The Sun.
London, England, 1842-06-22 00:00:00

hear.) This country alone was not the oily one whose
finan 'es were in a sate of embarres-meat. The fir ances
of India were in a very bad state. He d,d rot
mean to mention that as the reason f r imposing the in•
come-tax; but he did say, Hest the finance= of a large country
like Julia must be conseiered in making their arrangements.
In 183si there was a net surplus of 1,566,000/. in Indian
finanees; there now appeare without taking into account ant
1 sum ter the pt eent great expen-es, a deficiency of two millions`
and a h.lf. Was it to be said, then, that he had exaggerated
the difficulttes of the country ? an he was to charge
usem others any administrat on of the revenues which thee at
the time did not feel justified in adhering to, he ellled upon
them, sine he called upon that lieu e, to look at the state of the
country when the present Ministry accepted office.—( Hear. )
He viii not accuse the Noble Lord, late at the head of the Post-
office, for the deficiencies which had arisen inconsequence of the
change in the Post-office charges. lie did not. But let them
look at the deficiency caused by that and the previous deficiency,
and toy wou!if find a sum made up very nearly equal to the
whole psesent defirrieney. The whole of the net revenue dr.
rived trchn the Post •ollice, previeus to the alterations in the
charges, was very nearly 1.700,0001. There appeared to be at
present a re venue of 4141,0001. from the Post-effice; but that
was not the case—there was no revenue at all from that esta-
Inishment.—( Hear, hear ) Nor did he say that there ought
to be any. But when his Noble Friend brought forward his
penny postage, it was upon the express understanding thatthe
Government should make up any deficiencies which would
arise ire consequence. Worild his Noble Friend new oppose
them for endeavoering to make up the deficiency caused by his
own measure ? ( Cheers.) He thought in juvice lie could not
do ste—(Cheers.) He agreed with the Noble Earl opposite.
that it would have been imps ssihle to attempt to make up fur
the deficiency by raising the postage to its former rate. It
would be impossible to do so in the present state of the
trade of this country. The
.Noble Marquis who moved this
amendment said, that when this tax came into operation it
would create discontent and opposition in every class of the
community. He doubted that. Ile saw no expression of
opinion cheer amongst the people out of &ems, or in their
petitions to Parliament, which would lead him to expect that
indignation of millions, which was anticipated by the
Noble Marquis. There had been presented to the other
House only 130 petitions, to which 9,000 signatures were
attached, when every facility had been offered to ti.e presen-
tation of petitions by relaxing the rule of the othr r House,
that petitions could not be received against a tax under the
eon ieeretion of the House. He would say nothing of the
manner in which petitions were generally got up, ter it. could
net he ssid that any large portion of persons po,sessing incomes
ab tve 150/. a y ear, lad been so touch negle, ted in their educa-
tion that they could be led to sign petitions of the objects
of which they were ignorant.—(Hear, hear.) Nut id the 13D
petitions, thirty were from attorneys, and these were not
against the principle of the Btll, but against parts of it.—
( ;fear, hear. 1 He did not undervalue or extenua,e the incon-
veniences and disadvantages of the BtR, in its unequal pressure
on England. But he believed that the ',cope of this country
were reconciled to the Bill by their knowledge of the exi-
gencies of the country, and their desire to keep up the credit
of England, and to k ep faith with the public creditor. (Hear,
hear.) They were prepared by these feelings to bear with
the inconvinience; and they knew that there was no tax which
could be imposed a iihout pressing unequally. The question
of the sugar and coffee duties belonged rather to the debate
of the other night; but he would sat, in rely to the remarks
on teat subject imelvertently introduced into this debate, that
he did not apprehend that the proposed measures would et-term-
rage the slave trade. With respect to the exemption of Ire-
land from the Income-tax, that gave satisfaction to the whole
coutory ; at the same time that the taxes now imposed on Ire-
land would produce a contribution in the finances nearly equal to
what could be derived from the imposition of the Income-tax
in that country. The Act of Union prevented Parliament from
loitering any tax upon commodities higher than those levied in
England. and the ugly means of raising in that country her fair
shire of the burdens, was by having resource to those taxes
which had already been borne by her. He would not trespass
longer on the patience of the House, and, thanking their Lord-
ships for the indulgence with which they had heard him, he
would not delay therefore the vote which he did not doubt
would he the approbation of the House by a large majority to
the measure of the Governn ent.—( A laugh.) 'I hey had made
'heir pro, osition with the belief and confidence, which had not
been distppointed, thet it would be received with approbation
by ehe country Aeneraliy —that it would he affirmed by a large
majority rtf the other House of Parliament, aad that a measure
justified by necessity. and characterised by one of the opponents
of the Government, as an hone-t and hold measure,
would be approved of by their Lordships.—( Hear, hear. )
He believed that their Lordships would not be if cted by
the appeal welch had been made to them on the part of the
great body of the landowners of the country, but that they
would he prepared to make these sacrifices which their ances-
tors had made—he admitted in times of greater difficulty—
( Hear and laughter).--and that they would confirm the propo-
sition to which the other House, the representatives of the
people, had given their concurrence.—(Hear.)
