The Sun.
London, England, 1863-04-17 00:00:00

, .
during the tear years", in order to meet the public expendi.
tare, has been £7,212,000. And having referred to the state
of the balances, I may here say that it is tny intention to
submit to tilt house resolutions for paying off the million of
Exchequer Bonds which will fall due in May ; and that not
in the leastilegree upon the supposition that there is any
special obligation connected with that particular descrip •
tion of debt, but simply because I think it will he a con •
venient operation. It is also my intention, I am bound to
say, viewing the state of the country, and especially of
Lancashire, to ask .the house for power to re-borrow that
money in case of need during the year, but without any
serious expectation at present of being called upon to exer-
cise it. Well, £7,212,000 is the sum that was used up in
the course of those four years for extraordinary expendi-
ture. On the other side we have redeemed out of the
balances an amount of debt equal to £1,883,000, and out
of expenditure in the form of terminable annuities the
amount redeemed, or rather paid towards redemption, has
been £5,501,000. The total amount of money, therefore,
taken out of the income of those four years for the redemp-
tion of debt has been £7,384,000, against the sum which the
same four years have had applied to their own uses, though
not derived from the taxation of the country—namely,
J. 7,212,000 ; or, in point of tact, the two sides of the account
are as nearly as possible balanced. During those four years,
it is fair to bear in mind, we had t defray extraordinary
charges from the resources of the year, arising from two
principal causes. We had t,o meet £8.000.000 of direct war
expenditure, chiefly for China—an account which, as far as
I am aware, has never before in our financial history been
borne out of the resources of the year. We likewise had to
meet heavy expenses for the reconstruction or transforma-
tion of our naval and military departments ; and, according
to the best computation we can frame, we have had on that
account to spend £8,0J0,000 mere, making a total sum of
£16,000,000 during the four years paid away for those pur-
poses. But, sir, the house will, I think, expect that I should
make a statement to them—after the varied experience of
that period—upon the condition of one or two branches of
our trade. And certainly a portion at least of the facts to
which I have to call their attention appears to Inc to de-
serve all the attention that can be given to them. The re -
peal of the paper duty is a measure of which it is very diffi-
cult to trace the effects witn precision. In point of fact, it is
only by a very slow process that the consequence of repeal-
ing an Excise duty is usually developed. In the case of
glass, soap, and other articles, it has been so, and I have no
reason to suppose it will be otherwise in regard to paper.
But it is remarkable that although the diminution of the
export trade in cotton had necessarily led to a great decrease
in the consumption of paper connected with that trade, which
is extremely large, yet we have the evidence of a very large

eichide altogether Ireland, because Ireland was not fated
in 1842, and we-did; therefore, disturb the computation. I
elso exclude incomes below £l5O for the same reason. The
Income tax, at 7d. in the pound in 1842, attaching to Great
Britain only, and only to incomes above £l5O , was assessed
upon an amount of income reaehin4 £156,000,000. Upon
the very same area, with the same limitations, in 1861 the
amount of assessed income was £221,000,000, and I am not
aware that there has been any change in the machinery of
the tax, or any improvement in the powers of levying the
tax, as compared with the powers of escaping it, that will in
any way account for the difference. The difference amounts
to no less than £65.000,000 of annual income, or two-
sevenths of the whole annual taxable income of the country
itt the area described, That is a most remarkable result, but
there is a feature of that result which, when carefully ex-
amined, is yet more remarkable, and that is the accelerated
rate of increase in the last year. I again invite the attention
of the committee for two minutes. I compare the two periods
before 1853 and since 153, when the basis was altered. In ten
years from 1812 to 1852 inclusive, the t +stable income of the
counts y, as nearly as we can? make out, increased by 6 per
cent ; but in 8 years, from 1853 to 1861, the income of the
country again increased from the basis taken by 20 per cent.
That is a fact so strange es to be almost incredible. [Sir S.
