The Sun.
London, England, 1857-02-21 00:00:00

had been given to General Gaccoigne, who had
the command of the camp at Colchester ; and, until he
had received his report he coul,l not state anything
decisive. It would be a bad precedent to afford relief
in this instance from the army fund, and to break
through the army regulations, in reference to soldiers
marrying. He saw no reason for their marrying—
#aughter)—for they were very young men, and were
only enlisted for 10 years.
BILLETTING SOLDIERS.

but it was produced much more by the visitation of Provi-
dence. We had had three bad harvests, and we bowed to
the decree of a Power before which even Parliaments must
with humility bend. Bat this is the first time that a Chan-
cellor of the Exchequer has come forward with a plan
creating an enormous and increasing deficiency—(cheers)
—and that, too, in the face of a House of Commons, the
cardinal point of whose financial policy his beea through-
out its now long'existence to accomplish the extinction of
the income tax. So that we have brought oar finances
to this position,—that the year 1860—when the policy of
1853, on which the hope and expectation of Parliament
and the country have rested for the extinction of the in-
come tax, was to have been accomplished—is to witness
not its extinction but its perpetuation,
and instead of
receiving that relief from taxation to whirls wo bave
been looking forward with such anxiety, we an then to be
called upon for new taxes to meet a deficiencywlsichmay
amount to not less than 10,C00,600/. (Hear, ban )I ) am,
of course, perfectly aiding to admit that fi,geres of this
kind must be received with considerable indalgnme on beth
sides of the house. (Hear, hear.) There may be counter-
vailing causes which to a certain extent may alter these
calculations; the consuming power for instance; on which
so much of our finaucial system very properly
rests, may
increase, though we most remember that it isat the pre-
sent moment a consuming power at high pricer, and there-
fore we must not rest too much on that. But admitting
that your customs may increase, this groat fast remains,
that in the year 1860, if we pursue the financial plan intro-
duced on Friday night to its consequences, itatead of wit-
nessing the extinction of the income tax, we than have to
grapple with a colossal deficlency. Uudler Wire drawn-
stances I thought it my duty to place en the table tho re-
solution to which I am about to ask the home to agree.
Let ns see what, if I am right in my estimateof the con-
sequences of the plan of the right hon. gentleman, would
be the wisest and most temperate course to adapt. If the
home really believes that we are menaced by
deficiency,
what can be more judicious than to proceed neon this ex-
cellent principle of finance— which, indeed, oust be the
' basis of all sound financial schemes—to a,ljcst the esti-
mated income and expenditure in such a manner as is best
calculated to prevent a deficiency, and then it pursuance
of a policy to which I believe this house is
pledged to pro-
vide in the best manner we can for enabling ?arliament in
the year 1860 to remit the whole of the income tax, as was
promised to the country in 1853. That is the object of the
resolution which I placed on the table; but no Boner had
I given notice of this resolution than a moat extraordi-
nary change occurred in the financial world. The right
hon. gentleman the Chancellor of the Exchequer was at
the table--the house being in Committee of Supply—
moving a vote to which there was no opposition, and he
took advantage of that opportunity to offer to the house a
supplement to his financial statement of the preceding Fri-
day, introducing elements, in my opinion, entirely incon-
sistent with the statements, arguments, and plans which
he had provious!er laid before u'. I am not complaining
of this; the right hon. gentleman has a right, of course,
to make two financial statements if ho chooses—there have
been Chancellors of the Exchequer who have made even
more--(langhter)—l am only putting before the house a
narrative of these incidents. And what was the right hon.
gentleman's statement of Monday night? It was appa-
rently addressed to my resolution, which was then in the
possession of the house. He said, very frankly, I own,
I can answer the motion of which notice has just been
given at once," and, mentioning mo, he said I seemed to
fear a great deficiency in the years 1858-9 and 1850-60, but
that there was in reality no fear of any such deficiency.
" I will tell, you," said the right hon. gentleman, " what
are my estimates of the expenditure for those years" (he
might have told us on Friday, but that is nothing); "aod
I will tell you bow I mean to meet that expenditure."
his The
for
those gentleman,
years,
andwith
they
great
varied frankness,very gave us
but not in any degree so as to affect my argmument con-
, from
the figures which I had assumed before he made that snp-
cplluesniroenntwarays
jsutastte, moneneta,
clheayvienagr,athvearset fore,if y first
deficiency.
"But,"
says the right hon. gentleman, "there will be no deficiency,
because we aro going to adopt the expenditure of 1853-1."
No doubt if the Government bo going in 1853-59 to adopt
the expenditure of 1853, that is an important element in
the consideration of the financial plan. But if that be the
case, although I do not complain for a moment of tho pre-
vious criticisms into which I bare been betrayed by the
right hon. gentleman making his statement on Friday—
which I considered to be a statement of authority—Incon-
sistent with that which he made on Monday, I say if that
be the case, and if we aro to take the statement of Mon-
day, as I do without complaint, as the authentic state-
ment, what are the irresistible inferences which we are
to draw from it? In the first place, one naturally asks if
there is to bo that vast reduction in 1858-9 which is to
prevent these enormous deficiencies, what is the reason
that the reduction has not some effect in 1857-58 ? (Hear,
hear.) Let us know what are the causes which will enable
the Government in 1858-53 to make a reduction of which,
according to the representation of Friday, no hope was
held out for 1857-58. (Hear, hear.) If I go through all
the beads into which the Chancellor of the Exchequer ela-
borately analysed the estimates which had not been intro-
duced by their respective Ministers on Friday--if I go
through his analysis of all the causes of excess of expendi-
ture in 1857-58 over 1853, I cannot find—except in that
poor item of " unfulfilled contracts," for which a large es-
tanate, including gunpowder and timber, would be
500, 001.—that any of them, according to his views, would
be less influential in 1858-59 than iu 1857-58. But now,
after that statement of the right Lon. gentleman, I want
the house to consider this :—What would bo the effect if in
1857-58 the Governmet t would do that which they say they
aro prepared to do in 1858-9 ? Let me show to the house
the effect of that upon our income and expenditure. We
are to fall back in 185i-59 to the expenditure of 1853-54.
Now, the gross expenditure of 1853-51, as stated by the
Chancellor of the Exchequer on Monday, was 55,810,001/.
Add to that the increased charge of flu debt, 716,0001. ;
a 1(1 the Exchequer Bonds to bo paid off in 1857.58,
2,000,0101; add also the Sinking Fund for 1857-53,
250,000/., and the total will be 58,6136,000/. That is an
estimate for 1857-58, drawn up on the expenditure of
18,3-54, which is to be the basis of 1858-59. Now, this is
very important; and let me press it therefore upon the at-
tention of the house. Having ascertained that we might
have an expenditure of 58,836,0001., let us see what the
the income of 1857-58 would be on the supposition that
the income tax was not increased beyond 53., and that
there was no increase in the tea and sugar duties. The
income estimated by the Chancellor of the Exchequer on
Friday was C 6,361,000/. From that deduct for the 2d.
on the income-tax, 2,000,000/. ; deduct also the tea
and sugar duties, which I take at 911,0001., and we have
then the income for the ennui- g year 63,455,0001.,
against an expenditure of 58,836,000/. We thus should
have, according to the new position of Monday, a surplus
theat end of the year of upwards of 4,000,000/. in the ex-
chequer without adding any now taxes whatever, without
increasing the income tax, which ought to be only 5.1. in
the pound if we adhered to the old system, and without
adding to the taxes upon sugar and tea. The right hon.
gentleman, then, by the statement which he made on Mon-
day, has opened a most interesting subject of speculation
which I ain sure every hon. member must appreciate.
(Hear, and a laugh.) Now, how do we stand in this mat-
ter ? because it is exceedingly' difficult to deal with a finan-
cial statement which has apparently two colours and two
forms and aspects. If the statement of Friday be the au-
thentic statement, wo aro about to be landed in a great de-
ficiency, and there is no hope whatever of seeing the end of
the income tax in 1860. If, on the other hand, the version
of Monday ho the orthodox version we not only get a re-
duction of the income tax immediately, and we not only
have no recourse to those indirect taxes which have created
so much odium out of doors, an 1 which are so much opposed
here, but we have a fair prospect also of getting rid of the
income tax in 1860 altogether. But it is impossible that
two results can be more different. (Hear, hear.) If wo
are to adhere to the budget of Friday, it's deficiency ; if, on
theother band, we aro to fall back, as we were told that we
were on Monday, to the expenditure of 1853, we have be-
fore us the most rosy prospect that a financial Minister
ever introduced to the House of Commons, especially at the
termination of a War. (Hear, hear.) I should think,
then, that a debate upon the scope anti tendency of these
financial propositions is not at all irrelevant or unneces-
sary. Now, I know it will be sail that in the estimate
which I have offered there is an element as regards the
last two years of the right honourable gentleman's plan,
assuming that ;he really adopts the expenditure of 1853,
which I emitted ; but I assure the right honourable
gentleman that I have not forgotten it, According to the
estimate of income and expenditure for 18-1 and 1858
twhhaitchthtehree
drawn np on the basis of the expenditure of 1853 I have
shown to the house that without any increase of taxation
whatever there would actually be left in the exchequer a
swOrtlpllausbeexlceaftediinntghreaCe°q°ll;e7 tahbaotuitstlitoa t
sum
right hon. gentleman will obtain by that large portion of the
war income tax which is not yet paid. That is the exactaum
probably which would be found as surplus in the exchequer.
