To establish a sinking fund, which should secure to the nation during peace the means of discharging the debt contracted amidst the necessities of war, was one of the greatest objects of the old English policy, which was supported with equal earnestness by Mr Pitt and Mr Fox, by Mr Addington and Lord Henry Petty. So steadily was this admirable system adhered to through all the dangers and necessities of the war, that we had a clear sinking fund of £15,000,000 a-year, when the contest terminated in 1815, which, if kept up at that amount, from the indirect taxes from which it was levied during peace, would, beyond all question, as the loans had ceased, have discharged the whole debt by the year 1845. But the liberals soon discovered that this was the greatest of all errors: it was all a delusion; the mathematical demonstration, on which it was founded, was a fallacy; and the only wisdom was to repeal the indirect taxes, from which the sinking fund was maintained, and leave posterity to dispose of the debt as they best could, without any fund for its discharge. This system was gradually carried into effect by the successive repeal of the indirect taxes by different administrations; until at length, after thirty-three years of peace, we have, instead of the surplus of fifteen millions bequeathed to us by the war, an average _deficit_ of fifteen hundred thousand pounds; and the debt, after the longest peace recorded in British history, has undergone scarcely any diminution. Indirect taxation was the main basis of the British finance in old times--equally when directed by the Whigs as the Tories. Direct taxes were a last and painful resource, to be reserved for a period during war, when it had become absolutely unavoidable. So efficacious was this system proved to be by the event, when acting on a nation enjoying protected industry, and an adequate and irremovable currency, that, before the end of the war, £72,000,000 was, amidst universal prosperity, with ease raised from eighteen millions of people in Great Britain and Ireland. This astonishing result, unparalleled in the previous history of the world, had no influence in convincing the modern liberals that the system which produced it was right. On the contrary, it left no doubt in their minds that it was entirely wrong. They introduced the opposite system: in twenty-five years, they repealed £40,000,000 of indirect taxes; and they reintroduced the income tax as a permanent burden during peace. We see the result. The sinking fund has disappeared; the income tax is fixed about our necks; a deficit of from a million and a half to two millions annually incurred; and it is now more difficult to extract fifty-two millions annually from twenty-nine millions of souls, than, at the close of the war, it was to raise seventy-two millions from eighteen millions of inhabitants.