The Sun.
London, England, 1856-05-20 00:00:00

THE SUM LON DON, TUESDAY EVENING, MAY 201_1856.

ITAPERI.A.

'AMEN T.

Lassia
Comaans.

C ostnu Prins
yesterday.

Rneinersa
this daY.

HOUSE OF LORDS-(YESTERDAY).

London &
N. West.
L.&N.W.
Calodon...
E. Un. &
E. C.....

The LORD CHANCELLOR took his seat on the woolsack
at five o'clock.
ECCLESIASTICAL COURTS IN IRELAND.

ii : 97
94 - 98

The LORD CHANCELLOR, in answer toga ques-
tion from Lord Donoughmore, said it was his intention
to leave the ecclesiastical courts in Ireland untouched,
but to establish a court of divorce there similar to the
one proposed by the new bill for this country.
NATIONAL GALLERY BILL.
This bill was read a first time.
SECONDARY PUNISHMENTS.
Earl STANHOPE gave notice to move, on Friday,
for the appointment of a select committee to inquire
into the operation of the act substituting penal service
for transportation.
MARITIME LAW.
Lord COLCHESTER, gave notice of a motion for
Thursday, on the subject of the declaration signed by
the Paris conference in reference to maritime law.

11 - 13
133 - 135
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COSTA RICA.
The Earl of ELGIN asked if there were'any truth in
the statement which had appeared in
.the papers re-
specting a promise of a supply of arms being made by
the government of this country to the goiernment of
Costa Rica ?
The Earl of CLARENDON said the letter of Mr.
Hammond was a genuine letter, and it arose from this
circumstance :—Since the attack of Walker on that
country they had several times applied to this country
for assistance, but all these applications had been re
fused, and the Government had expressedtheir determi-
nation not to interfere in the affairs of Central America,
in fact, to do nothing more than send such a force to
the coast of South America as might suffice for the pro-
tection of British subjects and property. It was repre-
sented by Mr; Wal►erstein that a slight force would
suffice for the protection of British subjects, and also
repel the aggression of Walker, and he asked if the
War Department of this country would supply them
with arms. The answer referred to was sent ; but since
that time Mr. Waderstein was dead, and nothing had
been done. He (the Earl of Clarendon) had since com-
municated with the United States Government on the
subject, and Mr. Crampton reported a conversation
wits Mr. Marcy, on the 15th March, to the effect that
the *MIKA States Government entirely disapproved of
the proceedings, In answer to that, he bad suggested
that there could be no better plan thau.for-the English
and United States Governments to unite for the protec-
tion of their respective subjects. (Hear, hear.)
CI fiCASSIA.

En. Conn.
E. Count.

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In answer to the Earl of MALDIESBUBT,
The Earl of CLARENDON said it was true that a
deputation from the Circassians bad come to the Porte,
headed by Safer Pacha, not a Circassian himself, and
who was anything hut friendly to the allies. He did
not think that they had any particular claim on the
allied Governments, and no answer had been sent to the
representation addressed to this Government. There
was no objection to lay before the house the notes pre-
sented to the Paris Conference by the Sardinian Govern-
ment. .

point of fact made some days before the anniversary of the
ratification of the treaty of peace. Under these circum-
stances, the Government did. not feel justified in making
the advance without, the authority of Parliament ; they
left that, practically, the second-year of -the war had com-
menced, and that the spirit of the treaty. required that the
second million should he p,.id to Sardinia ; they felt that
when it was a mere question of ono or two days, it was not
just or equitable to offer any difficulty to the payment of
the second million ; and they trust that under these cir-
:umstances the house will authorise them to carry into
effect the spirit of the treaty, and advance the second mil-
lion to defray the expenses of the Sardinian army, which
•:,xpenses have considerably exceeded iu point of fact the
amount of the paymentis made to the Sardinian Exchequer.
This is an obligation which regard for the good faith of
this country requires us to discharge, especially after the
gallaut manner in which the Sardinian troops have per-
formed their duty. I will now proceed to state the esti-
mate d expenditure for the year 1356-7. It is as fol-
lows :