Otherwise, without the war income-tax for 1857-58, the
expenditure and income would exactly balance themselves
you took the expenditure of 1853. The right
tb,e expenditure of 1853 there is an item of vast amount
BhuoPnP. °glien ttlheamtil, however, may say to me, " But if you take a
whieli Will enter into sagealculation of 1858-59 and 1859-
in 1857.58—1 mean the charge
taia war debt of 1,500,0001. There-
for the sinking fund for
1857-58 did balance
fore, if the income and expenditure :2.f.
CO—which is hot. inclu
Lo war income
themselves rafter that surplus derived from
tax wars deducted thorl) *meld be a deficiency ox Nee',
upon those to o 4i0115' 4 \-1V Bi"."ltgCant that, 'firant
you established the expenditure of 1653 ati the Basle of your
operations and if on did All thatl have sketched out; that
you would find a deficiency iii corisequence4 of the sinking
fund for the war debt of 1,500,0001. for the last two +ears of
the right hon. gentleman's plan. But remember that we
surpluses and
eollor of the Exche-
quer's have hi the dicliequei: a WOO upwards of 4,000,000/.
I do not mean to say that that 4i000,000/, can legally be ap-
plied at the present moment to the liquidation of the sink-
eesl4:h
is :—lelere you
sink-
ing fund, or even to the payment of the exchequer bonds of
Monday
yf
1853, carry on
butatevseere,
ba-
lancesth e lai
ist twoto rigidy e ar st:o
permit The la
of
the
c respectingha
queer; applying it without tippertling to Parliament,;
can,what b
yt the
fallingeff e
back
k theto statementthe esestablishments
iosfh
mMeonntds
and with a large surplus at the end of the current year of
the affair§ of the totinirY Without any new
upwards of 43003,000/. in your exchequer ; but in the last
two ears of the right hon. gentleman's plan there will be a
deficiency ill conseqUenee of the action of a Special sinking
fund for tho liquidation of the war debt, But when we
recolleet that that large balance has been ebtained by war
taxation in a time of pe4ce / do not see ally the Chancel-
lor of the Exchequer, instead of imposing new and vexa-
tious and edieue taxes,upon the people, should not come
forward and ask, the House of Oemmoas whether in equity
that sutplets bf 4;000,000/1 might riot be Spplied to the
liquidation of the war debt. (Hear.) In that cage, accord-
ing to the statement of Monday, the right hon, gentleman
might carry us through the three years of his scheme with-
out increasing any of our taxes, and might he enabled to
deeloVith the income.tax by th
,d of the terminable an-
+ snail other moans as might th .d •
nuities en, ee. , , en provi entiaby
arise. (fear.) What a different plan nay t,:s; ralaa:.faaliQr .
of the Eachequer adopted ! The Chancelor of the Exche-
p_ ,
ei ill this state of the finances; comes forward and pro-
poses new taxes: The Chancellor of the) -laoh
aqUer enters
into an essay as to the comparative merits of direct and
indirect taxatiop—a barren subject for this house and the
country, for whatevei their relatiVe inbriOi mak be,it is
clear that our revenue must be derived both from direat
and indirect taxation, and we must appeal to both to a very
large extent, But the Chancellor of the
.Exchequer finds
himself in this position, according to the I"riday view, that
he comes forward to propose the most odious of direct taxes
and the most odious of indirect taxes. (Cheers.) Sir, with
regard to the income-tax, I am not on.) to show that this
house will resist a fair introduction of direct taxation in
our system, but direct taxation has never taken a more in-
tolerable form then in the income tax, (Loud cheers.) It
has been condemned by the voice of the country and the
decision and policy of this house. I aced not enter into
the catalogue of its enormities—that it is unjust, unequal;
and inquisitorial. There are very few who have listened
to me who have not had personal proof of therm qualities.
(A. laugh.) These are grievances which are not to be borne
in time of peace and with the income tax as a permanent
feature of our national system. In a national emergency
these grievances are not felt. At such a moment private

omission of provision for the Persian war. I will not
dwell upon the fact that this country is at present at war
with distant countries, but that in these estimates no pro-
vision is made for the expenditure to which those wars
will lead. lam still willing to believe that we are to have
peace with Persia, and that we are not at war with China.
It is, of course, impossible entirely to shut out the know-
ledge of existing circumstances and the consideration of
their influence upon our finances; but I will, as much as
may be, remove them from the question, and will, if pos-
sible, confine myself to the financial fuels and the financial
speculations which have been introduced to the house by
the Chancellor of the Exchequer. In the year 1857 58,
then, we are to have an expenditure of 65,475,000/., with
an income of 66,365,000/. The house will recollect that
one of the most important items of that estimated income
accrued from the income tax itself. The right hon. gentle-
man besides the 7,000,000/. which ho will obtain if we
raise the tax 2d., will be in the enjoyment of 4,250,000/.
sterling arising from the produce of the war income tax.
Now, sir, having stated to the house the expenditure and
income of 1857-58, I want to put before it also the income
and expenditure of the year 1858-59, the second year of the
right hon. gentleman's plan. As regards the income, I
have taken as far as I could the figures which were
afforded to me by the right hon. gentlemen. The house
will understand that any figures that I read, unless they
have been furnished by the Government, I offer, of course,
with diffidence; yet in my general conclusions I havegiven
so large a margin that if my views are right in the main
the results will not be affected by any inaccuracy on the
score of figures. This, then, is the estimate for 1858-9,the
second year of the right hon. gentleman's plan :—He took
for 1857-3 the estimated revenue from the Customs at
22,850,000/. This calculation suppeseel the duty on tea to
be ls. 7d. per lb. instead of le. 9d., the rate for the current
year; and it reckoned the duty on refined sugar at 18s. 4J.
per cwt., i• stead of eoe But in 1838.9 the duty on tea
will be 2d. less per lb., and that on refined sugar Is. Bd.
less per cwt. I, of course, have the greatest difficulty in
forming an estimate of our probable loss on tea and sugar,
in the event of the Chancellor of the Exchequer's proposi-
tion for 1858-9 being accepted. I therefore offer, unaffsct-
edly, rather a suggestion than 'a formal statement of
figures ; but I have estimated that the loss may be on tea
46a,000/., and on sugar 442,0001., making together a total
of 911,000/. I take the Customs, then, for 1859-9 at
22,339,000/. ; the Excise at 17,000,0001. (being the figures
of the right hon. gentleman) ; the stamps I take at the
same amount as in 1857-B—viz., 7,450,0001. ; the land and
assessed taxes at 3,150,0001. ; the income tax, reduced to
7d. in the pound, I take at 7,000,000/. ; the Post-office at
the same sum as in 1857-B—viz., 3,000,0001.: the Crown
lards at 265,000/. ; and the miscellaneous revenue at
1,200,0001. The total income from these various sources
will be 61,404,0001. [The Chancellor of the; Exchequer
here made a remark impunging the accuracy of the right
hon. gentleman's calculations.] I think that my figures
will be found to be correct, but I:shall not stop to go over
them again at this moment. Now for the exoenditure of
1858-9. I take the estimated charge for the debt at
28,550,000/. This, of course, ought to include the interest
on the whole of the war debt ; but there must be deducted
from this charge the interest on the 2,000,000/. of Exche-
quer-bonds, amounting to 70,0001., which will make
28,480,0001. Next, I take the charge on the Consolidated
Fund at the same scale as in 1357-B—viz.' 1,770,000/. ; the
Army I take at 11,1-23,0001. ; the navy at 8,109,000/. ; the
packet service at :365,0001. ; the civil service at 7,250,000/. ;
the collection of the revenue at 4,215,000/. ; and the super-
annuations at 475,000/. This gives a total of 62,889,0001.
There are two other addition d items, the first of which is
the 2,000,000/.of Exchequer-bends payable in 1858-9; and
the sum of 1,50000/ for the sinking fund in the same
year. These items added to the former total produce an
aggregate of 66,389,000/. I ought to state why I have taken
the army, the navy, and the civil services at the same
figures as the right hon. gentleman reckoned them for the
year 1857-8. The right hon. gentleman, when he made his
financial statement a week ago, in applying himself to the '
discussion of the great estimates, entered into an elaborate
argument to show us that no very considerable reduction
could be looked for on these items.
The CHANCELLOR of the EXCHEQUER—That is
this year.
Mr. DISRAELI—I beg the right hen. gentleman's par-
don. He will have an opportunity of following me in the
debate, and it is not necessary that ho should interrupt
me. But, unfortunately, on Friday last the whole tenour
of his argument was that on the whole of these items—
the army, the navy; and the civil service—the increased
charge was of a permanent character, because he compared
the estimates of 1857-8 with those for the throe years im- '
mediately before the war, and stated that the current year
is theporiod of transition from war to peace. The current
year has witnessed a vast reduction in our expenditure.
