The Sun.
London, England, 1854-03-07 00:00:00

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It has been doubled in the interval, owing to the great
pressure in the money-market ; but that has not been con-
fined to this country, the very same thing having taken
place in France. In that country the short-dated Bons de
Tram., which correspond to our Exchequer-bills, which were
then 11 per cent., are now 3 per cent., and the long-dated,
which were then 3 per cent., are now 5. per cent. These
Exchequer-bills, which I am now asking the committee to
authorise the Government to issue, are in reality what the
other Exchequer-bills falsely purport to be—that is to say,
they are supply Exchequer-bills. The mass of unfunded
debt still passes by the name of "Supply Exchequer-bins,"
though it has ceased practically to have any relation to
supply at all, and in fact constitutes a debt which is per-
manent in itself, but the obligation of which is renewable
from year to year. When you confer, under the regular
sessional act, authority to raise so many millions by Ex-
chequer-bills, you do it with the view of replacing them as
they become due by other Exchequer-bills. But these aro
Exchequer-bills of quite a different class. These are to be
raised simply in anticipation of supplies, for which you will
have given authority, and when the supplies come in these
Exchequer-bills will be paid off out of those supplies so
realised, and no more will be heard of them. (Hear.) That
is the case with respect to the Exchequer-bills; but they
are connected with a subject to which I adverted at the
commencement of my remarks, and upon which some infor-
mation is due from me to the committee—l mean that the
committee ought to know the position of the public finances
with relation to the abortive operations (for they were
abortive in reference to the main purpose for which they
were undertaken) which were attempted last year upon the
debt and public balances. The committee are aware that
the commutation of stocks which it was proposed to effect
succeeded only to an insignificant extent, the whole amount
of the new securities created being about 3,500,0001. in con-
sequence of the commutation. Of the minor stocks, which
were to be compulsorily paid off unless commuted under the
act of last session, 8,003,000/. have been or will be presented
for payment ; and the public balances, which, as I said, are
now low, whereas 12 months ago they were high,•have been
employed in paying off those minor stocks, and will be em-
ployed in paying off what remains to be liquidated of them
upon the sth of April, together with supplying what is
necessary for a very useful operation—namely, the liquida-
tion of a debt which had been charged some time before
upon the land revenues of the Crown. It is not possible for
me to give to the committee a precise and accurate state-
ment of the cost or saving connected with these operations.
I can give you the saving, but I cannot precisely give you
the set-offs against that saving. The saving stands as fol-
lows :

Annual diminution of charge by stocks
paid off in January, 1851 £186,000
Ditto, by stock to be paid off in April
next
Ditto, by liquidation of debt charged
upon the Land Revenues 27,000
Minor charges extinguished 9,000

