The Press. — London, England, 1854-03-11 00:00:00

220 from him sitting and adjudicating in his official chair. that I heard views totally opposed to these—and such as I had conceived were utterly exploded." In certain exceptional cases, indeed, liability can be limited by the grant of a charter from the Crown, and, before the accession of the present Ministry to office, these grants were not infrequent; but Mr. CARDWELL, believing that " in Massachusetts and New York States the allow ance of partnerships of this kind had been found so mischievous that those States were now restricting, if not prohibiting, the privilege of establishing such partner ships," he of course hastened to follow the example of these sections of the great and enlightened republic. For amongst a certain class of legislators an American " institution " is the emanation of abso lute wisdom, and an American precedent conclusive. But Mr. CARDWELL in this instance was wrongly informed. Mr. DUDLEY FIELD, in answering his London correspondent, thus begins : "Your President of the Board of Trade is entirely mis taken in supposing that we have lessened the privilege of forming limited partnerships, or that we have found them mischievous. On the contrary, there is the concurrent testimony of nearly all our men of business in their favour • and, if any change in the law were attempted, it would be to extend the privilege." But even if on discovering his error the President of the Board of Trade should resume the practice of conceding charters, the process of obtaining them is tedious and expensive, and, when deemed complete, they are sometimes worthless. Witness the noto rious case of the Eastern Archipelago Company, in which the Court of Exchequer Chamber declared the charter to be invalid, " becsuse the specified amount of the capital had not been duly paid up, although it does not seem that the Board of Trade was ignorant of the true fact, or dissatisfied with the mode adopted of paying it up." The time consumed in obtaining a charter varies; occasionally it is two months, and often six; while in an ordinary case the cost was more than 4001., and n another instance of a banking charter nearly 1,0001. From another pamphlet., by Mr. WOODFORD FFOOKS, a barrister, we also learn that " about the year 1800 eight important towns were estopped from establishing similar institutions to that of The Metropolitan Building Association' by the difficul ties of the law, and the cost and trouble of procuring char ters. The association referred to is one for improving the dwellings of the industrial classes, and the expense of ob taining its cbarter exceeded 1,000/. • and this very society has since had to expend between 301. and 400/. to obtain a ' supplemental charter !' " Therefore, whether liability should be limited or unlimited, it is certain that the present condition of the law requires amelioration ; but, as on other ques tions of importance, Ministers are not prepared to take a definite course. "It is known," writes Mr. FIELD, " that there is much opposition of opinion on the sub ject in question among the members of onr present Government. The usual, and, in th►s case, I think, un worthy, resource of appointing a Government Commission has been resorted to. The members of the Cabinet have referred this one of their differences to an arbitrator. Of course the report will depend on who are appointed upon the Commission. A Government Commission to deter mine a mere dry scientific truth is strange enough; still stranger, to determine one on which all our great political economists (J. S. Mill and others) are already agreed." In favour of unlimited liability the chief argument is, that it ensures caution and prevents capitalists embarking in rash speculations. This is undoubtedy true ; but it is no less true that it also prevents the accomplishment of objects some of which would be beneficial to the world. Many a poor man would subscribe his hundred pounds or his ten pounds, and many a rich man his thousands, to carry out an en terprise of which he approved, provided his liability were limited to the amount of his subscription. Then, again, comes the danger of encouraging rash specu lation ; and this appears to us to be the main argu ment that can be urged against the principle of limited liability. Men, if they could at a risk of 201., or 1001., or 1,0001., secure the chance of immense profits, would be very likely, as in the days of the lotteries, so to waste their money. The loss annually incurred from insolvencies, tkc., is now more than 50,000,000/., and this, in the opinion of some, proves conclusively that the present law does not prevent undue speculation ; but the question is, would the proposed change encourage—neither can prevent—unwise and " bubble " undertakings ? The subject has been already touched upbn in Par liament ; but to pronounce an opinion before the report of the Commissioners has been received would be premature. As the case stands the arguments in favour of the change seem at present to prepon derate. Multitudes of persons have left London, by the South Eastern Railway, for Dover, Deal, Ramsgate, Margate, and other places on the coast of Kent, in order to get a sight of the magnificent Baltic fleet as it passes up Channel this day or to-morrow. Vrotttbings in arlimntnt. THE BUDGET. The financial statement for the ensuing year was brought forward by the CHANCELLOR of the EXCHE QUER, on Monday, in committee of ways and means. The period, he observed, was somewhat earlier than was generally assigned for that purpose, and would have the effect of involving a little