The Sun.
London, England, 1854-05-23 00:00:00

two or three hundred thousand pounds of the sum sub-
scribed, upon which no instalments, were paid. This is a
mode of managing the public finances of the country which
produces only public scandal, and does no good to public
credit. (Hear.) I have by the a series of letters from some
of the most obscure and hopeless varlets in the we, id, all
subscribing 5,000/. to each of the series of the Chancellor
of the Exchequer's bonds. But that is not all ; these fel-
lows not merely sent in their subscriptions for the 15,0001.
of Exchequer bonds, but they have received an official
answer, not only giving them what they ask, but much
more, and begging them to take the whole series in the
"A" bonds, and assuring them that if they do so they
shall receive all the advantages which attach to the
other series. (Laughter.) The right honourable the
Chancellor of the Exchequer, with his great ability, may
no doubt prove this to be a most patriotic movement—one
equal to the " loyalty loan" of Mr. Pitt, of whose conduct
and example so much has been said. (A laugh). But if
you refer to these thins and these failures, the Chancellor
of the Exchequer indignantly refuses to listen to you. Who
would suppose, when they listened to the indignant obser-
vations of the Chancellor of the Exchequer, that he had re-
cently been in correspondence with all the scamps in Lon-
don. The right hon. gentleman comes forward as if he
were to be the victim of the Government he has served.
He will not allow his colleagues to take any share of the
faults he has committed, and he takes refuge in a quota-
tion certainly more classical than novel, and ono which,
considering the great classical education of the right hon.
gentleman, we might have expected would have been a
felicitous line. The house will probably recollect the cir-
cumstances, and I certainly thought at the time, when
the right hoc, gentleman made use of it, that he must have
venture a little on the forgetfulness of others :—a young
gentleman, attended by his companion, was detected in
plundering the Rutulians, and the young gentleman ex-
claims—
" Me, me - adsum qni feci in me convertite ferru."
If the right 'hon. gentleman had proceeded to the next
line, he would have found an appropriate rapier—
s" 0 Ratuli,emea, fraus omnis"
(Laughter.) And this, I would suggest, would be a good
motto for the new Exchequer-bonds. (Renewed laughter.)
I have endeavoured to point out the series of failures and
errors which have brought the right hon. gentleman to
his present condition ; and finding it impossible to escape
from the pains and penalties of an empty l'reasury, an ex-
hausted Exchequer, he is now brought to the last expedi-
ent of this loan in masquerade. (Laughter.) It was impos-
sible to add anything to the able remarks of the hon. mem-
ber for Huntingdon upon the inconvenience of raising
money in the manner proposed. If money was required
to be raised, it would be infinitely cheaper and more con-
venient to raise it by the ordinary mode rather than by
having recourse to these fantastical expedients. Besides
all the evils which you say Mr. Pitt committed, and which
you are so desirous of avoiding, you have already imitated
for you are now attempting to raise money at a discount.
(Hear, hear.) In order to show not only the inconvenience
but the danger of the course you have adopted by the at-
tempt to raise money by these bonds, I will instance the
case of the last loan made in 1817. When that loan was
raised for a great national purpose, it was raised in the old
fashioned style, in an official manner, and in a mode which
the public understood, and which generally succeeded, that
of giving 1001. Consols for as much as you could get for it.
(Hear.) The right hon. member for Halifax (Sir C. Wood)
went into the market with disadvantages which the right
honourable the present Chancellor of the Exchequer never
experience I, and he raised his 8,090,000,1. under the old
system without tlisturbie g the market one-half per cent.
