The Sun.
London, England, 1853-05-03 00:00:00

f the
great
events occurred
ofesia thatmsotherghtw
hitObn. theg enitoleemoal
tax,e
rod lun ee' a
may
:,iii:,,o.
~3i,i,,,_ 1
aN Vwv eee r
aecrobc
conveyed
elle
ya set i
di nn Cgae.
ni3 0
Till Sie o
rt
r them
to the ordinary sources of revenue, we
p
revenue equal to all the expenses of the war,
and yet ,I a
.vith only a slight surplus of expenditure--the
revenue bei.
ug 65,000,0301., and the expenditure 67,000,0001.
—or the rep eras,
I forget which way the balance was.
'
Now, if that were so, unquestionably the income tax
would be that ' lossal weapon which he so justly described
eA,
it. But between :1806 and 1816, the year of the peace, the
right hon. gentleman forgot to say that although we had a
revenue of 65,000,000., meeting an expenditure of
67,000,0001., yet that there was simultaneously created a
vast addition to the public debt, and that between 1806
and 1816 that piblic debt had incresed from 600,000,000/.
to about 840,000,0001. (Hear, hear.) Hon.' gentlemen
must remember this, when they hear of the efficacy of this
colossal instrument, that there was a deficit in 1814, 1815,
and 1816, of 91,000,0001. That was the state of our
finances'. We had an increase of our deficit simultaneously
with the use of this charmed weapon, whose qualities the
Chancellor of the Exchequer so ably dilated on. There is
one other point in the income tax to which I must advert,
and that is it's extension. Assuming, as I do, the perma-
nent feature of this tax, I think that no class or
country should' have been exposed to it without
a mitigation of Its injustice. But I must argue as if
this tax will cense. And now I have to consider its
! extension to Ireland. The right hon. gentleman the Pre-
sident of the Board of Control (Sir C. Wood) said that I
had proposed the extension of the income tax to Ireland,
and that I did not propose a measure to deal with the con-
solidated annuities. I must say, sir, that I see no
connexion between the income tax and the consolidated
annuities. (Cheers.) I see no connexion between the
incidence of imperial taxation and the results of local ar-
rangement, and I think it most impolitic, indiscreet, and
unwise ever to mix them together. (Hoar.) Sir, I have
heard, not in the course of this debate, but of conversa-
tions within this house, of something like a compact rela-
tive to the income tax and the Irish members. (Cheers.)
Now, of all the men in this house, I am one who, perhaps,
needed less than any other to have a compact with any
Irish member as to the policy which I felt it my duty to
recommend with regard to the income tax and the conso-
lidated annuities. Four months ago I had to consider in
the responsible situation in which I was then placed, the
extension of the income tax to Ireland, and, after a ma-
ture consideration of the subject, we unanimously came
to the conclusion that it would be unwise and inexpedient
sxidteenradbilte tpeo
rilzzawndbiaotbthweepprerosepnotsemdomtoenrta, be
con
to extend it to Ireland. We not only thought it unwise
t°e
intrust us with this tax we had no immediate intention of
in this respect. It was our opinion,
need not give, but it was arrived at
fcohranregainsognosuwrbpoielbie i s
after ample and anxious consideration by the late Govern-
ment, that it was quite out of the question to extend the
income tax to Ireland. Sir, I am prepared to support
the same policy now that I advocated on the other side of
-the table. (Hear.) It is not true that I 'was not prepared
to make a proposition upon the Consolidated Annuities. I
say that these two subjects ought not to be mixed up with
each other, and that they have no necessary connexion.
On the contrary, I said that I would take the earliest day
' Annuities. I said that, after I stated that the Government
1 to submit a resolution to the house on the Consolidated
did not intend to extend the income tax to Ireland. The
the Consolidated Annuities was certainly not that which
proposal I was prepared to bring forward with regard to

-
the right Eon. gentleman has made, but it was one formfled
satisfactionup n equity,
to
a
which
those ullvdh, I
wereo think,
interested hav e givenin
the
acompleteffair.
I have now touched upon the principal points of the first
would,
resolution of the right hon. gentleman. I might stop here,
but I beg the permission of the committee—and I will not
abuse their indulgence—to allow me to express the general
opinion which I entertain with respect to the financial
policy recommended by the Chancellor of the Exchequer.