bus'lels, Now, although it is true that the duty on malt hag
J:n effect upon the consumption, it is right that I should
point out that on the whole—taking the malt duty, as it is
at present under the distillery hew, as nothing more than a
beer datv in another form—the' article of beer is lightly
taxed at this time when compared with the burdens which
it has borne at comparatively recent periods. From the
peace up to the year 1829 there was a beer duty as well as
malt duty and a hop duty. The average produce of those
three duties for the years, 1827, 1828, and 1829, was
7,192,474.1. The beer duty alone produced in 1827 3,200,9021.;
in 1828, 3,224,6971. ; and in 1829, 2,989,5611. That duty
was repealed in 1829, and it has not since been reimposed.
In 1831, 1832, and 1.833 the average produce of the malt
and hop duties, which were the only two duties which then
fell upon beer, was 5,011,9111.,as compared with 7,19 ?,474/.,
in the three preceding years. During the last threo years
the average produce of the two duties of malt and hops has
been 6,530.886/. a-year. Therefore, if we take the produce
of the war malt duty and compare it with the average
tax on beer in the years 1827, 1828, and 1829, it will be
seen that in those three years the average duty was
7,192,4741., whereas in the last three years it has only been
6,530,8861. Including the war duty therefore on malt, beer
has been in the last two years a more lightly taxed article
than it was in 1827, 1828, and 1829. There is another
point of view in which the duties on beer and on spirits
may be compared, which certaiulyfavours the assumption
that the duty on malt is not excessive. Unquestionably, if
the duty on f,pii its can be considered reasonable, th? pre-
sent duty on beer must be regarded as altogether insignifi-
cant. The price ot a barrel of beer may be taken at about
335. The quantity of malt used in making that beer pays
a duty of about 6s. 4d., and the hops pay about ld. The
duty, therefore, upon a barrel of beer may be taken at 6s.
83., the proportion of the duty to the price being about 25
per cent. Now, the price of a gallon of plain spiritsls about
10s. Bd. The duty thereon is Bs. ; so that the proportion
of duty to price in the case of spirits is not less than 303
per cent. Lois comparison certainly shows that, as con-
trasted with spirits, beer is subjected to an extremely mo-
derate tax. I will now read certain figures to which I have
before referred, showing the gross and net amounts which
we estimate to receive from the different branches of re.
venue:—

