chronological history (Lond. 1659.) informs us, that it was first
moved for, 28 Mar. 1643, by Mr Prynne. And it appears from the
journals of the commons that on that day the house resolved itself
into a committee to consider of raising money, in consequence of which
the excise was afterwards voted. But Mr Prynne was not a member of
parliament till 7 Nov. 1648; and published in 1654 "A protestation
against the illegal, detestable, and oft-condemned tax and extortion
of excise in general." It is probably therefore a mistake of the
printer for Mr Pymme, who was intended for chancellor of the exchequer
under the earl of Bedford. (Lord Clar. b. 7.)]
[Footnote k: Com. Journ. 17 May 1643.]
[Footnote l: Lord Clar. b. 7.]
[Footnote m: 30 May 1643. Dugdale of the troubles, 120.]
[Footnote n: Ord. 14 Aug. 1649. c. 50. Scobell. 72. Stat. 1656. c. 19.
Scobell. 453.]
III. I PROCEED therefore to a third duty, namely that upon salt; which
is another distinct branch of his majesty's extraordinary revenue, and
consists in an excise of 3_s._ 4_d._ _per_ bushel imposed upon all
salt, by several statutes of king William and other subsequent reigns.
This is not generally called an excise, because under the management
of different commissioners: but the commissioners of the salt duties
have by statute 1 Ann. c. 21. the same powers, and must observe the
same regulations, as those of other excises. This tax had usually been
only temporary; but by statute 26 Geo. II. c. 3. was made perpetual.
IV. ANOTHER very considerable branch of the revenue is levied with
greater chearfulness, as, instead of being a burden, it is a manifest
advantage to the public. I mean the post-office, or duty for the
carriage of letters. As we have traced the original of the excise to
the parliament of 1643, so it is but justice to observe that this
useful invention owes it's birth to the same assembly. It is true,
there existed postmasters in much earlier times: but I apprehend their
business was confined to the furnishing of posthorses to persons who
were desirous to travel expeditiously, and to the dispatching
extraordinary pacquets upon special occasions. The outline of the
present plan seems to have been originally conceived by Mr Edmond
Prideaux, who was appointed attorney general to the commonwealth after
the murder of king Charles. He was a chairman of a committee in 1642
for considering what rates should be set upon inland letters[o]; and
afterwards appointed postmaster by an ordinance of both the houses[p],
in the execution of which office he first established a weekly
conveyance of letters into all parts of the nation[q]: thereby saving
to the public the charge of maintaining postmasters, to the amount of
7000_l._ _per annum_. And, his own emoluments being probably
considerable, the common council of London endeavoured to erect
another post-office in opposition to his, till checked by a resolution
of the commons[r], declaring, that the office of postmaster is and
ought to be in the sole power and disposal of the parliament. This
office was afterwards farmed by one Manley in 1654[s]. But, in 1657, a
regular post-office was erected by the authority of the protector and
his parliament, upon nearly the same model as has been ever since
adopted, with the same rates of postage as were continued till the
reign of queen Anne[t]. After the restoration a similar office, with
some improvements, was established by statute 12 Car. II. c. 35. but
the rates of letters were altered, and some farther regulations added,
by the statutes 9 Ann. c. 10. 6 Geo. I. c. 21. 26 Geo. II. c. 12. and
5 Geo. III. c. 25. and penalties were enacted, in order to confine the
carriage of letters to the public office only, except in some few
cases: a provision, which is absolutely necessary; for nothing but an
exclusive right can support an office of this sort: many rival
independent offices would only serve to ruin one another. The
privilege of letters coming free of postage, to and from members of
parliament, was claimed by the house of commons in 1660, when the
first legal settlement of the present post-office was made[u]; but
afterwards dropped[w] upon a private assurance from the crown, that
this privilege should be allowed the members[x]. And accordingly a
warrant was constantly issued to the postmaster-general[y], directing
the allowance thereof, to to [Transcriber's Note: duplicate word] the
extent of two ounces in weight: till at length it was expressly
confirmed by statute 4 Geo. III. c. 24; which adds many new
regulations, rendered necessary by the great abuses crept into the
practice of franking; whereby the annual amount of franked letters had
gradually increased, from 23600_l._ in the year 1715, to 170700_l._ in
the year 1763[z]. There cannot be devised a more eligible method, than
this, of raising money upon the subject: for therein both the
government and the people find a mutual benefit. The government
acquires a large revenue; and the people do their business with
greater ease, expedition, and cheapness, than they would be able to do
if no such tax (and of course no such office) existed.
