POSTSCRIPT.

BA

Those who expected Bonnie " bold stroke" from Mr. Disraeli in finance something original and ad eaptandum, will have b disappointed by his Budget speech in the House of Commons as those who hoped for a break-down. It will be seen that be elites the anticipatory report of his statement which we publish 17th of March, and that, as the " rough draught" of the Budget then anticipated, he now resolves to do—nothing. Although he ad- heres to that main portion of his plan, the perhaps unfair exhibition of illustrations before their season may have been the cause why he ha pruned his speech of all figures ala Disraeli ; so that in its avowed form it is unprecedented among his addresses for plainness and lucidity. We must confess that it is a great improvement on the rough draught of March 17. What remains of the literary artist is the skill and tact with 'which he arranged and set forth his materials, so as to be at once most intelligible and most effective. His speech also shows that he has been a diligent and faithful scholar of Sir Robert Peel, whose financial policy is now for ever confirmed by the hearty adoption of the leader of the last remaining party, worth being so called, which bad hitherto with- held its adhesion. Not, indeed, that Mr. Disraeli avowed his conver- sion in as many words ; but it was implied so conspicuously, that this speech by the new Chancellor of the Exchequer will be the foremost ob- stacle to any insane dreamer, if such there be, who might still think of attempting to reverse the established policy of the nation.

The House having resolved itself into Committee of Ways and Means, the CiraiscErston of the EXCHEQUER proceeded.

A chief branch of the revenue having ceased by lapse of time, and a con- siderable deficiency having consequently ensued, it became incumbent on him to invite the consideration of the House to the state of the public finances. The question was, What are the soundest means, what is at the same time the most popular—or rather the least unpopular—and the most practicable method, by which this deficiency might be supplied ? He passed in review the practice of the House during the last ten years in reference to our three modes of levying the taxes—by import-duties, by excise-duties, and by direct taxation. Under the first head, it was sufficient to observe this remarkable fact, that since 1842 the reduction of Customs-duties had been systematically conti- nuous. "In 1842 you struck off nearly 1,500,000/. of revenue calculated from the

Customs-duties ; 1843 you struck off 126,0001.; in 1844, 279,0001.; in 1845, upwards of 3,500,0001.; in 1846, upwards of 1,150,0001.; in 1847, upwards of 343,0001.; in 1848, upwards of 578,0001.; in 1849, upwards of 384,0001.; in 1850, upwards of 331,0001.; and in 1861, upwards of 801,0001. ; making an aggregate in those ten years of nearly 9,000,0001. sterling." After that catalogue of remitted duties, it would be somewhat preposterous to suppose he should induce the present House of Commons to impose fresh impart-duties. In reference to the second head, he said that no one advocated the mode of relieving our native industry by remission or repeal of our Excise-duties with greater amplitude of statistical learning than his late and ever-lamented friend Lord George Dentin& : that policy was also sanctioned by the authority of writers of the highest consideration, and he himself considered it entitled to great consideration. "Then, whilst you have reduced the calculated resources of revenue from Customs by an amouut of 9,000,0001. during that time of ten years, you have also in the same period repealed the Excise-duty on vinegar, auctions, glass, and bricks' by which an amount of revenue nearly as large as 1,500,0001. has been abstracted from the Excise, simultaneously with your successful assaults on the Customs' revenue." And only a week ago, one of the, most active members of that confederation which has exercised of late years 80 considerable an influence on the finances of the country [Mr. Milner Gibson] had proposed a further repeal of Excise-duties, which would have further reduced the public income by 1,400,0001. a year. His prospect in this direction also was therefore extremely hopeless. In reference to the third head, that of direct taxation, he dwelt on the odium which had con- demned, and actually caused to cease, the measure whose lapse now created his deficiency, and whose origin was due to the most eminent financial states- man of the age. The Property and Income Tax was introduced by Sir Robert Peel apologetically, and only on an emergency ; and it never would have been. tolerated but that it was framed on large bases of exemption. All the de- vices to mitigate its effect which could be contrived by the most adroit of modern financiers could not save it from such a degree of odiuta and hos- tility that they had not been able to maintain it. He had hoped that before the difficult duty devolved upon him of making the present statement, the report of the Committee upon the Income-tax would have been had on the table. He as Mr. Hume, the Chairman of that Committee, could certify, had thrown no sort of obstacle in the way of their inquiries. (Assentiny cheers front Mr. Hunze.) He was wholly without prejudice on the subject, and was desirous only to elicit the fullest information and the simple truth. On one point, it was no secret, the Committee were unanimous— that if taxes of this character, if measures of direct taxation like the Income-tax, are to form, not temporary, but permanent features of our system of finance, we cannot rest upon a system of exemptions. (Cheers.) In his own mind—and he believed it was a principle pretty well accepted— direct taxation should be nearly as universal in its application as indirect taxation. "Under indirect taxation, the man who lives in the palace, and the cottager, as consumers, are equally and proportionably assessed. It is not, perhaps, possible that by direct taxation you can effect so complete a result; perhaps it is not necessary; but that, if your revenue is to depend mainly, or in a great degree, upon direct taxation—if it is permanently to depend upon such taxation—you must make the application of direct taxa- tion very general, is to me a conclusion that it is impossible to withstand." Then, what was the prineipal feature of the last financial year ?—the sur- render of the Window-tax, and the imposition of a House-tax, a direct tax

