The Sun.
London, England, 1852-05-01 00:00:00

THE BUDGET.

The Rouse having resolved itself into a Committee of
Ways and Means,
The CHANCELLOR of the EXCHEQUER rose and
said,—A. chief branch of the revenue having ceased by lapse
of time, and a considerable deficiency having consequently
ensued, it would be incumbent on me, were there no other
reason, to invite the consideration of the House of Commons
to the state of the public finances. Of late years, commer-
cial considerations have so mixed themselves up with the
transactions and engagements of public finance, and, unhap-
pily, political passion has so blended itself with all the topics
of commercial controversy, that I feel it would almost be pre-
sumptuous in me to hope that on this occasion I should be
able to engage not only the serious, bnt the calm and unim-
passioned aotention of the House, tn the grave subject I am
now about to bring under its considkration. But when I re-
collect that upon the correctness of the Principles on which

THE

the finance of the country is founded must mainly depend the
greatness of the realm and the happiness of the people—
(Hear)—l am not altogether without hope that I may in-
duce gentlemen on either side of the House to dismiss
from their minds all prejudgments and prejudices, and
to join with me in the attempt clearly to comprehen I the
exact financial position of this country.—(Bear.) When
the Minister responsible for the condition of the finances
finds himself in the position to which 1 have just adverted—
when he has to submit to the House facts which none can
dispute, that a considerable source of revenue has ceased to
exist, and that by its cessation there is necessarily a consi-
derable deficiency in the public income, there is, of course,
one question which inevitably occurs to every one engaged
in such discussions as the present—namely, what are the
soundest means—what, at the same time, is the most popu-
lar and the most practicable melody—or perhaps I ought to
say on such a subject, what is the method the least unpo-
pular, and the most practicable, by which me may sup-
ply the deficiency, which none can deny?—(Hear, hear.)
It is unnecessary for me to remind the House that the re-
venue of this country is raised, generally speaking, by three
modes—by duties on articles of foreign import, by duties on
articles of domestic manufacture, and largely by a system
of direct taxation. Now, we have to inquire, in the first
place, what are the means, which are the most prac-
ticable, and to which I should be most successful in ob-
taining the consent of the House to have recourse, in
order to place the finances of the country in that
satisfactory state in which I am sure that gentlemen,
whatever seat they may occupy, would wish to see them.
With respect to the first method, namely, the raising an
increased supply by duties on artic'es of foreign produce
imported into this country, I should observe that a very
considerable branch of revenue is still raised by that mode,
and that, perhaps, is the first method which naturally pre-
sents itself for obtaining an additional supply. But, if
I try to anticipate what may be the opinion of the House
of Commons on that point—if I pass under my review
what has occurred on the subject of the Customs' duties
for the several years during which the present Par-
liament has existed ;—if, indeed, I extend the range
of my observation, and examine what has been the
conduct of the Parliament which preceded the present,
I do not certainly think that in the present Parliament the
prospect of supplying a deficiency by increased Customs'
duties is very encouraging.—(Cries of " Hear," from the
Opposition.) Since the year 1842, now ten years ago—l
take that period because it is an epoch frequently referred to
in this House, and considered by many, I myself think
erroneously, as the inaugurative epoch of a new system in
the management of our finances and our commerce,—since,
I repeat, the year 1842 up the year 1851 inclusive, find one
very remarkable feature in the financial management of this
country, viz., that in every one of those past ten years there
has been a reduction of the duties on foreign articles im-
ported into this country. There is no single year of those
ten years in which there has not been a reduction, and a
considerable reduction, of the the means of raising revenue
by duties on articles of foreign import. You have in those
ten years repealed or reduced the duties on coffee, timber,
currants, wool, sugar, molasses, cotton wool, butter,
cheese, silk manufactures, tallow, spirits, copper ore, oil
and sperm, and an amazing number of other articles,
which produced a small amount of revenue, with respect
to which it is not material, and would be almost prepos-
terous, that I should trouble the House in de-
tail. It is sufficient for me to observe this remarkable
fact, that the reduction of your Customs' duties from 1842
has been systematically continuou3; that in 1842 you sti uck
of nearly 1,500,0001. of revenue calculated from the Customs'
dutiOs ;—that in 1813 you struck off 126,0001 ; in 184 t,
279,000/. ; in 1845, upwards of 3,500,000/. ; in 1846, upwards

