Star.
London, England, 1813-04-01 00:00:00

attelee et tiltraireper. kyr.
rd thelionse baring resumed
dared to be received tO-1146A0V1.
NEW TAXES.
The Houle then ',staved itself into, a
of Ways and Means..
The CHANCELLOR of the EXCh
'said, that the first observations with which he should
trouble !he Committee related to a transaction that
lad taken place that morning. A proposition had
been made by Government to a considerable body of
Tankers to fund a certaio amount of Exchequer Bills,
provided the measure should receive the sanction of
parliament. It was proposed to theie Gentlemen,
that under the authority of Parliament twelve mil-
lions of out-standing Exchequer Bills should be im-
eladiately funded in the same Stock as that in which
Cal had lately been uniformly funded ; namely, the.
r, per Cent. Navy Annuities. For every £lOO so 1
ft.iaded the subscribers to receive £ll5 10s. of those
Annuities. These appeared every reason to believe, I
that notwithstanding the premium which the subscri-1
bers would enjoy was smaller than on most other oc-
tasions of a similar nature, yet that it would be gene-
rally tatisfactory and acceptable. The rate of :me-
rest the public would have to pay on this 8115 10s.
would be res 15s. 6t1.• which added to the Sinking
Fund Jel 3s. Id. would make a total charge of 86
18s. 7d. for every £lOO of gxchequer Bills funded.
On comparing this charge with the charge which
would have been incurred had the funding been
agreed upon to take place in the Three per Cents. at,
the present prices of the two Stocks, it would appear.
that the total charge would be nearly equal. If there‘j
fore it was an advantage (and it certainly was so)
to create Five per Cent. instead of Three per Cent.
Stock, that advantage had been obtained without any
addifonal charge to the public. It was true that
last year in the first instance only £lOB ss. in the
Navy Five per Cents. had been offered for every
£lOO of Exchequer Bills ;—but the measure sac-
teeded only partially—less than half the amount
required was funded—and it was not until a consi-
derable addition was made to the premium that the
whole sum, amounting to above twelve millions,
was subscribed for.—That, however, which he had
mentioned was only a part of ,the proposition which
bad been Made. In addition to the proposal for
funding twelve millions of Exchequer 13ills, it had
been deemed advisable by Government to give an"
option to such of the holders of Exchequer Bills as
might think fit to subscribe an additional sum of 50
per cent. in money, for which they should receive
debentures. It appeared desirable to vary asanuch
as p-•ssible the nature of securities of this description,
and to multiply them frem year to r!ar as occasion
might require, in order to suit the ditferent classes
by whom they might be held. It was thought ad-
visable, therefore, to propose, for this additional sub-
scription, a security between that of the public funds
and that of a floating security (such as Exchequer
Bills), transferable from hand to hand. For this
purpose it had been proposed to issue debentures,
beating. an interest of 5 per cent. capt6le of being
funded at a certain period, at a fixed rate of stock,
transferable by endorsement alone, and thus possess-
ing a character of greater solidity than that species
of security which was transferable from hand to
and *hitt was therefere subject to deterioration
by loss or robbery. It-was proposed, that the interest
on each of the debentures should be payable in April
and October, and that it should be at the option of
the holders to have them paid either in money or in
stock on the sth April, 1615, or any sth of April
afterwards • during the war, or fiwally on the sth of
April twelve months after the ratification of a treaty
of in ace. If stock were accepted, it should be ex-
changed for these debentures, at the following rates,
viz.—for every £lOO debenture, reloo.in the 5 per,
cent. Navy annuities, '>el2o. in the 4 per cents. or
£l5O in the 3 per cents. ;—the funding. in any of
those stocks at those rates bringing an equal charge
on the Public. By this measure an advantage
would be gained- by the public of obtaining whatever
sum of money might be subscribed, at a rate of total
charge of 18s. percent. less than would be created
by the funding of Exchequer Bills, and the loan
si hich it would_be necessary to contract, would be
very much contracted—an object under• the present
circumstances of the highest importance. While
the Public derived this benefit, the holders of the
debentures" would enjoy the advantages which he had
ahead), enumerated, of having at a fixed period an
option of stock or money, and in the mean while of
possessing a security as readily transferable and yet
more stable in its nature than Exchequer Bills. Hi
was aware it might be said that in granting an op-
tion to the holder% of debentures to take stock or
money, they would of course take that which at the
period would be most against the Pinblic. But on
a fair consideration of the subject, he thought that!