But suppose he had raised those 8,000,0001. by the fantastic
projects of the present Chancellor of the Exchequer, and
had agreed to pay off the bonds at par in 1854, 1855, and
1856, what would have been the condition of the country
at this moment, and how grievously would the country have
felt this additional burden, to their already severe imposts
and taxation? (Hear, hear) It is perfectly idle to talk of
this vote being a question of confidence—a question of con-
fidence in a Minister who has asked for 10,0 0,0001. of
money and virtually received them, and we are not to set
our mark against a system of administering the finances
which we think is not only inconvenient, but which may
prove, as I have shown you just now, most injurious and
intolerable to the country. (Cheers.) lam sure the com-
mittee will vote upon this question according to what they
believe is for the advantage of the country. Sir, my opinion
is, that the advantage of the country will be best studied
by following as much as we can at this moment the prece-
dents which we possess for raising the ways and means of
the country. Now. I say there is no precedent for the
system of the right hon. gentleman, for it has this most
anomalous feature—it is paying off the amount of old debts
at the same time that it is increasing taxation to carry on
new war. (Hear, hear.) The right hon. gentleman is
defraying the legacy of burdens which bid wars have left
this country, whilst at the same time he is raising taxes
within the year to carry on new wars. The right hon. gen.
tleman laid down the other night a variety of principles
upon which he thinks the finances of the country ought to
be managed in a time of war, and the Secretary of the
Treasury had to-night re-echoed the same opinions and
quoted the authority for them, which the right hon. gen-
tleman did not—for all the opinions which he favoured the
house with as to the expediency of raising the supplies for
carrying on the war within the year, and not having re-
course to loans, are a reproduction from the "Financial
Reform" of Sir Henry Parnell, in language as well as sen-
timent. The name of Sir Henry Parnell will, I trust,
always be mentioned in this house with the respect of
which it is worthy. He was a sound financier and a skilful
economist, but he was not a great statesman, and he was not
a man who, if he had to decide on the means of carrying on
a war, would have had recourse to any other maxim than
the rule of three, or supposed that it could be conducted
on any other plan than the severest principles of political
economy pointed out. But there are other principles to be
looked at, with such an end in view, then the favourite
doctrines of Sir Henry Parnell ; you must look a little to
the temper of a people, to the character, the passions, the
weakness, the genius of a people, anti you must conduct
your war, no doubt with some regard to scientific finance,
but also with some regard to the spirit of the age and
the country. (Hear, hear.) There is this difference between
the work quoted by the right lion. gentleman, of which he
" Another and another still succeeds." appears a disci le and an ardent votary —there is this dif-
I cannot say the catalogue is finished, because I think at ferenco between a man who acts upon such views and Mr.
the end of that fatal year, or rather in the month of Pitt, that it is possible he may carry small matters to a
August, when the right hon. gentleman found that all his
successful conclusion, but I should not like to see him en-
schemes had failed, and that his exchequer must be empty trusted with the management of great enterprises. (Hear.)
T
unless he had recourse to means for replenishing it, the The right hon. gentleman told us that Mr. Pitt was not a
funds being then at 97 and a fraction—when he could good war minister, and he must allow me to say that he
have raised the money on very easy terms—the right hon. certainly indulged in v try free criticisms of the career of
Mr. Pitt, and even spoke of his conduct in terms of repro-
gentleman, of course, being in possession of grave state
seer ets, which must have assured him that even if peace bation. Ido not believe that the phrase of " heaven -born
could only be preserved by a combination of the happiest minister", which came in for a pressing censure, originated
circumstances with the exercise of the greatest skill on the with the Stock Exchange. I believe the fact to be that it
part of diplomatists, and on the part of Governments the was the Duke of Chandos who, in the House of Lords,
necessary prudence and firmness united—the right hon. called Mr. Pitt a heaven-born minister, and therefore the
sneer of the right hon. gentleman on this head was hardly
gentleman with contemt let the ortunitass b, and
