The Sun.
London, England, 1842-03-12 00:00:00

oh emical operations. Salt now enters into a variety of
manufactures, the importance then of giving salt
to the working classes at as cheap a rate
as possible, is quite apparent ; and, therefore,
my opinion is, that it would be unwise in you to revive
theduty upon salt on account of its extensive use in
manufactures, almost of every description. If you re-
vive the duty upon salt it would interfere materially
with the progress of those manufactures--it would afford
opportunities ofcommitting frauds,and it would materially
check the 'increase of the revenue in other respects.
I do not think that I need argue much against a revival'
of the duties upon salt, and leather, and wool.—(Hear,
hear.), Well, shall I then resort to a tax upon locomo-
tion'?-(Hear, hear, and laughter.) Shall I increase
the tax upon railways ?—(Hear, hear, and laughter.)
I confess that nothing but hard necessity would in-
duce me to derive a revenue from these sources.
--(Hear, hear.) - In the, present state of this emu-
:try, it is of great importance to facilitate communi-
cation, and the transfer not only of commodities but of
labour.—(Hear, hear.) Seeing that immense social
adVantages result from the freedom of communication
afforded by . railways, which advantages are not the
iless impoetant, because they are not immediately ob-
servable—(H'ear, hear)—l should with great reluctance
and regret see any proposition brought forward for an
itiereased taxation upon Ws mode ofconveyance.—(Hear.)
shall I then propose a tax upon gas, ?—(Laughter.)
I should he equally unwilling to impose a tax uponthis
product of industry, which is as important nearly as the
other ; and I shall therefore place gas in the same cate-
cry with railways, with salt, leather,
_and wool ;
Awl I freely own, that seeing the difficulties
which I have to supply, I should be very
unwilling to raise the necessary amount of revenue from
any of those sources.(Hear, hear.) Well, Sir, shall I
look for any portion of this revenue to those miserable,
dribbling measures of taxation, which occupied
idle attention • of provincial Chancellors of
Exchequer ? or shall I resort to those
subjects which afford occupation and amusement to '
persons in small communities, who, having found
that pianofortes and umbrellas were untaxed,
fancied that they had made a discovery equal
to that of Archimedes—communicate their Eureka
to the Chancellor of the Exchequer, and expect a per
centage fur their services.—(Hear and laughter.) Sir,
shall I take this opportunity of discouraging all those
financiers, and endeavour to show them that those
who devote eight or ten hours of study daily to finance,
must xnow as much of it as they? There is another:ex-
pedient which was brought forward by my predecessor,
and to which I think it is- my duty to refer. Shall I hope
for an increase of revenue from diminished taxation ?
But let me entreat you to remember the extent of the
deficiency, and the proof which I have offered that it is
not an occasional or casual difficulty for which you have
to provide. Sir, no man has greater confidence
than I have in the ultimate tendency of
the reduction of taxation on great articles
of consumption, but after having given to this subject
the fullest consideration, I am come to the conviction
that it would be mere delusion to hope to supply the de-
ficiency by diminished taxation on articles of consumption.
lthave a firm confidence that there is such buoyancy in
the consumptive powers of this country that we may
hope ultimately to realist, perhaps, an increase of revenue
from diminished taxation, but it requires a long process
before that end can be accomplished, and as I said before,
I hays the firmest belief that the adoption of any such
plan as that which was proposed by the lite Government,
or the adoption of any other plan for raising the revenue
by dimin'shing taxation will not afford any imme-
diate relief, or any resource upon which you can
count for the purpose of supplying your
deficiency. Sir, I have paid very considerable attention
to the etlect which has been produced by the remission of
taxation on articles of great eonsumption. Ido find, in
many cases, that elasticity which gives yon, after a lapse
of Lime, an increased revenue, but I find in almost every
case, whhaui exception, that tlte interval of time which
elap.ics before the same amount:of revenue is received,
is very considerable.—(Hear, bear.) Take the ease of
wins. In -1523, the revenue derived from wine was
2,1.-J3.000/.. Yoa tethieed the duty from ss. 9d. to 4s. •
the gallon.. In the next year there was a fall-
ing. elf of the revenue from 2,150,000/. to 1,400,0001;
in the next year the revenue was
.1,609,0001, it
wa 3 then 1,703,0001., and the following year
1,500,030!., It has never recovered. Of course,
I know that this may have been affected by other causes.
All I wish to show is, that the decreased taxation did
act lead to increase] revenue. Take the case of tobacco.
Previous to the reduction there was a revenue of
3,373.0301. The duty was reduc-ed from 4s. to 33. In
the tollowiug year the revenue f;11 to 2,600,00 q.
Li the ne.,:t year it was 2,800,00 CL, it was then
2,330,009/., then 2,330,001 1., then 2,700,0001., and again
'fake the case of coffLe, and I am quite wil-
ling t admit it presents the most faunal-able case to
prove that dinsinished taxed-on nil!. tend to in !reused
ra-
venue. Yoa tlimisliecl the duty upon coffee from Is. to
6]. in the pound. You had then, in 1394, a revenue of
.4g5,03c/.; i.a th'4 next yea.- it was 396,00C1; it was then
and in the saeoud year late: that the full amount
of revenue was realise], and it hue increased ever since.
