants having been robbed and murdered by pirates
on the coaſt of England, it was thought neceſſary to equip a fleet for
the protection of commerce; and in order to raiſe the
and in order to raiſe the money wanted
for that purpoſe, an ordinance was made by the king and peers for
levying two fhillings upon every tun of wine, and fix-pence upon all
goods imported, which was only an addition of three-pence in the
pound, to the duties formerly laid on by the charta mercatoria. But
the commons complained, that the manner in which this tax was im-
pofed, was a violation of their privileges, and contrary to law 2. The
fecond grant of theſe duties (46 Edward III.) was equally illegal; for it
was granted by the citizens and burgeffes only, without the concurrence
of the knights of the fhires, or the peers of the realm 63. Perhaps they
59 Stevens, p. 109. 111.
instead of 51. 16s. per parish.
62
Carte, vol. ii. p. 527, erroneously ftates this tax at 11. 16s.
It appears from Hutchin's Dorfetfhire, Introd. p. 56, that
the miſtake was not fo much in regard to the number of parishes, as to the number of
thoſe able to pay the fum affeffed.
69 Gilb. Exchequer, p. 217.
61 Noy's Rights of the Crown, p. 86.
62 Rot. Parl. 21 Edw. III. Num. xi. vol. ii. p. 166.
63 Ibid. 46 Edw. III. Num. xv. vol. ii. p. 310.
L 2
4
thought
76
HISTORY OF THE PUBLIC REVENUE
Poll Tax.
Exactions.
thought themſelves juftified, from their reprefenting the commercial
intereft, to authoriſe the impofition of any tax by which trade alone
was affected, without the additional fanction of the other branches of
the legiſlature. The firft complete legal grant, therefore, of tunnage
and poundage, impofed by full parliament, and extending to natives,
was anno 13734, fince which period, thefe duties have exifted in this
country with hardly any exception.
The firſt poll tax upon the natives was granted to Edward. It was
a duty of four-pence a-head for every man and woman beyond fourteen
years of age, beggars only excepted". The clergy alfo granted twelve-
pence for every beneficed perfon; and four-pence for all other religious
perfons, excepting Mendicant Friars, who profeffing poverty, were not
ſuppoſed able to furniſh fupplies. Either the laying on of this tax, or
the oppreffive manner in which it was collected, occafioned much
diſcontent", and ought to have prevented a ſecond attempt of the ſame
kind, and the fatal confequences which refulted from it in the following
reign.
But Edward's great undertakings were of too expenſive a nature to
be carried on, either by the ordinary revenues of the crown, or by the
grants, however liberal, which he received from parliament. Accord-
ingly, his exactions were loudly complained of. The famous ftatute,
De tallagio non concedendo, was far from being ſtrictly obferved. It is
faid, that he impofed arbitrary talliages upon his domains; that he
ſeized the money and effects of the merchants or bankers of Lombardy,
who, fince the expulfion of the Jews, had followed the fame ufurious
practices, with the fame deteftation and obloquy. He is alfo accuſed
of having been the firſt who attempted to raiſe money by the pernicious
mode of erecting monopolies; of having extorted loans; of compell-
ing fuch of his ſubjects as poffeffed eſtates to the value of forty pounds
per anuum, to take the order of knighthood; nay, of ſeizing the goods
of his ſubjects, and ſelling them for his own behoof, giving the owners
fecurity for payment at a diſtant day, and at a price inferior to their
value "7
67
64 Rot. Parl. 47 Edw. III. Num. xii. vol. ii. p. 317.
65 Ibid. 51 Edward III. Num. xix. vol. ii. p. 364.
67 Stevens, p. 105. 110.
P. 64. 66.
65 Mort. vol. i. p. 614.
Hume, vol. ii. p. 490; and Noy's Rights of the Crown,
But
OF THE BRITISH EMPIRE.
77
X
plunder and
But England alone could not furnish, at that time, an income Foreign
adequate to the expenſive enterpriſes which Edward had undertaken ; refources.
and it must be confeffed, that he endeavoured, as much as poffible, to
make his wars feed themſelves, by plundering the countries through
which his armies paffed, or forcing the miſerable inhabitants to pay
heavy military contributions. Having taken in battle the kings of
France and Scotland, their ranfoms amounted to a fum which it was
very convenient for Edward to receive. By the treaty of Bretigny, the
king of France's ranſom was fixed at three millions of crowns of gold,
equal to 1,500,000 l. of our prefent money, of which, however, only
one-half was actually paid ". The king of Scotland's ranfom was only
100,000 marks fterling, which, though a ſmaller fum, yet was equally
exorbitant, confidering the inferior extent and opulence of his domi-
nions. But the greater part, if not the whole of it, was diſcharged
Nor were other reſources wanting: for he alſo received 50,000 7. fter-
ling from the duke of Brabant, as the portion of his daughter Mar-
garet, the intended bride of Edward the prince of Wales; and, it is ſaid,
30,000l. per annum from Ireland, after defraying the eſtabliſhments
neceffary for its government and protection ".
68
69
difficulties.
Notwithſtanding the wealth which, from fo many fources, poured it- Debts and
felf into Edward's coffers, and the fplendour of the greater part of his
reign; yet, on the whole, the events of it will furniſh no inducement
to any monarch to aſpire to the character of a conqueror, who coolly
confiders the difficulties to which this king was reduced, the debts
with which he was encumbered, and the unfortunate conclufion of his
reign. Though every means that could be deviſed for raifing money,
to carry on his various undertakings, was adopted without heſitation
or remorfe, he ſtill found himſelf in the greateſt perplexity and diſtreſs.
His queen pawned her jewels, and he himſelf was reduced to the ne-
ceffity of giving the great crown of England in fecurity for the money
which he borrowed; a gage which remained unredeemed for the ſpace
of eight years. Nay, he is reprefented, as afking the permiffion of his
foreign creditors, to pafs over to England, and of pledging his royal
word, to return to the continent, if he was unable to procure the money
68 Hume, vol. ii. p. 469, and note K. p. 510.
za Stevens, P.. 124.
• Mort. vol. i. p. 605.
neceffary
1
78.
HISTORY OF THE PUBLIC REVENUE
{
neceſſary to ſatisfy their demands. But the concluſion of his reign, in
particular, formed a miferable contraft to its former luftre. Not only
were all his conquefts (Calais only excepted) torn from him, but the
ancient patrimony of his family on the continent was confined to the
narrow bounds of Bayonne and Bourdeaux; and he who had defolated
every province of France; who had taken its fovereign priſoner, and
who had filled Europe with his renown, was glad to accept of any terms
that his enemies condefcended to offer". Thus the fame monarch,
who, in the earlier part of his reign, had conquered the dominions of
others, towards its cloſe, began to tremble for the fafety of his own.
Theſe public miferies were aggravated by diftreffes of a private nature,
which it does not come within the compafs of this work to relate.
It is impoffible too frequently to inculcate the doctrine, that more
Confequences
of extortion. revolutions have ariſen from the extortions of a fovereign, than from
any other political caufe whatſoever; and the reign of Edward un-
fortunately furniſhes us with an important inftance of the truth of that
propofition. His fon, Edward the prince of Wales, had undertaken an
expedition to Spain, for re-inftating Peter, furnamed the Cruel, upon
the throne of Caftile; an enterpriſe which he ſpeedily accompliſhed
with his uſual ſucceſs. But the ungrateful tyrant refuſed to defray the
charges of the expedition; and Edward was reduced to the neceflity of
demanding, from his fubjects in Aquitaine and Gafcoigny, a fum of
money to diſcharge the debts which he had incurred. This he propofed
to do, by levying the tax called Fuage, or Hearth-money, which, at
a livre per hearth, it was calculated would produce 1,200,000 livres.
But the attempt was attended with the moſt fatal confequences. It
filled the whole dominions of England, on the continent, with a fpirit
of revolt; and the French, taking advantage of an alteration fo greatly
in their favour, flew to arms; and in a little time, by the conquefts
they acquired, made ample amends for their want of fuccefs in their
former hoftilities againſt Edward". Thus England found then, what
it has alfo lately experienced, the difficulty of long retaining diſtant
acquifitions; and thus the levying of a trifling impoft, occafioned of
old a revolution of as much importance to this country, in its confe-
quences, as the independence of America. At the fame time, it is to
72 Ibid. vol. ii. p. 478.
1
71 Hume, vol. ii. p. 482.
be
OF THE BRITISH EMPIRE.
79
}
be remarked, that the fuccefs of the French, on this occafion, was
owing, not only to the affiftance of thoſe who were exaſperated at the
propoſed impoft, but alſo to the lingering illneſs with which the prince
of Wales was afflicted, and to the imprudent confidence of the Engliſh,
who thought themſelves invincible.
It is faid, by a very intelligent author, that the revenue of the Amount of
crown, in the twentieth year of the reign of Edward, amounted to the revenue,
L. 154,139: 17: 5 per annum. He mentions it upon the authority of a
Pell of that year, which it is probable he has ſeen "³.
73
But we are not
told where it is to be met with, or what were the particular fources
from which that income aroſe.
RICHARD II.
This monarch fucceeded his grandfather, Edward III. at a very early
period of life; and, as naturally might be expected, the feeds of future
mifery were laid during the courfe of his long minority. For his fub-
jects grew turbulent and factious; nor did he receive an education to
fit him for his high ftation, or the critical circumftances into which he
was led, partly by his own imprudence, and perhaps ftill more from the
temper of the times.
fidy.
The tax, known by the name of Subfidy, was first attempted in the The firft fub
fecond year of his reign. The object of the tax was to fave the poor,
and to lay the principal burden upon the rich.
the rich. It was levied partly
W.
by a poll, and partly by a tax upon income. The dukes of Lancaſter Anno 1379.
and Brittany, paid ten marks each; every earl was charged four
pounds; every Baron forty fhillings, &c. But the great body of the
people, merchants, artificers and huſbandmen, were affeffed a greater
or leffer fum, according to the value of their eftates.
This fyftem,
however, was too favourable to the indigent, to be much reliſhed by
the wealthier part of the community.
Notwithſtanding the difcontent which the poll tax, levied in the Poll tax.
reign of Edward III. had occafioned, Richard's minifters did not profit
by the experience that circumftance might have afforded; and the ne-
ceffities of the ftate requiring a greater fum (160,000 l.) than ever had
་
73 Forft, on Cuſtoms, introd. p. 31. 74 Rot. Parl. 2 Ric. II. Num. 14. vol. iii. p. 57.
4
been
80
HISTORY OF THE PUBLIC REVENUE
Rebellion.
Exactions.
been formerly demanded from an Engliſh parliament, the rich became
defirous of throwing a part of fo heavy a load upon their poorer
neighbours; and it was at laft determined to levy a poll tax of twelve-
pence upon every perſon in the kingdom, of whatever condition or
eſtate, above fifteen years of age, mere beggars only excepted. Some
indulgence the indigent were to receive; but it could not be very con-
fiderable, as no perfon was to be charged above fixty groats, including
the tax he was to pay both for himſelf and family "
This mode of taxation had ever been odious to the English nation;
and, in the preſent inftance, it was fo directly oppofite to the principles
on which the ſubfidy above-mentioned had been founded, that it foon
excited the greateſt diſcontent. By the former tax, the great men of
the kingdom were affeffed in a fum which bore ſome proportion to their
property and wealth. But by the new mode, the greateſt peer of the
realm, however opulent, could not be charged with more than fixty groats
or twenty fhillings. Nor was this all; for the tax, inftead of being
collected by the King's officers, was farmed out to contractors in the
different counties, who levied it with equal infolence and feverity. The
patience of the people was at laſt exhaufted. They flew to arms; and
having chofen Tyler, Straw, and others for their leaders, they ſeemed
determined to bring about a total revolution in the country. The
infurrection, however, was fortunately quelled when it was leaft ex-
pected, and without much bloodſhed; and the king, though at that
time only fixteen years of age, acted on the occafion with fuch judg-
ment and ſpirit, that he impreffed his fubjects with the moſt favour-
able hopes of the future fplendour and happineſs of his reign". Nor
were their fond expectations diminiſhed, when, upon taking the go-
vernment into his own hands, he voluntarily remitted fome fubfidies
which had been granted to him; an event of which the Engliſh hiſtory
does not furniſh another example for many years after ".
The miferable end of this monarch's reign is well known; and
though more tyrannical fovereigns have fat upon the throne of England,
and have died in peace, yet it can hardly be difputed, that his fubjects
had ſufficient grounds to be diffatisfied with his conduct. He pro-
75 Rot. Parl. 4 Ric. II. num. 15. vol. iii. p. 90.
25 Hume's Hift. vol. iii. p. 10.
77 Ditto, p. 24.
!
cured
OF THE BRITISH EMPIRE.
81
cured, from a garbled parliament, the fubfidy on wool, leather and
woolfells exported, for life-the firſt inftance of fuch a grant, and
which was confidered as a baneful precedent for the future. He
extorted confiderable fums from his wealthieft fubjects, by way of
loan, which it was dangerous for them to refuſe, and ruinous to pay;
and under the pretence, that ſeveral counties had engaged in rebellious
practices (notwithſtanding a general pardon had been granted by act
of parliament), he threatened them with the fevereſt marks of his dif-
pleaſure, if they did not compound for their offences: and they were
actually compelled to fign blank bonds, in thoſe days called ragmen,
which the king filled up in any manner, and with any fum he thought
proper 78.
After all, the money which he obtained, either from
the bounty of his people, or by means of extortion, inſtead of being
laid out for the glory and advantage of his kingdom, was either thrown
away upon the minions of his court, or wafted in maintaining an
enormous houſehold, amounting, it is faid, to 10,000 perfons; of
whom 300 were employed in the very kitchens of the palace. But,
notwithſtanding all theſe circumftances, he would probably have con-
tinued upon the throne of England, had he not found in his kinſman,
Henry duke of Lancaſter, an enemy, whoſe ambition nothing but a
crown could gratify, and whoſe character, ſpirit, and abilities were fully
equal to any attempt, however bold, defperate, or flagitious.
Under the government of the Saxon line, or houſe of Plantagenet, Conclufion.
no inconfiderable progrefs was made in the knowledge of finance.
The neceffity of converting military fervices into pecuniary aids was
difcovered. Taxes began to be laid upon perfonal as well as real
property. The cuſtoms came to be accounted a confiderable and important
branch of the revenue, and the clergy were compelled to furniſh contri-
butions for the public fervice; nor was the fanction of the pope any
longer accounted neceffary for that purpoſe. New modes of taxation
alſo were attempted; and though fome of them were ill contrived and
unproductive, yet it proves the ſtrong anxiety of thoſe who were en-
truſted with the government of the country, to provide an effective
revenue, adequate to the fupport of that high and diſtinguiſhed rank,
which England was entitled to hold among the kingdoms of Europe.
;s Carte, vol. ii. p. 628. Mort. vol. i. p. 657.
M
CHAP.
82
HISTORY OF THE PUBLIC REVENUE
A
CHA P. VII.
Of the Revenue of England during the Government of the
Houfes of Lancaster and York.
'HE æra, to the inveſtigation of which this chapter is dedicated, con-
Tfidering its duration, is the moft calamitous period of the English
hiſtory, from the Norman invafion. It includes a ſpace of about
eighty-fix years, the greater part of which was ſpent in a bloody and
deſtructive conteft for the government of the country, between the two
rival houſes of Lancaſter and of York; both of whom, at different
periods, were fucceſsful. The firſt monarch of the Houſe of Lancaſter,
(for that family came earlieft to the throne) paved his way to it, by
forcibly depoſing his legal fovereign; and endeavoured to render his
crown fecure, by the murder of that unfortunate prince; but in vain;
for his government was perpetually diſturbed by a feries of dangerous
infurrections. His fon, Henry V. though a fuccefsful warrior, and
though it is probable, had his life been prolonged, that he muſt have
fucceeded in his views of fubjugating France, nevertheleſs wafted the
blood and treaſure of the nation, in purfuit of an enterprife, which, if
fucceſsful, might have proved deftructive to the liberties and to the
national importance of England as an independent kingdom. With
reſpect to the remaining monarchs of the two rival houſes, their hiſtory
is nothing but a conftant ſeries of battles, bloodshed, crimes, horror,
anarchy, and confuſion, ſcarcely to be paralleled in hiſtory.
Events, however, which at firſt fight appear fo ruinous and deſtructive,
were, notwithſtanding, attended with confequences in ſome reſpects bene-
ficial. The conteft for the crown, between rivals of the fame rank and
pretenfions, rendered it neceffary for both to court the favour of the
people, and, when poffeffed of the government, to pay every poffible
attention to their liberties and rights. During the whole period, no
attempts were made to infringe upon the articles of Magna Charta, or
to impoſe any tax without the fanction of Parliament; whereas, it is
3
probable,
OF THE BRITISH EMPIRE.
83
probable, that a race of monarchs, whofe title to the crown was
unquestionable, and who had no competitors for the throne, might have
eafily ftifled the liberties of this country in their earlieſt infancy, before
they had arrived at that maturity and vigour, which they have fince for-
tunately acquired.
*
In the courſe of this bloody conteft, it is impoffible to learn, without
regret, that the greateſt and nobleft families of England, whofe gallant
actions we read of in the earlier part of our hiftory, with equal pleafure
and refpect, were almoft totally annihilated: but, perhaps, this circum-
ſtance alfo materially contributed to produce that free and popular form
of government which we now enjoy. For, if the ancient nobles had
continued in their original affluence and ſplendour, in vain would the
commons have endeavoured to raiſe themſelves to any degree of import-
ance in the State. They muft have funk under the fuperior luftre and
opulence of the peerage, and could never have attained that indepen-
dent power, and that extenfive weight and influence which they at pre-
fent poffefs, and which has fo much contributed to the profperity and
happineſs of the country.
་་
The union of France and England, under the government of one
fovereign, had it been effected by the efforts of Henry V., or his ſucceſ-
fors, would have proved a fatal circumftance to this iſland.
The one
kingdom muſt have become a dependent province on the other; and it
is hardly poffible to fuppofe, that England would not have been rendered
fubfervient to a country, in which, both from confiderations of policy and
of pleaſure, the fovereign would naturally have refided. That event, the
conteſt between the two rival houfes probably prevented; and although
the faying of Abbot Suger, miniſter to Lewis le Gros King of France,
has, as yet, been verified, "that it was neither agreeable to nature or
reaſon, that the French ſhould be fubject to the English, or the Eng-
"liſh to the French" yet fuch was the hold which England at that time
had over fome of the moſt fertile provinces of France, and fo martial
I
By the treaty of marriage between Elizabeth and the Duke of Anjou, if their deſcend-
ants fucceeded to the crowns of France and England; the fovereign was obliged to refide
in England, only eight months every two years. Mort. vol. ii. p. 397.
2
Lytt. Hift. vol. i. p. 123.
1
M 2
were
+
84
HISTORY OF THE PUBLIC REVENUE
*
Cuftoms.
were the English during the whole period which is now under our
confideration, that a junction of the two kingdoms would probably have
been effected, if the warlike ſpirit of the Engliſh had not been wafted in
domeſtic quarrels, and if their diffentions had not furniſhed the French
with an eaſy opportunity, not only of conquering the poffeffions of Eng-
land on the continent, but alſo of fecuring the affection and fidelity of
the inhabitants, before the Engliſh were able to attempt the recovery of
the provinces they had loft.
Perhaps, alſo, the inutility and uncertainty of foreign conquefts, and
the miſeries attending domeftic wars, fo vifible during this æra, might
firſt give the Engliſh that attachment to commerce, and thoſe habits of
induſtry for which the nation has been fo long confpicuous. At leaſt,
by ſuch ſpeculations as thefe, the mind is furniſhed with fome confola-
tion, amidſt the detail of the various calamities to which England was
then fubject, whether they are furveyed as delineated in the philofophic
pages
of Hume, or as drawn from the life, in bold and unfading colours,
by the maſterly pencil of Shakſpeare.
Revenue of HENRY IV.
}
This monarch was the fon of John of Gaunt or Ghent, Duke of
Lancaſter, fourth fon of Edward III.; and he would have enjoyed an
hereditary title to the crown, after the death of Richard, if Lionel,
Duke of Clarence, Edward's third fon, had not left defcendants behind
him, whom the Houſe of York lineally reprefented. But no one dared
to mention the pretenfions of that family, though their right had been
folemnly recogniſed by parliament: for Henry, at that time, enjoyed
the favour of the nobles, and of the people, and the command of a for-
midable army. He mounted the throne, therefore, without oppofition,
and filled the vacancy, which his own intrigues had .effected, in a man-
ner that proved him not unworthy of the crown, had it not been ob-
tained by violence and ufurpation.
{
During this, as well as the former reign, the revenue of the Cuſtoms
became more and more productive, in confequence both of an increaſe
of trade, and of an addition to the duties. Richard had received a grant
of
OF THE BRITISH EMPIRE.
85
of three fhillings upon every tun of wine, and one fhilling upon goods'.
But Henry did not venture to demand more than a tunnage of two
fhillings, and a poundage, firft at feven-pence, and afterwards at eight-
pence, until the fourth year of his reign, when the duty of three fhil-
lings per tun, and one fhilling per pound, was again revived: a circum-
ftance with which the king was fo much delighted, that he gave both
lords and commons a magnificent entertainment upon the occafion*.
Special care, however, was taken, not to give this monarch a grant of
the cuſtoms for life; and one year was fuffered to elapfe without any
grant of them at all, in order to prove that this branch of the revenue
was not the property of the crown, but proceeded entirely from the
good-will and bounty of the people.
•
A tax upon places and penfions, and grants from the crown, was alfo Place tax.
impoſed in this monarch's reign. It was enacted by the famous Par-
liamentum indoctum, or lack-learning parliament, into which no indi-
vidual converfant in the law was admitted. By the ftatute, the king Anno 1404-
was empowered to take one year's profits of all annuities, fees, or wages,
granted to any perſon fince the reign of Edward III. (certain miniſters
of ſtate, the judges, and other officers in the courts of juſtice, only ex-
cepted), together with all revenues alienated from the crown, unleſs ei-
ther granted to the royal family, or confirmed by act of parliament:
and all patents of penſions, or annuities for life, fince the 40 Edward III.,
were ordered to be brought in and examined, that fuch as were unde-
fervedly beſtowed might be revoked'.
In the courſe of Henry's reign, we have ſeveral inftances of the tax Subfidies,
known by the name of Subfidy. It was properly a tax on income, whe-
ther it aroſe from real or perfonal property: and, as it comprehended,
in one grant, the principal modes formerly practifed of raifing a re-
venue, namely, by fcutage and by talliage, it was both more equal and
more productive.
The curioſity of our hiftorians has been not a little awakened, to Singular fub
fidy.
know the particulars of an impoſition of fo fingular and of fo danger-
ous a nature, that it was granted upon this condition alone, that it
3 Gilb. p. 280. Forft. p. 38. N. B. Theſe authors differ as to the years.
* Stevens, p. 135.
5 Rot. Parl. 6. Henry IV. num. 4. Vol. iii. p. 547-
fhould
86
HISTORY OF THE PUBLIC REVENUE
!
Attack on the
church.
ſhould not be made a precedent of for the future. Nay, according to
Walfingham, it was to be kept concealed from pofterity; no evidence of
it was to be preferved in the treaſury or in-the exchequer; and every
writing or memorial regarding it, was to be burnt. This tax is farther
reprefented to have been, "A monftrous birth fhewn to the world, to
"let it know what could be done, and concealed by hiftorians, that the
"world might not know what may not, or ought not to be done"." To
diſcover this hideous monfter, the public records were carefully exa-
mined by a judicious hiftorian; who informs us, that this unprecedented
tax was nothing but a fubfidy upon real and perſonal property, amount-
ing to twenty fhillings upon every knight's-fee: twenty pence upon
every twenty pounds a year in lands; and one fhilling in the pound.
upon money and goods. And, with regard to the claufe prohibiting it
to be made an example of for the future, it was not unuſual when any
important grant was made at that time.
The doctrines of Wickliffe began in the reign of this monarch, as
they had done in the time of his predeceffor Richard, to ſpread a ſpirit
of reformation in the church, not only in England, but on the continent;
and, as this ſpirit gave rife to a plan for enriching the crown, by the plun-
der of the church, which had nearly taken effect in the reign of Henry,
it may not be improper to give a connected view, of the origin and pro-
grefs of an event, fo fingular and important.
The clergy, by their own proud and haughty behaviour, gave rife to
the idea. It was firft openly declared in the year 1385, when Rich-
ard II., having affembled a parliament in order to procure a fupply,
found the laity willing to grant one-fifteenth and a half, provided one-
tenth and a half were given by the clergy. This conditional offer they
thought proper to refent; and Courtney, Archbishop of Canterbury, de-
clared, "That the clergy were free, and were only to be taxed by them-
"felves; and that he would fooner loſe his head, than fuffer the holy
"church of England to be reduced under the fervitude of laymen."
So haughty an anfwer roufed the indignation and refentment not only
6 Hift. Ang. p. 369, 370.
7 Nat. Bacon's difcourfes, part ii. c. 13, p. 60. Month. Rev. vol. xiv. p. 43.
8 See Carte's Hift. vol. i. p. 666. Parl. Hift. vol. ii. p. 82. It appears from Rot.
Parl. 5 Henry I. num. 33. vol. iii. p. 529, that a fubfidy was granted.
of
OF THE BRITISH EMPIRE,
87
!
of the commons, but of many of the peers, who affirmed, that it was ne-
ceffary to humble their pride, by ſeizing the temporalties of the clergy,
and that nothing would render them uſeful to the State but reducing them
to poverty. The king, however, interpofed: he declared himſelf the
champion of the church, and, by his influence, the project, for that time,
was totally defeated'.
The next attempt originated, not in parliament, but in a military
council. It is well known, that Henry IV. had obtained an important
victory at Shrewſbury, in which the gallant Percy, known by the name
of Hotſpur, and all the other leaders of that dangerous infurrection,
were either killed or taken priſoners. Henry's finances were exhaufted
by the expences he had incurred in quelling this revolt; and he was to-
tally unable to provide for the maintenance of ſome troops neceſſary to
ſtop the progreſs of the Welſh, who had made an incurfion into Eng-
land. In this emergency, his principal officers propoſed that he ſhould
feize the money, and the valuable equipages of thofe prelates who ſerved
in the expedition. And the propoſal would probably have been agreed
to, if Arundel, who was then Archbishop of Canterbury, and a man of
ſpirit and reſolution, had not boldly declared, "that they fhould win
"with blood whatever they got from him:" and the times were too
critical to quarrel with ſo high-ſpirited and powerful a ſubject *°.
But the moſt dangerous attack was made by the Parliamentum indoc-
tum. It was the ſecond parliament that had been affembled that year,
and it was held under the pretence that the preceding parliament had not
been fufficiently liberal in its grants. The commons were ftung by the
reproach, and reprefented to the king that his neceffities might be pro-
vided for without burthening the laity, by feizing the temporalties of the
churchmen, and applying them to the public uſe: they added, that the
riches of the clergy made them inattentive to their duty, and that, di-
miniſhing their exorbitant revenues, would prove equally uſeful both to
the church and State. But the nation was not yet ripe for fo important
an innovation; and the clergy were headed by the ſame prelate who had
formerly withſtood the commons, and who was determined not to fuffer
the rights of the church to be eaſily infringed".
9 Burn's Eccles. Law, voce Monafteries. Stevens, p. 120.
1 Mort. vol. i. p. 675.
Parl. Hift. vol. ii. p. 88.
In
88
HISTORY OF THE PUBLIC REVENUE
Houſehold.
In the courſe of this difpute, it was ftated, that the church poffeffed
18,400 ploughs of land, and that its revenue amounted to 485,000
marks a year; and the commons propofed, in a parliament held at
Weſtminſter, anno 1410, to divide this property among fifteen new
earls, fifteen hundred knights, fix thouſand efquires, and a hundred
hoſpitals, fubject to 20,000l. a year, for the ufe .of the king". Per-
haps the inconfiderable portion which it was intended the crown
ſhould receive, was the principal obftacle to its fuccefs.
X3
But the dangers with which the church was environed, were not yet
brought to a crifis: for, in the fecond year of the reign of Henry V.,
the fame project was renewed: the commons again propoſed to ſeize all
the revenues of the church, and to appropriate them to the ufe of the
crown. The clergy, however, eſcaped, by giving up all the alien
priories, and by diverting the attention of the king and of the people,
from the internal government of the country, to thoſe plans of conqueſt
and of empire which were afterwards purfued. Thus the wealth of
the clergy was referved for the plunder of Henry VIII., and proved a
material inducement with that monarch to bring about the reformation,
or, at leaſt, to put an end to the authority of the pope in England, and
to make a confiderable reduction in the opulence of the church.
The expenſive houſehold which Richard had maintained, was a cir-
cumſtance peculiarly obnoxious to his ſubjects; and indeed had princi-
pally given rife to the oppreffions of his reign. Henry was determined
to give, on this head, every poffible fatisfaction: and, accordingly, he
at firſt reſtricted the eſtabliſhment of his houſehold to 10,000l. But, in
Anno 1404. the eleventh year of his reign, he found it neceffary to increaſe it to
16,000l. per annum¹.
Jealouſy of
the parlia-
ment.
The jealoufy which the commons entertained of the crown at this
time, in regard to its revenue, is worthy of particular attention. In two
different inftances, they allowed Henry only 6000l. for his own uſe,
appropriated the remainder of their grant to public fervices, and ap-
pointed their own treaſurers, who were anſwerable for the money they
received, and were obliged to give in an account of their diſburſe-
2
1½ Hume, vol. iii. p. 81. Parl. Hift. vol. ii. p. 114.
14
13 Hume, vol. iii. p. 91. Parl. Hift. vol. ii.p. 136. Noy's Rights of the Crown, p. 5.
ments
OF THE
89
BRITISH EMPIRE.
ments to parliament: and when Henry propofed, anno 1410, that a
grant ſhould be given him of a tenth from the clergy, and a fifteenth
from the laity, for his life, under the pretence of faving them the trou-
ble of meeting annually for that purpoſe, the artful and infidious pro-
pofal was indignantly rejected".
his revenue.
Henry IV.'s income, in the twelfth year of his reign, is faid to have Amount of
amounted only to the fum of 48,000l. per annum, including the fubfidy
of wool, and the tenths of the clergy. But this is a point which
it will be proper to difcufs in a fubfequent part of this chapter.
HENRY
V.
It is natural to indulge a confiderable degree of curiofity, to afcertain
what reſources a monarch was poffeffed of, who attempted the conqueſt
of France, and had almoſt accompliſhed an enterpriſe of ſuch difficulty
and moment: for, although many circumftances had taken place favour-
ably to his views, and he had reaped very important advantages from
diffentions among the French, and from his alliance with the royal
family, yet he could never have accompliſhed what he did perform, with-
out funds of great pecuniary value: and as hiftorians have rather de-
preciated the extent of his revenue, it is the more neceffary to confider,
firſt, what temporary grants he received from parliament; and fecondly,
what was the probable amount of his annual income.
Hume, who ſeems to be defirous of increaſing the admiration which Grants.
his readers muft naturally entertain of Henry's atchievements, by
placing his finances in the loweſt and moſt contemptible point of view,
has ſtated that all the extraordinary fupplies, granted by parliament
during the courſe of Henry's reign, amounted only to feven-tenths and
fifteenths (about 203,000l.); and he mentions, at the fame time, that
Henry's army amounted to fix thouſand horfe, whofe pay was two
fhillings a day; and twenty-four thouſand archers, who received fix-
pence per day each". The expences of fuch an army, therefore, muſt
have
N
Is Mort. vol. i. p. 706. 16 Noy's Rights of the Crown, p. 4. Stevens, p. 140.
17 Hift. vol. iii. p. 120. But it appears, from the authority quoted, Parl. Hift. vol. ii.
p. 174, and 175, that the parliamentary grants amounted to nine-tenths and a third, and
{
nine-
90
HISTORY OF THE PUBLIC REVENUE
Amount of
his revenue.
have amounted to 430,000l. per annum; and confequently, all Henry's
grants, joined together, would have been exhaufted in lefs than fix
months. But, in the firft place, the grants given to Henry were
greater than this hiſtorian ſtates; and, in addition to them, he received
confiderable affiftance from the clergy, and the entire revenues of 110
monaſteries in England, dependent on certain abbies in Normandy,
which the Engliſh clergy had facrificed for the fecurity of their own
poffeffions.
There is alfo reafon to believe, that hiftorians have fallen into an
error with regard to Henry's annual income, which is faid to have
amounted only to 55,754% 10s. 10d."; " and with this weak fupply
"(according to Voltaire), he undertook the conqueft of France."
19
The record on which this idea of Henry's revenue is founded, may
be ſeen in Rymer "9. It is not a little defective; but its omiffions may
be fupplied, from the full and particular account of the income of the
crown, which was laid before parliament anno 1433". From a com-
pariſon of the two records the following ſtatement is drawn up.
Amount of HENRY V.'s annual Income.
1. To the parva cuftuma on wool
£ 3,976
I 2
:
2. To the magna cuftuma on ditto
3. To the parva cuftuma on goods
26,035 18 8/
2,438 9 1 I
4. To the fubfidy of tunnage and poundage
5. To the cafual revenue, arifing from efcheats, the
court of wards, &c.
8,237 10 91
£40,687 199
15,066 11 1
Total, according to Rymer,
£ 55,754 10 10
nine-fifteenths and a third, which would, at leaſt, amount to 270,000 l.: nay, it is faid, by
an old hiſtorian, that 300,000 marks, or 200,000l. fterling, were given by the clergy and
laity, to enable the king to begin his enterpriſe. Parl. Hift. vol. ii. p. 147.
18 Hume, vol. iii. p. 120. Volt. Gen. Hift.
vol. ii. part iii. c. 8. Mort. vol. ii.
p. 192. Noy's Rights of the Crown, p. 5 and 6. Davenant, vol. iii. p. 100.
19 Fœdera, vol. x. p. 113.
29 Rot. Parl. vol. iv. p. 433.
To
OF THE BRITISH EMPIRE.
9.1
Brought over
To be added 21 :
23
1. Fee farm rents
£ 3612 11 3
£ 55,754 10 10%
2. Alien priories
3. Dutchy of Cornwall
4. South Wales
5. North Wales
6. County of Cheſter
7. Manor of Shotſwick
8. Ireland
9. Dutchy of Lancaſter
10. Dutchy of Aquitaine
II. Profits of Calais
12. Revenue of Windfor
277 5 0
2788 13 3
1139 13 11
1097 17 3
764 10 2
33 6 8
2339 18 6
4952 13 3
808 2 2
HIG
2866
207 18 5
I O
20,888 10 10
£ 76,643 84
!
Many of thefe articles muſt have yielded more in the reign of
Henry V. For it appears, that in his fon's minority, the management
of revenue, and of public affairs in general, was miferably neglected 22;
and, on the whole, it is probable, that this monarch's income might
amount to about 80,000l. per annum, equal to 160,000 pound weight
21 Theſe articles were liable to various deductions in the reign of Henry VI. as fpe-
cified in the record; but it is probable that ſuch encumbrances did not exiſt in the reign
of Henry V.
22 The following articles, in the account of Henry VI.'s revenue, are fuppofed to in-
clude thoſe which are called caſual, in the record. which Rymer has publiſhed.
The farms of counties, green wax, &c.
Efcheats
Rents of lands in wardship
Rents of the Dutchy of Norfolk
Other eftates in the hands of the crown
The Hanaper office, and a variety of other articles
ท
£ 5,676 10 8
500 o o
1,604 19 11
1,333 6 8
983 7 5
3,237 15 2
£ 13,335 19 10
As the cuſtoms had fallen in their produce about 10,000 l. in the reign of Henry VI.
it is not to be wondered at, that theſe caſual revenues ſhould alſo diminiſh in their
amount.
N 2
of
'
92
HISTORY OF THE PUBLIC REVENUE
Cuſtoms.
Grants.
Cuftoms,
of filver, which, by the cheapneſs of provifions at that time, would be
equivalent to 500,000l. of our preſent ſpecie.
23
It is faid, that Henry V. was the firſt monarch, who had the ſub-
fidies on the exportation of wool and leather, and the duties of tun-
nage and poundage, joined together, granted him for life "3. But
Forſter remarks, though the fact is true, yet that Coke, and other
eminent lawyers, are miſtaken in the roll, which is commonly adduced
in proof of that affertion 24
HENRY
་
VI.
There is hardly any inftance in the hiftory of England, or indeed
of any ſtate, the government of which has not acquired an uncommon
degree of firmneſs and ſtability, of a prince's fucceeding to the throne in
his infancy, in which his reign did not prove the fource of infinite miſery
both to himſelf and his fubjects. It is therefore the lefs furpriſing, that
though Henry VI. was born with the moft fplendid profpects of any
prince in Europe, they ſhould all be blafted by the immaturity of his
age. He was fcarcely nine months old when he loft his father; and
though he was crowned the fovereign both of France and England, he
lived to ſee himſelf without a crown, a fubject, or a home.
、་
►
The beginning of this monarch's reign was not burdenfome to his
English fubjects. It is faid, that only one fubfidy was granted during
the courſe of feven years, from 1437 to 1444, and that the lofs of
France was greatly owing to the fcantineſs of the fupplies ". The par-
liament was probably apprehenfive, that England might be made fub-
fervient to France, if the conqueft of that country was completed, and
perhaps might alfo be defirous of rendering themſelves popular by
their public frugality.
After fome temporary grants of tunnage and poundage, thefe duties
were at laft given for Henry's life. They were continued at the
fame rate as formerly to natives, with this diftinction in their favour,
23 Hume, vol. iii. p. III.
24 Introd. p. 39. It is granted by 3 Hen. V. Rot. 5. Vol. iv. p. 63.
25 Hume, vol. iii. p. 167. Note [Y].
31 Hen. VI. An. 1454.
26
that
OF THE BRITISH EMPIRE.
93
"The
27 99
that aliens were to pay as much again as natural born fubjects:
"law juftly keeping (fays a writer upon that fubject) a watchful eye
over perſons that had not that fame kind of natural inftinct, if I may
"ſo ſay, to a country, which all fubjects are ſuppoſed to have
Several fubfidies, or pound rates, were granted to Henry, particular- Subfidies.
ly in the tenth, fourteenth, and twenty-feventh years of his reign. In
the latter fubfidy, there was a judicious gradation in the tax. For
every perfon poffeffed of only twenty fhillings per annum, and from
thence to twenty pounds, was charged but fix pence in the pound; but
from twenty to two hundred pounds yearly, one fhilling in the pound;
and all eſtates above two hundred pounds per annum, were to pay two
fhillings 28.
aliens.
During the whole courfe of this reign, not only ftrangers who oc- Poll-tax on
cafionally came for the purpoſes of trade, but alſo fuch as took up their
refidence in the country, were the objects of general odium; and the
confequence was, that poll taxes were laid upon them, from which the
natives of the country were exempted. This plan was firſt carried into
execution in the eighteenth year of Henry, when a tax was impoſed
on aliens, who were not denizens, of fixteen pence each, if they were
houſeholders; but if otherwiſe, only fix pence. The fame tax was
renewed in the twenty-feventh year, with an additional tax of fix
fhillings and eight pence on merchant ftrangers, and twenty pence on
each of their clerks ". But the heaviest duty took place in the thirty-firſt
year of his reign, when a poll-tax of two pounds each was laid upon
foreigners, not denizens, during the king's life; merchants who landed
in the realm, and who had refided there fix weeks, were charged twenty
fhillings; denizen houſeholders, ten marks, or 6 l. 13s. 4 d. each 30.
29
Henry, and his minifters alfo, found means to raiſe money from
foreigners by other meaſures befides parliamentary taxes. First, by
permitting James I. of Scotland to return to his own kingdom; and,
fecondly, by ranfoming the Duke of Orleans, who had then been
detained in captivity, ever fince the battle of Agincourt, and was at laſt
releaſed, upon paying 54,000 nobles, equal to 36,000l. fterling of our
money With regard to the king of Scotland, as he was not a
34 99
27 Forft. Introd. p. 40.
28 Rot. Parl. 28 Hen. VI. Num. 12. vol. v. p. 172.
29 Ibid. 27 Henry VI. Num. 14. vol. v. p. 144.
39 Ibid. 31 Henry VI. Num. 1o. p. 230.
31 Hume, vol. iii. p. 178.
priſoner
94
HISTORY OF THE PUBLIC REVENUE
Benevolence.
Amount.
prifoner of war, it was impoffible to demand a ranfom from him: but
40,000l. was exacted by way of equivalent for the entertainment he
had received in England; of which fum, it is probable that 10,000
marks remitted were in confequence of the ſecond article of the treaty,
and as much more abated by way of portion with a relation of Henry's,
to whom James was afterwards married. The remaining 40,000 marks
were exacted; and thus a prince who, in time of profound peace, was
driven into the port of a neighbour by diſtreſs of weather, was detained
in his dominions for many years, and after all was compelled to pay a
confiderable ſum of money for his maintenance, previouſly to his releaſe.
In the twentieth, or, according to fome authors, in the twenty-ſecond
year of his reign, the king required a benevolence for the purpofe of
defending Calais, at that time in imminent danger. Theſe contribu-
tions were originally accounted perfectly free and voluntary; they
were called liberalitas populi by Richard I. curialitas by fuch of his fuc-
ceffors as attempted to raiſe them; and proceeded according to Henry
the Fifth's confeffion, ex Spontanea voluntate, ac de jure vindicari non
poffunt. But the inftructions given by this monarch to his commif-
fioners for procuring the benevolence, contained a very different doc-
trine. It is there ftated, that by law he could compel all his fubjects,
at their own charges, to attend his wars; but that he was willing to ſpare
fuch as would contribute as much as two days perfonal fervice would
ſtand them in, according to their rank and quality. Thus he publicly
declared, that if they did not tax themfelves, money would be exacted
from them, by other means much leſs pleaſing ³.
33
32
There is extant in the rolls of parliament, a very particular account
of this monarch's revenue ", from which it appears, that the annual
produce, in confequence of the decreaſe of the cuſtoms, and mifinanage-
ment in the collection, had fallen to 64,9467. 16s. 4d.; and fuch were
the deductions from it, and the expences of government, that the
charges exceeded the receipts 35,000 l. per annum. Nay, it was after-
wards declared in parliament, that the income of the crown was re-
duced, by grants, penfions, and otherwife, to only 5000 l. 34.
32 Stevens, p. 157. Cotton, p. 177. Noy's Rights of the Crown, p. 48.
33 Rot. Parl. vol. iv. p. 433.
**Ibid. 28 Henry VI. Num: 53. vol. v. p. 183.
During
OF THE BRITISH EMPIRE.
}
During Henry's minority, the revenues of the crown had been Diftreffes.
greatly diminiſhed by the arts and negligence of thoſe who were in
power, and in confequence of the expences incurred in carrying on the
war againſt France, which were principally defrayed from the income
of the crown, the parliament furnishing very little affiftance. Nor
were matters much amended when the king took the government into
his own hands: for he fuffered himſelf to be defrauded by his miniſters,
who devoured the greateſt part of his revenues, and who, in the
words of an ancient record, gave away the rights, poffeffions, and
profits of the crown, in the manner of a spoil". Different fteps were
taken by parliament, and by his council, to improve the king's fitua-
tion. In the parliament held anno 1450, a full refumption was made,
of all the grants which had taken place fince the death of Henry V.
To prevent the king from wafting his revenues, his council advifed him
to convey to the archbishop of Canterbury, in truft, all the profits of
wards, marriages, relief, efcheat, and forfeitures, to defray the expences
of the houſehold 36 ; and in the twenty-ninth year of his reign, thoſe
expences were reduced by parliament to 12,000l. per annum; whereof
2000l. was paid out of the queen's jointure, or feparate eftate". His
debts, at the fame time, amounted to the enormous fum of 372,000 l. ;
towards the payment of which, the parliament was obliged to give ſome
affiftance; and his reign furniſhes one of the firft examples in the Eng-
liſh hiſtory, of a debt being contracted on that ſpecies of fecurity 38.
EDWARD IV.
This prince (the firſt of the houſe of York that aſcended the throne)
was at laſt fortunate enough to recover the rights of his family, after a
long, fevere, and bloody conteft. And, perhaps, it is the only ex-
ample in hiſtory, of one family driving another from the throne, who
had poffeffed it fixty years; after having been for that ſpace of time in
The duke of Suffolk, was accuſed
which had been left by his predeceffor,
35 See Noy's Rights of the Crown, p. 23.
by the Commons, of having embezzled 60,000l.
in the office of treaſurer. Rot. Parl. vol. v. p. 181.
36 Noy's Rights of the
Crown, p. 23.
37 Ibid. p. 16.
38 Hume, vol. iii. p. 215. See part ii. chap. iii. where it will appear, that the prac-
tice may be traced to a ftill more ancient period.
3
the
95
96
HISTORY OF THE PUBLIC REVENUE
Refumption.
the power of its rival, and having often ſwore allegiance to it. But, as
on the one hand, nothing could exceed the fimplicity and weakneſs of
Henry's character; fo on the other, Edward's valour, fpirit, and activity,
were fcarcely to be equalled.
The difgraceful poverty to which the crown had been reduced, ren-
dered a refumption of the crown lands a natural mode for Edward
to purſue, in order to increaſe his revenue; and, in fact, the plan
(which was infinuated by Edward himſelf, in a ſpeech from the
Anno 1648. throne) was readily agreed to by his parliament. Edward's domains
had been previouſly increaſed by the forfeited eftates of no lefs
a number than one hundred and forty of the principal nobility and
gentry of England, who had ſupported the houſe of Lancaſter. It is
probable, however, that what was ſeized from the adherents of that
family, he was often under the neceffity of beftowing on his own friends,
as a reward for their fervices and attachment.
Grants.
Six tenths, and as many fifteenths, with three quarters additional of
each, were obtained by this monarch from his parliament, together
with different ſpecific fums from the maintenance of a body of archers;
and a yearly ſubſidy upon foreigners, whether denizens or aliens. But
the fums which he received were very inadequate to the various ex-
pences he was put to, and which a young and gallant monarch, like
Edward, would naturally be inclined to incur ".
39
Benevolence, In the first year of his reign, he had received from the clergy a bene-
volence, or, in the words of the record, a voluntary fubfidy: but a
partial contribution of that nature was infufficient when he engaged in a
war with France; and accordingly, in the twelfth year of his reign,
he endeavoured to procure a general benevolence, or free gift; and
fending for all the wealthieſt perſons in his dominions, he laid his ne-
ceffities before them, and earneftly entreated their affiftance. This meaſure
is faid to have produced a very confiderable fum. Many contributed to
avoid being fuppofed parfimonious, and others, that they might not ſeem
difaffected, and confequently bring upon themſelves the king's dif
pleaſure and reſentment. Some did it out of affection to his perſon and
family, whilſt others could not refift the obliging manner in which
their aid was requested. A ludicrous incident, which took place with
40 Ibid. p. 161.
39 Stevens, p. 160 and 161.
regard
OF THE BRITISH EMPIRE.
97
regard to this benevolence, has been often related. A rich widow,
advanced in years, was perfonally applied to by Edward for her be-
nevolence. She was ſo much pleaſed with the manner in which
the requeſt was made, and the gracefulneſs of Edward's perfon,
who was ſuppoſed to be the handſomeſt man in his time, that ſhe im-
mediately anſwered, "By my troth, for thy lovely countenance, thou
ſhalt have even twenty pounds." The fum was ſo very confiderable,
that the king thought himſelf bound to give the old lady a kifs, in token
of his fatisfaction, who was fo much delighted with that unexpected
mark of the royal attention, that ſhe added twenty pounds to her
former donation 4*
'
41
7
France.
The confequence of Edward's expedition to the continent, was a Annuity from
peace with Lewis XI. by which that monarch became bound to pay
Edward 75,000 crowns (to indemnify him for the expences he had been
put to), and an annuity of 50,000 crowns, for their joint lives. It has
been much difputed, whether this annual payment ſhould be called a
tribute, or a penfion. The firft would imply the ſubjection of France
to this country, which it is impoffible to ſuppoſe could be really meant
by the agreement; and the name of penſion, would infer bounty on
the part of France, and dependance on the part of England, which
was equally abfurd and ridiculous. In the acquittances given for this
annuity, it is called cenfus: and, in fact, it was an infamous bargain,
which none but ſuch a king as Lewis would have agreed to, and which,
confidering Edward's mighty boafts and preparations, did him very
little credit 42.
This diſgraceful end of the expedition to France, had filled the nation Extortions.
with fo much diſcontent, that the king did not think proper to apply
to parliament for any pecuniary affiftance, and was reduced to the ne-
ceffity of having recourſe to other means for ſupplying his exchequer. It
is faid, that he adopted fome very oppreffive expedients for that purpoſe,
which the hiſtorians of this reign have not thought proper to communi-
But it is known, that thoſe whofe titles were in any reſpect
defective, which might be expected in confequence of fo much internal
confufion, were obliged to pay confiderable fums of money for a con-
firmation of their grants; and the church complained of the exorbitant
cate.
41 Parl. Hift. vol. ii. p. 364.
12
42 Hume, vol. iii. p. 257. Stevens, p. 163.
O
fines
98
HISTORY OF THE PUBLIC REVENUE
Merchandife.
Houſehold.
fines he demanded for the reftitution of temporalities, and of his
difpofing of the profits of fuch bishoprics as happened to become
vacant
45
43
Edward had twice folemnly pledged himſelf, firft, in the feventh,
and ſecondly, in the twelfth year of his reign, to live upon his own
revenues, and not to burden his people. Among the various plans
he purſued to preſerve that pledge inviolate, may be confidered his en-
gaging in commerce, and carrying on merchandiſe to a confiderable
extent *. Such a ſyſtem other ſovereigns have purſued; and a monarch
who has the abfolute government of his kingdom, and who, in confe-
quence thereof, can fecure a monopoly of any commodity he chufes to
deal in, may trade to advantage; but, in general, this circumſtance may
be confidered as the certain mark of an indigent prince, and of an op-
preffed and barbarous people.
During the whole of this reign, the expences of the king's houſehold
were a perpetual fource of complaint. Edward had promiſed to reſtrain
fuch charges within proper bounds 46. But the hofpitable manner in
which the kings of England lived at that time, rendered any material
reformation very difficult to be effected; and after all the promiſes
which he had made, of living upon his own income, parliament was
obliged to allow 11,000 l. per annum out of the cuſtoms, and other
public revenues of the kingdom, to affift him in defraying theſe
expences"
1
EDWARD V.
This unfortunate prince fucceeded his father, when only about twelve
years old; and though he has a place in the catalogue of our kings, it
can hardly be faid, that he actually reigned. The government of the
country, it is true, was carried on in his name, for the ſpace of about
two months; but, during that period, no parliament was held, nor did
any material tranfaction take place. His uncle, Richard duke of
43 Carte, vol. ii. p. 796.
*; Mort. vol. ii. p. 116.
44 Noy's Rights of the Crown, p. 13. 32, & 33.
Carte, vol. ii. p. 796.
46 Noy's Rights of the Crown, p. 13.
42 Rot. Parl. 22 Edward IV. Num. 2. vol. vi. p. 199.
Gloucefter,
OF THE BRITISH EMPIRE.
99
Glouceſter, employed the whole time in carrying on machinations for
his own aggrandifement; and being proclaimed king, vainly endea-
voured to fecure the power he had acquired, by the murder of this
helpleſs monarch, and of his brother the duke of York, the only males
of that family, who ſtood between him and the throne.
RICHARD
III.
A tyrant, who paves his way to the throne by deceit, treachery and
murder, cannot expect to enjoy much happineſs from the power which
he has acquired, and foon finds that he has immerſed himſelf in an
endleſs ſeries of crimes, for the poffeffion of very precarious and ſhort-
lived authority. Of this, Richard's reign, which continued for the
ſpace only of two years and two months, furniſhes us with a memorable
inftance; as it proves, that valour and ability, though united, are not
fufficient to preſerve a crown on the head of an ufurper.
benevolences
Richard's title to the crown, was grounded upon principles ſo contrary Abolition of
to the conſtitution of England, and fo fubverfive of every tie by which
both private and public focieties are linked together, that he feduloufly
endeavoured, by every popular art, to ingratiate himſelf with the people,
and with that view having affembled a parliament, he-procured an act to
aboliſh, for ever, that mode of exaction, called Benevolence, which had
not a little alarmed the public, on account of the illegality of the
practice, and the great extortion which it had occafioned "*.
48
The only grant which Richard received, during the fhort courfe of Grants.
his reign, was that of tunnage and poundage for life". Indeed the
cuſtoms had become fo important a branch of the revenue, that no
monarch, however frugal, or however anxious to acquire popularity,
could carry on the government without the additional income which they
afforded.
To Richard, it is probable may be afcribed the firſt attempt to eſtabliſh Pofts.
pofts in England. The plan was originally formed in the reign of his
48
43 See act 1 Rich, III. cap. 2. Yet this tyrant afterwards exacted a benevolence
himſelf. Parl. Hift. vol. ii. p. 410.
49 Rot. Parl. 1 Ric. III. vol. vi. p. 238.
0 2
*
brother
100
HISTORY OF THE PUBLIC REVENUE
Conclufion.
brother Edward, when ftages were placed at the diſtance of twenty miles
from each other, in order to procure Edward the earlieſt intelligence of
the events that paffed in the courfe of a war, which had ariſen with the
Scots. But Richard commanded in the expedition; and as it was a
project which feems more likely to have occurred to a man of his fa-
gacity and talents than to his brother, the merit of it ought probably
to be given to Richard, in whoſe reign the practice was extended over
the greater part of the kingdom". But his abilities and his valour were
equally fruitless. For after a fhort reign he was flain, fighting gal-
lantly at the decifive battle of Boſworth.
It is hardly neceffary to fum up, at the conclufion of this chapter, the
little progreſs that had been made in the ſcience of revenue during the
period to which it relates. It was a time too full of bloodfhed and
confuſion for any advancement whatever to take place in any branch of
the civil department. It is remarked, however, by a great hiſtorian, that
during the courſe of the contest between the two rival houſes, not an
inftance can be produced of any tax being impofed without the fanction
of parliament. That important law in the conftitution came thus to be
unalterably fixed, and could not afterwards be fafely broken through by
any monarch, however bold or daring, or whatever authority he might
have acquired in other matters".
CHA P. VIII.
Of the Revenue of England under the Government of the
Houſe of Tudor.
A
<
Variety of circumftances contributed to mark out the acceffion
of the Houſe of Tudor, as one of the moſt important æras in
the hiſtory of England. By the marriage of Henry VII. who was
so Mort. vol. ii. p. 127.
2
5 Hume, vol. iii. p. 122.
acknow
!
OF THE BRITISH EMPIRE.
101
acknowledged to be the reprefentative of the royal branch of Lan-
cafter to Elizabeth, daughter of Edward IV. and heirefs of the line
of York, the fatal conteft between the two houſes was brought to
a conclufion. The English, no longer diftracted by domeftic ftrife
and difcord, were enabled to turn their eyes towards the continent;
and inftead of confining themfelves to the narrow tranfactions of
their own ifland, began to take an active concern in the general
politics of Europe. Henry's encouragement of commerce, and his
plans for reducing the power and opulence of the ancient nobles,
and for exalting the Commons on their fall, proved the means of intro-
ducing internal changes of the greateſt and moſt effential importance.
The fame æra boafted the difcovery of the Eaſt and Weſt Indies, and
America, by which a total revolution was effected in the ideas of indi-
viduals, and in the views of ſtates. In a word, to this period may be
traced the feeds of that political ſyſtem, which has ever fince engaged
the attention, and occupied the thoughts of the principal powers of
Europe. Nor is it of lefs importance with reſpect to the general object
of this work; for, in proportion as the fcene became more extenfive,
greater pecuniary aids were required, than England had been ac-
cuſtomed to fupply; and new fources of revenue confequently became
neceffary.
Revenue of Henry VII.
L
It is remarked, by a great hiftorian, that in the reign of Henry VII.
the Engliſh were confiderable lofers by their ancient privilege, which
fecured them from all taxations, except fuch as were impofed by their
repreſentatives in parliament'. But the juftice of this obfervation there
is great reafon to doubt; for if Henry's avarice was ſuch, that it broke
through every reſtraint of law, to what height would it not probably
have been carried, had it been fubject to no limitation whatſoever?
His appetite, like his power, would have known no bounds, and not
only the rich, and thoſe who were immediately under the eye of
the fovereign and his agents, would have been pillaged, but every
Hume, vol. iii. p. 389.
creek
{
102
HISTORY OF THE PUBLIC REVENUE.
Cuſtoms.
Grants,
Northern in-
furrection.
creek would have been ranfacked, nor would the pooreft cottage in
the remoteft corner of the kingdom, have been exempted from his
rapacity.
Henry, like his predeceffor Richard, obtained a grant of tunnage
and poundage for life, and the cuſtoms became ever after, a permanent
branch of the royal income. The tunnage was at the rate of three
ſhillings to natives, and fix fhillings to merchant ftrangers; and the
poundage at the rate of a fhilling on all merchandiſe exported and im-
ported, tin only excepted, for which aliens were to pay two fhillings.
No alteration was made during Henry's reign, except an additional duty
of eighteen fhillings per butt laid upon malmſey, imported by merchant
ftrangers, in confequence of a tax impofed by the Venetians upon
the ſhipping or commodities of this country.
Henry received confiderable grants from the different parliaments he
affembled in the courfe of his reign; and he always found them ob-
fequious. Even the people paid any moderate tax, or any impofition
to which they had been formerly accuſtomed, or which the exigencies
of the ſtate required, without murmur or complaint. But the king was
fometimes fo exorbitant in his demands, and his parliaments were fo
prodigal of the public money, that it gave riſe to very dangerous in-
furrections.
A parliament had met, anno 1487, to furniſh the king with a fupply,
for the purpoſe of enabling him to give effectual affiftance to the dutchefs
of Brittany; and a grant (about the nature of which hiſtorians differ)
was accordingly voted. But the amount and weight of the fubfidy,
joined to the general harſhneſs and unpopularity of Henry's govern-
ment, excited ſuch diſcontent among the inhabitants of Yorkſhire and
Durham, that a rebellion fuddenly broke out. The earl of North-
umberland, who refuſed to countenance the infurrection, was flain
by the infurgents, and they feemed determined to carry on their daring
enterpriſe with the greateſt ardor and perfeverance: but an engage-
ment having taken place with the king's forces, in which they were
unfuccefsful, the rebellion was fuppreffed *.
2 Rot. Parl. 1 Hen. VII. vol. vi. p. 268.
3
7
Hen. VII. cap. 7.
• Bacon's Hift. of Henry VII. Edit. 1666, p. 40.
A more
1
OF THE BRITISH EMPIRE.
103
1
bellion.
A more ferious revolt took place in the year 1497. In a parliament Cornish re-
held that year, a ſubſidy amounting to 120,000l. and two fifteenths,
had been voted, under the pretence of fome incurfions of the Scots'. The
inhabitants of the Weft, who thought themſelves ſecure from
attack
any
on that quarter, and who confidered the northern barons as bound, by
the tenure of their poffeffions, to repel fuch inroads, murmured not a
little at the impofition, and the inhabitants of Cornwall, in particular,
flew to arms. Their numbers were fo formidable (amounting to above
16,000 men), that until they ventured to approach the capital, they
met with no refiftance. But in a battle fought near Blackheath, the
king's troops gained a complete victory; and 2000 of the infurgents
expiated their rebellion with their blood.
Though by an act in the reign of Richard III. Benevolences had been B.nevolence,
for ever aboliſhed, yet as he was deemed an ufurper, his laws, it was
afferted, were confequently invalid; and Henry ventured, on two
different occafions, to have recourfe to this unpopular mode of levying
money, though, according to Lord Bacon, he did not venture to revive
it, until he had procured the confent of parliament'. It is generally
ſuppoſed that archbishop Morton was the author of the propofal; and
a clauſe inferted in the inftructions given by him to the commiffioners
for levying the tax, which is commonly known by the name of
Morton's fork or crutch, has been often quoted. All deferiptions of
men (he told the commiffioners) muft contribute largely to the king's
fupply for fuch as are fparing must be enriched by their frugality,
and cannot therefore have any excufe; whilft thoſe who live in a fplendid
and hofpitable manner, ſhould pay in proportion to their expences.
The city
Confiderable fums of money were levied by theſe means.
of London alone paid 9,6887. 175. 4 d. and Henry was artful enough
to have the exaction legally authoriſed by an act of parliament, which
of
empowered him to demand any fum that had been offered, by way
compofition, for the Benevolence, and had not yet been paid. Anno
5 Bacon, p. 92.
7 Hift. of Henry VII. p. 58.
• Parl. Hift. vol. ii. p. 452..
Hume (vol. iii.. p. 350. note U.) ſuppoſes that Bacon:
was miſtaken, but the contrary appears from 11 Henry VII. cap. 10. intitled, A remedy
or means to levy a ſubſidy or benevolence before granted to the king.
8 See act 11 Henry VII. cap. 10.
1504,
3
{
104
HISTORY OF THE PUBLIC REVENUE
Feudal aids.
Merchandiſe.
Money from
foreigners.
1504, the fecond benevolence was levied, which, however, was not ſo
productive: for the people were diffatisfied with fuch repeated ex-
actions, and knew well that he had no occafion for money at that time,
being at peace with all his neighbours, and having his coffers full.
The parliament 1504, was principally affembled to raiſe an equi-
valent for two well-known feudal aids, which Henry was entitled to
demand, in confequence of the marriage of his eldeft daughter to
James IV. king of Scotland, and his eldeſt ſon Arthur (who died foon
after) having been made a knight. Theſe were the two greateſt and
moſt expenſive folemnities to which feudal lords were liable, when that
fyftem was at its height; and hence, by an ancient cuſtom, their vaffals
were bound to furniſh them with fome pecuniary affiftance, though, in
ftrict propriety, it ought never to exceed the real charges they were put
to. But Henry was refolved to take advantage of any pretence to fill
his exchequer, and therefore obtained from parliament 31,006/. 4s. 7d.
as an equivalent for thefe aids; and this fum., inſtead of being furniſhed
by the immediate vaffals of the crown, who alone were legally liable,
was levied upon the whole community, whether poffeffed of perſonal or
of real property, and was thus rendered particularly obnoxious ".
Henry, who thought no gain, however inconfiderable, beneath his
notice, made ſome profit alſo by letting out ſhips for hire, and even by
lending money, upon intereft, to merchants, whofe ftocks were not ade-
quate to the enterpriſes they had in view ". Nay, fo ftrong was his defire to
promote the commerce of his fubjects, that he is ſaid to have lent money
without intereft when it was really neceſſary
12
Among the other means which this monarch made uſe of to increaſe
his wealth, may be included the fums of money which he drew from
foreign nations; the great object of the French, at that time, was the
acquifition of the province of Brittany; and it was at laſt effected,
greatly owing to Henry's avarice and neglect. For the dutchefs of
Brittany, unfupported by the king of England, was compelled, how-
9 Hume, vol. iii. p. 389. 10 See Rot. Parl. 19 Hen. VII. Num. 11. vol. vi. p. 532.
In p. 535, there is a particular account of thoſe who were to pay thefe aids in each town
and county.
Noy's Rights of the Crown, p. 176.
12 Hume, vol. iii. p. 401.
ever,
OF THE BRITISH EMPIRE.
105
ever reluctantly, to marry Charles VIII. of France, to whom the
had an averfion; and thus her dominions were again annexed to
that powerful monarchy. Henry was defirous of receiving, at
leaſt, fome conſolation by the money which the king of France would
pay to ſecure ſo valuable a poffeffion; and he actually obtained
745,000 crowns, equal to 186,450 l. fterling, in lieu of certain claims
he had boldly urged, though they were far from being well founded”.
Two hundred thouſand ducats were alfo given by Ferdinand king of
Spain, with his daughter Catherine, married firſt to Arthur, the king
of England's eldeſt fon, and after his death, to Henry his fecond.
The king's principal inducement to celebrate the fecond marriage (an
event productive of infinite mifery both to his pofterity, and to his fub-
jects), was, to avoid refunding the confiderable portion he had received
from Ferdinand.
Henry renewed the old mode of extorting money, by compelling per- Extortions,
fons poffeffed of forty pounds a year in land, either to receive knighthood,
or to compound in its ftead. And the rights which he enjoyed as the
feudal lord, and fuperior of the kingdom, proved, under his govern-
ment, an endleſs fource of exaction, to which every proprietor of land
was expofed. But in the latter part of his reign, a general fyftem of
oppreffion was not only begun, but refolutely perfevered in. Every
penal law, however ancient, or however injurious to the public intereft,
was rigorously enforced; and Empfon and Dudley, two able, but ra-
pacious judges, employed by Henry, as minifters to fleece the people,
thought no expedient that yielded money, however bold, mean, or
fraudulent, too infamous to be pursued. In the ftrong words of Bacon,
"they converted law and justice, into wormwood and rapine"."
As Henry received more money, and ſpent lefs than any of his pre- Treaſure.
deceffors on the throne of England, it is natural to expect, that he muſt
have left him behind a very confiderable treaſure; and in fact, it amounted
to 1,800,000l. equal to 2,750,000l.of modern money. Indeed, confider-
ing the increaſed price of commodities fince that time, and the great
augmentation of fpecie, this fum was equivalent to, at leaſt, eight millions"
3 See Parl. Hift. vol. ii. p. 447·
25,000 crowns.
He alſo received an annual tribute, or penfion, of
14 Hift. of Hen. VII. p. 119.
7
*s Bacon, p. 132. Hume, vol. iii. p. 389.
P
at
1
106
HISTORY OF THE PUBLIC REVENUE
Remorse.
1
at prefent. Some authors have magnified his treaſure to four millions
and a half in bullion, beſides plate and jewels "; but that calculation
is totally incredible.
Henry found, however, that his immenfe treafures could. not ad-
miniſter to him, either confolation or affiftance, in the hour of fickneſs,
and on the bed of death. His arts, and his extortions, then appeared in
their real colours. All the means that could be deviſed, to allay the
terrors of a guilty confcience, were tried in vain; and yet his contrition
was either fo weak, or his avarice ftill fo predominant, that he could
not be prevailed upon, during his own life, to make any reparation to
thoſe whom he had injured; and his fon, notwithſtanding the
ſtrict injunctions which he received, was equally loath to part with
any ſhare of the plunder that had been amaffed. Empfon and Dudley,
indeed, the inftruments of his father's oppreffion, were publickly exe-
cuted to gratify the people. But that was a poor recompence for the
many exactions to which the nation had been fubjected, in the courſe
of their adminiſtration ».
HENRY
}
VIII.
Whilſt the hiſtory of the reign of Henry VIII. remains unexpunged
from the annals of this country, it is impoffible for the people of Eng-
land, to undervalue the happineſs and fecurity, which neceffarily refults,
from a free conftitution. They may perceive, by a review of his im-
perious and arbitrary fway, to what miferies they would have been
fubject, had the fame tyrannical fyftem been continued; and they may
thence learn to encounter any danger, however great, in order to
preferve that limited form of government which ſhields them from a
thouſand oppreffions, and from which fo many important advantages
are derived. In particular, they will find, from Henry's hiſtory,
that abfolute governments are neceffarily accompanied with the moſt
intolerable financial exactions, and that the wealth of the people is often
wantonly facrificed, to gratify the paffions of the fovereign, or the
caprices of his minifters.
16 Restauranda, by Fabian Philips, p. 24, who ſays, that Lord Saliſbury ſpecified that
fum to king James. See alfo Stevens, p. 171.
17 Hume, vol. iii. p. 411.
As
3
OF THE BRITISH EMPIRE.