the year 1853 terminated ppo
on the part of the y p
right hon. correct. But if the right hon gentleman will allow me, I
gentleman with the failure of all his financial projects, will presume to give him a piece of advice ; I would give
with almost the certainty of a war, and with an empty over these unworthy sneers, levelled at the reputation of a
exchequer. (Cheers from the Opposition.) Now that is great minister—l would, if I were the right hon, gentle-
the way in which the right hon. gentleman commenced man, confine myself in future to self-glorification, an art
o
the campaign of 1854; and I want to see what are the of which, I admit, that he is a master. (Hear, and a
measures which he has adopted, first of all, to compensate laugh.) Let him dilate upon the astuteness with which
for the mistakes of the preceding year ; and, secondly, to he effects the conversion of South Sea Annuities ; let him
do that which the right hon, gentleman had also to do, dwell upon the intrepid courage with which, to show his
not merely to compensate for the mistakesof last year, but spite against the party he has quitted, he can double the
to encounter the difficulties of the present one. The right malt tax. (Cheers.) But let him cease from these reffec-
hon. gentleman, in breathless haste, one month before the tions upon the memory of a statesman who, I can assure
financial statement was due, came down to Parliament, him, is still clear to the people of England. Let him re-
and announced his determination to make the financial member that Mr. Pitt, whatever might have been his
exposition to the country. It was a month before it failing.. in the opinion of the right hon. gentleman, held
was due. I think on the sth March the right hon. with a steady hand the helm, when every country but
gentleman came down with, if not war absolutely declared, Great Britain was submerged in the storm ; and when he
an army of 25,000 men having quitted our shores and a taunts Mr. Pitt with courting bankers and money-lenders,
large fleet being in the Black Sea, a month before it was he may also remember that that rninis'er owed to a grate-
necessary, but with a frankness which gait) confidence to ful country an eleemosynary tomb,- --(Cheers.)
the country, in order to put us in complete possession of The CHANCELLOR of the EXCHEQUER—Sir, both
our financial situation, so that we might thoroughly un- the lateness of the hour, and the recollection of much for-
derstand the responsibilities that we might incur, and pro mer indulgence, and, I may add too my view of the debate
vide for the difficulties in which the preceding year had which the committee have heard to-night, combine to
left us. Well, the right hon. gentleman told us on that impress
occasion that he had a considerable eurplu —fortunately upon me the necessity of not again drawing upon
for us, to the amount of 3,000,,/00/., and the increased esti- that indulgence by detailed statements and elaborate calcu•
mates be had to propose would coins to somewhere about lations. The speech we have just heard from the right
the same sum, or something exceeding 2,850,0001. The hon. gentleman, and the speech with which the bon
right hon. gentleman entered into many particulars as to member for Huntingdon prefaced his motion, consisted
the moving and bringing back the large force which had in •
great part of references to what they have termed my
quitted these shores. The right hon. gentleman aao
financial errors; Now with respect to those financial errors,
offered us estimates to something like a million and a quar-
ter, which was a large sum ; but he said it was right that if such they be, all that I have to say may be summed up
the country should know what was necessary for moving in three or four sentences; because I think, after having
and bringing back— listened to the debate, that we have at length pretty
The CHANCELLOR of the EXCHEQUER (interrupt- nearly exhausted all that can be said upon these questions
ing)--Removing and bringing back. —a matter, I venture to think, of no small consolation to
Mr. DISRAELI (resuming) —Well; removing and bring- the committee. (Hear, and laughter.) Th 3 case stands
ing back will suit my argument. I say the right hon. very simply thus. The right hon. gentleman says that the
gentleman gave us this estimate of a million and a quarter, first financial error was the error of reducing the rate of
which was a large sum, he said, but it was right that the interest upon Exchequer bills. On that head I fairly tell
country should know what was necessary for removing and him, and I fairly tell the hon. member for Huntingdon, I
bringing back this force to our shores. How he could re- have nothing to retract and nothing to repent—(hear,
