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

OF THE COUNTRY.

The CHANCELLOR of the EXCHEQUER, in
moving the order of the day for going into Commit-
tee of Ways and Means, said that he thought it
desirable that he should avail himself of this oppor-
tunity of stating more fully than his Noble Friend
(Lord J. Russell) had been able to do on a previous
occasion, the financial state of the country, and also
the course which it was the intention of her Majesty's
Ministers to pursue with reference thereto. Several lion.
Gentlemen had complained that they did not fully un•
perstand some portions of the statement of the financial
condition of the country. And as the motion before the
House was one for going into Committee on Ways
and Means, he thought that it would be the most con-
venient course for him then to make his statement on
the subject, rather than leave it till the House had
resolved itself into Committee. With respect to the
finances of the country, the balance-sheet, as laid be-
fore the House, would show to Honourable
Members, conversant with these matters, what
the state of the finances were. The first
half of that was a comparison of the ordinary
revenue and expenditure of the country.
There was on this occasion an exception to the ordi-
nary rule. It appeared, on the one hand, that there
was an excess of expenditure over income, in th.?
year ending the .sth of February last, of a sum of
2,956,0001. But, upon the other hand, it would appear
that out of that expenditure a sum of 1,525,0001. had
been incurred on account of the distress in Ireland.
Now it was the desire and intention of the Govern-
ment, and of the Lle we, that that expenditure
should be provided for out of the 8,000,0001.
loan, and not to be made a charge against the
ordinary revenue of the country. After, there-
fore, making these deductions, the' excess
of expenditure over income for the year 1848 would
be about 1,400,0001., and deducting from that
sum the China ransom, amounting to
450,0001., which was received last year, the
real excess of expenditure over income would
be about 900,0001.—(Hear.) It was hardly possible
for him to anticipate what would be the income of next
year, because, he was sorry to say, the symptoms of
improvement in trade were not so rapid in their pro-
gress as some Hon. Gentlemen anticipated. The
receipts of the present quarter, as compared with the
receipts of the corresponding period last year, exhibited
a fulling off amounting to upwards of 400,0001.
His Noble Friend had stated on a former occasion
the various items that would compose the
expenditure of the present year. The charge on the
debt would amount to 27,778,0001., and the interest
on Exchequer-bills to 752,000/., and therefore the the
tal amount of charge on debt for the next financial year
would amount to 28,530,0001. But of course there
were other charges, such as for pensions and
half-pay accounts, but those charges were not.
subject to the control of the existing Govern-
ment. The estimates of this year for the
non-effective service amounted to no less a sum
than 3,650,000/., and over that amount of ex-
penditure the House had no control. W hen
therefore, Honourable Gentlemen spoke of the
enormous sums expended by this country, no doubt
they lost sight of these important items, over which
the Government could exercise no power of
reduction. The estimate for the effective service
of the next year amounted only to 18,153,0001.;
and the real expenditure which the House had to
deal with, instead of being between fifty-two and
fifty-three millions, did not exceed eighteen millions
His Hon. Friend the Secretary of the Admiralty had
stated how unjust the accusation of the Hon. Member
for Montrose was that a large portion of the increased
expenditure of Government was a wasteful and
profligate expenditure. And he appealed to the lion.
Member (Mr. Hume) whether he thought he was
justified in thusaccusing the Government. There was
one branch of the public service, the conveyance ofemails
which was not conneed with the military or naval
establishments, but was carried on solely for the ac-
commodation of the commercial world and for the benefit
of trade, in which there was a considerable increase of
expense since the time when he first moved the esti-
mates. Some economical Members were very apt
to increase the expenses of Government in
various ways, forgetting that there was an un-
fortunate person who held the office of
Chancellor of the Exchequer.—(Loud laughter.)
The Hon. Member for Montrose should recollect that
the expense of maintaining lighthouses in this coun-
try, which was paid out of the Government. revenue,
amounted to no less a sum than 220,000/. per
annum. There was also an increase of 264,000/. per
annum in the expenses of the army which was entirely
unconnected with the increase of the number of men.
With respect to the miscellaneous services, the
Government were so fully aware of the necessity of
inquiry into the expenditure on this head that they
had announced their intention of appointing a
Committee on that subject. The sources of the
miscellaneous estimates were continually increasing ;
he found that there was a charge for harbours
of refuge 110,000/. on the recommendation ofa Select
_ _ _ to Caledonian Canal,
Committee, 100 000/
27,0001. for public works in Ireland, 150,000/. for
education, 50,000/. for the British Museum,
350,0001f0r the expenses of prosecutions thrown