which he has always regarded as more just and less oppressive than any other form of direct taxation, but a weapon which in this instance was applied for a very inglorious result ; for out of 3,500,000 houses, following the vicious principle which pervades all our direct taxation, you touched little more than 400,000—again practically announcing that direct taxation is intole- rable unless based on a large system of exemptions. His difficulties in this direction, therefore, seemed scarcely less than those he met in every other. However, he would impress on the House most seriously, that the time is

not far distant when they must arrive at definite conclusions on the subject, and come to certain results and principles to guide them in the future ma- nagement of their finances. Practically, with reference to his present course, the only rule he could deduce from the past was that the House of Commons disapproved of all three modes of taxation. The late Chancellor of the Exchequer had estimated the amount of the in- come for the year ending the 5th of April last at 52,140,0001.; but the ac- tual income was 52,468,3171., exceeding the estimate by 340,000/. The Cus- toms, estimated at 20,400,0001., had yielded 20,673,000!.; the Excise, esti- mated at 14,000,000/., had turned out 14,543,000!.; the Stamps, taken at 6,310,0001., had produced 6,346,000!.; for the Taxes, calculated to give 4,348,0001., owing to the repeal of the window-duties, only 3,691,0001. had

been received ; the Property and Income Tax, estimated at 5,380,0001., had realized 5,283,0001.; the Po t-office, instead of 830,0001., had produced 1,0,56,0001. The Woods, estimated at 160,000/., had yielded 190,0001.; the miscellaneous receipts and old stores, which had been estimated at 712,0001., lad produced 682,0001. The estimated expenditure had been 50,247,000!.; the actual expenditure was 50,291,000/.

