The Sun.
London, England, 1853-04-19 00:00:00

land, as she h, .s received a great portion of the benefit .at-
t:.3 of up to the present ti.ee, and
is likely also to profit largely by the remissions I have to
propose to the house. The produce of the income tax. which
will be laid on Ireland under precisely the same conditions
and for the same term as in England and in Scotland—the
produce of the income tax in Ireland I estimate at 460,602
a year; but as the tax will not to levied till June next,
there will be only 230,000/. to come to credit in 1353-54.
I will now give the committee an account of how my esti-
mate stands, .as a whole, with respect to the income tax.
The estimated produce of the tax—supposing there to be
no change in the existing system—is 5,550,006/. Deduct
life assurances (120,000/.), of which one-half only comes to
charge this year, viz., 60,000 ~ there will be left 5,390,0001.
The extension below 1501. we reckon at 125,000/. ; and
the extension to Ireland at 230,0001. ; snaking the total for
the year 1853-54 according to the proposed plan, 5,815,0001.
(Hear, hear.) I now come to another proposal for the aug-
mentation of taxation to which I invite the special atten-
tion of the committee. It is one of great importance. It
involves both economical and social considerations of the
highest nature. I have stated to the committee that we
propose to enlarge our means by new taxation with a view
to further beneficial changes in our fiscal system. That is
one object we have in view. Another object is—and it is
likewise an important object—to meet the public feeling,
which we recognise and share, that the operation of the
income tax is severe upon intelligence and skill as compared
with property. I frankly own my total inability to meet
the feeling which has been excited upon the subject of the
income tax, and that I think I should be guilty of a high
political offence if I attempted it. But let me now point
out to you that if you think that intelligence and skill un-
der our system of taxation pay too much, and property too
little, there are means of equalising the burdens of the
two classes in a manner which would be on the whole safe,
honourable, and efficacious. Sir, I refer to the question
of the legacy duty—(load cheers)—a question which it is
perfectly plain cannot be dismissed from the consideration
of the house. In my opinion it is a question of which the
earliest settlement will likewise be the beet. It requires
settlement. The tax is not just as it stands. And how is
it unjust? I frankly confess that I have always thought
the view of the case, as stated by the hon. member for
Lambeth (Mr. Williams)—who has exerted himself effec-
tively on this subject—(hear, hear)—l have always thought
that his view, if I may stirso without offence—was a
most inadequate view of the state of the case. (Hear,
hear.) The tax is supposed to favour landed property,
which I do not deny; but it also favours property which
has not that claim to favour which landed property
and household property might perhaps fairly urge
as a ground of exemption from taxation. (Hear, hear,
from Mr. Williams). lam glad to hear the hon. member
echoing that sentiment. I wish to set aside the impression
that the question bears on its front the odious aspect of a
question of class. It does no such thing (Hear, hear.)
We propose to alter it, and, subject to conditions which I
will state, to extend the legacy duty to all successions
whatever. (Hear, hear.) With respect to the probate
duty, at the present moment we do not venture to deal
with it. The probate duty itself, I grant you, calls for re-
"form, and if the Government had the means of carrying
out that reform in the present year it would have been
satisfactory to have done so. As it is, we are obliged at
present to postpone it, but we hope that in a future and
early year it will come under consideration. It is said that
the legacy duty is in the nature of a tax upon property.
It is a tax upon property, and beause it is a tax upon pro-
perty it meets the views which have been so much favoured
by a large portion of this house and by public opinion—
namely, that if the income tax is to bear unequally upon
intelligence and skill as compared with property, then that
inequality ought to be redressed in some way or other.
I think this is a safe mode in which to redress that inequ-
ality, and if this is a tax upon property it is divested of
the danger that attends the taxation of property generally.
The mischief of taxes upon property is the liability of a
constant recurrence of those struggles of classes. But in
carrying into effect this increase in the legacy duty you
have this great advantage, that the liability to pay occurs
only within the limitation which the laws of a higher
power have ordained ; that it only occurs once, on the
death of a man ; and that no man can (lie more than once.
(A laugh.) I may be wrong. (A laugh.) But I assure
the committee that it appears to me that this is a most
weighty consideration for those whose duty it is to inquire
how they can best neutralise the social dangers incident to
all questions connected with the taxation of property. You
find the principle of this tax recognised in our law; you
find its operation so limited by the very conditions under
which it exists that there is no reason to apprehend the
disturbing of a fair settlement of these duties, if once
made ; and you will, I think, be of opinion that this is a
fair and right tax to adopt for itself, and that it is one
which in other respects meets, in the best, safest, and
most effective manner, the feeling which is I know is pre-
valent in this house—that the present operation of the in-
come tax is severe upon intelligence and skill as compared
with property. (Hear, hear.) I propose to retain the
present scale of consanguinity, with one change. (Oh, oh.)
We cannot go into that now, because the emotion of the
hon. member might produce a duellum between him and
me that would inconveniently cross the course of my gene-
ral statement, and we must adjourn the consideration of
that to another time. (Hear, hear.) We propose to re:
tain the present scale with one mitigation. Under that
scale relations of affinity are treated as strangers—a son-
in-law and a daughter-in-law pay a duty of 10 per cent.
We propose tp place them on the footing of relations by
blood. (Hear, hear.) We propose that the exemption of
real property should no longer exist, subject to the condi-
tions lam about to mention. The Government propose
that the exemption of settled personalty should no longer
exist, and as we abolish the exemption, I now come
to the question— a most grave one for the Govern-
ment to consider, and which they have carefully con-
sidered—would it be just that all descriptions of pro-
perty, personalty and real property, should be charged
at the same rate of duty to the legacy duty ? Our
opinion is that it ought not, and we think that a dis-
tinction ought to be taken, but not taken exactly as here
tofore. It is obvious, when we regard the burdens upon
property in this country, that there is a great mass of tax-
ation that attaches to property which may be roughly
called—l do not know whether the term is legal—rateable
property, which includes along with real property a great
amount of leasehold, copyhold, and so forth, which is not
real property, but which is subject to the burdens of real
property, which is subject to taxation by tho income tax,
which is subject to the land tax, though in a less degree,
which is Subject to the extra charges on the transfer of pro-
perty, and which is subject generally to all the charges that
affect visible property as contrasted with invisible property,
and which is liable to the great weight of local taxation.
There is between these items a sum of 14,000,000/. or
15,000,000/. of taxes laid entirely on rateable property,
to which not real property only, not land only, but
leashold and copyhold property also are subjected. This
property is now subject in both ways to the legacy and
probate duties, and to all the burdens incident to real
property. The Government propose to amend the whole
foundation of the law, by striking a new distinction, and
by saying that whatever exemption or partial advantage
shall be given to real property shall be given in conjunction
to other property which is now subjected to special bur-
dens. We propose, therefore, to abolish the effect of set-
tlement, so that the person who succeeds to personal
property will pay according to his interest. He will pay
upon the capital, if he succeeds to the capital, and if he
succeeds to a less interest he will pay on the value of that
less interest. The Government, then, thinking it just that
a less amount shall be taken from rateable property than
from property that does not pay these special burdens, have
to ask in what way that distinction can best be struck. It
has long been the policy of this country—the result of a
measure accidentally taken, but not the less beneficial
that visible and rateable property should be in a manner
taxed in the form of an annual charge. Now it would be
obviously highly inconsistent, while you are relieving the
average annual burden, to make up for it by laying a heavy
charge upon the capital. For the Government would then
force and accelerate by the pressure of fiscal enactments
changes in the tenure of this property, and that acceleration
would be, in my opinion. not only unjust, but most cruel
and mischievous in a social point of view. We think that
if anything in the nature of a distinction is taken in the
legacy duties in favour of rateable property as against the
other descriptions of property, the fairest mode in the case
of an estate would be found to be this—that the successor
to real property should be in all cases taxed upon the life
interest only, and on a minor interest if he has only a minor
interest. It is difficult for me to enter upon a full discus-
sion of all the reasons that have led us to that conclusion.
The question is very much connected with the great diffi-
culty of any attempt to ascertain the capital values of
real property. As a matter of fact, under the social
arrangements of this country, our great estates are
settled estates. Leaving this subject, however, for future
discussion, it is our view that our proposal ought to include
the legacy duties, and that some remission ought to be
granted to property which is now subject to a great weight
of peculiar and exceptional taxation ; and we think that
the be'st mode of framing that provision would be to charge
the succession of rateable property upon the life interest
after the deduction of incumbrances. We propose that
the duty should be leviable, as was proposed by Mr. Pitt,
in eight half-yearly instalments. In cases where there is a
succession to a life interest, our proposal would be that the
tax should drop in the case of a new successor before the
new instalment is payable ; but in the case of a succession
in fee the whole will be paid, and if death occurs before
the remaining instalment is paid the duty will be a debt to
the Crown against the estate. That is our proposal with
regard to the legacy- duty. I now come to the results
which we anticipate. The prodUce in the first year will
be small. We do net propose to charge the new duty upon
any succession anterior to the period when the committee
shall adopt the resolution. The law allows 12 months for
the payment of the legacy duties, and it will be impossible
to fix the payment of the duty upon rateable property, if
the committee should adopt it, until after one of the ordi-
nary periods of rent day. The duty in personalty cases
will come in more quickly, but I cannot reckon upon a
larger receipt from the alteration of the legacy duties for
the year 1853-54 than 500,0001. additional duty from this
source. In subsequent years the amount wi Ibe greatly
tliaelarged. I have no objection, as far as I am able, to state
think siddtos
notof rne y investigationggerat. exaggerate
when
say, that
future
thisye a years,
tax,a it if I
is adopted by the committee, while it will add 500,0001.
to the income of the present year 1853-4, will add a ie:
crease of 700,000/. to the year 1854-5, 400,0001. more to the
year 1855-6. and 400 000/. more to the year 1856-7, making
a total addition to
,tOO4OO
2d
the' I.
tohfisnoltmlensesttrtnin permanentoo taxation of the country
per annum. (Cheers.) And
wholly untouched the iliCittee is a tax which will leave
you
aim
at by
and skill of the country.
(Cheers.) It is a tax that stitlehe relief, and more than
tabtut does it withoyut the danger which would
re construction of the
hincomeere relief
xt
necessarily attend that re-construction. (Cheers.)
d Mr. DISRAELI.—Does that apply to the three king-
som?

