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

hon. gentleman brought forward his scheme with cent'
dance in its merits and its strong success which strong 00"
viction alone could give ; for ho even proposed, or rather
promised, that means should be taken to prevent the eve
that might be occasioned otherwise, by too vast and ow"
den a rush of the public to carry out his views. (Hear'
hear and a laugh.) Was the right hon. gentleman, I 0"1
without warning at the time of the danger of his proposed
course ? I will not quote the words that fell from myself 3
and other gentlemen about me on this bench, which 1
might be supposed would not be heeded, as coming
.f.,_Ar°l:l'
political opponents, though even the words of phi
opponents may not be :without their value to swine =ail:
but I will refer to the warning. which was given to
right hon. gentleman by the hon. member for Htuitiug.
don, a gentleman of the very highest authority on thei°
subjects, of conspicuous Moderation, and who took au °.
tive part in extending friendly opposition to the plslo,°f
„
the right hon. gentleman. That .hon. gentleman, on
22d of April, emphatically warned the right hon. gentlenaea
that there were marked indications intimating the extrezne
inexpediency, the danger, of forcing, a 2i per cent. stock on
the market, and of reducing the interest on Exchequer'
bills. (Hear, hoar.) Despite this and other warnings, the
bill for converting " the patriarchal stocks" was read 4
third time on the 23d of April ; and on the 3d of May '0
read a third time iu the other house of Parliament, "St°
an opposition by a noble lord of high authority on suchA
matters, himself once a Chancellor of the Exchequer, sae
who certainly 1
had no political sympathies with those ,
sit on this bench—my Lord Monteagle. (Hear, hear.)
shall say nothing, or very little, of the unbusiness-like wAY,
in which this bill was drawn. The fact is, it was describe,'
as a bill of such vital importance by the leader of the house
(whom I don't see in his place) that he dopricated all er',"
ticism upon it, and it was prepared and carried— Won"
say with indecent haste, but with such ill-considered hull
that when it was passed it was found out that there was fia.
vital omission in it. It was discovered that in case any °'

the holders of these stocks dissented from the proposition,
the Goveratment had omitted any machinery by which
they were to be paid the amount of their capital that WOS,
about to be discharged. It was in August—in the last
week, I believe, of the session—l see the bill only receive?
the sanction of Parliament on the 16th of August—ths,
this measure, empowering the Treasury to pay dissentients
in various ways out of the consolidated fund, was passed''s,
passed in the morning, with perhaps 20 members present,
and it was this bill so precipitately passed to remedy tlti
mischances of what ought to have been a more Lugar*
measure—it was this rash, hurried, fatal piece of legislation
that has deprived the Exchequer of its balances—(cheers)
that has depreciatedthe consolidated fund, that in a time °,
war has allowedyou to scramble through the first quarter
this year with a deficiency of nearly 4,000,0001. sterling 0. 0 which, so far as I can frame an opinion—and my object
only to elicit opinion—it is to the interest of all who bsfe
accurate information'ou this important subject, which,A°
far as I can form an opinion, will on the sth of April, Nov'
a balance in the Exchequer of 3,000,0001., leave the Char
cellor of the Exchequer to encounter demands of nearic
10,000,000/, sterling, if not more ; and this in the time °
a war which night after night every Minister who rind
prepares us to expect will be one of longer duration and
greater intensity than was anticipated when first the sub'
ject was under our notice. Now, sir, that appears to IDs
to be an important point for us to consider—why we
in the position which I maintain the Exchequer ought net
to be in. It was said' the other night, with regard to the
diplomatic correspondence on our table, that it was of n°
use to criticise the past, that the country was in danger'
and that, under these circumstances, whether mistakes
been made or not, we must stand to those errors (if thef
be errors), and that we must henceforth look only to tare
future. Well, sir, I have not made these observations
with a view to criticise the past. If they had no reference,
no necessary reference, to the future, I should not have
uttered a word. I moved for the series of returns wbic"
are upon the table at the beginning of the year, when Flit•
liament first met, because I thought it of greet importsnl
that accurate information on such a subject should be 1,"
the hands of every member and because they threw
light upon what was the subject of fair discussion--11c1
conduct of the late Government and the position,in which
they left the financial affairs of the country. I might
make objections to the course taken by the right hon. gem'
tleman, and ask for explanations, but I am not desirous
of doing so to-night on a subject of so great importance °
the financial statement ; and why I bring these points be;
fore the house is, because I am certain that if you negle°
this scheme, if you sanction it by your approval, if I°,s ,"
do not interfere to prevent its being permanently adopted,
you will often, in the course of this year, find yourselt
involved in endless inconveniences and even in monetarl
disaster. (Hear.) Let the right hon. gentleman come 1.°,r1,
ward, with respect to this second part of the subject, nil':
the same frankness as he did with respect to the first. f;
says there will he-a deficiency ; the nation is about to enter
into a war, and there must be increased expenditure ; the
Government must have efficient means to carry on the iv"t
with vigour, and the House of Commons must be readl
and prepared to support Ministers with ample means ,
put the revenue into a healthy state. Would it not pw
better for the right hon. gentleman to ask us to put the
Treasury and the Exchequer in a healthy state at the sn'a
time? (Hear.) Why does ho not come forward and 0,1:
" I attempted to reduce the interest on the public deb"
I have not succeeded as I intended ; but who can dent
the object was one worthy of an effort, and worthy oftm.
