come was equal to the public expenditure? The finance committee whose labours he was sure the House must highly appreciate, had addressed themselves to that general and comprehensive view of the subject; it was on their reports the resolutions which he had the honour to propose were founded, and to their reports he should therefore refer for the necessary illustration of those resolutions. He would first give a general view of his resolutions; and he would then more particularly describe the mode in which he proposed to carry them into effect. The first Resolution stated, "That since the termination of the war in 1815, the property tax in Great Britain, and other taxes in Great Britain and Ireland, which yielded a revenue of upwards of 18,000,000l. per annum, have expired or been repealed, or reduced." Of the particulars of that reduction an account had just been laid on the table by his hon. friend, which exhibited the various branches of the revenue in which it had taken place in each; and it thence appeared, that the gross amount of annual taxes reduced since the peace was, on the average of the last two years of their collection, 18,700,000. The second Resolution regarded the consolidation of the English and Irish exchequers. It stated, "That by an act passed in the 56 George 3rd, cap. 98, the revenues of Great Britain and Ireland were consolidated from the 5th of January 1817; and that in the year preceding the said consolidation, the nett separate revenue of Ireland was 4,561,3537. and the charge of the funded and unfunded debt of Ireland, was 6,446,8251. including therein the sum of 2,438,124, as the sinking fund applicable to the reduction of the debt; which charge exceeded the whole nett revenue of Ireland by the sum of 1,885,4727. without affording any provision for the civil list, and other permanent charges, or for the proportion of supplies to be defrayed by that part of the united kingdom; and that no provision has been made by this deficiency." By this resolution it appeared, that the whole amount of the Irish national debt had been thrown into the general mass of the debt of the United Kingdom. And here he begged leave distinctly to state, that he did not mean to say that Ireland had not, according to her ability, contributed her fair proportion to the wants of the (VOL. XL.) country. But at the period when the Union of Ireland with Great Britain took place it could not be foreseen that for fourteen years there would be an uninterrupted course of the most expensive war ever known. Indeed, to have contemplated at that period the enormous expenditure which the circumstances of the war subsequently called for, would have appalled the stoutest and most sanguine heart. This observation was applicable to Great Britain as well as to Ireland. When the enormous sums which it became necessary to raise by loan during the war were considered, every one must feel them to be such as it would have been impossible to calculate on beforehand. Whether, with a view to the capabilities of the country, all the arrangements which had been made were such as, upon a knowledge of its resources, would have been most advisable, it was now quite useless to inquire. But certain it was, that, from the peculiar situation in which Ireland was placed, arising from its disordered state in the year 1797 and 1798, the imposition of war taxes had been found impracticable; and if a larger proportion of revenue had been proposed to be contributed by Ireland, it would have proved a strong obstacle to the Union. The consequence was, that while Great Britain raised a large portion of its supplies within the year, Ireland was compelled to meet its extraordinary expenditure by loans. This produced a very important difference in the state of the debt of the two countries, as accumulated during the war. In the period which elapsed between the Union of the two kingdoms and the consolidation of their exchequers, while the national debt of Great Britain increased in the proportion of four to seven, that of Ireland increased nearly eightfold, or, to speak more correctly, in the proportion of 15 to 92. The debt of England had increased within the period to which he adverted from 413,000,000l. to nearly 700,000,000l.; and that of Ireland from about 15,000,000l. to nearly 92,500,000l. The inevitable consequence of this was, that the consolidation of the exchequers of the two countries imposed a great additional charge on Great Britain; amounting, as specified in the resolution which he had just read, to 1,885,4721.-The remaining resolutions were these:-"That the supplies to be voted by parliament for the present year may be stated at 20,500,000% (3 N) "That the existing revenue applicable to the Supplies cannot be estimated at more than 7,000,000l.; leaving the sum of 13,500,000l. to be raised by loan or other extraordinary resources. "That the sinking fund applicable to the reduction of the national debt, in the present year, may be estimated at about 15,500,000l.; exceeding the above sum necessary to be raised for the service of the year by about 2,000,000l. only. "That to provide for the exigencies of the public service, to make such progressive reduction of the national debt as may adequately support public credit, and to afford to the country a prospect of future relief from a part of its present burthens, it is absolutely necessary that there should be a clear surplus of the income of the country beyond the expenditure of not less than 5,000,000l.; and that with the view to the attainment of this most important object, it is expedient now to increase the income of the country by the imposition of taxes to the amount of three millions per annum." Such was the general view presented by the state of our finances, and the measures proposed for the maintenance of the public credit. The whole substance of the resolutions was, that in order to have a clear sinking fund of 