The Sun.
London, England, 1827-06-01 00:00:00

WHITSUNTIDE HOLIDAYS.

Upon the motion of Mr. CANNING, it was
resolved that the House, at its rising, should adjourn
to Wednesday next.

Upon the motion of Mr. CANNING the House
ten resolved into a Committee of Supply,

The SPEAKER then left the Chair.
THE BUDGET.

Mr. CANNING addressed the House to the
following effect :—The task which it is this day my
duty to perform, difficult as it must be at any, time
to a person called for the first time to perform it,
is certainly not less so by the consideration that
the picture of the financial state of the Country
which I have to bring forward is, not one of unqua-
lified prosperity. Undoubtedly a complexion is thrown
over the whole of it by the dark spots of particular
parts, which has made a deeper impression than is
perhaps warrannted in this House and the country;
and it is a consolation, that the nearer one ap-
proaches, and the more accurately one looks into it,
there is the more ground to hope that that complexion
has been in the opinions of the public, exaggerated;
and, if it has, as it is impossible to suppose it has
not, there are and will be nevertheless, the means and
determination to repair it. Sir, the financial situa-
tion of thecountry is undoubtedly one which requires
to be looked at with a steady and scrutinizing eye,
but in proportion as that scrutiny is accurate and
steady I am happy to say that it will be the justifica-
tion of hopes that the reparation is neither difficult
nor remote.—(Cheers.)—Sir, without further pre-
face, as a proof of the sincerity with which I mean

to deal
with this still

.1, I shall

proceed to state; in
the first instance, what was our precise financial
situation at the end of the past year; secondly,
to combine and compare, as has been the habit of
my Noble Friend—my
.predecessor in this place,
that one year with several years preceding ;
and lastly, to suggest the provision for the present
year, and to state the grounds on which 1 think
myself authorized to look forward with encourage-

merit to the future. Sir, in stating the first and second
of these heads, namely, our situation at the end of
the last financial year, and our situation at the end of
that year, combined with the year preceding, Isbell pro-
duce papers, which lam sure eve►y gentleman who may
look at them, will be able to verify and compare.
With respect. to the third head, the present and
the future, I can only again appeal to the
manifestation I have given, of the sincerity with
which I mean to treat this subject, in ab-
staining :£►om further comment, merely stating
that it is not my intention either to keep
back any thing that ought to be brought for-
ward, or to state any thing unnecessarily; and I can
assure the House at least, that I shall press no opinion
upon them which I do not honestly and sincerely enter-
tain myself.—(Hear.)—Sir, to begin with the first
head to which I have called the attention of
the House—the state of our finances—at the
end of the year 1826. At the end of that

year, after balancing the income and expenditure a

the year—there remained a surplus towards defray-
ing the Sinking Fund, of only one million. The
amount applicable to the Sinking Funds of that
year, was five millions five hundred thousand

