The Sun.
London, England, 1858-04-20 00:00:00

THE SUN, LONDON, TUESDAY E V EATING, APRIL 20,
_lB5B

take the year 1853—the year before the war—and the
years 1855, 1856, and 1857. The total declared value of
the exports and manufactures of the United Kingdom
in 1853 was, in round numbers, 99,000,0001. In 1855 the
declared value had sunk to 95,500,0001. ; is 1856 it had
risen to 116,000,000/,,and in 1857 it had stillfurther risen
to 122,000,0001. In 1853 the exports of textile fabrics
amounted to 52,400,0001, ' • in 1855 to 51,000,0001. ;
in 1856 to 59,000,0001. ; and in 1857 to 61,000,000/.
The exportation of metal fabrics in 1853, the year be-
fore the war, amounted to 19,500,000/. ; in 1855 it sank
to about 18,000,0001. ; in 1856 it rose to 23,500,9001. ;
and in 1857 it reached 26,000,0001. The real value of
the total imports into the United Kingdom in 1855 was
143,000,000/. ; in 1856 172,000,000/. ; and in 1857
137,000,000/. The imports of raw cotton for consump-
tion amounted in the year before the war, 1853, to
746,000,0001b5. ; in 1355, to 767,000,00011er. ; in 1856,
t 108583 British
O 00 OOOibs.;
tonnage anda
amounted
in3n
nltBasd7t,n 9,t 0803070,
,090000,0t0nOnlsb a
nI
dn
foreign to 6,000,000 tons. In 1855 British tonnage was
still 9,000,000 tone,
185a6n d
Ef
roi rt
ai
hg n
attorneo7nm:nooaaoo4loone, eotdoerone.saa,
nbahonleudndt
6,000,0001. In
1118,50700B4OriOtOishtotnnsn,na
gaendhadforrislegnn toablolu,
foreign to 7,400,000. The total amount of tonnage be-
fore the war was 15,380,000 tons, and in the last year
19,072,000 tons. Having placed before the committee
this general view of the condition of the trade and navi-
gation of the country, I will, with their permission, pro-
ceed to what is
.the real business before us to-night,—
namely, to consider our financial position, and to ascer-
tain clearly the charges upon the revenue of the country,
and the means at our command to meet them. Since the
commercial crisis raged tvtih a fury which alarmed the
whole kingdom I need scarcely remind the house that
there has been a considerable restoration of confidence,
and there are at this moment many circumstances which
roust conduce to the increased prosperity of the country.
The rate of interest is very low ; capital is abundant,
money is cheap, and the price of the principal necessa-
ries of life and of the chief articles of consumation is
much lower than it was during last year or the pre-
ceding year. I should, not, however, be doing my duty
to the committee if I concealed from them my own con-
viction, founded upon information which has been at
my command, that although the general condition of
the country is at this moment sound, and al-
though there has been a restoration of confidence and
there are numerous indications of improvement, that we
are not justified in indulging the belief that there will be
a rapid recurrence of that spirit of speculative enterprise
which has prevailed cf late years, and which has un-
doubtedly furnished very beneficial contributions to the
lischequer. 1 will now proceed to state the estimated
expenditure for the year 1858 9. The charge for the
funded and unfunded debts I place at 28,400,0001. The
committee will observe that there is an increase upon
that charge to the extent of 150,0001. This has been
occasioned by the liquidation of the 2,000,000/. of Ex-
chequer-bonds last year, by some diminution of the rate
of interest upon Exchequer-bills, and by some opera-
, tions of the sinking fund upon the public debt. The
next item of expenditure is that for the permanent charge
on the Consolidated Fund. That is an item which, I am
sorry to say, I have felt it my duty to increase. Last
year the charge was, I think, 1,770,0031., but I have
not felt justified this year in placing the amount at less
than 1,900,0001. I have felt it my duty to meke an in-
crease in this item in consequence of the compensation
which the house awarded in a moment of almost reckless
liberality to proctors and other officials connected with
the ecclesiastical courts. (Hear, bear.) The charge for
the army, including the disembodied militia, and reduced
by the amount stated the other night by my right hon.
friend the Secretary for War, will be 11,750,0001. The
charge for the navy, including the packet service, which
has been reduced by my right hen. friend the First Lord
of the Admit alty by some 300,0001., will be 9,860,000/.
The miscellaneous civil services, which hat year
amounted to 7,400,0001., are not at this moment en,
tirely settled. There has been considerable difficulty in
getting in these estimates, and in examining and revising
them, but I have no hesitation in saying that I do not
estimate this item at more than 7,000,0001. for the pre-
sent year. There will, therefore, be a reduction under
this head, as compared with the charge last year, of
400,0001. The committee will allow me to make a
few remarks upon this item. There is at all times
a very great des're to reduce the amount of the Civil
Service Estimates, which were termerly known as the
Miscellaneous Estimates. We often find that hoe. gen-
tlemen who are' perfectly ready to support a con-
silerable expenditure for what are called the great
services, loudly demand that economy should be prac-
tised in the miscellaneous estimates. If, in the vindi-
cation of their estimates, the Government appeal to the
State necessity which requires the maintenance of a
large establishment, they are always told, "There are
I the miscellaneous estimates ; that is the item upon
which you ought to economise. If an army must be
maintained upon a great scale—and if the navy—the
national and favourite service—must be kept up, at all
events the miscellaneous estimates contain some extra-
vagant items which require excision by the financial
knife, and that is the means by which economy must be
practised." Now, although the miscellaneous estimates
are not yet upon the table, I wish the House to con,
eider the nature of those estimates. No. 3 tinder that
head is the estimate for law and justice, and the amount
has increased considerably every year. No. 4 relates to
the subject of education, a question which exoites the
deepest interest in this house. That item has advanced
in amount, year by year, with a giant's pace. (Helix,
h'ar.) I don's mean, on an ccca'ion like the present,
to express an opinion one way or the other as to the
policy of this expenditure. My business to-night is to
give the committee clear and cornplite information as
to the financial position of the country, but it is neces-
s cry for me, in illustrating the system of our expendi-
ture, to call attention to the nature of the miscellaneous
estimates. I will take the item for education, I believe
t eatjwhen the first vote for that object was passed by
the house, about 20 years ago, its amount was not more
than 30,0001. In 10 years the vote had reached the
sena of 243,000/. Teo years more have passed, and the
expenditure under this head, for England and Ireland,
including the schools of art, will for the present year be
not lees than 1,000,0001. sterling. I don't say we have
n:t been perfectly right in pursuing the course which the
house has hitherto taken in this respe.t ; but I think the
house ought clearly to understand what they are doing.
