Star.
London, England, 1819-06-10 00:00:00

THE BUDGET.

The house having resolved itself into a Committee
of Ways and Means on the motion of the CHANCitL-
LOR of the EXCHEQUER,'
Sir J. YORKE rose, and begged his Right Hon.
Friend, who had felt, he was sure, for his former in-
terruption, would give way to him for a moment.—
He again wished to ask a Gallant Admiral, whether
it was intended to do any thing for Mr. Robert Sep-
ping, third Surveyor of the Navy ?
Mr. GROG DEN (the Chairman) informed the
Gallant Admiral, that such a question could only be
put in a Committee of Supply. The House was at
present in one of Ways and Means.
Sir J. YORKE sat down, lamenting that he should
have been mistaken.
The CHANCELLOR of the EXCHEQUER
then rose. As the House had already applied itself
to the consideration of the Resolutions on which he
intended to ground the financial operations of the
year, it only remained for him to enter into the de-
tails of the plans and arrangements proposed to carry
those operations into effect. The House had also
come to a resolution of rendering the Sinking Fund
applicable to the public service, and making a pro-
vision which would prevent in future years the ne-
cessity of continuing the practice of Loans. He
should now explain how those arrangements were to
be effected in the present year. In doing this he
should follow the usual course. He should recapi-
tulate on one side the Supplies granted for the cur-
rent year, and on the other the Ways and Me ins by
which they were to be met. He should then take a
view of the New Taxes, and point out the general
measures to be founded on the Resolutions which
the House had already adopted, in order to shew
how we might look in future to a settlement which
would render the imposition of new Taxes and the
raising of Loans (with the exception of a small loan
for the next year) unnecessary. So much informa-
tion was contained in the Report of the Finance Com-
mittee, and so much more had been elicited by in-
quiries in the House, that in recapitulating the Sup-
plies, he should have little more to do than to refer
to the Report of that Committee, and point out the
corresponding Ways and Means. The Army Extra-
ordinaries still remained to be granted ; but, adding
them to the other branches which had already been
obtained, the total for the Military Service of the
year would be, according to the recommendation of
the Finance Committee, £8,900,000. The whole
Supplies for the Navy were granted ; they amounted
to £6,436,000. Those for the Ordnance were in the
same situation, and consisted of £1,191,000. Under
the head of Miscellaneous Services, many items re-
mained for the future consideration of the House,
particularly the usual Grants for the poorer classes
of the Clergy, both in England and Ireland ; but
adding their amount to what had been voted, the
whole would come to £1,950,000. As some Supplies
still remained to be granted, it was not his intention
at present to complete the Ways and Means. But
the application of twelve millions of the Sinking
Fund would more than cover what was still to be
granted. The total amount of the Supplies which
he had mentioned was £18,477,000. To this were
to be added £1,570,000 for interest on Exchequer
Bills, and £430,000 for Sinking Fund on the same,
forming a grand total of £20,477,000. To meet
these Supplies, the House had already sanctioned
the Grant of—
The Annual Malt Duty - - - £3,000,000
The Temporary Excise Duties - - 3,500,000
The Lottery 240,000