But, our present estimates not having been laid before us
by the Minister of the Crown previous to hisfinancial state-
ment, I will take the liberty of introducing them now in
detail, and show from analysis the excess of the present over
the corresponding estimates in the time of peace. I will
prove, in fact, that there is no ground for reduction with the
exception of one item, on which the right hon. gentleman
laid very little stress -and I believe rightly so—viz., the
unfulfilled contracts. He analysed the expenditure under ,
six distinct heads; and, though I will not weary the house
with minute detail, I must recall this circumstance to the
right hon. gentleman's recollection, to show that his argu-
mentscannot apply to 1857-8, the ensuing year. Indeed the
whole or his reasoning tended to convoy to us the impression
that, exclusive of the unfulfilled contracts—to which he
attached but small weight—the principle of reduction could
not be carried out to any appreciable extent. With regard
to the navy, having given us five great items of excess, the
right hon. gentleman said that one of them was for an in-
crease in the marines and coastguard. This, he told us,
was the result, not of a war act, but of an act passed in
time of peace. He next informed us that the price of pre-
visions is high—rile of the other causes of the increase ;
thirdly, that the scientific veto was augmented ; that the
fourth cause of additional expense during the ensuing
year is the item of unfulfilled contracts, which I have al-
ready mentiono,l. We have very recently obtained some
information that will guido us in ascertaining the amount
of the last-named extra charge, and we may, I think,
safely conclude that it will not be very considerable. Then
the right hon. gentleman said that the vote for steam ma-
chinery and coal would be grez.ter than before in conse-
quence of the progressive introduction of steam power into
our navy—that owing to this circumstance we must look
to an additional expenditure, permanent in its nature.
Then came the increase in the factories in which to rep dr
our machinery, for enlarging our docks, and for the exten-
sion of the packet service. Now, none of these items for
next year, with the single exception of that for unfulfilled
contracts, is for purposes of a temporary character. There-
foee I do not suppose that the right hon. gentleman antici-
pated the possibility of making any reduction upon his
estimates. Continuing the line of remark to which ho has
called my attention by his interruption, and coming next
to the army, hero again we had from him the same descrip-
tion of analysis. And the house will observe, whether we
look to the artillery branch, to the creation of new military
trains and a new hospital corps, to the item of 223.0.01. for
warlike stores (the result of unfulfilled contracts), to arti-
ficers' wages, or to education, works or buildings, that the
result of the analysis was that, in the right hon. gentle-
man's opinion, reduction was not the meals by which the
financial arrangements of the country could be carried
into effect. Threfore I believe lam perfectly justified in
taking for the expenditure of 1858-9 the same estimates as
he proposes for the ensuing year 1857.8, and in neither
case adverting to the existence of war, or to the possibility
of fresh misconceptions, which might lead to an increased
expenditure. The consequence of that will bo that, with
an expenditure for 1858-59 of 66,300,0001., and an income
of 61,000,0001., you will have an apparent deficiency of
about 5,000,0001. sterling. This, then, is the result of the
second year of his plan. I think I may fairly ask the
house whether this is not a result which should at least call
upon us to reflect, and whether, before wo sanction finan-
cial arrangements whioh, upon the face of the statement of
the right hon. gentleman, threaten such an issue in the
second year of his scheme, it does not become our duty,
previously to going into Committee of Ways and Means, to
examine the whole scope and tendency of the plan of the
Government, and clearly ascertain its probable effect 1 But
if the second year of the scheme leads to a deficieuey of
5,000,000/., what becomes of the year 1859-60—its third
year, and the year, too, which is to witness, according to
the general idea of the house, the extinction of the income
tax'? All the causes of deficiency which prevail in 1858-
59 equally prevail in the ease of 1859,6:'§ with the addition
of another reduction of the duties on tea and sugar: • Sir,
I shall not attempt to estimate exactly what will be the
amount Or the decoild reduction of tlioo duties; bat the
house will see that the general effect of the right hom gen-
tleman's plan would be that nit the end of its third year we
should And An at,dumitlated lieficiendy, according to his
stathibent of Friday last, about 10;000,0001. This is what
would hapjion just
off
We have arrived at the point when
We ought to trace off the income tax. prodticing 7,000,000/s
sterling. That appeared to me to be a very grave position
of affairs. (Hear, hear.) who *ohm be the oondition of
this canary iry in the Year 1860 at the termiiiatielti of tile
right hob. gentleman's plan, it 'fourid itself with an aeon-
mtilated deficetick of perhaps 10,000,000/.3, and at th,e sane
time Were asked te renew the income tai t all kfioW
what would bo the inevitable consequences of a proposal to
renew the income taxi withaeonvietion in the country that
it was to Near a Dernianentreatire of oui finaiicialsjtstem I
vellture to say—as I said the other night— that every con-
troversy which has beeri appeaSed; though not settled, by
the belief that thA iiientht tat was to d'eas6 in iBtile wdttld
be reaived. (Hear, hear.) Every class, every section
that is now under the belief that it entered into a compact
with the Chaneello of the Exchetier of thAitiine *gold
come forward te demand the fgason Why that compact
was violated, (Fear, hear.) Yon would have one body
of inen who would say, " It was because we were told
that the income tai wlul'oeitse in 1860 that *e Submitted
to the pueceisied duty.- (Hear, hear.) The Irish mem-
bes'—l believe the income tax is not very popular in Ire-
land—(hear, hear)—naturally, remembering tho Vecullar
circumstances under Which th6y were drat led into this
ferY properly donee forward and Airy "We
aeaellieseed in the extension Of the initonie hi
tolreland
because we Were told That it *as part of a system which
securecisata extinction at a particular period." (Hoar.)
As for England itself we can form some ulea by the agita-
tion of the last autumn of the, r;haiaictef of the questions
which would arise kiiike. Graduated scales, distinctions of
assessments—the old quarrel between precarious and high
incomes--whether trade Profita are to r6y as high
a rate as rents de4ved rrefii kear property or the dividends
of the nublie creciitor—whether professional remuneration
is to he taxed at the same rate &en AS, trade
.profits—
who are to be exempt—these are the queatiolis which you
would then have to discuss,; and under what circum-
stances ApParently, according to the financial state-
meht of the right hen; gentlemau, with a alastaCceuittlated
the tt‘ll.ewe has ca hthear ht o lfidatth arrive.ear
ber
rassrnent, and instead of the prospect of the extinction
which the right hon. gentleman introduced
or even mitigation of the tax§
y
the Very ir4oesibilita'd its
: •
Fahiont.:_iimgeiecanitcol eaalluni
extinction, seemed to me to be insured by the policy
which was very pWopeulahravien
on
was
supported Friday
nigbhyt,the groat body of gentleman athisn
house,
u financialn se to,
systemnoticewhch
ken it ranged over a wider territorly and
n tnhi:tn
wohpipcohs
the
basis right
ef bon.
that gentleman
scheme
wa was
occupiedt
he extinction
e other
That was a prospective system also
but the
income tax,
and every measure of importance connected with it
some relation to the year 1860, Ix t which time that e
nc-
was to take place. But the new scheme of prospectivext
finance has a peculiar and distinctive feature of its own,
not the extinction, but the perpetuation of the income tax'
Wo have before in this country suffered under deficits, as,
I dare say, many hon. gentlemen remember. They have been
a cause of great anxiety to this house, and of deep despon-
dency in the country generally; but at any rate we can say
this of them—that they were the consequence of misma-
nagement anti misfortune. They came unexpectedly, they
accumulated gradually, and ,though they assumed at length,
from their vast dimensions, a formidable and menacing
character, still everybody was obliged to allow that, how-
ever deplorable such a result might be, it could in a great
degree be accounted for by inevitable causes. We had a
deficiency in the year 1841, which no doubt was to be traced
iurAome measure to a reckless reduction of taxation in 1839;
of the

In reply to Mr. COWAN,
Sir G. GREY said that notice would be given of the
clauses to be introduced into the Mutiny Act.
NEW WRIT.
A new writ was moved for North Leicestershire, in
the r )om of Lord Granby, called to the Upper House.

RETURNS.
Several unopposed returns were ordered.
WAYS AND MEANS.
THE BUDGET.
The erder of the day for going into Committee of Ways
and Means having been read,
Mr. GLADSTONE presented a petition from a com-
mittee of West India planters and merchants, expressing
the surprise and disappointment with which they bad
learned the intention of her Majesty's Government to pro-
pose the continuance of the war tax upon sugar. They re-
presented that if the proposal should be agreed to they
would be subjected to serious loss, that the supplies of
sugar would be discouraged from coming to this country,
and that the sugar-market would be annually disturbed for
a series of yeais. They therefore prayed the house not to
adopt the scheme of the Government.
