The Sun.
London, England, 1852-12-04 00:00:00

ions necessary for the protection of the revenue. I
will not say anything about the use of molasses
in breweries, or the reduction of the duty on rum,
for the same reason which induced me not to enter
into discussion respecting stamps or charterparties
and marine insurances. They are not questions of pecu-
liar burdens, but enter into the consideration of the
means by which the general revenue of the country shall
raised ; and this is not the moment to make any ob-
ervations on that point. There is one other subject
hich it is necessary for me to touch upon before enter-
ng into the consideration of the general question—l al-
ude to the local taxation of the country. (Hear.) It
is quite unnecessary for me to enter into any of those ar-
guments with which we, all of us, are familiar as to the
character of our local taxation. It is quite .unnecessary
for the any longer to enter into arguments to show that
there are objects of universal interest to this country
which are, in fact, sustained by taxation imposed, not on
the general property of the country, but on a portion of
that property only. (Hear, hear.) The whole question
has been met so ingeniously by one who, though opposed
to the policy I sometimes recommended, is a master of
the subject—l mean Mr. Cornewall Lewis—that lam
perfectly willing, as far as any reasoning on the subject
is concerned, to rest it ,on the evidence given by
that gentleman before a committee of the House
of Lords on the subject of local taxation, and sub-
sequently revised and printed by him in a pamphlet
when in office, and, of course, with the sanction of
the Government to which he belonged. As far as prin-
ciple is concerned, there can no longer be any con-
test upon this point. Take the case of the tax for the
support of the poor. Is there, in the world, an obliga-
tion so generally binding as that of supporting the poor ?
Yet, it cannot be denied that the poor are not supported
by the general property of the country. (Hear.) It is
unnecessary, therefore, for me to enter into any discus-
sion upon the subject. Some years ago the real property
of the country—namely, the agricultural portion—being
suffering under great distress, was extremely sensible of
the great injustice of being called on to pay exclusively
local rates for universal obligation, and the agricultural
interest naturally called the attention of Parliament to
the incidence of this unequal taxation. After the divi-
sions which took place in this house, and the progress of
opinion on the subject, I think I may assume that we
shall have no dispute upon principle, and we have now to
consider what course we shall take with respect to taxa-
tion which is mainly levied for purposes of general obliga-
tion, but is not levied on the whole community. The local
taxation of the country is a subject with which the
house is so familiar, that I saall be able to treat it
more succincly than I probably should have been
able to do a 'short time back. This local taxation
resolves itself into three principal rates. The highway-
rate has been discussed in this house chiefly with refer-
ence to its improved administration. The county-rate,
though not very considerable in amount, has excited pub-
lic interest from the attempts which have been made to
establish the representative principle in connexion with
its management. The third great rate, which has long
engaged public attention, is the poor-rate. I will not say
anything on the subject of the highway rate. Six bills
have been brought into Parliament, with the view of
establishing a better administration of the highway-rates,
and it was my intention not even to have adverted to
the subject, were it not that my hon. friend, the Under
Secretary for the Home Department, who presided with
singular ability and unwearied industry over the commit-
tee on turnpike trusts, and who on several occasions has,
as the house has recognised, proved himself to be a master
of the subject —has, though having quite enough to do
in his own office, been kind enough to assist me in the pre-
paration of a bill on the subject of highway-rates. I
hope that this bill will, after six experiments, win the
confidence of the house and the country, and have a
beneficial effect, both administiatively and financially,
on the districts affected by the highway-rate. The county
rate, although the smallest of the three, has, from the
peculiar circumstances to which I have already adverted,
excited a good deal of interest in this house. With re-
spect to the administration of this rate I will state gene-
rally, on the part of the Government, that we have not
the slightest objection to the representative system being
carried into any portion of the management of the affairs
of this country into which it can be introduced with
advantage to the general interests of the community.