5,000,000l., it was necessary to raise 3,000,000l. more than the present income. This necessity arose out of the repeal of the property tax and other war taxes in 1816. He was far from arraigning the decision of parliament on that subject, although it was contrary to the opinion of the government, the grounds of which it was unnecessary now to discuss. He had, however, sincerely hoped, that the repeal of this tax would have afforded to the country the fullest relief possible, but he had been of opinion (and he thought the event had confirmed it) that the country was, in the first instance, to look for relief from the renovation of public industry, and the restoration of public credit. To effect these important objects it was indispensably necessary to provide for a gradual reduction of the national debt, and it was therefore impossible to state that the revenue of the country was placed on a proper footing, until it afforded a considerable surplus beyond the expenditure. His present object, was, to place the revenue on the footing on which it would have stood had the proposed continuance of the property tax on a modified plan for two years longer been carried into effect by parliament in 1816. Had that been done, the imposition of new taxes would not now be necessary. The consequence of the adoption of the proposition which he made at that period would have been, that the country would have been spared 18 millions of debt, and would have avoided the difficulties that now presented themselves in repaying the ten millions to the Bank proposed by the secret committee of the two Houses of parliament; as under that arrangement this new debt would never have arisen. The measures of finance which had been resorted to by government in the interval between that period and the present, were, in his opinion, the best that could be adopted. They were indeed to be considered only as temporary expedients, but they had brought the country to its present situation without any diminution of credit, without any imputation on character, and without any tax on the necessaries of life. When the property tax was repealed a considerable arrear of it had not been recovered. The sums of that description afterwards received had materially contributed to lessen the public inconvenience which must otherwise have been felt.-The Bank, knowing the necessity of preparing for cash payments, certainly began to reduce their issues; but it was evident that cash payments could not be at once resumed; for the treasury of the Bank had been exhausted during the war, and time was therefore given to the Bank to make the necessary preparation. This gave government a facility in obtaining loans from the Bank, which was considered as affording the most convenient and the most economical means of providing the sum which was required to make up the supplies. The state of the country at the time made such a measure the most ad. vantageous that could be adopted; for it was then labouring under a want of circulation. In such a state of things the loan from the Bank contributed to revive public confidence, and afforded the means of considerable relief to the mercantile interest. So strongly was the necessity of the latter felt by parliament that a million and a half of exchequer bills were issued under its authority for the relief of that part of the community. Thus it appeared that the measures resorted to by his majesty's government under the circumstances of the country at that time were not only such as parlia ment had approved, but the most advisa- | ble in every point of view, whether as regarding immediate convenience or the effect upon the general financial system of the country. But every plan of temporary expedient must come to an end. The time had arrived when parliament was called upon to adopt a more permanent and systematic arrangement, and to ascertain the real amount of income necessary for the expenditure of the country. It was stated in his fifth resolution, that the sinking fund exceeded the sum necessary to be raised for the service of the present year by about two millions only. That statement was taken from the first report of the finance committee of the present year. But the finance committee had made reports before the revenue had become greater than the expenditure; and those reports extended until the present period when the surplus was 2,000,000l. The whole history of this progress was to be found in the fourth and eleventh reports of the finance committee of the last and antecedent session, and in the first report which had been presented in this. By those reports it appeared, that in the first year of peace a very considerable deficiency existed in the revenue as compared with the expenditure. The expenditure for the year ending the 5th January 1817, was 54,200,000/., while the income amounted only to 51,300,000/.; leaving a deficiency of 2,900,000l. That deficiency was made good in the course of the same year, chiefly by the payment of an arrear of the property and war taxes, and partly by a portion of the unexpended sum of the preceding year. The next year, namely, that ending the 5th January 1818, the improving prosperity of the country was evinced by an augmentation of the revenue, the expenditure being 52,956,000l., and the revenue 52,302,000l.; leaving a deficiency of only 654,000l. In the next year, it appeared, that the deficiency was changed into a surplus; for, in the year ending the 5th January 1819, the income was 54,053,9371., while the expenditure was only 52,370,152.; exhibiting a surplus of 1,683,7851. Still more favourably according to the report of the finance committee might the estimates for the current year be stated; namely, the income at 54,000,000l., the expenditure at 52,018,800l.; affording a surplus of 1,981,200/. The question for the committee now to consider therefore, was, whether, with so small a surplus, parliament could perform its duty