The Sun.
London, England, 1866-05-04 00:00:00

On) gross total of the increase, I find that the increased
growth in the amount of property insured traceable
to the reduction of the duty is £30,000,000, or about 5
per cent. of the whole amount. I have no reason to sup-
pose that there will be any
.material variation when we
come to have the receipt for the whole of the first year ;
but it is possible that the figures for the following year may
be higher. Yet, I still hold to the belief—although, of
course, without presuming to dogmatise upon the subject—
that if the House intend again to deal with this duty at any
future period—l think it would be premature to say any-
thing about it on the present occasion, when the change has
not been a year in operation—but if the fire insurance duty
is. to be dealt with hereafter with a view to a further remis-
sion, I frankly own that I believe it would be necessary to
abandon the idea of its being hereafter a considerable source
of revenue. In fact, I incline to the view indicated by the
terms of the amendment suggested by the hon. member for
Buckingham (Mr. Hubbard)—namely, that it is not wise
and politic to raise any large revenue from that source—
that thiS duty ought to be regarded as a tax upon property,
that its remission is a remission-upon property, and that if
it is dealt with again it ought to be by property that an
equivalent for it should be found, should such equivalent
be needed. (Hear.) Sir, there are three other commodities
that I would mention with reference to duties. The re-
venue from malt has been a very considerable revenue.
The receipt bad risen in the year 1864-5 to a point quite
unprecedented ; and in estimating it for the year 1865-6 ,
we were so far cautious that we anticipated a small dimi-
nution. I believe it is a characteristic of this head of re-
venue that it runs favourably for two years together. It
certainly has been so in the present instance; for we esti-
mated the revenue from malt at £5,850,000, and it has pro-
duced no less a sum than £6,410,000; showing an excess
of £560,000. I come next to the revenue from spirits ;
and the state of that revenue likewise, if we are to con-
sider an increase of it as satisfactory, is satisfactory.
The receipt upon British spirits, which was estimated
at £10,300,000, has produced .£10,450,000 ; the receipts upon
colonial and foreign spirits, which was estimated at
£3,295,000, has produced £3,505,000. So that our receipt
Upon spirits has been no less than £13,955,000, or, in round
numbers, £14,000,000, which, I think, is possibly. the largest
sum ever raised in any country or in any period of history '
by a direct tax on one single commodity.
(Hear, hear.)
That, Sir, is the whole of the review which it is necessary
for me now to take of the transactions and experience of
the last year, except that I ought to state, in conformity
with the usual practice, that the Exchequer balance has
been reduced in the course of the year, in consequence of
the application of a somewhat unusual amount to the
liquidation of debt. I will now give the Committee the esti-
mate we formed of the revenue and expenditure for the
current year of 1866-7. The charges on the funded and un-
funded debt under the previous law as they now exist, and
with a small allowance for the additional charge brought
upon it through the conversion of perpetual to terminable
annuities, sanctioned by the house, is £26,140,000; Con-
solidated Fund charges are £1,880,000 ; the army,.
£14,095, 000 ; the navy, £10,400,000 ; revenue collection,
£5,003,000; the packet service, £821,000 ; and the miscel-
laneous estimates, £7,886,000, giving a total of £66,225,000.
The total of the Estimates of last year was £66,147,000, so
that there is an actual increase upon the Estimates of the
present year compared with those of last year, though it
does not amount to a large sum—viz., £78,000. (Hear,
hear.) I ought to explain to the Committee how it is
that that increase has arisen ; because, though cer-
tainly it would have been more satisfactory, had it
been practicable, to present both the nominal and the
real decrease in the expenditure, yet I do not think
it can be said upon a fair examination of the figures
that they indicate any real increase in the permanent
expenditure ; I should rather say the reverse. (Hear,
hear.) The Army Estimates for the year show a decrease
of £253,000, but the Indian and other repayments also show
a decrease of £246,000. The committee is aware that, as
the whole of our Indian service, at least the whole of a
large portion of that service, is borne by us in the main-
tenance of establishments, all arrangements are made in
reference to it; but whereas the Indian Government is at
liberty, under an arrangement very favourable to it in that
respect, to throw back upon us any regiments it pleases
without a moment's notice, the effect of that undoubtedly
is that a reduction in the Indian establishment, which en-
tails an instant reduction in the Indian repayments, cannot
be followed as rapidly by a reduction in the amounts
charged in the estimates for the British army at home.
Besides, it is important to call the attention of the house to '
the very heavy charges, and I think they are charges sus-
tained by sufficient authority, which we are undergoing
for works for the navy. In 1865-6 they amounted to
£528,000, but for 1866-7 to £893,000. The principal part
of that augmentation, however, is due to the great exten-
sion of dock accommodation which took place on a debate
in this house, and with an express, I might also say an
eager, sanction from a committee of this house appointed to
consider it. The Post-office department has also a large
increase in expenditure. Its works last year were esti-
mated at £70,000, but they are estimated this year at
£349,000. I mention that item with more satisfaction in
the view that I am now taking, because I think we may
regard the Post-office expenditure as partaking of the na-
ture of reproductive expenditure. (Hear, hear.) The
miscellaneous estimates likewise have undergone an in- \
crease of £165,000, rising from £829,000 to £994,000.
