CHAPTER XVII. EXPENDITURE ON ACCOUNT OF THE RUSSIAN-DUTCH AND GREEK LOANS. WHAT have we to do with the Russian-Dutch loan, WH that we should have to pay for it so large a sum every year? This is a singular charge on the British Exchequer, and it requires some explanation. The loan originally consisted of various debts, amounting to 7,400,000l., owing by Russia and Poland to some Dutch merchants. These having been acknowledged by Russia as her own, were converted into one five per cent. stock in favour of Messrs. Hope and Co. of Amsterdam, with a sinking fund destined to extinguish it in 1810. During the French war, however, when Holland formed part of the French empire, Russia, being at war with France, ceased to make any payment on account of the loan. When peace was restored, Russia executed a bond for the arrears of interest; and this, added to the principal, made up a total debt of more than 9,000,000l. But when it became a question, at the treaty of Paris and congress of Vienna, to re-establish Holland in her sovereignty, including Belgium and her colonies, Russia took advantage of the opportunity to disburden herself of a portion at least of this debt, by refusing her consent to the arrangement unless Holland and England consented each to pay 2,250,000l. of the Russian-Dutch loan. It was, however, understood that these payments were to cease, should the possession and sovereignty of the Belgic Provinces at any time pass or be severed from the dominion of the King of the Netherlands. This latter contingency having actually happened, Holland ceased to pay her quota of the Russian-Dutch loan; but by a convention made with Russia in 1831, England agreed to continue the payment in consideration of Russia's adhesion to the general arrangements of the congress of Vienna; and the debt is in consequence still running, entailing on the nation, for interest and sinking fund, a charge of 83,000l. per annum. Another sum of 47,000l. is also paid yearly for interest and sinking fund on the Greek loan; an obligation contracted in order to assist towards the establishment of the present Grecian monarchy. CHAPTER XVIII. CONCLUSIONS RESPECTING THE EXPENDITURE. THE conclusions suggested from the preceding survey of the principal branches of the national expenditure are as follow:: 1. That the largest portion of the public expenditure being devoted to national defences, the extent of which is mainly regulated by the state of our foreign relations, it is impossible to foresee from year to year what may be our future exigencies and the condition of our finances. But that, in the present clouded state of our political horizon, no material reduction can by any possibility be anticipated, especially as the rates of salaries and wages of all ranks are generally moderate, and in many cases decidedly too low. It is probable, moreover, that the Commissioners on National Defences may recommend a considerable expenditure for the purpose. 2. That the other large branch of public expenditure, the salaries of the civil service, and of officers in all departments and ranks, is also far from being reducible: first, because the salaries are in most cases barely proportionate to the value of the services rendered, and, secondly, because, with the constant increase of public business, there is necessarily required a corresponding increase in the number of officers. 3. That the interest of the public debt is likely to continue fully as high as at present, with the obligation, moreover, of providing for a large sum of Exchequer bonds. 4. That the expenditure for public works, harbours of refuge, and parks, &c., has been hitherto kept low, in relation to the increase of wealth and population, whilst we have the prospect of the construction of large public buildings for the Foreign Offices, for the Secretary of State for War, and for the National Gallery. More harbours of refuge have also become necessary in consequence of the immense increase of our trade and navigation. 5. That the expenditure for the diplomatic service may admit of some saving by converting embassies into missions, and reducing the number of such missions; but that an increase may be anticipated in the cost of the consular service by the enforcement of the prohibition of all consuls to engage in trade. 6. That the prosperous state of all our colonies and dependencies will ere long constitute them independent of all support from the mother country, and that a saving might be effected of the grants now made for the salaries of their governors and magistrates, and also of the large proportion now voted for their defences, in conformity with the recommendation of the committee on the military defences of the colonies. 7. That the demands for education, science, and art, religious grants, and the administration of justice, are likely to continue large and urgent. The report of the |