The Sun. — London, England, 1861-04-16 00:00:00

Le 'j • ES]: NI W*4 A • • TELEGRAPHIC INTELLIGENCE. PARIS, TUESDAY. The Moniteur of this morning publishes the official notification of the blockade of the coasts of 41 hania from Durazzo to the neighbouring frontiers 01 Austria. Turkish vessels are ordered regularly to maintain the 1% 1 861 : 1 " ki tae, Which commenced on the 13th April, VIENNA, TUESDAY. The Galician Diet has been opened. An address expressive of loyalty to the Emperor Was voted by acclamation. Neither Dalmatia nor Fiume has sent any re- N'elentativea to the Croatian Diet. THORN, TUESDAY. • 411 dealers of arms in Warsaw have received orders to deliver the whole of their stock to the Citadel, Co unt Zamoyski will only accept the Vice-Presi i c. "°7 of the Coun c il o f St a t e w hi c h h a s b ee n offered "' a.. h im, on condition of the military being with ravfn to their barracks and a civic guard being established throughout the country. It is expected that the Government will reject these conditions. _ TURIN, APRIL 15. The .Diritto publishes a letter from Garibaldi, 11 4ted the 14th of April, addressed to M. Alexander Ilerzen, the celebrated Russian refugee now resid ill in London. In this letter, Garibaldi says : " The emancipation of the serfs in Russia has been recently saluted byEurope with thankfulness. This deed had placed the Czar among the most illustrious benefactors of humanity. But now that the Work of goodness has been stained by the blood c ' t all innocent people, it is the duty of those who 1111131 ended the generous act of emancipation to raise th e voice of malediction against the consummation of the most detestable of crimes." CRACOW, APRIL 15. In consequence of the recent events at Warsaw Pi:'Pular demonstrations daily take place in this ei tY, Whereby order is disturbed. Public processions are likewise held, but have be en prohibited by the authorities. • The Czar publishes an article earnestly exhorting the people to remain quiet, and thereby avert the his fortune with which the city is threatened. THORN, APRIL 15. A rumour is current that two popular Poles will be called upon to enter office—namely, Count Zktnoyski, as Member of the Council of State, and kichael Lewinski, as Curator of Poland, which °f a ee was formerly held by M. Muhkanoff. BRESLAU, APRIL 15. Communication with Warsaw is becoming more Iliteult. Arrests continue to take place. M. Nicolas Epstein, son of the banker of that name, an d director of the railway company, has been ittreated. semi-official article in the newspapers endea urs to justify the dissolution of the Agricultural Bpciety. TURIN, APRIL 15. Signor Guerrazzi, Opposition candidate, has been e lected member of the Chamber of Deputies. The Opinione of to-day announces that the Pope 1 48 been restored to health. VIENNA, APRIL 15. The Diet of Istria has refused to send deputies to the Council of the Empire. Fears are entertained that the Diet will be dissolved. The Emperor received to-day the deputation with the address of the Moravian Diet. His Majesty, in hll reply, said that he had imposed upon himself the mission of securing at the same time the neces B aq independence of his provinces, and the power Id strength of the whole monarchy of Austria. A riotous demonstration took place today in the ti citlare of St. Stephen's Cathedral, and ended in the Wrest of several individuals. Strong patrols, mounted and on foot, are stationed 14 St. Stephen's-square, and in the adjoining streets of Gruben and Kohlmarket, two of the principal thoroughfares of Vienna. The crowd, unmolested, la quietly promenading the streets, which present very animated appearance. PESTH, APRIL 15. A conference of Magnates was held to-day for the purpose of taking into consideration a letter addressed by General Benedek, the commander of the troops in Hungary, to the President of the. Upper House. A resolution was adopted stigma tksing the letter as an insult to the Magnates, and ordering the publication of a reply thereto. The Wording of the reply was entrusted to a committee, amongst the members of which is Count Teleki. AGRAM, APRIL 15. The Diet has been opened to-day. The Ban was honoured with a popular ovation on the occasion. CHINA. PLYMOUTH, MoN D The Cospatrick, with troops from China, 93 days Out, has arrived off this port. On Saturday last she spoke the Macduff, 86 days from Hongkong, with 421 men and 18 officers of her Majesty's Ist Royals. The Mars and the Indomitable, from Hong- Long —the former with 261 men of.the Royal Ar tillery, and the latter with 302 awn of her Majesty's 2nd Queen's—have arrived in the Channel. THE BOMBAY MAIL. MALTA, SUNDAY, APRIL 14, 8.20 P.M. The Peninsular and Oriental Company's steamer, with the above mail, arrived here to-day; Her dates are to the 27th March. FRANCE. PARIS, MONDAY. Vely Pacha, the uew Turkish Ambassador to the Court of the Tuileries, has arrived in Paris. The Moniteur of to-day publishes an account of the indirect revenue for the first three months of the present year, which shows a decrease of 5,9 31,000 f., as compared with the same period in 1860. A Paris letter in the Independance gives the fol lowing account of a dinner at the Tuileries : " The Emperor, with the Empress leaning on his arm, and the latter holding the Prince Imperial by the hand, entered the saloon in which the guests were waiting. According to usage, each NV as named in succession by the Grand Chamber lain to their Majesties, and the Emperor shook each by hand, the Empress saluting. The Prince I mperial, who is a charming child with magni 4eent eyes and an air of great intelligence, was e onducted by the Empress to the place her Ma- Jesty occupied at the dinner table, on the Em- Penes left, but the Prince did not dine, not , being yet allowed to appear at table, at least when there is a reception. The Emperor was in military costume ; the Empress wore a splendid diadem in diamonds and a very elegant summer dress. Her Majesty was rikther pale— an indication of the morrow' I she has lately endured, but the Emperor seemed to enjoy perfect health. When the dinner was over their Majesties and the guests retired to the apartments situated between the Pavillon de Philibert Delo9ne and the Empress's old apaftment. The Emperorbad those rooms fitted up on a space which had been, formerly unoccupied, and the Empress has had them decorated with great taste. In oue chamber the pannels above the doors, and others at the same height, are ornamented with paintings of groups of birds; in another, flowers replace birds; and in a third are portraits, painted on wood, of her Majesty's principal female friends. The portrait most strikingly resembling is that of the Countess de Morny. It is placed above the door, and opposite one of the Countess Walowski. On the other side, on the same level, which is rather high, are portraits of the Duchess de Malakoff, Mme. de Labedoyere, etc. The reception terminated at half-past eleven. In the course of the evening an incident occurred which, though insgnificant in itself, proves that the Em peror sees all that takes place around him. At the moment at which, after dinner, his Majesty was making the round of the saloon, saying a word to each of his guests. he noticed that a deputy of the Legislative Body, M. Crosnier, remained in the se cond rank without attempting to approach him. His Majesty stopped, and, calling one of his atten dants, said, ' Go and see if Crosnier wants anything —he is so pale that he seems to me to be ill !' M. Crosnier, in fact, was indisposed, but only slightly, from the heat o 2 the room. This incident caused some emotion in the assembly, because it shewed the Emperor's attention." BOURSE, April 15.—The market bas been rather more buoyant, and prices have obtained a slight improvement on those of Saturday—Threes, for the Account, being now at 67f 60c. Railways firm. The following were the last quotations : ft per per Cents ... 95 40, Credit Fancier 925 Do end month.... I Belgian 4} 3 per Cents Do. end month 67 65 Roman Bank Shares 2890 Austrian Credit Mobilier.... 651 25 ' Spanish Threes 4B Do. Account 652 501 Home Debt .. 471 RAILWAYS. Cash. Account. Orleans 1331 25 .. 1332 50 Northern .... New ditto BBO .. Lyons and Mediterranean 947 50 .. 947 50 Geneva.. Southern 536 25 .. 537 50 Western Eastern Sardinian Austrian 457 50 .. 460 Lowbard 457 50 .. 