t'is and other disadvantages would be fully compen:
sated by the advantages which the Public would
derive trom the plan. In the first place, if the stock
were preferred, there was no reason to suppose that
at the period contemplated the funding would be
snore disadvantageous to the Public than at the pre.
sent moment. He had already stated his intention
to propose a grant to the Commissioners for the re-
duction of the Mitional Debt of One per cent. on all
Exchequer Bills outstanding. He also proposed an
addition of one per cent. on the debentures as Sink-
ing Fund, that they might be redeemed at the same
poiod. He was not sure that be had explained the
nature of these securities sufficiently to Gentlemen
who were not so conversant with. such matters as
those with whom he had conversed in the morning,
bat he had giv.tIL an outline of their character, and
he- should be happy to afford any further information
respecting them that might be required. The amount
of the charge that would be brought on the Public,
if the whole should be accepted, would be 4360,000,
consisting of.five per cent. interest, and one per cent.
Sinking Fund. He would now proceed, in confor-
mity to his notice, to submit to the consideration of
the Committee, the taxes which would be necessary
in order to make that provision for the Sinking Fund
which was involved in the Bill in progress through
the House, provided it passed into a law. If, on the
other hand, Parliamem should not think it advisable
to give The Bell their sanction, at least he would not
be liable to reproach for having neglected to provide
supplies . which might be applicable to defray the
charge and Sinking Fund of Exchequer Bills out-
canding. JLeverting to the fiaancial ozaniencias oaf

services of the current year ; but it was so important
to maintain the Consolidated Fund, that it appeared
to him to be very inexpedient to take such a step,
and to be far better, however inconvenient id other
respects, to add to the existing taxation. In addi-
tion to the £870,000, which in the developement of
his fipancial plan be had shewn to be necessary' to-
supply thealrain on the Sinking Fond, the Commit.
tee would recollect, that in providing. the supplies
for the last years there was oae proposition—the
tic tien Duty, which he had calculated at £lOO,OOO,
and which having abandoned,• it became necessary
for him to supply the consequent deficiency in the
Consolidated Fund. The, total sum, therefore, that
it became necessary to raise by permanent taxes,
was nearly a million of money, viz. 8870,000 to be
applied to the Sinking Fund, and £lOO,OOO the defi-
ciency accasioned by the abandonment last year of
the Auction Dry. For the purpose of providing
the last-mentioned sum, it was his intention to pro-
pose to the Committees an-additional duty on To-
bacco equal to that imposed on it last year, which
duty he would estimate at £lOO,OOO, although pro-
bably it would produce more.—He was not aware
that this new tax would occasion any material incon-
venience ; or at least he was persuaded that it would
occasion as little inconvenience as any that could be
deviled'. With regard to the greater sum of 8870,000,
-the principal tax that he meant to propose to meet
it, was an increase of the CustoM duties. He thought
this would be infinitely preferable to any augmenta-
tion of the assessed taxes, or of the stamp duties,
which bad lately been so much increased. As the
most convenient mode, he proposed to raise the sum
of 8 or £900,000 by a general increase of those du.'
ties, with certain exceptions. These exceptions were
the duties on tea, sugar, wine, raw silk, and cotton
wool. On the other articles which paid custom duties
he proposed an increase of 25 per cent. No such
general augmentation had occurred since 1804, and
only one partial and small increase in 1815. Under
the existing circumstances this increase would be
comparatively little felt. For the country had, until
recently, been so excluded from foreign trade, that,
until lately, all foreign articles had come to our mar-
kets, what with the difficulty of transmission, the
charge of freights, &c. under an augmentation of ex-
pense, greatly exceeding the proposed rate of duty.
Many circumstances had, however, recently com-
bined to render those articles at the present moment
cheaper to the consumer, even with the increased tax,l
than they were last year without it. He world esti.
mate the amount of this increase of the Custom du-
ties, at from 85C to £900,000. In addition 'to this
augmentatioo of the Custom duties, he meant to pro-
pose a slight augmentation of the Excisean a parti-
cular branch of it. He proposed that this should
take place on Fench wines—an article of mi re luxury,
entirely confined to the higher orders, and -if checked
in the importation, or wholly shut out, he should con-
sider it to be a rational advantage.—(Hear, hear.)—
On French winos, he proposed to lay an additional,
excise duty of Isd. a bottle, which would be about
18d. to the consumer ; a tax that could not be consi-
dered very burdensome to the country. The pro.