uncertainty in his various estimates, seeing that the financial year was still uncompleted ; and he would be obliged to base his computations on the experience of eleven months, and " guess" figures for the twelfth. Notwithstand ing this drawback, however, he thought it best to make his expose without delay; partly because the country ought to know its position at a moment when very serious expenditure was already incurred and heavy sacrifices might have to be demanded, but chiefly in order that foreign nations might have an assurance both of our intention and our ability to prosecute the war with vigour. After this bnef pre face, Mr. Gladstone proceeded to develop the results of past and the prospects of future revenues and ex penditure, marshalling his figures and statements under their successive heads : THE PRESS. REVENUE OF PAST YEAR. On the 18th April last I ventured to estimate the income of the country. The customs revenue was taken at 20,880,0001. The actual receipts (without allowance for the reductions which have taken place) were 20,000,00()1. The excise was estimated at 14,640,00.1, and has realised 15,107,0001. The stamps were estimated at 6,100,0001., and they have realised (notwithstanding the remissions afforded under several heads) 6,960,0(X11. The assessed taxes were estimated at 3,250,0001., and they have produced 3,178,0001. The income tax, which was estimated at 5,550,0001., produced 5,700,0001. The Post•ofce, estimated at 900,0001, produced 1,082,0001. The Crown lands, esti mated at 390,0001., produced 391,0001. The miscellaneous receipts, estimated at 320,0001., produced 503,0001. The produce of old stores, estimated at 4600001., amounted to 481,000/. The total amount of anticipated revenue during the year had thus amounted to 52,990,0001. The real product had been 54,025,0001., showing an increase over the estimates of 1,035,0001. EXPENDITURE OF THE PAST YEAR. On the other hand, the expenditure for which the house provided last session had not reached its utmost limit. The expenditure was estimated at 52,183,00 W. The actual ex• penditure for the current twelve months, although ma terially augmented by the measures connected with.pending military operations, would amount to 51,171,000/., showing the following result:— Estimated expenditure Actual Diminution £1,012,000 ANTICIPATED SURPLUS. So far as we are able to estimate the actual surplus of in come over expenditure for the year, which will be declared when the balance is struck on the bth of April, I shall now place that surplus at 2,844,00,11. RESULTS OF RECENT TAX REMISSIONS. The total amount of the customs duties which we re pealed last year may be stated at 1,483,0001. But there have been circumstances affecting the operations of the cus toms duties unfavourably, and what I must allude to parti cularly is to that branch of the revenue derived from currants. That has been not merely diminished, but almost annihilated. It yielded : In 1851.2 In 1852-3 In 1853-4 Thus, this head of revenue has yielded not one-third of what it afforded three years ago, not owing to the dimi nished disposition or ability of the people to consume the article, but to the great diminution of supply by reason of the blight which affected the vines in the east of Europe. Then the measure with respect to the reduction of the tea duty has been brought to bear under circumstances far from favourable. When, however, we look at the exact state of this head of customs revenue it stands thus : Receipts from customs duties 1863.4 ditto in 1852.3 Showing an increase of 204,0001., notwithstand ing reductions in duty to the amount of 1,488,000 There is another article on which the duty was reduced last year, and as to which the committee would like to hear the result—l refer to the penny receipt and draft stamp. A great deal of interest attached to this experi ment, and the result has proved satisfactory beyond all our expectations. The state of the law produced by the change of last year was indeed very difficult, and there are various points in which it would be desirable to propose to the house to amend it. But the state of the case as to figures is as follows :—When we reduced the stamps upon re ceipts from a scale of duties fluctuating from between 3d. to 10s., to the uniform duty of Id., the estimated gross loss to the revenue for the year stood at 155,0001. Half of that, however, t ventured to assume would be recovered even during the past year, and, therefore, I only charged myself with the loss of 74,0001. But the change only took effect on the 10th of October, and, therefore, I must divide this sum; so that I had only to calculate on a loss to the revenue under this head of 37,0001. Very great difficulty was found, notwithstanding the utmost exertions, in supplying the demand which sprung up for stamps, which bore no pro portion to the previous consumption; for under the old law obedience was the exception, and disobedience the SATURDAY, rule ; whereas, under the new law, Jam hap py to say that obedience is the rule, and disobedience the exception. (Hear, hear.) And notwithstanding the great reduction made in the amount of the duty, for the six months com mencing the 10th of October and ending the /Ali of April (so far as I can state), the receipt stamp duty has, instead of falling off by 37,0001., actually increased by 38,0001. (Hear, hear.) The actual receipt into the Exchequer during that six months last year was 88,8981. ; the actual estimated receipt during the current six months is 124,6371. RESULTS OF RECENT EXTENSIONS OF TAXATION. First, I will go to that vexed question the