year by taxes to be levied within that year, lest the unaccustomed weight of them should create murmurs among the people. It was therefore the policy of the times to anticipate the revenues of their posterity, by borrowing large sums for the current service of the state, and to lay no more taxes upon the subject than would suffice to pay the annual interest of the sums so borrowed, by this means converting the principal debt into a new species of property, transferable from one man to another, at any time, and in any quantity. An early instance of this system occurred at Florence, A. D. 1344, the government of that state then owing about 60,000%. sterling, and being unable to pay it, formed the principal into an aggregate sum, called, metaphorically, a mount or bank, the shares whereof were transferable like our stocks, with interest at 5 per cent., the prices varying according to the *exigencies of the state(k). This policy of [*390] the English parliament laid the foundation of what is called the national debt: for a few long annuities created in the reign of Charles II. will hardly deserve that name. And the example then set has been so closely followed during the long wars in the reign of queen Anne, and since, that the capital of the national debt (funded and unfunded) amounted in 1867 to about seven hundred and seventy-seven millions, to pay the interest of which the country has to bear an annual burden of over twenty-six millions. The system above mentioned, though recourse to it may be sometimes needed, is open to the objection that it weakens the internal strength of a state, by anticipating those resources which should be reserved to defend it in case of necessity. The interest we now pay for our debts might be nearly sufficient to maintain any war, that national motives could require.

The products of the several taxes imposed upon the nation were originally separate and distinct funds, being securities for the sums advanced on each several tax, and for them only. But at last it became necessary, in order to avoid confusion, as they multiplied yearly, to reduce the number of these separate funds, by uniting and blending them together, superadding the faith of parliament for the general security of the whole. They were accordingly first reduced into three capital funds: the aggregate fund, and the general fund, so called from such union and addition; and the South Sea fund, being the produce of the taxes appropriated to pay the interest of such part of the national debt as was advanced by that company and its annuitants. These separate funds were made mutual securities for each other, and the whole produce of them thus aggregated became liable to pay such interest or annuities as had been formerly charged upon each distinct fund, the faith of the legislature being pledged to *supply any casual deficiencies. Afterwards, by stat. 27 Geo. 3, c. 13, [ *391] ss. 47, et seq., these three funds were united together into the "consolidated fund;" and by 56 Geo. 3, c. 98, the consolidated fund of Great Britain was combined with that of Ireland, forming the consolidated fund of the United Kingdom, which is pledged for the payment of the interest of the national debt, besides being liable to the payment of the allowances to the royal family and the expenses of the civil government charged thereupon, as subsequently explained (1).

The customs, excise, and other taxes, which are to support these funds, depending on contingencies, must necessarily be of a very uncertain amount;

(k) Pro tempore, pro spe, pro commodo, min- (1) Post, p. 394.

uitur eorum pretium atque augescit. Aretin.

but though some of them have proved unproductive, and others deficient, the sum total has sometimes been considerably more than was sufficient to answer the charge upon them. The surplusses therefore of the three great national funds, the aggregate, general, and South Sea funds, over and above the interest and annuities charged upon them, were directed by stat. 3 Geo. 1, c. 7, to be carried together, and to attend the disposition of parliament; and were usually denominated the sinking fund, because destined to sink and lower the national debt. To this fund were added many other duties, subsequently granted.

Further, by 26 Geo. 3, c. 31, the sum of one million annually was set apart and ordered to be laid out in the purchase of stock by commissioners appointed by the same act; it being also provided, that when this annual million should be increased to four millions by the dividends of the stock so purchased, then the dividends should no longer be paid upon the redeemed stock, and that the sinking fund should no longer accumulate. By 32 Geo. 3, c. 55, it was enacted, that when these dividends should amount to three millions, exclusive of the said annual grant, there should be no further accumulation; it being also provided, that upon every future loan *which was not to be paid off within forty-five years, one per cent. should be annually appropriated [*392] to form a sinking fund for the redemption of the loan; and by 33 Geo. 3, c. 22, an additional grant of 200,000l. was made for the same purpose.