In detailed explanation, Mr. Disraeli made this statement referring to the Customs. He thought it due to Sir Charles Wood that the House should have its attention called to the action of the reductions he made last year, while their experience on the subject was fresh. "The duty on coffee, it will be recollected, was reduced last year from 6d. per pound on foreign, and 44. on colonial, to a uniform duty of 3d. Now this is the effect of that re- duction of duties upon consumption. In the year ending April 1851, there was an increase in consumption on the article of foreign coffee of 2,076,3751b.; in the year ending April 1852, there is an increase from 2,076,0001b. in 1851 to 5,524,000lb., being an increase in 1852 upon 1851 of 3,448,000lb. Nor was this increase obtained at the expense of the growers of colo- nial coffee. In 1851 we imported 28,216,0001b. of colonial coffee ; in 1852, after the reduction of the duty, and during that great increase of the con- sumption of foreign coffee,.• instead of 28,216,000lb. we have imported 29,100,000lb. In 1860 we imported 32,511,000lb. of foreign and colonial coffee ; in 1851 the demand had fallen to 30,292,0001b. ; but in 1852, after the reduction of duties, the quantity rose to 34,680,0001b. The calculated loss of duty was 176,000?.; the amount of duty really lost has been about 112,000/. It will be recollected that the right honourable gentleman reduced the duty upon foreign timber, from 15s. to 7s. 6d. on hewn, and from 20s. to las. on sawn : the estimated loss was 286,000?.- the real loss is 126,000/. In 1851 we imported 275,000 loads of foreign timber ; in 1852, 440,000. Of colonial timber—I am speaking of hewn—in 1851 we imported 619,000 loads ; in 1852, 671,000 loads. In 1851, we imported 362,000 loads of sawn foreign timber ; in 1852 it amounted to 514,000 loads. In 1851, we had 454,000 loads of colonial sawn; and, notwithstanding the increase in the foreign, that amounted in 1852 to 526,000. Thus, of foreign, hewn and sawn, were im- ported altogether in 1851 only 628,000 loads ; and in 1852, that is in the year just terminated, the quantity rose to 954,000. I ought to mention, that there has equally been an increase upon colonial timber; the quantity (hewn and sawn) having risen from 1,074,000 loads in 1851 to nearly 1,200,000 in 1852. But while a loss, though not a very important one, was thus realized by the reduction of the duties upon coffee and timber, greatly as the consumption was increased, the effect of the reduction of duty upon the consumption of sugar is so remarkable that I feel it right to place it before the House. (Loud cheers, with some laughter.) In 1851, we imported 7,200,000 cwt. of British and foreign sugar ; in 1852, 7,613,000 cwt.—being an increase of 413,000 cwt. Since the alteration in 1846, the increase of our consumption has been 1,900,000 cwt. With regard to British sugar—this is unrefined only—(I have the other, but I am afraid of wearying the House)—in 1851 we imported only 5,093,000 cwt. ; in 1852 we imported 5,207,000, being an increase in that year of upwards of 114,000 cwt. During the last six years the consumption of sugar in this country has increased by 95,000 tons, being really 33 per cent upon the consumption of the year 1846. The revenue on sugar and molasses was 4,163,535/. in 1852, being (although we calculated zn a loss, I think, of 330,0001. or 340,0001.) a loss upon the year of only

In reference to two other principal items he said—" Then we come to the Property-tax : it was estimated at 5,380,0001.; the right honourable gentle- man's estimate was realized only to the amount of 5,283,0001., being a dimi- nution of nearly 100,000/. He estimated the Post-office at 830,000/. Such was the extraordinary effect, among other causes, no doubt of the Exhibition

—(A laugh)—the honourable Member may laugh at my detail, but I can as- sure him that when he becomes Chancellor of the Exchequer, which I dare say he will one day, he will know what an immense advantage it is to have

something which gives an extraordinary impulse to consumption and cora- munication—the Post-office, estimated at 830,000/., reached 1,066,000/. But, besides the effect of the Exhibition upon that branch of the revenue, there was also the effect of the census ; our postage-bill for the Census Office, if I can trust my recollection, was nearly 32,0001.: that item, of course, would not figure in a future estimate."