(Cheers.) I therefore see no reason to object, at the
first blush of the thing, to the proposition that the rate-
payers should be introduced into the immediate manage-
ment of the fund produced by the county-rate. At the
same time, I must observe that the fund is a small one,
and that it comprises some important items of expendi-
which certainly ought not to be too much under the
control of popular assemblies,--I allude to the expendi-
ture on account of gaols and lunatic asylums. (Hear,
hear.) The gaols and lunatic asylums have hitherto
been under the superintendence of the magistrates, and
it is admitted that those gentlemen have, on the
whole, discharged their duties in a satisfactory manner,
though, speaking a priori, it might be objected that the
control of establishments of this kind ought not to he
vested entirely in them. It cannot, I think, be doubted
that the prisons of this country ought to be very much,
if not entirely, under the control of the executive Govern-
ment. (Hear.) I think the time is approaching—and it
may be rapidly—when we shall have to consider the
whole question of punishnients as one of the most press-
ing questions of the day—(hear, hear)—and an occasion
will perhaps arise when the Government may feel that
they ought to act with more directness and decision with
respect to the management of gaols than the house would
now be prepared to sanction. However, at present, tak-
ing a limited view of the local taxation, let us see what
burden it imposes on that portion of the property of the
country which has suffered most by recent legislation ;
and if we be of opinion that that burden is unjust, let us
consider what remedy we can apply to the case. In the
first place, let me remind the house that the incidence of
the country-rate on the property of the country is ex-
tremely slight. The rate amounts to 800,0001., subject
to a deduction on account of contributions from the con-
solidated fund and other sources, to the extent of
200,000/. Taking this deduction into account, the rate
amounts to 3d. in the pound on the property assessed.
Admitting the incidence of the-bounty rate to be unjust,
what can we do that will produce any sensible effect ?
If we should throw half of the amount of the rate on
the consolidated fund, it would relieve the ratepayer to
the extent of three-halfpence in the pound ; but, at the
same time, it would enter into an undertaking of such an
amount as would sensibly embarrass us in dealing with
the general taxation of the country. There are many
taxes that do not produce more than 400,000/. a-year,
and-yet are extremely injurious to the community, and
injurious, of course, as a consequence, to the great body
of the agricultural community. I say, then, frankly,
as far as the county-rate is concerned, that lam not
prepared to recommend any change in that portion of the
local taxation. (Sensation, andsome interruption caused
by conversation among hon. members.) I must remind
hon. gentlemen that they were so kind as to inti-
mate that they would
not decide up(ohnearml pro-
posal until it was altogether before them—
and that they would let me state my case. (Cheaeerrs)—.)
Now, sir, I come to the consideration of the poor rates.
I do not in any way change' my opinion that the abso-
lute incidence of all local taxation is perfectly indefen-
sible in point of principle ; but, looking to that which is
most expedient for the ceuntry generally, and most ex-
pedient for that class which I think may be injuriously
affected by the present arrangement--taking that view
of the case, I will now for a moment examine the poor
rates. We must, sir, remember, in the first place, that
a very great change has taken place in the burden of the
poor rate since, at the commencement of 1849, I first
brought under the consideration of the house the inci-
dence of our local taxation; and especially and mainly of
the poor rate, upon realized property, and particularly
upon that portion of realised property which was pecu
liarly subjected to this tax. Between the last official
return describing the amount levied for the main-
tenance of the poor, which was on the table when I ad-
dressed the house on that subject in 1849, and the last
official return which is now on the table of the house,
there is a difference of nearly 25 per cent. (Hear, hear.)
