The Sun.
London, England, 1851-04-08 00:00:00

THE SUN,

the pockets of an impoverished people for such a pur-
pose. Had the Right Hon. Gentleman shown debts in-
volving the payment of a higher interest, he would have
agreed to the appropriation of n m Ilion even, or more,
but when he purchased at 97, which was price of the
day, the expediency of the outlay might ve,y fairly
be
questioned. Tile Right Hon. Gentleman had reminded
them that within the lest 20 years, 20,000,000/. had been
added to the capital of the debt; a great calamity, no
doubt, in a time of peace, but the Right Hon. Gentleman
omitted to point out that during the same interval a very
large reduction had also been made in the interest, which
more than covered the addition. The last loan raised by
the Right Hon Gentleman was for Ireland, and that
was raised at 87, about five years ago. Surely it could
not be good policy to borrow at 8 per cent. and after five
years to pay such a price as 97. It was, in face, paying
upwards of 6 per cent. for their money. Besides, by pur-
chasing in this stock they would force up the price, which,
however popular it might be in the City and amongst
the holders of the stock itself, would confer no ad-
vantage on the public. He doubted, also, whether
the Government would thereby gain any facility in
future financial operations, because long before the Chan-
cellor of the Exchequer came to bargain an effect would
be produced on the funds, as in the case of the Irish
loan. In his speech on Friday the Right Hon. Gentle-
man declared the principle on which his measures were
based to be to diminish the burden of taxation which
pressed on the labouring classes, and to relieve the in-
dustry of the country. The principle was good, but when
the measures of the Right Hon. Gentleman were tested
by it they would not bear investigation.—(Hear, hear.)
The alteration in the window duties was a very proper
one, but would not relieve one single labourer or working
man.—(Hear.) The Right Hon. Gentleman proposed a
reduction in the coffee duties, and with respect to this
part of his policy he hoped to have another opportunity
of making a few observations; but he could not help pro-
testing against the precipitation with which he proposed
to strike off the differential duty on foreign coffee at
once, without notice or warning. But were the masses
of the people consumers of coffee?—(Cries of "Yes.")
No; they consumed chicory, and he did not deny that the
reduction of the duty might perhaps cause genuine coffee
to be mixed with it to a certain extent. The reduction
of the timber duties might benefit those engaged in
building houses and ships, but were these the masses?
He war, therefore, justified in charging the
Government with want of principle in their financial
measures. The Chancellor of the Exchequer was the
advocate of direct as opposed to indirect taxation. Taxes
were a part of a man's expenditure which regulated the
rest, and he circumscribed his comforts and enjoyments
according to the amount which he was obliged to con-
tribute under this head. If the revenue were raised by
indirect taxation, and every article could be taxed, every
man according to his expenditure would pay alike. But
it was impossible to tax every commodity which entered
into consumption, and certain articles were therefore
selected, such as tea, tobacco, malt, sugar, and various
other articles, and those entered largely into the con-
sumption of the lower orders, and they therefore paid
more than they ought. This was a class which deserved
protection, and the only way to give it was to put a tax
on the price of the articles they produced, thus throw-
ing on the entire community that which this class bad
been compelled to pay in advance.—(llear.) But if by
financial legislation it was so contrived that they could
not thus indemnify themselves, they would be compelled
to work and labour at the rate of the cheapest labour
with which they were obliged to compete, and would
be, moreover, compelled to pay the whole of the tax-
ation out of those reduced wages.—(Hear, hear.)
The policy of the party to which he (Mr. Prinsep)
belonged sought to enable these classes to support
the taxation imposed upon them. The question at every
election had been, and the question at the general elec-
tion would be, whether they should enable the producing
labourer of this country to add the taxation he paid to
the price of the article he produced, or leave him to the
mercy of a competition with the foreigner who produced
under different circumstances.—(hear.) That was the
true issue, though the Right Hon. Gentleman thought
peeper to treat it as a question of a ss. duty on corn.
What was the policy which the Right Hon. Gentleman
proposed to substitute? He asked them to continue the
income-tax to avoid the necessity of such a taxation by
means of customs duties as would alone enable the la-
bourer to relieve himself from the burdens to which he
was subject. But the Right Hon. Gentleman would tell
them that if they allowed the taxation to be added to the
price they would throw the burden on the entire popu-
lation, and sacrifice the good of the whole community
for the advantage of the few. But the fallacy of that
was apparent. Every one who was a producer depended
on the price of the particular commodity on which he
was employed for his profits or his wages. Upon
that price, therefore, whether high or low, he
depended for his living. All the producing classes were
in this predicament, and if you told a man belonging to
those classes cheapness will be a benefit to you, among
the rest he would reply, " I must sell before I can buy."