income tax. The collection of the tax has been delayed by a variety of circumstances. It is always delayed on the occasion of an act which causes new assessments, because it begets new appeals, and the extension to Ireland has been in some degree the cause of delay, while the extension of the tax to a new class having incomes between 1501. and 1001. a year necessarily brought forward a great mass of business, and caused a considerable number of appeals, in reference to the class with whom formerly we had nothing to do. This has postponed the collection of the tax so much that at one period during this quarter the Exchequer ac tually received less than last year under the head of income tax by no less a sum than 770,0001. But that has nothing whatever to do with the productiveness of the tax, it has merely reference to the time of collection. It, however, goes to account for that lowness of the public balances which has during the last few weeks been a natural subject of remark. The case of the Irish income tax is this. I estimated that the tax would yield 460,0001., and after making every deduction the net produce will be 480,0001. Only half of this, however, will be received during the year, and something less than that will be received before tha sth of April. But the tax has fully answered the expectations with which it was pro posed to Parliament. Then, as to another head—the ex tension of the tax in Great Britain to persons having in comes of between 1501. and 1001. a year. The assessments not having been generally completed, the precise results of the measure I cannot say, but I am in a position to state that it will yield to the Exchequer at least as much as I ventured to calculate on obtaining that is to say, the sum of 250,0001. Another measure is the augmentation of the spirit duty in Scotland. The result of that measure has also been perfectly satisfactory, for, though there is an apparent defalcation on the amount of the year, I venture to anticipate it is a defalcation fairly to be explained by causes quite apart from the increase of the tax. I estimated that the increased income from the addition of ls. to the spirit duties would be 278,0001. As I now estimate it, it will be 209,0001. But it is in the know ledge of all gentlemen connected with Scotland that a strong religious sentiment has set in in that country against the consumption of spirits, and that this led last year to the enactment of a restrictive law (not introduced by the Government, but not disapproved of by them), which, by greatly narrowing the means of selling spirits, led off ne cessity to a diminution of consumption. The consump- tion accordingly has diminished, so that the increase to the revenue will be only 209,0001. instead of 278,0001. ; but I am happy to state that there is not a breath of suspicion as to any part of this diminution being connected with the revival of illicit distillation. The increase of the spirit duty in Ireland has been altogether satisfactory. So far has it been from causing any revival of illicit distillation, that, so far as we have been enabled to judge from expe rience of a year, the excess of revenue has been even more than I expected. The amount for which 1 took credit was 198,0001. ; the actual increase has been 213,0001. ; and in that amount I have made allowance for the extra expendi ture connected with the establishments which it was thought prudent to increase ; but which expenditure in future years it will be practicable to reduce. There is one other head to which I must refer—l mean that of the suc cession duty. So far as regards the ultimate probable result of that measure I have no reason to depart from the conjectural computations of last year. But the effect of the postponement which it was my duty to allow on payments under the new measure has been such as greatly to reduce the receipts from it in the course of the year now expiring. Looking forward to the next year, I do not think we can anticipate more than half a million from that measure, and with respect to the ultimate re sults I think they will be as I have conjectured them ; for I am bound to say that all that has occurred has convinced me that those very sanguine anticipations which some hon. kentlemen indulged in, supposing that there would be 3,000,0001., or 4,000,0001., or 5,000,0001., and even more, as the proceeds from that measure, are altogether of a visionary character. GENERAL STATUS OF THE REVENUE. This is the state of the case with respect to the twelve months which have now nearly expired, and I think the committee will be of opinion that the whole of these com bine to show that the finances of the country are on a sound and solid footing. ("Hear, hear," from the Liberal benches.) FUTURE RECEIPTS. I venture to submit to the committee the following esti- mate of the probable revenue of the year 18.54-5 :—I take the customs dutes—and here, as well as under other heads, I allow for those reductions of taxes which will take effect under laws already in force—l take the customs at 20,175,0001. ; the excise at 14,595,0001.; the stamps at 7,090,000/. ; the taxes at 3,015,0001. ; the income tax at 6.275,0001. ; the Post•office at 1,200,0001. ; the Crown lands and land revenues at 250,0001.; old stores, 420,0001. ; mis cellaneous, 320,0001. The total sum anticipated for the year 1854.5 will be 53,349,0001. FUTURE EXPENDITITRE. Looking forward to the expenditure of the year, I enter upon a detail less satisfactory than that which I have thus far given. The first head, however, is one on which there is a considerable reduction. The charge for the funded