On the question that the SPA'AKER do leave.the chair,
Mr. DISRAELI rose and said—Sir, before the house
proceeds to consider in committee the financial arrange-
ments of her Majesty's Government I ask them to adopt
the resolution of which I have given notice. In offering
some statements and arguments to the house, which I hope
may persuade them to adopt that resolution, it is nay in-
tention, so far as I can, to conduct the discussion in that
temperate spirit which I think discussions of this nature
essentially require. This is a financial debate, and so far
as I am concerned I shall not introduce into it any topic
which may in any way lead the house to depart from the
consideration of those financial details which are now before
us, and a sound judgment upon which appears to me to be
of the utmost importance to the community at large. We
have, and always will have, great differences of opinion in
this house on political subjects of importance, whether fo-
reign or domestic. I dare say that differences of opinion will
always exist in this house as to the manner in which our
foreign relations shall be conducted, and there will also
be differences of opinion upon subjects such as that which
occupied our attention last evening—namely, as to what
classes shall be the depositories of political power in Eng-
land ; but there is one question upon which there ought
not to be a difference of opinion in this house—namely,
the importance of maintaining our finances in a whole-
some condition, and of taking care that the Government
of the country do not impose taxes which are unneces-
sary. Now, I willingly and at once approve the course
which has been proposed by hor Majesty's Government
with regard to the war income tax. Since I have devoted
attention to the subject I have always considered that the
existence of that impost involved a public grievance.
Considering the spirited manner in which the people of
this country supported the Ministry during the late war,
—considering the generous and almost lavish manner in
which they placed their resources at the disposal of the
Government in that arduous struggle.—l think it would
have been a groat political mistake if the people had dis-
covered that they were saddled with a heavy burden which
did not in its origin cerise from their own free will, and
which, according to their understanding, had been ob-
tained almost by a clerical error in an act of Parliament.
I have no doubt the people of this country are prepared at
all times to endure such burdens and to make such sacri-
fices as they tbink are necessary for the public advantage;
but if they make a sacrifice they require—and I think it
is not unreasonable that they should require—that at least
they shall make it of their own free will, and that it shall
be an act of their spontaneous devotion. Now, when we
doubled the income tax to carry on the war there is no
doubt that the whole community heartily acceded to the
proposition. They agreed to double the income tax in
order to carry ou the war, and they consented that the in-
creased impost should continue for a year after the war
had ceased. That was clearly understood throughout the
country, and by all classes of the community. The lan-
guage by which that burden was entailed upon them
for another year was introduced into an act of Parlia-
ment of comparative insignificance, not into that by
which the tax was doubled, and it certainly was not
at the time understood by the great body of the people
that the consequence of our legislation would Le
not merely to double the income tax, but to enfor.e
that double tax; granted for carrying on the war, for
two years after that war had ceased. When the people
discovered this they were surprised and indignant,
and it became in my mind, not a financial but a political
question—a question whether it was politic to allow the
disposition of the people, which during the war bat been
so ad mirablo, to be soured by such circumstances, and
whether, if wo continued pedantically to adhere to the let-
ter of the bond, wo could in future emergencies appeal to
popular feeling with equal success. Considering that this
was a political and not a financial question, I deeply re-
gret that her Majesty's Ministers should have permitted
that agitation to exist which in the autumn did prevail on
this subject. I know it may be said that Parliament was
not sitting at the time, and there was therefore no meaesof
communicating to the country the disposition of the Go-
vernment to evince their sympathy for the spirited man-
ner its which the people had supported them in the war by
conceding to their request of exemption from this doubled
tax. But, though Parliament was not sitting, there are
other means of communicating to the country the intent ions
of the Government, there are morals either by a speech or
by a letter, by which we know that public opinion can be
tranquillised or can be agitated, and I regret vary much
that her Majesty's Ministers did not think it consistent
with their duty to coinmunicaae to the public during the
autumn the intention which they have since announced in
Parliament. The noblelord the First Minister, for example
went down to ILnchester because he wished to express to :
the country his opinions upon an important political treaty.
The noble lord might when this agitation had assumed a
disagreeable character, when not merely a grievance was :
complained of, but the very principles upon which the tax
was to be continued were discussed, have availed himself
of similar machinery, and havecommunicated the determi-
nation of the Government to redress this public grievance.
However, we were disappointed in that respect. There was
another opportunity at which that communication might
ar-
ve
lwvahavenaaannms
oc beeneleuon
:st graciouslyoo;dlualtindhndi
tsnlineoiueSpeech
dpnes
wouldmbee
ccleahudrefeenhr:
:atremh:
have
Ittbehowdreno. war
nTs
moatho, air; thfoatnhte
gracious
tpoi
announcedppi
aoetnr opportunity
uni opening
tsoiootnfhygPaia.
lso
seistesubject.re d
_f w
a I s
dealingen i mentioned ed
withthat
a what I
strictly the
first night of the session that I should ask the opinion
nofowthesahy, outsbeautpreotnh
political question, and not with a financia one ' • that I be-
lieved there was a great public grievance which ou to be
redressed ; and that I thought it advisable and proper that
the redress of that grievance should take placeimnse-
diately after Parliament assembled; and that, as the Minis-
ters themselves did not offer ouch redress, I thought it was
consistent with the duty of a member of Parliament nots
connected with them to make the attempt. In so doing it
was not my intention to interfere, nor did I consider that
I in any way interfered, with the financial arrangements
of the Chancellor of the Exchequer. I did not ask him for
his budget; I did not ask him for his estimates, If the
Government had, on my motion, taken the opportunity of
announcing their policy with respect to this grievance, they
would net have been pressed for their financial measures ;
they might have brought them forward after the expiration
of an interval of a month from this time. However, those
measures are before the house, and it is necessary that we
calmly and accurately discuss their effect. f3ir, I have 21,3
wish at any time to indulge in prospective fineneta .i. agree
that it is more convenient, I shottld say tiost convenient,
in discussing the financial position DI the country, to con,
fine ourselves to the current year, whose fortunes Vve are
endeavouring to lay before the house. (Hear.) But On the
present occasion,
remind the house ;L • sin commenting upon if I prospective finantee I must
ae a
which is, it its character and proVlsions, essentially pro-
f_P_7" (Hear, hear.) It is not I who have introduced the
Pt
eepective element into our debates on this subject it is
for e t Chancellorhe house
of
a theExchequerrrpectre budget
himself,
foundedwupon
hasho
hon. gentleman thepan=
Other budget eminently
mempbreors prospective—vie.,
University the tha t
of
o f the right
Oxford
(Mr. Gladstone) for the year 1653. The Chancellor of the
Exchequthere, tti Other night, did not confine his
ken to
only upon that, On the commencementcontrary, and cal of the ensiling year.
butthe right hon, gentleman, hot '
to finances fora position
night—the night on vehrcelll;:;cl of three
sketched the posit' also upon another occasion,
of. the Exchequer with re-
gard
statement,
undertheutahme
name
iugfh th
15eanent made ant hisßu years.mfimrsetd uti
pOd °p
histilul4vctieljaw) aysl
adopted I shall be able to doand said,
that and
in the course of the next threegiesars." The"ri other things
Ifhint hy
übpilagn is e n
this and
tleman did more than this.
not merely as regards his schemes,plani3. is protpecrite, not
pockets ; because ho proposed br takes also
as
l'eg
levied for a period ofpatuuhree,r
time,Malt our
slid which are oven to
yeitrst, a_ea 'which arc to be
Therefore, those who
vary during that s
about to should find fault with the motion whic
in-
troduce to the notice, and I hope to the tecacem [i of the
p ose that
house, on the ground that it interferes prospectively with
the finances of the country—though I do iio stt
upon mature reflection frach an objection will bre
urged—
must have forgotten the budget of the Chancellor of the
Exchequer, and the nature of the financial arrangements
which we now have to discuss. It is, I repeat, the Chan,
seller of the Exchequer who has, by what hn tans his
" plan," introduced the prospective element into our i
11 11:44:is utterly
ucupsosnioteshe, tc.lraint
giesmuettnetralywibmicphoshsiohlpetotpoofto
impossible to offer any critictsm ttn wa the schemes which
he has submitted to our tieti'7,, unless we consider their
bearing not merely upon the present year, but also upon
the subsequent years befare the period arrives when, as we
had hoped, the inco'Ae tax was, according to thealantge-
ment of 1853, Ihavewhich thewo
general el •
~Jet ions to offer to that plan upon k
ric
h
' dilated on Friday evening. I thin
hon. gentleman
to cease. Now, sir,
cause financial embarrassment, and to render the remission
thitt the inevitable consequences of that pla will be to
difficult but absolutely
of the income tax in 1860 not merely
impossible. These are the two great, objections which I en-
tertain to the financial plans of the Chancellor of the Ex-
chequer, as elaborately described to the house on Friday
night.
Now with permission of the house, with very little
appeal to figures, and that as su cinct as possible, I will
endeavour to show the grounds on which I intend to support
these objections
ment to make expenditure aryl-
I come •
recollect upon the estimates of
that the
which the ' hoffered for the year
right hon.
at this moment very little corn-,
1857_58. I ng t hon. gentleman
accuracy or
do not want to inguire captiously into the
wisdom of those statements. The house will
penditure for the ion'
ex-
gentleman estimated the _
which was to he year 1857-58 at the sum of 65,474,000/a
defrayed by an income of 66,365,000/.,
g a surplus revenue of between /.
