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

figures as compared with leBo ; and I state them in millions
of francs. In cotton goods France exported 69,500,000 f. in
1860, and 93,750,0001. in 1864. In linen goods France ea-
ported 15,500,000 f. in 1860, and 24,500,000 f. in 1864.
woollen goods France exported 229,250,000 f. in 1860, and
356,000,000 f. in 1864. In yarns,France exported 12,500,000 f.
in 1860, and 43,000,000 f. in 1864. The total amount of
these goods exported from France in 1860, immediately
before the treaty, was 327,000,000 f., and after the end of
itencsrela7s,eodo,o,HOOpeOf.ssi(hHlee, amr,
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more remarkable degree. In order to spare the time of the
house I will not give the details ; but these are the exports
with respect to which great alarm prevailed in France.
The exports to England of woollens, linens, cottons, yarns,
metal goods, earthenware, salt, glass, and fish amounted in
value to 58,500,000 f. in 1859, before the treaty ; and in 1864
they rose to 141,000,000 f. (Hear, hear.) Since the treaty
with France we formed, through the energy of the depart-
ments of the Government and the able assistants which
have been employed (1 include, especially, the diplomatic
service, as well as the permanent Civil Service of home),
an advantageous treaty with Turkey, which admits of a
small increase of import duties to a uniform 8 per cent.,
but stipulates for a liberal reduction of the rate of export
duty, and a further reduction of the transit duties. We
also formed a treaty with Belgium in 1862, which insures
to us all the advantages previously given to France, to-
gether with a deduction of pilotage, tonnage, and naviga-
tion dues. The treaty with Italy in 1863 secured to us the
reductions given to France by the favoured nation clause,
and a similar treaty with the Zollverein in 1864 gave to us
the reductions given to France. A treaty of a more notable
description has been concluded with Austria. That was of
all other countries, perhaps, the most rigid in thepreserva-
tion of the protective system. I know not whether Russia
could compete with herin that respect. Certainly, those two
countries might be regarded as the last strongholds of the
pure protective system ; but Austria has entirely abandoned
her great tenacity for that system. While we own that that
abandonment is beneficial to us, we maintain that it is in a
far greater degree beneficial to herself. In effecting this
result, the Chambers of Commerce in the north-east of
tEonegalal;agdhtetr
the people
active part, and Mr. Alhuson did much
sensible how cruPeelloypletheoyf Austriawere imapnedvettoishmtnagke them
them-
selves by a rigid system of protection. The able agents
of the Foreign-office and the Board of Tiede, Mr. Morier
and Mr. Mallet, by the knowledge and skill which they
brought to bear on the discussion of the matter, greatly
contributed to the settlement of the question (hear, hear);
and I am glad to mention a name, which I would more
gladly mention if the bearer of it were now present in the
house—Mr. Somerset Beaumont—who felt, not a personal
but a most keen interest in the prosecution of this subject,
and took a very active and beneficial part in promoting the
proceedings connected with the Austrian treaty. (Hear,
hear.) The right hon. member for Gateshead also laboured
with Mr. Beaumont in the same cause, and I congratulate
him on the result which has been achieved. The upshot
of the Austrian treaty on the Austrian side is that the
French standard has been adopted, and the Customs duty
in Austria, after an early date, is not to exceed 25 per cent.
ad rolorem on any description of British goods. That 25
per cent. in France and elsewhere is still a very serious
obstacle, and I think the time has arrived, after the expe-
rience we have had, when we may begin to ask ourselves
whether or not our powerful neighbour France should not
' take a further onward step. (Hear, hear.) I am persuaded
that matters will not rest here. We have found the benefit
of the reduction of small duties to be quite equivalent to
the reduction of great. Therefore, I speak of the 25 per
cent. with satisfaction only in reference to what has gone
before, and not in reference to what will follow. Here I
have to mention two changes which have to be made in
our tariff, which we were the more readily induced to
make because they greatly assisted the Austrian Govern-
ment in concluding the important national engagement
entered into. We propose to reduce the duty on timber,
and to equalise the duty on wine in bottle to the duty of
wine in wood. The duty on timber is a very low duty,
and that is the best thing that can be stated in its favour.
In any other point of view the duty on timber is as bad a
duty as can be. It is a protective duty on a raw material
of which this country stands in great want, and which
is of vast bulk, and the imposition of the duty, which has
the effect to accumulate the cost, is the very essence and
quintessence of political folly. The consumption of timber
in this country is remarkable. In 1811 the consumption of
timber amounted to 417,000 loads. At that time the duties
were further raised, and in 1814 the consumption fell as low
as to 218,000 loads. However, the growing wealth of the
country brought about a gradual increase, and I will pass
over a long period of years to 1841, from which time, the
house will observe, that every reduction of duty has been
answered by more than a corresponding increase in the use
of this essential material. In 1841 the duty on foreign
timber was reduced from 565. 6d. to 31s. 6d., and in colo-
nial timber from lls. 6d. to is. Consequently, as a rule, the
reduction only took effect in October, 1842, but in 1843 the
consumption was 1,298,000 loads. In 1850 the duty on
foreign timber was further reduced from 15s. 6d. to 7s. 6d.,
and on deals from 20s. to 10s., and the consequence was
that, from a consumption of 1,723,000 loads in 1850, the
