The Sun.
London, England, 1856-02-23 00:00:00

how far that estimate has been verified by the result. We are by piepetual annuities. Well, sir, the amount of Exchequer-
not very far from the end of the last quarter of the year, and bills which it is proposed to fund is 3,000,0001. If the re-
the statement which lam now about to read includes the at- suit of that operation le tho means of bringing the rest of
count of the revenue and expenditure up to a late day, and the Exchequer-bills up to pay, it will be found to be a most
contains also an estimate for the remaining portion of the advantageous arrangement. Ido not know whether the corn-
quarter gathered from authentic sources, and may be relied ' mittee wish to be informed ef the number of Exchequer-tills
upon as likely to be accurate. In the estimate which I made issued last year. Thetotal amount of Exchequer-bills now
last year the Customs were taken at 22,450,0C,0a; while the . eutstandiag is 23,930;0501. The amount, however, in the
receipts, so far as can be estimated, will only reach to hands of the public mar be taken at about 17,0)0,0001. The
21,600,000!., showing a deficiency of about 853,000/. below , rate of interest, 21d., is equal to 31. 16s. per cent. Assuming
what was estimated. The produce of the Excise was put that the measure lam about to submit should succeed in raising
down at 17,921,000/., while the result only showed a return the price of Exchequerhills the amount of about 20,000,000/.
of 16,860,0001., the deficiency thus amounting to 1,061,000/. being at par would be asaving to the public of about 193,000/.
The estimate of the stamp duties was 6,815,0001., the , per annum, as compared with the alternative of the raising
actual receipts amounting to 6,930,0001., being an excess of of the rate of interest. The total amount of outstanding
1 115,0001. For "taxes" the estimate was 2,902,0001., 1 bills is 23,000,0001. The annual interest is 1,053,0001. It
while the produce was 2,950,0001., showing a small excess . might, perhaps, become possible, by straining the powers of
of 3c),0001. The property tax was estimated to yield ;borrowing entrusted tothe Executive Government, to provide
14,535,000 h, it actually producing 14,726,0001., an excess . for the deficiency of 4;a.0,0001. for a little time longer. But
over estimate of 191,000/. The result of the estimate on ac. the powers of borrowing committed to the executive govern-
count of the Post-office has not been very satisfactory, for meat have been confined within narrow limits by the wise
while the returns from this department were put down at jealousy of former parliiments. Their whole power of borrow-
-1038,0001., the result only realised the amount of 1,141,000/. ing is limited to the ihang of deficiency bills to be made
showing a falling off of 297,000/. From the Crown lands the charges on the Consolicated Fuud, which must be repaid in
receipts were estimated at 260,000/., while the miscellaneous the quarter, and also to the issuing of ways and means, ap-
receipts were put down at 800,0001.; they yielded, however, plicable only to the public services; and which must be paid
an amount of 1,100,000/., or 300,0001. in excess of estimate. off in the subsequent cimeter. Beyond that the Executive Go-
The total result, therefore, with regard to the financial return vernment are wholly amble to raise a single shilling by boirow-
of the year is this, that while there has been an estimate of hag. They cannot issue a single Exchequer bill, they cannot
67,139,000/., the actual receipts have only amounted to sell a perpetual annuitywithout the consent of Parliament. I
65,567,0001,, there being an excess in some branches of am aware that there ere some persons whose imagination
636,000/. and a deficiency upon others of 2,280,0001. Tho loan takes fire at the idea of t loan to be raised. However much
produced 16,000,0001.; the issue of Exchequer bills and they may be disposed b blame even the limited extent of
Exchequer bonds for 7,000,0001. nearly realising the amount. this loan, I think, won consideration, they will be of
So that the total estimated revenue for the year, including opinion that the course taken by the Government is on the
both land and taxes, was 139,000!., while the actual receipts
whole a prudent one. All, therefore, I propose to do by the
will be 88,593,0001., showing altogether, in round numbers, present resolution is, to ask the committee to place the Go-
a deficiency of 1,600,0001. That, sir, is a complete statement vernment in the same losition as if an extraordinary expen-
of the comparison between the estimate and the actual re.. diture had taken place in the present year, and as if no ex-
venue for the year. With regard to the expenditure : the traordinary circumstances had arisen in the high price of food