to the public creditor by holding out any prospect of an actual redemption of the public debt? It was evident, not only that with so small a surplus as two millions that could not be effected, but, that if any sudden and pressing call for exertion, in order to maintain the stability and dignity of the country, should arise, we must necessarily be placed in a situation of considerable difficulty and embarrassment; the improvement of the income in order that it might produce a greater surplus must therefore be reckoned among those measures which were of the strictest necessity. The first consideration however was--what was due to the public creditor on the subject. He knew no duty more solemnly and imperiously called for. In 1793, on the proposition of Mr. Pitt, when that series of loans was commenced which now formed the greater part of the national debt, it was arranged that a sinking fund of one per cent should be provided for the gradual reduction of every loan contracted for by government. It was impossible that, at the period to which he alluded, Mr. Pitt could have had in his contemplation the great drain that that would occasion on the country, in consequence of the number and extent of the loans subsequently raised. At the same time, no obligation could be more sacred than our obligation to provide for the payment of the debt, contracted as it had been for the preservation of the country, and under the sanction of the national faith. The present surplus income of 2,000,000l. was certainly insufficient for the reduction of the debt. His plan therefore, was, to raise that sum to 5,000,000l. In his opinion, a real and effective sinking fund to that amount was necessary, and would be sufficient to improve public credit in a way that would discharge the obligation due to the public creditor. The nominal sinking fund at present existing would of course be reduced 13,000,000l.: it being proposed to apply that sum to the service of the present year instead of raising a loan to its amount. Whether that should be done in the way authorised by Mr. Fox's bill, or by any other means would be a subject for subsequent consideration. The country had as yet had no means of ascertaining what would be the operation of a really effective surplus of five millions. If the effect of the one million as proposed by Mr. Pitt had been proved by experience | be done by one tax or by another appeared to be so advantageous, that of five millions to him to be a matter of comparative unwhen in actual operation must be consi- importance; although he allowed that derably more so. Still, he thought it care should be taken to select such im. would be highly desirable, whenever the posts as might be least injurious to the circumstances of the country would per- country. The course which, in his mind, mit it-and he looked forward to the at- parliament ought to take was, first to show tainment of the object in a few years a determination to make a great effort by to give an additional security to the agreeing to the Resolution, that it was public creditor, by carrying up the sink- expedient to add three millions to the ining fund from 5 to 8 millions, which come of the country by taxation; and would make it somewhat more than one then to inquire in what manner the burper cent on the whole of the actual debt. then could be imposed so as to be attendThe benefits of such a sinking fund would ed with the least possible inconvenience be strongly felt in various ways;-by the to the various classes of the community. accumulation of compound interest, by He would now, however, enumerate the opportunity which the increased value the articles on which it was his intenof funded property would give of reducing tion to propose, in the Committee of some of the funds. He did not think he Ways and Means, that the contemplated was very sanguine in expecting that great addition to the revenue should be raised. improvement would also take place in the -The Committee was already aware that revenue. But whenever a clear surplus there had been at various times a consoof 8,000,000l. became applicable as a lidation of the customs, and that a measinking fund, the public might fairly look sure of that kind had been in contemplaforward to an effectual reduction of the tion last year, but had been postponed for burthens of the country, great national the purpose of a more mature considera. improvements might be undertaken with tion of its details. It was also his intenspirit and vigour, and property might be tion to propose a slight alteration in the improved in a degree affecting the inter- duties on various articles; but the only ests of every branch of the community. one to which he felt it necessary particuHe left it therefore to the House to judge larly to call the attention of the House whether the public ought not to be sa- was, foreign wool. The duty on foreign tisfied with an arrangement which thus wool was at present only a penny a laid a foundation for general benefit. pound, which was thought too low to protect the interest of the home grower of coarse wool. He proposed that the duty should be increased to sixpence a pound; which would operate as a protection to the home grower of that article against foreign competition. By that increase of duty he calculated that an increase of revenue would be effected of 250,000l. or 300,000l.: which, added to other slight additions to the duties on various articles, might be expected to produce under the head of Customs, about 500,000l. All the other articles on which it was his intention to propose an increase of duty came under the head of Excise. Of these the most prominent was malt. It was not at all his intention to propose the renewal of the whole of the war duty on malt; although he might be allowed to observe, by the way, that the reasons which had been so strongly urged by the gentlemen on the other side in favour of the repeal of the war