consumption rose in 1859 to 2,408,000 loads. In 1860 we
went to work, and further reduced the duty from 10s. to
25., and from 7s. 6d. to ls. At that time a highly respectable
gentleman from the colonies, who represented Launceston,
predicted that ruin would come over the timber industry
of New Brunswick; but the consumption, which in 1859
was 2,408,000 loads, increased in 1865 to 3,700,000 loads, or
to 16 times the consumption of 1814. The whole revenue
from timber is as follows for the entire year :—£300,000
from various descriptions of wood goods, and t£7,000 in
wood manufactured into the form of ships, being a total of
£307,000. I shall reckon the whole of that as loss, because
we propose that the repeal shall date back from the Ist
of April, 1866. With respect to wines in bottle—the
other subject I have to touch on in connection with the
Austrian Treaty—the case stands thus,—we charge for
wine in wood by one or two rates. Supposing it is real
wine, and does not exceed a certain strength—for if it
does it is charged as spirits, but if it is under 26 degrees
the charge is ls. a gallon. When the alcoholic test is
adopted it must be applied in great frequency and to every
parcel of goods, and thus great injury is entailed on the ar-
ticle. Wines imported in bottle being for the most part of a
more expensive character, it was thought best, when these
duties were fixed a few years ago, to levy a duty of 2s 6d
upon all bottled wines, while wines in wood were charged
according to their strength. Now, however, we are able
to work the system with much greater accuracy, and the
alcoholic test is much more rarely applied. Representations
have been addressed to us by the Austrian Government, and
I am bound to say by the French Government also ; and
one piece of evidence, of a kind almost peculiar in history,
has been forwarded - a document addressed to myself by a
large number of Burgundian winegrowers, a document
which I received with very great pleasure, as a sign of the
increasing sense that is felt of the common interest of the
two countries in matters of this kind—(cheers)—and from
these statements we find, and there is no reason to doubt
their perfect accuracy, that there is great deal of wine
which will import safely in bottle which it is very difficult
to import securely in wood. This is the case with many
Hungarian, as well as with Burgundian wines ; and there-
' fore, according to the request of the Austrian Government,
we propose to equalize the duties on wines in bottle with
those which are now paid upon wines in wood. That is to
say, they shall be charged according totheir strength, 2s 6d
per gallon if over 26 degrees of alcohol, and ls. if they do
not exceed that standard. The effect of that change would
be a total loss of £71,000, without any allowance for re-
covery ; or, with some allowance for recovery and also for
the portion of the year that has passed, a loss of £58,000.
This I have to add to the debtor side of the account, to be
set against the surplus. I have done with the subject of trea-
ties for the present ; and there are three changes which I
propose to make, apart from any treaty duties. We propose
to remove the duty on pepper. (Laughter.) The fate of pep-
per might well excite the commiseration of any humane
man. Theduty, which it is difficult to defend, has often stood
to be abolished, but when it came to the last moment there
has always been some more bulky and important neigh-
bour to thrust it out of the way, and the consideration of
the subject has lain over till this year, when there happens
to be a moderate surplus, which does not admit of the duty
upon malt or any other great subject being satisfactorily
entertained. The present, therefore, appears to be a good
occasion when, without exciting feelings of jealousy
in the
agriculturist or any other class of the community, we can
afford to do justice to pepper. The case is a hard 'one, andn
for this reason- all the spices and condiments in which the
wealthier classes have an exclusive interest have been long
set free from duty. But pepper is a condiment common to
all classes of the community—and, though I cannot say
whether this is so or not, I am told that it is largely con-
sumed in Ireland. (Much laughter and cheering.) It is a
commodity that can well b 4 dispensed with by the wealthy
classes, and even by those portions of the labouring com-
munity that partake largely of animal food, but is really
very useful and very necessary to those whose diet consists
in a much larger degree of animal food. (Cheers.) Another
very strong reason for the abolition of the duty is. that
pepper is abominably adulterated. (ear.)anAder and degree,ulterattonof
food, I am afraid, is, in a very special H
manner
an English vice. I doubt that in any other countryin the
world the same amount of adulteration o
is
violently stimulated whenever th
place—(hear)—but the proportioneorfattehaotfaddnutlyte,ration
duty on pepper is not less than 200 per cen
propor-
tioned to the short price of the article, is very hi. t
isT /awe
is 3 d ,
13214 d,
0. ,ooor,
83ayd,. theT idieutryevsetoonade afrto6md.twheheanrttiehlee porfipceepwpears
and deducting .£12,000 for the tenth of the financial year, I
ao subject
rteouroh ed
financial
deal
,but wh which I
withi
in that
the net loss to be £112,000, which is to be added to
the items I have already mentioned. Now I come to
unwilling
time,
itmo
e,
leave
neither theolly s t
aunt;
which,amat h
resouarcteseennocrleosttvhe anderconseiffdeecrtautal considerations enable
which, I hope, some day may be brought within our power
—I mean a portion of th
although I admit that greatantuditaffiriesc uponities
would
oocuolmd opt: oe
present
t th(Hear,em
hear.) Ido not hesitate to
practice—a great d' • that I think in principle—.
tihne locomotion of luxury and pleasure and that which
tsewleveens
distinction should be drawn, be-
is of necessity. Ido not enter into the question of how far
we 04 dietieguieh between them, but to a considerable ex.

