SUPPLY. (Hansard, 12 February 1845)

§ The Chancellor of the Exchequer
moved a Resolution for a vote of 18,404,500l. Exchequer Bills.

§ Mr. Hume
hoped that the laxity observable in the Exchequer Bill Officers on late occasions would be checked in future.

Mr. Williams
submitted that, from the present abundance of money in the country, a reduction upon the interest of Exchequer Bills from 1½d. to 1¼d. per cent. per day might be made. He would venture to suggest that the Exchequer would benefit much by this reduction in the rate of interest. He threw out the observation in the hope that Government would adopt some measure for that purpose, and he was fully of opinion, that in the present 346 state of the money market, that change might be effected with perfect ease.

§ The Chancellor of the Exchequer
said, the hon. Gentleman had now repeated the observations he had made on former occasions, and he was afraid he could now give the hon. Gentleman no more satisfaction than he had given him on those occasions. It should not be forgotten that there was a very great difference between sums lent for short periods at small rates of interest, and stuck, which might be considered as of a mere permanent character. Since the hon. Gentleman had last spoken on the subject, the premium had varied eight, nine, and ten shillings; and he ought not, therefore, to argue that because the premium was now high, it necessarily followed that the interest on Exchequer Bills could be reduced.

§ Mr. F. T. Baring
wished to ask one or two questions of the right hon. Gentleman. He observed in the late balance sheet that the total charge of the funded debt was set down at 29,963,000l., and he was anxious to know whether the sum of 1,309,000l., which formed one of the items of this amount, was to be an annual charge? Next, in the charge of the funded debt in the present year, had any advantage arisen from the reduction of the Three-and-a-Half per Cents? Thirdly, was the opium compensation entirely paid, or was there to be any future charge? He was anxious to know what was the real balance sheet, on which they could depend in forming an opinion as to the course to be taken on Friday next, because the answers to these questions might make a very considerable difference in considering the possibility of taking off the Income Tax.

§ The Chancellor of the Exchequer
trusted he should be able to give the right hon. Member satisfactory answers to his inquiries. The right hon. Member would be aware that when he proposed to effect a reduction in the interest of the Three-and-a-Half per Cents., he 'availed himself of the oportunity of obtaining powers to pay the interest in the various stocks at uniform periods, and in order to effect this, it became necessary to pay some of the interest before it became due. For instance, one stock paid interest half yearly, while others paid quarterly, and thus to make the time uniform, the interest, in one or two instances, was paid in October, when hitherto it was not paid till January, thus necessitating a charge of 1,300,000l. It appeared, therefore, that in the account ending 347 January, 1845, there was an increased payment for the national debt beyond that of any former period; but when they arrived at the statement to be made for April, there would be a reduction oroportioned to the payment previousl made. He hoped this answer would satisfy the hon. Gentleman so far as it concerned his first question. With respect to the second question, as to what benefit would be derived from the reduction in the Three-and-a-Half per Cents., the right hon. Gentleman would be aware that the Act directed the reduction should be made from October, 1844, but from the circumstances he had before stated, the benefit would not commence till January, 1845, and would be made apparent in the revenue returns of April ensuing. With respect to the third question relating to the opium compensation money, he might say that the whole had been paid. There was, however, a sum of 15,000l. in dispute, and as yet unpaid, and that was the whole extent to which any future payments would be made in respect of compensation.