The Sun.
London, England, 1858-05-04 00:00:00

TRANSFER OF LAND BILL.

The report of amendments to this bill was received.
EXCHEQUER BILLS (20,911,500/) BILL.
This bill was read a third time and paseed.
Their lordships adjourned at five minutes to seven.

and which a short time ago was mentioned on a public
occasion, to the effect that the late Government and my-
self in particular as having charge of the financial de-
partment, had left the national finances in a state of
disorder and uncertainty, and bad bequeathed an in-
heritance of financial difficulty to our successors. lam
bound to say that the right hon. gentleman opposite
when making his financial statement gave no sanction to
that report, and the numerical statement which he sub-
mitted to the house with respect to last year's finance
vas quite accurate—so that as regards him I have no
complaint to make. But, sir, lam deisirous to remove
from the mind of any gentleman who may have received
such impressions, any erroneous ideas that nay exist on
the subject, and therefore I shall, with the permission of
the house, call attention very briefly to what was the
state of the national finances at the period when we
were quitting office. It may be said that the aim of
a chancellor of the exehequer, like that of the English
lord mayor or the Roman Consul, is generally to get
over difficulties by temporary expedients, and leave
the permanent solution of them to their successors ;
but it was impossible for me to know last year
that the House of Commons would, by a vote
of censure on the late Government, cause my
retirement from office a few weeks previous to
the time for making my annual financial statement.
The state of things that existed I hoped to deal with
myself, and therefore I cannot see what foundation there
was for attributing to me the design of handing over an
inheritance of difficulties to my successor. (Hear.) But
I say further that I did not leave any difficulty that did
not arise out of the state of the law, and that the
finances for the year were in as satisfactory a state as
could have been expected from the statement I had sub-
mitted. (Hear.) I estimated the expenditure for last
year at €5,474,0001., and the actual expenditure was
70,378,0001., showing an excess of 4,904,0001. The
excess of revenue over my estimate was 1,416,0001.
and during the year the amount of debt paid off was
3,741,0001. Therefore, with the excess over the esti-
mate, and withlthe excess of expenditure over the esti-
mate, and without the large sum paid for the remission
cf debt, there was only an excess in the expendi-
ture of the year of 2,000,0001., which two milieus
were taken by me out of the balances in the exchequer.
But I think I shall be able to satisfy the house that the
state of the balances in the exchequer was satisfactory,
and that the sums found there by the present government
were ample for the purposes of the ensuing year. In April,
1855, the balance in the exchequer was 3,949,0001.
but then in that sum was included a million of ways and
means bills in anticipation of the revenue of the succeed-
ing quarter, which were defrayed out of that quarter, so
that the actual balance in 1855 was 2,949.0001. In 1856
the balaace was 5,600,0001. ; in 1857, 8,668,0001., and
on the Ist April last, 6,667,0001., which the house must
see was a suffic ent sum for the year. (Hear, hear.) Tee
information I received on leaving office was that no de.
ficiency bills bearing interest would be required for the
April dividend, and I now learn that none have been
found necessary. Well, sir, if the exeeuditure of the
past year, including the payment of debts, was defrayed
by the revenue, and if a sufficient sum was left in bal-
ances at the end of the financial year, the house must, I
think, come to the conclusion that, so far as the finances
were concerned, the late Government left nothing in an
unsatisfactory condition. (Hear, hear.) I now pass on
to the plan of the present Government, and with regard
to that plan I would say that it appears to me, that so
far from the right hon, gentleman opposite being obnoxi-
ous to the charge brought against him on a former oc-
casion of being too adventurous, of departing too far
from the received and established maxims, he has on the
present occasion shown himself almost too prudent, teo
cautious, I might almost say timorous.
Serpit huini tutus nimium timidusquo procelke.
He has made an arrangement with the view of avoiding
a present difficulty, which I fear may with good reason
be anticipated to create greater difficulty hereafter. In
the first p'ace, he has stated to us that he is able to pre-
sent a picture of reduced expenditure for the present
year. I will admit that his budget exhibits in one serve
a diminished expenditure, inasmuch as he has been able
—and I rejoice at it—to somewhat diminish the army
and navy estimates of his predecessor. I give the
government a'l possible credit for that reduction, and no
one rejoices more at the reduction than I do myself.
But when the government talks of a reduced expenditure
as compared with that of the preceding year, let us see
how that stand. The consolidated fund charge for last
year was 1,777,0001. In consequence of the probable
expense of compensating the proctors—an expense, let
me be allowed to say, which was pressed on the late
government by the House of Commons, which was an
expense which solely emanated from the feeling of the
house—in consequence of that item the charge this yesr
will be 1,900,0001. Tne estimates last year, except the
supplementary vote for the militia, were : Army,
11,893,0001; this year they are 11,750,0001. Navy
last year 9,172,000/. ; this year 9,860,000/. Civil
estimates last year, 7,895,0001. ; and this year
the right honourable gentleman sots them down at
7,000,0001. So that the total estimates last year were
30,230,0001. ; and this year they are 30,610,0001. ;
showing an increase in the present year cf 280,000/.
That increase must be reduced if you add the supple-
mentary vote for the militia—whether it will be required
or not this year. I cannot tell—hut leaving out that,
there is an increase this year of 230,0001. This cutups-
risen, which is taken from the right hon. gentleman's
own figures, shows that he is not jutified in saying that
there wi:l be any reduction in the expenditure of the
present year, and we do not know yet whether a time
may not arrive f increasing the present estimates.
While such are the prospects wide respect to expendi-
ture, let us see what we are to expect in the way of taxa-
tion. The right hon. gentleman's plan is shortly this :
he takes off t millions of taxation, or rather allows it
to expire, and substitutes for it a somewhat precarious
800,0001. I call it precarious, because the 500,0001.
which he expects from Irish spiri,s is doubtful, and I
doubt very much whether the stamp on cheques will
make up the 800 0001. (Hear, lisar.) It is true that
we shall lose only one of these two millions during the
present year; but nerertheless the ultimate loss will be two,
for which be only provides as a suiestitute a precarious
800,0001. Then he prispo es to meet the Exchequer Bonds,
which were to be paid off this year, by creating a new loan,
and to postpone the war sinking fund of one and a half
F ar the Exchequer bonds be proposes to issue
two millions at 3l per cent., payable at any time not
exceeding six years ; so that the right bon. gentleman
will have the power of spreading his payments over that
period. He has not stated the mode in which he pro-
poses to proceed with this new loan, but I understand
he has made an arrangement with the Bink of England
for the gross sum. Whether that is the most convenient
course, or whether the present holders were not entitled
to some consideration and an offer to renew their bonds
on certain terms, is a point which, no doubt, the right
hon. gentleman has considered, and until we hear his
reasons for the course he has t tken, I shall not press him
further on that point. But it is to be b erne in mind that
the problem which the right hon. gentleman professes
to have solved will recur next year. There will be two
millions falling due then, and one million the year fol-
lowing, and therefore, unless be meats to enter into a
steady course of borrowing for these bonds, I do not see
how his present budget can be defended, especially as
the lass
willesso hfte twohein thecom next. T
etax, whichhe n
is only
point nlyone million this
year,
divi-
sion of the sinking fund. I proposed that division deli-
berately and from a conviction the,: it was the only safe
mode of arrangement. The Exchequer bonds stood on
a totally different footing. They were in the nature of
a permanent debt with a certain period appointed for
their payment, and when the money is due the parties
have to be paid unless they wish to renew. The nature
of a sinking fund is wholly different : that is a compel-
wary arrangement, made beforehand, by which the public
faith shall be kept by the redemption of a certain
amount of the debt annually. Toe right hon. gentle-
man, however, can perhaps convince himself that by
some self-acting process—by some system of compound
interest, the enormous debt incurred during the French
war may be liquidated. I dare say hon. gentle-
men have read the plan proposed by Mr. Pitt for re-
ducing the national debt by a sinking fund, and I need
not remind the house how illusory that plan proved to
be—how every trace of it was swept away from our legis-
lation, and how all that remains of it is an obligation
that when any surplus exists, it shall be applied towards
the reduction of the national debt. (Hear.) If the finan-
cial position of the nation resembled that cf a private in-
dividual—that was, if the expenditure bad to be regulated
by the income—a sinking fund, such as is provided by
the Act of Parliament, would be a reasonable means cf
extinguishing a debt. But that is not the case, Toe
system that must necess3rly be pur-ued by the nation
in dealing with its finances i fir t, to take the exoeudi-
tura, and then adapt the income to it. The consequence
is that there is not likely at any time to be any consider.
able surplus applicable to that purpose, and unless the
house is prepared to make it obligatory upon the G -
verensent—unless the ways and means bra specially prc-
vided year by year to farm the sinking fund, we must
make up our minds quietly to submit to the perpetuity o
our present debt, and satisfy our consciences with aunt