tent our system does Actually distinguish between them.
The house, perhaps, will be surprised to know that the
, revenue which we derive from locomotion in all its forms
is not less than £1,600,000. Of that sum the moiety, or
£852,000, is the portion of assessed taxes which I consider
fairly due to locomotion, that is to say, derived from taxes
upon horses, taxes upon carriages, and taxes upon the pro-
portion of men-servants connected with them. With that
amount of £852,000, and also with the revenue of £459,000
derivable from railways, I do not propose in any manner
to interfere. The first arises from a description of charge
that may, I think, fairly be retained on our statute book,
_ _

at any rate for the present ; and the revenue derived from
railways is, in my judgment, a revenue which Parliament
would never think of surrendering, unless it were in con-
nection with some comprehensive arrangement for secur-
ing benefits to the public. (Hear, hear.) This, it is quite
plain, we are not at present in a condition to entertain. The
house is aware that a commission,composed of very able and
very distinguished men, was appointed more than a twelve-
month ago to examine into the general condition of the
railway system, and how far it might be possible, by such
means as were defined in the instrument appointing the
Commission, to improve our railway system in the direc-
tion of general accommodation of the public, and particu-
larly of goods traffic. It is plain that we must adjourn
any examination of that subject until the Commission has
concluded its labours, which I hope, and am given to
understand, will be in the course of the present year.
There are, however, subjects similar in character which I
think may well engage our attention, and upon which such
slight remissions of duty as we are in a position to make
will be attended with great advantage. We derive from
post horses and carriages, including all descriptions of car-
riages in London and elsewhere, £266,000, and from public
conveyance £142,000, including all descriptions, whether
stage coaches, waggons supposed to travel under four
miles an hour in the country, or omnibuses, which form
so conspicuous a feature in the streets of London, andwhich
are becoming from year to year instruments of almost in-
dispensable use to the enormous number not only of the
middle and lower middle, but even, in the strictest sense,
of the labouring classes of the community. The proposals
therefore which I have to make relative to the tax on
omnibuses and all public stage carriages relate not only to
the comfort and advantage of the labouring classesin great
towns, but in another point of view tend to diminish the
very injurious effect which the severity of the duty exer-
cises in restricting rural accommodation—(cheers)—more
particularly accommodation in connection with railway
stations. (Cheers.) The present tax is estimated to
amount tono less than from 9 to 11 per cent. on the gross
receipts of the London General Omnibus Company and
other companies of a like description. And when one
considers the relation which gross receipts bear to net, and
what a very large proportion of gloss receipts is swallowed
up in payment of necessary expenses, it must be admitted
that such a duty imposes a very heavy burden on this
description of trade. I do not dwell on what relates
to the railway stations, because every gentleman who
resides in the country will, I am sure, be familiar
with that matter from personal experience. But the
manner in which the working classes in the large towns
are affected is very much as follows :—A continuous pro-
cess is going on, unobserved, but steadily from day to
day, by which the value of land in the limited areas about
the centre of great cities is rising in a proportion hardly
credible, though proved by experience. The statistics, if
produced, would astonish those who have never attended
to the point, and the result is this—a continual transfer of
premises in central situations from residential to business
purposes. The wealthier class of residents, thus dispos-
sessed, disappear, for their pleasure, while the labouring
class—and that in a considerable proportion—cannot afford
to pay the increased rent and go out to live at greater dis-
tances from town. It is absolutely necessary, however,
that their labour should still be performed in town, and ac-
cordingly it is of the greatest importance that they should
have cheap conveyance. (Hear.) Hence the tax on loco-
motion, considered as a tax on the labouring part of the
