Some important steps were however taken with regard to finance. There was still a tolerably unanimous feeling in favour of the war, and money had to be procured. In the arrangements for supplying the necessary money, the financial talents of Charles Montague, a young and rising member of the Whig party, first became conspicuous. Early known as a man of letters, and the author in company with Prior of "The Town and Country Mouse," he had been introduced to the King by his patron the Earl of Dorset, and, after strengthening his position by a marriage with the Dowager Countess of Manchester, had entered political life, and had been appointed one of the Lords of the Treasury in 1691. The financial measures recommended consisted of a reorganization of the Land Tax and of the first establishment of Government loans. The extraordinary expenses of Government had in early times been met by subsidies. These subsidies were levied both on moveables and on land, but were chiefly supported by an assessment on the land at the nominal rate of four shillings in the pound. Land had increased greatly in value as the demand for it increased, while gold and silver had fallen greatly in value after the discovery of America. In the assessment for subsidies neither of these circumstances was taken into consideration. The four shilling land tax had come in reality to be less than twopence in the pound. During the Commonwealth, and subsequently, a different method of taxation had been followed. The sum to be raised had been first determined, and each landowner had been called upon to pay a proportional share. In 1692 the Land Tax was reintroduced and reorganized. A new valuation was made, and upon this basis a tax was annually laid upon the land varying from a minimum of one shilling in time of peace to four shillings in times of emergency. Four shillings on this new valuation produced about £2,000,000. This sum fell considerably short of what was required. In addition, therefore, a loan, which is the origin of the National Debt, was raised. Money was plentiful in the country, and was so easily obtained, that bubble companies and stock-jobbing had become rife. Montague determined to turn some of this superfluous wealth to the use of the country, and to spread the payment of the debt over several generations. The plan at first adopted in raising these loans was not exactly the same as our present method of perpetual funding. The lenders were life annuitants, and the interest of the loan was secured on new duties on beer and other liquors. As each annuitant died his annuity was divided among the survivors, till their number was reduced to seven, who would at that time be naturally in receipt of an enormous interest on their original loan. After that, on the death of each of those seven, his annuity lapsed to Government. The whole debt would therefore be extinguished at the death of the longest-lived annuitant. [Sidenote: Disastrous campaign. 1693.]