(Hear, hear.) The best of taxes was a tax on ex-
penditure, whereas the income-tax included in its opera-
tion the profits which a man made in trade, and what he
e
had laid by also, and proceeded somewhat on the prin-
ciple of the Chinese Government with respect to gapnab•
ling n
houses,winnings.
where
i3luOt
iperf t
hcent.
was
et
i n taken
wasfr
great t o oal
everytax-
ing the rent of the landlord and interest derived from
the funds, the objection was much stronger against the
following schedule, under which the tenant farmer was
made to pay on the amount of rent without reference to
his actual profits.—(Hear, hear.) The case of the pro-
fessional man also, who paid on his entire income, was
hard, though he thought that if a professional man
chose to keep up the style of the nobleman he ought to
pay in proportion. He ought to pay on his expendi-
ture, but ought not to be compelled to pay on
that which he had laid by for his family. The con-
trary principle was nearly allied to commuism. The
Right Honourable Gentleman had very properly
commuted the window tax for a tax on houses; but if
he had commuted it fairly, he would have obtained the
same amount, and the total amount of the surplus might
have been applied to any other object, for instance, to
the relief of one-third of the income-tax. To that tax
he objected because its continuance was justified upon
grounds which no longer existed. With respect to coffee,
as he had observed, he protested against bringing Cey-
lon and other colonies in which coffee was cultivated
into competition with Java and other foreign countries,
for, as it took 10 years to bring coffee plantations to
maturity, the proprietors were at all events entitled to
have the duty lowered by degrees, as in the case of sugar.
As to timber, the Right Hon. Gentleman forgot that the
supply could not be increased ad libitum, but must be the
work of many years, and the lowering of the duty would
only serve to put more money into the pockets of the
Baltic proprietors, on whose will the supply must depend.
Objecting altogether, therefore, to the proposition of
the Right Hon. Gentleman, he should give his cordial
support to the motion of the Right Hon Member for
Stamford.—(Hear.)
Mr. F. PEEL said he was quite conscious that there
were a great number of Members in that House with
whose sentiments upon a question like the present it
was much more important for the House to be acquainted
than with his own; but as the Right Hon. Member for
Stamford had stated that they had to make their option
between his plan and the plan of the Government; and
as the conclusion to which he had brought his mind,
after giving the subject the best consideration of which
he was capable, obliged him to dissent from the amend-
ment of the Right lion. Gentleman, while, at the same
time he was far from being able to express an unqualfied
approval of the financial policy of her Majesty's Go-
vernment, he hoped he might be permitted to state very
shortly the grounds upon which he rested his conclusions,
and the vote which he was about to give. Under whet
circumstances was it that the proposition for the renewal
of the income-tax was brought before them? The
Chancellor of the Exchequer had told the House on
Friday night that he wished to abide by the estimates
which he had made on the first financial statement,
and it would be in the recollection of the House that
the Right Honourable Gentleman estimated the pro-
bable income of the then ensuing and now current year,
ending the sth April, 1852, speaking in round numbers,
setting aside altogether the income-tax, at 46,575,0001.,
and the expenditure within the same period at about
50,250,0001., leaving therefore a standing deficit of
about 3,500,000/. True, this deficit underwent consi-
derable diminution in the course of the present year,
because the Government were able to take credit for half
a year of income-tax and half a year's produce of stamp
duties in Ireland, and these together would have the
effect of reducing the deficit in the course of the present
year to about 847,0001., and it was for the purpose of
repairing this deficit, and a deficit of 3,500,0001. in future
years, that the Right Hon. Gentleman invited the House
to consent to the re-imposition of the income-tax for a
further period of three years. He was favourable to the
principle of an income tax.—(Hear.) He was favourable
to it because it combined a system of direct with indirect
taxation, which afforded the means of making the
wealthier classes contribute in proportion to their means
to the revenue required for defraying the public expen-
diture. He did not think that the proportion between
direct and indirect taxation was disturbed by tho impo-
sition of an income-tax. He was quite aware that pro-
perty so called was required to bear a very considerable
imposition, in the shape of assessed taxes, of the local
taxation of the country. On the other side of the ac-
count no man could be more sensible than he was of
the immense advantage which the labouring classes of
the country had derived from the recent modifications
in the fiscal, financial, and commercial system.—(Hear,
hear.) No man was more deeply impressed with or
more ready to avow the immense impetus given to the
manufacturing industry and commercial enterprise of the
country by taking off the duties that weighed with un-
due severity upon the springs of industry, as they were
called, and the sources of employment. What had been
the haagnitude and extent of the changes in the course
of
had
nine Tea"? Between 1842 and the close of 1850 they
remitted taxes upon their linen manufactures, upon
the raw material of manu
factures, and upon the food of
the people, to no lessen extent than 10i millions sterling.
Hon. Gentlemen could see that for themselves in the re-
turns moved for by his Hon. Friend the Member for
Liverpool. Well, had that great reduction of taxation
been attended with any
corresponding diminution of
produce in the great branches of revenue out of which
those duties, supposing they had remained, would have
been paid? So far from the produce of the Customs
and Excise, out of which they were paid, being reduced,
they were nosy as productive in 1851 as they were in
1842, before those great changes were commenced. In
1842 the produce of the Customs and Excise was
36,140,0001,, in 1849 it was 37,271,0001., and in 1850
the gross produce, not deducting those charges which
were incurred by the collection in its way to the re-
venue, was 37,365,0001., so that so far from there being
a reduction to the extent of 10,500,0001., as might
have been expected, the produce had increased nearly
I,2oo,oool.—(Hear, hear.) lie would say that a simple
fact of that kind spoke language more forcibly then any
that could flow from the most gifted ihe i
lips
of—t told of
ncrease thd
e
increase of employment &ad of industry; t