BHO

Introduction

Pages v-liii

Calendar of Treasury Books, Volume 25, 1711. Originally published by Her Majesty's Stationery Office, London, 1952.

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Introduction.

The Parliamentary elections of the autumn of 1710 delivered Great Britain and the European war into the hands of Robert Harley. The political results unfolded themselves only gradually, but in the domain of finance the immediate effect was a fall in public credit and in the funds. Neither the assurances of the new ministers nor the pen of Defoe or Swift or Davenant could arrest the fall and when Parliament met it was momentarily under the shadow of a minor monetary crisis. The steadying effect of that crisis impressed upon the Queen and the new Government the political expediency of facing the incubus of floating debt hanging over the Services and prominent place was accordingly given to it in the Queen's Speech at the opening of the Session. After calling upon the House of Commons to provide the necessary Supplies for the coming year's service "with unanimity and despatch" the Queen added:
"I cannot without great concern mention to you that the Navy and other Offices are burthened with heavy debts which so far affect the public service that I most earnestly desire you to find some way to answer those demands and to prevent the like for the time to come; the justice of Parliament in satisfying former engagements being the certain way of preserving and establishing national credit." (fn. 1)
The reply of the Commons to this appeal was in effect twofold. In the first place the Speaker Elect informed the Queen that the nation "have chosen such persons to represent them in Parliament as will effectively support her Majesty against all her enemies and will soon defeat all artifices to destroy or distress the public credit." (fn. 2) In the second place, in the formal Address which the House adopted as a reply to the Queen's speech, the House mingled formal assurance with an unusual style of advice:
"The burthen of those heavy debts which presses your people with so sensible a weight is in some measure alleviated by your princely compassion. We shall endeavour to trace the source of this great evil and to apply a remedy suitable to it. The honour and justice of Parliament shall by us be inviolably maintained and all such other measures pursued by which the public credit may be preserved and established ...
And we do with all humility represent to your Majesty that the most effectual way to give spirit to your friends and defeat the restless malice of your enemies will be by discountenancing all persons of such principles and avoiding all measures of such tendency as ... have lately threatened your royal crown and dignity." (fn. 3)
These unusual words and this extraordinary from of Address contained at once a threat and a promise. The threat was one of prosecution for the late Whig financial administration and in the course of the Session the threat was carried out by the appointment of a fresh Commission of Accounts—the invariable and favourite device which Harley employed to destroy and traduce his political foes. The promise was in effect the extinguishment of the floating debt and this promise also in the course of the Session was carried out by the South Sea Company scheme, a device which bears the stamp of Harley's mentality even more signally than does the revived Commission of Accounts. So that in effect in the Queen's Speech Harley adumbrated the two chief problems of the Session just as in the House of Commons Address in reply to the Queen's Speech he adumbrated the line of procedure which the House was finally to adopt. The close sequence of forecast and performance should remove any doubt as to his complete control of the Lower House.
But for the moment, at the outset, both the Queen's Speech and the Commons' Address committed Parliament to a prosecution of the war against France. Whatever secret approaches to a peace had already been made or were in contemplation war finance was still in the ascendant and could not be stayed. The Estimates were drawn as for a vigorous war, and Supply was voted and Ways and Means were debated on as large lines as when the Whigs were in power, and when peace was scouted.
Parliament met on the 25th November and on the 1st December—even before the swearing in was completed—the House of Commons came to a Resolution "that a Supply be granted." (fn. 4) On the following day the usual request was made for Estimates for the Navy, Army and Ordnance for the year 1711 and for the usual Departmental Accounts covering those services, Navy Debt, Ordnance Debt, Subsidies to the Allies, the expenditure of the year 1710.
Very briefly the Estimates were submitted to the House in the following sequence:
4 Dec. 1710, Navy Ordinary and Statement of Navy Debt: brought in by Sir John Leake (Commons Journals XVI, pp. 414–5).
5 Dec., Army in Flanders: the 40,000 men and the first 20,000 Augmentation (ibid., p. 416).
6 Dec., Guards and Garrisons (ibid., pp. 424–6).
8 Dec., Ordnance and Statement of Ordnance Debt (ibid., p. 427).
11 Dec., Transport (ibid., p. 429).
5 Feb. 1710–11, Army in Spain and Portugal.
Taking these Estimates in their normal sequence the details were as follows:
ESTIMATES 1710–11.
GUARDS AND GARRISONS.
Guards and Garrisons and Land Forces in Great Britain, Jersey, Guernsey and the Plantations and Sea Service for the year 1711 (submitted to the House on the 6th Dec. 1710. Commons Journals XVI, pp. 424–6).
Horse. £ s. d.
First, Second, Third and Fourth Troop of Guards (181 men each).
First and Second Troop of Grenadier Guards (176 and 177 men).
Royal Regiment of Horse Guards (598 men). total, 1,675 for the Horse Guards 120,808 18 4
Dragoons. £ s. d.
The Queen's Regiment (443 men).
Sir Richard Temple's (443 men).
Col. Kerr's (407 men).
Earl of Hyndford's (407 men).
Lieut. Gen. Echlyn's (589 men).
total, 2,289 for the Dragoons 81,583 11 8
Foot.
First Regiment of Foot Guards (2,283 men).
Second Regiment of Foot Guards (1,143 men).
Third Regiment of Foot Guards (1,467 men).
Col. Kirk's Regiment (876 men).
Maj. Gen. Livesay's (760 men).
Maj. Gen. Wightman's (876 men).
Lieut. Gen. Maitland's (834 men).
For Sea Service.
Lieut. Gen. Seymour's Regiment (876 men).
Lieut. Gen. Farrington's (876 men).
Lord Mark Kerr's (809 men).
Lieut. Gen. Mordaunt's (834 men).
Maj. Gen. Handasyd's (951 men).
Col. Jones's (834 men).
total, 13,419 Foot (viz. 8,239 for home and 5,180 for sea service) 257,425 7 6
Four Companies at New York (449 men).
One Company at Bermudas (58 men).
One Company at Newfoundland (93 men).
Three Companies in North Britain (207 men).
total, 807 men 13,289 10 0
General and Staff Officers 14,410 18
Contingencies: upon account 13,977, 15 5
Garrisons 32,509 0 4
Invalids [Chelsea Hospital] 12,103 15 10
total for Guards and Garrisons, viz. 18,190 men plus Staff Officers £546,108 17
THE ARMY ABROAD. £ s. d.
The 40,000 men to act in conjunction with the Forces of the Allies in the Low Countries and the charge thereof for the year 1711.
British portion.
Horse.
Lieut. Gen. Lumley's Regiment (598 men).
Lieut. Gen. Wood's (400 men).
Lieut. Gen. Cadogan's (400 men).
Lieut. Gen. Palmes's (400 men).
Duke of Schonberg's (400 men).
total, 2,918 Horse 122,153 6 8
Dragoons.
Earl of Stair's Regiment (662 men).
Lieut. Gen. Ross's (662 men).
total, 1,324 Dragoons 46,233 6 8
Foot.
Royal Regiment of Foot (1,876 men).
Duke of Argyll's (938 men).
Lieut. Gen. Webb's (938 men).
Lord North and Grey's (938 men).
Earl of Hertford's (938 men).
Brig. Godfrey's (938 men).
Lieut. Gen. Ingoldsby's (938 men).
Lieut. Gen. Meredyth's (938 men).
Maj. Gen' Sabine's (938 men).
Maj. Gen. Primrose's (938 men).
Col. Preston's (938 men).
Col. Newton's (938 men).
Col. Windresse's (938 men).
Lieut. Gen. Erle's (938 men).
Maj. Gen. Evans's (867 men).
total, 14,937 men 258,514 5 10
426,900 19 2
General [or Staff] Officers 36,195 0 10
Contingencies: upon account 10,000 0 0
Forage and waggon money, on account 21,680 0 0
total for the British part of the 40,000 men. 494,786 0 0
Foreign part of the 40,000 men in British pay:
Danes (6,000 men) 116,282 15 0
Prussians (2,532 men) 43,018 18 6
Hessians (3,080 men) 53,685 0 0
Hanover and Zelle (10,000 men) 171,329 10 0
384,316 3 6
total foreign contingent of the 40,000 men, 21,612 men: making with the British a total of 40,071 men 879,092 3 6
bread waggons for the 40,000 men 20,000 0 0
forage, waggon money and recruits for the foreign contingent of the 40,000 men, pursuant to the respective Treaties: on account 20,000 0 0
total estimate for the 40,000 men £919,092 3 6
First Augmentation.
Estimate for the 20,000 men, Troops of Augmentation, being the first Augmentation anno 1703, and the charge thereof for the year 1711 [one moiety or 10,000 men thereof being at the charge of her Majesty Queen Anne].
Guilders. Stivers.
English Foot.
Brig. Hill's Regiment (876 men).
Earl of Orrery's (876 men).
Brig. Honywood's (876 men).
Lieut. Gen. Macartney's (876 men),
total, 3,504 men 667,037 10
Holstein Gottorp.
two Regiments of Dragoons (1,116 men).
two Regiments of Foot (1,766 men).
total, 2,882 men 578,981 5
Saxe Gotha.
two Regiments of Dragoons (892 men).
two Regiments of Foot (1,708 men).
total, 2,600 men 488,260 10
Bishop of Munster.
three Regiments of Foot (2,442 men) 352,754 5
Hesse Cassel.
one Regiment of Foot (885 men) 122,621 15
[Bishop of] Osnaburg.
one Regiment of Foot (807 men) 110,626 18
Oost Frieze.
one Regiment of Foot (797 men) 113,405 10
[Bishop of] Liege.
one Regiment of Dragoons (581 men).
two Regiments of Foot (1,596 men).
one Regiment of Foot more (797 men).
total, 2,974 men 497,513 5
Palatines.
four Regiment of Foot (2,600 men) 322,321 5
Danes.
surplus of the Danes, part of the Establishment of the 40,000 men, transferred to the Establishment of the 20,000 Troops of Augmentation (520 men) 174,752 17
total of 20,011 men 3,428,275 0
whereof one moiety at her Majesty's charge, viz. 10,005 men 1,714,137 10
£ s. d.
which at 10 gilders 10 stivers to the £ sterling makes 163,251 3 6
bread waggons for the 10,000 men 5,000 0 0
forage, waggon money and recruits for the foreigner part of the said 10,005 men: on account 9,260 0 0
total for her Majesty's share of the 20,000 Troops of Augmentation £177,511 3 6
Other Additional Forces.
[The second Augmentation of anno 1706.]
Charge per an.
Palatines. £ s. d.
Her Majesty's share, being two thirds, of the charge of 3,000 Palatines, viz. for 2,000 men 34,251 13 4
Saxons.
Her Majesty's share, being a moiety, of the charge of 4,639 Saxons, consisting of one Regiment of Horse, two of Dragoons, four of Foot: viz. for 2,319 men. 43,251 12 6
Her Majesty's share, being a moiety, of the charge of a Regiment of Dragoons of 800 men: viz. for 400 men 9,169 16 6
total for 2,719 men 86,673 2 4
[Third Augmentation of 1709.]
Her Majesty's proportion of the charge of the Troops of Augmentation allowed by Parliament and taken into service in the year 1709: viz. for 10,000 men 220,000 0 0
total for [the three Augmentations amounting in all to] 24,724 men at her Majesty's charge £484,284 5 10
ESTIMATE FOR SUBSIDLES.
Account of her Majesty's proportion of Subsidies payable to the Allies for the year 1711 pursuant to the Treaties. (fn. 5)
Crowns, per an. £ s. d.
to the King of Denmark in Bank money at Hamburg 150,000 37,500 0 0
to the King of Portugal, for defraying her Majesty's proportion of the charge of 13,000 men: being 666,666 patacons 33 stivers at 4s. 6d. each 600,000 150,000 0 0
to the Duke of Savoy, at the rate of 53,333⅓ [Crowns] per month 640,000 160,000 0 0
to the Landgrave of Hesse Cassel 25,000 5,952 7 6
to the Elector of Treves 25,000 5,952 7 6
to the Elector Palatine 20,000 4,761 18 6
to the Landgrave of Hesse, for her Majesty's quota (being two thirds) of his additional Subsidy of 100,000 Crowns per an. on account of two Regiments of Horse of his Troops which were in Italy 66,6662/3 16,666 13 4
to the King of Prussia, for her Majesty's proportion of the charge of 8,000 men sent to the assistance of the Duke of Savoy 200,000 50,000 0 0
guilders. stivers. £ s. d.
more to the King of Prussia by virtue of the Treaties of 1701 and 1706 on account of the 12,000 men sent to serve in the Netherlands, viz.:
for her Majesty's share of the agio or difference of the money current in the Empire and the rates the same money is current at in the territories where his Troops are employed 109,666 10
more for her Majesty's share for bread 153,097 16
more for her Majesty's share for forage 125,865 0
388,629 6 37,012 7 6
More to enable her Majesty to satisfy her share of the pretensions of the King of Prussia to a further allowance for the extra charge he has been at in recruiting the body of his Troops in Italy, his Majesty consenting thereupon to the continuance of those Troops in Italy 466,6662/3 Crowns 11,111 2 3
total for Subsidies to Allies £478,956 16 7
ESTIMATE FOR THE WAR IN SPAIN AND PORTUGAL. (fn. 6)
Estimate of the charge of her Majesty's Forces upon the Establishment of Spain and Portugal as the same was allowed by Parliament for the year 1710 [ut supra, Vol. XXIV, Introduction, p. xv, as to figures and sums but with the names of Regimental Commanders brought up to date as for the year 1711], to which is added an accompt of the Augmentation of that charge for the year 1711 by the alterations and additions that have since [the said 1710 Estimate] been made for carrying on the war in those parts; as also of the Exceedings which have accrued for that service in former years not hitherto provided for. This Estimate is not entered in the Journals. It occurs in Treasury Board Papers CXXXI, No. 1 (B).
