The total amount of the national debt at the commencement of the seven year's war, in 1756, was 74,980,886l; and as the increased expenditure, beyond the charge of preceding wars, which is one of the inevitable consequences of perpe tuating taxes, rendered it necessary to borrow larger sums than had ever be fore been raised on loan, the debt in creased rapidly, and at the end of the war, including the loan of 1763, and a valution of the terminable annuities, it amounted to 136,367,7574, exclusive of the unfunded debt.
After the peace in 1763, the income of the sinking fund increased considera bly. The causes of this were, partly the falling in of life annuities, and the greater productiveness of the taxes arising from the increase of commerce and population. But the principal cause was, the falling in of the interest of about ten millions and a half of the public debt, which was dis charged during the twelve years of ending with 1775. This diminution of the public debt could not, however, be said to be made by the fund, as other sources supplied the principal part of the amount : these were, a contribution from the East India Company of 400,0004 per annum, begun in 1768, and 'continued for five years : the profits of ten lotteries ; the composition agreed to be paid by the King of France for the maintenance of French prisoners ; monies arising from the sale of French prizes taken before the declaration of war, and other extraor dinary -receipts, amounting in the whole. to above eight millions. The sinking fund, therefore, did not pay off more than two millions and a halt; the rest of its produce having been employed in bearing the ex peaces of the peace establishment, which during that period were not much less than double what they had been in any former period.
At the commencement of the American war, then considered as litte more thah a partial insurrection, which would be speedily suppressed, the resources and perseverance of the colonists were muck underrated : it was not, therefore, deemed necessary to incur any great expense for the purpose of subduing them ; but when the interference of France extended th operations of the war in all directions, ve serious exertions became requisite, and the expenditure was in consequence aug mented far beyond its amount in former wars. The sums which it was necessary to borrow thus increased from two millions to five, seven, and twelve millions, and in 1782 the loch was thirteen millions and a half. The apparent magnitude of the debt was also much increased, by th practice of entitling the subscribers to t loans to a larger oapital of stock than th money advanced, by which means, for the total sum of 75,500,0004 borrowed during this war, including the loan of 1784, a debt was created of 97,400,0001. exceed ing the- money borrowed by 21,900,0001. The interest payable on the whole amount ed to 4,119,125/. per annum, being equal to 51.9s. ld. per cent. on the sums, borrow ed. In addition to these sums, a very con siderable amount of navy debt was funded after the conclusion of the war, which, be ing properly part of the expenses of it, makes the total debt incurred by the A merican war amount to 115,267,9921., and
the interest payable thereon per annum.
The total amount of the national debt, funded and unfunded, including a valua tion of the terminable. annuities at their current prices, was, on the 5th January, 1786, 268,100,3791. and the amount of the annual interest 9,512,2321. At this period, the general conviction of the ab solute necessity of some provision being made for the gradual reduction of the, debt, induced government to propose, the establishment of a new sinking under regulations which rendered it a considerable improvement on the fund formerly established for the same pur; pose. But although the revenue was represented as sufficiently productive to furnish a considerable surplus for this purpose, which, with a few new taxes,, would amount to a million per annum,, it wa' found necessary in 1789 to bor row, towards the supplies, 1,002,1404 on a tontine, and 187,0001. on short annui-; ties. 4 The total amount of the national debt as it stood in 1792, being the year pre vious to the war with the French re public, was, according to the officia statement, 238,231,248/4 but, includin the value of the terminable annuities, add the amount of the unfunded debt, the total was 268,267,2721. the annual interest and allowance for management on which amounted to 9,752,6731. From this amount, however, a deduction of more than eight millions is to be made for the stock which had been bought up at that period by the commissioners for the reduction of the debt. The mag nitude of the sums borrowed in the course of the war which began in 1793, and the circumstance of the loans be ing chiefly made on 3 per cent. stock, caused an unparalleled increase of the national debt, attended with a great de preciation of the current prices of the public funds, which obliged the govern ment to pay a very bight interest for the money borrowed. In the years 1797 and 1798, it was found impracticable to raise the. sums required without paying up wards of 6 per cent. interest, being a higher rate than had been paid on any money borrowed for the public service since the reign of Queen Anne. In the latter years of the war, large sums be ing levied by extraordinary taxes, the amount of the loans was rendered somewhat less than it otherwise must have been ; they were still, however, of unprecedented magnitude ; and in 1802, after the conclusion of the war, it was found necessary to borrow twenty-five millions more, to make good expenses of the war which had not been provided for. The total amount of the loans of this war was 200,500,0001. by which a debt was created of 310,424,3231. ; to this must be added the amount of stock creat ed by funding Navy and Exchequer bills, making the total amount of fitnded debt incurred by the war 351,125,7301. and the interest payable thereon 11,676,1441. per ann. This is exclusive of the Impe rial loans, which there can be little doubt will remain a: perpetual burthen to this country.