Produce of.the Sale of Naval Storer - :554,000

Total -

_-• £7,074,000

.
It was therefore clear that, with the view of meet-
ing the supplies voted, a Loan of 1.:13,500,000
would have been sufficient for the service of the pre-,
sent year. But the measure lately adopted to return
to Cash Payments had rendered it necessary that
ten millions should be repaid, of which five millions
would go to the Bank, and the rest to diminish the
Unfunded Debt. To provide for all those expenses,
two Loans were to be raised. One fur twelve mil-
lions had already been contracted for by a public
competition. The other, also to the amount of 12
millions, he proposed should be taken out of the'
Sinking Fund. This would be, however, for the fu-
ture consideration of Parliament, and he should now
only state, that in order to affect the Funds as little
as possible, he intended to divide the twelve millions
.into twelve monthly payments, during which the
Stock would remain in the name of the Commis-
sioners. The sum intended to be taken would be
one million a month ; but in the January and July
Quarters only £9OO, WO should be called for monthly;
and in the April and October Quarters £1,100,000.
This appropriation of part of the produce of the
Sinking Fund, would still leave about £310,000 a
month applicable to the reduction of the National
Debt. The total amount of the Ways and Means
would therefore be £31,074,000 ; and as the Supplies
were only £20,477,000, there would be a surplus of
£10,597,000, which would be applied to the reduc-
tion of the Unfunded Debt in the following manner:
five millions would be repaid to the Bank, and
£5,600,000 to the individual holders of Exchequer
Bills. lie had stated that the first Loan had already
been contracted for. The terms were highly satis-
factory, and he was ready to admit had been tea•
dered so by the competition which had prevailed.
The Loan was raised by a subset iption to the amount
of twelve millions, for every 1:100 of which £BO in
Consols were to be given (the interest of which wasl
not retrospective, but would only commence from
July next, so that there would be no concealed bonus
in the shape of interest), and £62 18s. Bd. in the
3 ,per cent. Reduced. He trusted that these terms,
proved, in the most satisfaLtory manner, a spirit of
reviving confidence in the resources of the country.'
The other biddings for the Loan were as follows :
Messrs. Reid, Irving, and Co. 1:65 10s. Messrs. Ri-
cardo and Co. £6.5 2s. 6d. From this it would be
seen, that the list which had obtained the preference
outweighed very far those with which it had been
placed in competition, in the advantages which it
offered to the country, as taking the smallest portion
of Stock, it created the smallest charge both for ca-
pital and interest, to the country. The Loan raised

that morning, and the Loan taken from the Sinking
Fund, he Would regar,d as a joint Loan, in speaking
of the Stock created by the two operations. Consi-
dering them as a joint Loan, the capital Stock created
for the twenty-four millions raised, amounted to
1234,304,000 in the 3 per cent. Stock, taken partly in
the Reduced and partly in the Consols. • The interest
on it amounted to £1,029,120 ; the Sinking Fund to
4.402,594. It would here be observed, that he had
thought it right to carry strictly into effect the-pro-
vision made in the Act of 1813, for forming an ad-
ditional Sinking Fund, whenever the amount of the
Loan raised should exceed the Sinking Fund previ-
ously established. The observance of this provision
might have been dispensed with where a Loan was
raised for the purpose of diminishing the Unfunded
Debt. Ile had however felt, that where a Loan was
raised in tine of peace, the operation of the Sinking
Fund ought rather to be strengthened than dimi-
-1 niched, and had complied accordingly with the pro-
visions of the Act of 1813. To the sums he had
mentioned, the charge for management, £10,291
was to be added. The total charge of the Loan then
stood as follows:
interest £1,029,120
Sinking Fund 402,594
Management 10,291