458 75 ADELPHI THEATRE. Last night, an apropos sketch, called "the Census," was produced here, and met with complete success. The fun of the piece consists in the difficulties that a certain Mr. Peter Familias encounters in filling up the census paper in accordance with the wish of " a paternal government." In order to do this cor rectly, he delays the duty till the Monday morning, when at daybreak he rouses the whole of the in mates, And there finds, in addition to the usual residents, a lover, a drunken cabman, and a police man. Mr. Toole supported the principal part, and, it is almost needless to say, created immense laugh ter by the perplexities of his situation. The farce is a good one, and will no doubt have a successful run. POST-OFFICE SAVINGS BANE'S. Here this letter would have ended, but for the very ex cellent observations made by you upon the Post-office Savings Banks on the following evening. It is intimately allied with the present subject, has much occupied my thoughts, and which in May, 1847, I brought before Sir Charles Wood, then Chancellor of the Exchequer, and the details of the plan then submitted you will probably find in your office. _ _ It was proposed that a savings banks office should be created in London for England, in Edinburgh for Scotland, in Dublin for Ireland, _ . and that depositors might pay money directly to these chief offices, but all other payments were to be made through the money order offices of the Post-office. It was suggested that the plan might be carried out in the first place with the small towns without savings banks, and with the rural dis tricts, and when that portion of the scheme was working well the larger towns might be taken in, until the whole of the exiting savings banks were absorbed in one great Go vernment office in each of the three capitals. In an interview with Sir Chance Wood, the importance oX _ Politically, be , :aiise it gave to the Government, by the increase or dcerease of the deposits, exact information up7m the condition of the labouring classes in every part of the kingdom. Socially, because it afforded to the humbler classes in the country districts a safe place to deposit their money and close at hand, and with them time is money. And monetary ; because it prevented the gold from being retained and hoarded in the country, and sent it rapidly back to the centres from whence it came. _ _ It was also valuable, as it would enable the postmasters to be better paid, and although the present employes in the savings banks would have to be provided for by the places so made in the three capitals, yet it would ultimately in crease the Gcvernment patronage. It was further suggested to Sir Charles Wood to look into the money order department of the Post Office, and if necessary to make such an alteration in the mode of con ducting the business that would enable the above plan to be carried out forthwith. About a fortnight after this inter view, I was placed in commission at the Post Office, and remained four or five months, and having done what was immediately needed, and proposed what was required, I can say for certain no real difficulty was left to be sur mounted, and the whole scheme would work as easily for the small sums placed in the Savings Banks, as the trans fer Department of the Bank of England does for the large sums placed in the National Debt.—Mr. Wm. Ray Smee's letter to the Chancellor of the Exchequer. 2.111 S DAY'S SIIIIPPING. LONDON', April 16.—Wind this day at noon, Easterly; moderate breeze, and fine clear weather. DBAL, April 15.—Wind N.E.—Arrived—lndia, from Sunderland for Madras. POIVISMOUTH J April 15.—Wind N.E.—Arrived—Her Majesty's Emerald, from Plymouth. FLEETwooD, April 15.—Wind S.E.—Sailed—lntrinsic, for Quebec. SWANSEA, April 15.—Wind S.W.—Arrived—Annie Fisher, from Caldera. CROOKIIATEN, April 14.—Wind N.E.—Arrived—Alto, from Callao. OFF THE COPELAND, April 13.—Arrived—Matilda, from New Orleans for Liverpool. CLYDE, April 15.—Wind E.—Sailed—Eugenie, for Demerara. YouGHIL, April 14.--Wind S.S.E.—Sailed--Albion, for Quebec. OFF PLYMOtiTii, April 15.—Arrived—Cospatrick, from Bombay. (BY ELECTRIC TELEGRAPH.) • SOUTHAMPTON, Tuesday Morning. Arrived—Bremen, steamer, from Bremen; New Friend ship, from Cardiff; Calumet, from Seaham ; Thetis, from Leven ; Courier, steamer, from Jersey ; Portland, from Cardiff; Florida, from Newport; Supply, from Seaham. The Bremen was only 34 hours on the passage from Bremenhaven. Sailed—La Poule, kr Cherbourg ; Atalanta, steamer, for Jersey. (BY SUBMARINE AND MAGNETIC TELEGRAPH.) GRAVESEND, Tuesday Morning. Arrived, April 16—rhea, from Gravelines ; Bruiser, steamer, from Hamburg. Sailed, April 16—British Yeoman, for Quebec ; Lady Alice, for Toulon, China ; Albion, steamer for Boulogne ; Leopard, steamer, for Hamburg. DEAL, Tuesday Morning. Passed—Gibraltar, screw steamer, from Cadiz for Lon don. Sailed—Sea Breeze, from Cadiz, for Mauritius. ENGRAVING ON TABLE GLASS.—Several very exquisite specimens of engraving upon glass, more particu larly in the utilitarian form of decanters, carafes, wine glasses, and entire dessert services, have recently left Eng 11) - land to decorate the tables of the wealthy potentates and other luxurious denizens of the East, whom, it would seem, as well as the monarchs and princes of the European Continent, commission the London factories for this pecu liar and elevated order of art manufacture. The greater proportion of these orders have been entrusted either di rectly or indirectly to the skilled artisans employed at " The Thames Cut-Glass Works," the extensive . show-rooms of which, almost entombed in the river's bank, near Paul's Wharf, Thames-street, we have been at some pains to disco ver. We wore, however, amply repaid, through the courtesy of their manager, Mr. James Grees, for an hour so passed amongst its really beautiful examples of glass engraving, as we were not prepared to find anything like the high character of ornamentation and correct classical form there exhibited. These facts are worthy of publicity, as reflecting the greatest credit upon the English workmen, who have thus quietly and successfully secured an enviable European reputation in this elegant branch of trade..--Globe: THE FRENCH IN THE RED SEA. A frightful tragedy has taken place within the last month on the coast of Abyssinia. King Negouziah, the rival of the Emperor Theodosius, having been beaten in a pitched battle with the Emperor's troops, has been put to death by flaying, his body being afterwards suspended on a gibbet for two days, together with the corpses of two of his most devoted followers. France loses in Negouziah an ally who had already given a pledge of his sincere amity in his cession of one of the best harbours on the coast. It is hoped that the French Red Sea squadron will be increased, to prevent any revocation of this grant by the Emperor Theodosius. The bulk of the Abys. Milian population rcgaaha frieudlY tcs Fraucei —, ft:fe.Pencianco kfiJe. IMPERIAL PARLIAMENT, HOUSE .OF LORDS—YEsTEhLiAY. The Lolly CIIANCLLLOR took his scat on the woolsack at five o'clock. THE ROMAN CATHOLIC POOR. The Earl of WICKLOW presented a petition from Essex complaining that Roman Catholics were not on the same equality with Protestants in workhouses. PRIVATE BUSINESS. The Dublin (City) Steam Packet Company's Bill was read a second time ; and the Grand Junction Water Bill and Swansea Gas Bill were read a third time•and passed. POST-OFFICE SAVINGS BANK This bill was brought up from the Commons and read a first time. The second reading was fixed for this day week. LUNACY REGULATION BILL. On the motion that their lordships go into committee on this bill, The LORD CHANCELLOR stated the alterations he had felt called upon to make on this bill. It was proposed that there should be two medical visitors, but the noble earl (the Earl of Shaftesbury) had suggested that there should bo but one, and he thought that suggestion was a good one, and therefore he proposed that the bill should be altered to that effect. He thought that one ade quately remunerated medical gentleman was far preferable to two whose remuneration was not at all of a certain nature. The Earl of SHAFTESBURY said he felt flattered by the adoption of his suggestion. The Marquis of WESTMEATH thought that the law of lunacy required great amendment. The house then went into committee. COMMITTEES. The Mutiny Bill, the Marine Mutiny Bill, Exchequer Bills Bill, and the Consolidated Fund (£3,000,000) Bill passed through committee. Their lordships then adjourned. HOUSE OF COMMONS.—YESTERDAY. The SPEAKER took the chair at 4 o'clock. PRIVATE BUSINESS. The following bills were read a third time and passed : Clifton and Durdham Downs (Bristol) ; GarstOn and Liverpool Railway; Inverness and Aberdeen Junction Railway; Inverness and Aberdeen Junction and Inver ness and Nairn Railway Companies Amalgamation ; Lancashire and Yorkshire Railway (Branches to Shaw forth, &c.) ; Lancashire and Yorkshire Railway (Extension to Settle) ; London and North Western Railway (Eccles, Tyldesley, and Wigan) ; Marlborough Railway ; Midland Railway (Additional Powers) ; and Midland Railway (New Lines). The Inverness and Perth Junction Railway Bill was considered and ordered for third reading. The following bills were read a second time :—Clitheroe Gas ; Portsmouth Water ; Price's Patent Candle Company ; Thames Embankment. ROMAN CATHOLIC CHAPLAINS .IN PRISONS. Mr. DENMAN drew the attention of the house to an error which had been committed in the votes relative to a petition which he presented last week from the inhabitants of Tiverton. The petition was against the appointment of Roman Catholic chaplains and schoolmasters in work houses, and was correctly described in the newspapers ; but in the votes it was represented as being in favour of" the full exercise by Roman Catholics of their worship in pri sons," which was directly contrary to its prayer. Mr. NEWDEGATE complained of a similar mistake in reference to a petition which he had presented. THE SUN, LONDON, TITESDAN EVENING, APRIL 16, 1861. ' we had a year of which I may say all the