That increase is due to the circumstance that for several
years our building votes have been more or less in arrear,
but I do not think that there is anything unwarrantable
or excessive in the proposals that are now made. The
upshot of this is that the total demand for avosks for the
navy, the revenue departments, and miscellaneous esti-
mates has risen from £1,427,000 to £2,236,000, showing
an increase of no less than £809,000. (Hear, hear.) I now
come to the estimate of the revenue for the year. We take
the Customs at £21,400,000; the Excise, £19,750,000;
stamps, £9,450,000 ; and here I may observe that there is
hardly any branch of the revenue the growth of which is
more satisfactory. Tho estimate for assessed taxes and
land taxes is £3,400,000; and for income-tax, £5,700,000.
Here I may observe that the income-tax being 4d. in the
pound, you have £1,400,000 as the estimate of what a
penny in the pound will produce, the additional £lOO,OOO
being accounted for principally by taxes in arrear. The
Post-office stands at £4,450,000, showing an increase of
£200,000 upon the receipts of last year, and overtaking a
large portion of the heavy charge that we are about to in-
cur for Post-office enlargements in London. The miscel-
laneous receipts, including the China indemnity, will stand
at £3,100,000. The miscellaneous receipt is materially
affected by the considerable sum of £500,000 which comes
into it this year through debentures sent from New Zealand
in liquidation of a portion of the debt of the colony to the
mother country, which debentures it will be ourduty to ask
the house to guarantee, not for its own sake—that is to say,
not by way of entering into new engagements towards the
colony. On the other hand, the China indemnity is a branch
of revenue which is sinking, and must be expected to sink
more. I think the estimate of it last year, if I remember
right, was £450,000, but this year it is only .£250,000. The
total estimated income of the year is £67,575,000 and the
estimated charge of the year is £66,225,000, and the pro-
bable surplus of income over the charge is £1,350,000
There is no cause to be disappointed, I think,—when
we consider the circumstances of the country to have been
upon the whole favourable,—in the apparent promise of such
a surplus as that, because it must be borne in mind that,
when I say that the estimated income of the year is
£67,575,000 we have had cut off from that income no less a
sum than £1,417,000, which was disposed of by the legis-
lation of last year, although it only tells upon the figures
for 1866-7. Of that sum £950,000 is on account of the in-
come-tax, £260,000 is owing to the reduction on fire insur-
ance duties, and £207,000 is attributed to the reduction of
duty on tea, coming into operation for the whole 12 months.
if we add these sums together it would appear that but
s for
the legislation of last year we should have had to dispose
of a sum of between £2,700,000 and £2,800,000. (laser
hear.) We now come to the disposal of this money; and
'
here I shall have, under several heads, to trespass for some
time on the attention of the committee. It is aware how
important has become the subject of commercial treaties in
the view of the commercial classes of this country. The
Chambers of Commerce in all our commercial towns have
intimated the greatest anxiety that they should be formed.
(Hear, hear.) Those treaties which have been formed of
late years have been adjusted in such a manner astoin-
volve none of the objections, either in principle or in
Pree -
tics, 'which undoubtedly applied to our earliest attempts at
the formation of commercial treaties. We have no haggling
about certain benefits which might be conferred upon our
own country but which we will not confer unless the State
with which we are dealing will confer certain benefits
.
on its subjects.
these The character in which we appear in
changes. our negotiations} as far as they have ever involved
awn tariff, is simply this—we have become
in more than one instance the Government
of a foreign State to auxiliaries to
enlighten
it more easily
. to overcome
the prejudices and to
own people by exhibiting sa
the ignorance of its
derived from the fulfilment of
them the advantages to be
to them, the fulfilment of promises which we hold
same time most beneficialse promises being at the
_ourselves. (Hear,
hear.) Now I will not weary the cot
ittltiee on the subject
of the French treaty as far as respect:
portion which
has been sufficiently explained on form atooecas.
ions, viz.,
its effect upon England. Butt should like the
committee will not be sorry to hear, the effecteatteht:aset and
treaty
has had upon the export trade with Prance, be
member the dread, the horror with which that treatvalisare-
received by considerable and influential portions -of thase
French nation. If ever, however, there was an emphatic
disappointment in the best sense of unfavourable auguries,
it is that which is now presented by the remarkable re-
sults of the treaty in question. (Hear,hear.) No elaborate
demonstration is necessary toprove that if the export trade
Of France in French commodities has increased, the busi-
ness of the home market cannot possibly have fallen off. I
am in a position to state what are the exports of France in
tissues of all kinds of cotton goods, linen goods, woollen
goods, and yarns of all three descriptions, and the general
history of the matter—taking the year 1860, the year be •
fore the operation of the treaty, as a standard—I will pre-
sent to the committee. In the year 1861, just as it happened
with ourselves, the effect of the panic was in every in-
stance to produce a considerable diminution in the exports.
In 1862 all began to riao again, and I willnOW give you the