107
"
As Henry had fo great a treaſure left him by his father, he had no
immediate occafion to apply to parliament for pecuniary affiftance. But,
no fooner was it fquandered, than many confiderable grants were
obtained under various denominations; the particulars of which, are
not fufficiently interefting to the preſent times to require being enu-
merated. But the circumftances attending one grant are of fo very
fingular a nature, that it is proper to mention them. A parliament was
affembled in the year 1523, to raiſe fupplies for carrying on a war
with France, into which Henry, at the inftigation, and indeed to ferve
the purpoſes of Wolfey, had rafhly entered. The Cardinal had pledged
himſelf for the obfequiouſneſs of the Houſe of Commons; and, fully
impreffed with ideas of his own dignity and importance, he came per-
fonally to the Houſe, and after making a long harangue to prove the
urgency of the king's neceffities, concluded with requiring a grant of
800,000l. payable at the rate of 200,000 l. per annum, for the ſpace of
four years". So exorbitant a demand had never been heard before
within the walls of that houfe; and the court met with a firmer and
ftronger oppofition than was expected. Only one half of the fum was
voted, to which, afterwards, a finall addition was made, in conſequence
of a circumſtance which evinces the manner in which Henry treated
his parliaments. Finding that the bill of fupply had met with fuch
unexpected obftructions, he fent for Edward Montague, a lawyer of
diftinguiſhed eminence, and one of the greateft leaders of the Houfe,
and briefly told him, that if the fupply did not paſs, his head ſhould
anfwer for it in the morning".
Grants.
In a ſpeech which Wolfey made to parliament, the increafe of the Cuftoms.
cuftoms is mentioned as a ſtrong proof of the increafing wealth and opu-
lence of the kingdom; and it is certain, that tunnage and poundage were
paid during the whole of Henry's reign. There is fome difference of
opinion in regard to the manner in which thefe duties were granted.
Hume ſtates, that Henry had levied them for fix years by his own au-
thority, without any fanction from parliament 20. But Gilbert afferts, that
18 Hume, vol. iv. p. 47.
19 Parl. Hift. vol. iii. p. 35. This anecdote, however, is only traditional.
:
2. Hift. vol. iv. p. 272.
P 2
they
108
HISTORY OF THE PUBLIC REVENUE
Poll-tax.
Feudal pre-
rogatives.
they were exprefsly given by parliament in the firſt year of his
reign".
In the fourth of Henry, a poll-tax was granted in addition to other
impofitions. A duke was charged ten marks; an earl four pounds;
a baron two pounds; a knight thirty fhillings; and beſides other rates
every perſon of fifteen years of age, and upwards, was charged four
pence". This tax, which was impofed with fome degree of attention
to the wealth and ftation of the different ranks of the people, was paid
without much oppofition.
a very
The feudal prerogatives of the Crown, were becoming every day lefs
profitable. A perpetual ſtruggle was maintained between the fuperior
and the vaffal, in which the latter was generally the moft fucceſsful;
and, among other artifices, it became, at laft, a common practice en-
tirely to evade the payment of any feudal incident, by making a truſt
fettlement of an eftate. For, on the one hand, it was faid, that the Lord
Paramount could not attack the truſtee, who held it for the behoof of
another; and on the other, it appeared, that the real proprietor was not
in poffeffion of the property, and confequently could not be made liable.
In fome degree, to remedy what was then confidered as
dangerous abuſe, Henry propoſed, that every man ſhould be permitted
to diſpoſe of one half of his landed property in truſt, and that the other
half ſhould be fubject to the former incidents of the feudal tenures.
This compromiſe, though agreed to by the Lords, was rejected by the
Commons. But fuch was the ſubjection under which parliament was
held by the daring and imperious Henry, that it never ventured to oppoſe
his will without having reaſon to regret it. On this occafion, he pro-
cured a decifion of the judges in his favour, and not long afterwards,
the Commons were reluctantly compelled to agree to an act, by which
it was declared, that the perſon who reaped the uſe, or enjoyed the
profits of the eſtate, ſhould be deemed the proprietor "3. Thus, inſtead
of the half, the whole of their lands were again made fubject to thefe
feudal burdens.
23
21 Treatise on the Exchequer. Appendix, p. 286. He fays, the roll is not printed. At
any rate, the act 1 Hen. VIII. cap. 5. is fufficient.
22 Lords Journal, vol. i. p. 25.
23 Hume, vol. iv. p. 108 and 151, 27 Hen. VIII. cap. 10. See alfo 32 Hen. VIII. cap. 1.
At
OF THE BRITISH EMPIRE.
109
England was unqueftion- First-fruits
Befides the uncertain in-
At the time of which we are now writing,
ably the richeſt jewel in the papal crown.
come arifing from indulgences, difpenfations, &c. the pope was thought
entitled to the duty called Peter's pence, and to the firft fruits and
tenths of all the benefices in the kingdom. The annates, or firſt-fruits,
was a tax which the pope received as an equivalent for the firſt year's
profits of every fpiritual preferment, originally introduced into the
kingdom in the reign of king John, whofe mifconduct had reduced
him to a total fubferviency to the church of Rome. It is calculated,
that in the ſpace of about fifty years, no leſs than 160,000 l. had been
fent from England on account of that claim alone". Upon Henry's
quarrel with the pope, and his being inveſted with the title of head of
the church of England, the firſt-fruits and tenths were annexed to the
revenue of the Crown ". With regard to Peter's pence, and the various
modes which had been invented by the church of Rome, of fleecing the
people under religious pretences, they had been previouſly aboliſhed ".
Henry imitated his father's example, in endeavouring to reap pecu-
niary advantages from the treaties he entered into with foreign powers.
Tournay having been taken by the Engliſh, 600,000 crowns was de-
manded previouſly to its reſtitution"; and Henry availed himſelf of the
fituation to which France was reduced, by the captivity of its fovereign,
Francis I. to obtain very lucrative ftipulations. But the moft fingular
article of that nature, was contained in a treaty, concluded at London,
anno 1527, by which Henry agreed to renounce all claim to the crown
of France; in return for which, Francis became bound to pay, for ever,
50,000 crowns a year, to Henry and his fucceffors 28.
and tenths.
Money from
foreign
princes.
tortion.
Under Wolfey's adminiftration, an attempt was made, which, had Wolfey's
it ſucceeded, would have proved the entire ruin of the liberties of Eng- fyftem of ex-
land. It was to raiſe money by royal proclamation. Commiffions
were iffued for that purpoſe; and it was intended to exact four fhillings
in the pound from the clergy, and three fhillings and four-pence from
the laity. So illegal and exorbitant an impoſion, occafioned the greateſt
clamour and diſcontent in every corner of the kingdom; and a danger-
ous rebellion would have followed, if the king had not denied having
25 26 Hen. VIII. cap. 3.
2; Hume, vol. iv. p. 14.
24 Black. vol. i. p. 284.
25 By 25 Hen. VIII. cap. 21.
28 Ibid. p. 72.
any
}
110
HISTORY OF THE PUBLIC REVENUE
Debafing the
coin.
Loans.
any knowledge of the impofition; and publickly declared, that his
neceffities, however great, ſhould never make him attempt to raiſe
money by any other means than by the voluntary confent of his peo-
ple, or the fanction of parliament"; a declaration, however, to which
he did not ſtrictly adhere, during the middle and latter part of his reign.
There is no mode, by which a needy and tyrannical fovereign, may
acquire inconfiderable fums of money, with greater detriment to his
fubjects, than by tampering with the coin. From the Conqueft, to the
reign of Henry VIII., the old ſtandard of fineneſs had been generally
preferved; and, although fome bafe metal had been mixed in our coin, yet
the adulterations were gradual, and confequently lefs pernicious. But
Henry, befides enhancing the price of gold and filver to a confiderable
degree, difgraced himſelf ſo far, as to coin bafe money, and to order it
to be current by proclamation
30
It was natural for a prince like Henry, reduced to confiderable dif-
ficulties by his own extravagance, to imitate the example of fome of his
predeceffors, in extorting compulfive loans from his fubjects. He began.
with demanding particular fums from fome wealthy individuals; but
Anno 1523. foon afterwards he impofed a general tax, under the pretended name of
a loan, amounting to five fhillings in the pound on the clergy, and two
fhillings on the laity ". It is faid, that the plan was propofed by
Wolfey, who was then in the height of his power; and whofe friends,
to prove their attachment to him, largely contributed. But they had
foon reaſon to repent of their zeal; for an act was paffed, aboliſhing all
the debts which the king had incurred fince his acceffion, in which this
loan was included. From various motives, this meaſure met with a
very general concurrence. The friends of the court rejoiced, that the
king's debts were annihilated, and the friends of the people, that a
mode of fupply, fo dangerous to public liberty, fhould be difcredited.
Nor were either the court, or the nation difpleafed, that Wolfey's at-
tached friends, who had enriched themſelves by their connection with
that haughty minifter, fhould thus be impoverished. Notwithſtanding
2) Hume, vol. iv. p. 61. Parl. Hift. vol. p. 38. Godwin's annals, p. 40.
30 Harris on money and coin, part ii. p. 3. Stevens, p. 209.
Hume, vol. iv. p. 46.
this
OF THE BRITISH EMPIRE.
TIE
this abolition, another loan was exacted; and Henry had even begun to
repay ſome part of the money that he had borrowed; but his exchequer
was not adequate to fo great an undertaking; and he found it neceſſary
to procure another act, which not only freed him from his incum-
brances, but by which thoſe who had been paid either in whole, or in
part, were obliged to refund any fum they had received ". What
rendered the loans in the reign of this king particularly obnoxious, was,
that the people were compelled to reveal the extent of their fortune upon
oath, and were charged accordingly ".
34
33
Of all the plans which he purſued for raiſing money, that which Benevolence.
paſſed under the name of a Benevolence, was unquestionably the moſt
tyrannical. To extort money from his ſubjects, illegally, was not fuf-
ficient; but Henry had the infolence to compel them to give that as a
free gift, which was actually forced from them by compulfion. To the
firſt benevolence that was exacted, he himſelf gave the name of the
Amicable Graunte 3*; yet fuch as refuſed to pay the fum that was ex-
pected from them, were threatened with puniſhment. In the thirty-
fifth year of his reign, he extorted 70,000l. under the fame pretence;
and meeting with much oppofition from the citizens of London, on
whom fuch exactions were particularly fevere, he took care to make an
example of two of the moft refractory aldermen; the one, by fine
and impriſonment; and the other, by compelling him to ferve in perfon
againſt the Scots, by whom he was taken prifoner 35.
chur.h.
But Henry's extravagance was fuch, that all ordinary expedients for Attack on the
raifing money, and every mode of extortion, that had ever been
formerly practiſed in England, were inadequate to his expences; and a
variety of circumſtances concurred to make the wealth and property of
the church, a defirable object of his rapacity. The rifk which it had
run in the reigns of Henry IV. and of Henry V., has already been
taken notice of; and the principles of reformation which Wickliffe
preached up at that time, had fince met with more encouragement,
and been carried to greater lengths under the banners of Luther and of
Calvin. Wolfey himſelf, though a cardinal of the church of Rome,
and a candidate for the papal throne, had fet the first example of an
32
35 Henry VIII. cap. 12.
34 Stevens, p. 180. Noy, p. 49.
33 Stevens, p. 181.
35 Godwin's Annals, p. 111.
encroach-
112
HISTORY OF THE PUBLIC REVENUE
Means pur-
fued by
Henry.
Suppreffion
of the leffer
monafteries.
Suppreffion
of the greater
monafteries.
encroachment upon ecclefiaftical property, by procuring a bull to
diffolve forty of the leffer monafteries, in order to endow two colleges
he propoſed to erect at Oxford and Ipfwich "; and Cranmer, who fuc-
ceeded Wolfey in the confidence of the king with regard to ecclefiaftical
affairs, detefting the luxurious manner in which the monks lived; and
convinced, that they were addicted to many vices incompatible with
the ſtrict and auftere life they profeffed, was eaſily perfuaded, that their
wealth could be better employed than in miniftering to their volup-
tuoufneſs 37
The means purſued by Henry were highly politic. He firft
pro-
cured, both from his church and parliament, a recognition of his right
of fupremacy; and then, as head of the church, he appointed Crom-
well his vicar-general, and directed him to employ commiffioners on
whom he could depend, for the purpoſe of viſiting the different mona-
fteries, and of making the ſtricteſt enquiry into the lives, morals, and
behaviour of thoſe by whom they were inhabited. It is faid, that
diſcoveries were made, fo unfavourable to the character of theſe re-
ligious hypocrites, as to render their fuppreffion popular with the people,
as well as profitable to the crown
38
The firſt attack upon the patrimony of the church, was by an act of
parliament paſſed anno 1536; by which, under the pretence, that no
reformation of the vices of the monks in the leffer monafteries could be
effected, but by their diffolution, all fuch inftitutions, poffeffed of re-
venues under 200 l. a year, were given to the crown". Three hundred
and ſeventy-fix monafteries were fuppreffed by this act; whofe landed
property produced above 32,000l. per annum, and whoſe perſonal
effects yielded above 100,000l. though difpofed of greatly under their
value 40
The wealth which Henry had thus procured was however foon ex-
haufted; and his neceffities impelled him to carry ftill farther a plan at-
35 Godwin, p. 41.
37 Cranmer was convinced, that the reformation could not be carried on, unleſs the
monaſteries were fuppreffed. Burn's Ecclef. Law, voce Monaſteries.
38 Hume, vol. iv. p. 150.
3)
37 27 Henry VIII. cap. 28.
0
4° Hume, vol. iv. p. 150. Stevens, p. 211.
tended
+
OF THE BRITISH EMPIRE.
113
tended with fo much gain. Accordingly, two years afterwards, in Anno 1533-
confequence of a fecond vifitation, the greater monafteries were fup-
preffed; and fix hundred and five great abbies, together with ninety
colleges, and a hundred and ten hofpitals for the relief of the poor, were
by one act annihilated ". The monks, dreading the king's refentment,
had, in general, previouſly delivered up their property into his hands;
and all doubts were removed by this act, in regard to the legality of
fuch furrenders.
42
Other cleri-
calc
cal extor-
tions.
But Henry was not yet ſatisfied with the pillage of the church. Un-
der the pretence, therefore, of regulating the clergy, many of the bishops
were compelled to furrender the landed property of their fees into his Anno 1542.
hands +2. No lefs than feventy manors were taken from the arch-
biſhopric of York, and other diocefes fuffered proportionably". The
monafteries in Ireland, and the knights of St. John of Jerufalem, were
alfo fuppreffed; and, to crown the whole, an act was paffed, by which Anno 1542.
parliament granted to the king the revenues of the two univerfities;
and of all the chantries, free chapels, and hoſpitals in the kingdom**.
It was imagined, that the great value of the religious houſes,which were Value.
thus fuppreffed, would have furniſhed the crown with fuch an addition to
its income, as to render any farther application to parliament for new
grants unneceffary. In the reign of Henry IV. the income of the
church had been computed at 485,000 marks; and it was ſuppoſed,
that its revenues muſt have greatly increaſed fo many years after. But
the clergy had been prepared for the blow. With a view of rendering
themſelves popular, their eftates were let at very moderate rates; and,
inſtead of an addition of rent, they were accuſtomed to exact ſmall fines
when the leafes were renewed. Befides 45, the commiffioners who were
appointed to viſit the monafteries, expecting either to procure a grant of
fome of the lands they furveyed, or to purchaſe them at low prices,
undervalued them as much as poffible; and the income of the whole
was only given in at 152,517. 18 s. 10 d. per annum, grofs-rent, and
was ftated at no more than 131,607 l. 6s. 4 d. net produce, after all
deductions 46. The real value of theſe poffeffions, however, was
4X
31 Hen. VIII. cap. 13.
43 Stevens, p. 193.
45 Hume, vol. iv. p. 182.
42
37 Hen. VIII. cap. 16.
44
37 Hen. VIII. cap. 4.
46 See a particular account of them, Stevens, p. 213.
'
е
incon-
314
HISTORY OF THE PUBLIC REVENUE
}
Henry's pro-
fufion.
Foor's rates.
inconceivably great.
It appears from an account drawn up anno 1717,-
that the annual income of the houſes fuppreffed by Henry, muſt have
amounted to about 73,000 l; and at a moderate computation, would
now yield at leaſt fix millions per annum The abbey of St. Albans,.
which was valued only at 2500l. per annum, poffeffed eſtates, which,
a century after the fuppreffion, brought in 200,000l. a year
1
47:
48.
Many ſuggeſtions had been thrown out by zealous and public ſpirited.
men, to render the revenues of the church uſeful to the public.
Among other plans of a beneficial nature, it was propofed to found.
feminaries for the ftudy of law; for the acquifition of uſeful lan-
guages; and for the education of thoſe intended for foreign embaffies,..
or to fill the high offices of the ſtate. But Henry's prodigality rendered
all fuch ſchemes abortive. Inftead of fixteen, as he had originally pro-
pofed, he was only able to erect fix new bishoprics. The immenfe-
property he had acquired was foon wafted; in a fhort time, the
crown became as neceffitous as ever; and, in confequence of its poverty,
again dependent on parliament for ſupport.
The fuppreffion of the monafteries, inftead of proving, as was ex-
pected at the time, a means of freeing the people from the weight of
taxes, was the fource of one of the heaviest burdens to which this.
country is at prefent fubject. The monafteries, previous to their diffolu-
tion, had been the great afylum of the poor; and it was much appre-
hended, that the latter would become a load upon the public, in confe-
quence of the fuppreffion of the former.. Large quantities of the church
lands, therefore, had been fold at eaſy rates, that the purchaſers might be.
enabled to keep up the hofpitality, and charitable donations, which had
been practiſed by their predeceffors; and a penalty of 61. 13s. 4 d. per-
month was impofed upon fuch as failed in the obligation . An attempt:
was made in the year 1536, to lay this burden upon the fecular clergy;
the incumbent of every parish being ordered to fet apart a confiderable.
portion of his revenue for repairing the church, and for fupporting the
poor. It is not known how long this regulation.continued in force;
49.
47 Summary of all the religious houfes in England and Wales, at the time of their
diffolurion, p. 63,
48 Stevens, p. 188. 216.
49 See 27 Hen. VIII. cap. 28. §.9, .10.. Repealed by 21. Jac. c. 28. 11.
50 Hume, vol. iv. p. 170..
A
but
OF THE BRITISH EMPIRE.
115
but it is certain, that after many other ineffectual endeavours, it was at
laft thought neceffary, to compel the pariſh where the poor were born,
or where they acquired a fettlement, to provide for their maintenance: a
grievous burden, which, it is fuppofed, amounts at prefent to at leaſt
three millions per annum.
In the reign of Henry, a general furvey was made of the whole king- Survey of the
dom; of the number of the inhabitants, their age, profeffions, wealth, kingdom.
income, and every other important particular that a ftateſman could
wiſh to be acquainted with. The furvey is unfortunately loft; and the
only information which it contained, at prefent known, is, that the
income of the whole kingdom was eſtimated at four millions per annum.
It is remarked, therefore, by Hume, that the landed property of the
different monafteries, that were fuppreffed, was only equal to about a
twentieth part of that fum But it has been already obferved, that
the real value of thefe lands was greatly fuperior.
32
EDWARD VI.
This young prince fucceeded to the crown at the age of about nine
years. As his reign lafted during the ſpace only of fix years and a
half, the government muſt have been in a great meaſure conducted by
the advice of his minifters. Yet, unlefs the accounts given us by
hiſtorians are greatly exaggerated, he himſelf enjoyed no inconfiderable
thare in the adminiftration. It is at leaſt certain, that he was educated in
habits of induſtry, and of attention to buſineſs, which, had his life been
prolonged, would probably have made him one of the beſt and greateſt
monarchs that ever fat upon the throne of England.
During the greater part of his reign, Seymour duke of Somerſet, Grants.
Edward's maternal uncle, governed the kingdom under the name of
Protector. Notwithſtanding the endeavours of this minifter to acquire
popularity, he found it was impoffible to carry on the public buſineſs
without fupplies from parliament; particularly, after he had engaged
in wars with France and Scotland, which the revenues of the crown,
impaired by Henry's prodigality, were by no means able to ſupport.
Hume, vol. iv. p. 47. Parl. Hift. vol. iii. p. 26.
52 Vol. iv. p. 182.
In
1
116
HISTORY OF THE PUBLIC REVENUE
Tax on ſheep:
Tax on wool-
len cloth.
French an-
muity,
Sale of Bou-
logne.
In addition, therefore, to tunnage and poundage, ſome tenths, fifteenths,
and fubfidies, were applied for, and chearfully granted.
The reign of Edward is remarkable for an attempt to lay a poll-tax
upon ſheep": Every ewe, kept in a ſeparate paſture, was charged
three-pence; every wether, two-pence; and all fheep kept on com-
mons, three halfpence. But the tax was found fo difficult to collect,
or fo oppreffive, that it was repealed in the next year 54.
England began about this time to make a diſtinguiſhed figure, as an
induftrious and commercial nation; and the manufacture of woollens, in
particular, was raiſed to ſuch a height, that it was fuppofed able to
bear an impofition. A tax of eight pence in the pound, therefore, was
laid upon all cloth made for fale in England. But this, and the duty
upon ſheep joined together, were found fo oppreffive, upon an article
which had not arrived at its maturity, that they were both repealed after.
a fhort trial, though they had been granted for three years ".
The kings of England, fince the reign of Edward IV. had conſtantly
endeavoured to procure fome pecuniary compenſation from the crown.
of France, for the right they claimed to that kingdom. Mention has
been made already, of the treaties between the two crowns in regard to
this demand. In the reign of Edward, the arrears of the annuity.
amounted to two millions of crowns. But the king of France-
(Henry II.) abfolutely refuſed to pay any part of the fum, declaring,.
that he would not fuffer himſelf, or his kingdom, to be tributary to any
one; and as a treaty was concluded, in which no notice was taken of
this claim, it has ever fince been confidered as totally abandoned ".
The town of Boulogne was the only acquifition which Henry VIII.
had made, in a war which is ſaid to have coſt the fum of 1,340,000 l..
fterling. It was a poffeffion which England could not hold without
confiderable expence, and indeed greater charges than its revenues could-
at that time afford. As the French were defirous of acquiring it,,
the parties found little difficulty in coming to an agreement. Boulogne,.
Anno 1550 therefore, and its territories, were reftored, in confideration of 400,000
crowns, or 133,333 l. 6 s.. 8 d.. fterling "..
53 2 & 3 Edw. VI. cap. 36:
55 Stevens, p. 225.
57 Carte, vol. iii. p. 246..
57
54 3 & 4 Edw. VI. cap. 23.
55 Hume, vol..iv. p. 342. Mort. vol. ii. p. 306
The
OF THE BRITISH EMPIRE.
་་་
t
(6
coin.
The difficulties to which the protector was reduced, made him have Debafing the
recourſe to the dangerous expedient of debafing the coin. Nay, it is faid,
that 20,000 pounds weight of bullion was ordered to be coined, fo as to
yield the king a profit of 140,000 l. " The ufual confequences enfued
from fo pernicious an attempt. "The good coin was hoarded or ex-
"ported, bafe metal was coined at home, or imported from abroad in
great abundance; the common people, who received their wages in
"it, could not purchaſe commodities at the ufual rates; an univerfal
"diffidence and ftagnation of commerce. took place, and loud com-
"plaints were heard in every part of the kingdom "." It is remarked
by the ſame hiſtorian, that in confequence of the importation of fome
bullion from Sweden, good ſpecie was again coined, and fome of the
baſe metal, formerly iffued, was recalled. The Swedes were tempted.
to ſend what bullion they could fpare into England, in confequence of
a treaty of commerce between the two kingdoms; by which they were.
permitted to export Engliſh commodities duty free, provided the price:
was paid in bullion ".
In Edward's reign, an alteration took place with regard to the Customs.
cuſtoms, which was attended with the most important confequences.
A body of foreign merchants, called the Corporation of the Steel-yard,.
had been erected in the reign of Henry III. and had obtained, by patents
from the crown, very valuable privileges. In particular,. they were
exempted from feveral duties paid by other aliens, and confequently,
enjoyed all the advantages of the natives in England, whilft, at the ſame:
time, by means of their connexions on the continent, they had a better
opportunity of difpofing of their commodities at foreign markets.
Edward's minifters were fortunately appriſed of all thefe circumftances;
and being convinced how neceffary it was to encourage the commerce and
navigation of England, they determined to annul the privileges of this
foreign company, and perfevered in their refolution, notwithſtanding
the oppofition and remonftrances of the principal trading cities in
Europe. Aliens duty being thus impofed upon all foreigners without.
diftinction, the natives of the country were led to engage in commer→
A
57 Mort. vol. ii. p. 456.
58 Hume, vol. iv. p. 328. Harris on Coins, part ii. p. 3.
59 Hume,. vol. iv. p. 349-
cial
1
IS
HISTORY OF THE PUBLIC REVENUE
Church
lands.
Poors rates.
Fines.
cial undertakings with greater eagerneſs than formerly, with more profit
to themſelves, and more advantage to their country
60
In the latter end of the reign of Henry VIII. an act had paffed for the
fuppreffion of all the chantries, free chapels and colleges in the king-
dom; and commiffioners had been actually appointed to take poffeffion
of their revenues. But Henry died before the commiffion was carried
into execution, and it was thought neceffary to pass another act, by
which no leſs than 2374 religious eſtabliſhments were at once aboliſhed,
and given to the crown". It is declared in the act, that theſe founda-
tions were thus annexed for purpoſes of the greateſt national utility.
They were appropriated for erecting fchools; for augmenting the
feminaries of learning in the two univerfities; for the better proviſion
of the poor, and for diſcharging the king's debts. But as minifters of
ſtate were then endowed with deaneries, prebends, and other fpi-
ritual preferments, it was eafy to perceive into whofe hands they would
fall. Nor was this the only ecclefiaftical plunder in the reign of Ed-
ward. For the bifhop of Wincheſter and others were deprived of
many of their manors, and obliged to change the property they had,
for lands and rights of inferior value. The churches were alſo fearched,
and the plate, jewels, and every other article of any value belonging to
them (one chalice, and one covering for the communion table alone
excepted), were appropriated to the ufe of the crown "2.
62
;
The diftreffes of the poor were in the meanwhile daily increaſing;
and it became more neceffary than ever for the legiſlature to interfere
in their behalf. Accordingly, anno 1552, an act was paffed, empower-
ing the church wardens in every pariſh to collect money for their relief;
and if any refuſed to give in charity, or diffuaded others from contri-
buting, the bishop of the diocefe was entruſted with difcretionary
powers to proceed againſt them "3.
63
The looſe government which always takes place during a minority,
had flattered many of the fervants of the crown with impunity, and
encouraged them to commit crimes of a very dangerous nature. It
was determined to puniſh them by heavy pecuniary fines, not only as
a chaſtiſement for their offences, but that fome advantage might be
60 Hume, vol. iv. p. 348.
62 Stevens, p. 220. 222.
61 I Edward VI. cap. 14.
63 5 & 6 Edw. VI. cap. 2. Parl. Hift. vol. iii. p. 260.
reaped
OF THE BRITISH EMPIRE
+19
reaped by the exchequer. Lord Paget, chancellor of the dutchy of Lan-
eafter, confcious of his guilt, furrendered his office, and paid down
4000 l.; and Beaumont, Maſter of the Rolls, and Whalley, receiver of
Yorkſhire, compounded for their offences by fimilar means
Sil
64
The debts contracted by Edward, had been made uſe of as a ſtrong Debte.
argument in parliament, to bestow on him the remaining property of
the regular clergy; and fome of the lands, thus obtained, were actually
fold, and the purchaſe-money applied to free the crown from thoſe
diſagreeable incumbrances. But fuch was the rapacity of Edward's
minifters, that they not only appropriated to their own private uſe the
greater part of the property taken from the church, but alſo defrauded
the crown of its domains, and left the king involved in a debt, amount-
ing to above 240,000/
J
loans.
In the reign of Edward, it became an ufual practice to negociate Foreign
loans on the continent; for which, it is faid, he paid an intereft of 14
per cent. Antwerp, and other cities in Flanders, were then fuppoſed
to be the only places where any confiderable fums of money could be:
borrowed.
MAR Y..
The reign of Mary, who fucceeded her brother Edward, fufficiently
accounts for the deteftation in which the English nation has ever fince
held every attempt to re-eſtabliſh the Roman Catholic religion in their
country, and their dread of having another popish prince feated
upon the throne. For, during the whole period, we find nothing but
difgrace abroad, and mifery at home; the moſt folemn engagements
abandoned; and the interefts of her kingdom facrificed, to gratify her
pernicious attachment to the religion of Rome, and to the politics of
the Spaniards. Fortunately, her reign fcarcely exceeded five years;
and it may be confidered merely as a foil to difplay the happy and
fplendid government of Elizabeth, in more lively, and more durable
colours.
64 Mort. vol. ii. p. 312. 456.
:
Mary
120
HISTORY OF THE PUBLIC REVENUE
Grants.
Demefnes.
Church
lands.
(3
Mary had the duties of tunnage and poundage granted to her for life,
by an act which contains the following fingular preamble: "In their
"moſt humble wife fhewn, unto your moſt excellent majeſtie, your
poore and obedient fubjects and commons ", &c. " The whole is
drawn up in a ſtyle which tends to juſtify the right of the crown to
tunnage and poundage, without any fanction from parliament, and
indeed, if poffible, to render that affembly contemptible. As to other
grants, ſhe is ſaid to have received in all but five-fifteenths, and three
fubfidies "
66
The landed property of the crown was perpetually fuffering fome
diminution; and an act, particularly fatal to it, was paffed anno 1588,
by which all the grants or fales of the crown lands, which either had
been made by the queen, or fhould be made during the ſpace of feven
years pofterior, were at once confirmed: a meaſure which could not
fail to produce, and indeed was intended to countenance, a very confi-
derable alienation.
A bigoted queen, like Mary, could not bear to reap any pecuniary
advantage from that change in religion which had taken place during
the reign of her father, and of her brother. A bill was therefore paſſed,
not only reftoring to the church the firſt fruits and tenths, and all the
impropriations which remained in the hands of the crown, but alfo all
the church lands that ſtill continued in its poffeffion". Nay, fome new
convents and monafteries were founded, notwithstanding the low ftate
of the exchequer. The bishopric of Durham alfo, which had been
fuppreffed by Edward, was reftored to its former condition, and the re-
ftitution confirmed by parliament. She knew well how unpopular fuch
meaſures were; but the declared to her council," Albeit you may
"object to me again, that conſidering the ſtate of my kingdom, the
dignity thereof, and my crown imperial, cannot be honourably main-
"tained and furniſhed without the poffeffions aforefaid; yet, notwith-
"ftanding, I fet more by the falvation of my foul, than by ten king-
doms, and therefore the faid poffeffions I utterly refuſe here to hold
"after that fort and title 8. "
651 Mary, cap. 18.
66 Stevens, p. 234.
67 2 & 3 Phil. and Mar. cap. 4.
-68 Stevens, p. 244.
The
OF THE BRITISH EMPIRE.
121
+
The principles on which Mary acted in eccleſiaſtical matters, were fo Extortions.
generally obnoxious to her fubjects, that when an application was made
to parliament for a fubfidy, it was rejected; and many members de-
clared, that it was in vain to beſtow riches upon a monarch, whoſe reve-
nues were thus wafted "9. She was therefore obliged to have recourfe to
tyrannical extortions to repleniſh her exchequer. Anno 1455, by means
of embargoes, compulſive loans, and exactions of a fimilar nature, ſhe
raiſed about 240,000l.; and two years afterwards, contrived to fit out,
by the fame methods, an armament for the affiftance of her huſband
Philip II. king of Spain; but finding it impoffible to fupply it with
provifions, fhe feized, for that purpoſe, all the grain that the counties of
Suffolk and Norfolk could furnish, without making the owners any re-
compence. In ſhort, fuch was her infatuation for the perſon and prin-
ciples of Philip, notwithſtanding his indifference and contempt of her,
that in order to contribute to his aggrandizement, fhe made no fcruple
to tarniſh her own character by the moſt diſgraceful rapacity, and fa-
crifice the effential intereſts of her crown and kingdom without heſitation
or remorse.
loans.
Mary imitated her brother's example, in endeavouring to borrow Foreign
money on the continent. But her credit was fo very low, that though
The offered 14 per cent. intereſt to the town of Antwerp, for the loan
of 30,000l. ſhe could not obtain it, until ſhe had compelled the city
of London to join in the fecurity 70.
her revenue.
We are told by Hume, that the revenues of England, in the reign of Amount of
Mary, exceeded 300,000 l.". It is queftionable, whether the permanent
income of the crown amounted to fo much, particularly after the church-
lands, the firft-fruits, and tenths, &c. were reftored: even in the twelfth
of the reign of Elizabeth, the profit of the kingdom, exclufive of the
wards and the dutchy of Lancafter, amounted only to 188,1971. per ann.
The authority quoted by Hume alfo, is that of a foreign author ", and
confequently the lefs to be relied on.
year
There is only one circumftance, during Mary's reign, that can give Remiſſion of
us a favourable idea of her political character; and that is, the volun- a fubidy.
69 Hume, vol. iv. p. 422.
Hume, vol. iv. p. 433.
70 Carte, vol. iii. p. 320.
² Rofi, Succeffi d'Inghilterra.
R
tary
"
122
HISTORY OF THE PUBLIC REVENUE
Advantages
of the Union
with Scot-
laud.
tary remiſſion of a fubfidy, which had been granted to her brother
Edward, but which had not yet been paid. This was artfully done,
with a view of ingratiating herſelf with the public, and of beginning the
new government with a popular and acceptable act, to which the na-
tion had not been accuſtomed fince the reign of Richard II. The re-
miſſion was originally contained in letters patent"; which, for the fake
of greater fecurity, were afterwards confirmed by parliament. It is
to be remarked, at the fame time, that the letters patent and the act,
only remit the ſubſidy of four ſhillings in the pound on lands, and two.
fhillings and eight pence on goods and chattels ; but exprefsly reſerve
the grant of two-tenths and two-fifteenths. And fo little able was
Mary to afford this affected piece of generofity, that ſhe was obliged to
borrow 20,000l. at the fame inftant from the city of London, for the
expences of her coronation.
The reign of Mary furniſhes us with a ſtrong proof of the beneficial
confequences refulting to England from the union with Scotland. For
in the acts by which fubfidies were granted, the whole counties of
Northumberland, Cumberland, and Weftmoreland, and the towns of
Berwick and Newcaſtle, and the Biſhoprick of Durham, were entirely
exempted, on account of their vicinity to the Scots, by whofe incurfions,
notwithſtanding the fuperior ftrength and reſources of England, they
were perpetually ravaged ". It is well known, that what was then
called a fubfidy, was of the ſame nature with the modern land-
had not the union therefore taken place, the land-tax at preſent
paid by theſe towns and counties (which, at the rate of four fhillings in
the pound, amounts to 31,900l.) could not have been demanded upon
any principles of juftice or equity.
tax;
ELIZABETH.
We are now to contemplate
England has reaſon to be proud.
73 Parl. Hift. vol. iii. p. 288.
25 Stevens, p. 241, 242.
the reign of a fovereign, of whom
For though it is certain, that neither
74 See 1 Mar, Seff. 2. cap. 17.
I
her
OF THE BRITISH EMPIRE.
123
1
་
her private conduct, nor all the principles of her public adminiftration,
were totally blameleſs and irreproachable; though her attachment to
Leiceſter, and to Effex, betrayed a confiderable portion of female weak-
nefs; though the impriſonment and death of the unfortunate Mary,
will for ever prove an indelible ſtain to her memory; and though the
manner in which the treated her parliaments, and fupported the pre-
tended prerogatives of the crown, fo contrary to the principles, and fo
oppofite to the ideas and practices of theſe times, muft appear to us harſh
and illegal; yet fuch was the general happineſs of her fubjects at home,
and ſuch the reputation ſhe eſtabliſhed abroad with foreign powers,
that her reign may be accounted the moſt ſplendid and fortunate of any
female fovereign perhaps recorded in hiſtory: nor can the annals of
England produce a period, on the whole, more to be preferred. It is
therefore propoſed to ſtate, with fome degree of minuteneſs, firſt, the
general nature of the expences in which ſhe was involved; and, fe-
condly, from what fources they were defrayed.
Expences.
Defence.
Elizabeth was put to heavier charges in providing for the national 1. National
protection and defence than any of her predeceffors; it was juftly
remarked by Sir Thomas Egerton, keeper of the great ſeal, in a ſpeech
to parliament, "that the wars formerly waged in Europe, had com-
"monly been conducted by the parties without any farther view than
"to gain a few towns, or at moſt a province, from each other; but
"that the object of Spain, in the hoftilities which it carried on at that
time, was no other than utterly to bereave England of her religion,
"her liberty, and her independence' It was neceffary, therefore, to
fpare no expence, when fuch objects were at ſtake. Nor did the queen
content herſelf with merely defending her own territories, fhe made
her enemies feel the miferies of war at their own homes. Her fuc-
ceſsful enterpriſes againſt the Spaniards are well known; and it is faid
that ſhe expended no leſs a fum than 1,200,000, from the year 1589,
76 Hume, vol. v. p. 385.
76 99
R 2
when
124
HISTORY OF THE PUBLIC REVENUE
2. Ireland,
3. Scotland.
4. Holland.
when the war with Spain began, to the year 1593, when the received
a confiderable ſupply from parliament for the ſame popular purpoſe ".
Ireland was a poffeffion which had not as yet proved, in any refpect,
uſeful to this country. Its revenue was reduced to the trifling ſum of
6000l. per annum, and it required 20,000 l. a year additional, out of the
exchequer of England, to defray the charges of the ordinary peace eſta-
bliſhment 78. This load was far from being relifhed by Elizabeth and
her council; and their frugality proved the fource of much expence to
the one kingdom, and of infinite mifery to the other. For fuch was
the weak ftate of the Irish government, that it emboldened Tyrone to
revolt, whofe rebellion continued for the fpace of eight years, and is
faid to have coft at the rate of 400,000l. a year, before it was totally
fuppreffed. In the year 1599, 600,000l. were ſpent there in the
fpace of fix months; and Sir Robert Cecil affirmed, that Ireland had
coft, in ten years time, the fum of 3,400,000 1.
78
Elizabeth's critical fituation at her acceffion to the crown, rendered
it neceffary for her to keep up a party in Scotland, attached to her
intereft, and ready to fupport her views; and however unwilling fhe
was to engage in unneceffary expences, yet ſhe found it requifite, until
her rival, Mary, had fallen into her power, to furnish her Scottish
friends with pecuniary, and, occafionally, with military affiftance.
Indeed ſhe artfully contrived to render the politics of Scotland ſubfervient
to her own, during the greater part of her reign.
It was, during this æra, that Holland firſt attempted to render itſelf
independent. As Elizabeth had every reafon to be jealous of the
power of Philip; and as her fubjects had long been connected with
the provinces of Flanders in traffic and correfpondence, they naturally
trufted to her affiftance and protection; and, at one period, actually
offered her the entire fovereignty of the country. This propofal ſhe:
had the magnanimity, and perhaps the prudence, to refufe. But the
pared nothing to enable them to throw off the Spanish yoke; de-
manding, inſtead of the fovereignty of the new ftates, only fecurity
for the reimburſement of her expences: in confequence of which three
See an account of theſe extraordinary charges, Parl. Hift. vol. iv. p. 364.
18 Hume, vol. v. p. 398.
79 Hume, vol. iv. p. 474.
of
OF THE BRITISH EMPIRE.
125
of the moſt valuable fortreffes they were poffeffed of, were delivered
up to her, and garrifoned by the English.
The powerful monarchy of France was, for fome time, no fmall in- 5. France.
cumbrance on the finances of Elizabeth. The arts of the church of
Rome, and the wealth of the court of Spain, had roufed fuch a
fpirit of oppofition to Henry IV. the legal fovereign of the coun-
try, that he could not poffibly have withſtood the united efforts of
his enemies, fupported by a confiderable party of his own fubje&s, if
it had not been for Elizabeth's affiftance, who advanced him to the
amount of 450,000l. in his greateft neceffities: a fum which
he could never be prevailed upon to repay, notwithſtanding the
ftrongeſt repreſentations of her pecuniary diftreffes from the war in
Ireland, and although he had begun to amafs a very confiderable trea-
fure 1.
debts.
Her predeceffors of the houſe of Tudor had frequently involved 6. Crown
themſelves in confiderable debts. Her brother Edward owed the fum
of 240,000l. and fome of her father's and fifter's debts were yet un-
paid. Elizabeth thought it incumbent upon her to diſcharge theſe
claims, and actually paid the debts of the crown, with their full in-
tereft, to the amount, it is faid, of four millions. This, Hume con-
fiders to be incredible But as this fum probably includes both prin-
cipal and intereſt, and alſo the money ſhe raiſed by loans, which (with
only one exception) fhe punctually repaid, there is the lefs reafon to
ſuſpect any great exaggeration.
82
Elizabeth had the credit and expence of bringing back the coin of the 7. Recover-
kingdom to a proper ftandard. Its debaſement in the reigns of Henry VIII. ing the coin.
and of her brother Edward, was very great. Though fome fteps
had been taken to remedy this national difgráce, yet the progrefs was
inconfiderable and before that monfter, as fhe called it, could be con-
so Charles duke of Burgundy was wont to fay, "That the neighbouring nations
❝ would be in a happy cafe, when France ſhould be ſubject, not to one fceptre, but to
"twenty petty kings." But Elizabeth thought otherwife, and therefore ſupported
Henry. Camden's Hift. of Elizabeth, Edit. 1675, p. 444. Had fhe lived till theſe
times, fhe would probably have altered her opinion.
81 Hume, vol. v. p. 473.
debt was increaſed by neglecting to pay the intereft, then at 14 per cent.
2 Ibid. Camden, p. 191, obferves how much the
quered,
}
126
HISTORY OF THE PUBLIC REVENUE
8 Bounties
83
quered, the queen was obliged to borrow 200,000 l. from the city of
Antwerp, to enable her to complete her intentions 93. But ſhe did not
carry her ideas, with regard to the purity of the coin, to the extent
that might be wifhed; for, unfortunately, fhe was afterwards pre-
vailed on, in the forty-third year of her reign, to divide the pound of
filver into fixty-two fhillings inſtead of fixty, the former ftandard 84;
nay, fhe was perfuaded to give her fanction to the coinage of baſe
money for the uſe of Ireland. The pretence was, however, fpecious.
It was faid, that the great fums of money remitted to Ireland, found.
their way, through the medium of circulation, into the hands of the
natives, who were thus enabled to purchaſe thoſe ſupplies of arms and
of ammunition, without which they could not perſevere in their re-
bellion. And it was afferted, that an inferior fpecies of coin could
never be employed to procure uſeful commodities at foreign markets.
Her wiſer counſellors, in vain, endeavoured to prove the weakneſs and
fallacy of ſuch reaſoning. It is faid that Burleigh, whilſt he lived,
would never give way to any project of that nature; nor was it
till after his death, that it was carried into execution" Since the
reign of Elizabeth, no fovereign of England has attempted to debafe
the coin current in this country.
.86
The laft confiderable expence on the exchequer of Elizabeth, was
to favourites. her bounty to her favourites. Her gifts to Dudley, earl of Leiceſter,
were very great. At one time ſhe gave to the earl of Effex a preſent of
30,000 l.; and is fuppofed to have beftowed pecuniary favours upon
that gallant nobleman, to the value of 300,000l. in which a lucrative
monopoly he enjoyed, was probably included. To the great miniſters
who were employed in the public fervice, fhe was not over bountiful:
ſome of them died in poverty; and Burleigh's fortune was more owing
to his own frugality, than to her friendship. But to thofe courtiers
who ingratiated themſelves with her, by the charms of their perfons, or the
infinuation or flattery of their addrefs, no fovereign was more liberal. The
queen, it was faid, pays bountifully, though the rewards Sparingly
87
83 Hume, vol. v. p. 476. 24 Folkes on Coins, p. 58. Harris on Coins, part ii. p. 9.
8; Camden, p. 637.
6 Ney, p. 105.
87 Naunton, in his Fragmenta Regalia, gives a brief account of queen Elizabeth's
favourites, amounting to twenty-two in number. Many of them principally depended
upon the queen's bounty for their fupport. But among them Burleigh and other mi-
nifters are included.
6
Supporting
A
OF THE BRITISH EMPIRE.
1.27
:
1
Supporting the fplendor of the court, and defraying the charges to
which Elizabeth's vanity fubjected her (who left, it is faid, above
three thouſand fuits, of various fhapes and colours, in her wardrobe
when ſhe died) were the only other material expences during her reign.
Let us next fee from what refources her income was derived.
Refources.
88
It is impoffible, at prefent, to aſcertain the income which the royal do- Demefnes.
mains produced in the time of Elizabeth. To James I. they only yielded
the fum of 32,000l. but they were ſuppoſed worth 96,000 l. per annum;
when the leafes which then exifted would expire ", and their value
would have been ſtill more confiderable, had it not been for the queen's
ſyſtem of alienation, who preferred making an alimoft continual dila-
pidation of the royal domains rather than to demand the moſt moderate
fupplies from her commons ". In the forty-fecond year of her reign,
in order to procure money for carrying on the war in Ireland, com-
miffioners were appointed, with full powers to confirm the poffeffion
of the crown lands, to fuch as held them by titles, liable to be contro-
verted. And in the enfuing year an act was paffed, ratifying all the
grants and alienations made by Elizabeth fince the 25th year of her
reign, whether for value received, or in confideration of a difcharge
being granted of any of the crown debts ". It is faid, however, that
her grants in general contained this provifo, that in default of iffue
male, they were to revert to the crown. A clauſe, of which the public,
at this time, might probably avail itſelf.
Elizabeth's attachment to what ſhe ſuppoſed to be the inherent pre-
rogatives of the crown, is too well known to require being dwelt on.
It is faid that the income arifing from wardship (which, with other
claims of a fimilar nature, were very rigorously enforced), joined to the
revenue of the dutchy of Lancaſter, amounted to the fum.of 120,000 l
yearly ⁹¹. Of all the feudal prerogatives, that of purveyance was
the moſt obnoxious. The queen at firſt had victualled her navy under
pretence of that right, but with a view of endearing herſelf to her
89 Hume, vol. v. p. 473..
88
$8 Noy's Rights of the Crown, p. 51, 52.
Feudal pre
rogatives.
90
43 Eliz. cap. I.
91 Hume, vol. v. p. 474. Note Y.
fubjects.
HISTORY OF THE PUBLIC REVENUE
ufoms.
Firft fruits
and tenths.
fubjects. She had afterwards revoked all her warrants, and had given
directions to pay for any provifions that had been furniſhed for that
purpoſe. In the fixth and fifteenth years of her reign, however, the
cauſed confiderable quantities of beer to be purveyed, and fold it on
the continent for her own behoof". Although it is impoffible to
deſcribe the vexation and diftrefs which the exerciſe of this prerogative
occafioned, yet the haughty Elizabeth would neither fuffer its abufes to
be redreffed by parliament, or rectify them herſelf.
The cuſtoms had gradually become a ftanding part of the revenue of
the crown. In the year 1590, they were raiſed from 24,000 to
50,000l. a year: and Sir Thomas Smith, by whom they had been farmed,
was obliged to refund fome part of the profits he had received ". Tunnage
and poundage were granted to Elizabeth for life: but it is remarked by
Hume, that theſe duties were levied previous to the vote of parliament;
and indeed it is afferted, in diſpatches from her council to her ambaffador
in France," that it was as lawful for the queen of England, for her eaſe
"and relief, to take impofitions of her fubjects, of fuch wares as lyked
hir, as it was for other princes to fet impofitions of theyrs 94. Thus
it appears that the fanction of parliament was accounted, by the
queen's minifters, a mere matter of form; at leaſt they were politic enough
to hold that doctrine to foreign courts.
64
94 9
One of the firft fteps taken by parliament, after the acceffion of
Elizabeth, was to reftore to the crown the firft-fruits and tenths which
Mary had given up; and the members of both houſes (fome biſhops
only excepted) fhewed, upon that occafion, fo ftrong a difpofition to
fupport the principles of the reformation, that it greatly encouraged the
queen and her council, to take further meaſures for the abolition of
popery.
52
Noy's Rights of the Crown, p. 66.
93 Authors greatly differ with regard to the fum which Smith originally paid. Philips
(Reſtauranda, p. 35.) fays, that they were raiſed from thirteen thouſand, firſt to forty-
two, and afterwards to fifty thoufand pounds. Camden, p. 440, inftead of thirteen,
makes it fourteen thoufand. Naunton, in his Fragmenta Regalia, p. 15, fays, that in
the ſpace of ten years the rent was doubled. But it appears from Brown's tranſlation of
Camden, (Appendix, note to p. 32 1. 16) that there are fome mistakes in the other
tranſlation, and I fuppofe that fourteen has been put down inſtead of twenty-four thou-
fand pounds.
94 Forbes's full view of the tranfactions of Elizabeth, vol. i. p. 133.
?
(!
The
OF THE BRITISH EMPIRE.
129
lands.
The authority of parliament was alfo procured, to re-annex to the Church
crown, the lands which Mary had beſtowed on religious houſes; and
the Queen was empowered, when any biſhopric became vacant, to ſeize
all the temporalities, and to beſtow on the new biſhop an equivalent in
church-lands, and impropriations belonging to the crown ". In confe-
quence of this regulation, the church was often injured by unfair and
difproportionable exchanges. Nor was this all: for after the example
of fome of her moſt detefted and tyrannical predeceffors, the retained
the temporalities of the bishoprick of Ely in her own hands for the
ſpace of nineteen years; and it was not unuſual for her, when ſhe pro-
moted a bishop, to pillage the fee of fome of its moſt valuable manors,
or to countenance injurious bargains between the new incumbent and
fome favourite courtier 96
Amount of
the queen's
permanent
It is difficult to know, with any degree of precifion, what was the
amount of the permanent revenue of the crown at this time. We
are told, from refpectable authority, that the profit of the kingdom, in income.
the twelfth year of the reign of Elizabeth, excluſive of the wards and
the dutchy of Lancaſter (which yielded about 120,000l.), amounted
to 188,197 l. per annum”, making in all the fum of 308,1971. Anno 1590,
a confiderable addition was made to the cuftoms. The whole of her
annual permanent income, however, could hardly amount to 350,000l.
Though the expences of Elizabeth's government were very confi- Grants.
derable; and though her permanent revenue was far from being great,
yet the earlier part of her reign is not diftinguiſhed by numerous
95 Hume, vol. v. p. 1o.
Stevens, p. 247.
96 The poverty of the crown is a circumſtance not a little aſtoniſhing, when one
confiders the immenfe property of which the church was deprived, during the government
of the houſe of Tudor. But the matter is fully explained in a paper preſented to Eliza-
beth, containing an account of the frauds and abuſes that had been committed by the
officers, to whoſe charge this new branch of the revenue had been committed. For par-
ticulars, Stevens, p. 248, may be confulted. One fact, however, may be taken notice.
of. It is afferted in the paper he tranfcribes (which ſeems to have been drawn up by one
of the commiffioners, or at leaſt by a perſon perfectly acquainted with the whole tranſ-
action), that the plate, jewels, and moveable effects of the different abbeys were worth
a million of money, though fold, by means of the artful contrivances of the commiffioners,
greatly under their value. Nay, that a confiderable part of the low prices that were
given, remained unpaid for many years.
97 Noy's Rights of the Crown.
S
grants
130
HISTORY OF THE PUBLIC REVENUE
grants from parliament. The queen's frugality was fuch, that expences,
however trifling, even the charge of expreffes, on delicate and important
tranſactions, were not reckoned beneath her notice. But, above all,
her imperious fpirit, and her anxious defire to maintain her dignity
and independence, made her fedulouſly avoid aſking fupplies from par-
liament, unleſs when abfolutely neceffary; nor would the ever liften to
any plan of retrenching her prerogative, and of adding to the rights and
privileges of the people, or of gratifying them even in regard to the ap-
pointment of a fucceffor, for the fake of any pecuniary recompence
The following is a ftate of the parliamentary fubfidies and fifteenths re-
ceived by Elizabeth, during the courſe of her reign, in which eighteen
fubfidies from the clergy are not included,
98.
A. Do
Year of
her reign.
Subs.
Fift
1558
I
I
2
1563
5
I
2
1566
8.
I
1571
13
I
~
1575
18
I
3.
1581
23
I
2:
1584
27
I
2-
་
1588
3.1
2
4.
1593
35
3
6.
597
1601
39
3
6.
43
4
8
$9
19.
38
Amount of
the grants.
100
**
The value of the grants beftowed by parliament upon this princefs,
may be thus eſtimated: Every fubfidy amounted to about 70,000 1.
and as there were nineteen ſubſidies, they muſt have produced
1,330,000l. A fifteenth yielded 29,000; and confequently, thirty-
98 Parl. Hift. vol. iv. p. 73°
99 After examining the Statute Book, the whole grants feem to have been but nineteen,
fubfidies, and thirty-eight fifteenths; and D'Ewes, p. 232, fays, that the grant anno 1575.
was of one fubfidy, and only two fifteenths.
190 See Black. vol. i. p. 310. Subfidies were at firſt more productive.
eight
OF THE BRITISH EMPIRE.
131
ΤΟΙ
103
eight fifteenths, was about 1,103,000l. Eighteen fubfidies were
granted by the clergy, valued at 20,000 l. each, confequently equal to
360,000l. The whole, therefore, might amount to about 2,800,000l.
which is the fum ftated by Sir Robert Cotton ; and indeed by Lord
Saliſbury in parliament 12. Hume very juftly remarks, that if the ſupplies
granted to Elizabeth, during a reign of forty-five years, amounted even
to the fum of three millions, it would only make 66,666 l. a year
But Elizabeth's refources did not depend entirely, either on the Monopolies.
common revenue of her kingdom, or on the temporary and occafional
aids of parliament. For the crown, at that time, claimed a right of
granting excluſive privileges of trading, in any article it thought proper,
to any perſon it choſe to appoint. Such monopolies were ſometimes
fold, and it is probable, yielded confiderable fums to the exchequer ;
and ſometimes they were granted, as a reward to thoſe who had dif
tinguiſhed themſelves in civil and military employments; but they
were much oftener given to the minions of the court, in recompence for
their fervility.
The number and importance of the commodities which were thus
monopolized, is almoſt incredible. Among many others, hiftorians men-
tion falt, iron, powder, cards, calf-ſkins, fells, pouldavies, ox-ſhin-bones,
train oil, lifts of cloth, pot-aſhes, anniſeeds, vinegar, fea-coals, ſteel,
aquavitæ, bruſhes, pots, bottles, faltpetre, lead, accidences, oil, cala-
mint-ſtone, oil of blubber, glaffes, paper, ftarch, tin, fulphur, new
drapery, dried pilchards; tranſportation of iron ordnance, of beer,
of horn, of leather; importation of Spaniſh wools, of Iriſh yarn,
c. &c. We are told, that when this lift was read over in the
Houſe of Commons, a member (Mr. Hackwell) loudly exclaimed,
"Is not bread in the number ?" "Bread," faid
"Bread,” ſaid every one with
aſtoniſhment!" Yes, I aſſure you,” replied he, " if affairs go on at
"this rate, we ſhall have bread reduced to a monopoly before next par-
"liament 104
101 See Stevens, p. 206.
12 See Comm. Journ. vol. i. p. 395. Lord Saliſbury however calculates, that there
were twenty fubfidies, and thirty-nine fifteenths, granted to Elizabeth.
103 Hift. vol. v. p. 475.
294 D'Ewes, p. 648. Hume, vol. v. p. 439. Parl. Hift. vol. iv. p. 462.
S 2
It
132
HISTORY OF THE PUBLIC REVENUE
Extortions.
Burleigh's
It is eaſy to ſee the confequences of fuch a fyftem. Trade was
abandoned, and induftry almoft totally extinguiſhed.
"It bringeth
(faid a member in the Houfe) general profit into private hands, and
"the end is beggary and bondage." A ſingle patent, contrived for the
advantage of four rapacious courtiers, occafioned the utter ruin of feven
or eight thouſand induftrious fubjects 10. This abufe, and the manner
in which fo deftructive a prerogative was exercifed by Elizabeth, is one
of the greateſt blots in her reign. In vain did parliament interfere.
The haughty fovereign would not permit her prerogative to be called
in queſtion; and the more the Houfe endeavoured to procure a redreſs
of the grievance, the more refolutely was it maintained. In a ſpeech
from the throne, at the diffolution of one of her parliaments, whofe
conduct ſhe particularly refented on that account; .fhe told them, "That
“with regard to the patents, fhe hoped that her dutiful and loving
"ſubjects, would not take away her prerogative, which is the chief
"flower in her garden, and the principal and head pearl in her crown
"and diadem, but that they would rather leave the matter to her
difpofal." However, not long after, the iffued a proclamation for
repealing fome of the moſt obnoxious monopolies; particularly on
falt, oil, ftarch, &c. for which the received the folemn thanks of her
Commons
(6
106
Nor is it poffible totally to acquit this high-ſpirited princeſs, of illegal
extortions from her fubjects. She is faid to have exacted, every new-
year's-day, above 60,000 crowns, in gifts from her dependants; and
to have raiſed 100,000 crowns yearly, by granting licences to Roman
Catholics and Non-conformists, exempting them from the penalties
which the law impofed upon fuch as neglected to attend the public
fervice of the eſtabliſhed church. She alfo made ufe of the prerogative
which the crown enjoyed, of laying an embargo on merchandiſe, if not
to extort money, like her predeceffor Mary, at leaſt, to procure, at an
eafy rate, the commodities ſhe wanted
107
The power of the crown during the reigns of the houfe of Tudor,
fyftem of ex was fuppofed to be ſo abfolute and uncontrouled, that Burleigh, the
tortion.
10; D'Ewes, p. 242.
106 See her famous ſpeech upon that occafion, D'Ewes, p. 659.
17
*7 Strype's Annals of the Reformation, vol. i. p. 28.
}
ableft
1
OF THE BRITISH EMPIRE.
133
ableft ſtateſman of his time, actually built upon that idea, a fyftem of
extortion, which it is hardly poffible to credit. In a ſpeech he made to
the queen
and council, he propofed the erection of a new court, to be
entruſted with a general inquifitorial power over the whole kingdom,
for the better correction of abufes. By fuch methods, he afferted,
Henry VII. had added greatly to his revenues; and he expreffed his full
expectations, that ſuch an inſtitution would procure a greater acceffion
to the royal treafure, than Henry VIII. derived from the abolition of
the abbies, and the feizure of the property of the church 18.
The pro-
pofition was wifely rejected; but it is not a little fingular, that fuch a
plan fhould ever meet with the ſmalleſt countenance from fo refpectable
a character.
loans.
Elizabeth continued the practice, of which fo many examples had Compulfive
been ſhown by her predeceffors, of extorting loans from her fubje&s,
and of impriſoning fuch as ventured to refufe, and although fhe took care
to repay them when it was in her power (a very unuſual ſtep with the
former fovereigns of England), yet the money that was borrowed, lay
in the hands of the crown, without intereft, and confequently, fuch
loans were productive of confiderable loſs to thoſe from whom they
were exacted. By an act in the ſecond year of Richard II., the preroga-
tive of exacting loans had been recogniſed by parliament; at leaſt, a
clauſe was inferted, exempting none who could not produce a reaſonable
excufe; the juftice of which, the king alone had the power of deter-
mining. Indeed, this right was fuppofed to be fo firmly eſtabliſhed
in the crown, that Burleigh propofed to demand a general loan from
the people, equivalent to a ſubſidy, which, if the money was not repaid,
was in fact impofing taxes without the fanction of parliament 109
loans.
The fovereign of a country, which has fince borrowed fo many mil- Foreign
lions, was then occafionally obliged to apply to Hamburgh, Cologn,
Antwerp, and other wealthy cities on the continent, for fmall loans.
The intereſt ſhe paid was generally from 10 to 12 per cent.; and the
was farther obliged to furniſh the additional ſecurity of the city of Lon-
don, and fometimes the perfonal bonds of her principal minifters,
before her wants could be fupplied. But the wealth of her kingdom.
108 Strype's Annals, vol. iv. p. 234. Suppoſed to have been anno 1594.
199 Hume, vol. v. p. 460.
4
increafing,
134
HISTORY OF THE PUBLIC REVENUE
Flunder.
Calais.
increaſing, and her credit being fully eſtabliſhed by her frugality, the
punctuality and fuccefs, fhe was at laſt enabled to procure at home the
money the required, and was no longer dependent on foreigners for
pecuniary affiftance "
In the courfe of the war against Spain, many important enterpriſes
were undertaken at the expence of private adventurers, in which Eliza-
beth took a part, in common with her fubjects, and received her pro-
portion of the plunder that was captured. On fome occafions, the
fpoil was very unequally divided; particularly anno 1592, a valuable
ſhip having been taken by Raleigh and Frobisher, fuppofed to be worth
200,000l., twenty thousand pounds, a tenth of the prize, was all that
the queen was entitled to from her fhare of the veffel. But this ſum
was far from being fatisfactory, and they were glad to give her 100,000l.
in full of the claims, to which they would probably have been made
liable, in favour of ſo potent a partner in the adventure
111
It may be proper here, to mention her receipt of a fum of money,
which it is not known whether it ought to be placed under the head of
a foreign loan, or of foreign plunder. Anno 1571, fome merchants of
Genoa had contracted to tranfport 400,000 crowns, for the uſe of
Philip's forces in the Netherlands. The fhips, on board of which the
money was put, being attacked by fome French privateers, were glad
to take ſhelter in the Engliſh ports; and the money was feized by
Elizabeth, under the pretence that it was the property of the Genoeſe
merchants, from whom fhe would borrow it herſelf, having occafion
for money.
This circumftance not only greatly contributed to the war
that aroſe between Spain and England, but was alfo attended with other
important confequences; for the want of this fupply, being likely to
occafion a mutiny in his troops, reduced the duke of Alva to the ne-
ceffity of raifing money, by methods of fo oppreffive and tyrannical a
nature, that it gave rife to the revolt of the Dutch, and the independence
of their republic
II2
The poffeffions of England on the continent had been reduced, pre-
vious to the acceffion of the houfe of Tudor, to the town and incon-
fiderable territories of Calais; and even that laft remnant of the con-
"Stevens, p. 246,
**2 Hume, vol. v. p. 194.
111 Camden, p. 466. Hume, vol. v. p. 466,
quefts
OF THE BRITISH EMPIRE.
135
1
queſts made by the Henrys and the Edwards, had been recovered by the
French, during the diſgraceful adminiſtration of Mary. It was a town
which France was determined not to give up, and which England could
not avowedly relinquifh. But as both parties were equally defirous of
peace, it was at laft agreed upon, that the French fhould hold Calais for
the ſpace of eight years, at the end of which it was to be reſtored, under
the penalty of 500,000 crowns; the receipt of which was not to deſtroy
Elizabeth's title to that poffeffion. Five hoftages were given for the
performance of this article, who were afterwards releaſed for the fum Anno 1563.
of 220,000 crowns. Her claim, fuch as it was, fhe ftill retained ; and
at the end of the ſtipulated period, care was taken to demand the reſtitu-
tion. The French, however, found pretences fufficiently plaufible to evade
their engagement; and the queen thought it better to fubmit to the lofs,
than to proſecute fo doubtful a title by a war, equally dangerous and
expenſive, and at that time peculiarly unfeafonable "3.
her income.
It is evident, from this long enumeration of the various fources which Amount of
contributed to fill the coffers of Elizabeth (many of which were of a
very precarious and uncertain nature), that it is impoffible to eftimate
what was the real value of her annual income. Voltaire imagines, that
it exceeded 600,000l. a year 4. Hume, on the other hand, conjectures,.
that it fell much fhort of 500,000l. ", and there is every reafon to give
full credit to the latter computation.
A particular account is ftill extant, of the fpecie coined during the Specie
reign of Elizabeth, to the value of 5,513,7177. 11. 14d. of which coined,
4,718,579 l. 2 s. 8d. was in filver, and only 795,1381. 8 s. 4 d. in
gold. This includes filver to the amount of 85,6467. 19s. 5 d. em-
ployed in coining the bafe money, iffued for the ufe of Ireland
3
116
We are told, that the office of poftmafter-general exifted in England' Poſt office.
during this reign". Some poſt-houſes confequently muſt have been
erected. But the poſt-office was productive of expence, and not of re-
venue, until the time of the commonwealth.
The heavy burden of maintaining the poor, which it was imagined Poors rates.
would have been provided for by voluntary contribution, or would have
113 Carte, vol. iii. p. 460.
's Hift. vol.. v. p. 474•
17 Camden, p. 261..
114 Gen. Hift. vol. iii. p. 85. part v. c. 13.
116 Folkes on Coins, p. 65, Note,
፡
fallen,
136
HISTORY OF THE PUBLIC REVENUE
Debts.
Subfidies re-
mitted and
refuſed,
Voluntary
contribu-
tions.
IIS
"
fallen, either on the poffeffors of the church-lands, or on the fecular
clergy became in the reign of Elizabeth, a general tax upon the
community. The fituation of the poor, before the acts were paffed for
their relief, is repreſented as moſt deplorable; and even after they had
a legal title to fupport, the affeffiments were fo low, that it is faid many
periſhed for want " Befides the taxes levied for the relief of their
parochial poor, every pariſh was alſo charged from two to eight ſhillings
a week, for the maintenance of fick and wounded foldiers and feamen,
for whom there was then no regular provifion.
119
Elizabeth left behind her debts to the amount of about 400,000/
which were paid by her fucceffor 120. But that fum was much more than
compenfated by the claims to which, at her death, he was entitled.
The king of France owed her 450,000l. The ftates of Holland were
indebted in no lefs a fum than 800,000l. a confiderable part of
which was paid; and the fubfidies due Elizabeth, when she died,
amounted to about 350,000l. which James received foon after his
acceffion 21
This reign is diftinguiſhed for the laft example in the Engliſh hiftory,
of a fubfidy being rejected by the fovereign, when offered by the peo-
ple; and Elizabeth publickly declared, on that occafion, that the con-
fidered it to be the fame thing, whether the money they offered was in
the pockets of her fubjects, or in her own exchequer. A fentiment
equally expreffive of the ftrength of her judgment, and of her confi-
dence in her fubje&s; and Anno 1585, when the Commons offered
her a benevolence, the nobly refufed it, declaring, that he had no oc-
caſion for money at that time ¹²².
122
It is a pleafing circumftance to be able to relate, the grateful return
which Elizabeth met with from her fubjects, for the general popularity
of her government, and the great wiſdom and fuccefs of her adminiftra-
tion. When her crown was in danger, in confequence of the warlike
preparations of Philip king of Spain, who fitted out, what he called, an
Invincible Armada, for the conqueft of England, and the capture of
It appears from D'Ewes, p. 561, that a bill for relieving the poor out of impro-
priations, and other church livings, was loft by twenty-nine votes. The Ayes were 117,
the Noes 146.
"Stevens, p. 254, 255. 262.
Parl. Hift. vol. v, p. 147.
12 Reſtauranda, p. 35. Frag. Reg, p. 12.
I
เว
12 Parl. Hift. vol. v. p. 219.
2 D'Ewes, p. 494-
I
Elizabeth,
(
OF THE BRITISH EMPIRE.
137
Elizabeth. The ſpirit and loyalty of the people are hardly to be con-
ceived. The nobility and gentry fitted out forty-three ſhips at their
own expence. London, and the other principal ports in England,
voluntarily equipped double the number of veffels that was demanded.
