h they doubled their principal in
a few months; and, for the encouragement of lenders, every new project
of lotteries or annuities proposed some farther advantage, either as to
interest or premium.

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 par