[Footnote o: Com. Journ. 28 Mar. 1642.]
[Footnote p: _Ibid._ 7 Sept. 1644.]
[Footnote q: _Ibid._ 21 Mar. 1649.]
[Footnote r: _Ibid._]
[Footnote s: Scobell. 358.]
[Footnote t: Com. Journ. 9 Jun. 1657. Scobell. 511.]
[Footnote u: Com. Journ. 17 Dec. 1660.]
[Footnote w: _Ibid._ 22 Dec. 1660.]
[Footnote x: _Ibid._ 16 Apr. 1735.]
[Footnote y: _Ibid._ 26 Feb. 1734.]
[Footnote z: _Ibid._ 28 Mar. 1764.]
V. A FIFTH branch of the perpetual revenue consists in the stamp
duties, which are a tax imposed upon all parchment and paper whereon
any legal proceedings, or private instruments of almost any nature
whatsoever, are written; and also upon licences for retailing wines,
of all denominations; upon all almanacks, newspapers, advertisements,
cards, dice, and pamphlets containing less than six sheets of paper.
These imposts are very various, according to the nature of the thing
stamped, rising gradually from a penny to ten pounds. This is also a
tax, which though in some instances it may be heavily felt, by greatly
increasing the expence of all mercantile as well as legal proceedings,
yet (if moderately imposed) is of service to the public in general, by
authenticating instruments, and rendering it much more difficult than
formerly to forge deeds of any standing; since, as the officers of
this branch of the revenue vary their stamps frequently, by marks
perceptible to none but themselves, a man that would forge a deed of
king William's time, must know and be able to counterfeit the stamp of
that date also. In France and some other countries the duty is laid on
the contract itself, not on the instrument in which it is contained:
but this draws the subject into a thousand nice disquisitions and
disputes concerning the nature of his contract, and whether taxable or
not; in which the farmers of the revenue are sure to have the
advantage. Our method answers the purposes of the state as well, and
consults the ease of the subject much better. The first institution of
the stamp duties was by statute 5 & 6 W. & M. c. 21. and they have
since in many instances been encreased to five times their original
amount.
VI. A SIXTH branch is the duty upon houses and windows. As early as
the conquest mention is made in domesday book of fumage or fuage,
vulgarly called smoke farthings; which were paid by custom to the king
for every chimney in the house. And we read that Edward the black
prince (soon after his successes in France) in imitation of the
English custom, imposed a tax of a florin upon every hearth in his
French dominions[a]. But the first parliamentary establishment of it
in England was by statute 13 & 14 Car. II. c. 10. whereby an
hereditary revenue of 2_s._ for every hearth, in all houses paying to
church and poor, was granted to the king for ever. And, by subsequent
statutes, for the more regular assessment of this tax, the constable
and two other substantial inhabitants of the parish, to be appointed
yearly, were, once in every year, empowered to view the inside of
every house in the parish. But, upon the revolution, by statute 1 W.
& M. st. 1. c. 10. hearth-money was declared to be "not only a great
oppression to the poorer sort, but a badge of slavery upon the whole
people, exposing every man's house to be entered into, and searched at
pleasure, by persons unknown to him; and therefore, to erect a lasting
monument of their majesties' goodness in every house in the kingdom,
the duty of hearth-money was taken away and abolished." This monument
of goodness remains among us to this day: but the prospect of it was
somewhat darkened when, in six years afterwards, by statute 7 W. III.
c. 18. a tax was laid upon all houses (except cottages) of 2_s._ now
advanced to 3_s._ _per_ house, and a tax also upon all windows, if
they exceed nine, in such house. Which rates have been from time to
time varied, (particularly by statutes 20 Geo. II. c. 3. and 31 Geo.