Formidable armies were collected without difficulty or murmur. Every
direction given for the better ſecurity of the coaft, met with a prompt
and cheerful obedience; and each perfon, in proportion to his ability,
furniſhed pecuniary affiftance, and gloried in an opportunity of diſplay-
ing his attachment to his fovereign, and his zeal to preferve the liberties
and independence of his country.
of this chap-
Such were the different modes adopted under the government of the Conclufion
houfe of Tudor, for raiſing a revenue. During this æra, ſome progreſs ter.
was made in finance; the advantages of public credit, and of a ſtrict
adherence to public faith, were diſcovered by the politic and fagacious
miniſters of Elizabeth; and the cuſtoms, and other branches of the
revenue, were rendered more productive. But the period is parti-
cularly remarkable, for laying the true foundation of the poverty of the
crown, and of the confequent power and importance of the commons.
When the emperor Charles V. was told, that Henry had ſuppreſſed the
monaſteries, he judiciouſly remarked, that the king of England had
killed the hen that laid him the golden eggs. In fact, the opulence of
the church was always a fure reſource for the crown to look up to.
The clergy could hardly evade any burden the king thought proper to
impoſe. When, in addition therefore to the royal domains, the
property of the church was fquandered, the fovereign had nothing to
depend upon, but the affiſtance of the nation at large, through the medium
of its repreſentatives; and Elizabeth's fucceffors found, that ſuch aſſiſt-
ance could not be procured, without redreffing the grievances of the
people, and agreeing to fuch farther fecurity for their rights and privileges,
Las they thought proper to demand.
T
CHAP.
138
HISTORY OF THE PUBLIC REVENUE
CHA P. IX.
Of the Revenue of England, from the Acceſſion of the
Houfe of Stuart to the Revolution 1688.
TH
HE acceffion of the houſe of Stuart to the throne of England, and
the confequent union of the two crowns, it was imagined, would
have been at once attended with the moſt beneficial confequences to
both kingdoms. But, unfortunately, fuch happy proſpects were blafted,
firſt, by the imbecility of this monarch's character, and afterwards, by
the infatuation and obftinacy of his fucceffors. Whereas, if James had
acted with vigour and prudence, and if his pofterity had avoided the
rocks of defpotiſm, and of tyranny, on which they ſplit, theſe kingdoms
might have arrived at their full maturity and ftrength at a much earlier
period. But the domeftic quarrels of England, befides retarding her
progrefs towards maturity and ftrength, enabled France to acquire a
degree of power and influence which could not afterwards be checked
without the utmoſt efforts; and the ufual revenue of the country being
inadequate to ſuch exertions, the foundation was unfortunately, but
almoſt neceffarily laid, of that heavy load of debt with which we are now
incumbered.
In addition to the weakneſs of this monarch's conduct, and the high
notions which both he and his fucceffors entertained of the inherent pre-
rogatives of the crown, other circumftances concurred to retard the
Britiſh monarchy in its progreſs towards its meridian ſtrength and glory.
The former jealoufy and rancour between the Engliſh and the Scots ſtill
continued; and every plan of uniting the two countries encountered,
particularly on the part of the English parliament, much obftruc-
tion. The attention of both kingdoms was alſo taken up by religious
controverſies; and, at laſt, a fatal conteſt aroſe with regard to the re-
venue of the crown, and the franchiſes of the people, and indeed,
reſpecting every branch of the conftitution, however important or
minute; and the confequence was, a feries of calamities, which even the
hiftory of England can hardly parallel.
3
The
OF THE BRITISH EMPIRE.
139
:
The circumftances have already been pointed out, which had con-
tributed to diminish the income of the crown, arifing from the aliena-
tion of the royal domains, and the deftruction of that ancient ſource of
revenue, the great wealth and property of the church, which, after
having been ſeized by the fovereign, was wafted, without leaving a
remnant to enrich the exchequer. But the royal income rapidly
diminiſhed, not only in nominal amount, but alſo in real value. After
the diſcovery of America, fpecie became every day more plentiful in
every part of Europe; and the confequence was, fuch an addition to
the price of all commodities, as rendered the fame revenue much leſs
'efficient than formerly. Thus the crown was reduced to poverty, at a
time when it was natural for the fovereign to afpire to an equality, in
point of magnificence and expence, with the other monarchs of
Europe; or, at leaſt, to preſerve the fame appearance when compared
to his own fubjects, by which the rank and dignity of his predeceffors
had been fupported. Whilft theſe circumſtances led the crown to wiſh
for a great and independent revenue, the people reluctantly ſubjected
themſelves to every unuſual burden; and were determined, unleſs in a
legal manner, by the votes of their repreſentatives in parliament, not
to part with any ſhare of the property acquired by their own induſtry
and labour. Learning alſo began to flouriſh, and to be very generally
diffuſed; the rights of mankind, both to civil and religious liberty,
were every day more frequently difcuffed, and the more they were
examined, appeared the clearer and better founded; and from natural
differences of opinion, between the crown and the people, as to thoſe
important articles, difputes arofe, which, in the reign of this monarch's
fucceffor, were attended with circumftances equally fingular and im-
portant.
Revenue of JAMES I.
It might naturally be expected, that a prince who had been fo long
accuſtomed to live upon the flender revenue which Scotland could then
afford, would have carried with him to the throne of England ſome in-
clination to frugality; but the contrary was viſible during his whole
Hume, vol. vi. p. 47.
T 2
reign:
140
HISTORY OF THE PUBLIC REVENUE
1. Perfonal
expences.
2. Bounty to
favourites.
reign: and though, in confequence of his great care to avoid engaging
in wars, his expences were almoſt entirely of a domeſtic and perſonal
nature, yet they conftantly exceeded his income; particularly in the
year 1610, to the amount of 81,000 l.", though afterwards reduced in
1617, to 36,6171. a year³. The excefs, he trufted, parliament would
fometime or other ſupply, and therefore could hardly be prevailed upon
to make the neceffary retrenchments, or to eſtabliſh any economical
arrangement.
Expences.
Though this monarch is reprefented, by a great hiftorian, as but little
addicted to luxurious expences, yet it is difficult to reconcile fuch an
opinion with the events of his reign. He kept up three courts; one
for himſelf, another for his queen, and a third for his eldeſt ſon; being
at leaſt one more than had ever been maintained by any former king of
England. His brother-in-law, the king of Denmark, twice vifited the
court of London, and James was far from difcouraging the expences
which ſuch viſits neceffarily occafioned. The charges attending the
marriage of the king's daughter to the Elector Palatine, including the
portion of that princeſs, amounted to 93,278 l. a much larger fum than
had been expended by any of his predeceffors on a fimilar occaſion;
and this prince, who had not a fpark of avarice in his compoſition,
but loved delicate and luxurious living, was far from being fparing in
the expences of his table '.
It was at firſt imagined, that the king's prodigality to thoſe for whom
he entertained a regard, originated from national attachments. His in-
confiderate gifts and bounty to fome of the Scotch nobility and gentry
who attended him to England; and in particular, the unmerited favours
which he conferred on the infamous Car, earl of Somerfet, were attributed
2 Comm. Journ. vol. i. p. 395.
3 See an Abſtract, or brief Declaration of the prefent State of his Majefty's Revenue,
London, printed for M. S. anno 1651, p. 9. Reprinted in Sommer's Collection of
Tracts, 3 Coll. vol. ii.
4 Hume, vol. vi. p. 172.
s In Macaulay's Hiſtory of England, we have many inftances of this monarch's pro-
fufion. See vol. i. p. 22. 34, note 39. 65. 88. 104. 114. 153, &c.
to
こ
​OF THE BRITISH EMPIRE.
141
།
But James clearly de-
to a blind partiality for his countrymen.
monftrated, that he could be as profuſe to an Engliſh, as to a Scotch
favourite. His bounty to Villiers duke of Buckingham was unlimited.
This deſpicable minion, formed by nature, to be only the pageant of a
court, was raifed, at once, to the fummit of power, of honour, and of
wealth. The higheſt offices of the ſtate were centered in his perſon ;
the moſt important tranfactions were conducted according to his humour
and caprice; and, whilft his enemies were openly diſcountenanced,
thoſe who boafted of the moft diftant connection with himſelf, or his
family, were enriched with the moſt unbounded profuſion º,
The king was not contented with giving his favourites all the lucra-
tive employments of the ſtate, and confiderable grants from the royal
domains, but gifts in money, of great value, were alfo laviſhed on them.
In the first fourteen years of his reign, 424,469 1. were thus expended'.
One of his minions, Rich, afterwards created earl of Holland, happened
to whiſper in the king's preſence, how happy it would make him, to be
maſter of a ſum of money, amounting to 3000l. which a porter was
carrying to the treaſury; and in conſequence of ſo trivial a circumſtance,
the whole load was given to him by his generous fovereign. It is faid,
by the Engliſh writers, that James did not make the proper diftinction,
between pounds Scots, and pounds Engliſh, and that lord Saliſbury
was unable to convince him of the immenſity of one gift, until he had
´artfully brought a confiderable part of the fum, in ſpecie, into his royal
prefence, when it appeared fo enormous, that the king, for once, ordered
his bounty to be diminiſhed.
•
Wales.
It has already been obferved, that in the reign of Henry III. his eldeſt 3. Prince of
fon, afterwards Edward I. had an income of only 15,000 marks; but
after the conqueft of Wales, the revenues of that principality, together
with the dutchy of Cornwall, and earldom of Chefter, were given to
the eldeſt ſon of the reigning monarch, to defray the charges of his
court. Theſe poffeffions yielded, in the time of Edward the Black
Prince, 99827. 12 s. 7 d. which was then a very confiderable income.
But James exceeded all his predeceffors, in his liberality to the heir
6 Hume, vol. vi. p. 79.
7 Abstract, &c. p. 16.
8 Hume, vol. vi. p. 173.
9 Twelve pounds Scotch, make but one pound ſterling. The ftory may be feen in the
Hiftorical Narration of the firft fourteen years of King James, p. 11.
apparent :
142
HISTORY OF THE PUBLIC REVENUE
4. Ircland.
5. Palatinate.
apparent: for he beſtowed on Henry prince of Wales, his eldeſt ſon,
a clear revenue amounting to 51,415. equal to at leaft 150,000 /. of
money at this time. Henry, whofe death is much regretted by all the
hiſtorians of that reign, had given early indications of great application,
joined to the ftrongeft natural powers; and he feems to have been well
entitled to every poffible mark of his father's attention and liberality.
His premature death was therefore juftly confidered as a great national
lofs, it being more than probable, that his talents, equally fplendid and
popular, were better calculated than thoſe of his brother Charles, to pre-
vent the fatal diſtractions by which the conſtitution was overwhelmed.
During the reign of James, as well as of his predeceffor, Ireland con-
tinued to be a heavy load on the exchequer of this country.
At one
time, an army of 19,000 men was kept up there, whofe maintenance,
from the high pay which even the common foldiers received, amounting
to eight-pence a day, was not a little burthenfome. It was alfo neceffary
to tranſmit the money from England, in confequence of the low ſtate of
the Iriſh treaſury 10.
The Elector Palatine was induced, by his own ambition, and his re-
liance on the countenance and aid of the powerful monarchy of England,
to engage in a plan of adding to his former territories, the kingdom of
Bohemia; and when he proved unſucceſsful in this attempt, and was
even driven from his patrimonial poffeffions, he put the Engliſh nation
and its fovereign to very confiderable expences. James afferts in a
fpeech to parliament, that befides the voluntary contributions of the
English remitted to the Palatine, he had expended a very confiderable
fum in his caufe ". The king's pacific difpofition, and his confidence
10 Hume, p. 59. 178.
"What the fum actually is, is very difficult to underſtand from the obfcurity of the
following paffage: "I permitted a voluntary contribution to preſerve the Palatinate, which
<< came to a great fum; for that purpoſe, I borrowed alfo 75,000l. of my brother of
"Denmark, and now have ſent to him to make it up 100,000l. and all this have I done
"with the charge of embaffadors and otherwife, which hath rifen to an infinite ſum,
"which I have borne myfelf, and hath coft me above 200,000 l. in preferving the Pa-
"latinate from invading; finding no hope of the reft, befides 300,000l. and befides the
voluntary contributions." The King's Speech, 30th January, 1620. Franklyn's
Annals, p. 350. See an abftract of the fpeech in Latin, Lords Journals, vol. iii. p. 8.
in
OF THE BRITISH EMPIRE.
143
in his own ſkill in the arts of negotiation, had made him endeavour to
procure a reſtoration of the Palatinate, by means of a treaty; but find-
ing that mode ineffectual, he was obliged to have recourſe to arms, in
which he proved equally unfortunate.
12
Before the reign of Elizabeth, the navy, excepting in time of war, was 6. Navy.
not an expenſive department. In her time it amounted to 30,000 l.
But James was at firft particularly attentive to his fleet, and annually
expended 50,000l. in repairing and keeping up this bulwark of his
kingdom, exclufively of timber from the royal forefts, to the amount of
36,000l. He afterwards abated 25,000l. per annum in this im-
portant article "3.
13
beth's debts.
The only remaining material expence incurred by James, was, pay- 7. Eliza-
ing off the debts of Elizabeth, amounting to about 400,000l. being
money borrowed upon the credit of fubfidies, the produce of
which he received. Nothing can be more difgufting than to hear this
fum, and the charges of her funeral, made ufe of as ftrong arguments
with parliament, to augment their fupplies. In return for fuch a crown
as England, James ought furely to have defrayed, without notice or
complaint, the ſmall incumbrances of his generous predeceffor, and the
infignificant coſt of her interment.
Let us next confider from what fources his revenue was derived.
14
Refources.
Though almoſt every reign fince William the Norman fat upon the
throne, had been productive of fome diminution of the landed property
of the crown, yet it ftill continued to be of confiderable value. The
nominal rent was fmall (amounting at James's acceffion to the fum of only
32,000 l. per annum "). It was well known, however, to be worth more;
and indeed it afterwards yielded about 80,000 l. a year. An attempt was
înade, in the beginning of this reign, to procure a ſtrict entail of the
crown lands on the king and his fucceffors for ever: but a bill for that
purpoſe, though paffed by the lords, was rejected by the commons ;
12 Noy's Rights of the Crown, p. 8.
13 Parl. Hift. vol. v. p. 316.
Stevens, p. 272.
14 Noy's Rights of the Crown, p. 52.
1. Demefnes.
and
144
HISTORY OF THE PUBLIC REVENUE
2. Feudal
prerogatives.
3. Feudal
aids.
4. Cuſtoms.
and James, finding no obftruction to the fale of thofe lands, continued
the practice, and raiſed by that means no lefs a fum than 775,000l.
* S
The rights which the king enjoyed as lord paramount, ftill remained
a badge of the feudal flavery of the English. Purveyance in particular
was carried to fuch a height, that the officers of the crown compelled
the people to take for their commodities, whatever price they choſe to
offer"; and all the feudal prerogatives had become fo intolerable,
that parliament propoſed to ſettle an independent revenue on the crown
in their ſtead. An agreement was likely to have been entered into, at
the rate of 200,000l. a year"; when, in confequence of difputes be-
tween the king and his parliament as to other matters, the plan was ren-
dered abortive.
The reign of James furniſhes us with the laſt example in the Engliſh
hiſtory, of any aid being levied on the knighting of the king's eldeſt
fon, and the marriage of his eldeſt daughter. The act on which the
firſt claim was founded, though of a very old date ", had been frequently
carried into execution by James's predeceffors; and Henry, the prince
of Wales, was fuch a favourite with the people, and the whole was ma-
naged with fuch moderation, that it yielded a confiderable fum ". The
other tax on the marriage of James's daughter to the elector Palatine,
produced 20,500l. It is remarked, that a century had elapfed fince
this aid had been demanded; no opportunity having occurred fince the
reign of Henry VII. whofe eldest daughter Margaret was married to
James IV. of Scotland; in conſequence of which alliance, James himſelf
inherited the crown of England.
The firſt parliament that James affembled, granted him, according to
former practice, the duties of tunnage and poundage for life. But the
more productive this branch of the revenue became, the greater anxiety
did the crown feel to enjoy it in its own right, without the neceffity
of any application to parliament. Thence originated the diſpute fo
5 Brief Declaration, &c. p. 10.
16 For inſtance, in the beginning of the enfuing reign, it was complained of, that the
purveyors would only give fix-pence for a dozen of pigeons, worth fix fhillings; and
two-pence for a fowl, worth one fhilling and fix-pence in the market. Comm. Journals,
25th of May, 1626. vol. i. p. 864.
་
• Parl. Hift. vol. v. p. 264. 267.
19 £21,800. See Brief Declaration, &c. p. 10.
18
25 Edw III. c.
warmly
OF THE BRITISH EMPIRE.
145
warmly conteſted between James and his commons, with regard to the
power of levying cuftoms, and of adding to the rates of the duties that
were impofed 20. The payment of cuftoms by natives, at leaſt to any
amount, certainly originated in the grants of parliament; but the crown
had ſo long received theſe duties, that it began to confider the cuſtoms
as a permanent branch of its revenue. Both Mary and Elizabetlı
had ſhown James the example of altering the rates on fome particu-
lar commodities. The fame practice he intended to purſue, and to
carry to a confiderable height, though he was at firft cautious not to
give umbrage by any important alteration. But the commons took fire Anno 1610.
at the principle, foreſeeing to what lengths it might be extended;
and, indeed, paſſed a bill, aboliſhing theſe additional impofitions, which
the houſe of lords thought proper to reject". The next parliament was Anno 1614.
proceeding to take fimilar ſteps, when it was fuddenly diffolved; and
thus the difpute remained undetermined in this monarch's reign.
The amount of the cuſtoms was rapidly increafing. At James's ac-
ceffion they yielded only 127,000/, a year. The following is a ſtate of
their produce, anno 1613.
*
At the port of London {
Outwards
Inwards
£ 61,322 16
48,250 19
£ 109,572 18 4
In all the out ports
{
Outwards
Inwards
£25,471 1972
13,030 9
} 38,502 9 4
Total £148,075 7 8
And, towards the clofe of this reign, they amounted to about
$90,000%.
20
Among feveral treatiſes publiſhed upon this fubject, the beſt in ſupport of the prero-
gative of the crown, is, "The queſtion concerning impofitions, fully ſtated," by Sir
John Davis, his Majeſty's Attorney General. Printed anno 1656. And the beſt defence
of the rights of the people, "The Liberty of the Subject maintained againſt the pre-
tended Power of Impofitions." By William Hackwell. Printed anno 1641.
-2 Hume, vol. vi. p. 51.
U
The
146
HISTORY OF THE PUBLIC REVENUE
5. Grants.
The disproportion between London and the out-ports is very great;
and proves how confiderable a fhare of the commerce of this country
has uniformly centered in the capital.
It was afferted by the famous Lord Saliſbury, in a ſpeech to parliament,
that there are but three inftances in the English hiftory for 600 years,
prior to James's acceffion, of a fupply being refuſed by the commons
when requeſted by the fovereign"; and the firſt parliament that James
affembled was as frugal of the public money as any of its predeceffors,
and would grant nothing but tunnage and poundage. The king, find-
ing them determined, and being unwilling to have it ſuppoſed that his
parliament and he were at variance, took the ſtrange ſtep of fending a
meffage to the houſe, that he defired no fupply, and was refolved not
even to accept of a fubfidy", when every perfon knew, there was no-
thing he fo anxiouſly wished. The grants he received, during the
whole courſe of his reign, were only as follows.
A. D.
Year of
his reign.
Subs.
Fift.
1606
3
3
6
1610
7
I
I
1621
1624
18
2.
22.
3
O
3
10
FO
Theſe were all the fupplies granted by parliament; and of theſe, it is
faid by Hume, that the three fubfidies and three fifteenths, granted
anno 1624, amounting to about 300,000l., being paid to parliamen-
tary commiffioners, ought not to be ftated to the king's perfonal
account 24. But this idea has been fully refuted by the female hifto-
rian of this reign, who remarks that, though the commiffioners
received the money, yet they were totally ignorant how it was
22 Comm. Journ. vol. i. p. 395. Hume obferves, that Saliſbury was miſtaken in this
affertion. Vol. vi. p. 72
Note R.
23 Comm. Journ. vol. i. p. 246.
24 Vol. vi. p. 172.
5.
expended;
¡
OF THE BRITISH EMPIRE.
147
66
expended; and as they were obliged to anſwer all money draughts
made upon them by the crown, their power was merely nominal.
"One penny of this money (the king declared) fhall not be bestowed
"but in fight of your committees: but whether I ſhall ſend two thou-
fand, or ten thouſand, whether by fea or land, Eaft or Weft, by di-
"verſion or otherwife, by invafion upon the Bavarian, or the Empe-
"ror, you must leave that to your king"." It appears that a fubfidy
produced about 70,000, and a fifteenth about 36,500l."; confe-
quently, the whole parliamentary grants received by James, amounted to
about a million. To this, there are to be added about twelve fubfidics
from the clergy, which, at 20,000l. each, would produce 240,000l.;
and one of the clerical fubfidies was at the rate of fix, and not of four
fhillings in the pound; and therefore yielded 10,000l. additional.
One year with another, it is probable that he received, by parliamentary
and clerical grants, about 60,000l. per annum during the courſe of his
reign.
James had a price affixed to each rank of nobility, on the payment 6. Sale of ho-
of which a grant was made out. The dignities of Baron, Viſcount, nours.
and Earl, might be bought at the rate of ten, fifteen, and twenty
thousand pounds: and we are told of four earls who purchafed their
refpective patents, at the fum fixed upon, in one year". But the moſt
complete inſtance of this mode of raiſing money, either in the reign of
James, or, indeed, in the Engliſh hiftory, is the creation of baronets. It
is fuppofed, by our hiftorians, that this was a plan invented by Lord Sa-
liſbury: but it is more probable that the idea originated with Sir Ro-
bert Cotton, who drew up, anno 1609, an account of "the manner in
which the kings of England fupported and repaired their eftates.'
In this he remarks, that, "if his majefty would make a degree of
"honour hereditary as baronets, next under barons, and grant them
"in tail, taking of every one 1000l. in fine, it would raiſe, with eaſe,
"100,000; and, by a judicious election, be a means to content thoſe
"worthy perfons in the commonwealth, that by the confuſed admiffion
25 Macaulay's Hift. vol. i. p. 251.
1
25 See Brief Declaration, &c. p. 70 and 71. Fifteenths formerly produced lefs, on
account of the great deductions made for decayed towns.
27 Franklyn's Annals, p. 33.
U 24
❝ of
T
148
HISTORY OF THE PUBLIC REVENUE
7. Monopo-
lies.
28
The
"of many knights of the Bath, hold themſelves difgraced "."
plan was carried into execution anno 1611: each baronet, by way
of purchaſe for the honour, became bound to maintain thirty foot ſol-
diers for three years, at eight-pence a day each, to affift the king's troops
in the reduction of Ulfter in Ireland. The price confequently was
10957. Ninety-three were created, the fale of whofe patents yielded
98,550 1.29.
Among the other fources of diffention between James and his parli-
ments, that which refpected monopolies was of peculiar importance,
being equally connected with the commerce and the revenue of the
country. The king had annulled, of his own accord, all patents for
monopolies by which any fpecies of domeſtic induftry was fettered:
but all foreign trade, that of France excepted, was poffeffed by exclu-
five companies; and hence the navigation and commerce of the king-
dom, were every day fenfibly diminishing. "Thus" (in the ftrong ex-
preffions of Hume) "the trade of England was brought into the hands
"of a few rapacious engroffers; and all profpect of future improve-
ment was for ever facrificed to a little teinporary advantage to the
fovereign 20. Anno 162.1, a patent which had been granted to Sir
Giles Montpeffon and Sir Thomas Michell for licenſing inns and ale-
houfes, and another to Sir Edward Villiers, for the fole making of gold
and filver lace, came into difcuffion. The powers given to theſe paten-
tees were fo very exorbitant, and fo rigorously carried into execution,
that they naturally excited the indignation of parliament.. Yelverton,
the attorney-general, was fined 15,000l. for having drawn up the pa-
tents: Michell and Montpeffon were puniſhed by fines, confifcation,
66
30 99
29 This curious treatife is contained in a fmall volume, entitled, "Cottoni Pofthuma,"
printed anno 1672: and the very fame work, with fome trifling alterations and differences,
is printed anno 1715, under the title of "A Treatife of the Rights of the Crown, by
"William Noy, Efq. collected anno 1634." As Noy's work is printed feparately, I have,
in general, referred to it. But the work was certainly compofed in the reign of James I
and moſt probably by Sir Robert Cotton.. Dr. Smith, in his Life of Sir Robert Cotton,
fays, that it was drawn up at the defire of the Earl of Northampton, and that there are
two copies of it in the Cotton library, one in Latin, and the other in Engliſh, as publiſhed:
in the Pofthuma. See Carte's full Vindication of the Anfwer to the Byftander, p. 38.
29 Brief Declaration, &c. p. 11, Befides fome after creations..
30 Hume, vol.. vi. p. 23.
and
1
OF THE BRITISH EMPIRE..
149
and impriſonment; and even Villiers, though fupported by all the
credit of his brother the Duke of Buckingham, fuffered a fpecies of
baniſhment under the appearance of being employed in a foreign em-
baffy. At laſt an act was paffed, by which all monopolies were Anno 1624
condemned as contrary to law, and the known liberties of the people":
An act which ought for ever to have put an end to fo deftructive a
grievance.
As early as the year 1604, James had begun the dangerous practice. 8. Loans
of compelling his fubjects to lend him money on the fecurity of the
privy-feal: but it is not known how much he then procured, or whether
any part of it was repaid". Two hundred thouſand pounds were af-
terwards extorted under the fame pretence. James's opinion on the
fubject, he took no pains to conceal: for when the commons peti-
tioned, that no man ſhould be enforced to lend money, or to give a
reaſon why he would not, the king returned for anſwer, that in matters.
of loans, he would refufe no reaſonable excufe; but that he did not
wish to have his conduct directed by precedents drawn from the reigns
of ufurping princes, or a people too bold and wanton³+
น
lences.
James exacted, anno 1613, a fum to the amount of 52,000l. under 9. Benevo-
the name of a benevolence; but ſo ſmall an advantage was certainly no
compenfation for the odium and unpopularity of the meaſure. Nor was
he much more fucceſsful in his fecond attempt: for though the cafe was
faid to be fo urgent that it could not brook the delays that would attend
affembling the parliament; and though it was collected to fupport the
popular cauſe of the Elector Palatine, yet the people, anxious to dif-
courage fo pernicious a practice, at firft very flowly and reluctantly
contributed 35.
The neceffities to which this monarch was reduced, made him con- 10. Money
clude a treaty with the States of Holland on terms, in a pecuniary view,
31 Parl. Hift. vol. v. p. 382.
32
21 Jac. cap. 3.
Hume, vol. vi. p. 108.
33 Stevens, p. 269.
34 Macaulay's Hift. vol. i. p. 60.
3; This benevolence became at laft more productive. One Barnes, a citizen of Lon-
dón, who refuſed to contribute, being ordered to prepare
to Ireland, had the méanneſs to ſubmit to pay his quota;
tured to deny his proportion. See Hume, vol. vi. p. 140.
himself for carrying a diſpatclt
and no one afterwards ven-
Note G,.
from the
Dutch
indeed,
150
HISTORY OF THE PUBLIC REVENUE
indeed, rather beneficial to himſelf, though, on the whole, not a little
favourable to the New Republic. It has already been ftated, that the
Dutch were indebted to Elizabeth to the amount of 8c0,000/ Of
this fum 200,000l. had been paid to James, and he was to receive the
remainder at the rate of 40,000l. per annum, until the whole was
diſcharged. But the payment depended upon a very uncertain contin-
gency, namely, the continuation of a truce concluded between Spain
and the United Provinces. The politic Elizabeth had been put in poſ-
feffion of the important fortreffes of Flufhing, the Brille and Ramme-
kins, as a fecurity for her debt: but the expences of the garrifons
(which England was obliged to fupport) amounted to 26,000l. a year:
confequently 14,000l. was all the clear profit that accrued from the an-
nual payment; and the whole fum which the king could poffibly re-
ceive, in the ſpace of fifteen years, after defraying the neceffary
charges, was only 210,000l. The Dutch, however, being anxious
fully to eſtabliſh their independence, which remained infecure, whilft
theſe important fortreffes, the very keys of their country, continued in
the hands of England, offered to take the garrifons into their own pay,
and to give James 250,000l. for the immediate poffeffion". The
June 6, 1616. terms were accepted; and from the day on which thefe cautionary
towns were evacuated, the complete eſtabliſhment of the Dutch repub-
lic may be dated. Nor was this the only money that James inherited
from his predeceffor. He alfo received 60,000l. of the debt which
Henry IV. of France owed to that princeſs".
11. Licence
for fishing.
12. Fines.
Anno 1608, the Dutch were compelled to pay an acknowledgment
for the liberty of fiſhing on the Britiſh coafts: a fource of revenue,
which was attempted to be more fully enforced during the enſuing
reign.
The laft fource of James's wealth aroſe from the heavy fines
which it was then cuſtomary to inflict. Forty thouſand pounds were
impofed upon the earl of Northumberland, and the lords Mordaunt
and Stourton, who were fufpected of having fome knowledge of the
famous gunpowder plot, and of concealing it from the king and his
minifters. Sir John Bennet, judge of the Prerogative Court, was fined
35 Hume, vol. vi. p. 8o.
37 Brief Declaration, &c. p. 11.
20,000%.
OF THE BRITISH EMPIKE.
151
20,000 1. The celebrated chancellor Bacon was fentenced to pay
40,000l. which however was remitted. The earl of Suffolk, who held
the office of lord high treaſurer, was fined 30,000l. by the court of
Star-chamber; and the earl of Middlefex, in confequence of a parlia-
If thefe
mentary impeachment, was condemned to pay 50,000l.
fines had been all exacted, they would have yielded the fun of
184,000l. and would have proved no fmall addition to this monarch's
impoverished exchequer 3.
;
38
his revenue, -
A particular account has been publiſhed of James's revenue, during Amount of
the first fourteen years of his reign, from which it appears, that his
ordinary income did not exceed 450,8637.: that the extraordinary
fums he had received during that time, amounted to 2,200,000l. and
that his ordinary diſburſements exceeded his permanent income 36,617%.
a year 39. Anno 1610 lord Saliſbury declared in parliament, that the
king was burdened with a great and urgent debt of 300,000. His in-
come, from all the different fources above enumerated, was probably
about 600,000l. though his permanent revenue, including the grants
of parliament, could not much exceed 500,000l. a year; efpecially, as
during the latter part of his reign, he had fome reafon to complain of
But that fum was fufficient to carry on
the parfimony of his commons.
the government of England in thoſe days, under a frugal monarch, and
in peaceful times, though very inadequate to the fplendid manner in
which James wished to live, and to thofe plans of hoftility againſt the
houſe of Auftria, into which the Commons would willingly have plunged
him.
lands.
Auno 1624.
The ſcheme afterwards profecuted by the long parliament, of raifing Church
money, by aboliſhing the order of biſhops, and felling the lands belong-
ing to the church, was firſt planned in the reign of James, and at one
period was not a little encouraged by his favourite Buckingham 0. But
the views and politics of the court, upon Charles's acceffion, took a very
oppoſite direction.
"
40
3 From the brief declaration of his majeſty's revenue, p. 11. it appears, that many cf
thefe were compounded for fmall fums, making in all about 16,000l. to which there is to
be added 4000 l. of fines for new buildings in and about London.
39 An Abſtract, or brief Declaration of the prefent State of his Majesty's Revenue,
P. 5, and 9.
+ Hume, vol. vi. p. 142. Macaulay, vol. i. p. 230.
蕊
​The
152
HISTORY OF THE PUBLIC REVENUE
Lottery.
Coin.
The first lottery to any amount ever known in England, at leaft
-drawn under the fanction of public authority, was in this reign. Thẹ
profit of it was principally dedicated to the expences attending the eſta-
blifhment of onr fettlements in America", to retain the dominion of
which, the produce of fo many lotteries, loans and taxes, has of late
been ineffectually expended.
The quantity of fpecie coined in the reign of James, was about
5,432,000l. of which 3,666,000l. was in gold, and only 1,765,000 l. in
filver 42
It ftill continued to be the practice to iffue fome bafe money
for the ufc of Ireland.
(6
.66
66
CC
It is impoffible, in this place, not to regret the want of a performance
which lord chancellor Bacon intended to compofe upon the finances of
England. In a letter to king James, dated 2d January 1618, he fays,
"God having done fo great things for your majefty, it refteth that you
"do fo much for yourſelf, as to go through (according to your good
beginnings) with the rectifying and fettling of your eftate and means,
"which only is wanting: hoc rebus defuit unum. I therefore, whom
only love and duty to your majefty, and your royal line, hath made
a financier, do intend to prefent unto your majefty, a perfect book of
your estate, like a perſpective-glaſs, to fhew your eſtate nearer to
your fight, befeeching your majefty to conceive, that if I have not
"attained to that that I would do in this which is not proper for me
"in my element, I fhall make your majefty amends in ſome other
"thing in which I am better bred +3." It does not appear that this
promiſe was ever fulfilled; and the only valuable work of this great.
author, connected with finance, at this time known, is an account of
the lately erected office of Compofition for Alienations, faid to have
been compofed in the reign of queen Elizabeth, about the end of the
year 1598; which, though not written upon an important branch of
revenue, yet fully proves what this great genius was capable of effect-
ing, had he dedicated his time and his abilities to a full inveſtigation of
the extenfive fubject he had propofed.
41 Mort. vol. ii. p. 512.
43 99
42 Folkes on Coins.
43 Bacon's Works, fol. edit. vol. iv. p. 673. Perhaps, the "Brief Declaration of
the prefent State of his Majefty's Revenue," was drawn up to affift this diftinguiſhed
author in the taſk he had undertaken.
CHARLES
OF THE BRITISH EMPIRE.
¥53
CHARLES I.
It is difficult to judge impartially of the important events which took
place during the reign of this unfortunate monarch.
On the one hand, when we contemplate Charles's private cha-
racter and deportment, we are apt to confider the multiplied charges
against him as malicious and ill-founded, and can hardly be per-
fuaded, that an affectionate husband, an indulgent parent, and a gene-
rous mafter, could by any means be converted, as his enemies are apt
to repreſent him, into a rapacious tyrant, determined to pillage the
property, and to trample on the rights and privileges of his fubje&s.
But on the other hand, if our attention is ſolely fixed upon public tranſ-
actions, we naturally run into a very oppofite extreme.
Even Hume,
who has defended this prince's conduct with fubtlety, ability, and
perfeverance, does not fcruple to confefs, that Charles affumed powers
incompatible with the principles of a limited government; and that his
diſaſters ought to be afcribed, neither to the rigours of deftiny, nor to
the malignity of his enemies, but to his own precipitancy and in-
difcretion 44.
Theſe topics, however, are better fuited to a political, than to a
financial hiftory of England; nor is it propofed to enter into the va-
rious important queftions agitated at that time, excepting fo far as they
may be connected with, the particular object of this work.
1. Expences.
Though Charles, at his acceffion, inherited a crown and kingdom
apparently in the moſt flouriſhing fituation, and enriched, during the
courſe of his father's peaceful, but inglorious adminiſtration, yet he had
many difficulties, both foreign and domeftic, to encounter.
Spain.
The conqueſt of the Palatinate, and the injurious manner in which War with
it was pretended the court of Spain had acted, whilft Charles's marriage
with the infanta was negotiating, had occafioned, not only a rupture
with that powerful kingdom, but a war with Ferdinand II. emperor of
44 Hift. vol. vi. p. 472.
X
Germany,
x54
HISTORY OF THE PUBLIC REVENUE
2. War with
France.
3 War with
Scotland.
Germany, one of the ableſt and moſt powerful monarchs that ever ſat
upon the Imperial throne: and the king declared to parliament, that it
would require at leaft 700,000l. a year to carry on thefe hoftilities
effectually 45.
Though Charles was baffled in all his attempts againſt the emperor
and the Spaniards; though he had found how unwilling his par-
liaments were to grant him fupplies; and how difficult, if not danger-
ous, it was to raiſe money by other means; and though his connection
with the Houſe of Bourbon ought to have rendered him cautious of
rafhly entering into a conteft with that powerful family, unleſs on
grounds of great weight and moment, yet hurried on by the capricious
Buckingham, he ventured to engage in a war with France, even be-
fore hoftilities againſt Spain were concluded. This enterprize alone,
was much beyond the impoverished ftate of Charles's finances. An
expenſive expedition, however, was undertaken to the Hfle of Rhe;
and five fubfidies granted by parliament, anno 1628, were expended
in an attempt to relieve Rochelle, which, by the artifices of the Engliſh
court, had been drawn into a rebellion. But Charles was unfuccefs-
ful in every foreign enterprize he undertook: and when a peace was
concluded, inſtead of ſecuring terms of oblivion and indemnity to the
unhappy Huguenots whom he had pledged himfelf to fupport, he aban-
doned them to the mercy of their fovereign, after fruitlessly, but it is
probable, feebly attempting to procure fome ftipulation in their fa-
vour 46
The înglorious foreign wars into which Charles had entered, were ter-
minated by ſeparate treaties of peace. The firſt was concluded with France,
anno 1629; the ſecond with Spain, anno 1630; and for about ten years
afterwards Charles governed his dominions in peace, and managed his
own revenue, together with the fums which he exacted from his fub-
jects, with fuch a rigid oeconomy, that he not only paid off the debts.
45 Hume, vol. vi. p. 206.
45❝
"Les Reformes de France n'y furent point compris. Une fi grand infidelité après
"des paroles authentiquement données, et fouvent reiterées, fera une fletriffure eternelle
" à la memoire de l'infortuné Charles I." Vaffor Hiftoire du Regne de Louis XIII..
tom. vi. p. 110.
he
OF THE BRITISH EMPIRE.
155
1
he had contracted during the Spaniſh and French wars, but alſo con-
trived to amafs treaſure to the amount of about 200,000l. Perhaps
this circumſtance gave him fome encouragement to engage in an en-
terprize to which all his misfortunes may be afcribed. Impelled by
deference for his clergy, and perhaps by a real conviction of its im-
portance, he refolved to eſtabliſh a fimilarity in ecclefiaftical govern-
ment and ceremonies throughout all his dominions; and in particular
to introduce a liturgy into Scotland, however obnoxious to the natives
of that country. The Scots, ftrongly attached to the doctrines and dif-
cipline of Calvin, determined to oppofe a fyftem wbich they confidered
as equally fubverfive of found religion, and contrary to facred au-
thority. No obftacle, however, could alter the king's reſolution: and
though very moderate conceffions at firft would have appeafed the tu-
mults in Scotland, yet conceffions were never made until it was too late,
and until time had ripened new demands, which were as refolutely in-
fifted on. Twice did Charles put himſelf at the head of formidable fleets
and armies for the reduction of Scotland; but in vain: for the Scots
acted with equal valour and prudence, and the Engliſh in general re-
luctantly ſupported his attempt, juftly conjecturing, that the conqueft of the
Scots would prove a prelude to the utter ruin of their own liberties. The
expence attending theſe hoftilities, reduced the king to fuch diſtreſs,
that he found it neceffary again to have recourfe to parliament; and con-
ceffions were extorted from him, which enabled the commons to trample
upon the crown, and emboldened the army they had raiſed, to deſtroy
both the king and the conſtitution.
pences.
To the credit of Charles it is to be remarked, that he fpared no ex- 4. Naval ex-
pence to render his navy formidable. At fea, he had no rival in
Europe. The Dutch were compelled to pay 30,000l. for the liberty
of fiſhing on the Britiſh coafts; and Africa, for the first time, felt the
maritime force of this country: Sallee, the principal receptacle of the
Turkish pirates, being deftroyed by an Engliſh fquadron ". Even the
mound which Richelieu erected across the harbour of Rochelle, was a
confeffion that it could never be conquered by the arms of France,
* Macaulay, vol. ii. p. 228.
X 2
whilſt
རྗ
156
HISTORY OF THE PUBLIC REVENUE
5. Perfonal
expences.
6. War with
parliament.
whilſt it remained acceffible to the powerful fleets of which England
was then miſtreſs 48.
This monarch, with all his frugality, affected much the state and
fplendor of a king. He kept up twenty-four palaces, all of them fo
completely furniſhed, that when he removed from one to another, he
was not obliged to tranſport any article of furniture along with him.
His collection of pictures was the moſt valuable in Europe, and he
ſpared no expence, nay he rivalled Philip IV. of Spain, the maſter of the
Indies, in endeavouring to engrofs the moſt valuable productions of
the ableft artiſts “9.
49
It has been much controverted, to whom the odium ought to be
aſcribed of the fatal rupture between this monarch and his parliament.
Both parties had grounds fufficiently plaufible at the commencement of
the difpute, to juſtify their proceedings. The king had to plead the
arbitrary ſyſtem of government practiſed by his immediate predeceffors;
whilft the commons, with juſtice, urged more ancient precedents favour-
able to the liberties of the people, and indeed the unalienable rights of
natural freedom. In the progrefs of the conteft, as might naturally be
expected, both were equally to blame. The commons cannot well be
defended, for not endeavouring, in the first place, to gain the king, by
foothing arts, rather than having recourfe to violence; and the pro-
poſals which they made in the earlier part of the war, were too harſh
and rigorous. But it can hardly be denied, that the illegal means which
the king adopted for raiſing money; the dangerous and exorbitant
prerogatives which he claimed; and the tyrannical manner in which
both he and his minifters acted, " rendered an oppofition to the
"meaſures of the crown not only excufable, but laudable in the
people 50. "
16
Let us next confider from what fources his income was derived.
48 The French had then no idea of rivalling England at fea. It appears from Le
Vaffor's Hiftoire du Regne de Louis XIII. Liv. xxv. that the fleet of France, at the
fiege of Rochelle, amounted only to about forty veffels, and the Spanish fquadron
to thirty-fix more, but very ill equipped. The fuperiority of the English fleet, when it
amounted only to feventy fail, is acknowledged by the king's minifters. Tom. v.part 2.
p. 763, 764. But it was afterwards increaſed to about 140 fail; and then, fays Vaffor,
"C'étoit une des plus belles armées navales, qu'on eut vûe depuis long-tems." p. 833.
* Hume, vol. vii. p. 341.
so Ibid. vol. vi. p. 304.
I
2. Income
OF THE BRITISH EMPIRE.
157
1
2. Income.
It is probable that the crown lands yielded a greater revenue in the 1. Demefness
reign of Charles I. than under the government of his father. It is
certain, that a ſtrict enquiry was made into the rights by which indivi-
duals held fuch lands as originally compofed a part of the royal do-
main; and, after the example of Elizabeth, ſome money was raiſed,
by compounding with thoſe whofe titles were defective. One of the
means alfo by which the king was enabled to raiſe an army for the
reduction of Scotland, was borrowing 300,000l. on the fecurity of his
demefnes.
The jealoufy which parliament entertained of the houſe of Stuart, 2. Grant,
rendered the commons very ſparing of their grants to the monarchs
of that race. Nor were they fo valuable as formerly. In the
eighth year of Elizabeth, a fubfidy amounted to 120,000 l.; in the
fortieth, it fell to 78,000l., and its produce anno 1640, had fallen
to 50,000 l. 5º
Subfidies were a tax upon income; and as the
wealth of the country was rapidly increafing, no reafon can be af
figned for the decreaſe of the produce of this tax, but the fraudulent
practices of the affeffors, who wished to cultivate the favour of the
people by moderate affeffments, or who countenanced every means of
evaſion, to diminiſh the value of the grant, when the government hap--
pened to be unpopular ".
The grants which Charles received may very eafily be enumerated.
His firſt parliament granted him two fubfidies from his Proteftant, and
four from his Roman-catholic, fubjects, which together are fuppofed to
have yielded about 112,000l.; and the Commons were at that time
fo very parfimonious, that they rejected a motion for adding two-
fifteenths to their former inconfiderable donation ". The next parlia-
ment that was affembled, voted four fubfidies, and three-fifteenths; but
5 In the famous Remonftrance, 15th Dec. 1640, it is faid that fix fubfidies, and a
poll-bill, equal to fix more, would yield 600,000. It is certain that parliament would
not diminiſh their value, and confequently a fubfidy cannot be accounted worth more
than 50,000 7.
52 Davenant, vol. i. p. 33.
53 Rufh. vol. i. p. 190.
+
1
*
it
158
HISTORY OF THE PUBLIC REVENUE
it was haftily diffolved before the vote paffed into a law. His third
parliament granted five fubfidies, in confideration of which, the famous
petition of right received the royal affent. This grant did not exceed
250,000. But the manner in which this mark of the liberality of
parliament was received, deferves to be commemorated. When fecre-
tary Cook informed the king of the fum that was voted, his majeſty was
anxious to know by what majority it had been carried. "By One,"
the ſecretary replied; and when the king feemed to be diſturbed with
the information, he added, "Your majefty has no cauſe to be alarmed,
"for the Houſe was ſo unanimous in making the grant, that it ſeemed
to have but One voice." It is faid, that tears of affection ſtarted in
his eyes, when he was told of this conceffion 54.
CC
Theſe, amounting to feven fubfidies, and producing only about
372,000l. were the only grants which Charles received from his Com-
mons, prior to the meeting of the long parliament, by whom fix
fubfidies and a poll-tax were voted before the commencement of the
civil war,
But the produce was appropriated to pay the Engliſh and
Scotch armies, and the money was given to commiffioners, appointed
by parliament, and not to the treaſury. It is worthy of obfervation,
that the king demanded twelve fubfidies, about 600,000l. in lieu of
his claim to fhip-money; and he offered, in conſideration of that fum,
to conſent to its being aboliſhed, in any manner that was thought
moft effectual. This propofal was, with the greateft propriety, re-
jected; as any bargain to procure the remiffion of that odious duty,
would have been a kind of acknowledgment that it had been legally
levied. It was propoſed to raiſe the fum in the ſpace of three years,
and confequently at the rate of only 200,000l. a year.
It will appear,
in the courfe of this chapter, what confiderable fums were foon after-
wards collected in Englond; and yet to prove how ignorant men ge-
nerally are to what extent taxes may be carried, it was afferted in
Anno 1640. parliament, by perfons who were fuppofed to underſtand well the ſtate
of the nation, that twelve fubfidies in three years was a greater fum
than could be raiſed in all England ".
3 Clerical
grants.
During the reign of this monarch, the fortunate confequences which
refulted from the diffipation of the revenues of the church, were clearly
54 Hume, vol. vi. p. 245.
55 Clarend. vol. i. p. 136.
diſcovered,
1
OF THE BRITISH EMPIRE.
159
diſcovered. Had that valuable property remained within the graſp
of the crown, the king might eaſily have defrayed all the expences
which he could poffibly have incurred, without requiring the affift-
ance of parliament; and all controul on the regal authority muſt have
been for ever at an end. Notwithſtanding the great diminution of the
property of the church, the affiftance which Charles drew from the
clergy was confiderable. Beſides voluntary contributions, he received,
in the earlier part of his reign, eight fubfidies, which at 20,000 l.
each, amounted to 160,000l.; and it fhould feem, that another fub-
fidy was granted, anno 1640; for the long parliament loudly com-
plain of a tax having been impoſed by the Convocation, after the former
´parliament had been diffolved “.
It has already been ſtated, that Elizabeth had reaped fome pecuniary
benefit, by diſpenſing with the penal laws, enacted againſt thoſe who
adhered to the Roman catholic religion. This expedient Charles had
recourfe to; but instead of fecret compofitions, a commiffion was
openly granted, and the popish religion became an avowed and regular
fource, of revenue ": A ftep highly impolitic at a time when his fub-
jects in general were fo ftrongly impreffed with the most inveterate:
prejudices against the profeffors of that religion.
57
4. Compofi
tion with RO
man catho-
lics.
James I. had conceived a ridiculous idea, that a king of England 5. Queen's
portion
would be degraded if he ſhould eſpouſe any princeſs not of royal ex-
traction, and indeed that the daughters of France or Spain were the
only females to whom his fon ought to be married. In confequence of
this notion, he had entered into a tedious negotiation with the court of
Spain, which was broken off through Buckingham's caprice and in-
difcretion, much to the king's regret, who was to have received a
dowry with the infanta, of two millions of pieces of eight, equal to
600,000l. fterling. Upon the failure of that plan, James made pro-
pofals to the court of France, the confequence of which was, the mar-
riage of Charles to Henrietta, daughter of the famous Henry the Great.
Her portion was greatly inferior, being only 400,000 crowns; neither
was it paid until fome years after the marriage was concluded; but it
came at laft very opportunely for Charles, in the midft of his greatest
pecuniary diftreffes 58.
50 Mort. vol. ii. p. 544.
57 Rufh. vol. i. p. 413.
58 Stevens, p. 276,
The
3
160
REVENUE
HISTORY OF THE PUBLIC
+
6. Fiſhing
licence.
7. Cuſtoms.
The question how far the fea can be made the property of any par-
ticular nation, has been much controverted; and two learned authors
(Selden and Grotius) were employed by the reſpective governments
under which they lived, the firſt to ſupport, and the fecond to oppoſe
this ſpecies of dominion. But Charles knew that ſuperior ſtrength at
fea was the only argument by which ſuch pretenfions could be fup-
ported; and having, by means of the illegal impofition of fhip-money,
equipped a formidable fleet, he ordered the admiral, Algernon, earl of
Northumberland, to fail to the northern coafts of his dominions, and to
drive away all veffels fiſhing in their neighbourhood without licence.
The Dutch, against whom this equipment was particularly aimed, were
glad to pay 30,cool. for the liberty of fiſhing that year; and the king
would have perſevered in exacting an annual tribute for permitting
them to fiſh on the Britiſh coafts, had not his attention been taken
by more important objects.
up
One would imagine it was impoffible for the warmest friend of the
unfortunate houſe of Stuart to juſtify the ſteps which Charles purſued,
in refpect to exacting the revenue of the cuftoms for fo many years
without legal authority, and in a manner ſo harſh and oppreffive. He
Anno 1629. himſelf declared to parliament, that he did not mean to levy the duties
of tunnage and poundage as belonging to him by hereditary right, but out
of the full perſuaſion that the Houſe of Commons would grant them by
bill "9. And it appears from the hiftory of theſe taxes, the origin and
progreſs of which have been traced in the preceding part of this work,
that the Cuſtoms, inftead of having originally been a permanent branch
of the royal income, arofe from a voluntary conſent of the people by
their repreſentatives in parliament.
$9
Though the law was clear, the practice was very irregular. Ever
fince the acceffion of the Houfe of Tudor, the duties of tunnage and
poundage had been levied without intermiffion; and though granted
only for the life of the reigning fovereign, yet his fucceffor continued to
exact them, truſting to the future fanction of parliament. Charles, at
his acceffion, had continued a practice, on which fo confiderable a
branch of his revenune depended; and he would probably have re-
ceived a grant for life, as had been given to his predeceffors, had not
59 Parl. Hift. vol. viii. p. 256.
the
?
OF THE BRITISH EMPIRE.
161
The An. 1640.
the Commons required it as a preliminary, that he fhould, for once,
entirely defift from levying thefe duties. He haftily diffolved the par-
liament rather than agree to their propofal. This important controverſy
was at laſt determined in a manner unfavourable to the crown.
exaction of the duties, was not totally abftained from, but they were
granted only for two months; and the grant was renewed from time to
time, for very ſhort periods. Care alſo was taken, to affert, in the ftrongeſt
terms that could be conceived, the exclufive right of parliament to
beſtow the grant; and in the preamble to the bills that were paffed, all
pretenfions that the crown could make, to levy the duties by its own
authority, were for ever annulled 6°.
60
It is faid, that the cuftoms, previouſly to the civil wars, had been raiſed
to 500,000l. a year in confequence of the increaſe of commerce, and the
additional impoſitions which had been laid on by Mary, Elizabeth, and
James: an account [that ſeems, however, to have been exaggerated.
?
But Charles, not ſatisfied with exacting impoſitions, which, though 8. Ship-
in ſome degree ſanctioned by cuſtom, yet were unqueſtionably illegal, money.
was imprudent enough to attempt to levy a new tax, to which the
nation had not been accuſtomed; and the illegality of which was, con-
ſequently, the more apparent. It is ſaid, that a ſpecies of ſhip-money
was impofed by Elizabeth anno 1588: but, befides, that one precedent,
particularly in ſo arbitrary a reign, is not a fufficient juftification; it is
farther to be remarked, that Elizabeth exacted ſhips, and not money;
that every exertion was neceffary to oppoſe ſo deſtructive an invaſion as
that of the Spaniards; and that, notwithſtanding the danger and
urgency of the cafe, fo moderate were her demands, that many of the
ports, London in particular, of their own accord, fent double the number
of ſhips that were required.
Firſt exaction
money.
This monarch's firſt attempt to levy ſhip-money, was anno 1626; and
the precedent afforded in the reign of Elizabeth, was pretty ftrictly of Ship-
adhered to; for the maritime towns only were required to furniſh ſhips,
and the adjacent towns were ordered to affift in the equipment. Twenty
ſhips were the proportion of London, and the other towns were rated
accordingly 62.
60 16 Car. I. cap. 8.
61 Hume, vol. vii. p. 340.
Y
c² Ibid. vol. vi. p. 224.
But
162
HISTORY OF THE PUBLIC REVENUE
Second ex-
action.
An. 1635,
Hambden's
trial.
Anno 1637.
But this claim was afterwards carried to a much greater extent.
It is
afferted, that the fituation of Europe in general, and the rapid increaſe
of the Dutch republic, in commerce, and in maritime ftrength, and the
fucceſsful piracies of the Barbary corfairs, who infefted the very coafts
of the kingdom, had rendered it neceffary for Charles to equip a fleet
fufficient to ſupport the naval dignity of his crown, and the commercial
intereſts of his kingdom. The only obftacle was the low ftate of his
exchequer.
In this emergency, he applied to Noy, then his attorney-general, a
very able lawyer; whofe advice was, to extend the impofition of fhip-
money over the whole kingdom; the crown being entitled, he affirmed,
to levy a naval aid for the public defence in time of neceffity". But
Charles, not fatisfied with this authority, or willing to have it ſtrengthened
by every means in his power, and anxious to prevent, if poffible, all
oppofition to fo favourite a meaſure, required the opinion of the twelve
judges on the cafe, who unanimoufly declared, "That when the good
"and fafety of the whole kingdom is concerned, the king might com-
"mand all his fubjects, at their own charge, to provide and furniſh
"fuch number of fhips, with men, victual, and munition, for fuch
"time as he thought fit, for the defence of the kingdom, and that he
was the fole judge both of the danger, and how the fame is to be
"prevented 4."? It is to be obferved, that this opinion, though gene-
rally accounted decifive in favour of the crown, yet is very cautiouſly
worded. It is not ſtated, that the king could legally levy money by his
own authority: nothing could be raiſed but fhips, men, victuals, and
ammunition in kind, nor is any power of converſion infinuated.
66
64.99
In oppoſition to this public declaration of the very judges before
whom his cauſe muſt be tried, and undifmayed by the power of the
crown, which was then fuppofed to be uncontroulable, and which, he
knew, would be ftretched to the utmoft, to wreck its vengeance on any
one who firſt ventured to refift its authority, John Hambden, an
Engliſhman, equal in zeal, courage, and integrity, to the moft re-
63 Noy is faid to have examined, at this time, all the precedents of levying money by
regal authority; and hence, it is probable, aroſe the ſuppoſition of his being the author
of Cotton's Treatife on the Rights and Revenues of the Crown. He died foon after.
that ſhip-money began to be levied.
64 Stevens, p. 277.
nowned
OF THE BRITISH EMPIRE.
163
;
nowned patriots of antiquity, refuſed to pay the inconfiderable fum of
twenty fhillings at which he was affeffed, and refolutely determined to
hazard any confequences, rather than fubmit to the impofition. A fuit
was inftituted by the crown to compel the payment, and the cauſe was
folemnly argued for twelve days before all the judges of England.
Notwithſtanding the convincing arguments urged in his defence ", only
four of the judges gave an opinion in his favour, whilft eight fupported
the legality of the tax. This victory, however, was fo generally odious
and unpopular, that it was equivalent to a defeat. It roufed the indig-
nation of the people at large, and occafioned that firm and ſteady oppoſi-
tion to the meaſures of the court, which it afterwards encountered.
Charles had propofed to the fourth parliament he had affembled, in
confideration of twelve fubfidies, to agree to the abolition of ſhip-
money, in any manner it ſhould think proper. But the Commons
wifely refuſed to give the ſlighteſt countenance to ſo illegal an impoſi-
tion; and one of the firſt ſteps which the Long Parliament took, was, to
vote that ſhip-money was arbitrary and illegal. The fentence againſt
Hambden, alſo, was declared contrary to law. The judges who had given
their opinion in favour of ſhip-money were impeached, the officers em-
ployed in collecting the duty were declared highly culpable, and a law
was paffed, by which this obnoxious impoft was for ever abo-
liſhed ❝.
66
Abolition of
ſhip-money.
Ship-money was raiſed, during the ſpace of four years. It was com- Its produce.
puted to yield about 200,000l. a year: conſequently, it muſt have pro-
duced, altogether, the fum of 800,000 l.
foldiers.
An attempt was made, during this monarch's reign, not only to 9. Levying
maintain a fleet, but alſo to levy, and to fupport an army, without the
ſanction of parliament. Every county in England was ordered to raiſe
a certain number of horſe and foot, and to furniſh a certain number of
carriages, at their own charges, for profecuting the war againſt the
65 Nothing can be drawn up with more ability, than the general view which Hume
has given of the arguments againſt ſhip-money, vol. vi. p. 314. See alſo Macaulay,
Appendix to vol. ii.
66 16 Car. I. cap. 14.
Y 2
Scots.
164
HISTORY OF THE PUBLIC REVENUE
10. Mono-
polics.
11. Loans.
Scots". Theſe military operations were carried on, through the medium
of the lords lieutenants, in the different counties, and their conduct was
juftified by ſome ancient precedents, in times of danger and invafion;
but no expreſs ftatute could be produced in fupport of the meaſure. It was,
therefore, voted illegal by the Long Parliament; and fuch as had exerciſed
any powers of that nature, were declared guilty of delinquency.
J
68
Charles, not contented with the exerciſe of lucrative prerogatives, on
very flender legal pretences, had alfo, rafhly, endeavoured to raiſe money
in oppofition to the exprefs words, or at leaft, in evident contrariety
to the ſpirit of a recent ftatute. It has already been obferved, that a
law was paffed anno 1624, by which all monopolies were prohibited:
but an exception had been admitted in favour of new inventions; under
which flight pretence, the former grievance was renewed, and the
kingdom again filled with exclufive patents, to the ruin of induſtry and
commerce. Not only falt, foap, leather, and other uſeful articles were
put under harſh reſtrictions; but grants were made out for gauging red-
herrings, for marking butter cafks, and for gathering rags. The
king, afraid of the confequences, or aſhamed of having adopted fuch
ridiculous expedients for raifing money, aboliſhed about thirty of theſe
deftructive patents, when he undertook the firft expedition againſt
Scotland. But the people were not ſatisfied with a partial diminution ;
and the long parliament had no fooner affembled, than it annulled all
the remaining monopolies; and as a proof of how much they detefted
fo illegal a meaſure, expelled at once fuch of its members as were at
all concerned in them ". It is faid, that Charles had raiſed, by thefe
patents, about 200,000 /. of which (according to Clarendon) fcarcely
1500 l. came into the king's coffers.
It is natural to conjecture, that a prince, reduced to ſuch neceffities.
as Charles experienced, would purfue the ancient practice of exacting
compulſive loans from his fubjects; and, indeed, as early as the fecond
year of his reign, letters, under the privy feal, were fent to the
67 Hume, vol. vi. p. 372. In Stevens, p. 279, may be feen lifts of the troops, &c.
which each county was ordered to furnifh. This author is much puzzled by the different
lifts of horſes, not adverting, that one lift is, of horſes to mount the cavalry, the other,.
of horſes to draw the carriages with ammunition, &c.
63 Stevens, p. 283, 284.
2
9 Hume, volr vi. p 374.
wealthieft
OF THE BRITISH EMPIRE.
165
}
wealthieft perfons in the kingdom, demanding the loan of certain fums,
in proportion to their fuppofed ability; and promifing to repay the
money that was borrowed, in the ſpace of eighteen months". About
200,000l. was raiſed by this unpopular expedient. Anno 1626, the
loan of 100,000l. was demanded from the city of London, which it
had the ſpirit to refufe. Nor did the old plan of a benevolence, at-
tempted at the ſame time, prove more fuccefsful. But the boldeſt
meaſure of that nature, was the exacting of a general loan. Four fub-
fidies, and three fifteenths, had been voted by Charles's fecond parlia~
ment. A fudden diffolution, however, prevented the grant from paffing
into a law; and the king, inſtead of calling a new parliament, refolved
to demand thoſe very fubfidies from the people under the name of a
loan. The moſt violent and arbitrary meaſures were made uſe of to
compel the payment. Such as refufed were impriſoned; were loaded
with a number of foldiers illegally quartered upon them; and by
various other oppreffions, were made fenfible of the king's anger and
refentment 7.
tions.
The partiality of that able hiftorian Hume, in favour of the houfe of 12. Extor
Stuart, is not a little confpicuous, in his calling the moſt illegal extor-
tions, by the fofter name of irregular levies of money". But how-
ever acts of tyranny may be palliated by ingenious men, yet they will
fill appear to the impartial and the unprejudiced, in their real colours.
Charles had ventured to threaten the Commons, if he was not
furniſhed with fupplies in a legal manner, that he fhould be obliged to
try new councils; or, in other words, would raife money without their
authority; and a commiffion was iffued accordingly, appointing thirty-
three commiffioners to meet, and concert among themſelves, the methods
of levying money by taxes, or by other means, "where" (in the words
of the commiffion) "form muſt be difpenfed with, rather than the
fubftance loft." The intention evidently was, to contrive the means
of raiſing money by prerogative alone 7. In confequence of a fpirited
7º Stevens, p. 274.-
74
71 Many of the lower people were compelled to enlift as foldiers, or feamen; and
Glanville, an eminent lawyer, was forced to accept of an office in the navy, for having
refufed to contribute. Hume, vol. vi. p. 230.
7.2 Hume, vol. vi. p. 295.
73 Ibid. p. 241. 248..
74 Ibid. p. 218 and 257.
application.
166
HISTORY OF THE PUBLIC REVENUE
application from the Houfe of Commons, this commiffion was an-
nulled but it clearly proves in what manner the king would have
reigned, had his power been equal to his inclination.
Though this commiffion was cancelled, yet it did not prevent Charles
from purſuing many arbitrary meaſures, in order to extort money from
his fubjects. Large fees were annexed to new invented offices. Every
county was obliged to maintain a mufter-mafter, appointed by the
crown, for exerciſing the militia. The vintners were driven, by the
terrors of fines and profecutions, to fubmit to an illegal impofition upon
all the wine they retailed. An ancient duty for furniſhing the foldiery
with coat and conduct-money, which had long been aboliſhed, was re-
vived. It was intended to coin baſe money, and to circulate it by pro-
clamation. Heavy fines were impofed in the ftar-chamber, and high com-
miffion courts. Sir David Fowles was fined 5000l. for diffuading a friend
from compounding with the commiffioners of knighthood. Thirty
thousand pounds were exacted from thoſe who had treſpaſſed upon an
obfolete law againſt converting arable lands into pafture. Encroach-
ments on the king's forefts were puniſhed in a fimilar manner.
clamations were iffued, commanding the nobility and gentry to retire
to their country feats, and not to ſpend their time idly in London.
If convicted of trangreffing this arbitrary regulation, they were feverely
mulcted by the star-chaniber. It was contended, that proclamations
had equal authority with laws; and fuch as ventured to diſobey them,
were heavily fined, and in fome inftances, condemned to the pillory ".
In ſhort, more tyrannical ſteps could hardly be taken by the greateſt
defpot on earth.
Pro-
75
Of all the unpopular expedients adopted by Charles, to raiſe money
without the confent of parliament, the only one that had any pre-
tenſions to legality, was that by which, in imitation of precedents,
taken notice of in the former part of this work, perfons poffeffed of a
certain income, in land, were obliged to receive the order of knight-
hood. By a law, paffed in the reign of Edward II., a knight's fee was
fixed at twenty pounds a year. In the reign of Henry VI., it was
raiſed to forty pounds. The law, though not repealed, had not been
75 Hume, vol. vi. 296. Macaulay, vol. ii. p. 218.
enforced
OF THE BRITISH EMPIRE.
167
1
enforced for many years, and was almoſt forgotten 76. But Charles
was refolved to revive any act from which profit might be derived; and
it is faid, that by compounding with fome, and fining others who re-
fuſed to appear in obedience to the king's mandate, about 100,cool.
was exacted". It was thought, however, not a little oppreffive, that
the great decreaſe in the value of money ſhould not be confidered, and
that thofe poffeffed of fo fmall an income as forty pounds a year, ſhould
be obliged to accept of an honour they were unable to fupport. The
letter of the law might be against them, but its fpirit was evidently in
their favour.
!
There is alſo the ſtrongeſt reafon to believe, that Charles was de-
termined to take any ftep, that ambition or tyranny could dictate,
rather than fubmit to the legal trammels of a limited government. It
is known, that a commiffion was granted, and even money remitted to
Germany, for the purpoſe of raiſing a thouſand horfe, to be tranſ-
ported into England. It is urged, in extenuation, that the number was
too ſmall for eſtabliſhing a defpotic government in this country. But
though the force was apparently trifling, yet the king might eaſily have
added a formidable body of foot to theſe foreign mercenaries; and thus
have been enabled to levy thofe excifes, and other taxes, which, it is
faid, he intended to impofe by his own authority. This dangerous
meaſure was prevented by the interpofition of parliament.
Syftem of
military do
fpotifm.
his revenue.
It is hardly to be difputed, that Charles might have got over all his Amount of
difficulties, if it had not been for the war he rafhly entered into with
his ſubjects in Scotland. It appears, that his revenue, from 1637, to
*641 inclufive, amounted communibus annis, to 895,819 4. 5 s. of
1.
which, however, 210,493 175.
17 s. 4 d. arofe from ſhip-money, and
other illegal exactions " But, on the whole, it was fully adequate to
the ordinary expences of the crown, though it could not defray the
charges of war, and other burthenfome contingencies.
79
When the fatal conteft, between the king and his parliament, was at
laft brought to the decifion of the fword, he found the utmoſt difficulty
in providing refources for the maintenance of his forces. The capital,
76 Naunton's Fragmenta Regalia, p. 4.
78 Rufh. vol. i. p. 612,
77 Stevens, p. 275.
79 Comm. Journ. vol. viii. p. 150.
Supplies
liament.
against par-
}
and:
168
HISTORY OF THE PUBLIC REVENUE
Taxon cards.
Coin,
Petition of
right.
and the wealthieſt part of the kingdom, fupported the parliament; and
the only money that he could raife, was by pawning the jewels of the
crown; by melting down the plate of the two univerſities, which they
generouſly fent him; and afterwards, by imitating the example of his
opponents in levying affeffments, and even excifes, in thofe diftricts
where his authority was acknowledged. But the voluntary contribu-
tions of thoſe who adhered to the crown were his principal reſource.
It is faid, that the marquis of Worceſter alone, fupplied the king with
100,000 l.; and the exertions of the marquis of Newcaſtle, who de-
voted his whole fortune to the ſupport of the royal caufe, were no leſs
remarkable
'80
Among the other taxes contrived by this monarch, one deſerves to
be mentioned on account of its fingularity, namely, a tax upon cards.
Every pack was ordered to be fealed, by an officer appointed for that
purpoſe, previouſly to its being fold. The tax was far from being high,
nor was it in itſelf exceptionable; but it met with ſome oppoſition on
account of its illegality ".
The additional quantity of fpecie coined during the reign of Charles,
when compared to that of his immediate predeceffors, is a ftrong proof
how rapidly the wealth and commerce of England were increaſing. It
is computed by Folkes, that during his reign, 12,096,2207. ſterling was
coined in gold and filver; a greater fum than during the two reigns of
James and of Elizabeth. But authors have, in general, omitted to remark,
that Spain fent confiderable quantities of bullion to be coined in our
mint, which was afterwards carried to Flanders; and the property of
which did not belong to the natives of this country. They had only
the profit of the coinage, and the benefit of the tranſportation $2.