Lord eIONTEAGLE apologised for intrueing himself open
their Lordships on this occasion, arid he would not do so if it
were rot for the appeal that had been made to him in respect
to the pledge which he had required from the Huuse of Com-
mons, in yielding to the proposition for the reduction of the
postage. But on that occasion he eledged himself to call upon
the House of Commons to accede to some proposition which he
might find it necessary to submit, if a deficiency were occa-
sioned by that reduction—not to agree to any propositem which
any ether person might think proper to propose.—( Hear,
hear.) The very same proposition which came from the
Government now, had been over and over again pressed
upon him when he was Chancellor of the Exchequer,
and he had invariably refused to propose the revival of that
impost.—( Hear, hear.) His Noble Friend opposite had cited
the increase of the packet service as connected with the penny-
post, with which, in truth, it had no more to do than with the
war in Affghanistan. The increase of the expenditure in that
department was occasioned by the necessity, that was obvious, !
of not leaving so important a branch of communication entirely
in the hands of the United States. His Noble Friend congra-
tulated himself upon the complacency with which this country
had received the proposition. Wait-until the operation of the
tax came to be felt.—(Hear, hear ) His Noble Friend would
not long be able to refer, as be did to-night, to the small num-
ber L.!' petitions against the tax.—(Cheers.) It was to he
recollec ed, that never before was there held out so large an in-
ducement—he would say so large a bribe—to a great
portion of the people not to petition against the tax.— !
(Cheers.) To look at the funds alone, it would be seen •
that out of 280,000 dividend warrants there were but 13,00(1
for amounts above 1501. a• year. - That was a fair proportion
of the incemes of other kinds throughout the country. He
would not refer the House to the Reports of the Committee of
Finance, at the head which was his late friend Lord Congleton,
for those were not authorities which would have much weight
with their Lordships on the other aide of the House. But he
would refer the m to the opinions of cohere, for whom they would
Late more respect. In 1802, Lord Sittlnouth. immediately
upon the cessation of the war, came down to the House and
said that nothing could justify the maintenance of an Income-
tax ter one hour in time of peace.—( Hear, hear.) In 1815
Lord Ashburton, then the greatest merchant in Britain. de-
clared he had rather he exsmined before a bunch of Bishops
in Westminster-hall, upon a question of theology, than before
a board of Tax-Commissioners as tothe state of his books. The
Noble Lord had then quitted from a speech of Lord Althorp
in 1833, in which thst Noble Lord denounced, in strong terms,

the impoliey and injustice of an Income-tax, except in a ease
of extreme necessity ; and above all declared that notwith-
standing the great difficulty of applying tech a tax to Ireland,
he could not allow that the difficulty should prevent the exten-
sion of the tax in that country if it became necessary to impose
it at all. In the year 'lB4O, the Hight lion. Gentleman now
at the head of the Government said that it would be unjus-
tifiable to have recourse to a Property-tax to supply so small a
deficiency as t 1,500,0001.—( Cheers.) That was the opinion
of the First Lord of he Treasury in 18-to.—(Cheera ) With
respect to the causes of deficiency, he must admit that Noble
Lends opposite had dealt with that met of the question libe-
rally and candidly.—( Hear, hear.) hit there was orie fal.aey
in their statements. They said that the deficiency they had
to provide for was 111,000,0001. It was no such thing ; they had
only to provide for the deficiency of the year. The former de-
ficiencies were provided for in ways which he would presently
show. He had no apprehension of the present financial state
of the country, if the internal state of the country were what
what ousht to be. He bessught them not to let it go forth to
the world that they were obliged to have recourse to direct
taxation because all other resources were exhausted. Then-
was no ieclaratirin which would afford so much jot to the
enemies of England. Could they hope to get credit *for such
an assertion ? It was unsupported by reason and fact. He
might be tiring their Lordships, but what he was about to state
was for the purpose of supporting the credit of the country,
and therefore he trusted they would bear with him. The
deficiency. was net attributable to any falling tiff in income ; the
income had sustained itself, Lut there had been a great increase
in the expenditure. '1 he) had to provide a sum, which would
more that) account for the deficiency, to provide for the twenty
millions paid for slave emancipation ; they bad beeides
augmented the expenditure by changing permanent into ter-
minable annuities, an operation attended with great expense,
but which would ultimately produce a large and permanent
diminution.—( Hear.) It was the safest species of a sinking
fund. But for these two causes, instead of a deficiency, there
would have been a surplus. The slave lon was a permanent
charge, but the terminable annuities const tuted a diminishing
charge; and it would be found thst up to the year litebts, they
would constitute a large and an annually increasing financial
harvest.—( Hear, hear.) Their Lordships were aware that the
depo-its in the Savings Banks were required to be invested, or
the Government had the power of converting them into stock.
