Treasury

ments of the state in financial matters. Practically the business. superintending control of the Treasury is still further extended, for no new departmental arrangements involving a change in the existing relations between two or more public offices can be originated or matured without the sanction of the Lords Commissioners of the Treasury. All plans for consolidating two or more public offices, or for altering the duties appertaining to an existing department, must be either initiated or sanctioned by a Treasury minute. This control over the other departments of state is vested in the Treasury by ancient usage, and is intended to ensure one governing and responsible power in regard to the expenditure needful for the public service. It is desirable that this control should be constantly exercised, even to the extent of preventing any temporary addition to the working staff of any office, or any increase of salary, extra allowances, or other emoluments being granted to individuals, or presents made of public property, by any other department, without the authority of a minute of the Treasury; so that Parliament can hold the Treasury responsible for every act of expenditure in each department.' It is accordingly the practice for the

Commons' Papers, 1854, vol. xxvii. pp. 99, 347. And see Appx. to Rep. of Com. on Military Organisation, 1860, pp. 469, 592-607. See also a paper on the Treasury Board, &c., in Companion to British Almanack for 1847, pp. 36-38. If a secretary of state, or other departmental head, requires additional assistance in his office, he communicates with the Treasury, stating the individuals he proposes to employ, and the salaries he recommends to be assigned to them, and requests the concurrence of the Treasury thereto. If the Treasury considers the arrangement objectionable, or the salaries excessive, they will suggest such alterations as they deem expedient. After these preliminaries have been agreed upon, if it is intended to create a new establish

ment, or to reorganise an existing establishment, the secretary or other presiding officer will submit to her majesty a warrant approving of the same. This warrant will be returned to him, signed by the sovereign, and countersigned by the Chancellor of the Exchequer. In this way, the control of the Treasury is secured, both in the inception and completion of the new arrangements. Rep. Com. Pub. Accounts, 1868, p. 45. Correspondence, and further correspondence as to the establishment of a new Department of Control at the War Office, Commons' Papers, 1867-8, Nos. 373, 373.—I.

Report on Public Income and Expenditure, 1828, pp. 5, 6. Rep. Board of Admiralty, 1861, pp. 172, 213. Rep. Com. Public Accounts,

Treasury to append to the annual estimates any correspondence had with other departments on such subjects, when it may be necessary to submit the same to the consideration of Parliament. And there is no principle of finance more important than that of maintaining an efficient control over departmental expenditure, such as can only be exercised by a central office, like the Treasury.'m

The Treasury is pre-eminently a superintending and controlling office, and has properly no administrative functions. The two spheres of duty are distinct and incompatible."

The ordinary functions of the Treasury consist in the preparation, under the direction of the political chiefs of the office, of estimates, reports, and statements connected with the public revenue and expenditure, or the financial concerns of other departments of state. It has also to decide upon appeals from the decisions of its subordinate departments, in all cases arising out of the receipt of revenue, and to determine as to the remission or return of fines, estreats, and property forfeited to the crown. This business is of a judicial character, and is guided by precedents, with which the permanent officers are better acquainted than the Lord Commissioners.P

The business of the Treasury has increased with the increase of public business generally, and from the duty which is more and more required of the Treasury, of exercising a rigorous control over the expenditure of all the other departments. Every sort of expense, or money question, in any branch of the public service, at home or in the colonies, comes necessarily under the supervision

1862, Min. of Evid. 841, 1172. Hans. Deb. vol. clxxxii. pp. 848, 890. First Rep. Com. Pub. Accounts, 1867, p. 12. Commons' Papers, 1854, vol. xxvii. p. 341.

" See Lord H. Lennox's and Mr. Gladstone's speeches, in Hans. Deb. vol. clxv. pp. 1751, 1787. On this

principle the charge of the Commissariat Department, formerly belonging to the Treasury, was transferred in 1856 to the Secretary of State for War; see post, p. 557.

Commons' Papers, 1856, vol. xiv. p. 562.

P Murray's Handbook, p. 128.