II. c. 22.) and power is given to surveyors, appointed by the crown,
to inspect the outside of houses, and also to pass through any house
two days in the year, into any court or yard to inspect the windows
there.
[Footnote a: Mod. Un. Hist. xxiii. 463. Spelm. Gloss. _tit. Fuage_.]
VII. THE seventh branch of the extraordinary perpetual revenue is the
duty arising from licences to hackney coaches and chairs in London,
and the parts adjacent. In 1654 two hundred hackney coaches were
allowed within London, Westminster, and six miles round, under the
direction of the court of aldermen[b]. By statute 13 & 14 Car. II. c.
2. four hundred were licensed; and the money arising thereby was
applied to repairing the streets[c]. This number was increased to
seven hundred by statute 5 W. & M. c. 22. and the duties vested in the
crown: and by the statute 9 Ann. c. 23. and other subsequent
statutes[d], there are now eight hundred licensed coaches and four
hundred chairs. This revenue is governed by commissioners of it's own,
and is, in truth, a benefit to the subject; as the expense of it is
felt by no individual, and it's necessary regulations have established
a competent jurisdiction, whereby a very refractory race of men may
be kept in some tolerable order.
[Footnote b: Scobell. 313.]
[Footnote c: Com. Journ. 14 Feb. 1661.]
[Footnote d: 10 Ann. c. 19. Sec. 158. 12 Geo. I. c. 15. 33 Geo. II. c.
25.]
VIII. THE eighth and last branch of the king's extraordinary perpetual
revenue is the duty upon offices and pensions; consisting in a payment
of 1_s._ in the pound (over and above all other duties) out of all
salaries, fees, and perquisites, of offices and pensions payable by
the crown. This highly popular taxation was imposed by statute 31 Geo.
II. c. 22. and is under the direction of the commissioners of the land
tax.
THE clear neat produce of these several branches of the revenue, after
all charges of collecting and management paid, amounts annually to
about seven millions and three quarters sterling; besides two millions
and a quarter raised annually, at an average, by the land and malt
tax. How these immense sums are appropriated, is next to be
considered. And this is, first and principally, to the payment of the
interest of the national debt.
IN order to take a clear and comprehensive view of the nature of this
national debt, it must first be premised, that after the revolution,
when our new connections with Europe introduced a new system of
foreign politics, the expenses of the nation, not only in settling the
new establishment, but in maintaining long wars, as principals, on the
continent, for the security of the Dutch barrier, reducing the French
monarchy, settling the Spanish succession, supporting the house of
Austria, maintaining the liberties of the Germanic body, and other
purposes, increased to an unusual degree: insomuch that it was not
thought advisable to raise all the expenses of any one year by taxes
to be levied within that year, lest the unaccustomed weight of them
should create murmurs among the people. It was therefore the policy of
the times, to anticipate the revenues of their posterity, by borrowing
immense sums for the current service of the state, and to lay no more
taxes upon the subject than would suffice to pay the annual interest
of the sums so borrowed: by this means converting the principal debt
into a new species of property, transferrable from one man to another
at any time and in any quantity. A system which seems to have had it's
original in the state of Florence, _A.D._ 1344: which government then
owed about 60000_l._ sterling; and, being unable to pay it, formed the
principal into an aggregate sum, called metaphorically a _mount_ or
_bank_, the shares whereof were transferrable like our stocks, with
interest at 5 _per cent._ the prices varying according to the
exigencies of the state[e]. This laid the foundation of what is called
the national debt: for a few long annuities created in the reign of
Charles II will hardly deserve that name. And the example then set has
been so closely followed during the long wars in the reign of queen
Anne, and since, that the capital of the national debt, (funded and
unfunded) amounted in January 1765 to upwards of 145,000,000_l._ to
pay the interest of which, and the charges for management, amounting
annually to about four millions and three quarters, the revenues just
enumerated are in the first place mortgaged, and made perpetual by
parliament. Perpetual, I say; but still redeemable by the same
authority that imposed them: which, if it at any time can pay off the
capital, will abolish those taxes which are raised to discharge the
interest.
