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

MAY 1, 1852.

. carriage and railway duties. It will also be necessary to
make allowance for the reduced produce of the hop-tax,
which, Owing to the season, will fall considerably below
that of the preceding year. On the other hand, there will
be a considerable increase in the malt duty, payable on the
10th of October next. The produce of the Excise duties
for the past year was 14,543,893. From this amount it is
necessary, in estimating the produce of this branch
of the revenue for the present year, to deduct about
181,000/. for the probable diminution of the hop duty, and
• a further sum for the reduction on the stage-carriage and
railway slaty, which I estimate at 50,000/., making
together 239,0001. Deducting this sum from the Excise
revenue of last year the revenue for the present year would
stand at 14,304,89 Sl. I estimate the increase of the malt
duty at 300,00 W., which, added to the figures I have just
stated, gives 14,604,895/. as the estimated probable revenue
of the Excise for the present year. I estimate the stamps for
this year at 6,339,0001., which is about the same amount as
they yielded last year. I intended to take the same amount
exactly, but some items of expenditure connected with the
accruing, produce intervened to disturb my calculations, and
prevent my taking that course. The alterations in the stamp
duties has now been in operation since October, 1850, and
its effects may now fairly be supposed to have fully developed
themselves. Under these circumstances, I think lam justi-
fied in estimating the prcduce of the stamp duties for the pre-
sent year et 6,339,000/. The taxes last year produced
3,691,7911. I am obliged to take them for the present year
at 3,090,000/. This considerable diminution is accounted
for by the circumstance of a portion of the window duty
having come into the last half-year's account. The pro-
perty-tax for this year must, of course, be taken at half
the amount produced by it last year, because, as the House
is aware, the tax does not virtually cease until October.
Whatever decision, therefore, the House may come to on this
subject, half of the property-tax must necessarily figure in
the revenue of this year. it will amount to 2,641,5001. The
revenue of the Post-office I estimate at 938,0001, after
making allowance fur the withdrawal of the effect of the
Great Exhibition, for the expenditure on account of the
census, and also for the settlementiof a contested account with
the railways regarding the carriage of the mails. I esti-
mate the revenue from the Woods this year at 235,000/.
The Woods. last year, produced only 190,000/., but their
produce will be increased this year by the transference to
the miscellaneous estimates of certain charges which
heretofore were borne by the Woods. I take the
miscellaneous estimates for the present year at 260,000/.,
and old stores at 400,000/. These various items make an
aggregate income of 45,933,500/., leaving a deficit of
2,180,479/. This calculation is based on the supposition that
the property-tax is not continued, and, things remain-
ing the same, there would be a deficiency of 4,400,000/. in
the year ending 1853-4. To complete the picture which
have endeavoured to place before the House in an unvar-
nished form—(Cheers)---I think it necessary, before sub-
mitting to the decision of the House and the country the
course which her Majesty's Government feel it their duty
to recommend for adoption, to show what would have been
the financial condition of the country in the present year if
the property and income-tax had been renewed for two
years instead of one. With that object in view I will
offer to the House an estimate of what I believe the pro-
perty and income-tax would produce for another year.
I am aware that ou this subject considerable controversy
has occurred. The late Chancellor of the Exchequer ex-
, perienced a loss of upwards of 100,000/. on the receipts of
the property-tax as compared with his estimate.