82
This reign is diſtinguiſhed by the famous petition of rights having
paffed into a law; the object of which was to procure a full confirma-
tion of the moſt important privileges of the nation. Among the other
articles which it contained, fome of which are of fuch moment, as to
have produced almoſt a total revolution in the nature of our government;
there is one claufe by which it is particularly declared, "that no gift,
8. Rufh. vol. ii. p. 103.
80 Stevens, p. 288.
*2 Walker's Hift. Independ. part ii. p. 193.
E
"loan,
1
169
OF THE BRITISH EMPIRE.
<<
83
"loan, benevolence, tax, or fuch like charge, fhall be exacted without
common confent, by act of parliament "." Since this valuable
ftatute was enacted, theſe ancient modes of extortion have never been
revived.
The fatal cataſtrophe of this monarch's reign, is too well known to Reflection.
require being mentioned. In juftice, however, to Charles, it may be
remarked, that it was natural for a prince, like him, educated with
high notions of the inherent prerogatives of the crown, fupported by
the example of his predeceffors, and ignorant that a monarchy could
exiſt under fuch limitations as parliament wifhed to eſtabliſh, ſhould
gradually be led into that train of conduct which he unfortunately pur-
fued. Indeed, when once fufpicions and jealoufies arife, it is impoffi-
ble to ſay, to what lengths the moſt refpectable characters may be
hurried, amidſt the heat of party, and the ardour of inteſtine violence.
On the other hand, it is equally neceffary to obferve, in behalf of thoſe
illuftrious patriots, who firft refifted the exorbitant claims of the crown,
that whilſt a Pym, a Hambden, and an Effex, conducted the oppofi-
tion in parliament, though they demanded rather harsh conceffions, yet
that they ſtill had the eſtabliſhment of a limited monarchy in view.
The fide to which they leaned, that of liberty, was founded on the moſt
noble, and the moſt generous principles. They knew well, that ad-
vantage muſt be taken of the exiſting circumſtances in their favour; that
fuch another opportunity might never again recur; and that the crown
ſtood a better chance of adding to its prerogative, than the people to
their privileges. As to the violences of an after period, the trial of the
king, his condemnation and death, and the eſtabliſhment of military
defpotifm under Cromwell, they took place when theſe patriots were
no more; when civil government was at an end, and when England
lay at the mercy of an ignorant, fanatical, and defperate foldiery,
headed by a daring, artful, and profligate ufurper.
The Commonwealth.
Under this general name, it is propofed to comprehend the various
republican and military fyftems of government, which took place from
83
17 Car. I. cap. 41.
Z
the
170
HISTORY OF THE PUBLIC REVENUE
the commencement of the civil war to the reſtoration: An æra, `during
which the public expences were very great, and indifputably fuperior
to thofe of any former period in our hiftory. Even before the war
broke out, parliament found it neceffary to provide a confiderable ſupply
for difbanding the troops which the king had raiſed for the reduction
of Scotland; and to vote 850 l. a day, for the fubfiftence of the Scotch
army, to prevent its plundering the northern counties of England, of
which it was then in poffeffion. Three hundred thousand pounds alfo
were granted to the Scots, as a reward for their brotherly affiftance +
But theſe were inconfiderable fums, when compared to the heavy
charges which were afterwards incurred.
Expences.
It is a faying attributed to Milton, that, as a republic was the leaft
expenſive, it was confequently the beſt of governments; nay, that the
trappings of monarchy, would defray all the charges of an ordinary com-
monwealth. The hiſtory of the republic of England does by no means
juſtify this obſervation.
It is not propofed, however, minutely to inveſtigate the expences in-
curred during the time of the commonwealth: for, it is impoffible now
to make up an accurate ſtatement of them, in confequence of the great
fluctuation and inftability of government, and of the frauds practifed
by thofe to whom the cuftody of the public money was committed. It
will be fufficient to remark, in general, that the tedious and bloody
conteſt which parliament carried on againſt the crown, was attended
with charges, perpetually increafing, in proportion as the armies became
more numerous, and hoftilities were more extended: That confide-
rable expences were incurred by the republic, before the reduction of
Ireland was accompliſhed, and before Scotland (where, after the death
of his father, Charles II. was proclaimed king), could be finally fubdued:
That fucceſsful wars were carried on againſt the Dutch, who were
obliged to crouch under the fuperior ftrength and vigour of the new
republic; and againſt the enfeebled monarchy of Spain, from whom
84 Macaulay, vol. iii. p. 22.
two
1
OF THE BRITISH EMPIRE.
171
5:
氰
​two important poffeffions, Jamaica and Dunkirk, were conquered dur-
ing the adminiſtration of Cromwell: And that, even in time of peace, a
formidable fleet, and a numerous army, were maintained, to fupport
the authority of the new government at home, and to render it more
refpectable abroad. But all theſe ſervices, however extenfive and im-
portant, could not have exhaufted the immenfe treafures, which, from
various fources, flowed into the coffers of the republic.
Refources.
When the long parliament affembled, no idea was entertained of the
bloody and deſtructive diſturbances which afterwards took place. It
proceeded, therefore, to levy money conformably to ancient ufage;
and, inftead of affeffments, and other modes of exaction afterwards
practiſed, fix fubfidies, and a poll-tax equal to as many more, were
granted, for difbanding the English and Scotch armies, who then raged
in the very bowels of the kingdom. The produce of theſe grants, how-
ever (for they were given at different times), was not confided to the
treaſury, but was ordered to be paid to parliamentary commiffioners
appointed for that ſpecial purpoſe.
contribu-
It was foon difcovered, that the difputes between the crown and Voluntary
parliament had been carried to ſuch a height, that they muſt un- tions.
avoidably proceed to fome fatal extremities; and at the commencement
of the civil war, the conduct of the parliament was fo popular, and it
was held in fuch high eſtimation by the public, that incredible fums of
money were raifed by voluntary contribution. The plate of almoſt
every inhabitant in London was brought in, to be coined for its fup-
port: no article, however mean, no ornament, however valuable, was
ſpared. The very thimbles and bodkins of the women were not with-
held every one was anxious to maintain the caufe of the godly
againſt the king and the malignants ".
But it was impoffible, that an expenfive war could be long fupported Land tax.
upon
fo flender a foundation, as the temporary fervour of the people.
5 Hume, vol. vi. p. 539, 540.
Z 2
The
172
HISTORY OF THE PUBLIC REVENUE
<
Weekly
meal.
Excife.
Cuftoms.
oft office.
The parliament therefore refolved, in order to provide for the better
fuftenance of their forces, to levy affeffments on the perfonal and landed
property of the people. Theſe affeffments varied, according to the
exigencies of the times, from 35,000l. to 120,000 l. a month. They
were found fo productive, and in every refpect fo much fuperior to
the ancient mode of fubfidies, that under the denomination of a land-
tax, they have fince formed a very confiderable branch of the public
revenue.
But armies muſt be recruited as well as raifed; and for that purpoſe,
a very fingular impoft, fuited to the ſpirit of the times, was laid on by
the parliament. Every perfon was obliged to retrench a meal a week,
and to pay the money thereby faved into the public treafury. Thi
whimſical tax produced 608,400 l. in the fix years during which it was
impofed.
To the long parliament we owe the firft eſtabliſhment of excifes in
this country. It is fuppofed, that the famous Pym was the perfon by
whom the plan was originally propofed. It was at firft laid upon liquors
only; and it was folemnly declared, that, at the end of the war, all
excifes fhould be abolished. But the conteft continuing longer than
was expected, this obnoxious mode of levying money was extended
to bread, meat, falt, and many other neceffary articles. The excife on
bread and meat was afterwards repealed ".
88
In the time of the commonwealth, confiderable additions were made
to the revenue of the cuſtoms, by duties upon coals and currants.
Four fhillings a chaldron upon coals, levied at Newcaſtle, brought in
about 50,000l. ** The cuſtoms and excife, notwithſtanding the de-
ftruction with which civil wars are neceffarily accompanied, had become
fo productive, that Cromwell, anno 1657, was offered 1,100,000l. a
year for a leafe of both the branches.
The eſtabliſhment of a poft office, upon a productive and permanent
footing, was principally owing to the long parliament. By their atten-
tion, and the wiſdom of their regulations, it not only yielded 10,000 1.
per annum, but alſo faved an annual expence of 7000l. which the public
85 Stevens, p. 290.
37 Walker's Hift. Prof. p. 8. partii. p. 193. 247. Black. vol. i. p. 318, 319, 320.
** Walker's Hift. Part ii. p. 150.
was
OF THE BRITISH EMPIRE.
173.
}
was obliged to pay for the maintenance of poftmafters. It is fingular,
that the fuccefs with which this mercantile project has been attended,
ſhould not have encouraged the public to engage in other plans of a
fimilar nature.
·
When the parliament took the entire government of the country into Feudal pre-
rogatives.
their own hands, care was taken to fequefter the revenue of the crown,
and to appropriate it to their own purpoſes: nay, the profits of ward-
fhip, fines of alienation, and other feudal prerogatives, though fup-
pofed to be infeparably annexed to the crown, were rigorously exacted.
Purveyance alone was given up, a uſeleſs privilege for a republic, and
fo generally obnoxious, that Charles II. was obliged to abandon it,, after
the reſtoration.
licences>>
In the reign of James I. a patent had been granted by the crown for Wine
the fole licenſing of inns and alehouſes. But in confequence of the
ſpirited interpofition of parliament, this monopoly had been annulled.
It was not, however, the propriety of the tax, but the legality of the
impofition, with which the Commons were diffatisfied. Accordingly, it
was one of the new duties with which it refolved to impofe. The tax,
it was imagined, would not only prove productive in reſpect to income,
but would alfo operate as a neceffary regulation of the police; by pre-
venting improper perfons from keeping houſes open for the reception of
the public..
The moſt popular of all the modes which parliament purfued for Public of
raiſing money, was that of fequeftrating the income of certain lucrative fices.
offices, and applying the produce for the fervice of the public. It is
not known what particular offices were thus appropriated; but it ap-
pears, that in the ſpace of fifteen years, they yielded 850,000l.: con-
fequently, their value muft have amounted to about 56,666 l. per annum.
The value of the royal domains, as well as of the eſtates of indivi- Crownlands, -
duals, was not a little diminiſhed, by fo long and deſtructive a conteſt:
and yet parliament, either driven to it by its neceffities, or defirous of
aboliſhing every veftige of monarchy, and in hopes that it would never
be re-eſtabliſhed, difpofed of all the crown-lands and eſtates belonging
to the principality of Wales, at the rate of ten years purchaſe. Nay,
the houſes, furniture, and other perfonal effects belonging to the king,
were
374
HISTORY OF THE PUBLIC REVENUE
Church
lands.
Plunder of
were fold at very moderate prices. But the reſtoration of the royal
family made theſe bargains dearer than was expected.
The active part which the bishops, and the clergy in general took
in fupport of the royal caufe, naturally drew upon them the indigna-
tion of the oppofite party, and rendered their property not a little in-
fecure when the parliament became fucceſsful". But the fyftem of
diminiſhing the opulence of the church, was carried to much greater
lengths than had ever been apprehended. Not only the lands of the
biſhops, and of the deans and chapters, but even the rectory and glebe
lands were fold, fome at ten, and others at twelve years purchaſe.
The tythes alfo were fequeftrated for the uſe of the ftate"; and, inftead
of fettled minifters, fome wild enthufiafts propoſed to have lecturers
wandering about the country, in the primitive manner of the apoftolic
times whofe falaries would prove but little burthenfome to the public
exchequer.
The victorious party, as is ufual in civil wars, adopted every means.
the royalifts. in their power to diminiſh the wealth, and to puniſh the ſuppoſed guilt
and offences of their adverfaries. The prifoners they took, if par-
ticularly obnoxious, were put to death; if otherwiſe, were obliged to
pay heavy ranfoms for obtaining their liberty. It is faid, that under
colour of malignancy, about one-half of the perfonal, as well as landed
property of the kingdom was fequeftrated, and either fold at low prices
to the friends of thofe who were in power, or heavy compofitions were
demanded, if reſtored to the original proprietors". Compulfive loans
were alfo exacted from heart malignants, or perfons fufpected of fecretly
favouring the royal caufe. Indeed, the miferable individuals who were
comprehended in that defcription, were compelled to furniſh fuch fums
of money, by way of loan, as were often attended with utter ruin to
themſelves and their families.
Extortions.
Under fo military and tyrannical a government, a variety of oppref-
five exactions muft neceffarily have taken place. Among many others,
87 On the 3d of April 1650, a commiffion was iffued, to enquire upon oath, into the
number and yearly value of all rectories, vicarages, &c. purſuant to an act made June 8,
1649. The originals are faid to have been burned; but there is one copy in the Rolls
chapel, and another at the archbishop's library at Lambeth, in eighteen thick folio
volumes. Hutchins's Dorſetſhire, Introd. p. 39.
38 Walker's Hift. part ii. p. 198.
6
89 Hume, vol. vii. p. 93.
that
OF THE BRITISH EMPIRE.
3-75
90
that of free quarter was particularly complained of. The foldiers were
billeted upon private houſes; paid nothing for their maintenance; were
fpies upon the actions of thoſe upon whom they were quartered; and
though guilty of the moſt ſhocking abuſes, their crimes were only ſub-
ject to the cognizance of their own officers; no civil court, or magiftrate,
daring to interfere ". But when Cromwell affumed the government of
the ſtate, a general fyftem of oppreffion was for fome time put in
practice ".
The whole kingdom was divided into twelve diftricts,.
each of which was entruſted to the care of a major general, who was
empowered to levy any tax the Protector thought proper to impofe..
An edict was iſſued, commanding the exaction of the tenth penny from
all the royal party; and this oppreffive tax, known by the name of
decimation", Cromwell's military fubftitutes very rigorously enforced.
The whole country was expoſed to their extortions; hardly any diſtinc-
tion was made; nor were the firmeft friends to the exifting government
always exempted.
The regular and permanent income of England, during the admi-
niftration of Cromwell, was about 1,517,274.l. 17 s. 1 d. Scotland,
then ſubject to the fame government, yielded 143,652 l. 11 s. 11 d.;
and Ireland 207,790%. making, in all, the ſum of 1,868,7197. 9s.”
But if all the exactions which were extorted from the people at that
time are accumulated, they amount to a fum almoft incredible. It
is afferted, in a treatife, printed anno 1647, that in four years,
17,512,400% or about 4,378,100l. per annum were raifed "4. Walker
afferts, that in five years, forty millions had been collected ; but this
feems to be a confiderable exaggeration ". The following account
contains as full a ftatement of the money levied, during this whole-
period, as can now be procured.
ça Walker's Hift. part i. p. 65, 66, 67.
2 Walker's Hift. part iv. p. 27.
96.
94
95
91 Hume, vol. vii. p. 244.
93. Comm. Journ. vol. vii. p. 627, &c.
54 London's account,, or a calculation of the arbitrary taxations within the lines of
communication, during four years of the war, printed anno 1647.
9 Hift. p. 8..
96 It is a ftrong proof of Walker's exaggeration, that the author of the treatiſe above-
mentioned (called London's Account), who makes out his calculations in the moft un-
favourable manner to the parliament, ſhould ſtate the first four years at only feventeen
millions..
Amount of
the per-
manent in-
come.
}
ABSTRACT
176
HISTORY OF THE PUBLIC REVENUE
ABSTRACT of the Money raiſed in England from Nov. 3, 1640,
to Nov. 5, 1659.
Six fubfidies, at 50,000l. each
Poll money and afleffinents, to diſband the Scots and Engliſh armies
Voluntary contributions for the ſupport of the good cauſe againſt malignants
Ditto, for the relief of the Iriſh proteſtants
Land-tax, or various affeffments, for the maintenance of the army
Excife for fixteen years, at 500,000 per annum
Tunnage and poundage for 19 years, at 400,000l. a year
Duty on coals
Ditto, on currants
£300,000
800,000
300,000
180,000
32,172,321
8,000,000
7,600,000
850,000
Poſtage of letters
Weekly meal for fix years
Court of wards, and other feudal prerogatives.
Wine licences
Vintners delinquency
Offices fequeftered for the public fervice.
Sequeftrations of the lands of biſhops, deans, and inferior clergy, for four
years
Tenths of all the clergy, and other exactions from the church
Sale of church lands
Fee farm rents for twelve years
Other rents belonging to the crown, and the principality of Wales
Sale of the crown lands and principality
(120,000l. per annum)
I
Ditto of foreft lands and houſes, &c. belonging to the king
Sequeftrations of the eftates and compofitions with private individuals in
England
Compofitions with delinquents in Ireland
Sale of the eftates of delinquents in England
Ditto of Irish lands
Ranfom of captives
New River water
51,000
301,000
608,400
1,400,000
312,200
4,000
850,000
3,528,632
1,600,320
10,035,663
2,963,176
376,000
1,200,000
656,000
4,564,986
1,000,000
2,245,000
1,322,500
102,000
8,000
£ 83,331,198
In the account which Stevens gives us of the money raiſed during this period, there feems to
be a variety of mistakes. He ftates the fix fubfidies at 600,000l., though they only produced
300,000l. See Walker, p. 7. Tunnage and poundage he calculates only at the rate of
300,000l. a year, though it often exceeded 500,000l., and, at a medium, muſt have been
400,000l.; and in the whole account, there is a ſtrange confufion between income and ex-
pences. Thus there is ſtated, in the account of the money raiſed, the charge of juſtice, and
the fums voted to the members of the houſe, and given them by way of free-gift. The firſt
voluntary contribution (omitted by Stevens) is put down only at 300,000l., though probably
more productive.
This
OF THE BRITISH EMPIRE.
177
•
This is the beſt information which it is at prefent poffible to obtain
with regard to the money levied in the time of the commonwealth:
from which it appears, that during the fhort period of nineteen years,
above eighty millions muſt have been raiſed, and conſequently, one year
with another, about 4,385,850l. per annum: but a confiderable part of
that immenſe treaſure was either laviſhed by parliament upon its own
members, or was fraudulently embezzled.
By the old law of parliament, every member was entitled to receive Penfions and
wages, from the place he repreſented, to defray the charges of his jour- gifts.
ney, and the expences incurred during his reſidence in the capital.
But the members of the long parliament, when it affumed the go-
vernment of the country, inſtead of applying to their reſpective con-
ſtituents, voted to each member, for his own private ufe, at firſt four
pounds a week, and afterwards, it is faid, diftributed among them-
felves, out of the public treaſury, about 300,000l. a year". Nay,
under the pretence of rewarding the godly for their fervices in the
good cauſe, unbounded largeffes were beftowed. Lenthal, the ſpeaker,
received 6000l. at once, befides offices to the amount of 7,730l. a
year. Bradshaw, prefident of the high court of juftice, by whom the
king was condemned, had the prefent of an eſtate worth 1000l. a
year, and the king's houfe at Eltham, for the active part he took in that
memorable tranſaction; and in free gifts to the faints, the fum of
679,800l. was publickly expended ".
98
The parliament is alfo accuſed of fuffering the moſt enormous frauds Publicfrauds.
to be perpetrated with impunity. Inftead of the public accounts being
examined at the Exchequer, where peculation could with difficulty
efcape detection, every branch of the revenue, and every article of ex-
pence, was intruſted to committees of the houſe, who appropriated
whatever fum they thought proper to their own private uſe". By
thefe frauds, the parliament was difabled from paying the army regu-
larly. Its arrears amounted to 331,000l., and that mutiny, which
proved the principal ſource of Cromwell's exaltation, was owing to the
97 Walker's Hift. Pref. p. 3.
98 Ibid. part ii. p. 151. 252.
and part ii. p. 192, 206. 209. 248.
99 Hume, vol. vii. p. 92.
Part i. p. 143. 149. 166, 167, 168, 169, 170, &c.
Stevens, p. 294.
A a
indignation
*
i
178
HISTORY OF THE PUBLIC REVENUE
Secret intel-
ligence.
Debts of the
republic.
General fur-
vey.
indignation with which the troops faw the members of the houſe of
commons rioting in wealth, procured by public plunder, whilft they,
who had fought their battles, could hardly provide themſelves with fub-
fiftence. They loudly complained, "that parliament beftowed upon
"its own members 1000l. a week out of the public treaſury, whilft
the foldiers wants were great, and the people in the utmoſt ne-
"ceffity
100 99
It is faid that Cromwell expended 60,000l. a year in procuring intel-
ligence; a circumftance which has been greatly celebrated, and contri-
buted much to the character he has obtained for political ability: but
it is highly probable that he ſpent more in procuring perfonal than pub-
lic intelligence. Indeed, furrounded as he was with many powerful
and deſperate enemies, fuch arts were the only means by which his
fafety could in any degree be fecured.
It is faid, that the parliament left about 500,000l. in the treafury,
and ſtores to the value of 700,000l., when its authority was aboliſhed
by Cromwell; and yet fuch was the expence of his adminiſtration, that
he died indebted to the amount of 2,474,290l. It principally, how-
ever, confifted in arrears to the army and navy, and therefore was paid
even after the reſtoration.
It was propofed, during Cromwell's adminiſtration, to take a gene-
ral furvey of the whole kingdom, in imitation of that taken in the
reign of Henry VIII. It was begun in London, and the neighbour-
hood, and certain committees were appointed, to enquire upon oath, and
certify the improved value of every man's eftate, both real and perfonal*°*.
But the attempt was, after all, given up: indeed, when thoſe who were
in power exacted what money they thought proper under any pretence,
however frivolous, as delinquency, malignancy, &c. it was unneceffary
to be at the trouble of inveſtigating the wealth and ability of indivi-
duals, for the fake of any regular fyftem of taxation.
100 Walker's Hift. part ii. p. 109.
10 Ibid, part ii. p. 185.
CHARLES
OF THE BRITISH EMPIRE.
179
CHARLES
II.
The reſtoration, however paffionately defired by the people, and
though, on the whole, attended with confiderable advantages to the pub-
lic, from the re-eſtabliſhment of the ancient conftitution, and the de-
ftruction of anarchy and military ufurpation, was nevertheleſs far from
being accompanied with all thoſe beneficial confequences that might na-
turally have been expected. The diſſolute character of Charles II., the
bigotry of his brother James, by whofe advice public affairs were prin-
cipally conducted, and the jealoufy of fuch as were ſtill tinctured with
republican principles, which led them to view every meaſure of the
court with fufpicion and difguft, rendered the greater part of his reign
neither happy at home nor honourable abroad. But the conclufion of
it, when he ſubmitted to be the tool of Lewis XIV., when he deter-
mined to govern without affembling any parliament, and when it be-
came the doctrine of the court that it was better for a king of Eng-
land to be the penfioner of France than to be controlled by five hun-
dred of his own infolent fubjects, bore but little refemblance indeed, to
the legal adminiſtration of the limited fovereign of a free people.
The materials with which we are furniſhed by hiſtorians, and by the
public records, with reſpect to this monarch's income and expenditure,
are fo numerous, that it is difficult to give a conciſe view of the fub-
ject.
Expences.
The expences he incurred were either permanent or incidental.
During the reign of Charles, we firſt perceive what may be called a
peace-eſtabliſhment. Ever fince the reſtoration, it has been thought ne-
ceffary to provide, even in time of peace, for the national protection
and defence; and hence have ariſen permanent, naval, military, and
ordnance expences.
1. Permanent
expences.
The navy, at this period, required about 300,000l. a year, exclufively The Navy.
of the fums laid out in time of war, and occafional grants from parlia-
ment. But this, though a confiderable part of Charles's revenue, was
A a 2
hardly
180
HISTORY OF THE PUBLIC REVENUE
Army.
44
Ordnance.
Civil lift.
hardly ſufficient to preſerve that fuperiority in maritime power, which
Britain ought ever to maintain. The ſtrength of Holland, at fea, was
nearly equal; and that ambitious monarch Lewis XIV. exerted all the
abilities of his ſtateſmen, and all the wealth of his fubjects, in attempt-
ing to raiſe a navy adequate to the ſupport of his proud and lofty pre-
tenſions to the univerſal monarchy of Europe.
Charles was the firft king of England who kept up any body of
troops in time of peace. Before his reign, the fovereigns of this
country, confiding in the affections and native valour of their people,
maintained no ſtanding forces, and neither had guards to attend them
in their progreſs, nor to ftand as centinels at their gates. This altera-
tion in our domeſtic œconomy has often been condemned; and yet
the conduct of other powers, in keeping up formidable bodies of ex-
perienced veterans, rendered it to a certain degree indifpenfably necef-
fary. The annual expence of this monarch, for guards and garrifons,
amounted to about 202,000l. and the number of his troops varied
from four to eight thouſand men. Even that ſmall body excited the
fufpicion and jealoufy of the public; and, by a vote of the houſe of
commons, anno 1679, was declared contrary to law 02.
The ordnance, including ordinary and extraordinary expences,
amounted only to about 40,000l. a year: a very moderate charge,
when compared to modern eſtimates: but it was then imagined, that
fortifications were unneceffary in England; nor had the artillery be-
come fo important a branch of the military department.
The nature and amount of the civil lift, and of the other expences.
of the crown, during this reign, are fo clearly illuftrated by the fol-
lowing ſtate of its propofed expenditure for the year 1676, that any
farther explanation feems to be unneceffary..
102 Hume, vol. viii, p. 106.
Expences
OF THE BRITISH EMPIRE.
181
Expences of the Crown for one year, as allotted by the Council,
Houſehold
Buildings and repairs
Privy purſe
For the queen
Public intelligence
Treaſurer of the chamber
Great wardrobe
Band of penfioners
Robes
January 26, 1675-6.
:
Jewel office
Penfions, including the queen's mother, Duke of York, &c.
Ambaffadors
Judges, maſters in Chancery, &c.
Maſter of the horſe
Caſual diſburſements
Hawks, harriers tents, tails, &c..
Secret ſervice money
New years gifts
T'ower expences for priſoners
Management of excife and cuftoms
Angel gold for healing medals
Liberates out of the Exchequer
Navy
Army
Ordnance
£ 52,247
10,000
36,000
23,000
5,000
20,000
16,000
3,000
4,000
4,000
87,000
40,000
49,000
10,000
10,000
1,500
20,000
3,600
768
63,500
2,000
1,500
£462,115.
Peace Eſtabliſhment.
£300,000
212,000 552,000
I
40,000
Garrison of Tangier
Intereft of the king's debts
Miſcellaneous Expences..
I
1
£ 1014,115
57,200
100,000
£1,171,315
It is probable, however, that the permanent expences of government:
were in general more confiderable; for previous allotments, ſtrict
computations,
182
HISTORY OF THE PUBLIC REVENUE
2. Incidental
expences.
Expences on
the reftora-
tion.
Debts of the
Grown,
computations, and plaufible eſtimates, can hardly ever be rigidly ad-
hered to.
The parliament, foon after the reſtoration, had voted the king a re-
venue of 1,200,000l. a year103. But that fum, which would have de-
frayed the ordinary expences of the crown, was never fully made up:
nor were its deficiencies compenfated by new and additional fupplies.
The king, at the fame time, incurred many temporary and incidental
expences of ſo heavy a nature that he was kept in perpetual diſtreſs.
At the conclufion of the civil war, every veftige of royalty had
been annihilated. The king's palaces and furniture had been fold; the
jewels of the crown had been difpofed of; and every meaſure had been
taken, as if monarchy were never again to be the eſtabliſhed
government
of England. Parliament, therefore, was obliged to grant confiderable
fums to defray the expences of the coronation, and to make up for thoſe
heavy loffes which the crown had fuftained. By two different acts,
140,000l. were raiſed and appropriated to theſe purpoſes **: and af-
terwards, a free and voluntary preſent was given to his majeſty, the
produce of which is unknown. 105.
Debts to a large amount were certainly contracted by the king, dur-
ing his refidence on the continent, and by his father, during the courſe
of the civil war; both of which it was incumbent on this monarch to
diſcharge. But, above all, Charles owed a debt of gratitude to the un-
happy cavaliers who had ruined themſelves by their exertions in the
royal cauſe, which it was hardly poffible, with a ſmall revenue, fully to
diſcharge. But he ought ſurely to have ſubjected himſelf to any pecu-
niary difficulties, rather than to have fuffered ſo many zealous friends to
continue in fuch diftrefs. Parliament voted 60,000l. to be diftributed
among that unfortunate deſcription of men ; and this was the princi-
pal recompence they received for their loyalty and ſervices. Some atten-
tion alſo was paid to thoſe who had materially contributed to the king's
prefervation after the battle of Worcester; and Charles fometimes could
not refift the accounts he received of their calamitous fituation, but oc-
cafionally ſupplied them with what money he could poffibly fpare, from
the rapacity of his courtiers.
103 Comm. Journ. vol. viii. p. 150.
105
13 Car. II. c. 13.
104
206
12 Car. II. c. 21. 29.
106 Ibid. c. 13, 14.
One
OF THE BRITISH EMPIRE.
183
the army.
One of the firſt and moſt neceffary ſteps after the reſtoration, was Dibanding
the diſbanding of the republican army, which had occafioned fo many
revolutions, and had been fo much inured to rapine and flaughter.
The expence of this meaſure was confiderable; for it was requifite to
pay up their arrears, and other legal demands, previoufly to their dif-
miffion. It is faid that the king, when he reviewed this formidable
body, before it was difbanded, could not avoid expreffing his wifhes to
retain them in his pay; and nothing but Clarendon's weight and influ-
ence could have prevented his attempting, by fome evafion or other, to
have continued them in his fervice.
The fortreſs of Tangiers in Africa, was included in the dowry which Tangiers,
Charles received with Catharine of Portugal: and the poffeffion of it
was fuppofed to be of confiderable uſe in protecting our trade to the
Mediteranean. Great fums of money, therefore, had been expended
in the improvement of the harbour, and in adding to the fortifications;
and the garriſon maintained there coft from 50,000l. to 60,000l. per
annum. But this expence did not continue throughout the whole of
Charles's reign: for when he found that it was impoffible for him to
depend upon regular fupplies from parliament, he ordered the town to
be abandoned, the mole to be entirely deſtroyed, and the garriſon to
be brought over to England.
war.
The war which Charles entered into with the Dutch, was unjuſt in First Dutch
its commencement, and impolitic in its continuance. They were willing
to have given him every fatisfaction he could reafonably defire; and in
confequence of the injuftice of his conduct, he had not only to contend
with the republic of Holland, then in the zenith of its power, but alſo
with France and Denmark, by whom that ſtate was at laft fupported::
and however keenly his fubjects might at firft engage in fo unjuſtifiable
a quarrel, from commercial jealouſy of their neighbours, yet he had
every reaſon to expect that they would foon grow weary of furniſhing.
him with ſupplies, unleſs encouraged by the moft fignal fucceffes. Par-
liament voted the fum of 5,483,8451. for carrying on the war. But
the funds appropriated to the purpoſe were not fufficiently productive.
The war coft the Dutch forty millions of livres a year, above three millions
fterling "". The only advantage which England received from it was the
197 Hume, vol. vii. p. 419. Note,
acquifition
x84
HISTORY OF THE PUBLIC REVENUE
Second
Dutch war.
Preparations
againſt
France.
Profufenefs.
Anno 1675.
acquifition of New York: a poor recompence for the diſgrace at Chat-
ham, and the blood and treaſure waſted in ſo iniquitous a conteſt!
Of all the combinations which modern Europe can produce for the
deftruction of any particular ftate, perhaps that between France and
England, for the annihilation of the Dutch republic, is the leaft to be
defended. Louis had fome reafon to be diffatisfied with Holland, for
having deſerted his alliance; and it might be expected that a defpotic
monarch, impelled by political ambition, and religious bigotry, would
rejoice in an opportunity of diſplaying his ftrength, even if he did
not add to his dominion; and would willingly contribute to humble the
pride, and to cruſh the power of a proteſtant republic. But in Charles
were united, upon this occafion, the meaneft treachery, the moft infa-
tiable appetite for plunder, and a total difregard for the public intereſts
of his own kingdoms. His people, afhamed of the attempt, and
dreading the confequences of its fuccefs, refufed to give him any con-
fiderable affiftancc; and by this negative fuccour to the Dutch, greatly
contributed to their fafety. During the war, the ſum of 1,238,750%.
was voted by parliament; but the object of it was to procure the recall
of the declaration of indulgence: and it was finally granted to recom-
penſe the king for agreeing to its being annulled.
108
2
The only other material warlike expence, during this reign
was the
making preparations for a rupture with France, to which the king was
ſtrongly urged by his parliament. Some fupplies were granted for that
purpoſe, which were faithfully applied: and it is alſo ſuppoſed that
Charles added confiderable fums out of his own perfonal revenue.
But the king and his parliament had become fo jealous of each other,
that the affair ended in nothing; and in confequence of theſe unfortunate
differences, the allies of England were left at the mercy of France, and
obliged, at the congrefs of Nimequen, to accept of any terms that
Louis thought proper to prefcribe.
pro-
The difgraces of this monarch's reign were greatly owing to his
digality, In one of his fpeeches to parliament, he confeffed that he had
not been altogether ſo frugal as he might have been, and refolved to be
for the future. With a narrow revenue, he endeavoured, during the
103 Some affiſtance was given to Portugal; an expedition fent againſt Algiers; and
fome diſturbances quelled in Virginia. But the expence could not be very great.
4
greater
OF THE BRITISH EMPIRE.
189
greater part of his reign, to fupport a fplendid court, profufe mif-
treffes, and rapacious favourites: but when he found that it was necef-
fary, in confequence of difputes with his commons, to alter the former
tenor of his life, he difplayed a firmneſs and ftrength of mind, of
which he was fuppofed incapable. He became as much diftinguiſhed
for economy as he had been for profufion; and, greatly retrenching
his expenditure, he was able to carry on the ufual routine of govern-
ment, for the ſpace of about three years, upon his own revenue, with-
out the affiftance of any fupply from parliament: and it is faid that he
had determined to alter the whole ſyſtem of his public and private con-
duct, and to throw himſelf upon the affections of his people, when
death interpofed, and proved how dangerous it is to procraftinate fuch
refolutions 9
Refources.
Such were the expences which Charles incurred. His power and
ability to defray theſe heavy charges aroſe from a permanent income-
from parliamentary grants-and from miſcellaneous refources.
When the commons took into confideration the fettlement of the
king's revenue, they found that his father's income had amounted to
about 900,000l. a year; and they came to a refolution, that the perma-
nent income of the crown fhould be made up 1,200,000l. The fol-
lowing are the principal branches of which it was intended to be com-
pofed.
1. Permanent
income.
One of the first acts, paffed after the reſtoration, contained a grant of Cuſtoms,
the fubfidy of tunnage and poundage for the king's life. This act is,
by perfons converfant in that branch of the revenue, commonly known
by the name of the great ftatute", on account of its being the founda-
tion of our modern cuſtom-houſe duties; and the rates thereby laid on
are called the old fubfidy", being a complete legal confirmation of all
the ancient duties which had been formerly impofed. It is alſo remark-
able from the rates varying according to different circumftances. Aliens
`were to pay 61. per tun on wine imported: natives 47. 10s. in London,
109 Hume, vol. viii. p. 209.
AII
12 Car. II. c. 4.
110 Forfter, introd. p. 40.
Smith's Wealth of Nations, vol. ii. p. 495.
B b
and
186
HISTORY OF THE PUBLIC REVENUE
Feudal pre-
rogatives.
Origin of
the heredi-
tary excife.
Hearthmo-
ney.
and only 37. in other parts. Thus the higheſt duty was exacted in the
capital, where the people were the moſt wealthy, and conſequently the
beft able to afford it.
The only ftipulation that was made at this time, with the crown,
in
any reſpect beneficial to the people, was the abolition of the feudal
rights, and incidents of wardſhip, marriage, livery, and purveyance,
which, fince the reign of William the Norman, had proved fo griev-
ous a load upon the inhabitants of this country. One would naturally
have imagined that a ſcheme fo generally uſeful could hardly have met
with an opponent: yet a well-meaning and intelligent author has writ-
ten a voluminous quarto, to prove the fatal confequences that would ne-
ceffarily refult from the alteration". Fortunately the event has fully
difproved his gloomy predictions.
Though the propriety of annihilating fo obnoxious a branch of the
revenue as the feudal prerogatives was pretty generally acknowledged,
yet it was a matter of confiderable difficulty to determine how to
make up the deficiency. In ſtrict juſtice, thoſe ought to have been
loaded with the payment of the commutation who were liable to the
former burden; and in the reign of James, when the fame plan was
in agitation, it was propofed that, in exchange, an annual fee farm
rent ſhould be fettled, and infeparably annexed to the crown"¹³. But
exciſes having been introduced by the long parliament, and paid
without much oppofition or complaint, inſtead of a land-tax, an ex-
cifeable duty of fifteen pence per barrel upon all beer and ale, and a pro-
portionable fum upon other liquors fold in the kingdom, was eſtabliſhed;
which, together with the profits of wine licences, it was calculated
would produce from 200,000l. to 300,000l. a year, and was confi-
dered to be an ample compenſation.
But the income which parliament had voted as neceffary for the pub-
lic fervice could not be raiſed without the aid of fome new additional
impofition; and the duty of hearthmoney was at laſt granted to the
112 The antiquity, legality, reaſon, duty, and neceffity, of pre-emption and purveyance
for the King; by Fabian Philips. London, printed anno 1663. 4to. in 495 pages.
113 Blackft. Comm. vol. ii. p. 77.
king
OF THE BRITISH EMPIRE.
187
.
king and his fucceffors 4. This was a tax of two fhillings for every
hearth in all houſes paying to church and poor; and notwithſtanding
the popular objections which have been urged againſt it, there is no
well-founded reafon to call it either burdenfome or unequal, and it is
ftill paid in Ireland without inconvenience or complaint.
The income which was in general collected from the various branches
of the crown revenue, during this reign, will appear fufficiently evi-
dent from the following ſtatement :
Account of the permanent Income of the Crown, anno 1663.
Cuftoms
Royal domains
Dean Foreſt
Poft office
Hereditary exciſe
Hearthmoney
Firft fruits and tenths
~
Coinage and pre-emption of tìn
Wine licences
Miſcellaneous branches
£ 400,000 o
100,000
5,000 0
o
- 26,000
274,950 0
170,603 12
18,800 0
12,000 O
20,000 0
54,356 14
115 £1,081,710 6
It appears, from this ſtatement, that the parliament did not make up
the full income which it had voted. When the firſt fervor of the re-
ſtoration was over, they probably repented of the raſh vote they had
haftily come to, and perceived the neceffity of preſerving the crown
dependent upon the people. They confidered that they had beſtowed
a fceptre upon Charles, when his fituation was accounted to be the moſt
defperate; and they thought it unneceffary to accompany fo ſplendid a
gift with advantages greatly fuperior to what his anceſtors had en-
joyed.
114 Hume (vol. vii. p. 377.) ftates, that it was only granted during the king's life.
This, and ſome other trifling miſtakes of that excellent hiftorian, ſhould be attended to in
the future editions of his works. The firft act by which hearthmoney was granted was
13 Car. II. c. 10.
15 Comm. Journ. vol. viii. p. 498.
Bb 2
Hiftorians
188
HISTORY OF THE PUBLIC REVENUE
2. Parlia
mentary
grants.
Poll taxes.
Additional
excife and
cuftoms.
Hiftorians differ greatly, whether the parliaments which Charles
affembled were fufficiently liberal to that monarch. Thoſe. who com-
pare their grants with the profuſeneſs of their fucceffors, condemn them
as too parfimonious, and attribute to that circumftance a confiderable
fhare of the diſgraces of his reign. Whereas others, who compare
their amount with thofe of preceding parliaments, accufe them of
prodigality; and contend that none but a penſionary houfe of com-
mons could be fo laviſh. The fact feems to have been, that when par-.
liament diſcovered the king's tendency to profufion, and the inſtability
of his natural character, they were afraid of trufting him with large
fupplies, and were determined, unleſs he purfued meaſures for the
general good, totally to refuſe their affiftance.
The modes adopted to raiſe the money thus occafionally granted were
by poll taxes; by an addition to the excife and cuftoms by fubfidies;
by a land-tax; by a tax on perfonal property; and by a ſpecies of
ftamp duty on legal proceedings.
Three different poll taxes were granted during Charles's reign; one
in particular anno 1660, for difbanding the army, which was intended
to raiſe 400,000l. But though every perfon in the kingdom, above
fixteen years of age, not receiving alms, was charged fixpence, and
heavy rates were impofed upon men of property and rank, yet it was fo
negligently collected that it produced, on the 24th of November 1660,
only 252,167": nor does it appear that there was afterwards. any
addition.
117
By different acts, additional duties were laid upon the importation of
wine and on the fale of excifable liquors. The firft, it was fuppofed,
would bring in 57,000l. a year, and was granted for the ſpace of eight
years The additional exciſe continued for nine years from the 24th
of June 1761. Its produce was fuppofed to be 300,000l. Both
thefe grants were fuffered to expire in confequence of the difputes.
which aroſe between the king and his parliament.
116 Comm. Journ. vol. viii. p. 196.
317 20 Car. II. cap. I.
118 The additional excife was firft granted for fix years, by 22 Car. II. cap. 5, and
afterwards continued for three years, by 29 Car. II. cap. 2.
The
{
OF THE BRITISH EMPIRE.
189
1
2
The laft example of money being raiſed under the name of fubfidy Subfidies.
took place in this monarch's reign. Four entire fubfidies were granted Anno 1673.
by the temporality, and an act was paffed confirming a fimilar grant
119
from the clergy It produced only 282,000l. It was full time to
give up a fyftem of taxation which had become ſo very unproductive,
that the king ſtated in a ſpeech to parliament, that eſtates from 3000l. to
4000l. a year, did not pay above 167. for all the four fubfidies.
Various land-taxes, then known under the name of affeffments, were
granted by parliament. As the acts by which thefe taxes were im-
pofed are not among the printed ftatutes, and as confulting the original
record is attended with fome difficulty, it is hoped that the note fub-
joined, containing an account of the proportions of each diſtrict will
not be unacceptable
Bedford
120
*
119 15 Car. II. cap. 9. & 10.
120 ASSESSMENT of 70,000l. a month, as impofed anno 1660.
£
933 6 8
1,088 17 10
1,283 6 8
Land-tax,
Berks
Bucks
Cambridge
Ifle of Ely
County of Cheſter
City of Cheſter
Cornwall
Cumberland
Derby
Devon
Oxford
Dorfet
Poole
Durham
1
Yorkshire and York
Hull
Effex
Gloucefterfhire
Gloucefter
Hereford
Hertford
Huntingdon
Kent
Lancaſter
1,102 10 0
367 10
770 0 0
85 11 2.
1,633 6 8
108 O O
933 6 8
3,003 15 6
107 6 8
1,311 10
6
10 14
153 14 4
3,043 8 10“
67 13 O
3,500 0
1,626 6 8
162 II 2
1,166 13 4
1,400 0 0
622 4 6
3,655 II
2
933 6 8
1
Carried over
£ 29,070 12 4
190
HISTORY OF THE PUBLIC REVENUE
Taxes on
perfonal pro-
perty.
There was a grant in 1670, amounting to 800,000l.; and the duties
impoſed upon the public to raiſe that ſum, were a tax of fifteen ſhillings
on
Leiceſter
Lincoln
London
Middleſex and Weſtminſter
Monmouth
Northampton
Nottinghamſhire
Nottingham
Norfolk
Norwich
Northumberland
Newcaſtle
County of Oxon
Rutland
Salop
Stafford
Litchfield
Somerſet
Briſtol
Southampton
Suffolk
Surrey
Southwark
Suffex
Warwick
Worceſterſhire
Worceſter
Wilts
Wales
Berwick
Weftmoreland
Brought over
4
£ 29,070 12
1,088 17 8
2,722 4 10
4,666 13 4
1,788 17 10
466 13 4
1,400 o o
903 4 4
30 2 4
3,624 8 10
186 13 4
179 19 10
35 11 8
1,127 15 6
272 4 6
1,322 4 4
919 6 8
14 0 0
2,722 4 6
171
2 2
2,022 4 4
3,655 II 2'
1,565 5 6
184.14 6
1,905 11 2
1,244 8 10
1,182 4 4
62 4 6
1,944 8 10
73 19 4
3,227 3.6
5 16 8
£ 69,786 10 0.
One of the bills of affeffment in the time of the Commonwealth, for the year 1656 may
be ſeen in Scobell's Collection, p. 400. But the above frate is taken from a copy
of the Ordnance of the lords and commons for levying the affeffment 1660, which I
was fo fortunate as to meet with. Davenant, vol. i. p. 32, obferves, that the affeffment
was
OF THE BRITISH EMPIRE.
191
J
on every [hundred pounds belonging to bankers; the fame fum on
every hundred pounds lent to the king at above 6 per cent. intereſt; ſix
fhillings per cent. on all perſonal eſtates; two fhillings in the pound on
the falaries of all offices and places, to which was added a fhilling in the
pound on lands and mines 12 This was principally aimed at perſonal
property; and it is the only example, in the hiſtory of our finance, of a
tax on bankers, and on ſuch of the creditors of the crown as received
beyond the legal intereft, which at that time was 6 per cent.
:
The revenue arifing from ftamps was firft introduced into England Stamps.
anno 1671. It was impoſed by a ſtatute entitled, “An act for laying
impofitions on proceedings at law 22" The rates are various, and
66
the particulars ſo very numerous, that it would be improper to enter
into the detail. The duty was at firft granted for nine years from the firſt
of May 1671. It was afterwards continued for three years longer, when,
in confequence of the unfortunate jealoufies between the crown and
parliament it was fuffered to expire.
It will now be proper to give as full an account as it is poffible to
draw up at this time, of the money granted by parliament during
Charles's reign, in addition to his permanent revenue.
was very favourable to the northern and western parts of England. He has formed a
curious table of the taxes raiſed in England by various modes, and what proportion was
affeffed on each particular county; but the affeffment of 1660 was omitted, which was
an additional reaſon to infert it in this work.
121
22 Car, II. c. 3.
122 Ibid. c. 9.
1
Parliamentary
192
HISTORY OF THE PUBLIC REVENUE
1
Parliamentary Grants.
1. For the Debts of the Republic, and difbanding the Army.
1. Three months affeffment, at 70,000 l. per month
2. The firſt poll tax
£
210,000
252,167
1661.
P
3. Two months affeffment, at 70,000 7. each
140,000
4. Six months affeffment, at 70,000 l. each
2. Temporary Grants.
420,000
Total
1,022,167
1660.
1. For a fpeedy fupply to his majeſty
2. Ditto for the expences of the coronation
3. Forfeited eſtates of traitors 123°
1662.
4.. Grant for paying the king's debts
£
70,000
70,000
75,000
1,260,000
5. To be diftributed among the loyal cayaliers
1663.
6. Four entire fubfidies from temporality and clergy
60,000
282,000
1664.
7. Firſt aid for the Dutch war
2,477,502
1665.
8. Second aid for ditto
1,250,000
1666. 9. Third aid for ditto
I,256,345
10. Second poll tax for ditto
500,000
1668.
11. Grant for fitting out a fleet
310,000
1670. 12. Perfonal tax on bankers, and for the king's debts
800,000
1673. 13. Grant during the Dutch war, voted in order to procure
the repeal of the declaration of indulgence
1,238,750
1677. 14. Grant for building thirty ſhips of war
584,978
15. Third poll tax for preparations againſt France
16. Grant for difbanding the army, &c.
150,000
414,000
206,462
17. Grant for ditto
3. Permanent Grants.
1670.
1. Additional tax on wine for eight years
456,000
2. Additional excife for nine years, about
300,000
3. Stamp duty for twelve years.
266,666
>
13,014,868
Arrears of excife, voluntary prefents from parliament to
the king, and the duke of York, and money in the
hands of receivers at the reſtoration, fuppofed
,}
400,000
£ 13,414,868
$
123 It appears from Comm. Jour. vol. viii. p. 498. that the clear annual value of theſe
eflates amounted only to 5000l. They were not probably worth more than 15 years purchaſe.
2
1
Befides
OF THE BRITISH EMPIRE.
493
Beſides theſe grants, feveral others, to the amount of about a million
more, were loft by the difputes which fo frequently aroſe, during this
reign, between the crown and parliament ***.
124
•
neous refour-
But, in addition to the king's permanent revenue, and the grants of par-3 Miscella
liament, his exchequer was enriched by other means, which it will be
neceffary briefly to explain.
ces.
tion.
The dowry which the king was to have received with Catherine of Queen's por-
Portugal, befides Tangiers in Africa, and Bombay in the Eaſt-Indies,
was 500,000l. Such engagements, however, are not always fulfilled
with honour and punctuality; and it is faid, that only 250,000l. was
actually paid "". The expences which he incurred in defending Portu-
gal from the Spaniards, foon exhauſted this ſupply.
domains.
The frugality of parliament during this reign, of which fo much has Sale of the
been faid, was perhaps in a great meaſure owing to the impatience with
which the people paid even very moderate burdens. When an affeffment
for fix months was granted in 1660 to raiſe the fum of 420,000 /., it
was thought neceffary, by a clauſe in the act itſelf, to affure the public,
that it was not intended to continue that mode of impofition, though
it was the only productive one at the time. And the neceffities of the
crown, anno 1670, being much greater than the Houſe was either
willing, or perhaps could venture to fupply, the king, with little dif-
ficulty, procured an act to diſpoſe of the fee-farm rents, the principal
part that ſtill remained of the royal domains 126. The produce of this
fale is very uncertain; fome authors calculating it at 1,800,000l. and
124 The amount of Charles II.'s revenue has been a ſubject of great difpute between
the Whigs and Tories. It originated from a well-known Whig tract, intitled, "A Letter
"from a By-ftander to a Member of Parliament;" in which the author dwelt much on the
profuſion of the Tory parliaments, which that monarch affembled. It was foon animadverted
upon, in a paper printed anno 1742, called, “ A proper Anſwer to the By-ſtander." Mr.
Carte, the hiftorian, foon afterwards entered the lifts, and publifhed a full answer to the
fame work, which was attacked in a Letter to the reverend Mr. Thomas Carte, by a
Gentleman of Cambridge, printed anno 1743. This produced an elaborate performance,
by Mr. Carte, intitled, "A full and clear Vindication of the full Anfwer to a Letter from
"a By-ftander," which clofed the controverfy. But the beft work upon the fubject is,
"The preſent taxes compared to the payments made to the public, within the memory of
man, in a Letter to a Member of Parliament," printed for J. Marſhall, anno 1749.
12 Hume, vol. vii. p. 385, note.
22 Car. II. cap. 6.
•
<<
126
Сс
others
194
HISTORY OF THE PUBLIC REVENUE
Sale of Dun-
kirk.
others at only 100,000l. The exact fum it is impoffible at preſent to
afcertain; but it probably muſt have amounted to 500,000l.
The policy of acquiring a poffeffion on the continent like Dunkirk,
has been much difputed. Many great and reſpectable characters have
contended, that ſuch poffeffions are expenfive; occafion diſguſt and en-
mity, in thoſe to whom they naturally belong; and give riſe to an inter-
ference in continental concerns, with which England has no immediate
relation. Theſe objections are weighty; but their force is confiderably
diminiſhed by this important advantage. The keeping up of any confi-
derable and collected body of forces, it is well known, is thought danger-
ous to the liberties of the people. If it were not, therefore, by means
of remote foreign garrifons, it would be difficult for this country either
to attain or to preſerve that full and complete experience and ſkill in
arms, and that knowledge of difcipline, and the arts of war, which
every nation ought to poffefs; and of all the places on the Continent,
Dunkirk, naturally ftrong, eafily defended, lying between the French
and Imperial territories, and confequently leſs obnoxious and offenſive
to either of thoſe two powers, was decidedly the moſt eligible. It was
therefore not a little unfortunate that an acquifition which might have
been ſo ſerviceable to this country, fhould have been diſpoſed of merely
in confequence of a fatal jealoufy between the crown and parliament.
The latter were afraid of trufting the king with the money neceffary to
defray the expence of maintaining the garriſon, whilft the king, on the
other hand, would not agree to transfer the poffeffion of Dunkirk to
the parliament (who were willing to bear any charges it might amount
to), left they ſhould acquire a feparate dominion and independent au-
thority ¹¹7.
127
The famous Clarendon was the perfon by whom the fale was con-
ducted on the part of England; and after much negotiation, a bargain
was at laft concluded for the fum of 400,000l. A part of the price
(amounting to 1,500,000 French crowns) was fent over in fpecie; and
when coined into Engliſh money, yielded 336,7731. Clarendon was
afterwards impeached by the houſe of commons, for having adviſed this
meaſure; and it was the moft fpecious charge that could be urged
againſt that virtuous and able minifter.
27 D'Eftrades, Auguft 21, 1661.
There
OF THE BRITISH EMPIRE.
195
i
France.
There is no circumftance of Charles's reign fo peculiarly difgraceful Penfion from
as his acceptance of a fecret penſion from the court of France. To
whatever difficulties a fovereign may be reduced, it is furely beneath
the royal dignity to become a voluntary dependant on another.
It was
particularly infamous in Charles, who had it in his power, by vigorous
meaſures abroad, and by cultivating a good underſtanding with his
people at home, to become the arbiter of Europe. But to pretend to be
the friend of Spain, of Holland, and of Auſtria, when in fact he was
bound, by the moft folemn engagements to the court of France, is a
degree of treachery much beyond the common fineffe and artifices of a
court, or the utmoſt juſtifiable ſtretch of political manœuvre. It is im-
poffible to ſay what money Charles actually received in confequence of
this fhameful connexion. It appears that he demanded 18,000,000 of
livres (about 750,000l. fterling), for fecretly favouring Lewis, at the
congrefs of Nimeguen. Various other fums he alfo received at diffe-
rent times 123. The whole may be eſtimated at 950,000%.
The wars which this king entered into againſt the Dutch were princi- Plunder.
pally with a view of plundering a wealthy, and, as he imagined, an al-
moſt defenceleſs neighbour; at leaſt one greatly inferior, în point of
ftrength and reſources, to the dominions which he governed. But in
theſe felfish and interefted defigns, he was generally diſappointed. In
the firſt Dutch war, an Eaft Indian fleet, very richly laden, was pre-
vented from falling into his hands by the affiftance of the Danes, who
protected it in the harbour of Bergen: and in the ſecond war, another
fleet, coming from the Mediterranean, valued at a million and a half,
efcaped, though with confiderable difficulty. Charles, notwithſtanding,
found means to reap fome pecuniary advantages from theſe wars. His
ſhare of prize-money, during the firſt war, amounted to 340,000l.;
and, in confideration of his agreeing to conclude the fecond peace, he
received 800,000 patacoons, about 300,000l. fterling.
Charles was reduced to fuch difficulties, anno 1672, that he declared,
whoever diſcovered a mode to ſupply his neceffities ſhould be rewarded
with the office of treaſurer. Clifford, created Lord Clifford, as
well as entruſted with the care of the treaſury, for the expedient he ſug-
123 Hume, vol. viii. p. 206, note T. 207, note U.
Cc 2
gefted,
Shutting up
the Exche-
quer.
}
195
HISTORY OF THE PUBLIC REVENUE
Extortions.
gefted, propoſed to fhut up the Exchequer; and inftead of repaying
any principal fums that had been advanced upon its fecurity, to
iffue only the legal annual intereft of 6 per cent. The nature of this
infamous tranſaction will be more fully explained in another part
of this work: at prefent it is only neceffary to ftate the pecuniary
profit which Charles reaped from it. Hume calculates the advan-
tage only at 1,200,000l."; but it appears from the journals of
parliament, that the intereft, at 6 per cent., amounted to 79,566"³°;
confequently the principal muſt have been 1,328,5261.
The principles of the Engliſh conftitution, in regard to taxation,
were at this time ſo fully underſtood, and the power of the crown to levy
arbitrary impofitions fo totally aboliſhed, that during the greater part of
Charles's reign, his fubjects had little reafon to complain of illegal exac-
tions. An arbitrary duty, however, was laid on coals during the war
with Holland, under the pretence of providing convoys, which the par-
liament very properly complained of. And when the king, în conſe-
quence of the imprudence and mifconduct of thoſe who demanded the
excluſion of his brother from the crown, had obtained a complete vic-
tory over that formidable party, and, indeed, had become almoft fully
maſter of the liberties of the people, he compelled the different corpora-
tions to ſurrender their charters into his hands, and exacted confiderable
fums previouſly to their reftitution ¹³¹ But this did not take place till
near the conclufion of his reign.
131
It will now be proper to give a general view of this monarch's in-
come and reſources.
129 Hume, vol. viii. p. 326.
*з Ibid. vol. viii. p. 181.
13 Comm. Journ. vol. x. p. 109.
GENERAL
OF THE BRITISH EMPIRE.
197
`GENERAL VIEW of the Money received by Charles II. during the
1. Queen's portion
whole courſe of his reign.
1. MISCELLANEOUS RESOURCES.
2. Sale of the Domains
3. Price of Dunkirk
4. Penfion from France.
5. Plunder
6. Shutting up the Exchequer
I
1
1
1
I
£250,000
500,000
400,000
950,000
640,000
7. Extortions
2. PARLIAMENTARY GRANTS.
The various fums granted by parliament for public fervices
3. The PERMANENT REVENUE.
1
The permanent income of the crown, at the rate of 1,100,000%. a
year, for the ſpace of twenty-four years
1,328,526
100,000
£ 4,168,526
13,414,868
£ 17,583,394
26,400,000
*32 £ 43,983,394
Thus it would appear that Charles received, in all, about 43,983,394/
in the courſe of his reign, which would make above 1,800,000l. a
year; a fum adequate to the national expences, had it been managed
with frugality; at leaft equal to every neceffary charge in times of
*32 Authors differ much with regard to the total amount of this monarch's income.
Hume, vol. viii. p. 326, calculates the ordinary revenue at about 1,200,000l.; the
grants of parliament at 476,8081: a year: and to this he adds 1,200,000l. for ſhutting up
the Exchequer; but he omits feveral of the other fources above ftated. The author of a
tract, printed 1749, entitled, "The prefent Taxes compared to the Payments made to the
"Public within the memory of Man," fuppofes the ordinary revenues, on an average, to
be a million and a half yearly. Carte has drawn up an account in many reſpects errone-
ous, from which he contends, that only 32,474,2651. was raiſed upon the people of Eng-
land in the twenty-four years of Charles's actual poffeffion of the government, making
only 1,353,0951. a year. See Full Anſwer, p. 161. Another author (Letter to Carte,
p. 101) makes the whole fum received by this monarch 54,842,449 or 2.300,000l. per
I have endeavoured to ftate a juft and proper medium.
ANNUN
peace
198
HISTORY OF THE PUBLIC REVENUE
Coinage.
Fishing Li-
cence.
Alteration in
the mode of
taxing the
clergy.
peace and tranquillity; though in time of war it might have required
fome addition.
If we may judge from the ſtate of the coinage during this monarch's
reign, no conſiderable addition was made to the metallic wealth of the
country. Only 4,177,253l. 12s. 5d. was coined in gold, and
3,722,1801. 25. 8 d. in filver, making in all 7,899,433l. 15s. 1 d.
The attempt was not abandoned, during this reign, of compelling the
Dutch to pay for the liberty of fishing on the Britiſh coafts. Charles
demanded 10,000l. a year for granting them this privilege. Whatever
juftice there might be in the claim, the bad fuccefs of his warlike enter-
priſes againſt that nation, could not furniſh him with any flattering ex-
pectations of his demand being complied with.
The financial hiſtory of this period is diftinguiſhed by two important
alterations; in regard to the manner of impofing taxes on the clergy,
and the mode of granting public fupplies.
Among the many valuable privileges which the church had acquired
in the dark and fuperftitious ages of modern Europe, that of an exemp-
tion of taxes was not the leaſt conſiderable. Under the pretence that their
power was derived from Heaven; and that their eftates were the pro-
perty of the Deity, and confequently facred and inviolable, they denied
all ſubjection to temporal authority, and refuſed to contribute in com-
mon, with the public at large, to the neceffities of the State. The fubfi-
dies they paid, were either in confequence of bulls from the Pope, whom
they confidered as their ſpiritual, and, indeed, real fovereign, or impofed
by the authority of their own ecclefiaftical ſuperiors, to whom they pro-
feffed, in a fubordinate degree, canonical obedience.
Edward I. it has been already obferved, was the firft monarch of Eng-
land who compelled the clergy to pay taxes, not only without the au-
thority, but in avowed contradiction to a bull from Rome; and for
many years after, the convocation was regularly affembled at the ſame
time with the parliament, for the purpoſe of granting fupplies "". This
practice continued until the long parliament affumed the government of
country: their religious principles were fo adverfe to all diſtinct or
the
133 Gilb. Excheq. p. 48.
independant
OF THE BRITISH EMPIRE.
199
independant ecclefiaftical authority, that no convocation was fuffered to
meet; and the income and poffeffions of the church were included in
thoſe monthly affeffments or taxes on real and perfonal property, which
were levied during the exiſtence of the commonwealth.
After the reſtoration, the hierarchy and the rights of the convocation
were again re-eſtabliſhed. But the clergy were afraid that the privilege
of taxing themſelves would prove a burden inſtead of being a benefit.
They remembered that during the reigns of the former monarchs of
the houſe of Stuart, confiderable grants were perpetually expected from
them; and that fuch was the influence attending the clerical patronage
of the crown, that much heavier taxes were impofed upon the property
of the church, than on the eſtates of the laity. They were not a little
anxious, therefore, to be put upon the fame footing as to taxation and
reprefentation, that they were in the time of the long parliament; and
accordingly it was agreed upon, that the revenues and property of the
church fhould continue to be included in the monthly affeffments which
were impofed "+; and that the parochial clergy ſhould be allowed to
vote at elections, though incapable of being elected". Theſe terms
the parliament affented to, as they proved the means of acquiring a con-
fiderable acceffion to its power of taxation; and rendered the crown
ftill more dependant upon the only body of men by whom its wants
could in any degree be fupplied: nay, as an additional boon, two cleri-
cal fubfidies which had been granted by the convocation were re-
mitted.
134
The grants of parliament were originally confidered, merely as tem-
porary aids to affift the fovereign in defraying the expences he was fub-
ject to, for the benefit of the public; and unleſs the commons hap-
pened to entertain at the time any particular jealoufy of the crown
and its minifters, the fum granted was commonly left entirely to their
difpofal. But after the reſtoration, not only more frequent grants
were demanded, but, in confequence of the poverty to which the
crown was reduced, parliamentary grants had become really necef-
134 It was finally fettled, anno 1664, in confequence of a private agreement between.
Sheldon, archbishop of Canterbury, and Lord Clarendon, in conjunction with the other
minifters. See Burn's Ecclef, Law; voces, Convocation, and First Fruits.
Car. II. c. 4a
135 13
3
fary
Alteration in
the mode of
granting fup-
plies.
200
HISTORY OF THE PUBLIC REVENUE
fary almoſt every year. It was impoffible, however, for parliament,
diftrufting not only Charles's oeconomy, but his regard for the intereſt
of his kingdoms, to veſt confiderable fums of money in fuch unſafe and
improvident hands: it was, therefore, thought requifite to ſpecify the pur-
pofes for which each fum was voted. Thus appropriating claufes came
to be introduced. At one time, the jealouſy of the commons was car-
Anno 1678. ried to fuch a height, that they ſent a bill to the houſe of lords, containing
a clauſe by which the money thereby granted was ordered to be paid
into the chamber of London. But the peers would not fuffer fo great
a ftigma on the king and his minifters to pafs into a law 116. The mode
of appropriation, though in the main right, was nevertheleſs attended
with unfortunate confequences. It abated the jealoufy of the com-
mons. It was natural for them to imagine that grants, thus ſtrictly ap-
propriated, could not be diverted to other purpoſes; and they became
negligent in making the moſt effential of all enquiries, namely, how
the public money was actually expended. At one time, committees of
the houſe of commons, and at another, commiffioners have been ap-
pointed to examine into the public accounts: but the wound has never
been probed to the bottom; and public profufion will never be fully
checked, until not only eſtimates, which are too often fallacious and
unintelligible, but alfo accounts of the manner in which the ſupplies
granted were really ſpent, are regularly laid before parliament.
JAMES II.
There was no department of government in which this rafh and
odious bigot did not betray the defpotic and arbitrary principles on
which he intended that his adminiftration fhould be conducted: but
they were firſt exhibited to their full extent in the article of his reve-
nue. Though the greater part of his brother's income had been
granted only for the life of that monarch, and confequently expired
with him, yet, contrary to the opinion of his council, who adviſed him
to ſuſpend levying the duties until the payment was authoriſed by par-
136 Hume, vol. viii. p. 85.
liament,
OF THE BRITISH EMPIRE.
201
liament, he iffued a proclamation, commanding the cuſtoms and other
taxes to be paid as formerly: and, in his firſt ſpeech from the throne,
after declaring that he expected his revenue fhould be fettled on the
fame footing with his brother's, which was no unreaſonable requeſt,
he very plainly intimated, that any attempt to fecure the frequent
meetings of parliament, by granting moderate fupplies, would be re-
fented. "I muſt plainly tell you, that fuch an expedient would be
very improper to employ with me; and that the beſt way to engage
me to meet you often, is always to ufe me well """."
Thus he gave
them to underſtand, that he would only have recourſe to them, if
they complied with his demands. His fpeeches furniſh the laſt exam-
ple in our hiſtory of an Engliſh monarch attempting to intimidate his
people by the arrogance of his language.
66
137 99
The only public virtues which James poffeffed, were frugality in Expences.
his expences, and a ſtrong defire to increaſe the naval ftrength of his
kingdoms. In the latter article he diſplayed fuch zeal and judgment
as reflects a confiderable degree of luftre on that part of his adminiſ-
tration. But the army was by no means neglected. Under pretence
that the militia were found very unferviceable during Monmouth's re-
bellion, he demanded a fupply from parliament to maintain thoſe ad-
ditional forces which he thought proper to levy at that time'; and he
actually had in pay 30,000 regular troops in England alone, when in-
vaded by his fucceffor.
The only temporary grant during James's reign, which was carried Grants.
into effect, was a ſupply of 400,000l. for the purpoſe of fuppreffing
Monmouth's rebellion". Anno 1685, 700,000 pounds were alſo voted;
bnt the king, as a mark of his diſpleaſure, and to prevent the houſe
from interfering with his pretended prerogative, of diſpenſing with
the teſts impoſed by law, for the exclufion of Catholics, from offices of
truſt and emolument, prorogued the parliament, before the grant
paffed into a law **°
140
The propriety of granting a permanent income to the king for life, Permanent
was one of the many important points which James's parliament had
income.
137 Collection of King's Speeches, p. 177.
139 Hume, vol. viii. p. 226.
138 Hume, vol. viii. p. 180.
14 Mort. vol. ii. p. 658.
Dd
to
.*
202
HISTORY OF THE PUBLIC REVENUE
to determine foon after his acceffion; and fuch was then the great au-
thority of the crown, that a larger revenue was given to James for his
life, than any monarch of England had ever enjoyed ".
It appears
from the following account, which was laid before parliament at the re-
volution, that it amounted to above two millions per annum.
ACCOUNT of the principal Branches of the Revenue, anno 1688,
clear of all Deductions.
Tonnage and poundage, including the wood, coal, and falt farm
Excife on beer and ale
Hearth-money
Poft office
Wine licences
New impofitions on wine and vinegar
Duties on tobacco and fugar
Duty on French linen, brandy, filk, &c.
I
600,000
666,283
245,000
65,000,
10,000
172,901
148,861
93,710
142 £2,001,855
Coinage.
Reflexion.
This account does not include fome of the fmaller articles of re-
venue.