When I look into the expediency of the course I am to
take, that is a most important consideration. There is
no proposition I ever brought forward—at least, there is
no- practical proposition I ever brought forward with
any chance of its being carried—(the right hon. gen-
tleman was here interrupted, by some derisive laughter
from the Opposition benches)—l mean a proposition
which had any chance of being carried—a proposition
supported by a large party in this house, because a pro-
position that is not supported by a large party in the
house is not one that has any chance of its being carried ;
but there is no proposition I ever brought forward with
respect to the establishment which, if it had been carried,
would have effected so great a relief as the gradual
diminution of the poor-rates. (Hear, hear.) Now
take, for example, the establishment charges. The
establishment charges for the salaries of officers con-
nected with the administration of the poor are
something like 430,000/. a year. Well, since 1848-49,
Zan"pi the last return upon the table was made, you have
Youraverage, on an a, diminutionegual to the amount of
establishmeiitcharges. Te return of the expen-
diture for the relief and maintenance of the poor, which
was not
it: to
table when I addressed the house in 1849
—and return for 1849, but for 1848—(hear, hear)
ment, and the of course, the basis of my general argu-
this subject. ,pgin of the feeling in the country on
amount expeadeT_camount was 6,180,000/. Now, the
year ri; the relief and maintenance of the
poor in the
the table of the houss,l—according to the last return on
which I shall refe; thougho I have a more recent one,
(3,180,000/., was 4,962,olpsequently—instead of being
Opposition.) I am afraaut(Loud cheers from the
on account of the diminution tohfa fauperism. (Laughter
t is really not a cheer
from the Ministerial benches.
a cheer for recent legislation.
(a 1Z
am afraid it is
Laoughter, and some
cheering from the Opposition.)
..4r, I don't want
to disturb "recent legislation"—
your cheer is a very illogical one--. 1
lauatehear)—but
must show you—what I should not otherwise liara)—
veaclid I
because I don't want to raise any controversy :d
em'
subject—that-recent legislation may not have had at
thing to do with this result. (Hear, from the MinisteriYal
side.) Now you (addressing the Opposition) think recent
legislation 'is the cause of the poor-rates in 1851, having
been under 5,000,0001., and upon that you cheered, but
then it so happens that in 1846 the rates were rather
less. (Laughter from the Ministerial side. Mr. BRIGHT
" Wit
h the same price of corn ?" followed by cheers and
laughter from the Opposition.) I think, though I don't
want to do it, I could produce some returns of the prices of
corn which would shwhat the fact—one return,
for instance h-
. ce, w ow was
which, when I quoted it, the late Sir R. Peel
said ought never to have been printed , • but there are
greater subjects for us to consider than the triumph of
obsolete opinions. (Laughter from the Opposition.), ition )
jlooked upon one-sided free trade as an obsolete opinion,
ust as you look upon protection, d amlost the
great principle of the day--that ' and I in
unrestedcompeti-
tion. (Laughter and cheers.) Now, I must put these
'ets before the house, because they are very

I have shown you that there has been a diminution of
poor-rates from 1848 to 1851 of nearly 25 per cent.—a
very important point for me to consider as regards the
expediency of dealing with those rates • but, though
there has been, from 1848 to 1851, a CliminutiOn of
nearly 400,0001. a year in the poor-rates, I have here'
the return for 1852 ; and I am sorry to say that that
rate of dimintition has not only ceased, but that very
little diminution has taken place. (Hear, hear.) The
returns of the Poor-law Board, which I have in my
hand, are very contradictory to the popular opinions
that are held, and it is of the utmost importance that
we should have correct ideas upon this subject,
not only with reference to the condition of the
people, but also with reference to that important
question which is agitating the public mind—namely,
as to the influence of emigration upon the consuming
power of the country. One would suppose, from what
we are told, and from what we read every day, that an
able-bodied pauper was not in existence, and that a
time has arrived in which the common business of the
country cannot be carried on. Now the fact is, +1
in that wonderful period of 1851-52, in
we heard all these stories, and when I, for one, was
prepared to see certainly an equal diminution of pau-
perism in the country, there has been no such result.