Forces in Spain. £ s. d.
Horse: Lieut. Gen. Harvey's Regiment (418 men) 23,107 10 10
Dragoons: Royal Regiment (589 men; Maj. Gen. Pepper's (589 men); Lieut. Gen. Stanhope's (589 men); Brig. Lepell's (407 men): in all 2,174 men 76,698 13 4
Foot: Col. Harrison's (876 men); Brig. Wade's (876 men); Col. Du Bourgay's (845 men); Royal Fuziliers (845 men); Maj. Gen. Whetham's (845 men); Col. Dormer's (845 men); Col. Bowles's (845 men); Col. Munden's (845 men); Col. Richards's (725 men); Col. Stanhope's (725 men); Col. Gore's (725 men); Maj. Gen. Elliott's (834 men); Sir Robert Rich's (834 men); Col. Windsor's (876 men); Sir Charles Hotham's (845 men): in all 12,386 men 219,073 0 0
Forces in Portugal.
Dragoons: Col. Bouchetier's (589 men); Señor Anto. Luis de Tavera's (323 men); Don Luis de Gamia's (323 men); Señor Manuel de Mello's (323 men); Señsor Geo. de Suza Meneze's (323 men); Don Diego de Norhanhas's (323 men); Brig. Withers's (323 men): in all 2,527 men 94,255 3 4
Foot. Maj. Gen. Pearce's (725 men); Maj. Gen. Newton's (725 men); Earl of Barrymore's (876 men); Lord Paston's (834 men); Lieut. Gen. Sankey's (725 men); Brig. Stanwix's (725 men); Col. Vesees's [Vezey's] (785 men); a Spanish Regiment (785 men); Brig. Hamilton's (876 men); Brig. Sutton's (876 men); Col. Pocock's (834 men); Col. Grant's (834 men); Maj. Gen. Wynne's (785 men); Brig. Bretton's (834 men); Lord Hay's (834 men); Marquis de Montandre's (876 men): total, 12,929 men 229,995 12 6
total [for the British Establishment], 30,434 men 643,130 0 0
3,000 Imperialists and 1,200 Italian Foot 62,411 7 0
4,000 Imperial Foot and 1,000 Horse 87,415 4 2
4,000 Imperial Foot more 60,000 0 0
209,826 11 2
towards paying the Troops of his Catholic Majesty [in Spain] and the Extraordinaries of the war: upon accompt 210,000 0 0
1,062,956 11 2
General and Staff Officers in Spain 9,465 13 4
Contingencies of the Army and Hospitals 9,817 10 0
£ s. d. £ s. d.
Forage for the Forces, Waggon and Baggage money for the Officers 10,000 0 0
Garrison of Gibraltar 1,952 15 0
31,235 18 4
General and Staff Officers in Portugal 14,843 6 8
Contingencies for the Army and Hospitals 8,000 0 0
Forage and Waggon money upon accompt 9,000 0 0
31,843 6 8
total for war in Spain and Portugal £1,126,035 16 2
An accompt of the Augmentation of the charge of the war in Spain and Portugal for the year 1711.
For Spain. £ s. d.
by the addition of a Lieut. Gen., Maj. Gen. and Brigadier, their aides de camp and Major of Brigade 3,467 10 0
by nine men and a Serjeant added to each of the 12 Companies of the Foot Regiments of Col. Richards, Col. Stanhope and Col. Gore in the year 1710 by order of Lieut. Gen. Stanhope, to make them of equal numbers to the other English Regiments of 845 men each serving with him in Spain (360 men in all) 4,927 10 0
by two Regiments of Foot formed of Portuguese by Lieut.-Gen. Stanhope in Spain upon the same foot with the English Regiments and consisting of 845 men each: in all 1,690 men 29,644 1 8
by the late Count Nassau's Regiment to be raised again (725 men) 13,179 10 10
by five additional Regiments now ordered for Spain, viz. Col. Molesworth's (834 men); Maj. Gen. Rooke's (725 men); Brig. Price's (725 men); Col. Jones's (725 men); Lord Slane's (725 men) 67,239 1 8
by five Regiments of Horse and two Regiments of Foot of Portuguese Troops and the General and Staff Officers serving with them who marched with the Earl of Galway into Spain in 1706, where they have continued and been borne at her Majesty's charge for the years 1709 and 1710, the King of Portugal having represented by his Minister here that since they marched into Spain he has been obliged to make a much greater augmentation of his Forces in Portugal at his own expense: in all 3,879 men 103,100 16 5
by Count D'Eck's and Baron Brown's Imperial Regiments of Foot taken into the service in the year 1710 (3,000 men) 44,103 17 8
by the Garrison of Port Mahon provided for last year by Parliament in the Extraordinaries of the war 1,645 10 10
by the increase in the Extraordinaries of the war, viz. for mule carriage, transport of ships [Troops] from Italy and fortification of Port Mahon which by the accompts received from Spain made up to the 10th Oct. 1710 appears to have exceeded the 60,000l. given for that service by the amount of 100,753l. 15s. 10d. exclusive of the 150,000l. allowed to his Catholic Majesty: so that it is reckoned that less cannot be demanded upon account than the further sum of 140,000 0 0
total, 13,388 men 407,307 19 1
towards which there is saved as follows:
by the alterations made by order of Lieut. Gen. Stanhope in Col. Harrison's and Brig. Wade's Regiments of Foot in 1710 by reducing one Company in each of the said Regiments and adding three men to each of the remaining 12 Companies to make them of equal numbers to the other English Regiments serving with him in Spain 1,380 18 4
by nine men and a Serjeant reduced in each of the 12 Companies of Sir Charles Hotham's Regiment 1,642 10 0
by one Company reduced in Col. Windsor's Regiment and six men and a Serjeant from each of the remaining 12 Companies 2,332 19 2
by 13,020 Germans and Italians whose pay in the Estimate for the year 1710 was calculated to amount to 209,826l. 11s. 2d., but by the Establishment since formed only comes to 205,787l. 14s. 2d. the difference being 4,038 17 0
9,395 4 6
these four reductions being for 513 men bring the total increase to 12,875 and leaves a net augmentation [for Spain] for the year 1711 of £397,912 14 7
Augmentation for Portugal for the year 1711.
£ s. d. £ s. d.
by the addition of a 9th Troop to Col. Bouchetier's (late Earl of Galway's) Regiment of Dragoons: raised (73 men) 2,463 15 0
by the Marquis de Assa's and Maj. Gen. Hogan's Regiments of Dragoons formed out of Spanish and Irish deserters in the year 1710 by the Earl of Galway pursuant to her Majesty's Orders in Council signified by Lord Dartmouth (980 men) 36,287 1 8
by six men and a Serjeant added to each of the 13 Companies of Col. Vesey's and Maj. Gen. Wynne's Regiments of Foot (182 men) 2,609 15 0
by a Company and 11 Serjeants added to Col. Grant's Regiment, 1710 (81 men) 1,466 1 8
total Augmentation for Portugal (1,316 men) 42,826 13 4
towards which there is saved
by breaking the Regiment called the Spanish Regiment in Portugal and incorporating them into other Regiments 14,207 12 6
by one Company reduced in the Marquis de Montandre's Regiment and 12 Serjeants and 72 men from the other Companies [of that Regiment]: as also one Serjeant and 108 men from the Earl of Ilay's Regiment: in all (1,045 men) 3,674 6 8
17,881 19 2
leaving a net Augmentation of 271 men for Portugal at a cost of £24,944 14 2
£ s. d.
Total combined Augmentation for Spain and Portugal, 13,146 men, at a cost of 422,857 8 9
to which add the Estimate for Spain and Portugal as above 1,126,035 16 2
gives in all for the year 1711 for Spain and Portugal £1,548,893 4 11
Memorandum: The Earl of Portmore having represented that the Cavalry in the service in Portugal, which are established only upon the pay of Dragoons, cannot by reason of the excessive dearness of bread and forage subsist upon their pay, it has been found absolutely necessary that out of the allowance of 14d. a day (which is the subsistence of a Dragoon) there be deducted only 6d. a day towards bread and forage and that what shall happen to exceed the said 6d. a day on that accompt be charged to the head of Exceedings to be borne by her Majesty, of which an accompt will be hereafter transmitted over: the remaining 8d. being the least that a Trooper can be subsisted upon, shoe his horse and make good his accoutrements and [is] what the King of Portugal allows to those in his own service.
Memorandum: There have been a great many supernumerary Officers, occasioned by the Earl of Galway's turning four Regiments of Foot raised of Portuguese soldiers and English and French Officers into five Regiments of Dragoons; which supernumerary Officers have been placed on half pay and serve as Officers en second in the said Regiments to be provided for as vacancies shall happen. There will a further charge accrue to the publique on that head for the year 1711, of which no exact calculation can be made till the end of the year by reason of the lessening the charge daily by the Officers that shall be provided for.
An Estimate of the charge of the Royal Hospital of Chelsea for the year 1711. (fn. 7)
£ s. d.
salaries to the officers of the House 2,643 9 0
allowances to the military Officers 1,261 17 10
provisions 7,124 16 8
coals 530 0 0
clothing 1,178 12 11
Exchequer fees and allowance to the Treasurer and Paymaster for himself and the expense of his Office 7,524 18
the Commissary General of the Musters 150 0 0
several pensioners at 12d. a day 400 0 0
necessaries and several contingent expenses relating to the House 868 14 10
repairs and works 600 0 0
subsistence of the Invalid Outpensioners for whom there is no room in the Hospital who are quartered in the villages about the town: as per estimation and according to what it amounted to the last year; the said charge daily increasing by the many wounded and disabled men sent from the service abroad 30,000 0 0
£52,282 10
TRANSPORT DEBT.
Debt for the Transport Service at 30 Sept. 1710 and the growing charge thereof. (This statement is to be compared with that infra, p. 50, compiled by the House of Commons Committee.) (fn. 8)
£ s. d. £ s. d.
for freight of shipping, hired by the month, to transport her Majesty's Forces to Spain and Portugal 402,188 6 8
for hay, oats, bread, beer, cheese, cask, bedding, cabins, cradles, stabling and other necessaries 18,009 3 2
for freight of ships which transported her Majesty's Forces to Holland this year 3,689 0 9
423,886 10 7
for interest of the above Transport Bills to 30 Sept. 1710 38,535 3 0
over and above which there is remaining, for which no Transport Bills have yet been numbered or issued out:
for nine ships hired in Ireland which have transported her Majesty's Forces to Portugal and Spain and are discharged the service, whose accounts are not yet adjusted 3,466 11 3
for 123 ships hired at London, Portsmouth and Lisbon by the month to transport her Majesty's Forces to Portugal and Spain, 87 of which were remaining in pay on the 30th Sept. 1710 88,384 6 6
total Debt for the Transport Service on 30 Sept. 1710 554,272 11 4
towards which there is remaining in the hands of the Receiver and Paymaster for Transport Services the following [tallies], viz.:
on Land Tax 1708 12,421 8
on Half Subsidies 1708 29,687 10
on the General Mortgage anno 1709 10,000 0 0
on Malt 1710 17,139 8 2
69,248 7
leaving unprovided for £485,024 3 11¾
TRANSPORT SERVICE anno 1711.
The growing charge for the Transport.
Upon the 30th Sept. 1710 there were in her Majesty's Transport running in monthly pay 87 ships the growing charge whereof is 11,403l. 13s. 0d. per month.
An Estimate of the charge of the Office of Ordnance for the year 1711: for Land Service. (fn. 9)
£ s. d.
the charge of the Flanders train 45,000 0 0
the Ordinary of the Office, comprising salaries, rents, repairs at storehouses, barracks, platforms, carriages and likewise the expense of several stores for several garrisons; and incident charges 28,273 13 9
for 200 tons of saltpetre for supply of the Stores 10,600 0 0
the yearly charge of Jamaica 456 5 0
the yearly charge of Portugal for powder according to the Treaty [with Portugal] 10,974 5 0
the yearly charge of an engineer at New York; and of an engineer, bombardiers &c. at New England 2,345 2 6
the charge of stores sent with Col. Vetch and Col. Nicholson 8,929 6 11¼
the charge of the designed Expedition with Maj. Gen. Macartney 2,895 17 11¾
the charge of the designed Expedition with my Lord Shannon 2,950 1 3
the yearly charge of the Officers, fireworkers, bombardiers, artificers, gunners and matrosses belonging to the Train in Catalonia 12,220 2 6
the yearly charge of the Officers at Port Mahon 4,544 5 0
the charge of the stores for the Train in Spain 10,378 7 2
the yearly charge of the Officers, engineers, fireworkers, bombardiers, gunners and artificers at Gibraltar 3,631 15 0
the charge of the Officers, bombardiers, gunners and others belonging to the artillery in the north part of Great Britain 1,475 18 9
£144,675 0 10
ORDNANCE OFFICE DEBT.
