The Sun.
London, England, 1819-03-09 00:00:00

BALANCES OF PUBLIC MONEY.

On the motion of the CHANCRLLOR Of the
EXCHEQUER, the House resolved itself into a Com-
mittee ou the Exchequer Consolidation Act.

The CHANCELLOR of the EXCHEQUER, at so
la'e an hour, would do no more than give an idea
of the subject which he wished to submit to the
consideration of the Committee. Honourable
Members were aware, that according to present
practice, the produce of the Consolidated Fond,
which was accumulating in the Exchequer, was
not by law applicable to ,the public service.—
Thus`a large sum of money was locked itp, which
could only he used at. the close of the quarter.
The interest upon it was entirely lost to the public,
and fell Into the hands of the Bank of England, a
pt act ice which was authorised by law. He should
now propose that the Treasury be empowered to
Apply to the public service, out of the growing pro-
duce of the Consolidated Fund, a sum not exceed:ng
Six millions ; replacing,' in its stead, Exchequer
Bills as a security, to be made good at the close
of the quarter, out of the fonds granted for the
services of the year. Mr. Perceval had proposed
a similar measure in 1808 to the extent of , five
millions, hut had afterwards preferred closing
with the Bank for an advance of three millions,
without interest. In Ireland, however, the pi ac-
lice had been to apply the growing produce of the ,
Consolidated Fund to the service of the year, rak-
ing care at the same time to give the same seconi- ,
ties which he should propose. The agreement
entered into by Mr. Perceval with the Bank ex-
, pired on the sth of April 1815, but had since been
prolong,ed till 1817. The balances in Mr. Perce-
val's time were very considerable, and might
amount to eleven or twelve millions. They had
now been much reduced, and a large sum was
taken from them for the payments of the Sinking
Fund, which, instead of taking place in one gross
sum at the beginning of each quarter, were now
issued gradually. The balances were now about
as low as it was possible they could be in a state
of -peace: They did not amount to more, and
sometimes to less, than ten days' provision for the
public service. It was scarcely practicable to re-
duce them lower; but of course the 'Finance Com-
mittee would turn its setions attention to the sub-
ject. On the expiration of the last arrangement
a question had arisen r..hether the Bank would-coo-
sent to a measure of the present kind. Now he was
happy to state, the Bank were willing to give
their consent. But although be should propose
to issue six millions every quarter, they would be
subject to make up any deficiencies which might
have previously existed. As there were arrears
to the amount 'of 3,300,0001. the six millions of
the present qUarter would only operate to the
extent of 2,700,0091. for the good of the public.
He should also propose a clause to limit the du-
ration of this new arrangement to the sth July,
1820 ; but felt convinced that the House, having
perceived its 'advantages, would be of opinion
that it should be renewed. He then moved the
following Itesolotion:-•—• " That it is the opinion
. of this Committee tjli“. it is expedient the grow-
ing produce of the Consolidated Fund in Great
Britain be made applicable it; each quarter, to an
amount •not exceeding six millions on the whole
'at any time, to such services as shall be voted by
Parliament, until the same be required for the ser-
vices for which it is appropriated."
Mr. MABERLY complained thaLthe 9th of March
had arrived before any thing had been done to
explain and settle the finances of the year. The
six millions mentioned by the Bight Hon. Gen-
tleman as being partly intended to cover arrears,
were now sunk to 2,700,0001. which would not
he sufficient by 300,0001. to repay the three mil-
lions due to the Batik. The current expenditure
of tine country was twenty millions, and the
amount of the Unfunded Debt forty-eight.—lf
the furrier were divided by twelve, the monthly
expenditure would be found to amount to about
1,700,000/. To meet this, there was a total in
regular taxes of not more than seven millions.
If the monthly 1,700,0001. were multiplied by