• X1,44'2,005
With respect to the charge for management, he
wished to state that he considered the Bank to have
no claim for management on that part of the Loan
which was taken from the Sinking Fund, hut only
on the twelve millions which had been made in the
market. He had shew•n that the total charge of the
Loan was £1,442,005. The rate of interest to the
subscribers was £4 ss. 9d. per cent. The calcula-
tion being, that the average price of the 3 per cent.
Stock would be 69k. The total rate of interest paid
by the Public on the Loan, the Sinking Fund inchi-
ded, was £6 Os. 2d. per cent. He thought he had a
right to congratulate the House on a Loan to such an,
amount having been obtained' on such tetras. He
trusted they would not prove unfavourable to •those
with whom they had been negociated, though they
could hardly be justified as prudent on the part of
those who had agreed to them, with reference to the
present price of Stock ; but there was every reason
to hope that they would prove beneficial to them.
Before proceeding to the other parts of the subject, it
might be well that he should here advert to the mea-
sures which he conceived would be necessary in the
next year. As far as it was possible for him to judge
at present, he should think that the utmost it would
be necessary to raise nest year, would not exceed
eleven millions for the different branches of the pub-
lic service. This sum might be wanted in addition
to that of five millions to complete the payments to
be made to the Bank. If then twelve millions should
be taken from the Sinking Fund, as had been done
in the present year, but four millions would remain
to be borrowed in the market. So moderate a Loan
would produce little or no effect on the Funds (if it
should be necessary to raise a Loan at all); and that,
at all events, he thought he might be allowed to
hope, from the present aspect of Europe, would be
the last time he should have
•occasion to resort to the
money market in time of peace. The next branch
of the subject to which he would call the attention of
the House, was the consideration of the mode by'
which he proposed to realize the pledge given by
Parliament to raise three millions by new Taxes, and
the mode in which he purposed to apply that sum.
But before proceeding on this head, being on the sub-
ject of the Public Debt, he wished to state the
amount of the Unfunded Debt, and to show how it
would remain after the present Supplies werewonnd up.
The amount of the unfunded debt was at- present
about £49,000,000. The amount of Exchequer Bills
being £44,600,000. The Irish Treasury Bills, pay-
able in July next, amounting £4,400,000. These he
proposed to replace by £20,000,000 in Exchequer
Bills, which had already been voted by Parliament,
by a vote of £16,000,000, which he should move
that evening, and by an issue of Irish Treasury Bills,
to the amount of 2,500,000/. The total amount of un-
funded debt thus created would be 38,500,0001.—
This, compared with its present amount of 49,000,0001.
would give a diminution of 10,500,0001. Now, as
he had already stated, it was his intention to propose
that the sum of three millions should be raised by
new taxes, to strengthen the Consolidated Fund, to
enable it to support the charge of the loan raised in
the last and in the present year, to which, so rein-
forced, it would be about equal.

The amount of the charge of the last Loan wu L 1,600,000
That of tit,- present Lola - - - 1.442,000

The total being - ,3042,000
Being an excess of forty-two thousand pounds above
the sum proposed to be raised. The sum to be raised
it might be proper to divide between the two loans,
but as this was merely a matter of account, a little
might be given to one side or the' other without in-
convenience, though it would be *ell to allot to them
as nearly as possible the same proportion. He would
now proceed to the particular propositions which he
had announced it to be his intention to bring for-
ward. With respect to the consolidation of the Cus-
toms, it was impossible to go into all the minute va-
riations that were intended—a schedule of these
would shortly he produced. The only one of mate-
rial importance was that to which he had already
called the attention of the House—an increase of duty
on Foreign Wool. The others were all of a very mi-
nute description, and the produce of the whole he
took at 500 . thousand pounds per annum. Out of
such a variety of articles as were comprehended
under this head, some might give more—some might
produce less—some more than he calculated upon—
but he had no reason to expect that the result upon
the whole would be materially different from that
which he had previously anticipated. The whole of
the minute particulars would shortly be brought under
the view of every Member, by a separate schedule,
which he hoped would very soon be in their hands.
He had mentioned, on a former occasion, that a
considerable proportion of the sum proposed to be
raised was expected to arise from a transfer of part
of the business now carried on between the Boards
of Custom and Excise. It was intended to transfer
to the Excise certain duties which were before col-
lected by the Customs. These were the duties on
tobacco, coffee, and cocoa nuts.. On the last men-
tioned.article a higher rate of duty was at present
paid than on coffee. For many years the duties t.n
the two articles had been the same. But when it be-
came au object to bring coffee into more general uz,e
•