mitted to the house the resolutions for a loan in Consols to
the extent of 5,000,0001. Since that statement the instal-
ments of that loan have been completely paid up. Daring
the last financial year the suns received on account of that
loan was 3e millions, and during the present financial year
13 million, making together the 5,000,00)1. Ia addition
to that operation I received the assent of Parliament for
funding a sum of 3,000,0001. of Exchequer bills, which
operation has subsequently taken effect, and been effectual
for the purpose for which it was proposed. The amount of
bills subscribed for was 2,230,00e1. ; the money paid in
lieu of bills was 769,0001. The Exchequer bills, which
were at a discount of 7s. and 3s. in February, before the
announcement of that plan, rose to par, or about par, and
at the March exchange the operation was effected
without difficulty, although :Exchequer bilis had pre-
viously, been at a discount. This is a short statement,
of these two operations, which the committee and Par-
liament are already acquaints 1 with. Since that time
the balance-sheet for the financial year 1855-e has been
laid before Parliament, and the house has had an oppor-
tunity of seeing the exact result in print of the receipts and
expenditure of last year. I shall net think it my duty to
trouble them with any recapitulation cf the results of that
bs.lanceeilieet beyond a short statement, which, perhaps,
•6
may assist hon. members in understanding the compara-
tive •••
statement which has been made. The exPer eiture sof co'
for the year was 88,428,0001. ; the revenue derived from ,f erect
to Se
taxation was 65,701,000'. ; leaving an excess of expendi-
ture over revenue derived from taxation of 22,723,000/.
This sum the committee will observe is exclusive of an .
additional sum of 1,000,0001. advanced on account of the I will now state the charge of collecting the revenue, in
loan to Sardinia, and also of the sum applied to the re- order to obviate any objection which my hon. friend the
member for Lambeth may "
raise. The chat
for collecting
demption of the hereditary pensions, which amounted the revenue is 4,583,0007.
Leaving this ou'Cof the question,
to 213,000/. ; these sums did not properly fall into the the amount of expenditure to be provided for, including
ordinary expenditure of the year, and therefore not Cr- the one million for the loan to Sardinia, is 75,525,0001.
tered in the first part of the balance-sheet, bat as these That sum will cover the entire estimated service for the
coming year • but, as may easily be conceived, it is diffi-
payments had to be met out of the ways and means et: if not 'impossible,' to make a correct estimate of the
of the year they are added at the bottom to the sum of cost that will be incurred in transporting our army from
22,723,0001., and show a total excess of payments over the East, and defraying various demands which may arise
revenue derived from taxation of 23,936,000/. In order to in the change from a state of war to a state of peace. I
shall therefore be prepared at a later period of the session
cover this excess of payments the following sums were
to make application—not because I have any reason to
raised by borrowing ;by loans on Consols 19,501,0007. ; anticipate that the estimate will be exceeded, but
by Exchequer Bonds, 977,750/. ; and by Exchequer Bills, simply as a measure of precaution —to the house to
6,0e0,00e1. ; making a total of 26,478,750/. The committee flees a vote of credit to the extent of 2,000,000/.
That will make a total e‘ timated expenditure, including
will observe that the money borrowed was greater than
the two millions as a centiugeney, of 77,525,000'. I will
the excess of payments by 2,512,0331. ; it is therefore my
to now state the estimated revenue for the current year, and
duty to account for this sum of 2,542,0007., in order
it will not be necessary for me to trouble the committee in
show that the Exchequer has benefitte.d by the difference. detail with the estimates of all the different branches of
Now, sir, the explanation is simple; if any hon. gentle- taxation. I will confine myself simply to those taxes of
which the rates have been altered during the war, those
man will compare the accounts presented, he will find the being, I apprehend, the taxes to which the principal atten-
result shown in the difference in the balances in the Ex- Mon of the committee will be directed. I will begin with
chequer. The balance in the Exchequer on the 31st of the income tax. The income tax is continued for this year
March, 1556, was 5,600,000/. ;on the 31st of March, 1855, and for another year. (" Oh," and laughter.) It is conti-
the balance was 3,949,0001. ; but it must be observed, nued for the present year during the existing law, and in
however, that this balance was subject in effect to a dednc. dealing with the revenue I propose to confine myself entirely
tion of 1,000,0001. on account of outstanding ways and to the year ending Ist of April next. The income tax is
means bills, advanced in anticipation of the revenue of continued till that time at is. 41. in the pound. The pre-
the succeeding year, which were paid off in 1855-56 : rise words of the act are, " During the present year and
it is therefore necessary, in order to make this CC/LW until the 6th day of April which shell first happen after the
parison fair to deduct that sum of 1,000,0301, from expiration of one year from the ratification of the treaty of
the balance on the 31st of March, 1855, which leaves a sum peace, and no longer." I therefore estimate from the in-
of 2,949,0001. as the real balance on that day • and if we come tax for the ensuing year a gross sum of 16,355,0001.,
compare that balance with the balance on 'the 3' st of and a net sum of 16,000.0)01. I will now pass to the war
March, 1856, we shall find the increase in the balance on duties on tea, sugar, and coffee. Those duties stand on a
the latter day is 2,651,000/. The sum I had to account different footing from the income tax. They were to cou-
for was 2,542,0007., se that the committee will observe tinue till the sth of April-12 mouths from the date of the
there is a balance iu favour of the Exchequer of 100,000/. definitive treaty of peace. The date of the definitive treaty
beyond the sum which I hail to account for out of the of peace was the 30th of March, and therefore those duties
money received on account of the funded and unfunded will continue for one year from the 30th of March last, and