circumstances were favourable to the revenue. So favourable were they, indeed, that on the 10th of February, 1860, I, preceeding on the estimates framed in the public departments, told the House of Commons I anticipated more than a balance of revenue and expenditure afer provision for a certain amount on account of the war with China. When, however, the 31st of March came there was a balance in our favour—to nominally a greater extent—but in reality to the extent of £1,200,000. In 1860-61, on the contrary, we hal a year in which the supply of the fruits of the • earth was stinted, and which may be looked upon as one of the severest within the memory of any living man. The revenue of 1859-60 was £71,089,000, and the revenue of 1860-61 was £70,283,000. There is an apparent decrease of £806,000; but I hope the committee will not think I am trifling with their understandings when I point out to them that one of these years was materially shorter than the other. (A laugh.) The revenue of this country is in the gross about £200,000 a-day for every paying day in theyear, but that part of it which depends strictly upon operations from day to day may be stated at £lOO,OOO a day. The year 1860-61 was, for every practical purpose, shorter by three days than 1859-60. It was shorterin this way :-1859-60 was a leap year, which accounts for ene day, and 1860-61 was in the predicament—most happy with reference to our other interests, but n't favourable to the interests of the revenue—of both commencing and ending with a Sunday. (A laugh.) By means of this extra Sunday there eyas a loss of a clear day's pay; and the third day is accounted for by the circumstance that in the course of the year 1860-61 there fell two Good Fridays. (A laugh.) After say ing, however, that two Good Fridays fell to our lot in the course of 1860-61, I may mention to the committee that in the present year, 1861-62, there is no Good Friday at all. (A laugh.) The deduction of three days, representing re venue to the amount of £300,000, shows a real diminution in the revenue of 1860-61 as compared with 1859.60 of £506,000, or, in round numbers, £500,000; and that, upon the whole, is a fair comparison. I have endeavoured to examine with all the care in my power, and what I find is this :—V7O remitted taxes last year to the extent of £2,900,000, ;or, in round numbers, £3,000,000; but what with the incense tax, the additional spirit duty, and the minor charges we imposed taxes as nearly as possible to the ' same amount. So far, therefore, the balance was not dis turbed. There was one other point, however, which might have disturbed it. It was this—in both years we made some draughts upon temporary resources. In 1859.60 we had £856,000 from the retrenchment of the malt credit, and we had likewise the sum of £250,000 in the shape of the repay ment of a debt from Spain, making together £1,106,000. In 1860-61 we expected to make a larger demand upon tem porary resources. 'We were to have £300,000 from the hop duty; but that sum entirely disappeared, partly by • the failure of the crop, and partly by the necessity of postpon ing the payment upon the reduced crop. We were to have £1,100,000 on account of the malt duty; but that sum, owing to the disastrous circumstances of the harvest, shrank into £778,000. We got £250,000 from Spain, a payment equal in amount to that made in the previous year; so that, as compared with £1,106,000 of temporary resources in 1859-60, we had £1,028,000 in 1860-61.; It is, consequently, fair and just to say that the absolute revenue of the country, after making every reasonable de duction, diminished under the circumstances of the last year by about £500,000. (Hear, hear.) I must confess, when I consider that the bad season of last year certainly did not represent a loss to the revenue upon the whole of less than from £2,000,060 to £3,000,000, that I cannot but regard with satisfaction the fact that the country exhibits a real deficiency in the yield of its taxes to an extent not ex ceeding, but rather falling short of £500,000. (Hear, hear.) Let me now compare the revenue with the expenditure of the country. The expenditure of 1860-61 was £72,842,000, and the revenue, as I have said, was £70,283,000, showing upon the face of the figures a deficiency of £2,559,000. But this account likewise requires verification. In the first place, a sum of £288,000, or, in round numbers, £300,000, out of the £2,559,000 belongs in every substantial respect to the account of 1859-60. There was a payment made by the State on account of drawback to the holders of certain stocks of wine. It was estimated and allowed for by.me in the accounts of 1860-61 at £350,000, and was so taken by the house at the time when the financial statement for that year was laid before it. Of course that money went into the balances of the country as part of the surplus revenue, and it was merely owing to a legal technicality that we were obliged to charge it in 1860-61. It is a legitimate deduction, having nothing to do with the real deficiency of 1860-61. The deficiency is thus reduced to £2,271,000, or, in round numbers, £2,250,000. It will be recollected that last Session we dismissed the subject of provision for expenditure with a deficiency; but, in July, when we had before us the esti mate of the charge for the war with China, the Government proposed, and the house agreed, I think, without opposi tion, that a portion of that charge should be defrayed from taxes, and a portion should be taken from the balances in the Exchequer, which were well able to bear it. £1,416,000 was the sum in the original estimates of expen diture for which we made no provision ; in other words, that was the amount which we were to take from the balances in • the Exchequer. If we deduct that sum of £1,416,000 from £2,271,000, representing the actual defi ciency, it follows that the real deficiency over and above what was anticipated in 1860-61, and what was sanctioned by Parliament, is £855,000 ; and certainly in a year of charges so heavy,- and of - receipia - -so - -unusually stinted with reference to the power and resources of the country, I do not think that is an unsatisfactory result. (Hear, hear.) I come now to that which has more to do with the question of the judgment that the House of Com mons may be disposed to pass upon the Government—l mean the comparison between the revenue of the year and the estimates of that revenue which were laid before the house last session. I shall not refer to various and, happily, contradictory complaints that were made from different quarters—some alleging that the estimates of the revenue had been outrageously swollen through the partial senti ments of the Government, and others asserting, with equal confidence, and, I have no doubt, equal sincerity, that an improper reserve had been exercised in the preparation of the Estimates, in order to mislead the house. The revenue as estimated was £72,248,000—the actual revenue £70,283,000, the difference £ 1 ,965,000, or, in round num bers, £2,000,000. Let me ask the particular attention of the Committee to the constituent elements of this sum of £2,000,000, becouse they are material as throwing light not only or mainly upon the conduct of the Government, or even the wisdom of the proceedings of Parliament in a par tieular session, but upon a number of questions of permanent interest and importance in connexion with the welfare of the country. To bring clearly before the mind of the Com mittee the manner in which the difference of £2,000,000 has arisen, I shall first deal with all branches of revenue in the gross which are of the least importance—all branches, namely, except the two great branches of Customs and Excise. Stamps, taxes, income .tax, the Post-office, Crown lands, and miscellaneous rireipts were estimated to yield £27,457,000. They actually produced £27,542,000, showing an excess of £85,000. (Hear, hear.) Some heads were £50,000 above the estimate, others were Vio,ooo below it ; but we may overlook these details, satisfied with the fact that the whole of these branches of revenue yielded as nearly as may be what they were estimated to produce. A word in passing on the subject of the minor duties, not because they form a vital or important part of this question, but because there is some misapprehension with respect to them. 