Gazette Of The United States, & Philadelphia Daily Advertiser

Mr. Pitt's Scheme of Finance.

We have given our readers some account of the plan of finance which Mr. Pitt means to substitute in the room of a loan. We now lay before our readers copies of the circular letter sent by Mr. Rose to the monied houses, and also of the outline of the proposition made by Mr. Pitt to the gentlemen with whom he has been in treaty and also addressed by him to the great corporate bodies of the kingdom.

Circular letter of Mr. Rose.

The plan now in agitation, and which there is great reason to believe will be generally adopted in the capital by the great monied interest, must, if it shall succeed, have the best possible effect in raising the value of the funds supporting public credit, and in affording the surest means of obtaining a speedy, honorable and permanent peace.

It is thought advisable to state only the outline at present, and to leave the detail to be farther explained, when the opinion of intelligent and well informed persons on the subject can be collected after they have had a full opportunity of considering what proposals should be offered consistent with the object in view.

The general principle on which it is intended to proceed is, that on the sums advanced by loan, no stock should at present be created, and that the public should not be subjected to the inconvenience of any great increase of capital hereafter beyond the sum now to be received. With this view it is intended that a security should be given to the lenders for the repayment of the sums advanced within a period not exceeding four years from this time, and not in less than one year after the conclusion of the war, either in money or stock, to be valued according to such price as shall be now agreed on, and which of course will be one considerably higher than the present price of stock. The money lent to be paid into the bank by instalments, if that be convenient to the parties.

Outline of Mr. Pitt's Plan.

Every person subscribing £1000 to receive a debenture for £1000 payable either in four years, or at the option of the government at any shorter period: nor less than one year from the conclusion of peace; the amount to be paid either in money or at the option of the holders, in a 3 per cent stock valued at 75: interest at the rate of 5 per cent on the amount of the debenture, to be paid during the interval. The debenture to be transferable till after the second payment but no longer; at any subsequent time before re-payment, every debenture for £100 to be exchangeable for £100 capital of 5 per cent. Stock irredeemable for four years or till one year after the conclusion of the peace, and to be then paid in like manner as the debentures, at the option of the holder either in money or in a three per cent stock, valued at 75; the first payment about the middle of December, the remaining instalments from March to the October following.

Discount as usual, on prompt payment.

On Saturday last Mr Pitt had an interview with a number of the representatives of the monied houses of England; and we understand that his plan was discussed at great length. He spoke of its efficacy with great confidence, and assured the gentlemen, that he was authorised by the highest persons in the kingdom to say, that they adopted it with cordiality, and would contribute to it largely. He had confidence in the spirit and loyalty of the empire in this experiment of a voluntary subscription; but at the same time, he hinted that if, after a fair time allowed to the kingdom, it was found, that the love of the country did not sufficiently prompt men to come forward to its support, a peremptory mode of drawing forth the resources of the kingdom must be adopted, to which he should find himself obliged with pain to recur in the last resort.

The representatives of the gentlemen were strong against the adoption of the plan. They could neither perceive the necessity, the wisdom, nor the economy of its adoption. It tended only to unsettle the steady opinion of mankind about English finance, and departed from the good old practice without proposing any advantage by innovation. If it was intended to put an end to the patronage of a loan, here was retained all the evils of patronage; for the debentures were to be made transferable until after the second payment, evidently to accommodate those who were to do the least towards the public necessity; and thereby, for a time, such a mass of paper was to be brought into the market as contradicted all the arguments which the minister had so recently urged for the withdrawing of unfunded paper. After a long discussion they again separated without any thing final being resolved on between the parties.

November 24.