§ The House having resolved into a Committee of Ways and Means,
The Chancellor of the Exchequerrose to open the Budget for the present year. He began by observing that having that morning concluded a contract, subject to the approbation of parliament, for the Loan for the service of the present year, on terms which he trusted, under all the circumstances of the case, the Committee would consider to be highly advantageous to the public, he should proceed to submit to them the details of that contract. But, before he did this, he conceived that it would be necessary for him to state, with as much clearness as he possibly could, the various sums which the House had already voted for the supply of the present year, and the Ways and Means to which in his judgment, they ought to resort for the purpose of meeting those sums. The supplies which had been voted were as follow:—
211
SUPPLIES, 1811. Navy (exclusive of Ordnance Sea Service) £ 20,276 144 Army (including Barracks and Commissariat) £14, 209,422 Ditto Ireland 3,233,421 Extraordinaries 3,200,000 Unprovided ditto last year 627,098 21,269,941 Ordnance 5,612,378 Miscellaneous, including 400,000 l. Irish Permanent Grants. 2,050,000 Vote of Credit England 3,000,000 Ireland 200,000 3,200,000 With respect to the Sicilian subsidy, he had to intreat the indulgence of the Committee for a great inattention on his part, namely, in having omitted to lay before parliament the last treaty with Sicily, on which that vote was founded. He had erroneously apprehended that the treaty was already on the table of the House, and it was but three or four days ago that he discovered his mistake. To-morrow, however, or the next day at farthest, he would take care to present it to the House, and he hoped they would accept that apology for his omission hitherto to do so.
Sicily 400,000 Portugal 2,100,000 Joint Charge 54,308,453. SEPARATE CHARGES. Loyalty loan 113,416 Interest on Exchequer Bills 1,600,000 1,713,416 Total Supplies 56,021,869 Irish Proportion 6,569,000 49,452,869 Irish Proportion of 54,308,453l 6,389,000 Irish Civil List and other Charges 180,000 6,569,000 He would proceed to state the various articles of Ways and Means, by which he proposed to meet the 49,452,869l. of supply to be provided by England:
It thus appeared that the total of Ways and Means exceeded the total of the Supply in the sum of 102,510l. The Committee would, however, expect that he would enter into an explanation of the grounds on which he calculated the surplus of the Consolidated Fund of the present year, at the sum of 5,000,000l. To do this, it would be necessary for him to detail the produce at which he estimated the various articles that went to the constitution of that fund. He took the customs at 5,134,000l; being the average of the produce of the two last years. He had 212 taken a similar average last year, being then 4,485,333l, but in fact the Customs had produced 4,987,391l.; being about 500,000l. beyond the calculation. So with the Excise, he proposed to take it on the average of the produce of the two last years, or 17,167,000l. Of this article he had also taken a similar average last year, being then 16,880,625l.; but the Excise had produced 17,399,312l. This mode of calculation afforded him a fair scheme of estimate; for although the Customs for 1811 fell short by about 200,000l. of the customs of 1810 yet the Excise for 1810 was surpassed by that of 1811 to a similar amount, the excess of the one balancing the deficiency of the other. The produce of the Assessed taxes had last year been estimated at 5,860,000l.; they had actually produced 5,781,831l. and he would take them for the present year at 5,800,000l. The Stamp duties he had last year estimated at 5,193,000l.; they had actually produced 5,302,743l. The great increase in these duties during the last year completely justified him in the statement which he had at that period made, that the whole charge of the year might be defrayed out of their excess. To this statement, however, he had added the observation that it was not probable the same excess would exist in the succeeding year. He should therefore take the amount of the stamps for the present year only at 5,300,000l. The Post-office revenue was estimated by him last year at 1,194,000l. the actual produce was 1,276,000l. and he proposed to take it for the present year at 1,280,000l. He could not pass over this particular article without directing the attention of the