'When they were originally proposed to Parliament in February they were expected to yield about £900,000; but in the course of the session an important change was made in them with a view to the relief of the trading com munity, upon whom several of them immediately fell; and the consequence was that the ultimate estimate of the yield of these duties, after taking credit for a number of small adjustments, was about £590,000. One of the duties—that upon chicory—remained in abeyance during the greater part of the year - in consequence of the largeness of the stocks which had been imported into this country, and which, having been imported free of duty, were naturally enough exhausted before the duty-paying stocks were brought into the market. It should likewise be borne in mind that the Act for the granting of wine licences was passed only last year, and although I must say it was passed with as much expedition as was consistent with the consideration that so important a subject demanded and received at the hands of the house, yet it was Rot posiible to get it into full opera tion until the end of the summer and travelling season, so that up to the close of the financial year it has had only a vary partial effect. In other respects I don't know that the produce of these minor duties was materally different from the final form of the financial estimate. I come now to the revenue of the Customs and Excise. And first of all I must warn the committee that the revenue of the Caftoms as it stands in the figures that hon. gentlemen have seen in the public journals is too favourably represented. The Customs were estimated to yield £23,430,000. They actually yielded £23,305,000; that is, there was an apparent deficit of £135,000 ; but although that difference is a decrease, yet substantially it may be said to represent equality. If, on the one hand, we allow for the shortness of the year, and on the other for the effect that happened through the diminished payments into the Excise, you may say that the revenue of Customs yielded as near as possible what it was estimated to yield. But then it is material to observe that in all cases of this kind the revenue of the Customs profited un unduly at the cost of the Excise. When we have a bad year the meaning is we have bad seasons ; when we have bad seasons the meaning is that the produce of the earth is less abundant than usual. If the produce of the earth is less abundant than usual, more must be imported from abroad, and though little of it comparatively is subject to duty, and none of it to a high duty, yet, of course, that virtually tends to remove certain dutiable articles from the region of the Excise, and bring to the credit of the Customs whatever tax may thereby have been received. Sir, that is particularly re markable in the present case, so far as regards the great in stance of corn. We call, and not unjustly, our duty on corn a nominal duty, and yet the yield of that nominal duty in the year just expired was £866,000. Sir, the amount of that duty I regard with the greatest dissatisfaction. Every pound we receivefrom corn over and above the regular duty upon it reminds us that the harvest has so far fallen short of what is necessary to supply the average wants of the country. It tells a melancholy tale in the first instance of that deficient yield of our own soil, and in the second place it tells of £2 or £3 withdrawn and withheld from the revenue in the shape of a narrowed consumption of the corn tatutAci Igagirio Qttlgi people, 9 C9ru, there is AA UP GALWAY CONTRACT. Mr. BAXTER moved for copies of all correspondence between the Treasury, the Post-office, and the Atlantic Royal Mail Steam Ship Company, since the Ist day of Sep tember, 1360, with reference to the conveyance of the mails between Galway and America ; and of all reports made by the Admiralty Surveyors on the vessels hitherto employed, or to be employed, on that line.—Ordered. EAST INDIA (CULTIVATION OF INDIGO). Mr. LAYARD moved an address for copy of despatch from the Secretary of State for India in Council to the Go vernor General of India in Council in the Judicial Depart ment, No. 63, dated the Bth day of April, 1861, on the cultivation of indigo in the districts of the lower provinces of Bengal.—Ordered. COAL AND WINE DUTIES CONTINUANCE BILL. In reply to Mr. L. ICING, Mr. CLIVE said that this bill would not be proceeded with this evening, in consequence of the illness of his right hon. friend the Home Secretary, but it would stand first on the list for Friday next. THE BUDGET. The house having resolved itself into Committee of Ways and Means, Mr. Massey in the chair, The CHANCELLOR; of the EXCHEQUER rose, amid some cheering, to make the financial statement for the year. The right hon. gentleman said :—Mr. Massey—The retro spective portion of the statement I have to submit to you is the most unfavourable—indeed, I may say it is the only un favourable statement of account—that it has ever been my lot to lay before the House of Commons. For that as well as Cs.— ‘ - • 4 , ,11, T if I invite their attention somewhat at large to its details. Whatever we may think of the legislation of last year, we must all concur in the opinion that it was no ordinary year in the financial history of this country. It was a year in which the house gave its sanction to that great instrument, the treaty of commerce with France—(hear, hear) ; it was a year in which we received a remission of our hereditary burdens, through the diminution of the charge on debt, such as we probably shall never receive again ; it was a year in which the controversy with respect to Protection, which so long agitated the country and disorganised this house, was at length finally wound up, for ii closed without leaving on the Statute Book of the United Kingdom one single protective duty of more than nominal amount. (Hear, hear.) It was also a year of the highest taxation and of the greatest expenditure that has ever been blown in this country, unless in the midst of an European war; and, finally, it was a yeaf marked by a succession of seasons—the spring, the summer, the autumn, and the winter—the most unfavourable with which it has pleased Providence to visit us for the course of about half a century. (Hear, hear.) The questions, I may further observe, which were debated in this house during last session were questions of no ordi nary moment, from whatever point of view we may look on them. The issue which they raised was no trifling issue. In one of the besutiful tragedies of Schiller, Mary,Queen of Sects, is made to say of herself, " I have been much hated, but I have also been much beloved ;" and I think I may with equal truth say that the financial legislation of last year met, on the whole, with signal support from the great body of the public opinion of this country, while I do not mean to contend that it was not, upon the other hand, un acceptable to many. But, be that as it may, I feel bound to admit that although the financial proposals of the Govern ment were last Session fully and minutely canvassed, they were fairly and in no factious spirit discussed within these walls. In taking a retrospective view of these measures it will be my duty to lay before the Committee, as far as I am able, the whole material facts exhibited by the financial history of the past year ; and while I cannot but doubt that I must perform that task most imperfectly, yet I need hardly say that the shortcomings in that respect with which I may be chargeable will not be owing to any want of will or effort on my part. I may add that in reeking this statement I hope to be seconded in my desire to afford the fullest information to the house, by the kind assistance of hon. members on both the one side of it and the other. (Hear, hear.) I shall first, then, submit to your notice the estimated and the actual expenditure of the past year. The expenditure which was estimated and provided for in the regular votes for the year, and entirely apart from the Act which was passed towards the close of the session for erecting with borrowed money certain fortifications, was £73,664,000; and, inasmuch as the Act relating to fortifications was by common consent treated as a matter entirely distinct from the ordinary financial arrangements of the year, I will not farther refer to it, except casually on one or two points, in the course of my observations to=night. The estimated expenditure was then, , as I said, £73,664,000, while the actual was £72,812,000, thus, as is apt to happen at a time when great warlike preparations are in progress, following closer on the estimated expenditure than is usually the case, but still falling considerably short of it, and showing a dif ference of £822,000 in favour of the former. Into the de tails of the expenditure for the last year I do not moan to enter, but this I may say,—that while there was a consider able saving on the estimate for the collection of the re venue, and a certain amount of saving on other estimates, there was a considerable overcharge for the navy, resulting from the settlement of the accounts of former years; so that the sum of £822,000 which I have mentioned as represent ing the balance in our favour as between estimated and actual expenditure is almost entirely due to the vote of credit taken for the prosecution of military operations in China. That vote, which I submitted to the house last July, amounted to £3,800,000, while the expenditure amounted only to £3,000,000, a fact which ought to be sufficient to convince the house that any man laboured under a delusion who supposed that it was the object of the Government last Session to invite the sanction of the house to what they believed W be an inadequate provision for the military operations in wlsach there was a prospect of our becoming engaged. I have, I may add, somewhat over-esti mated the balance remaining to us on the China vote, for it is in point of fact somewhat less than £300,000; but, passing by that point, I shall proceed to the examination of the revenue of the past financial year—a subject in dealing with which the committee will, no doubt, follow