HC Deb 06 May 1836 vol 33 cc645-60
Declared Value.
1834 £.36,531,000
1335 41,350,000
£.4,819,000 Increase 13 per cent.
LINEN MANUFACTURES.
1834 £.2,579,000
1835 3,226,000
647,000 Increase 26 per cent.
COTTON.
1834 £.15,302,000
1835 16,394,000
£.1,092,000 Increase 7 per cent.
HARDWARE AND CUTLERY.
1834 £.1,485,000
1835 1,835,000
£.350,000 Increase 23 per cent.
SILK.
1834 £.637,000
1835 972,000
£.335,000 Increase 6 per cent.
WOOLLEN.
1834 £.5,975,000
1835 7,046,000
£.1,071,000 Increase 18 per cent.

Out of the seventeen articles of export, which might be enumerated, there has been an increase on fourteen. The only articles on which there has been any decrease, and that but to a trifling extent, are tin, salt, and refined sugar; But let not the state of our commerce be judged of by our exports alone; the increased

but also an increase in declared value, amounting to no less a sum than 4,265,840l. Hon. Gentlemen will, perhaps, think with me, that the most sanguine expectations could not have anticipated a state of commercial prosperity greater than this. I shall proceed to refer to the great branches of industry throughout the country, and I am enabled to show how this great export-trade has been distributed amongst them:—

demand for our produce in foreign countries must ever re-act upon the home-market, and produce there an increased consumption of articles of foreign import. Let us, therefore, examine the state of the import trade. Let us first consider the importation of cotton-wool.

COTTON WOOL FOR HOME-CONSUMPTION.
1833 293,682,000 lbs.
1834 302,935,000
1835 333,080,000

The capital invested in buildings and machinery amounts to 4,000,000l., calculated to give employment to 90,000 per-

IRON AND STEEL.
Declared value exported.
1833 £.1,405,035
1834 1,406,872
1835 1,680,750
Increase 19½ per cent.

As an illustration of the demand for iron abroad, and the enormous power of production in this country, I may be permitted to mention that an order was received on the 6th of May last, at one manufactory, for 1,800 tons of iron railway for America. That order was executed before the month of September, without derangement to the other business of the establishment, and by that time there were manufactured and exported iron rails sufficient to lay down a railroad 57½ English miles. It is true, that in some articles of our Customs there has been a slight falling-off. I pass over this part of the subject lightly, for the falling-off may, in all cases, be easily accounted for, by

INCREASE OF HOME-MADE SPIRITS, ACCOUNTING FOR. DECREASE OF BRANDY.
1834 £.21,874,000
1835 23,397,000
1836 24,710,000
Brandy, April 5, 1834 1,634,000
1835 1,589,000
1836 1,487,000
Estimate for 1837 1,537,000

It is impossible to look at these Returns without noticing the fact, that as we have advanced in sound commercial and financial policy, in the same proportion have

sons. The following Table gives the result of our iron trade:—

any person who will take the trouble of investigating the subject. For instance, there is a falling-off in the article of foreign brandy. One cause is, undoubtedly, that the duty on foreign brandy is at present extravagantly high. That duty, if it can be defended at all, is to be justified only as a protection to the distiller of home spirits, and to the grower of barley.' But this is a reason, and not a justification. But we may account for the reduced import of brandy on other grounds. While the consumption of foreign brandy has decreased, the consumption of homemade spirits has largely increased, as the following table will show:—