Account of the Debt of the Office of Ordnance for stores delivered and services performed to 30 Sept. 1710. (fn. 10)
£ s. d. £ s. d.
due to the artificers and others for stores delivered and services performed to 30 Sept. 1710 281,314 0 0
due to the Holland Train for ditto 8,726 19 1
due to the Train in Spain and at Port Mahon 8,881 6
due to the Officers at Gibraltar 2,491 15 2
due to Engineers and storekeepers at New York, Jamaica, Barbados and Lord Shannon's Expedition 3,920 18 6
due to fireworkers &c. attending the burnt vessels in the Mediterranean 890 15 0
due for freight of ships attending at Lisbon, Port Mahon &c. 5,748 10
due for salaries and rents of storehouses 10,736 7
322,710 11 10¾
Tallies and Exchequer Bills in the hands of the Treasurer of the Ordnance 224,330 10
less tallies appropriated for buying lands for fortifications, 42,000l., and for carrying on the present fortifications, 13,944l. 14s. 0d. 55,914 14 0
168,385 16
Ordnance debt outstanding at 30 Sept. 1710 £154,324 15
Report on the petition of Adam Brown et al. for payment of an Ordnance Office debt of 97,722l. 19s. 8¼d. owing to them from 1679 in the time of Charles II, for satisfying which no provision was ever made. (fn. 11)
The Committee cannot find that any notice of this debt hath been taken by Parliament: and that for a great many years this debt hath not been stated in the Estimates delivered to Parliament.
EXTRAORDINARIES OF THE WAR [anno 1710]
An account of some Extraordinary charges of the war not yet provided for by Parliament: so far as they have been hitherto adjusted (presented to Parliament by Mr. Granville). (fn. 12)
£ s. d.
for the extraordinary allowance of forage for five Regiments of Dragoons in North Britain from 23 Feb. 1709–10 to 22 Dec. 1710, pursuant to her Majesty's warrant 5,680 3 1
for the pay of Lord Shannon and the General and Staff Officers ordered for the intended Expedition under his command, from 1 May 1710 to 6 Nov. 1710, pursuant to her Majesty's Establishment 3,515 0 0
for the pay of Maj. Gen. Whetham and the Officers appointed to attend the Forces embarked for the service abroad from 7 Nov. 1710 to 22 Dec. 1710, pursuant to her Majesty's Establishment 230 0 0
for the pay of Col. Nicholson and the Officers ordered to attend the Expedition under his command, from 1 April 1710 to 22 Dec. 1710 2,930 8 8
for the pay of Col. Vetch as Adjutant General and Capt. Moody as Aide de Camp at New York in the year 1709, pursuant to her Majesty's warrant 262 10 0
to satisfy several bills of exchange drawn by Col. Vetch and Col. Nicholson for the service of the Forces upon the Expedition to New England 3,284 16 5
for the support of the Royal Hospital near Chelsea and the Invalid Outpensioners thereto belonging over and above the [Army deduction of] Poundage and Day's Pay of the Guards and Garrisons to 22 Dec. 1710 and the Day's Pay already deducted from the Forces Abroad 15,392 17 1
for the extraordinary charge of forage in the winter quarters 1709–1710 and at the siege of Douay, with the extraordinary charge for bread and bread waggons on account of the Forces in the Low Countries to the end of the 1710 Campaign, over and above what has been allowed upon the respective Establishments or otherwise provided for the said services 15,148 1 8
for forage delivered to the Forces in the Low Countries the last campaign by Monsieur Pangaret [Pangaert], 165,128 guilders 1 stiver 15 deniers 6,202 13 6
for 19 horses of Lieut. Gen. Ross's Regiment lost in the action the last Campaign at 15l. each 285 0 0
for seven horses more of the Earl of Stair's Regiment at the same rate 105 0 0
for her Majesty's proportion of the extraordinary charge of forage to the Troops in winter quarters 1710–11: upon account 50,000 0 0
for her Majesty's proportion of what has been already paid for the Douceurs and other extraordinaries of the Foreign Troops in the Low Countries exceeding the sums allowed for the same upon the Establishment or otherwise provided for to the end of the year 1710 27,340 12 4
for forage, waggon money, recruits, douceurs and other extraordinaries to the Foreign Troops in the Low Countries in the service of her Majesty and the States General; upon account; to be distributed as the same shall appear to be due to them; and is an exceeding of the sum of 29,260l. granted for that service for the year 1711; 50,000 having been lately remitted for the said extraordinaries to enable the Foreign Troops to raise their recruits and come early into the field 20,740 0 0
for 123,008 guilders 1 stiver due to the Hanover Troops for men and horses lost in action in the Campaign in 1709; and to the Prussian Augmentation Troops in the Campaign 1709 and 1710 11,715 1 0
for levy money for 2,500 recruits for the Imperial Troops in Spain which by estimation was computed might be sufficient to complete them for the year 1711 at the rate of 20 Crowns a man, pursuant to a Treaty 11,904 15 3
for levy money to enable her Majesty to make good the proportion (being two third) of 70,000 Crowns to the King of Prussia in the year 1710 in consideration of the charge he has been at in recruiting the body of his Troops in Italy and of his Prussian Majesty's consenting thereupon to the continuance of those Troops in that country in the year 1710 11,111 2 3
for her Majesty's proportion (being a moiety) of 60,000 Crowns to be paid the Elector Palatine in consideration of the expense in sending his Troops into the Low Countries in the 1710 Campaign 7,142 17 2
for the pay of several Second Officers serving in Portugal under the Earl of Portmore, according to a list lately transmitted from thence for the year 1711: upon account 10,000 0 0
for the pay of several Second Officers, some in Britain and others on service in Spain and Flanders, for the year 1711: upon account 10,000 0 0
for the pay of 30 Serjeants to be employed on a particular service abroad to whom her Majesty has been pleased to give Lieutenants' commissions and to place them upon an Establishment of Ensigns' pay from 1 Jan. last to 22 Dec. 1711 1,602 0 0
for her Majesty's bounty to Volunteers and impressed men raised and to be raised for the service of the current year pursuant to the Recruiting Act, being 40s. a man over and above the levy money chargeable upon the several Regiments: being computed at 8,000 men 16,000 0 0
to the [Recruiting] Commissioners' clerks at 5s. a man for the said impressed men and volunteers 2,000 0 0
towards the extraordinary charge of recruiting five Battalions of Foot of her Majesty's Subject Troops employed at the siege of Aire, where their loss of men happened so late in the year that the subsistence of the non-effectives could not answer the charge of recruits 1,950 0 0
for the extraordinary charge of dry forage at the beginning of the last Campaign to the Regiments of Dragoons of Ross and Stair in the Low Countries, occasioned by their taking the field before there was forage upon the ground for their subsistence 1,205 11
235,748 9
towards which there may be saved, upon the sum of 220,000l. granted by Parliament for the [last] Augmentation Troops for the year 1711 (being an exceeding of what the pay and extraordinaries of the said Troops may amount to) the sum of 43,379 7 4
remains 192,369 2
[add: due] to the Duke of Savoy for extraordinaries of the war over and above the Subsidy allowed him pursuant to the Treaty, the same having been omitted in the Estimate of Subsidies [for this year 1711] 100,000 0 0
total to be provided for £292,369 2
Memorandum: There is a further sum demanded by the General Officers serving in Flanders, to make up the pay they received equal to their commissions and the qualities in which they served, to the 31 December 1707: but as the same is not yet exactly adjusted it is desired that in the appropriating clause there may be a power given for paying what shall appear to be due on that head.
EXTRAORDINARIES IN SPAIN AND PORTUGAL, 1705–1710.
An accompt of some extraordinary charges of the war in Spain and Portugal from the year 1705 to the end of the year 1710 not provided for by Parliament: according to accompts and Estimates thereof returned from those parts. (fn. 13)
£ s. d.
for the full pay of two Regiments of Dragoons raised by the Earl of Peterborough in Catalonia in 1706 from the respective days of raising to 20 Dec. 1706, viz. Maj. Gen. Edward Pearce's from 3 Feb. 1705–6 and the late Count Nassau's from 12 July 1706, pursuant to their muster rolls 26,135 13 4
paid for horses bought to mount the said Regiments 6,525 0 0
paid upon two bills of exchange drawn by the Earl of Peterborough from Spain for hire of transports in 1706 3,156 1 6
paid for several extraordinaries of the war in Catalonia in 1705, 1706 and 1707 according to particulars in the annexed paper 16,136 17
paid for forage and mule money for the Regiments and General Officers sent under the command of Earl Rivers in 1707 and for an exceeding of the waggon money for the Forces under the command of the Earl of Peterborough in 1706: according to particulars in the annexed paper 9,297 0 6
paid for the extraordinary charge of mule carriages for the Army in 1707: as by particulars in the annexed paper 13,589 18 0
paid in Spain for hand mills and other materials for the use of the Army 2,673 5 8
for levy money of 1,700 recruits sent to Spain in 1710 to recruit the Imperial Troops there at 20 Crowns a man, pursuant to the Treaty with the Emperor 8,252 4
for the pay of Col. Molesworth's Regiment taken from the Establishment of Ireland from 27 Aug. 1709 to 22 Dec. 1710 17,440 6 6
for the pay of an additional Troop to the Regiment of Dragoons lately under the command of the Earl of Galway from 23 Dec. 1708 to 22 Dec. 1710 4,927 10 0
for the pay of the additional men to Col. Vesey's (late Blunden's) Regiment in Portugal from 1 Aug. 1708 to 22 Dec. 1710 3,095 8 4
for pay upon accompt for two Regiments of Horse forming in Portugal of deserters from the Duke of Anjou's Army to 22 Dec. 1710 by estimation 12,000 0 0
for the pay of several Officers en second serving in Portugal to 22 Dec. 1710 according to a list thereof returned from thence: as in the papers enclosed 8,553 3 4
for the pay and extra charge by estimation of the two Regiments of Imperial Foot of Brown and D'Eck to 22 Dec. 1710, being sent from Italy to Spain in 1710 45,000 0 0
for the full pay of two Regiments of Portuguese Foot formed by Lieut. Gen. Stanhope for her Majesty's service in Spain for the year 1710, one commanded by Col. Dalzeel, the other by _, each Regiment consisting of 845 men, including Officers, upon the same foot of pay with her Majesty's subjects 29,644 1 8
paid a body of Portuguese Troops, part of the Army that marched with the Earl of Galway through Spain in 1706 and not returning to Portugal were taken into her Majesty's service and pay in Catalonia for the years 1709 and 1710 and (as the King of Portugal's minister here [in England] represents) were more than supplied by new levies raised in Portugal since the battle of Almanza 183,100l. 16s. 5½d.: towards which there was a saving upon the moneys granted for the Imperial Auxiliary Troops for the year 1709 of 19,684l. 17s. 5½d.: leaving 163,415 19 0
There will be likewise some saving upon the pay of the said Imperial Troops for the year 1710, as likewise by a reform made in some of the English Regiments. But it does not yet appear by the accompts from abroad when those savings commenced: so a perfect state cannot as yet be formed here. But by estimation the same may go near to be balanced by the additions in Spain in 1710 and included in the augmentation for the year 1711.
paid for the extraordinary charge of fresh provisions, fortifications and other expenses relating to the Garrison and works of Gibraltar to the end of Sept. 1710 according to the accompt of particulars in the annexed paper 51,549 0 3
paid for the extraordinary charge of mule carriages, transportation of Troops, supporting and supplying the works and Garrison at Port Mahon for the year ending 22 Dec. 1709 over and above 60,000l. included for the same in the sum of 210,000l. granted for the King of Spain and extraordinary for the service of the year 1709: according to the particulars in the annexed paper 63,830 12
for the charge of the mule carriage, supporting and supplying the fortifications and Garrison at Port Mahon, transporting of Troops and some other extraordinaries of the war in Spain in the year 1710 over and above 60,000l., part of 210,000l. granted last Sessions of Parliament as above: according to accompts and Estimates brought from Spain in the abovesaid paper 179,603 13 10
for an extraordinary charge arising upon bread and forage in the year 1709 and 1710 occasioned by the extreme dearness of corn and forage, whereby the Troops could not bear the whole expense of it out of their subsistence 84,443 11 7
£749,269 0
Besides the foregoing articles of extraordinaries there have been several payments made for services to be accompted for: but the accompts for the same not being yet adjusted it does not appear how much of them will become an extraordinary charge of the war, and therefore are not included nor demanded in this state.
Memorandum. There is nothing demanded in this Estimate for the extraordinary charge of prisoners, though the same does considerably exceed what was granted for it by Parliament, by reason [that] the exact charge thereof cannot as yet be made appear, the accompts of the persons appointed by the Government for payment of the said prisoners lying before the Auditors of her Majesty's Imprests. And the Agents of the several Regiments to which those prisoners belonged not having been able yet to adjust with their respective Paymasters abroad the accompts of their Regiments whereby it might appear how much of the said charge is to be borne by the said Regiments: the accompts of which said Regiments are now under the examination of the Comptrollers of the Army Accounts.