me with a greater degree of interest. That subject I will endeavour to place before you in all the various lights by which, so far as I am able to form an opinion, I may be able to increase your means of knowledge with respect to it. I will first compare the revenue of the last with that of the previous year; then with the actual expenditure of the year itself; and, finally, with the Estimates framed at the commence ment of the year. The two last of these modes of compari son will render the committee assistance in forming an (Ti n:ion as to how far the Government exercised a sound judg nt in the calculations which they made; but I may observe that the first mode of dealing with the point—that is to say, comparing the revenue of the last with that of the previous year—is one of the greatest interest, regarded as a ;law vi tll9 coulitim vi the covatry, 109 crease of £366,000. Over and above the sum of £500,000, which I take rightly to represent the average revenue, £54,000 was received on sugar used in breweries, to supply but very partially the deficiency caused by the miserable failure of the crop of barley. £47,000 was received on hops, arising in the main from a similar reuse. These three items together make a difference.of £167,000, which comes, as I say, unlawfully to the credit of the Cuse ans, and which represent more than the corresponding prejudice .to the Excise. It is worth while considering the importance of this subject, if the Committe will allow me, to exhibit it to them somewhat more in detail. If I take three great articles paying Customs' duty which together yield no less than £17,000,000,—1 mean the articles of tea, sugar, and tobacco, —the revenue from these three articles during the past financial year, notwithstanding the growth of the popula tion in numbers, was entirely stationary ; tea showed an increase of £5,000; sugar an increase of £18,000; and tobacco showed a decrease of £21,000, showing an increase on the balance of £2,000. But then, as I have already said, £54,000 was received on sugar used in breweries as a sub stitute for malt; so that the actual decrease was £52,000 on these three great articles so immediately connected with the comforts of the community, and the amount of revenue on which formed a measure and e.test of the degree in which those comforts are enjoyed. The Committee will, no doubt, like to know what has been the effect of the changes which took place in the form of reductions on important articles of Customs' duty. All I can say must be by way of general t description as to the operation of these changes, having re gard to the narrowing power of consumption which we may trace throughout all the figures of Customs and Excise during the year. And we find, I must confess, under the circumstances the result has been not unsatisfactory, cer tainly less unsatisfactory than the figures which I have just given to the Committee. I reserve for separate considera tion the articles of spirits and wine. I take together all the other articles on which duties were reduced in the last Ses sion of Parliament, of which the principal was timber. The total amount of reduction onthese articles last Session was £663,000. The total loss to the revenue was £529,000. Ther e has been a recovery by increased consumption amounting to £124,000, but I haven° doubt it would have been greater had the circumstances been more favourable. With regard to spirits imported from abroad, the Committee will observe that we made two changes last year in opposite directions. We began, in February, 1860, byabolishing the differential Customs' duty on spirits, although a small difference re mained to mark the proved cost of Excise regulation. The amount of reduction en brandy was £446,000, but in July welaid on an additional duty on foreign spirits of 2s. per gallon, which was estimated to yield £400,000 ; so that, in point of fact, the balance of relief we gave on the article of spirits was only £46,000. We surrendered £46,000 of reve nue. Then, taking all the three descriptions of revenue together, the result was that the increase on Geneva was £67,000, on rum £193,000, and on brandy there was a dimi nution over the whole year of £lBl,OOO ; so that there was an actual gain of £79,000 on spirits, together with a relief from taxation of £46,000. But the most important and in terestingof the changes made last Session with regard to its effect, both on the revenue, and likewise on the consumption and condition of the people, was that which was made on the duties on wines. I will endeavour to state the facts to the committee without any unneeessary waste of words, but with that fulness and clearness essential to appreciate the substan tial results. With regard to that particular alteration of Cus toms' duty my belief is that when you compare the new system with the old we may say that that change, of all the changes which were made in Customs' duties, was in the first place the most difficult to make on account of the ad ministrative operations necessarily attending it; it was, secondly, sure to be the slowest in working out its full re sults; and, thirdly, I believe it was perhaps the very best. (Hear, hear.) The loss I anticipated upon wine—that is the amount of relief caused by the reduction of that duty— was £830,000. , The actual loss has been £493,000. (Hear, hear.) In point of fact, of all the articles in the tariff—l am now speaking of revenue—wine is the only one that has faced the unfavourable circumstances of the year, and has made to us a better return in point of duty than even when I was anticipating average circumstances I ventured to sup pose. (Hear, hear.) The utmost reduction of the loss I ventured to state to the house was from £830,000 to £515,000 by the increase of consumption ; wine, and wine alone, has done all, and more than all I anticipated, and the actual loss is £193,000. (Cheers and cries of Hear, hear.) We began, as the Committee will recollect, with mere reduction of duty; we have ended the year with the initiation in full of the new system of charging the duties which was contemplated and provided for in the Act of last year, and since a new system of charging the duties began the delicacies I think, speaking roughly, have been nearly double of what they were under the former system. Whether they will continue at so high a figure I don't pretend at this moment confidently to predict, but I have no doubt whatever they will continue at a very satisfactory rate of increase, both as regards the consumption of the country and as regards revenue. I will give to the Com mittee very briefly the figures as regards importation. In 1859-60 wine, other than French, was imported to the ex tent of 8,021,000 gallons. French wine was imported to the extent of 1,155,000 gallons, and here I ought to say I think the importation has in some degree increased by the fact that the changes in the law were made some two months before the end of the year. The total importation of wine Wee v,iro•000 18(10-1 the importation of wine other than Freneh increased from 8,02.1,15 m to u,tite,tfuti, while the importation of French wines increased from 1,156,000 gallons to 2,631,000 gallons. (Hear, hoar.) The total importation was 'thus 12,509,000 against 9,176,000 gallons in the preceding year. The increase upon French wine was 1,476,000 gallons, or 127 per cent., while the total increase of all wines was 3,333,000 gal lons, or 36 per cent. I must here observe, as I have done on other occasions,' that it will take a long time to work out the full effects of the changes we have made in the duties upon wine, for I think the lessons of for mer experience distinctly teach ua that such will be the case. I believe it would be in the power of any ingenious person who made adequate research into the subject, to write an exceedingly curious tract upoh the history of the taste for wine in this country. The changes which that taste has undergone have been wonderful, but substantially, we may say, and I hope the hon. member for Norfolk will not be shocked by the assertion I am about to venture, we may say that in the really " good old times" of " Morrie England,"—a period sufficiently remote from our own to merit the application of that laudatory epithet —in those times the prevailing taste in this country was for light wine. The taste for wine has been materially connected with the course of politics. The Revolution of 1688, and especially the Hanoverian Succession, and the wars with France, greatly altered the taste of this country as to wine. I believe it is a fact that the University of Oxford, with which I have the honour to be intimately connected, actu ally petitioned Parliament against the grievance of the levy of a heavy duty upon light wine, which compelled them to drink port. (Laughter.) It is impossible to over look the application of the example to our legislation of last session. There is an interesting work, which no doubt many hon. members have read, which describes the state of things in Scotland a century back. Dr. Alexander Carlyle may be said to have been a gentleman clergyman of the Church of Scotland. Ido not mean to say a word against his character, but it is quite evident to anybody who peruses his