community, is in the severest and crudest sense a tax on
the raw material of industry. For nothing more materially
corresponds with a tax on the raw material of industry
than a tax affecting the sinews and muscles of the labour-
ing man; and if he is obliged to spend those sinews and
muscles in travelling to and fro, he spends them upon that
which brings him in no wages, instead of spending them
in reproducing labour. (Hear.) I hope I have satisfied the
house that it is right to deal with these questions. (Hear.)
We propose to leave the licenses on these carriages as at
present. We cannot offer a thoroughly searching solution
of the whole question at present, but we think we can re-
lieve the burdensome part of the duty which is calculated
on a mileage. The present duty is id. per mile, and that we
propose to reduce to fd. per mile. (Cheers, and " Why not
repeal it altogether ?") There would be considerable diffi-
culty in doing that. The house will please to recollect that
though there are, as I have described, strong reasons for
modifying this duty, it cannot be separated altogether
from other duties—from the duty on hackney carriages for
instance, which we are not able consistently with the
plans of the Government, to relieve ; it cannot be separated
from the consideration that in a very great number of cases
these carriages are in direct competition with the short
local traffic of railways in the neighbourhood of large towns,
on which you levy without compensation a tax of five per
cent. on their gross receipts. The total income from this
source, with full duty, would be£l3o,ooofor the year. The
duty can only be reduced on the 2d of July next, when the
arrangements are made for the quarter and licenses are is-
sued. Thereduction will not in this case take place from
the date of the resolutions passed by the house; an Act
of Parliament will be necessary for that purpose. I have
said that I do not propose to interfere with the hack-
ney carriage duty, because the receipts from that tax are
of a peculiar character, and may be considered as some
compensation made by the metropolis for a great outlay in
the matter of its comfort and advantage. But the post-
horse duty applies all over the country. The duties are
now regulated by a scale varying with the number of
horses and carriages possessed, and are so framed as to
bear hardly on the smaller as compared with the larger
proprietors. One horse or one carriage pays per annum £7
10s.; two horses or two carriages just double ; four horses
or three carriages, £2O ; eight horses or six carriages, £3O.
If you will compare £7 10s. for one horse or one carriage
with £3O for eight horses or six carriages, you will see
how the scale is framed to bear heavily on the small as
compared with the large proprietor. I propose to reduce
the rates below the £3O rate so as to correspond as nearly
as possible with the higher rates—viz., one horse or one
carriage will be charged £5; three horses or two carriages
will be charged £lO, and so that the small owner, the
man who drives his own fly, will be placed, as nearly as
the nature of things will admit, on an equality with the
larger capitalist, with whom he competes. The estimated
loss from that source (with allpwance of 10 per cent. for
increase in traffic) will be £20,000 ; or £16,000 in 1866-7,
and £4,000 in 1867-8. The committee will see that we have
now disposed of about £562,000 out of £1,350,000. I now
pass to a subject of an entirely different description from
those on which I have touched—having this only in com-
mon with them, it would dispose of a large portion of the
remainder of the surplus, and it is undoubtedly a very im-
portant financial arrangement. Before, however, going to
that subject, I shouldstate that I shall submit resolutions to
give effect to all the changes which I have mentioned; and
also for renewing the income tax at 4d. per pound, and for
continuing the tea duty. But the proposal I have now to
make, and which I hope will receive the sanction of the
house, will most conveniently and naturally form the sub-
ject of a separate measure ; though it is one which I am
anxious to prosecute as speedily as possible. The question
I am about to call the attention of the house to is connected
with an item which I omitted from the retrospective part
of my statement. It relates to the condition and move-
ment of our National Debt. (Hear, hear.) I will first give
to the Committee what has actually been done with respect
to the reduction of the National Debt in the year. The
amount paid off in the year 1865-6 consisted of—