pear to be 5;100,0001., and on!), 4,000,0001. 'of
Ways and Means to cover it,.leaving a deficiency
(if 1,100 0001. on the April quarter. He had
Made those statements-to show that the Country
might be deprived of money altogether for the
ensuing quarter, for the EXehequer Bills might
then he paid in on account of the Revenue: If
it were sail they would not, then the Right Hon.
Gentleman must raise the interest on them, for
they were already at a considerable discount, and
would of course be paid in if it continued to in-
crease. Where, in that case, should we find funds
to meet the expenditnre from April to July, and
the teller quarters ? With adt ficiency in out re-
venue nearly equal to the Sinking Fund, what
would be our situation but` a state of bankruptcy
if war or a rumour of war should arise—if tits
affairs Of France did not subside, and anew revo-
lution took place in that country ?
The CHANCELLOR of the EXCHEQUER acquitted
the Hon. Gentleman of an intention to mistate any
part of this important subject. He was only
Mistaken. He had laid it down that the provision
fur halt the year must he exhausted in April. He
was not aware that half a quarter bad elapsed
before any of the supplies granted for the present
year had been applied. The Malt Tax had been
voted in January, and the first application of its
prodoCe had taken place about the middle of
February. Tittle was no mystery in this ; and it
was well known that the set vices had been defrayed
out of 'ninnies temaining front the last year. The
public grants hat not commenced to he issued in
1818, till the beginning of March, or the end of
February. it was not theretwe astonishing, that
they should have lasted nearly to the present time.
As to 'the unfunded debt, it might amount, to-
get her with the part for Ireland, • to forty-eight
millions, as the Honourable Gentleman had
stated. But lie , ought not to have forgotten
that sixteen millions of it had last year been
paid oil and funded, He also feared that
the Exchequer Bilk might be paid itt on
account of the revenue. Put that hail not
been the case even during the last war, ts hen the
discount noon them was much greater than at
present. Very few had then been paid into the
Revenue. As to the period when be should sub-
mit to the House a plan for a general provision ,
for the service of the year, it would be when the
question of the Bank should have been hilly inves-
tigated, and the Report of the Committee should.
be in tlie possession of the House. Till then he
should preserve the same silence respecting his
financial arrangements:for the year which lie had
hitherto maintained, It seldom happened that a
General Budget was proposed before Easter. At •
what period he should bring it forward.this year,
must depend on circumstances which he could not
foresee, but tsreially on the time at which the
Report of the Bank Committee' would be pro-
duced. With respect o his becoming short of
money, the Hon. Gentleman need entertain no
fear that he should not look forward so as to pre-
vent his being entangled in difficulties of that nit.
ture.—(A laugh.)
Mr. MAuerteEv contended, that as the -Exche-
quer Bills had been issued at a premium of 205.,
and were now at a discount of 25,, they had, in,
fact, fallen 225.

Mr. TIERNint,. in a speech of considerable ex-
tent, thanked the Honourable Geo(lenity) (Mr.
Maherley) for'bringing forward a statement which
had not been answered. if the Exchequer Bills
had partly recovered from their late fall, and
were now only at a discount of 2s , it was
in expectation of a flourishing speech front
the Right Honoura'rle Gentleman opposite. But
if, alter the sth of April next, their holders were
of opinion that they would continue to fall, they
would of course throw them hack upon Govern-
meot, and the State might be aground for money,
for it could only be gor-from the Bank. But if
the Right Hon. Gentleman would not ensue to
Parliament for it, before the Committee bad made
its Report, it would be still more indecent
for the Bank to aid bins before that Report had
made its appearance. The Chancellor of the
Exchequer, whatever ignorance he might pre-
tend, knew perfectly well at this very Ines-
meltt whether he could raise the supplies of the
year by funding or by'a loan. It was disgraceful
for him and the country to prolong this state of
indecision, and thus to throw the door wide open
to all kinds of speculations in the funds. He then
contended that instead of making the six millions,
which formed the ground of the present measure.
applicable to the public service, their interest was
the only advlntage to be derived from the pro-
posed arrangement. And would it be possible to
go on with a sinking fund of 14 millions and it
half, when not less that 13 or 14 millions must
be borrowed every year to support it The con-
sequence of such a system was, to make the wary
prey on the unwary. He complained of the delay
in proposing the Budget. The Right Hon. Gen-
demon would say nothing till he could make a
grand display. But he would tell that Right Hon.
Gentleman that he would make no grand display
this year, for he was now fully understood. All
that was required of him was to state the real
case to. the country, to look its difficulties boldly
in the face, and to point out their remedy Not
that he (Mr. 'F.) had any to propose.
Mr. HustussoN contended that it was impos-
sible for his Right Hon. Friend, pending the pre.-
sent Secret Inquiry, to propose any measure of
Finance, as it would expose him to questions
which he could not answer. Before the Report
of the Bank Committee, no arrangement could
be made that would prove beneficial to the public.
But when that Report should come, then would.
the house be called upon, to look the diffi-
culties of the country in the face, to revise the
whole of her financial system, and to apply the
best remedies for reducing her debt, and increas-
ing her revenue.
Mr. TIE.RNEY rejoiced at the prospect thus
opened by the Hon. Gentleman. He bow consi-
dered Governmeot pledged to that grand and im-
pOrtant investigation.
Mr. ilustussoN denied having spoken Irons
authority.
After a few desultory observations from Mr.
Grenfell, 'Mr. Maherley, and Mr. Protheroe, iii
reply to which the Chancellor of the Exchequer
stated, that the !ix miilions would not be loith-
coming- at once at the beginning of the quarter,