our commercial and financial interests been marked by prosperity. In a very few words I may venture to refer to certain articles as illustrative of that com- mercial policy which has so often been questioned, and made a matter of grave dispute in this House, Let me take, as an example, the article of gloves. Let us see whether the adoption of a more liberal policy in the case of this article of manufacture has been attended by loss to the home manufacturer, or whether it has not had precisely a contrary effect. A few examples derived from the glove-trade and from other trades of a similar description, will show how the new "principles of free-trade,'' as they are called, have worked. I will call them the principles of Mr. Huskisson—for Mr. Huskisson was the Minister who advocated, with the greatest force and power, the great political truths on which true commercial policy should be founded. He was the Statesman with whom originated that commercial system, on which, for some years past, the Government and the Parliament of England have been steadily and fortunately acting. To return to the glove-trade. I beg leave to remind the House how often it was predicted that the result of a free trade in foreign gloves would be the destruction of the British manufacturer. Now, on comparing the importation of foreign gloves for each of the last two years, it appears that the number of pairs of foreign gloves imported has been reduced from 1,603,000 to 1,290,000; shewing a decrease of 313,000. Coincident, however, with this decrease, the importation of kid skins, out of which gloves are manufactured, has augmented, so as to give a great stimulus to that very trade, the ruin of which was anticipated. In 1834, there were imported 181,000 undressed, and 617,000 dressed kid-skins, making a total of 798,000 skins altogether. In 1835, the number of undressed skins was 235,000, and of dressed 791,000; making a total of 1,044,000, and showing an increase in the year, of 246,000 skins. In a word, by the system we have pursued, the importation of the manufactured article has decreased, whilst, from the ascertained fact of an increased and increasing importation of the raw material, we are able to deduce the satisfactory conclusion, that the industry of the country in this very article is greatly augmenting. The only other illustration of this principle with which I shall trouble the Committee is one derived from the silk trade—that trade which we are told was to be entirely crushed by the policy we have adopted. Now let us consider what has been the condition of the silk trade of late years; and, contrasting that condition with the state in which we now find it, let us see how the forebodings of those who are opposed to our views have been realized. Upon comparing the Returns of the importation of raw silk in the years 1834 and 1835, what do we find to be the result? In 1834, the quantity of raw silk imported was 3,346,0001bs.; of waste, l,009,0001bs; and of thrown, 185,0001bs.; making a total of 4,540,0001bs. In 1835, the quantity of raw silk was 4,151,0001bs.; of waste, 1,382,0001bs.; and of thrown, 254,0001bs.; making a totalof5,787,000Ibs. and showing, in the year, an increase of l,267,0001bs.: and at the same time it should be observed, that there has been a decrease in the amount of the ad valorem duties received on the manufactured silks imported. This state of trade proves, that the alteration of the law has, instead of ending, as was anticipated, in the ruin of the English silk manufacturer, been of essential service to him. In 1834, the amount of duties on manufactured silks imported was 188,000l. whereas in 1835, it was only 165,000l. Thus we find, as the result of the altered system—of that calumniated system of less restricted intercourse—an increased importation of the raw material, which necessarily implies increased employment at home, and a diminished importation of the foreign manufactured article. I might show, by the like means, that with regard to foreign wines and other articles, the whole of the principle upon which we proceed has been borne out by the result. I observe my hon. Friend, the Member for Worcester, differs from me on this point. [Mr. Robinson: In the case of French wines.] I believe they constitute no exception from my statement. I have not by me, at this moment, the Return, but my impression is, that the result, as regards French wines, is precisely the same as that of the other articles I have particularised. I am prepared to show, more generally, from a review of the accounts of the last four years, that the reductions which have been made during that time in the Customs' duties have been wisely and judiciously made. I am prepared to show, that though we have lost upon those articles on which the duties have been reduced during the two first years that have followed the reduction, we have gained upon them during the two last, and have thus actually added to the receipts of the Exchequer, not by the increase, but by the reduction of duties. I cannot quit this subject without alluding to the increased amount of Customs' duties collected in Ireland, as evinced by the Returns from the most important ports in that country. We ought not to exclude the amount of Customs levied in Ireland from our consideration on the present occasion, more especially as the increase in