The CHANCELLOR of the EXCHEQUER. —lt is a
general change of the law in the present legacy
duties, and one which tikes no cognizao at and prok.te
kingdom or the other. One great object of ourallfinof one
policy would be the equalisaticn of the spirit duvanet.,:al
tween the three countries. It is, however, a very dihscuueli
problem. It is very doubtful whether it will over
en-
tirely attained, but such an approximation to it as would
stop smuggling might, perhaps, be reached. It is quite
plain that such an equalisation cannot be obtained at pre-
sent by a reduction of the spirit duties in England. you
must. take the English duties as the ruling point to which
the other must be raised. In the present year we do not
propose to make any change in the English spirit duties,
for that question is so muc mixed up with the licensing
system, and would involve so great a change in the princi-
ple of licenses in populous districts, that for the
present the
.English spirit duties must stand over. But
the Government are of opinion, after a careful con-
sideration with respect to Scotland, that there is no
reason why, in the case of Scotland, there should not be
a moderate iEcre in the duty upon spirits. I believe
that an increase of the 'duty, confined within due
hounds, would not be opposed to public opinion in Scot-
land, or unacceptable in Scotland. (Hear.) An increase
on the duty upon home-made spirits would render neces-
sary an adjustment of the duty upon colonial spirits,
which I only mention now without going into details.

Our proposal will be that a duty of ls. be added to- the '
3s.
ree
a aain a-sg al
at l o n upon
present.
Scotchle sepeinr tusi—n
ptthi ee
nmal int dsr blaanc(lie to
7,170,000 gallons, The actual revenue is 1,315,000/. The
expected revenue is 1,633,0901. which is a gain of 318,0001.
I may here stop to congratulate a noble lord opposite (Lord
Naas) on having attained a triumph. I ought to have re-
served this until I came to Ireland, but his victory is at
andlength
likewise
the time achieved.telielvvelot—hohyna
distiller,iking
an allowance for waste upon spirits in bond. (Hear,
IVO
of this propose hous t
house—(a •
la
hear.) That allowance for waste will be in Scotland
the increase of the duty upon spirits in Scotland 278,0001.
40,0001., which will give the net increase of revenue from
The Government have also anxiously considered this ques-
tion as it regards Ireland. It is quite plain: I am I
afraid, that an allowance for waste upon spirits in
w
bond will entail a dimuuition of revenue; in fact, that
amount to a considerable proportion of the revenue
arising from the duty upon spirits. At present the
spirit duty in Ireland is extremely low in comparison with
the duty in the two other countries. There has been
found to be a great difficulty as to the means of levying the
tax, and we think it would not be safe to levy an
additional tax of ls. a-gallon upon home-made spirits in
Ireland. But we have looked carefully t o the means at
our command fur enforcing the levying of this tax. In
Ireland there is a revenue police, which has hitherto had
the exclusive charge of enforcing this duty. But there
is also maintained in that country at the public cost a large
force, the constabulary, which has had no share what-
ever in giving information to those who have been
engaged in levying the spirit duties. We contemplate
a change in the relation of these two forces. I cannot
say whether it will be by an absorption of the one force
into the other, or in what way it will be done, but the
constabulary will in some manner give their assistance in
the levying of the duty upon spirits. We think we may
fairly propose an increase of duty of Bd. per gallon on
Irish spirits—namely, from 2s. Bd. to 3s. 4d., subject to
the deduction of 40,0001., the allowance for waste spirits
in bond. This will give us a gross gain of 238,0001. upon
the consumption of Irish spirits, but, deducting the allow-
ance for waste of 40,0001., we have a net gain of 198,000/.
That gives from both countries—Scotland and Ireland
—an increase of 476,0001. But it is necessary that I
should make an allowance for waste in England, not for
the sake of English distillers, but for the sake of Irish and
Scotch distillers, with whom it is a great object to bond
their spirits here. (Hear, hear.) There will therefore be
an allowance of 40,0001. for waste in bond in England,
which will leave a net gain from the increased duty upon
spirits of 436,0001. a-year. (Hear, hear.) There is one
very small augmentation of revenue that I propose, and
that is the revenue upon certain classes of licenses. If the
committee examine the present scale of licenses, they will
see that they bear very unequally upon the minor and the
greater tradesmen ; upon some it is uniform, as upon gro-
cers and teadealers, and they pay the same, whether they
pay rent to the valxe of 51. or 5001. We do not propose
to take up the more importai4 questions as to the licenses
which are connected with the sale of spirits, wine, and
beer, but•we propose, in regard to the licenses of 'brewers,
dealers in tea and coffee, tobacco, and soap, to make an
additional scale of licenses, raising them at the upper end
of the scale to an ad valorem value. The gross increase of
revenue arising from licenses is 113,0001. The whole
amount of increased taxes which we propose to levy, and
which will come into the accounts of 1853-4, is—income
tax, 295,000/. ; legacy duty, 500,0001. ; duty on spirits,
436,000/. ; licenses, 113,0001., which amount to a total of
1,344,000/.—(cheers)—which, with the anticipated surplus
of 805,0001., will give a fund of 2,149,0001. available for
the remission of taxation. (Cheers.) I cannot proceed
further without stating the nature of our intentions with
regard to Ireland. The committee have found that we
propose to make the income tax payable in Ireland for a
moderate term, and at a descending rate, as in England,
and that we propose to levy an increased tax of Bd. on
spirits in Ireland, which may be a net tax of 6d. or 7d. a-
gallon, after allowing for the waste of spirits in bond.
But I have now to refer to that case which I lately men-
tioned of rent-charge formed by the consolidated annui-
ties. It was the opinion of the Government that it was
impossible for them to arrive at a final decision upon that
important subject. They represent a capital of 4,500,000 e
of public money, and in dealing with them the Govern-
ment must have regard to the actual situation of Ireland,
recovering as it is from a season of the deepest distress,
and having also regard to the harmony of the relations be-
tween the two countries, the Government thought they
could not come to a final decision till they had considered
the general plan of finance which it was their duty to re-
commend, and its bearing upon Ireland. They now re-
rommend a measure which, if you adopt, as I trust you
will, will advance us one great step towards establishing
an equalization of taxation between the three countries.
(Cheers.) It is true that the income tax is of temporary
duration, and that you will show by levying it that there
is a bond fide intention and a rational prospect of equalis-
ing the taxation. But, at the same time, it is important
that you should consider the great necessities of a
portion of that country, and when you come to consider
these things it will be plain that the disposition of Parlia-
ment will be to adopt large and generous measures, and
not consider this as a mere question of money. You will
consider this—you will consider all that it represents—the
recollections of the famine, the peculiar character of
that awful visitation, the feeling of England to Ireland,
and of Ireland to England, whatever made a more kindly
tone between the two countries, and made this debt less