memoirs that whatever his pastoral qualifications may havd been, he addod to them a perfect acquaintance with the science of good living. (Laughter.) Nothing can be more interesting than the frequent notices which are inter spersed here, there, and everywhere throughout his pages of the uses, merits, and the prices of different kinds of wines, but I think it is an important fact that this gentleman puts it upon record that the hotel price of claret in Edinburgh 100 years' ago at a club with which he dined—wine with which he was satisfied, and, therefore, with which I think any one of us would be satisfied—(a latigh)—the hotel price of that wine was 18s. per dozen. (Hear.) This is a matter upon which it may take a long time to develope any modifi cation likely to take place in the taste of this country. I cannot avoid mentioning to the committee some information which I received a few weeks back from a deputation which attended me .upon this subject. The deputation was cora posed of persons who, I believe, were keepers of eating houses with beer licenses, in the eastern, part of the metro polis, who had likewise taken out wine licenses. They gave me the joint results of their experience, and it contained one element of comfort for the hon. gentleman opposite, who, I know, has a strong opinion upon the subject of light wines and powerful wines. (Laughter.) They said the effect of taking out wino licenses was, that from 5 to 10 per cent. of their entire takings or sale consisted of wine which they sold at Bs. per gallon as draught wine, and which was formerly not to be had except in bottle. I believe the lowest price of wine was 3a. per bottle, or 18s. per gallon. That deputation likewise communicated to me another fact which I confess I learnt with much interest—viz., that but a small propor tion of the wine sold by them was consumed upon the pre mises, the chief part being fetched for the houses of the poor, and as far as they knew was principally for the use of the sick. (Hear.) They also said, and the hon. gentleman opposite will hear this with satisfaction, that the wine in demand with them was entirely and exclusively strong wine, and that no symptoms of vacillation in favour of weak wines had yet appeared. (Hear, hear, and a laugh.) I know that rumours have gone abroad upon the subject of the system now in operation for testing the duties upon wine, and I have to say upon that point, in the first place, that I think the Department of Customs deserves credit from the com mittee for the energy, intelligence, skill, and desire to meet the convenience of all parties with which they have applied themselves to the introduction of a new and undoubtedly at first a difficult system. But I have further to say upon this subject that the results of the system are satisfactory, and that we are convinced that it will be effectual for its main object, and that it deserves to be firmly and resolutely sup ported by the house. It may be true that a portion of it may be found less favourable than was hoped and expected by the French wine growers for the introduction of their wine. It is likewise true that Ido not pretend to represent that in all its details the system is perfect, but I do say that its inconveniences aro few as compared with its ad vantages, and, I think the committee will feel that it would be absurd to attempt to ascertain and amend those minor defects that may be found in the law as to the precise adjustment of the scale until we have had such experience that when we do touch them we may be sure to touch them satisfactorily and effectually, and that we shall not be reduced to the necessity of amending and culblipg our 9IYA W9O& foal Year to Miro 49 Rest uliak, • the time has yet arrived, nor that it will arrive in the pre sent year, of any change at all. When it does come I hope such minor changes as are required may be made, but I am quite sure that when they are made the conduct of the Go vernment of France in respect to the commercial treaty and the adjustment of its own laws will not be forgotten either by the esent or any other Government of England. (Hear.) So much, then, for the revenue from Customs, but there still remains to be considered the Excise revenue for the past year. The revenue from Excise was estimated in 1860 to be £21,361,000. Instead of that amount it was £19,435,000, showing a deficit of £1,926,00). In point of fact, if the members of the committee will be at the pains of comparing the deficit upon the Excise with tho entire deficit upon the aggregate revenue as compared with the estimates, they will find that they correspond within a few thousands. The deficit upon the Excise arises upon three articles, firsthops, which was estimated to produce £870,000, while it really yielded only £580,000, a deficiency in round numbers of £300,000. The next item is malt, which was estimated to produce £3,900,000, but which yielded only £6,116,000, or a deficiency of £BOO,OOO. The third article is spirits, which was estimated to produce £10,150,000, but which actuallyyielded but£9,210,000, or a deficit of £96,000. Thus the deficiencies upon these three articles together re present the source and form part of the failure of the re venue of the year to reach its estimated amount. As for the hop duty, that is accounted for in a manner so plain by the immediate operation of the season that I need not detain the committee upon that point. The whole duty chargeable upon British hops was £70,000, instead of £300,000 which was estimated for the year, because two years' crops are included in the £BOO,OOO which I have mentioned. And of that £70,000 it became necessary for the Government in the exercise of its discretion to allow the payment to be postponed, so as to pass into the next financial 'year. Thus £300,000 was disposed of. As to malt I am sorry to say that the £BOO,OOO I have men tioned can scarcely be said to represent the whole evil. There is no doubt the relation between the consumption of beer and malt, although an essential relation, is not one which takes immediate effect, but still it is un doubtedly true that with a favourable year we ought to have had a considerable advance in the consumption of malt and of beer, because malt has been benefiting for some time, especially in Ireland, by an increase in the spirit duties, and the sale of beer must have benefited materially during the last year throughout the three kingdoms, in consequence of an increase of duty upon spirits without any correspond ing increase in the duties upon malt. It is one main com plaint of the distillers of spirits, than whoin I never had the pleasure of meeting with a more intelligent body of British merchants or tradesmen—it is ono of their chief complaints that they are taxed so inadequately in proportion to the tax on malt. The alcohol in pure spirit pays 10s. to 10s. 6d. per gallon, the alcohol in wine pays 6s. to 75., and the al cohol in beer pays but ls. 10d. per gallon. That is an immense discrepancy which continues when we consider the tax in relation to its value. The tax upon beer may be said to be from 18 to 23 per cent. ; upon wine—that is, the only wine that can ever be expected to compete with beer— it is from 25 to 80 per cent., while the tax upon spirits is 5 times that amount, for it is hardly less than 400 per cent. But the committee will be anxious to hear what is to be said with regard to the spirit duties. We anticipated an in crease in the revenue from the duty recently imposed on spirits of £350,000 ; there was altogether a diminution in the actual yield of the spirit duty, as compared with the esti mate, of £900,000. Looking at this result, I cannot say that at first sight it is satisfactory; but it is a result that de serves the careful attention oi the committee, and it is one that will reward that attention, because the question of the augmentation of the spirit duties does not refer exclusively to any particular Ministry or Government. The proposal we made last year was made with a general belief that the result—at least the momentary and immediate result — would be, in some degree, uncertain. We were all desirous that the duty on this particular commodity should be carried to the highest practical point. In laying before the commit tee the exact state of the case, I must observe that the whole duty on spirits yielded £900,000 less than the estimate, and £500,000 less than the same duty in the year before. I will now entreat the committee to accompany me for a moment while I exhibit the results of the spirit duty on the year when broken into two parts, and the committee will be not a little surprised at those results. The first part of the year is from the Ist of April to the 14th of July, when the addition to the spirit duty was not known, or per haps not dreamt of ; the second part of the year is from the 16th of July to the 31st of March, when the addition to the duty had been made. From the figures I shall lay before it the committee will see that a very considerable decline was in operation before the duty was changed, and that the de cline was checked, and there was even some degree of abso lute increase afterwards. Especially is this the case if we take England alone, for both in Scotland and