Memorandum: There is nothing demanded in this Estimate for the growing charge of Extraordinaries for the Garrisons and fortifications of Gibraltar from 30 Sept. 1710, the accompts of the said extraordinary charges being come from abroad only to that time: so that whatever accrues under the said head of expense from the said 30 Sept. 1710 will be an Exceeding of the war to be laid before Parliament at the end of next year.
On the Estimates detailed as above the following Votes of Supply were adopted by the House of Commons on report from Grand Committee:
For the Navy.
£ s. d.
Navy and Victualling (5 Dec. 1710, Commons Journals XVI, p. 416) 2,080,000 0 0
Ordinary (ibid.) 120,000 0 0
For the Army.
Guards and Garrisons (4 Jan. 1710–11. Ibid., p. 448) 546,108 17
Army in Flanders:
the 40,000 men (23 Dec. 1710. Ibid., p. 444) 919,092 3 6
First Augmentation of 10,000 men (4 Jan. 1710–11. Ibid., p. 448) 177,511 5 6
Second Augmentation, viz.:
Palatine Troops (ibid.) 34,251 13 4
Saxon Troops (ibid.) 43,251 12 6
Bothmar's Dragoons (ibid.) 9,369 16 6
Third Augmentation of 1609 (ibid.) 220,000 0 0
several Extraordinaries (20 March 1710–11. Ibid., p. 563) 292,369 2 4
Army in Spain and Portugal (15 Feb. 1710–11. Ibid., p. 498) 1,500,000 0 0
Subsidies to the Allies (8 Jan. 1710–11. Ibid., p. 450) 478,956 16 7
Transport (8 Jan. 1710–11. Ibid., p. 450) 144,000 0 0
For the Ordnance:
Land Service of the Ordnance (4 Jan. 1710–11. Ibid., p. 448) 130,000 0 0
Sea Service of the Ordnance (included in the Navy vote).
Other Services.
Interest on Army and Transport Debentures (8 Jan. 1710–11. Ibid., p. 450) 49,357 17 2
Bank of England for Exchequer Bill interest and cancellation (16 Jan. 1710–11. Ibid., p. 457) 45,000 0 0
sufferers at Nevis and St. Christopher (20 March 1710–11. Ibid., p. 563) 103,003 11 4
total of voted Supply for the year 1711 £6,892,172 16
(The total vote for the Army, including Transport, Subsidies and Extraordinaries, amounts to 4,364,591l. 7s. 11¾d.)
As in previous years the House made no provision whatever for interest on unfunded loans guaranteed by Parliament. It also made no provision for the shortage in the Civil List Revenue although that head was also guaranteed by Parliament. Finally it ignored the long schedules of Extraordinaries of the war detailed, pp. xix–xxii, supra.
In Committee of Ways and Means the House evolved the following series of Finance Acts to cover the Supply which it had voted as above:
9 Anne, c. 1. A 4s. Land Tax, styled the Fourteenth 4s. Aid. This Act was intended to yield 1,995,851l. 0s. 5½d. in England and 47,954l. 1s. 0d. in Scotland, or 2,043,805l. 1s. 5½d. altogether. The Treasury was authorised to borrow 1,880,000l. on credit of the Act.
9 Anne, c. 3. Act for continuing the Duties on Malt, Mum &c. The yield of this tax was not specified by way of forecast, but clauses 7 and 8 of the Act authorised a total loan of 650,000l. at 6 per cent. upon credit of the Duties, the said total sum of loan being to include transfers of unsatisfied loans on the Act 7 Anne, c. 3.
9 Anne, c. 6. Act for reviving and appropriating the Duty on Coals &c. and for granting further Duties on Candles: all for 32 years from 8 March 1710–11 as the fund for the service of a Lottery to raise 1,500,000l.
9 Anne, c. 11. Act for a General Post Office, imposing increased postal rates in order to cover or to provide 700l. a week for public services, "to raise a present Supply for carrying on the war," out of the revenue of the Post Office and to reserve for the public use one third of the produce of the said Revenue beyond or over and above the sum of 111,461l. 17s. 10d. per an. and the said 700l. per week. Ignoring the fact that the Post Office was a Crown institution or property and was further devoted and appropriated to the Civil List by Act of Parliament, this Act took 700l. a week or 36,400l. per an. of its revenue away from the Civil List and devoted it as a fund for raising Public Supply for public purposes, and further devoted to the public one third of any increase above the said 111,461l. 17s. 10d. per an. This figure was adopted as the ascertained revenue of the preceding year ended 29 Sept. 1710.
9 Anne, c. 11. An Act for laying certain Duties on hides and skins and upon vellum and parchment for 32 years from 24 June 1711 appropriated by clause 54 of the Act 9 Anne, c. 16, to be part of the fond for the 2,000,000l. Classes Lottery.
9 Anne, c. 12. An Act for laying a Duty on hops for four years from 1 June 1711: with a clause for a loan of 180,000l. thereon at 6 per cent. interest.
9 Anne, c. 16. The Act for the Classes Lottery for 2,000,000l., styled an Act for licensing and regulating Hackney Coaches &c.
To the above list should be added the Act for the South Sea Company (9 Anne, c. 15). Although that Act was a Deficiencies Act and was not intended to produce revenue for the Services, it was decided at the last moment to take 500,000l. out of its proceeds to be used for the payment of interest for the first year on the intended Capital issue. This application practically operated as a Revenue Supply.
On the assumption that these various Acts of Supply produced the sums as budgetted and as expected the result or the Revenue yield would be as follows:
£ s. d.
Land Tax anticipated yield (loan authorised) 1,880,000 0 0
Malt Duties (loan authorised) 650,000 0 0
Coals and Candles Duties 1,500,000 0 0
Post Office, 700l. per week 36,400 0 0
Duty on hops 180,000 0 0
Classes Lottery 2,000,000 0 0
South Sea Act 500,000 0 0
total expected revenue from new taxes and issues £6,680,000 0 0
The amount actually raised from all the above heads or sources within the financial year Michaelmas 1710 to Michaelmas 1711 was as follows:
£ s. d.
loans on the Fourteenth 4s. Aid or Land Tax (in money, 441,006l. 16s. 8d.; in tallies, 1,302,107l. 13s. 6½d.) 1,743,114 10
loans on Malt (in money, 6,520l.; in tallies, 412,581l. 9s. 8d.) 419,101 9 8
loans on Hops (in money, 80,000l.; in tallies, 100,000l.) 180,000 0 0
Exchequer Bills issued under the Act 9 Anne, c. 7 137,700 0 0
Lotteries:
9 Anne, c. 6, for 1,500,000l. 1,451,000 0 0
9 Anne, c. 16, for 2,000,000l. 1,571,937 4 4
£5,502,853 4
This represents a shortage of 1,177,146l. 15s. 9½d. of revenue actually realised as against revenue forecasted. In this table of actually realised yield it is very significant that the loans in money should have been so small. On absolutely first class securities, viz. Land Tax and Malt, the money market took up less than half a million, not even a fifth of the total short-term loan authorised and guaranteed by Parliament. This was not an engineered slump. It was the natural market response to the advent of a discredited gambler as Chancellor of the Exchequer.
It will thus be seen that both in its intention or forecast and in its realisation the Supply granted by the House of Commons in the first year of Harley's Government was insufficient to meet the Supply voted by the House and still more insufficient to meet the demands of the services.
The total Votes of Supply amounted to 6,892,172l. 16s. 5¾d., whereas the total Ways and Means found by the House only came to 6,680,000l., representing an initial Ways and Means shortage of 212,172l. 16s. 5¾d., as against votes and further representing an actual final shortage of 1,177,146l. 15s. 9½d. in the actual revenue receipts from the Ways and Means grants.
Under such inadequate provision how did the services fare? The sums actually paid to them during the financial year Michaelmas 1710 to Michaelmas 1711 were as follows:
Issues for the Navy
(to Robert Walpole and then to his successor, Julius Cæsar).
£ s. d.
for the arrears of the year 1702 104,274 2 9
for the arrears of the year 1706 2,190 0 0
for the arrears of the year 1709 213,773 1 6
for the arrears of the year 1710 129,250 12
for the service of 1711:
(Walpole) 560,158 13 9
(Cæsar) 482,829 7 3
total issues to the Navy £1,490,185 17 10¾
Issues for the Army.
Guards and Garrisons: £ s. d.
for the arrears of 1703 8 0 0
for the arrears of 1704 618 3 5
for the arrears of 1705 61 10 8
for the arrears of 1706 1,475 15 11½
for the arrears of 1710 91,741 11
for the service of 1711 287,298 16
total for Guards and Garrisons £650,835 10
Army Abroad: £ s. d.
for the arrears of 1709 20,941 3
for the arrears of 1710 78,445 14
for the service of 1711 3,173,135 13 8
total for the Forces Abroad £3,272,522 11 10½
Issues for the Transport.
for the service of 1711 £12,521 8
Issues for the Ordnance. £ s. d.
for the arrears of 1710 122,532 0 11½
for the service of 1711 132,500 0 0
total for the Ordnance £255,032 0 11½
Summary of issues to the following services: £ s. d.
Navy 1,490,185 17 10¾
Army 3,923,358 1 11¼
Transport 12,521 8
Ordnance 255,032 0 11½
£5,681,097 9 2
total voted Supply for the fighting services 6,674,811 7 11¾
actual issues as above to same 5,681,097 9 2
shortage of issues as against voted Supply £993,713 18
The remainder of this year's Exchequer issues can be briefly summarised as follows:
Issues for the Civil List. £ s. d.
Civil List arrears of Wm. III 127 16
Civil List of Scotland anno 1711 22,853 16
Civil List of Queen Anne anno 1711 630,931 13 8
£653,913 6
Out of the issue for the Queen's Civil List there should be deducted 139,350l. paid for repayment of loans on tin and 13,800l. issued for Public Services not falling under the head of Civil List. The deduction of these sums reduce the actual issue to the English Civil List services to 477,781l. 13s. 1d., which is nearly a quarter of a million short of the Parliamentary covenanted and guaranteed 700,000l. for the English Civil List.
Miscellaneous issues.
to the Bank of England, the East India Company, Annuities, Lotteries &c. £708,082 1 0
For interest on loans guaranteed by Parliament. £ s. d.
out of the First and Second Acts for Deficiencies 6,676 1 9
out of the Third General Mortgage 64,411 11 6
out of the Fourth General Mortgage anno 1708 13,527 19 1
out of the Fifth General Mortgage anno 1709 6,225 8 3
out of the Sixth General Mortgage anno 1710 2,610 1 1
out of the Exchequer 454,371 1 8
£537,822 8 9
net repayment of loan money (total loans taken in at the Exchequer, 2,597,516l. 8s. 8d.; total repayments of ditto, 3,048,238l. 16s. 11d.; excess of repayments over the loans taken in) £450,722 8 3
Exchequer Cash in Hand Account.
£ s. d. £ s. d.
Exchequer Remains at Michaelmas 1711:
in cash 1,233,340 16 7
in tallies 406,769 13
1,640,110 10
Exchequer Remains at Michaelmas 1710:
in cash 561,996 13
in tallies 987,884 8
1,549,881 2
betterment of cash position representing an increase of cash in hand by the withholding of payments to the services to the extent of £90,229 8
The shortage of issues to the services is covered by and explained by the shortage of revenue yield. This is the nett and outstanding result of Robert Harley's administration of the national finance for the first year of his office. At the opening of the Session the House, as his mouthpiece, had assured the Queen that it would not only support her Majesty against all her enemies but would also endeavour to trace the source of the great evil of national debt and apply a suitable remedy. The commentary on this high sounding promise is here to our hands. In the first year of his government Harley had added a million to the floating debt of the Forces by leaving it underpaid by so much. At the same time he had shirked and evaded the debt claims for War Extraordinaries and at the same time he had filched money from the Civil List by his Act concerning the Postal revenue and had reduced the Civil List income from its appointed 900,000l. for the year to 477,781l. 13s. 1d., the lowest point to which the Civil List revenue had yet fallen in Anne's reign. This Act alone illuminates the dark recesses of his tortuous mind. He had been in public life long enough to know that the term Civil List was a popular misnomer or misconception and that it was in reality simply a Civil Service provision, a yearly fund for the payment of the Civil as distinct from the military services. But he preferred to think of it or pretended to think of it as a provision for the Crown and to his scheming mind the underhand reduction of the Civil List provision made the Crown more dependent on the ministry. No thought of gratitude to the Queen who had made him entered his mind. When he made the preliminary Surveys of Deficiencies the subject of the Civil List was not even mooted and when later still he was driven to face the Civil List Deficiency he insulted his Sovereign by merely giving the Queen permission to mortgage the Civil List revenues. Under his leadership the House of Commons never voted one penny to make up the Civil List Deficiency. On the contrary, whether they realised it or not, the House connived at the robbery of the Civil List by 700l. a week out of the Post Office just as it had done previously by conniving at the robbery of the Hereditary Excise by 3,700l. a week under Wm. III: and at that, the House knew quite well that the Hereditary Excise was the private, inalienable, hereditary property of the Crown not granted by Parliament but the agreed purchase price of the surrendered feudal rights of the Crown in the matter of Wardships &c. at the Restoration.