of a national creditor and debtor account. The Govern-
ment have determined to make a largo proposition. The
4,500,0001. of consolidated annuities represent 1,500,0001.
of debt that strictly belongs to the establishment of the
poor law in Ireland. That was a great social and na-
tional good—a great and vast good to Ireland. But
every good to Ireland is also a good to England. (Hear,
hear.) The other 3,000,0001. consist of debts entirely con-
nected with the famine. A committee of the other house
of Parliament have sat on this subject, and the have recom-
mended a remission of 2,000,0001. of this taxation. Sir, the
plan of the Government, after maturely considering the
whole question, is to propose to Parliament that, from and
after the 29th of last September, the consolidated annui-
ties shall be wholly wiped away. (Cheers from the Irish
members.) They propose that the whole sum due from Ire-
land to England shall be remitted. In remitting these
charges, and in proposing an income tax upon Ireland, you
will make a great stride towards that, the advantage of
which I hardly know how to appreciate with reference to
bringing the two countries towards the establishment of
the principle of equalised taxation. On that subject I need
only add, because I am asked what I mean to do with the
arrears, that arrears in respect to consolidated annuities
due to the 29th September will be paid as they would have
been if the law had continued in force. On the other hand,
nothing will be collected which has become clue since the
29th of September—and any money which has been so col-
lected will be returned to those who have paid it, so as to
take care that the non-paying classes obtain no advantage
over those who have paid. (Hear.) Wo are inviting you to
remit a capital sum, which was nearly 4,500,0001., and is
still above 4,000,0001., and to remit an annual charge of
245,0001. Three-fourths of that amount would continue
for 40 years, and one-fourth for from 10 to 30 years. The
taxation we propose for Ireland would in the first two
years be considerably higher than the taxation we propose
to remove • but if we look to the time when, as I say, Par-
liament will be in a position to part with the income tax,
Ireland would enjoy, and for a long term of years, a much
larger remission of consolidated annuity than it would be
subject to additional burthens in the shape of the spirit
duty. So much for the case of Ireland : and now I have
done with that most offensive part of my task, the imposi-
tion of taxation, I feel—as it is said men are wont to feel,
and as some of us have felt—when they have come an
up-hill journey to the top of the Alps. Now I have got to
the downward road, and the plains of Italy are before me.
(Hear, hear.) I come to consider the more agreeable subject
of the remission of taxation—that remission of taxa-
tion which up to this moment, not from obstinacy,
and not from petulence, but from a conviction of our pub-
lic duty, we have thought it right steadily to decline ac-
ceding to. (Hear.) Tho first remission of taxation I shall
propose has reference to the Excise department. It is im-
possible to deny that there are great evils connected with
the soap tax. (Cries of " hear, hear.") In the first place,
the system of drawbacks, which is a system incident to
the use of soap in our manufactories, entails an immense
loss. In the second place, this is an article of taxation
which is both injurious to the comfort and to the health of
the people. (Hear.) In the third place, this is an article on
which the pressure of the tax is so severe that, notwith-
standing the general wisdom and fairness with which your
Excise laws are administered, notwithstanding the draw-
back you grant on exportation, your productive power is
crippled. (Hear, hear.) You cannot compete with the
foreigner—your export trade dwindles day by day—and
gentlmen who have come to me to represent the case
with respect to soap well-informed gentlemen have
stated that if we only take that bold measure with
respect to the soap tax which we recommend,
over and above the entire rate of duty the consumer of soap
would benefit to the extent of no less than 25 or 30 per
cent. in consequence of the cheapened production. (Hear.)
Therefore for every penny of duty we ask you to surrender
we feel that we are giving you double that advantage.
There is one other point to which I cannot but feel that I
must advert. The question of the African slave trade is
one which excites different feelings. We have but one
feeling with respect to the extinction of the slave trade,
but there is a difference with respect, to the measures to be
taken for that extinction. Some have thought the means
of force used are unavailing, but that the promotion of le-
gitimate commerce would be the most satisfactory, the
most effective, and the most desirable of all instruments
you can apply. (Hear, hear.) It may be said there is a
wide interval between the premises and the conclusion if
I say, in order to extinguish the slave trade repeal the soap
tax. But a connection more intimate than this any gen-
tleman cannot well imagine. Tho map would show how
the rivers of Africa might become depots for the trade in
palm oil. The quantities you may receive from that
source are almost immeasurable. There are the great ma-
terials for a trade which, if youonly relieve it from checks,
will show that the energy, the capital, and the intelligence
of the country are as well entitled to carry away the palm
in this particular---(hear, hear, and a laugh)—as they show
themselves to be in so many respects. The gross receipt
from the soap duty is 1,397,000/4 the drawback, 271,0001, ;
the not receipt, 1,126,0001.; the cost of collection, 15,0001.,•
the net loss, 1,111,0001. But with reference to the general.
necessity for fixing a time to commence the remission of
duties, the most convenient time for this purpose in regard
to the soap duty was the sth of July. But there was al-
ways a power of keeping in bond if it were thought fit to
do so. There is already a sum due with reference to the
quarter just expired of 140,0001., and before the present
quarter is out probably 200,0001. will be due. We have to
credit this year 340,0001., and the net loss for this year
will be 771,0001. I come next to the division of the stamp
duties. It is not possible for the Government, with all the
means at their service, to deal with all the articles they
would wish. There are articles —suchas fire insurance and
marine insurance—on which they would gladly, if they
could, grant remissions of taxation. But they have made
the best choice in their power. One subject that naturally
presented itself to them, both in connexion with the in-
come tax, and likewise as bearing directly as a tax on pru-
dence, and bearing especially on the poorer classes, is the
present tax on life assurance. It bears very heavily on the
poorer classes, though not severe in itself. At present it
amounts to 2a. 6d. per cent. We propose to reduce it
from 2s. 6d. to 6d. The produce is 40,0001.—the imme-
the country,
diate loss or relief will be 29,0001. We propose next to
deal with an article which in its present state is most un-
Isvai't;3scfs does
e a du'otorV, and that is stamps on receipts. This is a duty
not
sii
ht
iosu
evadedg h
t withwholesale,the transactions u
duty
of deaalimneere'
which I must say entails very considerable inconvenience.
with particular
It is not question of charge, but the ne-
cessity,,in the particular papers, stamped
enter very much into t 1 e
proposeamounts,requires,
conve-
nienttlisi ,rt'efetureall:cee
a mwe t
propose n
m o n money,
yti 1,0
aae
spn
pot icseortnenangtcyr
contrasted
inaega
ly,
instrumentsato f en n fors t
apps.
y pon
ith
negotiable instruments, to make such payment valid.
Though the first loss to the revenue will not be incon-