expenditure on account of the interest of the debt was
nearly, as was estimated, 27,384,00a—0ther charges upon and other contingencies had not occurred to diminish the
weight of taxation, Sr, if these resolutions should meet the
the Consolidated Fund amounting to 1,000,000/. The esti- approbation of the. conmitteo, the Government will after-
mates on account of the army, navy, and ordnance amounted wards ask the sanction of Parliament to provide ample ways
to 49,812,0031., while the actual expenditnre has been
and means for the ensuing quarter. We shall then be able to
51,611,000/. - showing an excess of expenditure over estimee• judge how far the uegctiations
neigh-
of 1,800,0001. The estimate on account of the civil service now proceeding in a
homing country are likely to terminate iu a safe and honour-
was 6,506,0001.—an excess of 100,000/• over the estimate,
able peace. If, happily, they should lead to that issue, the
The interest on Exchequer-bills, owing to the increased rate, Government will have the power deliberately to consider the
has been 60,000/. over the estimate, which was 590,0001,, the
Sardinia has state of the revenue, to revise the estimates, and to calculate
amount paid being 650,000/. The actual loan to
what will be necessary to meet the expenditure of the follow-
been 1,000,0001. The grand result, therefore, is this—while
the total estimated expenditure for the year has been ing year. If unhappily, however, these negotiations should not
terminate as we must all desire, and that we shall not have
88,340,000/., the actual expenditure will be 90,200,0001., or such a peace as would cement the interests of Europe in a
1,860,000/. in excess of estimate. Therefore the exact result lasting and solid manner, it will then be the duty of the Go-
is that the state of the revenue is worse than what it was vernment to appeal to this house to place them in a position
estimated to amount to by the sum of 3,560,000/. Now the
M which they will be enabled to meet the large estimates for
main cause of that deficiency is owing to the article of sugar,
warlike purposes that will be in such a case required, and to
An increase was made last year in the duties upon sugar and continue the struggle in which we have been engaged during
coffee. With regard to tea and coffee, the results nearly cur- the last year. Having submitted this explanation to the cor-
respond with the estimate. It does not appear that the addi- mittee, I will now move, sir, the resolutions which I have
tional duties imposed upon these two articles of foreign and placed in your hands,
colonial produce Iwo materially- diminished their eoasump- The CHAIRMAN then put the first resolution, which was
tion. Indeed, with regard to tea, the consumption has in_ one empowering the Government to raise a loan of 5,000,000/.
creased, for while the quantity entered for consumption in
1853 was 58,860,0001 b., in 1854 61,970,0001 b., in 1855 the incurred Sir H. WILLOUGHBY said it was quite clear they had
quantity amounted to 63,454,0001 b. With regard to sugar the payment of a heavy bill, and he was not aware
the Government could have resorted to a better mode for its
the result is different—owing to the short importations of liquidation than that proposed by the Chancellor of the Ex-
that article. The importation of sugar in 1853 was 317,000 chequer.
tons, in 1851 389,000 tons, while in 1855 it only reached to Mr- W. WILLIAMS objected to the mode adopted by
281,000 tons, the deficiency, as I before said, being caused the Chancellor of the Exchequer for raising this money.
by tho shortness of the supply of the article. With It would, have been better had the right honourable gen-
regard to the Excise almost the whole of the den- tleman raised this money by a loan, receiving the sterling
ciency is ascribable to one cause, and that is to the inside. for every 11. of debt, whereby they would have reduced the
cleat produce of the duty upon spirits. Several causes have amount of interest to be paid on the sum borrowed. He ob-
tended to that result; and first it was owing to the large jested to their entailing a portion of this debt on posterity,
drawback upon the malt, in consequence of the changed and considered it a very unwise course to adopt. The debt
mode of taking that duty; secondly, to the sacrifice of the of this country by Government following out that course
duty upon certain articles manufactured from spirits. The would increase to such an amount; that the people would be
main cause, however, is ascribable to the high' price of corn unable to bear it, and the consequence would be the endan-
prevalent during the present year; for, as the committee may gering the institutions of the country, if it did not affect the
be aware, since the 15th of September last the average price Throne also.