He came now to the Estimates for the ensuing year ; which had been pre- pared by his predecessor, but the responsibility of which he was quite pre- pared to adopt. The estimated Expenditure for the current year, ending in April 1853, was 51,163,9791.—namely, Debt and charges on Consolidated Fund.... 430,560,000 Army 6,491,893 Navy (including Packet Service) 6,493,000 Ordnance 2,437,000 Civil Estimates 4,182 086 Caffre War 660,000 Militia 360,000 Total £51,163,979

He now came to the sources of Supply, and he took their respective amounts as follows—

Customs £20,572,000 Excise 14,604,000 Stamps 6,339,000 Taxes 3,090,000 Property-tax (half a year) 2,641,600 Post-office 938,000 Woods 235,000 Miscellaneous 260,000 Old Stores 400,000 Total income £48,983,500

This would leave a deficiency of 2,180,4791.; but without the moiety of the Property-tax, the deficiency in 1854 would amount to 4,820,0001. If that tax had been continued for two years instead of one, its produce in the year ending the 6th April 1853, might be estimated at 5,187,0001., which would make the whole estimated income of the year 1852-3, 51,625,000?.; and as the estimated expenditure was 51,163,9791., there would be then a surplus of income over expenditure of 461,021/. He thought he must count on some loss this year from the further reduc- tion of the Sugar-duties : last year had been a miraculous year, this would be an average one ; so he put his loss at 145,000/. But on the Property and Income Tax he counted on an increase ; and as the subject had been one of controversy, he explained how the late decrease was only apparent, and would soon cease. "Upwards of 100,000/. less has certainly been received this year than the preceding years, but I will explain how this has occurred. In consequence of the bill for the continuance of the Pro- perty and Income Tax not having been passed until the 5th of June, great delay took place in making out the assessments for the tax. The offiee on which the duty of making the assessments devolved was, un- fodunlitalYs occupied at the same time with the arrangements con-

nected with the census, and from the want of hands arrears of busi- ness accrued, and considerable delay in making the cesessinents was

the unavoidable consequence. The House, however, will ace, from the

explanation I am about to give, that there has been no diminution in the total assessment of the Property-tax in the present year, compared

with the two preceding years. The total duty assessed in 1850 was 5,727,977j..

in 1851 it was 5,739,700!.; in 1852 it is 5,758,7091. The amount actually paid into the Exchequer in these years presents, however, a somewhat differ- ent result : for example in 1850 it was 5,466,2491.; in 1851, 5,403,3791.; in

1852, 5,283,8001." The proceeds were therefore less, but the assessment had increased, and the arrears had already been partly obtained. The diminu-

tion of proceeds occurred under Schedule D. "In the year 1849 a great diminution took place in the proceeds from trades and professions, which is

levied under this schedule. The amount fell from 1,754,000/. to 1,584,000!.; in 1850 it dropped to 1,584,000!.; but in 1851 it rallied, and ascended to 1,593,000/. I am sure I have no prejudice on the subject. and I am bound to say, that as far as I can form an opinion from the infor- mation laid before me, there can be no doubt that the diminution I have pointed out must be ascribed solely to the unhappy commercial year 1847. (Cheers.) I may be excused for reminding the Committee—for in order to put the case clearly before honourable Members it is necessary to re- fer to mans, things with which they are familiar—that the assessment under schedule D is not made on the actual profits of the year, but on the aver- age profits of the three preceding years ; therefore, the bad year 1847 falling into the average, would diminish its amount just in the same way as a bad year affects the averages made under the Tithe Commutation Act. Thus it happens, that while the assessment under schedule D was only 1,584,000/. in 1849, it already amounts this year to 1,600,000!.; and I am informed by those who are most competent to form an opinion on these subjects, that we may look with confidence to the assessment under this schedule rallying completely. I say completely rallying, because, al- though I appear before you with a deficiency, the state of the country, es.. chilly as far as this schedule is concerned, is one of great prosperity."