pounds; there Was, therefore, an apparent defiei

of four millions five hundred thousand pounds.—
I state this amount, because from that deficit, are
to be deducted two sums which considerably
reduce it. The first of these sums, is the aggre-
gate of the advances made from the Exchequer, under
I several Acts of Parliament, either for public works
in Great Britain and Ireland, or for the pur-
chase of beneficial interests which arc not
only likely, but certain to make a more
' than adequate return. It is quite obvious,
that money laid out in thi3 manner, and for which
the claims are available end outstanding, is not to be
' fairly placed to the expenditure of any particular
year.—(Hear.)—Those expenses occurred upon a
balance which took place in the preceding year, to
the amount of twelve hundred thousand pounds.
The particulars of those advances, I think I may
spare the time of the House, in not detailing the
papers which would be unnecessary ; for every
Gentlema has access to them, and by a reference to
which he may immediately satisfy himself if he
doubts my word. To this was to be added the
circumstance, that in the course of the year
1826, over-payments, or payments for expences
not incurred in either years, but defrayed in
that year, occurred to the amount of twelve
hundred thousand pounds that also is to be
founded in a specific paper. Those two
sums of twelve hundred thousand pounds each
.deducted from the 1,509,000/., which I have stated
as the deficiency of the year, has left a clear defi-
ciency of 2,590,000/., including the payment to be
made by law on account of the Sinking Fund.
Such, Sir, was the state of our finances at the
end of the year; but before we take that as the
measure of the financial ability—still more as a
proof of the financial ability of the country—
it will be most fit and proper to refer to
that process which I have said my Noble
Friend referred to, that of combining the par-
ticular year with the preceding year, and draw-
ing an average upon the whole, and an inference
from" the aggregate amount. Sir, it is just four
years since the Sinlting Fund was placed in its present
more simple form ; those four years, therefore,
natursdly formed the period which it is proper to
combine, in order to arrive at a general result.—
Taking those four years combined the total income of
the country in those four years at two hundred and
twenty nine millions and a fraction—say, in round
numbers 200,000,030 the expenditure of those
four years taken together, exclusive of the Sink-
ing Fund, was,—say for the purpose of dealing with
it more esily, 210,00,000 the surplus which
which remained towards defraying the Sinking
Fund for those four years, we will say was
twenty millions. The total aggregate income
of the four years something tinder two hundred
and thirty millions, the total expenditure some-
thing under two hundred and ten millions, and
the surplus remaining towards the Sinking
Fund, a trifle under twenty millions. The
claim of the sinking fund for these four years was
21 millions and a quorter, leaving an apparent deficit for
the four years in the whole expenditure of the country of
1,265,000/. ; but against this deficiency and the committee
would see that it deserved that character, was to he placed
the amount of the sums advanced by tha Exchequer for
the carrying on of the public works, for valuable purchases
made on account of the nation, and which the public now
possessed, as a security for the money expended on them.
It would therefore be manifestly unjust to consider the
2,400,0001. so advanced by the Exchequer, and re-
payable, as part of the actual expenditure ; dednct-
ing therefore the apparent deficiency of 1,265,0001.
from the 2,400,000/., there remains a real surplus of
1,100,0001. for the year, after defraying all the expendi-
ture of the country.—(Hear, hear.) I now, continued the
Right Hon. Gent., to consider the relation which the in-
come of the year bears to the expenditure. The estimate,
for the country,,for this year (1827) is 54,600,000/. and
the estimated expenditure, exclusive of the demands of the
Sinking Fund, as by law established, is 51,764,000/.
The claims of the Sinking Fudd are 5,700,0001., let this
be added to the estimated expenditure, and the total de-
mand for this year will be 57,460,0001., being more than
estimated income by two millions, and nearly three hun-
dred thousand pounds. I will now, acting on the prin-
ciple which I set out with, give the Committee a view of
the result of the comparison of the expenditure of the
four preceding years ; and, in so doing, I will
suppose the estimates be made on the preceding data, the
income for the four years, 1823, 4,5, 6, and 7, I find to
be about 230,000,000/.; but, in order to comae to a more
just comparison of these with the present year, it is ne-
cessary that I should leave out of my consideration
the advances and repayments of the four years those
for 1827 have nut yet been estimated, and I must
these omit in my statement, so much of the income of the
former year, as was expended in advances. The income,
then of these four years, so computed, will be abont
228,000,000/. ; add to this the 54,700,000/. being the esti-
mated income of the present year, and the total income of the
five years will be two hundred and eighty-two millions, six
hundred thousand pounds. The expenditure of the four
years, exclusive of the other mentioned sums advanced
from the exchequer for loans—public works and purchases
on account of the public is 205,607,000/. The esti-
mated expenditure of the present year is 51,764,0001.,
making a total expenditure for the whole fire years of
257,431,000/. The difference between the aggregate of
the five years' income, and the expenditure will be
25,000,0001. The legal claim of the Sinking Fund
for three years, is twenty-six millions or near
27,000,000/. The deficiency, therefore, on these five
years, is 1,758,766/. The deficiency of there years,