sidefable=nanielY, 155,0091., it is not a loss without hope
of recovery. (Hear, hear.) We think that is a loss to
which the committee, for the sake of so great a conve-
nience, would be disposed to accede to. [Mr. Bright put
a question.] The penny stamp would be necessery to con-
stitute a valid document. As you have to pay 3d., 6d.,
is. at present, so we propose to annex the single condition
of affixing a penny head as sufficient. We propose to make
a change with respect to those indentures of apprentice-
ship which are known as indentures without consideration.
This is a duty which produces very little, from the charge
being too high ; from 20s. we propose to reduce the duty
to 2s. 6(1. The next question is popular with the majority,
-unpopular with the minority. It is the case of the at-
torneys. (A laugh.) I must confess that I don t think
the vote of the House of Commons taken upon this ques-
tion would have justified the Government in proposing a
remission of this duty, because we feel strongly that a vote
of the House of Commons given on a particular duty, is
given necessarily on considerations attaching to that par-
ticular duty, and without reference to the comparative and
relative claims of others. (Hear, hoar.) But we do think,
in consideration of legislative changes which have lately
been made, and which have tended, by indirect as well as
direct action on the law, to diminish the business of at
torneys, that there might be a remission of taxation.
What remission should it be ? We aro not satisfied with
the proposal made by the profession. The profession is
subject to three charges. The first is on admission to
practice, which is small. The charge for the annual cer-
tificate is 121. for the metropolitan solicitors, and 81. for
country solicitors ; and the charge for articles of clerkship
is put at the enormous amount of 1201.-a charge on capi-
tal paid by solicitors in anticipation, though they may die,
though they may turn out incompetent. The profession
said, " Take the tax ;X the annual certificates for those who
aro in the profession ; leave those who are to enter to pay
precisely the same." (A laugh.) We don't think that
would be a fair mode of dealing. (Hear, hear.) Having
made up our minds that we may propose a remission of
probably about 50,0001., we propose to reduce certificates
from 121. and 81. to 91. and 61., and articles of apprentice-
ship from 1201. to 801. I come now to the question as to
advertisements. (Hear, hear.) With respect to that
question I hope that the comtnittee,will not consider that
it indicates any disrespect for the judgment to which the
majority of the house arrived, if having the same object
in view, and desiring to bring about some or a more
effective classification of taxation, we have been led by our
examinations to believe that there is a better mode of
proceeding than that which the house adopted, think it
our duty respectfully to submit that mode of proceeding to
the deliberate consideration of the committee ; and it is
right I should say that the plan I am about to state was a
plan which the Government had adopted at the time of
the debate on Thursday last. (Hear hear, hear.) It may
perhaps, be said, " Why did you not say so ?" My answer
is this-that it was from no motives of mortification, that
it was from no desire to practise an undue reserve ' it was
because we feel that, if the Executive Government is, with
ad vantage to the country, ordinarily to discharge the func-
tion of the initiative with respect to finance, it is absolutely
necessary that the strictest silence should be observed.
-(loud cries of "Hear, hear")-not in contempt of pres-
sure, but yet, notwithstanding pressure-till the time
arrive when the views of the Government shall be disclosed.
What we propose with respect to the duty upon advertise-
ments is this-and financially our proposal comes within a
mere trifle (within 20,0001.) of the other. The present
duty on advertisements is 181,0001. We propose to reduce
the duty from ls. 6d. to 6d. (A cry of "Oh ! ' followed by
cries of " Hear, hear.") The hon. gentleman could not
wait on Thursday last for four days, and now he cannot
wait for as many minutes. (A laugh.) May I make that
moderate demand on his patience ? It is absurd, and most
of all would it be so, to take only the plan of the right hon.
gentleman the member for Manchester, who hadconsidered
this question, and consider the duty on advertisements
alone. You must consider it with reference to the other
duties which affect the journals in which those advertise-
ments appear. (Hear, hear.) I venture to say that, if
you repeal the duty on advertisements simply, and leave
the duties on the supplements to newspapers as they are,
it is very doubtful whether a great part of your reduction
will not go into the pockets of newspaper proprietors.
You want a large increase in the number of advertisements,
but you must take care that you don't subject people to
taxation in another form by multiplying their advertise-
ments. Take the case of the Times. You know it is
obliged to limit its advertisements. I will not go into that
subject ; but there is a point beyond which, in consequence
of the Id. stamp on supplements, and the id. stamp on
supplements, it does not pay to insert advertisements, on
account of the supplement ; and therefore a time comes
when they must have a limit to the advertisements, and
put a higher price on them, on account of the supplement.
this-toef reducetaidng the duty advertise-
mentsdthuteyroenmninderef
the duty on advertisements, to repeal altogether that with What wtee
6d., proposenn d
which the plan of the right hon. gentleman did not meddle,
namely, the ld. and id, stamps on the supplements of
newspapers which are used for printing advertisements.
is
(Hear, hear.) And I venture to say the plan we propose
instead
is far more sure to secure to the advertiser the benefit of
the reduction than the plan which you propose ; because,
if you remove the advertisement duty altogether, then
when advertisements come into a newspaper, they must
either be limited to the present sheet of the newspaper,
with the present limited space, and no competition, or they
must be liable to that heavy stamp duty which discourages
the printing of supplements. The first loss on the adver-
tisement duty and the supplement stamps will be 160,0001.
The only other change we propose is contingent on a bill
by which the noblelord the Secretary for the Home Depart-
ment proposes to effect a material reduction for the benefit
of the metropolis. It is proposed to reduce the taxation
rpermo os
ssieo
nt o
of red
tauxcae t
ito hne
on duty
thfer odmi v
ilssi.o
n 5 (01 .f a
s-
on hackney carriages. A common hackneycarriass Ye pa slOs.
dtaamy
ptodinst.ieas-dwayil,l
a-week. We think there ought to be a
reduction. We
prtn
which will give a relief of 26,000/. The t
o relief
hefe fromdty theon
be 418,0001. With reference to the
point
advertisements, I hope that, in addition to the proposition
I have stated as regards the bearing of the plan proposed
here and the bearing of that proposed by the Government,
likely to be produced by sweeping away all branches of
the committee will be willing to consider the effect that is
the revenue, if they are not revenue of a description which
does not seriously interfere with or constitute a burden on
the community. I really don't see how it is possible to
maintain any duty on fire and marine insurances -any
duty on a great many articles which I fear have over long
propo-
sition evofe,itti snteohomtfeeftncahoit
elmtassessedi dutyibteaar
copushedul:taotstuoinch at
been the objects of taxation-if the arguments against the
ke a
which
;That itshae proppo
length as to stop nothing short of absolute remission. We
opera-
tion is not an easy one. If it is to bo successful it must
proceed on three principles-the abolition of what aro
called the progressive duties ; the abolition of what aro
called compositions ; and, lastly, the abolition, or the
almost abolition, of exemptions, and the substitution of
rates and taxes which shall be few, simple, and as nearly
as possible uniform. What the Government proposes is,
that instead of the present duties on men-servants, be-
ginning at a minimum, rate of 11. Cs. 6d. and running up
through a groat variety of rates, a uniform rate of one
guinea on servants above 18 years of age shall bo levied,
and of 10s. 6d. on servants under 18. Upon private
carriages we propose, -instead of such charges of 61. 12s,
41. 15s. 6d., and 3/. lls. 6d., to charge 31. 108., 21., and
15s. The duty on carriages let for hire, such as post-
chaises, will remain at 3/. ; but the particulars relating to
this subject will be more explicitly stated in the resolu-
tions. The duty on horses, beginning at 11. 11s. 7d., runs
up to a great variety of rates. We propose that trade
horses shall remain as now, that the duty on ponies shall
be 10s. 6d.., and on other horses 21s. [An hon. memberput
a question.] The hon. member asks what we propose with
respect to agricultural horses. We propose to leave them
as they are now-exempt. (A laugh.) We may be wrong.
Exemptions, as exemptions, I do not like ; but it appears
to me that the case of agricultural horses is strictly ana-
logous to that of steam-power on railways. Our object is,
irrespective of fear or favour, to propose what we think
impartial justice to every class. I have received proposals
suggesting the imposition of taxes on steam-power. Of
these I need not say they were summarily dismissed.
thattt theytb.
sh
Whatever my love of symmetry, I don't think it just to
remove the exemption of duty which applies at present to
horses employed in agriculture. We propose to make a
simplification of the duty on dogs, which are not so much
taxed as the rest of the community. There are two
rates of charge at present on dogs-a duty of 145., and
Bs. ; and these we propose to unite at a sum of 12s. The
immediate effect of these changes will be a loss of
87,0001. on servants, 95,0001. on private carriages, 118,0001,
on horses ; but we have a gain
of 10,0001. in the case of
dogs-so that the ;first loss by the remission of assessed
taxes will be 290,0001. As in the case of stamps, however,
our hope is that the first loss will be made up to the re-
venue. The assessed taxes are levied under 72 acts of
Parliament-(hear, hear)-and if the house wants the sys-
tem of these assessed taxes reformed it must be prepared
to support us in the principle of subjecting to moderai e
duties a great variety of articles. (Hear.) We propose,
also, to change a system that does not strictly apply to as-
sessed taxes, but which is of an analogous character. I
allude to the post-horse duties. (Hear.) The case of the
post-herse masters is a very hard one. The present system
is exceedingly unequal. The duty, which is heavy and
burdensome, is levied on mileage, and is subjected to all
manner of difficulties in the collection. It is raised by the
issuing of tickets taken up at the first turnpike ; and I
may state, in the first instance that I believe the largest
postmasters in the kingdom are in London, whose principal
traffic is to the railway stations, where there aro no turn-
pikes whatever. (Hear, hear.) Altogether the system is
difficult, the duty onerous in its amount, and, as I have
said, is unequal in its distribution. We propose, in deal-
ing with this matter, to take the plan that has been sub-
mitted to us by the postmasters themselves. Their own
proposal was a very fair ono, for they were not so much
for a remission of taxation as an entire change of the sys-
tem. They propose that the bulk of the tax shall be levied
in the form of licenses, which licenses shall vary according
to the number of horses and carriages. (Hear, hear.) In
this way we propose to make a remission of 54,0001. a year
iu favour of the postmasters. (Hear, hear.) We propose
a scheme of duties on the licenses for horses and carriages
which will realise a sum of 161,0001. a year, giving, as I
have said, a remission of 54,0001. a year. (Hear, hear.)
of
Another change under. the head assessed taxes is pro-
_
posed with the view of giving greater facilities for the re-
demption of the land tax. The present provision of the
law for the redemption of the land tax is very stringent,
and its operation is exceedingly limited arou may redeem
a tax of 11. levied on the land, by transferring to the Com-
missioners for the Reduction of the National Debt 225. a
year in the funds ; but these are extremely unfavourable
terms ; and, instead of recovering 10 per cent, more than
the amount of the tax, we propose to reduce it by 17i per
cent.-to take 7A per cent. less than the same amount of
stock in land. (Hear, hear.) The committee should be
aware that any change made with relation„te to
resentltiese matters
cannot come into operation durino p
we should ask the imaunsde
if at a future period of the session
to pass an act called the Assessed Tax Act, we shall then
1853 and not for sth April,
fix the date for sth October,
1853. Out of all these losses of revenue, or commutations
the
assessed taxes only
of taxes, under this branch of
come into effect this
54,0001. of post-horse duty would
year, and only one-half of it would be charged from sth
branch of remission to
October. I have still an important
mention.
a loss of revenue in the plan
proposed with reference
There would be
to colonial postage, but on that I
do slot enter, as I doubt if any part of it would come into
to Now, with referencethe Customs
the present year.
duties, I may state t hat no
branch of revenue has attract-
the Government, as they feel
ed more the attention of
that it is hero, after all, that the elasticity of the powers
, hear) -and they
been h ear -am
of the country have
p
think that it is by
these owers they are supported in the
re-duce an effective result as regards
proposal they make t
o P duties. (Hear, h
many articles of Customs',ear.) I will first
we can make
of importance in which
mention an article
no change, an
1 that is the article of wine. I refer to this
tax, as it is subject
of peculiar susceptibility, and the
ut of doors, which is almost as peril-
cause of an agitation o
ous to the wine
duties as certain climates are to the grow
th
of wine se t lf-(a laugh)-and because it is desirable that
if the house and the Government think no change can be