attention of Parliament ? Whether I have succeeded °t
not, it is one of those objects which every Chancellor of 'Ss.;
Exchequer at some time or other should endeavour to osr'i,
out. I have for the present been baffled by circumstnue
—grant even that I have made miscalculations—but I lir
peal
.confidently to the generosity- of the house as to in!,
endeavour and its result. There has been or will be a 1°”
on these transactions. Let us meet that loss. I have 'if;
duced the amount of public debt ; then put the pub is
debt and the Exchequer in the same position as to amour.
as it was. Do that, and then I shall have balances in tn:.
Exchequer for the public service at a moment of exigen%
like the present." That is the course which I think
Chancellor of the Exchequer ought to pursue. (Hear.) ,„
do not think the Chancellor of the Exchequer ought
have evaded fairly putting before the house the can
quences of his immature schemes for the reduction of n"
terest on the funded and unfunded debt of this country'
(Hear.) Better that we should have with candour sa:
mitted the disappointing results of his efforts, and that be
should have asked the house—and lam sure he would 00"
have appealed in vain—to place him in the same state !a°
far as the amount which ho had reduced. ' The lieu"'
should have been called upon to make that good to the;
Exchequer and the country. The right hon. gentleans*
has diminished the amount of the public debt of this coin''
try by 3,000,0001. sterling. He is entitled, then, to out
support to the amount of this 3,000,000/, at a moment of
exigency like the present, and he should have corn'
forward and asked-us not merely to vote taxes in orde;
to put the revenue in a healthy state, but for such a vn'
as should put the Exchequer in, a healthy state ; for, 0°•
pend upon it, however you may balance income and
peuditure, however you may make a surplus upon paPe.,r;
if your Exchequer is not in a right state you will ally*/
be in a position of embarrassment and difficulty. (116' bids
Now, the right hon. gentleman must raise deficiency, i
for the quarter from the sth of April to July. I should
like to know whether he has framed an estimate—l t%gr.
pose he has done só—of the amount of deficiency
which will be necessary to carry on the public service fr°,7
April to July? Can he have formed any estimate on,'"
regard to some of those extraordinary exigencies to which
ho has referred as possible ? From week to week, fr°
day to day, something may occur which will demand fr°„,
'-
,";
the right lion. gentleman what we may call a large ball't;
at his banker's. (Hear.) The right hon, gentleman thin
what lam now going to refer to are trifling points. 13°
the right hon. gentleman must pay for his deficiency bill''
I have no doubt ho finds the Bank of England as yet veil
indulgent, but that will not bo the case for long if be keell
a very small balance there. The Bank of England will net
like to be lending 5,000,0001. or 6,000,0001. of money std
lower than the market rate of interest, if they are only t
have a balance of some 300,000/. on the public account'
The Bank of England, sooner or later, must charge s "„;
nister who depends on deficiency bills the market rate
~,4
interest, and I want to kuow what may not be the mar'''",
rate of interest at such a time as this ? (Hear.) Well'
seen it suddenly Ilse at such a moment. Suppose. for Ili;
stance, you have a prolonged continental contest an 4,
drain of the precious metal. Are you prepared to sanctir
a system that the Chancellor of the Exchequer should
rho
systematic the finances of this country by the aid, t;
s,'"
systematic aid of deficiency bills, and not by teal balance
in the Exchequer ? "A very great responsibility will or
valve upon the committee if they sanction by their aPPrI
bation a course like that. (Hear, hear) I shall i',
enter into any consideration of the causes which have " „
"
"'
duced the Chancellor of the Exchequer to take the 000 ,
,7,
he has adopted with respect to his attempts to reduce
interest either upon Exchequer-bills or upon stock. I.s.'"a
serve to myself the right of referring to and of considerw:
these pleas if they are made. My object is to impress Iles.