preceding years, Was
amounted to something about two millions ; and it should
be recollected that.thie Was a deficiency in our expenditure
ofnearly 3,000,0001., spread oveea.whole years. —(Ch eers. )
I am aware it may be said that there is a fallacy which
pervades the whole of this statement, arising out of that
circumstance, which, is familiarly. 'designated, and ge-
nerally named, the Dead Weight, but I think that it
is au entire mistake to consider that the operation
of the dead weight can have the effect of falsifying this ac-
count. I am willing to accede that the system has its
faults that it has the effect of complicating and obscuring
our financial statements—(hear, hear,)—hut I believe that
on this account more blame has been attached to it than
really belongs to it, and in respect to this particular account
I contend, that it is an advantage and a benefit to
the country. The contribution from the Commis-
sioners of Naval and Military Pensions within the
last four years, amounted to 7,600,0001. But, Gen-
tlemen ntust not forget, that when that contribution,
was established no less than two millions of taxea were re-
pealed ; and before it is supposed that the Dead Weight
produces an exaggerate,' account of the National income.
Hon. Gentlemen must consider what amount of taxes
were repealed only because this contribution was imposed.
As I said before, nearly two millions of taxes per annum
were repealed, and in the same period in which the dead
weight produced the contribution of 7,600,0001., those
taxes, if unrepealed, would have produced no less than
8,200,0001. So far from the amount of the income,
therefore, being unfairly swelled on one side, the
fact is, that that side loses 600,0001. by the dead weight.
I do not mean to contest that the dead weight does not
produce obscurity; but as to the charges of
swelling and inflaming the income of the country,
it is perfectly guiltless. In fact, as I said before,
the income of the country would appear to he
600,0001. greater than it is now, if it were not
for the Dead Weight. The continuance of those
taxes if not repealed toe, would leave a balance against the
country of from 800,0001. to 1,200,0001. 1 repeat
that this is not the opportunity to enter iato the merits or
demerits of the dead weight; I admit its faults, awl
frankly own that I was ignorant of its merits until I had
occasion to examine into it. -1 believe too, that many
other Hon. Gentlemen have the same impression whirl, I
had, and which impression will be removed by ex.
amination. I contend that the country has- received
substantial benefits, and when we come to consider
the question with the Bank, whilst we calculate how
much we shall gain, by symplifeing our National
accounts, and being enabled as it were, fairly to meet
our difficulties in the face, we must not forget that the
price which must be paid for those advantages, is our tak-
ing up again with a part of that burden we had laid
down, and from which we have been relieved during
a period of four years. I only mention this, that Hon.
Gentlemen may not believe, that by sweeping away
this scheme, all is done that is to be done.-.--
(Hear.)--The Committee will not fail to perceive, that in

combined with the denciency at the 4

all I have stated I have assumed the fact of the existence

of a Sinking Fund, or of some fund by whatever
name it is called, which will have the effect of pre-
serving our national fame, and prove a national benefit.
I assume the existence of a fund which will enable us to
meet any sudden finrncial difficulty or any iinforesenn
public exigency. The present year affords an illustration
of all that I mean. During the present year we had a
sudden falling off in the Revenue, and a foreign exigency
coming upon us unaware; and I would ask, what
would become of us if we were that country which
should square its income and expenditure eo exactly
as not to be able to meet the call which must ne-
cessarily he made in the event of those emergencies to which
I have alluded.._ (Cheers.)--I do not now inquire what
amount of surplus revenue would inset- such sasualties,
But if I might be allowed to give an opinion on such a
subject, judging from experience, I should say, that it
would require a proportion of five millions out of fifty.
In this particular I am only stating my impression
to the House, and not by any means by decided con-
viction. But, for the present year, the question which
arises, and which the COmmittee have to decide is whethco
the deficiency which I have stated in round numbers at