And don't let it be supposed that the Civil Service Esti-
mates, which have been constantly increasing, can be re•
duced in a reckless manner, when under that branch of
expenditure there has been a great system gradually de-
veloping itself, which in a very short time will demand
the outlay of a great department. When I saw the
amount which this year would be incurred under the
head of education—when I remembered that regularly
every year there had been a large augmentation in the
votes for that object, I felt it my duty to form some opi-
nion of what would be the future of this growing branch
of our outgoing., and of what means we have of con-
trolling this expenditure, or of ascertaining generally the
relation in which that department would be placed to
the Exchequer of this country. Now, after having exa•
mined the subject, and giving no opinion, I beg the com-
mittee to observe, upon the policy or impolicy of this
establishment, but only anxious that hon. gentlemen
should clearly understand the responsible position they
occupy in reference to this matter, it is my deliberate
conviction that a system is now rapidly developing itself
in this department of our expenditure which shortly will
arrive at an amount of at least 3,000,0001. or 4,000,0001.
And I think the time has come when the house should
calmly review the course they are pursuing in this re-
spect, and comprehend the liability they are incurring.
(Cheers.) Sir, the item for the Revenue Department is
4,700,0001. The total expenditure for the various de-
partments is 63,610,0001. There is a liability for the
War Sinking Fund of 1,500,000/ , besides 2,000,000/. of
Exchequer Bonds which mu't be liquidated in the early
part of next month. Thus the total charge for the year
1853 59 is 67,110,0001. I now proceed to estimate the
resources with which we are to meet those liabilities. I
will therefore give our computation of the revenue for
1858-59, The estimates of my predecessor for the Cus-
toms was 22,350,0001., and the sum paid into the Exche-
quer was 23,109,0001. Now, in forming an estimate of
the probable return from the Customs for this year, we
must, in the first place, observe that, although the
amount paid under this head into the Exchequer was
23,109,0001 , the net receipt of this department for the
year was 23,239,0001., or, not to perplex the committee
with odd numbers, 23 300,0001. That difference be-
tween the net receipt of the Customs and the sum paid
into the Exchequer was occa;iJned by certain advances
which were mainly owing to the changes rendered neces-
sary in consequence of the great revolution decided upon
by this house of paying the gross revenue into the Ex-
chequer. Therefore, in calculating what the Customs
may produce this year, we must really take as our basis
ike actual net receipts, not the amount paid into the
Exchequer, which was lessened in its passage thither by
the sum of 200,0001., for which that department Rill not
be liable in another year. In considering the probable
result of the Customs duties this year we must she re•
member that since the late commercial panic and di,ar ens
they have exhibited great buoyancy. We must remem-
ber th it all the circumstances of the countryarefcaivieoau,r-
-t
favour-
able to consurnwion. Capital is abundant, teensy
Creed between 40 and 50 per cent. lower in price
it was, and of sugar, which was very high and scarce la-.tyear, we have the prospect of ample supplies, while
its cost has fallen considerably—so much, indeed, as h
10 cheap,
per cwt. In fact, there is a combination of causes
et work which, under ordinary circa': stances, would
all stimulate consumption. We must further remember
that there is one great influence c.lculated to be most
advantegeous to the Exchequer—viz., that the country
is now beginning to feel the benefit of that great remis-
eion of taxation which the house determined upon last
year. No doubt, when the revenue rallied at the end
of the last'quarter of the past year, that result was to
he attributed in some degree to the restoration of eon•
tidence, and the eradual, even 'tepid, decline in the
value of money. But it is impo2s Ms to shut cur eyes
to the confusi )n that what has mainly sustained uu/
revenue—what has suprtted and even stimu'ated
consumption, at a time when there were great coin-
morel 1 disturbance and depression, has been the action
of that 9,000,C00/. of remitted taxation which was
brought into the pockets of the people, and brought into
their pockets only towards the end of the year. Because
the committee will recollect that, although the Govern-
'cent, influenced by the feeling of the country and the
determination of this house, remitted the 9,000,000/
produced by the war income-tax at the commencement
of the year, six months elapsed before the relief could be
felt by the public, owing to the manner iu which the
income-tax is collected. For the first six months the
I country paid the war 93., and it was only at the latter
end of the year, at the period when all this distress ex•
ion
w
nedtntitohsl
eyiti
tprati
public
baaeanl
icenoenn
sufficientna.
havingsnnAd dne pgavlrit
powernet sdthshii
oof feted,el
mmtr heaneye
anxasnanPadtedyi
inn:we
geeapndrs c,atssothiounrargettmt e dsuit uschsbhdat
s
i ydn
nk
tion of those who counselled at that time the txpediet goy

of reducing the burdens of the country to that amount. tificial attempts to pay debt when you have not a revenue
Now, we shall reap the great benefit of that measure in which affords you a natural surplus for the operation.
our Customs' duties this year. I should not be acting (Hear, hear.) Here is the account of the public income
fairly to the committee if I did not state that, though the and expenditure, from which I will real oily one item.