Year ending Jan. 1, 1833. 1834. 1835. 1836.
Belfast £181,000 £ 194,000 £253,000 £319,000
Cork 149,000 l6l,000 166,081 186,600
Dublin 576,000 546,000 661,000 816,000
Limerick 90,000 97,000 115,000 128,000
Derry 56,000 56,000 72,000 85,000
Waterford 102,000 103,000 112,000 124,000

It is quite true, that in the latter year there is included a considerable importation of tea; but from this circumstance, as well as from the gratifying fact, that there has arisen now, from many of the Irish ports, a direct trade between Ireland and China—a matter which we, who took part in the discussion respecting the opening of that trade, never anticipated; from these, as well as many other circumstances, I derive the most satisfactory assurances that the condition of the Irish people is improving. I think the House will join with me in the conclusion, that upon this general statement there is great ground for gratitude and congratulation; but I cannot conclude my observations in respect to the Customs, without adverting to the reductions lately made in the expenses incurred in the collection of this branch of revenue. Upon this point I am happy in being able to say, considerable progress has been already made; and as a reduction of the expenses of the collection of the revenue is a matter which is most important to the public, I trust the Committee will excuse me if I claim their attention to the subject. It is often said, that it behoves this House to ask, on behalf of the public, for information on those branches of expenditure which are not annually voted by us. I concur entirely in the proposition, that the House has a right to demand such information; and it is with a view of giving it that I take the liberty of now stating some few details, to show the progress we have made on this head;—

the consumption of foreign articles marks the increased command over the luxuries of life enjoyed by the Irish people. If we can measure that increased power, we obtain some insight into the progress of comfort and civilization among the population of Ireland. The document I hold in my hand is a Return of the Customs' receipts in the principal Irish ports for the years ending 1833, 1834, 1835, and 1836. It is as follows:

EXPENSE OF COLLECTION OF CUSTOMS IN THE UNITED KINGDOM.
(Exclusive of Coast Guard, &c.)
For the year No. of Officers. Salaries.
1817 7731 £819,686
1822 6788 726,572
1827 5220 630,801
1832 4976 565,021
1835 4809 558,644
Diminution in 18 years 2922 261,042

I think by this statement it is abundantly proved, that we are making considerable advances towards a more economical collection of revenue; and on the part of the Government I do not hesitate in giving a promise that—where it can be done with perfect safety to the revenue, and without danger to the multifarious interests depending upon the proper performance of the duties attached to the officer of Customs, we shall continue in the course on which we have entered, and that whenever a reduction can be adequately made, then a reduction shall take place. It must, how- ever, be clearly understood that the subject is one surrounded with much difficulty, and that in many cases, a reduction will be, for the present, wholly impracticable. It is more than probable that the considerations I have mentioned, (namely—the protection of the revenue, and a due regard to the interests involved,)—may compel us, in particular instances, to increase existing departmental establishments. I may mention, that from the important port of the Clyde we have received a most urgent remonstrance upon this subject, in which it is stated that the present Customs establishment, there, is utterly inadequate, and that, as an act of justice to the parties engaged in its commerce, as well as for the sake of the revenue, some addition should be made to the strength of the establishment. Now this application, if well founded, we must accede to, because we should not be justified for the sake of a paltry unsubstantial economy, in reducing the establishment so low as to hazard either frauds upon the revenue, or the interests of the fair and honest trader, as opposed, as they must be, to those who infringe upon the laws. I now come to the Excise branches of the revenue, and here I expect the House will call upon me to be more explicit than I have hitherto been, and to state clearly the ground upon which I venture to estimate that there will be found, for the coming year, an increase under this head. Well, Sir, the grounds upon which my supposition is based, are as follow:—Under the great heads of revenue, in my budget of last year, the Committee will recollect I stated what had been the ratio of increase which in each year had taken place during the preceding four years; and, having done so, I compared the last year with the preceding three years, with a view of showing how, in each department, the case exactly stood. I have now the result of a similar computation to lay before the Committee, and it will be perceived by my statement that we have progressed still further in our course of prosperity, and that the improvement upon which I had to congratulate the House last year, continues still to flow in a steady and gradually increasing stream. I will take each head alphabetically as it stands, commencing with that of auctions,—