duce he estimated at (30,000; no very important
sum, and one indeed which it would hardly be worth'
while so to raise, were an the subject itself one so'
proper for taxation, that even were it likely to pro-
duce less, or were the consumption to be so &mi.
nished as to lessen the existing produce of the duty
upon it, he should still tees it to be his duty to,nialte
his present proposition. The estimated predeees
therefore, of the permanent taxes would be, R 550,000
from the general increase in the consolidated duties
of customs, RlOO,OOO from the iuty on tobacco, and
R 430,000 from the duty on French wines, making in
the whole a sum somewhat short of a million, to an-
swer two objects—to the supply of the Sinking Fund,
and to make good the defalcation occasioned by the
relinquishment last year of the Auction Duty. And
here he w, uld observe, that although he had thought
proper thus to replace the proposed Auction Duty, he
had by no means lost sight of it. He did not think
it would he satisfactory tolake it for the purpose of
contributing to the, immediate supply ; but he re-
served to himself the liberty of proposing means to
prevent fraud, and to regulate the duty, it he should
thereafter find it necessary to do so. Those which he
bad mentioned were permanent taxes. He should
next propose to lay some further taxes under the head
of war taxes, for the general purpose of assisting the
supplies for the year, and for the particular object of
providing for the one per cent. Sinking Fund on Er..
chequer 13111 s outstanding on the sth of January of
each year, to be granted to the Commissioners for
the reduction of the National Debt. These war taxes
he wished to class under the heads of imports and ex-
ports. The first that he should propose would be a
general increase of duty on the importation of an
goods and merchandise the manufacture of the French
empire, and of all countries dependent on France. It
was true that trade licences to France and her depen-
dencies were not now granted by Government, but it
was obvious that circumstances might render it politic
to renew them ; and we had an undoubted right to
retaliate on the enemy all the oppression in which he
had persevered against our commerce. He proposed
to double the war duty on such articles. Those war
duties were at present equal to one-third of the conso-
lidated duties. He proposed to add to them to the
amount of the other twathirds, thus making the Whole
of the duties in war double the duties in peace on
French goods. It was extremely difficult to estimate
the probable produce of this increase. If he took the
average of the last three years, he would say that
it might amount to £200,000. Some articles were
wholly prohibited, of others, the ditficulty of im-
porta:ion was great; but by taking the various aril-
'cies, and allowing one as it were to insure the other,
he was confident the produce would not fall short
of that which °he had just stated. With respect
to the exports, the trade about to open, would, in
all probability, be so great, that no material in-
convenience, could, in his opinion, arise from adding
a half per cent. to the present export duties.—
In peace, such a proposition would be impolitic—
not so at ibe present =neat. lie calculated that

he 'Maghthe might etarificitntly
here; reverting to the increased
atlas!. the Right Hon. Gentleman to
were to be applicable?) —Cer-
import duties would he on goods
countries depencht4 de Prance., ICJ
gi'. great pleasure to see those digital
listisene by the diminution of the number of those
dountries—(Hear, hear.) They were not to attach
*) the exPerts of any country iq amity with his Ma.
ksty rand the declaration of that amity would imme-
diately cause the cessation df those duties. The only.
other additional duty on exports which he meant to
.propose, was. a duty of a penny a pound on the ex-
portation of foreign hides, which would operate very
advantageously on bur leather manafactures in fo-
reign markets. The only remaining article of pro.
posed taxation was one which he was induced to
adopt on political as well as on financial principles;
it was a duty on the importation of American cotton
wool. The American Government had declared their
principal ports in a state of blockade, extending &pia
Rhode Island southward; thus endeavouring to de;
price our manufacturers of that important raw mate.