During this monarch's reign, which lafted only four years, there
was coined, in gold, the fum of 2,113,638%. 18s. 8d., and, in filver,
518,3167. 9s. 5d.; making, in all, 2,631,955l. 8s. 12 d.
It is the peculiar happineſs of the people of England that every at-
tempt to diminiſh their rights, or to encroach upon their liberties, has
*** See the arguments on both fides, ftated by Hume with his ufual ability, voł. viii.
p. 221. 222. 223. 224.
Here we muſt take leave of this excellent hiſtorian, from whom
much advantage has been derived in the courſe of this inveſtigation. Indeed, it is impoffible
to give a juſt diſplay of any branch of the hiſtory of England, without making a confider-
able uſe of his remarks. His work, however, is far from being equal. The first part and
the conclufion of his hiftory, is not excelled by any compofition either modern or ancient:
but the middle, which he firſt publiſhed, being compofed with lefs experience in writing,
is not only more prolix, but alſo ſeems to have been drawn up rather as a defence of the un-
fortunate race of Stuart, than as a candid and impartial hiſtory.
142 Comm. Journ. vol. x. p. 37.
been
OF THE BRITISH EMPIRE.
203
کر
been attended with confequences diametrically oppofite to thoſe
which were deſigned at the time; and that every king who has go-
verned ill, has given the public fome compenfation for the offences or
errors he committed, by proving the fource of beneficial laws, and of
additional checks upon tyranny and oppreffion. The crimes and mif-
government of John gave rife to Magna Charta, and all the important
privileges which that charter tended to confirm. The extortions which
that able and high-fpirited prince, Edward I. was led into, in confe-
quence of the expenſive foreign wars in which he was engaged, occa-
fioned the famous ftatute, De Tallagio non concedendo; the paffing of
which is unquestionably one of the moſt important events in the hiſtory
of this country. And the exactions attempted to be enforced by the
firſt princes of the houſe of Stuart, joined to James's obftinacy, bi-
gotry, and infatuation, were productive of a revolution equally favour-
able to our civil and religious liberties, and of the eftablishment of a
form of government "the moſt perfect in theory, and the happieſt in
practice, that has ever exiſted among mankind:" a conftitution which,
it is proper to obſerve, was not the offspring of hafte, or projected by one
man; but was gradually formed in the courſe of a long and important
ftruggle, which lafted from the death of Elizabeth, to the acceffion of
William III., and employed the powers of as able men as ever exiſted
in any country whatfoever. It was from the colliſion of fuch abilities
alone that fo valuable and well conftructed a fabric could have been erect-
ed; and its blemiſhes (for, like all other works of human invention, it is,
in ſome reſpects, defective) we truft will be removed, without pulling
the edifice to pieces, without injuring its beauty, or impairing its vigour
and its ftrength.
પ
Theſe were the moſt important financial tranſactions which took place Conclufion.
under the government of the houſe of Stuart, during whofe adminiftra-
tion many new branches of revenue were introduced, fuch as excifes,
ftamps, the poft office, monthly affeffments, &c.; and many old re-
fources were either abandoned, as unproductive, or abolished, on ac-
count of their oppreffion. Hence fubfidies were given up, and the
whole fabric of feudal exaction, of wardship, marriage, &c., together
with benevolences, free gifts, and compulfive loans, were for ever anni-
hilated.
But
304
HISTORY OF THE PUBLIC REVENUE, &c.
But the period is particularly remarkable for enabling us to form fome
kind of judgment of the full extent of that heavy burden which the
funding fyftem introduced into this kingdom.
The revenue of England, at the acceffion of the houſe of Stuart,
anno 1602, was 500,000l. a year. Eighty-fix years afterwards, when
James II. was expelled, it was raiſed to about two millions: the annual
increment confequently was near 17,441. At the fame rate of in-
creaſe, the revenue, anno 1774, eighty-fix years after the revolution,
ſhould only have been 3,500,000l.; and ten years afterwards, anno
1784, ought not to have exceeded 3,674,418, or, perhaps, with the
addition of Scotland, rather more than four millions a year. If the
preſent income of the State, therefore, is about fourteen millions, ten
millions of that fum may be attributed to the funding ſyſtem; and
would not have exifted, if the extraordinary expences of the public had
been defrayed by money exacted at the time, without leaving any bur-
den upon pofterity. Indeed, four millions would be amply fufficient, at
this time, to defray the charges of the civil lift, and of our peace eſta-
bliſhment, if the load of taxes impofed to provide for the intereft of our,
public debts, did not raife the price of every commodity to fuch a height,
as to render money much leſs efficient than it would otherwiſe be.
But, on the whole, though our circumſtances might have been better,
let us not too haftily either envy the fituation, or inveigh againſt the con-
duct of our predeceffors. Lightly as we may imagine they were bur-
dened, yet they complained as loudly as we do, of the intolerable weight
of taxes, and of the diſtreſs and poverty which they occafioned: and
though, inſtead of adding to their own burdens, they thought themfelves
juſtifiable in bequeathing to their pofterity a confiderable part of that
grievous load of public debt, under the preffure of which we now ftag-
ger, let it alſo be remembered, that they delivered into our hands a
well cultivated ifland; dependencies of great value and importance; an
extenſive commerce; flourishing manufactures; a fuperior fyftem of
agriculture; a high character for ability and valour; and, joined to all
theſe advantages, a fyftem of government, unequalled in the annals of
mankind for the bleffings which it affords.
END OF PART I.
THE
HISTORY
PUBLIC
OF THE
REVENUE
OF THE
BRITISH EMPIR E.
T
...
PART II.
[A]
1
PART II.
1
CHA P. I.
Of the various Modes of providing for the extraordinary
Expences of a Nation.
T
HE charges incurred by a nation in times of peace, feldom
exceed its ordinary income, or what it may be made to pro-
duce. It requires no great revenue, to maintain the magiſtrates
entruſted with the general government of the country; to ſupport ſuch
as are employed in expounding the laws, and in diſtributing juſtice;
and to defray the expences of ſuch public works as are effentially
neceffary for the benefit of the community. Indeed, if nations were
always at peace, fupplying a revenue for public purpoſes, could never
prove burdenſome to fociety.
But the neceffity there is, from the turbulent difpofition of the
human ſpecies, and the ambition of thoſe individuals, who govern the
affairs of States, to be perpetually providing for the expences of war, is
uniformly attended with the heavieft charges. Maxims of frugality,
however proper and defirable at other times, are found incompatible
with a ftate of hoftility. When the fate of a nation is at ftake, or
even when any of its important interefts are endangered, exertions muſt
be made, without regarding the expences they may occafion. The
troops and armaments of the foe muſt be oppoſed, whatever coſt ſuch
oppofition may require; and every citizen muſt facrifice a part of his
[A 2]
fortune,
4
HISTORY OF THE PUBLIC REVENUE
1
fortune, either to increaſe the property and maintain the intereſts of
the community to which he belongs, or to preſerve the wealth, which
it has already acquired from the plunder of its enemies.
It is evident therefore, that a material difference neceffarily exifts
between the revenue fufficient for times of peace, and the reſources
which are requifite to defray the various heavy charges which a war
muft occafion.
The ingenuity of mankind, particularly in modern times, has been
much engaged in attempts to diſcover, what is the beſt mode of pro-
viding for theſe extraordinary expences; and four fyftems have been
fuggeſted for that purpoſe. It has been propofed, 1. To accumulate a
treaſure in time of peace, adequate to the exigencies of war.-2. To
levy the neceſſary ſupplies within the year, by means of extraordinary
additional taxes.-3. To exact compulfive loans from the wealthieft
individuals of the community.-4. To borrow money from fuch as
are willing to advance it, upon the fecurity of the public faith.
Each of theſe modes it is propoſed briefly to examine.
I. Accumulating a Treaſure.
At the commencement of political focieties, a confiderable ſhare of
the territory they poffefs, is uniformly dedicated to national purpoſes.
In the infancy of States, however, there is neither inclination nor op-
portunity to be prodigal; and confequently, when there happens to be
any furplus, after defraying the neceffary expences, it is in general
accumulated into a public treasure, and referved for any unforeſeen
emergency. In ancient times, the practice was very prevalent; and,
in England, the monarchs who lived after the conqueft, were pro-
vided with fuch treafures, owing as much to their inability to expend
their revenue, as to any parfimonious difpofition, or any forecaft for
the future.
Sometimes, however, the fyftem of accumulation has arifen from
real forefight; and among the various acts for which the political
wifdom of the Romans has been celebrated, fome authors have in-
cluded their levying a tax for the exprefs purpoſe of preparing a fund
for public emergencies. The commonwealth, we are told, had hardly
been eſtabliſhed by the expulfion of Tarquin, before they began to
collect
་
OF THE BRITISH EMPIRE,
5
collect the Aurum Vicefimarium, or impoft of the twentieth penny,
upon the ſale of flaves; the amount of which was depofited in the
temple of Saturn, there to be kept facred for the moft preffing exigencies
of the State'. It continued accumulating for many years, and remained
untouched as long as the free government of Rome exifted, excepting
during the fecond Punic war, when it was thought excufable, after Han-
nibal had raviſhed Italy for ten years, to take four thouſand pounds
weight of gold out of this treafure, to affift in defraying the various
enormous expences to which the commonwealth was then ſubject.
But this mode of employing the furplus revenue of the public, is
attended with one material diſadvantage. If the precious metals at all
contribute to the happineſs of political fociety (which cannot be doubted,
at leaſt by thoſe who confider with how much greater facility commerce
is carried on in confequence of ſo uſeful a medium), every plan that
tends to diminiſh their abundance, muſt be prejudicial. A fyftem of
that nature may be lefs hurtful, before induſtry and commerce flouriſh;
and at fuch a period may perhaps be neceflary, from the difficulty withi
which any confiderable fum of money is collected in critical emergencies.
But, in general, it would be better to employ the furplus of the national
revenue in works of public advantage, or even in the conftruction of
uſeleſs pyramids, as was done by the fovereigns of Egypt, than in ac-
cumulating a hoard to lie dormant, without intereſt and without cir-
culation.
A well-known and eminent author has notwithſtanding vehemently
contended for continuing the practice of the ancients; and in particular
grounds himſelf upon this idea, "That the opening of fuch a treaſure
"neceffarily produces an uncommon affluence of gold and filver, ferves
as a temporary encouragement to induſtry, and atones, in fome degree,
"for the inevitable calamities of war"." Unfortunately for this author's
hypothefis, the fame circumftance, namely the abundance of gold and
filver, which alleviates the calamities of war, augments alfo the bleflings
of peace; and thoſe bleffings are neceffarily diminiſhed where treaſures
are accumulated: indeed, a public hoard can hardly be collected, without
reducing a nation, in point of commerce and circulation, to much the
• See a beautiful poetical deſcription of this treaſure, Lucan's Pharfalia, 1. iii. v. 155.
→ Hume's Effays, vol. i. p. 365
fame
6
HISTORY OF THE PUBLIC REVENUE
.
fame fituation in times of tranquillity, as in the midst of war. Befides,
it is proper to remark, that the Romans always endeavoured, in the firſt
place, to procure money by loans, and never applied to their treaſure,
but when their credit was exhaufted.
There are other unfurmountable objections to the amaffing of public
treaſures; fuch as, the dangers with which they are accompanied ; of
ufurpation in monarchial governments; of defpotifm in free ftates; and,
under every form of government, of being improvidently expended.
It appears from the Hiftory of England, that the ufurpations of the
three monarchs who reigned after William the Norman, were greatly
owing to their having fecured the treafures of their predeceffors. We
learn alfo from the Hiftory of the Roman Commonwealth, that if no
public treaſure had exifted at the time, Cæfar could hardly have fuc-
ceeded in his daring attempt upon the liberties of his country: and it
is well known, that the immenfe treaſure which the republic of Athens
had been accumulating for the fpace of fifty years, and which at laſt
amounted to above ten thouſand talents, was diffipated in rafh and im-
prudent enterprifes, to the ruin of the State'. Indeed, if nations are
tempted, when their credit is high and flouriſhing, to engage in deftruc-
tive plans of hoftility and conqueft, how much more may not this be
apprehended, if a treaſure is already amaffed, which may eaſily be ap-
plied to gratify the ambition of an impetuous and inconfiderate mo-
narch, or to carry into effect the political projects of an artful dema-
gogue?
II. Raiſing the Supplies within the Year.
When a nation finds, that its expences exceed its revenue, and that
either no treaſure has been accumulated, or that it is inadequate to the
charges which are likely to be incurred, it naturally endeavours to raiſe
extraordinary fupplies, by additions to its ordinary income. It was
upon this principle, that aids were originally granted by Parliament to
the Kings of England: nay, at the Revolution it was imagined, that a
general excife, in addition to the ufual revenue, would have furniſhed
money fufficient to defray the expences of the war. Various circum-
3 Hume's Effays, vol. i. p. 335-
4
↑ Davenant's Works, vol. i. p. 18.
ftances,
OF THE BRITISH EMPIRE.
7
ftances, however, unfortunately contributed to render fuch a plan at
that time impracticable. The inftant of a revolution is an improper
period for increaſing, in any great degree, the burdens of a nation.
Many would have rejoiced at ſuch an opportunity of ſpreading difaffec-
tion to the new government. Taxes were at that time peculiarly un-
popular in England; infomuch, that it was thought neceffary, in order
to ingratiate the new fovereign with his people, to diminiſh inſtead of
increaſing the revenue, and to repeal the productive duty of hearth-
money, by one of the firſt acts to which William III. gave the royal
affent after his acceffion.
The mode of raiſing the extraordinary expences of the nation, by
fupplies within the year, has often been recommended by different
authors fince the Revolution.
c
Sir Matthew Decker, in his famous plan for levying the whole re-
venue by a fingle duty upon houſes, which he publiſhed anno 1744,
exprefsly mentions the poffibility of raifing the current fervices within
the year;
a thing (he obſerves) greatly defirable by every body, and
"the want of which has been the cauſe of our preſent national debts.”
Poftlethwayt (a laborious and intelligent writer), in a work publiſhed
anno 1757, endeavours to convince his countrymen, both of the ne-
ceffity and the practicability of that meaſure. But his idea was to raiſe
only three millions per annum additional, and the war had become fo
enormouſly expenfive (requiring more than double that fum), that it
was evident, it could not prove, on fo narrow a fcale, of any material
benefit, and no one ventured to ftate the poffibility of its being farther
extended'.
An able and public fpirited fenator, however, recently recommended the
fame plan to the public attention. He fuppofes, that the whole property
of the nation amounts to one thouſand millions in real value, a duty of
one and a half per cent. therefore on every man's capital, paid by inftal-
5 Serious Confiderations on the feveral high Duties which the Nation labours under, p. 20.
• Great Britain's true Syftem, particularly, Let. ii. and xiii.
7 Poftlethwayt himſelf, in his dictionary, voce FUND, in fine, acknowledges, that when
he recommended raiſing the ſupplies within the year, he never imagined that they would have:
riſen to ſo high a pitch.
• Confiderations on the prefent State of Public Affairs, by William Pulteney, Efq;
3d edit. p. 31. anno 1779.
I
ments,
HISTORY OF THE PUBLIC REVENUE
ments, would raiſe, in the courſe of two years, fifteen millions; and
he calculated, might, without much economy, fupport a vigorous war
for that fpace of time. The fame ideas were alfo enforced by the inge-
nious Mr. Arthur Young; but he contends, that the additional taxes
ſhould be levied, not upon capital, but upon income.
income. The permanent
income of the nation, he imagines to be one hundred millions per
annum, which could eaſily bear a permanent burden of thirteen mil-
lions, and would yield befides, without much oppreffion, a temporary
aid of eight millions more.
The advantages that would have refulted from this mode of raifing
the ſupplies, are diſplayed by the authors above-mentioned in the moſt
flattering colours. Land, it was faid, inftead of felling from 20 to 25
years purchaſe, would foon reach from 27 to 32. The three per cents
would rife from 60 to 88; and obtaining money upon mortgage, would
no longer be attended with difficulty. The alarming prophecies con-
cerning a national bankruptcy, would vaniſh; and more would be done
towards procuring an advantageous peace, than could be effected by
many victories. Nay, the Chancellor of the Exchequer (Frederick,
Lord North) in the opening of the budget 24th February 1779, de-
clared in parliament, "That fuch a plan, he conceived, would not be
"difficult, if there was a full confidence in government. Great facri-
"fices, it was true, must be made, and many gratifications given up;
"but if the meaſure ſhould become neceffary, that confideration ought,
" and he believed would give way. The honour, the glory, nay the
very exiſtence of the country, might require it"."
..
·
To carry fuch a plan into effect, two things are requifite; firſt,
power and reſources in a State; fecondly, inclination in the Public at
large.
The ability of a nation to make a great addition to its revenue,
amidft all the horrors and calamities of war, more particularly in mo-
dern times, when hoftilities are prolonged to fuch a length, and are
carried on in fo extenſive a manner, is at beſt problematical. The Dutch,
whoſe example is commonly adduced upon this occafion, were contend-
ing for their own liberties at their own doors. Whereas, when Bri-
9 Polit. Arithmet. Part II. By Arthur Young, Efq; p. 44. 37.
* Debates of the Houfe of Commons, publiſhed by Almon, vol. xii. p. 8.
tain
OF THE BRITISH EMPIRE.
S
tain engages in a war, it muſt employ fleets and armies to protect re-
mote poffeffions almoſt in every quarter of the globe. Though ſufficient
property therefore actually exiſted in the country, yet ftill the difficulty
of collecting it from the diftant provinces of the kingdom, ſo as to
anfwer the critical moments of an extenfive war, muſt be very great.
Beſides, in a country like England, the wealth of which depends
ſo much upon the ſecurity and profperity of its commerce, fuch a plan
would be attended with peculiar difficulties. The following is Mr.
Young's calculation of the annual income of the nation :
་་
Income from Land
from Manufactures
from Commerce, and the profits of our Co-
lonial Poffeffions
;;
£. 63,000,000
20,000,000
17,000,000
L. 100,000,000
Thus it is fuppofed, that thirty-feven millions of the national in-
come arifes from property, liable, in time of war, to great hazard,
and much diminution in point of value, and conſequently unable to
bear any heavy additional burden.
.*
Or, if inſtead of income, the capital of a country, according to Mr.
Pulteney's idea, is to be taxed; without dwelling upon this objection,
that people may have great property, without having much money at
command, it will be eafy to perceive the difficulty of collecting the tax,
and the great uncertainty of its produce, when it is confidered, that
the ſuppoſed capital of one thouſand millions, comprehends the value of
the land; the value of houſes; the value of ftock of all kinds; of
materials for manufacture; ſhipping; caſh; money in the funds due
to natives; and, in fhort, every thing that can be denominated wealth
or property ".
But in nations where the ability exifts, the inclination is often want-
ing. * The reſpectable author above-mentioned very juſtly remarks,
"That it is in a free country only that mankind feel themſelves fo con-
"nected with public profperity, as willingly to facrifice, in fupport of
"it, a part of their fortune, in great emergencies "." But free States
are in general fo divided into parties, that hardly any adminiſtration
Confiderations, &c. by William Pulteney, Efq; p. 28.
[B]
12 Ditto, p. 32.
can
1
10
HISTORY OF THE PUBLIC REVENUE
can expect the univerfal, or even the general confidence of the people.
In luxurious and commercial ages alfo, which are the beſt calculated
in point of ability for executing fuch a plan, individuals are fo ſelfiſh
and intereſted, and ſo fond of pleaſure, and the frivolous joys of diffi-
pation, that zeal and public ſpirit are rare, and few would curtail them-
felves even in the moſt infignificant gratifications, for the purpoſe of
contributing, to equip an armament, for the defence of Madras, or the
protection of Jamaica. Nay, it is queftionable, whether war at their
own doors would raiſe them from their filken lethargy.
The plan of raifing its fupplies within the year, however, is a
circumftance which every nation ought to have in view, as it may
poffibly prove abfolutely neceffary for its prefervation and exiftence;
and perhaps it might be rendered lefs oppreffive, and more practicable,
if, inſtead of ſpecie, a part of the new additional ſupplies were exacted
in kind; and if the furniſhing of a certain number of recruits; the
providing of a certain number of feamen, or a certain quantity of
naval ftores, &c. &c. were confidered as a fufficient equivalent for
the new taxes, at a certain reafonable converfion. For there
may be
property in a country amply fufficient to carry fuch a plan into effect,
and yet, where money is demanded, it may be rendered impracticable,
from the want of a fufficient quantity of circulating fpecie. Such a
plan might perhaps be attempted, if the real ftrength and refources of
the kingdom were fully known; and if it were aſcertained, what each
diſtrict could afford for the public fervice, on any important emergency,
not only in money, but in other articles uſeful to the State..
III. Compulfive Loans.
Voltaire has deſcribed in his uſual ſprightly manner, the loans which
were extorted from their fubjects, by the ancient Kings of England.
"Thoſe who lent their money (he fays) generally loft it, and thoſe who
❝ did not lend, were ſent to jail "." And it is evident, from what has
been ſaid in the preceding part of this work, that fuch loans were
highly oppreffive upon the fubject, without being of much advantage
to the crown. Indeed, fo little were they entitled to the name of loan,
General Hiftory, vol. iii. part vi. c. 3.
F
that
OF THE BRITISH EMPIRE.
that no intereft was allowed for the money, nor was there any certainty
of its being repaid.
The practice, however, of compelling wealthy individuals to con-
tribute to the relief of the crown, may be traced to a very ancient pe-
riod of our hiftory". Foreign merchants, who, in the words of the
record," had rights and privileges conferred upon them, by the grace
“and ſufferance of the King, reportant grand lucre," were made ſub-
ject to this exaction, during the difgraceful and neceffitous reign of
Henry III.".
The practice was afterwards extended to the natives of
the kingdom; but it was accounted fo peculiarly obnoxious, that,
among the articles for which Richard II. was depofed, his having bor-
rowed (or rather extorted, under the pretence of borrowing) great
fums of money, which were never repaid, is particularly infifted
upon 16.
In the reign of Henry VIII. Acts of Parliament were paffed, dif-
charging all his debts founded on loans, whether voluntary or com-
pulfive; and the credit of the crown of England, in confequence of
theſe harſh and rigorous meaſures, continued at the loweſt ebb, until it
was revived by the prudent meaſures taken by Elizabeth, and the punc-
tuality which ſhe maintained. In general, fhe found little difficulty in
borrowing money, without being obliged to have recourſe to compul-
fion. But fhe was fometimes reduced to the neceffity of imitating, in
this refpect, the example of her predeceffors; and occafionally iffued
letters under the privy feal, demanding the loan of a ſpecific fum of
money, from the wealthieſt of her fubjects. This (according to an
old writer) was,
66 an enforced piece of ſtate, to lay the burthen on
"that horſe that was beſt able to bear it at the dead lift, when neither
"her receipts could yield her relief at the pinch, nor the urgency of
"her affairs endure the delays of a parliamentary affiſtance"."
By the famous petition of right, compulfive loans were totally
aboliſhed: but it is a curious fubject of political fpeculation, whether
fuch à plan might not be improved, fo as to anſwer many beneficial
14 Stevens (Pref. p. 15.) ftates, upon the authority of a manufcript in the Cottonian
library, that compulfive loans began in the reign of Henry II.
15 Cotton's Poft. Work, p. 177.
Henry V.
16 Rot. Parl. vol. iii. p. 419.
Noy's Rights of the Crown, p. 45. who fays it was
"Naunton's Fragmenta Re galia, p. 12.
[B] 2
public
1
!
5
12
HISTORY OF THE PUBLIC REVENUE
1. On valu-
able Pledges.
2. On Perfo.
public purpoſes; and whether fuch a fyftem ought not to be kept in
view, if another war fhould unfortunately foon break out.
If every
wealthy perfon in the kingdom were obliged, when called upon by the
legiſlature, to furniſh a certain fum of money, at a reaſonable intereft,
upon the faith and fecurity of Parliament, loans would be raiſed upon
moderate terms, and probably without much murmur or oppreffion.
By fuch means, the enormous profits, which are exacted by ufurious
money-lenders, who combine together, and take every unfair advantage
of the public neceffities, would be prevented; nor would the nation, to
gratify their rapacity, be loaded with burdens almoſt unſupportable.
IV. Voluntary Loans.
But of all the modes of providing money for defraying the extra-
ordinary expences of a nation, that of borrowing from fuch as are will-
ing to lend their property upon the public fecurity, is undoubtedly
the moſt efficacious; and it may not be improper, briefly to ftate the
progrefs of the ſyſtem.
The moſt ancient, and indeed the moſt natural mode of borrowing
any confiderable fum of money, is that of giving to the lender, in
pledge, fome article, the value of which is well known, or can eaſily be
afcertained. It was a long time before other modes of fecurity were
invented, or ufually practifed. Nay, after bonds and written obliga-
tions had become more frequent, recourfe was occafionally had to
pledges; and many of the Kings of England were reduced to the ne-
ceffity of pawning their jewels, crown, and other valuable effects, in
critical emergencies.
John, King of France, we are told, nobly declared, that if good
nal Security. faith were baniſhed out of the reft of the world, yet that it ought ftill
to be found in the breaſts of princes; and fuch in general is the con-
fidence placed in the Royal Diadem, that there are few monarchs
who are not able to raiſe ſome money upon their perſonal obligations.
But the amount of fuch fums is feldom very confiderable. Indeed,
the additional fecurity of the City of London, and fometimes of the prin-
cipal Minifters of State, was required, before fome of the Sovereigns of
England could in this manner obtain the money which their neceffities
demanded.
1
In
1
OF THE BRITISH EMPIRE.
13
In almoſt every country, the laws have fruitlessly endeavoured to
prevent the diffipation of the Royal Domains; and in England, it was
held impious to alienate them. Nay, as an additional check, every
King was entitled to reſume his own grants, or thoſe of his predeceffors.
Mortgaging the Domains, however, is in general permitted, as a lefs
pernicious meaſure, though often attended with more ruinous conſe-
quences. For, after any individual has been long in poffeffion of
lands as a mortgagee, the fpecific nature of his right is forgotten;
and he is not a little apt to confider himſelf, and to be confidered by
others, as the real proprietor.
3. By mort-
gaging the
Public Do-
mains.
The mode, by which a nation firſt raiſes a confiderable fum of money, 4. By mort-
gaging
is generally by mortgaging fome particular tax or branch of its re- Taxes.
venue, and anticipating its produce. This is a very ancient practice
in England. It may be traced, it is fuppofed, as far back as the reign
of Edward I.; and it is certain, that in the year 1444, Cardinal Beau-
fort gave a ſum of money in loan to Henry VI. upon the fecurity of
the Cuſtoms of London and Southampton". Various other inftances
of fuch anticipations will occur in a ſubſequent chapter.
When any branch of the revenue is mortgaged, it may either con-
tinue under the management of public officers, as is the cafe in Eng-
land, or it may be entrusted to the care of the creditor, as is the
practice in France. The firft is beft adapted to a free; the fecond, to
a defpotic government: but, under every government, it has been ori-
ginally found neceſſary to farm the revenues, either to the creditors of
the public, or to thoſe who make it their profeffion. For, fuch is the
ingenuity of mankind, and fuch their inclination to elude taxes, that
they would never become productive, if interefted perfons were not
employed to diſcover the means of counteracting the evafion of them; and
the public may afterwards, through the medium of its own officers,
reap the benefit of ſuch diſcoveries.
Another mode of borrowing money, is, by granting annuities for a
certain fixed ſpace of time, at the end of which they are totally to
ceafe. The experience of England tends to demonftrate, that this is
not an advantageous mode of procuring money: at leaft the demand
13 Noy's Rights of the Crown, p. 41.
5. By tem-
nuities.
porary An-
of
14
HISTORY OF THE PUBLIC REVENUE
6- By Annu-
of the creditor is proportionably higher for fhort, or even long an-
nuities, than when a perpetual annuity is granted; and a nation which
adopts the funding ſyſtem, ought to confider itſelf as a great and per-
manent corporation, and ought to adopt that plan, which, in the courfe
of many centuries, is the moſt likely to be of advantage to the com-
munity, without regarding immediate profit, or temporary conve-
niencies.
Annuities for lives is another mode that has been frequently prac-
ities on Lives. tifed, and by fome is accounted the moſt advantageous. But it is
hardly poffible for a nation, when it is in diftrefs, by any means to
make a profitable bargain with a money-lender, particularly on the
principle of granting temporary annuities. Thus, when annuities for
lives are granted, the creditor takes care to pitch upon the perfons who
are the moſt likely to live long, and who confequently will prove, for
the longeſt period, a burden upon the State. Nor have all the flatter-
ing hopes which Tontines hold forth to the avarice of mankind, been
able to procure money by life annuities, on advantageous terms to the
public.
+
7. By Con-
tingent An-
nuities.
8. By Per-
petual An-
nuities.
When a State is in great neceffity, it is eaſily induced to liſten to the
propoſals of any body of men, who offer to fupply it with a confider-
able fum, in confideration of being invefted with certain peculiar pri-
vileges, whilft the money they advance remains unpaid. It was thus
that the Bank of England, the Eaft-India Company, and other great
Corporations arofe in this country. The grants of fuch privileges
may ſometimes prove
uſeful to the public, as well as profitable to thoſe.
who engage in them. The two Companies above alluded to are un-
queſtionably of that deſcription. But the limits of that mode of bor-
rowing money with advantage, are certainly confined; for monopolies,
or peculiar privileges, cannot be carried to a great height, without in-
juring the commerce, and leffening the induſtry of a country, and
confequently diminiſhing the national capital, or fund of wealth.
The laſt mode of borrowing money for national purpoſes, and the
climax of financial invention, is, when a nation grants certain annuities
to its creditors, for ever, ſubject to redemption at a certain price. This
is a modern invention, of which the ancients feem to have had no con-
ception. It is, in fact, felling, for ever, a branch of the public re-
4
venue.
•
OF THE BRITISH EMPIRE.
15
venue. It will appear in the farther progrefs of this Work, that by the
ingenuity of the public creditors, this mode of raifing money has been
rendered much more prejudicial, than otherwife it would be, from the
practice of adding what may be called artificial, to the real capital. By
this artful manoeuvre, the nation cannot redeem ſuch perpetual bur-
dens, without paying fums confiderably greater than it ever received.
Such are the various modes of providing for the extraordinary ex- Conclufion.
pences of a nation; to which might be added, exchequer bills and
debentures of every kind, the ſale of offices, as thoſe of judicature in
France, and the alienation of the public domains fo univerfally prac-
tifed. On the whole, it is eafy to perceive, that every plan of
raiſing extraordinary fupplies, is attended with confiderable difficulties.
Perhaps, in different periods of fociety, different plans ought to be
adopted. At firſt, wars are carried on in a defultory manner, and
on a narrow ſcale; and a wife ſtatefman will then endeavour to pro-
cure within the year, as great an addition to the ordinary income
of the public, as the nation can be prevailed upon to pay. But in
times like thefe, when hoftilities are extended over every quarter of the
globe; and when, from ten to fifteen millions of additional income
are required, for military and naval operations, raiſing the ſupplies
within the year, is a meaſure, which, however deſirable, can hardly
be put in practice.
With regard to the beft mode of borrowing money, for the public
ſervice, it is propoſed, to inveſtigate that important queftion, in the fol-
lowing Chapter.
t
CHA P.
16
HISTORY OF THE PUBLIC REVENUE
T
CHA P. II.
Of Public Debts in general.
}
HE moſt fingular and important political feature of the preſent
Æra, is undoubtedly the heavy load of public debts, with which
almoft
It is therefore very na-
nation in Europe is encumbered. It is therefore
every
tural to enquire, with fome degree of anxiety, into the circumſtances
that gave birth to their exiſtence; and into the advantages and difad-
vantages they have produced: a fubject on which many authors have
written with great ability, but which fill remains open to more ample
difcuffion, and liable to much uncertainty and diſpute.
I. Caufes of the Public Debts of Modern Europe.
It has already been remarked, that the ancient mode of providing
for the expences of war, was that of collecting treaſures in time of
peace; and many have accounted fuch a meaſure highly politic.
During tranquil periods, it is ſaid, that money is lefs neceffary for in-
dividuals, as well as for the public; and if it were not thus locked up
for national purpoſes, it would probably be waſted in purchaſing lux-
urious fuperfluities from other countries. When treafures thus collected,
are iffued, they revive circulation; and amidst all the calamities of
war, give new vigour to a ftate; and as the public is thereby enabled
to give ready money for provifions, and other neceffary articles, it
can always procure them upon eafy and moderate terms. But modern
nations, it is faid, having no treafures collected, find themſelves re-
duced, at the very commencement of a war, to the neceffity of borrow-
ing. The money they raiſe, when expended in diftant operations, in-
ftead of being thrown into circulation, is actually taken out of it; and
at the fame inftant, that twelve millions are procured by the minifter,
the inanufacturer, and the huſbandman, are involved in the greateſt
mifery and diftrefs.
Such reaſoning is plaufible, and it is certain, that if conſiderable
treaſures were collected, they would, in a great meaſure, prevent the
neceffity of contracting debts, unleſs on very important emergencies.
It
OF THE BRITISH EMPIRE.
17
i
'
It appears, however, from the preceding Chapter, that public hoards
are neceffarily productive of fo many political evils, as greatly to
outweigh any advantage that could poffibly be derived from them.
But the heavy burdens with which the exifting powers of Europe
are encumbered, are owing, not only to the want of public treaſures,
but alſo to the different manner of conducting hoftilities in ancient and
modern times.
Formerly, one or other of the parties at war, boldly entered into the
territories of his opponent; and marching directly to the capital, or to
any ſpot where the enemy had affembled, the fate of a wealthy king-
dom, or powerful republic, was often decided by a ſingle engagement.
But in modern times, the whole fury of the war is ſpent in befieging
towns on the frontier, or in doubtful naval operations, or in the at-
tack and defence of fome remote colony, or diftant appendage; the
conſequence of which is, that the war is protracted to a great length,
and becomes progreffively more expenſive. Thus neither of the par-
ties are able to procure any great fuperiority, or decided advantage;
and hoftilities are carried on, until the reſources of one, or both of them,
are exhauſted; and it is found impoffible to raiſe money, either by
augmenting the ordinary revenue, or by borrowing on the public faith.
•
In ancient times, wars were not only fhorter in their duration, but
means were alfo taken, and principles were adopted, which rendered
great pecuniary fupplies lefs neceffary than at prefent. Formerly,
the whole was a ſcene of plunder and devaſtation. The perfons
and the property of the enemy were at the entire difpofal of the
conqueror; and the general eſtimated the profits of the campaign,
not only by the quantity of money, and other perfonal effects he had
feized; but alfo by the number of his prifoners, who were fold for
ſlaves, and were accounted a very valuable commodity. The greater
part of the plunder taken in the campaign, was accounted for to the
public; and many a Roman general, after defraying the charges of the
war from the booty he had acquired, was alfo able to make conſider-
able additions to the public treaſury, amidſt the triumphal fhouts of his
countrymen.
The arms now made ufe of, are alfo much more expenſive than thofe
of antiquity. The fhield, the fpear, the lance, the javelin, and the
bow
[C]
18
HISTORY OF THE PUBLIC REVENUE
་
bow and arrow of the ancients, cannot be compared, in regard to price,
with the modern mufquet; particularly when the re-iterated expence
of powder and ball is taken into confideration. And as to military
engines, there can be no compariſon in point of coft, between a mo-
dern train of artillery, and a fet of battering-rams and catapultæ.
But the principal ſource of national expences in theſe times, when
compared to thoſe of antiquity, ariſes from naval charges. It is at
fea, where all the modern nations have wafted their ftrength. It is on
that element that thofe debts have in a great meaſure been con-
tracted, under the preffure of which they now groan. Had the
rage of equipping numerous fleets, and building ſhips of great mag-
nitude and dimenfions, never exifted, hardly any ftate in Europe
would have been at this time in debt. To that fatal ambition their
preſent diftreffed and mortgaged fituation, ought chiefly to be attri-
buted'.
The nature of theſe national incumbrances, and the effects refulting
from them, have given rife to political controverfies of the greateſt pub-
lic importance. By fome, the practice of borrowing money, to defray
the extraordinary expences of a State, is extolled to the ſkies, as equally
neceffary and uſeful; whilft others confider it as big with every fatal
and deſtructive confequence. It is propoſed to give a general view, of
the various arguments which have been made ufe of, on both ſides of
the queſtion.
II. Advantages of the Funding Syſtem.
Montefquieu, after ſtating ſome of the inconveniencies of public debts,
fays, "I know of no advantages"," Such incumbrances, and the
credit on which they are founded, are not perhaps fo beneficial, as fome
authors have endeavoured to reprefent them; but this excellent Writer
feems to have formed, on this occafion, by far too hafty a conclu-
fion.
2
L'Efprit des Loix, 1, xxii, c. 17.
1
It will appear in the farther progrefs of this Work, how confiderable a fhare of the
revenue of England, has been expended on its navy.
It
OF THE BRITISH EMPIRE.
19
!
It is hardly poffible for any perſon who attentively confiders the fub-
ject, to deny the beneficial confequences refulting from public credit,
in the proſecution of a juſt and neceffary war. The celebrated Biſhop
of Cloyne well obferves, that credit is the principal advantage which
England has over France, and indeed over all the other States of Europe;
that it is a mine of gold to this country; and that any meaſures taken
to leffen it, ought to be dreaded'. In fact, the great fuccefs which has
uniformly attended the arms of Great Britain, when its affairs have
been wifely and prudently conducted, has been entirely owing to the
eaſe with which any fum, however great, could be procured for the
public fervice.
Indeed, when money can be raiſed without difficulty, the greateſt
exertions may be made with the higheſt probability of fuccefs. No at-
tempt is rendered fruitless, from the inability of fending force fufficient
to atchieve the enterpriſe. Pinto's obfervations upon this head are
conclufive. "If a nation (he remarks) is able to raiſe only two thirds
"of the money which any particular fervice demands, thofe two thirds
"will probably be thrown away. If the Engliſh, for inſtance, had
"fent a fleet and army, weaker by one third than it was, to conquer
"the Havanna, the expedition would not only have miſcarried, and
"the whole expence would have been loft, but that lofs would have
"occafioned many others. Inftead of the treaſure, and other advan-
tages produced by their fuccefs, every circumſtance would have been
"inverted." By the magic of public credit, fleets are equipped, and
armies are levied, with an expedition almoſt incredible; and Pompey's
boaſt, that he could raiſe fo many legions by only ftamping with his
foot, is completely verified ³.
It is even acknowledged by a refpectable Writer, who is no friend
to the funding fyftem, that when money is borrowed to defray the ex-
pences of a war, the private revenue of individuals is neceffarily lefs
burdened, than if the fupplies were raiſed within the year; and conſe-
quently they are better enabled, at leaſt whilft the war continues, to fave
and accumulate fome part of their revenué into capital, and by their
3 The Querift, Nº 233, 234.
4
Eflay on Circulation and Credit, p. 41. The tranflation by Mr. Eaggs is referred
to on account of the valuable Notes which it contains.
s See Mortimer's Elements of Finance, p. 364, 365.
[C] 2
frugality
1. Advan-
of war.
tages in time
}
20
HISTORY OF THE PUBLIC REVENUE
frugality and induſtry, to repair the breaches which the waſte and ex-
travagance of government may occaſionally make in the general capital-
of the State".
But there are other advantages refulting from the funding fyftem,
which it may be proper here to mention.
If fupplies were raiſed within the year, and the expences of war were
confiderable, every individual would be obliged, in confequence of the
additional weight of his contributions, greatly to curtail his expences;
and the employment of the poor, and the confumption of the rich,
would be confiderably diminiſhed. Whereas, when taxes are nearly
equal, in times of peace and war (which can only be the cafe where
the fyftem of funding is adopted), the value of every fpecies of pro-
perty, the maſs of national induftry, and the circulation of national
wealth, are maintained on as regular, fteady, and uniform a footing, as
the uncertainty and inftability of human affairs will admit'. Indeed,
before public credit is carried to too great a height, a war maintained
by national loans and taxes, may be accounted even an advantage to
the State. It is of ſervice to the poor, becauſe the price of their labour
increaſes with the greater demand for labourers; it is of ufe to the rich,
for the greater occafion there is for money, the greater is the profit of
• Smith's Wealth of Nations, vol. ii. p. 558. To illuftrate this point, let us ſuppoſe,
that during a period of thirty years, we were to have twenty years of peace, and ten years
of war; for the carrying on of which, ten millions of extraordinary fupplies muft annually
be raiſed. Is it moſt for the public advantage, to levy the ten millions every year during
the war, and pay nothing during peace; or to raife the money by loans, and pay an equal
fhare of the expence in time of peace; as well as in time of war? If a common carrier
has ten hundred weight to remove, is it not better for him, inftead of putting it at once
upon his horfe's back, gradually to remove it? In the fame manner, when a State, for
its fafety and protection, is obliged to make great exertions, and to load itfelf with heavy
burdens, is it not preferable, by ſpreading and extending the load, to render it as light as
poffible? See Letter to a Member of the Houfe of Commons, p. 27.
7 See Gale on Public Credit, part i. fect. 3. Nay, this intelligent Author contends,
that borrowing money is not only the moft convenient method of raifing extraordinary
fupplies, but is alſo productive of an actual faving to the State. But his arguments in fup-
port of ſuch a poſition are obfcure, and are not juſtified by recent experience. Befides, he
does not take into his confideration, the charges of management, nor the heavy expence
of collecting the revenue neceffary to defray the intereft of a public debt, nor the com-
mercial difadvantages with which taxes are accompanied; and particularly forgets, that
duties on confumption, which must at last be reſorted to, take confiderably more out of
the pockets of the public, than comes into the exchequer.
thofe
i
OF THE BRITISH EMPIRE.
21
thoſe who have money to lay out and foreign wars, though unavoid-
ably attended with many private calamities; yet generally put an end
to public difcord, and free the country of a number of turbulent and
vicious characters, who are a peft to fociety.
Among the advantages of the funding fyftem, there is none which
its friends have fo highly extolled, and its enemies have fo loudly re-
probated, as its tendency to attract money from foreign countries, and
the confequences with which that circumftance is attended.
It may,
perhaps, be of ſervice to a ſtate at war, to be able to draw fome re-
fources from other nations; and the want of fuch aid (as Pinto ob-
ferves) might have checked and enfeebled all our military operations.
Perhaps, alſo, the Bank of England, and the Eaſt-India Company, the
eſtabliſhment of which has added fo much to the wealth and commerce of
this country, could not have been erected, or carried on with fuch
effect, from the low ftate of the trade and refources of England at that
time, if it had not been for the affiftance they originally received from
foreigners and perhaps, fo great is the amount of our public debts at
prefent, that the quantity far exceeds our confumption or demand at
home; and our funds could hardly be kept up at any tolerable price,
without foreign purchaſers. At the fame time, whether foreign pro-
perty in our funds, ought to be accounted of public detriment or ad-
vantage, is perhaps the moſt difficult queftion of any connected with
the funding fyftem.
<c
I am appriſed of what a very intelligent author has faid, "That the
"trading fubjects of this kingdom, from the Farmer to the Merchant,
"make upon an average upwards of ten per cent. per annum, of the
money borrowed from foreigners, by our government, at little more than
"four; and thence, that a profit arifes of nearly fix per cent. to enable
"the people to bear the burden of an increaſe of taxes, and to give
"them a freſh contributive faculty of fubfcribing to new loans . But
it muſt be acknowledged, that if the money borrowed is immediately
waſted in foreign expeditions, and never comes into the circulation of
8
Ramfay's Effay on the Conſtitution of England, p. 70.
Houfe of Commons, p. 28.
9
Effay on Credit, p. 9. alfo p. 35.
10 39
Letter to a Member of the
1 Mortimer's Elements of Finances, p. 386. edit. 1772. See alfo Hope's Letters
on Credit, p. 21. 30, 31.
2. Attracts
abroad.
money from
1
I
the
}
22
HISTORY OF THE PUBLIC REVENUE
3. Keeps
money at
home.
the country, the nation that borrows, pays intereft to foreigners for a
fum of money, without reaping from it any ſolid advantage. The only
benefit it can poffibly produce is, that it renders it unneceſſary to raiſe
the money at home, by which the commerce and circulation of the
country would probably be injured".
At the fame time, it is proper to obferve, that when foreigners are
admitted into the public funds of a country, they become naturally in-
tereſted in promoting its happineſs and profperity. "Where their trea-
"fure is, there will their hearts be alfo." And not only many wealthy
individuals who are born in other countries, are gradually led to con-
fider the State in which their property is fettled, as their home,
and thence are induced to come and refide in it; but if any great re-
volution, or a long feries of deftructive hoftilities were to take place
on the Continent (from which we might be happily exempted in con-
fequence of our infular fituation), the greater part of our foreign cre-
ditors might find it equally neceffary and defirable, to fhelter themſelves
in England from the ftorm, and this country would receive a valuable
addition to its population and wealth".
The public debts of a nation not only attract riches from abroad,
with a fpecies of magnetic influence, but they alſo retain money at
home, which otherwife would be exported, and which, if fent to other
countries, might poffibly be attended with pernicious confequences to
the State whoſe wealth was carried out of it. If France, for example,
maintained its wars by borrowing money, and England raiſed all its
fupplies within the year, the neceffary confequence would be, that all
the looſe and unemployed money of England, inftead of remaining
here, expofed to the chance of being taken up by a government, who
gave no intereft in return for the ufe of it, would naturally be tranf-
mitted to France, where it could be placed out to advantage. It is
well known, that the proſpect of high intereſt has tempted many un-
worthy Engliſhmen, to inveft their property in the funds of that king-
dom; and we may judge from thence, what would be the caſe, if the
funds of England were not in existence. In every ſtate, however
poor, laws are enacted to prevent the exportation of its fpecie, and
See Effay on Circulation, p. 35. Note.
12 For many excellent obfervations on this part of the ſubject, ſee Sir James Stewart's
Inquiry into the Principles of Political Oeconomy, vol. ii. p. 442, 443. 450, 451. 462,
463, 464,
·
the
OF THE BRITISH EMPIRE.
23
But the eſtabliſhment of
For none but
the diminution of its circulating wealth.
public debts is the moſt likely means to hinder it.
profligate úfurers would think of fending their property into another
country, to fupport the credit and confequence of a foreign, and per-
haps an inimical power, when it is poffible to lay it out at home, with
any tolerable advantage.
n.oney into
Public debts are particularly favourable to circulation. The taxes 4. Brings
which they occafion upon the property of the rich, and the encourage- circulation.
ments which they hold forth to the avaricious, prevent the accumula-
tion of private hoards, and bring the whole money, and perfonal pro-
perty of a country, into the market. The beneficial confequences re-
fulting from fuch a circumftance are well known.
Unless the property
of a nation circulates, it is of no real ufe to the community. Trea-
fures concealed and hoarded up, might as well ſtill remain in the bow-
els of the earth, for any benefit they yield to the public.
We are told, that Eumenes king of Pergamus, one of the ableft
ftateſmen of antiquity, finding that he had reaſon to diſtruſt fome of
his officers, borrowed money of them, with a view of infuring their
fidelity; as they might eaſily perceive, that they ſtood no chance of
being repaid, if by their treachery his ruin was effected: and it is faid,
that Biſhop Burnet, with fimilar views, adviſed William III. to run
the nation into debt, in order to fecure the ſupport of the wealthieft
individuals in the kingdom". But it is probable, that the debts con-
tracted at the Revolution, were more owing to the diftreffes of the times,
and the difficulty of raifing the neceffary fupplies within the
year, with-
out burdening the people, than to any political motives. When once
debts, however, are incurred, it is evident that every individual creditor is
led by his own intereft to fupport the government, on the profperity and
exiſtence of which the fecurity of his property depends; and whoever con-
fiders for a moment, the many calamities with which revolutions are ac-
companied, will not probably regret, that an additional circumſtance
ſhould take place, which contributes to confirm the ſtability, and to pro-
long the exiſtence of an eſtabliſhed government, whilſt it is conducted
with fufficient attention to the rights and happineſs of the people.
13 Swift's Hiftory of the Four laft Years of the Reign of Queen Anne, edit. 1758.
p. 158.
The
5. Attaches
people to
govern-
ment.
24
HISTORY OF THE PUBLIC REVENUE
6. Encou-
rages com-
merce and
industry.
The facility with which individuals, in a country where public debts
exiſt, can lay out the property they have acquired by their labour or
ingenuity, without the risk of commercial bankruptcies, or the una-
voidable expences and fmall profit which landed eftates yield, and
without even abandoning their profeffions, is no ſmall encouragement
to induſtry. To a certain extent therefore, fuch public fecurities are
highly uſeful to a trading people". It encourages a fet of men, de-
fcribed by Hume, as half merchants, and half ftock-holders, who are
able to carry on trade without great pecuniary advantages; becauſe
commerce is not their principal or fole fupport, their property in the
funds being a fure refource for themſelves and their families. “And
"the fmall profit which fuch merchants require, when compared to
"what otherwife would be neceffary, renders their commodities
"cheaper, cauſes a greater conſumption, quickens the labour of the
common people, and helps to fpread arts and induftry throughout the
"whole fociety"."
tr
Nay, Pinto is fo enraptured with the funding fyftem as to contend,
that every new loan, creates a new artificial capital, which did not before
exift, which becomes permanent; fixed, and folid, and circulates with
as much advantage to the public, as if fo much real additional trea-
fure had enriched the kingdom". And another author roundly afferts,
that if our national incumbrances were paid off, we fhould be obliged
to run ourſelves again, as faft as poffible, into debt; in order to recover
our trade, our happineſs, and our profperity". But fuch a whimſical
mode of coining wealth, of amaffing treafure, or of infuring the pro-
ſperity of a nation, no wife State will probably much depend on.
Such are the advantages which are commonly enumerated, as con-
nected with the funding fyftem; and fo beneficial do they appear, that
14 Black ftone's Commentaries, vol. i. p. 328.
15 Hume's Effays, vol. i. p. 366, and 367. The whole paffage is admirable, and
ought to be carefully examined.
16 The national debt is as much a real poffeffion, as any property in filver or in gold.
Its value is founded on the opinion of mankind, and on the difficulty of its acquifition,
which alone make gold and filver of inore eftimation than copper or tin. Hope's Letters
on Credit, p. 19.
17 Reflections on the National Debt, by J. Champion. See fuch ideas refuted,
Smith's Wealth of Nations, p. 556.
one
OF THE BRITISH EMPIRE.
શ
25
one author, who has carefully inveſtigated the fübject, calls it a maſter-
piece of human policy; and another compares it to that ſpecies of
inundation, which carries riches and fertility, as well as terror, along
with it". Let us next examine the arguments adduced by thoſe who
conſider it in a very different point of view.
III. Difadvantages of the Funding Syſtem...
}
It is difficult to arrange the numerous arguments, which, in various
languages, and from authors almoft innumerable, have at different
times been thrown out, to prove the dangerous confequences, and in-
deed inevitable ruin, which neceffarily attend public debts, when car-
ried to any height. It is propofed, however, to inveſtigate with as
much brevity as poffible, 1. The difadvantages attending this mode
of procuring money in cafes of emergency. 2. The pernicious conſe-
quences refulting from public debts, whilft they remain unpaid and
3. How far they have a déftructive tendency to increaſe and accu-
mulate.
**
Y
20110
!
3. (!
}
1
1. Difad-
vantages of
The poffeffion of unbounded credit, like the accumulation of an
immenfe treaſure, is too apt to make a nation inclined to engage in public credit
rash and dangerous enterprifes; and a State that can borrow fifty, or,
if neceffary,. even a hundred millions, in the courfe of a war, thinks
itfelf entitled to become an umpire among furrounding nations, and
readily draws its fword upon every trifling occafion. Hence debts are
often contracted, not in fupport of meafures advantageous to the pub-
lic, but in ridiculous quarrels, to gratify the humour of a headſtrong
populace, or to carry on the viſionary projects, of the ſovereign, or his
minifters. "It is fcarcely more imprudent (fays Hume) to give a
"prodigal fon a credit in every banker's fhop in London, than to em-
power a ſtateſman to draw bills in this manner upon pofterity"."
Nay, this is a difadvantage attending the funding fyftem, which its
warmeſt advocate is under the neceffity of acknowledging".
30 19
When a nation alfo borrows money, it is generally in a ſtate of dif-
trefs, and muſt fubmit to any terms which the money-lender thinks
13 Elements of Finance, p. 378. :
20
19 Effay on Public Credit, pref. p. 6.
Effays, vol. i. p. 365. See alfo Reynal, vol. iv. n. 453•
21
Effay on Credit, p. 107, 108.
[D]
proper
26
HISTORY OF THE PUBLIC REVENUE
2. Pernicious
confequences
of public
proper to impoſe. That unhappy fituation, the creditor uniformly
takes advantage of, to make the public pay dear for the affiftance it:
receives.
war,.
"Hinc ufura vorax, avidumque in tempore fænus,
"Hinc concuffa fides, & multis utile bellum².
Nay, if hoftilities are not carried on to maintain the effential inte-
reſts, or to preſerve the very exiſtence of a nation, it is no undeſirable
circumſtance, that the public fhould feel the pecuniary calamities of
fo as to render it defirous of peace, when reaſonable terms` can
be obtained. When money however can eaſily be procured, and the
nation is only loaded with an annuity to pay the intereft of the debt
that is incurred, war is a paftime to the people, which they are not
defirous of giving up, whilft they are occafionally favoured with Extra-
ordinary Gazettes, announcing the victories gained by their fleets and
armies, and celebrating the valour of their troops, and the conduct of
their commanders 23..
But if it were allowed that a nation, when it contracts public debts,
may reap confiderable benefit by expending the money that it borrows,
debts whilft in well-judged and fuccefsful enterpriſes; yet it is evident that ſuch in-
cumbrances must be attended with confiderable difadvantages, whilſt
they remain unpaid.
they remain
unpaid.
} -
1. The income neceffary to pay the intereft of a public debt, is a
heavy burden upon the wealth and induſtry of a nation. The addi-
tional taxes, which it gives rife to, neceffarily occaſion an increaſe in the
price of all the neceffaries of life, and renders it more difficult for the
manufacturers of a mortgaged State, to carry on a fuccefsful competition
with the fubjects of other powers, who may happen to be in a lefs em-
barraffed fituation; and it is well known, that the ruin of the manufac-
turers of Holland, is univerfally attributed to the weight of taxes, which
the public debt of that country has entailed upon it. Nay, what fome
authors confider as the moft obnoxious of all the public evils, confequent
to the funding fyftem, is, that the active and induftrious fubject ſhould
thus be loaded with heavy burdens, to maintain the ufelefs and indo-
lent creditor in luxury and fplendor **
22 Lucan.
24
23 Wealth of Nations, vol. ii. p. 550, 551. 558, 559.
24. L'Esprit des Loix, 1. xxii. c. 17. Blackſt. Comm, vol. i. p. 329. Hume's Effays,
voli. p. 368. Reynal, vol. iv. p. 454.
་
2. Public
OF THE BRITISH EMPIRE.
1
2. Public debts have alfo a tendency to promote idleness and immo-
rality among the people at large. The money neceffary to pay the
intereft of ſuch incumbrances cannot be raiſed, unleſs the legislature
encourages, or at leaſt winks at, immoderate expences in all the diffe-
rent ranks of the people. A large and voluptuous capital is therefore
fuffered to encreafe, and meets with every poffible encouragement, not-
withſtanding its tendency to corrupt the manners, and to diminish the
numbers of the people. But every object of that nature, however im-
portant, muſt be facrificed for the benefit of the revenue ".
•
3.
When a nation is encumbered with debts, a pernicious ſpirit of
gambling is introduced. Stock-jobbing, with all its train of dangerous
confequences, neceffarily arifes: A monied intereft is erected, the fole
employment of which, is that of drawing every poffible advantage, from
the wants of individuals, or the neceffities of the public: felfiſh and inte-
refted principles fpread their deftructive influence far and wide: pub-
lic fpirit either ceaſes to exiſt, or becomes the object of ridicule 26.
Indeed, ftock-jobbing is faid to be a neceffary confequence of the
funding fyftem, without which the public could not borrow fuch large
fums of money, as may be neceffary for the enterpriſes it has in view";
and unfortunately, to a certain extent, that circumſtance muſt be admit-
ted. It is the hope of great advantage (and without gambling, much
profit could not be acquired) which engages individuals to fubfcribe to
new loans, and collects together the immenfe fums of money which
are neceffary for that purpoſe. The practice is at the fame time at-
tended with ſo much real injury to individuals, that no advantage can
compenfate for the miſchiefs which it produces 28..
4. But a nation is not only heavily burdened, to defray the intereſt
of its debts, but is alſo obliged to maintain a number of officers to
collect fuch branches of the revenue as are appropriated to that purpofe,
and to defray the expences, with which the conducting or management
2s Hume's Effays, vol. i. p. 367, 368, 369. Reynal, vol. iv. p. 454. L'Eſprit des
Loix, 1. xxii. c. 17. Enquiry into the original of the Public Debt, p. 12.
25 Original of Public Debt, p. 13. 14. .
27 Effay on Public Credit, p. 37, 38.
28 See this fubject fully and ably difcuffed, in Mortimer's Elements of Finances,
p. 374. 392.
!
[D] 2
1
of
28
HISTORY OF THE PUBLIC REVENUE
of public funds is attended. And in a limited monarchy, like that of
England, ſuch a circumftance is peculiarly injurious; for the creation
of a number of places, and the entertaining a whole hoſt of officers of
the revenue, has a tendency to produce very important alterations in.
the nature of its government".
5. If public debts attract money from abroad, they are alfo attended
with the pernicious confequence of rendering one State in a manner
tributary to another. It is fuppofed that foreigners are at preſent pof-
feffed of about a ninth part of the national debt of England, and con-
fequently muſt receive about a million a year from this country. If
we were obliged (as one author very ingeniouſly remarks) to pay a tri-
bute of that amount to France, or to any other foreign State, every
perfon would declare, that the nation must infallibly be undone; yet,
the tribute paid to foreign creditors, is at prefent on a footing infinitely
more pernicious.3 for it is impoffible to get clear of it, unleſs by a
public bankruptcy, or by paying above thirty years purchaſe to the fo-
reign annuitants; a fum fully equal to the whole fpecie that circulates
in the nation". But the expérience of England does not tend to juſtify
fuch political ſpeculations and there is ftill fome reaſon to hope, that
permitting foreigners to acquire property in our funds, inftead of
proving the means of tranſporting our people and our induſtry to other
climes, as Hume fo much apprehended 3, may be productive of very
oppoſite conſequences, and may yet increaſe the wealth and population
of this country.
#
Laftly, When public debts are carried to a great height, they tend to
weaken the nation by which they are incurred. Wars, though per-
haps neceffary for the fafety of a State, muſt be avoided; for the re-
fources by which they ought to be carried on, are already ſpent. Among
the other caufes therefore of national ruin, the practice of funding is.
29 Blackft. Comm. vol. i. p. 336. Elements of Finance, p. 373. 387, 388. Ori-
ginal of the National Debt, p. 15.
See Original of the Public Debt, p. 17. Blackft. Comm. vol. i. p. 329. L'Eſprit
des Loix, 1. xxii. c. 17.
Reynal (vol. iv. p. 452.) fays, that borrowing money from foreigners, is in fact,
felling to them one or more of the provinces of the empire: and declares, that perhaps it
would be a more rational practice to deliver up the foil, than to cultivate it folely for their uſe.
32 Effays, vol, i. p. 369.
I
enumerated,
OF THE BRITISH EMPIRE.
29
enumerated, as, fooner or later, the fource of weakneſs and defolation
to every State where it has been adopted".
It
to increaſe
Every political fyftem may in two reſpects be highly exceptionable. 3. Tendency
either be founded on improper principles in itfelf, or it may have and accumu
a ftrong and natural tendency to be perverted. To the latter objection,
may
i
it can hardly be denied, that public debts are particularly expoſed.
In fact, not an inftance can be produced from hiſtory, of any nation
having once begun to run itfelf into debt, that the burden was not per-
petually increaſing. No confiderable progrefs was ever made, except-
ing in France, under Sully's adminiſtration, in diminiſhing fuch incum-
brances. The fame want of public zeal (which perhaps was the occaſion
of a national debt being originally contracted) renders it popular to
defer taking any manly and decifive meaſures, for the liberation of the
revenue. The parties principally interefted, become every day more
callous and infenfible, to the dangers they are likely to encounter, or
are ignorant how deeply they are concerned in preventing fuch delays.
The creditor is in general fatisfied, with having his intereft punctually
paid him; and at any rate is not entitled to demand the capital of his
debt. The miniſter, happy to be relieved from the moft obnoxious of
all duties (that of adding to the burdens of the people in time of peace)
employs his thoughts in concerting the means of preferving his own
power, and of humbling his opponents, regardleſs of the immortal
reputation he might acquire, by purſuing a different fyftem; whilft the
public at large, loaded with accumulated burdens, hating the paſt, and
dreading the future; without zeal, and without fpirit, prone to floth,
and incapable of exertion, fuffer matters to go on as they are, neither
knowing what to hope, or what to fear.
late.
Such are the principal objections which have been urged againſt the Reflexion.
funding ſyſtem ; a general view of which, collected from the principal
authors who have written upon the fubject, it was imagined, would not
prove diſagreeable to the reader. Many have been fo ftrongly impreffed
with the folidity of theſe arguments, that a thouſand prophecies have
been made, that our debts would prove the utter ruin of this country;
33 Ferguſon's Effay on Civil Society, p. 389.
p. 363,364.
Hume's Effays, vol. i. p. 369. 372.
Smith's Wealth of Nations, vol. ii.
Blackft. Comm. vol. i. p. 329
1
that
30
HISTORY OF THE PUBLIC REVENUE
that a hundred millions was a greater burden than it could poffibly bear;
and that the nation muſt either deſtroy its debts, or its debts would de-
ftroy the nation. Notwithſtanding all theſe gloomy predictions, it is
evident, that the nation ftill remains in a flouriſhing fituation; and
confequently, that our national incumbrances are not quite fo deftruc-
tive as they have ſometimes been reprefented. But the funding ſyſtem,
on its prefent footing, is doubtless attended with many fatal con-
fequences. It is a queftion therefore of confiderable importance, whe-
ther a plan of borrowing money might not be formed, liable to no ma-
terial objection, productive of many public advantages, and capable of
exalting a nation to the greatest degree of happiness and profperity.
With a few obfervations upon that fubject, it is propofed to conclude
the preſent Chapter.
IV. Plan of eſtabliſhing the Funding. Syftem on the moſt
beneficial Principles for a Nation.
When a nation refolves to defray its extraordinary expences by bor-
rowing money, it ought to fet out upon certain fixed and unalterable
principles, confirmed in the moſt folemn manner by the whole legiſla-
ture, and from which it ought never to depart.
1. The first principle that the public ought to eſtabliſh, is never to be-
.come bound to pay an iota more, than the ſpecific principal fum which
it originally borrowed. Adding an artificial to a real capital, or pledging
the public to pay a hundred pounds, when perhaps only fixty were re-
ceived, is the moſt pernicious of all financial operations; and any mi-
niſter that propofed fuch a plan in Parliament, ought to be made liable.
to impeachment. It will probably be alledged, that it may be found
impoffible to borrow money, without giving the creditor that ufurious
advantage. That objection, however, ought not to be regarded. For
when the money-lender knows, that every other plan is contrary to an
eſtabliſhed law, which cannot fafely be infringed, his ideas will be re-
gulated accordingly, and the difference will be made up by premiums,
or, in the language of the Alley, by an additional bonus or douceur, on
principles leſs pernicious to the public. Indeed, if money cannot be
borrowed in fuch a manner, it is a fign, either that the miniſter is de-
fervedly
-
OF THE BRITISH EMPIRE.
31
;
fervedly unpopular, or that the war is unneceffary, and confequently
ought not to be perfèvered in.
This rule, if invariably adhered to, will for ever prevent the accu→
mulation of a great artificial capital, which terrifies the imaginations of
mankind, depreffes the fpirit of the people, diminiſhes their credit, and
confequently impairs their ſtrength.
2. It ought alfo to be an unalterable law of the land, that after the
creditor has received the intereft originally agreed upon,. for the space of
five, or at the utmoſt ſeven years, it shall be in the power of the public
to pay him off, if money can be borrowed for that purpoſe at a lower
intereft. This principle, if rigorously attended to, will gradually occa
fion, a great diminution, in the intereft of our debts. England, at this
time, pays only three per cent. for money that was originally borrowed
at eight; and where artificial capitals do not abftruct fuch a meaſure,
a nation can always borrow, in time of peace, at a cheaper rate, than in
time of war, and thus the weight of its debts may be perpetually dimi-
niſhed 34
·
*
1
3. A State determined to carry on its wars, by-the funding ſyſtem,
ought never to borrow money upon any other principle, than that of
perpetual annuities. All long and fhort annuities,, and annuities for
lives, whether tontines or otherwife, ought to be avoided. They breed
confufion in the public accounts; they occafion a great additional ex-
pence for management
management; and the
and the money that is borrowed, is procured
upon terms infinitely more difadvantageous to the public. Whether,
in tîme of peace, ſome money might not be raiſed, in a favourable man-
ner, upon life annuities, is queftionable; but, there can be no doubt
that, in time of war, it is impoffible for the public to make any tole--
rable bargain with money-lenders, founded on any uncertain con--
tingency.
-
3+ It is well known, that the intereſt of money is perpetually decreaſing, with the in- -
creafing wealth and commerce of a country, and of that circumftance the public is par-
ticularly able to avail itſelf: For when it regularly and punctually pays the intereſt of its
debts, it can always borrow in time of peace on better terms than private individuals, on
account of the greater eafe and certainty with which the intereft of its annuities are re-
ceived, particularly by thoſe who refide in the capital.
It is alfo proper to remark, that diminiſhing the intereft is not fufficient. It is alfo
neceſſary to leſſen the capital, by feaſonable and well-conducted operations.
:
Befides,
*
32
HISTORY OF THE PUBLIC REVENUE
Beſides, whatever may be faid in regard to calculations in the Alley,
that an annuity for a hundred years, is equal to a perpetuity; yet, as
Dr. Smith well obferves, thoſe who buy into the public ſtocks, in order
to make family fettlements, or to provide for remote futurity (and
they are the principal buyers and holders of ſtock), and corporations of
every kind, are not fond of buying into a fund, the value of which is
per-
petually diminiſhing. And though the intrinſic worth of an annuity for
a long term of years, is nearly the fame with that of a perpetual annuity,
yet it is not fo valuable in the market, is never fo much in requeſt, and
does not find the fame number of purchaſers 3.
Indeed, if a nation is determined to perſevere in the funding ſyſtem,
the wifeft and moft politic ftep it can poffibly take, is to adopt that
mode of procuring money, which is the moſt likely to be the cheapeſt
and moft advantageous in the courſe of
ages. It may flatter itſelf, that
when it borrows upon fhort or long annuities, it will reap confiderable
advantages, when fuch annuities are extinguiſhed. But it ought at the
fame time to remember, that before the annuities can ceaſe, more
money, in all probability, muſt be raiſed; and if the fame unprofitable
ſyſtem is adhered to, the nation will always be borrowing money upon
diſadvantageous terms.
4. The eſtabliſhment of an unalienable finking fund, for the redemp-
tion of public debts, is another principle, which, in a State, where it is
propoſed to perſevere in the funding fyftem, cannot poffibly be difpenfed
with; and fuch a fund ought to arife, not from any little furplus of
revenue, or the increafing produce of particular branches, but ſhould be
founded on fome great, folid, and productive tax, proportioned as much
as poffible to the wealth of the nation, and the debts it has incurred.