Increase per cent. year ending 5th April, 1835, as compared with average of three preceding years. Increase per cent. year ending 5th April 1836, as compared with average of three preceding years.
Auctions 12 1
Bricks 11 29
Glass 14 17
Hops 21 45
Number of Licences 4 4
Malt 3 14
Paper, first and second class 7 8
Mill-board 7 8
Stained 17 4 decrease
Hard soap 15 8
Soft soap 1 decrease 12 increase
Spirits 7 13
Vinegar 13 7
so that under all these heads of Excise revenue,—after having had a large increase last year, I am enabled to afford the satisfactory intelligence that there is a corresponding increase in the present. Now, with respect to the duty on malt. I should observe that it is on malt I anticipate a very great portion of my increase. I will now tell the House the data on which this anticipation is based.
Year ending Jan. 1. Bushels. Bushels.
1833 the consumption was 37,987,000 Average 39,722,600
1834 40,517,000
1835 40,662,000
1836 45,317,000
Being an increase of 5,595,000

To those who doubt the policy of the course which the Members of the present Government have pursued—first, in reference to the repeal of the beer-tax; and next, in resisting a repeal of the malt-duty,—I would say, that I think the results to which I have just referred will justify them, and that Gentlemen on both sides of the House may consider that they acted wisely, both in supporting my right hon. Friend, the Member for Cambridge, in the repeal of the beer-tax, and his Majesty's Government, in resisting the reduction of the malt-tax; because it must be allowed that it is impossible this greatly-increased consumption can have taken place throughout the land without having given to the agriculturist the full measure of the benefit indicated by it. But I anticipate a still greater consumption in the next year; and my expectation of a still greater increase of revenue from the malt-duty rests upon no vague surmise or calculation of my own, but is founded upon the result of former years. By the malt-laws, as they at present exist, the amount is estimated for six months before the collection is made. I have before me an account of the amount received in the last three months, as well as of the amount receivable for the next three months; and the remaining two quarters being uncertain, I take them from the average of six months' consumption for the preceding three years. The result of these calculations is, that the Amount of receipt to October 10,

1836, as estimated from actual charge, is £4,370,000
And the amount of the Estimate from October 10, 1836, to April 5,1837, on average receipt for three years, will be 1,480,000
£5,850,000
Which deducting repayments from the malt drawback 200,000
Will show that the probable increased amount of duty next year will be £5,650,000

I cannot quit this question of the Excise without adverting to an experiment which the House sanctioned me in making last year, and pointing out the beneficial results to which I was justified in hoping it would lead, because it will be material when I come to the close of my argument. I allude to the reduction of the duty on flint

lbs.
The first round, ending Feb. 20, 1835, amounted to 1,196,720
1836 1,272,992
The increase, 1836 76,272
The second round, 1835 1,219,792
1836 1,394,176
The increase, 1836 174,384
The two rounds for the Quarter ending April 5,1835 2,416,512
1836 2,667,168
Leaving a total increase in 1836 of 10 per cent, upon flint glass. 250,656 lbs. weight; or

And this is the effect which has been produced merely on the introduction of the change; indeed, to show the effect produced by the reduction, notwithstanding the rise which has taken place in red lead and American ashes. I find the statement contained in a report I have received as to the result of the alteration.

