The Sun.
London, England, 1857-09-12 00:00:00

Rif;PORT OF TH...c; COMMITTEE ON
PUBLIC MONEYS.

Vie‘ re port of the select committee of the House
of Comimons, "appointed to inquire into the receipt,
issue„ and audit of public moneys in the Excheper,
the ray-office, and the Audit Department,' was
issued Yesterday, together with the proceenin di
among ngs of
contai
the con.:L vittee, and an appendix, g,
other valuable matter, a long memorandum on
financial cc mtrol, put in by the Chancellor of the
Exchequer. The following is a copy of the report
Your Comm fee have considered the evidence and
sc,ted by the select committee on public:
document; colic
Inch have been-referred to them, as
moneys in 1856,
,rtant rapers laid before them, which
well as further inal_n
will be found in the appendix ; and they have agreed to
submit the following
_recommendations to the house:
I.—ExcIIEQUER ISSL '3 AND PAYMASTERS' PAYMENTS.
Your committee are , sat tisfied, from the evidence taken
before them, that the ,10 nsolidation of the pay depart-
ments ha 4 been atfended , vi.th public benefit ; that it has
diminished the balances k ft in the bands of the public
accountants to the Crown ; that it has increased the
security of the public money, and promoted economy ;
and that the regulation which. requires the Paymaster-
General to make all his pays tet lts from a single cash
balance has been attended with be neficial results.
As the issue of money from the exchequer in amounts
sufficient to maintain a constant • balance in the hands
of the Paymaster, on each separa to grant or head of
service, over and above the balances' in the Exchequer at
the credit of such grants and services,, would entirely de-
feat these objects, your committee rec „commend that issues
worn the Exchequer shall be made in oroler to adjust the
payments under every head of service, by placing each in
eredit in the books of the paymaster as frequently as
Possible, consistently with retaining tiee emeallest cash
balance, and that Buchan adjustment shall be completely
made at least at the close of every month ; that the pay-
master should be required to make up for the commis-
sioners of audit accounts to the end of every month,
eleov.ing the balances for or against every head of ser-
vice ; and that any provision of the Exchequer Regula-
tion Act of 1834 which way appear to be at variance
with this mode of conducting the public payeenentsshould
be repealed.
Your committee are of opinion that the Pay
General should cease to be a political officer' discharging
his duties by deputy ; and. that he should becoeue the
noting and efficient head of the Pay-office, performing
his duties in person.
2.—PAYMENTS OF THE GROSS REVENUE TO THE
EXCHEQUER,
Durieg the progress of the inquiries of the committee
of 1856, an act was passed (19 and '4O Vic., cap. 59) for
rotcovin 1 from the gross revenues elertain ouperannua-
tione and other charges which had rem wined payable out
of those revenues after the passing of the Act 17 and 18
Vic., cap. 94, under which the charges of collecting the
revenue and various other expenses we es transferred to
the
annual estimates, or placed on ti me Consolidated
Fund.

With the exception of the charges on the land revenues
of the Crown, the net receipts of which m a only payable
to the Cthisolidated Fund under the Acl, 10 Geo. IV.,
cap. 50, sec. 113, and under the Act 1 and 2 Vic., for
the settlement of the Civil List, the only payments
which. can now be legally charged upon the public
revenues are drawbacks, bounties, repayments, and
disc ants. Although your committee have uo reason
for believing that any expanses have been defrayed out
of those revenues in their progress to the Exchequer
which were not legally chargeable thereon, they are
revertl,eless of opinion that it is esential to a proper
Parliamentary control of the public money that the law
should distinctly require that the whole revenue, after
provitlim for those charges, should be paid to the Con-
solid Fund, from which it cannot be issued without
Par li-tmentary anction ; and with regard to the charges
of the land revenues, the committee are of opinion, un-
le.s3 some constitutional difficulty should be involved in
the change, these charges should be brought under the
same Parliamentary control, and under the system of
vote for expenditure, as the charges respecting the
other branches of public revenue.
They recommend that the payments of revenue should,
as far as practicable, be paid direct into the Exchequer,
and that those payments made into the Pay-office should
be transferred to the Exohequer account with as little
delay 33 may be consistent with the public service.
They further recommend that moneys in deposit in
the Pay-office should be carried to a separate account
at tho Dank—as they neither form part of the public
revenue, nor are voted by Parliament as ways and means.
The payments may still be made through the general
drae hog account.
A statement of the receipts and payments included in
this deposit account ought annually to be laid before
Parliament.