Castoms last year produced 23,289,000/., that amount Our expenditure amounted to 70,000,0001., and out in-
was swollen by a large amount paid f•r tea duties in coma to nearly the same amount ; but although we are
April, 1857, which belonged to the preceding year, in dealing with these immense amounts, you wil find there
consequence of the alteration of those duties. It would is an excess of expenditure over income. Our income
not be right to omit from our calculation that 400,0001. 1 arneented last year to 63 millions, and yet our expendi-
paid for tea duties ought really to have been included tore exceeded that amount by, in round numbers two
in the return for 1856-57. But, taking all these circum- millions and a half; but when Igo to the other side of
stances into consideration—taking the amount last year the balance-sheet and look at the expenditure, I find
realized upon Customs, notwithstanding the commercial there a sum absorbed by the slaking fund, by the redemp-
crisis, at 23,300,0001. in round numbers—allowing in tion of Exchequer-bonds, and by the liquidation of pub-
my estimate for the present year a diminution in the tea- lic debt amounting to two millions and a quarter—only
duties of about 200,000/.—calculating the produce of a quarter of a million less than the excess of expendi-
those duties upon the amount which has been and pro- tore. Well, what full ,we ! It follows that you certainly
bably will be consumed by the public—deducting from have paid off debt, but you have not paid off debt out of
that amount 3,500,0001 b. to meet the extraordinary your revenue. (Hear, hear.) You must have paid it out
aceestion to the Exchequer to which I have referred cf the balances of the Exchequer, and the committee
—and remembering also that as far as this article must feel that that is a system which, though upon one
is concerned, the prospects of the tea trade occasion it might answer, cannot long he continued. The
are extremely favourable, there having scarcely committee, therefore, must now consider what is the
been any period at which the supplies were consequence of bringing past and present burdens to act
more promising, I think I am justified in simultaneously upon the revenue of the year. The only
placing the amount of the Customs at 23,400,0001., consequence can be war taxation in time of peace ; and
or 100,0001. more than they yielded last year. I now can you have this war taxation in time of peace coneis-
come, sir, to the next great source of supply to our re- tently with that commercial prosperity on which you de-
venue—the Excise, which is estimated by the right hon. Pend, and of which you are often talking ! I must there-
member for Radnor at 17,000,0001., and which, notwith- fare, ask the committee to consider whether the time
etanding all the distress of last year, produced has not come at which, not merely with reference to this
17,325,000/. This item I have ventured, after the I year, but with reference to future ones; and with regard
ereatest consideration, and guided by what I believe to to those results as to taxation which we wish and are a!-
be the beet information, to put at 18,100,000/a the Ex- most pledged to accomplish, we mast consider the policy
cise being subject to all those beneficial ii.fleences which of maintaining this system of artificial sinking funds- In
act upon the Customs, and which, like the Customs, hat princip'e I think it highly fallacious and erroneous, and
since the great remission of taxation and the reduction in its opplication there has been a greater mistake, be-
ef the price of money and all other commodities, exhi- cause, independently of the circumstance that you are
bited the same elastic and buoyant character. The next maintaining two sinking funds at the present moment on
article is Stamps, which were estimated last year at contrary principles, independently of the consideration
7,450,0001., and realised 7,416,0001. The stamps are a that the old sinking fund is in my mind built upon assure
branch of our revenue which is acted upon by all the cir- foundation and upon sound principles, admitting for a
cumstaoces which also influence those depanments de- moment thae the war sinking fund is right in prin-
pending upon the consumption of the country. The state ciple, still I think it wrong in its application, because it
of the mercantile world acts very quickly upon the rave- never ought to have been brought into operation until
nue arising from stamps. The stamps suffered very much yen had paid off your Exchequer bonds. (Hear.) This
during the commercial crisis and the period immediately tripe action upon your revenue to pay off debt can only
subsequent to it, and they have shown the same alas- end either in increased taxation or in loane, which for
ticity as the Customs and the Excise. It is also to be such an obj-rct would be absurd, or in financial ember-
remembered that the succession duty will have contri- rassment, wTich all of us would desire to avoid. (Hear.)
buted much more to the revenue than ,t its", hitherto, Now, sir, I ask the committee calmly to consider this
and therefore I have taken the stamps at 7,550,000/., question. You have a deficit, of which 3,500,000/. are
which is exactly the amount fixed by my predecessor in occasioned by engagements to pay off debt. You have
his statement of last year, when he ventured to make a no surplus ; you have no means of meeting these debts
prospective estimate of the year in which we now are. in the present year. Hew, then, will you meet them !
The next item is Land and Assessed Taxes. The esti- Will you raise a loan ! Will you raise a loan to fulfil
mated revenue from this source was 3,150,0001.,—the eegaeements to pay debt—part of which consists of au
actual produce is 3,152,000/. ; and, considering the artificial sinking fund ? (Hear.) Could there be more
great number of new houses which have been built I blundering means of setting your house in order and
have put it at 3,200,000/. We now come to the Pro- squaring your accounts than negotiating a loan to meet
peaty and Income Tax, which fells this year to 51. in engagements of this kind ! Is it not the last resource of
the pound. The first half of the year it is at 7d., and an individual in distress to raise money in order to pay
the second half at 51., and the pi-Mime if the tax I have debts, and to get deeper in debt in consequence ! (Hear.)
therefore put at 6,100,0001., which is the rate at I cannot suppose that any one in this house would seri-
which it has always been put. The next item is the ously sanction the idea that weought to raise a loan to ful-
Post-office. The estimate for the Post-, !flee was fil engagements to pay off debts. (Hear) Well then, is
3,000,0001., but it has only paid into the Exchequer the committe prepared to meet these engagements by tax-
-2,1420,000/. That however, was occasioned by similar ation I It is very difficult to say how you could raise a
circumstances to those which I have mentioned as sum of 3,500,0001. by taxes. Itisrather aperplexiug pies-
having an influence Newt the Customs' revenue. The tion. (A laugh ) But suppose you were resolved to do it,
,
Poet-office bas to advance considerable sums to its de- that would not get you out of the difficulty. If you were
blyd taxes a sum of 3 500,000/• to pay these debts
still have a deficit of 500,0001 You would
partmente, which form a sort of fluctuating balance, and
to raise u
which will not occur in future years. The revenue of you would
the Post-office, therefore, is not to be measured by its have to make provision for the and also to provide some
present produce, 2,920,0001., but lam assured by the surplus. Therefore, if you come to tares, it is a question
highest authority that I may place it at 3,200,0001. The of raising a sum exceeding 4,000,0001, Well, Sir, under
next item, the Crown lands, were estimated at 265,0001., these circumstances, and analysing these claims upon us,
they produced 277,0001. ; place them at 270,0001. The I think the time has arrived, not merely with reference to
last article is the miscellaneous. This was estimated last the convenience of the moment, but in order to put our
year at 1.200 0001. the produce last year was 1,600,0001., finances for future years in a secure position, when we
and I have placed it at 1,300,0001. It would be in my ought to come to some determination respecting this
power to explain all the items of which this head of war sinking fund. I would humbly recommend the com•
revenue is made up. I only refrain from doing so lest I tnittee to terminate that arrangement—(hear, hear)—
should weary the committee, but having gone through either by repealing the act, which is, I think, false in
them all carefully I think I may, without the slightest principle and injurious in practice, or, at least, by sus-
apprehension, place them at that sum. I have shown pending its operation until the other engagements into
that the expenditure and liabilities of the year amount which we have entered, vie , these Exchequer bonds, are
to 67,110.0001., and I have estimated our revenue at , provided for. (Hear, hear.) I feel certain that it will be
63,120,000/. ; there awaits us, therefore, a deficiency to utterly impossible, with public advantage to maintain the
be made up to the amount of 3,990,000/. I have no in- instrument which now exists by law, to which the wisest
formation as to what may have been the expectation of men of all times have expressed an adverse opinion ;
the committee on this point, though I know from many which the labours of ;steamed and distinguished commit-
quarters and by many means what is the expectation of tee of this house, in devising a general sinking fund, have
the country ; but whether the conisaittee thinks this an
really superseded ; and which is not needed to maintain
overwhelming or only a vast deficit—it is, at all events, the credit, while, if preserved, it will impair the finances
a deficit which should make us pause and consider the of the country. Therefore, I shall recommend to the
mode in which to encounter it. But I may perhaps be committee, so far as that 1,500,0001. a-year is concerned,
permitted, before entering on this consideration, to make a course which fir the present certainly shall prevent its
a single observation upon the deficit; and it is one embarrassing the finances of the conn•ry. (Hear, and a
which ought to be consolatory to the country. This laugh.) We have now to deal with 2,500,000/. of deficit
deficit, however vast it may be, has not been occasioned if the committee sanction the course which I have just
by any falling off in our resources. (Hear.) I don't ProPos,d, amid I must say that I view she engagement
know how I could place that more clearly before the which we have entered into by those Exchequer-bends
committee than by assuming for a moment—l won't in a very different light and spirit from that in which I
say that I had the same resources at my command view the war sineing fund. I have been toll that there
that nay predecessor had, for he had extraordinary is the easiest possible way of meeting that deficit, and
resources at his command—but that there had been that I might propose to fund it ; but if I were to
no cessation of any taxes this year which were take that course it would be one which, in my mind,
in force last year. I would suppose for a moment would be quite unjustifiable, unlese, indeed, the country
that there was not that reduction in our revenue which were in an emergency in which all the principles of
has been occasioned by the income tax failing from 7d, finance must give way to political considerations
to 51., and the consequence would be that our revenue (Hear, bear.) But in the times in which we find
would be 1,060,000/. greater in amount. The deficit, ourselves, I think that it would be highly un-
then, would be about 2,000,000/., and if we deduct from dessirable and improper to contemplate such a course,
that the sum made up by the debt which we have to pay, seeing that it would be totally contrary to the condi-
amounting to 3,500,000/., it follows that, if we had no tions into which Pailiarneut and the Government entered
engagements to meet, and if we had no cessation of when they agreed to igaue those terminable securities.