Total saving £285,000
But then, in consequence of the large drain upon the pub-
lic balances, it has been necessary to apply as a sinking
fund money, other wise available to the purchase of stock,°
to a considerable extant towards the redemption of the de-
ficiency. 2,300,0001. has already been applied in that
manner, and a further sum will be so applied. As a set-
off, therefore, against the saving which I have shown, I
take the saving which would have been effected by apply.
ing the sinking fund to the purchase of stock, up to the
sth of April, 1854. It is difficult for me to say to what
that saving would have amounted ; but, as far as the appli-
cation of those surpluses has at present gone, or can now
be foreseen, it would amount to about 102,0001. I think
it is possible that it may be necessary to make a further
similar application to the extent of from 1,500,0001. to
2,00,0001.; and, if so, I ought to add 50,0001. to the
100,0001. as a set-off against the saving by the extinction
of stocks. If, therefore, I take it at 152,0001., that will
leave a total net and permanent saving, in consequence of
the employment of the public balances, under the act of
last year, of 133,000/. per annum. (Hear.) I stated last
year, that however unfavourable the circumstances might
be, the process could not leave less profit than a permanent
saving of 100,0001, As far as lam able to correct the esti-
mate to the present time, I should place it at about
130,0301. The proposals which I have made, involving
some considerations of policy, and requiring a good deal
of reference to details, have led me into a statement
of considerable length, but the committee will at once
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apprehend that it is capable of being summed up in a
very few words. The amount, in effect, to these two
propositions; setting aside the collateral subject of bill
stamp, and such other subjects, which are, however,
of great importance to various classes—suchfor example as
the question with respect to the refining of sugar, upon
which I propose to declare the intentions of Government
upon some day after Easter—setting aside those secondary
and collateral points, I propose simply that you should in
the first place, agree to double the first half-yearly payment
of the income-tax in respect of the year 1854-55, and that
you should make provision for the interval which must
elapse, before the tax can be absolutely levied, by the issue
of Exchequer-bills, which issue of Exchequer-bills is to be
within the amount of 1,750,000/., and which Exchequer-
bills, if issued, will be paid off ont of the growing produce
of the revenue. Sir, we have sought in these propositions
to diseharge the obligations which, as we thought attached
to us as a Government. We have sought to make a com-
petent provision for the immediate exigencies of the coun-
try, and for carrying on the operations which are in pros-
pect with vigour. We have sought, also, to leave to the
House of Commons the fullest possible control over the
public expenditure ; and we have placed ourselves in such
a position, that if the operations of war should be pro-
longed, it will be necessary for us again to come to you and
ask you further to enlarge the resources of the Exchequer.
Sir, if that necessity shall arise, we shall again appear
before you with the same confidence with which we now
make our demands ; and we are satisfied that it will be the
opinion of Parliament that, in thus proposing a measure
which is adequate for the needs whichhave been made the
subject of reasonable calculation, and inleaving to a future
period of the session any recurrence to you that may be re-
quisite for further needs then emerging, we have taken the
course which is most in accordance with our own position
and duties as the Ministers of a constitutional country,
which is most for the interests of the people of this country
and which, we are satisfied, will not tend to any forfeiture
of the confidence or approval of the House of Commons. I
propose to move at present the resolution with respect to
the Exchequer-bills ; and, with respect to the income tax
resolution, I propose that the Committee of Ways and
Means should meet again on Monday next. (Cheers.)
The resolution that 1,750,010/. Exchequer-bills be voted
having been read by the CHAIRMAN,
Mr. BALL was understood to ask whether the proposal
with respect to the income tax would not operate very un •
fairly in the case of a person whose income might be larger
at the beginning of the year, when the tax would be high,
than at the close of the year, when it would be low ?
The CHANCELLOR of the EXCHEQUER said he was
not sure whether the hon. member was precisely aware of
the manner in which the income tax was levied. Where
there was an assessment every assessment was annual, but
the levy was in two moieties. The assessment remained
precisely as it was, and it would be levied upon precisely
the same basis as at present ; but it would be 10 jl. upon
the year instead of 7d., and it would be 7d. upon the first
half-year instead of 31d. The 100. would not be paid in
two moieties of 51d., but there would be one payment of
7d., and another of 3id.
Mr. HUME expressed his general satisfaction at the
statement which had been made by the Chancellor of the
Exchequer, which should operate as a great encouragement
