The Northern Daily Times.
Liverpool, Merseyside, England, 1857-02-17 00:00:00

THE BUDGET AND THE TEA DUTY.

TO THE EDITOR OF THE NORTHEBN TIMES.
Sir,—ln the midst of the gratulations awakened
by the abolition of " the war ninopence," some of
the less prominent details of the Budget appear
likely to escape that attention which they deserve.
However subordinate the latter may be deemed by
those who are not intimately acquainted with the
wide circle of interests touched by every point of
our commercial operations, they aro of prominent
importance to a large portion of the trading corn-
►nunity, and cannot be ignored in the calculations
of any impartial and intelligent observer.
There is at least one proposition in the Budget,
which is not only indefensible in itself, but which
involves a breach of faith on the part of the
legislature. Provision had been made by the !ate
Chancellor of the Exchequer, for the gradual
reduction of the duty on Tea to Is. per lb. ;
and this arrangement was accepted by his succes
sor in office. An addition of 3d. per lb. was made
to the intermediate rate of is. 6d., as a contingent
towards the expenses of the late war.

Such a special augmentation of a tax already
disproportioned to the intrinsic value of the article
could scarcely be defended on any recognised
principle of taxation. But the money was stinted ;
the circumstances of the case admitted of no pro•
tracted discussion; and the Chancellor of the
Exchequer obtained all that he asked for. Accord-
ing to the preceding arrangement, the duty would
have been reduced to Is 3d. per lb. on the 6th of
April next ; and, on the confident anticipation of
such reduction, the calculations of dealers, as well
as of merchants,thoth here and in China, were
based. A reduction of 6d.- per lb. in the price of
tea must necessarily induce an augmented consump-
tion, and require a proportionate supply. Consi-
derable engagements have, as it appears, been
entered into for the delivery of teas under the
reduced duty of Is. 3d. In order, however, to
obviate the possibility of any misconception, some
parties connected with the trade applied a short
time since, to the proper authorities, to ascer-
tain the day on which the reduced duty
of is 3d would be receivable. .The reply fi om the
Secretary of the Commissioners of her )Majesty's
Cusioms assured them that this would be the 6th
of April' next. This official communication was
published throughout the country, and accepted
as most satisfactorily conclusive.
To the utter surprise and disappointment of all
parties connected with the trade, it is now proposed
that no such reduction shall take place, and that
even the 3d per lb. surcharged upon the article,
for the temporary exigencies of the war, shall not
be entirely removed, the duty proposed for the
ensuing year being is 7d instead of Is 6d, as it was
previous to the last budget. The value of Sir G.
C. Lewis's promise of a future and gradual reduc-
tion may be fairly estimated by the measure of his
adherence to the arrangements of his predecessor.
The responsibilities of existing contracts cannot be
discharged by any amount of Parliametary post
obits ; and the mirage of a low duty coming at three
years' distance, is a piece of rhetorical artifice
unworthy of a practical man of business.
The proposed reduction of 2d per lb. will be to
its whole extent, a loss to the revenue ; without
affording,ou the other hand any gain to the public
at large—no one can dream of an extended con-
sumption, based upon such an infinitesimal abate-
ment of price : especially when it is borne in mind,
that a very large proportion of tea is sold in single
ounces. Here and there, the dealers would get the
benefit of the reduction. As a body, however,
they will not be satisfied with such a bribe. They
know that their interest lies in the direction of an
augmented consumption—which these petty expedi.
ents of finance will altogether fail to secure.
As it has been suggested by some persons that
the outbreak of hostilities at Canton may limit the
supply of tqa to this country, so as to deprive
the public of the advantages anticipated from a
low rate of duty, it is proper to observe that the
accumulated stocks of tea, in addition to the large
supplies now on the way, are sufficient to remove
all ground for apprehension of scarcity ; even were
the existing disturbances protracted beyond the
utmost limits of present probability.—Your's
respectfully, A MERCHANT.

THE TEA DUTIES AND TILE BUDGET.

Messrs. Eagleton and Co., of Newgate street,
London, has forwarded to a London cotemporary
the following communication :
Based upon the law regarding the reduction of duties upon
tea and sugar, important transactions in these articles have
been entered into, consequently faith will be broken with those
who trade in them if the Chancellor's proposals be carried out,
Why should this class of the community be wade to suffer for
the vacillation of a government? It should be remembered
that the question as regards the duty on tea was put by importers
and dealers to the Board of Trade, and the reply was. uncon-
ditionally, that it would be reduced to Is. 3d. per pound
in April, 1857, and to Is. per pound in April, 1858
Since then the Chancellor of the Exchequer has repeated
his declaratien that the reduction would be made upon
mote than one occasion in conference with the deputation who
waited upon him for the purpose of advocating the reduction of
the income tax ; surely this was sufficient to influence the
operations of those who are importers of and dealers in the
article, and therefore it is a most complete breach of faith to
alter the existing law. Had the Board of Trade declined to
reply, or even answered the question conditionally or had the
Chancellor of the Exchequer been mute upon the question
of reduction of indirect taxation, the operations in tea and
sugar, upon which duties were to be reduced, might be
called speculative, but based. as they were upon the triple
assurance of the Government, they can only be denominated
as prudent. Again we ask why should this one branch of
commerce (for in most cases from the merchant to the
dealer they are interested in both tea and sugar) be made
the victim of clamour, and the working classes who are not
benefited by t!le reduction of the income tax be shut out
from the benefit which would decidedly accrue to them
from the reduction of duty upon articles of which they are such
large consumers. The reductions proposed are pusillanimous
and futile.

SPORTING INTELLIGENCE.

TATTERSALL'S.—YESTE RDA Y.
LINCOLN HANDICAP.
6 to 1 agst British Remedy
10 ... 1 ... Lady Malcolm

LIVERPOOL STEEPLECHASE.
8 to 1 agst Minos (taken)
11 1.. Hopeless Star (taken)
100 .. 8 Omar Paella (taken)
100 .. 6... Weathercock (taken)
20 .. 1 Jean de Quesne (taken freely)
20 ... 1 .. Little Charley (taken)
30 1 ... Escape
TWO THOUSAND GUINEAS,
5 to 1 agst Loyala (taken)
1 .. fiambourne (taken)
8 1 , Vededet (taken)
15 .. 1 . Sydney (offered)
METROPOLITAN STAKES.
10 to 1 agst Madame Rachael

CHESTER CUP.
12 to 1 agst Leamington (taken) -
25 .. 1 .. Claret
30 1 ... Roger Thorpe
50 1 Yellow Jack
1000 , .15 ... Alice
1000 _l5 .. Cotswold

DERBY.
18 to 1 agst Zavder Zee (taken)
25 1 Sydney (offered)
30 .. 1 ... Kent (taken)
40 1 ... Lambourne (taken)
40 1 ... Ackworth
1000 . ,15 Henry VIII. (taken)

Arrival for the week ending Feb. 25, last year, 2,394
casks, and delivery 1,193 casks. The arrival last week
comprised 467 casks from Russia ; 322 from Australia ;
214 from South America; and 4-6 from other places—
Total, .1,489 casks.