t,xa.tifsn, instead of a d.,ficit we should have a surplus of (11-ar, hear.) It would be to use, I confess, a source of
500,0001. ([fear, hear ) Ther, fore, in dealing with the greatest satisfaction to meet, and to meet to the
this very grave and serious subject, it is a source et con- hour, those engagements ; but there is a great deal to
solation to us that this is a deficit which, notwithataud- be considered before we arrive at that conclusion. With
_
ing the sharp fortunes experienced by the country regard to a loan, I imagine there is but one feeling on
during the year, has not been occasioned by any dimi both sides of the house—namely, that whatever may be
eution in our resources. I propose to consider this de• the deficit, that is the last expedient to which we must
licit under two heals. I will consider first, the amount have recourse. (Hear, hear.) To Exchequer-bonds,
of deficit which has been occasioned by our undertaking however, applies the same difficulty which applies to
to pay off debt, and ite the second place, the amount the war sinking fund. It they are to be met by a new
tax, it must he an excessive tax to produce upwards of
which has been caused by a cessation of taxation. It
appears to me that this will be the simplest and the 2,000,0001.; and when it has produced that amount,
most inteLigible manner of treating the subject. Firma where are you ! Still in debt, But if we cannot meet
then, with regard to that amount of the deficit— them immediately, I think, at all events, that the corn.
3,500,000/ , which is occasioned by our engagement to iuittee will agree that the spirit of the engagements
whould be fulfilled—that they should
pay off debt. be engagements
The first item to which I wish to call the
attention of the committee is the War Sinking Fund, to which we are resslved to meet out of the revenue of the
the amount of 1,500,000/. The committee is aware that country, and that we should guard as much as possible
irrespective of the War Sinking Fund there is a Gene- against their ever becoming a permanent addition to the
cal Sinking Fund Act which is in operation. Thirty public debt. (Hear, hear.) Still, seeing the
fdeficiency
years ago the system of sinking Puna that prevailed in that awaits me even if those engagements are provided
this country was to allot a certain fixed sum, without or, and anxious as I should be at once to provide for
any reference to the state of the revenue, to the pay- them, I feel it my duty, in order to place the finances of
merit of debt. lii the heat of the great war the House the country, not merely for this p ar, but for future
of Commons pas-ed a resolution, that every year years, in a position is hich I think will be advantageous
)uer-
dbeebitev ;and 5,000,000/. ~ witoout fail"—those were the words, Ito the country, to recommend to the committee to pos t.
bonds—("i the
hear," and cries of "oh, oh !" from 0
0
position) ; but to consent to arrangements which, so far
liu
that d
system, be apportioned
the
amount t o
reserved the redemptionbeiog nior of pone one for some period the payment of those Exche
as I can form an opinion, will secure their being paid
,ar i lessle d in
until aaitohue n
yeart, butl 8 t
2i,g e . principle
That
system
beingstem the
utterly sa m e
b,
r pre- -
out ce the revenue of the country, and which will place
down over and over again. It was false in principle
and most injurious in practice. In 18'29 a committee our general finances in such a position that they will
was appointed to consider the whole investigation. form no obstacles to those arrangements which I think
That committee investigated the subject with great it would be for the interest of the country to adopt. I
acumen and depth, and it recommended the adoption of will postpone describing, however, ,to a future portion
the only sound principle on which a sinking fund ought of my remarks—when the time will natural'', arrive
to be based—v'z., the application of the surplus revenue that I should touch upon thin portion of the
of the country to the liquidation of debt, to be ewer- subject more particulaily—the mode in which I
tained and apportioned every quarter. In the course propose that the arrangements should be accomplished.
