The National Register.
London, England, 1817-07-14 00:00:00

FINANCE.

Mr. TIERNEY rose to submit to the House!his Resolutions:, and
the first thing be should do would be to withdraw his first Resolution,
in which there was a mistake arising from his not having been aware,
that the Irish Bills had been paid off by a grant of Exchequer Bills
in the present Session. The total Supply of the year in the 'Votes was
64,535,(X101. ; on the Ways and 'Means there was 6e51ti2,0001., leav-
ing a deficiency of tfi‘oool. Now he wished to know how teat de-
ficiency was to be made good. Besides this there was a farther de-
ficiency of 187,0001. and there he found he was sure a mistake in the
calculation of the Right lion. Gentleman. 'raking the unfunded
Debt at 66 million, as the Might Hon. Gentleman opposite did ; and
following his system, there would still remain 26 millions of unfund-
ed Debt to be added next year. Ile then went on is state several dif-
ferent items, and to draw a comparison between what wtwild be ad-
ded to, and what paid off from, the unfunded Debt during the pre-
sent year. He observed, his present Resolutions were intended to
make the state of the funded, the unfunded Debt, and the Ways and
Means of the year dear. The lion. Gentlemen looking at the bud-
get, would at first view be led to believe that there would be paid off
from the Navy Debt a sum of 1.66140001. lie was desirous to sec
how this really natal. We had this year taken 2,523,0001. arrear of
Property Tax of this year. This was a produce which could never re-
cur again ; and assuming this year's income to be the same as the last,
there would be an excess upon the Consolidated Fund of 3,521,0001.
De had no object in his rmsent enquiry than to discover the true
state of our Finances, and if he was guilty of any mistake, he should
be happy to be set right. The Right lion. Gentleman opposite repeat-
edly said we should now, as we did after the American war, quickly
recover our prosperity. But the ease was widely different now. At
the end of the American war we lost nothing, but our distresses, On
the conclusion the late war we had hot all our prosperity. He (Mr.
T.) always said, when we lost this war, we should loose our taxes ; he
laid always stood alone in this opinion, with the exaption of a Right
lion. tientleman opposite, for whose opinion on these subjects he
entettainial the highest respect (Mr. Rose). The Right lion. Gent.
then pioeeedtd to comment on the state of the Sinking Fund, and
made a comparison between the different quarters in the last year
and in the present, and from that comparison drew this conclusion,
namely that for the quarter ending July Stli, there would be a defi-
ciency of at least 5,740,0001. With respect to our present revenue it
would not pay the interest of the National Debt. He would not say
the National Debt was in jeopardy, buts still it was a black prospect.
Money must be borrowed to supply the deficiency, yet the House was
about to separate without making any provision to meet the difficul-
ty. lie trusted, even if his Resolutions should be negatived, that he
had done some good, by drawing forth the Resolutions of the Hon.
Gentlemen opposite. Their Resdutions differed only to the amount
of a few hundred thousands, whilst the acknowledged deficiency
amounted to many millions. He thought the country never was in a
snore critical situation. With respect to the plan of the Right Hon.
Goldman Mr raising the money he wanted by an issue of I%i:do:quer
Hills, he did not intend to find fault with it. Ile understood it was
the system of the Right lion. Gentleman not to IA Exelieqi:r Bills
go under a certain premitun, being certain at any bole of getting them

