The Press.
London, England, 1857-01-17 00:00:00

Average of six years

50,309,866
Thus, the average net income for those ordi-
nary six years was about 53,000,0001., and the
average expenditure about 50,500,000/., leaving
a clear surplus of about two millions and a
half sterling.

When Mr. GLADSTONE, as Chancellor of the
Exchequer, brought forward his Budget on
April 18, 1833, he stated that the net income
of the financial year just ended amounted to
53,089,0001., and the expenditure to 50,782,0001.,
showing a surplus of 2,460,000/.
The following year was more favourable.
The revenue for the year ending 31st March,
1854, which had been estimated by Mr.
GLADSTONE to produce 52,990,0001., in reality
produced a million more than that amount,
making the total 54,025,0001., leaving a surplus
of about 3,000,0001. In the financial statement
made by Sir G. C. LEWIS on the 19th of May
last, be said that the net revenue in the last two
years of peace, 1852-3 and 1833-4, amounted to
108,018,12:31. The expenditure for the same
two years amounted to 102,032,5961., thus
showing an average surplus for each year of
very nearly three millions sterling.
All these figures aro taken from actual
results. They are matters of certainty about
which there can be no dispute. With the
returns before our eyes we cannot err in
setting down our ordinary peace expenditure
at between 50,500,000/. and 51,000,0001., the
average being taken for the eleven years of
peace from 1843 to 1854.

The net revenue for the financial year end-
ing 31st of March next will, we believe, not
fall short of 98,000,000/. Sir Cr. C. LEWIS, in
his statement of 19th May last, estimated the
revenue lie should receive at 67,132,000/., but
we believe the returns will be on the whole
better than he anticipated. The gross
revenue, including charge of collection, he
supposed would be 71,7-10,0001. The gross
revenue for the year ending 31st December
last was actually, as we know by the published

51

returns, 72,218,988/. The gross revenue for
the year ending 31st March next will, we
imagine, equal, or surpass, that amount ; and,
allowing 4,500,0001. far the cost of collection,
it is impossible that we can be far wrong in
supposing that the net revenue will be
68,000,000/.

Supposing our expenditure in future not to
greatly exceed the average of the eleven years
from 1443 to 1854, the CHANCELLOR of the
EXCHEQUER will, with a revenue raised to
68,000,0001, have a surplus of about 17,000,0001.,
or one million more than the total amount
raised from the Income Tax.

Now, we do not pretend to say what amount
of expenditure Parliament may think it neces-
sary to maintain in future. To our mind there
are very strong reasons why the sum of
51,000,000/. should be little, if at all, exceeded.
But before entering on that branch of our
subject we may premise—I. That, whatever
the national expenditure is to be in future
should be discussed and determined during
the coming session ; and, 11. That the amount
of 51,000,000/. is much more than was thought
necessary for many years previous to the year
1843, at which we have commenced our
returns.

I. The country can never expect any period
to occur when peace will be more settled than
it is at present. On this subject we have
touched in another article. The late war has
conclusively established one great fact, that
when England and France are in alliance their
power is irresistible. Look to what part of
the globe we may, there is no reason to appre-
hend the outbreak of hostilities of a serious
character. With the United States our rela-
tions are, on the whole, quite as friendly as
they have ever been before. Perhaps they
never were so well assured as at present.
With the people of France we are in perfect
amity. and with the Government of France we
can now say we are in close accord. Russia,
after her late most terrible experience of the
calamities of war, is not likely again to disturb
the peace of Europe for a century to come;
and there is no other State with power equal
to provoke a great war. We regard it as cer-
tain that our dispute with Persia will he
arranged now that we have resumed peaceful
relations with the Court of St. Petersburg, and
that Persia has invoked the mediation of that
Court, which has, in turn, appealed to the good
offices of the EMPEROR Of the FRENCH. It
cannot be the public wish to prolong the
miserable dispute with China. If it is neces-
sary to insist on certain concessions being
granted by the Chinese Government, arrange-
ments must be made to obtain them in concert
with France and the United States, which will
leave the Chinese Government no alternative
but to submit.

