1 MAY 1841, Page 10

POSTSCRIPT.

SATURDAY NIGHT THE BUDGET.

The Howse of Commons assembled last night, full of expectation to learn the nature of the Budget ; not only on account of the known diffi- culties of the finances, but because there had been rumours that Go- vernment meant to propose some very bold remedy for those difficulties, more especially with a view to the present political plight of Ministers, and the electioneering interests of their party in the event of a dissolu- tion of Parliament.

Before going into the Committee of Ways and Means, Lord JOHN RUSSELL surprised the House by giving notice, that on the first order- day after the 31st May, he should move that the House resolve itself into a Committee of the whole, to consider the Acts relating to the trade in Corn. The announcement occoasioned an extraordinary excitement.

The CHANCELLOR of the EXCHEQUER then entered upon his financia1 statement ; a clear and concise abstract of which we borrow, with some emendation, from the Ministerial paper the Chronicle of this morning— When he came forward last year he had anticipated that the expenditure would amount to 49,499,000G, and the income to 48,641,0001.; leaving a defi- ciency of 858,000/. The actual results of the year had been less favourable than he had anticipated, for though the expenditure had amounted only to 49,285,000/., the income had only reached the sum of 47,443,000!.,. leaving a deficiency of more than 1,840,000/. The right honourable gentleman then went over the revenue-tables, and enumerated the several items in the Customs and Excise in which there had been a falling-off or an increase. Among thee* in which a more marked falling-off had taken place he enumerated currants, molasses, spirits, sugar, tea, wine, and sheep's wool : but for the decline in each of these, a reason would readily suggest itself to the House. The diminished revenue from sugar and molasses, Mr. Baring attributed to the exorbitant price to which that article had risen ; the anticipation of a commercial treaty with France had naturally tended to interfere with the duty arising from wine ; and in the diminished consumption of spirits Ireland bore a large share—but, how- ever that circumstance might inconvenience his statement that evening, be should be ashamed of himself if he did not allude to it with sincere pleasure. The revenue from the Post-office had fallen short of his expectations; but that was owing not to a deficiency in the anticipated increase of letters posted, but to the increased expenses which had become necessary in consequence of the opening of railroads, and of the great augmentation in the business of the office. For the ensuing year, he calculated that the national expenditure would be—

Interest on the Debt £29,424,000

Other charges on Consolidated Fund

2,400,000 Army 6,587,000 Navy 6,805,000 Ordnance 2,075,000 Miacellaneons 2,935,000 Extraordinary expenses for Canada 180,000 Expedition to China 400,000 Making a total of £50,731,226

The items having been given in round numbers, the total would not exactly nree with them, but the total was as he had given it. The Chancellor of the Exchequer next entered on the items of the revenue which he anticipated for the ensuing year. The Customs, he expected, would produce 22,000,0001.; the Excise 14,000,000!.; the Stamps 7,130,00W.; and he thought he might rely upon it that the total revenue would not fall short of 48,310,000/. Thu would leave a deficiency of 2,421,000/. to be provided for. Mr. Baring entered into some explanations to show that the permanent deficiency, which he would really have to provide for, would be 1,700,000/., as several items of the expenditure- of next year were of an extraordinary character. Under these circumstances, it became necessary to find some means to make up the revenue of the country to 50,000,000/. No taxation could be so injurious as a permanent disorder in the national finances; and the sum they had now to provide for was so large as to make it absolutely necessary for them to act with some degree of boldness."