ally paying the interest without reducing the prineipa'.
(Hear.) I need not remind the light hon. gentleman
that in a year when two millions of Ex3sequer b4nds fall
due, there would be very great d,fficulty in discharging
a million and a-half of your sinking fund. (Hear.) But
when the Act of Parliament was pa*sed that difficulty

was not foreseen, and I think under the circumstances

the right hon. gentleman's proposal for postponing the
sinking fund is,reasonable. But what I object to in the
present scheme is that he makes no attempt to pay off
the two millions of Exchequer bonds, either wholly or in
part, and that he postpones the war sinking fund just
as if no obligation existed to pay it. It has been often
said that the national debt of this country is of so gigs: -
tic a nature that it is in vain to make any attempt to
pay it off, and that as the aggregate sum so far tram.-
cende the powers of any generation to deal with it, we
must be ceeteet to submit to what has become an inevit-
able destiny. ([Tear) Let it then be borne in mind,
that the capital of the debt is but a nominal liability,
which the Government of the country will never be
called upon to discharge—it.stands in the shape of a
certain amount payable as perpetual annu:ties. But
I would call attention to the fact, that if money is bor
rowed at 5 per cent., a sum equal to the whole capita:
is paid off in the shape of interest in the course of 20
years. Where it borrowed at a lower rate—(is is the
case of the national debt of ibis country)— of course it
takes a longer time to pay off in interest a sum equdl to
the total capital. Sti:l within a limited period this must
be the resu't, and supposing a debt stands at three and
one-third per cent., which is the average rate for the na-
tional debt, you pay every thirty years in interest anum
equal to the whole amount. I think, however large the
sum may be, it is not so great tt at some efforts might be
made. (Hear, hear.) I now come to the view token by •
the right hon. gentleman as to the national elongation t
reduce and finally to extinguish the income-tax. I. con•
fess I have great difficulty in understanding the theory,
fop which the right bon.
gentleman contends as to na-
tional engagements of this nature, If I understand hira