the Committee of Ways and Means the
great importaill:
of refusing their sanction to a system of conducting th"
finances of this country, which I believe to be unsound;
and which I believe also will end in great embers-m[olf
and difficulty to theright hon. gentleman. I guard sor°,e
by saying this, though—that I deny the validity of 0,0/
pleas which may be brought forward in vindication of
course either from the state of the harvest, the exittel
of war, or from circumstances of that kind, I won't 013.'.71
into a consideration of these points, because then it svet4
turn this discussion into merely a personal controversy ;,
_
regards the Ministry.. I wish to keep it to this businel"
like point—does the Committee of Ways and Means lae
prove reducing balances in the Exchequer to such a degr„,
that the Chancellor of the Exchequer must systematicaw
depend upon deficiency bills to a great amount for earl;
ing on the service of the country? (Hear, hear.) I nr:
by " a great amount" millions ; I !lean 6,000,01
4,000,0001. wo have evidence of, but I mean a greater 011""
than that ; and if the Committee of Ways and Means do'',
not approve that course, let them not censure the Cboni
cellor of the Exchequer, but let them tell him to-night the
they are prepared, with the same willingness, with
.4
same unanimity with which they .were prepared to Ito auert,
him in the imposition of fresh taxes, in order to prodnv
a sound state of the revenue, that they are equally P 5
pared to place on a healthy footing the balances of ‘
ti.
Exchequer, which have been imperilled, perhaps, by tf,
injudicious, but certainly by the well-meant, plans of the
Chancellor of the Exchequer; and that, whether it be Op
revenue or the Exchequer, it is the opinion of the Commit
tee of Ways and Means that the Chancellor of the Eze°s,
quer should not unnecessarily be borrowing money.
The CHANCELLOR of the EXCHEQUER--The right Wl'
gentleman who has just sat down complains that OP°O
some recent occasion liberty was denied him to discuss 10
transactions. Now, lam sure I was no party to the denial 0i
that freedom. The right hon. gentleman, so far as I sin
cerued, is perfectly welcome to the discussion of any tra
. actions past, present, or future; and if he has any pa"a;stalst
fondness for discussion upon questions of finance in which
am interested he will always find me quite ready to contribil,„
to his interest in that pursuit by taking part in it, as long °0
he is ready to return to the charge and the committee r.i.
op,
patience enough to listen. (Laughter.) The right
gentleman has complained of me to-night for want of fl.
ness, becausel did not state to the committee the conc`
of the public balances. Now, lam in the recollection of tl3O
tee
Point, as to vrii:eiher I did or did not allude t 0
Point, I intended to state, and believe I did state to %lit;
distinctly, in a few words, that 12 months ago the PtL,coe
balances were high, .and that now they are low, and, `sey,
stating that they are low, I went on to explain how the ul',;00
had been disposed of. (Hear, hear.) But, Sir, I won't (f. ga
on what may be considered as personal charges ; I ,41.1. so
rather to the discussion of those transactions of last Yefefer,
which the right hon. gentleman has thought proper to j'ence,
The right hon. gentleman says that, with great impr!'"tereat
in the early part of last year I reduced the rate of ',g.ciiou
upon Exchequer-bills; that I anticipated from that rea:...jug,
the saving of 65,0001, a-year, but that, instead of aos '4116$
the result has been, in consequence of my proceedii:ig,,,,;he.
there has been a loss of 35,0001. during the year o
quer-bills. Well, Sir, it appears to me in the first placu,
supposing I were to admit the facts of the right honour
gentleman, his charge would resolve itself into this '
I Was unfortunately not endowed with the gift of "