I do not, this,etoo,oZO!,and ?,30,1100t0he
iu mentionioo

THE SUN, LONDON, SATtIRbAT EVENING, FEBRUARY 21, 1867,

grievances are absorbed in public patriotism, and no one
thinks of its injustice, its inequality, and its inquisito-
rialness, if he believes that the honour or existence cf the
country ie at stake. (Cheers.) In such an emergency no
ono criticises the tax; but just in proportion as it is ex-
empt from criticism at a period of public danger, the mo-
ment a period of tranquillity returns you will find a re-
action of odium to that degree that the tax is, perhaps,
more criticised than it deserves. (Hear.) But the result
is that income and property tax is the most odious form
of direct taxation, and I protest against that easy mode of
argument which prevails, and which holds that any per-
son who opposes the income tax is opposed to direct taxa-
tion. (Hear.) When I oppese it it is as the most odious
maine thearticlebe
Ex-
chequerou
e
article more than another which, in my opinion, the Chan-
of:l.form
i
eonerdn
looci.f d
is
efe
i,tsoth
gifetroaeEixdcoexatgbtciathtotaoenexq uponatio
inflict.
whichimpost?
t , w h
e what aht ini s
re
,te
Exchequer
ooftlyghartlinaltentottirnytecorfmerbeinwaittih:n.it
hlilfeo rthoefr
the tea duty. (Cheers.) I do not say this for the con-
despise and repudiate such ideas. When I had an oppor-
tunity my views on this subject were sufficiently shown.
I had not the glory of carrying the reduction of the tea
duties, but as the organ of Lord Derby's Government, I
was the first British Minister who tried to grapple with
that question. (Cheers.) I therefore express the deep
conviction of try own mini on the subject, anal I say that
tea is the very article that the Chancellor of the Exchequer
ought to have dealt with, and that the mast odious of
direct taxes and the most odious of indirect taxes are not
the sources of revenue that ought to have been selected
when in the face of the papers I referred to to-night it be-
comes a matter of controversy whether any new taxes at
all are required. indeed it appears to me from the Chan-
cellor of the Exchequer's statement of Monday, which I take
from the observations of the right hon. gentleman to be the
authoritative one, that we should waste our time in criti-
cising the former budget. Well, then, if the Chancellor of
the Exchequer has really determined to fall back on the
expenditure of 1853, there is no cause for any now taxes at
all. Now, sir, I know that some gentlemen aro very much
alarmed at the word "reduction," and, Sir, unquestion-
ably rash and precipitate reductions, aiming at no precise
object, and founded upon no precise information, are the
most dangerous courses to which Parliament can ever have
recourse, and ought never to be sanctioned by this house.
But, on the other hand, it is certain that wise reductions,
aiming at distinct and practical objects, and founded upon
ample and authentic information obtained by experience
and research, aro measures which, of all others, deserve
the respect and approbation of Parliament— are the mea-
sures of all others which it is not only the privilege but the
duty of this house to sastain and originate, and are the
measures which are most entitled to public approbation
and gratitude. (Cheers.) When some gentlemen, there-
fore, are alarmed at reduction, I am surprised, and I am
tempted to recall to their recollection what is the reduc-
tion which appears to terrify them. In 1e'.52 it was my.
lot, as the organ of the Government, to accept the esti-
mates prepared by our predecessors at the moment we suc-
ceeded to office. In the course of a few months circum-
stances were very much changed. there were many con-
siderations of an alarming character. The political hori-
zon was clouded. There was great alarm in the public
mind that the defences of the country were not sufficient.
We had to consider that difficult question, and although
our Government was weak, we resolved to come to Parlia-
ment with supplementary estimates, the principal object of
which was to secure that this country should have an effi-
cient navy and an efficient ordnance. We came to Parlia-
ment—not, be it remembered, to a friendly Parliament—
but on our representations Parliament instantly supported
us. I believe I may say that the money entrusted to us
was skilfully and efficiently employed, and I believe that
no money ever voted by Parliament was more skilfully
and more efficiently employed. Witness what. took place
in our navy and in our artillery. But the necessary con-
sequence of the supplementary estimates of the Govern-
merit of Lord Derby was that when we retired from
office our successors accepted entirely the policy
which we had originated in improving the defences
of the country—a policy which they completed
in a manner that was deserving of all praise. More than
that, they enlarged those supplementary estimates, and the
consequence of Lord Aberdeen's Government following that
policy was a still greater increase of the estimates. The
estimates mounted after us to more than 2,000,0001. The
house will remember that when the Chancellor of the Ex-
chequer talks of reduction he talks of reducing the esti-
mates not even to what they were in the time of Lord
Derby's Government. He is not going to reduce them to the
sum they amounted to after they were increased by the sup-
plementary estimates. Sir, I hoee that hon. gentlemen on
both sides will well consider this question of reduction. We
have before us several very singular precedents upon which
the House of Commons has acted on this subject. 1 need
not dwell upon what took place in nl6, although it ma; be
well that hon. gentlemen should remember these circum-
stances. You had a King's Speech in which the estimates
were described by the Ministry as having been prepared
with the utmost regard to economy. The income tax was
then ten per cent. The country gentlemen came down to
Parliament, and protested against the income tax. It was
the country gentlemen who mainly terminated the income
tax in 1816. It was not, however, merely the country gen-
tlemen who protested, nor was it the precipitate action of
men who acted upon the impulse of the moment., and not
from thoughtfulness. The income tax was opposed by ma;.y
eminent merchants of the day, and also by the greatest mer-
chant that England perhaps ever had—Mr. Baring, the late
Lord Ashburton. He took the most decided course on the
subject. He was a man of singular ingenuity, but of a pru-
dence amounting to timidity. Ile was of all other men most
deeply interested in the maintenance of the public creditor
this country. And what did Mr. Baring say ? Mr. Bering
said, "You must terrninee this income tax entirely ; you
must listen to no compromise," for the Chancellor of the Ex-
chequer of that day was prepared to accept a reel action of the
income tax toy per cent. As to any plea in excuse for the
income tax that there was a tail of exponees left by the late
war, " believe me," said Mr. Baring, " that if you listen to
occupied war
Waterloghwtbe rt
w.)L!
by
yta:dtet
hoow:pnriohll
armies.
nibseoeevineeesur. rememberd. i.
wtiGs
garhpelphaeataa
dwyr
B.
ehlianairctt
increased
beAito:hrs.
aloea The
rtdi andn:b battle
aan:irsdf,
y
debt during the previous 12 months 67,000,0001., and yet
under these circumstances, Mr. Thrins was sanctioned and
supported by the country gentlemen of Eoglaed in demand-
ing the abolition of the income tax. (Hear, hear.) Oa
that occasion Mr. Baring declared—
" That it was impossible, as long as ministers could show
any tail of the war expenses that they would give it up.
If they could once get the tax fixed in time of peace they
would gain their object, and not a member of the house would
see the end of it. No one who bad the least experience of
the conduct of G ,vernment could doubt that, instead of
producing redemption of debt, it would produce wasteful
establishments and extravagant expenditure. It would only
be by ridding the country of the tax that Ministers would
be induced to practise economy."

Are not the opinions of such a man to have their influence
on us? (Hoar, hear.) What happened? On the 25th of
March the house threw down the income tax. In May the
Chancellor of the Exchequer came forward with a new
budget, and it was found that we could get on extremely
well without this 16,000,003/. of taxation. (Hear, and
laughter.) That is a very striking historical instance
familiar to the house ; but there is another instance that
occurred in our own time—au instance which very many now
sitting in the house must have tram witnesses of, but which
I am sorry to say almost every gentleman has forgotten. So
vast and rapid have been the events of modern times that
the recollection of what oceurrei in 1118 with respect to
thatmembers.memory
([Tear,but
n daycial
statement,
came
forward,
nut trusting,lending
cor-
rect, oven his Chancellor of the Exchequer to make the
fin
the Premiership and the First bto
it all the authority b
ie of
Lord of the Treasury. He
toll the house that there was a deficit, and that the state
of affairs demanded that they should be vigilant and watch-
ful. He then proposed that the income tax of 7d. should
bo raised to ls. Now, that was no slight proposal. Five-
pence did not then bring 5,000,0.01., fur my Irish friends
had not then the opportunity of contributing to the 'Ex-
chequer through this medium—(laughter)—but they will
perhaps permit me to say that if they support the financial
proposition of the Government they may rest assured they
will have to pay it for many a long year. (Cheers and
laughter.) The Government of 1848 wanted to get
3,500,0001. additional into the Exchequer, and their pro-
position was to raise the income tax to is. What hap-
pened? Why nobody listened to it. (Laughter.) The
Government wore told that if they wanted 3,500,030/. they
must find it somewhere else. The noble lord (Lord J. Rus-
sell) withdrew his proposition, and he got his 3,5J0,000/.,
in another way. (Hear, bear.) That was another instance
in which the house and the country by their determination
prevented an increase of the ineome tax. (Hear.) Now,
sir, lam for wise, not wild reduction. (Hear,) lam for
reduction with a definite object, founded on definite know-
ledge. Ido not want to confine my criticism to the mili-
tary and naval estimates. There is another branch of the
estimates which I think might be subjected to wholesome
criticism. Let us examine those estimates. Don't let us
attempt to do anything that would frighten the " oldest
inhabitant" from his financial propriety. (Laughter.) We
are proposing no measure which will be hostile to public
credit ; but, to my mind, we are taking a course which
will confirm public credit, and which will not add to the
—lens of the people. (Hear, hear.) Let us do of our
buy.- -es did in 1816, and as we ourselves did—though
preteceiesa. it—in 1848. (Hear, hear.) Let us sup-
we forgottea +he Exchequer in his wise policy
port the Chaiicellor as . +bat awful budget of Friday,
of Monday; Let its forget • its propriety. (Cheers,
which has frightened the isle from. . our minds any
and laughter.) Let as dismiss free.. tea dutiei
increase of income tat, any increase of tee. r The
Neither appears to me to be necessary. (Hear, heir., I,t
Chancellor of the Exchequer has now got upon the es%
fail, and we shall support him in the policy which, " Bette:
late than never," he has now adopted..
