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

ending on June 30 which immediately preceded the_impo7

sitionof the duty, and I compare with the receipt of those
12 months the receipt for the corresponding 12 mouths its

the three years ending on June 30 which have fallen since
then ; and these figures will show pretty exactly—l might

have been still more exact, and produced a statement more

favourable to my own argument—but these figures show
with sufficient exactness what is the real state of the

case. In the last year of the 85. duty—the year eliding June
30, 1859—the receipt on British spirits was £9,410,000.
Under the new duty in 1860 it was £9,750,000, in 1861 i
was £9,702,000, in 1862 it was £9,983,C00, and in 1863 it

was £9,837,000, If m e take the two years together which

preceded the new duty they would show about £9,600,000:;
and some, if not the greater part of the anticipated revenue
has been received.

Sir S. NORTHCQTE—Up to what period is the last
year's statement ?

The CHANCELLOR of the EXCHEQUER—Up to
June 30. It is, of course, an estimate upon the last quarter
of the year ; but the estimate is based upon good grounds,
and may be taken, I think, as the produce of the revenue in
that period. The material point, after all, comes to this—
at least such has been our view—since the change in the law
is the failure to receive the lull amount.of revenue which

was anticipated from the additional dui), due to illicit dis-
tillation? (Hear, hear.) That is the only question, I think,
which ought to exercise an influence upon the judgment of
the house. lam not award that we have ever adopted the
principle with regard to spirits which we have adopted with
regard to commodities in general that are consumed by the
public—namely, the principle that it is desirable to raise the
money we want off as large an area of consumption as pos-
sible. I think the principle of Parliamentary legislation with
respect to spirits has rather been that we should raise the
money which we wart off as small an area of consumption
as possible, only taking care that we do not stimulate illicit
distillation. That is the essential limit to be imposed upon
legislation. Now, upon that question I am, of course, very
much dependent upon those whom I consult; but this I can
say, that whenever allegations of illicit distillation have been
made to me by those interested in the trade, or by others,
we have invited the communication of facts and details,
which we have usually and almost uniformly been unable
to obtain, and that the firm conviction of those who super-
intend the collection of the revenue in the three king-

doors taken together, founded upon the information
they derive from their large staff of very intelligent officers
and likewise from that most respectable body, I must say,
the distillers themselves, though not with uniform testi-
_

mony so far as they are concerned—l say the conviction of
the revenue departments is, and I fully share and am pre-
pared to defend that conviction, that there never was a
period when illicit distillation has been so small as during
the last three years. (Hear.) It is a matter of very consi-
derable interest to draw a contrast between the effect of dis-
tress—and I think it was pointed out that distress had an
important influence—upon the Excise and upon the Cus-
toms revenue ; and we find the revenue from malt and the
revenue from spirits, as far as they are dependent upon.
consumption, show that effect before the revenue from tea,
sugar, and tobacco. I think it is impossible fully to com-
prehend these figures and this state of facts—this compare-
ratively unchecked amount of Customs' revenue and this
very serious check to the revenue from Excise—without
taking into view a circumstance which seems to me esta-
blished by full evidence, and which is undoubtedly of a gra-
tifying character—namely, that there is slowly, gradually,

but steadily proceeding a change of taste in the country,
and a transition from the use of the strong and the more
inflammatory beverages to milder and more wholesome

