The Sun.
London, England, 1864-04-08 00:00:00

and I will include in my statement of exports of 1
British, the exports of foreign and colonial produce, of
which this country is becoming more and more the
centre. In the year 1861 our imports were estimated
at £217,485,024. In 1862 they were estimated at
1225,716,976 ; and in 1863, the year when we were almost
wholly deprived of the largest and most valuable of all our
imports—namely, the cotton of America—the imports were
estimated at £248,980,942. Our exports of British produce
stood for the first of those three years at £125,102,514; for
the second of three years at £123,992,264 ; and for 1863
they stood at £146,489,768. Our experts of foreign and
colonial produce for the first year were 134,529,684 ; for
the second year £42,175,870; and for the third year
£19,485,005. The total exports of the country were, in 1861,
£159,632,498; in 1862, £166,168,134; and in 1863,
£195,974,773. The total movement of the foreign trade of
the country is this : Imports and exports, taken together,
amounted in 1861 to £377,117,522; in 1862, £391,885,110;
and in 1863, £114,955,715. That astonishing sum I will
only illustrate by these two statements. In the first place,
it may be taken to be about three times the trade of this
country as it stood at a period comparatively recent, viz , in
the year 1:i42, when Parliament first began deliberately and
advisedly to set itself to work with a view to reform our
commercial legislation. (Cheers.) In the second place,
that sum may be taken to represent as nearly as possible
£1,500,000 for every day in the year—a magnitude of
operations connected with industry so vast that, if it did not
stand on incontrovertible figures, it would hardly receive
belief. Bat not only aro these figures remarkable when
we consider them as showing the progress of the energies
of Englishmen, and the strength of that country which is
dear to all our hearts, but they mean much more than
this. They mean that England is becoming more and
more deeply pledged from year to year to be the cham•
pion of peace and justice throughout the world—to take
part, with no -view to narrow and selfish interests, but to aet
with the broad object of the welfare of humanity at large, in
every question which arises, in whatever part of the globe,
(Cheers.) I referred a moment ago to the year 1842, and
stated that it was since 1842, since the commencement of
the great work of Parliament with regard to commercial
legislation, that these changes had taken place, Ido not
overlook for a moment the effect of other elements that have
been at woe k—elements of immense power and immense ad •
vantage. 'there are some who think the same effects would
have been produced, even if your commercial legislation had
remained as it was. (Hear, hear, from an Hon. Member—
laughter.) I hear a solitary " hear, hear." It is a matter
of great national and public interest that we should satisfy
ourselves in some degree by approximate evidence of the
truth of this statement. Ido not deny that other countries
have made great pr6gress in trade and industry. I do not
undervalue the effect of the powers of locomotion which
have been set in operation amongst us. There are many
other causes which have co-operated to produce this extra-
ordinary development of modern industry ; but this I have
observed, and it will at any rate go for what it is worth,
that during the several years in which Parliament has with
an unsparing hand addressed itself to the business of libe-
rating commerce, these cperations have been immediately
followed by striking augmentations of the trade and indus-
try of the cauntry. Whatever is due to locomotion, to tele-
graphs, the progress of machinery, the change has been equal
from year to year. Allowance must always be made for
good hary ests and bad harvests, bat still if I find this meet-
leg me in examination of the case that the legislation of
Parliament has immediately been followed by striking and
peat results, it shows me that we have not been feeding
ourselves on empty dreams when we believed that in
giving freedom to the commerce and capital of England
we were adopting the true means of extending our pro-
sperity. I will only take the three last years in which
changes of that kind have taken place. In 1853 important
changes of that description were made. The exports of Bri-
tish produce in 185.2 had been £78,066,000. The year 1852
was a pear of great prosperity, an excellent harvest, and of
the cheapest capital ever known in this country. 1853 was
a year of bad harvest, but a year of legislation on behalf of
freedom of trade; and while in 1352 the exports were
£78,000,01)0, those of 1853 were £98,938,000. The yearlB6o
was one. of the worst harvests known during the last half
century; and in that year the exports showed an increase
of £164,000 on the preceding year. In 1863 it was in the
power of Parliament to grant extensive measures of cora•
mercia 1 relief. In the previous year, 1862, the exports were
£166,h68,000 ; but in 1863 they rose to £195,971,000. Ido
not think it is possible to lay doe n any precise rule or de-
gree ; but I do say these figures represent a connection be-
twran the years of legislation and the great increase of the
trade of the country. I will now refer to the fiscal and com-
mercial legislation during the same years to show that we
have not been indifferent to the complaints of those who
t)idnk they have been hardly dealt with. And, first of all,
let cue refer to the completely settled-1 mean settled so tar
aes legislation is concerned—question of the paper duty.