The question was, how to do so. Should Ministers fall back upon taxes which they themselves had not long ago repealed ?—the house- tax, for example, or the tax on coals ? Should they impose taxes on things that had been hitherto exempt—place a legacy-duty on real property, or a tax on agricultural horses? Were they to lay a tax upon new articles of strength, which had come into existence since the sys- tem of taxation, such as gas or steam ? Ought they to adopt the once execrated, though now popular plan of a property-tax ? Or might they not make some new arrangement of existing taxation, so as to obtain the needed supplies without adding to the burdens of the people ?—

He was sure that two articles—Sugar and Timber—had already suggested themselves to the House as those with which it was his intention to deal. The present duty on Colonial timber amounted to 10s. a load, and on Baltic tim- ber to 55s. This duty Lord Spencer had proposed to modify by raising that on Colonial to 20s., and reducing that on Baltic timber to 50s. a load. Mr. Baring intended to adopt the proposition of his noble friend. From this change in the Timber-duties Lord Spencer anticipated an increased revenue of 750,0001, but ,aid that he should be content with 600,000/. Mr. Baring should be content to take the same sum as Lord Spencer. He next explained that the alteration which he intended to propose in the Sugar-duties would still leave a protection of 50 per cent to Colonial sugar. He meant to leave the duty 011 Colonial Sugar at the present amount of 24s. per cwt.;' but that on Foreign sugar, now amounting to 63s., he should propose to reduce to 36s. per cwt. From this change in the Sugar-duties he expected an augmentation of 900,0001. to the revenue, but he would estimate it only at 700,000/. From sugar and tim- ber, then he looked for an increase to the revenue of not less than 1,300,000t. ; which would still leave a deficiency of 400,000/. to be provided for. His noble friend had that evening given notice of his intention at an early period to sub- nut the question of the Corn-trade to the consideration of the House; and if the propositions of his noble friend were agreed to, he should be under no un- easiness respecting the remaining 400,000/. If they were not agreed to, it would of course become his duty to make provision by direct taxation.

Mr. Baring went on to ask the House to look at the present aspect of public affairs. There was the German League extending its influ- ence and increasing its protective duties ; there was the American Tariff; and there was the Treaty with the Brazils, the renewal of which would soon have to become matter of negotiation. But it would be in vain to press upon those nations a liberal line of policy, if this country were to keep up prohibitions under the name of protection: they would

• To these amounts of the existing and proposed saw-duties must be added 5 per cent, on account of the augmentation of taxes last yeant. of whisk Mr. Baring still takes advantage, retort, "We hear what you say, and we see what you do." If there was any intention whatever to admit the produce of foreign coun- tries, the House would feel that they ought not to delay and postpone, until they lost the markets of the world, and had nothing left but ta give way with regret and despair.

The Chancellor then moved a resolution of form, that 11,000,000L be raised by Exchequer Bills for the service of the year 1841.

Mr. Got:reamer would not at present express any opinion on the pro- posed scheme for making up the deficiency ; but he was at a loss to know, how certain measures would produce certain estimated amounts of revenue; how the reduction of the Sugar-duties, for instance, could be expected to produce 700,0001., or the alteration of the Corn-laws 400,0001. And Mr. Goulbum wanted to know whether that 400,000/. derived from corn was to be in addition to the 1,200,000/. produced from the same source last year, and included in the amount of Customs re- venue upon which the present estimate was framed? Mr. Baring had given no explanation of those points. Mr. Goulburn then recapitulated the history of the administration of the finances by the present Govern- ment ; and reminded them that he had all along warned them of the consequences of the increasing expenditure, while they suffered the defi- ciencies to increase from year to year.

Mr. HOME received the financial statement with mixed satisfaction and regret : with regret, because the Chancellor of the Exchequer had not said one word of diminishing the extravagant expenditure—though the Tories had no right to taunt Ministers on that score ; and with sa- tisfaction, because of the proposed reduction of duties, which he thought would answer all that was expected of them. Had they been proposed sooner, there would have been none of the clamour against the Poor- law.

Mr. CHRISTOPHER declared that the proposition for altering the Corn- laws could be regarded as nothing but claptrap, until some specific ex- planation were given of the intentions of the Government.

Mr. GOULBURN wanted to know how the deficiency of 1,800,000/. of last year was to be paid ? The CHANCELLOR of the EXCHEQUER an- 'meted, that 800,000/. had been voted in Exchequer Bills for the pur- pose; and 750,00/. would be paid out of the funds of the Savings Banks.

Mr. WARD approved of the course which Government had taken ; and replied to the Tory taunts about the expenditure, by calling to mind, that the present Government had paid for all the wars they had undertaken.