Committee to the great increase that had taken place during the last two or three years in the receipts at the Post-office. In 1809, the Post-office had produced 1,083,000l.; in 1810, 1,194,000l.; and in 1811, 1,276,000l. being an increase on the average of about 90,000l. a year, and that not from any additional duties on postage, but simply from the augmented commercial communication of the country. It was clear, therefore, that by taking the amount for the present year only, at 1,280,000l. an opportunity was afforded to parliament, if they should think it wise and expedient to avail themselves of it, to relieve Scotland, and other distant parts of the empire, without the danger of any diminution of the estimated revenue. The Hawkers and Pedlars, and sundry small branches of the 213 revenue he would take at 106,000l.; Personal Estates and Pensions at 156,000l.; the Land Tax at 1,038,000l.; the Surplus Exchequer Fees at 54,000l.; the Tontine at 24,000l.; the Crown Lands, &c. at 66,000l. and the Imprest Monies at 200,000l. making the total of the estimated receipt of the existing permanent taxes for the present year, 36,322,000l.—To this must be added 2,240,000l.; being the amount of the war taxes appropriated to the Consolidated Fund; and the grand total would be 38,562,000l.; which being deducted from the estimated produce of the Consolidated Fund, would leave a balance of 5,649,000l. He would, however, take the surplus only at 5,000,000l. and would presently account for the disposal of the balance. With the exception of last year, when the surplus of the Consolidated Fund was 5,753 715l.; of the preceding year, when (from peculiar circumstances) it amounted to 7,019,774l.; and of the year 1803, when it was 5,936,651l. that surplus had at no period exceeded, or even reached 5,000,000l. This was a highly satisfactory circumstance, in contemplating the state of the finances of the country.
WAYS AND MEANS, 1811. Annul Duties £3,000,000 Surplus Consolidated Fund, 1810 1,353,715 Surplus Consolidated Fund, 1811 5,000,000 War Taxes 20,000,000 Lottery 300,000 Exchequer Bills 4,000,000 Vote of Credit 8,000,000 Loan in 6 per Cent Stock 4,981,300 in 3 and 4 per Cents 7,500,000 12,481,300 Naval Stores 420,364 49,555,379 The next item which he thought might require some explanation, was the amount of the estimate for the War Taxes for the year ending the 5th April, 1812. This estimate was 20,484,000l. The grounds on which he calculated he would state as briefly as possible: The average produce of the Custom and Excise war duties for the last three years was 9,296,805l. The produce of the last year was 9,727,213l.; but he thought it better to take the average of the three last years. Four, hundred thousand pounds remained due from the East India Company. These sums, added together, made 9,696,805l. The next produce of the assessment of the Property Tax for the year ending April 5, 1811. was estimated at 1 1,800,000l. This was 400,000l. more than the sum calculated upon as the probable produce, though less than the produce of the preceding year, on account of the great amount of arrears received in that year. The amount of the outstanding arrears of the Property Tax from 1804 to 1810, was 2,246,644l. Of this sum, it was expected that a part would be returned by schedules, and part might not be recoverable; he would suppose one-fourth, or 560,000l. Deducting this, the amount, therefore, of outstanding arrears that might be expected to be received, was 1,686,644l. of the estimated produce of the duty for 214 the year ending the 5th of April, 1811, (namely 11,800,000l), 4,864,267l. had been received: 6,935,732l. therefore remained to be received. This, added to the l,686,644l expected to be received of the arrears of former years, made 8,622,000l.; which, with the estimated nett produce of the assessment of the present year, which he would take at the same as the last, namely, 11,800,000l., gave 20,422,000l. From this, however, must be deducted the sum of 7,524,000l. remaining to complete the grant of is 10, leaving a balance of 12,898 000l. to be received on account of the property tax. Let this be added to the estimate of the war taxes, 9,690,805l. and the result would be 22,59 4,805l. There were war taxes, however, to the amount of 2,240,000l. already pledged for the interest of the debt, and which must therefore be deducted, leaving the balance to be received 20,354,805l. He would, however, take it at 20,000,000l.