made in the duty, that opinion of the house and the Go-
vernment should be clearly and intelligibly expressed.
(Hear.) There are three plans, any one of which might be
followed with regard to wines. One would be to reduce
the duty to a low uniform duty of Is. 6d.,0r 25., or 2s. 6d.
the gallon. Now, you cannot do that unless you are pre-
pared to sacrifice an amount of revenue for the first year of
700,0001., besides an increased difficulty in the drawback on
stocks on hand, with respect to which it is not impossible
that the Government might form a sturdy resolution in
which the House of Commons might afterwards be induced
to concur. (Hear, hear.) But whether that be so or not,
a loss to the revenue of 700,0001. or more is not to be put
in comparison with other objects that the Government have
in view. (Hear, hear.) Another plan would be to fix a
duty of several rates on wine of different values, somewhat
resembling the duty on different qualities of sugar. But
if that is attended with difficulty in the case of sugar, with
how much greater difficulty would it not be attended in
that of wino ? (Hear, hear.) It has the recommendation,
certainly, that it would admit low classes of wine at a less
loss to the revenue. But the Revenue Department would
have the greatest difficulty in carrying out such a system ;
it would bo complex in its operation ; the wine trade,
almost to a man, is opposed to it; and I cannot say that
public opinion is so much in its favour as to induce us to
attempt to carry it into effect. (Hear, hear.) That being
so, there is no choice for us but to say that/ whatever be
our opinion of the operation of the present wine duties, we
are unable to propose any change in them at the present
time, neither can we see any early prospect of a change
hereafter. (Hear.) Igo to the next article, which is tea.
(Hear, hear.) I won't discuss the reasons that exist for
reducing the tea duties. It would be idle to do so, for they
are already settled in public opinion. (Hear, hear.) And,
as we have agreed to make a reduction in the tea duties, so
We have acceded to the general principle recognised by the
right hon. gentleman (Mr. Disraeli) as that of the late Ad-
ministration, that it would be most unwise to make the
reduction to ls. by a single leap. (Hear, hear.) It is
almost demonstrable, as far as a negative is capable of de-
monstration, that you cannot have the slightest hope of
such an increase of supply as would indemnify the revenue,
or even bring loss within moderate bounds, and, what is of
yet more importance, secure the main benefit of the reduc-
tion to the consumer. (Hear, hear. ( What we propose is
this—to take the first step that was taken by the right
hon. gentleman opposite last year, and reduce the duty at
once from 2s. 24d. to ls. 10d. (Hear.) We have carefully
considered the state and prospects of the supplies of tea.
The condition of the Chinese empire at this moment is cer-
tainly not favourable to such extended supplies as we could
wish. We cannot entertain very sanguine expectations
that any large addition will be made in 12 months to the
quantity available for the wants of this market ; but in the
end, we hope and believe, if there be not a chronic state
of revolution in China, that, so far as the production of
tea is concerned, a short time, a couple of years or so,
would be sufficient to put us in possession of a large addi-
tion to our supply. (Hear.) We propose, therefore, to
take the first step as the right hon. gentleman (Mr. Dis-
raeli) took it, but we propose thereafter to proceed some-
what more rapidly. (Hear.) We shall take the duty
from the date when the house, if it coincides with us in
opinion, shall adopt the resolutions. To the sth of April,
1854, it will be ls. 10(1., to the sth of April, 1854-5 it will
ls. 6d., to April, 1855-6, ls. 3d., and from April, 1856, it
will be is. (Cheers.) The whole time occupied in effect-
ing the descent from 2s. 24d. to ls. would be less than
three years. We hope, with favourable circumstances,
thus to bring in the supply necessary to meet the increased
demand, but we could not venture to recommend to the
house the adoption of. any shorter period for effecting the
change. (Hear.) The house must not suppose that this is a
change which, if we take a clear and dispassionate view of
it, can be effected without a heavy loss to the revenue in
the first instance. The amount of remission, indeed, will
be enormous. If any gentleman will calculate the differ-
ence between 2s. 44d. and is. on the amount of tea con-
sumed during the last year, he will find it come to
3,000,0001.—a sum much too large to reckon upon recover-
ing all at once. By the arrangement I have stated the
loss for the first year will be 366,0001., for the second year
510,0001., for the third year 454,0001., and for the fourth.
year 6040001., making altogether a loss iu Customs' re-
venue in these years of 1,934,0001. (Hear.) But at the
same time the loss, we trust, will undergo a rapid and
steady diminution. In proceeding to consider more gene-
rally the state of our tariff, we have been desirous to carry
out something like a new revision of taxes, and to apply to
it the following general rules:—First, to abolish altogether
the duties which are unproductive, except in cases where
there may be some special reason on account of their rela-
tion to other articles ; and, in the next place, to abolish,
as far as considerations of revenue will permit, duties on
articles of manufacture except such as are in the last stage,
and commonly connected with hand-labour, in regard to
which cases we have thought it more prudent and proper
to proceed in the mode not of abolition, but of reduction,
and in these cases we have endeavoured to fix the duties
in such a way that they should not roach, as to any class of
goods, higher than 10 per cent. on their value. As I have
referred to 10 per cent., I may state that we have not
thought it right to propose a reduction in the silk duties,
which are 15 per cent. The question of the silk duties is
mainly a.question of revenue, and in regard to it we do not
think it is an article that hasi the strongest claims upon
our consideration--for, in so far as it is an article into the
manufacture of which protection enters, the protection has
mainly reference to certain classes of operatives, with re-
spect to whom it would be the disposition of Parliament to
proceed carefully, and cautiouely. We desire further whenever
it can be done to take the mode of substituting rated duties
for duties ad valorem, and to get rid in every case, except
in a few instances, where it is important on account of
revenue, of the five per cent. Customs' duties made in 1840,
which, besides raising duties, greatly complicate the tran-
sactions of business. (Hear, hear.) We propose, in many
instances, where there are at present differential duties in
favour of British possessions, to sink those differential
duties altogether by lowering the foreign article to the
level of the colonial ; but where we are not able to lower
the foreign article to the level of the colonial we have not
thought it would be considerate in any case to raise theduty
on the colonial article. (Hear, hear.) Lastly, we have
been desirous to lower the duties that press on foreign
articles of food which enter largely if not into the necessa-
ries of life, at any rate into the solace and comfort of the
people. (Hear.) Now, the application of those rules is
this—First, as to articles of food we propose to lower the
duty on a number of articles, of which the principal aro as
follow :—Apples, from 2s. a bushel to 3d.; cheese, from
ss. to 2s. 6d. per cwt.; cocoa, from 2d. to Id. per pound ;
nuts, from 2s. to ls. per bushel; eggs, from 10d. to 4d.
per 120; oranges and lemons, to Bd. per bushel; butter,
from 10s. to ss. per cwt.; raisins, from 15s. 9d. to 108. per
cwt. (Hoar, hear.) The produce of these articles to the
revenue at the present moment is 571,0001.; the immediate
relief given by the reduction on the same quantities would
be 262,0004; but, with the allowance which we think may
bo made for an immediate increase of consumption, the
probable net loss will bo 185,0001. (Hear.) Besides those
articles of food, which are 13 in number, including tea,
are 123 articles which wo propose to set altogether free
from duty, involving a loss of 53,0001,, and 133 more arti-
cles which we propose to reduce, involving a gross loss of
70,0001., but which, with increased consumption, may bo
taken at 52,0001. (Hear, hear.) The effect of this will be
to create a simplification of the present system ; but at the
same time ,I must draw attention to the fact that the
changes of ad valorem duties into rated duties will call for
greater specification, and the resolutions I shall lay on the
table will enable the house, when they come to the consi-
deration of them, to assist the Government in determining
whether in any of the cases I have stated it will not be
better to Adhere to the ad valorem duty. (Hear, hear.)
All I now say is, that if the proposal does not wear the
appearance of simplicity that may be desired, it is because
the change tends to multiply specification. (Hear, hear.)
The effect of these various changes in the Customs' duties,
as applicable to the year 1853-54, will be to produce a gross
loss of 1,338,0001,, but a loss which, we trust, will again
be reduced by increase of consumption to 658,0001. (Hear,
hear.) The remission of taxes we propose as applicable to
1853-54 will cause a gross loss in the Excise of 788,0001.,
or a net loss of 771,0001.; in stamps, a gross loss of
417,0001., or a net loss of 200,0001.; in post-horses, 27,0001.;
in Customs, altogether, the gross amount of 1,338,0001,, or
a net loss of 658,0001.—(hear, hear)—thus showing a re-
mission of taxation for the present year of 2,568,0001.
(cheers)—and a loss incurred by the revenue after allow-
ing for the degree in which the remission will be placed by
increased consumption, of 1,656,000/. (Cheers.) There-
fore, Sir, the state of the account for 1853-54'stands thus :
—We have a surplus of 805,0001. We invite you to grant
us the means of raising by now taxes the sum of 1,344,0001,
—making an available fund of 2,149,000/. We propose to
enact, and to take effect at once, a remission of taxes that
will entail a loss to the revenue of 1,656,0001. There will
remain a surplus sum of 493,0001., of which a portion, ex-
ceeding 200,0001., will be, not from permanent sources, but
money that will not come in again. The committee will be
of opinion that it would not be prudent, especially as wo
have in contemplation a scheme affecting the debt, to pro-
ceed with a surplus less than this. I have still the import-
ant duty to discharge of redeeming the pledge which I gave
the committee, to the effect that the Government were not
paltering with you nor with the people of England about
the income tax but that when we state we propose to place
you in a condition to remove it at a future day, which we
are prepared to define, we make that proposal on the basis
of calculations which, though they might not bo tried as
minutely as if they referred to the present moment only,
yet, I think, are on a most safe and secure calculation.
(Hear, hear.) First let me present the balance-sheet for
1851-55. We left the year 1853-54 with a surplus of about
half a million, a considerable portion of which does net
consist of permanent income. In 1854-55 I give you an
additional source of income that will be available. That
additional charge will be—on the tea duties, 510,0001. ;on
post horses, 27,0001. ; the remainder of the soap duties,
340,0001. ; assessed taxes, 170,000/. ; colonial postage,
40,0001. All the additional charges which we now invite
you to calculate upon for 1851-55 will be 1,087,0001.
(Hear.) Then the legacy duty will be available for the
second year to the extent of 700,000/. ; the 34 per Cents.,
of which, according to the usual principle of computation,
one-half is taken credit f.or, will give a sum of 312,0001.
The second moiety of the extension of the income tax will
add to this income 295,000/. Putting these sums together,
you will find that the whole additional charge proposed to
be made for 1854-5 will be 1,087,000/. • and additional
income which I propose being 1,307,0001., there will be, so
far as that year is concerned, a profit which will justify the
house, I think, in giving its assent to the remissions which
I have proposed for relief. At the same time it is right
that the committee should have fully and clearly in view
the complete extent of theso remissions of indirect taxa-
tion. They will be as follow :—Soap duties, 1,260,000/.
(I am now taking the extent of the relief) ; stamps,
418,0001. ; assessed taxes, 290,000/. ; post-horses, 54,0001. ;
total—so far as the Board of Inland Revenue is concerned
—1,888,0001. Then, in the Customs' duties the gross loss
will be no less than 3,084,0001.; on articles of food—butter,
cheese, and so on-262,0001. ; on minor duties, 120,0001. ;
or a otal relief under the head of Customs' duties of
3,466,0001. (Hear, hear.) Adding to these various amounts
the small sum I have described under the head of colonial
postage-40,0001,—the entire amount of remissions of in-
direct taxation to which the Government now invite the
committee to assent will be not less than 5,384,0001.
(Cheers.) With the remission of indirect taxation we
propose to combine the bringing about a state of things,
or the rational prospect of a state of things, in which
you can, if you so please, really part with the income
tax. (Hear, hear.) Lot me represent to you the state of
accounts which sums up and winds up the whole of this
protracted statement. The remissions of indirect tax-
ation proposed amount, as I have just explained, to a gross
loss of 5,384,0001. Looking back to the remissions which
have been made in late years, which began in 1842, and
which were renewed on a very large scale in 1845, 1846, we
find that these remissions—in terms, some of them of 11
years, some of them in five or six years, but in tho mean
term of seven or eight years—have completely recovered
themselves. (Hear, hear.) The effect of such remissions
we have found to be two-fold—first, that upon the parti-
cular consumer, enabling him to increase his particular
consumption of various articles ; secondly, that upon the
general consumer, operating to the extension and invin tion of the trade of the country, and in that way extend-
ingb and widening the means of consumption of the great
body of the people, and so in a still more powerful manner