51,150.000/. ; in 1847, upwards of 343,000/. ; in 1848, upwards
of 578,0001. ; in 1819, upwards of 384,0110/. ; in 1850, up-
wards of 31,0001. ; and in 1851, upwards of 801,000/.' •
making an aggregate in those ten years of nearly 9,000,0001.
sterling.—(Loud cries of " Hear!") Well, then, having a
deficiency to supply, and looking to the source: whence that
assistance which is necessary, might most probably be ob-
tained, I think, after the catalogue of remitted duties which
I have just reed, it would be somewhat preposterous on my
part to suppose that I could induce the present House of
Commons to supply the deficiency by the imposition of fresh
dutihs on imports. Have I, then, a more encouraging pros-
pect if I seek to supply the deficiency by having recourse
to duties on articles of domestic manufacture? In the con-
troversies on commercial legislation which have occurred
of late years, and which have especially prevailed during
the la-t six years, two opinions have been advocated in this
Honse, and have been very warmly supported in the coun-
try,'as to the preferable means by which you might relieve
the industry of this country. One important party in this
Home and in the country have advocated, and successfully
advocated, the repeal of Customs' duties, and the prevalence
of their opinions—the triumph, I would say, of their
opinions—in this House has been exemplified by that table
1 have just referred to, and which I have had prepared for
the Information of the House. But there has also been in
this. House a party, if not triumphant, still very important
frnin their numbers and from the zeal and conviction with
wnieh they have maintained their opinions, who have as-
serted, on the contrary, that the best mode of relieving our
native industry is by the remission or repeal of what are
called Excise duties. No one advocated that opinion with a
greater amplitude of statistical learning than my late and
ever-lamented friend Lord George Bentinck ; and it is
an opinion which is sanctioned also by the authority of
writers of the highest consideration, and one which I
myself consider to be entitled to the gravest attention and
consideration.—(Hear, hear.) But if there be Members on
one Aide of the House who are of opinion that you must not
supply a deficient revenue by a Customs' duty, and, on the
other,. Members who are equally of opinion that an Excise
duty is more injurious to the industry of the country than a
duty on the import of foreign articles, what is the prospect
of success for a Chancellor of the Exchequer if his means of
supplying a deficiency are limited to those two, still impor-
tant, sources of our public wealth? But this is not all. It
is net merely that a very important party in this House are
opposed to Excise duties, because they think their influence
is peculiarly pernicious to the exercise of our national in-
dustry, but even Hon. Gentlemen opposite—even those who
consider a Customs' duty the greatest fiscal grievance—even
they have evinced during the last ten years scarcely less re-
pugnance to raising our revenue by duties on articles of do-
mestic manufacture. Let me now place before the House
a catalogue of the successful invasions which have been
made during the same period of the last ten years, upon
that, great source of our revenue—the Excise- Whilst
you hive reduced the calculated resources of revenue from
Customs by an amount of 9,000,000/. during that time of
ten years you have also in the same period repealed the
Excise duty on vinegar, auctions, glass, and, finally on bricks ;
by which an amount of revenue nearly as large as
1,500,0001. has been abstracted from the Excise, simulta-
neously with your successful assaults on the Customs' re-
venue.—(Hear, hear.) But is that all? Can I forget what
occurred in this House only about a week ago, when a
Right Hon. Gentleman, once a member of the late Adminis-
tration, connected in that capacity with the department
which peculiarly watches over the fortunes of our trade and
navigation—the Member for Manchester, an active member,
too, of that confederation which has exercised of late years
so considerable an influence on the finances of this country,
came forward and proposed a repeal of Excise duties,
which would virtually have further reduced the public in-
come by 1,400,0001. Under these circumstances the House
will agree with me, that not only with respect to Customs'
duties, but also with respect to Excise duties, the Minister
who proposed to supply a deficiency by increasing their num-
ber or amount would embark upon an enterprise extremely
hopeless. But I fear that the difficulties of an individual in
my position are not limited by these two branches of revenue
on which I have touched. We hear a great deal in the pre-
sent, day, and often from Gentlemen opposite, that the
preferable mode of raising revenue is by what they call di-
rect taxation.—(Hear from some Member on the Opposition
benches.) I receive that cheer as evidence of the attention
of the Honourable Gentleman, and I am honoured by it;
but,. I fear that when I pursue the critical investigation to
which I solicit his attention, I shall not find that wel-
