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

REPORT OF THE COMMITTEE ON
ETBlrle-MONEYS.

-
• the H
The report of the select committee- of oust)
of Commons' "appointed to inquire into the receipt,
issue, and audit of public moneys in the Exchequer,
the Pay-office, and the Audit Department; was
issued yesterday, together with the proceedings of
the committee, and an appendix, containing; among
other valuable matter, a long memorandum on
financial control, put in by the Chancellor of the
Exchequer. The following is a copy of the report
Your committee have considered• the evidence and
documents collected by the select committee on public,
moneys in 1856, which have; been referred to them, as
well as further important papers laid before them, which
will be found in the appendix ; and they have agreed to
submit the following recommendations to the house:
j.—EXCHEQUER Issues AND PAYMASTERS' PAYMENTS.
Your committee are satisfied, from the evidence taken
:before them,', that the consolidation of the pay depart-
ments has been attended with public benefit ; that it has
diminished the balances left in the hands 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 payments from a single cash
balance has been attended with beneficial 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 separate 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 recommend that issues
Irom the Exchequer shall be made in order to adjust the
payments under every head of service;: by placing each in
credit in the books of ,the paymaster as frequently as
possible, consistently with, retaining the smallest cash
balance, and that suchen adjustment shall be completely
made at least at the cloie of everynionth 'that the pay-.
master should be required to make up for the commis-
sioners of audit accounts to the end of every month,
showing the balances for or against every head of ser-
vice ; and that any provision of the Exchequer Regula;
tion Act of 1834 which may appear to be at variance
with this mode of conducting tho public payments should
be repealed. .
0, •
Your committee are of opinion that the Paymaster-
General should cease to be a political officer, discharging
his duties by deputy ; and that be sjipuld become the
acting and efficient bead of the' Psy-offiee; performing
his duties in person. '

2.-PAYMENTS OF THE GROSS REVENIIi TO TEE,
EXCHEQUER.

Daring the progrers of the inquiries of the cbmmittee
of 1856, an act was passed (19 and 20 Vie., cap. 59) for
removing from the gross revenues certain ouperannaa-
Cons and other charges which had remained payable out
of those revenues after the passing of the. Act 17 and-I8
Vic., cap. 94, under which the charges,of collecting the
revenue and various other expenses were transferred_ to
the annual estimates, or placed on the Consolidated
Fund.

With the exception of the Charges on the land revenues
of the Crown, the net .reneiptif of which are only payable
to the Consolidated Fund under the Act .10 Geo. IV.,
cap. 50, see. 113, and under the 'Act 1-I%nd:2-Vic., fur
the settlement of the "Civil List, the only payments
which can• now be legally charged upon the public
revenues are drawbacks bounties, repay means, and ,
discounts. Although your committee have no reason
for believing that any expenses have been defrayed out
of those revenues in their progress to the Exchequer,
which were, not." legally, chargeable ,thereon, they are
nevertheless of opinion that it is , nsential to a proper
Parliamentary control of the public, money that the law
should distinctly require that the whole revenue, after
providing' for thee() charges, should be paid to the Con-
solidated-Fund, from which it cannot be issued without
Parliamentary sanction ; and with regard to the charges
of the land revenues, the committee are'of' opinion, un-
less some constitutional difficulty should be involved in
the change, these charges should be brought under the
same Parliamentary control, sad under. the lirystem of:
votes for expenditore, as the charges respecting the
other branches of public revenue.
They recommend that the pay,tnents of revenue should,
as far as practicable, he paid direct into
:the Exchequer,
and that those payments made,into the Pay-office should
be transferred to the &elute:lei account with as little
delay as may 'be. Consistent with 'the' public Service.
They further recommend that moneys -in deposit in
the Pay-office should be carried td 'separate account
at the Bank—as they neitherlorm part of the public
revenue; nor are voted by Parliament-as ways and means.
The payments may still be made through . the general
drawing account.

A statement of the receipts and payments included in
this deposit account ought annually to be laid before
Parliament.

