onsolatory with a debt of L19,137, and an annual charge for interest
and ordinary expenses of L2,390, the revenue of L3,000 left only L600
for unforeseen expenses and improvements.

"Thus at the peace, this Island found itself with little or no trade;
little or no disposable revenue, no attraction for visitors, no
inducement for the affluent to continue their abode, and no prospect of
employment for the poor."

After considering various means of raising a revenue, the States asked
the Privy Council for permission to levy a duty on spirituous liquors.
Notwithstanding some opposition by the inhabitants, permission was
granted by an Order in Council of the 23rd July, 1814, to raise 1s. per
gallon on spirituous liquors consumed in the Island. This was granted
for a period of five years.

A second Order in Council, dated 19th June, 1819, renewed the duty for
ten years. Again there was opposition from a section of the inhabitants.
This made itself felt by the insertion in the Order of the following
words:--"That One Thousand Pounds per annum of the produce of the said
duty be applied solely to the liquidation of the present debt, together
with such surplus as shall remain out of the produce of the tax in any
year after defraying the expenses of roads and embankments and
unforeseen contingencies. And that the States of the said Island do not
exceed in any case the amount of their annual income without the consent
previously obtained of His Royal Highness in Council. And the said
States are hereby directed to return annually to the Privy Council an
account of the produce and application of the said Tax."

In 1825 the Lieutenant-Governor, Sir John Colborne, desired to erect a
new College and to carry on other important works. But these plans could
not be accomplished without the assurance of the renewal of the duty. A
third Order in Council of 30th September, 1825, gave this permission for
a period of fifteen years, that is to say, from 1829 to 1844. On this
occasion there was no opposition from any of the inhabitants.

As will be seen in the next chapter, it was this duty on spirituous
liquors that formed the security on which the notes were issued.

CHAPTER III

MUNICIPAL ENTERPRISE--THE ISSUE OF NOTES

"_Guernsey should make up only one great family whose
interests are common. Only by union and concord can she
enjoy firm and lasting prosperity._"

Although, as we shall see, the first notes