Though the accounts which I shall present are fragmentary
and partial, they are indisputable, so far as they go. There
has been an increase of imports to the following extent :
Is 1839 it was 18,000 cwt, and in 1861, 191,000 cwt, which
was an enormous increase. When we consider the import of
the materials of paper, we find that iu 18:59 we imported
178,000 cwt, and in 1864, 725,000 cwt, There is a positive
increase in the amount of British paper goods exported. In
1859 it reached 115,000 cwt, and in 1864, 190,000 cwt.
This is the quantity as nearly as can be estimated, but of
the quality I cannot speak, Then comes the question of
the price, and this has been greatly reduced. We will take
printing papers; and in 1859 the price was 6.1 d to 81d per
lb; 1334 it was 411 to 614—(hear, hear)--so that the re-
duction has been from 7to 9 farthings per pound. There
as another very curious fact connected with the paper trade,
d.hough I am very far from representing that the paper trade
is as prosperous as one could desire to see. (Hear, hear.)
It is remarkable that the diminution in the number of paper
manufactories which was taking place before the repeal of
the duties has ceased. In 1838 the number of paptr manu•
factories was 526, of whom it is necessary to deduct a small
per centage for the card •board trade. In 1848 there were
447; in 188, 380 ; in 1859, 385; and in 1361, when the duty
'was repealed, the number had sunk to 361. In 1863 it was
360, though these had been labouring under considerable
disadvantages ; for the paper trade was in no small degree
dependent upon the cotton trade. And you must recollect,
with respect to the value of cotton goods exported, the cot-
ton had vastly increased in price; therefore the total value
of the exports, as compared with other years, may tend to
diminish the appearance of loss. But this high-priced class
of cotton goods required. no more paper to pack them than
did the cotton which was formerly sold at a cheap rate. Ihe
papermakers have Ql6O suffered with respect to rats. I must
ask the house 114 remember that the cotton trade grew up
under Prote'etion. Protection immersed the energies of the
all'auf'w:.nrere, and they were contented with imperfect and
wastrertul methods of manufacture. But protection was with-
el:awu, and it was saiel that it would cause considerable suf-
fering to throw the manufacturers upon th© resources of
.their invention and skill. The restorative process com-
enenced, and, after a short interval, every one of the branches
of this trade found itself more healthy, more vigorous,
and more profitable. (Applause.) I will quote a
single instance in the paper trade in support of what I
have said. The facts are supplied to me by a gentleman
in the trade, who is a partner in a mill which was set up
since the repeal of the duties, I am not authorised to
use this gentleman's name,but if his facts should be doubted
:he is willing to communicate the particulars. For the four
anontbs ending Oct. 31, 1863, he made paper at £57 per
ton, but it did not pay. Ile and his partner set themselves
to work for the purpose of seeing what could be done by the
improvements of the process and by chemical agency. In
Oct., 1863, as I have said, he produced paper at £57, and in
December he had his partner had reduced the price to 117
per ton. (Hear, hear.) At the present moment they are
manufacturing it at £37 per ton—(applause)—and the arti-
cle is a better one than that which cost £57 per ton. I think
it would be ill advice to them if they were told not to de-
pend upon their own energies. It is certainly monstrous
to say to any branch of British industry that we shall ex-
pose them to the effects of foreign competition unless we
likewise say " You shall have all your wants at home sup-
plied
on the best possible terms." (Hear, hear.) We very
touch lament that foreign Governments should maintain
:restrictions of any kind on the imports of raw material, It
is with great satisfaction that I am authorised to say that
we hope and believe that a concession will be made by the
Government of France in the export duty on rags. (Hear.)
