The Sun.
London, England, 1866-07-24 00:00:00

FENIANISM IN AMERICA.

Mr. 'WHITE asked the Secretary of State for Fer
Affairs, whether, looking to the conspicuous good fah
and friendly feeling of the Government of the "United
States towards this country in its recent conduct to the
Fenians, her Majesty's Government is now prepared to
submit all claims and matters in dispute between the two
Powers to an arbitration mutually acceptable ?
Lord STANLEY said that he recognised the import-
ance of the subject, and that he was very happy to state
that a good feeling prevailed between this country and
the United States.

SUPPLEMENTARY ESTIMATES•
The CHANCELLOR of the EXCHEQUER—The sup-
plementary estilnate that has been laid on the table has

changed the position of the public accounts since the finan-
cial statement of the right hon. gentleman opposite, and I
feel it convenient that I should place exactly our position
before the house, and state the course whic ni the whole
we think it expedient the house should p irsue in conse-
quence. The house will recollect that u hen the right
hon. gentleman brought. forward his fin meal statement he
estimated the revenue at £67,013,000, including £500,000
to be paid by New Zealand bonds, and the right hon. gen-
tleman stated his expenditure at £66,727,000, including
£502,500 for the creation of terminable annuities. The
result of that estimate of revenue and expenditure left a
surplus of £286,000. Now, the amount of the supplemen-
tary estimates that we have placed on the table is £495,000,
and the result of that, as the house will see in a moment,
has been that the surplus of £286,000 has been changed
into a deficiency of £209,000. The question, therefore, is
what, under these circumstances, is the best course that
her Majesty's Government can pursue. We might, in the
first place, of coarse, propose a new tax to supply the defi-
ciency; but I should think that there would be an almost
unanimous opinion in the house that that is a process which
it is not expedient to have recourse to. (Hear, hear.) Under
ordinary circumstances the obvious course would probably
be to ask the house to grant a supply to complete the ser-
vice of the year, which would be raised by Exchequer
bonds or Exchequer bills. But there are objections to that
course ; and, in the first place, I need not remind the house
that under the present circumstances which prevail in the
monetary world it is not very easy to place securities of
that description ; in the second place, it must be recol-
lected that with these difficulties prevailing we have. not
yet floated our £500,000 New Zealand Bonds; and in the
third place, I must remind the house that by the existing
law Exchequer bills are payable for taxes, and the holders
of Exchequer bills may always require payment of the
security at the termination of the current year. Now, of
course, in times of extreme financial pressure like those
which we have experienced, and I am sorry to say still ex-
perience, it is not wonderful that holders of Exchequer bills
should have availed themselves of this term in the security.
At the present moment Exchequer bills to the amount of
£BlO,OOO have been discharged by balances in the Ex-
chequer. It is very true that we have the power granted
to us by Parliament to issue bills to a similar amount, but
the difficulty to which I have alluded is an obstacle in our
way. And considering that we have not yet placed the
New Zealand bonds, that we have yet, in order to square
our accounts, to issue £BOO,OOO of Exchequer bills, I trust
the house will hardly be of opinion that a. recurrence
to a fresh supply granted by the house in the shape of
Exchequer bills or Exchequer bonds would be an expe-
dient course to meet the difficulty in which we find our-
selves. There is a third mode by which we might remedy
the inconvenience and bring our accounts into that state
which the house I am sure wishes they should be in ; and
that is by considering the propriety of relinquishing pro-
ceeding with a bill for the conversion of permanent
into terminable annuities which has been read a second
time. By that bill there is an increased charge upon our
resources of something exceeding £1,000,000 a year. The
exact sum is £1,005,000, but only a moiety of that amount
would come into charge during the present year, so that if
we do not at present proceed with that bill the account will
thus stand :—That £502,500 would be added to our
revenue, and deducting the present deficiency of £209,000,
there would remain a surplus of £293,500, a surplus almost
identical with that which was contemplated by the right
hon. gentleman in his financial statement. Under these
circumstances we are of opinion that, on the whole, the
wisest course is not to proceed with the bill for the con-
version of permanent into terminable annuities. If that
suggestion meets with the general concurrence of the
house, I will, with the permission of the right hon. gentle-
man (Mr. Gladstone), when the order of the day for that
bill comes on, move that it be discharged. (Hear, hear)
There is one observation that I cannot refrain from making
on the present occasion. I confess it is with unaffected
concern that I find that my first act as minister of finance
should be to propose an addition of the public expenditure
of the country. If, indeed, supplementary estimates to a
much greater amount than those that we have laid on the
table were required by the necessities of the State, I trust
that I, and I might trust that any one who occupied the
position which I at the present moment fill, would never
shrink from the responsibility of such a proposition, but at
the same time I feel it my duty to state, in order that there
may be no mistake on the subject, what are the principles,
so far as the public expenditure is concerned, upon which
the present administration is founded. Four years ago,
when we were upon the benches opposite, at the time
when the expenditure of this country had reached its cul-
minating height, I felt it my duty, after as complete an in-
vestigation of the subject as could be made by a man who
was not assisted by the advantage of official information, to
call the attention of the house on repeated occasions to the
necessity of a reduction—a considerable reduction—in our