Having inquired into—indeed, I may say investigated
—this subject with the utmost attention, I am bound to
sav—and 1 will give my reasons for saying it—that
there has really been no diminution whatever in the pro-
c2eds of the property and income-tax. What I say is, that
there is no diminution of the total assessment of the property
and income-tax for the present year, as compared with the
two preceding years. Upwards of 100,0001. less has cer-
tainly been received this year than the preceding years, but
I will explain how this has occurred. In consequence of the
Bill for the continuance of the property and income-tax not
having been passed until the sth of June, great delay took
place in making out the assessments for the tax. The office
on which the duty of making the assessments devolved was,
unfortunately, occupied at the same time with the ar-
rangements connected with the census, and from the want
of hands arrears of business accrued, and considerable delay
in making the assessments was the unavoidable conse-
quence. The riouse, however, will see, from the explana-
tion I am alma to give, that there has been no diminution
in the total assessment of the property-tax in the present
year, compared with the two preceding years. The total
duty assessed in 1850 was 5,729,977/. ; in 1851, it was
5,739,7001.; in 1852, it is 5,758,7091. (Hear, hear.) The
amount actually paid into the Exchequer in these years
presents, however, a somewhat different result—for ex-
ample, in 1850, it was 5,466,2491.; in 1830, 5,403,379/. ;
in 1852, 5,283,800/. The country therefore was right in
supposing that there had been a diminution in the proceeds
of the property and income-tax, although, in fact, the as-
sessment has not diminished, but increased, and a great
proportion of the arrears have already been obtained.—
(Cheers.) 1 come now to the cause of the diminution which
has occurred in the amount of duty paid into the Exche-
quer. The diminution occurs under Schedule D. In the
year 1849 a great diminution took place in the proceeds from
trades and professions, which is levied under this schedule.
The amount fell from 1,754,000/. to 1,581,00c1. ; in 1850
it again dropped to 1,584,0011.; but in 1851 it rallied, and
ascended to 1,533,000/. I am sure I have no
prejudice on the subject, and 1 am bound to say,
that as far as I can form an opinion from the
information laid before me, there can be no doubt that
the diminution I have pointed out must be ascribed solely to
the unhappy commercial year 1817.—(Cheers.) I may be
excused for reminding the Committee—for iu order to put
the case clearly before Bon. Members it is necessary to refer
to many things with which they are familiar—that the as-
sessment under Schedule D is not made on the actual profits
of the year, but on the average profits of the three preceding
years, and, therefore, the bad year 1847 falling into the ave-
rage would diminish its amount just in the same way as a
bud year affects the averages made under the Tithe Commu-
tation Act. Thus it happens that while the assessment under
schedule D was 0n1y.1,584,000/. in 1849, it already amounts
this year to 1,600,0001.' and I am informed by those who
are most competent to form an opinion on these subjects
that we may look with confidence to the assessment trader
this schedule rallying completely.—(Hear, hear.) I say
completely rallying, because, although I appear before you
with a deficiency, the state of the country—especially
as far as this schedule is concerned—is one of great
prosperity—(Cheers)—but, as it is my business to state
to this committee what I believe to be rigidly the truth on
all subjects connected with the finances and commerce of the
country, I think members may believe me when I tell them
—as I do with great regret—that there are classes in this
country who are not prospering, and the effect of whosee ad-
versity is beginning to tell on the income and
dprt property-tax.
duty to d'eclaxr.
—(Bear, hear.) I deeply regret that it is my
that I have been warned by the highest theauthuority on tahie
important subject that in estimating returns fro
the property and income-tax we must commence making
some allowance fur reduced rentals—(Hear, hear)—and I am
informed that it is more than probable that the privilege
which the last session accorded to the British farmer with
respect to assessments under Schedule D
r.,he willcommittee
be acted on
to a large extent.—(Hear, hear.)
must perceive how difficult it is tof
find data on which to
found an estimate of the deduction which it may be
necessary to make under the two heads to which I have
referred ; but I have
felt it my duty to state the
effect of the communications officiallyt brought under
subject.
my notice by those best acquainted wih the
assure the Committee that I have no prejudice on '
this sub-
ject. Nothing could induce me to colourany case to which
it is my duty to refer, and I almost wish it had fallen to the
lot of any one else to make the statement I have just done,
lest it might perhaps be imagined
however slightly. Acting on information which it is impos-
sible for me to disregard, I am recommended to deduct not
less than 150,000/. from the estimated produce of schedule
D, in consequence of the two circumstances to which I have
directed the attention of the Committee. The amount of
revenue cl, rived from the income. and property-tax in the
year
ending the sth of April, 1852, is 5,283,8001., to which
must be added 54,0001., the amount due, but not collected, in
consequence of the delay in making the assessment, giving a
total of 5,337,800/. Supposing the property-tax had been
continued, I would have estimated its produce for the pre-
sent year tet the amount it yielded during the last, atter
deducting ISO,OOO/. fur the reasons I have before stated.