.( Hear, hear.) But,
is this change in the policy of the Minister any reason why
I should change my resolution ? My resolntion appoars to
me to be peculiarly necessary to the position in which we
find ourselves. We don't wish to express anywant of con-
fidence in the Governments which, re we heard yesterday,
would lie likely to alarm some very influential members of
the house. We don't want to take the government out of
the hands of the Administration, and g
manta*. c
v a Perim-
ommittee Th is a coursesoe which I wouldcommittee
never
recommend. don t wat ish to
the res
takitlg, tir even sharing, poneibility of the Govern-
ent. (Hear.) Dot nia therefore, carry out this resolution,
inwhich I think lays dorm the right principle on which our
finance should alwia7hia e rest—the fundamental and cardinal
of finance to wc
policy is house should ever adhere ;
`nth consideration, or
let ul feqUire that; before we take
emeuts of the
rather before 1.0 sanction; thafinanoialarraZ
Government, we must hese the estimated ineom.; !tn't e 1-
penditure adjusted in the manner OA will appear boat ca.-
culated to Secure the country against the risk of a deft.
aseney, (Hear.) Surely, that is the principle on which we
ought to act, remembering that i*At I have said is the
cardinal financial rolicy of this house, arid the mode best
caleeiated to throw by at: }MO,' without financial eirbar-
t a balance which will ,liow the entire remission
raesmen ,
of the income tax. I think that is a traletion the Go-
vernment 'nay accept, and all I shall do will be t? aek them .
Go-
to set upon it. If they will act upon that resolution, if they
will really adopt the policy which on Monday api!eayed to
bo in the ascendant., and take the estimates of 1853 in the
manner then set forth, I, for one, have iy) wish to embarrass
the Ctoterninent acting in such circumstances. (Hear,
hoer.) If I saw a bona tide determination on the part of
Government to carry such a policy into effect, I would even
counsel those whom I might be presumed . to influence to
offer some assisance to the Government in those
trances though not care even for the first year—though I
think increased taxation is unnecerary—and would be
readily in some degree to give my assistance to the Govern-
reent in such an enterprise. If we saw that in 18tiO we were
to get rid of the income tax—if we saw that there '
Ras to be no considerable permanent increase of the duties
on tea, I would be disposed to make some sacrifice to meet the
convenience of Government. But if the policy of the Go-
vernment is this—that,though we may make sacrifices by
this increase of direct end indirect taxation, we are only in

the end to be landed in a deficit, then I think the House of I pound. (Hear, he 1
Commons cannot too speedily and decidedly interfere to ;bear in mind that aar.' At the same time, the house should
sum of 1 900 Oa has been taansferre I
prevent a result so calamitous. (Heara In the belief that from the Consolidated Fund-to the annual votes, which is
if the house will sanction this resolution we shall be able ; a transfer of expenditure, not an increase, and merely ap-
underß thisut
Shi
altogether to avoid new taxation by wise and wdl-consi- j pears under a different head
dared reductions, I now place it in Sour hands, and dour- t late years a great increase
thehead
(ti
mend ii, to the impartial but earnest consideration of the ' in a great measure to
with so much favour in theP hioe•Y which has been received
there
echarge,hae been
owinge of
House of Commons. (Load cheers.)
advocates among honourable gennsazimall
The question having been put,
TJER said—Con- forcing charges of a local nature to the national
particularly found
oartanc_, perhaps the house
opposite,- of trans-
The CHANCELLOR of the EXCHEQUER
As it is a matter of some im e
will allow me to state to themP seeprieehs otfheitems of
exchequer.lica..
civil estimates.
aidering that when, on the first night of the session, the
right hon. gentleman gave notice of a motion on the in-
; thi'nd
meter which are now charged
; county
e)me tax, he had evidently considered the subject with There is the item of criminal prosecutions in
great deliberation—considering that although ho announced merly paid out of the county rate, 250,000 e ' same f forol..
his intention some days afterwards to persist in that mo- Scotland, .12.J00/. ; maintenance of prisoners in the united .
tion, he has since allowed it to disappear from the notice kingdom, 126,0001. ; Poor Law charges, Ds wee
1 constabulary, 146,030/. ; the same for Ireland, 644
list—considering that the motion now before the house is Making altogether in relief of local rates, 1,297,000(. Thera
a motion substituted for the one originally presented—and has been also a transfer to the civil estimates of an item of
considering that the right hone gentleman, who holds so 216,0001. from local fees in County Courts. There is also
eminent a position in this house, and is so experienced in
a charge, which must ho considered
to local expenditure, for eencation in Great Bilea
ic
in the nature of relief
financial affairs, has, we may assume, thoroughly invests- which this year amounts to 523,000/ , and for Ireland to
gated the matters upon which he has spoken, I cannot, sir, 181,000/. The branch of science and art takee 43,t 021.,
but congratulate myself at finding that he has offered scarcely and these three it MY; make together 755,000/ The total of
any objection to that whichis, properly apcaaing, the finan- items of this class is 2,320,0001. That
diisasttl.l3nocellge ix .
cial pl m of the Governmens. With the exception of a few
eperena-elietuareod
which
itcll:e hasrsl beauue,f i„ 1 growing,
u f which n any execu'tive Gon:
remarksupon the absence of estimates of the extraordinary verument will find itself comps asively powerless- The
expenses of the Persian wa-, andalso of what be thought fit next charge which will come upon those yecre is the
to call the Chinese war, and soma general remarks upon the charge for debt. If thi revenue should b I found insum-
odiousness of an income tax and the odiousness of a tax on eject, atter defraying the service of the year, to defray the
repayment of debt charged by law on those yews, iawi 1 f
tea and sugar, I do net remember that the right 110 D eentle-
• P course he open to Perdement when that time arrives to
man introduced into his aeferess 2, single observation bear- consider whether any other arraneemf nt may be riled; f a
ing upon the financial plan of the year. With regard tothe the discharge of that obligation. I should be extremely
want of an estimate of the expenses of the Persian war I sorry if I thought that anything would interfere with the
have already stated that we shall present oue, and I included payment of the four series of exchequer-bonds which stand
for payment in the present and the three succeeding years.
in my statement of Friday last a sum of about 260,000/ At the same time if it should be found that they can only
which we estimated would be the amount of the first per- be imposing on thecountry taxes of a very onerous descrip-
tion of the extraordinary expenses of the expedition that tion—if the financial pressure is severe—of course it wilt
we should have to defray. It is therefore not correct te say be open to the Parliament of the day to consider whether
that there is no estimate of any portion of those expenses. the burden can be distributed over a greater number of
What the right hon. gentleman calls the Chinese war has years. At the same time my hope and conviction is that
it will be possible to defray them in the years when they
been carried on by vessels upon the station, and no extra- fall due. (Hear) But with regard to the sinking fund
ordinary expenses which we could lay before the house have which is doe in the same years a different reason applies.
hitherto been incurred. As to the right hon. gentleman's I ought,
that sinking funperhaps d
to explain to the house the way in which
originates. The sinking fund for the
general declamation on the subject of the income tax, I three loans of 6,000,000/. 5 000 000/ and 5,000,0031. was
think, consideringthe number of years during which that made to commence in the same ,
manner as the income tax
tax has now existed since it was proposed for the second was made to cease—that is to say in a year after the Ist of
time by Sir R. Peel—years of peace as well as of war—that April succeeding the ratification of peace. That was the
tohuerafiersotf twol loans,
w,r because utz
third
they
loan
were
was
contracted contributed
the home will hardly expect thatl should enter into a for- in an
steh the
c
mal dissertation as to the policy and necessity of that tax after the war, and therefore a definite period was fixed for
under certain circumstances. With regard to the tea and its payment. When the first and second of these loans were
sugar duties, which, the right hon. gentleman declares to contracted the duration of the war was quite uncertain. It
be the most odious of imposts, I really am at a loss to know might have lasted sor 10 years. If it had lasted for any
upon what ground they are to be so designated.
period of that sort,it would have been impossible to pay out
• of the annual revenue the exchequer-bonds that would have
Mr. DISRAELI—OnIy the tea duties. become due during its continuance, and it would have been
The CHANCELLOR of the EXCHEQUER—Fora long absolutely necessary to raise new loans for their discharge.