Northcote.—lt is Australia.] Australia I Oh, no; the
right hon. gentleman is lost in the depths of heresy on that
point. If I may presume to suggest a cause, I would sug-
gest two—first of all the enormous, constant, rapid develop-
ment of mechanical power, saving human labour, and the
extension of machinery ; but that has been in opeeation for
the last 100 years, extending on all hands the economy of
labour; the real and new cause that has been in ope, ation
has been the legislation of Parliament setting free the in-
dustry and intelligence of the British people. (Hear.) That
is the state of the case as regards the wealth of this country.
I must say for one, I should look almost with apprehension
and with pain upon this intoxicating augmentation of wealth
and power if it were my belief that it was confined to the
classes who are in easy circumstances. This takes no cog-
nizance at all of the condition of the labouring population.
The augmentation I have described, and which is founded,
I think, upon accurate returns, is an augmentation entirely
confined to the classes possessed of property, Now, the
augmentation of capital is of indirect benefit to the labourer,
because it cheapens the commodity which in the business of
production comes into direct competition with labour.
(Hear.) But we have this profound, and, I must say, in-
estimab'e consolation, that while the rich have been growing
richer the poor have been growing less poor. Whether the
extremes of poverty are less extreme than they were I do not
presume to say, but the average condition of the British la-
bourer, we have the happiness to know, has improved during

increase in the consumption of paper in this country. There

he last 20 years in a degree which we know to be extraordi:

is enough, I think, entirely to justify the faith with which nary, and which we may almost pronounce to be unexampled
those who urged the repeal of that duty have looked for- in the history of any country and of any age. (Cheers.) That
ward to its probable results. I for one am surprised, I con- is a result upon which we are entitled to look with the greatest
fess, at the amount of foreign paper imported into this satisfaction and with the greatest happiness, because, after
kingdom. Our imports of foreign paper of all descriptions all, let us recollect that when we speak of the expenditure
in 1856 were 15,767 cwt. In 1862 they were 193,639 cwt. of Governments we speak of that which is taken out of
Those imports form very nearly 20 per cent. of what the the earnings of the people, and there is hardly any country
manufacture was in the days of the Excise duty. But what and hardly any period in which these earnings have ex-
is most satisfactory is, that together with this vast increase tended to give to the labouring community a sufficiency,
in the imports of foreign paper there certainly has been a much less a general abundance, even of the prime necessa
considerable increase in the manufacture of British paper, ries of food, of clothing, and of fuel. And if we have been
We have no power, as the hause is well aware, of following enabled by proceedings of ours, taking within these walls, to
minutely the amount of paper that is made; but raise the standard of comfort, and to diminish the fearful
we are able to do two things. We can first of all follow gap which existed half a century ago between the absolute
carefully the amount of British paper which is exported, necessities of the labouring man and his means of supplying
and next we can register and record the amount of the them, we have accomplished a work for which the name of
materials brought into the country for the manufacture of the Parliaments of this time will be blessed through all ages.
paper. The amount of British paper of all kinds that was (Cheers.) Many years ago, Sir Robert Peel referred with
exported in 1858 was 115,491 cwt. In 1862, the first year the greatest authority to the devouring character of the naval
of the repeal of the duty, the amount exported was 149,326 and military establishments maintained by the Governments
cwt., showing an.increase of 34,C00 cwt. A word as to the throughout Europe. lam afraid that since the time in which
import of rags—and 1 trust the committee will not grudge he spoke the evil has grown much more intense than it was,
a moment for this point—(hear, bear)—because it is really for in no quarter have those establishments diminished, but
tragical, it is almost funereal, to revert to the dark anticipa- in almost every quarter they have increased, and financial
tions once entertained as to the total banishment almost of deficits have become almost the role in every country.