At last the nation became alive to the folly of contracting debt for the purpose of paying it off (~), and aware of the fact that the only rational mode of forming a sinking fund was by applying to that purpose the excess of revenue over expenditure. An attempt was made in 1819 to form a sinking fund of five millions by maintaining a surplus revenue of this amount. As it was soon found that this could not be done, the whole system was ended in 1829 by 10 Geo. 4, c. 27, which enacted that the sum applicable in future to the diminution of the national debt should be a certain portion of the excess, if any, of the annual revenue. This sum is accordingly annually transferred to the commissioners for the reduction of the national debt, together with unclaimed dividends(0), and such sums as are from time to time bequeathed to them for that purpose(p). But before any part of the aggregate fund can be applied to diminish the principal of the public debt, it stands mortgaged by parliament to raise an annual sum for the maintenance of the royal household and the civil list. Before the Revolution, the sovereign had the uncontrolled disposal of the revenues of the crown(q), including *both the hereditary revenues and the taxes, and whatever remained after defraying the necessary [ *393] expenses of the government, was at his absolute disposal, for the maintenance of his dignity and for private purposes. Irrespective of this provision, Charles II. appropriated to his private use immense sums voted by parliament for other

(n) M'Culloch's Account of Brit. Emp. 3rd ed. ii. pp. 431, et seq.

(0) 56 Geo. 3, c. 60. (p) The last act of any importance regulating the proceedings of these commissioners

is 29 & 30 Vict. c. 11.

(9) The whole revenue of queen Elizabeth did not amount to more than 600,000l. a year (Lord Clar. Life, continuation, vol. ii. 156, Ox. ed. 1827); that of king Charles I. was (Com. Journ. 4 Sept. 1660) 800,000l., and the revenue voted for king Charles II. was (Ib.) 1,200,000Z., though complaints were made (in

the first years at least) that it did not amount to so much (Ib. 4 June, 1663, Lord Clar. ib.). But it must be observed, that under these sums were included all manner of public expenses; among which lord Clarendon in his speech to the parliament computed, that the charge of the navy and land forces amounted annually to 800,000l. which was ten times

more than before the former troubles (Lord Clar. ib. 159, 160). The same revenue, subject to the same charges, was settled on king James II. (Stat. 1, Jac. 2, c. 1).

purposes(r). To prevent such conduct being possible thereafter, a separate provision was made for the civil list at the accession of William and Mary(s), though this list was not only burdened with the royal expenses, but with pensions and the salaries of various officers. This system continued in succeeding reigns(t), the civil list being derived from the hereditary revenues and part of the excise, and being burdened with many of the expenses of the state. Queen Anne(u) and George I.(x) not only spent the whole of this civil list, but contracted considerable debts, which had to be defrayed by the country. On the accession of George II., it was arranged that he should receive the hereditary revenues, parliament undertaking to make up the amount to 800,000l. per annum if such revenues fell short of that sum, while he should be entitled to any surplus(y). When George III. came to the throne, he agreed to surrender the hereditary revenues in exchange for 800,0007.(z), which was settled upon him. This sum was increased several times in the course of his reign, yet numerous debts were incurred (a).

*On the accession of George IV., the hereditary revenues of the [*394] crown were(b) placed at the disposal of the house of commons, and carried to the consolidated fund for his life, and by the same statute a revenue of 850,000%. in England, and 207,000l. in Ireland was granted to his majesty for life. On the accession of William IV., the royal revenues were again surrendered to the nation (c), and the clear yearly sum of 510,000l. was directed to be paid out of the consolidated fund for the support of the royal household and the honour and dignity of the crown. In the next session, an act(d) was passed to relieve the civil list from many charges which had only a theoretical connection with the royal dignity and person, viz. the salaries of the judges and diplomatic salaries and pensions, all of which, together with the allowances to the numerous members of the royal family, as also the secret service money, are now charged by parliament upon the consolidated fund. On the accession of her present majesty, it was provided (e) that the hereditary revenues of the crown should, as before, be carried over to the consolidated fund during the life of her majesty; and that the consolidated fund should be charged with the payment of the yearly sum of 385,000l. for the support of her majesty's household, and the honour and dignity of the crown; (60,000l. of this amount being appropriated to her privy purse;) it was also enacted(ƒ), that whenever the total charge on the civil list should in any year exceed the sum of 400,000l., the particulars and cause of such excess should be laid before parliament.