time tea and sugar have been included among the articles Bat as the war happily lasted only 3 years,it soheppens that
the first payment out of the sinking fend upon the three
upon which a Customs' duty has been levied, and the duty
is not -subject to the objection of being a protective duty, loans falls in the same year as the Exchequer Bonds; and
hence arises a great accumulation of the redemption f the
inasmuch as these articles are prcdnoedexolusively abroad, debt in those three years. The house will observe that the
They are also articles of general consumption, but they oc- amount to be redeemed in the present year is 2,250,0001.
cupy a position somewhat above that of mere necesftaries, In each.of the two next years the sum will be
It would be a perfectly legitimate financial operation, 1
3,500,000/i
such as bread and meat, and for a series of years they have Parliament should think fit to do so, to postpone that sink-
been regarded as proper subjects for taxation. lam there- ing fund for three years. The only effect of such postpone
fore at a loss to know whythe right hon. gentleman should ment would be that the first loan, for example, instead of
stigmatise the duties upon tea and sugar [Mr. Disraeli being paid off in 1873, would not be paid off till 1876, and
repeated that he bad only mentioned the tea duty] so with regard to the other two. It might be found desir-
ble to adopt that course, for when so largo a sum as
peculiarly odious, or why he should condemn me for 3 ,500,000/. is to be redeemed within a year, and that re •
having selected as an object of taxation an article upon demption takes place by the purchase of stock by the Go-
which a greater amount of duty than is now to be raised verument, they raise the price of stock as against them-
has in time of peace, up to the present period, been levied selves, and the redemption is therefore effected on nubs-
for a long series of years. I must assume, then, that the c
demption
terms. I have not stated the full extent of the re-
fer
There areptiozfdebt nowwhich
would be going on in those three
financial plan of the year, or the budget—that term being ea
annual payments upon terminable
confined to the estimate of expenditure at first submitted annuities to the extent of about 4,000,000/. Now, the au-
to the house in committee of supply, and to the estimate nual charge of these annuities, if they were made perpe-
,of ways and means provided to meet that expenditure— tual, would be 900,000/. The difference, therefore, in the
1 having been placed before the house, the right hon gen- three yearsebetween the charge upon those terminable an-
faeman can scarcely make any objection to that budget, unities and upon them if converted into perpetual ennui-
-1 and I may regard myself as fortunate in having escaped ties would be 9,300,0001., which represents with tolerable
almost entirely from his censure. (Hear, hear.) But in accuracy the annual extinction of the debt. And, therefore,
the excursive flights which the right hon. gentleman took if in those three ye Ira the whole of the debt represented in
over the regions of finance he was not satisfied with re- the return which I hold in my hand were extinguished,
marking upon the estimate of revenue and expenditure together with the payment of the terminable annuities,
for the year. but he commented upon the plan which I we should redeem 18,550,000/. of the debt at the end of
proposed of fixing the taxation for two additional years. those three years. I have explained to the house that I
I may, perhaps, remind the house of the constitutional did not undertake to make a budget for the next two
inractice with regard to the determination of revenue and years, and that, according to any seasonable computation
expem,liture. The expenditure of the country is partly of expenditure, and also making allowance for those legi-
fixed be Act of Parliament—that is, it partly consists of timate arrangements which may be resorted to with re-
the interest upon debt payable by Act of Parliament, and gard to the redemption of the debt, if Parliament should
of charges upo,7 the Consolidated Fund fixed by Act of so determine, there can be no ground, as far as we can
Parliament ; and it;
madly consists of annual votes in com- judge, fur anticipating that financial embarrassment
mittee of supply. theere two branches of expenditure are (involving a defiiiency of 5,030,030/4 in a future year
now about equal, the aui6net payable in the present year, which the right hon. gentleman has depicted in such alarm-
under Acts of Parliament, baingabout 32,003,000/., and ing colours, and which he says would render the extinc-
the amount voted in committee o.c supply being also about tion of the income tax impossible. I have, I trust, shown
32,000,0001. It is possible, when the estimates are laid on that that part of the right hon. gentleman's speech which
the table, when a plan of expenditure is proposed upon the consisted of a demolition of an imaginary fabric—vise, the
responsibility of the executive Government tc the house, balances in the next two years between revenue and expen•
to form a financial plan or scheme of revenue and e.pendi- diture upon which I had relied, together with an imaginary
ture for the year, and that is what I and all pereune in deficiency--is wholly founded on error and on a misappre-
my position have done. But I will venture to say that hension of the very elements and conditions of the question.
no Finance Minister upon any occasion ever presented Can it be said with any truth that I have opposed any ad-
to the house a plan of expenditure for any future year, ditional or artificial obstacle to the extinction of the in-
(Hear, hear.) Such a thing is perfectly unheard of. come tax in 1860 ? I think I can convince the house that so
\
The great majority of taxes are fixed by permanent far as I have done anything in that respect I have rather
acts of Parliament and levied from year to year until afforded facilities for its extinction. I have merely proposed
Parliament thinks fit to get rid of them, and other an addition to the income tax for the present year, which
taxes are fixed for a period of years. Formerly there wore the right hon. gentleman himself not only does not object
certain annual duties, such as the sugar duties, but they to, but of which he says we have a right to avail ourselves.
have now been discontinued, and at present all taxes aro I have proposed that the income tax for the two next years
fixed for a perpetuity or for a period of years by Act of shall be 7d. instead of sd. in the pound, and I think that that
Parliament. I thought it my duty to propose, finding is by no means a burdensome increase. An income tax of
Id. in the pound would be Ss. 4d. per cent., and therefore
that the ta and sugar duties and Vie income tax were con-
tinue,' forces certain time, that certain alterations should the addition of 21. in the pound to ad. will nlyadd 16s. Bd.
be made in the rates of those duties and of that tax. The per cent. to 2/. ls. per cent., thereby paean) the per-
income tax was limited to continue for three years, and I centago of 2/. 18s. 4d. That at.,
thiu goannot be
proposed simply to alter the rates of the tax during those regarded as a very heavy burdepnroupTene'any scale of fortune.
three years. The tea and sugar duties were to fall by So far as the change which I in the income-tax
regular gradations to a certain amount, and wore to be makes any differtuce' revenue
fixed provides an additional
fixed at that amount. All that I did was to propose cere for those two years. And the same is the case with regard
talc alterations iu these duties, but I never submitted to to the tea and sugar duties. At present those duties are
the house a plan of expenditure for a future year—for any upon a deacendiug scale. I propose to arrest that descent,
year beyond the present. (Hear, hear.) Neither on Fri- and, therefore, so far as those duties are concerned they
day, when I first addressed the house on this subject, nor will teed to increase the revenue for the two next years.
on Monday, when I gave an explanation supplementary to The change which I propose, so far as the remission of the
my former address, did I attempt to give any estimate of income tax is affected, manifestly facilitates and does not
expenditure for a future year; and if the right hon. gentle- obstruct. (Hear, hear.) Then with regal dto the pro-
man will look to the statement of former Finance Ministers vision which may be made fur the discharge of the debt
—for instance, at that of Sir Robert Peel when he intro- in these three years, if that debt should be discharged
duced the income tax, and at those of the various Chan- to the extent of 9,250,000/., the reduction of the into-
cellors
of the Exchequer who have renewed that tax, he rest in 1860 compared with the year 1857 would be
will find that on no occasion did they attempt.to give an 313,000/. I may, perhaps, be liable to the charge of at-
estimate of expenditure for more than one year. There- tempting to penetrate too far into the future if I read to
fore, when the right hon. gentleman talks of a " defi- the house an estimate which I have prepared of the re-
done? he introduces an idea whollyforeign to the subject. venue in 1860-61. The revenue of a future year can be
(Hear, hear.) In order that there should be a deficiency estimated according to the existing law ' • but it is other-
it is necessary that there should be a comparison between wise with regard to the expenditure, because it depends
revenue and expenditure, and if I had made an estimate of upon the annual estimates which are prepared by the Go-
expenditure for future years, and had compared it with verument of the time being, and have to be submitted to
the revenue, and the right hon. gentleman had then found Parliament. When, therefore, I make an estimate of the
there was &deficiency, he would no doubt have been justi- expenditure for 1858-9, for example, I can estimate that
fled in saying that I hal created, as he called it, a colossal portion of the expenditure, which is fixed by Parliament,
deficiency ; but I never asserted that the changes of tax- such as the annual charge in respect of the consolidated
ation I had proposed would create either a deficiency or a fund ; but all the rest chi the estimates must necessarily be
surplus. (Hear, hear.) On the first night that I male a framed upon mere conjecture. Supposing, then, that no
statement I abstained from all mention whateverof future alteration shall be made till the year 1860 in the taxation
years, but on Monday, when the right hon. gentleman which I have proposed, I estimate the revenue of the year
had sgiven notice of the motion he has Low made, 1859-60 at 62,265,000/. There would be a loss in 1860.