For that purpoſe, no plan would be fo effectual, as a permanent regula-
tion, by which every individual, having property in England, whether
natives or foreigners, was under the neceffity of leaving to the public, at
leaft one half of his clear annual income in this country, at the time of his
death. No teftament ought to be valid, without ſuch a bequeſt; and
if any perſon died inteftate, a year's income fhould be exacted. A re-
venue of this kind, would always keep the debts of a nation within mo-
derate bounds, and could hardly be evaded.
35 Wealth of Nations, vol. ii. p. 547-
5. The
OF THE BRITISH EMPIRE.
33
5.
The care of fuch an unalienable finking fund, ſhould be entruſted
to individuals peculiarly refponfible for its fuccefs. A fpecial commif-
ſion ſhould be appointed for that purpoſe alone. A different ſet of in-
dividuals ſhould be pitched upon to pay off public debts, from thoſe by
whom they are contracted; and the progreſs made in diſcharging the
incumbrances of a nation, ought never to be fo involved with other
operations of finance, as to become imperceptible to the eye of the
public.
6. Every means ſhould be adopted that might have a tendency to en-
courage individuals, when they had no near relations, to leave their
fortune and property to the public. The effects of ſuch a meaſure, particu-
larly in wealthy and commercial nations, would be almoſt incredible. But
this is a fubject, which will afterwards require to be more fully inveſti-
gated. At preſent, it is fufficient to remark, that if ſuch a ſpirit had
been encouraged, when our debts were originally contracted, and par-
ticularly, if thoſe fums had been left to the State, invariably appropri-
ated, and accumulated at compound intereft, which were bequeathed
to other public purpoſes of leſs general utility, no inconfiderable ſhare
of our preſent immenfe incumbrances would have been long fince
cancelled.
Laſtly, peculiar checks, and additional fecurities ought to be con-
trived, to prevent the waſte of the money that is borrowed. It is the
abuſe of the funding fyftem; the fraudulent practices, and ſhameful
profuſion of thoſe who are entrusted with the guardianſhip of the
public purſe, which occaſion confuſion and diſtreſs in the finances of a
country. Pinto afferts, that the Engliſh might have done as much
during all their wars, with one third lefs expence". This is undoubt-
edly exaggerated. But no one can poffibly deny, that if effectual ſteps
had been taken at the revolution, to check public frauds, and if the
fame meaſures had ever fince been perfevered in, a confiderable portion of
our public debts would have been prevented.
36 The beſt check undoubtedly would be, to order fuch money to be paid to par-
liamentary commiffioners, according to an ancient practice in this country. Such com-
miffioners ought to have the whole charge of borrowing and expending the money. The
confequences of trufting fuch powers to a minifter, muft ever be ruinous.
37 Effay on Credit, p. 107.
[E]
Thefe
34
HISTORY OF THE PUBLIC REVENUE
Conclufion.
Theſe are the principles on which public debts may, in general, be
fafely contracted, and which, if fteadily adhered to, would always pre-
vent 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 paſt miſconduct, 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 ſtateſ-
men, and the wifdom of our legislature, may deem moft conducive to
the intereft of the community.
}
CHA P. III.
Of the Public Debts of England, prior to the Revolu-
tion 1688.
HE public debts of a nation, when it is fubject to a monarchical
THE public debts of a, matione cont de red in euro da ferent coical
form of government, may be confidered in two different points
of view: either as the perſonal debts of the fovereign, or as real in-
cumbrances on the community.
A modern French author' (Monfieur Linguet) contends, that in an
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 the public debt at the commencement of every reign
But in England, where a limited monarchy exiſts, 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
Linguet, Annal. politiq, du dix huitieme fiecle, tome i. p. 38.
that
OF THE BRITISH EMPIRE.
35
that fuch a meaſure would be a diſgraceful and criminal bank-
ruptcy.
It is impoffible to perceive, either the juftice of the diſtinction ſtated,
or the benefit that would refult from it, to an abfolute government.
As to the juſtice of the meaſure that is propoſed, it is evident that
the money is borrowed in both cafes by the legal fovereign, and is fup-
poſed to be expended for the public uſes of the State; and whether
the fovereign that enters into fuch pecuniary engagements, is a def-
potic monarch, or confifts of many individuals, does not feem to be
material.
With regard to the advantage of ſuch a diſtinction, it would foon
appear how unferviceable it muſt prove. The credit of an abfolute mo-
narch, who could only give ſecurity to his creditors, during his own
life, would be neceffarily unproductive and inſignificant. Indeed fuch a
principle would be equivalent to the eſtabliſhment of a perpetual inabi-
lity 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 cu-
rious fubject of political fpeculation, from examining the hiſtory of our
public debts prior to the Revolution, during which period they were
only accounted the perfonal obligations of the fovereign, and weigh-
ing the confequences they produced at that time, when put in compa-
rifon with thoſe perpetual national incumbrances which have fince
taken place.
1232.
The unfortunate Henry III. is the firſt monarch of England whofe Henry III.
debts are recorded in hiftory. In the fixteenth year of his reign, they
had become ſo great, that parliament was obliged to grant an aid to affiſt
him in paying them off. His pecuniary diftreffes, however, were perpe-
tually encreafing, in confequence of his folly and extravagance; 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 ſhrine
of St. Edward, though at that time an object of particular veneration.
Indeed, we are informed by Matthew Paris, that he owed ſo much, to
ſo many different people, for the very neceffaries of life, that he durſt
hardly appear in public, for the clamours of his creditors.
[E] 2
And other
hiftorians
1
36
HISTORY OF THE PUBLIC REVENUE
Edward I.
Edward II.
Edward III.
2
hiſtorians repreſent him as publicly declaring, that fuch were his diffi-
culties, 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 deceaſed remained
in purgatory until all his debts were paid, to make great exertions in
order to diſcharge them. And thoſe 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 ſmall
refources would permit.
It appears that Edward II. imitated his father's example, in refolving
to diſcharge the debts of his predeceffor, for in the third
year of his
reign, writs were iffued to the collectors of the cuftoms, requiring them
to pay certain vaſt fums of money to his father's creditors, out of the
faid cuſtoms, and 100,000l. 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. neceffarily
involved him in the greateſt difficulties. It is ftated in the very writ,
Anno 1340. by which a parliament was fummoned in the fourteenth year of his
reign, that he had borrowed fo much money abroad upon his perfonal
Security, that if the fums for which he ſtood engaged were not all paid,
he was obliged in his own proper perſon to return to Bruſſels, and to
remain there, as a pledge to his creditors. Compulſive loans were not
unuſual during his reign"; and pawning the royal jewels, nay the
crown of England itſelf, were meaſures to which his neceffities.com-
pelled him.
Richard II.
Richard II. at firft endeavoured to eſtabliſh the credit of the crown,
by exerting himſelf to pay his grandfather's (Edward III.) debts, which
2 See Stevens's Hiftory of Taxes, pref. p. 31. See alfo Parliamentary Hiſtory, vol. i.
p. 27, 28. 44.
3 In the words of the record," ad exonerationem animæ Henrici regis, patris noftri."
→ See Turner's cafe of the bankers and their creditors, p. 37.
5 Cafe of the Bankers, p. 20.
• Parliament Hift. vol. i. p. 251.
1
were
OF THE BRITISH EMPIRE.
37
were very confiderable. The commons had petitioned the crown for
that purpoſe, in the fourth year of his reign. They declared, that
fuch a payment would be a ſtrong encouragement to his Majeſty's fub-
jects, to lend him money on any great and unforeſeen emergency.
The anſwer from the throne was very gracious; the King declaring,
that the requeſt had been in a good meaſure already fulfilled, and that
the remainder ſhould be done according to their petition'.
It was in the reign of this monarch, that the firſt attempt was made
to raiſe
money by the aſſiſtance of Parliament. A plan had been form-
ed of invading France with à formidable army; but fuch was the po-
verty of the exchequer at that time, that it was found impracticable to
attempt it, without borrowing money for that purpoſe. The King
therefore, had confulted with the principal merchants of London, and
of other wealthy towns, about a loan. But fo many of them had
fuftained fuch heavy loffes by former loans, that they refuſed to lend
any confiderable fum of money without the fecurity of Parliament. -
In order to procure the fanction of that affembly, a Parliament was Anno 1382,
fummoned, and when the commons demanded what fum was neceffary
to defray the charges of the intended expedition, they were anſwered
fixty thousand pounds: even that ſmall fum could not be procured. The
nobility pretended that they had no money; but they were willing to
ferve the King perfonally in the war. The merchants on the other
hand refuſed to ſupply the King's wants, unleſs they received the moſt
indifputable fecurity, and unleſs the nobility, clergy, and gentry would
furniſh him with a confiderable fum without intereft. After an
ineffectual attempt to raiſe the money, by granting foreign merchants
the liberty of trafficking in England on eaſy terms, the King was unwil-
lingly compelled to give up the firſt enterpriſe he had attempted, for the
want of that inconfiderable fupply.
Among the articles for which Richard II. was depofed, his having Henry IV.
extorted money under the pretence of borrowing, which was never
repaid, is particularly infifted upon. It is no wonder therefore, that
his fucceffor ſhould be particularly anxious to avoid following his exam-
7 Rot. Parl. vol. iii. p. 96. Num. 45. Cafe of the bankers, p. 17.
Rot. Parl. vol. iii. p. 122, 123.
9 Rot. Parl. vol. iii. p. 419.
4
Parl. Hift. vol. i. p. 394, 395.
ple
$8
HISTORY OF THE PUBLIC REVENUE
1
Henry V.
ple in that particular. Accordingly we find, that in the fixth year of
his reign, when the commons prayed, that all tallies given by his Ma-
jeſty for money lent to him by his ſubjects, might be ſatisfied, according
to the true purport of the faid fecurities, notwithſtanding any change
made in the minifters of State, or officers of the exchequer, the King
anſwered, that good payment fhall be forthwith made of the faid
debts'.
This gallant monarch did not purchaſe his laurels in France, without
oppreffing his people, and involving himſelf in the greateft pecuni-
ary difficulties. In the fourth year of his ſhort, but brilliant reign, his
wants became particularly preffing; and a Parliament having been
called for their relief, a fubfidy of two tenths and two fifteenths (about
Anno 1416. 60,000l.") was granted by the laity; and two tenths from the clergy.
But, as there was reafon to apprehend that the money would come in
too flowly for the purpoſes of the crown, it was propofed, that ſuch
as were willing to lend money to the King, fhould have letters patent
to be paid out of the firft produce of the fubfidy that was granted; and
the Dukes of Clarence, Bedford, and Gloucefter pledged themſelves
to fee this performed, in caſe the King fhould die before the fubfequent
feaſt of St. Martin's, in the year 1417. Notwithſtanding this addi-
tional fecurity (which however was only contingent), the nation was
either fo poor, or fo little accustomed to propofals of that nature, that
only half a tenth and fifteenth (about 14,500l.) could be raiſed; and
the King was obliged to pawn the crown, and the royal jewels, to
make up the deficiency". Another fubfidy, amounting to about 38,000l.
was granted in the feventh year of his reign; the produce of a part of
which, the King found means to anticipate with fome difficulty". On
the whole, it appears that Henry was not only ill-fupported by the
grants of his English fubjects, but alfo found the utmoſt difficulty in
borrowing money on the fecurity of the fubfidies which he received.
Whereas, had the funding ſyſtem exiſted in his reign, and could
wealthy individuals have had full affurance that their money would be
repaid, or an adequate intereft allowed for it, even though the King
fhould die; it is more than probable, that he would have completed the
10 Cafe of the bankers, p. 17. Rot. Parl. 6 Henry IV. num. 53. vol. iii. p. 555.
60,000/. was about 116,000% of our money.
12 Rot. Parl. vol. iv. p. 95. Parl. Hiſt. vol. ii. p. 155.
3 Rot. Parl. vol. iv. p. 117.
{
conqueſt
OF THE BRITISH
3.9
EMPIRE.
conqueft of France before he died. Whether that would have proved
of advantage to this country, or otherwiſe, is a very different queftion.
During the reign of this weak and unfortunate monarch, the debis Henry VI.
of the crown were often brought under the confideration of Parliament.
Soon after his acceffion, letters patent granted to the bishop of Win- Anno 1425-
cheſter, entitling him to receive twenty thousand pounds, out of the
firſt money ariſing from the cuſtoms, and other revenues of the crown,
were confirmed by an act of the legiflature; and the council were em-
powered by different votes of credit, paffed at various times, to give
fecurity to the King's creditors, for fums of money, which varied from
50,000l. to 200,000l. according to the amount of the fubfidy that was
granted**. But many of theſe fecurities not being taken up, Henry's
debts were perpetually accumulating; and they amounted at laſt to
372,000l. fuppofed equal in value to 1,100,000l. of our money". The
pecuniary difficulties in which this King was involved, joined to the
fhameful loſs of all the immenfe territories which had been acquired by
his father on the Continent, were the great fources of the revolution:
which afterwards took place in favour of the houfe of York.
We are told by lord Bacon, in his hiftory of Henry VII. that he Henry VII.
often borrowed money of his fubjects, but punctually paid it back the
very day it became due. It was aconſtant maxim with him, rather to bor-
row too ſoon, than pay too late. The fums he had in loan, at leaſt
in the beginning of his reign, were very inconſiderable. At firſt, he
could only procure two thouſand pounds, and afterwards only four,
from the city of London. But in order to keep up his credit, he was
more anxious to repay fuch inconfiderable debts, than the public is at
preſent about diminiſhing the many millions which it owes".
In the preceding part of this work, fome account was given of this Henry VIII:
monarch's compulſive loans, and other tyrannical exactions"; and of the
acts that were paffed, by which the debts he had incurred were dif-
charged. The firſt ſtatute that was paffed for that purpoſe, is not in-
cluded in our printed acts of Parliament, but may be ſeen in Burnet's
Hiſtory of the Reformation. The grounds which are ſtated in the
preamble to the bill, as the cauſes of its being enacted, are truly in-
14 Parl. Hift. vol. ii. p. 195. 217. 222, 233. 241. 245. 249. 262.
*5 Ibid. p. 275, 276.
16 Bacon's Hift. of Henry VII. Edit. 1676. p. 46.
}
17 See parti. chap. 8.
3 Vol. i. Append. No. 31.
famous..
40
HISTORY OF THE PUBLIC REVENUE
Edward VI.
66
famous. It is there declared, "That though divers of his fubjects had
"lent his majefty great fums of money, which had been all well em-
ployed in the public fervice, and for the payment of which, the lenders
"bad bis fecurity ;" yet, in confideration of the great things that the
King had done for the church and nation, which had involved him in
great expences, the Parliament offered him all the money he had thus re-
ceived in loan; difcharged him of the obligations he had come under ;
and of all fuits that might ariſe thereupon". Another act of a fimilar
nature was paffed, in the 35th year of his reign". Fortunately the fta-
tute book cannot produce another example of fuch defpotic, arbitrary,
and difgraceful proceedings.
During the reign of Edward VI. it became an ufual practice to bor-
row money on the Continent; and it appears that he was indebted to
banks and to individuals abroad, in the fum of 132,372. 10s. for which
he paid a heavy intereft of 14 per cent. His debts within the realm
amounted to 108,8071. 4s. 10d. the particulars of which were as
follows":
To the houſehold
To the chambre
To the wardrobe
To the ftable
£. s. d.
28,000 0
23,000 o o
6075 18
1000 о
5000 0
J
To th' Admiraltie
To th' Ordinaunce
To the Surveyer of the Works
To Calleys
To Barwyek
To the Revels
To Silley and Alderney
To Ireland
"To Winter, for his Voyage to Ireland
1
3134
7 10
3200
14000
6000
оо
1.000
1000
13128 6
471
8
4 6
To Barthilmewe Campagni (the King's Merchant) 4000
To Portefmouth, and the Iſle of Wight
To the Men of Armes
To the Lieutenant of the Tower
1000
800
997 7 10
£. 108,807 4 10
The
19 Parl. Hift. vol. iii. p. 65.
23
20 Cap. 12.
Strype's Ecclef. Memorials, vol. ii. p. 312. Parl. Hift. vol. iii. p. 264.
OF THE BRITISH EMPIRE.
41
1
The reader will naturally remark the ftriking difference between the
fums then due on account of the Navy and the Ordnance, and the en-
ormous outſtanding or unfunded debts which now exift on theſe two
departments.
Mary began her bloody reign, with an unuſual act of grace to her Mary.
fubjects. A fupply had been granted by Parliament to her brother
Edward VI. for the purpoſe of paying his debts. The money had not
been raiſed when the came to the throne; and by the advice of the
artful Gardiner, ſhe remitted the fubfidy, with a view of ingratiating
herſelf with the people, and of rendering a Popish Prince more accept-
able to her Proteftant fubjects. But, fhort as her reign was, fhe was re-
duced to fuch pecuniary difficulties, as to be obliged to borrow finall
fums, even ſo low as ten pounds, according to people's abilities. It is
proper however to mention, that when the found it was unlikely that
ſhe could live long enough, to obtain any aid from Parliament to pay
off the debts ſhe had contracted, the made it one of her laſt requeſts to
her fifter, to fee them fatisfied²².
The conduct of Elizabeth, in regard to public debts, cannot be bet- Elizabeth.
ter deſcribed, than in the words made ufe of by Sir Walter Mildmay,
Chancellor of the Exchequer, on a motion for granting a fubfidy to
that Princeſs, in the Parliament held anno 1575.
66
re
<<
"Notwithſtanding all theſe expences (alluding to the charges in
"Scotland, Ireland, and in other wars) her Majefty hath moſt care-
fully and providently delivered this kingdom from a great and
weighty debt, wherewith it hath been long burthened; a debt be-
gun four
years, at leaſt, before the death of Henry VIII.. and not
"cleared until within theſe two years, and all that while running upon
"intereft: a courfe able to eat up not only private men, and their pa-
"trimonies, but alſo Princes and their eftates. But ſuch hath been
"the care of this time, as her Majeſty and the State is clearly freed
"from that eating corrofive; the truth whereof may be teftified by
"the citizens of London, whofe bonds, under the common feal of the
"city, which have hanged fo many years to their great danger, and
"to the peril of their whole traffick, are now all diſcharged, cancelled
2 Parl. Hift. vol. iii. p. 288. 343. 357.
[F]
"and
42
HISTORY OF THE PUBLIC REVENUE
James I.
Charles I.
" and delivered into the chamber of London, to their own hands. By
"means whereof, the realm is not only acquitted of this great burden,
" and the merchants free, but alſo her Majeſty's credit thereby, both
"at home and abroad, greater than any other Prince for money, if ſhe
"have need. And ſo in reaſon it ought to be, for that ſhe hath kept
promiſe to all men, wherein other Princes have often failed, to the
"hindrance of many"."
CC
23
It is to be remarked, that Elizabeth, and indeed her fifter Mary,
were fometimes obliged, for the better fatisfaction of their creditors, to
mortgage their domains. Even with that additional fecurity, Mary could
not procure from the city of London, the fmall fum of 20,000l. under
12 per cent.24.
James was hardly feated on the throne of England, before he found
himſelf involved in the greateſt pecuniary difficulties, in confequence of
his own profuſion, and the rapacity of his courtiers. It was ſtated in
Parliament, that Elizabeth had died in debt, to the amount of 400,000l.
But it appears, that ſhe left fubfidies due to her, amounting to 3.50,000%.
which her fucceffor actually received, and which confequently ought to
have been deducted". A ftate of the King's debts, was reported to the
Houfe, 11th March, 1622; but thejournals are ſo defective, that it is im-
poffible now to diſcover the particulars. During this Monarch's reign, it
fhould feem, that the fyftem of mortgaging grants, and anticipating
their produce, was perfectly well known. For in the Parliament held
anno 1624, the famous duke of Buckingham moved in the Houſe of
Lords, "That a meeting might be inftantly prayed with the Com-
mons, to propoſe to them, that certain monied men might be dealt
"with, to diſburſe ſuch a fum as was requifite for the preſent ufe; the
repayment of which to be ſecured by parliament out of the ſub-
"fidies intended in the grant, according to what has been heretofore
"done in the like cafes: concluding, that he doubted not, that fome
"would be found to difburfe the fame, upon that fecurity".
66
(6
19
The debts that were left by James I. upon his fucceffor, amounted
to about £360,000, without including arrears of penfions, and a con-
fiderable fum due to the houſehold. So heavy a load, joined to the wars
23 Parl. Hiſt. vol. iv. p. 211.
25 Parl. Hift. vol. v. p. 147. 219.
2+ Parl. Hift. vol. iii. p. 358.
2 Parl. Hift. vol. vi. p. 120.
which
OF THE BRITISH EMPIRE.
43
}
which Charles attempted to carry on, involved him in the greateſt dif-
treffes. Had this prince, however, followed the advice given to his
father, a little before his death, by that excellent counſellor, the earl of
Carliſle; had he, at the commencement of his reign, caft away but
ſome crumbs of his crown, or beftowed fome grains of his prerogative
on his people, they would probably have exerted themſelves to have
rendered him happy and refpectable". But the haughty pretenfions of
Elizabeth, which the knew well how to maintain, when put into the
hands of weaker and lefs able fovereigns, could not cafily be fupported.
This is a fubject, however, which has been already ſtated at confiderable
length in the former part of this work.
From the commencement of the Civil War to the Reſtoration, no-
thing material occurs with regard to public debts. But, no fooner was
Charles II. feated upon the throne, than parliament was obliged to take
which were
into conſideration, the arrears due to the army and navy,
very great: and the Commons feemed anxious not only to pay them
off without delay, but alſo to prevent the dangerous confequences that
might enfue, from leaving even the remnant of a public debt in the
kingdom. One member in particular declared, that the incumbrances
of the nation would be found to reſemble that ſerpent in America, that
could devour an ox at a meal, and then falling afleep might eaſily be
deſtroyed; but unleſs his bones were broken to pieces, he grew again as
big as before. In the fame manner, the debts of the nation, though
partially diminiſhed, would again increaſe, whilſt a veftige of them
remained and he recommended to the Houſe, to pay off fuch in-
cumbrances, by one bold effort; and not to imitate the fooliſh wo-
man in the fable, who roafted a hen with a faggot, ftick by ftick, un-
til the faggot was all ſpent, and the hen ftill continued as raw as ever.
Much good fenfe is couched under theſe odd alluſions”.
But, however anxious the Commons were, to break the bones of the
ferpent, yet the ſyſtem of contracting temporary debts, by anticipating
the produce of the grants of parliament, was frequently practifed during
27 For Lord Carlifle's excellent advice, fee Parl. Hift. vol. v. p. 530.
28 Parl. Hift. vol. xxiii. p. 11.
Charles II
*
[F] 2
this
44
HISTORY OF THE PUBLIC REVENUE
this monarch's reign, and met with every poffible countenance from the
legiflature.
Indeed, fo far was a claufe of credit from being invented (as ſome
fuppofe to be the cafe) pofterior to the Revolution, that it was uſual,
during the greater part of this Monarch's reign, to infert a claufe em-
powering the officers of the Exchequer to borrow money from all
perfons, whether natives or foreigners, upon the ſecurity of the ſubſidy
Anno 1667. that was granted; and a law was paffed, entitled, "An act for affign-
"ing orders in the exchequer, without revocation"," which enabled the
King to borrow money upon the credit of any branch of the Revenue ;
becauſe in the words of the Statute, "it had been found by experience,
"that the powers of affigning orders in the exchequer by former acts,
"without revocation, had been of great ufe and advantage to the per-
"fons concerned in them, and to the trade of the kingdom." Not-
withſtanding this act, an univerfal jealoufy prevailed, when the difgrace
at Chatham took place, that ſome ſtop would be put to the payments at
18 June1667. the exchequer. But the King iffued a proclamation, to diffipate all fuch
Shutting up
the exche-
quer.
apprehenfions; and not only declared, that no alteration or interruption
ſhould be made in regard to any fecurity already granted, but alſo
pledged himſelf, that the fame reſolution ſhould be held firm and facred
in all future affignments.
Here it is proper to give fome account of a tranfaction which
contributed to the many heavy burdens under which we now groan,
and which will for ever ftamp the character of Charles II. with the
moſt indelible infamy.
The credit of the crown, in confequence of the acts of parliament,
and the proclamation above-mentioned, was carried to a very confider-
able height; and the bankers, and other wealthy individuals, had made
it a common practice to advance money to the exchequer, upon the
fecurity of the fupplies voted by Parliament; and they were gradually
repaid, when the produce of the grants came into the treaſury. The
bankers, by this means, received from eight to ten per cent. for money,
which their customers had placed in their hands without intereft, or
which they had borrowed at the legal rate of fix per cent. But an end
20
19
Car. II. cap. 3.
30 See a copy of the declaration, Cafe of the bankers, p. 54.
1
was
OF THE BRITISH EMPIRE.
4;
was foon put to fuch vifionary profits: for on the 2d January, 1672, a
proclamation was iffued, fufpending all payments upon affignations in
the exchequer for the ſpace of one year, a period which was after-
wards prolonged, and never came to a conclufion. The confequences
of ſuch a meaſure may eaſily be conceived. Confufion overfpread the
whole country.
Many stopped payment, or were ruined: diftruft
every where prevailed; and a general ſtagnation of commerce took
place, by which the public was not only partially, but univerfally af-
fected³¹.
The fum of which the bankers and others were thus defrauded,
amounted to 1,328,526 l.; and the King, by letters patent, charged his
hereditary revenue with the intereft of that fum at fix per cent. amount-
ing to 79,7117. 11s. 24d. per annum", which was punctually paid, un-
til about a year before his death. The payment was then ſtopped; and
after vainly endeavouring to intereft the legiſlature in their behalf, theſe
unfortunate creditors were at laft obliged to maintain their rights before
the courts of justice". The fuit was protracted for about twelve years.
in the courts below, but judgment was obtained againſt the crown,
about the year 1697. The decifion, however, was fet afide by Lord
Somers, then chancellor; though it is faid, that ten out of the twelve
judges, whom he had called to his affiftance, were of a different opinion.
The caufe was at laft carried by appeal to the Houſe of Lords, by
whom the decree of the chancellor was reverfed; and the patentees
would of courfe have received the annual intereft contained in the ori-
ginal letters patent, had not an act paffed anno 1699, by which, in lieu
thereof, it was enacted, that after the 25th December 1705, the here-
ditary revenue of excife fhould ftand charged with the annual pay-
ment of three per cent. for the principal fum contained in the faid let--
ters patent, fubject nevertheleſs to be redeemed upon the payment of
a moiety thereof, or 664,2637.
The reader will naturally be anxious to know the amount of the lofs
which the bankers fuftained in confequence of this tranfaction, and the
3 Hume's Hift. vol. vii. p 476. Macpherfon's Hift. of Great Britain, vol. i. p. 451.
32 Letter from a By-ftander, p. 88. See alfo Carte's full Anfwer to the By-ftander,
p. 91. and 145. Alſo a Letter to the Rev. Mr. Thomas Carte, p. 81. and 98. And
Carte's full Vindication, p. 104.
33 Comm. Journ. vol. x. p. 224, 225.
і
effects
16
HISTORY OF THE PUBLIC REVENUE
Amount of
our public
debt at the
Revolution.
effects of ſuch proceedings upon the credit of the crown, and of the
public.
The fum to which the bankers and their creditors were entitled, when
the matter was thus fettled by the interpofition of the legiſlature, was
as follows 34;
7
1. To the original fum ftopped in the exchequer, anno 1672, £.1,328,526
2. To 25 years intereft, at ſix per cent. (about)
Total, principal and intereſt
2,100,000
£. 3,428,526
As by the act above-mentioned, their whole demand was reduced to the
ſum of 664,2637. it is evident that the lofs they ſuſtained muſt have been
about 2,800,cool.
((
With regard to the confequences of thefe 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 intereft which he had paid
before that event; and Hume from thence takes an opportunity of
remarking, “That public credit, inſtead of being of fo delicate a na-
ture as we are apt to imagine, is in reality ſo hardy and robuſt, that
fo
"it is very difficult to deftroy it". But the events at the time, were
far from juſtifying this poſition. In a tract written anno 1693 (attri-
buted to the Marquis of Halifax), wherein, among other modes of raifing
money, he takes into confideration, that of borrowing upon perpetual
funds, it is obferved, "That the breach of the exchequer credit by
"King Charles, will make men very ſhy of parting with their money
upon new projects at a distance";" 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 con-
fiding any confiderable fum to government, unleſs they were tempt-
ed by exorbitant profit and ufurious advantages.
It was the more neceffary to give an hiſtorical account of this tranf-
action, becauſe the above principal fum of 664,2637. compofes a
34. See a Modeſt Vindication of the Memory of King Charles II. in relation to the
ftop at the exchequer.
35 Danby's Memoirs, p. 65.
3/ Somers's Collection of Tracts, vol. iv. p. 67.
36 Hume's Hift. vol. viii. p. 226.
part
OF THE BRITISH EMPIRE.
47
part of the preſent national debt of this country, and indeed is the only
portion of it that was contracted before the Revolution. There was, it is
true, a ſmall ſum (about 60,000l.) due to the fervants of Charles II.
which was directed to be paid to them in three years, from the 24th of
December, 1689". But it was ſuppoſed, 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 ift of February, 1690; which, it is probable,
many
of them refuſed or neglected to do. There was alſo, on the 5th
of November, 1688, an arrear of 300,000l. due to the army, and
about 280,000% of the revenues of 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 compenſated theſe demands. As to the intereſt of the ſum above
ſtated, it was originally at 6 per cent, and confequently amounted to
39,8551. 175. 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 ſubſcribed, in confequence of 6 George I. cap. 4. into the
South Sea ftock, which now bears only 3 per cent. intereft,. 664,263 %.
of principal, and 19,9277. 18s. 9 d. of intereft, is the whole of our
prefent debt, contracted prior to the Revolution.
Such are the moſt material tranſactions which took place with regard Conclufion.
to public debts, during the period of 450 years prior to the Revolution:
from an attentive confideration of which, and of the circumftances.
ftated 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 fucceſsful conqueror, like Henry V. would never have been im-
peded in his progrefs, by the want of a few thouſand pounds, which
feems to have been his unfortunate cafe.. Whereas, on the other hand,
had no money ever been borrowed, were we now free from the burden
of thoſe taxes, which have been impofed, to provide for the intereſt of
our prefent national incumbrances, the fituation of this country, at this
time, would be truly happy and deſirable..
31 Hiftory of the Public Revenue, by James Poftlethwayt, p. 107.
3)
William and Mary, Seff. 1. cap. 28.
- 49 Hiftory of our National Debts and Taxes, p. 6.
41 Ibid. p. 7..
CHAP.
73
!
HISTORY OF THE PUBLIC REVENUE
CHA P.
IV..
Of the Rife and Progress of our prefent National Debts.
T
HE three grand political objects that our ſtateſmen ſeem to have
had in view, from the Era of the Revolution to the prefent 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 preferve the allegiance, and
maintain the connexions of thofe very colonies with their mother
country, when, trufting to the promiſes, and fupported by the arms of
France, they lately declared themſelves independent States. The purſuit
of thefe objects gradually brought on thoſe heavy incumbrances, under
which England now groans. Other cauſes of lefs moment may indeed
have occafionally contributed to increaſe them but upon the whole,
it will hardly be denied, that our prefent national debts owe their ori-
gin, and the greater part of their amount, to the neceffity we have
been under, either to oppofe the arms, or to guard againft the political
intrigues of the houfe of Bourbon, for nearly a century paſt.
The power that France had attained, and which rendered fuch ex-
ertions neceffary, is in a great meaſure 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 art-
ful Mazarine, and expecting to ſecure acquifitions either on the Con-
tinent or in America, that would give luftre to his ufurped admini-
ſtration, 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 alfo compelled the Spaniards to give their Infanta to Lewis XIV.
an alliance which has fince been productive of many fatal confe-
quences.
Unfortunately alfo, the reſtoration of the royal family did not correct
this miſtake in politics. During their long refidence abroad, they had
imbibed
2
氰
​OF THE BRITISH EMPIRE.
43
imbibed foreign manners and foreign principles, and felt little of the
natural, and perhaps uſeful, prejudices of an Englishman. Charles,
diffatisfied with the neceffary reſtraints of a limited government, which
his own profufion and mifconduct alone could have rendered irkfome
to him, inſtead of endeavouring, with the affiftance of fome other
States of Europe, to curb the power of Lewis, actually became his
penfioner; and flattered himſelf with the hopes of being able, by that
monarch's affiftance, to render himfelf defpotic. His parliament in
vain recommended his entering into a war with France; and in vain
was every motive held forth, that could have weight with an ambitious
fovereign, panting for glory, or a virtuous prince, who wiſhed to be
accounted the real father of his people. Alive only to pleaſure, infen-
fible of the feelings of patriotifm, and callous to honourable fame, he
fuffered an opportunity to eſcape, which, had it been embraced, would
have rendered all farther exertions, for reftraining the power of France,
within reaſonable bounds, unneceffary. Inftead of this, a peace was
concluded at Nimeguen, not only highly favourable to that monarchy,
but which alſo furniſhed it with an opportunity, of preparing for freſh
wars, and new acquifitions'.
When James II. fucceeded to the crown, fome expectations were at
firft entertained of his acting a different part. He had more of the
ſpirit of an Engliſh fovereign than his brother. His pride inclined
him to aſpire at being an independent monarch; nor did he reliſh the
fuperiority which Lewis affected over the other powers of Europe. But
unfortunately he was a bigotted Roman Catholic, and his fubjects had
every
reaſon to apprehend that their Sovereign was refolved to deprive
them of their civil and religious rights and privileges. The Dutch, and
other nations in Europe, were at the fame time fenfible, that while
James continued upon the throne of England, they could not depend
It is certain (fays Hume) that this was the critical moment (May 1677) when the
King might with eaſe have preſerved the balance of power in Europe, which it has fince
Vol. viii. p. 31.
coſt this iſland a great expence of blood and treaſure to reſtore.
2
Though he wished to be abfolute, yet he was defirous of acquiring unbounded autho-
rity, without foreign affiftance. Macpherſon's Hiſtory of Great Britain vol. i. p. 513.
His ambaffadors told the States that he was too powerful a prince, to put himſelf under
the protection of France, and that he had too much ſpirit, as well as too high a birth, to
be treated like the Cardinal of Furftenburg. Ibid. p. 511.
[G]
upon
50
HISTORY OF THE PUBLIC REVENUE
Caufes of our
public debts
at the Revo-
lution.
upon his aid to preferve them from being fwallowed up by France;
and the confequence was, a general combination, both at home and
abroad, to put an end to the reign of a prince, whofe conduct was
fo likely to prove fatal to his own fubjects, and to Europe in
general.
But this leads us to the acceffion of a monarch, who refcued this
country from civil, religious, and political bondage; under whofe go-
vernment, however, our prefent financial burdens, at leaft to any
great extent, had their commencement.
WILLIAM
III.
*
Whoever confiders the fituation of England at the acceffion of Wil-
liam III. will eaſily perceive that many circumſtances, both foreign
and domeftic, concurred to render the contraction of a public debt
almoſt unavoidable; particularly as a war with France was neceffary to
maintain a revolution, fo oppofite to the views, and fo contrary to the
interefts of that powerful kingdom.
The revenues of England at the time were evidently inadequate to
the neceffities of the public in fo critical an emergency; and yet they
could not fafely be increaſed. The English were unaccustomed to
heavy taxes, and were not yet fenfible, that no nation ever enjoyed
civil and religious liberty, without paying dearly for the bleffings it
affords. Not many years before the Revolution, when the royal fa-
mily was reſtored, a vote of Parliament had paffed, declaring, that the
permanent revenue of the crown ought to be made up 1,200,000 Z.
But fo enormous did that fum appear, that the neceffary fteps
were not taken for that purpoſe, until fome time after. By different
additions, however, the revenue had at laſt been raiſed to about two
millions a year but it was complained of as greater than the country
could bear; and the partizans of William, having unfortunately held
forth the reduction of the revenue as a ftrong motive for a change in
the government, it became neceffary, when the Revolution was accom-
pliſhed, to gratify the people with the abolition of the productive duty
of hearth-money, which happened to be particularly obnoxious.
a year.
The revenue at that period was not only ſmall in itſelf, but alſo, in
confequence of the calamities with which wars are always accompanied,
it.
OF THE BRITISH EMPIRE.
5¢
it was perpetually diminishing. Tunnage and poundage, which, during
the reign of James, had produced 600,000l. a year, fell, anno 1693, to
286,687. The other branches proportionably decreaſed, infomuch
that the very fame taxes which before the Revolution had yielded
2,001,8551. clear of all charges'; in the year 1693, had fallen to
1,104,115; and in the year 1695, to 811,9494.*; in which fums,
however, no allowance is made for the abolition of hearth-money.
Some additional cuſtoms and excife had been added, but as they only
amounted to 466,2037. the whole revenue, anno 1693, did not exceed
1,570,318. It is eafy to perceive, how much fuch a circumſtance
muſt have damped the ſpirit of the people, diminiſhed the vigour of their
exertions, and increaſed the burdens of the war.
The affairs of a nation can never be properly conducted, where a
ſpirit of ſelfiſhneſs prevails; whether it ariſes from attachment to the
intereſt of one man perfonally to himfelf, or to the intereft of what
is called a party. In either cafe, the effects are much the fame, though
the object may be more confined, or more extended. That ſuch a
ſpirit prevailed in England, foon after William III.'s acceffion to the
throne, can hardly be queftioned. The ufual confequences of a fac-
tious difpofition quickly enfued. The intereft of the public was neg-
lected; and nothing was thought of, that would not contribute to pro-
mote the views of particular fets of men: nay, party was carried to
fuch a height, that either one defcription of perfons, or another, were
ever ready to rejoice when any event happened, tending to increaſe
the national diſtreffes. Nor were the baneful effects of this fpirit con-
fined to divided parliaments and fluctuating councils; they extended
to our fleets and armies, and to the management of our revenue.
"countries full of divifions (as Davenant well obferves), no man is
"continued long enough in his employment, to gain experience in it.
"He who begins to know a little, muſt preſently make room for fome-
" In
3 Davenant's Works, vol. i. p. 233. But in this fum was included the duty of hearth-
money, which yielded 245,000l. per annum, and which was aboliſhed before the year 1693.
The decreaſe in the revenue, however, was ftill very great, amounting, anno 1693, to
·652,7401. and anno 1695, to 944,906 1.
4 Ibid. vol. i. p. 20, 21. In Whitworth's edition, from fome miftake, hearth-money
is charged in the account 1693, though it had been previouſly aboliſhed.
[G] 2
66
body
:
52
HISTORY OF THE PUBLIC REVENUE
*
"C
5 $
body more uſeful in other matters, or to gratify a fide; and hence
"the affairs of a prince will ever be diſappointed, whilft the principal
"officers of the revenue, are frequently made a prey of, to each party,
as they happen to be victorious'. This refpectable author, as a
proof of the juſtice of this obſervation, mentions, that in confequence
of a ſudden and improvident change in the commiffion of excife, the
revenue had ſuffered, in that ſingle branch, no leſs a decreaſe than
256,000l. a year.
In every factious country, public frauds will abound. Thoſe who
get into
power, are afraid that they ſhall not long continue in the manage-
ment of affairs, and therefore anxioufly embrace every opportunity of
enriching themſelves, at the expence of the public; trufting either to
evade difcovery, or to eſcape the puniſhment they deſerve, through
the ſtrength and intereft of their party. The abufes and fraudulent
practices which took place in the various public offices, during the reign
of William, were very great. Some frauds were brought to light'; and
commiffioners of accounts were appointed, in hopes of diſcovering other
public defaulters; but with fuch little effect, that the commons came
to a refolution, anno 1701, "That it was notorious, that many millions.
"of money had been given to his majefty, for the fervice of the pub-
6 Ibid. p. 184.
5 Davenant's Works, vol. i. p. 180.
'One fraud that was diſcovered anno 1697, though clearly proved, and of an enor-
mous nature, paffed unpunished. Exchequer bills, when firft iffued, were not entitled to
any intereft; but when paid in, on account of any tax, they received upon the fecond
iffue (if indorſed by the proper officer), an intereft of 51. 12s. per annum.
This encou-
raged feveral of the officers of the excife and cuſtoms to contrive together to get great
fums of money, by falfe indorfements, before fuch exchequer bills had been circulated.
Many officers had enriched themſelves by this fraud, and Duncombe, receiver general of
exciſe, had amaffed a fortune of 400,000l. A bill paffed the House of Commons, fining
this flagrant offender in about one half of that fum; but it was rejected by the Lords,
in conſequence of the exertions of a noble Duke, who was 'fufpected of having been
gained over by a golden facrifice. The other perfons guilty alfo eſcaped. Life of Halli-
fax, p. 50.
It alfo appears, that many exchequer tallies were flruck with intereft, for confiderable
fums of money, not only when there was no occafion to raiſe the money, but when part
of the produce of the tax, on which the tallies were ftruck, had come into the exchequer,
See an account of the proceedings of the Houfe of Peers, in regard to the public accounts,
printed anno 1702, p. 38.
1
"lic,
OF THE BRITISH EMPIRE.
53
"lic, which remain yet unaccounted for "." And it is afferted, by an
anonymous author, that, in the ſpace of five years, the immenfe fum
of 10,864,8737. 17s. 4d. had been actually mifapplied or embezzled.
Such abuſes a foreign Prince was more likely to overlook, and would
be leſs anxious to puniſh, than a natural-born fovereign of the country.
There was alſo a want of public zeal and ſpirit, not only among ´
thoſe who were in power, but even in the nation at large, which was
attended with the moſt unfortunate confequences. The landed intereft en-
deavoured to throw off the burden of the State from their own ſhould-
ers; and procured an inſtruction to the committee of fupply, that no
money ſhould be raiſed upon land, without the fpecial leave of the
houſe". Even when a land-tax was eſtabliſhed at the rate of four
fhillings in the pound, inſtead of three millions a year, which it ought
to have produced, it only yielded two"; and every plan that was pro-
pofed in Parliament, for the general benefit, was rendered abortive. A
bill had paffed the Houfe of Commons, for raiſing a million the
upon
credit of the forfeited eftates in Ireland; but it was dropped in the
Houſe of Lords; many of the leading members in that branch of the
legiſlature, truſting that they fhould procure thefe eftates for no-
The Commons
thing, if they remained at the difpofal of the crown.
alfo came to a vote, "That the falaries, fees, and perquifites of all Jan. 19,
"offices under the crown (leaving 500l. per annum to each reſpective
officer), except the falaries of the judges, &c. and alfo all penfions
"granted by the crown (with fome exceptions), fhould be applied to-
But fuch effec-
"wards carrying on a vigorous war againſt France."
tual meaſures were taken, by thoſe who would have fuffered by ſuch a
reſolution, that a bill was not even fuffered to be brought in"..
The ſcarcity of fpecie, and the want of credit and circulation, which
prevailed at that time, were circumftances which materially contributed:
to the pecuniary diftreffes of the nation, and to the decreaſe of its re-
venues. The money that was recoined during the war (including
8 Commons Journals.
9 Letter to a new member of the Houfe of Commons, touching the embezzlements
of the kingdom's treaſure from the Revolution, p. 17. printed anno 1710.
10 Hiftory of our National Debts, p. 14.
12 Hiftory of our National Debts, p. 20.
»
Davenant, vol. i. p. 53-
312,000%
1692.
I
54
HISTORY OF THE PUBLIC REVENUE
312,000l. worth of plate) amounted only to 8,136,000l." The whole
fpecie in the country, could not be eſtimated at more than 16,000,000/.",
from five to fix millions of which were probably hoarded. Every fpecies
of credit was at the loweſt ebb; bank notes were at 20 per cent. and
tallies at 40, 50, nay 60 per cent. diſcount". In fuch a fituation, with
only ten millions of circulating ſpecie, and no ſubſtitute in its aid, how
was it poffible for this country to fpend five or fix millions per annum
in a foreign war, and to raiſe its fupplies within the year! Sir James
Stuart juſtly remarks, that attempting, in theſe circumftances, to levy a
great revenue in England, was like putting a dumb man to the torture,
in order to extort a confeffion".
Whilft the public revenue was thus perpetually decreaſing, the nation
was obliged to defray heavier charges than it ever had been accuf-
tomed to before.
To
The expences of the Revolution itſelf were not inconfiderable.
the Dutch alone were voted 600,000l. for the armament they had fitted
out, in order to bring about that event. The reduction of Ireland was
attended with great charges: nor were the partizans of the dethroned
Monarch driven from Scotland, without fome bloodfhed and expence.
The money that was thus required to place William upon the throne
of the three kingdoms, would have fully defrayed the charges of at leaſt
one, if not of two campaigns. Had James II. therefore been a mo-
narch who could have been trufted, and who would have cordially af-
fifted in the accomplishment of fo great a work, the balance of Europe
might have been reftored, without greater pecuniary exertions than
England could eaſily have afforded: but our ftrength was unfortunately
at firft employed, rather in fettling our own government, than in hum-
bling the power of France.
Another great and unforeſeen expence to which the nation was put
at that time, was in order to remedy the diſorder into which the coin
had fallen, and which was likely to be attended with the moſt fatal
13 Davenant, vol. i. p. 438.
14 Davenant, p. 441. fays, that the fpecie before the war amounted to about 18,500,000l.
but a good deal of it was exported in the courſe of the war. He alſo ſays, that upwards
of 3,400,000) of broad hammered money was hoarded in England, befides other kinds.
See p. 264. 439.
15 Life of Halifax, p. 36.
16 Political Economy, vol. ii. p 365.
confe-
OF THE BRITISH EMPIRE.
55
confequences to the commerce, induſtry, and revenue of the country.
This great operation was obliged to be undertaken, in the midſt of an
expenſive and dangerous war, and was fucceſsfully carried through by
Montagu, then chancellor of the exchequer, afterwards created Lord
Halifax; but the diforder had proceeded to fuch a height, that the
deficiency on the recoinage coft the nation the enormous fum of
2,415,140%. 16s. 10d.
Nor was reducing the power of France an eafy atchievement. Sir James
Stuart is of opinion, that it was an enterpriſe far beyond the ftrength
of England to carry through at that time, though aflifted by the great-
eft part of Europe". That it was not beyond the power of England,
appeared fufficiently evident during the reign of Queen Anne, though
Spain, inſtead of being a friend, was under the dominion of the enemy. It
muſt be acknowledged, however, that the enterpriſe, when it was under-
taken by William, was attended with the greateſt difficulties. France was
then at the very zenith of its power. Lewis had the good fortune to
be furrounded with the ableft generals and ftatefmen of the age: his
revenues were in good order, his troops were well paid, and his peo-
ple were loyal and affectionate, confoling themſelves for their domeftic
miſeries, by the greatnefs of their fovereign, and the glory he had
attained 18. A ſingle power, poffeffed of fuch reſources, it is not a lit-
tle difficult for any confederacy to fubdue.
But England was obliged to make greater exertions than otherwiſe
would have been neceffary, in confequence of the languor and mifcon-
duct of thofe States with whom fhe had confederated. The Dutch, on
the whole, were not deficient; but little affiftance was received from
Spain, notwithſtanding the great riches that country was poffefled of;
and the Emperor, who was the perfon moft intereſted in the war, was
the leaft ferviceable of the whole confederacy, and employed his arms,
more in oppreffing his own fubjects in Hungary, than in maintaining
the rights of his family, or defending the liberties of Europe".
Whoever confiders, therefore, the ftate of our revenue, the magui-
tude of our expences, and the various circumftances, both foreign and
17 Political Economy, vol. ii. p. 263.
Davenant, vol. i. p. 14.
IS
18 Davenant, vol. i. p. 8.
1
domeftic,
56
HISTORY OF THE PUBLIC REVENUE
#
domeftic, above enumerated, must clearly perceive, that contracting a
public debt, was a matter not of choice, but of neceffity. Yet Boling-
broke, Swift, and after them other writers of the fame party, have
contended that it was done with a view of fecuring the additional
fupport of wealthy individuals, to the government that was eſta-
blished". Nay, we are told, that the fupplies might have been raiſed
within the year, that a ſcheme to that effect was prepared and offered,
and that it was allowed to be practicable; but that it was rejected, be-
cauſe the new government could not be fo effectually fecured, in any
other way, as by making the private fortunes of great numbers of peo-
ple depend upon the preſervation of it. "Thus, (fays Bolingbroke) the
"method of funding, and the trade of ſtock-jobbing began; and great
"companies were created, the pretended fervants, though in many refpects
"the real maſters, of every adminiſtration." But a policy of that nature,
the confequences of which it was impoffible to foreſee, none but def-
perate minifters would have attempted; and when borrowing money
was firft tried, it never was imagined that the war would have lafted fo
long, or would have proved fo expenſive.
Others have infinuated, that the nation was involved in debts and
difficulties, in order that our trade might be loaded with heavy taxes,
and the Dutch the better enabled to rival us in commerce and manu-
factures". But though the King was a Dutchman, and though his
principal friends and favourites were of that nation, yet he feems ever
to have maintained fuch a degree of impartiality between the two coun-
tries, as to exempt him from fuch fufpicions: and with regard to his
zeal for carrying on the war by land (which is commonly adduced in
proof of his predilection for Holland), that was evidently owing to his
greater attachment to military, than to naval operations.
Nay, fome have fuppofed, that our glorious deliverer purpofely ran
the nation into debt, not thinking it an evil, or, perhaps believing,
with fome Dutch politicians, that it was for the intereft of the public
to be incumbered: " and this might be true (fays Swift) in a com-
2 See Bolingbroke's Works, edit. 1773, vol iv. p 129. Swift's Hiftory of the four
last years
years of the Queen, p. 159. Hiftory of our National Debts, p 17.
21
Hiftory of our National Debts, p. 17. 27. 35, 35.
2
66
monwealth,
મ
OF THE BRITISH EMPIRE.
57
1
"
cr
mon-wealth, fo crazily conftituted as Holland, where the governors
"cannot have too many pledges of their fubjects fidelity, and where a
great majority muft inevitably be undone by any revolution, however
"brought about; but, to preſcribe the fame rules to a monarchy, whofe
"wealth ariſeth from the rents and improvement of lands, as well as
"trade and manufactures, is the mark of a cramped and confined un-
"derſtanding". As William's underſtanding was confeffedly intitled
to a different defcription, it is the leſs neceffary to trouble the reader
with any anſwer to ſo groundleſs an allegation.
Let us next fee what were the modes of borrowing money adopted in
the reign of William III.
At first, the practice, fo ufual in the time of Charles II. was adhered
to, and the produce of the grants voted by parliament was anticipated,
without eſtabliſhing a fund, for the purpofe of paying a certain annual
intereſt to the holders of the mortgage
23
Modes of
borrowing.
annuities.
But refource was foon had to temporary annuities: for, anno 1692, Temporary
an attempt was made to borrow a million upon annuities for 99 years,
for which 10 per cent. was to be given, until the 24th of June 1700;
and 7 per cent. afterwards, with the benefit of ſurvivorſhip, for the lives
of the nominees of thoſe who contributed24. So low, however, was the
credit of government at that time, that, even on thefe terms, only
881,4937. 125. 2 d. could be procured". Anno 1693, a million was
raiſed upon ſhort annuities; and every fubfcriber received 14 per cent.
for fixteen years, with the additional benefits of a lottery". So advan-
tageous an offer, it is hardly neceffary to obferve, was eagerly grafp-
ed at:
ties.
Some money was alfo borrowed, during this reign, upon annuities for Life annui-
lives; and 14 per cent. was granted for one life, 12 per cent. for two
lives, and 10 per cent. for three". Such terms were to the higheſt de-
gree extravagant; particularly, as no attention was paid to difference of
ages. The original amount of theſe annuities, anno 1694, was about
22,800%; and yet, in 1762 (fixty-eight years afterwards), they were
22 Hift. of the four laſt years of the Queen, p. 159.
23 Hift. of our National Debts, p. 10.
24
4
Will, and Mary, cap. 3.
26
5
Will, and Mary, cap. 7.
25 See 4 and 5 Will. and Mary.
27 Hift. of our National Debts, p. 28.
[H]
reduced,
58
HISTORY OF THE PUBLIC REVENUE
Contingent
annuities.
Perpetual an-
nuities.
Lotteries.
Exchequer
Bills.
reduced, by deaths, no lower than 9,2157.; and in 1782 only to 8,0271.
Dr. Price obferves, that borrowing at the rate of 12 per cent. for two
lives, and 10 per cent. for three, is giving 10 per cent. for money in the
one cafe, and 9 per cent. in the other 28.
In this reign, the Bank of England, and the Eaft India Company
were eſtabliſhed: they paid to government the fum of 3,200,000l.,
for which they received an intereſt of 8 per cent.; and as the taxes im-
poſed to defray that intereſt, were to remain until the principal, and all
the arrears of their reſpective annuities, were diſcharged, and confe-
quently were unlimited in their duration, this naturally paved the way for
thoſe perpetual annuities which afterwards took place.
The fuccefs with which the Bank of England was attended, had en-
couraged fome individuals to form the project of a land bank, with a
view, not only of raiſing a confiderable fum for the uſes of government,
but alſo of lending money on landed ſecurities at low intereft; a part of
the ſcheme being to give 500,000l. on mortgage at 37. 10s. per cent. to
be paid quarterly, or 4 per cent. payable half yearly; but the project did
not fucceed. The temptation, however, of mortgages at ſo eaſy a rate,
induced the landed gentlemen to agree to the eſtabliſhment of perpetual
taxes, to defray the intereft of the money intended to be raiſed". The
ftatutes in the year 1695-6, furniſh the firſt example in our hiſtory of
this climax of financial invention.
Lotteries began in this monarch's reign; and as all our evils were
then attributed to Dutch counfels, the blame of Lotteries (thoſe banes
of induſtry, frugality, and virtue, as they were called) was afcribed
to an imitation of the example of Holland 30, and a wifh in the natives
of that country, to ruin our morals, as well as cramp our trade.
Exchequer bills furniſhed another mode of raiſing money, firſt adopted
in the year 1697, which Montagu, when chancellor of the exchequer,
28 Price, on Civil Liberty and the Debts of the Kingdom, edit.. 1778, p. 134. Note
But it is faid that many of theſe annuities are wrongfully paid, owing to the frauds of
the annuitants, and the carcleffnefs of our public officers.
15.
22 7 and 8 Will. III. cap. 31.
3 Hift. of our National Debts, p. 27.
had
OF THE BRITISH EMPIRE.
59
had the merit of inventing. Some fubftitute for money was particu-
larly neceſſary at that time, on account of its ſcarcity during the recoin-
age. To render theſe bills more convenient, fome were iffued for only
five, others at ten pounds"; a practice which, if now revived, might be
attended with uſeful confequences.
It now only remains, to give an account of fome deftructive financial
operations, adopted at this time.
It has already been obferved, that feveral life annuities were granted
at 14 per cent. In order to raiſe a ſmall additional fum upon the ſame
funds thus mortgaged, acts were paffed, by which theſe annuitants, or
any other perfons for them, were offered a reverfionary intereſt, after
the failure of the lives, for ninety-fix years, from January 1695, on
paying four and a half years purchaſe (or 631.), for every annuity of
147.3. Afterwards, anno 1698, four years purchaſe (or 567), was
only demanded for the converfion". The fame fyftem was afterwards
adopted, in the reign of Queen Anne. Some of thefe long annuities
were fortunately incorporated with the ftock of the South Sea Com-
pany; but ſome ſtill remain of theſe annuities to the amount of
131,203l. 7s. 8 d. per annum, for which the fum of 1,836,275l. 175. 103d.
had been originally contributed; and for the uſe of which, the public
muſt pay above thirteen millions before they are all extin&³.
tereſt.
The high rate of intereft at which money was borrowed during Rate of in-
William's reign, in confequence of the ſcarcity of fpecie, and the low
ſtate of public credit, was a fatal circumftance at the commencernent of
the funding fyftem in this country. At first, attempts were made to
raiſe money at only 6 per cent. intereft"; but it was found neccflary, the
very fame feffion, to offer 7 per cent.": and, from the year 1690, during
the remainder of the war, 8 per cent. was uniformly paid. Anno 1699,
intereſt was reduced fo low as 5 per cent. and continued at that rate
until the value of money had again increaſed, owing to a new war
becoming inevitable.
31 Life of Halifax, p. 43.
33
9
35
and ro Will. III. cap. 24.
I Will. and Mary, feff. i. cap. 3.
32 6 and 7 Will.III. cap. 5. 7 Will. III. cap. 2.
Will.III.cap.5.
3+ Price on Civil Liberty, p. 134.
36 Ibid. cap. 13.
[H] 2
Davenant
1
60
HISTORY OF THE PUBLIC REVENUE
Premiums.
Davenant affirms, that the debt of the nation was fwelled more by
high premiums than even by the exorbitant intereſt that was paid";
and that its credit was at fo low an ebb, that five millions, given by
parliament, produced for the fervice of the war, and to the ufes
of the public, but little more than two millions and a half; and it is
certain that the public paid dearly for eſtabliſhing its credit on fuch a
footing, as to enable it to procure freſh loans. By an act paffed anno
1697, when tallies were at a very great diſcount, a number of defi-
ciencies, amounting to the fum of 5,160,4597. 14s. 94d., were accu-
mulated into what was called the firſt general fund or mortgage; and a
variety of duties were confolidated together, in order to pay them off.
If this ftep had not been taken, public credit muſt have been deftroyed;
and yet, as tallies were at fo high a diſcount, the meaſure was attended
with very great diſadvantage. It is ſtrongly afferted, that this evil was
increaſed by the arts of thoſe who were in power; that it was a uſual
practice to put off fettling a fund for any particular debt due by the
public, until the ſhares of thoſe who were intereſted as creditors, fold
at a very great lofs. Thoſe who were in the ſecret then bought them
up, and the deficiency was immediately fupplied". If thofe fraudu-
lent practices could have been prevented by raiſing the ſupplies within
the year, it is furely much to be regretted, that fuch a plan was not
carried through, notwithſtanding the many difficulties attending fuch
an attempt, and the various obftacles, which muſt have been fur-
mounted"
37 Vol. i. p. 156.
It
38 Vol. i. p. 264. But this feems to be contradicted in p. 284, where he fays, that four
millions, within the year, would have gone as far as five millions upon diftant funds; more
than one-fifth of what was granted upon credit, being confumed in difcount, high intereft,
and exorbitant premiums.
3) By 8 and 9 Will. III. cap. 20.
4° Hift. of our National Debts, p. 35. Hift. of the four laft years of Queen Anne,
P. 162.
** Davenant (vol. i. p. 157.) fays, that it would be greatly for the public benefit, by fe-
vere penalties, to prohibit gratuities upon any loan, more than is allowed by parliament.
Such a plan, he obferves, might bring difficulties at firſt, but in the end would augment pub-
H
lic
OF THE BRITISH EMPIRE.
61
K
It is not propoſed to ſtate minutely the loans of each year, or the
money raiſed by mortgaging each different branch of the revenue:
fuch circumſtances, not being interefting enough to thefe times,
to render a particular difcuffion neceffary, it will be fufficient (it is
hoped) to give a general view of the money borrowed, and repaid
during this monarch's reign, and a ſtate of the national debt at his
deceaſe. Thoſe who wiſh to obtain more minute and accurate inform-
ation, may confult the ftatute book, or the authors who have pro-
feffedly written on the fubject 42.
lic credit. Some regulation of that kind has become more neceffary than ever, in confe-
quence of the great difcount upon our unfunded debts. The exorbitant profits attending
the purchafing of which, are equally injurious to public and to private credit.
42 See James Poftlethwayt's Hiftory of the Public Revenue, 1 vol. fol. printed annø
1759. Hiſtory of our National Debts and Taxes, from the year 1688 to the year 1751,
in four parts, the laft printed anno 1753; and Cunningham's Hiftory of Taxes, third
edition, anno 1778.
}
ABSTRACT
1
62
HISTORY OF THE PUBLIC REVENUE
ABSTRACT of the Money borrowed and repaid,
between the 5th November 1688, and Ladyday 1702.
Borrowed upon
various funds.
From Nov. 5, 1688, to Mich'. 1691 £.7,882,079
Borrowed upon
Produce more
certain funds than borrowed,
but applied to
more than
repaid.
3,126,672
other fervices.
Produce of
thoſe funds.
4,755,407
From Mich'. 1691, to ditto 1692
3,058,291
2,806,941
251,350
to ditto 1693
4,300,427
3,378,228 922,199
to ditto 1694
3,188,801
5,573,169
384,367
to ditto 1695
to ditto 1696
to ditto 1697
to ditto 1698
4,521,826
4,931,104
6,647,453
2,191,171
3,844,492 1,677,334
1,678,177
3,292,926
2,569,256
4,078,196
,171
2,992,155
800,984
to ditto 1699
1,878,400
2,526,009
647,608
to ditto 1700
1,028,178
2,3121,10
1,192,952
to ditto 1701
2,064,937
2,250,506
185,569
1,408,128
1,538,548
130,420
From Mich'. 1701, to Ladyday 1702
Total borrowed £. 44,100,795 34,034,518 13,348,677 3,341,900
From this account it might be inferred, that the funded debt of Eng-
land, at the death of William III. did not much exceed ten millions;
but, unfortunately, when any fund produced more than was originally
impofed upon it, it was immediately re-mortgaged, or the income
arifing from it applied to the current ſervices of the year.
It will next be proper to give a general view of the real ftate of our
national incumbrances, at this monarch's death.
GENERAL
OF THE BRITISH EMPIRE.
63
+
4
GENERAL VIEW of the NATIONAL DEBT on 31ft December, 1701.
I. PERPETUAL FUNDED DEBTS, for the Intereſt of which alone Proviſion was made.
1. To the Bank of England, being their original ſtock, bearing an intereſt of
8 per cent.
2. To the East India Company, being their original ſtock of 8 per cent.
3. To the bankers debt, contracted in the time of Charles II.
Principal.
£. 1,200,000
2,000,000 O O
664,263 0 Ο
II. TEMPORARY ANNUITIES and DEBTS, which would have been ex-
tinguiſhed by the Operation of the Funds on which they were placed.
4. Annuities for 96 years, from 25th
January, 1695
5. Ditto, for fingle lives, with fur-
vivorſhip
6. Ditto, for two and three lives
7.
Short annuities for 16 years, from
29th Sept. 1694, confequently
ending anno 1710
8. The firſt general fund or mortgage
which it was purpofed would be
clear on 1ft Auguſt 1706, pro-
ducing above 800,000l. per annum
9.
The fecond general fund, ending
Ift Auguſt 1710
10. To ſundry loans and deficiencies
£. 1,584,265 60
Principal.
Interest.
139,964 13 6
108,100 0 O
192,153 6 3
7,567 。。
22,633 II 4
1,000,000 OO
140,000 0 0
3,864,263. 09
Intereſt.
96,000 0
· 160,000 0
39,855 15 7
295,855 15 7
3,500,000 0 O
280,000 o o
2,314,041 II
1,162,486 18 8
184,635 19 3
78,321 14 74
9,861,047 2 2
853,122 18 83
III. UNFUNDED DEBTS.
11. The army and tranfport debts
12. The ordnance debt
The navy debt
13.
14. Subfidies due to the elector of
Hanover, and Duke of Zell
Intereft on the unfunded debt, at 6 per cent,
1,123,258 7 9
94,985 0 23
1,441,773 II 5:
9,375 0 0
161,763 10 5
43 Total
2,669,391 19 5
£. 16,394,702 I 7
161,963 10 5
1,310,942 4 8
43 Davenant (vol. i. p. 237,) fuppofes, that the national debt, fanno 1698, amounted to about 17,552.ocol. Poftlethwayte, in his ſtatement
of the debt on 31st Dec, 1701, forgets the intereft on the bankers debt, and calculates none on the unfunded incumbrances due at that time.
1
t
64
HISTORY OF THE PUBLIC REVENUE
Caufes of the
increaſe of
the public
debts, during
the reign of
QUEEN ANNE.
The fituation of this country, at the acceffion of Queen Anne, even
in the article of national incumbrances, was not greatly to be complained
of. The perpetual debts which the public at that time owed, or thoſe
for which the intereſt only was provided, amounted but to 3,864,2631.
The temporary annuities, and other funded debts, whofe nominal
capital was 9,861,0471. (with the exception of the Exchequer annuities),
were likely foon to fall of themſelves, or to be extinguished by the
produce of the funds appropriated for their redemption; and as for
the unfunded debts (amounting to 2,669,3927.) they would probably
foon have been paid off by oeconomy and good management; and
England might have ſeen itſelf again free from fuch diſagreeable bur-
dens, if another war with France had not unfortunately broken out,
before fufficient time had elapfed to heal the wounds which former
hoftilities had inflicted.
Two circumſtances rendered fuch a war, if not neceffary, at leaſt in
a great meaſure juſtifiable.
By the treaty of Ryfwick, William III. was acknowledged king of
Queen Anne. England; and James's intereft having been abandoned by his ally, he
had given up all hopes of being reſtored to the throne, and had devoted
his time to the ftricteſt aufterities of religious enthuſiaſm. Whilft
occupied in his ufual acts of devotion, he was fuddenly feized with a
lethargy; and, after languiſhing for fome days, expired on the 6th of
September, 1701.. Lewis was thrown off his guard by the fuddennefs
of this event; and pity for a dethroned monarch, in fo diftreffed and
miferable a fituation, led him to promife, that he ſhould not only prove
the protector of his family, but fhould alfo proclaim his fon the only
legal fovereign of Great Britain and Ireland, after his deceafe **. This
was an evident infraction of the treaty of Ryfwick. William there-
fore had recalled his ambaffador at the court of France, and was mak-
ing every precaution to carry on a war, when his death prevented it.
His fucceffor, however, upon her acceffion, was equally bound to
44
Macpherſon's Hiftory of Great Britain, vol. ii. p. 214.
4.4
maintain
OF THE BRITISH EMPIRE.
65
maintain her own title to the crown, by profecuting the fame mea-
fures.
66
But this matter might eafily have been accommodated, and the
crown of England, to make ufe of the words contained in an Addreſs
from the Commons, "would have received reparation for the great
indignity offered by the French king to his majeſty and the nation,
"in owning and acknowledging the pretended Prince of Wales king
"of England, Scotland, and Ireland "," without much bloodshed or
expence, if it had not been thought neceffary, for the intereſt of theſe
kingdoms, and the fecurity of Europe in general, to engage in a
war, in confequence of another event which took place about the fame
time.
When Lewis XIV. eſpouſed the Infanta, he had renounced for him-
felf and his pofterity, in the fulleft and ampleft manner, all right and
pretenfions of fucceeding to the throne of Spain; and, after the peace
of Ryfwick, he had entered into different treaties of partition, by
which the Spaniſh monarchy was to be shared among the different
claimants, and had agreed to accept of certain territories belonging to
that crown, in lieu of all his rights. The king of Spain (Charles II.)
enraged at the propofed difmemberment, and refenting that foreign
powers should interfere in the domeftic concerns of his kingdom
during his own life, had nominated Philip duke of Anjou, fe-
cond fon of the dauphin of France, his heir; and when Charles died, 1 Nov. 1700.
Lewis without much heſitation abandoned the treaties of partition, and
accepted of a will, which put his grandfon in the peaceable poffeffion
of the whole dominions of Spain, both in Europe and America.
Such an acceffion of power and ftrength to the Houfe of Bourbon,
and ſo open an infraction of ſuch folemn engagements, filled the
greater part of Europe either with indignation or difmay; and an alli-
ance was foon after formed, between the Emperor, Great Britain,
and Holland, the object of which was to fecure a barrier to the Dutch ;
to obtain fatisfaction to the Emperor for his pretenfions to the Spanish
fucceffion; and fufficient fecurity to Great Britain and Holland, for
their dominions, and for the commerce and navigation of their fub-
45 Comm. Journ, vol. xiii. p. 649. 3d Jan. 1701.
[I]
jects.
66
REVENUE
HISTORY OF THE PUBLIC
16th May
1703.
An. 1711.