That being done, the estimated amount of the property
and income-tax for the year ending the sth of April, 1853,
would be 5,187,000/. If, therefore, I framed an estimate of
the income of the country for the year ending the sth of
April, 1853, including the property-tax, it would amount to
51,6,5,0001. ; and, as the estimated expenditure for the
same period is 51,163,9791., it follows that the surplus of
income over expenditure would be 461,021/. Now, Sir, I
hope the House has obtained from me an unvarnished, and,
I trust, a clear account of the financial position of the coun.
try. (Cheers from all sides.) This I can truly say, that
if I have not succeeded in conveying it to them, it is entirely
attributable to my want of ability and experience, and
not from any desire to conceal anything whatever.—
(Cheers.) It appears to her Majesty's Government under
these circumstances that there is but one course fur them
to recommend to the adoption of the House, a course
which I myself cannot believe that any prudent man, what-
ever may be his political or economical opinions, can for a
moment hesitate in adopting and sanctioning. Sir, I have
touched on the extreme difficulty which now attends the
management of the finances of this country. I have endea-
voured to bring the Committee to such a temper that it
assay become habituated to consider this all-important sub-
ject with, permit me to say, somewhat more of calmness
and patience than have accompanied the statements of a
Finance Minister of late years.—(Hear, hear.) My Right
Hon. predecessor, whose abilities 1 recognize with all sin-
cerity, no sooner rose in his place than, I well recollect, he
was assailed by a thousand demands, which, in themselves,
may have been just; but which, when viewed with respect
to the resources of the country, I cannot but feel were un-
reasonable, and many of which, I regret, were conceded,
with—l will not say precipitation, but under a severe neces-
sity.— (Hear, hear.) Her Majesty's Ministers would not
shrink from surveying the whole system of our finances with
an attempt, if possible, to induce the House of Commons to
come to some clear and decided opinion upon the principles on
which the public revenue should be raised. They look with
great apprehension to the opinions prevalent in this House,
which seem opposed to ail the great sources of raising the in-
come of this country. They consider that nothing can be
more injurious than rashly and rapidly to reduce the re-
sources of indirect taxation , while you have come to no tn
gene-
ral
conclusion as to the principles on which direct taxation
should be levied. They are of opinion that if we
ecntinue
industry,
in this mood of mind, admirable as is the
vast is the capital of this country, great a
advan-
tages which it receives from political institutionssare the
that have
secured it order, wealth, and stability, it will be impossible
to maintain the revenue of the country in that manner
which the public credit and the wants of our national estab-
lishments require.—(Cheers.)
We have‘v aprotiotuenudr edountyvitco-
tion upon that heed.—(Hear, hear.) e deem
impress upon the Committee and the country the danger of
the course on which they Nava embarked—to impress on
them the absolute necessity, now or in another Parliament,
of arriving at some definite understanding of the principles
on which the revenue of this country ought to be raised.—
(Hear, hear.) They deem it their duty to denounce, as
most pernicious to all classes of this country, the systematic
reduction of indirect taxation, while at the same you levy
your direct taxes up in a very limited class.—(General
cheers.) Sir, we would not have shrunk from undertaking
the laborious effort of examining the whole of our financial
system, animated by those views and actuated by that
purpose; but I put it with confidence to the
House, whether it has been possible for us to
undertake a duty which demands labour so great,
research so considerable, and an amount of time which
no Member of the Government, I am sure, has yet been able
to devote.—(Hear.) The Committee will, I am convinced,
recollect that it is, I believe to-day, only two months since
her Majesty's Ministers acceded somewhat unexpectedly to
office. Indeed, it is only six weeks since that member of
the Government who is peculiarly responsible fcr the conduct
of its finances could, from the necessity of meeting his con-
stituents,.nd resume his seat in this House.—(Hear.) And
though the indulgence of the House, of which no one can
be more sensible than myself, has assisted me in attempting
to conduct the business of my office, still the claimsofthe
HOUR and my department haye, I
_assure
_the Committee,

rendered it perfectly impossible for me to embark in that
undertaking. But, though the rroposal which, on the part
of the Government, I am goingito make, is one of a very un-
interesting, to use a modern prase, of a very " provisional"
character, I h-pe the House will not suppose that we are
shrinking from the fulfilment of our fluty, or that if it
pie use the Parliament of this country to give us that
opportunity, we shall be content with making provisional
propositions upon this important subject again to the fl- use
of Commons.-- (Cheers.) Sir, under these circumstances I