expenditure. (Hear, hear.) The scale of expenditure that
then obtained appeared to me not consistent and compatible
with the condition of national prosperity. 1 took that course
with the entire concurrence of Lord Derby, and of many
eminent, persons whom I now count among my most in-
fluential colleagues. And the view which on repeated
occasitinvel flieS4Merbrtiore the loilso having found
favour in the house, the Conservative pax* Assembled and-,
came to the conclusion that the opinion of Parliament
should be asked upon the question, and that they as a
party would support that reduction in our expenditure
which they deemed necessary for the welfare of the country.
In consequence of that determination a resolution was
drawn up and placed in the hands of my colleague, the
present .Secretary of State for the Homo Department, but
in consequence of the declaration of Lord Palmerston that
he should consider such a resolution, if passed, a vote of
want of confidence in his Administration, the resolution
was not pressed to a division, but it was met by the Go-
vernment by an amended resolution, which so far as I in-
terpreted it contained a specific, and I will say, under the
circumstances, a solemn declaration that the reduction
which we advised should be made in the expenditure of the
country. There were some who distrusted the sincerity of
Lord Palmerston on that occasion, but I am bound to say
that, in my opinion, the pledge then given by the Govern-
ment was sincerely and completely carried into effect, to
the amount and in the gradual manner which the house
wished that those redactions should be effected, and which
I for one deemed necessary to the welfare of the country.
Well, I wish to state that, sitting on these benches, it is our
intention in spirit and in truth to carry into effect that
policy with respect to the expendithre of the country which
we recommended to the late Government. Sitting on these
benches we are still of opinion, as we expressed on the
benches opposite, that although we acknowledge that the
first duty of a Government is to arm our soldiers with the
most efficient weapon, and to make provision that her Ma-
jesty's seamen should float in ships which, either for defence
or aggression, should be equal to any vessel they might
have to encounter ; it is still our opinion that these results
are consistent and compatible with a prudent and econo-
mic administration of our finances. Sitting on these
benches, we are still of opinion, as we expressed, on the
benches opposite, that in an epoch like the present, which
is an `epoch of speculative armament, of discovery, of ex-
periment, and rapid vicissitude of practice, that foresight
and scrutiny, and vigilance, are qualities as valuable in a
minister as that precipitate zeal which, squandering the
resources of a country, often does not even accomplish the
public end proposed. Sitting on these benches we are still
of opinion, as we expressed on the benches opposite four
years ago, that one of the principal sources of the strength
of England is her financial condition ; that her financial
reserve is far more important than those military reserves
of which we so often hear such boastful accounts. (Hear,
hear.) If it be true, as has been said by the highest
authorities on such subjects, that there are few powers in
Europe, however fond they may be of war, who can enter
into a third campaign, it may be some consolation to
England when she is taunted for not entering into quarrels
in which she has no interest, to recollect that if ever her
honour is assailed, or her interest is attacked, her financial
condition is such, that if she enters into a contest, she
can pursue her inexorable purpose, whatever may be the
amount of the expenditure, or the duration of the war,
until her rights are vindicated, and her honour is placed
in the position which she desires. Under these circum-
stancesgovlonrneeudsniont
the administration
house t that t
oth e
financesnl- itnci pl principle
tthathe
w 1
s
principle of economy. (Cheers.) Butbyurtha word do
tahsalt hwfavisee paprepsulicamteidontoosftaotuerbreefseorueroestt
not mean negligence, inefficiency, imperfection,ehici but I mean,
beaches opposite,
hn
oft g
we so
ft
as
re
el
in nothing but what is necessary for the public but takes care that it shall be accomplished in the most
complete manner. I thought it better before we entered
into committee of supply, when we are about to propose
an increase of expenditure—a not very graceful act—to
make this explanation, and I trust that the house will
pardon me for making these few observations. (Hear,
hear.)
Mr. GLADSTONE, whilst offering no opposition to
the withdrawal of his Terminable Annuities Bill, did not
abandon the policy of which that bill was an indication ;
but he reserved his judgment with regard to a portion of
the supplementary estimates. He did not object to the
proposed vote for small arms; but he thought that the
War-office was acting with premature haste in incurring
such a large expenditure for conversion, with tho prospect
of a now arm having to be substituted for the weapon so
converted. He had heard what had fallen from the Chan-
cellor of the Exchequer with great satisfaction. If the
Government were determined to enter into an honourable
rivalry for a reduction of expenditure, the country was to
be congratulated on the fact ; for he knew of no monopoly
that the Liberal party possessed with respect to public re-
trenchment. He admitted that they had been the principal
instruments in giving it effect ; but whilst he made this
admission, the just historian must give to the Government
of the Duke of Wellington the honour of having first taken
the matter in hand with earnestness of purpose. The ficlld
was still open, and there was enough in it for all to do :
and he heartily rejoiced that the right hon. gentleman had
made this declaration, if he understood him to mean that
he considered the expenditure to be still susceptible of con-
siderable reductions.
oRtThlie
ExUOoTE remarked that the object of the
Chancellor S.
Nor of laeque7 not to throw any reproach
upon the late Government, simply
int
nopsptnast
iet
itnhna that
theythe
in-
po-
licy which Ministers had
announced
tended to pursue now that they were in offi
After a few words from Mr. SAmun. ce.
Mr. WHITE tendered his hearty thanks to the Chan-