Prepara

Estimates.

of the Treasury; and no expense can be incurred therein, for any purpose whatever, beyond that which has been sanctioned by the Treasury. Practically, however, this rule is subject to some limitations, in respect to certain of the public departments. Since the appointment of a VicePresident of the Education Committee, the Treasury have ceased to exercise any direct control over the expenditure which may be recommended to them by that officer, for the promotion of education throughout the kingdom. In like manner, also, while the army and navy estimates are invariably submitted to the Treasury, who are competent to object to the details of any proposed expenditure for these services, yet, in the case of large undertakings, which have been deemed to be necessary by the military or naval authorities, the Treasury (especially in time of war) could not practically object. Should it appear, however, to the Board that any proposed expenditure, by any department, was disproportionate and excessive, the Lords would bring the matter before the Chancellor of the Exchequer, and if necessary, in a question of importance, through him before the Cabinet, so as to obtain a decision of the whole government upon the subject."

All departments of the state being subject to the tion of the Treasury in financial concerns, it is essential that every facility should be afforded to the Treasury for the careful preparation of the estimates of supplies required to be voted by Parliament for every branch of the public service. The routine observed in this matter is as follows: in the autumn of every year a circular is addressed by the Financial Secretary of the Treasury, to every department of the government, including the naval and military establishments, requesting that by a certain date an estimate of the sums required by the particular department, for the service of the current year, may be prepared, for

Rep. on Offic. Sal., 1850. Evid. 33, 34, 40. Ante, vol. i. pp. 558-569. Rep. on Misc. Exp. 1860, pp.

r

21, 22 [in Com. Papers, 1860, vol. ix. p. 473].

the information of the Treasury. The estimates are called for thus early, in order to afford time for considering the questions of supply, and of ways and means. They are framed, in each department, under the authority of the political head, who decides upon the items that shall be included therein; and in accordance with instructions conveyed to every department, through a secretary of state, to the effect that the estimates are to be framed as low as the exigencies of the service will permit. To facilitate a good understanding upon this important matter, it is customary that at least a month previous to the estimates being formally submitted to the Treasury, there should be a communication between the Chancellor of the Exchequer and the other ministerial heads, with a view to settle the principal items of the required expenditure. The estimates are then transmitted to the Treasury, to be drawn out in regular shape for communication to Parliament."

These departmental estimates, however, are frequently delayed in their respective offices, and the Treasury thereby prevented from bestowing upon them the necessary degree of consideration. And the amounts for

certain services in the civil estimates, even after consultation between the financial secretary and the chief clerks of the departments concerned, are often merely approximative.

In all ordinary cases, it devolves upon the Chancellor of the Exchequer to determine upon any question that may arise in the preparation of the estimates. But if the question be one of large national importance, and the demands on behalf of any particular service are greater than, in the opinion of the Chancellor of the Exchequer, the public finances will warrant, an appeal lies from his decision to the First Lord of the Treasury, and to the Cabinet.

Rep. Com. Pub. Accounts, 1862. Evid. 1312-1345. Ibid. 1865. Evid. 609-616, 2083, &c.

Preparation of the

It has in fact been urged, by the First Lord of the Estimates. Admiralty, that ministers connected with great departments, whose expenditure is liable to be altered by applications from secretaries of state, directing certain things to be done to carry out the policy of the government, should have an understanding between themselves in regard to the question of expenditure, and should not be required to communicate with the Treasury on matters of such high concern. Indeed, ever since the commencement of the Russian war, in 1854, the questions involved in the settlement of the army and navy estimates have been too large and important to be disposed of, either by the mere departmental and formal investigation of the Treasury, or between the First Lord of the Admiralty, or War minister, and the Chancellor of the Exchequer individually. They have been such as could only be settled by the Cabinet, assisted by the Chancellor of the Exchequer as a Cabinet minister. Accordingly an early communication takes place between the Chancellor of the Exchequer and these great departmental heads, upon the principal questions which present themselves in the framing of estimates, in order that these questions may be put into shape for the consideration of the Cabinet. This renders the subsequent review of the estimates by the Treasury, in the main, a formal proceeding; and confined to minor particulars. Moreover, the Chancellor of the Exchequer would consider his own responsibility to be chiefly in reference to the principal items; and as to smaller matters, and in all questions of rule, form, and order, he would rely upon the skill and experience of the departmental officers, at any rate for putting him in motion.t

Rep Com. Pub. Accounts, 1862, Evid. 1487, and see Mr. Gladstone's evid. 1543, &c. Considerable improvements have recently been effected in the framing of the army and navy estimates. But it is impossible to prepare these estimates so as to

make them tally very exactly with the subsequent expenditure, so many unforeseen causes derange the calculations upon which they are based. No item, however, is at any time calculated with a view to be in excess of what will be required for a par