to those who had advocated the reduction of indirect taxa-
tion. When he heard the right hon. gentleman refer to
Mills, he had hoped that he was going to propose that all
real property, down to the lowest amount, should be rated
and charged to the income tax, and that incomes from other
sources, down to as low as 501. or 601. a year, should be
brought within the scope of the tax. With regard to the
war in which this country was about to engage, he ob-
served that, before it had been possible for the house to
consider the expenses and evils of such a war, numerous
resolutions were passed by the mass of the community and
by corporate bodies, calling upon Government to go to war.
Those who had been so ready and willing to urge the pro-
secution of war should now be called upon to bear a por-
tion of the expenses, many of them being at present ex-
empt. Adverting to the insurance duty, he stated that the
property at present insured throughout the country did not
amount to a third of that which would be insured were the
duty taken off or materially reduced. He had hoped that
the duty would have been so lowered as to have enabled the
mechanic to insure his tools against loss from fire. The
present charge for effecting an insurance was Is. 6d., which
together with a Crown duty of 35.) was much more than the
working man could afford to pay. Without touching upon
the question of the reduction of the paper any other duties,
he most strongly urged the necessity for the modification
of the insurance duty.
Sir H. WILLOUGHBY was desirous of asking the
Chancellor of the Exchequer whether the national debt had
been increased from the sth of January, 1853, to the sth
of January, 1854: and whether any new Three per Cent.
Stock had been created ? The question was not an idle
one, because a paper now upon the table of the house
showed that fresh stock to the amount of 383,0001. had
been created in the month of May, and during the autumn
of last year. It appeared that the commissioners for re-
ducing the national debt had authorised a sum of money
belonging to the savings banks, and amounting to
1,200,0001., to be invested in the Exchequer Bills at a
time when the right hon. gentleman (the Chancellor of the
Exchequer) had most unwisely, as he (Sir. H. Willoughby)
thought, reduced the interest. A clause in an act of Par-
liament passed in the reign of William IV., gave power to
the commissioners for reducing the national debt to con-
vert money from Exchequer Bills into stock, and viceversa ;
and, if it were true that in the year 1853, 1,274,0001. of
Three per Cent, Stock had been created, he could not see
the use of granting any more Exchequer Bills. He con-
curred in the remarks of the Chancellor of the Exchequer
with reference to the sad pre-eminence of this country in
debt ; but he professed that he did not understand why a
debt should be created without the knowledge of the
house. If our debt was to be increased, it should be in-
creased directly, and not by indirect means. He had
thought that the right hon. gentleman the member for the
University of Cambridge (Mr. Goulburn), who had been
Chancellor of the Exchequer in a former year, had put an
end to the system of which he (Sir H. Willoughby) now
complained, and he remembered that, at the time he re-
ferred to, the right hon. gentleman (Mr. Goulburn) pointed
out the immense evils that resulted to the savings banks
from the adoption of the system. (Hear, hear.)
Mr. W.WILLIAMS gave the Chancellor of the Exchequer
every credit for the means he had suggested for raising the
necessary surplus for carrying on the impending war, and
remarked that the course pursued by the right hon. gentle-
man was much different to that pursued by Mr. Pitt at the
commencement of the last war. In the latter case the levy-
ing of taxes for the purpose of carrying on the war was
postponed for between four and five years, and the conse-
quence was that between 100,000,000/. and 200,000,000/,
were added to the national debt which the people of the
present day and their posterity had to pay. In the year
1797, before the war taxes were laid on, 34,000,0001. were
borrowed, though only 17,000,0001. were actually received.
He (Mr. Williams) should not have risen to address the
house now, had not the right hon. gentleman (the Chan-
cellor of the Exchequer) in a very pointed manner referred
to an estimate he (Mr. Williams) had submitted to the
house last sassion, in bringing forward a motion to extend
the probate and legacy duty to real property. The esti-
mate of the right hon. gentleman far exceeded than which
he (Mr. Williams) had laid before the house.

The CHANCELLOR of thJ EXCHEQUER was under-
stood to state that he had not referred to the hon. member
for Lambeth.

Mr. WILLIAMS said, the right hon. gentleman had
promised last se'sion to extend the legacy duty to tithes,
and he (Mr. Williams) expected that proposition would
have been carried into effect now. He had also understood
the right hon. gentleman to propose to extend the probate
duty to real property ; and, had those two points been
brought forward now as a part of the budget, he believed
nearly all the increase proposed in the income tax might
have been dispensed with. In the absence, however, of
extended legacy and probate duties, he highly approved
the course pursued by the right hon. gentleman in raising
the addition required n the revenue by an increase of the ,