either　the　animosity　of　national　vengeance；　or　the　anxiety　for
  national　security；　can　induce　the　people　to　submit；　with
  tolerable　patience；　to　a　new　tax。　Hence　the　usual　misapplication
  of　the　sinking　fund。
  In　Great　Britain；　from　the　time　that　we　had　first　recourse
  to　the　ruinous　expedient　of　perpetual　funding；　the　reduction　of
  the　public　debt　in　time　of　peace　has　never　borne　any　proportion
  to　its　accumulation　in　time　of　war。　It　was　in　the　war　which　began
  in　1688；　and　was　concluded　by　the　Treaty　of　Ryswick　in　1697；　that
  the　foundation　of　the　present　enormous　debt　of　Great　Britain　was
  first　laid。
  On　the　31st　of　December　1697；　the　public　debts　of　Great
  Britain；　funded　and　unfunded；　amounted　to　L21；515；742　13s。　8
  1/2d。　A　great　part　of　those　debts　had　been　contracted　upon　short
  anticipations；　and　some　part　upon　annuities　for　lives；　so　that
  before　the　31st　of　December　1701；　in　less　than　four　years；　there
  had　partly　been　paid　off；　and　partly　reverted　to　the　public；　the
  sum　of　L5；121；041　12s。　0　3/4d。；　a　greater　reduction　of　the　public
  debt　than　has　ever　since　been　brought　about　in　so　short　a　period
  of　time。　The　remaining　debt；　therefore；　amounted　only　to
  L16；394；701　1s。　7　1/4d。
  In　the　war　which　began　in　1709。；　and　which　was　concluded　by
  the　Treaty　of　Utrecht；　the　public　debts　were　still　more
  accumulated。　On　the　31st　of　December　1714；　they　amounted　to
  L53；681；076　5s。　6　1/2d。　The　subscription　into　the　South　Sea　fund
  of　the　short　and　long　annuities　increased　the　capital　of　the
  public　debts；　so　that　on　the　31st　of　December　1722　it　amounted　to
  L55；282；978　1s。　3　5/6d。　The　reduction　of　the　debt　began　in　1723；
  and　went　on　so　slowly　that；　on　the　31st　of　December　1739；　during
  seventeen　years　of　profound　peace；　the　whole　sum　paid　off　was　no
  more　than　L8；328；354　17s。　11　3/12d。；　the　capital　of　the　public
  debt　at　that　time　amounting　to　L46；954；623　3s。　4　7/12d。
  The　Spanish　war；　which　began　in　1739；　and　the　French　war
  which　soon　followed　it　occasioned　further　increase　of　the　debt；
  which；　on　the　31st　of　December　1748；　after　the　war　had　been
  concluded　by　the　Treaty　of　Aix…la…Chapelle；　amounted　to
  L78；293；313　1s。　10　3/4d。　The　most　profound　peace　of　seventeen
  years　continuance　had　taken　no　more　than　L8；328；354　17s。　11
  3/12d。　from　it。　A　war　of　less　than　nine　years'　continuance　added
  L31；338；689　18s。　6　1/6d。　to　it。
  During　the　administration　of　Mr。　Pelham；　the　interest　of　the
  public　debt　was　reduced；　or　at　least　measures　were　taken　for
  reducing　it；　from　four　to　three　per　cent；　the　sinking　fund　was
  increased；　and　some　part　of　the　public　debt　was　paid　off。　In
  1755；　before　the　breaking　out　of　the　late　war；　the　funded　debt　of
  Great　Britain　amounted　to　L72；289；673。　On　the　5th　of　January
  1763；　at　the　conclusion　of　the　peace；　the　funded　debt　amounted　to
  L122；603；336　8s。　2　1/4d。　The　unfunded　debt　has　been　stated　at
  L13；927；589　2s。　2d。　But　the　expense　occasioned　by　the　war　did　not
  end　with　the　conclusion　of　the　peace；　so　that　though；　on　the　5th
  of　January　1764；　the　funded　debt　was　increased　（partly　by　a　new
  loan；　and　partly　by　funding　a　part　of　the　unfunded　debt）　to
  L129；586；789　10s。　1　3/4d。；　there　still　remained　（according　to　the
  very　well　informed　author　of　the　Considerations　on　the　Trade　and
  Finances　of　Great　Britain）　an　unfunded　debt　which　was　brought　to
  account　in　that　and　the　following　year　of　L9；975；017　12s。　2
  15/44d。　In　1764；　therefore；　the　public　debt　of　Great　Britain；
  funded　and　unfunded　together；　amounted；　according　to　this　author；
  to　L139；516；807　2s。　4d。　The　annuities　for　lives；　too；　which　had
  been　granted　as　premiums　to　the　subscribers　to　the　new　loans　in
  1757；　estimated　at　fourteen　years'　purchase；　were　valued　at
  L472；500；　and　the　annuities　for　long　terms　of　years；　granted　as
  premiums　likewise　in　1761　and　1762；　estimated　at　twenty…seven　and
  a　half　years'　purchase；　were　valued　at　L6；826；875。　During　a　peace
  of　about　seven　years'　continuance；　the　prudent　and　truly　patriot
  administration　of　Mr。　Pelham　was　not　able　to　pay　off　an　old　debt
  of　six　millions。　During　a　war　of　nearly　the　same　continuance；　a
  new　debt　of　more　than　seventy…five　millions　was　contracted。
  On　the　5th　of　January　1775；　the　funded　debt　of　Great　Britain
  amounted　to　L124；996；086　1s。　6　1/4d。　The　unfunded；　exclusive　of　a
  large　civil　list　debt；　to　L4；150；263　3s。　11　7/8d。　Both　together；
  to　L129；146；322　5s。　6d。　According　to　this　account　the　whole　debt
