The Sun.
London, England, 1856-05-22 00:00:00

FIRE INSURANCE.

Although the various clauses of the new Fire Insurance
Bill were agreed to in committee on Monday evening, not
a word transpired to alter the view already formed by
the public on the character of the measure. The Chan-
cellor of the Exchequer himself admitted that he does
not attach any particular value to the claese declaring
all persons liable to duty who may effect insurances in
foreign companies, since there is a total absence of any
means to enforce it, while, as regards the injurious nature
in a commercial country of a tax that discourages habits
of prudence, there was apparently no difference of opi-
nion. Several members intimated a conviction that, in
defiance of the bill, English fire insurance policies Will
be largely opened on the continent, but the Chancellor
of the Exchequer thinkc that if the statute-book declares
people liable he will be entitled to denounce all as dis-
itheet who fail voluntarily to attend with the required
contribution. In this way the risk is of bringing large
classes into disrepute. A tax is contrived to tempt eva-
sion, not only by its aineuut, hut by the impracticah:-
lity of collecting it, and then it is thought expedient to
darnaqe further the self-respect of those who have been
thus influenced, and to render them still le-s sensitive on
other matters. Enough has already been done in this
way by the income tax, although in that case some tan•
gable means of collection aro available, and it is painful
to see the system extended. Indeed the Government
seemed to be aware of the inherent weakness of their
position, and to prefer returning to the old plea that the
present moment is not one for the surrender of a re-
venue of 1,300,0001. It is not, however, a question of
surrender, but whether, by the present sacrifice 01
a portion, they shall make certain the re-
tention of the remainder, and lay the founda-
tion of an ultimate recovery of the whole.
It was stated by one member last night that
insurances to a very large amount are being
effected abroad. The duty on these will probably be
entirely lost to the country, and-all that will be left to
the Chancellor in such instances will be to stigmatise so
many of his countrymen as dishonourable persons.
There is one method also by which the action of the bill
will.be avoided, and with regard to which the Chancellor,
will not be entitled to utter a single complaint or rce
proach—namely, by effecting insurances tor a term of •
years in a continental office by a single payment before
the bill has received the Royal assent and become law.
The following letter, received several days back, givog
an illustration of the extent to which this is likely to be
adopted

" Sir,—l trust the Chancellor of the Exchequer will not
persevere in his attempt to continue the duty uow chargeable
in respect to fire insurance. Should he do so, lam antlio.
rised to say that au enormous amount of fire insurance busi-
ness will be lost to this country.

"There aro many ways by whi.•li the Chancellor's bill,
now before Parliament, may be evaded, should it become
law, but- au immense amount of business will be diverted
before the Chancellor can pass his bill.
" I am a large insurer, and pay annually to one °Mc°
alone (the Kent Fire-office) more than 3 0/. for duty on fit"
policies ; on the day following the third reading of tha
Chancellor's bill, in the Commons, I shall effect policies for
10 years in a Paris office on the same terms as I am insured
in the Kent-office, and shall by this transaction save 3,0001•
I shall be allowed for the 10 years' insurance a discount
equal to near 71. per centum per annum on the money to bo
paid diwn, which will be a further source of profit, and Ile
doubt hundreds of other persons will do the same thing.
" I am, Sir, yturs, kc.,
" KNOWLES KING.
" Maidstone, May 13."