3.—DEFICIENCY DILLS,
Ta the present state of the law (57 Geo. 3, c. 48), it
is neceasary that Exchequer Bills (deficiency) should be
issued to the full extent of the deficiency which may
appoar on making tip the account of the income and
char.re of the Consolidated Fund to the close of the quar-
ter, although it constantly happens that the growing
produc, of that fund for the subsequent quarter is suffi-
cient to meet all charges without the aid of deficiency
bills. Under such circumstances the Exchequer bills are
issued to the Bank, and are paid off on the same day ;
but although this practice obviates the charge for inte-
rest on these advances, the money is nevertheless bor-
rowed from the Bank hen the public service does net
require the loan.
Your committee therefore recommend that whenever
the defici.ncy of the Consolidated Fand for the quarter,
or any p Art thereof, can be directly provided out of the
growing produce of the fund for the following quarter,
the iseue should be made directly out of the public bal-
ance without the aid of a loan, nominal or otherwise
rom the Bank.

Your committee further recommend that when actual
advances by the Bank become necessary, either for Con-
solidated Fund services, or for supply services, the amount
should be placed to the Exchequer account without an
issue of Exchequer bills, but upon a requisition to the
Bank by the Comptroller of the Exohequer, and that it
be issued from the Exchequer account by the Exchequer
to the onbl:c service as at present; also that the advances
should be treated as book debts, and be subject to all
the existing provisions of the law as to redemption.
Trt calculating the interest to be paid on deficiency
bills, your committee observe that the amount of Exche-
quer credits undrewn, and the balance at the Bank to
the Paymaster's account, are not taken into considera-
ti yie ; it would be cf advantage if these sums were consi-
dezed as well as the Exchequer account ; but your coin.
mitteeal)etain from making any positive recommendation
nn the snhject, as the arrangements subsisting between
the Beak of England and the Government must necessa-
rily c,,rne into consideration in connection with the Bank
Act of 1344, now under the review of Parliament.
4.—ExcllEczuza BILLS (ScPPLY).
A vete in supply is taken every year to pay off all
out, tending Exchequer bills; and ways and means in
Excheqo -r bills are granted to provide for such payment.
The effect of this arrangement is, that the bills of the
current year are issued to pay off the bills of the past
year, except in those cases in which holders demand pay-
ment ia money. It has been shown to the committee
that this annual renewal of Exchequer bills is attended
with. trouble and inconvenience to holders, and with ex-
pew) a:ld risk to the public; and, moreover, that the
Par anent of Exchequer bills in money outof the ways and
means granted for army, navy, and other supply services
leads to complicated adjustments between the money
grants and the Exchequer bill grants of ways and means
which it appears desirable to avoid. As a security to
holdere, Exchequer bills charged on aids or supplies may
after the expiration of 12 months from their respective
dates, ha tendered in payment of any of the public re-
venues, aids, taxes, or supplies—a regulation which has
the erect of applying revenue in its progress to the Ex-
cherluer to the:payment of debt. Your committee are of
op;.eion that the law, as regards these Exchequer bills,
may be simplified; they have therefore to propose
Ist. That the principal of Exchequer biils be redeemable
out of Ur) Consolidated Fund in those cases in which the
holdere can demand payment of their bills in money,
or pav them ip for taxes under existing regulations ; and
that the interest be payable also out of the Consolidated
Farad.

2d. That the Government be empowered, as at present.
t') issue new bills in lieu of those which may be paid off
in money, the proceeds of such bills, however, to be
placel to the credit of the Consolidated Fund.
3d. That the annual renewal of Exchequer bills be
d►scontinued, the bi Is running on from year to year,
with the consent of the holders, until cal'ed in for re-
telt al; that the rate of interest be advertised annually,
and that Lhe bills be issued with coupons for the annual
ante►ebt_