During the reign of Anne the accumulated shortage of the Civil List Revenue was as follows, meaning by shortage the amount by which the actual receipts from the Civil List Revenue fell short of the 700,000l. per an. which was guaranteed to the Crown by the Act of 9 Wm. III, c. 23, for the Civil List:
Civil List
actual income.
£ s. d.
9 March 1701–2 to Michaelmas 1702 250,690 11
Michaelmas 1702 to Michaelmas 1703 601,083 12 5
Michaelmas 1703 to Michaelmas 1704 676,826 5
Michaelmas 1704 to Michaelmas 1705 609,151 7
Michaelmas 1705 to Michaelmas 1706 576,631 6 0
Michaelmas 1706 to Michaelmas 1707 649,625 15
Michaelmas 1707 to Michaelmas 1708 623,244 1 0
Michaelmas 1708 to Michaelmas 1709 591,825 10
Michaelmas 1709 to Michaelmas 1710 578,127 2
Michaelmas 1710 to Michaelmas 1711 522,279 15
9½ years £5,679,485 6
In 9½ years the Queen should have received 6,650,000l. at the rate of 700,000l. per an to enable her to carry on the complete circle of the Civil Administration of the country. Instead of receiving that sum the Civil List had received only 5,679,485l. 6s. 7¼d., that is to say there was a shortage of 970,514l. 13s. 4¾d. To state this figure is to put the most favourable construction on the situation. It is equivalent to agreeing that 700,000l. a year was a sufficient sum to carry on the ordinary Civil Service of the country—the Civil Service, the Judicial Service, the pensions lists, the Ambassadorial Service, the Public Works and the state and dignity of the Crown of England. Every page of this Calendar bears witness to the fact that 700,000l. per an. was not sufficient for the whole ambit of these services even if that amount had been received in full.
But even this is not the whole story. Queen Anne was intensely patriotic, and even with the knowledge that the Civil List revenue was failing and that it was being further filched from her by underhand means by Robert Harley, she still consented willingly to the allocation of sums of money out of her revenue for the use and benefit of the public—which meant of course for the purposes of the war. In the first year of the war she gave a donation of 100,000l. to the war, a gift which could only possibly come from her Privy Purse. In addition she surrendered her share in the Prizes and her husband, Prince George, surrendered his title to the Admiralty Droits. More than this, at certain times when delicate political issues were involved she stepped in and saved the situation by drawing on her own purse. She lent 40,000l. to the Emperor, she advanced over 20,000l. to the Circle of Swabia and in the interim period immediately after the Union, when the Scottish Army was being left unpaid because it had not been taken immediately on the English Establishment, she advanced over 30,000l. out of the Civil List and transmitted it post haste to Scotland to pay the soldiers. The British Parliament was in honour bound to repay this money to the Queen, but it never did repay it. The full account of the Queen's contributions out of the Civil List towards the war services and other public services is set out in the following account:
An account of what her Majesty has given out of the Civil List for the service of the public since her Majesty's accession to the Crown: distinguishing the services. (fn. 14)
Between 8 March 1701–2 and Michaelmas 1702. £ s. d. £ s. d.
paid Sir Thomas Littleton, then Treasurer of the Navy, in aid of the sum granted for Marine services anno 1702; and to be applied to the service of Sick and Wounded seamen and prisoners at war by the hands of the Treasurer for that service 7,432 12 8
paid ditto towards 21,102l. 14s. 2¼d. allowed by the House of Commons anno 1702 to discharge the debt for Sick and Wounded in the last war 6,083 14 10½
paid the Earl of Ranelagh, then Paymaster General of the Forces, towards 145,017l. 9s. 0d. granted anno 1702 for making good the Treaties with the Crown of Denmark 20,547 8 2
paid ditto towards 44,500l. granted anno 1702 for making good the Treaties with the Crown of Sweden 20,305 2 6
paid ditto for Prince Lewis of Baden 9,216 11 10
paid ditto for the Court of Wolfenbuttel 2,000 0 0
paid ditto for the Elector of Treves on his subsidy 1,406 5 0
66,991 15
Between Michaelmas 1702 and Michaelmas 1703.
paid Charles Fox, then Paymaster of the Forces, upon account for the Circle of Swabia to enable them to prosecute the war in Germany 23,923 0 0
paid the Earl of Ranelagh in aid of the sum of 352,000l. granted for Guards and Garrisons anno 1702 4,995 8 1
paid ditto in aid of 700,000l. granted for the 40,000 men anno 1702 28,012 16 10½
paid the Treasurer of the Ordnance for services in that office 426 15 9
57,358 0
Between Michaelmas 1703 and Michaelnmas 1704.
paid the Earl of Ranelagh towards making good losses by exchange in anno 1702 7,302 1 10½
paid ditto in aid of the sum of 700,000l. granted for the 40,000 men anno 1702 2,316 5 8
paid Charles Fox in aid of the sum of 833,825l. 19s. 2d. granted for the 40,000 men anno 1703 12,713 11 6
paid ditto on account of alliances with Portugal and the preparations to be made by that Crown towards the first year, to wit anno 1703 15,401 10 0
paid ditto for the King of Spain by way of a loan from her Majesty 40,000 0 0
paid ditto towards the charge of the Elector Palatine's journey to Vienna for the good of the common cause 712 7 0
paid ditto towards the charge of making good the alliances, with the Duke of Savoy pursuant to an Address of the House of Commons and brought to account as part of the public expenses of the war anno 1704 6,961 18
85,407 5
Between Michaelmas 1704 and Michaelmas 1705.
by [paid for] the Navy for the value of timber delivered per the Surveyor of her Majesty's Woods for the service thereof and brought to account as part of the Quota for Wear and Tear of the Navy anno 1705 13,351 11 0
paid Charles Fox for the Marquis de Miremont and his men sent to the assistance of the Duke of Savoy 1,600 0 0
paid ditto for Monsieur Machado to recompense for the loss of horses, waggons &c. in the Campaign anno 1704 4,000 0 0
paid ditto for the Garrison of Gibraltar 6,000 0 0
paid ditto towards arrears of Subsidy to the King of Denmark before Xmas 1704 9,500 0 0
paid ditto for Monsieur Darzillier, then residing at Genoa, for special service relating to the war 1,680 11 1
36,132 2 1
Between Michaelmas 1705 and Michaelmas 1706.
paid James Brydges, Paymaster of the Forces [Abroad], for the Earl of Galway as her Majesty's Bounty 1,000 0 0
paid ditto for the Marquis de Montandre for the like 500 0 0
paid ditto for Col. Edmund Revett in consideration of his good services in the defence of Gibraltar 200 0 0
paid ditto for Capt. Bennett for the like 200 0 0
paid ditto for Jezreel Jones for charges and disbursements by him for account of Gibraltar 565 7 6
paid ditto for Monsieur Flotard for his services towards assisting the Duke of Savoy 500 0 0
paid ditto for remittances to Monsieur Darzilier, then residing at Geneva, for account of services relating to the war in Italy 16,180 11 0
paid ditto for the States General, being the balance of an account relating to the Cevennois 1,380 5 11
paid ditto for the King of Denmark towards arrears of Subsidy [due] before Xmas 1704 7,500 0 0
28,026 4 5
Between Michaelmas 1706 and Michaelmas 1707.
by [paid for] the Navy for the value of timber delivered per the Surveyor [General] of her Majesty's Woods for the service thereof, whereof 3,154l. 1s. 6d. is brought to account as part of the Quota for Wear and Tear anno 1706 and 7,152l. 9s. 0d. as part of the Quota for ditto anno 1707 10,306 10 6
by ditto for Mitford Crow, Esq., for the charge of his passage to Barbados, where he was going Governor 367 0 0
paid James Brydges, Esq., for Monsieur Flotard for particular service relating to the war in Italy 300 0 0
paid ditto for the Marquis de Miremont for the like 400 0 0
paid Henry Mordaunt, Treasurer of the Ordnance, for John Orlebar et al., to encourage an invention for ejecting liquid fire 200 0 0
paid Peter Hume for services relating to the war 3,547 10 0
paid Sir David Nairne upon account for the pay of the Forces in Scotland to Xmas 1707 12,000 0 0
27,121 0 6
Between Michaelmas 1707 and Michaelmas 1708.
by [paid for] the Navy for the value of timber delivered by the Surveyor General of Woods for the service thereof and [is] brought to account as part of the Quota for Wear and Tear of the Navy anno 1708 5,978 8 11
by ditto for Lord Lovelace, going Governor to New York, for the charge of his passage thither 390 0 0
paid Sir David Nairne upon account of the pay of the Forces in Scotland to Xmas 1707 18,800 0 0
paid Prince Charles of Denmark on a grant from her Majesty of 4,000l. per an., clear of all charge, for quitting his pretensions to the bishopric of Eutin for the good of the common cause 8,422 10 0
33,590 18 11
Between Michaelmas 1708 and Michaelmas 1709.
by [paid for] the Navy for the value of timber delivered by the Surveyor General of Woods for the service thereof, and [is] brought to account as part of the Quota for Wear and Tear of the Navy anno 1709 4,110 4 10
paid Prince Charles of Denmark on a grant from her Majesty of 4,000l. per an., clear of all charges, for quitting his pretensions to the Bishopric of Eutin for the good of the common cause 4,100 17 6
8,211 2 4
Between Michaelmas 1709 and Michaelmas 1710.
by [paid for] the Navy for the value of timber delivered by the Surveyor [General] of her Majesty's Woods for the service thereof, and [is] brought to account as part of the Quota for Wear and Tear anno 1710 3,954 2 2
paid Prince Charles of Denmark on his grant as above 2,100 17 6
6,054 19 8
total £348,893 8 11¾
Memorandum: Her Majesty has also contributed out of her Civil List the sum of 32,679l. 11s. 9d. to aid the Deficiency of the Fond for Annuities purchased anno 1707, but because the Parliament have provided by a clause in an Act passed last Sessions that the sums so supplied shall be made good again out of the surplus (when it arises) of the said Fond, the said sum of 32,679l. 11s. 9d. is not brought to account as a sum absolutely given to the public out of the Civil List as all the rest of the aforegoing sums are.
17 January 1710–11.
In spite of the boastful and extravagant promises which the House had made to the Queen at the opening of the Session with regard to providing for the accumulation of debt on the services, the whole of this subject of the growing debt on the Civil List was ignored by Parliament. So also was the question of investigating the adequacy of the Civil List provision for the proper carrying on the Civil Administration generally. So also was the question of at last honouring the Civil List debt of Wm. III. It was in the August of this year 1711 that the Report was made on the Civil List debt owing at the time of Wm. III's decease. But as far as the House of Commons was concerned the Report might as well never have been made. The subject was not even noticed in the proceedings and the fair fame of our country was besmirched by complete disregard for the Civil List debt of over 800,000l. which had accumulated during Wm.'s reign as a result pure and simply of the insufficient Parliamentary provision for the Civil Government of England. But Harley was not content with ignoring the debt. On ever possible occasion which offered he turned round to traduce and malign William's memory just as he traduced and maligned the administration of Godolphin in the words of the Address to the Queen already quoted (see supra, p. VI). William III saw through Harley and never trusted him, and the memory of his Sovereign's disdain rankled in Harley's mind like an acid poison. But it is quite clear that there was more than this personal spite in Harley's mentality. At the outset Queen Anne did not distrust him. He owed his advancement to her, but all through his period of office as Lord Treasurer he treated Queen Anne just as scurvily and trickily in the matter of the Civil List revenue as he had done William III. If one can speak of him as having any political philosophy at all or any political principle at all, his one obsession was to reduce the Crown to dependence on the House, tacitly assuming the while that he could trick the House into dependence on himself. He was incapable of gratitude and it made no difference to him whether the Sovereign whom he was disobliging was Wm. III, who despised him, or Queen Anne, who unhappily for England placed full trust in him.
THE SOUTH SEA COMPANY ACT.
By its own declaration in the Address at the opening of the Session the House of Commons was committed to the consideration of the floating debt on the services. The outcome of the deliberations on this subject was the Act 9 Anne, c. 15, for making good [certain] Deficiencies and for satisfying the public debts and for erecting a Corporation to carry on a trade to the South Seas.