  paid　off　during　eleven　years'　profound　peace　amounted　only　to
  L10；415；474　16s。　9　7/8d。　Even　this　small　reduction　of　debt；
  however；　has　not　been　all　made　from　the　savings　out　of　the
  ordinary　revenue　of　the　state。　Several　extraneous　sums；
  altogether　independent　of　that　ordinary　revenue；　have　contributed
  towards　it。　Amongst　these　we　may　reckon　an　additional　shilling　in
  the　pound　land…tax　for　three　years；　the　two　millions　received
  from　the　East　India　Company　as　indemnification　for　their
  territorial　acquisitions；　and　the　one　hundred　and　ten　thousand
  pounds　received　from　the　bank　for　the　renewal　of　their　charter。
  To　these　must　be　added　several　other　sums　which；　as　they　arose
  out　of　the　late　war；　ought　perhaps　to　be　considered　as　deductions
  from　the　expenses　of　it。　The　principal　are；
  L　　　　　　　s。
  d。　　　The　produce　of　French　prizes　　　　　　　　　　　　　　　690；449　　　　18
  9　　　Composition　for　French　prisoners　　　　　　　　　　　670；000　　　　　0
  0　　　What　has　been　received　from　the　sale
  of　the　ceded　islands　　　　　　　　　　　　　　　　　　　　　　95；500　　　　　0
  0　　If　we　add　to　this　sum　the　balance　of　the　Earl　of　Chatham's　and
  Mr。　Calcraft's　accounts；　and　other　army　savings　of　the　same　kind；
  together　with　what　has　been　received　from　the　bank；　the　East
  India　Company；　and　the　additional　shilling　in　the　pound　land…tax；
  the　whole　must　be　a　good　deal　more　than　five　millions。　The　debt；
  therefore；　which　since　the　peace　has　been　paid　out　of　the　savings
  the　ordinary　revenue　of　the　state；　has　not；　one　year　with
  another；　amounted　to　half　a　million　a　year。　The　sinking　fund　has；
  no　doubt；　been　considerably　augmented　since　the　peace；　by　the
  debt　which　has　been　paid　off；　by　the　reduction　of　the　redeemable
  four　per　cents　to　three　per　cents；　and　by　the　annuities　for　lives
  which　have　fallen　in；　and；　if　peace　were　to　continue；　a　million；
  perhaps；　might　now　be　annually　spared　out　of　it　towards　the
  discharge　of　the　debt。　Another　million；　accordingly；　was　paid　in
  the　course　of　last　year；　but；　at　the　same　time；　a　new　civil　list
  debt　was　left　unpaid；　and　we　are　now　involved　in　a　new　war　which；
  in　its　progress；　may　prove　as　expensive　as　any　of　our　former
  wars。*　The　new　debt　which　will　probably　be　contracted　before　the
  end　of　the　next　campaign　may　perhaps　be　nearly　equal　to　all　the
  old　debt　which　has　been　paid　off　from　the　savings　out　of　the
  ordinary　revenue　of　the　state。　It　would　be　altogether　chimerical；
  therefore；　to　expect　that　the　public　debt　should　ever　be
  completely　discharged　by　any　savings　which　are　likely　to　be　made
  from　that　ordinary　revenue　as　it　stands　at　present。　　　　*　It　has
  proved　more　expensive　than　all　of　our　former　wars；　and　has
  involved　us　in　an　additional　debt　of　more　than　one　hundred
  millions。　During　a　profound　peace　of　eleven　years；　little　more
  than　ten　millions　of　debt　was　paid；　during　a　war　of　seven　years；
  more　than　one　hundred　millions　was　contracted。
  The　public　funds　of　the　different　indebted　nations　of
  Europe；　particularly　those　of　England；　have　by　one　author　been
  represented　as　the　accumulation　of　a　great　capital　superadded　to
  the　other　capital　of　the　country；　by　means　of　which　its　trade　is
  extended；　its　manufactures　multiplied；　and　its　lands　cultivated
  and　improved　much　beyond　what　they　could　have　been　by　means　of
  that　other　capital　only。　He　does　not　consider　that　the　capital
  which　the　first　creditors　of　the　public　advanced　to　government
  was；　from　the　moment　in　which　they　advanced　it；　a　certain　portion
  of　the　annual　produce　turned　away　from　serving　in　the　function　of
  a　capital　to　serve　in　that　of　a　revenue；　from　maintaining
  productive　labourers　to　maintain　unproductive　ones；　and　to　be
  spent　and　wasted；　generally　in　the　course　of　the　year；　without
  even　the　hope　of　any　future　reproduction。　In　return　for　the
  capital　which　they　advanced　they　obtained；　indeed；　an　annuity　in
  the　public　funds　in　most　cases　of　more　than　equal　value。　This
  annuity；　no　doubt；　replaced　to　them　their　capital；　and　enabled
  them　to　carry　on　their　trade　and　business　to　the　same　or　perhaps
  to　a　greater　extent　than　before；　that　is；　they　were　enabled
  either　to　borrow　of　other　people　a　new　capital　upon　the　credit　of
  this　annuity；　or　by　selling　it　to　get　from　other　people　a　new
  capital　of　their　own　equal　or　superior　to　that　which　they　had
  advanced　to　government。　This　new　capital；　however；　which　they　in
  this　manner　either　bought　or　borrowed　of　other　people；　must　have
  existed　in　the　country　before；　and　must　have　been　employ