pardoipffoeserednctheawt acsomircaedeaiilna ittlsl,,facvocouora,
Nhont,pnr:orwcteeht;i:lejd.l4.,,,,
placedco l te
oNnuttheshsoauml de,
footing.svitlir.:felrei
He
ctieletno ta y. at •
notice severally the articles which came under of;,
head—Tobacco, Coffee, Tea, and Pepper. On i:;-
bacco thapxesent duties varied very materially. II-
Excise duty on American Tobacco was 93,
,-.• per !t).
On Spanish and Portuguese Tobacco os. and nn
West India Tobacco I To these he added the C.l,
toms duties, and the augmentation row propose:l on
these would make the total duty on rhuitation To.
bacco 4s.—cr. Foreign Tobacco 6s. 6 ;(I.—and on n).
reign Snuff's 6s. per lb. On Plant:ition Coree he pen.
posed to increase the duty from to li. On Est
India Coffee from Ild. to 15. 6d. anci on Foreign
fee from 2s. lid. to 2s. 6d. per lb. The d•ity On I'cr,.
per ha would raise from Is. INd. to 2s. 6d. pt...
The advance he had to propose on Tea he hail bef,a.r.
stated, went to raise the existing duty from 6 to 100
per cent. On Tobacco he looked for an increase of
revenue of 500,000/. on Tea of I,`,(`(.X`l. on Ccii,
and Cocoa 130AXV. and on Pepper 30,0n0t. 'firs
motive for transferring the duties he had mentioned
from tie Customs to the Excise was this, that it wtat
to effect a saving of nearly all the officers now em.
ployed in that branch of the public service. nil
arrangement would also afford considerable accom.
modation to merchants. Nothing was more complained
of at present than the multiplied regulations y:hicti
they were forced to observe, and the necessity they
were under of making applications on the same b...
siness at various places and at different periods of ti.e
day. But the principal advantage of this arrange.
silent was this, that it would prevent the adulterat:oa
of the articles which it comprehended. Some of these
were sold in very small quantities, and often ground,
so that it was not easy to determine whether ur nut
they were genuine. By the transfer of these from
the Customs to the Excise, a watch would be sobs's
them to prevent their adulteration. On this accoutt,
as well as on others, the tranfer was obviously do
sirable. Two other subjects were yet to be brought
under the consideration of the Committee--(Heal
—The first of these was the increased duty on MA,
which, he had stated in his general opening, he c.s.
culated would produce £1,400,000, including the
sum which it would raise in Ireland, to which he
'proposed all the new duties should extend, with the
exception of the Tax on home-distilled Spirits. The
sum which he had mentioned, he calculated, would
be raised by a duty. of Is. '2d. per bushel on Malt, or
9s. 4d. per quarter. When he first opened this sub.
ject to the House, he had certainly entered into some
details, to chew that the Tax which he had suggested
might be borne. Every inquiry he had since been
able to make had only served to strengthen the im-
pression which he had then on his mind. For infer.
mation on this subject, he would refer the House to
the Committee on Breiveries, which sat in last Ses-
sion, which would be found to contain much Yalta-
bee matter, which had been furnished to it by a most
respectable Gentleman, then a Member of that House.
With that Gentleman (he meant Mr. Barclay) he had
recently had a communication, and he would now
state to the House the view he took of this subject
Mr. Barclay had stated the real price of Malt in the
last
.year to have been 4s. below the prices which had
been quoted. According to him, though Sls. 4d.
had been paid for a finer sort of Malt, the general
purchases had been made at 775. 4d. Hops !:,1,1 then
sold for £24. or £25 per hundred weight. Muds of
the Barley grown last year was unfit for malting, and,
consequently, the price of Malt was higher now than
it was then. The average price in the present year
was 90s. But Hops had fallen to 4:10 per hundred
weight. The result then waS as follows:
Malt was in 1818 per Quarter .C 3 17 0
1- in 1819 4 10 0

Hops were now so reduced in price, that the Bspense
of Brewing a thiarter of Malt for Porter, which