Lord FRANCIS Eemeros was not surprised at the announcement re- specting the Corn-laws, though it was made by a member of the Government, the chief of which had made some strong observations upon this very subject ; but he was surprised that the discussion of this question should have been put off so long—hung up, as it were, for five weeks, to agitate the country. He could imagine the reasons !

This drew out Lord Joule RUSSELL ; who laughed at Lord Francis Egerton's show of alarm. He excused the delay, on the ground that other important measures already before the House, especially the Poor-law Committee, must not be impeded.

Lord SANDON demanded some immediate explanation of the nature of the proposed change in the Corn-laws. Lord Josue gave it in general terms. He should propose a moderate fixed duty, a principle which he had already supported ; and the proposition would be brought forward as a measure of Government—of a Cabinet united on the subject ; for Lord Melbourne would be regardless of the taunts which were ut- tered against him. Lord John thought that the juncture had arrived when it was necessary to apply the unanswerable theoretical arguments upon which were based the principles that Government had adopted.

Sir ROBERT PEEL condemned the wanton and unnecessary suspense occasioned by the delay of Lord John's motion, and by the ambiguity as to whether it was expected to raise a revenue of 400,000/. or 1,600,0001. from corn. Unless Lord John consented to submit his motion at once, he might be compelled : for the House would not make itself an instrument for agitation. With professions of retrenchment on entering office, and a surplus revenue, Ministers would be left at the end of the present year with an accumulated a deficit of 7,500,000/., in the face of a rising revenue. If the Opposition had voted for the Esti- mates, it could not share the responsibility of that state of the finances, for it mightobject to the policy which had rendered the Estimates neces- sary Mr. Baring's propositions might be very wise in themselves, but the immediate question was that of revenue ; and how would the country be extricated from her difficulties if his expectations of in- creased production were disappointed?

Lord Jose RUSSELL accounted for the large expenditure partly by the necessity of making good the great deficiency of naval stores which Ministers found on entering office ; and the Army expenditure had never been large enough for the requirements of the Opposition ; while they had sanctioned the policy which rendered an increase necessary in Canada and in China. Lord John did not think that the moderate proposal of a fixed duty on corn would create such agitation as was apprehended.

Mr. WAKLEY shared little in the exultation at the proposals before the House, on account of their vagueness, and because they were not made by a Government who could command any prospect of carrying them into effect. The only thing certain was the increased deficiency and continued expenditure. If the protection of the farmer was to be removed, that of the manufacturer should be removed too ; and he sug- gested that the whole subject of protective duties should be included in Lord John's motion.

Viscount Howlett supported the Government propositions, arguing from the evil effects of the Corn-law : the five weeks' suspense, of which complaint was made, could not produce more uncertainty than the ex- isting law itself. Mr. MARK PHILIPS, in the name of the manufacturers, repudiated all desire to retain protecting duties in their favour. Manu- facturers and shipowners would hail the relief offered by Government ; and he felt sure that the revenue accruing from the proposed measures had been greatly understated. Mr. AARON CHAPMAN feared that the change of timber-duties would destroy the Canada timber-trade, and, by consequence, the shipping-trade of the country. Mr. LADOUCHERE promised to discuss the great questions involved in Mr. Baring's announcement on a future occasion. He now explained that Government were prepared to extend their revision of the Tariff to

other branches of trade; but first they must grapple with the most im- portant question, that of the Corn-laws. He denied that the revision of the Tariff was a party question ; and appealed to the concurrence of different parties on the subject in manufacturing towns and the city of London, to show that the popular interest on the subject could not have been created by the mere circulation of the Import-duties Report, or by the manceavres of any one party.

The debate was carried on to great length : the announcement in the Budget being approved by Mr. VILLIERS and other Liberal Members ; while on the opposite side, the doubts which had already been expressed were repeated.

In answer to Mr. Heaums, the CHANCELLOR of the EXCHEQUER said that he intended to bring forward the resolutions, in which his scheme would be incorporated, next Friday.

The business in the House of Lords was unimportant.