The subject of Parliamentary Deficiencies has been treated again and again in these Introductions. One and all they were due to insufficiency of voted Parliamentary Supply or deficiency of yield of taxes granted for Supply. The honour of Parliament was involved simply because it had given its guarantee for loans borrowed on such Acts of Supply. The method which the House of Commons usually followed in carrying out its guarantee was to let the various deficiencies or deficits accumulate until they became an intolerable clog on the services, then lump them all in one bill and then vote a tax fund sufficient to pay off in such and such a period the total accumulation of debt plus accrued and accruing interest. A Deficiencies Act therefore was merely a short term Sinking Fund and its purpose was not to fund an accumulation of debt but to pay it off, principal and interest, by yearly payments up to the point of complete extinction and within a comparatively short period. The first Deficiencies Act of 8–9 Wm. III, c. 20, had granted a mixed fund of revenue to sink an accumulation of Deficiencies amounting to 5,164,459l. 14s. 9¼d. The liquidation was intended to be complete within 10 years. The second Deficiencies Act, that of 1 Anne, c. 7, similarly provided or granted a fund of revenue to sink or liquidate a second accumulation of Deficiencies amounting to 2,338,628l. 15s. 5¾d. In its turn this liquidation was complete within or nearly within the appointed four years. Subsequently, after this second Deficiencies Act, the Treasury tried for a time to provide currently for fresh Deficiencies as they happened to incur. A fund (the Half Subsidies for a two year period) was appointed or granted for the purpose and was renewed annually. Each of these annual Acts or the fund annually renewed by them were styled a General Mortgage, the first Act immediately following the second Deficiencies Act of 1 Anne, c. 7, being styled "the Third General Mortgage." In this way the whole series of Sinking Fund Acts prior to the South Sea Company Act comprised the following:
1697. First Deficiencies Act or First General Mortgage, 8–9 Wm. III, c. 20, granting a fund up to Aug. 1706.
1701. Second Deficiencies Act or Second General Mortgage, 1 Anne, c. 7, granting or renewing the fund up to Aug. 1710.
1706. Third General Mortgage, 6 Anne, c. 27, renewing the 1701 Sinking Fund to August 1712.
1707. Fourth General Mortgage, 6 Anne, c. 73, renewing the same fund to August 1714.
1708. Fifth General Mortgage, 7 Anne, c. 31, renewing the same fund to August 1716.
1709. Sixth General Mortgage, 8 Anne, c. 14, renewing the same fund to Aug. 1720.
From the Third General Mortgage onwards the procedure or the technique of the Sinking Fund was different from that of the First and Second Deficiencies Acts. There was no attempt made to compile a specific list of debts or deficiencies so as to bring the work of debt liquidation up to date. Each of the renewal Acts or continuing Acts as they were styled contained a loan clause authorising so much to be borrowed on credit of the fund so continued and the primary purpose of the fund was to meet or to pay that particular loan. But in front of that loan, in each successive renewal Act, the unliquidated balance of prior debts and deficiencies was posted as a prior debt or claim to be liquidated out of renewed fund in the first place; and after the complete discharge of these preferential State creditors then the remainder income from the fund was to meet and to pay off the new loan authorised in each renewal Act. So that in each of these four General Mortgage Acts there was a double process going on, firstly of discharge of old preferential debt and secondly of new growing debt, namely the particular guaranteed loan authorised by each successive Mortgage Act.
From August 1712 onwards the fund was cut in half. By the Act 6 Anne, c. 73, the Customs granted as the nucleus of the Sinking Fund were reduced to half the figure at which they had been originally granted for the Second Deficiencies Act of 1 Anne, c. 7, but subsequently the fund was assisted by appropriating to it such surpluses as were at last emerging from previous Supply grants.
From this hasty survey it will be seen that the four General Mortgage Acts were not Deficiency Acts in the strict sense. They were ordinary Supply Acts each with a loan clause, but charged with a preferential charge of old or prior unliquidated debt remains. In this sense therefore the South Sea Company Act differed from the General Mortgage group of Sinking Fund operations. The South Sea Company Act was retrospective and independent. It was not linked up to any prior Deficiencies Acts or General Mortgage Acts. A list of floating Departmental Debts was compiled and to this list was added such further debts as were Deficiencies in the strict sense of being unliquidated loan debt and then the Act dealt with this total corpus of debt in such and such a way. In precise language the South Sea Company Act was the third true Deficiencies Act of the time of William and Anne. But there are two marked features in which the South Sea Company Act differed from its predecessors. The Acts of 8–9 Wm. III, c. 20, and of 1 Anne, c. 7, dealt purely with Deficiencies, with Parliamentary debt which had arisen from failure or deficiency of Parliamentary Supply; whereas the South Sea Company Act dealt mainly with floating debt, Departmental debt, preponderatingly the Navy Debt. In the second place the prior Acts of 8–9 Wm. III and 1 Anne were true Sinking Fund operations. They were intended to extinguish the total corpus of Deficiencies debt then outstanding and they carried out that intention. The Deficiencies with all accrued and accruing interest were paid off and the debt was completely wiped out. As against this the South Sea Company Act was a funding operation, not a Sinking Fund operation. It provided a fund for the payment of interest on a particular schedule of floating debts hitherto unprovided for by Parliament. But it made no provision whatever for the extinction of that debt. In essence the operation was on all fours with the operations which provided a fund for the Bank of England or the East India Company to pay interest on their advances to the State. The only difference lay in the class of creditors provided for. Instead of subscribers to a market flotation as in the case of the Bank of England or the East India Company, the subscribers were creditors of the State whose subscribed share in the participation was the debt already owing to them by the State.
As a funding operation the South Sea Company scheme was a sensible measure and one long overdue, for the simple reason that floating Departmental debt was not merely a clog to the fighting services but was also an intolerable hardship to the individual. If the scheme had remained true to its original function and character the South Sea Company would have been simply a Government Office for the payment of interest on a particular block of funded debt and the individual Navy creditor could have sold his debt on the open market instead of having to knock in vain at the door of the Navy Office year after year.
On the 3rd January 1710–11 on the occasion of the presentation of the Navy Debt Statement the House of Commons formally resolved "that it will take care effectually to discharge the public debts". (fn. 15) A Committee was accordingly appointed on the 10th January "to consider that part of her Majesty's Speech which relates to the public debts." (fn. 16) It was not until the 12th February that this Committee brought in its report to the House. This Report was as follows. The portions relating to the Navy Debt should be compared with the three previous returns from the Navy Office of the state of that debt for the years 1701–10 as printed in the Journals (Commons Journals XVI, pp. 219, 238, 443).
Report of the Committee appointed to examine and state the public debt of the Navy and other public offices for which no provision is made by Parliament. (fn. 17)
£ s. d. £ s. d.
at Michaelmas 1710 there was due by computation on Bills in the Second Book, viz. Pursers' Balance Bills and for Extraordinary Necessary Money, pensions, half pays, Surgeons, free gifts and other services incurred before the late [King William's] reign 14,582 10 8
On this item there is no interest running.
On the head of Wear and Tear.
There is due at Michaelmas 1710 on the present Register Books for Bills numbered in course, under the head of Wear and Tear 1,631,648l. for principal and 101,186l. 8s. 0d. for interest thereon: making 1,732,834 8 0
for freight of Hospital ships, tenders, debt at outports, and stores delivered upon contracts for which no bills were made out 46,674 11 1
for wages due to her Majesty's Yards and Rope Yards 385,134 0 0
2,164,642 19 1
Towards this there was in the hands of Sir Thomas Littleton's executrix 866l. 0s. 3d. and in the hands of Mr. Robert Walpole as Navy Treasurer 37,553l. 2s. 9d. 38,419 3 0
leaving net debt on this head of Wear and Tear 2,126,223 16 1
There is interest running on this head only on Bills numbered in Course.
On the head of Seamen's Wages.
There is due for wages to several men remaining unpaid on the Books of ships paid off since this reign [began] 205,296 8 8
by a computation, to satisfy such as may call for wages due on ships paid off in the last regin [of Wm. III] 57,824 13 5
for wages due to all her Majesty's ships now in pay, computed to Michaelmas 1710 1,483,473 0 0
to pay off all the Bills entered in Course for Pilotage, Surgeons' necessaries, Bounty to windows and orphans and other services on this head for principal 26,316l. 5s. 0d.; for interest 41l. 26,357 5 0
1,772,951 7 1
On this head there was in the hands of Sir Thos. Littleton's executrix 7,896l. 10s. 0d. and in the hands of Mr. Walpole 29,178l. 2s. 3d. 37,074 12 3
leaving net debt on this head 1,735,876 14 10
[On the above heads] the Committee observe that in 1702, 1703 and 1704 the sum of 84,515l. 12s. 8d. was paid to the Transports Commissioners out of this head and that the 8,000 Marines (supposing the Regiments to have been full) have been an extra expense of 119,675l. 8s. 3d.: and that the public will probably save a great sum on this head, especially on the first three articles, the sums on the first two being due to men discharged and dead, great part of which will not be claimed: and the computation which the [Navy] Commissioners have made on the second article is about one third of what is in their Books.
The third article is computed at the full complement of the ships.
On the head of Victualling. £ s. d.
due on Bills numbered in Course from 3 Dec. 1707 to 30 Sept. 1710, 1,501,798l. 6s. 2d. for principal and 68,315l. for interest, computed 1,570,113 6 2
for the bills of exchange from foreign parts for supply of her Majesty's ships, necessary money and extra necessary money 29,090 3 11
to the officers, labourers &c. at several ports 21,634 14 11
for extraordinary freights, demurrages to victualling ships sent to Port Mahon and into the Mediterranean with provisions for the Fleet, for which Bills are not yet made out 9,159 10 0
for short allowance money to ships at sea 33,450 0 0
ditto on Recalls 45,804 9 7
1,709,252 4 7
Towards this there was at Michaelmas 1710 in the hands of Sir Thomas Littleton's executrix 844l. 2s. 3¾d.; in Mr. Walpole's hands 14,435l. 15s. 11d.; in the hands of Mr. Knox, late Agent of Gibraltar, 103l. 5s. 9¼d.; in the hands of the Paymaster for Guards and Garrisons (being stopped from the pay of the Company at Newfoundland for provisions supplied to them by the Victualling Commissioners for the years 1705 and 1708) the sum of 1,679l. 17,062 4 2
leaving neat debt on this head 1,692,190 0 7
There is interest running on this head only on the Bills numbered in Course.
The Committee observe that a great sum on this head doth not properly belong to this account. The [Victualling] Commissioners charge 608,485l. 7s. 7d. as paid on account of the Land Forces out of which deducting the above 1,679l. there remains 606,806l. 7s. 7d. charged by them on account of Land Forces for which they received no money [from the Paymaster of the Forces]. This sum is charged for provisions and victualling Land Forces on board for the Garrison of Newfoundland, for the English Garrison at Gibraltar, for Marines, Spanish and Dutch Forces, the inhabitants and fortifications of that Garrison, part of which sum is by computation at 10d. a man a day from 30 June 1707 to 30 Sept. 1710 and at 12d. a man a day from 1 Oct. 1709 to 30 Sept. 1710 for 2,500 men when we have but two English Regiments in that Garrison which the Committee were informed by Officers belonging to those Regiments were about 1,000 effective men:
that the [Victualling] Commissioners own they have had no regular accounts from any of their Agents at Gibraltar:
that Mr. Knox, their first Agent's account is not yet passed. They have no account at all from Mr. Bowles, who succeeded Mr. Knox in June 1707, nor any account from Mr. Vere, who succeeded Mr. Bowles.
The Committee find there have been deductions made from the Garrison at Newfoundland to the year 1709; but upon examination of Mr. Sloper [and of] some of the Officers belonging to the English Regiments in Gibraltar and of several Agents [the Committee] cannot find that any deductions have yet been made from any of the Forces sent to Spain and Portugal for provisions supplied to them by the Victualling Commissioners; but in case it shall be thought reasonable to make any deductions from the Regiments sent to Spain and Portugal for those provisions or that the Dutch [should] repay what hath been furnished their Troops, or that an allowance be made for what hath been supplied to the Spanish soldiers and inhabitants at Gibraltar, or that any of the money given by Parliament for the Extraordinaries of the war in Spain and Portugal be applied to this service, whatever those sums shall be, will lessen the debt on this head; and when the deductions are made from the Garrison at Newfoundland for the last two years those will also so much lessen this debt.
Mr Sloper also acquainted the Committee that over and above the provisions which the Garrison of Gibraltar have had from the Victualling Commissioners, above 30,000l. hath been paid [by the Paymaster General of the Forces] for soft bread and other extraordinaries for that Garrison and that there is a demand of 50,000l. more on that account.
The Committee further observe that in an account delivered in to the House the 5th Jan. last, and referred to this Committee, of the particulars which have chiefly occasioned the debt of the Victualling the Victualling Commissioners make a note in the last page thereof that between the 30th of Sept. 1701 and the 30th Sept. 1710 there hath been received short of the 19s. a man a month allotted for the service of the Victualling 172,184l. 19s. 1¾d., which remark they owned to be a mistake, and acknowledged that they have received in that time over and above the 19s. a month the sum of 258,328l. 18s. 5¼d.
The Committee further observed that the Victualling Commissioners paid very high rates for bills of exchange to Lisbon and to Jamaica: that they made a contract with Sir Gilbert Heathcote which they continued (though not obliged to it) from April 1702 to Feb. 1706–7 by which he was to pay 108l. at Jamaica and receive here 100l. at 30 days' sight; that in that time there was only 587l. 10s. 0d. returned [forwarded by bills of exchange] by other persons; that at that rate Sir Gilbert Heathcote returned 67,105l. 14s. 7d.
The Committee examined Mr. Milner, Mr. Drake and Mr. Kent, West India merchants, who acquainted them that they never knew the exchange at Jamaica since 1701 to be under 20l. per cent. [discount], that they generally received there 130l. and sometimes 135l. for 100l. to be paid at 30 days' sight here.
The Committee find that from Feb. 1706–7 the Victualling Commissioners employed other merchants [for exchange remittances] and from that time have had 18 per cent. allowed from Jamaica till lately and that now they have 20l. per cent. allowed: and that the debt of the [Victualling] Office was much greater when they had 18l. and 20l. per cent. allowed than when they had but 8l. per cent.