Ireland social causes are at work that have caused a pretty steady decrease in the consumption of spirits. (Hear, hear.) But I will give the exact case of England first, and that of the United Kingdom as a whole afterwards. In England the spirit duty received between the let of April and the 14th of July— [An hon. member on the Opposition benches here made some observation.] I hear a voice say, "It is all details." Certainly it is all details. (Cheers.) lam in the hands of the committee as to the degree of detail it will sanction. It is my duty to give them ; but it is not my duty to force any details on the committee beyond its disposition to receive them. (Cheers.) Sir, I look on this question as one of very great fiscal importance. (Hear, hear.) In England, then, —presenting the countries in their order—the spirit duty re ceived in 1859-60 was £1,203,000; the amount received in 1860-61 was £1,045,000, showing a decrease of £158,000. This was the general operation of the duty in England be fore the additional duty was dreamt of. Then, taking the part of the year from July 16 to March 31, when the addi tional duty was in operation, the amount received in 1859-60 was £2,991,000, and in 1860-61, £3,245,000, or an increase under the new duty of £254,000, which very nearly corres ponded with the estimate we made. (Hear, hear.) In Scot land there was a large increase before July, and a small in crease afterwards. In Ireland there was a decrease before the spirit duty was altered and a considerable decrease afterwards. In the United Kingdom there was a decrease of £634,000 before the duty was changed, and an increase of £90,000 after the 14th of July. These comparisons are of them selves valuable as far as they go, but the operations of the spirit trade itself are such as to materially bewilder and de lude those who endeavour to understand them without the advantage of a long experience. In 1869-60 there was an extraordinarily large delivery of spirits, from an anticipa tion of an increased duty. This very materially diminished the productiveness of the dutrin 1860-61. By the returns of the Board of Inland Revenue it appears that in 1860 duty was paid on 3 million gallons of spirits, and in IS6I duty was paid only on 2 million gallons ; this decrease of 1 million gallons represents a duty of £500,000. (Hear, hear.) This has been the case with every augmentation of the duty since 1853. In 1853, in 1851, in 1855, successive augmentations of the duty were made. They all, in the first year, produced a loss by exhausting the duty paid on stocks; and where the duty made such a largo proportion of the cost, it told severely on the revenue returns immediately after the aug mentation of duty. We approved an additional duty in 1853 ; in 1851 I had the honour of proposing to the house an augmentation, from which the return estimated was £476,000 ; we did obtain from it £590,000, but this aug mentation was a small one, and the result is an exception to the rule. In 18.51-55 a second augmentation was pro posed, from which the estimated return was £450,000; the amount obtained was £373,000. In 1855-66 the right hon. baronet the Secretary for the Home Department proposed a third augmentation. That was expected to yield £1,000,000; the actual return was £707,000. Lastly, the right hon. gentleman opposite (Mr. Disraeli) proposed an augmenta tion of the Irish spirit duty, on which the return expected was £500,000 ; but in the first year it only yielded £85,000. But in the second year this £85,000 rose to £304,000. The experience, therefore, of all changes of this kind shows that some time is required to bring them into regular operation. But I am bound to say, after examining the subject with great care, and all the inquiry into details I could possibly make, that I am convinced the experiment is likely, even in a fiscal point of view, to be successful, while on social considerations it will be beneficial. It may diminish the consumption of spirits, and I sincerely hope it may ; but it has not yet given rise to the only evil we have to apprehend —an increase in illicit distillation. (Hear, hear.) I have hero the returns, though not beyond the end of 1860, of the number of convictions and commitments to prison in each of the three kingdoms of persons charged with keeping illicit distilleries in the years 1859 and 1860, or in the first nine months of the fiscal year of 1860, compared with the corresponding nine months of the year pre ceding. In each of the three countries there has been a considerable diminution in the number of convictions and punishments, especially in Ireland, where the probability of the evil arising was the greatest. IroEngland the num ber of persons committed to prison in the first period was 54 ; in the second period it fell to 39 ; in Scotland the num ber of commitments were 6 in the first period, and 5 in the second; in Ireland the detentions in the first period were 1,829, and the convictions 101; in the second period the detentions were 918, and the convictions fell to 84. The machinery of detection employed in Ireland is so efficient that the reports of the constabulary sent in to the Govern ment may receive the most complete reliance. (Hear, hear.) No doubt the competition of wine may have had something to do with it; but that can only have been slight and insignificant. The consumption of malt liquor has s einth aa the consumption that, tt; inits o of ardent l more to dceorwtatitnhlythtehdreeerceias a change aspect, must be viewed with satisfaction. (Hear, hear.) These are the facts with regard to the spirit duty that I have ventured to lay before the Committee. And I pur pose to say one word of the general plan of the legislation of last year, because there are those who think that a na tural fear may be entertained that the House of Commons has , departed from its ordinary practice, and in some degree shrunk from its duty, in consenting to have recourse to temporary resources, instead of meeting the expenditure of the country from an a iequate amount of taxation, and from that exclusively. I think, Sir, I may really say that no one is more anxious than myself to invite and stimulate this House on every occasion to the greatest exertions for the purpose of maintaining the credit of the country on the only secure foundation of an equal balance between income and expenditure. I think it is quite impossible in dealing with the arrangements of particular years to omit all re t9 the peculiar ciNuotauccri Qf tkio triad t 9 rapid, the enormous, the almost incredible growth of the expenditure of tt.e country. (Hear.) I will state in round numbers—for these are not details,—yet with sub stantial precision, how this matter stands. The right hon. gentleman (Mr. Disraeli) had three years ago, as Chancellor of the Exchequer, to propose the votes neces sary for the service of the country, and the votes which he ;proposed were under £61,000,000, In 1360 it was my duty to propose to this House votes which were under £74,000,000—an increase cf £10,000,000 in the national ex penditure within the short period of two years. ,(Hear, hear.) Now, has the House of Commons really flinched from its duty with regard to the mode of providing the money? I admit that we drew to some extent neon tem porary resources, and I think we were justified in doing so. But how much of this expenditure was raised in taxation ? With no relenting hand we imposed £7,000,000 of new taxes in the course of those two years to meet the annual engage ments of the country, and some parts of this new taxation was in the shape of permanent additions to our fiscal re sources. (Hear.) We raised by taxes in the year about £70,000,000. The increase of taxes in two years, as I have said, was £7,000,000. We had in China a war expenditure of £5,000,000 to provide for; and under these circumstances 'the result has been that, combining together what we have taken from the balances, and what we have derived from the malt credit and the Spanish credit, we have drawn from temporary resource e other than taxes a total sum off 2,450,000 I must confess that I do not think there is in that state• meat anything of which the house can accuse itself, unl ess indeed it be that the consciences of some hon. members may reflect upon them for not having given sufficient attention to the amount of the national expenditure. (Hear, and a laugh.) And now, what have been the operations of the past year with regard to the balances in the Exchequer and Debt ? That is very easily stated. The balances in the Exchequer on the 31st of March, 1860, were £7,972,000; on the 31st of March, 1861, they were £6,672,000. But £150,060 of this last-named amount was money raised for the fortification annuity, deducting which, we had on the 31st of last March a balance of £6,522,000, being an actual diminution in the balance of £ 1 ,450,000, while the estimated deficiency provided for was £ 1 ,416,000. The committee will see, under these circumstances, that there has been no diminution which entails inconvenience in meeting the de mands of the public service. With regard to the National Debt, again, the account is a simple one. We had last year to pay off £1,000,000 of Exchequer-bonds. That rendered it necessary