was last year is 0
Was in the present year 5 Y 4

Deducting the Pike of the present year, there re-
mained in favour of the Brewei
This being the case, there being a balance in favour
of the Brewer of 10s. 4d. on the price of brewing
quarter of Malt, Mr. Barclay was of opinion that the
duty proposed might be borne without great 'men-
, venience; and he was further of opinion, that if the
present season should turn out as favourably as
present there was every reason to hope it would, the
Public might reasonably look forward--af be (the
Chancellor of the Exchequer) had stated on a former
evening—to a diminution of its price—(Heal, hear '1
He hoped, whatever might be the difference between
the calculations of various persons, that the House
would find the general result the same, and besatin-
fled that his position, that the present duty not oily
did not go to justify a rise in the price of Porter, but
was compatible with a diminution of price, atmr a
time, was fully borne out.—The only remaining ar-
,tide to which he had to call the attention of the
Committee was the duty on home-distilled Spirits.
It was not his intention that this measure should ex-
tend to Scotland or Ireland. The present duty oil
Wash for distilling Spirits, which paid Is. 9d. ou the
gallon, he proposed to add ;td. to, and charge, in fu-
ture, with a duty of 2s. krhe Sugar NN ash, which
now paid 2s. ficl. per gallon, he would render liable
.to a duty of 3s. 3d. The duty on Spirits, he calcu-
lated, would produce an increase to the Reverue of
£500,000. If the effect of this Tax should he to de
minish the consumption of Spirits, and increase the
consumption of the • wholesome produce of the
Brewery, no man would more rejoice at the effect et
the measure than he should; and with this feeling he
had thought it right that a Tax on Spirits should ac-
company the new Duty on Malt, to protec. both the
health and the morals of the People—Wear.lrear.)—.
Those concerned in the Spirit Trade had, howeve:
urged, that this measure would give the Traders it
Foreign Spirits an advanta.ge over them, if some
duty wcre not imposed on Spirits imported. On thi=
subject, he had come as yet to Po decision; but he
might hereafter find it necessary to come forward
with some additional measure to protect their inte-
rests from the injury it might sustain, if undue ad-
vantages were conceded to the Foreign Trader.—
Having gone. through the different su!;jects he had
wished to. press upon the attention of the Committee•
he begged to say, if on aay point he had. net beat
distinctly understood, he should be happy to aderd
any explanation that might be required..
'Mr. GRENFELL did aot clearly understand whet:
the Bight Ilono:n•able Geutlentan had :a.,1 en the

of el 1.000,060 that 'Wøuld' tot the
t.t,f next Vicar.
CHANCELLOR of the EXCHEQUER said
.-,;„„sent year the sum of E 13,000,000 had been
to hafance the expenditure of the year, with
",ome derived from our ordinary resources.
vetr, from the reduced charge of the unfunded
tro... other causes, he hoped the sum to be
wonld not exceed E 11,000,000, exclusive of
-..f..000,000 wanted to repay the Bank advances.
;yen, as row' .4:11.1.,000,(X)0 should be taken from
:;iika:g Fond, E 1,000,000 only would remain to
~,,:owed in the market, if even this could not be
That sum of £4,000,000 would be all that
vuld be necessary so to raise to complete the
•• as far as Ministers could possibly form a
tor t iat, or for necessary ear of peace.
Noted it would not be for them or
ucces,:ors to come to Parliamenrfor another
0..1,1- new Taxes. Having. fairly met the dif-
,ltie, of o.lc country, he trusted the beneficial ef-
; of the step they had resolved upon would
be telt, and that they would receive, the ap-
-I,s, of their Constituents, whatever feelings of
,notary trritation might be provoked in the first
;rove by the new but unavoidable burdens to which
Nvre called upon to submit. He concluded
roving his first Resolution, which was for a grant
(1;,000.000, by way of annuity.
\IL CP,ENFELL said, he had intended, either
.rjty or the day before, to have offered some
~.dirv::,ions on the Finances, hut had given way to
He trusted the Committee woad now allow
,:o so. He agreed fully in all which had
:31:1-:;c3 or the necessity of a Sinking Fund, but
~',ways been his opinion, that it 'should be a'
„:..g Fond formed of a surplus of revenue ; and
a great and proud boast for this country, that
-..; a war as we had been engaged in, We were
t,l say, we had a clear surplus income of
:,;,tO,OOO :11)c-we our expenditure.—(Hear, hear.)
;also :yieed in the necessity of increasing that
:plus to five millions. Even the Sinking Fund of
would enable us to place ourselves in a
:1:1;ion ca. nigh respect in Europe : how much more
oi:e of rivo millions? and when that should
tre lxconze eight millions, what Power in Europe,
world, would dare to trample on our rights,
;(,) i:15:11I us?—(Hear, hear.) With respect to the
1::, he was happy to say, it had, in every part, his
it.,est approbation ; and, what was more, it had the
avrc:aation of the Public.—(Hear, hear.) There were,
is red, a few individuals who would have preferred,
certain reasons of their own, a Loan of thirty
from circumstances which it was unneces-
a,y tor him to allude to now. He could rot, on
tai occasion, avoid adverting to the conduct of the
who had, he understood, refused to afford