real. He had every reason to believe, that if proper
encouragement were given to the importation of cot:
ton-wool from our own colonies, this stoppage on the
part of the Americans would be wholly innoxious to
this country. It was obvious,"however, that to cre-
ate this encouragement, it would be necessary to se-
cure the merchant bringing cotton-wool from such a
distance against losing by his speculation. If the
merchant incurred the danger of having his cotton
intercepted in our market by the American cotton,
he would be in a state of little promise and great un-
certainty. Unfortunately such an occurrence had
lately taken place. When the American Government I
imposed the embargo on their ports, which occasioned
a temporary stoppage of the exportation from the Uni-
ted States of cotton-wool, encouragement was given
by Government (in order to prevent injury to the Bri-
tish manufactures) to the importation of large quan-
tities from our own colonies. But unluckily it came
too late--the Americans had taken off their embargo;
and, unprotected by such a countervailing duty as
that which he (Mr. V.) was about to paopose, the
British merchant su.tained very considerable loss. It
was to prevent the occurrence of similar events that
he was induced to make the proposition to the Com-
mittee. The Committee were aware that the sea Island
cotton was the finest imported from America. The
object which he had in, view was, to procure the fine
article from the East Indies, by affording a sufficient
encouragement to the importers. There was at pre-
sent, a sufficieat quantity on hand of every kind, ex-
cept the sea Island, and it was a necessary ground of
his measure, intended to promote the importation of
the finer kind, to prevent the ruin which would fall oli
the importer by any sudden competition. With this
view he proposed to lay a protecting duty of three
halfpence per pound on all American cotton imported
in British ships, and a duty of .6cl. per pound on all
such cotton imported in Foreign bottoms. There was
only one objection to this measure, which was, that
it would raise the price of the raw material on the
manufacturer, in the first instance, and eventually
on the consumer. With respect to the home con-
sumer, he thought, however, that it could be hardly
felt, and with regard to the export trade, he thought
there was no reason apprelend any rivalry on
the continent of Europe, and America was at pre-
sent out of the question. He apprehended that no
rear could be entertained of any competition on the
Continent, when the duty now exi.ting there on
cotton wa. five shillings per pound, whereas the
duty in contemplation ',ere would only amount to
ii;itepence entirely, which threw at present a sort of
monopoly of this article into our hands. He con-
ceived, at the same time. that it would be desirable
that Government should have the mote., of varying
this measure according to circumstances, and with
thit view he had it in contemplation to propose, that
'a power should be given to his Alajesty In Council to
suspend cr reduce any of those War duties, atcording
to any circumstances which might arise at this im-
portant crisis to make it expedient to do so. The
Right ..-lon. Gentleman then concluded by saying,
that he hoped he had provided the charges required
by the i:nblic service in the least objectionable man-
ner; an proceeded to move his first Resolution, for
providing for the outstanding Exchequer Bills.
Mr. BARING allowed that the Right Hon. Gen-
tleman had made very ample provision for the pur.
poses which he intended ; and though he (Mr. B.)
should not now make any observations on the tinan•
cial part of the statement laid before the Committee,
he could not suffer the proposed measure of laying
a duty on the importation of cotton from America
to pass unnoticed, conceiving it to be a subject of
the very first importance. He felt no personal in-
ducerrent for opposing the measure, as he was neither
a manufacturer or importer; but his; attention had
'been particularly directed to the subject, in conse-
quence of Mr. Perceval having attempted to intro-
duce a similar measure two years ago, which he after-
wards abandoned. The same objections still existed
to the measure ; and there was a greater degree of
danger, for the proposed duty was larger. The Com-
mittee must be aware thataif American cotton came
at all to this country, it must come in neutral bot-
toms, and therefore, that the whole groundwork of
givingencouragementtoßritishshippingwasnugatory.
The Committee should pause before they sanctioned
a step which, if it proved to be a false one, would
I endanger the industry of many thousands, and a ca-
pital of so, many millions. If it ended in establishing
a competition to any extent, the mischief would be
irretrievable ; because, though the Right Honour-
able Gentleman spoke of a suspending power to be
vested in his Majesty in Council, it must prove
wholly insufficient as a remedy after the evil had
occurred. The encouragement of the raw material ,
he thought the last step which a practical States.i
man could take; and he trusted the absurdity and
danger of the measure would be proved by evidence
at the Bar of the House, which he thought it the
duty of those Gentlemen connected with thenanu:
facturing districts to call for. The fact was, that
India did not produce the cotton they wanted ; and
it was well known that the Sea Island cotton was
selling at twenty-pence per pound, while the best
East -India cotton did not bring more than half that
price. The Honourable Gentleman next contended
that it would be impossible to keep the American
mama out of the :nuke; by blockNilag t e Amen.

I WOO been-us---nwlireti
~ .
Report was or. then at the head of the.Treashry (Lord Si riouC i Increasarevenai
did not provide a Sinking rtmd for the shin funded ly.--.{Mr..l3aring 1
t
in that year, yet the takes imposed ell defray the in. port duties, asked
terest and charges of that sum had exceeded by. font. at countries they
to. a Committee lor five million; estimate. This.eacesf of'produce . inly the increased i
which went to the Consolidated Fund, he (Mr. Van: coming froth all coui
EXCHEQUERw e
justified in applying to the ould give bim Eic
.._ •