of corn has been 755, per quarter, But there was another Mr. JAS. MACGREGOR thought that the Chancellor of
cause which influenced the price. I allude to a circumstance the Exchequer had adopted a prudent and judicious course—
which was found beneficial to the distilling trade, and which (hear) —and as to what the hoe. member for Lambeth had
greatly enhanced the demand of. barley. I mean the great said about Mr. Macaulay turning prophet, he (Mr. Macgregor)
increase which had taken place last year in the expor. would remind the hon. member that he had himself indulged
tation of British spirits in consequence of the extensive in prophecy as to what the effect of the present system would
failure in the wine crop on the Continent. The' great be inrespect to posterity. (Hear.)
diminution of the wine crop on the Continent not Mr. WILKINSON was of opinion that posterity would
only diminished the quality of wine, but also of brandy; not have much reason •to complain at the rate at which
and this circumstance had, therefore, led to a largo ex- the Chancellor of the Exchequer was raising the required
portation of British spirits, in order to supply the, void funds ; and the fact that the right hon. gentleman was able
thus created. The spirits thus exported. were not, of course, to procure money at 3/. 65.. Bd. was strong, as showing the
subject to duty, and therefore yielded nothing to the revenue. confidence capitalists had in this country being able to meet
Under the head of stamps there was also a loss, as was esti. all her engagements. (Hear.)
mated, last year of about 220,0001. on newspapers, in cense- Mr. GLADSTONE said that the measure was ono that left
quence of the alteration which took place in reference to the them but little discretion, and at the same time with little
stamp. That loss was, however, to a certain extent compen. with which to find fault. Considering the limited amount re-
sated by the Post-office revenue, arising from the newspapers quired by the Government, he found no fault with the course
passing through that establishmentwith the impressed stamp pursued by the Chancellor of the Exchequer. He thought
upon them. Nevertheless, on the whole, the Post-office re- hon, members would leave the house with a false impression
vent e shows a diminution. The direct taxation—the property if they believed the war had cost no more than that stated
• tax and the assessed taxes—.are more thanthey were estimated by the Chancellor of the Exchequer. He (Mr. Gladstone) un-
to be. In regard to the expenditure, the increase on the ex- derstood the Government had borrowed 28 millions during
pecediture is 300,000/., owing to the supplemental estimates, the present year, and now, by raising 5 millions on loan, and
which were either, voted in the present session or are now funding 3 millions of Exchequer-bills, they were adding 9
upou the table of the house. These votes are as fol- millions sterling more to it. He did not consider the compa-
lows ;—ln the Ordnance the deficiency of the grant for risen made by the Chancellor of the Exchequer to show the
1855-56 is 646,000/. That estimate is still under the con. cost of the war a fair one, and when they came to consider
sideration of the committee of saliply. ,With regard to the largo amounts that were due, and contingencies arising
the navy the excess already voted is 204,9821. The on an extension of their military system, and the effects of
total supplementary military and naval estimates voted or war generally, they would find that the country had expend-
to be voted in the present session, without referring to the cd considerably more than 45 millions on this war. With
current year, is 1,631,095/. I will now' state to the commit- regard to the statement of the Chancellor of the Exchequer,
tee how much of it would have been incurred in an ordinary that a wise- jealousy on the part of the Parliament bad con-
year of peace, and how much must be set down to the extra- fined the borrowing powers of the Government within narrow
ordinary cause in operation. I have made a comparison be- limits, the result had been to show a very unwise liberality
tween those two calculations, which I think will make the and great carelessness on the part of the Government in en-
matter somewhat clear to the committee.. The peace expendi- trusting t..) the executive the powers of borrowing by an in-
ture for military purposes, for our army, cox.unissariat, navy, direct process. He intended, just before ho loft office, to
ordnance, and including that for the Kafir war, for tho 22:1 years have introduced a bill still further limiting the borrowing
preceding the war, amounted to 30,984,0001. The present w..r powers of the Government ; and lie hoped that when they
had lasted 22A months, and taking the entire expenditure dur- had concluded an honourable peace the right hon. gentleman
i ing that time, the amount was 74,549,0e01, Tho difference be: would turn his attention to that subject.
tween these two sums is 43,564,00 t/. That, therefore, is the Mr. P. URQUHART having addressed the house,
s sum, as nearly as it can be calculated, which the war has cost The resolutions wore agreedto.