to ask Parliament to raise another £1,000,000 of Exchequer-bonds in lieu of them. Besides that, in conse quence of the very formidable prospects of the harvest, en tailing an almost certain loss of revenue, I was obliged, in view of that contingelicy, to ask rather suddenly, late in the session, for authority in case of need to borrow another £1,000,000 of Exchequer-bonds. The state of the case, then, is this :—The odd million has been paid off and replaced by the new million. Out of the second million which I so took authority to borrow, in view of a probable deficiency, £600,000 has been borrowed. Against that, £139,000 of Exchequer-bills has been paid off and not re issued. So that, in fact, in consequence of the circumstances of last year and its war expenditure, the direct addition to the debt of the country, leaving out of view the diminution of balances, is £461,000, or something under half a million. (Hear.) Before quitting absolutely this lengthened retro spect, I must say it appears to me that there is a lesson to be derived from it over and above anything that I have en deavoured to state. I will ask the house, if they will allow me, to compare very briefly the year which we have just brought to a close with the latest preceding year which seems to resemble it in its main features—l mean 1853. In bath these years there were large remissions of taxation. In both the harvest was a very bad one. No doubt the course of 1360 was considerably worse than that of 1853. It was also preceded by an unfavourable spring, which raised the price of animal food to an unprecedented rate, and was followed by a most severe and ungenial winter, which for several weeks deprived one -half or a considerable proportion of the labouring population of their employment. Notwithstand ing all this, I cannot help feeling it my duty to ask the committee to note, as I have said, the resemblances, and at the same time to note in one important respect the marked contrast, between 1853 and 1860—I mean as to the imme diate and palpable effect of the remissions of duty made in those two years respectively. I do not know whether there is any one who will say that that is because in 1853 the re missions were wise, while in 1860 they were unwise remis sions. (A laugh.) I have an equal interest in the effect of both, as it was my fate to have proposed both. Substan tially, these remissions are akin in their character, and if there be a preference for either I think the remissions of last year are more likely to be preferred than those of 1853. But mark in a very few words the singular contrast of the results attained. In 1853-4 we remitted £1,500,060 of Cus toms' duty, and every shilling of that £1,500,000 was made up in Customs' revenue within the year, with 123,000 to spare. That has not been the case this year. As I have said, there was upon the Customs revenue of 1853 a gain or recovery of £1,523,001 This year we took £2,376,000, after allowing £400,000 of additional spirit duty which we laid on. Instead of recovering the sum of £2,376,000, however, we only recovered £580,000. In 1853-4 the estimate of Excise revenue was £14,610,000. After deducting taxes imposed, we gave a balance of relief of £350,000, and the Excise revenue of 1853 showed an in crease of £623,000, so that at the and of the year the re venue gained to the extent of £973,000. In 1860 that was far from being the case. The Excise revenue was origi nally estimated at £19,170,000. We imposed upon it, in the shape of malt credit, additional spirit duties, and hop credit, an increase of £1,945,000, besides the £19,170,000. But, instead of such a recovery as we had in 1853, we ob tained out of this £1,915,000 only a sum of £265,000. This is a very serious and important fact, which I am sure must attract the attention of the Committee. (Hear, hear.) I do not undertake to give any complete or full or demon strative explanation of this fact. Bat I cannot help calling the attention of the Committee to one circumstance which I have not yet mentioned, of difference between 1853 and 1860—I mean the difference in the expenditure of the coun try at the two periods. (Hear, hear.) In 1853-4 the Im perial expenditure of the country—l mean that not local, was under £56,000,000. The local expenditure was under £16,003,000, and the total expenditure was under £72,000,000. But in 1860-1 the Imperial expenditure amounted to what the local and Imperial expenditure to gether were in 1860. (Hear, hear.) It amounted in round numbers to £73,000,000, including the small sum which was due in respect of the fortifications. The local expen diture, as nearly as I can make it, was about £18,000,000. The total expenditure had grown from £71,500,000 to £91,000,000, or nearly £20,000,000 in the space of seven years. (Hear.) Now, Sir, Ido trust that this will be re membered and considered. (Cheers.) Let us think what is the meaning of it. We have nothing to do but to reflect in order to take a wise and becoming course, and all I am anxious for is that we should reflect, and should reflect in time. (Hear, hear.) What are the annual savings of this country ? May we take them at £50,000,000 ? Enormous as that sum is, I believe it may be taken as the amount which the skill, and the eapital, and the industry of Eng land lays by every year. If it be so, and if we take this £50,000,000 for a period of eight years, we get a total capi tal of £400,000,000. Now, if we put upon that sum of £400,000,000 —taking all kinds of investments together —an interest of 5 per cent., the result is that it gives us the £20,000,000, as the aggregate result of the whole savings of the nation for eight years, completely absorbed and swallowed up in the grave of this expenditure. (Cheers.) I cannot help thinking that there is some degree of relation between the enormous and inordinate growth of expendi ture and the diminished elasticity of the revenue. (Hear, hear.) I have still to do justice to one important subject. I have referred to the fact that last year, on the proposal of the Government, Parliament was pleased to diminish the immediately available resources of the country, and like wise to the fact that the revenue of the year is, upon the whole, unsatisfactory. Does there arise from the associa tion of these two facts any presumption that Parliament, in its decision last year, mistook the path of duty and erred in judgment ? I think I can show that, if the employment of the people and other circumstances have not been such as to yield an adequate revenue in the year as it has actually gone by, the condition of affairs would have been far less' satisfactory but for the wise and provident legislation of Parliament. The committee is aware that in November last the treaty of commerce with France reached its final form by means of supplementary convention. It is not necessary for me to speak in this place of the signal services which, in the view of the Government, Mr. Cobden has rendered to the t country in connexion with that treaty. (Hear, hear.) I is a pleasure to refer to the able and intelligent were associated with him by the heads of certain administrativeassis assistance which he received from the coadjutors who merits. (Hear, hear.) But it is n o more than an act solute justice that, having watched w ith deep anxiety de o p f ar ab solute in regard to the treaty from e commence the ee mont to the close, I should reco rd the sense I entertain, of the Government of France, both inand in common, I . believe, (Cheers.)with my lt colleagues, of in deed the transactioncond et and' completion. tlhoanyal,hasthohreoeunghe,xhinihteitlelid tt the e refer t o proceedings, particulars from ; first but, looking last a d t eal the it w w h o o u lo ld c course s idle, l o e f by the Ministers of France, under the animating spirit and guidance of the Emperor, to give full effect to the terms g n e e nt e , n u e efl e i a n n ehi e n e g n d ee e i t v e e rm a ina in ti e o r n e and principles of the treaty, not for the mere sake of con ciliating England, but for the sake of the interests of France. (Hear, hear.) 1 will now exhibit to the committee the effects of the measures of 1860 on the trade of the country. The export trade of the last year was the largest we have seen. The exports came to £136,000,000 of declared value, against £130,500,000 in the preceding year. The increase, indeed, was really greater than it seems, because the amended introduced in the middle of the year, system regairinogf greater statiicst times for the correction of the d oc uments, had the practi ca l effect of leaving a gap is the month of June, and und u l y reducing the apparent exports, of the year. It may be justly said that we have no means of knowing in what degree the increase of exports may sibly have been connected with the measures adopted have y Parliament. I come, therefore, to matters which loodse the means of judging —the importations of fo l re d i o gn not If an increase of importations has taken plee that as n sup pose there is any gentleman here who deplorewillbeen paid for. a great calamity, and insist that, as ee: t h.m has ent and notaa gold, it must constitute an impoverishment e, "Aga igtie gutztu, z pull PrOtlll4o iniN 1 / 4 3 / 4 1,