2. "That towards raising the Supply, £1,915,552 16s. 11d. be issued out of the sinking fund.

3. "That £1,250,000 be raised by loans on Exchequer Bills, to be charged on the first Aids, to be granted next session.

4. "That £15,000, out of the Moneys remaining in the Exchequer the 5th of April, 1766, the produce of American Duties, be applied towards maintaining the Forces and Garrisons in the Plantations.

5. "That Moneys paid into the Exchequer after the 5th of April, 1775, and before the 5th of April, 1776, produce of the Duties on the importation and exportation of Gum Senega and Gum Arabick, be applied towards the Supply."

He observed, that £3,800.000 of light or diminished Money had been paid into the Bank, under the first Act; that £4,800,000 had been paid in like manner, under the Royal Proclamation of receiving Guineas not under five penny-weights three grains, nor more than six grains; that it was computed, that when the second Proclamation was issued for calling in all Guineas under full standard, upwards of £4,000,000 more would be called in, the whole amounting to about £14,000,000 and the expense of melting down, receiving, interest paid to the Bank, gratuities to the country Commissioners, and re-coinage to about £650, 000; that the deficiencies on Land and Malt were computed at £450,000, that is, £50,000 lower than they were the last year; that the whole of the Grants consisted of the Land and Malt, estimated at £2,250,000, the Exchequer Bills £1,250,000, the profits on a Lottery £150,000, the produce of the Sinking Fund, from the 5th January to the 5th April, £886,000, the three next quarters produce of said Fund £1,915,000, which would make the whole of the Sinking Fund £2,800,000, and Miscellaneous Savings, with the expected produce of the sale of French Prizes £17,000, and sales of Lands in the Ceded Islands, £50,000, taken together, would amount to £300,000; while, on the other hand, the services were, the Navy £1,700,000, the Ordnance £300,000, the Army £1, 600,000, Exchequer Bills of last year 1,250,000, Army Extra ordinaries £270,000, Miscellaneous of Grants and Coinage £348,000. So that on the whole, the Grants would be £6,550,000, and the services voted £5,550,000, which would leave a surplus of £1,000,000 excess of Grants, with which he proposed to pay off the above £1,000,000 of Three per centum Annuities, for the sum of £880,000, which last surplus again of £120,000, would remain to make good the deficiences of the Grants, or to balance the £100,000 voted for the purchase of the Queen's Palace and Somerset House.

His Lordship then poceeded to state the Publick Debts, as they appeared on the 5th of January last, compared with their amount on the 5th of January, 1773. At the latter period they were £123,000,000 funded, and £13,000,000 unfunded, which, with the fractions, made in the whole £136,000,000; at the former, £124,000,000 fund ed, £3,000,000 unfunded, in the whole £127,000,000; paid off £9,000,000. His Lordship did not state the respective interests paid at those periods, but generally stated the decrease in the following manner: Total decrease on the whole £440,000 per annum, and £30,000 by the present operation, in the whole £470,000, out of which take for the Navy Bills unfunded, £20,000, and the Exchequer Bills in circulation, at four per cent. £40,000, both these sums, with the trifling discount on Navy and Victualling Bills, would leave a clear decrease, in the interest money paid to the publick creditors of the sum of £400,000 per annum.

After he had stated the several sums necessary to the explanation of the financial operation, which he was about to submit to the House, he observed, that the Nation might think that the reduction of the National Debt proceeded very slowly; but when it was considered, the very heavy burdens contracted during the late glorious and successful war, the consequent increase of interest, and that that war was entered into at the express desire of the people, joined with the numerous, and singular, advantages derived to this country, both in respect of commerce and territory, the Nation, uniting all these considerations, had much less reason to be impatient or complain. The four great wars we have maintained since the Revolution, said his Lordship, neither originated from the ambition of our Princes, nor the corruption of Ministers; and the vast sums expend ed, however enormous, or heavily at present we may feel the weight, were for the most part laid out, either directly in the protection or advancement of our own immediate interests, or, in upholding those with which they were essentially connected. Our endeavours have, in general, corresponded to the glory of our motives, and the magnitude of our designs, as taking the lead among the great Powers of Europe, by protecting others, securing our own interests, and setting limits to the ambition of the enemies of both. The war commenced at the Revolution, was a popular war; so was that which followed about the succession. The rupture in 1739 with Spain, originated entirely in popular motives. I will, not, however, pretend to say it was as well-founded as the two preceding, at least, so well-timed, though I have no doubt that it might, in the end, become as necessary. The late war was, if possible, still more popular than any of the rest, as it was, in the beginning, undertaken without any view to Continental connexions, but purely to protect our subjects in America, which, I shall ever think, ought to be a very strong incentive to them, to assist us to alleviate those burthens we now: feel, and of which they have been the primacy cause.

I will now beg leave to return to the subject that naturally falls more immediately under the consideration this day, which is the reduction of this heavy load of debt, and the approbation of the Fund allotted for that purpose to other uses. A person of confessed ingenuity (Dr. Price) has written a pamphlet with great ability, on this subject, and condemned the great Minister, (Sir Robert Walpole) who first devised the Sinking Fund, for departing from his own plan. I admire the ingenuity of the author. I have partly, since I came into my present situation, adopted his plan of reduction, as much as times and circumstances would permit; yet, I am far from approving all of what he recommends; nor can I lightly condemn an able Minister, of approved judgement, high abilities, and great experience, while I remain ignorant of the true motives which. Influenced his conduct, or, perhaps, the total impracticability of his acting up to his own ideas: plans on paper, or measures proposed in the closet, often becoming difficult in the execution, or inexpedient, though they should be practicable. Another very popular topick is, taking off the taxes from the necessaries of life, in order to relieve the lower order of the people. Besides a thousand impediments, that I shall forbear to insist on, which might grow out of such a measure, to obstruct it, I fear it would not answer the ends proposed, though every possible obstruction were removed, because the effect might be, that the tax would be lost, and the revenue suffer, without the least benefit to the consumer, as means would be probably devised still to keep the commodity up at the taxed price. On the whole, the vast, riches of this country, its extensive credit, which it has never yet violated in respect of either its domestick or foreign creditors, its prodigious commerce, its surprising paper circulation, which must be immense, when it is considered that the money alone in circulation is considerably more than fourteen millions, as appears by the documents this day referred to; all this, great system of power, riches, and external strength, I say, taken together, with the magnificence, splendour, and luxury of individuals, induce me to believe, that though the national, and consequent, annual burdens be enormous, they are far from being disproportioned to our abilities to pay. I just beg leave to mention one circumstance more before I sit down) to show the difficulty of a hasty reduction of the publick debts, by the means we are necessarily obliged to pursue. A very able deceased Minister (Mr. Pelham) reduced the National Debt, by lowering the interest: we are necessitated to effect the same purpose, by paying off the principal itself, our progress must be, therefore, more slow. That gentleman payed off twenty millions with ease, by only laying an obligation on the annuitants, to receive their principal, or reduce their annuities; and the consequence was, that they gladly accepted of the offer, and consented to take three instead of four per cent. What was the reason then? And what would be the probable consequence now? The Funds were up at par at the former period; they are now considerably below, owing, it may be presumed, to the greater quantity being in the market, so that