1. Exchequer Bonds £1,000,000, exchanged by reissue.
2. Exchequer Bills paid in for re-

venue ...
..£783,000
Purchased with surplus revenue 877,000 £2,555,000
Sent in at the exchanges 895,000
3. Cancelled by Land-tax ...
4. Stock purchased with surplus re-

59,000

venue ..
5. Capital redeemed in Terminable

•.• 1,395,000
... ... 1,620,000

Annuities

Total ... £5,629,000
A sum of £450,000 was raised for fortifications, and there-
fore the real reduction of the National Debt in 1865-6 was
£5,179,000. (Hear, hear.) The next statement I have to
make to the Committee relates to the Unfunded Debt. Great
changes have taken place with regard to our Unfunded Debt.
Part of it consists of Exchequer Bonds, which are not seri-
ously affected by the extraordinarily rapid and frequent
fluctuations which, under the present, I think, wise admi-
nistration of its affairs by the Bank of England, continually
attend the conditions of the money market. But it is quite
possible that in a country and at a period where the cur-
rent rate of interest on commercial paper for short terms
with 90 or 120 days to run, or perhaps six months, is run-
ning up and down two, three, four, or five times a year,
from 3 to 8 or 9 per cent., it is almost impossible to make
any large portion of these Government securities live in the
market, unless you choose to adopt a course which I think
unwise—to give a high rate of interest upon them. That
would be a very wasteful proceeding, and the alternative
adopted is to encourage a gradual absorption of them. The
total Unfunded Debt of the United Kingdom in 1815-16 was
£44,727,000. Just before the Russian war, on Jan. 5, 1854,
it was £16,024,000; on March 31, 1857, it was £27,989,000;
in 1859, £18,277,000; but that was by funding, and one
object of reduction by a gradual process is to get rid of the
necessity of funding, which is a very expensive operation,
generally performed at unfavourable periods. In 1866 the
Unfunded Debt, which in 1859 was £18,277,000, was re-
duced to £8,267,000, consisting of about two-thirds, or
£5,887,000 in bills, and one-third, or £2,300,000 in bondt.
Now, with respect to the grave and serious subject of the
National Debt, I hope the committee will not think I take
undue liberty in calling their serious attention to it. It is
a subject as to which it may be difficult to say why it
should be introduced to the notice of the house at one mo-
ment rather than another; but undoubtedly I am con-
vinced, with my now long experience of the financial de-
partment, that the time has come when it is fitting that Par-
liament should bestow a greater degree of attention than