cf the last year, when loans were incurred, the house Now, Sir, I have considered that part of the deficit
thought fit to ream- to the old system upon vs hich sink- which is occasioned by engagements to pay debts, and
ing funds were established—viz , allotting a fixed sum, which is no doubt mdch the most sonsiderable portion of
without any reference to the state of the revenue, to the it. There is next a part of the deficit to be considered
liquidation of debt ; and while they recurred to the Old which, though not so large in proportion, is of a eha•
isyetem, with strange inconsistency I think, they did not ratter which must be regarded in a severer light than
supersede the new one which in 1829 had been esta- the other, when the deficit is occasioned—no matter
[shelled in its stead, and which was founded ou a totally what may have been the original cause—by an absolute
different principle. That measure did not pass without falling off in the revenue. An absolute falling off n
discussion in this house. Objections were raised to it by the revenue must be met by means which will not only
persons of very great authority. There was a debate ! f supply the deficiency, but will also place the genera'
some length, and there was a division. At the moment c ,edition of the revenue in a sound and satisfactory
it appeared to me that the Government were not much state. (Hoar, hear.) Teat portion of the deficit has
enamoured of Oleic own plan, or confi lent iu the policy been occasioned by the cessation of a tax—and that tax
which they were recommending. The house thought fit, one e f a very memorable character—one to which we
mainly influenced I think by one who upon such sub- cannot bring our minds free from considerations beyond
jects, if not indeed upon all subjects, addresses the house those of a merely fiscal and financial character; and it
with authority—my hon, friend the member for Hun- certainly appears to me that upon the decision of the
tingdoa (Mr. 'l', Baring) to agree to this revival of the committee with respect to that source of deficit the fu-
old principle of the sinking fund. But my hon. friend ture satisfactory management of the finances of the
the member for Huatingdon, when he recommended country will very much depend. (Hear, hear.) The
that course, recommended it for special reasons, Be property and income-tax has long and frequently occu-
said, "We are now, or soon shall be, in a time of per- pied the consideration of this house. I think I may say
feet peace, and it is not until we are at perfect peace that it has never ceased to occupy the thoughts and to
that this sinking fund is to come into operation. There- interest the feelings of the country. It is a tax the ins-
tore, on the whole, I think it wisest to secure the liqui_ portate eof which is net, to be measured simply by its
da'ion s f debt incurred in war during a time of profound financial results. Those who pay it do not consider merely
peace." Whether we aro now in a time of perfect peace the ensue which they y eld to the Exchequer, but the
I can hardly presume to deoide, lest I might introduce mode in which it is assessed, and the manner in which
into this discussion, which should of all discussions be it is levied ; so that from the earliest time that it has
most calm and temperate, elements cf angry controversy. occupied the considera ion of Parliament to the pre-
It is very likely that my noble friend the Secretary of sent, social, and p ditical principles have been involved
State for Foreign Affairs, might, if I applied to him be of in its character and consideration. (Hear, hear.) It
the saute opinion as the noble lord the ineuther for Tiver- is not accessary for the to remind the conamit•ee of
ton, and diplomatically assure me that we are not at the manner in which this tax has habitually and
war with China. lam not a diplomatist ; I have only traditionally been described in Parliament. The
the charge of the finances of the country ; but when I epithets which were applied to it, and in which the
want to reduce the estimates and look to those of the greatest men have been used to characterise it, are in
navy, for instance, I cannot help feeling that a'though the meanly, as they have often been upon the lips, of
we are at peace with China that peace has a most war- hen- gentleman on both sides of this house ; and that it
like influence upon our estimates. (" Hear," arid cheers.) is unjust, unequal, and inquisitorial all of us have felt
Therefore, the ground upon which my hole friend the and most of us have acknowledged. (Hear.) There
member for Huntingdon supported the ee!ablishinent of are, I think, two great classes of reasons why the is•
that slaking feed—viz, that we were entirely at peace, c one- ax ,bould not form a permanent feature of our
or should be so when it came into operation, has not finance. (Cheers.) The first class I may eall domestic;
arisen ; and knowing that en these !subjects my hon. the second psi take rather of considerations of an txter-
friend very much aewc.i with me, taking the plain view nal character. l'he feeling of the community generaly
of these affairs in China, lem convinced that, even with of the inequality, of the injustice, and of the odiola
his view of the ca,e, he newer contemplated that the nature of this tax, has unfortunately been sanctioned
sinking fund should be brought into action at a time end concurred in by all !hose statesmen who have felt
when, whether peace sr war, we are fitting our lima- the necessity of levying it ; and it has been iirpossib,e
mentsand have a great naval f !rc•-i in the Chinese waters, to maintain it ior any considerable time, or to adart t
Bat, Sir, hceiles the !Ailing fund of 1829, the general as a permairent feature of our financial eystern, withott
sinking fund, and ihe war sinking fund, which this year great acerbity of feeling and touch violent controversy
,onies into c‘iiiipiete operation, we have also—to which being ,x,ied as to its character and its incidence. 2f
I shall afterwards ref r —the en,afr t „ ,emen to pay off you wish to establish it you have an endless crowd cf
2,000,0001. of Exchequer bonds. Now, I ask the corn- controversies of the mo.t angry character upon these
inittee calmly to consider in what position we are plac- amerg other points :—Whether there shall be recognisel
ing the finances of the country and its commerce, which a difference between property and income in its assess.
is now at a inaieent of depression, and not able or in- it •nt ; setetio r, if that difference be not acknowledged,
,lined to bear an increwe of taxation, by the means of a differenc o shall be admitted between precarious and
paying off the debt which we have sanctioned. Last Inaenar.ent incomes ; whether there shall be a difference
year you had the general sinking fund, you had the between incomes derive.] from trade and incomes derived
special sicking fund, you hid engagements in the shape from professions; whether the poor man shall be ex-
ef Exchequer borld,, all acting upon your finances. euipt_d, and what a poor man really is ; what are in-
There absolutely was a SUM of the national debt re- coulee and what are wages ; who shall be exempted,
deemed by the operation of the general sinking fund, where) ought the line of exemption to he drawn, and the
which yon will lied in the account upon the table. It convenience of an exemption which shall exclude all but
was not a very large amount, but positively there was a those who are called rich. (Hear, hear.) These are
sum e f the national debt redeemed by the action of the some of the eui jects of controversy which were always
genera'
'sinking fund. Then you had the special sinking raised in this couutry when an attempt was iva,de to
fond coming partially into operation to the ex ant of establish the incouwet x for any lengthened period.
250,0001. ; then you had 2,000,0001. of Exchequer bonds. They have nut of late prevailed. But why, let we ask,
Now, let me slrew what is the practical result of these ale hits that been the case ? It isbecause ,) in 18r3 , after a

great agitation througliont the country upon this subject
had taken place, after a c nntuittee had sat for two years
to investigate it, and atterall sorts of plans and expedients
devised by every manner of man had been considered in
reference to it, an eveinent member of this house brought
forward a grew:, financial scheme in which, ackno v-
ledging the inapessibiley of reconstructing this tax
upon principles of justice, upon principles which could
satisfy the fair demands and expectations of society, he
submitted to the notice of the House a proposition the
effect of which would be to semis its diminution and
final extinction at the end of a certain term of years.