I next come to the question of spirit duties, the importance
of which will be remembered when I say that, not from
strong liquors taken in the whole, but from the single arti-
cle of what is called ardent spirits, wo raise nearly one-fifth
of the entire revenue. In 1360 the duties were raised to the
highest point, vie., les the gallon, and it was said that,
although there would be a considerable diminution in the
consumption, yet from the augmentation of duty there
woull be an increase of revenue. The duty was not so
great as was expected, but the question arises whether that
was due to smuggling, to distress, or to the operation of
the duty, With respect to the duties of the year 1859-60,
the revenue department explains that there was a large
sum received in consequence of what may be called the
premature delivery of spirits from bond, under the
expectation that the duties would be increased in February,
1,,60. The effect was that £320,000 duty was received, and
went to the estimate of the year 1859-60, which really he-
longed to 1860-61. The actual revenue for 1859-60 must
be estimated for as follows: First wo must deduct from the
duty then received on British spirits a sum of £340,000;
and, secondly, a sum of 225,000, in consequence of the great
diminution that in the year 1859-60 was enacted by Parlia-
ment on the duty in foreign spirits, and particularly on
French brancly. The corrected total of the revenue for
foreign,
colonial, and British spirits in 1859-60 for the pur-
pose of comparison with the revenue of the present year,
would stand as follows : 1 ,io.,000; namely,
on British
spirits, £9,458,000; on foreign, £2,298,000; making
£11,756,000. In 180-61 it was £12,168,000; in 1861-2 it
was £12,267,009 ; and in 1852-3, when the Lancashire dis-
tress had reached its utmost intensity, it fell to £12,102,000.
In 1863-1, when the distress had been abated, it rose to
£12,638,000. So that the real state of the question, eon.•
mitered as a final question, is as follows : The revenue, 1859-
1360, properly belonging to it, may be taken as £11,756,000 ;
i n 1863-04, L 12,633,000 ; showing an increase in the revenue
from spirits of £832,003. This being a question of great
interest, I have sought for means of throwing light upon it.
Why is it that the revenue from spirits has not risen. Is it
due to smuggling, to distress, or to a change of taste? It is

not owing to smuggling. I think the evidence on that
subject is clear. It is quite true that in Ireland at this
moment there is an increase of smuggling as compared
with the three preceding years; but it is net true that
there is an increase in smuggling as compared with what
it was when the duty was Bs. I will venture to give a
proof of that. We have means of judging sv (ther distress
has operated in this matter or not, beca isi' the circum-
stances of the three countries, as connected with consuming
power, have materially differed during the last four years.
Ireland has unhappily been afflicted with a succession of
bad harvests. Better in 1863, not perhaps as regards the
seller, but as regards the consumer ; but the three preceding
harvests were of an exceedingly lamentably defective cha-
racter, England has suffered in the great focus of consump-
tion of this kind, viz., in Lancashire, in a peculiar degree.
Scotland, having a very small cotton trade and having its
industry generally in a flourishing condition, may be said to
have hardly suffered at all. Now it is curious that the spirit
revenue of the three countries has varied in the precise pro-
portion of their distress. In England the revenue has been
stationary since 1859-60. It was £4,341,000 then. In 1863-4
it was £4,390,000, showing an increase of £49,000, or about
1 per cent. on the revenue. In Ireland, where the pressure
of distress is greatest, in 1859-60 the revenue was £2,655,000.
In 1863-61 it sunk to £2,322,000—a decrease of about 14
per cent, on the whole, which is amply accounted for not
only by the gradual change of taste which operates in all
the three countries, but also by the special distress under
which Ireland laboured. In Scotland, where the pressure
of the distress has been much less felt, the Scotch revenue
from spirits has increased in a manner nut at all unsatisfac-
tory, considering the changes which have been made in it.
In 1859-60, even although unduly swelled by premature de-
liveries, it was £2,973,000, and in 1863, £3,332,000—(hear)
—showing an increase of upwards of £300,000. This may
be considered a very satisfactory result. The truth is, a
very great change of taste is going forward. It is not to be
indicated by one circumstance or another, but by the com-
parison in aggregate effects of a multitude of observations.