He now came to the consideration of the Loan, and of the Ways and Means in aid of the revenue to meet the expences of the year. He had already explained to the Committee the state of the Loan made in the 5 per cent. stock, and the Exchequer Bills funded in the present session. These amounted altogether to 12,000,000l. by which a capital was created in the 5 per centum stock of 12,444,711l. The interest on this capital was 622,235l. The Sinking Fund 124,447l. The charges of management 3,733l. making a total of 750,416l. to be annually provided for, for the loan in the 5 per cents. By the loan of 7,500,000l. for which he had that morning contracted, a total charge would be incurred of 465,403l. 10s. The capital created was 7,500,000l. in the 3 per cents, reduced; 1,500,000l. in the consols, and 1 500,000l. in the 4 per cents. For each hundred pounds subscribed, the subscribers were to have 100l. in the 3 per cents, reduced, 20l. in the consols, 20l. in the 4 per cents, and 6s. 11d. in the long annuities. By a calculation made on the price of stocks on the Saturday before, it appeared that the 100l. in the 3 per cents, reduced, which was on that day 64⅛th, was equal to 64l. 2s. 6d. That the twenty pound in the consols, which were at 65⅛th, was equal-to 13l. 0s. 6d. and the 20l. 4 per cent. which was at 80⅛th, was equal to 16l; These sums amounted to 93l. 3s 6d; and if to this were added the value of the us. 6s.11d. long annuities, namely, 5l. 17s. 10d. 215 the whole would be found to amount to 99l. is.4d. There was a discount, however, of 3 per cent. on the payment of nine months, amounting to 2l. 6s. 6d. and there would, therefore, be a bonus of it Is. nod on every hundred pounds subscribed. He apprehended that a more favourable I an to the public than the present could hardly have been expected; and he had the satisfaction to state to the House that he understood that it was already at a premium of 1l. 10s. per cent. It had been conracted also with the expectaion that the funds were in such a state as to afford every reasonable hope of an improvement, rather than of a diminution of the advantages to the subscribers. The amount of the interest on this last loan would be 355,937l. 10s.; of the Sinking Fond 106,112l.; of the charges of management, 3,344l. making a total of 465,403l. 10s. which added to the total of the other loan, made the grand total of charge on the two loans, 1,215,819l. The rate per centum, including all charges paid by the public, was, on the 7,500,000l. loan, 6l. 4s. l¼d; on the 12,000,000l. funded, 6l 5s. 0¾d. The rate of interest to the subscribers on the 3 per cent. loan, was 4l. 14s. 11 d. per cent.; on the 5 per cent. loan, 5l. 3s. 8¼d. per cent. The difference on the charges being not quite one shilling per cent. and which difference was attributable to the Sinking Fund. The rate per cent. on the whole debt created, paid by the public, was 6l 48, 3¼d. It was a great satisfaction to him to state that so large a portion of the loan of the year had been funded in the 5 per cents. For on a comparison of the 3 per cents, at present with the 3 per cents, of last year; and of the 5 per cents, at present with the 5 per cents, of last year, the Committee would be surprised to observe, how little disadvantageous the bargain in the 5 per cents, had been as compared with that in the three; the 5 per cents having been much more stationary and not proprotionably depressed. When last year 8,500,000l. only was funded in the 5 per cents, instead of 12,000,000l, as in the recent instance, the expence created was 6l. 4s. 7¼d. per cent. In the recent instance the expence created was 6l. 5s. o¾d. per cent. making a difference of only 5½d. per cent. between the two charges. The difference in the 3 per cents, in the two years was much greater. Last year the expence was 5l. 13s. 3d. per cent. this year the expence was 6l. 4s. 1¼d.
216 Last year the interest was 4l. 4s. 2d. per cent.; this year it was 4l. 14s. 11d. making a difference of above 10s. per cent. This was to him a satisfactory reflection, as he had so pertinaciously persisted in procuring the whole of the 12,000,000l. to be funded in the 5 per cents.