46
jects". The treaty was concluded prior to William's deceaſe; but
his fucceffor perfevered in the plans he had entered into, as effential
for the fafety and profperity of his kingdoms.
47
England, without doubt, was deeply intereſted in the original objects
of the grand alliance; and they might have been attained at a very
early period of the war, before much blood or treafure was expended.
But theſe objects were confidered as by far too narrow and confined, after
the arms of the allies had triumphed, and the power of France was cruſhed
by the victories of Marlborough and of Eugene. Nothing then was
heard of but the neceffity of dethroning Philip, who was at that time
in full and quiet poffeffion of the whole Spaniſh monarchy, and of
fetting up his rival in his room *7. A treaty for this purpoſe was
entered into with Portugal: a formidable army was fent to Spain, the
operations of which were at firſt ſucceſsful; and addreffes came from both
houfes of parliament, ſtating, "that no peace could be fafe or honour-
"able to her majeſty or her allies, if Spain, and the Spaniſh Weſt
"Indies, were fuffered to continue in the power of the houſe of Bour-
"bon." But when the forces of the allies were defeated in Spain, and
Charles, whom they had ſet up, fucceeded to the Imperial crown upon
his brother's death, fuch a plan became no longer adviſable; particu-
larly as ſeveral of the allies declared that they would never confent that
the fame perſon ſhould be king of Spain, and emperor of Germany.
'The cauſes which had formerly operated under the government of Wil-
liam to fwell the public debts, contributed alfo, in the reign of Anne,
to their increaſe. The fame fraudulent practices prevailed at home;
and a greater degree of lukewarmneſs to the cauſe they were engaged
in, and indeed neglect of the ftipulations they had entered into, took
place amongſt our allies on the Continent.
The profuſe manner in which public money is wafted, when great
fums are borrowed upon the national faith, is perhaps the moſt unfor-
tunate circumſtance reſulting from the funding fyftem. Ever fince the
Revolution, it has in a greater or leſs degree prevailed. Some enquiry
was made during this reign into theſe fraudulent practices. The Com-
45 See the fecond grand alliance, Collection of Treatifes, anno 1772, P. 42.
47 Bolingbroke, vol. iv. p. 127.
t
mons
OF THE BRITISH EMPIRE.
67
mons thought it neceffary to expel one of their members; reſolutions
were entered into, that might deter fuch practice for the future 48; and
it was repreſented to her majefty, by the Commons, that there remained,
at Chriſtmas 1710, the fum of 35,302,1071. of public money unaccounted
for. Though fuch charges were probably exaggerated, from the rage
and malice of party, yet it cannot be doubted that there was too much
truth in fome of their allegations.
We are told, that the earl of Rochefter, the queen's maternal uncle,
had propofed in council, that England ſhould only act as an auxiliary, and
ſhould leave the greater part of the burden upon the ſhoulders of thoſe
who were moſt intereſted in its fuccefs 49. But the intrigues and arts
of the confederates, and the ambition of the duke of Marlborough,
induced us to take, at firſt, an active, and, afterwards, the principal
part in carrying on the war: and whilft the Dutch were employing
what forces they kept in pay, in fecuring a barrier for themſelves, and
the emperor was endeavouring to conquer the Spanish territories in
Italy, the forces of England were fent to Flanders, to Germany, or to
Spain, as ſuited beſt the views of the allies ". The Dutch alſo, no
longer animated by their gallant Stadtholder, loft many opportunities,
by their timidity, of bringing the war to a ſucceſsful conclufion; and
threw away the favourable moment for making an advantageous peace,
by indulging, in too great a degree, the natural infolence of conqueſt
49 Macpherſon's Hift. vol. ii. p. 234.
SI
48 Hift. of our Nat. Debts, p. 129.
so We ſo entirely neglected the advantages we might have reaped in America, that the
French did us more mifchief in that part of the world than we did them. Hift. of our
National Debts, part ii. p. 5•
5 It is faid that the duke of Marlborough, after the victory at Ramilies, and the re-
duction of Oftend and Newport, had formed a plan, anno 1706, for paffing by Dunkirk,
and for laying fiege to Calais. (of which he expected to be maſter in a week's time), and
then of marching coaftways by Dieppe and Rouen to Paris, in which attempt he might
eafily have been fupported, and his army recruited from England. But the timidity of the
Dutch (who were afraid that the French army, in the mean time, would have penetrated
into the ircountry), prevented his attempting a plan, which would have brought the war to
a ſpeedy conclufion; and as their infolence hindered the advantageous peace propoſed by
France at Gertruydenburg from taking place, we had every reaſon to complain of their
conduct, both as to making peace, and carrying on the war.- See Hift. of our Nat. Debts,
part ii. p. 67. 131.
[I] 2
They
68
HISTORY OF THE PUBLIC REVENUE
Mode of
borrowing.
Long annu-
ities.
Life annui-
ties.
They difplayed alfo too much of the ſpirit of a mercantile people. They
wifhed to keep up their connexions with France, notwithſtanding their
war with that country; and the commons were obliged to addrefs
the queen, that her majefty would infift with the States-general, that
the ftop put to all correfpondence, trade and commerce with France or
Spain, fhould be continued. Addreffes alfo were fent to her majeſty,
that the emperor fhould no longer oppreſs his proteſtant ſubjects in
Hungary; and that the allies fhould be defired to furnish their complete
quotas, both by ſea and land, according to their reſpective treaties ¹².
52
Such are the cauſes which are in general affigned for the increaſe of
our public debts, during the reign of Anne. Let us next confider the
principles adopted by her minifters, in regard to borrowing money, and
the amount of the national debt at her death.
The old practice of raifing money, by anticipating the produce of
the taxes on land and malt, was perfevered in; and indeed has become
a permanent part in the ſyſtem of our finances.
53
The deſtructive mode of felling long annuities was alfo revived, and
only 210% were demanded for an annuity of 141. per annum, for 99
years, being at the rate of fifteen years purchaſe ". What renders
fuch a mode of borrowing money peculiarly difadvantageous to the
public, is, that fuch annuities are always irredeemable; nor can the
creditor be compelled to diſpoſe of them, but at his own price, however
able the nation may be to pay them off, or however anxious to get
free of fuch incumbrances.
54
Annuities for lives were alfo granted during this reign. The terms
were more favourable to the public than formerly; one life felling at
nine years purchaſe; two lives at eleven years, and three lives at twelve
years purchaſe : yet, on the whole, it furniſhes another example of the
impoffibility of making any advantageous bargain of that kind, particu-
larly in time of war; and the difficulty attending the redemption of
fuch fecurities, with the confent of the creditor, renders them peculiarly
injurious.
52 Comm. Journ. vol. xiv.
$3 1 Anne, Seff. 2. cap. 3.
54 Hift, of our Nat. Debts,
p. 240. Hift. of our Nat. Debts, part ii. p. 45. 59.
Hift. of our Nat, Debts, part ii. p. 38.
p. 47.
During
OF THE BRITISH EMPIRE.
69
56
South Sea
Company.
During the greater part of the war, the fecurity granted to the cre-
ditor for the money that was borrowed, was continuing taxes which
had been impoſed in the reign of William, and borrowing upon funds
thus previouſly eſtabliſhed, and which otherwife would have expired.
The people were thus deceived into an opinion, that with hardly any
additional burden upon themfelves, they were holding the balance of
Europe, and acquiring immortal glory and reputation ". But this
procrastinating ſyſtem proved in the end fatal: a variety of unprovided
debts, tallies, and deficiencies came into the market ; were fold at
above 40 per cent. difcount, and had almoſt ruined the credit of the
country, from the immenſity of the load. Thefe debts were at laft Anno 1710.
accumulated into one fund, and with the addition 500,000 l. raiſed for the
current ſervice of that year, amounted to 9,471,325 . the intereft, of
which, at 6 per cent. came to 568,2797. 10s. per annum".
num". The pro-
prietors of this ſtock, having, in addition to that intereft a monopoly
granted to them of the trade propoſed to be carried on in the South
Seas, thence obtained the name of the South Sea Company.
In this reign alfo, the Bank of England was permitted to increaſe its
capital, and received a prolongation of its charter, in confideration of
400,000l. which it advanced to government without interefts. It fi-
pulated, however, for the repayment of the principal fum, though that
fum was properly a compenſation to the public for the privileges it had
beftowed. This, Dr. Price properly remarks, was a wanton and
unneceffary addition to the capital of our debt ". Nor was this all:
for the fame act contains the moſt improvident bargain, on the part of
the public, and the moſt ufurious one, on the part of the lender, that
can be produced in the hiſtory of our revenue. The funds for dif
charging the intereft of certain exchequer bills, which the Bank had
agreed to circulate, had been previouſly mortgaged for the ſpace of four
or five years;
and inſtead of impofing a new tax to defray the intereſt
in the interim (left new burdens fhould irritate the people), it was
enacted, that both the intereft and the premium for circulating ſuch
55 Swift's Hift. of the four laſt years of the Queen, p. 164.
57 9 Anne, cap. 21.
59 Tracts on Civil Liberty, p. 125.
587 Anne, cap. 5.
só Ibid. p. 170.
Bank of
England,
bills,
70
HISTORY OF THE PUBLIC REVENUE
Eaft India
Company.
Perpetu 1
Annuities.
Rate of In-
terest.
Premiums.
bills, ſhould be paid quarterly, in freſh exchequer bills, until the fund
was cleared". When fuch meaſures were countenanced by the legiſla-
ture, when compound intereft was thus paid quarterly, is it to be
wondered at, that our public debts ſhould have fo rapidly accumulated?
Nor was the bargain made with the Eaft-India Company much more
advantageous. They advanced, it is true, 1,200,000l. to the public,
for which they were to receive no intereſt ". But the nation became
bound to repay the principal at the expiration of their charter; and
thus, as Dr. Price well obferves, another unneceffary addition was
made to the capital of its debt.
The nature of the funding fyftem began, during this reign, to be
better underſtood 62. The advantages alfo of public credit, and the
neceflity of giving undoubted fecurity to the creditor, were more ge-
nerally acknowledged. Perpetual annuities became no longer an object
of terror; the new taxes impofed for the fecurity of the Bank, and
the whole fund of the South-Sea Company being granted for ever.
The public debts, however, either from the timidity of the miniſters
(who were afraid of irritating the people by freſh burdens, and confe-
quently did not provide fufficient funds in proper time), or perhaps
from the want of fpecie and reſources in the country, fwelled to a
height, which, in the apprehenfions of many, prognofticated a fpeedy
bankruptcy, or national ruin.
At firſt, money was borrowed, during this reign, at 5 per cent. It
afterwards rofe to 6, but, in fact, was much higher: for the South-Sea
company received that intereft for tallies, which were incorporated into
its ftock, at par, though they had fold in the market, a little time before,
at 40 per cent. diſcount.
During the latter part of this reign money was principally borrowed
by the mode of lotteries; and confequently the profit of the ſubſcribers
greatly depended upon the fpirit of gambling at the time. In general,
however, they were framed on very difadvantageous principles to the
Anno 171. public; and the laft, in particular, though it took place in the midſt of
Go Polit. Econ. vol. ii. p. 383. Hift. of our Nat. Debts, p. ii. p. 104.
6' 6 Anne, cap. 17.
62 Harley, afterwards created Lord Oxford, from two papers he wrote upon Loans
and Public Credit, feems to have underſtood the fubject. They may be feen in Somers's
Collect. of Tracts, vol. ii.
4
the
OF THE BRITISH
71
EMPIRE.
the moſt profound tranquillity, has been often juftly reprobated. For,
of 1,876,400 l. raiſed at that time, only 1,400,000l. was referved for
the public fervice; the remaining 476,000l. being diftributed among
the proprietors of the fortunate tickets. This was a premium of about
34 per cent. upon the fum actually received "+.
Such modes of raifing
64
money (as Hutchinſon well obſerves), though ruinous to the nation,
was highly beneficial to private individuals, who, in a fhort time, in-
creaſed ſo much in wealth, as to out-top all the ancient gentry, and to
vie with the firſt nobility in the kingdom
65
Let us next fee the amount of our national incumbrances at this
Queen's death.
GENERAL VIEW of the NATIONAL DEBT, on 31ft Dec. 1714.
1. PERPETUAL FUNDS.
1. To the capital of the Bank of England, at
16 per cent.
2. To D', for cancelling exchequer bills at D°
3. To fundry exchequer bills circulated by
the bank
Total to the bank
4. To the Eaft India Company at 5 per cent.
5. To the South Sea Company at 6 per cent.
6. To the bankers debt, contracted in the
reign of Charles II.
Intereſt.
96,000 2 0
106,512 13 5
Principal.
£1,600,000 0 0
1,775,027 17 10
4,676,812 10 0
335,557 8 5
8,051,840 7 10
538,070 Ι ΙΟ
3,200,000 ö O
160,000 0 0
9,177,967 15 4
550,678 I 3
39,855 15 7
1,288,603 18 8
664,263 0 0
£21,094,071 3 2
2. TEMPORARY ANNUITIES.
7. By various lottery funds, granted for thirty-
two years
8. By various other temporary annuities
13,223,910 0 0
I 2,793, 32 13 4
£47,111,113 16 6
3. UNFUNDED DEBTS.
9. To the navy, and victualling debt, with
intereft at 4 per cent.
10 To army debentures by 3 Geo. I. cap. 7.
charged upon the general fund
II. To the army debt, including the fums.
paid off by grants, anno 1714 and 1715
12. Deficiencies on the old funds, made good
by parliament, after the Queen's death
13. Suppoſed addition to the capital upon con-
verting the temporary into redeemable
annuities
3 By 12 Anne, feff. 2. cap..9.
990,249 12 0.
871,134 12 10
3,149,988 3 6
31,836 I 7
2
64,182 18 2
795,901 19 8
1,604,572 15
550,000 o Q
2,083,775 0 0
£52,145,363 11 4
2,000,000 O
£54,145,363 II 4
22,000
83,351 0 0
3,351,358 3 3
64 Hift. of our National Debts, part iii. p. 161.
65 Treatifes of the National Debt, p. 61.
This
72
HISTORY OF THE PUBLIC REVENUE
This is as accurate a ſtatement, as it is now poffible to furniſh, of our
public debts at the acceffion of the preſent royal family. It is extracted
from various accounts, drawn up by different authors, who do not
entirely agree with each other as to the amount of the debt"; a cir-
cumſtance, however, the leſs material, as minuteneſs of accuracy, in ſuch
remote tranſactions, is hardly to be expected, and is far from being
effential. In regard to the value and real burden of theſe national in-
cumbrances, Hutchinfon fuppofes, that the funded debts alone, in April
1717, at the market price of the day, were worth 50,106,611. But
the total of the national debt, funded and unfunded, in December 1717,
he calculates at 54,026,865 l.": and indeed, 54,145,363 l. of principal,
bearing an intereft of about 3,351,358 l. feems to have been pretty
nearly the ftate of our debts at the death of Queen Anne: con-
fequently they received, during her reign, an addition of about
37,750,661 7. 8s.
68
In all the computations drawn up of the value of the national debt,
at that time, there is no circumftance with which the reader will be
more ftruck, than with the addition which is always made to the capital,
66 See the account of the public debts at the exchequer, March 14, 1716, Commons
Journals, vol. xviii. p. 498. From the death of the queen till that period, there was
little difference in the amount, excepting, that by 1 George I. cap. 21. 822,032/. 4s. 8 d.
was added to the ſtock of the South Sea Company, which made it up complete ten mil.
lions; and byt he fame act, in conjunction with cap. 19. of the fame feffion, 1,079,000l.
was added to the redeemable annuities, bearing an intereft of 5 per cent.
Poftlethwayt's Hiſtory of the Public Revenue, p. 106. The hiftory of our National
Debts, Part iv. p. 15. The collection of treatifes, relative to National Debts, by Archi-
bald Hutchinſon, Efq; p. 8.; and the abſtract of our public funds, by Mr. Afgill, printed
anno 1715, may alſo be confulted.
67 See Treatifes on the National Debt, p. 12. He afterwards adds 8,582,500 7. to the
above ſum, on account of the increaſed value of the temporary annuities. Poftlethwayt,
in his Hiftory of the Public Revenue, p. 152, computes the national debt, on the 25th
December 1716, at 54,542,545l. 11s. I'd. conſequently, about 54,000,000 l. feems
to be the general idea entertained of the amount of the debt at that time.
63 Poſtlethwayt, in his Hiſtory of our Revenue, computes the difference in regard to
the amount of our debts, between the 31st December 1701, and 31ft December
1712, at only 35,488,293. 75. See p. 107. But it appears from p. 152, that there
was a difference between the 31st December 1712, and 25th December 1716, of
2,670,231l. Is. the greater part of which falls to be added
upon
OF THE BRITISH EMPIRE.
73
upon the fuppofition that the temporary annuities were to be bought
up. Though many of them commenced in the reign of William, and,
conſequently, from fifteen to twenty years had elapfed fince they were
originally granted; yet it was computed, that it would require
4,415,1897. 2 s. 1 d., more than the nation had originally received, to
re-purchaſe them at the prices for which they fold in December 1717":
and fuch of theſe temporary annuities as were fubſcribed into the South
Sea Stock, in confequence of two acts of parliament, paffed anno 1719,
and 17207, coft the nation an additional capital of 3,034,7697. 11s. 11 d.
though 1,836,275l. 17s. 10d. of Long Annuities, befides fome life
annuities, were not included. The holders of fuch of theſe annuities as
were granted anno 1694, Hutchinſon calculates, were not only repaid
both their principal and intereft at 6 per cent. in December 1717, but
alſo had received about 30 per cent. more than they had originally
paid ". The lofs which the public has fuftained by thefe annuities,
fince the period above-mentioned, it is impoffible to think of with any
degree of patience.
GEORGE I
Whoever contemplates the hiftory of this country under the govern-
ment of thoſe princes who were attached to Roman Catholic principles,
or connected with the court of France; the various grievances which the
people at home had fo much reafon to complain of, and the difgraces
which the nation had fuffered abroad, will not heſitate to acknowledge,
that the acceffion of the Houſe of Hanover to the throne, was the moſt
fortunate event that could poffibly have happened to Great Britain at
that time; and nothing was wanting to have crowned our happineſs as
a nation, but fuch an attention in the fervants of the crown to the public
credit and finances of the country, as might have laid the foundation of
our being once more free from a confiderable ſhare of thoſe burdens to
which we were then ſubjected. But fuch were the timidity, the careleff-
•
69 See Hutchinfon's Treatifes, p. 59.
76 See 5 George I. cap. 19. and 6 George I. cap. 4.; and Postlethwayt's 'Hift.
P. 104. 106.
71 Treatifes of the National Debts, p. 60.
[K]
neſs,
1
74
HISTORY OF THE PUBLIC REVENUE
nefs, or the miſconduct of thoſe who were in power, that, though the:
reign of George I. was, on the whole, a period of tranquillity, little.
diſturbed by foreign wars, and thoſe not of a very expenſive nature, yet
fo favourable an opportunity was fuffered to eſcape; and though the in--
tereſt of our debts, in confequence of the decreaſe in the value of mo--
ney, and of the bargain with the South Sea Company, was confiderably
diminished, yet the capital. unfortunately underwent no material re-
duction.
It is propofed briefly to explain, from what caufes this circumſtance
proceeded.
At the cloſe of the reign of Queen Anne, the people of this coun
try were divided into two great parties, one of whom was defirous of
reftoring the Houſe of Stuart, the other, of maintaining the rights of
the proteftant fucceffion. When George I., therefore, came to the
throne, he was naturally led to truft the entire management of pub-
lic affairs in the hands of thoſe who had profeffed themſelves his
friends, and indeed had perfevered in their attachment to his intereſt,
even when fuch principles were not the immediate road to preferment.
It is to be regretted that fuch a monopoly of power was judged necef-
fary: for ſuch a ſyſtem promoted difaffection, and encouraged violence
and party rage in thoſe who confidered themſelves as profcribed.
Whereas, had William's example been followed, and had an adminiſ
tration been compofed out of both parties, it is probable that no man
would have attempted to have difturbed the eſtabliſhed government.
of his country".
But fuch meaſures, though warmly recommended to his majeſty at
his acceffion to the throne, were confidered to be either dangerous or
impracticable; and a formidable party, finding themſelves thus totally
excluded from all hopes of authority and power, joined the warm parti-
zans of the exiled family, and raiſed an infurrection, which, though ſoon
quelled, involved the nation in confiderable expences; injured the cre-
dit of the government, and juſtified their delaying to take the methods
that were neceffary for the re-eſtabliſhment, of our finances. The
delay might alſo arife in part from an abfurd notion propagated
during this reign, that the reduction of the national debt might prove
prejudicial to the family upon the throne, by diminiſhing the number
72. Hift. of our Nat. Debts, part iii. p. 2
of
OF THE BRITISH EMPIRE.
73
鹦
​of thoſe who were attached to it from interefted motives, and whofe
fortune would be materially injured, fhould any revolution take
place".
It was carefully propagated by the partizans of a particular party,
about the middle of the reign of George II., that, fince the acceffion of
the prefent royal family, the interefts of Great Britain had been con-
ſtantly ſacrificed to that of the electorate, and that this country had
been ever fince fteered by the rudder of Hanover. It is certain, that
our connexions with that country neceffarily involved us, more than
otherwife would have been neceffary, in the affairs of the continent:
and the firſt of the Brunſwick family that fat upon the English throne,
having acquired the poffeffion of the dutchies of Bremen and Verden, and
being anxious to fecure an acquifition of fuch great importance to his
hereditary dominions, we were thence led into a war with Sweden, to
which Bremen and Verden properly belonged; but all pretenfions to
which he was compelled to renounce, in confequence of our exer-
tions". Nor was this all; for as theſe dutchies compofed a part of the
German empire, it was neceffary to procure the inveftiture of them;
and this brought on a train of negociations with the emperor, and with
other powers, which, whilft they did no credit to the abilities of our
ſtateſmen, proved highly prejudicial to our finances ": for having gua-
rantied, by the quadruple alliance, the territories of the emperor in the
Italy, we were thereby involved in a war with Spain, begun in July
1718, which, after having been fignalized by a victory obtained on the
coaſt of Sicily over the Spaniſh fleet, was terminated by a treaty of peace,
figned June 13, 1721.
But the principal caufe of our public debts remaining undiminiſhed
during this period, undoubtedly was-mifmanagement in our domeftic
73 See Treatifes on the Nat. Debt, p. 117. Hutchinſon juſtly ridicules the idea, that
a load of fifty millions of debt upon the nation was a fecurity to the proteftant fucceffion.
74 See Faction Detected by the evidence of Facts, 2d edition, p. 121. fuppofed to be
written by the famous Pulteney, Earl of Bath.
75 See the Treaty of Peace, dated Nov. 20, 1719. Collection of Treaties, vol. i. p. 345-
76 Bolingbroke, vol. iv. p. 132. and Faction Detected, p. 26. in which it is remarked,
that, anno 1731, in confequence of theſe negociations, we employed a fquadron of Britiſh
men of war to eſcort fome Spaniſh troops into Italy, at the expence of 200,000 1.
[ K ] 2
affairs.
.3
76
HISTORY OF THE PUBLIC REVENUE
affairs. Little care was taken to raiſe ſuch a revenue as the nation
could afford; and what was raiſed, was expended in a greater peace
eſtabliſhment than Britain had ever been accuſtomed to fupport. Our
unneceffary expences, during this monarch's reign, are calculated to
have amounted to 13,730,000l."; a fum which, had it been properly
applied to the redemption of the debt, would not only have diminiſhed
the principal to that amount, but would alfo have enabled us to have
reduced the intereft of the remainder, and would have raiſed a finking
fund, capable of producing the greateſt effects, in alleviating our burdens.
It is not propoſed to give any account at preſent of the financial ope-
rations, during this reign, as they more properly belong to the enſuing
chapter, where it is intended to explain the different meaſures taken, for
reducing either the capital, or the intereſt of our debt. We fhall,
therefore, give, without farther preliminary obfervations, a general view
of the national incumbrances at this monarch's death.
GENERAL VIEW of the NATIONAL DEBT, on Dec. 31, 1727.
1. PERPETUAL FUNDS.
1. To the capital of the Bank of England, at
6 per cent.
2. To ditto, for cancelling Exchequer bills, re-
duced at Midſum. 1727, to 4 per cent.
3. For cancelling Exchequer bills, reduced at
Midfum. 1727, to 4 per cent.
Principal.
£1,600,000 。 o
Intereft.
96,000 o o
1,775,027 17 10/
715001 2 3
2,000,000 o o
80,000 o a
4. Purchaſed from the South Sea Company, re-
duced to 4 per cent. at Midſum. 1727
4,000,000 0 0
160,000 0 0.
Total to the Bank
£9,375,027 17 102
407,001 2 3
5. To the Eaft India Company
6. To the South Sea Company
7. To various long, fhort, and life annuities
8. To various Exchequer bills, &c. charged
on different furplufes
3,200,000 оо 160,000 O Ο
33,802,203 561,352,088 2 7/11/
£46,377,231 3 5 1,919,089 4 10}
སྐ འ་
3. UNFUNDED Debt.
To fundry Navy and Victualling bills, at
4 per cent.
2. TEMPORARY ANNUITIES.
2,433,942 4 4
1,543,780 15 4
£50,354,954 3 1
182,932 14 11
46,038 6 43
2,148,060 61
1,737,281 2 3
£52,092,235 5 4
69,491 4 10
2,217,551 II O
77 Hift. of our Nat. Debts, part iv. p. 14.
"Thus
OF THE BRITISH EMPIRE.
17.
Thus it appears, that the capital of the national debt in the year 1714,
and in the year 1727, were nearly the fame; particularly if no addition
is made to the principal, in the former period, on the ſuppoſition, that
the temporary annuities ought to be valued at the price they would
fetch in the market, and not at the fum that was originally paid. The
reader, at the fame time, will perceive how much the two periods differ
in regard to the intereft. In the reign of Queen Anne, the fame capi-
tal of about fifty-two millions, was paid annually the fum of
3,351,358., which, at the death of George I., was reduced to
2,217,5517. The difference amounting to 1,133,8071. is a full proof
of the flouriſhing credit which this country enjoyed, and of what might
have been done at that time for retrieving our finances, by an able, de-
cided, and public-fpirited minifter.
GEORGE
II.
The reign of George II. may be divided into four periods. The firſt,
from his acceffion to the beginning of the Spaniſh war, anno 1739; the
fecond, terminates at the peace of Aix la Chapelle, anno 1748; the third,
with the breaking out of the French war, anno 1755; and the laſt
may be
extended to the treaty of Paris, anno 1762. As it was during this reign
that our debts began to put on the formidable appearance they now wear,
it is the more neceffary to trace their progrefs in each of thefe pe-
riods.
riod.
If any one æra, fince the revolution, were to be pointed out in which The first per
our miniſters were peculiarly culpable for neglecting to take folid and
ſubſtantial meaſures to reſtore good order in our finances, it muſt be
that of the commencement of this monarch's reign. The nation was then
acknowledged, on all hands, to be in the moft profperous and flouriſhing
condition: its glory and reputation were at the higheſt pitch, and it
never was better able to vindicate the honour of the crown, and to de-
73 Poftlethwayt, in his Hiftory of the Revenue, p. 122, fuppofes, that about
2,670,2317. 1s. of principal was paid off on the 25th of March 1728. But he includes,
in the National Debt, at the death of Queen Anne, the additional value of the temporary
annuities.
་
:
fend
78
HISTORY OF THE PUBLIC REVENUE
་
fend its juft privileges and poffeffions"; and yet little advantage was reap-
ed from fo fplendid a fituation. The minifter at the time, (Sir Robert
Walpole,) though ſupported by the whole influence of the crown, and
by a formidable party in parliament, did not enjoy the general confi-
dence of the people; and inſtead of adding to the public revenue, and
diminiſhing the national incumbrances, he preferved his tottering au-
thority, by reducing the land tax to one fhilling in the pound, in or-
der to ingratiate himſelf with the landed intereft, and by alienating the
produce of the finking fund, from thoſe purpoſes to which it had been
originally deftined, and applying it to the current fervices of the year.
There is alfo too much reaſon to believe, that thoſe reſources which
ought to have been employed in diſcharging the public incumbrances,
were ſhamefully wafted in purchafing the votes of the venal, and in
hiring mercenary writers, to defend the cauſe of the minifter, and to
rail againſt his opponents. The confequence was, that, during a pe-
riod of profound peace, and which lafted for the ſpace of twelve years,
the reduction in the capital of our debt was very inconfiderable, in
compariſon of what it ought to have been, confidering the many ad-
vantages which we enjoyed.
But, as the national debt, anno 1739, was lower than it has been at
any time fince the death of Queen Anne, it may not be improper to
ftate the particulars of which it confifted.
79 Theſe are expreffions contained in one of this monarch's firſt ſpeeches from the
throne, July 17, 1727. Comm. Journ. vol. xxi. p. 14.
80 From 1707, to 1717, the money paid for fecret fervices, amounted only to
337,9601. 4s. 3 d. But, from 1731, to 1741, being another period of ten years, no lefs
a fum than 1,453,4007. 6s. was iffued for the fame purpoſes. See Commons Journals,
vol. xxiv. p. 295•
GENERAL
OF THE BRITISH EMPIRE.
79
GENERAL VIEW of the NATIONAL DEBT
on December 31, 1739.
I. PERPETUAL FUNDS.
To the capital of the Bank of England,
at 6 per cent.
2. For cancelling Exchequer bills, at 4 per
3.
cent.
Purchaſed of the South Sea Company, at
4 per cent.
4. Annuities at 4 per cent. from Midſummer
1728
5. Annuities at 4 per cent. from ditto 1729
Principal.
£. 1,600,000 o o
500,000 o o
4,000,000 o o
1,750,000 0 Ο
1,250,000
оо
Intereft.
96,000 o o
20,000 o o
160,000 0 0
70,000 0
50,000 o o
7•
8. To various long and fhort annuities,
Exchequer bills, &c.
Total to the Bank
6. To the East India Company, at 4 per cent.
To the South Sea Company, at ditto
L. 9,100,000
O O
--
3,200,000 О O
27,302,203 5 6
1,092,088
396,000 o о
128,000 0 о
2 7½
£39,602,203 5 6
1,616,088 2 7
9:
The Navy and Victualling debt, at
4 per cent:
6,527,735 2 4.
314,949 19 8
824,684 15 6
32,987 7 93
Total £ 46,954,623 34 1,964,025 10 1
Principal.
Debt on Dec. 31, 1727 £. 52,092,235 5 4
Ditto on Dec. 31, 1739 46,954,623 34
Difference 5,137,612 2. О
Intereft.
2,217,551 II of
1,964,025 10 1/1/
253,526 o 10%
If, inſtead of this inconfiderable reduction, the miniſter had proceeded
to the great work of diminiſhing the debt with firmnefs and vigour,
and, indeed, had he not alienated the finking fund, and defeated Sir John
Barnard's plan, for reducing the intereft of the greater part of the re-
deemable annuities, from 4 to 3 per cent. (which might have been carried
into effect anno 1737, as well as anno 1749) our finances would have
been put in fuch a ftate, that no power in Europe would have ventured
to incur our refentment; and we might have avoided a war, equally
unneceffary and inglorious, which added above thirty millions to our
national incumbrances.
An idea had become not a little prevalent, in foreign countries, The fecond
during the latter part of Sir Robert Walpole's adminiftration, that this period.
country, notwithſtanding all its power and riches, might be infulted with
S
impunity;
1
書く
​HISTORY OF THE PUBLIC REVENU E
impunity; becauſe the minifter knew well that a war muſt prove fatal
to his authority. The court of Spain embraced fo favourable an oppor-
tunity of diſplaying that antipathy to Great Britain which it had long
entertained, and the fources of which it is neceffary briefly to ex-
plain.
By an exprefs article in the fecond grand alliance, concluded anno
1701, it had been ftipulated, that Great Britain and Holland fhould re-
tain whatever cities and territories belonging to the Spaniſh dominions
in the Indies fhould be conquered by their arms". But, though fuch an
opportunity of making valuable acquifitions to the crown of England,
had never before, or, indeed, fince exifted, yet our exertions were al-
moſt entirely dedicated to European conquefts; and, inſtead of Hiſpa-
niola and Cuba (poffeffions almoft invaluable to a commercial nation),
Gibraltar and Minorca were thofe about which we were occupied; and,
as it was eafily perceived that no plan of a treaty would fucceed, unleſs
this country was gratified with fome important acquifitions, the King of
Spain was thence compelled, by certain articles in the treaty of Utrecht,
to furrender Gibraltar and Minorca, in full right and property, to the
crown of Great Britain.
It is probable, however, from the conclufion of the article by which
Gibraltar was ceded (in which it is declared, that if ever the property of
that fortreſs was to be alienated, the preference fhall be given to the
crown of Spain), that there was fome fecret underſtanding between the
parties at the time, with refpect either to an exchange or a fale; and Phi-
lip King of Spain, in confequence of ſome ſuch agreement, was perpe-
tually importuning the Britiſh minifters, that Gibraltar might be re-
ftored. Nay, on the 1ft of June 1721, George I. wrote a letter to that
monarch, in which it is faid, "I do no longer balance to affure your
majeſty of my readineſs to fatisfy you with regard to your demand,
"touching the reftitution of Gibraltar; promifing you to make ufe of
"the firſt favourable opportunity to regulate this article with the conſent
"of my parliament "."
'
81 See Art. 6.
82 99
82 See the original letter in French, and a tranſlation of it, Comm. Journ. vol. xxi.
p. 285.
Gibraltar,
OF THE BRITISH EMPIRE.
81
Gibraltar, however, was a poffeffion too dear to the Engliſh nation to
be eaſily relinquished; and fuch advantage would have been taken of
their attachment to it by thoſe who were in oppoſition to government
at the time, that no ſteps could be ſafely purſued for a reſtitution of that
fortreſs. This naturally excited chagrin and reſentment in the court of
Madrid, which were perpetually breaking out when any favourable op-
portunity occurred of inſulting us with impunity.
But the war more immediately arofe from the treatment which our
ſhips and mariners, and thoſe of our colonies in particular, received on
the American feas. The Spaniards, anxious to monopolize the whole
trade of their colonies in America, treated, in the harſheſt and moſt
cruel manner, fuch Britiſh veffels as ventured near their fettlements,
whether for the purpoſes of commerce, or when driven by neceffity.
Theſe circumftances at laft attracted the attention both of the crown.
and of parliament; and the examination of an old failor at the bar of
the houſe of commons, who was maimed by the cruelty of the Spa-
niards, rouſed the indignation of that affembly, and filled the whole na-
tion with a ſpirit of refentment; in conſequence of which, war was de-
clared againſt Spain on the 19th of October 1739.
An event foon afterwards took place, which involved all Europe in
confufion.
On the 9th of October 1740, Charles VI. Emperor of Germany
(the laſt prince of the houſe of Auftria), expired at Vienna. Little
doubt was at firft entertained that his eldeft daughter (Maria Thereſa,
married to the grand Duke of Tuſcany) would enjoy an undiſturbed
fucceffion. But, though the principal powers of Europe had gua-
ranteed her rights, difputes arofe with regard to the poffeffion of the
greater part of her father's dominions; and the Elector of Bavaria was
fet up by France as a competitor for the imperial crown. In this extre-
mity, her whole dependence reſted on the ſupport of Great Britain; by
whoſe aſſiſtance ſhe at laft triumphantly furmounted all her difficulties.
But to eſtabliſh that princeſs, and to preferve the prefent imperial fa-
mily, in oppoſition to the intrigues and the armaments of France, was
attended with charges, the burden of which this country feels at this
hour.
[L]
Great
!
82
HISTORY OF THE PUBLIC REVENUE
Mode of
borrowing.
Great Britain has, in general, enjoyed this advantage, that the wars in
which ſhe has been engaged have not been carried on within the boun-
daries of the island. In the year 1745, however, we felt all the hor-
rors of inteftine war, in confequence of a bold and deſperate attempt to
raiſe a new rebellion in favour of the exiled family. The warlike fpirit
for which the northern parts of Scotland have been fo long diftin-
guiſhed, inſtead of being employed to maintain the rights and to extend
the fame and glory of the Britiſh empire, had been ſuffered to ruſt in
floth, and to brood over its caufes of difcontent. A brave and hardy
race, thus neglected by their legal fovereign, confidered themſelves as a
profcribed and devoted people; and, preferving their old attachments,
flew to arms with alacrity and zeal, to fupport the only cauſe
for which they were ſuffered to bleed; flattering themſelves with the
vain expectation of being able, by their valour, to replace the houſe of
Stuart upon the throne. The infurrection, though at firft ſucceſsful,
was at once quelled by the decifive victory at Culloden. Befides the
great expences which this rebellion occafioned, and the injury
which it did to the national credit, it was attended with another un-
fortunate circumſtance. The troops employed for that purpoſe being
drawn from the armies of the allies on the continent, this circumftance
weakened our forces there to fuch a degree, as to diſable us from reaping.
thofe advantages which otherwiſe we had every reafon to expect.
This war with Spain and France, which had lafted nine years, was at
laft terminated by the treaty of Aix la Chapelle; and it is now propoſed
to give fome account of the principles upon which money was borrowed
to defray the extraordinary expences it occafioned, and alſo a general
view of the amount of our public debt, when the war was brought
to a conclufion.
It was during this period that a practice which began in the reign of
Queen Anne, of adding an artificial to the real capital, was firft carried
to any great height. The funds were now confidered as a permanent
fpecies of property, which it was fuppofed the nation could never totally
redeem; and it was, therefore, thought better to difpofe of a certain
quantity of a 3 or 4 per cent. ftock; and thus to make a bargain at one
determinate intereft, than to eſtabliſh new funds at different rates, in
proportion
OF THE BRITISH EMPIRE.
83
proportion to the fluctuation of the value of money, which during a
long war, was perpetually increafing. The plan
The plan was at firſt leſs perni-
cious than it has fince proved. The price of ſtocks, during this whole
period, did not greatly differ from the capital. Indeed, until the rebel-
lion of 1745, the 3 per cents. had never been below 89. But the fame
practice has fince been purfued, when theſe funds fold at little above one
half of their nominal value; and the State has acknowledged itſelf in-
debted in a hundred pounds, when, perhaps, it only received fixty.
The ignorant might be thus deceived into an opinion, that we were bor-
rowing at a lower intereſt than in fact was the cafe. We have dearly
paid, however, for this imaginary advantage, by a great and ſolid addition
to our national incumbrances. How much of our prefent debts ought
to be attributed to this deftructive mode of raiſing money, will be the
ſubject of future enquiry.
It was alfo ufual, at this time, when money was borrowed, to give Premiums.
douceurs to the creditor in the ſhape of lottery tickets, or of life annu-
ities; a mode adopted, not only with a view of concealing from the
people the real burdens of the war, but alfo of enabling the money-
lender to make the greater profit of his bargain with the public, by fur-
niſhing him with every fpecies of fecurity, and putting it in his power
to pleaſe the palate of every different purchaſer.
It has been an unfortunate circumftance for this country, that we have Eaft India
hardly ever concluded a bargain with any of thofe great companies Company.
which were originally inftituted with a view to facilitate the reduction
of our debts, but at a time when the public was involved in difficulties,
and confequently neceffitated to accept of any terms they thought pro-
per to propoſe. Thus, in order to procure a million from the Eaft In-
dia Company, the exclufive charter which it had obtained, was conti-
nued from 1766 to 1780; and confequently prolonged for fourteen
years, twenty-three years before the former term of the monopoly was
to have ceafed. For this million, they were to receive an intereft of
3 per cent.; and, as 3 per cents. were then at 97, the whole value they
gave for this grant did not exceed 30,000%. **. The company, it is
84
84 Ibid. p. 392.
#3 Polit. Econ. vol. ii. p. 393.
[L] 2
believed,
84
HISTORY OF THE PUBLIC REVENUE
Bank.
believed, would have paid in a million, and would have readily ac
cepted of 750,000l. of capital, bearing what was then the uſual inte-
reſt of 4 per cent. But thoſe who managed theſe contracts for the
public (as Dr. Price well obferves) did not attend to the abfurdity and
extravagance of loading pofterity with a debt for money paid to enjoy
the exclufive poffeffion of certain valuable privileges, and of thus
borrowing, in the very act of ſelling, a very important monopoly ".
85
During this period, alſo, the charter of the Bank was prolonged,
until the 1st of Auguſt 1764, in confideration of which, they lent to go-
vernment, anno 1742, the fum of 1,600,000l. without intereft; the
greater part of which would have been paid for the prolongation of
its exclufive charter, had the former intereft of 6 per cent. on their
original ftock been continued. Thus another wanton and unne-
ceſſary addition was made to the capital of our debts".
Let us next ſee the amount of our national debt, when the war was
brought to a conclufion.
"s Tracts on Civil Liberty, p. 132.
#6 Ibid. p. 125.
GENERAL
1
OF THE BRITISH EMPIRE.
85
GENERAL VIEW of the NATIONAL DEBT, on 31ft Dec. 1748.
1. FUNDED DEBTS.
1. The capital of the Bank of England, at
3 per cent.
2. For cancelling Exchequer bills, at 4 per cent.
3. Purchaſed of the South Sea Company, at
ditto
4. Annuities at 4 per cent. from Midſum. 1728
5. Annuities at ditto, from ditto 1729
6. For cancelling and circulating exchequer
bills
7. To the Eaft India Company, for its ſtock
and annuities
8. To the South Sea Company, at 4 per cent.
9. To various long and ſhort annuities, pay-
able at the exchequer
10. To various redeemable annuities, at
different rates of intereft
II. To various Bank annuities, at different
interefts
Principal.
£3,200,000 o o
500,000 o o
4,000,000 o o
1,750,000 0 o
1,250,000 oo
1,486,400 0
£12,186,400 o
4,200,000 O О
Interest.
96,000 0 0.
20,000
160,000 o o
70,000 O O
50,000 0
54,450 o o
450,450 O
$58,000 0
27,302,203 5 6 1,092,088 27
2,042,723 6 1 218,117 11 8
3,079,071 5 1 104,561 7 9
22,530,000 o o 829,200 o a
£71,340,397 16 9 2,852,417 20
2. UNFUNDed Debts.
13.
12. To navy, victualling, tranſport, and ord-
nance debts, at 3 per cent.
Debts and deficiencies provided for poſ-
terior, to Dec. 31, 1748, at 3 per cent.
5,748,264 17 5
172,447 18 11
1,204,650 7 81
36,139 10 20
Debt on Dec. 31, 1739
Ditto on Dec. 31, 748
£78,293,313 1 10 3,061,004 11
Principal.
£46,954,623 3 4
78,293,313 I 10
Increaſe £31,338,689 18 61
Intereft.
1,964,025 10 I
3,061,004 11 II
1,096,979 I ož
15.
Thus it appears, that the war occafioned an addition of 31,338,689%.
18s. 6d. to the principal; and of 1,096,9797. Is. od. to the inte-
reſt of our debts; to which are to be added the money taken from
the finking fund, and the additional taxes which were impofed, in or-
der to carry on a war, which, after all, was productive of not one folid
advantage, and was concluded by a peace, in every reſpect inglo-
rious.
From
3
:
86
HISTORY OF THE PUBLIC REVENUE
Third period.
Fourth pe-
riod.
From the treaty of Aix la Chapelle, we enjoyed the bleffings of
peace for about ſeven years; a period diſtinguiſhed by the boldeft and
moſt uſeful operation of finance recorded in the hiftory of this country:
for, by the judicious meaſures taken by that able and patriotic miniſter,
Mr. Pelham, who at that time had the management of our revenue, aided
by the counfels of that excellent citizen, Sir John Barnard, no leſs a fum
than 57,703,4751. 6s. 4 d. was gradually reduced from an intereft of
4 to 3 per cent. This is a fubject, however, which more properly
belongs to the enfuing chapter. At prefent, it is only neceffary to re-
mark, that our debt, anno 1755, amounted to 74,571,841%. os. 2½d.,
bearing an intereſt of 2,416,717%. os. 4 d. Confequently, 3,721,472/.
1s. 8÷d. of principal, was paid off, in addition to the great reduction of
intereft that took place at this time.
2
The Britiſh colonies in North America, after long ftruggling with
various difficulties, arifing from the nature of the climate, the ruggedneſs
of the foil, and the barbarity of their Indian neighbours, began about
this time, in confequence of their own exertions, and aided by the fup-
port and encouragement which they received from the mother country,
to enjoy a confiderable degree of happineſs and profperity; and when
nothing feemed likely to have diſturbed the tranquillity of England for
many years, ſhe was alarmed with intelligence, that theſe colonies,
which he had reared at fuch an expence, and protected at fuch heavy
charges, were in a ſtate of the utmoſt danger and diftrefs, the French
having, by their intrigues, united the various tribes of Indians againſt
them; and having conftructed forts, furrounding the frontiers of all
the ſettlements, fome of them within 225 miles of Philadelphia".
Theſe circumſtances were firft publickly taken notice of in his majeſty's
ſpeech from the throne, on the 13th of November 1755; and the Com-
mons, in their addrefs, thanked the Crown, "for having, at the ha-
"zard of all events, taken meaſures for the defence of the Britiſh do-
"minions in America, not only encroached upon, but openly attacked
by the French, in a time of full peace, and farther threatened and en-
"dangered by a large embarkation of troops from Europe." And
they alſo declared, "that they would vigorously and chearfully fupport
"his majefty, in his refifting fuch unjuſtifiable encroachments"."
((
7 Mort. Hift. of England, vol. iii. p. 512.
* Comm. Journ. vol. xxvii. p. 301.
Attempts
OF THE BRITISH EMPIRE.
87
}
Attempts have recently been made to aſcribe the origin of this war to
other motives, in order to palliate the ingratitude of the new American
States. Pofterity will be able to judge with more impartiality than we
can at preſent, how far their reaſonings are well founded, but it will be
difficult for it to be convinced, that the war did not arife from a paffion-
ate defire on the part of the Engliſh nation, to defend thoſe whom they
confidered as their brethren, and who would either have been de-
ftroyed by the tomahawks of the Indians, or driven into the fea by
the French, had it not been for our affiftance. A war thus fpringing
up, foon ſpread its deftructive influence far and wide; and occafioned an
expence to this country, much greater than it ever had before incurred;
the fatal confequences of which were greatly encreaſed from the perni-
cious manner in which our debts were contracted.
The enormous charges with which this war was attended, put go-
vernment ſo much in the power of the money lenders, that the moſt
diſadvantageous terms were agreed to, without heſitation. The firſt
million that was borrowed, was obtained at an intereft of only 3 per
cent.; and as every addition to that intereft, or augmentation of capi-
tal, for which no value was received, is to be accounted an additional
premium or douceur, the lofs which the public fuftained in this man-
ner will appear almoſt incredible.
GENERAL VIEW of the PREMIUMS upon the NEW LOANS,
in the courſe of the War, begun anno 1755.
1. On the loan 1756, an additional intereft of 1-half per cent.
2. Ditto 1757, being a life annuity of 1 per cent. 59
3. Ditto 1758, an additional intereft of 1-half per cent. for 24 years
4. Ditto 1759, 990,000l. of capital, bearing an intereft of 3 per cent..
which, in 9 years only, amounted to
5. Ditto 1760, by various douceurs
6. Ditto 1761, by ditto
7. Ditto 1762, by ditto
£
90,000 o
472,500 O O
495,000 0
I,257,300
1,852,800 0
4,296,375 0 O
5,820,000 o o
9° £ 14,283,975 0
Mode of
borrowing,
39 Sir James Stuart remarks (Polit. Econ. vol. ii. p. 397), that Mr. Grenville has calculated
thefe life annuities at too low a rate.
99 See the Prefent State of the Nation, fuppofed to be written by the Right Honourable
George Grenville, 3d edition, p. 11.
4
It
88
HISTORY OF THE PUBLIC REVENUE
J
It is evident that fome part of this fum cannot juftly be placed to the
account of thoſe minifters by whom the money was borrowed; be-
cauſe the value of money neceffarily increaſes with the demand for it in
a time of war. But if loans had been made at a high intereft, and with
a low capital, the public would have been, perhaps, twelve millions and
a half leſs incumbered than it was; and, at the fame time, the annual
charges in no reſpect greater"; and fome part of the debt might eaſily
have been redeemed by parliament at the return of peace, or borrowed
upon lower intereſt.
Let us next ſee the amount of our debts, funded and unfunded, at the
conclufion of the peace, anno 1762.
GENERAL VIEW of the NATIONAL DEBT, at the concluſion of
the War, begun anno 1755, and ending anno 1762.
. To the national funded debt, on the 5th of January 1755
(See Commons Journals, vol. xxvii. p. 167), with the in-
tereft payable thereon, fince the reduction, anno 1755 and
1757
2. To the Navy debt, Jan. 17, 1755 (ditto p. 108), at 3 per cent.
3. To the debt funded during the
war, including the value of the
long annuities, granted anno
1761 and 1762
4. To unprovided debts, funded
prior to 1764
5. Unfunded debt, remaining anno
1763, deducting the navy debt
of 1755.
Principal.
Intereſt.
£58,129,375 2,036,300
6,983,553 279,342
Intereft.
Principal.
£73,289,673
1,282,167
2,378,252
38,465
£74,571,840 2,416,717
6,998,076
108,462
72,111,004 2,424,104
9' Tracts on Civil Liberty, p. 108.
92
£ 146,682,844 4,840,821
92 Mr. Grenville, in his State of the Nation (p. 28), ſuppoſes, that the debt, funded and un-
funded, at the conclufion of the peace of Paris, amounted to 148,377,618., bearing an intereſt
of 4,993,1441. per annum. But the above is the fum at which it is ſtated by the learned Dr.
Price, who has more recently examined the ſubject (See the Account of the Progreſs of the Na-
tional Debt, Tracts on Civil Liberty, p. 147). The difference feems to have arifen from the for-
mer including the deficiencies of grants and funds anno 1763 and 1764, and the whole of the ex-
traordinaries of the army, which the latter does not take into its computations.
Thus
1
OF THE BRITISH EMPIRE.
8.9
Thus, for the fake of protecting from the power of France thoſe very
colonies who have lately thought proper to throw themſelves into the
arms of that country, we were led into a train of meaſures which al-
moſt doubled the incumbrances of the nation, and required an addition
of above two millions and a half to pay merely the annual intereſt of
the debt incurred; and when a peace was concluded, and Guardeloupe
and Canada came to be put in competition (however preferable the
former in every commercial view), the interefts of Great Britain were
not fuffered for a moment to ftand in competition with providing for
their fecurity. Theſe are circumſtances which, it is to be hoped, in
their cooler moments, when they are fatiated with the imaginary blef-
fings of independence, and of the friendſhip of their new allies, they
will recollect, with the natural fenfations of generous minds awakened
from prejudice and paffion, and alive to the genuine dictates of gratitude
and of honour.
3
GEORGE
III.
At the conclufion of the war, in 1762, the fituation of this country
was, to all appearance, fplendid and flouriſhing. It was incumbered, it
is true, with a heavy debt, but in no degree beyond what it could bear;
and we might have enjoyed as high a pitch of proſperity and happineſs
as any nation could have defired, if a fatal ſpirit of anarchy and of intef-
tine difcord, if a luft of power among the great, and an impatience of
fubordination among the people, had not arifen, which, after raging for
fome time at home, at laft broke out, with redoubled violence, in our
American colonies, and produced a conteft equally pernicious to both
countries. Even before the difpute with America had broke out into
hoftilities, our diffentions had been attended with the moſt deſtructive
confequences to the nation. They occafioned, in the management of
our affairs, an inattention to every thing but parliamentary influence, a
prodigality in our public expenditure, and a ſyſtem of adopting tem-
porary expedients, inſtead of purfuing fome great, uniform, and deci-
five line of conduct. The fame unhappy divifions made us neglect
to cultivate the friendship, or to conciliate the affections of thofe powers
with whom we were naturally connected: whilft, on the other hand,.
we feemed afraid to offend our enemies, unmindful of that found politi-
[M]
Gal
2
F
90
HISTORY OF THE PUBLIC REVENUE
cal maxim, "when difcord rages at home, to give it an opportunity of
"ſpending its violence againſt other ſtates." Indeed, if the rupture
with Spain, for the poffeffion of Falkland iſlands, had not been unfor-
tunately prevented, thoſe reſources which Great Britain and her colo-
nies waſted in deſtroying each other, might have been employed in
curbing the power, and in conquering the territories of their mutual
enemies. It will appear alfo, from the following ſtate of the national
debt at Midfummer 1775, that the continuance of peace was not at-
tended with thofe great effects, in reducing our incumbrances, which
might have been expected.
GENERAL VIEW of the NATIONAL DEBT at Midfummer 1775.
1. PERPETUAL FUNDS.
1. To the capital due to the Bank of England
2. To the East India Company
3. To the South Sea Company
Principal.
£ 11,686,800
Intereft.
350,604
4,200,000
126,000
25,984,674
779,541
£41,871,474
1,256,145
4. Perpetual Bank annuities, at 4 per cent. which in Ja-
nuary 1781 fell to 3 per cent.
18,986,300
759,452
5. Ditto, at 3 and a half per cent. which fell to 3 per cent.
anno 1782
4,500,000
157,500
6. The 3 per cent. conſolidated annuities
38,251,696
1,147,551
7. The 3 per cent. reduced annuities
18,353,774
550,613
8. The 3 per cents 1726
1,000,000
30,000
£122,963,244
3,901,261
2. TEMPORARY ANNUITIES.
9. Bank long annuities, for 99 years, from 1761
6,702,750
248,250
10. Exchequer long annuities
1,836,276
131,203
II. Various life annuities
840,781
88,107
£132,343,051
4,368,821
3. UNFUNDED DEBT.
12. Exchequer bills, 1,250,000l., Navy debt, 1,850,000,
Civil Lift debt, 500,000l., the intereft only 2 per cent.
Total Debt at Midſummer 1775 £135,943,051
3,600,000
72,000
*4,440,821
Principal. Intereft.
Debt, anno 1762
£146,682,844 4,840,821
Ditto, anno 1775
135,943,051 4,440,821
93 Diminiſhed, during
the Peace
£ 10,739,793
400,000
9³ Tracts on Civil Liberty, p. 119. Of this boaſted diminution, one half did not ariſe
from the furplus of the revenue.
2
Thus
OF THE BRITISH EMPIRE.
91
Thus it appears, that little more than ten millions of our debt were
paid off during the peace: a ſmall fum, compared to what might have
been diſcharged with eaſe, had the reſources of this country been fully
exerted; and, indeed, if only one half of thoſe taxes to which the na-
tion has lately been made fubject, had been impoſed anno 1763, when
tranquillity was fully reftored, our finances would have been brought
into fuch order, before the year 1775, that no ſtate in Europe, nor any
colonial confederacy in America, would have ventured to have in-
curred our refentment. But a nation that will not look its dangers and
its burdens in the face, and purfue great and decifive meaſures for its li-
beration, when in its power, muft ever expect to feel the bitter con--
ſequences of indolence and timidity.
The fources of the war with our colonies, and the events with
which it has been accompanied, are circumſtances too recent, and too
well known, to require being enumerated in this work; and as neither
the relation, nor the perufal of them, can furniſh any friend to the hap-
pineſs and proſperity of this country with any pleaſing ſenſations, it is
therefore hoped, that the following ſtatement of the debt which we have
incurred, in confequence of our late hoftilities, will be deemed fuf-
ficient.
"
[M] 2
GENERAL
!
92
PUBLIC REVENUE
HISTORY OF THE
GENERAL VIEW of the DEBT incurred to defray the Expences of the
American War.
\ edi.
Stock given.
Money received.
Annual Intereſt.
Nature of the Stock.
Additional Capital.]
Premium per 1007.
1776
£2,150,000
£ 2,000,000
£
64,500
3 per cents
150,000
1777
5,000,000
5,000,000
225,000
4 per cents
1778
6,000,000
6,000,000
330,000
3 per cents
1779
7,000,000
7,000,000
472,500
3 per cents
1780
12,000,000
12,000,000
697,500
4 per cents
1781
21,000,000
12,000,000
660,000
18,000,000 3 per cents
1782
20,250,000
13,500,000
793,125
3,000,000 4 per cents
13,500,000 3 per cents
6,750,000 4 per cents
9,000,000
}
6,750,000
1783
15,000,000
12,000,000
560,000
S 12,000,000 3 per cents
1784
9,000,000
6,000,000
316,500
3,000,000 4 per cents
6,000,000 3 per cents
}
3,000,000
10 fh. fhort annuities.
21.per cent. for 30 years.
31 for 29 years, or for life.
Il. 16s. 3d. for 80 years.
175. 6d. for 78 years.
13s. 4 d. for 77 years.
3,000,000 4 per cents
3,000,000
5s. 6d. for 75 years.
6,879,341
Navy billsfund-
ed, anno 1784, at
5 per cent. 1077.
10s. 6d. in stock
per 1001.
Unfunded debt,
now remaining
. (deducting the un-
funded debt anno
1775), at 4 per
cent. fuppofed >+
Debt contract-
ed during the war
£97,400,000 £75,500,000 £4,119,125
6,000,000
6,000,000
240,000
£21,900,000
6,449,383
343,967
5 per cents
429,958
£110,279,341 87,949,383
4,703,092
22,329,958
Debt, anno 1775.
Ditto, incurred during the laſt war
£135,943,051 4,440,821
110,279,341 4,703,092
246,222,392 9,143,913
Total of the preſent national debt
54 It is hoped that the unfunded debt (deducting 3,600,000l. due at the commencement of the war) will not be quite fo confiderable. But in
fuch calculations, it is better to be a million over than under.
OF THE BRITISH EMPIRE.
93
Such is the nominal amount of the exifting incumbrances of the na-
tion, the real nature and burden of which will be the ſubject of future
difcuffion. At prefent, it is only propoſed to give a ſhort view of the
progrefs of the public debts from their commencement to the preſent
time.
National debt at the revolution
Increaſe during the reign of King William
Debt at the acceffion of Queen Anne
Increaſe during the reign of Queen Anne
1 1
Principal.
£ 664,263
15,730,439
Intereft.
39,855
1,271,087
16,394,702 1,310,942
37,750,661 2,040,416
Debt at the acceffion of George I.
Decreaſe during the reign of George I.
Debt at the acceffion of George II.
Decreaſe during the peace
Debt at the commencement of the Spaniſh war 1739
Increase during the war
Debt at the end of the Spaniſh war 1748
Decrease during the peace -
Debt at the commencement of the war 1755
Increase during the war
Debt at the conclufion of the peace 1762
Decrease during the peace
Debt at the commencement of the American war
Increaſe during the war
Amount of our prefent national debt.
54,145,363 3,351,358
2,053,128 1,133,807
52,092,235 2,217,551
5,137,612 253,526
46,954,623 1,964,025
31,338,689 1,096,979
78,293,312 3,061,004
3,721,472 664,287
74,571,840 2,396,717
72,111,004 2,444,104
146,682,844 4,840,821
10,739,793
400,000
135,943,05 4,440,821
110,279,341 4,703,092
£246,222,392 9,143,913
$
One circumftance alone furniſhed the author with any confolation
whatſoever during the whole courfe of this painful inveſtigation, which
has ariſen from the wealth and refources of this country having been
found infinitely fuperior to the expectations even of the moft fanguine.
There is hardly a period, fince the revolution, in which as great appre-
henfions were not entertained of the ftability of the funds, and as loud
complaints made of the intolerable weight of taxes, as at the prefent hour:
and
+
94.
HISTORY OF THE PUBLIC REVENUE
and if the public are but convinced that our incumbrances, however
enormous, are not beyond the ability of the country either to bear or to
redeem, and at the fame time that the burden has grown to ſuch a height
that palliatives can be no longer effectual, but that great and fubftantial
meaſures muſt be taken for their redemption without delay, it is appre-
hended there will be little difficulty in carrying fuch plans into effect as
will foon render Great Britain as happy, flouriſhing, and powerful, as
ever; and Europe (in the words of Raynal) will yet be able to ſhow
the world one nation, of whom ſhe has reaſon to be proud.
CHA P. V.
Of the Steps hitherto taken to diminish the Capital, and to
reduce the Intereft of the National Debt, with fome
account of the different Plans fuggefted for that pur-
poſe.
A
NY perfon, unacquainted with the hiftory of England, who was
told that, in leſs than a century, it had involved itſelf in a debt of
upwards of 240,000,000l. would naturally enquire whether any fteps
had ever been taken to prevent fo immenſe an accumulation. He
would be apt to afk-Were there no generous patriots to warn the na-
tion of its danger? Were there no minifters who had either wiſdom to
apply a remedy, or magnanimity to check this cancerous humour', be-
fore it grew to fuch a height; or were the people fo ſelfiſh and intereſted,
that they would not bear the ſmalleſt additional burden for the fake of
their pofterity?
To fatisfy the curioſity of thoſe who may be defirous of knowing
what meaſures were purſued for diſcharging the capital, or reducing the
intereſt of our national incumbrances, is the object of the preſent
chapter.
J
Bolingbroke, vol. iv. p. 130.
H
From
OF THE BRITISH EMPIRE.
95
liam.
From the preceding part of this work, it appears that, during the King Wil
reign of William, our perpetual funded incumbrances did not amount
to four millions; and as the remaining burdens of the country at that
time, either confifted of long annuities (which would be annihilated in
the courſe of tiine), or of loans upon funds which yielded ſo great a
furplus, after defraying their reſpective interefts, that they were likely
foon to be paid off, it was the leſs neceffary to form any plan for a more
ſpeedy redemption: the only reduction, therefore, that took place dur-
ing the whole period, was that of annihilating, by act of parliament, one
half of the capital and annual intereft of the bankers debt, which
Charles II. had left behind him.
The great addition to our national incumbrances, which took Queen Anne.
place in the reign of Queen Anne, not a little alarmed the public.
Propoſals were made for raiſing between two and three millions.
per
annum, to be applied as a finking fund to pay them off: and one
member in the houfe of commons (Archibald Hutchefon) thought it
incumbent on him to point out the deftructive confequences of our
public debts, and to ſuggeſt the means that might be taken for their re-
demption. But the attention of minifters was taken up with matters
which they confidered to be of much greater importance; namely, in
political intrigues for preferving their own power, and fecuring a fuc-
ceffor to the crown, on the enjoyment of whofe confidence they might
fully depend; confequently no fteps were taken for that purpoſe.
Soon after the acceffion of the prefent royal family, Mr. Hutchefon George I.
prefented to George I. his famous plan for the payment of the public
debts, which, as it is drawn up with great concifenefs, and with much
ability, is well entitled to inſertion in a hiſtory of our finances.
A Propoſal for the Payment of the Public Debts.
1. That the fums feverally affeffed on the lands of Great Britain for
the land-tax of the year 1713, be made payable as a rent charge in fee
2. See Propoſals for a very eafy Tax, to raiſe between two and three millions per annum,
to begin to pay the Public Debts; by Ephraim Parker. London, printed anno 1713. It
was by a tax upon the linen, woollen, and filk manufactures.
for
96
HISTORY OF THE PUBLIC REVENUE
for ever, out of the faid feveral refpective lands, redeemable, notwith-
ſtanding, at any time, by the proprietors paying twenty-two years pur-
chaſe for the ſame.
2. That the faid rents, or the money raiſed by redemption or affign-
ments of the fame, be applied towards the diſcharge of the public
debts.
3. That one-tenth part of all annuities for life, or other eftate; and
all other rents iffuing out of the aforefaid lands, and of all fums of
money ſecured by mortgage, and of all other debts which affect lands,
'be entirely remitted to their reſpective proprietors.
4. That the proprietors of fuch lands be empowered, notwithſtand-
ing any diſability by fettlements, to fell fo much of the faid lands as
fhall be fufficient to redeem the aforefaid refpective rent charges.
5.
That one-tenth part of all the debts fecured by the public funds,
be remitted.
6. That one-tenth part of all the other nett perſonal eſtate of all the
inhabitants of Great Britain, exclufive of the aforefaid debts which af-
fect lands and public funds, be applied to the payment of the public
debts.
!
7. That two fhillings in the pound be made payable yearly out of
the falaries and perquifites of all offices and places which are now in
being, or fhall at any time hereafter be created, and to remain during
the continuance of fuch offices and places refpectively.
8. That the legal intereft be reduced to 4 per cent. per annum.
9. That, for the effectual fecuring of the payment of fuch public
debts, for which there either is at prefent no provifion, or the provifion
made by parliament appears to be deficient, that all funds granted for
any term of years be made perpetual, until the principal and intereft of
all the faid public debts be fully paid off; and that the intereſt of ſuch
public debts as at preſent have defective or no fecurities, be paid out of
the yearly produce of the faid funds, and that the remainder only of
fuch produce, over and above the intereft of the faid public debts, be
applied towards the finking of the principal money.
10. That provifion may be made by an excife on apparel, or fome
other excife, fufficient to produce one million per annum, in lieu of the
land-tax, to continue till all the public debts are diſcharged'.
3 Hutchefon's Collection of Treatifes, p. 27.
146
}
OF THE BRITISH EMPIRE.
97
It is unneceffary to trouble the reader with any obfervations upon fo
excellent a propofal, the propriety of which muft ftrike every perſon
who is in the leaft acquainted with the fubject. It contains a fyftem
alfo, which, with little alteration, might be accommodated to theſe
times. Notwithſtanding the immenfity of the preſent load, were it
thus transferred from the public to the feveral individuals in their juft
proportions, the burden would be little felt, in compariſon of what it
is; and, in the ſpace of a few years, the whole would be totally ex-
tinguiſhed. It propoſes, it is true, an attempt of a bold and daring na-
ture; but if it came recommended by a popular minifter, or a refpecta-
ble committee of the houſe of commons, it might yet meet with a favour-
able reception from the public. It is a matter alſo that may be difcuffed
with the utmoſt propriety, not only by thofe who are in power, and
thoſe who are in parliament, but by the public in general: for there is
not a ſingle individual in the country, whatever his ftation may be, who
is not materially affected by the debts with which the nation is loaded,
and whoſe comfort and happineſs will not, in future, depend upon the
ſteps that muſt foon be taken in regard to theſe incumbrances.
Nor was Hutcheſon the only perfon, during this reign, who fuggefted
the neceffity of adopting effectual, meaſures for diminishing the na-
tional debts.
plan.
In the year 1715, Mr. Afgill publiſhed his plan, for the more fpeedy Mr. Afgill'
redemption of all the perpetual funds, excepting the original ftock of
the Bank of England. His idea was, that two millions fhould be
raiſed in ſpecie, and depofited in a bank, to fupport the circulation of
twenty millions of Exchequer bills, bearing an intereft of 3 per cent.,
with which all the redeemable debts were to be paid off. As an annual
intereft, amounting to 1,182,454. 10s. 5d. was then paid for theſe
redeemable debts, and as the intereft of the two millions to be bor-
rowed, at 6 per cent., and of twenty millions of Exchequer bills, at 3
per cent., amounted only to 720,000l. it is evident that the public
would thus have acquired a finking fund of 462,454%. 10s. 5d. It is
faid, that the Bank, notwithſtanding the variety of difficulties it had
to ſtruggle with in the infancy of public credit, and of paper currency,
Abstract of the public funds, printed for J. Roberts. An. 1715.
[N]
and
1
98
HISTORY OF THE PUBLIC REVENUE
Stephen Bar-
bier's propo.
fal.
and the fituation of public affairs at the time, was able to fupport a cir-
culation of 1,200,000l., by means of 300,000, which it had called in
from the proprietors. Mr. Afgill therefore computed, that two mil-
lions would be fufficient to maintain the credit of twenty millions of
Exchequer bills. The plan was undoubtedly too extenfive; perhaps
were it tried on a more limited ſcale, it might be attended with fuc-
cefs.