Trn NATIONAL REGISTER•

disposed of at the Bank. This might be a convenient plan for the
present, but would it not ultimately put the Right Hon. Gentleman
still more at the mercy of the Bank than he at-present was; and if
the Berle were, as the Right Hun. Gentleman had stated, to
resume their cash payments at the period named, would they be
able to excist the Right Honourable Gentleman in his distress next
year, by taking anothersix million of Exchequer Bills off his Mende
Mr. Tierney then adverted to the rising of the Funds, which had
been dwelt on so much by Government, as being a proof of the pros-
perity of the country. lie was of opinion it was a proof of the direct
contrary. 'llse rise of the Funds was owing, in part. to the distresses
and difficulties of the country, and to the large capital unemploeed.—
Every Banker now (to use a City term) was a Bull, and contributed
to rase the price of the Funds, by speculating in tbuni. If, fortu-
nately, trade should revive, what would then be the consequence?
These persons iner sell out largely, lee the price of the Funds be
what it might, and at any loss, as they would have no other
means of realizing property to answer the demands made upon them.
Al this apparent prosperity, as
'judged of by the high price of the
Funds, was not to be relied on. If the Revenue could not be raised,
end raised considerably, in his opinion the country was in a greater
strait than it had ever beta before. The Chancellor of the Exchequer
had said he should raise the Funds to ench a height, that he should be
enabled to reducer the 5 per Cents. ; but then we should add 24 mil-
lions of Exchequer Bills to our unfunded Debt This extraordinary
rise in the Funds also acted much against the operation of the Sink-
ing Fund, whilst it would not at all operate to relieve the People
from taxation ; and who could for an instant, Ratter himself that
commerce would revive whilst the country was ill burthened The
Right Ilan. Gentleman said he should conclude by noting to with-
draw his original Resolutions, for the purpose et: substituting sense
revised ones in their place.
Mr. GRANT Lit himself obliged to resist these resolutions, which
he eonceived might be divided under two heads, one applying to the
unfunded Dent, the other to the Revenue. The 'AMC/111MM wh'eli
lie had to propose, related only to the unfunded Debt, 'indite pro-
table increese :end diniinunition. The 'tight Honourable Gentleman
had stated the deficiency at 66,000.0n01. whilst he (Mr. G.) said it
would amount to no snore than 64.000,0001. The Right H en-
ourable Gentleman said, there would this year bean increase of debt
of I,Es 1.4,00(il. whilst he (Mr. G) on the contrary said, there would
be a diminution of I,2oeexiol. 'there was indeed a correction in the
Right Honourable Geneeman'e each-news of at least 4,000,0001.
The Right Honourable Gentleman had also argued the probability
of a deficiency in the Ways and Means that was extremely unlikely,
since almost all the Ways and 3leens were already realised. He tken
entered into a statement of the Supplies rind Exchequer Bills voted
mid the Ways and Means to meet them. The amount of Exclie-
suer Bilk as taken in his statement was felkeelexil. but probably
in January next the sum would not actually exceed 61 or 62 millions.
The Ways mid' Means were nearly equal to the Supply voted,. and
when the Ways and Means were issued, the Supply of course would
lie provided for. Mr. Grant then proceeded to contend, that in the
Right Honourable Gentleman's Resolutions there were several
errors : and particularly in the omision of 1,600,n5e) paid of of the
outstanding Navy Debt. The peat question now under consider-
ation was the increasing and paying rift the Debt, and the diminution
made in it should be attended to. If there was any merit in his (Mr.
il;. Grant's) Resolutions, it was that they hail for their foundation
facts and not conjecture, whilst the Right I lononrable Gentleman's
was objectionable, inasmuch as they were founded on supposition.
The Right Honourable Gentleman had also raid the revenue, would
this year receive dieted of 2,901,0001. Property Tax, and extra-
ordinary source of revenue, which would not occur again ; but if
there was this extraordinary receipt, their was alto an extraonlinary
expenditure, which would not occur again. This year the expendi-
ture would be 19,000,0001. Next year ha trusted it would not ex-
ceed 1 eeioo,noole This reduction might be set off against the ex-
traordinary receipt of the present year. The Honourable Gentleman,
after sonic further observations, concluded by moving the previous
question.
Mr. TIERNEY denied his Resolutions were all supposition. lie
stated the Revenue of last year; then said, if the Revenue was the
stone this year, !etch mid such would be the consequence ; this was
a fact. The Honourable Gentleman thee entered into some ex-
planations, but in so law a tone, see coufd nut clearly understandwhat
he said. He contended, however,that the statement of the lonourable
Gentleman, (Mr. Grant) as to the amount of Exchequer Bills likely
to be out-standing on the sub of January lag, was erroneous to the
amount of 1,200,p001.
Mr. VANSITTAIT said, this could not be; if the whole of the
Ways and Means were granted, the whole of the Supplies must be
paid off It was well known that the system of peymg off Excise.
Biter Bills was to pay oft those granted in the previous year. Such
had been the eagerness of monied men during the present year, that
all the Bills of last year up to October had been bought up ; and it
was rather to be feared, that there would be a scarcity of 'exchequer
Bills, instead of a difficulty in disposing of them. He believed this
country. notwithstanding our present embarrassments, was still ca-
pable of snaking great exertions. He trusted, however, it would be
long before they were called for ; when they was, be was convinced
our efforts would be made for the good of the world in general, and
not for a selfish purposes of our own.—Hear, Hear
Sir. H. PARNELL said, the Right Honourable Gentleman had
talked of the prosperous state of the country, yet in the second ye .r
of peace he had proposed and carried a war expenditure. The 'light
Honourable Gentleman had talked of vigorous measures of finance.
This measure meant vigour of taxation, whereas it ought to mean vi-
our of economy. Ile trusted the House and the country would oblige
the Right Honourable Geatleansai, to adopt the vigour of economy
before It was too late.
Mr. BAR 'NG approved of the system adopted by the Chancellor of
the Exchequer; at the same time he considered the country as
greatly indebted to hie Right Honourable Friend (Tierney) for
bringing forward his Resolutions, and thus calling forth those of
the Honourable Gentleman opposite.
The previous question wee then put upon the Resolutions of Mr.
Tierney, which was carried, anti the liesoiutions of the flououreble
Member (Mr. Grant) were agreed to.
Sir S. Roemer moved for a copy of the Presentments of the
Grand Jury of Dominica.
The motion led to some cor.versation between Mr. W. Smith,
(;en. Mitchell, Mr. Rose, 'and Sir S. Remaly, after which the
motion was agreed to.—Adjourned.