that valuable article from the markets of this country. In (Hear, hear.) Great efforts have been made in France to
1856 the import of rags for making paper into this country retrieve them; but, although we know that great energy
was 10,287 tons, In 1860 it had risen largely—viz ,to and talent have been used with that object, it remains yet to
16,154 tons. lam bound to say that that increase in 1860 be seen to what extent those eff .rts will be successful. Italy,
was due in a very great degree to the anticipations enter- with her fortunes and her destinies yet hanging in the
tained till the month of June that the duty would be con- balance, is, unhappily accumulating debt from year to year
tinned. However, in 1862, the first year of the repeal of the at the present moment with a rapidity which must make her
paper duty, the import of rags rose again to 23,943 ton.. best and fastest friends tremble. (Hear, hear.) That is what
(Hear, hear.) What has taken place during the past year we see going on abroad. I observe that M. Fould, in a recent
with respect to the paper trade ? It is no discredit at all to address to the Senate, speaks in terms of deprecation of
the British papermakers, but it is a very marked and in- what he calls expenditure of emulation, and he expresses a
structive sign of the operation of excise duties in a manu- hope that such an expenditure is likely to be diminished.
facture of this kind, into which science is introduced, that (Hear.) I am sure it is easy for every right-miaded man
we should compare the the fate of the British papermaker moat fervently to re-echo that prayer. (Hear.) It is impos-
in his own country, in the late International Exhibition, sibie to deny the relation which exists between the general
with the fate of his foreign rival. The British papermaker expenditure and between the defensive and military expen-
at that Exhibition was on his own ground; the foreigner
diture of the different countries of Europe. Of course it
had to come here ; and it is natural to suppose that the has been the duty of her Majesty's Government, in forming
their estimates of expenditure, to consider first the honour,
British manufacture was more fully represented than the
foreign, At any rate, what was the state of facts in regard the interests, and the security of the country, and along
to the medals and honourable mentions, delivered, I pre- with that honour, with those interests, and with that secu-
sume, by a competent and impartial jury ? Eight medals, I rlty, the deliberate judgment given by the House of Cora -
believe, were awarded to British papermakers, 16 to French mono in the course of the last Session of Parliament. But
papermakers, and 15 to Prussians. That appears to me subject to those considerations 1 trust I may also say on my
to be a significant and important fact with respect to the own part and on that of my colleagues, after reading the
operation of excise duties and restrictions on a manufac- eloquent denunciations of the Finance Minister of France,
lure giving scope for the application of science. As re- that we have additional satisfaction in submitting a plan
spects the article of wine, there has been a small increase which contemplates not an inconsiderable diminution in
of £30,000, satisfactory as far as regards revenue, and the burdens of the people if we may hope that that diminu-
in quantity of 109,000 gallons. French wine hassomewhat tion will be accepted in other lands, and be construed there
diminished, which was quite to be expected after the very as a friendly acceptance of a friendly challenge—(loud
large increase that took place in former years. Portuguese cheers)—if we may hope that what we propose, and what
wine has also diminished. The great increase during the Parliament shall accept, will become an innocent but power-
last year has been in Spanish wines, amounting to 290,000 ful provocative to similar proceedings and similar tenden-
gallons. (Hear, hear.) One word with regard to what will cies in other countries. (Cheers.) It will be an additional
be viewed with painful interest, our trade with the United satisfaction to us over and above the benefit which, as we
States, because of its importance to the country, and the trust, the British people will derive from an alleviation of
effect produced on it by the secondary action of those cala- their burdens, if we may hope that we are contributing to
mities from which the continent of North America suffers so strengthen tendencies which may exist elsewhere on behalf
frightfully ; and also with regard to our trade with France, of peace, of order, and of civilisation, and that we are assist-
because this is the first time when it could be said that it has ing, in however humble a degree, to allay unhappy jealou-
been a whole year at work. The export of British goods to sins and to produce a better and more solid harmony among
the United States in 1859 was £22,553,000 ; in 1862 it was the great civilised nations of the world. (The right hon.