however, he had the duty to declare—and he trusted that he should be the more readily believed after the preceding admission—it was his sad duty to state, that there are classes in this country who are not prospering, and the effect of whose adversity is beginning to tell on the Income and Property Tax. "I deeply regret that it is my duty to declare, that I have been warned by the highest authority on thisimportant subject, that in esti- mating the returns from the Property and Income Tax we must commence making some allowance for reduced rentals ; and I am informed that it is more than probable that the privilege which the last session accorded to the British farmer with respect to assessments under schedule I) will be acted on to a large extent. The Committee must perceive how difficult it is to find data on which to found an estimate of the deduction which it may be neces- sary to make under the two heads to which I have referred ; but I have felt it my duty to state the effcet of the communications officially brought under my notice by those best acquainted with the subject. I assure the Com- mittee that I have no prejudice on this subject. Nothing could induce me to colour any ease to which it is my duty to refer ; and I almost wish it had fallen to the lot of any one else to make the statement I have just done, lest. it might perhaps be imagined that I have coloured it, however slightly. Act- ing on information which it is impossible for me to disregard, I am recom- mended to deduct not less than 150,0001. from the estimated produce of sche- dule D, in consequence of the two circumstances to which I have directed the attention of the Committee."

He had thus laid before the House an unvarnished and he trusted a clear account of the financial position of the country : if his statement were not clear, it was from his want of ability, and not his desire to conceal anything whatever. Recognizing with all sincerity the abilities of his predecessor, he again pictured the difficulties of a Chancellor of the Exchequer in presence of a House of Commons objecting to all the available modes of taxation. Thence, referring to his short time in office, he went on to say, that the physical impossibility of his attempting the task had alone restrained him from entering already on the laborious effort of examining the whole of our financial system- that he did not now shrink from that labour; and that if it should please the Parliament of the country to give him the opportunity, he would not be con- tent with making "provisional" propositions upon this important subject again to the House of Commons. "Sir, under these circumstances, I am sure the House will anticipate that I shall feel it my duty on the first opportunity to recommend for their adoption the continuance for a limited period of those duties on property and income which have been the subject of our cri- ticism here and in the Committee that is now sitting upon them. Sir, it would have been more agreeable to me to have relieved the industry of the country ; to have forwarded that great cause of the fair adjustment of taxation, which I believe the great majority of this House on both sides are inclined, upon right principles, to advance. That is not in my power. My duty has only been to place fairly before the House of Commons the con- dition of the public finances, and to offer that advice which her Majesty's Go-

Sir, in placing this resolution in your hand, I trust that the Housdenw1111 Go- vernment under the circumstances feel it their duty to tender. An

upon this and subsequent opportunities give me every facility to carry the law which will continue for the limited period of one year the Income and Property Tax."

[Mr. Disraeli resumed his seat amidst general cheering; which the re- porter of the Tiines says was particularly hearty from his more immediate supporters, but the reporter of the Morning Post says, were more particu- larly earnest from the Opposition side of the House.] Sir Ca.sates WOOD said, he had a most pleasing task in concurring not only in the course but in the tone and tendency of most of the observa- tions which explained that course. Mr. HIIME grumbled at the budget being "a stand-still budget" ; but he accepted, as most satisfactory, the proofs of the benefits of Free-trade—he was not surprised at the "glint manner" in which gentlemen opposite had received their Chancellor's speech. Mr. THOMAS Beanca was determined to support the Chan- cellor in doing nothing ; but he thought he had taken rather too bright a view of the late commercial prosperity : 1851 was really a most. disastrous year. Mr. GLansrozia said, the speech of Mr. Disraeli would constitute an epoch in the commercial policy of the last ten years. Sir Toner TI'RELL denied that his side were glum ; for the budget was altogether a provisional one. Colonel Surraoas was disappointed : he was not sure there was a positive breach of faith, but he must pro- test. Mr. Bazaar thought Sir John Pakington had held down his head in the midst of the Sugar statement. Sir JOHN PA- %MOTOR said it was quite otherwise : Mr. Bright must remem- ber that there are questions of a large and general nature to consider. MT. LABOUCHERE, Lord ROBERT GROSVENOR, MT. C. VJTJ.1117.1tA, and Mr. Muarz, joined the chorus of congratulation.

The formal resolutions put by the Chairman, of which Mr. Disraeli stated the nature, were agreed to. The House then resumed; and shortly afterwards adjourned.