:he Public that accommodation, by making cer-
n advances on. this occasion, which, through-
the whole continuance of the war, thty had
!ea in the habit of making on similar ones. • fle
r.ls not sorry for this conduct on the part of the
1:•.1: for two reasons: first, because he was persua-
the public would, on this occasion, soon learn how
they could do without the Bank, and next because
Bank had thereby shewn the disposition which
'ey felt towards the First Lord of the TT easury, and
Ric;lit Honourable Gentleman who had been so
,r; lent to them throughout the whole of the
He understood that though a majority of the
t,:.a of Directors had adopted this measure of little-

.ued hostility towards his. Majesty's Ministers, who
,3 now dared to dispute their high authority, yet
were some. Honourable Directors who had
rag.), opposed it—( Hear, hear.)—The Honourable
ttlenun concluded by adverting to the taxes,
ih he said would undergo discussion in the pm-

of the Dills through the House.
Mr. MANNING defended the conduct of the
rL of Directors. He was certain the Honourable
.r could not have obtained the information he
. ^lto the House but by a breach of duty and
a. on the part of the informer. As to the
. he (Mr. Manning) might have taken in
. ..he measure alluded to, he should
• ; he was bound by the decision of the
. .i4u did not shrink from taking his full share
eonsibilily for the measure. The Honourable
.tuber then proceeded to defend the conduct of the
ek Directors, who, he said, could not, consistent
,:h their duty, under existing circujestances, have
sonted to make an advance to the public of ten
Is on the Loan, but he denied that the Bank
sere actuated by any feelings of hostility towards
et Government.

Mr. PEARCE (of the Bank) also defended the con-
'of the Court of Directors. The charge of the
wrable Gentleman was, he said, unfounded, illi-

1, and uncalled for.

Mr. MELLISH took the same side. He strongly
tprobated the conduct of the person who could have
ren the information alluded to by the honourable
Member. If he (Mr. Mellish) knew that individual
would himself, to-morrow, move that he should
tly be turned out of Court. He could not, at
same time, refrain from suggesting to the Hon.
-user, that it was not quite justifiable to listen to
:amnion which could not be given but by the in-
: being guiity of a gross breach of duty and of
.4.lence, and afterwards coming down, and by a
.aent made in that House, subject the individual
ccsure. The Honourable Member then proceeded

the Bank against the charge preferred
it of having made immense profits, which
he said were wholly unfounded. One con-
1, however, the Court of Directors had, and
'was a conviction, that notwithstanding the charges
against them by the Honourable Member, the
Jle generally cor.sidered that the Bank had,
:0-g::,,at the whole of its immense and extensive
» actions, done its duty to the country—(hear.)
Auld be ready to meet the Honourable Gentle-
ea any of the charges he had brought against
lade, whenever the Honourable Gentleman con-
, it proper to bring it forward.
‘II'.GRENFELL in explanation, defended himself
A the charge of having improperly mentioned
ivision of opinion among the Court of Directors.
information was given to him by a Bank Direc-
'l the public street; when three or four other
!eniii-men were standing by, and no charge of se-
-1.*./.was given with it; be therefore had felt him-
T •,:,tif.ed in mentioning it again.
S'r JOHN NEWPORT comidered the Bank had
subjected tilentselves.to the censure cast on,