, this Country. I believe that that sum includes everything The house then resumed.
appertaining to the military expenditure of the country, SUPPLY.
The result of the statement I have now submitted to the On the motion that the Speaker do leave the chair,
committee is, that we find ourselves at this moment in the Col. DUNNE complained that no information had been fur-
position of being something more than 4,000,0;01, deficient nished respecting the Ordnance estimhtes. All that could be
of the sum estimated in the last session of Parliament. The ascertained was that the salaries of the officers had been in-
margin, which I originally reckoned at 4,40,000/., would, erdised enormously in certain departments, but the duties
as nearly as possible, have left the expenditure and the re- bad been most inefficiently performed. With regard to the
venue at the end of the year without any certain reserve or accounts themselves ho did not believe it would have been
surplus. The resolutions which I mean to place in the hands possible to cramso much confusion into so few sheets of paper.
of the chairman are for the purpose of enabling the Govern- It was a perfect Balaklava, with Turkish, German, and Italian
ment, with the consent of the house, to place the finances of accounts all mixed up together, without order or method.
the country for the prompt quarter in the position in which The extravagance that was exhibited in the War Department
they would have been placed if the estimates of last year was perfectly monstrous. In 1 52 and 1853 that department
had been verified by the result. The excess in the deficiency cost only 101,1441., whereas for 1856.7 the estimate was
of the revenue leaves about 4,000,000/, to be provided for. 169,0261., thus showing- a loss to the country of about
I will, therefore, submit to the committee a resolution for 67,0001. The present systemof clothing was the most expen.
the supply of 5,00J,0001., which will amply provide for , sive, extravagant, and absurd system in the whole world.
the service in the present quarter, and which will leave Instead of the old system of placing the responsibility of cloth-
some surplus to meet the immediate demands in then ensuing the troops upon talc colonels, the Government had adopted
ing financial year. Sir, the entire sum which has been a system of contracts which they could not carry out, and
already borrowed in the present year is composed as fol- it was to be hoped that this qu stion would bo referred to
lows—namely, of a loan aniounting to 11,000,0001., of a committee of inquiry. It was impossible for the Govern-
-0,000,0001, of Exchequer-bills, and 1,000,0001. of Exchequer- merit to undertake the clothing of tho army, and there
bonds, making altogether 23,000,0a0/. T 9 that sum will be would bo great loss to the country in making the attempt.
added—if these resolutions receive the assent of the commit- Right honourable gentlemen opposite believed that the
tee—a further sum of 5,000,031., which will make altoge- French system could be introduced into our service, but
ther within this year, raised by loan, a sum of 28,C00,000/. of • that was out of the question. Our army was too small,
increased expenditure. Sir, lam well aware of the great dis- and time men were not ready to turn their hands to any-
advantage of imposing se large and so new a-burden upon the thing as the French were. (The hoeousab'e gentleman then
Exchequer as the sum I have just stated ; 'but in considerina detailed the system of clothing adopted in the French service
the magnitude of the new burden we should not allow our- at considerable length). For the British Government to un-
selves to be disheartened. We must not suppose taiat we dertake a mauufacteny for clothing our army, would
have thereby in defraying the expenses of this coady and gi- require an ()sway of about 40,0001., for manufactories,
gantic war—that we have loaded the springa of industry in and the saving proposed, even if it could be effected,
this country with a burden whieh is likely,
We know the apprehensions which in foenner
to crush them, would not cover the interest of the money advanced. But
years were en- it was quite impracticable, and the only sound plan was to
tertained with regard to the sueceset ve additions to the na- have it done by contract with respectable tradesmen, giving
tional debt. Those fears have laeenexplained in a passage the colonel the, responsibility of seeing that the contracts
of a work which most of the m
have read with instruction 'ambers of this house no doubt were properly performed. The present system, however, had
and with pleasure. I allude been pushed to a dangerous excess in the endeavour to get
to Mr. Maeaulay's recen4.ay published volumes of the " His- contracts at the lowest possible price. For instance, when
tory of England," in, which ho illustrates the origin of the the Land Transport Corps wanted trousers, a highly-respect-