The estimates for the ensuing year, then,
must be heave estimates. Whatever sum is asked
more than it is proposed shall be ordinarily
spent on our army and navy will be utterly
thrown away, as no pretence for extraordi-
nary expenses now exists. A sum of about
16,000,0001. is usually spent on these branches
of the public SCFV ice, in order that they may
be kept in a certain state of efficiency, and
for►n the nucleus of a force to be raised when
war breaks forth, or appears imminent. A
sum of three or four times fifteen millions, as
we know by experience, must be raised when
we are actually engaged in hostilities on a
great scale. The army and navy estimates for
1836.7 were last year originally fixed by the
Government at 54,874,000/., and even that
amount, had the war continued, it is probable
would have been largely exceeded.
It is evident, therefore, that we can never
hope to maintain our national armaments
upon such a scale as will render us always
ready to embark in a great war at a day's
notice. To a very considerable extent, war
must always find us unprepared ; that is, w•o
shall always have to increase our forces as
rapidly as we can. Russia tried the opposite
plan of keeping her army and navy on a war
footing, and with what result we kni
national resources were wasted in mai

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52

extravagant establishments, and were found
unequal to the pressure which actual war put
upon them. They broke down in the hour of
need, while the resources of England with
marvellous buoyancy responded to the enor-
mous call made upon them. The total expen-
diture of this country in the last year of war
rose to 93,000,000/., and that amount, amazing
as it was, might have been exceeded to any
extent that the Government deemed neces-
sary—so inexhaustible were the resources of
the nation. Our ability to conduct war on a
colossal scale when the necessity arises is due
t► the wise economy which presides over our
finances in ti me of peace. Had we maintained
larger establishments from 1815 to 1854 than
we did, it is probable that we should have
been less prepared for war when it broke forth
than we actually wero. Whatever unprepared-
ness existed, was owing much less to the
smallness of our establishments than to their
inexperience. As it was, we were able to send
from our shores, at the ver7 commencement
of the War, an army of 50,000 men in the most
perfect state of equipment and discipline.
11. We find that the expense of our military
and naval establishments had fallen to the
lowest point in 1835. Their cost in that year
was 11,657,4861., and they went on gradually
increasing until in 1853 they rose to
16,000,00001., or about 4,000,000/. more than
they had been eighteen years previously.
This increase was not unobserved, nor did it
pass without strong expressions of dissatisfac-
tion on the part of a powerful body of politi-
cians—the manufacturing and peace party.
In fact, it was only the outbreak of war which
saved the country from a regular agitation
against what Mr. COBDEN, Mr BRIGHT, and
their followers called war establishments in
time of peace. They demanded that the esti-
mates of the army and navy *should be re-
duced to as low a point as they were in 1835.
Whether an average of 16,000,0001. is suffi-
cient for these services in time of peace, it is
for the Legislature and the country to decide.
The average from 1830 to 1840 was less than
13,000,0001. And we are strongly inclined to
believe that if the highest point previous to
the War be much exceeded, a reaction will set
in, which will again compel their reduction to
an inadequate scale. We do not believe that
for any considerable number of years of peace
the country will consent to the maintenance
of establishments more expensive than those
previous to the late War. And obviously it
will be gross and most foolish waste of the
national money to uphold larger establishments
for two or three years (while the public retain
a lively sense of the late War) than can be
permanently maintained. What scale of effi-
ciency and expenditure it is desirable to main-
tain in future should be determined during the
next session. The principle should be steadily
kept in view, that our forces should be so
arranged in time of peace as to allow of great
and rapid expansion when war occurs.

We are satisfied it would be sounder policy
to replace our military and naval establish-
ments on nearly their footing immediately pre-
ceding the war, and gradually strengthen
them as the country recovers from the pres-
sure of its new burdens, than to greatly in-
crease them at once, and be compelled by the
force of opinion in a few years' time to reduce
them. To show the misdom of economy,
PALEY puts the case of one man who began his
expenditure at a scale of 1001, and was able
to raise it 501. a year, until in twenty years it
reached 1,0001. per annum ; and the case of
another man who began at 1,0001, and was
compelled to drop it 501. a year, until in
twenty years it was reduced to 1001. In the
twenty years both men would have spent the
same sum, but which would have had the
most comfort? The gradual reduction in our
establishments carried on from the Peace of
1815 to 1835 were, on the whole, narrow,
pinching, and injudicious. The increase from
1835 to 1854 waa, on the whole, liberal, efficient,
and wise ; and it is the latter system which
we hope to see adopted.

On the supposition that our ordinary expen-
diture be nearly reduced to the amount pre-
vailing in 1853, or to about 51,000,0001., there
will be an addition of more than 1,000,000/. for