replacing the loss occasioned by remission. (Hear, hear.)
We assume that what has happened before will happen
again ; that th3so remissions of indirect taxation, which
are anala;ous with the remissions which have been made
heretofor ). will, an II crc former remissions have done, re-
place thems Ives in about the same time— (hear, hem)
and I therefore assume that, so far as these remissions are
concerned, you will, by the expiration of the income tax,
find these taxes very nearly in amount what they now are.
I will not enter into the question of what taxes you may
think proper to repeal or reduce in the interval. It is suffi-
cient for me to provide for the remissions which I now pro-
pose, and in the propo,ition of which I do not invite you
to undermine, but on the contrary, I ask you to increase
the stability of the financial system of the country. (Cheers.)
Well, then, how are we to attain a rational prospect of
being able to part with the income tax in 1860 ? The
country after so many announcements that have been made
to it from time to time that the income tax was to be
parted with, has become, doubtless, incredulous on the sub-
ject, and may, perhaps, conceive that we are aiming at a
fictitious and undeserved popularity when we seek to show
that by the effect of indirect taxation we can enable the
house to supersede the income tax ; but the statements be-
fore the committee, the committee and the country can
form their own judgment on them. (Hear, hear.) The
amount of the income tax, as we have it now, is 5,550,000/.
—this amount will be increased, as I have proposed, by the
addition of 590,000/. The gross amount, therefore, of this
duty, so increased, will be 6,140,0001. I will not enter into
a detail of its composition, and of the descending rates,
but, taking the tax at 6,140,000/., let us inquire in what
condition Parliament will stand with referenee to the part.
hag with so large a sum of money. It will stand thus :—ln
the first place there will be, as additions to the permanent
sources of income--legacy duty, 2,000,000/. ; spirits,
436,0001.; licenses, 113,000/.; making a total of 2,549,000/.
towards the fund which we must provide in order to put
Parliament in a position, if it should so think fit, to part
with the income tax. (Hear,
urp hear.)osi view as
it
tphoesn,iwyee
acdodime.
to the anticipated reductions of charge, which of course
will be as effectual to the pa n
tions to the revenue. (Hear, hear.) The first of these re-
ductions of charge is that on the Three-and-a,-Q Rafter per
Cents., which we owe to the wise measures of the right hon.
member for Cambridge in 1842 ; that will bring to the
account 624,0001. Bad as is our case with regard to the
national debt, and loath as I am to encourage extravagant
expectations in that quarter, yet it must be recollected that
by the regular application of surpluses, and by the lapse
of annuities, we in a small way operate from year to year,
both on the capital debt and on the charge. (Hear, hear.)
sinceLoo
k IbBanck for the thheevleasrtedleleeydeatrsh,e and you
charge
ebfwilly
tBhoe,finooonadtli.etphneaertl
debt,
ama i.rrelsplerilictiveessuomf
egrethiateetreoeepenrtinatiuoens, ,aseaming,
at the
same time, that whatever the pressure upon our finances,
and whoever may hold the reins of Government, that we
shall always think it one of our main public duties--the
oftvheeryeffifiresiteney of th
makeourdeuptiuebsrietoservieeand
amplte
ehproerveidsiiotnenfodr
honour of the country. (Hear, hear.) I will assume, I
say, that we shall continue to have the same fund appli-
cable to the yearly reduction of the charge which we have
had heretofore, and taking this at 80,0001. per annum for
the eight years up to 1861, this will give you a sum of
640,0001. Adding this reduction of charge, which may be
reasonably expected, to the sums to be created by the new
means of taxation—which latter I have stated to be
2,549,000/.—we shall have an aggregate total of 3,813,0001.
Then, in 1859-60, there come falling in the heavy burdens
of the Long Annuities and of another large portion of our
terminable annuities, which together will operate a relief
of 2,146,0001. Adding this amount to the sum of
3,813,600/., which I have already stated, you will find
that, between the additional sources from taxation, and
the reduction of charge which will accrue in the interval,
and the falling in of the Long and other Annuities at the
expiration of the period I have named, there will be an
available increase of means at the disposal of Parliament,
should the present plan of the Government be adopted, to
no less an amount than 5,959,0001., against the 6,140,000/.
of income tax, which will be the total amount of that tax
at that period. (Cheers.) Thus, if the committee has
followed me, they will understand that we stand on the
principle that the income tax ought to be marked as a
temporary measure
be(hear, hear) ; that the public feeling
that relief should given to intelligence and skill as com-
pared with property, ought to be met and may be met ;
that the income tax in its operation ought to be mitigated
by every rational means compatible with its integrity, and
above all that it should be associated in the last term of
its existence, as it was in the first, with those remissions
of indirect taxation which have so greatly redounded to the profit of this country, and have set so admirable an
example—an example that has already in some quarters
proved contagious to the other nations of the earth. (Hear,
hoar.) These are the principleson which we stand, and the
figures. I have shown you that if you grant us the taxes
which we ask, the moderate amount of 2,500,0001. in the
whole, a mush less than that sum for the present year, you
or the Parliament which may be in existence in 1860, will
be in the condition, if you so think fit, to part with the
income tax. (Hear, Lear.) lam almost afraid to look at the
clock— (cheers)—shamefully reminding me, as it must, how
hens. I have trespassed on the time of the house. (Cheers.)
Aln can say in apology is, that I have endeavoured to
keep closely to the topics which I had before mo
"—immensum spatiis confecimus sequor,
Et jam tempus equum ftunantia solvere cella."
These are the proposals of the Government. They may be
approved, or they may be condemned, but I have this full
confidence that it will be admitted that we have not sought
to evade the difficulties of the position—(hear)—that we have
not concealed those difficulties eitherfrom ourselves or from
others—that we have not attempted to counteract them by
narrow or flimsy expedients—(hear)—that we have prepared
plans which, if you will adopt them, will go some way to
close up many vexed financial questions, which, if not now
settled, may be attended with public inconvenience, and
even with public danger, in future years and under less fa-
vourable circumstances—(hear)—that we have endeavoured,
in the plans we have now submitted to you, to make the
path of our successors in future years not more arduous,
but more easy—(hear)—and I may be permitted to add, that
while we have sought to do justice by the changes we pro-
pose in taxation, to intelligence, and skill, as compared with
propert whe we have sought' to do justice to the great
labour commonity of England by furthering their relief
from indirect taxation, we have not been guided by any de-
sire to put one class against another. We have felt we
should best maintain our own honour, that we should best
meet the views of Parliament, and best promote the inter-
ests of the country, by declining to draw any invidious dis-
tinction between class and class, byadopting it to ourselvs
as a sacred aim to diffuse and distribute the burdens, if we
• must—and the burdens, if we can—with equal and impar-
tial hand ; and we have the consolation of believing that
by proposals such as these we contribute, as far as in us
lies, not only to develop° the material resources of the
country, but to knit the various parts of this great nation
yet more closely than ever to that throne and to those in-
stitutions under which it is our happiness to live. The
right hon. gentleman resumed his seat amid loud, long-
continued, and general cheering.
The CHAIRMAN having read the resolutions which had
been put into his hands by the Chancellor of the Exchequer,
Mr. DISRAELI asked on what daythe right hon. gentle-
man proposed to take the discussion on them ?
The CHANCELLOR of the EXCHEQUER said that he
should lay the whole of the resolutions on the table, and
proposed to have the discussion on them on Monday
next,
taking the income tax first, the legacy duty next, and the
spirit duties third.
Mr. HUME said that the speech of the right hon.gentle-
man was so extensive that it was impossible, without some
consideration, to weigh its disadvantages and its advan-
tages. There was this great point about the statement,
that it manifested the determination to carry out the
principles of free trade, but he deeply regretted the manner
in which the question of the income tax had been taken up.
He was satisfied that the taxation of the country would
never be placed on a proper footing until a property tax to
a large extent, and justly regulated, became a permanent
source of revenue. From such a tax eight or nine millions
a-year might be easily raised. He regretted, too, that any
increased taxation should have been proposed, considering
as ho did the expenditure which gave rise to that increased
taxation worse than useless. (Hoar.) He thought con-
tinuing a tax for nine years was almost making it a per-
petuity without giving the house the advantages of de-
ciding whether or not it should be 'so. If they were
to add to the taxation, he must express his regret that
they had not adopted a simple, easp, and possible mode of
raising the required amount of revenue without one-tenth
of the difficulties which the Chancellor of the Exchequer
had felt in his budo et.
Mr. FREWEN hoped the right hon. gentleman would
give some explanation of what he meant to do with the
land tax.
The CHANCELLOR of the EXCHEQUER said that
under the present system, they might redeem a given
amount of land tax, by transferring to the Commissioners
of the National Debt as much stock as would produce a di-
vidend the amount of the land tax and ten per cent, more.
What he proposed was, that instead of being boundto give
as much stock as would produce the amount of land tax and
10 per cent. more, they might redeem it by giving as much
stock as would produce the duty less 7i per cent. ; that
was, altogether, 174 per cent. less than at present.
Mr. 13ALL had been prepared to receive the budget of
the right hon. gentleman with very great apurobation, but
ho received it with deep regret, and should ( o all he could
to induce the house to vote against it when it came regu-
larly before them. When the corn laws were repealed, it
was expected that some relief would be given to the agri-
culturists, and he was exceedingly surprised, therefore, that
the right hon. gentleman had neglected to afford them the
relief of the repeal of the malt tax. As to the reduction
of the duty on tea, the poorer classes would derive no be-
nefit from it, for it had been ascertained that the greater
part of the tea that was consumed was purchased in quan-
tities from a quarter of an ounce to a quarter of a pound.
The late Government was wrecked on the budget of the
right hon. gentleman below him, and it was not unlikely
the present Government might be wrecked from the same
cause.