The arrangement heretofore explained by which a civil list is granted to the sovereign, has proved eminently beneficial. Hereby the revenues themselves, being put under the same care and management as the other branches of the public patrimony, produce more and are "better collected than they [ *395] had been; and the public is thus a gainer. And upon the whole it is doubtless much better for the crown, and also for the people, to have the

revenue settled upon the modern rather than upon the ancient footing. For the crown, because it is more certain, and collected with greater ease; for the people, because they are now delivered from feudal hardships and other odious branches of the prerogative. Lastly, though it may not be probable that a future sovereign will elect to take the hereditary revenues instead of a civil list, the maintenance of those revenues forms a substantial security for the granting of a civil list, and if any complaint should hereafter be made as to the amount of the latter, the fact that the public will receive in exchange for it the income from the hereditary revenues would furnish a minister of the crown with a sound and intelligible answer to such a complaint.

IX. The sovereigns of England, from the accession of king Henry IV. to the present time, have enjoyed the possession of the duchy of Lancaster as an (IX.) Revenues inheritance separate from the crown, and the revenue from the duchy is now received by her majesty, not having been surrendered in consideration of the civil list granted upon her accession.

The estates of the duchy of Lancaster comprise lands which were parcel of the possession of the first duke of Lancaster(g), lands acquired upon the disso

lution of the *religious houses temp. Henry VIII., lands annexed to [*396] the duchy in the reign of king Philip and queen Mary, and lands purchased on behalf of the duchy.

[ *397]

*These estates are managed under the direction of the chancellor of the duchy, who has, in certain cases the aid of a council appointed by

the crown.

By the 1 Ann. st. 1, c. 7, the sovereign is restrained from alienating lands, parcel of the possessions of the duchy of Lancaster, otherwise than by lease for a term not exceeding thirty-one years or three lives, but by the 48 Geo. 3, c. 73, the crown was empowered to grant leases of land, parcel of the duchy of Lancaster, for building purposes for terms not exceeding ninety-nire years, and by various statutes the chancellor and council of the duchy have been authorized to sell land in order to raise funds for the redemption of the land tax or other property belonging to the duchy, and to effect exchanges of land (h); to sell stock belonging to the duchy, and to apply the proceeds thereof in the improvement of the estates of the duchy(i); to sell rights of forest chase and free warren to the owners of the lands over which such rights extend(k); to contract for the sale of any land belonging to her majesty in right of her duchy, which in their judgment shall not be convenient to be held with the other possessions of the duchy (with provisions for carrying the sales into effect), and to apply the purchase monies either in the improvement of the estates of the duchy of Lancaster, under the powers of the act 57 Geo. 3, c. 97, or in the purchase of other lands to be conveyed to her majesty in right of the duchy().

By the stat. 1 & 2 Vict. c. 101, s. 2, it is provided that accounts of the receipts and disbursements of the duchy of Lancaster shall be annually submitted to the treasury by the officers of the duchy, and shall then be laid before. [ *398] parliament (m).

(X.) Revenues of duchy of Cornwall.

X. And here, to prevent misapprehension and render more complete the view presented in this chapter of the royal income, may be noticed the possessions and revenues of the duchy of Cornwall, which have never been surrendered to the public. They now consist,- of the undisposed of portion of those granted by king Edward III. to the Black Prince, upon, or after, his creation as duke of Cornwall; of those annexed to the duchy by subsequent sovereigns, and not since alienated; of lands and revenues acquired by purchase and exchange, and of an annuity(n), charged upon the consolidated fund, under the stat 1 & 2 Vict. c. 120, in lieu of certain tin coinage duties, and other rights.

The ancient possessions of the duchy comprise minerals in the "conventionary tenements "(o) in various manors in Cornwall, called the "assessionable manors," the right to which minerals is defined and regulated, under the provisions of the stats. 7 & 8 Vict. c. 105 and 11 & 12 Vict. c. 83, and also minerals

(h) 48 Geo. 3, c. 73.

(i) 57 Geo. 3, c. 97, s. 25.

(k) 1 & 2 Geo. 4, c. 52, s. 13. () 18 & 19 Vict. c. 58.

(m) The gross income of the duchy of Lancaster in the year 1867 amounted to upwards of 40,000l., including 30,1017. from rents and profits of courts, 77277. from minerals, and 8031. from an annuity payable out of the consolidated fund under the stats. 43 Geo. 3, c.

156, and 2 & 3 Will. 4, c. 84, for the surrender of duties of prisage and butlerage within the county palatine of Lancaster. The payments made in 1867 out of the duchy revenues to the keeper of the privy purse for her majes ty's use amounted to 29,000.

(n) Amounting to 16,216. 158. per annum. (o) See Rowe v. Brenton, 8 B. & C. 737; 3 M. & R. 133.