The Sun.
London, England, 1848-02-29 00:00:00

upon this fund, expenses of the Model Prison, and
several other prisons—all of which items were im-
posed bythe order of the House; the various
items making altogether upwards of 1,C00,0001. per
annum chargeable on the miscellaneous estimates A
charge had been made against the Government for
the increase in the charges of collecting the revenue. But
this increased expense arose almost entirely from the
wishes of the merchants and importers themselves, who
requested an increase in the number of hands at the
various ports for the purpose of assisting
in the duty of clearing the various cargoes. He was as
willing as tl:c most economical Member in the House
to reduce all the items of expenditure to the lowest
possible point. This reduction ought, however,
to be effected in a careful and business-like manner.
It might be possible to reduce tke army and navy,
and even the miscellan'aous estimates. He did not
think that it would now be expedient to make
any reduction in either the army or navy, and cir-
cumstances which had :recently transpired led the
Governmtnt to the conchusion that no such reduction .
could be made.—(Great cheering.) Upon that point it
is right the House should understand that the Govern-
ment must adhere to the non-reduction of forces.—
(Cheers.)
The Right Hon. Gentleman then went on to
say—With regard to the miscellaneous estimates, a
different course may he pursued. If reductions can be
effected we shall be most happy to have them suggested.
I should deceive the House, however, if I said that
either by the conduct of the Government cr by the in-
vestigations of the Committee any material reduction
could he effected within the year.—(Cheers,) In point
of fact the decrease would be, nominal in many cases—
there might even be a temporary increase; the only
good effect of that reduction would be gained by paying
off a number of men. In -like manner it would be ex-
ceedingly had economy to stop short in the execution of
works.— (Cheers.) We were told the other day that it
would be very had economy not to vote sums for carry- ,
ing on the building of the Houses of Parliament. If you
now stop short in the execution of the works at Ports- ''
mouth and elsewhere, the result would be ultimate
loss to the country.—(Cheers.) If on examination it is
found that the expenditure may be reduced, the only way
of attaining the object is to prevent any future additional
expenses, to bring reductions gradually, and within a •
certain limited time, into effect, to make them as circum- )
stances may render them practical and expedient. Re-
ductions
in the public expenditure have been compared
to reductions in the expenditure of private individuals._ -A
If a gentleman requires to reduce, it frequently happens
that he shuts up his house, discharges his servants, and
goes abroad. That is not the course which a Govern-
ment can take.—(Cheers and laughter.) If, however,
private individual, instead of shutting up his house, dis-
charging
his servants, and going to the continent, begins
a course of retrenchment, so as gradually to adapt his
expenditure to his income, the case bears a considerable
resemblance to that which we must pursue for the
purpose of bringing the national expenditure within
our means. lam as anxious as any man that the
expenditure should be reduced. I have proposed
two Committees, one to consider the army and ,
navy estimates, the other to consider the miscellaneous
estimates. I cannot, however, anticipate that, with the '
, utmost exertions of these Committees, you will be able
to propose any great reduction of the expenditure
' within the year, whatever reductions they may be able
' to suggest to you, or the Government may be able to •
make in subsequent years. It is of great importance to
bear in mind the circumstances under which some por- I
tions of the estimates have been proposed. Sums have
been already voted for the Kafir war and the excess of ,
naval expenses. Charges of this character have hitherto ;
been invariably included in the budget of the ensuing
, year. The expenses of the Canadian war, of the war
in China, and any excess on the naval vote, which has
not been of frequent occurrence lately, have invariably
been so included in the expenditure for the ensuing
year. The Committee may be able to suggest
reductions on the miscellaneous estimates, but I
cannot anticipate that to any great extent they will
have it in their power to lessen the expenditure of the
country. I come now to the income. My Noble Friend
stated that he anticipates the income of the country for
• the ensuing year will amount to 51,250,0064 I estimate
the Customs at 19,774,0001. We have had one year of
extraordinary adversity, and another of extraordinary
-0,-osperity. Perhaps the best course is to frame the
Letieinte with reference to the sum received from the
Cucte,rns in the year 1845-46. 'That was the year after
the ren uctions made in the tariff by the Right Hon. •
;
Gentie.,e, en opposite (Sir Robert Peel) ; and I assume •
that the sk•m to be received in the ensuing year from
the Custoens will be about what it was in 1845-46. The
adverse cite.seitustances which occurred did not tell on the •
state of the revenue till after the July quarter, though
the failure of `h,' harvest occurred in August, 1846, and
the receipts on ch.' July quarter were very high. I have
calculated on the see
sumption that the receipts for a con-
siderable period of Cle year will retain the impress of
have occurred ,• though I
the misfortunes wisiesh.
have the fullest ence that after what we have
;;one through we nezeY anticipate eventually
,the xcise department it
revival of trade. In
is estimated that the reven 13,340,0001
t e will produce 13 340,0001.
_arum sunie ra ,F there is ate extraordinary source of
receipt. A consierante mere... is expected from the
malt and spirit duties, though, ore the other hand, the
increase is not expected to be gi'eat on iron; and we
have also reason to expect a falling- off in the hop duty.