The amount of the rates for 1851 was 4,962,0001.,
and for 1852, 4,894,000/. ; and I find, from the return
for the half-year ending in Michaelmas, 1852, that the
amount -is 2,432,0001, which being doubled would give
4,864,000/. for the year.; but you must remember that
the half-year ending at. Michaelmas is the mild half-
year, and, therefore, I do not' think we can believe
that any sensible reduction of the pauperism of the
country ought to be relied on. I confess myself, not-
withstanding this return, I believe that the country
is in a most prosperous state, and I will not
relinquish the belief that pauperism will yet be sensibly
diminished ; but it is my duty to place these facts before
the house. Still the great fact remains that the charge for
pauperism in this country upon realised property, and es-
pecially upon the agricultural interest, has been reduced
by the amount of 25 per cent. since I first drew the at-
tention of the house to the subject—(hear, hear)—and
there is no doubt, notwithstanding the somewhat dis-
appointing return I have just placed before the house,
that there are circumstances in operation at this mo-
ment which, if human judgment can lead us with any
advantage, must considerably affect the amount of pau-
perism in this country. I have no doubt the counteract-
ing causes that, for a moment, have arrested the rapid
diminution of the rates might be discovered, but I my-
self still believe there are circumstances and causes in
operation that will progressively, and even materially,
diminish the pauperism of the country. Well, then, sir, I
have to consider, under these circumstances, whether
it will be expedient to deal with the sum that is raised
by local taxation for the maintenance of the poor. I
have to recollect that, since I brought this subject for-
ward, there has been such a diminution that four times
the establishment charges of the board have been saved
to the realised property of the country. (Hear, hear.)
I have to recollect, also, with regard to that peculiar
portion of the realised property of the country whose
claim I urged, that since the period of 1849 the relative
proportion between that property and the other realised
property of the country has undergone a change, and
that from both these causes the incidence of this taxation
is less severe. Thirdly, Ido believe that all the influences
in operation, notwithstanding the return I have quoted
to the house, tend to the diminution, and the consider-
able diminution, of that burden. (Hear, hear.) Well,
sir, as my means are limited—looking, as have anxiously
looked, for means by which I might assist every suffering
class every class which I think has a fair claim to the
consideration of the house, in a manner which would con-
tribute to the general welfare of the community—believ-
ing that the measures which, on the part of my col-
leagues, I am about to propose to-night have that ten-
dency, and that they will greatly assist those who, I
think, have been subjected to a very severe trial, and
who, in this respect, I conceive, are liable to a taxation
which, on principle, cannot be defended,—l am not pre-
pared to recommend any change whatever in the present
system of raising the local taxation of the country.
(This announcement was followed by loud cheers from
the Opposition benches, and the right hon. gentleman
having paused for a few moments, a very animated con-
versation was carried on in the interval by hon. mem-
heirs on both sides of the house.) I have now, Sir,
(the Chancellor of the Exchequer, continued), considered
three instances of peculiar interests that have, in my
()Onion, suffered by recent legislation. I have placed
before the house the general views of her Majesty's Go-
vernment with respect to those interests. I have offered,
with regard to the shipping interest, measures which, as
far as lcould judge of the feeling of the house, were, I
think, considered moderate but satisfactory. (Hear from
the Opposition.) I mean moderate so far in their concep-
tion that they have not been framed with an ad captan-
dant purpose ; satisfactory, because I believe this house
and the country will take them as a final settlement of
that controversy. I have endeavoured on the part of
the Government to view the claims of the sugar colonies
in, a just and fair spirit. lam sure that those who are
connected with that interest must be satisfied that it
would be quite impossible to propose a differential duty
—i(cheers from the Opposition)—that that claim could
only have been urged by those who were not masters of
the facts ; and they must see, from the course taken on
thp part of the Government as to encouraging emigra-
tiOn to the colonies, and permitting them to carry on the
manufacturing processes without the restrictions which
before existed—a boon which has been described to me
by an eminent member of the West India body as equal
itself to a differential duty of 18d., they must feel, when
the Government have taken upon themselves the respon-
sibility, for it is a grave responsibility, of recommending
that step, besides others to which I shall have to advert,
that there has been an anxious desire on our part to
place them in as good a position as present circumstances
and the temper of the public mind would per-
mit. I believe, Sir, that the measures we have re-
conimended with respect to the West India body will
sensibly improve the condition of that interest. I shall
not touch any further upon the subject of local taxation.