three millions, and which there appears every prospect of
being less at the end of the year, is to be made provision
for by extraordinary means, by imposing new taxes, or
whether we should take credit on the Consolidated
Fund, and not decide fully upon making up the
deficiency, and meeting on difficulties until the year
1827 is ended. The question is, therefore, whether
the amount of Exchequer Bills now out, is such as
would bear the effect of this hypothetical action ; or whether
the amount in circulation, and their price is such as
that it would be dangerous to admit the attempt.
At the price of Exchequer Billeare now at a
premium of fifty shillings on the hundred pounds, and
it is well known that they bear a small in,erest. From
the price, therefore, we cannot conclude that there is an
overstocked market. Thk whole amount of Exchequer
Bills outstanding is twenty-three millions, 800,0001.
supposing us even to go on at the rate we have for the four
months past; supposing all the accounts we have re-
ceived, I will not say of the reviving prosperity, but
I may say of the reviving activity in manufactures and
commerce, prove fallacious, taking things at the worst,
the Committee will agree with me that the utmost to
the amount of outstanding Exchequer Bills can extend
at the expiration of the present year will be twenty six
millions, seven hundred thousand pounds. Without
taking any thing of the prophet on myself, however,
and only consideting the accounts which come •from all
parte of the country, I do not think I can be considered
too sanguine when I suppose that there will be an accele-
rated ratio of revenue during the rest of the year.___
But, supposing that we were to rely solely upon those re-
sources, calculating at the same rate for the remainder of
the year, as for the portion already passed, even then there
would be a lesser quantity of Exchequer Bills outstanding,
than had ever been outstanding before within the last
twenty years,—not as to the quantity actually in circula-
tion, but as to that quantity if added to the deficiency of
the present year. I also beg to call the attention of
the Committee to the 26,000,000 of Exchequer Bills
now outstanding, one-fifth is of a different nature
from the remaining four-fifths, and from Exchequer Bills
in general. The aggregate of these were advances made
by Government, and now due to then► to the amount of
five millions. These were represented by the different
public works, which he might considered as available, an
convertible securities. This would reduce the amount of
Exchequer Bills even taking the most unfavourable view,
so that including the deficiency of the present year,
they would amount to 21,000,000 only in .circulation,
which is less than had ever been outstanding during the
last 20 years. Under these circumstances I put it to the
commistee, whether it will be better to run the serious risk of
defraying the expenditure to be previded for by an addition
to the Exchequer Bills, and it will be for them to compare
the results of such a proceeding with the effect which
might be presumed to follow any other mode. For my
own part, and am strongly inclined to that method to
which I first I first alluded. The state of the country is
now hopeful, that
,its :prosperity cannot be consi-
dered as completely confined, but I trust that it is
proceeding to return gradually to its former power
and security. That it will attain it I have no
doubt, providod nothing extraordinary occurs ; and
provided also, that it is not hampered by any thing which
can divert the course on which it has already entered.
I state, Sir, that we have an improving revenue; but I am
not so sanguine as to imagine that we can overtake the de-
ficiency which has occurred ; but it will be wise, neverthe-
lees, to wait its realization or disappointment before
wo decine what other course is to be adopted.
Sir, If I had to decide whether I should take a course like
this without having the advantage of previously stating it
to Parliament, I should have felt the responsibility too
great ; but, having that opportunity, and bowleg ;

I have
nothing to keep secret or concealed—.nothing; to
keep back, I have the courage to say that to wait and to
expect is better than to be premature and precipitate. Sir,
I have laid this statement simply before the Co►mnittee, and
I think the peculiar character of the times justifies
this cause rather than that of resorting to a multitude of
figures, which would only perplex the subject, whereas the
single object that I have in view is to be clear and
perspicuous.—(Loud cheers.)—lnstead of concealing,
I am anxious to put forward every thing that the
House may be able to judge of the actual state of
the country. Nothing, now, Sir, remains bat to state the
supply, and the means by which it is to be met. The
Right Honourable Gentleman here stated the amount
of Supplies already granted by Parliament, being
altogether eighteen millions eight hundred and ninety-five
thousand pounds.) I will feel it my duty to call on
Parliament for, a sum to meet any unforeseen occur-
rences of about 500,0001. Upon the whole it may
be necessary to refer to the Consolidated Fund for
10,600,0001. The principle to be considered is, whether
under all the circumstances, we had not better go on
through the year with a perfect knowledge of the
state of the country leaving this great question of finance
for the next session of Parliament. At present, I fear we
would only prejudice the country, for we are without the
means of judging, and the proper comae to be pursued.
I am, however, very far from saying that it will he
neeessaay to keep up the expenditure of last year, but I
am also afraid of indulging in premises, for promises are
always exaggerated. All that I can say, therefore is,
that it is the determination of his Majesty's Winisters
to apply to this subject their best efforts.—(Loud Cheer-
ing)—My opinion is, that the course thus to be adopted is
that which I have recommended, and I entertain a sanguine
hope that its prosperity will soon become unequivocal and
that it will be enabled to rely altogether on its own
resources. The Right Hon. Gentleman then alluded to
a speech delivered by slr. Pitt in 1792, from which he
made a long (rotation, expressive of his confidence
in the [almost iuexbaustible resources of this country.
When the Right Honourable Gentleman concluded reading
the extract, he said, " These are the Words of Mr. Pitt,
and the author referred to this Adam Smith. I am wil-
ling to go hack to the year 1782, when this speech was
delivered, and to make it the guide and pole-star of my
conduct." lie then sat down amidst loud cheering.

Mr. HUME rose to addrece the House when we kit.