In the year one thousand six hundred and ninety-seven, a general mortgage was made of certain revenues and taxes already settled, which amounted to near a million a year.  This mortgage was to continue till one thousand seven hundred and six, to be a fund for the payment of about five millions one hundred thousand pounds.  In the first Parliament of the Queen, the said mortgage was continued till one thousand seven hundred and ten, to supply a deficiency of two millions three hundred thousand pounds, and interest of above a million; and in the intermediate years a great part of that fund was branched out into annuities for ninety-nine years; so that the late ministry raised all their money to one thousand seven hundred and ten, only by continuing funds which were already granted to their hands.  This deceived the people in general, who were satisfied to continue the payments they had been accustomed to, and made the administration seem easy, since the war went on without any new taxes raised, except the very last year they were in power; not considering what a mighty fund was exhausted, and must be perpetuated, although extremely injurious to trade, and to the true interest of the nation.

This great fund of the general mortgage was not only loaded, year after year, by mighty sums borrowed upon it, but with the interests due upon those sums; for which the treasury was forced to strike tallies, payable out of that fund, after all the money already borrowed upon it, there being no other provision of interest for three or four years:  till at last the fund was so overloaded, that it could neither pay principal nor interest, and tallies were struck for both, which occasioned their great discount.

But to avoid mistakes upon a subject, where I am not very well versed either in the style or matter, I will transcribe an account sent me by a person[8] who is thoroughly instructed in these affairs.

[Footnote 8:  Sir John Blunt. [ORIGINAL NOTE.] He was one of the first projectors of the South Sea Company, and died in January, 1733. [W.S.J.]]

“In the year one thousand seven hundred and seven, the sum of eight hundred twenty-two thousand three hundred and eighty one pounds, fifteen shillings and sixpence, was raised, by continuing part of the general mortgage from one thousand seven hundred and ten to one thousand seven hundred and twelve; but with no provision of interest till August the first, one thousand seven hundred and ten, otherwise than by striking tallies for it on that fund, payable after all the other money borrowed.

“In one thousand seven hundred and eight, the same funds were continued from one thousand seven hundred and twelve to one thousand seven hundred and fourteen, to raise seven hundred twenty-nine thousand sixty-seven pounds fifteen shillings and sixpence; but no provision for interest till August the first, one thousand seven hundred and twelve, otherwise than as before, by striking tallies for it on the same fund,