drinks. sir, comparing the general revenue ofthe year which
has last passed with the revenue of thelyear that immediately
preceded it, I will endeavour to present the figures to the
committee in what I believe to be a perfectly accurate form.
I need not observe that it is impossible, in the dry state-
ment of figures which appears on the last day of the finan-
cial year, to convey this explanation. It is not possible to
give this explanation to the public except on the authority
of the Executive Government. Hence arises a good deal of
misunderstanding, the main source of which is in the item
called Missellaueous. It is commonly supposed that this
item consists of various branches of revenue which it is not
worth while to enumerate with specific names, and which,
therefore, are combined under this one head; but in
point of fact, the proper term is " Miscellaneous Receipts,'3,
and, though the distinction may appear fanciful between
receipts and revenue, there is a distinction, and it is this :
A very small portion of this item consists of revenue at all
—this year, only £200,000 or £300,000. With respect to the
great bulk of the amount which appears under this head, it
partly consists of the repayment of money which has been
voted by the house, and a very large portion of it is made
up of repayments made by the conversion into money of
what are called "old stores." Therefore, the safer way to
compare the revenue of two years is to begin by deducting
from both accounts what appears under the head " Miscel-
laneous." If the committee will follow me, bearing that in
mind, I will endeavour to give them the revenue of last year
as compared with the revenue of the year preceding, This
is a matter of ie p .rtance, for it enables us to measure the
elasticity of the resources of the country. The gross revenue
for the year 1861-2 was £09,674,000 ; but if we deduct the
miscellaneous revenue and the China indemnity, the real
revenue, properly so called, was £67,927,000. The gross
revenue for the p ar 1862-3 was £70,603,000; but deduct-
ing the miscellaneous receipts, the China indemnity, and a
sum paid to the credit of the revenue from Stamps, which
did not appear in the previous year, the real revenue was
£07,790,000. As the figures which appeared in the news-
papers were too favourable to the year 1862-3, so the figures
which I have now stated, if left without correction, would
be too unfavourable to it, because, to obtain a fair compari-
son, we must deduct so much of the revenue of 1861-2 se
corresponds with the amount of taxation remitted in 18623.
The sources of loss by remission are three. In the year
1861.2 there was one quarter's income tax at 10d., which
afforded an additional sum of £350,000. That was lost to
the revenue in 18 )2-3. Then, by the remission of the duty
on paper there was a sum of £351,000 lost to the revenue
without deducting drawbacks. Again, there was a sum
of £241,000 for hops, and there was one of £152,000 for
drawback allowances; making in the whole £942,000,
which must be deducted from the revenue of 1861-2 in
order to make a fair comparison. When that is done
the relative amounts for the two years will stand :
For the year 1861.2, £66,985; for the year 1862-3, £67,790,
showing an increase of £805,000 in the revenue of the year
1862-3, not a very large and striking increase, but one
which, under all the circumstances, I think eminently satis-
factory. (Hear.) Certainly it is an increase which I could
not for a moment have ventured to anticipate 12 months
ago if I had been aware of the severe distress which was to
continue and be aggravated in Lancashire and Ireland.
(Hear, hear.) I need not trouble the committee with de-
tails of what the growth of the revenue has been in each of
several years from 1858 -9, but I may observe that the
amount which I have just stated as the increase in the year
1862-3—namely, £805,000, has been about the average an-
nual increase for the last four years. (Hear, hear.) There is
one branch of the revenue on which I will say a word to
the committee. It is material to see what has been the con-
sequence to the revenue of the great changes which have
taken place since '53.59. In 1858-9 the Customs' revenue
amounted to £24,118,000, or, deducting the charges for col-
lection, £1,063,000, to £23,055,000, In 1860 extensive
changes were made in the Customs' revenue, which involved
abolitions and remissions amounting to £2,450,000. In 1862-3
the Customs' revenue amounted to £24,034,000, or, deduct-
ing charges £991,000, to £23,043,000 against £23,055,000 in
1858-9; the year before £2,450,000 of duties had been re-
mitted. (Cheers,) We now come to the account of the ex-
penditure and revenue for the current financial year. (Hedser,,
hear.) For the year the charge for funded and unfun
ce ornhaturiet :ant
debt, acc)rding to the present state of the
941a0
000;
£26,330,000; the Consolidated Fund charges, £_,,,imates,
the Army Estimates, £15,060,000; the Navy
721,000 the
£10,736,000 ; the Revenue and Stami to the house,
Miscellaneous Estimates already
other presentedmiscelfaneous estimates,
£7,692,000. There are some
mstaatteest,owtbhei
are certain items con
with such precision.
There
not yep finall nee"
ttmihvaeei
pna r
olmy
pc
connectedouina amount
with those estimates which are
isposed
off,
tome public buildings;
wsittahte what it may be their duty
andli ih the
second place thered.
The arrangements which
yet been settle the Galway
r.sme ironical criesf
of Hear, hear)—
stare.' as to enablenot yet
the are
so far sa Government to make a posi-
tive the arrangements with respect to ‘.09
to the West India mail
service are still under consideration.
observe, therefore, that I
figures which relate to the cannot present to them the precise
se matters. There is a bill be-
fore Parliament which I hopeproposes for the benefit
further of the public to enable us to make a
transfer of stocks with the view
of ccaverting per-
petual into terminable annuities.
If that bill pass it will
add £140,000 to the annual
ch arges, though for this year
the amount will be only about t
it
ems.—the packet service, which we may put down at be-
tween £900,000 and one million, the other miscellaneous
charges which fare not at present before the house, and the
charge connected with the funded debt—we may estimate
them at £1,270,000, which, added !o the £7,692,000, will
bring the miscellaneous up to 8,962,000, and give us a
total of £67,749,000 as the estimate for the year 1863-4. As
the statement forms in some measure an answer to the re-
solution of the house, I ought to put this estimate of ex-
penditure in comparison with that of former years. It is
less than the actual expenditure for 1862-3 by £1,553,000,
and higher than that of 1858 9 by £3,085,000, although the
charge for the debt was then greater by £2,197,000.
THear,be
hear.) The estimate of revenue stands as follows :
ose
Customs revenue estimate is £24,180,000. For theptutropthe
of affording a clear understanding of this
ateees oout n
all taxes
committee, I assume a renewal at the present rates
which expire this year. In estimating the Customs at
t in the
£24,180,000, there is taken into accottlfil the
ate itaalteration
effect on the
tobacco duties. It is not easy
to
es
Which sum is included in
I take it at £lOO,OOO, w
• • xl7 600,000. After
revenue, but
te for Excise is ,
the estimate. The estima
a naturally be asked why
what I have already said, !tmat
ya greater amount than it
should estimate the Exciseac,„l Bads() receipts for the last
produced last year. The
they were sutject to the
155 000, but pay-
year were £l7) arrival in the Exchequerof •
anterior to their various
went,
deductions, such as from £150,000 t 3 £160,000
.The outstanding on account
of hop drawbacks.
year is better than th
portion of the mal
duties co 1110 current- •-e cOrrespoladiug