am sure the House will anticipate that I shall feel it my duty
on the first Opportunity to recommend for their adoption the
continuance for a limited period of those duties on property
and income which have been the subject of our criticism
here and in the Committee that is now sitting upon them,—
(Hear.) Sir, it would have been more agreeable to me to
have relieved the industry of the country, to have forwarded
that great cause of the fair adjustment of taxation, which I
believe the great majority of this House on both sides are in-
clined, upon right principles, to advance. That is not in my
power. My duty has only been to place fairly before the
House of Commons the condition of the public finances, to
offer that advice which her Majesty's Government, under the
circumstances. feel it their duty to tender. And now, Sir,
in placing this resolution in your hand, I trust that the
House will upon this and upon subsequent opportunities give
me every facility to carry the law, which will continue for the
limited period of one year the income and property tax.—
( The IZ;ght Hon. Gentleman resumed his seat amidst general
cheering, which was particularly hearty from his more im-
mediate supporters.)
The CHAI ItNIAN then read the following resolutions:—
" 1. That, towards making good the supply granted to her
Majesty, there be issued and applied to the service of the
year 1852 the sum of 1,015,625/. 12s. 101., being the sur-
plus of ways and means granted for the service of preceding
years.
"2. That, towards raising the supply granted to her
Majesty, the respective duties in Great Britain on profits
arising from property, professions, trades, and offices, and the
stamp duties in Ireland, granted by two Acts passed in the
sixth year of her present Majesty, and which have been
continued and amended by several subsequent Acts, shall be
further continued for a time to be limited." _ .

Sir C. WOOD said, it had often in the course of the last
five years been his duty to follow the Right Hen. Gentleman
who had just sat down, when he differed from him in most
that he had said. On the present occasion, however, he
had the more pleasing task on following him to say that
he concurred, not only in the course which the Right Hon.
Gentleman had proposed, but in most of the observations
which he had addressed to the Committee.—(Cheers.) He
thought it due to the Right Hon. Gentleman, in the first in-
stance, to assure him that no apology was necessary from him
for the manner in which he had made his statement, and in-
troduced his first budget, for he thought the Right Hon.
Gentleman must have succeeded in placing before them as
clearly as it was possible, not only the financial state of
the country, but the views which he on the part of the
Government was bound to express for them.—(Cheers.) Ile
could assure the Right Hon. Gentleman, that having watched
the course which he had taken upon previous occasions with
no slight interest, and having often had to answer him, it
was with sincere pleasure that he had heard his most suc-
cessful exposition of the first budget which he had had to
bring before the House.—(Hear, hear.) He could, in the
first place, say that he concurred in the views expressed by
the Right Hon. Gentleman as to the difficulties which sur-
rounded an individual who filled the reseonsible situation of
Chancellor of the Exchequer. He (Sir C Wood) had been
for five years the object of that disposition to prey and plun-
der to which the Right Hon. Gentleman had alluded; but
he promised the Right Hon. Gentleman that he would be
no party to any attempt to prey and plunder upon him.—
(Hear, hear.) He confessed he thought that, upon some
occasions, no slight disregard had been shown to the true
interests of the country in the attempts that had been made
to repeal taxation which the finances of the country could
ill spare ; and, though he might at another opportunity be
disposed to do so, he would not upon the present occasion in-
terrupt the good feeling which he hoped would prevail by
alluding to parties who had taken their share in the attempt
to make a pull on the Exchequer. The Right Hon. Gentle-
man had truly stated that it was not easy to find a tax which
would be palatable to the people ; but when he said that
those on the Opposition side of the House had no such just
ground for the course which they had taken in the re-
duction of indirect taxation as those who objected to re-
duce direct taxation, he thought that the evidence the Right
Hon. Gentleman had himself read afforded the most complete
justification of the course which they had taken. He had
come down prepared with some statements as to the
success of the policy for the last ten years, but he thought
it utterly needless to refer to them.— (Cheers.) He appealed
to the Right Hon. Gentleman himself; who iu the fairest and
most candid manner had dealt with the subject, in corro-
boration of what he stated. Since 1842 the duties reduced
or repealed had been—Customs, 9,000,000/. ; Excise,
1,500,000/. , stamps, 500,000/. ; and taxes 1,200,0001.;
making a total reduction of 12,200,000/. The reduction in
the produce of those taxes, however, had only been
1,400,0001., the ordinary revenue (excluding income-tax)
being in 1,42 48,000,000/., and in 1 a 52 46,600.0001.
