established by the Revolution, but partly
too, to the want of the support of the bank 
of England. 
When this resource is exhausted, and it becomes 
necessary, in order to raise money, to 
assign or mortgage some particular branch of 
the public revenue for the payment of the 
debt, government has, upon different occasions
done this in two different ways. Sometimes 
it has made this assignment or mortgage 
for a short period of time only, a year, or a 
few years, for example; and sometimes for 
perpetuity. In the one case, the fund was 
supposed sufficient to pay, within the limited 
time, both principal and interest of the money 
borrowed. In the other, it was supposed sufficient 
to pay the interest only, or a perpetual 
annuity equivalent to the interest, government 
being at liberty to redeem, at any time, this 
annuity, upon paying back the principal sum 
borrowed. When money was raised in the 
one way, it was said to be raised by anticipation
when in the other, by perpetual funding
or, more shortly, by funding
In Great Britain, the annual land and malt 
taxes are regularly anticipated every year, by 
virtue of a borrowing clause constantly inserted 
into the acts which impose them. The 
bank of England generally advances at an 
interest, which, since the Revolution, has varied 
from eight to three per cent., the sums of 
which those taxes are granted, and receives 
payment as their produce gradually comes in. 
If there is a deficiency, which there always is, 
it is provided for in the supplies of the ensuing 
year. The only considerable branch of 
the public revenue which yet remains unmortgaged
is thus regularly spent before it comes 
in. Like an improvident spendthrift, whose 
pressing occasions will not allow him to wait 
for the regular payment of his revenue, the 
state is in the constant practice of borrowing 
of its own factors and agents, and of paying 
interest for the use of its own money
In the reign of king William, and during 
a great part of that of queen Anne, before 
we had become so familiar as we are now 
with the practice of perpetual funding, the 
greater part of the new taxes were imposed 
but for a short period of time (for four, five, 
six, or seven years only), and a great part of 
the grants of every year consisted in loans upon 
anticipations of the produce of those taxes
The produce being frequently insufficient for 
paying, within the limited term, the principal 
and interest of the money borrowed, deficiencies 
arose; to make good which, it became 
necessary to prolong the term
In 1697, by the 8th of William III., c. 20, 
the deficiencies of several taxes were charged 
upon what was then called the first general 
mortgage or fund, consisting of a prolongation 
to the first of August 1706, of several different 
taxes, which would have expired within a 
shorter term, and of which the produce was 
accumulated into one general fund. The deficiencies 
charged upon this prolonged term amounted 
to L.5,160,459 : 14 : 9½. 
In 1701, those duties, with some others, 
were still further prolonged, for the like purposes
till the first of August 1710, and were 
called the second general mortgage or fund
The deficiencies charged upon it amounted to 
L.2,055,999 : 7 : 11½. 
In 1707, those duties were still further prolonged
as a fund for new loans, to the first of 
August 1712, and were called the third general 
mortgage or fund. The sum borrowed 
upon it was L.983,254 : 11 : 9¼. 
In 1708, those duties were all (except the 
old subsidy of tonnage and poundage, of 
which one moiety only was made a part of this 
fund, and a duty upon the importation of 
Scotch linen, which had been taken off by the 
articles of union) still further continued, as a 
fund for new loans, to the first of August 
1714, and were called the fourth general 
mortgage or fund. The sum borrowed upon 
it was L.925,176 : 9 : 2¼. 
In 1709, those duties were all (except the old 
subsidy of tonnage and poundage, which was 
now left out of this fund altogether) still further 
continued, for the same purpose, to the first of 
August 1716, and were called the fifth general 
mortgage or fund. The sum borrowed 
upon it was L.922,029 : 6s. 
In 1710, those duties were again prolonged 
to the first of August 1720, and were called 
the sixth general mortgage or fund. The sum 
borrowed upon it was L.1,296,552 : 9 : 11¾. 
In 1711, the same duties (which at this 
time were thus subject to four different anticipations), 
together with several others, were 
continued for ever, and made a fund for paying 
the interest of the capital of the South-sea 
company, which had that year advanced to 
government, for paying debts, and making 
good deficiencies, the sum of L.9,177,967 : 15 : 4, 
the greatest loan which at that time 
had ever been made
Before this period, the principal, so far as I 
have been able to observe, the only taxes, which, 
in order to pay the interest of a debt, had 
been imposed for perpetuity, were these for 
paying the interest of the money which had 
been advanced to government by the bank and 
East-India company, and of what it was expected 
would be advanced, but which was 
never advanced, by a projected land bank
The bank fund at this time amounted to 
L.3,375,027 : 17 : 10½, for which was paid an 
annuity or interest of L.206,501 : 13 : 5. The 
East-India fund amounted to L.3,200,000, 
for which was paid an annuity or interest of 
L.160,000; the bank fund being at six per 
cent., the East-India fund at five per cent
In 1715, by the first of George I., c. 12, 
the different taxes which had been mortgaged 
for paying the bank annuity, together with