Colfee, wilieh is the must favourahle of the instances that
can be ad,lased, teolc three years before it could realise
tlae former amount of revenue. Hemp you reduced froM
93. 91. to 4s. SI. The consequence is, that hemp has
never 13aid one halt the amount of duty which it did at
the former rate of taxation. ll'a:n you reduced from
12,3.7 d. to Bs. 6d. ; hut the. case of ruin is a some-
what favourable instance, as upon it there was an increase.
reclawd from 275. to 24 revenue from

fell to 4,600,0031., then to 4,40),000!.. ; it was after-
wards 4,500,000/. ; but has never since paid the same
amount as formerly. During six years after the reduc-
tion it did not recover. But I need not go through
the whole of these articl?s in detail. Tobacco,
hemp, sugar, glass, malt, soap, paper, and above all
newspaper duties, aad the duties on advertisements—
in all these cases there has been a considerable reduction
of duty. Coffee and num, on which there had been an
increase, did not, within a period of five or six years,
recover the full amount of duty. Therefore, Sir, I say
that upon that ground I am justified in coming to the
conclusion that in the case of the present deficiency,
wins whiCh we have to deal, and which it is necessary to
supply, you cannot look for that supply to the mere
adoption of duty upon articles of consumption ; that if
you resort to that, as a means of supply, you must make
up your minds to continue that system which I thought
you were desirous to avoid, viz., loans and other devices
115 r the purpose of supplying the revenue. Sir, I trust
—I don't say that I have convinced you that none
of these measures ought to be resorted to
but I explain the ground upon which they could not
be brought to bear for the purposes of the revenue. Sir,
I will now state what is the measure which I shall pro-
pose—which I shall propose under a sense of public duty,
,and a deep conviction that it is necessary for the public
welfare— a deep conviction that the present sacrifices
which I call upon you to make, will be amply com-
pensated, not- only in a pecuniary point of view,
but much more by the effect which they will have in
maintaining public credit, and the ancient character of
this nation.— (Hear, hear.) Sir, it is my duty to propose,
instead of looking for taxation of articles of consumption
—instead of revising the taxes upon salt and sugar—it
is my duty to make an earnest appeal to the possessors
of property---(Hear, hear, from the Opposition benches)
—for the purpose of repairing the deficit in
the revenue, which we have now to remedy.
I propose for a time—l make the proposition, as I have
said, because I have never had occasion to make a propo- '
sition with a more thorough conviction that it was for
the best interests ef the people of this country—(Hear,
hear)—l propose that for a time to be limited, he in-
comes of this country shall be called upon to
contribute a certain sum for the purpose of reme-
dying this mighty and crying evil.—(Hear, hear.)
I propose that the INCOMES OF THIS COUNTRY SHALL
DEAR A CHARGE NOT EXCEEDING SEVENPENCE IN
THE POUND—NOT AMOUNTING TO THREE PER CENT.
—being a charge of Two POUNDS EIGHTEEN SHIL-
LINGS AND FOURPENCE, for the purpose not only of
supplying the deficiency of the revenue, but also for the
purpose of enabling-me, with confidence and satisfaction,
to propose those great commercial reforms—(Cheers
from the Opposition, met by renewed cheers from the
Conservatives)-- ith regard to the condition and changes
of this country, which afford the hope of reviving com-
agerce, and of effecting those improvements in our
wanufacturing interests which will react on every other
initesrest of the community, even in a narrow and
.pmebniary point of view, by the diminished
:tikes of articles of consumption; will be a direct
teempeusation for the pecuniary charge imposed
pu every individual, but which also, by relieving them
from the necessity of contemplating and considering
-these mighty evils to which I have alluded, will afford
more than ample compensation.—(Hear, hear, and
cheers, during which some interruption took place from
an Lion. Member.) I do hope the Hon. Gentleman
will give me his patience.—(Hear, hear, and cheers.)
Looking tq, former taxes on income, I find
that in the year 1798, when the prospects of this
country were most gloomy, the Minister had
the courage to propose, and the public , had the
fortitude to adopt, an meome tax amounting to 10 per
cent. In 1803, that income tax continued, and until the
close of the war. After the peace of Amiens
there was an income tax of 5 per cent. ; it was
raised in 1805 to 6+ per cent. ; in 1806 it was raised
to 10 per cent., and so it remained until the
end of the war. Now, Sir, I propose that the duty
to be imposed on property shall not exceed three per cent.
I propose that the tax should amount to 7d. in the pound,
which is about the sum I have stated. On former occa-
sions incomes of 601. a year were exempt
from any tax ; and incomes of from 601. to
150/. were subject to a reduced rate. I shall
propose that any income under 150/. a year shall
he exempt from the tax.—(Loud cries of "Hear, hear.")
In former income taxes, in respect to that portion '
of the charge which was derived from the oc-
cupying tenant, the occupation of land in Great Britain, I
Was estimated at three-fourths of the rent. It was
admitted, I believe, that that estimate was too high—
(Hear, hear)—and that the raising of the profit to
three-fourths of the rent was an unreasonable increase.
therefore, that in res
I propose,respect to tee occupying
tenant the occupation of land shall be estimated at one-
half, instead of three-fourth s, of the ;rent. 1 believe
that reduction to be perfectly jest--it is the reduction
which was contemplated in the year 1816, when Lord
Bexley proposed a renewal of the property tax. I believe
that was the proposal
which Lard Bexley intended to
carry forward. I believe the reduction to be perfectly fair;
and that rent has increased in respect to the value ofland,
in the ratio which would renderiiihe reduction just. I
propose, and I see no grounds Tor taking a contrary
course, that all funded property, whether held by ewe_
chants of this country or by foreigners, should . be si-
anilarly charged to the extent—(l-lear)—l propose in
-.respect to other ,property. Such is the nature of the
. proposal which it is my intention to bring forward, with
Ale full and unaeimous concurrence of my Colleagues,
Out with the deepest conviction, on their part 3, that the