(Cheers. ) He appealed to the Iliuse, he appealed to the
ceuntry—to the most prejudiced of the opponents of the
policy which for the last ten years they had pursued—as to
tha result of that policy. A more satisfactory case than
that made by the Right Honourable Gentleman
could not have been shown, and he trusted that with the
evidence of the Right lion. Gentleman before them, fairly,
candidly, and honestly given, the counties would come to a
conclusion as to what the proper policy had been, and would
be for past and future Finance Ministers of this country to
pursue.—(Cheers.) He had always said that he thought a
change of Government was attended with many advantages,
and he was glad to see the Right Hon. Gentlemen opposite
come to that table with the responsibilities of office upon
them.—(Cheers.) Tnere had been many allegations of the
universal distress among every class of the community; but
they were told to-night, upon the authority of the Right
Hon. Gentleman, that the country generally was in a state
of great and increasing prosperity, and the increasing reve-
nue was the best proof of the truth of that assertion.—
(Cheers.) With regard to the window-tax, and the substi-
tution of the house-tax for it, ho would just remind the Com-
mittee that the statement which he made last year, that the
benefit of the change would be more felt in agricultural coun-
ties than in the towns, had been fully borne out by the result.
Taking London, Middlesex, and Lancashire, as representing
the town districts, and Lincolnshire, Norfolk, and Essex the
agricultural counties, he found that in the first three districts
the house-tax had realized 260,01 0/. as against 290,000/.
from the window- tax; while in the three agricultural coun-
ties the actual produce of the house-tax had been 20,000/.
against 77,000/. formerly received flame the window-tax.
—(Hear, hear.) The Right lion. Gentleman had borne
most valuable testimony as to the assessments under the in-
come-tax. Time after time had they been told that the
falling off in the income-tax was a proof of the decrease of
prosperity. He remembered that the Noble Lord at the head
of the Government had insisted in the strongest way that the
diminution in Schedule D contradicted all their assertions
about prosperity; that more trade might be carried on, but
that it was carried on at a loss; and an Hon. Gentleman
whom he saw present had year after year published pam-
phlets to show that the balance of trade was clearly against
this country. Ile trusted that they should hear no more of
these exploded notions.—(Hear, hear.) The Right Hon.
Gentleman stated, that supposing the income-tax renewed,
he should have a surplus of 461,0001.; and with that amount
of surplus certainly it would be madness to attempt any re-
vision of taxation. He thought that the Right Hen. Gentle-
man had fairly estimated the probable iccosne. If he had
erred at all it was in taking the increase in the Excise
perhaps a little too high. Ile thought, also, that the
Right Honourable Gentleman would find himself very
much disappointed in the estimate which he had formed
of the probable expense of the Kafir war. The proba-
bility was that the 460,000/. would be pretty nearly ex-
pended by the end of March, and it was going on at the
rate of almost 50,000/. a month. He thought the Right
Hon. Gentleman was quite right in, as he proposed, renew-
ing the income-tax for a year, and leaving everything else
exactly as it was.—(Hear, hear.) He thought the Right
Hon. Gentleman had judged most wisely in taking that
course; but, from the inconvenience that arose last year in
consequence of the late period at which the assessments
were made, he should have recommended that the resolution
for the renewal of the income-tax should have been broug'at
forward at an earlier period of the year. He trusted, how-
ever, that the House would see the propriety of the course
the Right Lion. Gentleman had proposed, and would give
every facility to the resolution being passed into a law. He
gratefully acknowledged the boldness with which the Right
Hon. Gentleman had spoken of the measures of last year,
and also the kind manner in which he had addressed him-
self to him (Sir C. Wood) personally, and his confession of
the success of the recent financial and commercial policy.