Sir, I have one great objection to that policy. It appears
to me that the whole of the financial policy of the right
hon. gentleman is conceived in a spirit of injustice to the
land. (Loud cheers.) Now, sir, that is a subject on which
I have no wish to indulge in declamation, as the hon.
member for the West Riding said of the Chancellor of the
ExcL • per. lam ready, with the permission of the com-
mittee, to establish the truth of my opinion by reasoning
and by facts. And, as I plead for an interest which is
now surrounded for no artificial legislation—as I give you
credit for sincerely wishing that all classes of the comma.-
nity should, so far as it is possible, receive from the Legis-
tun, especially upon financia (subjects, justice,—l trust
you will listen to me with temper and toleration, and that
you will not permit the memory of ancient feuds to divert
your minds from the facts which I shall lay before you.
(Hear, hear.) Now, sir, I would ask the committee to
view for a moment the state of our revenue in its amount.
If you look to the last returns you will find that the ordi-
nary sources of our revenue, deducting that income tax
which was only proposed as a temporary tax, and which as
A temporary tax is the basis of the financial scheme of the
Ministry—deducting that temporary tax from the ordinary
sources of revenue, the revenue amounts to about
46,000,0001. sterling per annum. This great country, with
the most extensive commerce of modern times,—the most
admirable manufactures, governed by the great towns,—
this country of progress raises an imperial revenue to the
amount of 46,000,0001. sterling per annum from its ordi-
nary sources. Now, let the house observe that one-fourth
of that revenue is raised by a duty upon a single crop of
they British farmer. (Cheers.) The average of the united
du es that you levy, directly or indirectly, upon barley
is wards of 230 per cent. (Hear, hear.) Now, let me
show you how this system operates—how it must operate
under the financial policy recommended by her Majesty's
Government. (Hear, hear.) You are called upon in
this scheme to deal with the tea duties. It is unneces-
sary for me to say that that is a proposition which I can
view with no repugnance ; I have always considered that
the tea duties, per se, were a most unwise impost, and
one which a Minister of Finance, at a favourable oppor-
tunity, and in a proper spirit, ought to deal with ' • and I
proved the sincerity of my views by dealing with them.
(Hear, hear.) I make no comment to-night upon the pro-
position of the Chancellor of the Exchequer with respect
to the tea duties : I believe that the supply is illimitable
which China can afford us of tea, and therefore, though
I should have preferred my more prudent arrangement, I
Am not terrified by the arrangement of the Chancellor of
the Exchequer. But if I were of the same opinion as the
Chancellor of the Exchequer, or the member for the Uni-
versity of Cambridge, that the supply was limited, then I
confess, if I were Chancellor of the Exchequer, I should
not feel as easy as he seems to be. (Laughter, and cries of
" Hear, hear.") But understand what you are going to
do. You are going to reduce the duties upon tea more,
than 100 per cent. ; you are going to bring tea into in-
creased competition with those beverages that are prepared
from the productions of the British farmer. (Hear, hear.)
It will probably become a substitute for spirits and beer
produced from barley. (Hear.) Manygentlemen opposite
say that they have no objection to tea or to wine becoming
a substitute for spirits—for whisky, for gin, or for beer.
Well, if that is the natural course of human affairs—if
that change resulted from a concomitant change of habits
and feelings and tastes in the people, he would be a very
unwise man who should sot his face against the change.