come adhesion to the principles of direct taxation which
at present he seems to evince.—(Hear, hear.) Now, we
have had during the last ten years considerable experience
of the temper of the House of Commons and of
the . country with respect to this third mode of
rasing the national revenue; and I wish to draw, I would
say, the most serious attention of the House to this very im-
portant branch of taxation. It is exactly ten years ago
since one of the mos; eminent of modern statesmen, whe
was the principal means of effecting that reduction in our
Customs' duties, and even in our Excise duties, to which
I have recalled the recollection of the House—it is exactly
ten years ago since he successfully introduced a measure
which entailed on this country a large portion of direct
taxation. Now, let me recal the recollection of the House
to the circumstances' under which the property and income-
tax was introduced to our attention in 1842, the fortunes
which it has experienced, and the fate which awaited it.
Remember that that important measure of direct taxa-
tion was to have ceased after a lapse of time, and was in-
troduced to the House apologetically.—(Hear, hear.) It
was introduced as a measure necessitated by an emergency
and framed to meet an exigency, and even with all these
circumstances, the House and the country could not be in-
duced to adopt it without its being framed on large bases of
exemption. There was no evidence either favourm the House
i b direct
the country of any great inclinationin
taxation, because the measure was introducesl as being only
_
,
multi-
tude rinald not be oppressed by its operation.—( hear. )
Well, Sir, what was the fate of that tax, introduced by one
' justified by emergency, and was so modelled that the
of the ablest and most powerful Ministers of modern times?
Notwithstanding all his talent, and notwithstanding all his
power in this House, that law was with difficulty renewed,
and coald only be renewed after repeated discussions, and
afteri motions had been made in this House by Hon.
Members of great distinction, who impugned the justice of
its *visions, and complained of the oppressions of its enact-
menta.—(Hear, hear.) At length, before the ten years
had 'elapsed, it had become so odious and so unpo-
pular, thats its existence was only renewed provisionally,
and that, too, upon the severe condition that it should
beaccinami, tted to the severe scrutin of a Committee
y
aPetairs.—(Hear, hear.) As far, therefore, as the Property
and income.tax is concerned, the conduct of this House
with respect to direct taxation is scarcely more encouraging
than its conduct with regard to raising revenue by indirect
tazira atiten, either in the shape of duties on articles of foreign
me of makgin4
I It Po; ,or upon articles of domestic manufacture.—(Cheers.)
mut my hope that, before the difficult duty devolved upon
tee upon the In the statement which I have the honour of
submittin the Rouse to-night, the report of the Commit-
. table. I feel, Income-tax me-tax would have been laid upon the
to e:urse, great difficulty and delicacy in
which are under the ertait
adverting—as
extent I must do—to subjects
consideration of that committee. I
therefore, if I can do -
have the honour to be member of that Committee, and, '
that I can bear witness nothingto the else, I can at least say this—
whcllmpartial spirit and the inde-
fatigable industry with
Committee, wille a
the inquiries of the Com-
mittee have been carried on—.(Cheers)—andot I am sure—at
least I hope—than an Hon.
_opposite )
the chairman of that
inaueedcmeit thatsincethe
I have
rown no obstanigeninhietecowneduct
inquiries I have th
bad the power of exercising any
of its
(„ Hear, hear," from Mr. Hume.) lam not trying to nar-
row the issue in question; I have given every facility to an
investigation which I thought the country required, and the
results of which I have watched with the utmost interest.
circumstances it would Under these
to give an opinion upon points on which that Committee
has not yet decided, or at least upon
which they have not
yet officially communicated th • eir decision to this House ;
yet, upon one the position
or two of those points, from I
it is impossible
occupy to-night, for me to be entirely
the great objections to the a:
silent. One of
one of the causes of t upon pro-
perty and incomeits odium and
in This country—is unquestionably that
unpopularity
difference as to the mode and rate of assess-
mentthere is no
incomes of a temporary and of a permanent
upon hear.) That most interesting and ins-
character.— (Hear,
portent question is now submitted submitted to your Committee; and,
03 I have said before, it would be arrogant in me to give an
t until theirdecision has been for-
opinion upon the subject
m'unicated to the House. But I may
mally and officially com
we have received the ablest evi-
say that upon that subject
I may say that, on that sub-
dense Isom the ablest men.
listened to men who have made the
ject, the Committee have
principles upon which such assessments should be calculated
•
the study of their lives, who have brought to the Committee
and enlighten us, and who
all that science can offer to aid