Mr. MAGUIRE understood that, as to the advertisement
duty in England, there was to be a remission of is., so that
it would be 6d. only, instead of is. 6d. But the advertise-
ment duty in Ireland was but ls. Ho should wish, there-
fore, to know what the duty was to be in future. In Ire-
land there was no such thing as a supplement to a paper
known, and he believed that even in London, too, the Tinto
alone published a supplement.
The CHANCELLOR of the EXCHEQUER was under-
stood to say, that, with respect to the advertisement duty,
he was willing to compound for it in Ireland at the same
amount as in this country.
Mr. COBDEN wished to know whether the right lion.
gentleman proposed to remit the stamps on all supplements,
or whether he meant to put the stamp on supplements with
news.

The CHANCELLGR
world notolfth extendoEXC.ll EtQoUsuErßplesliedntthsethat
were re-
mission of the stamplsvioont
of newspapers.
simply an exto n
Mr. COBDEN—Did_ the right hon. gentleman mean that
pplements might_g_P_Py post "Th CHANCELLOR of the EXCHEQUER—
Mr.Certinly° COBDEN believed that there was but one news-
p in the kingdom that published a supplement full of
-ape/.
advertisements.
Mr. IMAM wished the Government would take into
their consideration this absurdity—that ships built with
foreign timber might be brought into this country free of
duty, but timber to build ships here cannot be brought in
without paying duty.
The CHA.NCELLOR of the EXCEIEQTJER was ex-
tremely sorry to say his want of means, and not his want
of will, prevented him from taking off the timber duty. If
his hon. friend would give him 300,003/. or 400,000/. more
ho might be able to do so. (A laugh.)
Mr. HUME said, that if th 3 property tax was fairly
levied it would give 10,000,000/., and would enable the
Chancellor of theTExchequer to take off the timber duty,
and do much more.
The house then resumed, and the Chairman reported
progress, and asked leave to sit again.
SOUTH SEA AND OTIIER ANNI7ITIES COMM.I7-
TATION BILL.
bill,on the order of the day for the second reading of this

_____,........„am....../........m.„,..m.m.......
/ Mr. J. B. SMITH said, he would not object to the
second reading, if it were not understood that by doing so
the house assented to the principle of the measure.
The CHANCELLOR of the EXCHEQUER said, his
reason for desiring that the house should kindly consent to
the second reading was, that the question of time was very
important for the convenience of parties, as notice must
be given to all persons holding South Sea Stock.
Mr. HUME objected to the principle of the bill. lie
thought they were not in a condition to make such an ex-
periment as was proposed by this measure.
The bill was then read a second time, and ordered to be
committed on Thursday next.
COMBINATION OF WORKMEN.
On the order of the day for the third reading of this bill,
The ATTORNEY-GENERAL objected to the bill being
read a third time, on the ground that the measure was unne-
cessary. He understood the object of it was to correct a
supposed misapprehension of the law on the part of Mr.
Justice Erle in a case that was tried before him at Stafford
in 1851. It was supposed that ho laid it down as the law,
that workmen could not legally combine for their mutual
protection with a view to keep up the rate of wages or
limit the number of hours during which their masters
might employ them. He believed the learned judge had
stated the law correctly ; but whether that were so or not,
the Court of Queen's Bench had stated the law upon the
subject quite correctly. The learned judge stated that the)
law was quite clear, and that workmen had a right to com-
bine for their own protection, to obtain such wages as they
chose to demand, or to gain themselves any benefit; but
a combination to prevent men from working, or for any
such purpose, was unlawful. The case afterwards came
on before the Court of Queen's Bench, and they laid down
the law in the same way. He could not, therefore, think
this bill was necessary.
Mr. DRUMMOND said it was very well for the learned
gentleman to say the bill was unnecessary, but he had
stated no other reason against it. It was to do what was
intended by the Remedial Bill introduced by the hon.
member for Montrose several years ago. There had been
great discussions between the masters and workmen for
many years, and Lord Stanley, at that time a member of
the house, presided over the committee, and a bill was
prepared, with which all parties were satisfied, and which
put an end to all disputes. So the matter stood as to the
taad(hnrinoerael aaarlie
hoot
wothbr
another
see
eao rrul
na.
necessity of the case. The bill might be unnecessary for
the
Attorney-General, or possibly for himself, but there
had been contradictory decisions in the courts of law.
) kinv, Lgbo Lord Chief
might
he waas
enJusticeot
whoi
immortal—(a
Campbellluj,n oi.tewan (oatm
laugh)—
and
Jag
uho
gst
Joseph,
ahz,
might decide another way. As a proof that
the t
clearan d,toupinaye
tpheerscoonsstsha,
adiogounot
tiimoriosorooer
AfsotllarttihnhegraNsvkheadt
tbilyotlhiaws
rbill Nyvawsats). have a declaratory statute
ptohsaetd tahae
therebill. amare to b e a
Mr 31 r
uf . FmOER St
hToEuRg
hot f.
difference of opinion among the lawyers it d • ble
to pass the present bill to settle the doubt wasddesirable
Mr. HADFIELD supported the bill.
The house divided :