debt. Now, sir, the expenditure of the year which has until the following sth of April, that is to say
the duration
remind the house--as a war expenditure. The expenditure of those duties es short as it is possible. The duty on tea,
on account of the charge for the debt has been slightly in- which will continue under that act till the sth April next,
creased, and the-civil expenditure has uneergone some sliget is ls. 9d. per lb.; under the present law the duty will be,
augmentation, but the main increase on the expenditure from April, 1857, to April, 1553, ls. 3d. per lb.; and after
has been for purposes connected with the war. I have, April, 1858, it will be fixed at is. per lb. With regard to
therefore, prepared a statement which will exhibit as fairly sugar the regulations are somewhat different. Common i
and dietinctly as possible the exact expenditure for war brown Muscovado is subject to a duty of 13s. 9d. per cwt.
purposes in the past and previous years. On a former oc- till April, 1857, then the duty till April, 1858, is Us. Bd.,
ca.eion in this session I Mated the expenditure for purposes and after that period it is 9s. GI Coffee is subject to a
of war, taking the measure of it by the amount of the army duty of 44. per lb. afterwards. Now, with reference to
and navy estimates ; but it was objected that those esti. the continuance of those duties at their present amount
mates did not shoW the exact state of the subject. They diming this year, I will Make the liberty of calling the
did show the increased charge of the establishments for attention of the committee to a statement which appears
military purposes, and not the increase of the charge for to me satisfactory, both in a fiscal point of view and also
the debt, and were, therefore, not a perfectly fair statement as regards the habits of the population of this country. In
of the additional expenditure. I have, therefore, on this 1835 the quantity of tea taken for home consumption was
'occasion, adopted a different mode of calculation, which 36,574,0001b5. In 1835 the quantity had risen—perhaps
must include every additional expense. The total expendi- it will be sufficient if I read the millions—it had risen to
Mare in the two years, 1854.55 and 1a55-56, deducting 14,000,0001b5. ; in 1852, to 51,000,0001b5, ; in 1853, tc
1,000,000/. advanced on loan to Sardinia, was 155,111,0007., 53,000,0001b5. ;in 1854, to 61,00e,0031b5. ; and in 1855, to
the total expenditure for all public purposes whatever. In 63,000,0001b5. (Hear, hear.) Therefore the committee
two years of peace immediately preceding, 1852-53, and will observe that, notwithstanding the increase of duty in
1853-54, the total expenditure was 102,033,0001. ; if, there- the last year, and notwithstanding the various circum-
fore, we deduct the expenditure for two years of peace from stances which might have led to a diminished consumption
that for the two years of war we will find the gxcess to be —such as the increased price of food and higher taxation
53,033,000 e; by adopting this mode of computation every during the war—the consumption of tea has continued to
additional expense that can be attributed to the war will be increase. Of coffee the number of lbs. taken for censures).
included. In the two years of war the revenue dived tion in 1835 was 23,000,000 ;in 1845, 34,000,000 ;in 1853,
nte
from taxation amounted to 125,200,000/. ;in the t woer years 3500,000 ; and in 1855, it had fallen to 35,030,000 ; but
of peace it was 103,618,0007.; the increase, therefore, in the still it is much in excess of the consumption in 1835. I
revenue derived from taxation in the two years of war has will now state the amount, of sugar consumed, indicating,
been 17,182,0007.; the money. raised by addition to the to a great extent, the same habits. Taking refined and un -
funded' and unfunded debt during the same two years was refined sugar together, the amount taken for consumption
33,604,0007.; and therefore the total sum raised in these in 1835 was 4,800,000 cwt. ; in 1852 it was 7,172,000 ;in
two years from increased revenue and money borrowed was 1853 it was 7,487,000; in 1854 it was 8,332,000; and last
50,786,0001.; but to this sum we must add the surplus of year it was 7,547,000. With regard to molasses, the quan-
income over expenditure to the two years of peace, amount- tity taken for consumption in 1835 was 763,000 cwt. ; and
in 7to 5,916,0001., which will make the total expenses of in 1855, 920,000 cwt. Therefore with regard to those arti-
the war expenditure up to the present time 56,702,00''7. cles of tea, coffee, and sugar, notwithstanding the increase
If we make a similar calculation with respect to the esti- of duties imposed during the war, the consumption on the
mated expenditure for the present year, and compare it whole has been in a satisfactory state, and indicates the
with the expenditure in the years of peace preceding the advance of temperate habits. I now come to the article of
war, we shall find an excess of 24,500,0007., which, added spirits, upon which an increase of duty has taken place
to the expense incurred in the last two years, will show during the last year. The duty on spirits in England and
the whole expenditure that can fairly be attributed to the Scotland is Bs. a gallon ;in Ireland it is 6s. 2d. The spirit
war for the two yews to be 77,583,0007. Now, sir, before duties I believe were never in a sounder state than they
I proceed to the detailed estimate of the expenditure are at present with regard to the relations between the
for the year, I would beg leave to call the attention three kingdoms, with regard to the drawback, and also as '
of the committee to the peculiar character of the to the question of malt distillation. That is a subject '
contest in which we have been engaged. Modern inven- which has always caused great embarrassment in the re-
tions, and the improved means of locomotion which modern gulation of the spirit duties. The committee will, I think,
skill and science furnish, have enabled us to crowd into a concur with me in thinking that we are justified in the
small space of time operations which in former years would present state of the revenue in obtaining
from spirits as
have been spread over a period of much longer duration, large an amount of revenue as they will yield, provided we
The American war lasted six years, and added 124 millions do not incur the danger arising from illicit distillation.