I now approach the more important topic of viewing the
taxation of this country under the new circumstances in
which all parties and conditions of men have now agreed
to be placed. So long as there were two great parties
in this country who questioned the principle upon which
your commercial code ought to be established, it was
impossible to attain any general adhesion to the prin-
ciple upon which your financial policy ought to be
constructed. As long as a man thought that his
industry ought to be protected he was prepared to
endure a heavy burden of taxation. As long as a
man thought that his industry should be free from all
restriction, of course he demurred against the system
which imposed restriction upon the financial arrange-
ments of the country, and raised the prices of the arti-
cles which he consumed. But from what has occurred
it is obvious, generally speaking, that unrestricted com-
petition is not consistent with unrestricted industry, and
in a word, if you decree that the community are to re-
ceive low prices, your policy ought to be one which will
put an end as soon as possible to high taxes. (Hear,
hear.) Well, Sir, after the general election, and after
the solemn verdict of the country, I had to consider the
general system of our taxation, and to apply it to the
principle of unrestricted competition. I had to ask my-
self what were the measures which it was best to recom-
t men to Parliament. Now that this principle is formally
and definitively established, what were the measures
most consistent with that principle, and which would
enable the community to encounter that competition which
it must now, in every form and in every sense, be pre-
pared to meet ? Well, Sir, when I took that subject
into consideration, giving it the utmost thought I could
command, it appeared to me that we must arrive inevi-
tably at this result,—that you will best enable the people
to engage in that competition to which they are now
for ever
evesrudsteasintinsetdhebir lives. by cheapening enrifeaars much aseers)
possible
lotoht
which
therefore, to articles that are of prime necessity—(loud
cheers from the Opposition benches),—and if I find that
those articles of prime necessity are subjected to some
of the heaviest takes in our tariff, then I say that these
are arrangements inconsistent with the new system we
have established, and the new principles of which we
have approved. It is the boast of honourable gentle-
men opposite that they have given cheap bread to
the community, but the principles upon which you
have given cheap bread to the community are prin-
ciples which ought to make you cheapen the sustenance
of the community in every form—(cheering from the
Opposition benches),—and I think I shall be able to
show to the house, that if they adopt that principle
of finance, they will, in a legitimate manner, with-
out going out of their way, and without any arti-
ficial means, be giving the greatest possible impulse
to every branch of the industry of the country, and espe-
cially to those very branches that have most suffered by
recent legislation. (Cheers.) The house, therefore,
will not be astonished that her Majesty's Government
are prepared to recommend Parliament to deal with the
malt tux. (Loud cheers.) Here is a prime necessity of
life subject to a very high tax, and a very high tax levied
under circumstances which greatly restrict industry.
(Hear, hear.) lam not called upon to recommend the
change I am about to propose to the house to hon. gen-
tlemen opposite on any other plea than that which they
have always declared to be sovereign plea—namely, the
benefit of the consumer. Hon. gentlemen opposite have
sometimes told friends of mine, when they, have pro-
posed dealing with the malt tax as a means of assisting
the agricultural interest, that it was only a con-
sumer's tax—(hear, hear)—but I am sure hon. gentle-
men opposite will not oppose the plan of the Govern-
ment on that plea—(cheers .from the Ministerial
benches)—that they will not get up, and tell me I

whicl

am about to proiose a change in the law which wit
only benefit the consumer. (Cheers and laughter.'