(Hear, hear.) That scheme was brought for ward with
consummate ability, and, having been supported in the
House of Commons by an overwhelming majority,
created the conviction in the public mind that in its
spit it the arrangement would be carried into effect, and
that the financial policy which was in 1853 propounded
with one which both Parliament and the country had
cordially embraced and sanctioned. (Chem.) I do
not wish to overstate the case. To do so would not be
my interest, as it certainly is not my inclination. I
shall not say that a solemn compact was entered into
at the time to which I allude between Parliament and
the country upon this subject, which would be regarded
as independent of all circumstances and events. That
is a proposition which it would be wild and idle to
assume and absurd to attempt to uphold. There were,
however, arrangements cordially entered into, and in
the same spirit understood, and which the country ex-
pected would be religiously fulfilled if the interposition
of extraordinary circumstances did not render their
fulfilment impossible. (Hear, hear.) Well, circum-
stances of that character did take place. A. great
national emergency occurred. And what, let me ask,
in that hour did that people do who had previously
murmured at the injustice of the principle upon which
the income-tax was established ? When the safety of
the country was endangered, when her honour and her
best interests were at .take, what did they do who
before the arrangement of the right hon. gentleman
the member for the University of Oxford was brought
forward—an arrangement which they had cordially
accepted—had complained of the unequal mode in
which this tax was levied upon the various classes
of the community,-..what. I repeat, did they do
when the scheme which that right hon. gentleman
devised was not only arrested in its progress, but
made the source from which the power of England
flowed forth to support the honour and interests of the
eountry ? Did they murmur? (Cheers.) Not for an in-
s'ant. (Hear.) On the contrary, everybody did his
utmost to prove to England and to the world that there
was no burden to which our people would hesitate to
cwstribute at a moment of national emergency ; the
income tax was raised to a very large amount, and during
the period to which I refer, when the country clearly tin-
' derstood that it was absolutely necessary the income tax
should continue to be levied, not a voice was raised
against its imposition. (Cheers.) It was not until peace
had been secured that the nation ealled for a remission
of the war taxation in this particular. When that great
object was happily attained we heard again the expres-
sion of its expectation that the arrangement of 1853
would be carried into effect. (Hear.) There can be no
doubt that the breaking out of the war caused a consider-
able difference in our position as compared with that in
which we stood at the period at which the arrangement
was originally introduced. (Hoar.) The temperate
charge on our debt becaene liable to encumbrances, such
for instance, as those Exchequer bonds, which must be
met, and which constitute impedimeate in the way of
adhering to the arrangement of 1853, which could not
well be foreseen. Th se, however, are circumstances
which a sensible people will not fail to accept as furnish-
ing good grounds for delay in the diminution of extinc-
tiou of the income-tax. (Hear.) They do not, how-
ever, constitute sufficient'y strong reasons why the coun-
try should be prepared to regard the arrangement of
1852 as one which may now be looked upon as a scheme
at once visionary and fantastic. (Cheers.) I cannot
help feeling, then, that, looking to those domestic con-
siderations which undoubtedly prevail—namely, that
the very principle of the tax is one which creates pub-
lic disaffection, and is calculated to irritate the public
mind—it is highly inexpedient that it should form a
permanent feature of our financial system, (Cheers)
I may now be permitted to advert to other grounds
which, although they may note's() generally influ-
ence public opinion as those which I have just men-
tioned, yet are, I think, well deserving of our considera-
tion in dealing with this important questien. They
embrace considerations arising out of the occurrence of
some extraordinary emergency, and are of a political
nature. Is it not of the highest importance, I would
ask, that the Sovereiga of this country should, notwith-
standing the immense revenue which is annually raised
to euppert the vast establishments of this country, be
enabled, with the concurrence of her Parliament, to touch
at any moment, as it were bya spring, a source of revenue
which in an hour of great emergency would yield
20,000,0001. or 25,000,0001. sterling—a sum equal to
those large loans which foreign potentates raise at a ruin-
ous rate of interest, and one of which almost exhausts
the resources of their subjects—without causing a mur-
mur to rise to the lips of a single person in her dominions ?
(Cheers.) Ttiat, I maintain, is a reason drawn from politi-
cal sources why we should concur with the right hon.
gentleman the member for the University of Oxford in
the proposition he has advocated in the language more
unequivocal than any other statesman in this house--
that the income-tax should nut be allowed to constitute
a permanent feature of our financial system. (Hear,
hear.) But, although that may be my opinion, and
although I cannot but think it is the opinion of the
great majority of the House of Commons,—although
there are grounds of the highest political expediency
which seem to me to render it de.irable that the arrange-
ment of 1353 should be carried out iu spirit, if not in the
letter, it is still undoubtedly possible that the country,
anxious as it may be to witness the realisation of its
expectations in that respect, and having the utile ist con-
fidence that Parliament is really and in all sincerity dis-
posed to meet its wishes upon the point, still may not be
unprepared, knowing that a deficiency in the revenue
exists, to submit to the burden in connexion with the
ihcume-tax which it bore last year. ("Hear, hear," and
laughter.) The people of England may say—" A very
great deficit lies before us. It is not, after all, half so
great as we thought it would be some time ago. If
we submit to an income-tax at the same rate as that of
last year we shall get rid of this deficit, and we must
trust to the future." (Laughter.) Now, that is a view of
the case which it Is my duty to place before the house.
We have a deficit in our revenue not occasioned by our
engagements to pay a debt, but by a cessation of taxes,
which deficit must be made good by taxation, and which
would be converted into a surplus if the committee
should think proper to continue the income-tax for ano-
ther year at the same rate as last year. (Hear.) The
committee may take that course, and take it, too, with
the sincere intention of carrying the scheme of the right
hon. gentleman the member for the University of Oxford
into effect. But there are other considerations which
ought to influence our decisions with respect to this
question. The country has behaved extremely well dur-
ing the last five years in !flattens of taxation. (Cheers.)
At no period of English history has so much public spirit
been exhibited upon the part of the community in that
particular, and I think that is as much as one ought to
expect. There is no doubt that this country generally
has this question of the income-tax greatly at heart. It
has for a long time clung to the belief that, notwith-
standing the adverse circumstances which have taken
place, there has existed upon the part ef Parliament a
sincere intention to diminish and eventually to extin-
guish this tax, and I cannot but feel that if I wore to
ask you to take a course which would look like break-
ing your promise with the nation in that respect, and to
seek to get out of our difficulty by again passing a law
which would do away with that remission which took
place last year, I should be calling upon you to adopt a
policy which would be but too well calculated to sour
the public mind. (Hear, hear, and cheers.) The re-
sult of such a policy would be that when a great em,r-
gency again arose, you would not be then in a position
to appeal to the country with the same success, or to
expect to have your appeal met with the same cordial
response which upon a recent occasion awaited the
Minister who heel the direction of the national
manses. (Hear.) I feel therefore bound to announce
it as the deliberate opinion of her Majesty's Government
that the deficit in the revenue which I have brought
tinter your notice ought not to be supplied by proposing
an increase in the income-tax. (Cheers.) But if the
incene-tax is not to be de turbed—if the income-tax for
this year is only to give us the reduced rate of sd.—and
we propose that course—the house must feel that it is
absolutely necessary to support the revenue of the coun-
try by the imposition ef new taxes. (Sensation, and
some urea of Hoer.) I know that I may be told by
some geetlemen that you can obtain the relief you want
by a retention of expenditure. (Hear, hear, from Mr.