glass—a trade in which there was reason to expect that England would enter into competition with surrounding nations, if the duty of 6d. per 1b. which pressed upon it could be lightened. I ventured therefore to propose a reduction of the duty from 6d. to 2d. per lb. In this I had two objects—the one the suppression of smuggling, by which I knew that the actual honest manufacturer was oppressed, and that the revenue was cheated in the article of the drawback—the other was to prevent the exertions of the industrious producer from being oppressed by the amount of the duty. I made the experiment, therefore, but it has hitherto been so short a time in operation, that I have not the means of saying that all my anticipations have been realized, but I have it in my power, however, to show the House, that from the steps which the Government are taking in the reduction of the duty, we have reason to expect that those anticipations will prove to have been well founded. With respect to flint glass, I never anticipated that the effects of the reduction would be instantaneous, because I knew that until increased competition was called into action, and additional capital employed in the production, the benefit of the remission of the duties would remain in the hands of the manufacturer, and that it was only from increased competition the public at large would derive benefit; but they are now getting that benefit, as a comparison of analogous periods in 1835 and 1836 will show:—

"In the Lichfield collection two additional furnaces have been built; a manufactory reopened; another is in course of erection; a third is contemplated. In Manchester there is an increase of fourteen per cent.; in Stourbridge of eleven, notwithstanding the increased price of the materials, the value of red lead and American ashes having considerably more than doubled in the last year. In the York collection the manufacturer has considerably enlarged his works, but has yet more orders than he can execute during the next four months. In London the immense demand for phials, moulded bottles, and other low-priced articles, shows that the illicit manufacturer is beaten out of the market, and causes great difficulty in procuring a sufficient number of hands to perform the work. There are comparatively few arrests for illicit manufacture."

Thus the Legislature has produced increased enjoyment and comfort for the people with a diminution of litigation, and a reduction in the frequency of prosecutions, imprisonments, and penalties. This result ought surely to be an encouragement to the House and to the Government to persevere in the course they have taken. There is also another article to which it is important to refer, and which was relieved last year to a considerable extent—I allude to Irish spirits. My noble Friend who preceded me as Chancellor of the Exchequer, finding a decrease in the amount of Irish spirits annually brought to charge, although the consumption was well known to have increased, felt himself compelled to reduce the duty. The result has been as follows: the amount brought to charge for the year ending