It can hardly be the effect of the dissolution of Parlia:

ment, it will hardly be the effect of the triumph of un-
restricted competition, that I am to be told by hon.
gentlemen opposite, on the first occasion when I pro-
pose the remission of a tax, that it can only benefit the
consumer. On the contrary, I give hon. gentlemen
opposite credit for the consistent and sincere conviction
that the interest of the consumer is the interest which
We ought first to consider. I have never disguised my
whichn
opinions on this subject. I have always told my friends
thatat though it was certainly the interest of the consumer
Chit malt tax should be dealt with, still it was my
tfhat" there was no tax with which we could deal
I hope hon.
rnroperly dealt with, would more benefit the
nervianti°cnlo4se eonnectio
agricultU interest. '(Cheers from the Ministerial side.)
gentlemen opposite will not grudge me a few
lo)bees
question of the malrteptaeax:h
those with whom I have so long
as
alstsua,mpepdmarsttootamllye
different
trethnet
gßrejautstly of
aspect since the.
of the corn laws. I know
it was said by one who wa
great authority in
this house—one of very
oriity with me—that
the :moment you repealed and coarniltrts the repeal of the
malt tax was inevitable ; , ter,
h6nk there will be
t difficulty in demonst t'
no
gi -ea va ing the soundness of
that .opinion. But it is quite clear, ~,,,%en Ministers
of

State take every opportunity of informing the cultivator
of the soil that he must grow as little wheat as,possible,
that the difficulty of maintaining the policy of a law
which restricts the production of the next generous grain
is proportionately increased. There is no doubt, when
the tendency of your recent legislation is to diminish the
production of wheat, and, in fact, to limit its pro-
duction to those soils which are eminently and na-
turally qualified for it, that the tendency of your legis-
lation should be, if not to encourage those produc-
tions which would be natural to the soil, now that
wheat is to be relinquished, at least not , to main-
tain laws which would discourage the production of
them. (Hear.) Even as regards wheat, it is impos-
sible that any legislative means can be devised which
would more tend to the encouragement and support of
the wheat land than in fact, diverting those soils that
were improperly employed in the cultivation of wheat
back to their original purpose. The more you produce
barley upon the soils qualified to produce barley, the
more you are improving the market for the production
of those soils eminently qualified to give us wheat ; and
the indirect influence of any change in the malt-tax upon
the production of wheat will be, in my opinion, very
considerable. (Hear, hear.) Well, sir, we now have to
consider, in the first place, how we shall deal with this
tax, in what manner and to what degree. If we deal
with it in a small manner, we shall probably accomplish
none of those objects to which I have alluded. (Cheers.)
The consumer will not be benefited—the cultivator of
the soil will not be benefited—you'll neither have cheap
beer, nor will you have a freer cultivation of the
land of the country. (Hear, hear.) What you want is.
that you shall have as much as possible unrestricted
industry, and its consequences, as far as the cultivator
of the soil is concerned, and that one of the consequences
of that unrestricted industry should be that the con-
sumer should enabled to procure one of the main causes
of his expenditure, and one of the principal sources of
his health and strength, supplied to him at a reduced
price. Those are the objects we wish to attain, and
they appear to us to be objects which cannot be attained
if we deal in a small manner with this great subject.
(Cheers.) The existing duty upon malt is 2s. 7Ad. and
5 per cent. on the bushel. The consumption is increas-
ing. In 1849 it was 38,935,000 bushels; in 1850 it
was 40,744,000 ; and in 1851 it went a little back, and was
was 40,377,000 bushels. But, though increasing, there
is no article of counsumption which has less propor-
tionately increased, and the diminution of the con-
sumption of which can, I think, be more clearly
attributed to the large tax levied on it, and to the
restrictions which that tax occasions. (Hear, hear.)
