The Express.
London, England, 1867-04-05 00:00:00

IMPERIAL PARLIAMENT.

ROUSE OF LORDS.—THrRSDAT, ANRIL 4.
IN the Horse of L0a0.4, yesterday, several bills
were forwarded a stage. The sitting lasted but a
few minutes.

HOUSE OF COMMONS.—Tut E. Aran. 4.
lx the HOUSE of COMMONI, Lord STANLEY
stated that ho had received a telegram saying that
official intelligence had been received of the pur-
chase of Russian America by the United States.
The CHANCELLOR of the EXCHEQUER then rose
to make the annual financial statement. He said
the estimate of expenditure for the last year was
67,013,0001., and the revenue yielded 69,434,000/.,
showing a surplus of 2,421,0001., the surplus being
almost entirely under the heads of customs and
excise. The estimated expenditure of last year
was 67,031,0001. and the actual expenditure had
been 66,780,0601., showing a saving of 251,0001. ;
so that the balance for the year 1866-7 amounted to
2,654,1721.' and the balance in the Exchequer
was on the 31st March, 1866, 5,885,314/. ;
and on the 31st March, 1807, 7,294,150/.
He estimated the expenditure for 1867-8 at
08,134,0001., and the income at 69,340,0001., and
this would give an estimated surplus for the year of
1,206,0001. The question then arose, what were
they to do with this surplus. There was no tax at
the present moment injuriously affecting the in-
dustry of any class, except the producers of barley,
but the malt tax question was a very extensinep. It could n, ot be d
it wealt with except ve
in a com-
rehensive way, and as impossible for him,
with the resources he had at command, to deal
with it. The next mode by which relief could he
given was by a reduction of the debt. He did not
propose to interfere with the present law, by which
any balance of income over expenditure at the end
of the quarter was applied to the reduction of the
debt. But there were two other modes by which
they could deal with the national debt—one was
by a sinking fund, of which he disapproved,
sod the other by terminable annuities, or
converting stock into terminable annuities, a
proceeding for which the government had great
facilities. Last year Mr. Gladstone called attention
to this subject, and brought forward two plans ;
by one of which he proposed to cancel a debt of
about 5,000,0001. owing to the savings banks by
the formation of an annuity which was to termi-
nate in 1885. That measure was carried, but
before it could be carried into effect the panic took
place in the money market, and the operation was
suspended, but he hoped that it would soon be
carried into effect, and he had provided for it in the
charge of the year. Mr. Gladstone also proposed
to deal with a sum of 24,000,0001. by a compli-
cated arrangement extending over a long period,
and not terminating till 1905. If circumstances
had been favourable government would have
endeavoured loyally to have carried out
that plan, but when they acceded to office
the surplus was already diminished, and fur-
ther claims coming upon them it was im-
possible to proceed with that operation. He pro-
posed to deal with 18,000,0001. of that amount by
the creation of an annuity of 1,332,0001., termi-
nating on the sth of July, 1885, and with
6,000,0001. by the creation of an annuity of 446,0001.,
terminating on the sth April, 1885. The total of
the two azmuitiea Auld be 1,776,0001., but from this
must be deducted 720,0001., the amount of interest
now paid on the 24,000,00., leaving the increased
charge only 1,066,0001., but as the dead weight
annuity, 585,0001., now paid to the Bank of Eng-
land, would cease this year, the increased annual
charge for the debt would hereafter be less than
500,0001. The increased charge would however
this year reduce the surplus by 750,000/., and there
would still remain a surplus of 456,0001., and he
intended to make use of this by reducing the duty
on marine insurances, which now ranged from 3d.
to 4s. per cent., to the uniform rate of 3d. per cent.,
except for time policies extending over six months,
when the duty would be 6d. This would absorb
210,0001., leaving a surplus of 246,0001., with which
he hoped the house would not interfere.
Mr. LAINO did not agree in the statement that
there was no tax remaining besides the malt tax
that pressed disagreeably, and he instanced the
post-horse duty and the fire insurance duty.
Mr. Manse observed that there were many
license duties which ought to be removed.
Mr. DENMAN complained that it was not part of
the scheme to abolish the duties on attornies'
Icertificates.