[Footnote e: _Pro tempore, pro spe, pro commodo, minuitur eorum
pretium atque augescit._ Aretin. See Mod. Un. Hist. xxxvi. 116.]
BY this means the quantity of property in the kingdom is greatly
encreased in idea, compared with former times; yet, if we coolly
consider it, not at all encreased in reality. We may boast of large
fortunes, and quantities of money in the funds. But where does this
money exist? It exists only in name, in paper, in public faith, in
parliamentary security: and that is undoubtedly sufficient for the
creditors of the public to rely on. But then what is the pledge which
the public faith has pawned for the security of these debts? The land,
the trade, and the personal industry of the subject; from which the
money must arise that supplies the several taxes. In these therefore,
and these only, the property of the public creditors does really and
intrinsically exist: and of course the land, the trade, and the
personal industry of individuals, are diminished in their true value
just so much as they are pledged to answer. If A's income amounts to
100_l._ _per annum_; and he is so far indebted to B, that he pays him
50_l._ _per annum_ for his interest; one half of the value of A's
property is transferred to B the creditor. The creditor's property
exists in the demand which he has upon the debtor, and no where else;
and the debtor is only a trustee to his creditor for one half of the
value of his income. In short, the property of a creditor of the
publick, consists in a certain portion of the national taxes: by how
much therefore he is the richer, by so much the nation, which pays
these taxes, is the poorer.
THE only advantage, that can result to a nation from public debts, is
the encrease of circulation by multiplying the cash of the kingdom,
and creating a new species of money, always ready to be employed in
any beneficial undertaking, by means of it's transferrable quality;
and yet productive of some profit, even when it lies idle and
unemployed. A certain proportion of debt seems therefore to be highly
useful to a trading people; but what that proportion is, it is not for
me to determine. Thus much is indisputably certain, that the present
magnitude of our national incumbrances very far exceeds all
calculations of commercial benefit, and is productive of the greatest
inconveniences. For, first, the enormous taxes, that are raised upon
the necessaries of life for the payment of the interest of this debt,
are a hurt both to trade and manufactures, by raising the price as
well of the artificer's subsistence, as of the raw material, and of
course, in a much greater proportion, the price of the commodity
itself. Secondly, if part of this debt be owing to foreigners, either
they draw out of the kingdom annually a considerable quantity of
specie for the interest; or else it is made an argument to grant them
unreasonable privileges in order to induce them to reside here.
Thirdly, if the whole be owing to subjects only, it is then charging
the active and industrious subject, who pays his share of the taxes,
to maintain the indolent and idle creditor who receives them. Lastly,
and principally, it weakens the internal strength of a state, by
anticipating those resources which should be reserved to defend it in
case of necessity. The interest we now pay for our debts would be
nearly sufficient to maintain any war, that any national motives could
require. And if our ancestors in king William's time had annually
paid, so long as their exigences lasted, even a less sum than we now
annually raise upon their accounts, they would in the time of war have
borne no greater burdens, than they have bequeathed to and settled
upon their posterity in time of peace; and might have been eased the
instant the exigence was over.
THE produce of the several taxes beforementioned were originally
separate and distinct funds; being securities for the sums advanced on
each several tax, and for them only. But at last it became necessary,
in order to avoid confusion, as they multiplied yearly, to reduce the
number of these separate funds, by uniting and blending them together;
superadding the faith of parliament for the general security of the
whole. So that there are now only three capital funds of any account,
the _aggregate_ fund, and the _general_ fund, so called from such
union and addition; and the _south sea_ fund, being the produce of the
taxes appropriated to pay the interest of such part of the national
debt as was advanced by that company and it's annuitants. Whereby the
separate funds, which were thus united, are become mutual securities
for each other; and the whole produce of them, thus aggregated, is
liable to pay such interest or annuities as were formerly charged upon
each distinct fund; the faith of the legislature being moreover
engaged to supply any casual deficiences.