I know there are gentlemen who have endea-
voured to maintain at times that the reason the con-
sumption of malt has not increased is, that the taste of the
country has been directed to other sources of sustenance
and excitement ; but I think I could show to the house,
by a reference to general statistics on these subjects, that
that is a position which cannot be maintained. Well,
sir, under these circumstances, her Majesty's Govern-
ment think it their duty to recommend to the house that
the reduction of the malt tax should be considerably
diminished—that we should diminish by one-half the
amount of the present duty on malt. (Hear, hear.) The
sum which we have to deal with, is a sum which exceeds
5,000,000/. as regards the revenue, and we propose that
we shall diminish the dtity exactly by one-half; we pro-
pose that there should be paid an uniform duty, of ls.
aid. and 5 per cent. per bushel upon barley, and also
upon bere and.bigg; we propose to terminate the difference
in the duty which has been injuriously and improperly
maintained between malt rais od from barley, and from bere
and bigg: and we propose also to do away with the draw-
back in Scotland upon spirits produced from malt. That
drawback has already been renounced by Ireland as
unnecessary. It was recommended by the commissioners
on excise inquiry as one which should be terminated
whenever any considerable reduction took place in the
duty upon malt ; and I think I shall have no difficulty
in showing to the house, when we come to points of de-
tail, that this is a change which ought no longer to be
postponed. (Hear, hear.) Now, allow me to read to the
house, the recommendation which was made, in the year
1831 I think, upon the subject of the malt duty, by a
distinguished member of this house, Sir Henry Parnell,
who was, I believe, at the head of the Royal Com-
mission to inquire into the Excise, and to whose la-
bours we are indebted for some of the most valuable
documents in our Parliamentary library. (Hear,
hear.) Now, these words are very interesting when we
remember the circumstances under which they were
written. Having entered into a general statement of the
grounds to show that the most effectual mode of sup-
pressing illicit malting would be by a reduction of the
duty on malt, he went on as follows :
" But if the importation of foreign barley be not per-
mitted, the tendency of a reduced duty to increase the con-
sumption of malt would be counteracted by the price of
British barley becoming higher in consequence of the new
demand for it, which would arise from the duty having
been lowered ; and thus the consequence of a reduction of
duty would be, not such an increased consumption of malt
as would keep-the revenue up to its present amount, but a
higher price of barley, and a certain loss of revenue.
As, therefore, there is no probability of a reduced duty
being followed by such an increased consumption of malt
as would prevent a loss of revenue, so long as the importa-
tion of foreign barley is restricted, we are of opinion that it
will be preferable to endeavour to check illicit malting by
the enforcement of kthe Excise laws, however inadequate
they may be to iproduce a complete remedy, rather than to
try the experiment of stopping it by a reduction of duty.
If there were no factitious cause for elevating the price of
barley, arising from the direct effect of a duty on foreign
barley, or from the indirect effect of duties on other kinds of
foreign corn, we should not feel any hesitation in saying that
the proper way of dealing with the malt duty would be to
reduce it one-half."
Those were the words of Sir Henry Parnell. Practically,
he said that, if your corn laws were repealed, he recom-
mended you to reduce your malt duty one-half—(hear,
hear)—that, too, is the opinion of a gentleman as tender
of the revenue as any gentleman who ever spoke in this
house. Those circumstances, which he possibly did not
contemplate, have occurred ; you have repealed your corn
laws, and I ask you now to sanction the recommendation
made by Sir Henry Parnell at that time. " For," says he :
Nothing, in our opinion, can be more unwise than to re-
duce duties on articles which aro fit subjects of taxation,
without at the same time taking care to secure the most abun-
dant supply that is possible to be secured of the materials
which arc necessary for their production."
Well, you have done that. The circumstances which he
anticipated have occurred ; and now I ask you to adopt
the measure which he recommended. (Hear, hear.)
Mr. CAYLEY—Is that the report of the commissioners
that you have quoted from ?
The CHANCELLOR of the EXCHEQUER—Yes ; the
report of the commissioners on the Excise Inquiry, of
which Sir H. Parnell was the chairman. The report of
the commissioners also recommended terminating the draw-
back on malt in Scotland. That is at present 8(1. per gal-
lon ; and, of course, if there were a reduction of the duty
by one-half, it would only be 4d. per gallon. But here is
the report of the committee on the Spirit Duties in Ire-
land :
" That it is the opinion of this committee that the repeal of
the malt drawback in Ireland will not be prejudicial either to
the trade in spirits, or to the revenue, in that country."