There is a steady process, a very happy process, in operation
--the translation of taste for stronger and more ardent spirits
to milder and more wholesome liquors ; and we cannot un-
derstand what is going on with regard to the spirit duty,
unless we keep that essentially in view. lam glad, how.
ever, to say that, as far as regards distillers, though they
have had a considerable diminution of home demands, an
export trade is rapidly creating itself. Some 20 years ago
the quantity exported was very trifling. Ia 1859 it had risen
to 1,941,000 gallons; while in 1863 it had risen to 4,071,000
gallons. lam informed that the Scotch, in addition to a
tolerably supply which they have found for the people of
Scotland, have secured to themselves a considerable portion
of this export trade. With respect to wine the figures
stand as follows : In 1859 wine imported from Portugal was
2,106,000 gallons; in 1861, 2,669,000 gallons, showing an
increase of somewhat over 25 per cent. The wine imported
from Spain is more in favour than the Portuguese wine ;
for in 1859 it was 2,884,000 gallons, and in 1864 it had
risen to 4,799,000 gallons, or about 70 per cent. The wine
imported from France in 1859—the last year before
the change—was 597,000 gallons, and in 1864, 1,965,000
gallons—showing an increase of 330 per cent. As regards
other foreign countries, which are generally represented by
light wines, the amount in 1859 was 577,000 gallons, and
in 1864, 1,184,000 gallons, or over 100 per cent. The im-
port of colonial wine has largely decreased, distinctly
proving that nothing but a duty perfectly artificial and
extravagant in amount, and totally unreasonable in its
grounds of endowment, in effect taken out of the pockets
of the people of England, was really the basis of the
trade in colonial wines, If the wine trade will grow natu-
rally in the colonies, by all means let it do so ; but I believe,

in those colonies whose climate was best suited to the
growth of wine, the rate of labour is a good deal too high to
allow anyone to hire a large number of persons to set about
the manufacture. The growth of the consumption of wines
in this country is most satisfactory. In 1858-59 it was
6,974,000 gallons; and in 1863.64, 10,729,000 gallons,
showing an increase of 54 per cent. The figutes for
1863-61 are not precisely as regards units or hundreds of
gallons, but for every substantial purpose they are correct.
There is another subject I wish to mention to the committee,
because it was a subject of legislation last year, and also
is a subject of great fiscal and eensiderable commercial
importance—l mean the subject of the tobacco duties.
During the last year an act was passed for the purpose of
reconstructing our system with regard to duties and
crawbacks on manufactured tobacco. The objects of the
act were to diminish smuggling and to increase trade and
revenue. I think the committee will be of opinion that
where those objects can be satisfactorily combined, the
results are well
_worth having. As regards the increase of
articles which were formerly smuggled, the case stands as
follows—The descriptions of tobacco which were largely
smuggled into the country were cigars and cavendish. The
cigars imported in the eleven months from April up to
February, 1863, was 2,316,0001 b. The cigars imported in
the corresponding period of eleven months in 1863-61 was
3,976,0001 b., showing a large increase. With respect to
cavendish, the manufacture of which in this country had
been previously prohibited, but which was allowed by the
Act of last year to be manufactured in bind, six manu-
factories of cavendish have been established by way
of a commencement of the trade. But this in-
crease of importation of the foreign article has not
been attended with a diminution of the tobacco
manufacture at home; for, whereas it appears that in
1863 there was entered for consumption 35,700,0001 b of
raw tobacco, in 1861, after the duty had been lowered alai
the British manufacturer had been put through his usual
paroxysm of apprehension and alarm—after the usual an-
nouncement had gone forth that many hundreds of thou-
sands cf workmen in the tobacco trade were about to be dis-
missed, if they had not been actually put upon the streets--
now what are the facts of the case 2 In the year preceding
the change, the British manufactured tobacco entered for
home consumption before this terrible and pernicious
change was 36,569,000 lbs. ; and whereas in 1862-63, in
the eleven meths, we only exported 50,000 1133.,
in 1363 64, for the same period, we exported 120,000 lbs.