Having thus stated that the whole of the charges created by both loans, wag 1,215,819l. he should next submit to the Committee the mode by which he proposed to meet these charges. Before he did this, he must add, that it was his intention to recommend a repeal of the duty on Hats, which, ever since he came into office, had continued to decrease in amount. When this tax was first levied it produced 60 or 70,000l. He did not suppose that fewer hats were worn than formerly; but the fact was that the produce of the duty last year was only 29,332lt It had been gradually diminishing. In 1809 it was 38,000l.; in 1809, 33,000l.; in 1810,31,000l.: and in 1811, as he had already stated, only 29,332l. This was a rapidly decreasing ratio. He was aware therefore, that in giving up the duty he did not give up much, for it was gradually wearing itself out. It was the cause of great vexation and trouble to the persons carrying on the trade of hat dealers, and particularly to those who dealt on fair terms, over whom the dealer who was disposed to second the fraudulent wishes of his customers, by omitting the stamp, had a very unmerited advantage. The Committee was aware that a similar duty on gloves had formerly been abandoned. Before he came to the resolution of proposing the repeal of the duty on hats, he had seriously considered whether it might not be collected in some other manner; but after a good deal of deliberation he was persuaded that no mode could be adopted which would not be so inconvenient to the trade and to the public, as to render it highly unadvisable. He begged leave, that if in consequence of the repeal of this tax, it should happen that any persons might be led to imagine, that al though the duties on gloves and hats were abandoned, it might be expedient to impose others on coats, waistcoats, shoes, or leather breeches, and in consequence to suggest such new duties to government; it might be a great relief both to those persons who were so kindly ready to: furnish the Chancellor of the Exchequer with the Ways and Means of the year, and to that individual himself, to state that be did not 217 consider it expedient to tax articles of dress. This notice would not appear superfluous to the Committee, if they were aware how many letters he was constantly receiving, in which not only every habiliment which could be named, but even the bolts, handles, latches, and other appendages of doors and windows, were recommended by well intentioned persons as tit objects of taxation.
He came now to that part of his duty which was always considered as the most irksome and unpleasant; but on the present occasion he had the highest satisfaction in stating to the Committee, that they bad already in the course of the session voted taxes to an amount greater than that which was requisite to meet the burdens of the year; and therefore that he should not propose to lay on a single new tax. The fact, indeed, was, that the sum voted was much larger than was wanted. Of these new duties which had been imposed, the principal was that on spirits; the nature of which had already been sufficiently explained, which had received the sanction of the Committee, and the Bill to impose which was in a state of great forwardness. The probable amount on British spirits from the most accurate estimate that he could obtain would be 700,000l. The produce of the duty on British spirits in the year ended 5th April, 1811, was 2,505,448l. to which, if the Committee added the amount of duty due from the Customs in Scotland, and unpaid for the same year, viz. 360,000l. it would make 2,865,448l. Upon this the additional duty of 19l. 4s. 7d. per cent. would amount to 551,000l. The additional duty of 12½ per cent. upon the present Excise duties on foreign spirits (exclusive of rum), which produced 1,580,000l. in the last year, he would state at 200,000l. although he did not expect that it would produce so much. There were other taxes, which, although imposed last year, did not begin to operate until the present. Double the amount of the present duty on timber, on the average of the two last years, would be 622,000l. An additional 1d. per lb. had been voted by the Committee on all cotton wool brought from the American States, and other parts (inclusive of British and Portuguese colonies), being on an average of the last six years, 35,304000lbs. and amounting to 147,100l. On pearl and pot ashes, imported, except from the British colonies,? duty had been imposed of 4s, 8d, per cwt. 218 On the average of the last six years, the quantity imported annually was 111,000 cwt. making the sum of 25,900l. The duty on foreign linen, in proportion to the quarter ending 5th January, 1811, (when the duty first had full effect) would amount to 71,600l These various sums, added together, would give 1,617,600l. The Committee would, however, be aware that these duties were of course subject to such diminution as might be occasioned by the discouragement of the articles on which they were imposed. This diminution would probably not be very considerable for some period; but he had no doubt, and, indeed, sincerely trusted, that they would ultimately be very much diminished, as in proportion to that diminution would the encouragement to English articles increase. These duties he proposed to go in accumulation of the war taxes, and he conceived, that in giving 866,600l. to the war taxes he should not be unjostified in taking from them 465,403l. which sum, added to the produce of the two duties on spirits, viz. 751,000l. would give him the 1,215,819l. which he required. Then, however, there would be a balance of 300,000l. of the war taxes unappropriated and applicable to the ways and means of the year, and also 600,000l. of surplus of the consolidated fund. The Committee must recollect, that these new taxes had been voted at an advanced period of the year, one quarter having nearly elapsed, and a consequent deficiency of one fourth ensuing; it would therefore be expedient to meet this deficiency out of the surplus of the Consolidated fund, and 250,000l. must be deducted from the 600,000l. on that account.