That was in 1842. In consequence of that, the drawback
in Ireland was terminated without a murmur. It has given
general satisfaction, and I am certain that the repeal of the
drawback in Scotland will prove equally successful. (Hear,
hear.) There are many points in the report of the commis-
sioners of Excise Inquiry as regards malt which are well
worthy of the consideration of the house. They particu-
larly dilate on the length of credit which is given in that
trade. They show the vicious principle on which that sys-
tem has been established, and they recommend that the
credit should be limited to the sameduration which applies
to all other excisable articles. I confess I am not prepared
to give unqualified adhesion to that recommendation. I
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o
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edatsen
of the commissioners in this respect. We pro-
pose, then, that on the 10th of October next the
malt duty shall be reduced one-half. We have fixed on that
period, of course, after due examination into the question
when the change could take place with the least incon-
venience to the trade, and, as we believe, with the most
general benefit to the community, and the 10th of October
is the day on which we have fixed. On that day we pro-
pose to take the stock on hand throughout the country,
and of course we shall guard those who are then possessors
of malt from the competition, as far as the one-half in the
amount of the duty is concerned to which they will be
subjected, and for that stock in hand they will receive a
drawback in proportion to the reduction of the duty. I
•
do not know that this is the convenient moment at which
I should attempt to place before the house the effect of
these changes upon the revenue. It will probably be
more convenient that at a subsequent part of my state-
ment I should place the effect of those changes before the
house. (Hear, hear.) I will, then, once more, merely re-
capitulate, for the sake of clearness, what the change is.
We propose to reduce the duty on malt one-half ; we pro-
pose that there shall be no difference between the duty on
malt raised from barley and from here and bigg. This will
occasion some accession to the revenue, though it is notfor
that object, but in order to simplify the subject as much as
possible, that I recommend it to the house. We propose
to put an end to the drawback allowed in Scotland on spirits
raised from malt; and we propose that the reduction shall
take place on the 10th of October next, on which day the
whole stock in hand throughout the country will be taken,
and 'a drawback allowed to the holders of that stock pro-
portionate in amount to the reduction of the duty. (Hear.)
Well, sir, following the principle which I have laid down,
that in the present state of affairs we should consider our
taxation mainly as it regards the great body of the con-
sumers, believing that that- policy will afford the most
legitimate, the surest, and the most efficient means of
relieving the industry of the country, I proceed now to
another branch of the question. I have shown you that
by the manner in which we propose to deal with the malt-
tax we benefit largely, as we believe, the consumer ; but in
doing that we think that incidentally—and that was only
a secondary purpose—we are giving great facilities to agri-
culture. Nov, Sir, I come to another branch of the sub-
ject. I come to deal with an article as popular with the
people as malt, as much a necessary of life, and subjected
to a much heavier tax. lam about to recommend to the
house to deal with the tea duties. (Cheers.) Sir, I know
the prejudices that exist among a certain class of persons
on the subject of the tea duties, but, having had occasion
to look very much into this question, I haye been as-
tonished to see the rise of opinion, the gradual forma-
tion of opinion, on this subject, now almost one of para-
mount interest in this country. (Hear, hear.) I hardly
know anything more amusing than o open " Pepys's
Diary," where we see it stated—" Took a cup of the new
China drink—very pleasant"—(laughter)—and to remember
that not two centuries have passed, and that exotic novelty
which pleased one evening thaif antastic gentleman is now
the principal solace of every cottage in the kingdom.
(Hear.) Well, sir, the great objection which has been
urged at different times and by persons in authority—for I
think it right to state a case of this kind as fairly as pos-
sible—is, that in dealing with tea we deal with an article of
limited production. True it is that Mr. Pepys had his
cup of the "now China drink"—true it is that since cer-
tainly the commencement of the last century, when only
500,000113. of tea were imported into this country at a very