The reverse, I am happy to say, has been going on
in a very satisfactory manner. About 1843 it was ad-
mitted that the smuggler had got the better of the re-
venue department ; but his triumph, if it was really a
triumph, was only temporary. The smuggler has been
kept within bounds, and, I trust, now is not only kept
within bounds, but greatly limited and reduced. The ave-
rage annual growth of the income of this country from to-
bacco alone for the twenty-one years, beginning with 1812
and ending in 1862, has been £105,000 a year. Last year,
when she change of duty was adopted, the revenue rose from
1105,000 to £293,000. (Cheers.) The house may desire to
know what is the condition of our trade with France. In
the year 1859, immediately after the treaty of commerce, our
imports from that country were £16,870,000. In the year
1861 they had risen to £21,024,000. Our exports to that
country during the year 18,9 were £9,561,000. In the year
1863 they had risen to £22,963,000. But I am very glad to say
that the French manufacturers, like the English, are begin-
ning to find the futility of their alarms, just as the traders in
this country found it in their own case man) times over ; and
that at this moment the spinners of France, who were in a
state of dire apprehension when the hon. member for Roch-
dale was executing his work, have become exporters of linen
yarn, and have sent to Dundee cargoes of that commodi, y
amounting to half a million sterling in value. (Hear.) With
all this I remind the house that the pauperism of this
country remains not only stationary—l exclude Lancashire
as a matter of temporary operation—but may now be said
to have been for a considerable number of years on the
decrease. In 1818.49 the paupers of this country num-
bered 981,000 ; in 1863.61 they were 828,000, without
including Lancashire. In 1818-49 there were 61 paupers
in every thousand of the population, and now there are
only 46 in a thousand. In other words, in the first of
those years there were 239 in every thousand who wore
a working population, and now there ate 954 in every
thousand whu are a working and a self. supporting popu
lation. That is the state of the case as regards the year
1863-4, through which we have just passed. New I come
to the estimates for the year 1861-5. (Hear.) The charge
for the funded and unfunded debt may be taken as
£26,400,000. The increase which appears in this charge is
owing to the operation of the measure to which I recently
referred for converting perpetual into terminable annuities.
The charges upon the Consolidated Fund other than that
debt are £1,930,000. The estimates for the army are
£14,841,000. The estimates for the navy are £10,432,000,
but they will prabably be subjected to a certain amount—
not a large amount—of increase on account of a planwhick
is under consideration for improving the position of various
classes of officers in the navy. The estimates for the collec-
tion of the revenue are £1,692,000. The packet estimates are
£883,000. Tho miscellaneous estimates may be taken for
the present purpose at £7,628,000, It is probable that
that will not ultimately be the precise figure, but I may
observe that I have reserved a sum of £BO,OOO to cover any
variation which may occur in the navy and miscellaneous
estimates• The total estimated expenditure of the country
will therefore stand for the year 1864-5 at £66,890,000,
That is lower than the estimated expenditure of 1863-4 by
£1,393,000, and lower than the actual expenditure of that
year by £166,000, but it is higher than the estimated expen-
diture of 1858-59, which was the last year before we come to
the years of very high expenditure, £2,226,000. Or if we
correctthecomparieonby debiting ourselves with the amount
of the long annuities which we have saved, and likewise
with the fortification expenditure, but deduct the sum of
£1,125,000 on the other side, to which I have referred as
now appearing on both sides of tho account, and which
did not appear in 1858.59, the increase since 18.58-59 may
be taken as £1,017,000. lam anxious to draw the atten
tion of the committee to that figure because I think it is
a fair estimate of the actual present remaining growth of
our expenditure since the tirue when we returned from the
Russian war to a peace establishment. And now I come to
the estimates of the revenue for the year. First, I take the
revenue from the customs as £23,150,000 ; second, excise,
L 18,030,000 ; third, stamps, £9,320,000 ; fourth, taxes,
£3,350,000; fifth, income tax, £3,600,000; sixth, Post-
office, £3,950,000 ; seventh, Crown Lands, £310,000. That
is the whole of the revenue properly so called, Eigth,
miscellaneous receipts, estimated at £2,250,000; ninth,
indemnities, £600,000, of which £500,000 is from China
and £lOO,OOO, in two sums, received from Japan. The
total estimated income will, therefore, be £69,460,000,
and the total estimated charges £66,899,000 ; and the pro-
bable surplus of income over expenditure will be