to the national debt; the actual hostilities of the late war Perhaps the committee will allow me to read the opinion of
lasted for two years, and added 42,000,0007. to the national a writer on that subject, in whose school of finance I con-
debt, funded and unfunded. By the measures adopted dur- fess lam not a disciple, and whose evidence therefore lam
ing this war, we have avoided those strains on the Indus- the more ready to avail myself of. I mean Sir Archibald
try and trade of the Country caused by the course pursued Alison, the well-known historian. He has filled a judicial
in former years.; we avoided all disputes with neutrals office in Glasgow, ant has had an opportunity of obserY-
about the search of ships ;we have involved ourselves in no ing the operation of the spirit duty. He says
dispute arising from that obnoxious right ; and we have "To assert that the increased consumption of spirits by the
wisely waived the extreme rights of a belligerent in mare- working classes is favourable to their morality is so strange a
time warfare. I trust the convention lately concluded at doctrine, and so contrary to universal experience, that it ap-
Paris will set the, seal on the concession so wisely made pears almost inconceivable it could have been hazarded in any
during the late war. The slight cloud which has arisen be- intelligent assembly. Since the duties on spirits have been
tween this country and America, caused by the efforts made reduced a half, the consumption of them has been increased
to obtain an addition to our army in the territories of the above 200 per cent., and the proportion consumed per head
United States will, I trust, be speedily dispelled by the advanced in the same proportion—facts which go far to ex-
genial influence of peace. There is another point which plain the contemporaneous duplication of crime during the same
we ought not to leave out of our consideration, with regard period. As to the cessation of demoralisation by illicit distilia-
to the great expenditure in the late war for military and tion and smuggling, it is a real benefit, but it is dearly purchased
naval purposes. The late war found us, to a great extent, by the wholesale demoralisation of so large a part of the
unprepared for the struggle, and we have devoted a very working classes by the facility of obtaining ardent spirits.
large sum during these years to the improvement of our There is more crime, domestic unhappiness, family feuds, and
military and naval preparations. Our military arsenals social demoralisation produced iu Glasgow by cheap whisky
are now much fuller, our guns are more perfect, our troops in one month than ever was by smuggling over all Scotland
aro armed with a weapon far more perfect than was the in 10 years. There is uo person practically 'versant with the
case at the commencement of the war ; our navy is more details 'of both, as the author has been for 20 years, who will
numerous, better appointed, more efficient for all the par- maintain a contrary opinion. There is no such fit object of tax-
poses of a navy than at the beginning of belligerent opera- ration, in an indirect form, as ardent spirits, because the ad-
tions. It must be remembered that we are now in possession dition which the increased duty makes to the price of the
of a greater amount of materials of all kinds for naval and article, when taken in moderation, is so small as to be trifling
military purposes than we possessed at the beginning of the even to the humblest consumer, while the addition to the
war ; and therefore the amount which has been expended public revenue is immense, from the vast numbers who par-
has not been entirely for temporary purposes. I will now take of the comfort. It is on the drunkards alone it falls as a
proceed to state to the house the estimate of the expendi- serious burden."
ture and revenue for the ensuing year 1856-57. Although (Hear.) Such are the opinions of a man who, having paid
peace has been happily concluded, and although we not eaattention to the subject, deliberately gives his saf-
era Mt,
now in a state of war, yet the present year must for all frage in favour of a moderately high duty on spirits. I
practical purposes be considered to a great extent to be a will now refer to a similar comparison to that which I in-
year of war. Extensivepreparations were made dering the stituted in respect to tea, sugar, and coffee, and it will be
winter for the campaign by sea and land, and at the corn- seen that when applied to spirits and beer it produces a
mencement of the present year we were in aposition to have different result. That result is not so favourable in a
carried on a most effective campaign with our land forces financial point of view ; but lam sure that it will be heard
and. our sea force. The expenditure, I rejoice to say, is now with unmixed satisfaction by those who consider the moral
unnecessary, as we have not been called on to commence a habits of the population. In 1835 the quantity of British
third campaign; but au expenditure has been incurred, a spirits consumed was 24,710,238 gallons, in 1845 it was
large portion of which will become payable during the pre- 23,122,538 gallons, in 185 e it was 25,200,879 gallons, in
sent year. We shall have to provide for the transport of 18e3 it was 25,021,317 gallons, in 1854 it was 25,883,584
our troops from the Crimea ; and the expenses necessarily gallons, and in 1855 it was 21,957,275 gallons. Now, lest
incurred in paying off troops and all the costs incurred in the committee should think that that diminution is owing
the dispersion of the army and navy will have to be de- exclusively to the duty and not also to the improved habits
frayed in the present year. There is also another expense of the people, I would call their attention to a similar
which we will have to provide for, as we have undertaken comparison with respect to beer. In 1835 the total quan-
to convey the Sardinian troops from the Crimea, for tity of beer consumed was 16,330,010 barrels, in 1815 it
which we shall have to provide ships. Notwithstanding all was 14,925,113 barrels, in 1852 it was 16,756,285 barrels,
these sources of expenditure which it will be necessary to in 1853 it was 17.184,033 barrels, in 1854 it was 16,136,893
provide for during the present year, I rejoice to say that it barrels, and in 1855 it was 15, 184,559 barrels. The con-
has been in the power of her Majesty's Government to presumption of beer, therefore, has remained very nearly