When paper circulation was firft fet on foot, it was viewed with
great jealoufy and apprehenfion: but when the minds of men had be-
come more reconciled to it, and the beneficial confequences attending it
were more clearly perceived, the world rapidly run into a very oppoſite
extreme, and it began to be imagined, that the greateſt operations
might be effected by means of this new power'. Impreffed with theſe
ideas, Stephen Barbier prefented his expedient to pay the public debts to
George I. on the 6th of May 1719.
The object of this propofal was to convert forty millions of the na-
tional debt into notes, bearing I per cent. leſs intereft than the original
fund, which was thus to be converted: the converfion was only to
take place at the requeft of the creditor, who might thus, at any time,
obtain both his principal and intereſt. Theſe notes were to be current
in all pecuniary tranſactions, and were to be paid in fpecie in fix months
after they were prefented for payment. Every perfon muft perceive,
that the only poffible advantage which this plan afforded, was that of
reducing the intereft of the funds I per cent. when the creditor choſe to
convert his ſtock into notes, which would not probably be done to any
great extent; and yet the author flattered himſelf, that he had pointed
out treaſures more valuable than the mines of Peru, and fuggefted the
means of rendering this country, by a fingle ftroke of finance, the moſt
powerful in the univerfe"..
5 A very ingenious propofal, founded on theſe ideas, entitled, "A method that will.
"enable the government to pay off that part of the public debt which is redeemable by
"parliament," was privately printed in April 1715, and diftributed among the minifters.
and members of parliament. By this plan, twenty-one millions was to be paid in feven-
teen years, by bills of credit, without intereſt..
See an expedient to pay the public debts, by Stephen Barbier, gentleman, printed anno.
1719. As George 1. was not very converfant in the English language, it was printed.
both in French and Engliſh.
Having
OF THE BRITISH EMPIRE.
99
Having thus feen the various plans that were propofed, let us next
confider what meaſures were really adopted.
The rate of
legal intercit
on private
The firſt ſtep that was taken for relieving the nation undoubtedly was,
that important regulation, by which legal intereft was reduced from 6
to 5 per cent. On the 18th of June 1714, a member of the Houfe, fecurities
whoſe name is not known, had propoſed to reduce the intereft of the lowered.
public funds; but it was dropped, no perſon having feconded the
motion. On the contrary, Mr. Hutcheſon, and other members, were
ordered to prepare and bring in a bill for reducing the rate of intereſt,
without prejudice to parliamentary fecurities'. We are much in the
dark, as to the grounds on which it proceeded. It appears, however,
that fo large a fum as 20,000l. had been lent at only 4 per cent. on
private fecurity; and confequently, there could hardly be any well
founded objection on the part of the monied intereft, to the law being
enacted.
The reduction of the intereft of the public debts, though not the
avowed, yet was the neceffary confequence of the legal rate on private
fecurities being thus diminished. Government began immediately to
borrow money upon lower terms. Of this, a fingular inſtance occurs
anno 1715. By an act that paffed that year, 54,600l. per annum, was
fet apart, as the intereft that muſt be provided for in confequence of a
loan of 910,000l. propofed to be raiſed at that time. But as it was
afterwards found, that money could be procured at 5 per cent.; another
act was paffed that very feffion, by which the annuity was reduced to
45,500l. per annum. When new loans were thus raiſed at 5 per cent.
no good reafon could be affigned why the old debts, redeemable by
parliament, fhould remain at fix.
Reduction of
the intereſt
of the public
debts.
Fund.
The merit of eſtabliſhing a Sinking Fund in this country has, in Origin of the
general, been afcribed to Sir Robert Walpole, but erroneously; for Sinking
other funds of the fame nature had previouſly exiſted, and in particular,
the furplus of the aggregate fund had been dedicated to purpoſes exactly
fimilar. But he, as chancellor of the exchequer, had the charge of the
firſt important operation of that nature, and undoubtedly, managed it with
7 Comm. Journ. vol. xvii. p. 689.
8 See Chandler's debates of the Commons, vol. vi. p. 131.
• Geo. I. feff. 2. cap. 19.
" Ibid. cap. 12.
[N] 2
great
100
HISTORY OF THE PUBLIC REVENUE
great dexterity and judgment. For he not only prevailed upon the
Bank, and the South Sea Company, to make a confiderable reduction
in the intereft they received from the public, but alſo voluntarily to
offer 5,500,000l. to government, if it ſhould be neceffary, to be applied
for paying off the redeemable debts of fuch creditors as were unwilling
to accept of 5 per cent. for their principal ". Such an advance however
was not neceffary; and the advantage which the public received from
this reduction, will appear from the following ſtatement :
STATE of the REDUCTION of the INTEREST on the
PUBLIC FUNDS, Anno 1716.
1. To exchequer bills
cancelled by the Bank,
anno 1710.
2. To fundry other ex-
chequer bills due to the
Bank, being originally
at the rate of 71. 4s. id.
intereft
Principal.
Intereft.
Reduced.
£1,775,027 7 10
106,501 14 5
88,751 7 10
4,561,025 0 0
328,561 15 6 215,779 13 5
3. To the South Sea
capital
10,000,000 o
600,000 o o
4.
To other redeemable
debts, reduced to 5 from
6 per cent.
I 2
500,000 o o
£ 9,392,311 4 2 1/
563,538 13 5
469,615 11 2
£ 25,728,364 2
I
1,598,602 3 4 1,274,146 12 6
£ 1,274,146 12 6
£ 324,455 10 10
Claufe ap-
propriating
the furplufes
of the funds.
Total annual furplus
A confiderable furplus being thus procured, the next queſtion was,
how it fhould be difpofed of? The Commons, on the 23d March 1716,
had refolved "³, that all favings that ſhould ariſe from the reduction of
13,
the intereſt, ſhould be applied towards diſcharging and diminiſhing the
"A reduction of intereft was, at that time, not unpopular even among the creditors;
at leaſt, it is faid, that old Bateman (a great ftockholder) told Lord Stanhope, that he
was glad the refolutions had been taken; becauſe, though his intereft was diminished,
he ſhould think his principal more fecure than ever. Bolingbroke's Works, vol. iv. p. 150.
12 There was afterwards added to this fum 140,844 1. 6s. 5 d. of intereft, converted
into capital. See Poftlethwayt, p. 252.
13 Comm. Journ. vol. xviii. p. 543.
national
}
OF THE BRITISH EMPIRE.
101
!
·
14
national debt. But on the 10th of April, Sir Robert Walpole refigned
his fituation in the treaſury; and as the plan of one miniſter is feldom
reliſhed by another, this important regulation was actually left out of
the bill that was brought in. The omiffion, however, was fupplied, by
an inftruction to the committee, by which they were directed to provide,
that the ſurpluſes of the ſeveral funds ſhould be ſtrictly appropriated to
the diſcharge of the national debts ; and the act itſelf, contained the
following memorable claufe ": " And be it further enacted, that all the
"monies to ariſe, from time to time, as well of the excess, or furplus
"of an act made this feffion, for redeeming the funds of the Bank of
"England, and of the excefs, or furplus, by virtue of one other act,
"made likewife this feffion, for redeeming the funds of the South Sea
Company, as alfo of the exceſs or furplus of the duties and revenues
by this act appropriated as aforefaid, and the overplus monies of the
"faid general yearly fund by this act eſtabliſhed, ſhall be appropriated
"to the diſcharging the principal and intereft of fuch national debts as
were incurred before the 25th of December 1716, and are declared:
"to be national debts, and are provided for by parliament, in fuch
"manner as ſhall be directed by any future act, or acts of parliament,
to be diſcharged therewith, or out of the fame, and to or for none
other uſe, intent, or purpoſe whatſoever."
CC
(C
(c
st
Theſe ſurpluſes have ever fince been known under the name of The
Sinking Fund; and if, in addition to them, new taxes to the amount of
half a million per annum had been impofed at the fame time, and if the
whole had been invariably appropriated to the purpoſes above mentioned,
the progreſs that would have been made in diſcharging our public in-
cumbrances would have been rapid indeed.
The debts of the nation, at the acceffion of the prefent royal family,
confifted either of redeemable annuities, which could at any time be paid
off by parliament, whenever money could be procured for that purpoſe,
or of certain annuities for life, or for terms of years, which might be
called irredeemable, as they could not be diſcharged without the conſent
of the proprietors. It has been already ſeen, that the former had under-
gone a very confiderable reduction in point of annual intereft; and it
was always in the power of the public, to take advantage of its increaf-.
Comm. Journ. vol. xviii. p. 611.
3.
Geo. I. cap. 7.
ing
Origin of the
fcheme
South Sea.
102
HISTORY OF THE PUBLIC REVENUE
ing wealth and credit, to reduce them ftill lower. But the irredeemable
debts were a burden, which it was difficult to form any plan effectually
to remove.
The South Sea Company was, at that time, by far the greateſt public
creditor; and it had procured an act anno 1717, by which the proprie-
tors of certain ſhort annuities (amounting to 134,998 l. 12 s.) who had
yet to run above twenty-three years of their term, from Chriftmas
1718, were permitted to ſubſcribe the refidue of the term, at the rate
of eleven and one-half years purchaſe into the South Sea ftock, and
were to receive 5 per cent. for the principal ". In confequence of this
circumſtance, and of an additional advance of about 544,142%. os. 10d..
the capital of the South Sea Company,
Company, was increaſed to
11,746,844 l. 8s. 10 d.
The fuccefs with which this operation was attended, induced the
company, about the middle of November 1719, to prefent to Earl
Stanhope, then firft Lord of the Treaſury, a ſcheme "for advancing the
public credit, and for a certain reduction of the intereft of the whole
"debt of the nation to 4 per cent. per annum, at the end of feven years,
"from Midfummer 1720; alfo, for rendering it practicable to alter,
change, or even fink the moſt burdenfome funds; and to reduce the
"ſeveral branches of the cuſtoms and exciſe, into one entire duty."
The plan underwent confiderable alterations, in confequence of the ob-
fervations made by that noble lord, and Mr. Aiſlabie, then chancellor
of the exchequer; and it was particularly infifted upon, that the com-
pany ſhould advance to the public no leſs a fum than 3,500,000l. for
the liberty of enlarging their ſtock, in the manner that had been propofed.
This propoſal was unfortunately acceded to. I ſay unfortunately; for the
higher the public raiſed its demands, the leſs proſpect there was of the
plan proving fuccefsful.
When the South Sea ſcheme, thus altered, was prefented to parlia-
ment, the national debt ſtood nearly as follows:
#6
5
Geo. I. cap. 17.
1. Due
OF THE BRITISH EMPIRE.
103
1. Due to the Bank, being their original fund
2. Redeemable annuities due
ditto
£1,600,000
3,775,000
5,375,000
3.
Eaft India Company's capital
3,200,000
8,575,000
4. The South Sea capital
=
11,746,844
20,321,844
5. To all the other public debts and annuities propofed to be taken in by
the South Sea Company, and computed at
30,981,712
6. To be paid by the South Sea Company, for reducing the national debt
51,303,556
3,500,000
£ 47,803,556.
In addition to this reduction of the principal, the plan, in proceſs
of time, would have produced a finking fund, which, when added to
the former furplufes, would have been productive of the greateſt ad-
vantages to the public.
STATE of the ANNUAL SAVINGS.
r. By converting the long annuities into redeemable ſtock
2. The intereſt of the £3,500,000 advanced by the South Sea Company
at 5 per cent.
£ 133,54*
175,000
£ 308,541
235,426
543,967
4. The Sinking Fund, then produced per annum
636,000
Total Sinking Fund.
£ 1,179,967
3. To the reduction of intereft from 5 to 4 per cent. upon the Company's
original capital, and the redeemable annuities, to be incorporated
in their ſtock, which reduction was to take place at Midſummer 1727
Total annual faving
Thus, anno 1727, a finking fund of near 1,200,000l. was pro-
vided, by which the whole debt of the nation would have been foon
extinguiſhed, had it been invariably appropriated..
It is neceffary to attend to a very important diftinction between the. Perversion of
South Sea plan, as it was originally formed, and as it was afterwards the South Sea
perverted. The original plan was, merely to induce the irredeemable
creditors
ſchemes.
x04
HISTORY OF THE PUBLIC REVENUE
-
creditors to part with their annuities, confifting of 667,705 l. 8s. id.
per annum, in long annuities, which did not terminate till the year 1708,
and of 121,000 l. 8 s. in fhort annuities; the value of both of which
was perpetually rifing, and proportionably increaſed, as the intereft on
the other funds was reduced. No effectual meaſures could be taken
for leffening the public debts, whilſt theſe annuities remained irre-
deemable. It was an object, therefore, of the utmoft confequence to
the public. But unfortunately, other advantages were expected, which,
it was imagined, a competition between the Bank and the South Sea
Company, would not a little promote.
It is faid, that, at firſt, the Bank difcouraged all ideas of that nature.
But afterwards being chagrined, that an upftart company ſhould thus
propoſe a plan fo likely to prove beneficial, they were induced to give
in propoſals, by which they offered no lefs a fum than 5,500,000 l. for
the fame privilege which the South Sea Company were to have acquired;
and it was repreſented on their behalf, that if any advantage was to be
obtained by a bargain with the public, confidering the many great and
eminent fervices which their corporation had done to government, in
the moſt difficult times, they flattered themſelves that they ought to be
preferred. The South Sea Company were fo much irritated by this op-
pofition, that at a general court, they inftructed their directors, not to
lofe the ſcheme coft what it would; and accordingly, they offered pro-
poſals, fecuring a profit of 4,667,000l. to the public; and by which,
if all the irredeemable annuities were fubfcribed, the enormous fum of
7,567,500l. would be gained ". Terms fo advantageous were immedi-
ately accepted of; and a bill was accordingly brought in, which, after
fome oppofition, at laft received the full fanction of the legiflature "3.
But the competition between the two companies, and the great offers
which they had refpectively propofed, made the public imagine, that
there must be fomething more profitable in the fcheme than was at firſt
fuppofed, or could be fathomed by thoſe who were not in the fecret;
and hence, "The imaginations of mankind became eafily heated, and
"their paffions fo animated with ideas of inconceivable advantages, that
See the propofal, Comm. Journ. vol. xix. p. 246. The propoſals given in by the
Bank, may be feen in the Hiftorical Regifter for the year 1720, p. 31 and 38.
18 6 Geo. I. cap. 4.
2
"they
OF THE BRITISH EMPIRE.
105
"they threw away all reafon, and gave themſelves up wholly to
"humour ".""
The profits of the South-Sea Company, were to arife, 1. From the
intereft they were to receive from the Public on their capital, which
was to continue at 5 per cent. for feven years: 2. From the advantages
of their trade to the South-Sea: 3. From a monopoly of the trade
to Africa, and the property of Nova Scotia, and of that part of the
iſland of St. Kitt's which had belonged to the French. But in the
fervour of their competition with the Bank, they had been prevailed
upon to give up theſe latter advantages for the prefent, trufting to the
promiſe of the minifter, that they ſhould afterwards be procured. And
fuch was the dilemma to which the company was reduced from theſe
circumſtances, that nothing but taking advantage of the blindneſs and
infatuation of the people, and of that phrenzy of avaricious enterpriſe
in pecuniary fpeculations, which prevailed at that time, could give
them any proſpect of fulfilling their engagements with the public. Ac-
cordingly, a variety of infamous artifices were put in practice, to en-
hance the value of their ftock; imaginary advantages were held forth;
a thouſand groundleſs reports were circulated with regard to acquifitions
in the South-Seas, &c. &c. and dividends were voted, which the di-
rectors very well knew could never be paid, and for which there was
no folid foundation.
The ſteps that were taken for the relief of thoſe individuals who
fuffered by thefe tranfactions, and for the puniſhment of the directors,
and their affociates in guilt, is not within the object of this work to
relate. It is proper, however, to ftate the advantages which the nation.
reaped. At firſt, an act was paffed, by which (in full for the claims
which the public had upon the company) two millions of its capital
were funk. Theſe two millions, however, were afterwards revived,
together with the annuity attending the fame. But the public, in the
firſt place, received this advantage, that 535,362. 15 s. 7 d. of long
annuities, and 97,335 l. 5s. of fhort annuities, were converted into
redeemable ſtock (which at this time bears but 3 per cent. intereft;) and
by the bargain with the company, their capital was reduced, at Mid-
19. See a true ſtate of the South Sea fcheme in folio, p. 30.
29 6 Geo. I. cap. 6.
[0]
2
fummer
106
HISTORY OF THE PUBLIC REVENUE
Progrefs of
the finking
fund during
this reign.
fummer 1727, from 5 to 4 per cent. by which the following profit was
gained:
State of the Annual Profit gained by the Public, in confequence of its
bargain with the South-Sea Company.
1. By One per cent. on 13,061,8781. of South-Sea capital, reduced
by the bargain at Midfummer 1727, from 5 to 4 per cent.
2. By one per cent. on the South-Sea annuity, the principal being
16,901,2417. 175.
3. By one per cent. on 4,000,000 l. purchaſed of the South-Sea Com-
pany by the Bank of England
Total
£ 130,618 15 7
169,012 8 4
40,000 o o
Z 339,631 3 11
This annual faving, calculated at 25 years purchaſe, yielded a profit to
the public of 8,490,780 l.: a fmall fum, compared to the advantages of
which this meaſure might have been productive, but much greater than
what is generally ſuppoſed ".
The great object which miniſters ſeem to have had in view, fince the com-
mencement of our public debts, was not to diſcharge the principal, but
to diminiſh the intereft, ſo as to render their adminiſtration as little bur-
denfome to the people, and confequently, as popular as poffible. Not-
withſtanding principles of a nature fo very unfavourable, to the exiſt-
ence of a finking fund; yet during the whole reign of George I. it was
invariably appropriated to the purpoſes for which it had been formed;
and, rather than encroach upon it, money was borrowed upon new
taxes, when the ſupplies in general might have been raiſed, by dedicating
the furpluffes of the old taxes to the current ſervices of the year "2.
Little progreſs, however, was made in diſcharging the public debts;
for at the fame inftant that old incumbrances were thus paid off, new
debts were contracted. The finking fund alſo, until the five per cents.
were reduced to four, in the year 1727, hardly amounted to 600,000 l.
per annum; and in the infancy of fuch a fund, its operations are
22
Advantages which have accrued to the public,, by the execution of the South-
Sea fcheme, printed anno 1726, p. 8. It may be ſaid, that by 11 Geo. I. cap. 9.
3,775,0271. 17 s. 10 d. was reduced at the ſame time to 4 per cent.
But that was pro-
bably owing to the example given by the South-Sea Company of fuch a reduction.
a² Price's Appeal on the National Debt, edit. 1762. p. 29. note B.
very
OF THE BRITISH EMPIRE.
107
very limited and confined. It appears, however, from a vote of the
Houſe of Commons, on the 12th of March 1727, that from Chriſtmas
1716 to Lady-day 1728, there was, or would be, iffued, for diminiſh-
ing the national debts, no leſs a fum than 6,648,762 l. 5 s. 1 d. 23
I
About the latter end of the former reign, it was a queſtion which George II.
became not a little controverted, whether the public creditors had
a right to infift, that the finking fund fhould be folely applied to dif-
charge the principal of their debts. On the one hand, it has been
poſitively afferted, that no condition of that nature was either ex-
preffed or underſtood, in all the conferences that were held between the
minifter and the public creditors, when that fund was originally efta-
bliſhed 24. On the other, nothing can be ftronger in fupport of fuch
a claim, than the words of the act of parliament, particularly when
joined to the ſpeeches from the throne, and the addreſſes of both houſes
of parliament". It is well known alfo, that in the year 1726, a very
able and intelligent member, connected with the miniſter at the time,
publiſhed an elaborate performance, to prove the utility of fuch a fund,
and to refute all apprehenfions in regard to its being perverted". The
fact ſeems to have been, that at firſt it was ſuppoſed equally for the ad-
vantage of the creditor and the public, that it ſhould be thus invariably
applied. But when it was no longer infifted upon by the creditor,
and when the competition came to be, not who fhould be first, but
who fhould be laſt paid, it was eaſy to foreſee, that the finking fund
would foon be alienated, unleſs protected from the rapacity of miniſters,
by much ſtricter regulations than had as yet been enacted.
23 Comm. Journ. vol. xxi. p. 81.
24 Confiderations concerning the Public Funds, &c. 2d edit. printed anno 1735,
p. 13. Nor is it ſo much as hinted at in the propoſals given in by the Bank, or South-
See Company. Hift. Regiſt. an. 1717. p. 208.
25 See the extracts of the ſpeeches and addreffes, in Price's Appeal, p. 26. Note A.
25 Effay on the Public Debts of the Kingdom; fuppofed to be wrtten by Sir Na-
thaniel Gould, 2d edit. printed anno 1726, reprinted for B. White, Fleet-ſtreet,
anno 1782. This tract was twice anſwered, firſt by a pamphlet intitled, Remarks on
the Effay, &c. Printed by A. Moore, anno 1727; and ſecondly, by Mr. Pulteney's
well-known State of the National Debt, printed for R. Franklin, in the fame year.
Sir Nathaniel ſupported his former opinions in a paper, intitled, A Defence of the Effay, &c.
Printed for J.Peele, anno 1727.
[0] 2
The
108
HISTORY OF THE PUBLIC REVENUE
Perversion of
the finking
fund.
The firſt encroachment may be traced to the year 1728-9". It was ne-
ceffary to raiſe 1,250,000 l. for the current fervice of the year; and the
minifters boaſted, that fuch was the flouriſhing condition of the finking
fund, that it was very well able to pay the intereft of that fum, and
that there was no occafion to impofe any new taxes upon the people.
In vain did a member of the houſe move, that the fupplies fhould be
raiſed, without creating a new debt upon any exiſting fund". The
motion paffed in the negative without a divifion, and is ftigmatiſed as
having been made, merely with a view of diftreffing government. So
little was the public at large fuppofed to be intereſted in this important
tranfaction.
1
>
The ſecond encroachment took place anno 1730-1
29 when cer-
tain duties impofed in the reign of king William, for paying the
intereft due to the Eaft-India company (which became no longer
neceffary for that purpoſe, in confequence of their intereſt being
reduced), was made ufe of as a fund for raiſing 1,200,000l. in-
ftead of being thrown into the finking fund, as it ought properly to
have been; but the final perverfion of this fund took place, anno 1732-3.
The land-tax in the former year, had been reduced to one ſhilling in
the pound; and the miniſter (Sir Robert Walpole) had by this means
rendered himſelf fo popular with the landed intereft, that he was de-
termined to perfevere in the fame unfortunate fyftem of fecuring his
own power at the expence of the revenue. Accordingly he moved,
that the land-tax fhould be continued at one fhilling in the pound, and
that 500,000l. fhould be taken out of the finking fund, and applied to
the current ſervices of the year 30.
It is to the credit of parliament, that the meaſure propoſed met with a
violent oppofition in both houfes but it is unneceffary to enter into
the particulars of debates, which every perfon may eafily obtain, and
27 By 2 Geo. II. cap. 3. Mr. Pulteney fays, that the first encroachment made upon
this fund, was by an increaſe of the civil lift; and the fecond, by taking off the falt duty.
See Chandler's Debates, vol. vii. p. 228. But theſe were rather circuitous than direct
23 Comm. Journ. vol. xxi. p. 206.
encroachments.
22 4 Geo. II. cap. 9.
3
30 Comm. Journ. vol. xxii. p. 16.
peruſe.
OF THE BRITISH EMPIRE.
109
*ત
perufe". The parliament, however (as Dr. Price obferves), not ac-
cuftomed to refuſe the miniſter any thing, agreed to the propofal;
"and thus expired, after an exiſtence of about eleven years, the finking
fund, that facred bleffing-once the nation's only hope-prematurely
"and cruelly deſtroyed by its own parent. Could it have eſcaped the
"hands of violence, it would have made us the envy and the terror of
"the world, by leaving us at this time, not only tax-free, but in pof-
"feffion of a treafure, greater perhaps than ever was enjoyed by any
kingdom This learned and refpectable author, has perhaps
carried his enthuſiaſm too far, with regard to the advantages reſulting
from an invariable appropriation of this fund; but he ſpeaks with that
honeft warmth which every real patriot feels, in a matter fo intereſting
to the public.
t
32 19
It is unneceffary to enquire very minutely into the application of the
finking fund, after it was thus fatally perverted; for though it has been
occafionally applied for diſcharging fome part of our incumbrances, yet it
has been much oftener expended in the current fervices of the year, and con-
fequently has not been productive of any material advantage; on the con-
trary, has loaded the public with a heavy burden, to encourage the pro-
fufion of miniſters, and to difcourage, fo far as a weight of taxes is able
to do it, the general induſtry of the people.
part
Rejection of
the plan for
reducing the
intereft of the
public funds,
Sir Robert Walpole was not only the perfon by whofe means the
finking fund was perverted, but he alfo exerted his abilities and in-
fluence in parliament, to prevent the reduction of a confiderable
of the public debt from 4 to 3 per cent. which might have been eaſily An. 1737-
effected in the year 1737. The 3 per cents. at that time, bore a pre-
mium at the market; confequently there could have been no difficulty
in procuring money at that rate, to pay off fuch of the creditors as were
unwilling to agree to the reduction. But the meaſure being fuggeſted
by that inflexible patriot Sir John Barnard, who was generally in op-
pofition to the miniſter, the whole power of government was exerted to
deprive him of the juft applauſe he would have acquired by bringing
fuch a meaſure to bear. The motions, however, which were made,
"that all the public funds, redeemable by law, carrying intereft at
31 See Hiſtorical Regiſter, p. 218. Comm. Debates, publiſhed by Chandler, vol. vii.
p. 285; and Lords Debates, publifhed by ditto, p. 489.
22 Appeal on the National Debt, p. 38.
« four,
110
HISTORY OF THE PUBLIC REVENUE
Reduction of
intereft,
An. 1749.
33
four, fhould, with the conſent of the proprietors, be reduced to three
per cent.," and, "that his majeſty ſhould be enabled to borrow any fum
"of money that might be neceffary for redeeming the debts of thoſe
"who refuſed to confent to the reduction," were voted, after fome op-
pofition. But the bill that was brought, in in corfequence of thefe re-
ſolutions, was not even ſent to a committee ". It is aſtoniſhing what
abfurd arguments were made uſe of to prevent this propofal paffing into
a law.
It was urged, that ſuch a reduction, inſtead of tending to in-
creaſe our trade, and to improve the landed property of the nation,
would probably contribute to the ruin of both. The pitiable caſe of
widows and orphans, whoſe income would be thus diminiſhed, was
loudly deplored; and in particular, it was afferted, that it would prove
deftructive and ruinous to the capital, in whofe neighbourhood the
greater part of the ſtockholders and annuitants could no longer afford
to live, but would be obliged to retire to remote and cheap diſtricts in
the country. It was alfo contended, that the ſcheme was impracticable,
though a fimilar one had been carried into effect, anno 1716, and
was again put in practice under Mr. Pelham's adminiftration. It is
difficult to eſtimate the lofs which the public fuftained in confequence
of this propofal having been rejected. The capital of the South Sea
company at Chriſtmas 1738, when the reduction would have taken
place, amounted to 27,300,000l. one per cent. on which was 273,000 %.
per annum. It continued at four per cent. till December 1750, and at
three one-half per cent, until December 1757. The difference of in-
tereſt which the public paid in the interval, amounted to four millions
and a half; and when it is confidered, that the other four per cents.
might alſo have been reduced about the fame time, we may in ſome
degree calculate what the minifter facrificed from a fpirit of op-
pofition.
But the ſame meaſure, which, when it was propoſed by a private in-
dividual, was accounted vifionary and impracticable, was no fooner put
into the hands of a minifter, than it inftantly became the beſt and
33 Comm. Journ. vol. xxii. p. 834. The divifion was 222 in favour of the firſt
motion, and 157 against it. But the fecond divifion was very oppofite to the firft; 249
being againſt the bill, and 134 only for it. This proves how efficacioufly the minifter had
made uſe of his influence to overturn the plan. Ditto, p. 368.
wifeſt
OF THE BRITISH EMPIRE.
III
1
wifeft plan that could be deviſed; and was actually carried into execu-
tion, though in the courfe of the Spaniſh war, which began anno 1739,
an addition of above thirty millions had been made to the national
debt. The hiftory of this important financial operation it is proper
briefly to explain.
In the feffion of parliament, which began in November 1748, Mr.
Pelham, as chancellor of the exchequer, publicly intimated his inten-
tion of embracing the firſt favourable opportunity that ſhould offer, to
reduce the intereft then payable on the greateſt part of the national
debt; and as fuch a meaſure was afterwards recommended to the confi-
deration of parliament, in a ſpeech from the throne on the 16th November
1749, thoſe who were intereſted in the public funds, had due notice of
the intentions of the miniftry. Every ſtockholder was put on the fame
level; confequently no unfair advantage could be well taken of any
individual.
The four per cent. annuities, at that time, were as follows:
1. Due to the Bank of England
2. Due to the South-Sea Company
3. Due to the Eaft-India Company
4. Annuities transferrable at the Bank of England
5. Annuities on the plate act, tranferrable at the Exchequer
| | | |
£8,486,800 o
27,302,203 5 6
3,200,000 о O
18,402,472 Ο ΙΟ
312,000 o o
£57,703,475 6 4
The firft refolution of the houfe of commons, in regard to this re-
duction, paffed on the 29th of November 1749. The purport of it
was, that fuch public creditors as received an intereſt of 4 per cent.
upon their capital, redeemable by parliament, who would fignify, on
or before the 28th of February 1749-50, their acceptance of 3 per cent.
intereſt from December 1757, ſhould have their debts made irredeem-
able until that period, and fhould receive in the interval, 4 per cent.
till December 1750, and three one-half per cent. from that time until
the whole reduction took place. It met with no oppoſition; and the com-
miffioners and officers of the Treaſury, and Sir John Barnard the
original propoſer, were ordered to bring in the bill.
Every perſon muſt perceive, that to diſcharge fo immenfe a capital
at once, was totally impracticable. Yet fuch was the influx of money
into
112
HISTORY OF THE PUBLIC REVENUE
into this country, and the high credit which it then enjoyed, that new
loans could have been obtained at 3 per cent. to pay off fome part of the
creditors; and as money would naturally grow cheaper, and more
plentiful every year, during the continuance of peace, larger fums might
have been borrowed at the fame rate every fucceeding year, and the
reduction to 3 per cent, would probably have taken place fooner than
it actually did. The 3 per cent. annuities then fold at 101; and as fuch
4 per cent. creditors as were paid off (if they replaced their money in
the funds), could not receive even 3 per cent. for their money, the offer
was evidently in their favour. But an idea being prevalent, at the time,
that the peace would be of fhort continuance, and a variety of objections
having been made on the part of the creditors, fome propofing one plan,
and others recommending another totally different, the fcheme was
likely to have failed, very few of the ſtockholders having fignified their
approbation of the terms propofed, when the period approached.
It was at this crifis (6th February 17+), that Sir John Barnard,
wrote his famous "Confiderations on the Propofal for reducing the
"Intereft of the National Debt 34, in which, he proved fo clearly, the
general utility of the meaſure, and the advantages which it would yield
to the fubfcribers themſelves, that, before the 28th of February, about
forty millions were ſubſcribed.
Little difficulty would have been found to procure money for paying
off, in the ſpace of a few years, thoſe annuities which remained un-
fubfcribed. It was therefore refolved, to puniſh fuch as fhowed a dif-
pofition, by their tardy acceptance, to defeat ſo beneficial a propoſal to
themſelves and the public. Accordingly, a bill was brought in, by
which the fecond fubfcribers were reduced from 3 to 3 per cent. at
December 1755; two years fooner than thofe proprietors who had fig-
nified their affent to the original propofal. Above eight millions, ex-
34 Printed by J. Oſborn, anno 1750. In this tract, the diſtinction between a public
and private creditor, is taken notice of. "The latter (he fays) has a right to demand
"his money when he wants it, which the creditor of the public cannot do." P. 7.
He was alſo the author of another excellent tract, publiſhed on the fame ſubject, anno
1737, entitled, "Reafons for the more fpeedy leffening the National Debt, and taking
"off the moſt burthenfome of the Taxes."
clufive
OF THE BRITISH EMPIRE.
113
35
clufive of the India and South Sea ftock were fubfcribed on theſe
reduced terms; and the remainder, amounting to three millions and a
half, was paid off by new loans at 3 per cent., and by the produce of
the finking fund, "Thus (fays an intelligent writer), thefe acts were
"paffed, which received their currency from the fair character, both
"for knowledge and integrity, of that diſtinguiſhed patriot Sir John
"Barnard, whoſe concurrence with the miniſtry, procured fuch a quick
paffage through the Houſe to the laws themſelves, and whofe judg-
ment, in matters of that nature, has for many years had fuch weight
"with the public, that the fuccefs of the meaſure much depended upon
"his affiftance 36 ""
"C
66
The nature of this great operation, will appear in one view from the
following ftate:
1. Bank ftock
2. Eaft India ſtock
3. South Sea ftock
1. Subfcription.
£ 8,486,800 o o
11
4. South Sea annuities
5. Bank annuities
15,335,740 5 0
14,857,455 18 4
6. Annuities on the plate
act
126,500 0 0
Firſt fubfcription
Second ditto
2. Subſcription
and pofterior acts.
3,200,000 o o
86312
3,662,784 8 62
6,026,785 0 5
2,714,117 18
Unfubfcribed.
2,276,893 11 .7
830,898 4 6
Unfubfcribed
£38,806,496 3 4
15,606,937 6 11
£ 54,413,433 10 3
3,290,041 16 I
£57,703,475 6 4
3,250 o o
182,250 0 0
15,606,937 6 11 3,290,041 16 1
As this was the laſt important reduction that took place, it may not
be improper to give a general view of the three great operations of that
nature, with fome obfervations upon the queſtion, how far fuch meaſures
ought to be adopted.
35 The South Sea Company, however received (in confequence of 24 Geo. II.
cap. 11.) intereſt upon their capital of 3,663,784% 8 s. 6d. at the rate of 4 per cent.
until the 25th December 1757.
36 See a difpaffionate remonftrance on the nature and tendency of the laws now in
force, for the reduction of intereft. Printed anno 1751, p. 11 and 16.
▸
[P]
GENERAI.
114
REVENUE
HISTORY
PUBLIC
PUBLIC
OF
OF THE
THE
GENERAL VIEW of the Principal Reductions which have taken
place in the Intereſt of the Public Funds.
1. REDUCTION.
To the reduced intereft of various funds, from 6 to 5 per cent.
anno 1717
2. REDUCTION.
£324,455 10 10
1. To the reduction, by the bargain with the South Sea Com-
pany, from 5 to 4 per cent. commencing Midfummer
1727
2. To the reduction on part of the debt due to the Bank at
ditto, in conſequence of a ſeparate agreement, excluſive of
the four millions purchaſed from the South Sea Company
3. REDUCTION.
1. To various annuities, reduced from 4 to 3 per cent. at dif-
ferent periods, from Dec. 1750 to ditto 1757, including
only the annuities fubfcribed, or afterwards admitted
2. To 2,100,000, borrowed at 3 per cent. to pay certain
unſubſcribed 4 per cent. South Sea annuities
339,631 3 10
37,750 5 61
544,134 6 8
21,000 o o
£1,266,971 6 11
For the propriety of fuch reductions, Sir John Barnard has ably con-
tended; nor is it poffible to ftate the arguments in their behalf in a
clearer light.
<<
66
«
"When the nation (fays he) is under a neceffity of raiſing money,
more than can be fupplied by taxes paid within the year, they mort-
gage fome particular taxes for payment of the intereft of a fum of
money borrowed; and they are obliged to give ſuch intereft and pre-
miums, as will induce people to lend their money, let the terms be
never fo extravagant; and if the public was always to continue to pay
"the higheft intereft exacted at the times of lending the money, the
"nation muſt become overloaded with debts. But care is taken to make
"it a condition, and a ftipulation, in the very act which borrows the
$6
46
money, that the parliament ſhall be at liberty to redeem the annuity
"attending the debt, by payment of the principal money, in fuch
"manner as the act provides. And the parliament is not tied down
"to redeem the annuity by the produce of the fund only. If that was
"the
OF THE BRITISH EMPIRE.
115
"the cafe, almoſt all the debts contracted, would be for ever irredeem-
"able. But the parliament may raiſe money by what means they can,
"and apply it to the diſcharge of the capital; and whenever money
<<
can be borrowed, cheaper than the intereſt paid by the public, it is
"incumbent on the parliament (with great deference be it ſpoken), and
"what the nation have a right to expect from them, to make uſe of the
"opportunity, in order to give the people in general all the eaſe in their
power 3."
38 99
Notwithſtanding ſuch convincing arguments, and the important cir-
cumftance in favour of reductions, that the public, by adopting fuch
meaſures, is above 1,200,000l. a year lefs loaded than it would other-
wife be, yet a modern author, whofe opinions are defervedly refpected,
afferts, "that the nation is likely to fuffer by them, much more than it
"has gained;" and, indeed, is for making all future loans irreducible".
I am ready to confefs, that ſuch reductions, joined to the inattention
of our financial minifters, to every thing but providing for the preſent
moment, regardleſs of the burdens of poſterity, have been the means of
accumulating an artificial capital to a confiderable amount; but, furely
that circumſtance, however unfortunate, is amply compenfated, by an
addition of 1,200,000l. per annum, to our unencumbered revenue.
66
<<
40
"The favings produced by ſuch reductions (we are told by the fame
author) being expended on current ſervices, tempt to extravagance;
give a fallacious appearance of opulence, and by making our debts
"fit lighter, render us lefs anxious about redeeming them, and leſs
"apprehenſive of danger from their increaſe "." All this may be very
true, yet ſtill the gain of 1,200,000l. per annum, counterbalances theſe
evils. If it tempts to extravagance, it alſo furniſhes the means of waſte,
without additional burdens upon the people; if it makes our debts fit
lighter, it prevents the induſtry of the people from being overloaded
with taxes, and enables them the better to increaſe the wealth and
38 Confiderations, &c. p. 3.
39 See Dr. Price's Tracts on Civil Liberty, p. 201 and 203. The firſt reduction anns
1717, the Doctor thinks, was neceffary in order to begin a finking fund. The others,
he totally diſapproves.
4º Ibid. p. 202. Alfo the conclufion of Sir Nathaniel Gould's Effay on the Public
Debts of this Kingdom.
[P] 2
capital
116
HISTORY OF THE PUBLIC REVENUE
capital of the country; and with regard to the appearance of fallacious
opulence, which it is faid to afford, nothing but real opulence could
furniſh a nation with the ability of reducing the intereſt of its incum-
brances; nor are there any means by which its debts could be more
ſpeedily diſcharged, than by taking advantage of any favourable oppor-
tunity that may occur of diminiſhing the intereft, and applying the
favings, thus obtained, to the payment of the capital.
66
The poſition above mentioned, feems to have been founded upon a
principle contained in the learned author's treatiſe on reverfionary
payments; in which it is faid, "That it is of lefs importance what
"intereſt a nation is obliged to give for money; for the higher the
"intereft, the fooner will a finking fund, properly applied, pay off the
principal **."
This idea has been already fully confidered, and in my
apprehenſion, folidly anſwered by two writers who have animadverted
upon it.
They have urged, that there are certain bounds to the
refources of all ſtates, beyond which they cannot go without ruin. That
if a nation owes a hundred and forty millions, and its reſources can only
furniſh fix millions towards paying the intereſt, and diſcharging the prin-
cipal, if the rate of intereft was 6 per cent., it muſt become immediately
bankrupt. Whereas, if by any means the intereft came to be reduced
from 6 to 3 per cent., it could not only diſcharge the intereft, but could
alſo, annually, diminiſh the capital. Hence, it appears, that a nation
may be fo circumftanced, that the reduction of intereſt may be of fuch
importance, that its very exiſtence may depend upon it “.
There is one circumftance, however, that cannot well be difputed;
namely, that too little attention has been paid to the reduction of the
capital. In the whole hiftory of our finance, there is not a ſingle at-
tempt of that nature to be met with, except the compulfatory diminu-
tion of the bankers debt in the reign of King William; and that went
both to the principal and intereſt. It is to that ſpecies of reduction,
therefore, to which our views muft now be extended, as the beſt means.
4¹ Obfervations on Reverfionary Payments, edit. 183, vol. i. p. 187. In the first
edition of that work, anno 1771, inſtead of less, the Doctor had ſtated, that it was of little
importance; and in the firſt edition of the Appeal on the Subject of the National Debt,
the intereſt paid upon loans, is repreſented to be a matter of little or no conſequence.
42 Remarks on Dr. Price's Obfervations on Reverfionary Payments, &c. printed for
J. Lowndes, anno 1782, p. 23. and Remarks on his Appeal, p. 37-
of
OF THE BRITISH EMPIRE.
117
of putting our revenue in good order, and of retrieving that credit, which
is ſo likely to be overwhelmed by artificial, as well as real burdens.
When the reduction was propofed anno 1749, there were two important
queftions which were the ſubject of much diſcuſſion. 1. Whether the
ſaving ſhould be unalienably applied to the diſcharge of the capital? Or,
2. Whether taxes to that amount fhould be taken off?
We find, in the tract attributed to Sir John Barnard, that many of
the creditors were willing to ſubſcribe, provided the intereft thus re-
duced, was tied down to the payment of the principal, and could not
by any means be diverted from it; and that excellent citizen himſelf,
declares, that the beſt uſe to be made of the finking fund, is to tie down
abſolutely a good part of it to the payment of the debts **. But he is at
the fame time of opinion, that this is not the only good uſe which may
be made of it; nay, he goes fo far as to affert," that to whatever uſe
"the finking fund may be applied, the nation muſt be benefited. That
"when part of it is appropriated to the current fervice of the year, it
prevents ſo much being raiſed by new taxes; and that it is beſt to be
"in poſſeſſion of the intended ſavings, before the uſes be determined.”
Unfortunately, however, when once the favings were fecured, no
ſteps were taken to tie down the inviolable appropriation of ſo conſider-
able a furplus, for the extinction of our incumbrances.
Nor did another plan, agitated at that time, meet with a better fate.
It was urged, with confiderable ſtrength of argument, that by ſuch a
reduction, the income of the creditor was curtailed; and yet his expences
continued the fame; whereas, if the taxes, which enhance the price of
every commodity were taken off, the lofs which the native reſident
creditor fuftained, would be greatly diminished, and the nation in
general would be relieved from many of thoſe burdenfome duties which
check its induſtry and commerce, and by which, more than double the
fum that is paid to the exchequer, is extracted from the pockets of the
people **.
44
Every friend to the intereft of this country will regret, that one or
other of theſe meaſures was not adopted. If an unalienable finking
43 Confiderations, &c. p. 28.
44 See a difpaffionate Remonftrance on the Nature and Tendency of the Laws now in
force, for the Reduction of Intereft, p. 23.
fund
鲔
​118
HISTORY OF THE PUBLIC REVENUE
Mr. Hooke's
plan.
An. 1750.
fund had been eſtabliſhed, it would have been fully aſcertained before
this time, how far fuch a plan is entitled to all the praiſes which have
been laviſhed on it; or if taxes to the amount of above half a million
had been taken off, the effects of diminiſhing the burdens of the people,
would not have been at this hour problematical. Every difficulty with
regard to the proper application, or the entire abolition of a finking
fund, would have been removed; and the ſteps now to be purſued,
would have reſted, not on arguments (which are too often fallacious),
but on experience, which cannot err.
It would be improper to conclude this ſubject, without taking notice
of a very important circumſtance; namely, that the plan propofed in
1749, for reducing the intereft of the funds, was as loudly exclaimed
againſt, as being contrary to the faith of parliament, and likely to
deſtroy the whole credit of the nation, as any meaſure could well be.
When the ſtockholders were affembled to take it into their confidera-
tion, it was generally reprobated. The Bank refuſed its confent; the
Eaſt India Company were greatly diſſatisfied"; and from the account al-
ready given, it appears, how many other difficulties it had to ſtruggle
with. By this example, our miniſters ſhould be encouraged, not to be
alarmed by groundleſs clamour, nor terrified from carrying uſeful mea-
fures into effect, from ideal apprehenfions, that public credit is of ſo
tender and delicate a nature, that it cannot bear the flighteft touch, or
minuteſt alteration. If that had been the cafe, our credit could never
have furvived the operation we have been confidering.
There is nothing farther, of any great importance, connected with
the preſent fubject, during the reign of George II., which deferves to
be particularly taken notice of; except Mr. Hooke's admirable Effay
on the National Capital, and the plan that he propofed for diſcharging
the_national debt.
The debt, which then amounted to nearly eighty millions, this inge-
nious author calculated was not a twelfth part of the national capital, nor
the annual intereſt of it at 4 per cent., a thirtieth part of the national
income. To pay off, therefore, fo flight an incumbrance, when com-
• Diſpaffionate Remonftrance, p. 29. Annotations on Sir John Barnard's Tract,
p. I. 16, &c.
3
pared
OF THE BRITISH EMPIRE.
119
pared to the national capital, he contended was of lefs confequence to
the community than was generally imagined; and the debt, he afferted,
might be increaſed to double the fum without any real danger of a na-
tional bankruptcy. But, as others might be of a different opinion, he
added a plan well entitled to the moſt mature confideration.
"Let the eighty millions debt be divided into eighty equal parts of a
"million each, to be paid off feverally, by an equal number of fepa-
rate and independent claſſes of ſubſcribers, whofe reſpective conſti-
tuents fhall, in confideration of fuch fubfcriptions, be jointly and fe-
"verally intereſted in an equivalent annuity, to be granted to each clafs,
"for the term aforefaid, with benefit of furvivorſhip.
66
(C
"Let it be enacted, then, that the intereft of one million, at
"three one-half per cent., be converted into a capital annuity of thirty-
five thousand pounds, and granted, for ninety-nine years abfolute, to
any body or claſs of ſubſcribers, who, in confideration thereof, will
"advance the ſum of one million towards diſcharging fo much of the
"national debt.
“That the one million, ſo to be ſubſcribed, be divided into four thou-
fand parts or fhares of two hundred and fifty pounds, and the capital
"annuity of thirty-five thousand pounds, into four thousand leffer an-
"nuities of eight pounds fifteen fhillings each, anſwerable to the faid
"number of fhares, and veſted in the individuals of each clafs, in
proportion to the number of ſhares ſubſcribed by them ſeverally and
"reſpectively.
66
66
"That every perfon fubfcribing two hundred and fifty pounds, or
one ſhare, be entitled to one of the faid leffer annuities during the life
"of any perſon he ſhall nominate, fubject to the limitation in the faid
grant, and fo in proportion to any greater number of fhares, pro-
"vided always, that the number of his nominees be ever equal to the
"number of his fhares.
66
"That, in confideration of his finking the principal money, every
"fubfcriber be further entitled to fuch annual augmentation of his an-
45 See an Effay on the National Debt and National Capital, by Andrew Hooke, Efq.
Printed for W. Owen, anno 1750. P. 44.
"nuity,
→
120
HISTORY OF THE PUBLIC REVENUE
nuity, or annuities, as fhall, from time to time, accrue by cafualties of
"mortality among the nominees of fuch clafs; fo that, before the ex-
"piration of the original term, the whole capital annuity of thirty-five
"thousand pounds may veft in fuch fubfcriber or fubfcribers, or his or
"their repreſentative, as the cafe fhall happen, whoſe nominee, or no-
"minees, fhall be the laft furvivor, or furvivors, of the faid clafs.
"L
66
"That the government creditors have the preference to all other fub-
ſcribers, for ſo much principal money as fhall, at the time of ſuch
ſubſcription, be actually and bona fide due to them from the crown;
"and that, notwithſtanding the claffes, as fuch, are, by this plan, to
"be independent of each other, yet, that individuals may become fub-
"fcribers in as many claffes as they pleaſe, and their nominees in one
"claſs be nominees in every other clafs, as they ſhall think fit. ¯And
laftly,
66
cr
<<
<<
"That the government, on payment of the capital annuities of
thirty-five thousand pounds to the feveral claffes, be abfolutely dif-
charged from all future claims of individuals, touching their reſpec-
tive fhares, proportions, and intereſts, therein; and that all matters
"relating thereto be tranſacted among themſelves, and determined by a
court of directors, to be elected and appointed in fuch manner as
"fhall be thought fit, who, by law, ſhall be fully authorized and em-
"powered to make the reſpective dividends, and, from time to time,
adjuſt all claims thereto; fubject, nevertheleſs, to an appeal to the
"Lords of the Treafury, who, in a fummary way, fhall finally hear
"and determine the fame *"
66
47 "9
It is in general to be remarked, on every plan that has been propoſed
for paying off the whole of the national- debt, with the voluntary con-
fent of the creditors, that no one ſcheme will fuit the ideas of every in-
dividual of which that numerous body is compofed. Each différent
fpecies of ftock has its refpective friends and favourers. Some prefer
perpetual, others temporary annuities. One fet of men look no farther
than themſelves; whilft another is anxious to fecure fplendor and opu-
lence to their pofterity. And in regard to Mr. Hooke's fcheme, as no
inconfiderable part of our public funds belongs to corporations, to whom
47 Eſſay, p. 46.
an
OF THE BRITISH EMPIRE.
121
an annuity of 99 years would in no refpect be eligible, it is probable,
that nothing but compulfion would induce them to agree to fuch a pro-
pofal.
But though it is liable to theſe objections, when carried to an ex-
treme, yet, on a more limited ſcale, and with fuch alterations as would
be ſuitable to the preſent ſtate of our funds, the plan might be tried
with perfect fafety to the public. Though borrowing money on tem-
porary annuities is wretched policy in time of war, when the ftate is in the
power of the money-lender; yet, in a time of peace, the lender is the fer-
vant of the borrower, and better terms may be procured. And if there
were a ſet of men ſpecially appointed for the fole purpoſe of diſcharging
the incumbrances with which the nation is loaded, great advantage might
be reaped, by embracing favourable opportunities of altering the nature
and form of our fecurities, in the manner the moſt advantageous to the
public, and the beſt calculated to gratify the views and wiſhes of indi-
viduals.
At the concluſion of the war, which ended anno 1762, the unfunded George III.
debt amounted to about fixteen millions. Until that unfhapen mafs
was brought into fome form, no effectual fteps could be taken for di-
miniſhing our incumbrances. But when that object was accompliſhed,
no good reafon can be affigned, why fome effectual fyftem was not
purſued for bringing our finances into good order. A more favourable
opportunity never exifted. At firft, indeed, our funds (for reafons
which are ſtated by an excellent political author) did not rife in the
fame proportion that they did after the peace of Aix la Chapelle: but
wealth abounded in the country; the value of the flocks was increaſ-
ing every day; and mortgages were obtained, for immenfe fums, on
private fecurity, at 3 and a half per cent. Theſe profperous times, how-
ever, were fuffered to pafs away unheeded, amidſt the fquabbles of
party.
During the late peace, 10,739,7934. of debts, funded and un- Debtpaid off.
funded, were paid off". But that reduction did not take place from
favings out of the ordinary revenues of the ſtate: for it is calculated,
43 Polit. Econ. vol. ii. p. 399.
*) Dr. Price's Tracts on Civil Liberty, p. 177.
[Q]
by
122
HISTORY OF THE PUBLIC REVENUE
by a moſt reſpectable author, that above five millions of that fmall di-
minution aroſe from extraneous articles, fuch as the balances in the
hands of different public accountants; the produce of the French
prizes; compofitions for French priſoners; the fum paid by the Bank
for the renewal of its charter; and two millions received from the Eaft
India Company, in lieu of the claim which the public had to the terri-
torial acquifitions, &c. &c.". We were beginning, however, to furmount
our financial difficulties, when the late unfortunate war again threw us
into a gulph of mifery and oppreffion, from which it will be diffi-
cult to emerge, unleſs every individual in the great veffel of the ſtate
lends his moſt ardent and zealous affiftance.
It is propofed to conclude the preſent chapter with a general view of
the funded debts that have been paid off ſince a finking fund was eſta-
bliſhed, and with a few obſervations on the neceffity of making ſome al-
teration in that branch of our finances.
State of the Funded Debt paid off fince the firſt
eſtabliſhment of a Sinking Fund".
Year.
1723
1724
1727
1728
1729
1730
1731
1732.
1733
1734.
ייייייייי
s. Wealth of Nations, vol. ii. p. 555.
[ ]
£ 1,204,786 3 42
333,447 18 4
650,453 2 8:
1,000,000 0 o
1,275,027 17 101
1,000,000
1,000,419 16 4
1,000,000 0
ة
913,115 15 3%
86,884 4 8
£8,464,134 18 7
I
s' Prior to the year 1723, the finking fund was applied to cancelling exchequer bills,.
and other unfunded debts.
1736.
OF THE BRITISH EMPIRE.
123
Year.
1736
1737
1738
1751
1752
1765
1766
1767
1768
1769
1770
1772
1774
1775
ייויוויזיייויי
1
Brought over £8,464,134 18
52
1,000,000
1,000,000
1,000,000
оо
оо
368,771 2
4
821,270 13 9
870,888 5 5
870,888 5 51
2,616,776 10 II
1,750,000
875,000
1,500,000
1,500,000
1,000,000 O
1,000,000 。 o
£24,637,729 16 6
7
It is unneceffary to trouble the reader with an account of the un-
funded debts which have been diſcharged, and the manner in which
the finking fund has in general been expended, as that ſubject alone
would require a volume to elucidate, and may be feen in another work
dedicated to that ſpecial purpofe". We fhall now, therefore, proceed
to confider that important and intereſting queſtion-What is the beſt
mode of applying the furplus revenue of a ſtate?
There are two methods which a nation might purfue, and by adopt-
ing either of which, the funding fyftem might be carried on without
much inconvenience to the public. The firft is, employing the furplus
of its revenues in promoting fuch meaſures as may augment its wealth,
52 The fums put down in the years 1751 and 1752, were to diſcharge exchequer bills
iffued to pay off certain annuities unfubfcribed, when the reduction of intereſt took place,
anno 1749.
53 Sir Charles Whitworth's Annual Abstract of the Sinking Fund, to the 10th of
October 1763; printed anno 1764. This, and other ufeful compilations, publifhed by
the fame author, ought to be continued at the public expence.
[Q] 2
population,
Two modes
of employing
a furplus of
revenue.
:
124
HISTORY OF THE PUBLIC REVENUE
1 Firft mode.
Encouraging
private accu-
mulation.
population, induſtry, and commerce: the fecond, employing the ſame
furplus in a perpetual diminution of its public incumbrances. By the
firft, public debts are rendered lighter and more fupportable; by the fe-
cond, their accumulation is prevented.
Whoever confiders the financial hiftory of this country, muſt be
aftoniſhed at the immenfe refources it has poffeffed, and the great
wealth which has been amaſſed in it, by the induſtry of its inhabitants.
It is, therefore, a curious fubject of political ſpeculation, whether the
furplus of its revenue, inftead of being employed in diminiſhing its
debts, would not have been better expended in the encouragement of
induſtry; in promoting the cultivation of the foil, and in extending
commerce and navigation: if, for example, twenty-four millions,
which have been applied to diſcharge our public debts, had been dedi-
cated to fuch beneficial public purpoſes, whether the nation would not
have been, at the prefent moment, in a richer and more flouriſhing
fituation?
The mercantile fyftem, as it has been called, has received fuch a blow
from the writings of a refpectable modern author, that it is with
confiderable diffidence we venture to fuggeft the poffibility of its being
extended to advantage. But the happieft theory, fupported
by the
moſt plauſible arguments, may be invalidated by a ſingle fact. Not-
withſtanding every objection which has been urged againſt this ſyſtem,
"though its mean and malignant expedients have diminiſhed, inftead
"of increaſing, the whole quantity of manufacturing induſtry main-
"tained in Great Britain; though it difcourages the improvement of
"land, and hurts the intereft of every order in the ftate, to promote
"the little intereft of one little order of men; nay, though it is un-
"favourable to the revenue of the fovereign";" yet, with all theſe
diſadvantages, the country has flouriſhed under it. Its riches have
multiplied without bounds; its revenue, in less than a century, has
increaſed about twelve millions per annum; nor has any one attempted
to affign any other reaſon for all this proſperity, but the commercial
encouragements which have been enacted by the legislature, and the at-
54 Wealth of Nations, by Dr. Adam Smith, vol. ii.
55 Ibid. vol. ii. edit.. 1. p. 217, 218, 219, and 497.
tention
OF THE BRITISH EMPIRE.
125
tention which has been fhewn to promote the induſtry and exertions of
the people.
Among the regulations of the mercantile fyftem, none feems to
have been more unjustly reprobated, than the meaſures it has propofed
of employing fome part of the furplus of the revenue in promoting
induſtry where induſtry is unknown, in bounties upon the exportation of
our commodities, or in the encouragement of uſeful undertakings, which,
without ſome public affiſtance, could not be attempted.
The northern parts of Scotland are furrounded by an ocean, in
which the moſt valuable fiſheries might be carried on with profit. But
the inhabitants of thoſe diſtricts, ignorant of the bleffings of induſtry,
unacquainted with the means of conducting commercial undertakings
fucceſsfully, and without capital to enable them to begin, have long
enjoyed this natural advantage, without reaping from it any real bene-
fit. How foon might the fcene be altered, were proper encourage-
ment given to their exertions! Nor would the general wealth of the
country alone be augmented. The addition that might be made to
the maritime ftrength of the kingdom, by adopting fuch a meaſure,
would be ineftimable.".
England has been under the neceffity of impofing upon itſelf ſuch a
heavy load of taxes, that neither the products of its land, nor all the ma-
nufactures of its people, can ftand a competition with thoſe of other
powers in foreign markets. The exportation therefore of grain, and of
fome other articles, has met with encouragement from the legiſlature ;;
and bounties have been given, "which have operated, like the warmth
"which, in a human body, one member communicates to another, when:
"it ftands in need of it ""."" Were thefe bounties to be increaſed from
the furplus of the national revenue, how much might not agriculture be
extended; to what a height might not our commerce be raiſed; and
how foon might not Great Britain become the emporium of Europe!
36 Some bounties have been given to buffes and on herrings exported, but the expence
has been great without any real benefit. The high price of falt, proper for the purpoſe
of curing, and the difficulty of obtaining cafks in a diftant and indigent country, are the
principal obftacles to the fuccefs of the fishery, and to remove which the legislature ought
to be the more attentive, as it may be done at little expence..
57: Paftlethwayte's True Syftem, vol. ii. p. 380. -
1
But
126
HISTORY OF THE PUBLIC REVENUE
2. Mode.
Public accu-
mulations.
But the queftion to which the reader's attention is more particularly
called at preſent, is, if the fum that has been taken from the finking
fund, and applied to the diſcharge of our funded incumbrances, had
been expended folely in making Great Britain one populous and culti-
vated field or garden; whether the nation could not have borne the
whole debt with lefs difficulty than it now can fupport the debt as it has
been reduced? Twenty-four millions laid out in promoting the im-
provement and cultivation of the foil, would have rendered every acre
in the kingdom productive of fome valuable article. The whole country
would have exhibited one uninterrupted fcene of labour and fertility.
No more well-founded complaints would be heard, that the number of
the people had decreaſed, that the poor wanted encouragement to in-
duſtry, or the means of employment.
$8
But laying aſide the farther difcuffion of a fubject which it is pro-
bable the conduct of a neighbouring kingdom will foon clear up by the
fureft of all tefts, that of experience 5; let us next fee by what argu-
ments another mode of applying the furplus revenue has been fup-
ported.
There is no axiom in Euclid more ſelf-evident than this, that if the
debts of a nation are never diminiſhed, and if no fteps are taken to pro-
mote the increaſe of its wealth, it muſt ſoon be involved in the greateſt
mifery and diſtreſs. If the furplus of its revenue therefore cannot
fafely be expended in the encouragement of its agriculture, its induſtry,
and its commerce; "if the fovereign, in attempting to perform fuch a
"duty, is expofed to innumerable delufions; and if directing the induftry
"of the people towards employments the moſt ſuitable to the general
"intereſts of ſociety, is a taſk for which no human wifdom or know-
"ledge could ever be ſufficient," nothing then remains, but to ftrain
every nerve to leffen the public debts by the annual application of a fum,
not like the preſent finking fund, fometimes to one purpoſe, and fome-
times to another, but invariably to the diſcharge of our incumbrances.
To prove how efficacious fuch a fund, would be, let it only be confi-
dered, that if a million were inviolably appropriated, it would diſcharge
58 In Ireland the furplus of the revenue is in general applied to fuch public purpoſes,
and the effects of ſuch a ſyſtem in that country, will eſtabliſh it in Great Britain ſome
years hence; if the example of France does not render the eſtabliſhment of an unalien-
able finking fund abfolutely neceffary.
in
OF THE BRITISH EMPIRE..
127
$8
in the ſhort ſpace of fixty years, a capital of nearly three hundred and
feventeen millions of 3 per cents., at the price of feventy-five per cent. :
confequently, if we were engaged in wars equally expenfive with thoſe
which have taken place for fixty years back, namely, fince the year
1723, which is hardly to be conceived; and if thoſe wars were to coſt
the nation two hundred millions for extraordinary expences, yet, at the
end of that period, we ſhould be one hundred and feventeen millions lefs in
debt, than we are at prefent; and at the end of an hundred and twenty
years, if the ſame plan were perfevered in, the whole of the preſent
national debt would be paid off, together with another additional two
hundred millions, which it might be neceffary to borrow, in the fecond
period of fixty years, for the public defence.
The firſt objection to an unalienable finking fund, is, that it would
be abfurd to employ money in the paying off old debts, if a nation is at
the fame time under the neceffity of contracting new incumbrances.
This argument is too plaufible not to carry with it fome weight. But
the plan may be formed fo as to remove this obftacle, without deftroy-
ing the certain advantages of an unalienable finking fund. Let the
public, in times of emergency, borrow from that fund what money it
can ſpare, but let it at the fame time provide a fund for defraying the in-
tereft of the money that it borrows, giving the finking fund a propor-
tionable ſhare of the new loan. If that rule is obſerved, the public will
not be deprived of ſo important a reſource, whilft the certain effects of
an unalienable finking fund will not be diminiſhed. In the ſpace of
fixty years, it will be poffeffed of a capital of three hundred and ſeven-
teen millions of 3 per cents., and it muſt be indifferent to the public,.
whether that capital confifts of old debts,. or of more recent burdens.
By fuch a plan alfo, a very plaufible objection is removed, that it
would be impoffible to protect fuch a fund from the rapacious vio-
lence of minifters. For, let it be made ufe of when the public fervice
require it; but at the fame time, let not its beneficial effects be put an
end to, by annihilating the fum that is taken from it. Render that
fum productive; let it enjoy a certain annual intereft, and the proceſs.
cannot be defeated.
59 Maferes on Life Annuities, vol. i. p. 294.
The
128
HISTORY OF THE PUBLIC REVENUE
(6
The ſecond objection refts upon the many evils with which a load
of taxes is accompanied; and which an unalienable finking fund has in
fome degree a tendency to accumulate. It has been urged, " that
taxes are taken, not out of a dead, barren, unproductive fund, but out
"of the moft prolific of all funds; out of the national ſtock of induſtry,
"and taxable capacity. They are a part of that ſtock, which, if
"left in the hands of the individual, would, at the end of the year,
"have produced him an intereft, which intereft would have again
"become the parent of another intereft, and would have accumulated juſt
as much fafter in his hands, than in the hands of the public, as the
"rate of intereſt which he may make in his private affairs, is fuperior
"to that in the public funds. Adding at the fame time to his fide of
"the account, the expences of collection and management on the part
"of government:" and we are told," that the people lofe compound
"interest of every fhilling which they fend into the exchequer; and
"that too at a much higher rate of intereft in general, than can poffibly
"be made of it after it has got hither “.
60 99
So plauſible an objection, nothing but experience could refute. But
it is now indifputably afcertained, that this country was poffeffed of re-
fources which rendered all apprehenfions of that nature ideal. Who can
now doubt, that an additional fum fufficient to have extinguished the
whole of our preſent debt might have been annually raiſed in former
times without oppreffing the people? It would have required, it is true,
more popular or abler minifters. They muſt have facrificed, perhaps,
fome ſhare of their own emoluments, to have rouzed a proper fpirit in
the nation; and the public muſt have been convinced, that the manage-
ment of their affairs was in the hands of men who had nothing but their
intereſt at heart, and who had devoted their time and labours for the be-
nefit and falvation of their country. In fuch a cafe, it will be hardly dif-
puted, that no backwardneſs would have been found in the Britiſh nation
in fubmitting to any tax that would have been neceffary for that purpoſe.
Befides, taxes do not alone affect the induftrious part of the commu-
nity. When wifely impoſed, they in general fall upon the idle con-
fumer, who ſeldom thinks of making compound intereſt of the money he
might fave, if no ſuch tax exifted. I fay might fave: for if the tax did
9 Remarks on Dr. Price's Appeal to the People, printed anno 1772, p. 8, and 10.
2
not
OF THE BRITISH EMPIRE.
129
not exiſt, the money, inſtead of being faved, would probably be wafted
in the purchaſe of luxurious foreign fuperfluities. A fmall additional
duty upon porter, an additional land-tax of only fix-pence in the
pound, or (according to Dr. Price), a tax upon celibacy, impofed at the
acceffion of the preſent Royal Family, would, before this time, have
extinguiſhed a confiderable portion of our debts. What poffible evil
could have arifen from any of theſe taxes? Would lefs porter have
been confumed; fewer of our fields been cultivated; or would the popu-
lation of the country have been decreaſed? Every one muft anfwer thefe
queſtions in the negative.
The only remaining objections to an unalienable finking fund, are
the power which it is fuppofed it would put into the hands of the
miniſter; the encouragement that it would afford to ſtock-jobbing; and
the fluctuations which it would occafion in the price of the funds,
according as fmall or great fums were fent into the market.
But theſe objections are eaſily removed. For in the firſt place, fuch
a fund ought to be confided to the care of commiffioners appointed for
that ſpecial purpoſe, and not entruſted to any of thoſe fluctuating
boards which at prefent exiſt. Such commiffioners ought to conſiſt
partly of certain great officers of State, who ſhould be entitled, ex officio,
to a feat at the new board (to act occafionally as a check upon the effi-
cient commiffioners), and partly of reſpectable individuals, to whom the
real management of the buſineſs ſhould be committed. To give the
latter every chance for permanency, the number ſhould be ſo few, that
their removal could be no object to a party in oppofition, fhould it
chance to prove victorious. The money to be applied for purchaſing
ſtock, or diſcharging any particular branch of the funds, fhould be laid
out monthly, and not brought at once into the market; and before
any ſtock was purchaſed, public intimation of it fhould be iffued:
every ſtockholder ſhould be invited to give in his propoſals for the ftock
he held; and the commiffioners fhould be tied down, under the ſtricteſt
penalties, to accept of the loweft offer, or to divide the fum to be laid
out proportionably among thoſe whofe terms were equal.
Under theſe regulations, unalienable finking funds may be ſafely and
uſefully eſtabliſhed.
[R]
Whoever
130
HISTORY OF THE PUBLIC REVENUE, &c.
Conclufion of
this Chapter.
Whoever has attentively confidered the ſubject treated of in this and the
preceding Chapter, will probably be of opinion, that our preſent diſtreſſes
are in a great meaſure owing to our want of experience in regard to the
funding fyftem. Neither our miniſters nor the public, had the example
of any ſtate, in ancient or in modern times, to guide them through ſo in-
tricate a labyrinth. The object, therefore, they kept in view, was
merely to relieve the preffure of the preſent moment, truſting that poſte-
rity would find out what remedy ſhould be applied, to prevent a ruinous
accumulation of the burden. But had we now the fame courfe to
run, our ſtateſmen, inftructed by paſt events, would find little difficulty
in conducting the greateſt and moſt complicated operations of finance;
nor would the public at large be at a loſs to know, what meaſures were
neceſſary to be taken, for the general intereft of the community,
1
3
END OF PART II.
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