IcieNcY.Biees.
In the present state of the law (57 Geo. 3, c. 48), it
is necessary that Exchequer Bills (deficiency) should- be
issued to the full extent of the deficiency which may
appear on making up the account of the income and
charge of the Consolidated Fund to the close of the:quar-
ter, although it constantly happens that the growing
produce 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 aro paid off on the same day ;
but although this practice obviates the charge f)r inte-
rest on these advances, the money is nevertheless bor-
rowed from the Bank when the public service does net
require the loan.
Your committee therefore recommend that whenever
the deficiency of the Consolidated Fund for the quarter,
or any part thereof, can be directly provided out of the
growing produce of the fund for the following quarter,
the issue should be made directly oat of the public tat-
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, theamount
should be plaoed to the Exchequer account without an
issue of Exchequer bilks, but upon a requisition to the
Bank by the Comptroller of the Exchequer, and that it
be issued from the Exchequer account by the Exchequer
to the public service ai 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.
In calculating the interest to be paid on deficienVy
bills, your committee observe that the amount of Exohe.
quer credits undrawn, and the balance at the Bank to
the Paymaster's account, ate not taken into considera,
tion it would be of advantage if these sums were consi-
dsced as well as the Exchequer account ; but your oom-
mitt.es abstaie. from making any positive recommendation
on the snhject, as the arrangements subsisting between ,
the Bank of England, and the Government must necessa-
rily come into consideration in .onn ction with the Bank
Act of-18-44, now under the review of Parliament. .
4.—Exclmozn Blue (SUPPLY).
A vote in supply is taken every year to pay off all
outstanding Exchequer bills; and ways and means id
Exchequer 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 in money. It has been shown to 'the committee
that this annual renewal of -Ex..thesiner bills is attended
With trobble and inconvenience to holders, and with ex-
pense and risk to Ow public ; and, moreover, that the
Payment of Exchequer bills in Toney outcf the ways and
means granted for army, navy, and other supply services
lead.' to complicated adjustments between the m eley
grants and the Exchequer bill grants of ways and means
which it apwars desirable to avoid. As a security to
holders, Exchequer bills charged on aids or supplies-may
after the expiration of 12 months from their respective
dates, be tendered in payment of any of the public re-
venues, aids, taxes, or supplies—a regulation which has
the effect of applying revenue in its progress to the Ex-
chequer to the'payment of debt. Your committee are of
opinion that the law, as regards these Exchequer hills,
may be simplified; they have therefore to propose
lf!t. That the principal of Exchequer tills he redeemable
out of the Consolidated Fund in thosecases in which the'
'holders can *demand 'payment of their bills in money,
or pay them in for taxes under existing regulations ; and
that the interest be payable also out of the Consolidatid'
Find. •

2d. That the Government be empowered, as at present.
to hum new bills in lieu of those which may be paid off
in money, the proceeds of such bale, however, to be
Owed to the credit of the Consolidated Fund. .

3d. That the annual renewal of Exchequer bills be
discontinued, the bi la running on from year to year,
with the consent of the holders, 'until cal!ed in for re-
n
ewal ; that the rate of interest be advertised annually,
and
that the bills be issued with coupons for the annual
interest.
5 ci
. YSTEN UPON IVHICH THE PUBLIC ACCOUNTS.
SHOULD DE 'KEPT,
Your carnmittee consider that it• is the necsssary
groundwork of any really important ithprovement that
1t 4111ot:thole
and, as
public accounts should be kept on
Tut,
eyiden, as far as practicable, uniform system.'
btu, patifi_c,6 giyee before them by competent witneeses-
kinpin• .15°!' thera that the commercial system of book
in the °`l them
entry, wherever it has been applied
acs regularity
has materially aided. in intro-
ducing order a
has facilitated the atilitritY in their financial transactions,
the accounts, and has pro-
inoied oorrAet appropria(:J
ppointect.to rz‘c'hue;..k.The Inspector of the
Audit Coffins a
theii appropriation of the
naval apd military.expenditure' borne testimony to
the effichnny of the system accountassu in operation in
the Naval Department, to the
whillintlitc during the
which it has stoed the test,of great e7e"iul maw:Ai' in'
late war, to the punctuality wi h
counts of receipt and, expenditure have been an .'lll4l
to Parliament, arid to thefacilities which the•ei.rteise enhted
afforded in conducting the concurrent audit of 4AaelurikAl,
eXpanditufi.
Your committee tbetefore-carriktly reclincnend the
extension of that sYsternto. the accounts. of the public
'departments in wbfch it hag liot yet been adoptqa,
and ihd prnvision' of a security) through' the. control
of the Treasury, for the Ill'alirtellinea-‘of tbe system,
on a prinCiPte ,of uniformity, when it sball have keen
pceraqy eoailiehed.4‘ " yunr celntnittee feel aietred
,whatever ...neel.l.4eogrities be sensed
for the- faithful appropriation of the public money,
they will be incomplete unless they are accompanied by
a syatera of pubtio acconnta founded en' the principles
they have atiggest,eci '
•

OT' Tag, APPROPRIATION CHECK, AND
PRESENTATION OT'. AUDITE,D ACCOUNig. PATZIA4
MUT.
The ,coileurtent ijulik sp:ktiPilition otecii,, first
applied to the eX,pendktilre of 'Ode grants for naial
vices in 18. e, and snhieg;iititly extended to,the iseveral
army grants,, was a new seenrity introCo cad for ela‘uring
the strict appropriation'of the grants' of, Partiarnent:
was intended to limit the discretion cf- thn respotsiblu
departments of the executive government in which it