sent a very reduced estimate for the military and naval ser- stationary since the year 1835. There is another cause of
vices. The original estimate for the army was 34,998,000/. ; an accidental nature which produced some effect on the
the revised estimate presented a short time since is produce of the spirit duties in the year which has
20,747,030/ , showing a reduction of 14, e 51,0001. The ori- just passed, and which may continue to operate in the pre-
ginal estimate for the navy was 19,876,000'. ; the revised is sent year, which diminishes the duty ; but which is, never-
-16,568,000/. ; showing a difference of 3,303,033'. The total theless, an advantage to the spirit, trade, and which in-
of the original estimate for the two services was 54,874,0001. creases also the demand for articles from which British
The revised estimate onlyamounts to 37,315,0)01.; showing spirits are made. I allude to the failure of the wine crop
a reduction on the two services of 17,559,0007. Besides the abroad for several years, and to the consequent diminution
additional expenditure for the coming year to which I have in the quantity of brandy produced on the continent.
already adverted, there is another expense to which I will That diminution has led to a large increase in the export of
now call the attention of the committee, which arises from British spirits to thetcontinent; and that export, of course,
our convention with Sardinia entered into in the beginning raises the price of spirits in our market, although it pro-
cf last year. The firstarticle of the convention which was ducee no benefit to the revenue, inasmuch as spirits expor
made on the 26th of January, 1855, is as follows : . ted to the continent are either exported out of bond with-
-1
Article I.—Her Majesty the Queen of the United Kingdom I out duty or entitled to a drawback. In 1853 the totta
of Great Britain and Ireland undertakes to recotnmend to quantity of spirits exported from the united kingdonnt•to
her Parliament to enable her to advance by way of loan to his foreign parts was 931,210 gallons ;in 1851 tat quantityuae Y
Majesty the King of Sardinia the sum of 1,000,0007. ; Of had risen to 749,959 gallons ; and last year taeid That
which sum 500,000'. sterling shall be paid by her Majesty as had increased to no less than 4,263,697 ga e ..
duced a consider
soon as possible after the assent of her parliament shall have large quantity exported must have .
been given, and the remaining 500,000/. at the expiration of able-effect on the home trade on
differs both from
six months after payment of the first sem; and her Britan- article of malt. The war duty on
rfienf
oi definitive
willtra treaty
aos
ef
colonin:ial produce. It
nic Majesty engages further to recommend to her parliament the income tax and from the dutyo
t war and until the nth of
spiripts.ro I now come to the
to enable her-if the war should not have been brought tea was continued during theft ee
close at the expiration of 12 months after payment of the first July next after the reta_ athdee
instalment of the abeveneentioned loan—to advance to his peace, and no lonr.
e the ratifications of the treaty
-should terminate, inasmuch a
Majesty the King of Sardinia, in the same proportions, a like nearly at the earliest period at which it was possible that it
sum of 1,000,0' 07. sterling. .I.hraaett i odnnu
to: ,
Now, sir, the act by which that convention was carried of peace were exchanged in the present quarter, and the
g falls at the end of this quartet.' The
ansbfehel, and it will fall on the Ist of July neat
into effect.' eceived the royal assent on the 26th of April, July first e
1865. Some delay in the exchange of ratifications had duty
te
prevented her Majesty's GoVernment from introducing, however,
the bill. at an earlier period. That delay, however, does not h
measure present
the la w
entireto 2s. 8
losso. a
Nbvhuis.
will
suffer in consequence of the 'reduction ; for it will be no-
was not in any way to be attributed to the Sardinian
under
in accordance not only with former precedents but
Goverrithent, but arose from circumstances over which e !
alsoerYitli equity, to allow a drawback
they had no control. The first payment was made
handw• and that drawback is on all stocks in
on the sth of May, 1855, a few days after the act . estimated. by the most ex-
aimed officers as likely
to amount to a sum not very
received the royal assent, and the second payment on farerishort of 1,000 000
the 3d of November last ; and bills for the third
instalment of half a million were drawn on the Treasury, be made during the present year l;
and we shall, there-
dated at Turin on the sth of October last, which were ac- fore, lose not only the increased war duty on malt
ce ted by her Majesty's Government on the 20th, when from the Ist of July next, but we shall also lose pro-
P
they were under the impression that the war would bably not much less than 1,00e,000/. in the repayment of
continue, as they had no anticipation that peace would be duty upon stock in hand. With regard to the malt duty, it
signed so soon. I now wish to call the attention of the must be admitted that the falling off in the consumption
committee to a singular coincidence of dates. The treaty appears to indicate that the pressure of the duty has to a 1
of Paris was signed on the 30th ef March, but the eatiffca- considerable extent affected the consumption of the article.
tions were not exchanged till the 27th of April. The act Some effect, no doubt, is to be attributed to the price of
of Parliament received the royal assent ou the 26th of barle during the last year ; but I think that the figures
• day • and b the convention \ which
April on the previous y , y her lam about to read to
the committee will show that,
April had engaged, ifwill take '
the war was not terminated perhaps, the diminution of duty which
within 12 months, to recommend Parliamene to advence , less it ehould be arrested, will not very materially increase
to the Ring of Sardinia a Second sum of one rnillien, The i the consumption. In 1835 the quantity of malt brought
exchenee cf the ratifications of actety did not take 1 into charge in this country was 42,892,051 bushels ;in 1845
I
lace until a year and a day after the hed received the , that quantity had fallen. to 36_,.t , 615 990 bushels •in 1859 ie
P . 41 ' .''
'
992 178 bushels • in
royal assent. The first payment was made two or three i was 41,071,636 bushels; m 18531 was , ,
days after that, but application for the
yii