He took it as a strong augury that no change would be at-
tempted ; and, entirely approving of the course which the
Right Hon. Gentleman proposed for this year, he would say
that, so far as depended upon himself, and those for whom
he could speak on his own side of the House, every facility
would be given to passing the resolution proposed by the
Right Hon. Gentleman into a law with the least possible
delay.—(Hear, hear.)
Mr. HUME could not understand what had made the
House so very much satisfied with the statement of the
Right Hon. Gentleman.—(" Hear," and a laugh.) If the
Right Hon. Gentleman had proposed to relieve anyrcelatshseoref
her Majesty's subjects from the burdens they now
.bo ,
might have been some satisfaction;
on. With Gentleman had not made any such propositi
eoeuuldldbehequite
at all, let
but the Right Hon.
re-
gard the hieuhte-tax, it were to. be renewedl
asked for the ap-
proveas easy to collect it; and, that bein
it be on a more just and sound pri.nciplee.,
hotww
surprised that the
Right re-
newalof it on its present basis 7 }l
of the Right Hon. Gentleman,_gewwshaos
made that proposition
Right Hon. Gentleman should have
after having stated, as he had done, his conviction of the
injustice of both branches of the tax. He (Mr. Hume)had believed until almost within the last quarter of
an hour that the Right Honourable Gentleman himself
had no intention to renew it. If without it there
would be any deficiency, then let him supply it by
placing
taxation on a proper footing. He held in his hand
a paper showing that, while the personal property of
the country was paying millions to the revenue, the real pro-
perty was not paying a farthing. In the last fifty-four years
personal property had paid not less than 85,650,000/., while
real property had gone without paying a shilling. At the
same time he must confess his satisfaction that
the Right
lion. Gentleman had
completely verified what those who,
like himself, were advocates of free trade, had foretold from
its adoption, and that the reduction of taxation had led to
the increase of revenue, by the admission of a larger pro-
portion of articles required for the comfort and luxury of
the people. If ever a speech was made to the House
proving the truth of that satisfactorily it was the speech of
the Right lion. Gentleman. He could not wonder at the
glum manner in which Hon. Gentlemen opposite had
wasre-
re-
ceived it.—(A laugh.) In his opinion, however,
.e
highly to the credit of the Right lion. Gentleman that
hoped the
had stated the true result of the inquiry,
and
he
eti some Right Hon. Gentleman would now look bacekstweidt
so severely
re-
gret and remorse for having censured andtr
this system for
the Right Hon. Baronet who introduced
The Right Hon.
having changed his opinion.—( Hear, hear.)now stood in
Gentleman, as Chancellor of the Exchequer,
,tronet
did after intro-
the same position as the Right Hon. B
in the financial and com-
ducing that most important changenat
That Right Hon. Baronet
mercial policy of the country.
I fur having been what was
almost to de
was persecuted death fur
Hume)
called a renegade to his principles; but he (
gave a man credit who, havin
been in error, and becoming
gtiness to come forward and
t had the man.
convinced of
that error. The Chancellor of the
state his conviction of
that, and he (tlir. Hume) highly ap-
provedExshequer had done
hadtaken. It might tbe •
the course he
of
satisfactory to those who supported the Right Hon. Gentle
man, but he was confident that upon reflection they also
would see fit to change their opinions, and to approve of thepolicy the Right Honourable Gentleman had so manfully
adopted, and now proposed to continue. But let him ask
the Right Honourable Gentleman upon what principle he
could denounce the system of direct taxation, and object to
the course of relieving the country from indirect taxation,
as ho had done? Everything the Right Honourable Gen-
tleman had said that evening, every public document he had
referred to, proved the propriety of reducing that indirect
taxation. He had no hesitation in saying that if the Right
Hon. Gentleman would reduce the duty on tea to Is. per
pound, he would find it benetioim to the revenue; and ho