From the restriction of expenditures on the railroads,
the probability seems to be that on iron for their use
the receipts will rather diminish. The estimate on the
stamps is 7,150,0001., and on taxes 4,340,0,904 and the
income-tax 5,200,0001, on which I apprehend a falling
off in consequence of the pressure on many parties
liable under schedule 1). The produce of the Post-
office is estimated at 900,000/., of Crown Jands at
60,0001., and of miscellaneous at 250,0001. The last
instehnent of China money has been paid. The whole
income, then, is estimated at 51,250,0001. There are
repayments to be r, ceived fur advances in Ireland.
The repayments of those advances are to be spread
over not less than ten years; they would, therefore,
amount yearly to no great sum. We shall receive two
of these. The amount to be repaid at the half-yearly'
assizes will be 27,000/. on the first relief works, and on
the second 147,0001. Applications for advances have
been made from counties in Ireland with the view of
affording employment. My answer was, that I did not
think any large amount of money would be required for
that purpose, because in most of the counties of Ireland
we believed the provisions of the poor-law would be
sufficient. But we are prepared to make advances in
districts where distress exists from the funds still in
reserve, and from the amount which we have received in
repayment. I have now stated the amount of expendi-
ture and of income for the year. The deficiency is
estimated at 3,000,0001., assuming that the income-tax
is renewed. Circumstances during the last two years
have been very peculiar, otherwise the Government
would have been entitled to look for a surplus revenue
over expenditure. How shall we provide for that ee-
fieieney of 3,000,0004? A Right Hon. Gentleman ha%
said we are not justified in having recourse to a loan.
Mr. GOULBURN —The Right Hon. Gentleman seems
to forget that there are 2,500,000/. to be received under
the present income-tax.

The CHANCELLOR of the EXCHEQUER—That
amount, it is true, is receivable; but to that topic I shall
afterwards advert. Our course has been to look at the
financial policy of the last few years, to which the House
has acceded. Without going further back than 1842, it
must he remembered that the Right Hon. Gentleman
(Sir Robert Peel) proposed the imposition of an income-
tax f'or the purpose of reducing indirect taxation--
(Cheers)—partly on the necessaries of life, partly on the
raw materials of manufactures. He proposed, however,
to exempt from the income-tax persons receiving the
lower rates of income. The Right Hon. Gentleman
reduced the duties on many articles of consumption,
such as corn, butter, cheese. We subsequently reduced
the duties on sugar, wool, and other articles. From
1842 to 1847 the total amount of taxation remitted was
no less than 7,500,000/.—(llear.) In 1842 I was one of
those who opposed the income-tax, and my opinion is
unchanged as regards the inequality of its pressure.
My Right Mon. Friend behind me (kr. F. Baring) ob-
jects to its being imposed at all. But I wish to state the
grounds on which I have proceeded, because, however
unworthily I may fill the office I have the honour to
hold, it is desirable to show that I am acting with sin-
cerity; and the best proof is that lam acting on pre-
cisely the principles I laid down in 1842. The grounds
I then alleged for opposing the income-tax were that it
was not worth the price we were then called on to pay
for it. I said that if an alteration in the duties on core,
sugar, timber, and other great articles of consumption
had been proposed, I should have been reconciled to sux
income-tax. The duties on timber, and corn, and sugar,
have since that period been altered. The circumstances
which I said might justify the imposition of an income-
tax have occurred; and, therefore, the circumstances
under which I declared myself opposed to the income-
tax in 1842 were different from those in which I felt my-
self justified in supporting it in 1845, and now again in
1848.—(Hear ) I repeat, that I have not made this
statement merely to justify my own consistency; but I do
think it important that the views of even so humble an in-
dividual as myself, when speaking on the part of Govern-
ment, should be received with that confidence which it is
always desirable to place in the declarations of Govern-
ment.—(Hear, hear.) But, whatever occurred in 1842,
I beg to remind the House of what took place in 1845.
In 1845 the income-tax was imposed for three years.
The Right lion. Gentleman (Sir R. Peel) came down to
the House and stated that he had an excess of income
over expenditure of upwards of 3,000,0001. It was,
therefore, in the power of the Right Hon. Gentleman to
have proposed the repeal of the income-tax; and it was
in the power of the House to repeal it. The Right
Hon. Gentleman, however, stated that, in his opinion,
it was desirable to continue the income-tax for the sake
of the policy which he had indicated in 1842. He pro-
posed, therefore, that it should be continued for three
years longer, to enable the Government to reduce
other taxes which pressed upon the industry of the
country, and upon the raw materials of manufacture.
The House unanimously concurred in that opinion.--'
(hear, hear.) There were, no doubt, suggestions
made as to the snaking it a property-tax only and
evending it to Ireland. There were various propo-
sitions of ono kind or another made, but no one said
that he opposed the continuance of the income-tax.
Mr. ROBINSON—It was always stated to be a tem-
porary measure.
The CHANCELLOR of the EXCHEQUER—It was
so stated; but I confess I do not think there was any
Hon. Gentleman in this House who really and truly
believed that it was to be a temporary measure.—(Hear,
hear.) 1 distinctly stated at the time that if the House
consented to the imposition of the income-tax for a
period of three years it would be impossible at the
end
of that period to prevent its being permanent. I
waes
o . re-
memberm thatb I stated thisoafo most t distinctly,and
dthalt the
s
laying the growl& [OE a future support ofp
the income-
e