Expenditure.

Gros:z•.

Furded Debt, Including New Loaa
I'nfnnded Debt . . •
Permauent charg-cs on Cons,,lidated Fun
flity .•. • • £20,747,000
Navy ..... • • • • • • • 16,568,00)
Ci`•i' - - 6,sCO3COO

het.

Charges of collect n; the Revenue.
Vote of Credit.• .... • • ••• • • •• •
Loan to Sardinia

Total expenditure • • .

£,,2,113,000

27,635,000
1;02500
1,753,000

44,115,030

2,000,0)0
1,000,000

£77,525,000

Gross Estimate. Net Estimate
Customs
Excise 17,170,000 16,348,000
Stamps
Lands and assessed taxes 3,110,000 2,950,000
Property and income tax 16,355,000 16,000,000
Post-office
Crown lands
Miscellaneous 1,000,000 1,000,000

Total £71,740,000 £67,152,000
Then, deducting the total estimated revenue from the total
estimated expeuditure—including the margin of 2,000,0001.
which I stated that should request the committee to assent
to in order to guard against contingencies—the deficiency
will be 10,373,0001. From that sum must be deducted
1,500,0001. which has been received in the present year as
the pro luce of the loan of 5,000,0001., which was effected*
short time before Easter ; and that makes the estimated
deficiencyB,B73,ooo/. ; or,omitting the margin of 2,00e,0001.,
it leaves the real estimated deficiency at 6,873,0001. ; or,
adding the 2,000,C031., which we propose as a vote of credit,
the estimate? deficiency will be 8,873,00 W. In this state
of the public revenue and expenditure, her Majesty's Go-
vernment do not think that, in the present circumstances
of the country, looking to the probability of the publie in.
came at any early period becoming adequate to meet all
the demands upon it, and also having regard to the expec-
tations naturally excited by a return from war to peace,
Si well as to the difficulty of imposing any new taxes, they
would be justified in proposing any additional taxation to
this house. On the other hand, with the estimated defi-
ciency in the expenditure of the year to which I have ad-
verted, we do not feel it consistent with our duty to recom-
mend any diminution from any source of revenue which the
existing law supplies. We have, therefore, deterrained to
propose no change in the present taxation f the country.
If the common phrase, " state of transition," is ever appli.
cable, it is especially so in regard to the present year, when
we are passing from a state of war to one of peace, and
when the country is placed in circumstances of so peculiar,
temporary, and exceptional a nature as to render any pro-
posals calculated to affect the future in any permanent
manner wholly impolitic and undesirable. We have, there-
fore, arrived at the decision to maintain the public taxation
on its existing basis ; and have resolved to resort to borrow-
ing to make up the deficiency. We propose, in the first in.
stance, to have recourse to a loan of 5,000,0001. The pro-
posals for that loan were made public a short time since.
The offers were received this morning at the Treasury.
The price originally offered was 1081. for 1001. in Consols.
The reserve price fixed by the Government was some•
what less being 1071. 10s. 7d., or equal to Con-
sole at 93. The terms fixed by the Government were
accepted by the contractors, and the usual agreement was
signed by both parties this morning. The arrangement
will be submitted to the committee in the form of
a resolution, which I shall move before I conclude.
This transaction, illustrating as it does the great
resources and ample available capital of this country at
the close of the arduous contest in which we have for two
years been engaged, may be regarded in that point of view
as very satisfactory; and it is further gratifying as show-
ing the extensive monetary operations conducted by single
individuals in this country, in whose honour great confi-
dence is deservedly placed by a large portion of the com-
munity. Baron Lionel de Rothschild informed me this
morning that the deposits in his hands, sent by persons
desirous of obtaining a share in this loan, amounted to a
sum of not less than 4,000,0001., the whole of which was
transmitted either in Bank of England notes or in gold.
The amount thus subscribed in actual money, being de-
posits of 10 per cent. on the loan, represented a capital
of 40,000,0001. (Hear, hear.) This fact I state on the
authority, and with the permission, of Baron Roths.
child ; and I believe that the committee, on an examina-
tion of the price of stocks, will be of opinion that the lean
agreed to this morning was effected on terms perfectly
fair as between the parties concerned ; that while, on the
one hand, the price is as high as her Majesty's Govern-
ment had a right to expect, a reasonable rate of remune-
ration on the other is secured to those who come forward
at such a Moment to advance their capital to the public.
I therefore trust that the committee will allow that her
Majesty's Government exercised a sound discretion in nee
gotiating a loan on the terms and in the manner which I
have described. (Hear, hear.) Bat this loan will not
cover the entire estimated deficiency of the year. Omit-
ting for the present the margin of 2,000,0091. for contin-
gent expenses, the estimated deficiency for the year is
6,873,0001.; thus leaving, beyond the loan of 5,000,0001.,
an estimated deficit of 1,873,000/. This sum I reckon
in round numbers at 2,008,0001., and I propose, at
a later period of the session to ask the house to
agree to confer on the Government a power of
bor-
rowing,
when the necessity shall arise, an amount
equal to that in Exchequer-bonds, with an alternative
power of issuing Exchequer-bills, should the state of
the money-market render such an operation advisable,
to the extent of 2,000,000/. That sum, as the committee
will have collected from my statement, will cover the
whole of the estimated deficiency of the year. If the
house should agree to a vote of credit of 200,001 W., to meet
any accidental excess, I propose to take a similar power