Sick and Wounded.
There is due for the service of Sick and Wounded and for subsistence of French prisoners the neat sum of 54,284 0
The Committee observe on this head that the Navy Commissioners in their Estimate made their debt on this head 84,880l. 10s. 10d.; but the Committee upon examination of the Commissioners of Sick and Wounded find that 30,596l. 10s. 9½d. is a provisional account for the current year and therefore have deducted it, which reduces the Debt to the above 54,284l. 0s. 0½d.
total £5,623,157 2
It appeared to the Committee, by Mr. Hawes, that at Michaelmas 1710 there was in the hands of Sir Thomas Littleton's executrix on reversions on Annuities the sum of 46,483l. and in the hands of Mr. Walpole tallies to a total of 446,134l. 16s. 9½d. as follows:
£ s. d.
on the 12th 4s. Aid 13,000 0 0
on the 12th 4s. Aid 55,497 14
on Subsidies anno 1710 129,250 12
on Candles 93 19 11¾
on Malt anno 1710 29,930 0 0
on Half Subsidies anno 1709 183,763 14
on the General Mortgage 1707 2,371 8 10
on the General Mortgage 1707 14,563 1 2
on the General Mortgage 1708 10,936 0 2
on the General Mortgage 1709 6,728 5 5
£492,617 16
leaving the neat Debt of the Navy exclusive of the Register Office £5,130,539 5 5
The Navy Commissioners charge the debt for the Register Office at £410,889 0 2
They acquainted the Committee that this [Register Office] debt arises from the 40s. a man granted by the Act [7–8 Wm. III, c. 21] to such seamen as shall register themselves: of which sum no part hath been paid: and that as that Act is drawn they do not know any advantage it hath been to the Publick. The Committee do not find that any provision was ever made by Parliament for the same.
Ordnance Office Debt.
The Committee have examined the debt of the Office of Ordnance referred to them and have heard the persons of that Office: upon which it appeared that at Michaelmas 1710 the debt of that Office stood as follows: £ s. d. £ s. d.
due on debentures passed to artificers for goods delivered for Land and Sea Service of the Ordnance; on Bills in the Office; [sums] to be allowed to artificers for stores received upon warrants not completed; for stores and freight at Plymouth and Portsmouth; for works performed at Tilbury, Sheerness, Chatham and the other forts and castles on the river Medway; and for what is due on account of the fortifications in South and North Britain and what is due to Portugal 281,314 0 0
due to the Holland Train; the Trains in Spain and at Port Mahon; the officers at Gibraltar; engineers and storekeepers at New York, Jamaica, Barbados and Lord Shannon's Expedition; fireworkers attending the bomb vessels in the Mediterranean; freight of ships attending at Lisbon, Port Mahon and other ports; salaries; and rents of storehouses 41,396 11 10¼
322,710 11 10¾
They [the Principal Officers of the Ordnance] owned that there was in the hands of the Treasurer of the Ordnance at Michaelmas 1710 the following tallies:
on Low Wines 28,592 8
on Subsidies 1709 41,500 0 0
on Subsidies 1710 61,460 14
on Malt 1710 27,206 10 10
on Malt 1710 20,000 0 0
on Malt 1710 20,000 0 0
on Candles 15,332 14
and in Exchequer Bills 10,238 1
224,330 10
But the [Ordnance] Officers say there ought to be deducted out of the above tallies 42,000l. for buying lands at Portsmouth and 13,944l. 14s. 0d. for carrying on the present fortifications: in all 55,944 14 0
168,385 16
which being deducted the neat debt of the Office of Ordnance is £154,324 15
The Committee observe that part of this debt is by estimation.
Transport Service Debt.
(This statement is to be compared with that supra, p. 15, presented to the House by the Transport Commissioners.)
The Committee have examined the estimate of the debt of the Transport Service referred to them and have heard the [Transport] Commissioners and other persons: upon which it appeared that there was due by the [Bill] Register for Transport Bills issued out and numbered to be paid in course, for freight of shipping, provision and other necessaries from 5 Jan. 1707–8 to 30 Sept. 1710 as follows:
for freight of shipping to transport Forces to Portugal and Spain 402,188 6 8
for hay, oats, bread, beer, cheese, cask, bedding, cabins, cradles, stabling and other necessaries 18,009 3 2
for freight of ships which transported Forces to Holland this year 3,689 0 9
423,886 10 7
for interest of the above Bills at Michaelmas 1710 38,535 3 0
The [Transport] Commissioners further charge for ships hired in Ireland, at London, Portsmouth and Lisbon by the month to transport Forces to Portugal and Spain whose accounts are not yet adjusted and for which no Bills have yet been numbered or issued, great part of which ships were running in pay at Michaelmas 1710 91,850 17 9
554,272 11 4
It appeared to the Committee that at Michaelmas 1710 there was in the hands of the Treasurer and Paymaster of Transports tallies as follows, viz.:
on the Land Tax 1708 12,421 8
on the Half Subsidies 1708 29,687 10
on the General Mortgage 1709 10,000 0 0
on Malt 1710 17,139 8 2
69,248 7
Over and above this sum in tallies, which the Transport Commissioners delivered in to the House in their Estimate, the Committee upon examination found by an account signed by Samuel Atkinson and John Henley that there was in their hands as Commissioners for Transportation in the late war 301l. 11s. 8d. in money and 1,500l. in tallies on Coal and Culm, on which tallies the interest from 14 Jan. 1698–9 to 2 June 1710 at 7 per cent. was 1,195l. 5s. 6d.: in all 2,996 17 2
also Samuel Atkinson and Nicholas Roope owned that at Michaelmas 1700 there was in their hands in money 2,939 10
(on 7 Dec. last they paid 2,429l. 0s. 4¾d. thereof to Thomas Micklethwaite, the present Treasurer of the Transports and have now in their hands the remaining 510l. 10s. 5d.)
there is due from Mr. Nutin, late Treasurer of Transports, and his security 2,867 17 0
there is due from Mr. Mason, late Treasurer of Transports, and his security 6,991 4 2
there is due to the Transport Office for deductions made from the soldiers transported to Flanders by warrant from her Majesty 13,227 9 2
(which sum is almost all already stopped and in the Army Paymaster's hands: the difference between what the Paymaster's Office was to be charged with and what the Transport Office charges them with is 369l. 11s. 4d.)
at Michaelmas 1710 there was in the hands of Mr. Micklethwaite, Treasurer and Paymaster of the Transports, in money and Exchequer Bills 31,210 0
129,481 5 11¼
leaving as the neat debt for the Transport service at Michaelmas 1710 £424,791 5
Upon examination of the Transports Commissioners the Committee cannot find that any deductions have been made from the Forces sent to Spain and Portugal. By an Estimation given in by the said Commissioners the hay, oats and water cask furnished since her Majesty's accession have cost 24,031l. 14s. 11d. If it shall be thought reasonable to make any deductions [from Army pay] on that account whatever they amount to will in so much lessen this debt. The Commissioners also produced the copy of a warrant from her Majesty to make deductions from the Forces sent to Flanders; and therefore the Committee have brought the said deductions to account.
Upon perusal of Mr. Nutin's and Mr. Mason's accounts and examining Mr. Morgan, Deputy Remembrancer, the Committee find that Mr. Nutin's security gave bond only for 2,000l., which hath not answered his [Nutin's] debt: and that Mr. Mason's security are bound for a greater sum than his debt amounts to and that they are able to pay it, but that the late Lord Treasurer [Godolphin] did by [his] warrant dated 1 Aug. 1710 stop process till the last day of Michaelmas term last.
Army and Transport Debentures.
Upon examination of Mr. Jett it appeared to the Committee that the debt, not provided for by Parliament, on Army and Transport Debentures on account of the last war was:
on Army Debentures: £ s. d. £ s. d.
for principal 634,973 3 11
for interest to Michaelmas 1710 over and above the provision made by Parliament 25,617 6
660,590 10
on Debentures made out for one day's [deduction of Army] pay, for Chelsea Hospital:
for principal 18,605 0 4
for interest as above 697 13 9
19,302 14 1
on Debentures for the [Irish] Transport service:
for principal 333,578 19 5
for interest as above 5,184 14
338,763 13
£1,018,656 17
Deficiencies. £ s. d. £ s. d.
Upon examination of Mr. Clayton it appeared to the Committee that there is unpaid upon the Register for an Act 9 Wm., c. 13, for laying a Duty on Coals and Culm and the Poll Act passed in the same year 9,000 0 0
and for interest thereof computed to 18 Nov. 1710 1,440 0 0
and that there is unpaid upon the Register for the Act 1 Anne, St. 2, c. 4, for Continuing the Duties on Coal, Culm and Cinders 1,415 4 0
and for interest thereof computed to 15 Jan. 1710–11 169 17 0
£12,025 1 0
The General State of the unprovided Publick Debts of the Navy and other Public Offices at Michaelmas 1710. £ s. d.
the Debt of the Navy and for services performed by them on account of Land Forces, exclusive of the Register Office 5,130,539 5 5
the Debt of the Office of Ordnance 154,324 15 8
the Debt of the Transport Office 424,791 5
the Army [arrears] and Transport Debentures for the late [1691] war 1,018,656 17
on Deficient tallies, principal and interest to the time before mentioned 12,025 1 0
total £6,740,337 5
The Committee endeavoured to have stated the Debt to Xmas 1710, but were informed by the Commissioners of the Navy, of Sick and Wounded and of Ordnance that they could not in any reasonable time make up that account on the head of Seamen's Wages, Sick and Wounded, or the Ordnance: but they gave the Committee the following Estimate of the increase of the Debt on the following heads between Michaelmas 1710 and 31 Dec. 1710: £ s. d.
on the head of Wear and Tear, Bills numbered in Course increased between Michaelmas and Xmas, principal and interest 108,671 3 0
deduct on that head for what the Debt for Yards and Rope Yards is less at Xmas than at Michaelmas 11,951 0 0
remains, increase on this head 96,720 3 0
Bills numbered in Course for Victualling are increased in that time, principal and interest 228,275 12 5
the Transports Commissioners acquainted the Committee that the Bills made out in that time for Transport service and interest amount to 41,524 1 0
interest in that time on Army and Transport Debentures of the late war 12,339 9
£378,859 5
Upon examination of Mr. Tilson the Committee found that her Majesty had been pleased to give of her Civil List, in aid of public services, voted or address for by Parliament in the first year of her reign 100,000 0 0
by timber delivered to the use of the Navy for the years 1705, 1706, 1707, 1708, 1709 and 1710 37,700 17 5
Memorandum: Mr. Tilson values this timber at a greater price than doth Mr. Wilcox, Surveyor General of Woods.
that her Majesty hath been pleased to give more to the above [public] services since the first year of her accession to the Crown 7,052 13
£144,753 10
Her Majesty was also pleased to contribute out of her Civil List 32,679l. 11s. 9d. to aid the Deficiency of the Fond for Annuities anno 1707: but there being a clause in an Act passed last Session of Parliament that the sums so applied in aid shall be made good again, the Committee find by that clause the above sum is given back to her Majesty, but cannot find that it was ever asked from the throne or voted in a Committee of Supply.
The Committee also found by an account delivered by Mr. Tilson that the Remains in the Exchequer at Michaelmas 1702 and what had been paid into the Exchequer between Michaelmas 1702 and Michaelmas 1710 out of Surplusage or unappropriated money amounted to 525,460l. 13s. 1¼d. of which sum 8,235l. 10s. 1½d. remained in cash at Michaelmas last, but in that account the Committee find very considerable sums paid to services neither voted nor addressed for as enacted by Parliament:
that there are several sums paid to Lord Ranelagh since he was discharged from the office of Paymaster, though there are in his hands great sums of the public money not accounted for.
There is money paid for rewards to several persons, for charity money, to pay debts of King Charles II, for repairing the Guard House at Whitehall and for several other services not voted by Parliament.
Ordered: that the said Report be referred to the consideration of the Committee of the Whole House who are to consider further of the Supply granted to her Majesty.
To this statement drawn by the House of Commons Committee on Public Debts there should be appended two other statements of account which are given in the Journals, the first statement setting out the full account of Army and Transport Debentures, the second giving the then existing Parliamentary Deficiencies pure and simple, e.g. of unrepaid loan money charged on Parliamentary funds.
Army and Transport Debentures.
Account of Public Debt not provided by Parliament in Mr. Jett's Office for payment of interest on Army and Transport Debentures. (fn. 18)
The several species of Debentures made out. The whole issued. What satisfied by the purchase of forfeited lands in Ireland. The residue is the public debt unprovided for by Parliament.
£ s. d. £ s. d. £ s. d.
