THE COMMONS PASS THE SOUTH-SEA ACT, &c.

On the sixth day of May, the king, going to the house of peers, gave the parliament to understand that the fleet under sir George Byng, which had sailed to the Baltic to observe the motions of the Swedes, was safely arrived in the Sound. He said he had given orders for the immediate reduction of ten thousand soldiers, as well as directions to prepare an act of indemnity. He desired they would take proper measures for reducing the public debts with a just regard to parliamentary credit; and that they would go through the public business with all possible despatch and unanimity. Some progress had already been made in deliberations upon the debt of the nation, which was comprehended under the two heads of redeemable and irredeemable incumbrances. The first had been contracted with a redeemable interest; and these the public had a right to discharge: the others consisted of long and short annuities granted for a greater or less number of years, which could not be altered without the consent of the proprietors. Mr. Robert Walpole had projected a scheme for lessening the interest and paying the capital of those debts, before he resigned his place in the exchequer. He proposed, in the house of commons, to reduce the interest of redeemable funds, and offer an alternative to the proprietors of annuities. His plan was approved; but, when he resigned his places, the ministers made some small alterations in it, which furnished him with a pretence for opposing the execution of the scheme. In the course of the debate, some warm altercation passed between him and Mr. Stanhope, by which it appeared they had made a practice of selling places and reversions. Mr. Hungerford, standing up, said he was sorry to see two such great men running foul of one another; that, however, they ought to be looked upon as patriots and fathers of their country; and since they had by mischance discovered their nakedness, the other members ought, according to the custom of the East, to turn their backs upon them, that they might not be seen in such a shameful condition. Mr. Boscawen moved that the house would lay their commands upon them, that no further notice should be taken of what had passed. He was seconded by Mr. Methuen: tha house approved of the motion; and the speaker took their word and honour that they should not prosecute their resentment. The money corporations having agreed to provide cash for such creditors as should be willing to receive their principal, the house came to certain resolutions, on which were founded the three bills that passed into laws, under the names of “The South-Sea act, the Bank act, and the General Fund act.” The original stock of the South-Sea company did not exceed nine millions four hundred and seventy-one thousand three hundred and twenty-five pounds; but the funds granted being sufficient to answer the interest of ten millions at six per cent., the company made up that sum to the government, for which they received six hundred thousand pounds yearly, and eight thousand pounds a-year for management. By this act they declared themselves willing to receive five hundred thousand pounds, and the eight thousand for management. It was enacted, that the company should continue a corporation until the redemption of their annuity, towards which not less than a million should be paid at a time. They were likewise required to advance a sum not exceeding two millions, towards discharging the principal and interest due on the four lottery funds of the ninth and tenth years of queen Anne. By the Bank act the governors and company declared themselves willing to accept an annuity of eighty-eight thousand seven hundred and fifty-one pounds, seven shillings and tenpence halfpenny, or the principal of one million seven hundred and seventy-five thousand and twenty-seven pounds, seventeen shillings and tenpence halfpenny, in lieu of the present annuity, amounting to one hundred and six thousand five hundred and one pounds, thirteen shillings and fivepence. They also declared themselves willing to discharge, and deliver up to be cancelled, as many exchequer-bills as amounted to two millions, and to accept of an annuity of one hundred thousand pounds, being after the rate of five per cent, redeemable after one year’s notice; to circulate the remaining exchequer-bills at three per cent, and one penny per day. It was enacted, that the former allowances should be continued to Christmas, and then the bank should have for circulating the two millions five hundred and sixty-one thousand and twenty-five pounds remaining exchequer-bills, an annuity of seventy-six thousand eight hundred and thirty pounds, fifteen shillings, at the rate of three pounds per cent, till redeemed, over and above the one penny a-day for interest. By the same acts the bank was required to advance a sum not exceeding two millions five hundred thousand pounds, towards discharging the national debt, if wanted, on condition that they should have five pounds per cent, for as much as they might advance, redeemable by parliament. The General Fund act recited several acts of parliament, for establishing the four lotteries in the ninth and tenth years of the late queen, and stated the annual produce of the several funds, amounting in all to seven hundred and twenty-four thousand eight hundred and forty-nine pounds, six shillings and tenpence one-fifth. This was the General Fund; the deficiency of which was to be made good annually out of the first aids granted by parliament. For the regular payment of all such annuities as should be made payable by this act, it was enacted, that all the duties and revenues mentioned therein should continue for ever, with the proviso, however, that the revenues rendered by this act perpetual should be subject to redemption. This act contained a clause by which the sinking fund was established. The reduction of interest to five per cent, producing a surplus or excess upon the appropriated funds, it was enacted, that all the monies arising from time to time, as well for the surplus, by virtue of the acts for redeeming the funds of the hank and of the South-Sea Company, as also for the surplus of the duties and revenues by this act appropriated to make good the general fund, should be appropriated and employed for the discharging the principal and interest of such national debt as was incurred before the twenty-fifth of December of the preceding year, in such a manner as should be directed and appointed by any future act of parliament, to be discharged out of the game, and for no other use, intent, or purpose whatsoever.