national debt. (Haar, hear.) After showing the wifounded able firm tendered for them at 235. a-pair, and they were to
alarms which some of the very greatest writers of make up cloth worth Bs. a-yard. But another tender came in
the last ceeesury_persons profoundly versed in the most for 18s., which, without ceremony, was accepted. What was
advanced aoctrines of political economy—having illustrated the result ? Cloth worth not more than ss. sd. a-yard was
the alarms, and apprehensions which they entertained, he used, and the work was so bad that the Government were
proceeds to make the following remarks :--" A long experi- ashamed to serve them out ; and if they ever were served, it
e.nee justifies us in believing that England may iu the 20th must be with a compensation to the men. The saddlery for
century be batter able to bear a debt of 1,600,000,0001. than the German Legion, which was alluded to the other night,
she is at present prepared to meet this loan ; but be this as was auother instance of,similar bad management. The horses
it may those who predicted that she would sink under bits, too, were all bad, and it was said this was because they
50,000,0001., under 80,000,0001., under 140.000,0001., *der were of galvanised iron. But that was not the reason at all;
240,000,0001., and lastly under 800,000,0001., were beyond the truth was they were all cast instead of being wrought
all doubt, under a twofold mistake ; they overrated the pres- iron, and snapped directly. The remedy for all this was
sure of the burden, and then underrated the strength by not to institute Government ettablishments, but to see
which that burden was to be borne." Sir, the circumstances that proper contracts were made, and those contracts pro-
of the country at present show clearly that we should cog- perly performed, Only recently a contract had been made
mit a great error if, in the words of Mr. Macaulay, "we un- for rifles, and 20,0001. advanced to an unsafe firm, and but
derrated the strength by which the burden is to be borne." I for the activity of an -officer in the department, who went
will, by the permission of the committee, call attention to a few down in great haste, and was fortunate enough to secure a
facts, which show how little the general trade and resources mortgage on the factory, the whole of this money would have
of the country have suffered, notwithstanding the great been lost, and the rifles most likely have gone to the Russians.
efforts which have been made to carry on the war. I will first Tho estimate for the Government factory for making firearms
ask attention to the subject of exports. The total value of there was an item in the estimate sufficient, at the present
British and Irish produce exported was, duringtho year 1853, contract prices, to furnish 290,000 stand of arms. But had we
98,933,000/. ;in 1854, 97,181,000/. ; and in 1855, 97,364,0301. got them? •It was notorious that our forces were deficient of
—showing, therefore, a very slight diminution in the value of rifles. It was very proper also that the house should know
exports since 1853, which was a year of unusual speculation whether all the men asked for were enlisted, or only expected
both in Australian and American produce. There was a great to be. We ought, from the estimates, to have 264,000 men
diminution in the exports in 1855, which was not, however, in what wag called the British army, and he wished to know
due to the countries which would be naturally affected by the whether we had them ? He should like information of the
influence of war, but was due to the trade with Australia and same kind respecting the German Legion and the Militia, be-
America. In 1854 the value of our exports to Australia was cause be had heard recently that a regiment of militia had
11,784,000/. •, in 1855 it fell to 6,279,000/. The value of the been disbanded because its number was not complete.
exports to the United States was in 1854, 21,410,000/. ; in Foreign Legions were the most expensive troops we could
1855, it was only 17,312,000 e. These facts again showed have. There had been already 778,000/, expended for German
that the falling off of our exports, then, was not traceable and Italian troops for which no equivalent had been received,
to the war. I will now trouble the committee with a and if the war ceased to-morrow, that money would all be
statement in regard to our shipping. The tonnage entered entirely lost. There was 300,000/, also for the Turkish con-
into the ports of the United Kingdom was, in 1853, 1 tingent, without any details at all, and 93,000/. for clothing,
7,797,000 tons ; in 1854 it was 7,899,000 tons; besides other items, making nearly half-a-million for a force
and in 1855, 7,018,000 tons. With regard to the ships that will never be of any great service, while their officers
cleared out :—lii 1853 it was 7,583,000 tons ; in 1854, were most extravagantly paid as compared with our own.
