The Sun.
London, England, 1867-01-23 00:00:00

I now submit to you a system of taxes which, with-

out having the vexatious form of direct taxes upon
consumption, are rather taxes upon production, and
reach the product at the moment when the producer
derives the benefit from it. Within a fortnight I
shall have the honour to submit to the Chamber
some bills based upon this principle. To sancti on
its utility neither precedent nor example is
wanting. In the United States gutta pe:rcha
manufacturers pay a tax which greatly benefits
the Treasury. We see the same at home in
gold and silver work, and when a similar tax
can be imposed upon all objects, the constuup-
tion of which proceeds gradually with the cogni-
sance of all, we shall then obtain a revenue of fifteen
to twenty millions. (Movement.) And adhering
to the same principle of production, and recollect-
ing that in the present necessity of the Treasury it
is necessary to impose a burden, only seeking to
place it where it may be lightest and least sensible,
I now declare that I cannot give up the most
general production, which is consumed by all and
which none can do without—that of grain. I do
not propose to tax grist, but a tax upon mills.
Whatever may be said against such an impost as
being odious and unpopular, I must still believe
that, applied in equal measure, it cannot be of a
vexatious character, and still less be insupportable.
(Movement.) The revenue that I propose to draw

from this source being limited to 30 millions, you
will agree that it is not intolerable, divided among
25 millions of Italians, none of whom can avoid
paying it. (Movement on the left.) It is the duty
of all—of Government and Parliament—to ask

fresh sacrifices from the country. (No, no, on the
left.) If, gentlemen, this state of things had been
sooner comprehended, and if three years ago we
had had the courage to make this sacrifice, we could
have undertaken the war against Austria without
having recourse to the extreme financial measures
which were incumbent upon us." The Minister
proceeded to demonstrate the augmentation of the
deficit since 1863 to the present time, and expressed
his conviction that if the measures he now proposes
could then have been adopted, very many grievous
necessities would have been avoided. He pointed
out that the budget of 1863 showed a revenue of
519 millions, that of 1864 522 millions, while for
1867 the revenue is estimated at 756 millions, so
that in three years there had been an augmentation
of 234 millions. "If in 1863 (continued the
Minister) the taxation had been voted which we then
ought to have borne, we should not have had to
augment the annual expenditure by fresh loans,
and should now be much nearer an equilibrium.
But in view of the condition in which we are

now placed I consider that the Government, the
Parliament, and the country have a great duty, an
immense responsibility, that they are inevitably
bound to turn to the past in order to be able to
judge of the future. I have shown the consequences
of not having adopted, three years ago, energetic,
radical, and decisive measures ; and if now these
measures are not taken, I leave you to imagine what
results may be expected. You must not deceive
yourselves ; it is dine to quit all ambiguity. In
three years the evil would not be so serious as at
the present moment, but it would have grown,
quadrupled, and attained such proportions that per-
haps remedy would be impossible ; or coming too
late would be without effect. May God avert it !"
Signor Scialoja here rested for a few minutes.
Upon resuming his statement he said--,, .1 have
hitherto spoken only of 85 millions of deficit, so that
100 millions remains to be provided for. If Italy
shall have a Government strongly supported by
Parliament, if she shall acquire greater internal
security, and shall show herself to the world not as
eager for adventure, but as desirous of independ-
ence, the national prosperity cannot but develope
itself in such a manner as not only to support the
present taxation, but, under any special circum-
stances, to sustain any extraordinary impost. The
great public works that have hitherto cost us heavy
sacrifices will produce ample fruit, and taxation,
which follows the development of the public wealth,
will yield a larger product. In France the aug-
mentation of similar imposts has exceeded 20 per
cent. per annum, and in some countries has even
reached 40 per cent. I know that we are not
in the position of France, neither do I propose
to augment the taxes in that proportion. I repeat
that Italy, after having passed through a difficul
period of crisis, will develop her national wealth
in a manner that will place her upon a level
with the most prosperous nations. The adminis-
trative reforms, together with the law upon the
accountability of the State, will contribute to this
improvement, and meanwhile, by augmenting by
10 per cent. only those taxes of which I have
already spoken, we shall in ten years reduce the
deficit by 100 millions. We must therefore adopt
extraordinary measures to provide for 450 or 500
millions in order to enable us to reduce the deficit
gradually ; but if we apply to credit we shall im-
pose fresh burdens upon the budget and remain
within the old vicious circle. We must then have
recourse to extraordinary means, and we have a
source of wealth which still remains for us to em-
ploy. You already anticipate my idea and divine
that I am about to speak of the ecclesiastical pro-
perty. This matttr is to be considered from two
points of view, that of policy and that of finance.
You will permit me to touch briefly upon both these
considerations. The conflict between Csar and the
Pope, between Church and State, is of ancient date,
but the origin of that conflict is to be found in causes
which modern civilisation has removed. Liberty
should terminate the contest. The Church should
return under the regime of liberty, and liberty should
not be arrested in its course by the Church. The
idea heretofore entertained of the Church has falsified
the idea of liberty, and therefore has it been said
that the two powers, civil and ecclesiastical, should
follow parallel courses without any controlling force
to keep them in their separate paths, and prevent
any deviation by either. We regard the Church in
a different manner—its regulations, constitution, and
statutes have been admitted or recognised by the
State and consecrated as laws. In this way Church
became State and State Church. At present this
condition of things no longer exists. The statutes
of the Church cannot, and ought not, to be any
longer in Italy the law of the State. The State
will not interfere with the statutes of the Church
any more than it would with the management of
a private company—it regards the church merely
as it regards all other civil associations, never
intervening in their affairs further than may be
necessary to ensure that their statutes do
not violate existing laws, and are executed with-
out prejudice to any right. This declaration, with
its consequences, is enunciated in a bill which the
Government will lay before the chamber to
consecrate a new right, and practically estab
lish the principle which is one of the most
splendid results of modern civilisation. The ques-
tion is how to liquidate the ecclesiastical patrimony,
and to divide it equitably between the Church and
State--which we effect by giving two-thirds to the
Church and one-third to the State. Two methods
of performing this liquidation are stated in the minis-
terial bill, providing either for the case that the
Church may be willing to effect the operation in
concert with us, or that the Government alone may
have to carry it out. The liquidation pre-supposes
that the sanction of all the laws previously voted
establishes the manner by which. the State will be
always guaranteed against any possible eventuality,
and will prcduce exactly the 600 millions, which I
have stated to be necessary to effect the equilibrium
of the budget." The minister proceeded to define
the conditions of the convention executed with the
house of Langrand Dumonceau for the payment to
be made by them on account of the corporations and
the bishops of 600 millions lire in six years, by half-
; yearly instalments of 50 millions. "Iu the events
of the ecclesiastical authorities not consenting to the
treaty, it will nevertheless be executed, always with
due regard to the rights appertaining,to the Church.
The alienation of the ecclesiastical property will be
effected by lots, the purchasers being allowed a cer-
tain delay between the sale and payment of the pur-
chase money, which delay will be fixed by royal de-
cree. Within the period of ten years all these pro-
perties will be converted into public rentes, and the
law of suppression voted by the Ch .mber will thus
be fully carried into effect. Such is the scheme of
the bill which I lay before you, and the benefit ex-