He had now to submit to the Committee a very important consideration, to which he should call their most serious attention. As soon as the the present subject was finished his right hon. friend (Mr. Foster) would proceed to lay before them the situation of the finances of Ireland. His right hon. friend would have to state that he had borrowed for the service of Ireland 2,500,000l. in that country, and that he had borrowed 4,500,000l. in England for the same service. To meet the expences of the loan raised in Ireland, his right hon. friend was ready to propose the necessary taxes; but he (the Chancellor of the Exchequer) had no hesitation in saying that he trusted the Committee would agree with him in thinking that, in the present distressed state of the Irish 219 Finances, it would not be wise or expedient to call on his right hon. friend to lay taxes on that country for the purpose of meeting the expences of the loan of 4,500,000l. raised in England. It was therefore his intention to propose to the English members and the Irish members of the House of Commons, that the expences of that part of the loan raised for the service of Ireland should be charged on the Consolidated Fund of England (as a loan to Ireland) in order to procure the public creditor a permanent security, and for at least a twelvemonth, while an inquiry was making into the finances of that country, to bear the interest of the money so raised. He trusted that the Committee would be of opinion, let whatever might be the issue of that inquiry, that it would be advisable to come forward in the way which he recommended, and out of the comparative affluence of the English finances, to afford aid to Ireland in the hour of her particular embarrassment. With a view of furnishing the Committee with the means by which this great good could be effected to Ireland, without any inconvenience to this country, he had forborne to take more than 5,000,000l. from the surplus of the Consolidated Fund, leaving a sufficient sum to meet the proposed charge. Though this was a novel proposition, he was persuaded that it would be received without grudging, or any indisposition on the part of the Committee, to afford to Ireland that assistance which he had shewn could be afforded to her, without any material inconvenience to Great Britain. He repeated, that the inconvenience would be immaterial; for what was the nature of the additional taxes, by which the surplus of the Consolidated Fund-would be so much increased as to enable the Committee to do that which he recommended? The duty on British spirits had been founded on a principle which had over and over again been recognized by the Committee as just. After the experience of last year, namely, having found that spirits had continued to be sold at the increased price to which they were raised when distilled from sugar, there were no reasons to suppose there would be any diminution in the con sumption of the article from the very small advance on the price which the presen duty could be expected to occasion. With respect to the other duties, they were all recommended to the Committee, on views very different from those con- 220 nected with finance. They were proposed expressly for the purposes of endeavouring to procure for British shipping those imports, which the war in which the country was engaged, necessarily limited (and which were now enjoyed by foreigners); and of encouraging the exertions of British manufactures, and the consumption of British colonial produce. Policy would have dictated these measures without any reference whatever to their, beneficial tendency with respect to finance. He was therefore justified in saying that Ireland might be assisted without prejudice to Great Britain, and he trusted that the assistance would be received in Ireland as it would be given in this country; namely, as affording a mark of our disposition to lend every possible aid to Ireland under the embarrassed circumstances in which she was placed, and as tending to enforce the necessity and the policy of either country stepping to the support of the other, when the one was able to give, and the other so situated as to require assistance.
