The Sun.
London, England, 1833-01-15 00:00:00

LORD ALTHORP AND THE NEWSPAPER

TAXES.

It is generally understood that Lord Althorp in-
ends to reduce the stamp duty on newspapers, to

2d., but to leave the duty on advertisements un-
touched. The object of the scheme it is in vain to
inquire; for " what reason has not dictated, reason
cannot explain " It is not, however, so difficult to
trace its probable results.
The present newspaper duty is nominally 4d.;
but the discount of twenty per cent. on all papers

sold at or under 7tl.* reduces it to 3d. and a frac.

Lion. The proposed reduction will therefore enable
the newspaper to be sold for 6d. instead of 7d; a
change that will perceptibly benefit no one. The
rich, or the well to-do, who take a paper as a
luxury, or as an essential appendage to their station,
will care little for the 265. or the 4s. 4d. they may

save in the year. The reduction is too paltry to
stimulate even the belluo aetorum—the devourer of
news—to take in an additional paper. To the poor
man, who is at present driven to the unstamped
publications, the newspaper will retain as inac•
cessible as ever, and the encouragement to the
smuggler be precisely the same. It would appear
at first sight that the newspaper proprietors will
reap the principal benefit, by the additional profit
they will gain upon the fraction. It is, however,
questionable whether they may not be deprived of
this by the additional competition (without propor-
tionate increase of circulation) that will be sure to
follow this merely mischievous plan to unsettle the
trade. It may be laid down as a general rule in
finance, that taxation cannot be reduced without
benefiting some one to the extent of the reduction;
but the present plan is likely to prove an exception
to the rule. The buyers of papers cannot indeed
be deprived of the reduction in the price, but the
sellers seem very likely to lose what would appear

to be their share of the remission.
Thus far as regards the public and the press.
Looking at the project in a financial point point of
view, its intention is equally inexplicable. No
prirciple of finance is better established than that a
bold reduction of taxation, on an article in general

demand, rarely injures, but frequently increases the
revenue. If the duty on newspapers were reduced
to a penny by a reduction of the newsman's price,
and a sacrifice on the part of the proprietors (both
of which would be more than covered by the in-
creased sale), the sevenpenny journal could be sold
for fourpence. Looking at all the analogies con-
nected with the me, there is no doubt, that at this
price the circulation would increase three or four-
fold, with a gain instead of a loss to the revenue.
If the plan of postage were modified so as to allow
every publication under a certain weight, of which
the whole impression was stamped, to be trans-
mitted as a newspaper, a very considerable increase
of revenue—saying nothing of the paper-duty—
would certainly take place from the number of lite-
rary journals, pamphlets, &c., that would avail them-
selves of the advantage. It is of course impossible
to predict with certainty the result of any remission
of a duty; but, as far as means exist for forming a
judgment, Lord Althorp's intended project will in-
volve a loss of revenue equal to the whole amount
remitted. If by the allowance of a Government
discount, or by a ruinous reduction of the proprie-
tors' and newsmen's profits, the cheaper papers were
sold for 5:1., it is questionable whether the increased
sale would compensate the revenue for the frac-
tional parts of the penny given up; for in this, as in
many other cases, the purchaser would be swayed
by the apparent and not the real difference in price.
Looking, therefore, at the measure in the most fa-
vourable point of view, it will be of no general
utility—it can be of little benefit, but may possibly
be of some injury, to the persons engaged in the
business—it wth most probably involve a loss of
some 160,0001. or 170,0001. to the revenue.
But why meddle with the newspaper tax, and
allow the advertisement duty to remain in all its
oppressiveness ? The former yields 483,0001., the
latter only 172,0001.; the pretence of revenue is
therefore out of the question. And it may be
doubted whether, even if the gain were equal, the
advertisement tax would not be the more mis-
chievous of the two. The public injury caused by
the stamp tax, is in preventing the dissemination of
useful knowledge; but the advertisement tax is per-
haps as injurious, by the obstacles it interposes to
the circulation of book, especialy of cheap books.
" The trade," pear excellence, are-not, however, the
only sufferers. Every person who is even remotely
connected with affairs is interested in the abolition
of this tax. The merchant, the manufacturer, the
tradesman—the landlord who has property to sell
or let, the person who wishes to take or purchase
—parties in want of situations, from the " clergy-
man in orders" to the "servant of all work," and a
long list of miscellaneous advertisers, " too nume-
rous to mention"—are more or less injured by its
continuance. Yet, whilst deputations are son-
tinually plaguing the Government to remit upwards
of two millions and a half of money, no one stirs in
favour of a remission where the sacrifice of revenue
would only be one-fifteenth part of this amount,
though the matter is of consequence to all trades, of
vital importance to many. If our advice be taken,
all those who are interested in the advertisement
duty will join ill badgering the Chancellor for its re-
peal. If lie plead the revenue, tell him to forego
his newspaper project : if he persist in his cruelty to
the Journals, tell him to reduce the du►y and—in-
crease the revenue. If the three hundreth part of
our income cannot be saved in any way by re-
trenching, a tax of one shilling on every advertise-
ment would prevent any reduction of revenue, if it
did not cause an increase. The Sun, we see, recom-
mends a reduction to 1.. on long and 6d. on short
advertisements; but there would be some difficulty
in drawing a distinction ; if tested by the number of
lines, the advertisement might be printed in a
broader column, or if this were guarded against, a
smaller type could be used. This graduation, too,
would create some additional trouble and expense in
the collection.
Before taking leave of the subject, we would ob-
serve, that if the Press is to be abandoned by the
Reformed Parliament to the tender mercy of Lord
Althorp, the sentence, when pronounced; should be
carried into immediate execution. If the change
be proposed one week, let it take effect the next.
It is questionable if the most judicious alteration
would greatly benefit the existing papers; for what-
ever increase of circulation takes place, it will most
probably be accompanied by at least an equal com-
petition. But if the change be postponed for months,
there will be a forced competition. Speculators will
fancy, that to establish a newspaper, will be a ready
' way to wealth : they will proceed in doubt, if not in
ignorance, of the intention of their rivals; and, as
in every case where changes in a trade have been
long delayed, an artificial stimulus will have been
given to production, and the market will be glutted,
to the great injury of " existing interests," and the
failure, perhaps the ruin, of the new competitors.
If, on the contrary, the alteration be carried into
immediate effect, the established journals will reap
the benefit of their experience and connection, at
the same time that they will be subjected to full
competition from new rivals; who, in their turn will
have the advantage of seeing the actual state of the
existing competition, and judging of the propability
of success.—Spectator.
* The discount on papers above 7d. is only 4 per cent.

Captain PoLHILL's agents, after securing
Ma lama MALIBRAN at Naples, are said to have engaged
a company of Italian dancers to introduce their national
style of ballets at Drury-lane. Another of his agents,
last week, according to the same report, engaged PAUL
and his clever sister MONTESAU, from the F'tencti Opera.
Upon hearing this, Mr. Ssoutst hasti y left London fur
Paris. So much for rivalry.—Arhenfflum•
Some of the omnibuses have now written
upon them as an enticement to passengers, " positively
the warmest and quickest on the road." It would be
thought, for a vehicle which carries sixteen or twenty
people, being properly ventilated, would be a much greater
recommendation.