duty on malt, had proved wholly without foundation. The first of those reasons was, that agriculture would be benefited; the second, that the revenue He now came, therefore, to the last of his resolutions; namely, that with a view to the attainment of the important object which he had just described it was expedient to increase the income of the country by the imposition of taxes to the amount of 3,000,000l. per annum. Although he should defer any minute statement on this subject until next Wednesday, in the Committee of Ways and Means, he would sketch the general outline of the plan which he intended to propose. He was very ready to admit, that there might be hon. gentlemen, who, approving of that general outline, might nevertheless be disposed to question the expediency of some of the details, when those details came to be submitted to their consideration. To that he could have no possible objection. All that he thought essential on the present occasion was, that parliament should take such a view of the subject at large as to evince their determination to make a great effort in order to place the finances of the country on a stable foundation. Whether that should year 81s. a quarter, and hops from 247. to 251. a cwt. The present price of malt was at the highest 63s. a quarter, and of hops 8l. 10s. a cwt. Mr. Barclay stated to the committee last May, that the aggregate amount of the expense of the brewer in materials and manufacture was at that period 9l. 16s. 8d. the quarter of malt. At the present moment, the expense according to the reduced rate of the materials could be only 6l. 17s. 4d. the quarter. The difference was, therefore, 27. 19s. 4d.; of which he proposed that only 9s 4d. should be taken by the additional duty for the public service, still therefore leaving to the brewer a profit of 21. 10s. on the quarter of malt, greater than that which he made last year. The produce of this additional duty he estimated at 1,400,000l. would be more easily collected, and would perhaps be increased in consequence of the greater consumption; the third, that the price of beer to the working classes would be diminished. He was sorry to say that no material advantage had been derived by the agricultural interest from the repeal, nor had the consumption of malt been increased by it. The accounts on the table would show that in the last year of the existence of the war duty on malt, the amount of malt on which duty had been paid was 26,200,000 bushels. In the succeeding year it fell to 17,000,000 bushels; a circumstance which he was aware was, in a great measure, attributable to the badness of the season. But in the last year the amount rose only to 22,000,000 bushels: being a smaller quantity than when the war duty was in existence. Instead, therefore, of any improvement in the revenue having taken place from the repeal of the duty, the revenue had materially suffered. Nor was the third reason assigned for the repeal of the duty-namely, that it would give the poor the advantage of having their beer at a more moderate rate-proved by experience to be better founded than the others. The price of beer certainly experienced a trifling fall for a short time after the repeal of the duty; but it immediately rose again, and at the present moment it was as high as at the highest periods both of the duty and of the materials. He thought he should be able to prove that the additional duty which he meant to propose, namely, half the existing duty, or one shilling and twopence a bushel, making the whole duty three shillings and sixpence a bushel, would not only not justify the brewers in raising the price of beer, but that, notwithstanding its operation, they might still be enabled to lower the price to the public [a laugh.] He requested that those hon. gentlemen who appeared to be entertained with this declaration would turn their attention to the Report made last year by the committee on the subject of the Price and Quality of Beer; a Report which contained a great deal of very valuable information. They would there see the evidence given by a gentleman of the highest respectability, and whose means of knowledge were necessarily extensive, (he meant Mr. Barclay) with respect to the comparative price of malt and hops at various periods. According to the statement of that gentleman, malt was last The remaining articles on which he intended to propose an increase of duty were also under the head of the Excise; although they were principally articles on which a double duty was at present collected in the shape of customs as well as excise. By the double collection of duty, a great addition was made to the expense of management. Government was desirous, therefore, to try the experiment, how far it would be better to collect the duties in question, under one instead of under two branches of the revenue, as it would be a great relief to the merchant to be exempted from the trouble and charge arising out of the double accounts and payments now required. The articles which he was about to mention were subject to considerable adulteration, and various frauds respecting them were prac tised to a great extent. Now, it was well known, that that branch of the revenue, the Customs, had no means of detecting adulteration or other frauds, after the articles subject to such imposition: were given out of the king's warehouses. The Excise, on the contrary, possessed the means of detecting those mal-practices, and had in fact brought to justice many of the perpetrators of them. It was therefore desirable that the articles on which he intended to propose these additional duties should be placed under the branch of the excise rather than under that of the customs. They were tobacco, of fee and cocoa, tea, British spirits, and pepper. The additional duty which it was his intention to propose on tobacco, eẹ estimated would produce 500,000l.; ad he was persuaded that even under that al |