concile that with the much larger sum which was after- hear) ; for, in my opinion, the reduction of interest to the
wards asked for the transport of troops I never could com- public was both a great and a just advantage, and the re-
prehend. But the whole statement of the sth of March ductiou of the amount of the unfunded debt in June last
was a statement either inadequate or deceptive, and of was another great advantage, that being also the first time
course I cannot believe anything deceptive on the part of since the war when a large reduction of the unfunded debt
the right hon. gentleman. And how was it inadequate? had been effected without loss to the public. So far, then,
He succeeded in conveying to the committee and the as that subject is concerned, I hope the hon. member, if
country that, although it might be necessary early in July, he is disposed to do so, will not scruple to bring it before
it would be necessary to ask for further supplies ; and on the house, because this house is the ultimate judge upon
the sth of March the house was put in a position of, gene- what principles every department of our finances should
rally speaking, further responsibilities and. requirements. be managed. I have announced plainly and without dis-
If that were not his intention what was the meaning of guise the principles upon which I have proceeded, namely,
that precise and almost pedantic vote for Exchequer-bills in the first place, that the public is entitled to borrow upon
to the amount of 1 750 0091. to be Paid off out of the pro- the best terms on which people are willing to lend ; and,
i
duce of the taxes n November ? The house certainly un- in the second place, that the sound policy is to reduce your
derstood that the estimates of the Chancellor of the Exche- unfunded debt in easy times, in order that you may be
ZIT: "upon the whole estimated to give them an idea able to make an effective use of that great instrument in
ot h teranirements of the country and the responsibilities times of difficulty. (Hear, hear.) These are the principles
• " Majesty's subjects is consequence. The house almost on which I stand ; the hon.. gentleman says truly
.that I
immediatel after adjourned for the holidays, and they do not recede from those principles, and it is for hint to
had so adjourned but a few days when they found that the consider whether he chooses to submit the issue between
Chancellor of the Exchequer and the First Lord of the him and myself to thejudgment of the House of Commons.
Treasury were
which was at endeavouring to raise money by a mode With respect to the second subject, that of the conversion
met theoChncesnacetrallnge and
quaint. No sooner had the of the minor stocks, I really have nothing to do but to re-
houseberg found that the table of
the
I have stated
Exchequer than hon. inem- peat, and it is needess for me to repeat what
the increased estimates a groaned beneath the weight of on former occasions. The right hon. gentleman accuses
No person objected to either' 6'1'46,000,000/, was required. me of self-glorification ; he says that I have not spoken
thought the honour and interestor 12 millions when they upon that subject with sufficient humility ; I have only
g
Si,.
country required it; described it as an abortion, and that he thinks is a phrase
but what many hon. members di
had a Minister of Finance who Was called
of was, that we savouring so much of conceit on my part—(a laugh), that
gate the great question of the requiter' upon to investi- it is far from expressing what is due to the character of the
placed himself ienntadireo
etf the noun- measure. Well, sir, if the right hon. eentleman will him-
.
try, and who must have
with the heads of departments on the communi- self frame a form of words which he thinks ought to be
cation sth of March
, put in my mouth in the shape of a confession, I will see
and which during the interval of the Easter , .
amount of 000 holidays he whether I can accept it • but if he undertakes that task,
found to be erroneous to the 6,
,_
1.
(gear.)
, .
We now have the consequence of these conutttotimerr.) I very much doubt whether he will be able to invent
in the administration of the and stronger terms of description than the words I spontane-
systematic errors
to raise finances, ill oasis usedat the ofthe session. (A l h )
commencement
.
the attempt by the Government a loan—for each
informed as to the object of The right hon. gentleman, in order to lengthen his cate-
r must still call it until thethat logos of
Treasury. Even Chancellor of the march delinquencies, appears to me to have stolen a
proceeding of the
come forward and say that his the error upon us when he made an error do duty twice, for
Exchequer cannothimself
proceeding
and he has not yet advanced. so first, and b
proceeding was successful, .