Mr. WHITE complained of the increased expendi-
ture, and suggested that the marine insurance duty
should be entirely repealed.
Sir G. Bowrzn ridiculed the idea that by the
creation of terminable annuities to the amount
proposed they would make a sensible effect on
the debt.

Mr. HUBBLILD expressed his satisfaction at the
proposed reduction of the duty on marine insurance;
but with this his satisfaction ceased. At a fitting
opportunity be should move that until the lire in-
surance is reduced very considerably, it is not ex-
pedient to deal with the national debt in the way
that was proposed.
Mr. GLADSTONE expressed his dissatisfaction
with the augmentation of the expenditure, which
was 2,029,0001. more than last year. He thought
there were several license duties that ought to be
removed, and that the duties on locomotion ought
to be dealt with. The fire insurance duty, so far
as regarded buildings, he thought ought to be
dealt with on the principle of substituting for it
an increased charge on house property. He thought
the Chancellor of the Exchequer was entitled to
credit for having resisted the temptation to obtain
popularity by the reduction of some tax, and
having proposed instead a plan for reducing the
national debt :

The hon. member for Dundalk (Sir Geo. Bowyer) chal-
lenges the whole policy of reduction. He says, " Why
reduce the debt at all ?" That is • very large question, but
without pretending to aim at a discussion of the question,
I will call attention to the return numbered 69 of this ses-
sion, which contains matter of considerable importance in
relation to this subject. It may, however, be sufficient to
say that the reduction of our debt has been reeognised in
this country as a principle of public policy at every period
since our debt began to be created, with the exception of
those periods when, unfortunately, we were obliged to
extend it, and this reduction has been made in ways—
first, by the application of surplus revenue, and secondly,
by terminable annuities. A principle so recognised seems
to me to rest upon something more than mere ab-
stract argument. I assume that the House of Commons
does not wish to determine or reverse that policy, and
therefore the burden of proof that it wishes to do that
rests upon those who may propose it. Let us see how this
principle has been acted upon of late years. From 1834
onwards there has been a regularly increasing amount
applied in reduction of the debt through the operation of
terminable annuities. In 1846-7, 2,07ug6,0001. were so ap-
plied, and that sum progressively increased till in 1855-6 it
amounted to 3,000,0001., and in 1858-9 to nearly 3i millions.
In 1860.1 there was a surplus to the extent of 1,232,000/.
from the falling in of terminable annuities, and that sum
was increased in 1865-6 to the sum of 1,673.0001.,
and in this year there is a further falling in
of the sum of 600,0001. Now, if there be
no attempt to make • further reduction of our
debt, it would amount to an abandonment of th‘t
policy which has been so long established, and to a deter-
mination to adopt no means for the reduction of the debt,
except from the ciuival surplus of revenue. lam not dis-
pued to act upon that principle, and I would press home
an example which the house will do well to hear in
mind. Let us not be ashamed to follow a good example
wherever we may find it, or to render a just tribute of ad-
miration to the courage and forethought of the American
people, who are at this moment bearing a large burden of
taxation, both in its amount and kind, which makes their
conduct a marvel, because they believe that the true secret
of their future power lies in the steady and rapid reduction
of their debt. (Hear, bear.) It is really worth while to
consider what the Americans have done. The highest point
of the American debt was reached on the 31st August,
1865, when it stood at 2,757 million dollars. Immediately
after that the process of reduction commenced, and on the
30th June, DM, the debt had been reduced to the amount
of 2,650 million dollars. On the 31st October, 1866, it was
reduced to 2,575 million dollars ; and on the Ist January
last it was reduced to 2,543 million dollars. The total
decrease of debt between August 31st, 1865 and January
1 5t,1867, was 214 A million dollars, or nearly 43,000,0001. star-
ling,and this amount has been taken out of the taxationof the
country in the period of 16 months. Passing by the argu-
ment of my hon. friend (Sir G. Bowyer) I must say when
I see such facts as these I am infinitely imprused with the
greatness of the American people, and with the formidable
character of the conflict which we or any other country
must sustain in any war with them. That people have not
idly and vainly imagined that the true secret of their
soccer is in time of pesos to keep up huge armaments
(lieu, hear.) I believe that they have judged rightly in