THE customs, excises, and other taxes, which are to support these
funds, depending on contingencies, upon exports, imports, and
consumptions, must necessarily be of a very uncertain amount; but they
have always been considerably more than was sufficient to answer the
charge upon them. The surplusses therefore of the three great national
funds, the aggregate, general, and south sea funds, over and above
the interest and annuities charged upon them, are directed by statute
3 Geo. I. c. 7. to be carried together, and to attend the disposition
of parliament; and are usually denominated the _sinking_ fund, because
originally destined to sink and lower the national debt. To this have
been since added many other intire duties, granted in subsequent
years; and the annual interest of the sums borrowed on their
respective credits is charged on and payable out of the produce of the
sinking fund. However the neat surplusses and savings, after all
deductions paid, amount annually to a very considerable sum;
particularly in the year ending at Christmas 1764, to about two
millions and a quarter. For, as the interest on the national debt has
been at several times reduced, (by the consent of the proprietors, who
had their option either to lower their interest or be paid their
principal) the savings from the appropriated revenues must needs be
extremely large. This sinking fund is the last resort of the nation;
on which alone depend all the hopes we can entertain of ever
discharging or moderating our incumbrances. And therefore the prudent
application of the large sums, now arising from this fund, is a point
of the utmost importance, and well worthy the serious attention of
parliament; which has thereby been enabled, in this present year 1765,
to reduce above two millions sterling of the public debt.
BUT, before any part of the aggregate fund (the surplusses whereof are
one of the chief ingredients that form the sinking fund) can be
applied to diminish the principal of the public debt, it stands
mortgaged by parliament to raise an annual sum for the maintenance of
the king's houshold and the civil list. For this purpose, in the late
reigns, the produce of certain branches of the excise and customs, the
post-office, the duty on wine licences, the revenues of the remaining
crown lands, the profits arising from courts of justice, (which
articles include all the hereditary revenues of the crown) and also a
clear annuity of 120000_l._ in money, were settled on the king for
life, for the support of his majesty's houshold, and the honour and
dignity of the crown. And, as the amount of these several branches
was uncertain, (though in the last reign they were generally computed
to raise almost a million) if they did not arise annually to
800,000_l._ the parliament engaged to make up the deficiency. But his
present majesty having, soon after his accession, spontaneously
signified his consent, that his own hereditary revenues might be so
disposed of as might best conduce to the utility and satisfaction of
the public, and having graciously accepted the limited sum of
800000_l._ _per annum_ for the support of his civil list (and that
also charged with three life annuities, to the princess of Wales, the
duke of Cumberland, and the princess Amalie, to the amount of
77000_l._) the said hereditary and other revenues are now carried into
and made a part of the aggregate fund, and the aggregate fund is
charged with the payment of the whole annuity to the crown of
800000_l._ _per annum_[f]. Hereby the revenues themselves, being put
under the same care and management as the other branches of the public
patrimony, will produce more and be better collected than heretofore;
and the public is a gainer of upwards of 100000_l._ _per annum_ by
this disinterested bounty of his majesty. The civil list, thus
liquidated, together with the four millions and three quarters,
interest of the national debt, and the two millions and a quarter
produced from the sinking fund, make up the seven millions and three
quarters _per annum_, neat money, which were before stated to be the
annual produce of our _perpetual_ taxes; besides the immense, though
uncertain, sums arising from the _annual_ taxes on land and malt, but
which, at an average, may be calculated at more than two millions and
a quarter; and, added to the preceding sum, make the clear produce of
the taxes, exclusive of the charge of collecting, which are raised
yearly on the people of this country, and returned into the king's
exchequer, amount to upwards of ten millions sterling.
[Footnote f: Stat. 1 Geo. III. c. 1.]
THE expences defrayed by the civil list are those that in any shape
relate to civil government; as, the expenses of the houshold; all
salaries to officers of state, to the judges, and every of the king's
servants; the appointments to foreign embassadors; the maintenance of
the royal family; the king's private expenses, or privy purse; and
other very numerous outgoings, as secret service money, pensions, and
other bounties: which sometimes have so far exceeded the revenues
appointed for that purpose, that application has been made to
parliament to discharge the debts contracted on the civil list; as
particularly in 1724, when one million was granted for that purpose by
the statute 11 Geo. I. c. 17.