£14,398,000, showing a decrease of £8,154,000. The export gentleman concluded, amid loud cheers, by proposing the
of foreign and colonial goods to the United States had in first resolution for the increase of the duty on chicory.)
the meantime increased. They were in 1859 £1,864,000, in Mr. WHITE expressed the strongest satisfaction with
1862 they were £4,052,000, an increase of £2,188,000, but the admirable budget announced by the right hon. gentle-
nearly the whole of that increase was represented by the man. It was satisfactory to feel that they had one states-
article of cotton wool, taken from this country to the United man, at all events, in power who consistently carried into
States, which was no less than £1,721,000. The case of our effect when in office the proposals which he advocated when
trade with France is very different. In 1859, the last year in opposition. He thought the income tax a very good one,
before the treaty, the export of British commodities to but people would never be made to understand that there
France was £4,754,000 ; in 1860, when the treaty was in was not inequality in the mode in which it was levied, He
very pertial operation indeed, the exports were £5,250,000; believed that the working classes still paid an undue pro-
in 1861, when the treaty took effect, towards the close of portion of the public burdens. In conclusion the hon. gen-
the 3 ear, they rose to £7,145,000, without including the tleman thanked the Chancellor of the Exchequer for the
article of corn, which made a further increase ; but as it was wise and beneficent policy he had adopted.
entirely due to the casualty of a bad harvest in France, Lord R. MONTAGU complained that the whole scope
whereas it was a great supply from foreign markets to this of the Chancellor of the Exchequer's policy was to lighten
country, it would disturb the calculation if I took that into the taxes on the rich, and not to touch those which pressed
account. The exports rose to £7,145,000, showing an in- upon the poor.
crease of £2,391,000, and in 1862, with the treaty in opera- Mr. CRAWFORD on the other hand declared, speaking
tion all the year, again rose to £9,210,000, showing an in- ing in behalf of a great mercantile community, that he was
crease of £4,456,000; in point of tact, doubling their amount prepared to express perfect concurrence in the financial ar-
before the treaty. That does not set forth the whole of the rangements of the right hon. gentleman. Ho approved of
advantage, because in foreign and colonial produce the the distinction which had been drawn between tea and sugar,
augmentation was yet more remarkable; for I need not the more especially as any increase in the consumption of
remind the committee that the foreign and colonial pro- tea led to a still larger increase in the consumption of sugar
duce that we send to France we have ourselves obtained by and also of the abolition of the petty charges in commerce.
exchange for British produce, so that increase in the Mr. VANCE urged that the tax on spirits was retained
export of foreign and colonial produce is effectively an at so high a point, that illicit distillation was the conse-
increase in the export of British manufactures. quence. He hoped that the Chancellor of the Exchequer
The foreign and colonial produce sent to France in 1859 was would take the subject into consideration.
£4,800,000, and 1862, £12,614,000. The total amount of Mr. SCULLY complained that, instead of diminishing,
exports to France, which in 1859 was £9,561,000, had in the right hon. gentleman proposed to increase the taxation
1862 gone up to £21,824,000. (Hear, hear.) In fact, while of Ireland. Such a thing had never before occurred in any
we had a decrease in the total trade to the United States of country as that which had taken place in Ireland, namely,
£6,618,000, that decrease was a great deal more than made to have upwards of two millions of her people cut off since
up by the increase in the trade to France, for the augmenta-
1847. He was frequently asked in Ireland why the fic-
tion was £12,265,000. The effects of the cotton famine on vernment did not encourage some remunerative system of
our general trade of course it is impossible for us to miti- emigration, so as to remove the unfortunate people of that
gate, so far as I know, by legislation ; and I took the oppor- country where they could obtain some return for their la-
tunity in 1861 of showing the immense stimulus that had hour. There were three ways by which assistance could
even then been produced to the total trade of the country be given to Ireland, namely, by [Arterial drainage, by a
by the reduction of Customs duties in the former year, and judicious system of emigration, and by giving encourage-
now in 1863 lam able to point to results operated by the ment to public works, especially railways. If these enor-
arrangements made by France, under the able management mous taxes were to be levied on the country, he wished to
of my hon. friend the member for Rochdale—(cheers)—and have the working classes benefited by them.:
I confidently put it to the committee to justify her Majesty's Mr. POW EL L regretted one omission in the speech of
Government in the opinion they entertain that it was a the Chancellor of the Exchequer, namely, no announce-
matter of vital consequence that we should endeavour to ap- ment of an intention to reduce the duty en fire insurance.