Williams and several other hon. members.) Allow me
to say that reduction of expenditure is not a task that
can be undertaken in haste and heat. It requires time
deep, protracted, and minute investigation—and though
it might be very easy t effect certain reduction?, which
tnight be very popular in the house fer the moment, yet
unless they are well considered and founded on mature
investigation and a. nple knowledge, they woul I only
lead to a swift and fatal reaction to expenditure. (Hear.)
Now, we have made some reductions in expenditure.
We have made reductions which could be made with
safety, and in amount not contemptible. Allow me to
say that in meeting the difficult financial position we
have had to encometer a reduction in expenditure of
800,000/ , which we have male this year, is an item not
to be despised. (Hear, hear.) But let rue impress on
the committee that which I have presumed to say on
previous occasions—reduction depends on pol cy. It is
quite a will idea to suppoee that a body of men, though
they may be Ministers, can meet in a room and suddenly
alter the eetable,hmente of the ceuntty. The establish •
mews of the couwey are adapted to the policy which the
country pursues, and if you pursue a policy, and sanc-
tion a policy, which lead to invasion, to costly alne-
merits, and consequently to expenditure, yeti cannot ex-
pect, because there is a change of elinieters, that you
can deal with that expenditure, unless you deal with
that policy. (Hear, hear.) It-ally sound reduction is
the effect of fine and t'uougleful management, and is
not in a few hasty weeks to be concocted in order to
obtain popular applause. (Hear, hear.) I say, there-
fore, that it was utterly impossible for us to deal with
the txpenditure of the country during the period in
which we have had the respousible po-ition of Ministers.
We have succeeded to arrangements, which we must
manage as best we can; and, therefore, now that there
isle deficit in the revenue, you must not, unmindful of
the not inconsiderable reduction safely and honourably
effected by us, say that we ought to have made le hue-
tione, (11.ar, hear.) When we have cpp'.rtuniiy and
time we can submit the establishments of this country to
such severe revision as they may require, and with fa-
vours., le circutestancee, effect considerable retrence-
nieets iu these establishments. (Hear, hear.) But it
would be worse than mockery to pretend that we are
able to do so all of a moment. (Hear, hear.) In the
ungracious office of selecting a new tax, I am at lea 3t

somewhat upnetd by the consolatory conviction that
every person who may be called on t pey it will either
directly or indirec,ly feel the benefit of the considerable
remission of taxation which occurs this year by the fall
in the ra,,e of the income-tax, (A slight laugh ) Wh,-n
rental-01,r whet the cou,,try expbcte:!, I .cope the
I committee will not forget, in the za:.sider:A-ion
they may gtve to my proposition, that NO with the
with the tact that by the operation of the law the com-
munity are already entitled to, and soon will enjoy, a
considerable diminution of that tax so peculiarly odious
to the people, and that benefit the country will not
measure simply by the amount of the remission, but will
also accept it as an earnest that the policy of 1853 will
be carried out. (Hear, hear.) The mode in which
I would attempt to supply the deficiency is by asking the
house to agree to a proposition which appears to mo as
reasonable and wise. I would ask them to agr -e to equalise
the duty on spirits. (Hear, and laughter.) The committee
will recollect that we have been legislating on this sub-
ject now for several years. We have, consequently, great
experience to guide us as to the course we should adopt
and the results we may obtain. I think it was in 1853
that the duties on English, Scotch, and Irish spirits
were raised. They were raised considerably, with great
benefit to the Exchequer, with increased consumption,
and without the slightest appearance of illicit distillation.
They were, I believe, in the following years increased
with the same result. Li 1855 the right hon. gentleman
the member for Radnor equalised the duties on English
and Scotch spirits. Well, that was a step taken with
some apprehension, but what was the consequence ?
Great advantage to the revenue, increased consumotion,
no appearance of illicit distillation ; and, stranger than
all, the greatest benefit was experienced by the Scotch,
whose duties were raised. (Laughter.) That may appear
a paradox ; but it is a dry fact, and is accounted for in a
moment, because, by the raising of the duty, they were
freed from a most embarrassing and ruinous restriction,
and tied the full enjaytne.t of the markets of England.
(He r We have much experience, I say again, to guide
us. Since 1855 the duties on spirits have been raised,
having been equalised between England and Soetland,
while a differential duty still remaius in favour of Ire-
land. The duties have again been raised, and the results
have been equally satisfactory. I have taken some pains
to obtain the best information on the subject, and from
what I hear there is not the slightest appearance of
illicit distillation. Look at the position of Ireland. At
this moment the only differential duty that remains be-
tween Ireland and Great Britain is the differential duty
on spirits. lam sure that my Irish friends, who are
always demanding justice for Ireland—(laughter)—and
who define that justice to consist in an identity of insti-
tutions, of rights, and of dntiee—(renewed laughter)—
cannot on reflection consider the position in which they
are placed by this differential duty on spirits with any
other but feelings of indignant humiliation. (Great
laughter.) I remember once, whta I was at Bristol,
a ship came in from Ireland, and, to my great
sarprise, I saw it boarded instantly by Custom-house
officers, and the crew treated just the same as a parcel of
foreigners. The vessel was searched to see if there were
any Irish spirits in the hold, which, if it had come in
undetected, would have paid a duty of 6s. 2d. instead of
Bs. Was that a position for " high-spit ited" IriAimen to
be placed in ? (Laughter.) How much bettsr will it be
for the Irish to have the command of the English market
—(hear)—and not only of the English but of the British
market. How much better for them to enter into active
competition with English and with Scotch spirits, and,
instead of confining themselves to the supply of a mere
provincial demand, to make the most of those admirable
inventions which I am told the French now prefer even
to their own brandy. (Hear, and a laugh.) How much
better for them to pour their spirits into this country,
and through this country into the continent, and thus
give a great stimulus to the trade. (Hear.) Sir, I cannot
help feeling that this is a tax of which the committee ge-
nerally will approve ; and I trust that I shall experience
no opposition on the part of my Irish friends, and that
not a single murmur will be called forth by my proposal.