abortion. (Hear.) But this the su sequently as the fourth. (A laugh). I take
far as to confess that it was an . eliberty of
ttended by some of the most remarkablewhat I hey retrenching that excrescence, and stating
attempt was a ded a financial transac- hon. gentlemandone
found another
English Minister. The Chancellor tampered with the f error in saying that I had
tion of that kind by an
t a time of unrivalled pros- had been, as a finds of savings banks, and that there
of the Exchequer of England, a appeared from the papers laid on the table,
ld l appears in the in '
perity and of unexampled wealth, sm. en y
cent., and who het' consequence of that tampering, a loss to those parsons
market as a borrower of 6,003,009/. at four per. invested their money in 'banks. must Now, I
unable to raise the fund which he requires. . again say, that I rebut and • savings
be
is absolutely repudiate the charge of
thought of this it having tampered with
What the Emperor of Russia must have the funds of the savings banks. I
have dune with
is impossible for me to ascertain, but I should certainly
fnr
a Minister to I them precisely that which it is the duty of
think he might consider it as a countervailing incident t o ; when the deposit
anti a hands, he is bound to invest money comes into his
the bombardment of Odessa at least. (Hear, hear,it according to what he be•
laugh.) How the Chancellor of the Exchequer could have lieves to be most for the interest of the country. (Hear,
hear.) I must confess it is my
proceeded in the matter, or bye what management it was
rally, I
it opinion, and, speaking gene.
that he arrived at such a result is a mystery. The wild , rally, suppose will be the opinion of the house, that
desert of the city of London inhabited I will not say by the Chancellor of the Exchequer ought not to apply savings
banks money to meet the expenses of the year. I have savage beasts, for some of them are " balls" and the rest
done, as the right hon. gentleman knows, no such thing.
aro " bears"—Chancellors of the Exchequer are supposed
to have some knowledge of these animals.Butnotcontent What then have I done ? I might have invested it in re-
,
with " bulls" and " bears," the Chancellor of the Exche- : during the funded debt ; I invested it in reducing the un-
quer aimed at higher prey, and he sought to bring down funded debt. The creation of stock which took place was
the antlered monarchs of the forest, and indeed all the ' a creation of stock against reduction of the unfunded debt.
•' - - 'a-stage" in Laudon were eorstribnting to maintain the credit.! In that. way I ,say you may examine if you will that red ma
of the Chancellor of the Exehequer. The right hon. gen- lion wich took place in consequence 'of tlie purchases
fa= Wig actually Buda the necessity of striking out . mad. with the moneys of sirtios bomb, and you will Mid

schedule D, appear to touch the principle involved. These
facts, if they be facts, are arguments for another assess-
merit of schedule A; they are arguments for a net instead
of a gross assessment ; but they are no arguments why the
difference of percentage was so great as was once state .I
by the right honourable gentleman. There are no details
which affect the principle whether there should be a dif-
ference between the assessment on temporary and perma-
nent incomes. " But," said the right honourable gentle-
man, "the schedules were not placed on the table, on the
income tax proposed by the late Government." The
right honourable gentleman might have learned from
those persons who are authorities on the subject, and to
whom he himself will be ready to bow, that there is no
precedent for the schedules of an income tax being
placed upon the table. It is against all precedent,
and against all rule. The house will recollect that
the question of an income tax was never proposed by
the late Government in the House of Commons (Hear.)