I thought it would be convenient to the house to know upon the tea and sugar duties (even taking into cal cula
what was the revenue which I calculated for the two years ,
income
' tion the increased consumption in that year) of about
-
to which that motion referred, and I accordingly rea I an 1,065,000/. There would also be a lossupon theof.
the .
estimate of that revenue. The totals of that estimate were tax of 3,650,003/, because the payment
of half
not stated by the right hon. gentleman exactly as I stated venpenny tax would fall due in the following year. In re-
them. The totals which I stated were 62,300,0001. for the
year 1858-9. and 62,265,000/• for the year.lBs ,
d-GO and I 0 1
spect of miscellaneous I estimate a loss. of, 100,000!. The
total loss, therefore, to the revenue in le6 • , compared
o
said that if you compared that revenue thewith expendi-
That I with that' of
inthe previous' year, would be 4,815,000/ and
the revenae lB6O-1 would be 57,450,0001. If we may
tare of the year 1853-4 you would find no deficiency.
the and
was the statement I made, taking the last year before add for improvements other branches of the public re-
war, .we get a total of
of 665 0001
as ,standard of comparison, because, if I had taken as
venue au assumed sum
58,115,0001. The expenditure of 1853-1 was 55,840,000/. ,
my standard the estimated expenditure of the present year r
I should have taken an estimate which has not been agreed I which we may take as a standard of comparison, approving
r it or not as we think fit. I deduct from that sum the cliffe-
to by the house, and which, moreover, relates to a year of
renpe between the interest of the debt in 1861. and the in-
any hon. gentleman may wake the comparison for himself, great peculiarity—the first year after the war. However, I
terest of the debt in 1853—viz., I,6o,oooa—which is
either of the revenue, such as I have stated it, with thet formed by deducting from the terminable annuities, which
expenditure of the present year, or of that revenue with expire in 1861, and which amount to 2,146,000/., the ad-
the expenditure of 1853; but, whatever year may be take d
ditional charge of interest which has accrued during the
as the standard of comparison, I must be understood as de- war. The expenditure of the year—assuming always
dining to make any positive estimate, or to give an opinion that of 1853—is thus reduced to 54,200,0004, as
as to the amount of expenditure of any year after the pre- against an income of 58,115,000/. The house may
sent. With regard to the argument of the rightl hon. take that estimate for what it is worth. I have
gentleman that there will be a great sum, which wilacrfe expressed no opinion upon it, and refer to it merely for the
ululate, to be defrayed in the year 18f 0, by which the di f-
purpose of showing thatthe plan I proposed does not throw
ficulties of repealing the income tax will be increased, I
any obstacle in the wayof the extinction. of the income tax
wish to call the attention of the house to a few remarks. •
At the same time I do not undertake to make a budget for to the latter part of the resolution before
in 1860. With regard to that question I feel myself blea-
assenting
more than one year. I express no opinion whatever as to tallelial of
It gays that it would be expedient to " pro-
the probable expenditure for a year after the present. Ne-
vertheless, I shall take a general view, so as to throw some place it in the power of Parliament
light on the possible financial position of the country in the vide for such leebsealamnaceyof revenue and charge respectively
inat the year 1860
two following years. The revenue estimated for the yearn t the income tax." I do not in the least
1858-59 and 1859.60 is, as I have already stated, about gather to remit that period., without embarrassment to the finances, alto-
-62,300,000/. I holdin my hand a statement of the gross re- result. All persons must wish that anyonerous tax, which
deny that it would be extremely desirable to realise that
venue of everyyear since 1830, There is only one Yam. from lie income tax is alleged to be, should, by the increasing
1830 up to 1853 in which the income exceedssB,ooo,oool. The t prosperity of the country, be found unnecessary for the
revenue which I have provided resulting from the alterations
of taxation will be at the lowest 62,265,000/., being nearly ourselves
nublie service. But it seeme to me that we cannot bind
down to any sort of pledge, or to any formal con-
-4,000,000/. greater than that of every year prior to 1854-5. fession of faith as to the possibility or probability of Par-
Since 1854 the revenue has been 64,000,000/. for 1854-5, lisment being able to remit the income train 1860. (Ireni
and 70,000,000/. for 1855-6. In the present yearear the re- cal cheers and laughter from the Opposition.) Each gen:
sCuSeith abstain
remisremission
i of from
ofm taking
venue will amount to about 71,885,000/. The nue for tieman may calculate the probabilities for himself, and if
any measure which.
taxation either difficult or
next year is estimated at 66,365,0001., being the year 1857-
' for which I propose the present budget. Then we come
a
b, ,
' years 1858-9, when the revenue is estimated
.t mightwechooserender we
improbable. What I maintain is,
to the that the proposal which
..,..„ •
62,300,uuut. --aud 1859.60 at 62,265,0001.
Have made, so far from incre •
be • naafi- increasing the difficulties, mid.
62,303,0001., .lid
le income of that amount will 1 gates and lessens them, and
,whether a prob at,. =.,years. Notwith- offers every reasonable pros;
re of those two . t which
cient for the expenche:' f the right lion. gentleman I
efiPueanneial ad • wet can hold out at present of a satisfactory
standing the disapprobation. a ,
-de a comparison with the to m . jue ment in 1860. Beyond that point it appears
must again be allowed to instite
The expenditure then was
1860 e impossible to go. If the state of
expenditure of the year 1853-4.
ti,
be
:.wised in each of
or . should admit with advantage of the remission, wholly
55,840,000/. The revenue proposed when cons, with , . almost entirely, of the income tax let us trust to the
these years is 6,460,000/•
in
excessthe incomes of the ;ears. wisdom and patriotism of Parliament .
in that yea ffeet
r to e .
that expenditure--that is to say, the change. (Rear hear.)
with the expenditure oflf, on the other hand, it cannot
1858-9 and 1859-60, as compared : turn out from a • ,
surplus of 6 460,0001. We must . a • a verge circumstances which ,sre,tkiQi, of
1853 4, shows a . .
may be regarded without the gift of .prophecy foresee that tha o°°,,e';iiseP-
iti. a Parliamentary point of view, what
the income tax is • d only erea- r fle-
as the first charges on that income. I will at once assume _ impossible, we shoid
which
the ST
pointment
looking at the importance of our national defences, . and weaken the respect in ban abstract
that,try" Y • ht.
ment is happily for the army and navy will be the first held if we led the owl tancesmig
the expensesireuwB fro al-
charges. Comparing the estimates of the present resolution to
year with expect a remission whit !ar) There o ,
the estimates of the last year before the war, there is au ex- put beyond our power to grant. 'l'
(i tenour of the resoln-
cess of 4,000,0.01. We certainly cannot reasonably aati- though there is little in the gene:,ot see that any advaa-
• -ate that excess should continue at its present amouna'e tion to which I have toobjeot, 1, to to it. It would be open
`a• -ream everybody will admit is due to its being the tage would arise from our assen 1. .
give rise, perhaps, tea
Some ia.. veoula b
flee a war. [Mr. Disraeli—The second year ; to much misrepresentation;
.nd therefore I shall vote in
first year a . _ _ titudibg, the chair. I shall neither
ing is important.] e
It • the first
is. year after the disband- k3angerous misunderser
leavi". but Ft •
ing of our armies, and atiiiz the return of our army from faJour of the speak
the resolution,
din
to c .
hall ask the house' to
foreign parts. Unquestionably greatdifficultyis experienced afffran nor devr_of the day and gCommittee of Waya
in making reductions suddenly in the army and navy, and pan to thesorZrh a view ter, croontia,
of the
the practical qication
in military and naval establishments, and we must consider and Mea:ilaetion of the war t income tax. (Hear.)
a t no Prae teal result. It caa Pro-
that a largo portion—l will not say how large, but a large of the re t,,,,,, eau le
hatof
The solu 1 e eeond
portion—of the present eacess is due to the peculiar einem- AT„--ereo effel -,:a (hear, hear .and a laugh)—and even if
stances of the present year. What reduction we may beable ssaaa inn this fund ourselves down to this sort of political
to make in future years is a matter on which I can now we were
nwriot understand how we should be nearer than we
express no opinion. It will depend on many causes, test, 1 e3te the attainment of the end which the right hen.
many of which no doubt are 'within the control of Ws_ are
lean opposite and all of us mast have in view- viz.,
house, but inasmuch as we have not yet been into Cesvilt tilt' 'emanent and satisfactory settlement of our finances.
tee of Supply, and the estimates have not yet under!
ion
tiiiieal.)
so
much fur the latter erasp the resolution. The
any debate, it would be premature to offer an o a
ittunctionformer pdrt seems to me, so fa I can apprehend its
the extent to which they may be susceptible of coo to a meaning, to be equally objectionablet 'lt asks the house to
in future years. That they will admit of :atm: (fgear,
, resolve that "it Would be expedient, 'before sanctioning
greater or less extent I deem absolutely
ercienill Service' the financial arrangements for the ensuing year, to adjust
hear.) We then come to the estimate for .
n reduction than the estimated income andexpenditurein the manner which
and I confess that offers greater difficuslity swing
to the great
shall appear boat calculated to secure the country against
the army and the navy. This hiss bees' 0
late years in that
ebr branch
the risk of a deficiency in the years 1858-9 and 1859.60."
increase which has taken place off
the estimates for that
to
I confess I am not quite clear as to the meaning of that pa-
of expenditure, so that now
.au ~een,ooo/ a
t 7d, in the ragraph, by which I apprehend the right hon. gentleman
Service amount to rather morn %int:
nee tax 5-
say, they exhaust the whole f the