(A. laugh.) If, however, there is a murmur among any
of them I would ask them in the most cordial spirit—
(laughter)—to consider, first, the position of the Chan-
cellor of the Exchequer—(hear and a laugh)—and, next,
to hear in mind with what pride and satisfaction they
will return to their native country when they are able to
tell their constituents that that income tax with which
they were visited--not by me I may observe (they will
remember that) but which somehow or other, by means
I never could penetrate, was unexpectedly fastened upon
their necks—has been shaken to its centee ; that that
real badge of their yoke has been nearly got rid of ; that
they have given a fatal blow to it. (Laughtsr.) In the
recollection of these cheerful circumstances they will, I
hope, find ample compensation for any annoyance which
they might otberwi, e experience. (Hear.) The commit-
tee will therefore, I trust, sanction my proposition to
equalise the spirit duties; and that will 'give to the Ex-
chequer the sum of at least 500,0001 ' which is the
amount of he deficit. (Hear.) I am much obliged to the
committee for bearing with ins while I have submitted
to them this somewhat lengthened statement—(cheers)
—but I am sure they will remember that my position is
not one of ordinary difficulty, because I have been
obliged by process of analysis to operate upon a large
deficit, and, of course, to touch upon many circum-
stances. The committee will now consider that if the
course which I humbly recommend be adopted the de-
ficit has disappeared. We have put an end to the war
sinking fund, or postponed its operation to the happy
day when the Exchequer-bonds shall be paid out of our
revenue ; we have agreed to an arrangement with re-
ferenca to our Exchequer-bonds, and prevented them
from forming any obstacle in the way of placing our
financial system in order ; and, lastly, by the proposal
to equalise the duties on spirits, we have entirely got
rid of the defict. But I deem it advisable, besides, that
we should add something to the revenue in the shape of
surplus, (Hear.) I shall not press much upon upon
the resources of the country or the patience of the
house in this respect, because the state of our balance
is very satisfactory, and because a very large and un-
usual amount will be added to them in the course of
this year. Nay, if I had chosen to avail myself of it.
a sum of 400,0001. might fairly be brought into the re-
venue of the year. I -have thought it best, however,
not to bolster up the finances, and I have felt that on
the whole the house would rather see the case under
than over stated. But the East India Company, who
owed to the State 1,500,0001., have already paid
1,100,0001. of that sum towards the reduction of the
war expenditure of this year. This amount was lent
out a revenue, and it was agreed that it should be paid
in revenue. There is yet 400,0001., therefore, which,
strictly speaking, might fairly be taken credit for in the
Budget ; but I thought it best on the whole to make
an unvarnished statement to the house. Nevertheless,
that 400.000/. will at all events be paid into the Exchequer
Teen there is a balance upon repayments over advances
this year cf probably not less than 600,090/. There are
moneys to be paid both on account of the interest and
the sinking fund of ,the Sardinian loan. There
are, too, other items, so that a very large sum will be
paid into our balances, which, as the committee will
have observed from the balance sheet, were themselves
at the end of the year in a satisfactory position. This,
therefore, being the state of the balances of the Ex-
chequer ; remembering (which is really the fact) that in
the estimate of revenue which I have placed before the
committee I have most scrupulously refrained from in-
dulging in any but the most moderate Expectat one ;
feeling, indeed, that if I bad adopted the sanguine views
which many persons in authority would have sanctiunedf
I might have ventured on a more cheerful statement ;
looking, moreover, at the great efforts which the coun-
try has made, I should not have thought it necessary
under all these circumstances to trouble the committee
much on this subject of a surplus. But such a surplus
I believe ought to be provided, even though it be a small
one ; and, confident in the resources of the revenue, I
think a small one should under the circumstances suffice.
Now, so far as I can form an opinion on the subject
from conversation with men of business, there is no mode
of taxation more popular than the application of stamps
to Various articles of commerce. (Hear, hear.) No one
feels the burden ; it is a mode of taxation which on the
whole occasions less annoyance than any other, and I
think in fact it is rather popular. (Laughter.) The
penny p )stage system first brought taxation by means
of stamps into faishi n. People like to see vast results
accomplished by slight means. I therefore propose that
whenever we draw a check we should place a penny
stamp upon it. (Cheers.) I am assured by one who,
upon such a subject mu t be considered the sighest
authority, and who has very c ,mpletely mastered this
question, that I may count on a sum of not less than
300,0001. from this source. (Hear ) Of course, there
may be obj-ctione to the tax, but every man who draws
a .t check must remember that he has now to pay
an income-tax of only O. instead of 7d., and
obtaining as he does a remission of the income-tax,
a id seeing the foundation of its future extinction laid,
he must feel that under the circumstances some sacrifice
roust be made. (Cheers.) I hope, therefore, the
committee will agree with me that this is a mode of
taxation, if it can be called such, which they will not
refuse to sanction. (Hear, hear.) Considering the
vr.ition of the Exchequer at this moment, I am not
prepared to ask the committee to impose any other
tsxes. I would a,k them, however, to permit me fur a
moment to remind them of what may be the position of

this country in the year following the present, for, al-
though we hear many taunts about " prospective finance,"
I think that any person in the office which I now have
the honour to occupy wou!d be greatly wanting in duty
if he brought forward any proposition without having
xercised some foresight in regard to it, and weighed in
some manner its influence upon our future prospects.
Now let us see, if the arrangements which I have pro-
p,tsed are agreed to by the committee, what will be our
prospects in the year following this. You will have
again a loss o❑ the income-tax, as compared with your
present revenue, of 1,000,0001. ; and assuming that all
things reutaio the same, and that your revenue and ex,
peaditure are exactly what they are now, you will have
a lots in 1809-GO of 1,000,0001. in your income-tax,
while 2 000,000/. of Exchequer bonds will become due.
You will have this 3,000,0001. reduced by the amount
of surplus which I may obtain this year ; but say that
you have to meet 3,000,0001. of deficit. Now, I put it
to the committed—is that a prospect which ought to
alarm us ? Can we entertain a doubt but that with fair
commercial prosperity, with a fair revival of trade in this
country, the resources of our revenue, aided by welt-
considered and wise retrenchments, will be hufficitnt
under these circumstances to meet our engagetnents, to
pay these bonds, and to encounter that diminution •f
income-tax. (Hear, hear.) 'Well, if you do that,—and
I feel confident that you will be able should no die-
at:ter against which human provision is unavailing
overtake the country,—in what position shall we
.tend in that famous 1800 which has been the pivot
of modern finance? There are certainly 2,000,000/, of
bonds due in that year ; but you will have annuities to
the amount of something like 2,150,0001. per annum ex-
piring at a time when I hope and believe you will pos-
sess a large, a bounding surplus of revenue ; and you
will be able, if not to the letter, at least in spirit, to at •