Debentures for [arrears of] pay and clothing of the Army 1,127,715 17 4 492,742 13 5 634,973 3 11
Debentures for one day's pay [deduction from the Forces] for Chelsea Hospital 22,425 3 3 3,820 3 3 18,605 0 4
Debentures for the Irish Transport service made out by the late Commissioners for Transportation 298,286 15 3 45,905 15 10 252,380 19 7
Debentures for Transport service [in the years 1693 and later] made out by the late Commissioners for the accounts of the Debts of the Army, Navy and Transport over and above the money due for that [Transport] service for which Debentures were made forth by the said late Commissioners for Transportation: viz. on such of them as had an interest upon them for nonpayment of freight within one month after discharge of the ship 74,457 10 4 39,006 18 11 35,450 11 5
on such of them made out by the said late Commissioners for Accounts, Debts of the Army &c. as were without any such interest 21,021 12 9 9,645 9 1 11,376 3 8
on Debentures made out by the said late Commissioners for Accounts of the Debts of the Army &c. for interest of the debt due for Transport service in 1693 from the time the same became due according to the charter party to the 25th March 1702 by the Act 13–14 Wm. III, c. 1 31,593 11 5 20,589 1 6 11,004 9 11
on Debentures made out by the said late Commissioners for Accounts of Debts of the Army &c. for the Dutch and other foreign transport ships employed for the reduction of Ireland as by the Act 1 Anne, St. 2, c. 24 23,728 2 6 361 7 8 23,366 14 10
£1,599,228 13 4 £612,071 9 8 £987,157 3 8
Mr. Clayton of the Exchequer presents an account of all such public debts or Parliamentary Funds as appear in the Office of the Auditor of the Receipt [to be arisen by deficiency] and are not provided for by Parliament. (fn. 19)
£ s. d.
Act of 9 Wm. III, c. 13, for a Duty on Coals and Culme, and 9 Wm. III, c. 38, for a Quarterly Poll with loan clause for 500,000l. (100,000l. thereof at 7 per cent. and 400,000l. at 8 per cent.), there remains unpaid [not repaid] and unprovided for by Parliament 9,000 0 0
by an Act 1 Anne, St. 2, c. 4, for a Duty on Coals, Culme and Cinders 500,000l. was to be borrowed, 200,000l. thereof at 5 per cent. and 300,000l. at 6 per cent. On this Act there remains unpaid [not repaid] and unprovided for by Parliament 1,415 4 0
by an Act 4–5 Anne, c. 1, for the 1706 Land Tax 1,850,000l. is to be borrowed at 5 per cent. On this Act there remains unpaid [not repaid] 38,917 12 10
by an Act [6 Anne, c. 1] for the 1707 Land Tax 1,850,000l. is to be borrowed at 5 per cent. Upon this Act there remains unpaid [not repaid] 59,083 12 6
by an Act 6 anne, c. 35. for the 1708 Land Tax 1,880,000l. is to be borrowed at 5 per cent. Upon this Act there remains unpaid [not repaid] 18,705 12 10
by an Act 7 Anne, c. 3, for continuing the Malt Duty for the service of the year 1709; by which 650,000l. was to be borrowed by (1) transfers of unrepaid loans at 5 per cent.; (2) fresh loans at 6 per cent. Upon this Act there still remains unpaid [not repaid] 230,898 10 4
£358,020 12 6
To these statements and accounts may be added finally the account of the distribution of the 220,000l. granted by Parliament for the third Augmentation of the Forces.
A Distribution of the 220,000l. granted for the Troops of [the Third or 1709] Augmentation taken into the service of her Majesty and the States General for the year 1709.
As likewise of the 50,000l. granted for her Majesty's proportion of the extraordinary forage and carriages provided for the Forces in Flanders in the service of her Majesty and the Allies in the winter of 1709. (fn. 20)
£ s. d. £ s. d.
for the pay of the said [10,000] Troops of Augmentation from the respective days of their entering into service to 31 Dec. 1709 N.S., together with their extraordinary expenses 126,856 10 0
her Majesty's share of the extraordinary charge of forage, carriages, bread and bread waggons to the end of the 1708 Campaign by reason of the length and lateness of the said Campaign 49,288 2 3
her Majesty's share of the extraordinary charge of forage and carriage thereof during the winter quarters 1708–9 53,882 13 5
for the English Foot, in consideration of the length of the 1708 Campaign, towards providing camp equipage for the soldiers 4,067 8 6
107,238 4 2
for the pay of several General [or Staff] Officers, Aides de Camp and Majors of Brigade of her Majesty's Subject Troops in Flanders for the years 1708 and 1709 according to their commissions and the posts wherein they served, for which they had no provision upon the Establishments or Estimates 18,686 10 0
for the horses lost by the English Horse and Dragoons in the Low Countries in 1707 and 1708 2,020 0 0
£254,801 4 2
Remains [to complete 270,000l.] towards answering the demands of the English Horse and Dragoons for horses lost in the battle near Mons and some other extraordinary charges and expenses incurred in the late Campaign not demanded of Parliament by reason that the accounts of the same have not been examined and proved 15,198 15 10
out of the said Remains of 15,198l. 15s. 10d. there has been paid, since the delivering in the aforesaid Distribution, the following sums:
for buying horses for the Horse and Dragoons of her Majesty's Subject Troops in the Low Countries for horses lost upon service in the 1709 Campaign, pursuant to her Majesty's warrant 4,510 0 0
for the extraordinary expenses of 10 Battalions sent from Ostend upon the late invasion on Scotland with their General Officers, pursuant to her Majesty's warrant 2,700 0 0
£7,210 0 0
thus leaving 7,988l. 15s. 0d. for some other extraordinary charges and expenses of the war incurred in the 1709 Campaign, hath been advanced abroad upon account of the demands of the Foreign Troops for horses lost in the 1709 Campaign to enable them to take the field; but the accounts thereof not being yet transmitted from abroad the exact state of the said demands cannot be yet laid before the House. £270,000 0 0
A Distribution of the sum of 220,000l. granted for the Troops of Augmentation taken into the service of her Majesty and the States General, for the year 1710 so far as the same yet appears from the accounts thereof transmitted from abroad.
£ s. d. £ s. d.
for the Prussians: for 12 months' Subsidy ending 31 Dec. 1710 N.S. 68,576 3 9
for the Saxons: for their ordinary pay for the year ending 22 Dec. 1710 33,025 10 11¼
for eight months' pay to two additional Saxon Regiments to 22 Dec. 1710: by estimate 20,190 10 0
53,216 0 11¼
for the Troops of Trèves: for a year's pay ended 22 Dec. 1710 9,441 15
Memorandum: The accounts of the demands of the Prussians for agio, bread and forage and other extraordinaries, and the extraordinaries of the Saxon Troops and of the Regiment of Trèves not being yet transmitted from abroad, the same is not inserted in this Distribution: to which there is likewise to be added (when the accounts thereof are all transmitted over) the extra charge of forage in winter quarters and upon the Troops taking the field early in the Spring; as also for the exceedings of the bread and bread waggons not yet fully adjusted.
With the assistance of the above detailed Reports and Statements the House of Commons proceeded to the elaboration of the New Deficiencies Act with the purpose of funding the total body of debt, that is to say of settling a fund sufficient to pay the interest on the total body of it. The legislative history of the Bill in the Commons was so engineered as to make the debates on it a vehicle for the expression of condemnation of Whig finance and of Godolphin finance in particular. But for the moment I pass this by. The Bill for the South Sea Company, 9 Anne, c. 15, received the royal assent only a day or so before the prorogation and at the end of a Session which had been prolonged by more than three months beyond the normal length of a Parliamentary Session. In its final form the Act providing for the funding of the following series of debts and deficiencies:
£ s. d.
5,130,539 5 5 for the debt of the Navy and for services performed by the Navy on account of the Land Forces up to 29 Sept. 1710 exclusive of the debt for the Register of Seamen.
154,324 15 for the debt of the Office of Ordnance to the same date.
424,791 5 for the [debt of the Office for] Transport service to the same date.
1,018,656 17 for the [old debt] represented by Army and Transport Debentures for the service of the last war, for principal and interest to the same date.
12,025 1 0 for principal and interest to the same date on deficient tallies and orders for money lent on the Act of 9 Wm. III, c. 13, and 1 Anne, St. 2, c. 4, for Duties on Coals, Culme and Cynders.
378,859 5 computed for debts incurred between 29 Sept. 1710 and 25 Dec. 1710 in the several Offices of the Navy, Victualling and Transport and for interest on the aforesaid Army and Transport Debentures during the same time.
9,375 0 0 to satisfy the money due upon the account of Subsidies to the Elector of Hanover and Duke of Zelle, pursuant to the Treaty of 14 May 1696.
7,128,571 10 11
85,000 0 0 for the interest from 25 Dec. 1710 to 25 Dec. 1711 on such of the said several debts as do carry interest.
7,213,571 10 11
1,371,428 9 1 representing the sum of 1,296,552l. 9s. 11¾d. principal money lent into the Exchequer on the Act of 8 Anne, c. 14, for continuing several Impositions &c. and the interest thereon, by reason that the funds settled by the said Act for payment of money so lent thereon do not yet take place, so that no interest has yet been paid on the money so lent, which interest to the 25th March 1711 is computed to be 74,875l. 19s. 1¼d., making together the above sum.
8,585,000 0 0
386,325 0 0 for interest for 25 March 1711 to 25 Dec. 1711 on the said total sum of 8,585,000l. at 6 per cent.
8,971,325 0 0 for the sum total of said debts, sums of money and interest to 25 Dec. 1711.
500,000 0 0 for the service of this present year.
£9,471,325 0 0 total figure.
Therefore in order to the paying of an interest or annuity on the said total figure by quarterly payments amounting in the whole by computation to the sum of 568,279l. 10s. 0d., the Parliament does hereby grant and continue for ever the Impositions and Additional Impositions as in the Act of 8 Anne, c. 14; and the surpluses of former Acts relating thereto; and the Duties on Salt and Rock Salt as in the said Act of 8 Anne, c. 14, and the reversion of the Duties on Candles, Clerks and Apprentices as in the Act 8 Anne, c. 5.
Thus the yearly fund payable to the South Sea Company was to be 568,279l. 10s. 0d. to enable it to pay interest on capital or principal Debt of 9,471,325l.: and that fund was to be raised out of the said recited Duties. If the Duties so granted should prove deficient Parliament was to make good the Deficiency. If they should yield a surplus such surplus was to go towards paying off the principal.
This was the first big Funding operation in the strict sense of the term which had occurred in English financial history: and in itself the operation was unimpeachable from the point of view of principles of national finance. The element of gambling was only introduced when Harley superimposed a Trading Company scheme what was in essence a pure debt funding operation. There was of course plenty of authority for such an idea. Both the Bank of England and the East India Company were instances of such a composite institution. But in their case the trading purpose was the basis of the institution and was to prove the foundation of the credit of the concern, so that each could appeal successfully to the public for subscriptions on its own merits. But in the case of the South Sea Company the trading basis of the institution was practically non-existent. As a trading flotation the affair was a pure gamble, and faithfully reflected Harley's gambling mentality. The second objectionable feature about the scheme was the raising of 500,000l. out of it for the current service Supply of the year 1711. This was to prove a precursor to the expansion of the Company's capital in the following year and might conceivably have led to the device becoming permanent feature of the mechanism of Supply. It is fortunate for the financial probity of England that such a development was not fostered, otherwise we might have seen Supply raised by a fictitious flotation of such and such an amount intended to be instantly added on to the funded debt, instead of the true system of raising Supply by taxation. The third objection to the scheme was that the list of public debt intended to be funded was incomplete. It did not include the Civil List debt which was pressing as grievously upon the Civil Service and upon the domestic administration of the country as the Navy debt was pressing upon the Naval Service. The course of Harley's administration of the Treasury proved that this omission was deliberate and intentional.
In Harley's first year of office the question of the revision of the Equivalent payable to Scotland under the Treaty of Union was already beginning to cast its shadow before. More than half of the provisional or interim seven-year period had elapsed during which the Commissioners of the Equivalent were to calculate the effect of any change in the trend of the Customs and Excise in Scotland as compared with the purely English parallel figures. The calculation in order to be understandable involves an explanation of the financial basis on which the Union with Scotland had been agreed.

Footnotes

  • 1. Commons Journals XVI, p. 402, 27 Nov. 1710.
  • 2. Ibid., 27 Nov. 1710.
  • 3. Commons Journals XVI, pp. 405–6, 30 Nov. 1710.
  • 4. Commons Journals XVI, pp. 407, 411, Dec. 1–2.
  • 5. Commons Journals XVI, p. 447, 4 Jan. 1710–11.
  • 6.
  • 7. Treasury Board Papers, Vol. CXXXI, No. 1E.
  • 8. Commons Journals XVI, p. 429, 11 Dec. 1710.
  • 9. Treasury Board Papers, Vol. CXXXI, No. 2.
  • 10. Commons Journals XVI, p. 428, 8 Dec. 1710.
  • 11. Commons Journals XVI, p. 483, 7 Feb. 1710–11.
  • 12. Ibid., pp. 527–8, 28 Feb. 1710–11.
  • 13. Treasury Board Papers, Vol. CXXXI, No. 1B.
  • 14. Treasury Board Papers, Vol. CXXXI, No. 19.
  • 15. Commons Journals XVI, p. 446.
  • 16. Ibid., p. 451.
  • 17. Commons Journals XVI, pp. 488–493, 12 Feb. 1710–11.
  • 18. Commons Journals XVI, p. 435, 15 Dec. 1710. For the text of the Officers' petition, see ibid., p. 449, 8 Jan. 1710–11.
  • 19. Commons Journals XVI, p. 434, 14 Dec. 1710.
  • 20. Ibid., p. 437, 19 Dec. 1710