He believed that he had now stated, as fully and distinctly as he had it in his power to do, ail the considerations immediately connected with the subject before the Committee. He trusted that he had not omitted any necessary explanation; but before he sat down, he wished to mention a few circumstances, in order to shew the general increase of the revenue, and the affluence of the country. For this? purpose he begged the attention of the Committee to the increasing produce of the Customs and Excise, during the last five years. In the year ending the 5th: April 1807, the produce of the customs was 9,012,000l. in 1808, 9,123,612l. in 1809, 8,508,258l. in 1810, 10 536,775l. and in 1811, 10,523,169l. being an in crease of near a million since the year 1807. The produce of the excise in the year ending 5th April 1807, was; 23,740,518l.; in 1811, 24,046,022l. In the intermediate years the advance was gradual, with the exception of 1809, in; which year there was a considerable falling off, the produce being only 22,837,856l In the two succeeding years, however, this depression was completely recovered A inquiry into other articles of general consumption, would contribute to show; the increasing opulence of the nation. The produce of the duties on cotton wool imported into the country in 1807, was: 543,526l.; the produce in the year 1811, 221 was 1,034,142l. The duties on deals and fir timber imported in 1807, were 566,247l. In 1811 they amounted to 642,104l. The excise duties on tea in 1807, were 2,844,395l. In 1811 they amounted to 3,236,027l. This last was a more extraordinary increase, as the article was under most heavy taxation, and as the increase took place after the operation, from which so much mischief was anticipated, of the reduced duty on coffee. All this could be accounted for only by the general augmentation of wealth in the country. Of this increasing wealth a most striking instance was afforded in the consumption of wine. In 1785 the quantity of wine consumed was 14,550 tons; in 1780, 15,087 tons; in 1787, 14,780 tons; making the average of the three years an annual consumption of 14,800 tons. At that period the average price of port wine was 70l. 11s. 6l. per pipe. In 1807, the quantity of wine consumed was 24,090 tons: in 1808,24,757 tons; in 1809, 22,331 tons; the average of these three years being an annual consumption of 23,726 tons. At the former period the duty was 30l. perton; at the latter 95l The average price at the former period being 70l. 11s. at the latter period 192l. 14s. per ton: so that under both the increase of duty and the increase of price the consumption had increased. He could hardly conceive it possible to adduce a more striking instance of general prosperity. The average consumption of tallow, for the three years ending in 1787, was 210,174 cwt. The average for the three years, ending in 1809, was 347,170 cwt. The price at the former period was 2l. 8s. 8d. per cwt.; at the latter period, 4l. 11s. being one-third more. Nor did this increase in the consumption of tallow arise from any de crease in the consumption of oil. The average consumption of oil for the three years, ending in 1787, was 9,730 tons: the average consumption for the three years, ending in 1809, was 19,126 tons. The price at the former period was 19l. 18s. 9d. per ton; at the latter period 32l. 9s. The average quantity of tobacco annually imported for the three years ending in 1787, was 6,553,000lbs. The annual average for the three years ending in 1809, was 12461,000lbs. The price at the former period was 8¼d. a pound; at the latter If. 7¾d. He was aware that these details Were very tedious, but he had the consolation of knowing that they were at the same time very satisfactory, as they af- 222 forded the most convincing evidence of the gradual and great increase of the riches of the country. Tie Chancellor of the Exchequer concluded a most perspicuous statement, by apologizing to the Committee for having occupied so much of their time, and by expressing his readiness to afford any further explanation that might be desired. He then moved his first Resolution.
§ Sir T. Turtonobjected to the Property Tax as unequal and unjust; but congratulated the right hon gentleman on the terms on which he had procured the loan.
Mr. Baringobjected to the tax on cotton, as only likely to produce serious injury to the country. This was not perhaps the proper stage for entering into the discussion minutely, but he could not help observing that a duty on the raw material, which would make a difference of 4d. in the pound, upon an article not worth above 12d. per pound, at present, should not be adopted with precipitation. He was sure the right hon. the Chancellor of the Exchequer would find, upon inquiry, that such a tax would have an injurious operation upon the manufactures of the country. As to the timber tax, he thought it would have a tendency to exclude the timber from the Baltic, and, perhaps, in that view was beneficial, as a means of encouraging our trade with our own colonies, and with America, but as an article of revenue he did not know that any expectations should be founded on it.
The Chancellor of the Exchequcrsaid, that the tax had been already proposed, and was in an advanced stage at the present moment. He denied that there would be any apprehension from it of injury to our manufactures. We had much cotton in our own colonies, and there had been of late years a greater fluctuation in the price of that article than the addition of this duty would effect, notwithstanding which, it had continued to prosper. There was, besides, an immediate quantity on our hands, and much would be obtained from different parts. As to the duty upon timber, he was prepared to expect the effect described by the hon. gentleman, and had provided against any failure by a larger estimate.
Mr. Rosesaid, that if any inconvenience was to occur which might prevent the importation of cotton wool from America, it might be brought from the East Indies to any amount.
Mr. Baringstated, that the cotton which; came from India sold at 8d. a pound, 223 while that from America sold at 12d. The coarser could not supply the place of the finer. The produce of our own colonies was extremely limited in this respect; and it should be well considered whether it was right to give a preference to the cotton of the Brazils above the cotton of America.
The Resolutions were then agreed to.