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

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(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 ls. 6d. or 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
700,000/., 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
thathnw of muchw
greater
leater
(Hear,diffi hear.)culty wlotulhdasitthnootrebeeomamtteounddaetdionin,
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 be complex in its operation ; the wine trade,
almost to a man, is opposed to it; and rcannot 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 is. 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. 2id. 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. 10d., to the sth of April, 1854-5 it will
ls. 6d., to April, 1855-6, is. 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. 4id. and ls. 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 604,0001., making altogether a oss in 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 reach, 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 has 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 cautiously. 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 the:duty
on the colonial. article. (Hear, hear.) Lastly, we have
boon desire.. to lower the ditties that itytele 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 are as
follow :—Apples, from 2s. a bushel to &I.; cheese, from
ss. to 2s. 6d. per cwt.; cocoa, from 2d. to ld. per pound ;
nuts, from 28. to ls. per bushel; eggs, from 10d. to 4d.
per 120; oranges and lemons, to &I. per bushel; butter,
from 10s. to Se. per cwt. - raisins, from 15s. 9d. to 10s. per
cwt. (Hear, 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 262,0001,; but, with the allowance which we think may
be made for an immediate increase of consumption, the
probable net loss will be 185,0001. (Hear.) Besides these
articles of food, which are 13 in number, including tea,
are 123 articles which we 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 be
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 1853-64, 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 786,000/,
or a net loss of 771,000/4 in stamps, a gross loss of
417,0001., or a net loss of 200,000/.; in post-horses, 27,0001.;
in Customs, altogether, the gross amount of 1,338,0001., or
a net loss of 658,000/.—(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 1,656,0001. (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 new 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 slim 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 we
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 be 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
1854-55. We left the year 1853-54 with a surplus of about
half a million, a considerable portion of which does not
consist cf 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. ll the additional charges which we now invite
you to calculate upon for 1854-55 will be 1,087,0001.
(Hear.) Then the legacy duty will be available for the
second year to the extent of 700,0001..; the 31 per Cents.,
of which, according to the usual principle of computation,
one-half is taken credit for, will give a sum of 312,0001.
The second moiety of the extension of the income tax will
add to this income 295,0001. Putting these sams together,
you will find that the whole additional charge proposed to
be made for 1854-5 will be 1,087,000/. • and the additional
income which I propose being 1,307,0(101., 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 these remissions of indirect taxa-
tion. They will be as follow :—Soap duties, 1,260,0001.
(I am now taking the extent of the relief) ; stamps,
418,000/. ; assessed taxes, 290,000/. ; post-horses, 54,000/. ;
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, 120,000/. ;
or a total 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 incomoe
tax. (Hear, hear.) Let me represent to you theeestate
this
accounts which sums up and winds up theo. indirectwhl f h
protracted statement. The remissions
to a gross
tax-
ation proposed amount, as I have justexplained,
which began in 1 ,an
have been made in late years,
which were renewed on a very large scale in 1845, 1846, we
find that these remissions—in terms, some of. them of 11
loss of 5,384,0001.
in five or six years, but in the mean
Looking back to the remissionms which
years, some of them.
we have found
enmoreaer:ghhetary.e)arsT—hheaevffe
ecoot mofplseuteehly
remissionsrecovere
recovered
to be two-fold—first, that upon the arti-
cularpto the extension and invigora-
summere,r,eonpaebralintignghim to increase his particular
n of various articles ; secondly, that upon the
rm
trade of the country, and in that way extend-
ing etg
tchieoonennmesruoseamefelfl
otpvclineeteeissnouv.
and widening the means of consumption of the great
body of the people, and so in a still more powerful manner