I, as the organ of the Government, never had an opportu-
nity of stating the reasons which had induced us to come
to this result. It was clearly understood that until after
Christmas the question would not be brought before the
house; but there was a reason why we were obliged to pro-
pose the assessment on the schedules, because it was a com-
mittee of ways and means, and it was our duty to show the
means by which au adequate amount of ways and means
might be furnished. Therefore, the resolutions merely re-
mained on the table in their usual form ; and it was not
until the final debate that a right hon. gentleman opposite
entered at all into the schedules ; and that right hon. gen-
tleman having stated that 1 had omitted, in not producing
the schedules, an important part of my d uty, what I satd
was " that we did not ask you to vote for
tl the schedules—
when the schedules are before the consideration of the
house it will be open to any hon. geneman to propose any
alteration in the elements of the schedules ; all we contend
is this—we have considered this proposition, and no finan-
cial difference will be made, whatever changes you may
make in the schedules." Ido say—that expression having
been misrepresented by the right hon. gentleman— between
the speech that was made on the elements of the schedule
and my reply, that although it was not my duty to place the
elements of the schedules on the table I did not shrink from
it, and would willingly have done it, but I had no time—
meaning from the pressure of
i business—formally to pre-
pare those schedules, which t was absolutely against all
precedent to place upon the table And then the right
hon, gentleman denounces the false principles of finance
which Mr. Pitt would never have recognised—(hear, hear)
—and upon which the project of income tax proposed by
the late Government was brought forward. It was, in
fact, a graduated scale, according to the right hon. gentle-
man ; and he denounced it a few months afterwards, when
bringing; in his own plan of an income tax, in which there
was positively a graduated scale of the most flagrant and
the most perilous nature. (Opposition cheers.) We drew
a distinction between incomes of a different character ; but
the right honourable gentleman brings forward an in-
come tax in which he makes an assessment on different
amounts of property, thereby saying that the rich man
shall pay a higher rate than the poor man, the most dan-
gerous principle, to my mind, that can possibly be adopted.
(Renewed cheers (ruin the Opposition.) I hope the com-
mittee will excuse me for entering into these details. I had
hoped the late Government were entombed in Hansard—
(a the right hon. gentleman revived the ques-
tion, and I cannot shrink from answering a charge
which has been repeated by the right hon. gentleman.
There is only one point more on which I must touch.
The right. hon. gentleman has often praised himself
on account of the efficient income tax which he
brought in. He said the income tax which I pro-
posed would have brought in much less to the revenue, in
consequence of my mode of assessment. He found it con-
venient to forget that while we admitted the principle,
which I believe to be a just principle, that there should be
a difference recognised between temporary and permanent
incomes, and the recognition of which would have saved
you from the succession duties —(hear, hear)—he found it
convenient, I say, to forget that we destroyed, or greatly
removed, that immense mass of exemptions which had
risen up in the course of years, and that by increasing the
area of direct taxation we raised exactly the same
sum as the income tax of Sir Robert Peel ; and we
not only did that, but by increasing the area of direct
taxation we gave you the security that property assessed to
the income tax should only pay an income tax of 6 per
cent. instead of 10 per cent., for that increased confiscation
which woillal have been the inevitable consequence if you
had retained the old constructed scheme. I have now
touched upon three grievous errors in the financial cam-
paign of 1853, and which I touch upon because the right
hon. gentleman vindicated himself on these points, not in a
tone of humility which should make me silent—(cheers from
the Opposition)—and because, as I shall show, it is these
errors which are the cause of our present difficulties. But
these errors are not the only ones in the campaign of 1553.
What was the fourth error? It was that reduction in the rate
of interest which forced the right hon. gentleman to pay
off 3,000,0001. of Exchequer-bills from the public ba-
lances. That I chink to have been the fourth error. I
make the catalogue as brief as I can ; but still I will go on.
(Cheers.) There was a fifth error. (A. laugh.) I think
it was a great error that the right hon. gentleman com-
mitted in tampering with the funds of the savings banks
as he did. lam perfectly aware that the right lion, gen-
tleman took no step which I believe was not legal in that
respect; but it was an inconsiderate use of the privileges
of a Minister of Finance which led him to have recourse
to a subject of such great delicacy ; he treated it, however,
in a manner which must have damaged the credit of those
invaluable institutions, the savings banks among those
classes for whose especial benefit they exist. It would
appear from papers on the table that there was a series of
stock-jobbing operations, a catalogue of speculation in the
funds, many of which resulted in a loss to those who in-
vested their money in savings banks. It appeared from
those papers, if I am not greatly mistaken, that savings
bank money was in one day sold out of the public funds,
then invested in the Exchequer-bills, and then those
Exchequer-bills invested again in stock, and that upon
those transa,tions there was a positive pe,uniary loss.
(Hear, hear.) I think that was the fifth blunder —tue fifth
great error of the right hon. gentleman in the campaigu of
1853. But