But, if that change is produced by the foreign products
entering into competition with the English products, with
the immense advantage of being taxed by half less, then
their substitution for the products of the British farmer is
in fact not the consequence of a change of taste in the pe)-
ple, but of your fiscal injustice. (Hear, hear.) And that
is what I wish to impress upon you. Rely upon it, you
may crack jokes about reducing the malt duties, and re-
missions of duty going into the pocket of the brewer, and
maudlin philanthropists may denounce dram-drinking, and
say that they will not encourage a legislation that gives
any impetus to such a habit; but the jests and jokes even
of a President of the Board of Control will be baffled by
the inexorable principles of political economy—(hear)—
and the maudlin philanthropist who denounces dram-
drinking, but is nothing loth to receive the dividends
which dram-drinking supplies, is not a legislator who I
hope will ever influence the decrees of the House of Com-
mons. (Hear, hear.) 11,000,0001. or 12,000,0001. a-year
can never be raised without being paid by the consumer,
and, if paid by the consumer, they must restrict the in-
dustry and restrain the trade and commerce of the man
that produces. (Hear, hear.) It is of very great impor-
tance, no doubt, that we should deal with the excessive
indirect taxation that attaches to many foreign articles ;
it is of great importance that we should extend our com-
merce with India and China on a sounder basis ; and that
is one of the main reasons why we should deal with the
tea duties. It is of very great importance that we should
increase our commerce with France and the south of
Europe ' • and that is a very good reason why we
should deal with the wine and brandy duties. But,
irrespective of political justice, have you considered
the fiscal consequences which must accrue if you persist in
lessening the indirect taxation upon the Chinese tea or the
French wine, and at the same time leave the enormous im-

post that exists upon the malt and the spirits thataremade
from British produce? (Hear.) That was the reason that
induced the late Government to make up their minds to
deal with the 11,000,0001. or 12,000,0001. that you raise
from a tax upon a single crop of the British farmer. We
wore as desirous as gentlemen opposite to increase our com-
merce with China, and to expand our trade with France;
but we felt that we had a primary duty to fulfil, and that
we were bound simultaneously to reduce the burden and
mass of indirect taxation that pressed upon the industry of
the British producer. Irrespective of political justice. I
ask what must be the fiscal consequences of articles of fo-
reign product—like tea and wine—coming in at reduced,
and, if the system of the right hon. gentleman be ever con-
summated, perhaps at nominal duties, and supplanting the
beverages that are produced from the barley of the British
cultivator of the soil? What will become of your revenue
of 11,000,0001. or 12,000,0001.? (Hoar.) By every conside-
ration of a sound finance, irrespective of political justice—
which is a higher consideration than sound finance even—
you ought at least to take care, when you are bringing in
articles which enter into competition with articles produced
by the English cultivator of the soil, that thes _compe-
tition.
competition
which he enters into is, as you say,
an unrestricted
e
(Hear.) But wln_lzsiltehethcoeursarereducing by more
recommended by her
Majesty's Ministers? W
than 100 per cent. the tax upon tyea, while they are pre-
pared at a favourable opportunity probably to deal also in
the same manlier with wine, while they are allowing these
foreign
articles to enter into
per competition with articles f
British growth that are subject to a duty of 200 p o
the only proposition they make with respect to this amount
s
of indirect taxation is to add 500,0001.
to the
is already found so oppressive. (Hear. which
)
amount
justice of the policy of the Governmentas to therlanfoarwithuel
respect to dealing with indirect taxation.a I am asking no
favour, mind you, for the land in
glad if any gentleman can get u.
shall be
P, with the most
behalf. king
I
extreme views of the subject of:i unrestricted competition,
and vindicate their policy,
we are bound,
if we admit foreign products rikeeartet alndsawy ine at much re-
duced duties, to deal also with that immense taxation
which we raise from English articles, for which these fo-
reign products will in all
I cannot imagine
ttrobabilitat there is y be a substitute.
(Hear.)
question the policy, or the wisdom, or the justice of that
any one who will
proposition. (Hear, hear.) Now, if the financial policy
of the right hon. gentleman deals with the indirect taxa-
tion in so unjust a, manner as regards the /and, what is it
doing atwtlry,sawmeefitnimd
tehlvth our direct taxation ? (Hear,
hear.)
. B—trig is the first thing that meets
us :—A farmer finds, first place, that the duties
upon barley indirectly affectln thee whole soil of the kingdom,
and that his product with an immense impost is placed in _-
unrestricted competition with his foreign rivals, who have
to pay a much reduced rate ; he finds, in addition_toThie'
that the indirect taxation upon the article he produces is
increased ; and what more does he find when he leaves the
domain of indirect taxation? He finds thd right hon. gen-
tleman saying, " You will meet this increased competition
with increased indirect imposts, and, in addition to all
this, to sustain you in the contest, we are going to put
upon you an income-tax." That is the position of the cul-
tivator of the soil ; what is the condition of the proprietor
to
of tho soil—the proprietor of the soil who has beenhis estate ?
devote his capital to tho improvementtax of
fhich act call
(Hear.) You are going to p P 62
extending the legacy duties upon all real pro
"t or ° I
amountt d a which will act as a
direct tax of a very considerable