Gallons.
January 1, 1833 was 8,542,000
1834 8,382,000
1835 10,329,000
Average 9,084,000
The amount in 1836 was 11,634,000
Being an increase of 2,549,000 gallons.
after the diminution of the duty in or nearly one-third of the whole consumption at the time the duty was the highest. I may here be permitted to state, that a great simplification has taken place in the regulations for the collection of Excise revenue. These changes are still in progress. Already the dealers in tea, wine, and sugar have been much relieved: 187 offices, held at salaries amounting to 11,827l., have been abolished—in consequence of which change, upwards of 150,000 traders are relieved from the turmoil and inconvenience of an Excise survey, and are left to the free exercise of their trade. I may pass over lightly the smaller branches of the revenue, with which it is scarcely necessary to occupy the time of the House at any length. The amount of the Excise revenue for the next year is calculated at 14,170,000l. That estimate has been communicated to me by the practical officers of the department—the same who framed the estimate of last year, which has been fully verified by the results. The present estimate is founded upon the same data, and the House may, therefore, rely upon its accuracy. In discussing this part of the question, it is not my intention to allude to the alterations I mean to propose, because I feel that in doing so, I should only embarrass my argument. In almost all the heads of revenue included in the Stamp Acts, with the exception of probates and letters of administration, an increase has taken place last year. I do not anticipate any loss of revenue from the intended Stamp Act now, with the exception of the proposed reduction of the stamps on newspapers. I believe the immediate loss will be compensated by the prospective gain. With respect to newspapers, without anticipating here what I mean to propose, I may observe that I do not believe the reduction will cause any eventual reduction of the revenue—the estimate of the stamp revenue is pretty much the same as were the receipts of last year—it may be taken at 7,000,000l. The relief given by taxes repealed exceeded, last year, the estimate made by Lord Spencer, and occasioned a loss of 42,000l. to the revenue. The taxes upon servants, carriages, horses, and other duties, which may be considered as voluntarily-paid by the rich, have produced an excess of 64,000l., which more than counterbalanced that loss. I now come to the Post Office department; in dealing with which I regret that I have not as yet laid on the Table a Convention which has been concluded by his Majesty with the King of the French. That treaty will produce some loss of revenue; but when we consider the relief which will be given by it to the mercantile community, I believe no real loss will ultimately ensue; but that, on the contrary, a larger amount of revenue will hereafter be received. A Bill was passed last Session upon which that convention is founded. The Act authorized his Majesty to allow the free transportation of foreign newspapers from any country which received our newspapers on the same terms. It also allowed a reduction of postage to be made on certain conditions. The Government has acted in the spirit of that Act, and a Convention has been concluded with France, which will require the sanction of Parliament. Free transmission of news- papers to foreign countries will be secured. The reduction of postage would be from 2s. 5d. from London to Paris, and from 2s. 1d. from Paris to London, to 1s. 8d. It will no longer be necessary, when these reductions are made, that the postage should be paid before the despatch of the letters; and were the high postage continued, the number of instances in which the letters might be refused, would be so great as to occasion the probable loss of a considerable portion of the revenue. I need only state further on this point, that the Post-Office has already been enabled to effect considerable savings, founded upon the recommendation of the Commissioners of Inquiry. In the mail-coach contracts a saving of 12,000l. a year has been already made. There are other recommendations given in the Report, which must be carefully considered by the Government; and they shall be carried into effect, if it be practicable to do so with safety. I estimate the Post-Office revenue at 1,543,000l., independent of the reduction of foreign postage, which will bring the amount somewhat below that sum. Having now gone through the various heads of the public revenue, I shall shortly advert to some circumstances which indicate the improved state of the country, and which appear to me to deserve the consideration of the House. I need say nothing with respect to the existing prosperity of the manufacturing districts, because that is a matter which may be taken as admitted. The great activity in the manufacturing districts, and the demand for labour, for machinery, for new works, and increased hands, even in those places where distress has recently been represented to be most prevalent, are all notorious and undeniable. The increased employment even for the hand-loom weavers in various parts of the country, are well known to the public and to the House, and it would, therefore, be unpardonable in me to dilate upon them more particularly. But I may still venture to refer to a few facts which bear materially upon the subject. No facts can be a fairer indication of the state of the country, and of the commercial classes, than the increased or decreased numbers of persons discharged under the Insolvent Debtors' Court. I adverted to this circumstance last year, and had the satisfaction of then stating, that a great reduction bad taken place in the number discharged, but the reduction which I have to announce this year is still greater, as in 1832, the number discharged was 4648; in 1833, 4583; in 1834, 4275; and in 1835, the number was 3890, being a diminution of 658; and I learn from the Report of one of the Judges of the Insolvent Court, dated April 4, 1836:— In the clothing districts of Gloucester and Somerset there was a very great improvement; there was no one case of the insolvency of a master or weaver on his own account, where three years ago there had been several. Such a general prosperity was observable in the manufacturing parts of northern and midland counties, that the Judge had frequently expressed in Court his congratulations to the country. This was more especially noticeable at Nottingham and Leicester, where, on former occasions, the numbers of failures had been considerable, and the characters of some of them fraudulent. The Returns from Ireland presented the same results; but one of the most material and important facts for the House and the country to consider, is the improvement which has taken place in the agricultural parts of the country by the alteration of the poor-laws. I could scarcely have believed it possible that any legislative measure, however sound its principles, could come into such immediate and beneficial action. I admit that it has been aided by adventitious circumstances, by the general demand for labour, and by the low price of food during a great part of the time. I state these circumstances the more freely, because I know that my case is strong enough, after making all allowances. I do not attribute the favourable result of the altered law to those adventitious circumstances, because I might show that, at other periods neither a low price of provisions, nor an increased demand for labour, has produced the same reductions. I am therefore justified in attributing the results, not to two causes, which were common to both periods, but to one cause—the reform of the poor-laws, the effect of which is confined to the present time. This will be clearly demonstrated by the facts to which I am now about to refer.