That speculation was a perfectly unobjectionable one, and could
lead to no bad consequences, although .a great deal had been
attempted to be made of it.—( Hear, hear.) The
deficiency of ten millions was a mere bubble, which
did very well to make use of in debate, but which could not
stand the test of argument. The financial condition was not
so bad as it was pretended to lie, and the Income-tax was far
from being so well adapted to supply as the Government would
fain have it todieved. It introduced a different law of taxation
for the holders of large farms and the hinders of small ones.
He, however, rather rejoiced at these anomalies than other.
wise, because they afforded him a better hope of getting rid
of the measure. If faults, it absurdities of every sort and de-
seriptiiin could ensure the getting rid of a measure, this mea-
tire would not be tolerated by the country. In case of war,
when the enemy were at our gates, or, which was better
still, and which was the mode of warfare to which
the Noble Duke was used, in cases where we had to carry war
to the gates of the enemy, a tax of this nature might be
submitted to. It was a confiscation I. all intents and purposes,
but which under such circumstances must be submitted to.
A great portion of the community was professedly exempt
from the tax, and that tax it would be attempted to make the
basis of the taxation of the country. It was a dangerous notion
to hold out to the country, that the mlions could be relieved
by taxing the tees. and would be repeated to them at a time
when they would feel the inconvenience of it. To raise mil-
lions they, must tax the miliions—such were the words
of an ultra-popular demagogue, and they were true. There
eoutt be no doubt as to the comparative safety of an indirect
tax, and a direct tax. Tne tax might at first be popular, but its
unpopularity would soon begin, and the public credit and the
revenue would both puffer in consequence. The operation of
the tax on the morals of the country would be most disastrous;
it would Le a bounty to the man sell.) was fraudulent, and a line
upon the man who was honest. On land and houses under the
old property tax, one of the collectors had calculated the eva-
sion at ooe•seveoth of the amount of the whole property. On
the funded pro; eriy, the evasions amounted to from one-fourth
to one-fifth; and on profits anti professions, the evasion
was more; arid such would ever be the case until.
the Trea-ury could invent some process to Daguerreotype a
man's income. They wet° about, as a means of upholding
public credit, to do that which would tend to undermine
private credit and private fa th more than any measure that
hail ever been introduced. In the days of the former income tax
they had a depreciated currency and a war expenditure. They
had now the opposite sic of the wedge to duet with ; the pres-
sure was growing gra ater and greater, the means of resitteig it
less and less, and this was the time they cho e to impose this
tax. It had been said that a person could not go abrosd to es-
cape the tax, but suppose he took his propel ty with him what
would they do thi n ?—(Hear, hear.) The experiment had
never before been tried in time of peace. Money could net be
invested then in foreign securities, *tor could the manufacturer
then take his capital abroad. Did they imagine that the Not-
tingham stocking weaver would remain to pay his three
per cent ? No such thing, be would take his capital abroad,
end the income tax was. in fact, a bounty upon the
emigration of capitalists. But even assuming that an income-
tax was the right remedy for the deficiency, he thought he
could gems that titre Eroposed mew) r(1 wimiti 5a in producing