upon this fund, expenses of the Model Prison, and
several other prisons—all of which items were im-
posed by the order of the House; the various
items making altogether upwards of 1,000,000/. 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 tt 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 array and nary,
and even the mi,,cellaneous estimates. .He did n)t
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
Gi:verum nt to the conclusion that no such reduction
could be made.—(Great cheerirg.) Upon that point
is right the House should understand that the Govern-
ment must adhere to the non-reduction of forces.--
(Cheers.) The Eight Hon. Gentleman then went on to
say—With regard to the miscellaneous estimates, a
ddferent 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 or by the in-
vestigations of fihe Committee any material :eduction
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 mere In like manner it would be ex--
ceedingly bad economy to stop short in the execution of ,
works.- (Cheers ) We were told the other day that it.
would be very bad economy not to vcte sums for carry-
ing on the building of the Houses of Parliament. Ryon
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 at
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 reelections in the expenditure of private individuals.'
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 iucome, the case bears a considerable
resemblance to that which we must pursue for the-
purpose of bringing the national expenditure within
our means. I am 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-
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. `flee 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
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 51,250,0001. I estimate
the Customs at 19,774,0001. We have had one year of
extraordinary adversity, and another of extraordinary
prosperity. Perhaps the best course is to frame the
estimate with reference to the sum received from the
Customs in the year 1845-46. That was the year after
the reductions made in the tariff by the Right Hon.
Gentleman opposite (Sir Robert Peel) ; and I assume
that the sum to be received in the ensuing year from
the Customs will be about what it was in 1845-46. The
adverse circumstances which occutred did not tell on the
state of the revenue till after the July quarter, though
the failure of the harvest occurred in August, 1846, and
the receipts on the July quarter were very high. I have
calculated on the assumption that the receipts for a con-
siderable period of the year will retain the impress of
the misfortunes which have occurred ; though I
have the fullest confidence that after what we have
gone through we may anticipate eventually $
revival of trade. In the Excise department it
is estimated that the revenue will produce 13,340,000 L
From some arrears there is an extraordinary source of
receipt. A considerable increase is expected from the
malt and spirit duties, though, on the other hand, the
increase is not expected to be great on iron; and we
have also reason to expect a falling off in the hop duty.
From the restriction of expenditure 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 7,150,000/., and on taxes 4,340,0001., 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 D. The produce of the Post-
office is estimated at 900,000/., of Crown lands at
60,0001., and of miscellaneous at 250,000/. The last
instalment of China money has been paid. The whole
income, then, is estimated at 51,250,0001. There are
repayments to be to ceived for advances in Ireland.
The repayments of those advances are to be spread
over not less than ten years; they would, therefore,
efficient yearly to no great sum. We shall receive two
of these. The amount to be repaid at the half-yearly
assizes will be 27.0001. on the first relief wcrks, and on
the second 147,0001. Applications for advances bars
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
district's where distress exists from the funds still in
reserve, and ieem 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., assum,:eg that the income-taz
is renewed. Circumstances during the last two years
have been very peculiar, otherwise the Government
ould have been entitled to look for a surplus revenue
over expenditure. Hew shall we provide for that de-
ficiency of 3,000,000/7 A Right Hon. Gentleman has
said we are riot 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 be remembered that the Right Hon. Gentleman
(Sir Robert Peel) proposed the imposition of an income-
tax for 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/.—(Hear.) 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 Hen. Friend behind me (Mr. 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 I am 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 Psy
for it. I slid that if an alteration in the duties on corns
sugar, timber, and other great articles of consumptio*
had been proposed, I should have been reconciled to so
income-tax. The duties on timber, and corn, and sugar,
have since that period been altered. The circumatancss
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'
se:f justified in supporting it in 1845, and now again in
1848.—(11ear ) I repeat, that I have not made this
statement merely to justify my own consistency; but Ido
think it important that the views of even so humble an in-
dividual as myself, when speaking on the part of Govern-
went, should be received with that confidence which it is
always desirable to place in the declarations of Govern-
ment,—(lleur, hear.) But, whatever occurred in 1842,
I beg to remind the house of what took place in 1845•
In 1845 the incoine-tax was imposed for three years.
The Right Hon. Gentleman (Sir R. Peel) came down.to
the House and stated that he had an excess of incase
over expenditure of upwards of 3,000,000/. It with
therefore, in the power of the Right Hon. Gentleman t°
have proposed the repeal of the income-tax; and it WSs
in the pewer of the House to repeal it. The We'
lion. Gentleman, however, stated that, in his opinion'
it was d, sirable to continue the income-tax for the asks
of the policy which he had indicated in 1842. He pt's'
posed, therefore, that it should be continued for three
y ears longer, to enable the Government to reduce
other taxes which pressed upon the industry of the
country, and upon the raw materials of rnanufactere.
The House unanimously concurred in that opinion.
(Hear, hear.) There were, no doubt, suggestioni
made as to the making it a property-tax only an
Eending it to Ireland. There were various Proln.
sitions of one kind or another made, but no one sat
''
that he opposed the continuance of the income-tax.
Mr. ROBINSON—It was always stated to be a w
prary measure.
The CHANCELLOR of the EXCHEQUER:O'T;
so stated; but I confess Ido not think there
lion. Gentleman in this House who really and A.ru..Y.
believed that it was to be a temporary measure.--(et_ioe.r_
1 ar.) 1 distinctly stated at the time that if the House
consented to the imposition of the income-tax
et
red
~f of three yeara it would be impossible at h
r°o`,.
~f that period to prevent its being permanent.
that the
member that I stated this most distinctly, und
lion. Member for Oxford said that lie suspected
wtedoo. I
wee:
laying the grounds for a future support of the

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