For the third reading
Against it

... 57
•• . 70

Majority against the bill ~.
... 13
THE CUSTOMS' DEPARTMENT.

Mr. WILSON gave notice that he would make his state.
ment on this subject on Thursday at 5 o'clock.
On the motion of the same honourable member a bill
was brought in and read a first time to consolidate the
London and Edinburgh Gazettes.
The other business on the paper being disposed of, the
house adjourned at a quarter past 11 o'clock.

THE FRENCH EMPIRE.

The ceremony of presenting the newly appointed Car-
dinal Morlot, Archbishop of Tours, with the cardinal's
hat, took place on Sunday, at the Tuileries. Two court
carriages conveyed the new cardinal and his suite to
the palace. He was accompanied by Mgr. the Ablegate
of the Pope, by one of the noble guards of his Holiness,
and by a master of the ceremonies ; and his suite con-
sisted of the Abbe Malmouche, First Grand Vicar of
his Eminence ; and of the Abbes Monceau, canon of
Tours ; Etienne, general superior of the seminary at
Tours ; Deguerry, cure of the Madeline ; Martin de
Noirlieu, curs of Saint Louis d'Antin ; Duplessy,
honorary canon of Nevers, curs of Pithiviers ; Mac
Carthy, Chicollot, and Noirot, Inspector-General of
Public Instruction. The cortege alighted at the Pavil-
lion de Fiore. The cardinal proceeded to a room near
the chapel containing the ornaments of his dignity ; and
the Ablegate was conducted to the audience of the
Emperor, in the cabinet of his Majesty, where the
princes of the Imperial Family, the Ministers, and
the officers on service were assembled. The ceremony
was both gorgeous and impressive.
It appears that Louis Napoleon has once more ap-
plied to the Austrian Government for the remains of
the Duke de Reichstadt. His wish is that the remains
of, the Emperor Napoleon and his son should be trans-
ported at the same time to the Cathedral of St. Denis.
It is probable that this new request will meet with the
fate of its predecessors. The Austrian Government has
steadily refused to give up the body of the Duke de
Reichstadt, which lies amidst the rest of the Imperial
family of Austria in the Church of St. Augustine, at
Vienna.

Every day adds to the number of persons arrested in
Paris and the departments. These measures are directed
exclusively against the Socialists, and have been caused
by a subscription for a loan which MM. Felix Piat,
Biochot, and Caussidihre have attempted to get up in
France. Some of the subscription lists have been dis-
covered, and all the subscribers have been arrested.
L The legislative body met yesterday ;M. Billault in
the chair. The Assembly then commenced the discus-
' sion of the bill relative to the promotion of the superior
officers of the navy.
The Patric says :—"The Chartists of London cele-
brated the anniversary of Robespierre on the 13th.
The French refugees were invited to attend, but only
Nadaud and a score of Socialists of the lowest class
were present."
The market for rentes continues to improve, and
prices have again advanced, exhibiting firmness, with
an upward tendency at the close of business. The
Three per Cents. for the account rose 30c., and the
Four-and-a,-Half per Cents. 40c. ; in the Four-and-a-
Half per Cents, for cash no change occurred, but the
Three per Cents, advanced 25c. A decline of sf. again
took place in Bank shares. The closing prices were :
For Cash : Three per Cents., 80f. GO. ; Four-and-a-Half
per Cents., 103 f. 70e. For the account : Three per
Cents., 80f. 60c. ; Four-and-a-Half per Cents., 103 f.
70c. Bank shares, 2,730 f, In the railway share mar-
ket to-day there was much activity, and an advance in
price took place in those securities : in Paris and Rouen
to the extent of 20f., and of 13f. in Paris and Stras-
bourg; most of the other principal lines improved from
sf. to 10f. each. The last prices were : Northerns,
917 f. 75c. ; Orleans, 1,050 f. ; Paris and Strasbourg,
853 f. ; Paris and Lyons, 949 f. ; Paris and Rouen,
1,105 f. ; Lyons to the Mediterranean 812 f, 50c. ;
Western of France 777 f. ; Rouen and Havre, 532 f.
50c. ; Bordeaux and Cette, 647 f, 75c. ; Caen and
Cherbourg, 635 f. ; Dijon and Besan9on, 580 f.

SPAIN.
We have received in due course the Madrid journals
and letters of the 13th, but they do not contain a line of
information which had not previously reached us by ex-
press or by telegraphic dispatch.
The Deaotts says :—" In the list of the new Spanish
ministry figures the name of M. Ayllon, now Spanith
Ambassador at Vienna. There is reason to believe that
General Lersundi has not consulted him on the subject,
and that he is not certain of his consent. The friends of
M. Ayllon, who is very well known in Paris, where he
was attached to the Spanish embassy, doubt his accept-
ance of the portfolio of Foreign Affairs. We, in fact,
remember that he was some years since named to that
important post, but that he refused it."
We read in the Union:.—" Our letters from Madrid
confirm the facts before stated on the subject of the sus-
pension of the Cortes. The following. are more complete
details : --The speeches of General Emanuel Concha to
the Senate, and of General Prim to the Congress, in the
sitting of the 6th, excited great alarm and considerable
discontent in the Court, and it is raid that they
were sent for to the palace in order to be remon-
strated with. Far from paying any attention
to this, General Concha declared that in the
sitting of the Sth, he would produce written proofs
of the charges which had been made on the inalversa-
tions which had taken place not only on the railways
from Madrid to Aranjuez, and from Aranjuez to Al-
manza, but also on other points of the public adminis-
tration. His declarations, ho said, would tend to com-
promise somovery exalted personages, but nothing should
stop him. In the evening the President of the Senate
twhaes
doergdreeree d e
ft os
ursepa:ln
sai
et e v
and
re
cryq
uoeps
endi gl
totfo tall el
allow
sitting
any
one to speak, and it appears that, in order to support
these orders, a company of infantry was in readiness to
clear the hall of the Cortes in case of resistance. In
consequence of this event several high functionaries,
both civil and military, were
tclimensispsaedn,siM.
particular)territory;
General Schnell, director-general .of cavalry, and
Orvognes, civil governor of Madrid. Others re
orders to take up their residence in ceived
provincial towns,
the namesand
several
of
wer
the
latter e
leaxpeerlle d from h
are not mentioned.i "

ITALY.
The Ticino Gazette announces that the Council of
State of that canton having asked permission of the
Federal Council to devote the 10,000 f. it has sent for
the relief of the poor Ticinese expelled from Lombardy,
to furnishing those who are willing, with sufficient
money to leave the country in order to seek work in
foreign parts, the Federal Council has acquiesced in that
course.
A letter from Milan of the ,in the nione of
Turin, states that the deputationl3th of Milanese gentlemen
who had gone to Vienna with an address suggested to
them by Count Gyulai himself praying for a mitigation
of the sequestration-decree, has met with an extremely
cold reception at Vienna.
The Grand Duke of Tuscany left Florence on the 11th
for Leghorn, in order to visit the preparatory works in
the new port of.that city, the execution of which is car-
ried on with gre*activity.

.-_

THE ZnicssoN.--This noble ship lies at her dock
in Williamsburg, where improvements are being made in
the machinery. The main difficulty hitherto encountered
has arisen from the want of a perfect connexion of two
sections of an air pipe, near the bottom of one of the cylin-
ders. Though connected by rivets, the working of the
engine prevented such a union of the parts as to allow of
the full use of the power otherwise available. It ig 8"`
that it has been determined to substitute a single casting
for the defective parts, and that the difficulty will
made.
The other
viated at once. This change is now beie..7l,
-1 1 when both are
engine has been perfect througho;
Ericsson will be in a much
complete, it is believed that the
,_
be
better condition condition to peovo her c. p
Herald.