ssive taxation which was made necessary by one year of war. In Italy
this practice had existed through many generations. France had, during
the war which began in 1672 and ended in 1679, borrowed not less than
thirty millions of our money. Sir William Temple, in his interesting
work on the Batavian federation, had told his countrymen that, when he
was ambassador at the Hague, the single province of Holland, then ruled
by the frugal and prudent De Witt, owed about five millions sterling,
for which interest at four per cent. was always ready to the day, and
that when any part of the principal was paid off the public creditor
received his money with tears, well knowing that he could find no other
investment equally secure. The wonder is not that England should have at
length imitated the example both of her enemies and of her allies, but
that the fourth year of her arduous and exhausting struggle against
Lewis should have been drawing to a close before she resorted to an
expedient so obvious.

On the fifteenth of December 1692 the House of Commons resolved itself
into a Committee of Ways and Means. Somers took the chair. Montague
proposed to raise a million by way of loan; the proposition was
approved; and it was ordered that a bill should be brought in. The
details of the scheme were much discussed and modified; but the
principle appears to have been popular with all parties. The moneyed men
were glad to have a good opportunity of investing what they had hoarded.
The landed men, hard pressed by the load of taxation, were ready to
consent to any thing for the sake of present ease. No member ventured to
divide the House. On the twentieth of January the bill was read a third
time, carried up to the Lords by Somers, and passed by them without any
amendment. [369]

By this memorable law new duties were imposed on beer and other liquors.
These duties were to be kept in the Exchequer separate from all other
receipts, and were to form a fund on the credit of which a million was
to be raised by life annuities. As the annuitants dropped off, their
annuities were to be divided among the survivors, till the number of
survivors was reduced to seven. After that time, whatever fell in was to
go to the public. It was therefore certain that the eighteenth century
would be far advanced before the debt would be finally extinguished. The
rate of interest was to be ten per cent. till the year 1700, and after
that year seven per cent. The adv