to cover that vote also,—a power which I trust there will
be no difficulty in granting. I have stated that I propose
probably to borrow that sum in Exchequer Bonds. The
present state of the Exchequer Bill market may render it
inexpedient to increase that portion of the unfunded debt.
Many circumstances have occurred of late years calculated
to diminish the quantity of Exchequer Bills which can be
made to float upon terms advantageous to the holders.
The great increase in the amount o railway debentures
has produced a security of a similar nature which comes
into competition with Exchequer-bills. The placing of
money at call with bankers is another circumstance which
has abridged the demand for Exchequer-bills. There is
not, therefore, an active call at present for so large
an amount of these securities at a fair premium as was for-
merly the case. At the same time I believe that tempo-
rary causes have produced the fall in their value which has
occurred during the last week or fortnight, and it would be
rash to draw any decided inference from so brief an expe-
rience. With, the permission of the committee I shall
state the precise quantity of Exchequer-bills now in the
market. That quantity was diminished by the funding
before Easter. The amount of Exchequer-bills outstand-
ing this day (19th May) is 20,124,0301.; but of that sum
the Commissioners for the Reduction of the National Debt
hold 5,000,0001. This 5,000,0001. may be regarded as vir-
tually in the hands of the Government, and is never likely
to be brought into the market. The amount of these bills in
the hands of the public is therefore no greater than
15.124,00 C/. There are many circumstances which render it
probable that the depreciation inExchquer-bills for the last
10 or or 14 days is of a merely accidental nature, and that
they will soon resumethe position they had before the fund-
ing was announced and continue a portion of the unfunded
debt. At the end of the late contest, in which considerable
additions have been made to our national debt, it is na-
tural that we should revert in retrospect to the progress
and fate of that debt in previous wars. Unfortunately,
among the most marked characteristics of the national
debt of this country has been its immoveability, the very
slow efforts made to reduce it, when once it has been in-
creased—the increase being allowed to remain, while little
has been done in subsequent years towards its diminution
either by the operation of a sinking fund or otherwise.
However, we cannot but observe with satisfaction that oar
present position, as compared with the state of our debt at
the end of the last war, is not a disadvant'ageous one. I
will Useable the committee, as the subject is of great im-
portance, with a simple comparison of the state of our
funded and unfunded debt at the close of the last war and
at the present time. On the sth of January, 1816, the
capital of the funded debt of England was stated at
816,311,939/. ; o wing sth of January, 1856, it was
766,778,5 ; eha decrease of 49,533,3101. That de-
crease has taken place notwithstanding the addition made
to the debt last year. I come now to the unfunded debt ;
where the comparison is even more favourable. On the
sth of January, 1816, the unfunded debt was stated at,
43,939,7081. ; 011 the sth Jan. last it was 26,614,2001. , show-
ing a decrease in the capital of the unfunded debt of
17,325,5081. The total diminution in the funded and the
unfunded debt since the end of the last war is 66 858,818'.
Let us now see what change has taken place in the charge
of the debt. On the sthJan., 1816, the charge of the funded
debt was 30,458,201/. ; on the sth of January, 1856, it was
27,275,7681.—5h0wing
a diminution of 3,182,4361. With
regard to the unfunded debt, the charge on Jan. 5, 1816,
was 2,325,9611. ; on Jan. 5, 1856, it was no more than
893,769 i., showing a diminution of 1,332,1951. The total
diminution in the charge of the funded and unfunded debt
since the close of the last war is 4,514,631/. In connection
with the question of the debt, it is right I should
state to the committee what are those accruing liabilities
in the nature of that debt which are to be anticipated in
the immediately following years, and which will have to be
met out of the revenue of the country. Next year-1857
—there will fall due Exchequer bonds to the amount of
2,000,0001. In 1858 there will fall due Exchequer bonds
to the same amount, and a sinking fund for war loans to
the amount of 1,500,0001., making a total of 3,500,000/.
The accruing liabilities will be the same in 1859; but ia
the following year —lB6O —the Exchequer-bonds falling
due will be 1,000,0001., and the sinking fund 1,600,0°01e,
making the total amount 2,500,0001. From 1861 to 1873
there will be an annual payment of 1,500,000/. for the war
sinking fund, and from 1874 to 1877 the payment will be
500,0001. per annum. The statement which I have now
made goes up to April last, and does not include any bonds
which may be issued in the present financial year. While
such are our accruing liabilities, there is one topic of con-
solation which I am happy,
committee. In 1860 annuities to be able to put before the
ties cease to the amount of
2,150,0001., and in 1867 there, will be a cessation of the
dead weight of naval and military pensions to the extent
of 585,7401. Sir, the statement which I have made seems to
me to exhibit the only manner in which the national debt can
ever be really extinguished. It is a sanguine delusion to ex-
pect that any mysterious self-acting sinking fund can be
formed by which the debt of a country can ever be dimi-
nished. Public debt, like private debt, can be extinguished
only by the application of money. In the case of a nation
that money can be raised only by taxation, There is only
one resource to which an honest Legislature can resort in
our to mll9 g surpltui roTorivi by texitiQui
.