7,807,000 tons ; in 1855, 8,348,000 tons. The numbers of The most monstrous item of all, however, was a million and
ships built were, in 1853, 798; in 1854, 803 ; and in 1855, a quarter for the Land Transport Corps, and 400,000/. for
1,098, I will not trouble the committee with following out animals, when it was notorious that the want of this body
further details. What I have already stated must, I think, was the cause of all our disasters. Whoever was responsible
prove, in the words of her Majesty's Speech, that " the for the want of that transport service was responsible for all
resources of the country are unimpaired." With regard to the evils we suffered in the Crimea. (Hear.) The hon. and
the question as to the defraying the expenses of the war gallant colonel, then, after alluding to the bad quality of the
from a loan or from taxation, it must be, borne in mind by huts, and denouncing the present system of war appoint-
the committee that the war expenditure is of necessity, to ments, by which most incompetent persons were placed id',
use the language of political economists, unproductive. the highest situations, purely 'from family connexions, con-,
The character o a war expenditure- . belongs equally to eluded by moving that the estimates be referred to a coin-
, the revenue raised by loans and by taxation. Of the mitten,
amount I have stated of the war expenditure, beyond
Mr. MONSELL said that the greater part of his hon.
40,000,100/. has been raised in one year by taxation. For friend's speech referred to matters that be could only reply
the most part that was expended in an unproductive man- to in committee on the votes. As for the Government
nor, and had left no traces behind. We had• bequeathed clothing the army, such an idea had never crossed the brain
nothing durable to posterity. There would have been the of any of her Majesty's Ministers, The only statement that
same difference whether we had defrayed the cost of the he would formally contradict, however, was that of the ineffi-
country by loans or by taxation. Sir, the resolution I am ciency of the army appointments. There never was an army
in, enable the Government to raise the sum of-0,000,t001.
about to ask the assent of the committee to will, if acquiesced hi the presence of an enemy better fed, clothed, and disci-
by plined than our own at this moment. It certainly was the
a loan. That loan has been arranged upon terms which I very last thing he should have expected the hon, and gallant
trust will be considered, looking to the present price of colonel to have stated that the recent appointments were uu-
stocks, as advantageous to the nations —The price has been satisfactory.
90 in. the Three per Cent. Consolidated Annuities. Vele, I
, Mr. J. L. RICARDO said the existing deficiencies, of
thick, will be considered on the whole a fair price. In at d'" which much had been heard lately, were chiefly owing to
what might be termed the open tender system. It required
t
tion to this resolution I shall also have to submit certain re-some perseverance indeed to ascertain what e Government
solutions in respect to the funding of Exchequer-bills, Ex-
tenders, in other cases large orderswere wgiervemimwaditehnnuattlnionunt.
system was ; for in some caies
chequer-bills, from various causes, have been at a consider-
able discount educe last autumn. A partial increase has
tracts, while in others the open tender system was adopted.
The clothing department that had been alluded to by the hon
been made in some instances of a halfpenny, and in other
instances of a farthing, which produced for a time souse
member opposite (Col. Dunne) was a fair type of that system..
results; but which did not permanently keep them up at
Helios to send in a sample, and after the sample all the
par. It therefore became necessary for the executive
clothing was to be made. Who was the judge ? Why the
Government to resort to one of two expedients—it was
director-general of clothing—a most excellent man—but no
necessary either to fund the Exchequer-bills or to
judgein- clothing
whatever of cloth. The system leads to this—that men
crease the rate of interest upon the Exchequer in
tendered upon chance upon being able to deceive the in-
circulation.. Tho process of funding Exchequer-bills is
simply the converting of ono kind of security. into another.
It is not the creation of a new debt, but the changing of the specter. This respectable tradesmen would not do; and the
respectable men ware thus driven out of the trade eltogether
debt represented by Exchequer-bills into a debt represented T
i he contraotOrts nen sometimes fotiml out, and were lidle