The National Debt

CHAPTER VII

THE WAR WITH FRANCE—I

A distinction has usually been drawn between the financial policy which was adopted from the outbreak of war with France in 1793 to the peace of 1802 and the financial policy which was pursued from 1802 until the close of the war in 1815. The chief ground for this distinction is sought in the existence of an income tax which, though instituted in 1799, did not become effective until after 1802. Such importance has indeed been attached to this fact that it has even been maintained that if Pitt had imposed the tax in 1793 no loans would have been needed to carry on the war.¹ Nevertheless, so far as the details of debt policy are concerned, there was substantial continuity throughout the whole war. The sinking funds ...