ply to the trade and industry of the country that stimulus He wished also to know whether his scheme of taxing cha
which we believed and knew would be given through the rities applied to endowed schools and grammar eehools. If
medium of judicious reduction and abolition. It is quite so, he trusted that when the masters' salaries were paid out
true that in 1860 we were obliged to have an additional ld. of the balances they would not be called upon to lay in-
of income tax because of these reductions, but I think it come tax twice over.
was worth having that additional ld. when we consider that Col. BARTELOT T hoped another year would not be
the effect of that legislation has been that in this period of •allowed to pass over without the right hon. gentleman
severe trial to the industry of the country, not millions only, dealing with the malt tax with a view to its reduction.
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but tens of millions of that industry, have in all probabi-
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lity been put in motion, and kept in motion owing to the
legislation then adopted. (Hear, hear.) If the house will
bear with me one moment longer—(hear)—l will draw debt by paying off interminable annuities.
their attention to a statement that will, I think, at once in- Mr. P. A. TAYLOR gave his hearty thanks to the
terest and surprise them. The income tax has now been in Chancellor of the Exchequer for the alteration of the tea
operation for 19 years. It was imposed partly with a view duties. He regretted, however, that he had not adopted
to supply a defi3iency, but in a great degree with a view to the same policy with regard to sugar. With respect to the
developing the trade and industry of the country, and income tax, he thought the country had a right that it
thereby bringing about an increase in the wealth and corn- should be either abolished or made permanent and equit-
fort of all classes of the community. After 19 years, and a able.
succession of cliff:rent assessments, we are now in a condi- Sir H. WILLOUGHBY had heard with great pleasure
tion to form some judgment as to the additions that have that there was a bona
,fide surplus of £3,874,000. He did
been made to the means and resources of the country. I not in any way quarrel with the mode in which the right
have made it my study to examine the subject with as much hon. gentleman proposed to dispose of that surplus, as to
precision and rigour as I could. The statement I will which it was much to
be regretted
that the house had no
submit may be capable of being further sifted in such a further information than that which they had heard from
manner as to modify in a greater or less degree its results, the Chancellor of the Exchequer himself. He cordially
I don't pretend it is infallible ; I am sure it is remarkable ; , joined in the wonderment excited by the right hon. gentle-
I believe it is correct,—at least no pains have been spared to 1 man's statement of the increase in the expenditure during
make it so. In order to be as accurate as possible I don't i the last four years; but had the right hon. gentleman gone
compare the entire income-tax 011862 with that of 1843, but further back, and instituted a comparison between the ex-
I compare the income-tax minus that portion of it which penditure of 20 years ago and the expenditure of the present
only represents public taxation, because it is quite plain if day, the wonderment would have been infinitely greater.
we have several millions added to the income in England (Hear.) It was as clear as the sun at noonday that the ex-
from public establishments that does not represent additions penditure had been carried to an extent utterly unjustifiable
to the real wealth of the country. Therefore, I take ache. in the present condition of the country. However, it was too
dule Aas representing property, railways, mines, &c. ; B late as regarded the present year to effect any reduction,
as representing farming profits; D as representing corn- but in another year they must begin earlier, and let the de-
merce and professions ; and so much of E as belongs to mend for reduced expenditure anticipate the denaing for
private establishments that is the basis or area of taxation. reduced taxation. In conclusion, the hon. baronet expressed