§ LORD GEORGE BENTINCKSir, I hope the House will pardon me if, in asking for a return, to which it is not, I know, the intention of Her Majesty's Ministers to offer any opposition, I, in the present state of the revenue, enter into some explanations of the motives which induce me to ask for this return, and the result I expect to arise from the production of it. Sir, within these few days that which I may describe as a State Paper has been issued to the electors of Tamworth. In that Paper a statement has been set forth with regard to the effect and operation of those financial measures which have taken place in the course of the last six years, which, if left altogether unrefuted, might have, in my opinion, a very dangeous tendency at the coming elections. The general effect of that statement is, that by the reduction of duties to a large extent it is possible to relieve the people of this country of burdens amounting to no less than 7,625,000l., with little or no loss whatever to the revenue. It is set forth in this address to the electors of Tamworth, that Sir Robert Peel, upon his advent to office, found the finances, under what is represented to have been the mismanagement of his predecessors, in a state of deficit amounting to 2,100,000l.; that in the year 1840, the Whigs attempted to restore this ruinous state of finances by a recourse to an increased duty of Excise and Customs, amounting to 5 per cent, and of assessed taxes to the amount of 10 per cent; but that the result of this procedure on the part of the Government was, that whilst they estimated the harvest to be derived from those increased duties of Customs and Excise, and assessed taxes, at 1,910,000l., it in point of fact fell short by no less a sum than 1,160,000l., and produced but 750,000l. Sir Robert Peel, in his address 618 goes on to state that he had recourse to different measures, and that, putting aside the property tax, and applying his attention solely to the ordinary sources of revenue, in which are included Excise, Customs, Post Office, Stamps, and Assessed Taxes, believing that it was not possible to extend further the pressure of taxation upon articles of consumption with any reasonable prospect of an increased return, he had recourse to the reduction of duties on Customs and Excise. And he would have us believe that the result of his six years' Administration was, that, whilst he reduced taxes to the amount of 7,625,000l. there resulted upon the ordinary sources of revenue an apparent loss of no more than 363,000l.: but as he admits that the Whig Administration is entitled to take credit for 416,000l. of gain from the alteration of the sugar duties at the end of the last Session, whereby slave-grown sugar was admitted into the consumption of this country at a high differential duty—50 per cent above that on colonial sugar—he acknowledges that whilst the apparent loss was only 363,000l., the virtual loss through his reductions must be reckoned as 779,000l. Now, it cannot be disputed that a greater financial conjurer never existed than Sir Robert Peel, if this were a fair statement of the result of his financial operations. And if it be permitted, on the eve of a dissolution, that such a statement as this should go forth to the country uncontroverted, I fear the necessary result—the natural result—will be, that the people of this United Kingdom will come to the opinion that they have nothing to do but to take off the taxes—that they have nothing to do but to follow the example of Sir Robert Peel, and abolish taxes altogether, and still be able to maintain the revenue. But the effect of the statement I am now going to make to the House, which, I believe, will, in the main, be borne out, will show that while Sir Robert Peel dealt with but 10,528,746l., and left 37,388,254l. of the revenue untouched, there would have been a deficiency in that portion of the revenue with which alone he dealt, of no less than 4,925,319l.; but that this deficiency, which would have been the most serious and disastrous that over occurred to any Minister, was compensated by the increase on those very articles, and by that same enhanced taxation of his predecessors on the 37,388,254l. of revenue which Sir Robert Peel left untouched. Sir, I cannot undertake to say 619 that all my details are to a figure accurate, or that I have accurately divided every portion of revenue; but I will undertake to say that I have gone near enough for the objects of truth. I find that in the year 1841, there was no less than 37,388,254l. of the ordinary sources of revenue, with which, during the whole course of Sir Robert Peel's Administration, no legislation took place. The following are the principal sources of revenue:—
It is right here to state, that, as regards hops, some alteration was made by the late Administration in the Custom-house duties; but that is a totally different branch of revenue: I am now speaking of the Excise on hops. But again:—
Revenue in 1841. Revenue in 1846. Increase. Decrease. £. £. £. Bricks 443,018 638,422 195,404 Paper 586,219 791,991 205,772 Soap 815,864 965,040 149,176 Hops 69,055 286,265 217,210 This item of revenue, however, Sir, requires some remark; for although the "Net Revenue" is so given in the accounts, yet the charges of management as regards the Post Office being deducted at a later stage of the accounts, the actual payment into the Exchequer will be found to be only 415,000l. in 1841, and 845,000l. in 1846. But to proceed:—
Revenue in 1841. Revenue in 1846. Incrse. Decrse. £. £. £. £. Malt 5,263,363 5,084,649 178,714 Licenses 1,036,582 986,154 50,428 British Spirits 5,178,175 5,949,151 770,976 Assessed & Land Taxes 4,715,353 4,474,462 240,891 Post-horse Duty 199,864 179,831 20,033 Post Office 1,495,540 1,963,857 468,317 620 In respect of two of these last items, let it also be remembered that, upon tea, this increase of 1,138,336l. has taken place notwithstanding the additional duty of 5 per cent put by the Whig Administration on this article of consumption, on which a duty of 200 per cent existed before; and that the case as regards tobacco and snuff is pretty nearly the same, the increase of 768,262l. on this one head of the revenue having accrued in spite of the 5 per cent duty added by the Whigs to a duty already varying from 600 to 1,200 per cent. The result of all this is, that the revenue which was not touched by Sir Robert Peel's legislation in the course of his six years' Administration, rose from 37,388,254l. on the 5th of January, 1842, to 41,538,573l. on the 5th of January, 1847; being an increase upon this source of the revenue of no less than 4,150,319l. This shows, notwithstanding the 5 per cent additional duty laid on by the Whigs upon the Customs and Excise, and notwithstanding the 10 per cent additional duty laid on the Assessed Taxes by the same Government, an increase of 11⅓ per cent upon that branch of the ordinary revenue with which Sir Robert Peel's Administration did not meddle. I take the statement of the ordinary revenue, with the losses and gains, as I find it in the address to the electors of Tamworth. It is contended that the ordinary revenue was found to be 47,917,000l. when Sir Robert Peel's Administration commenced in 1842. Well, then, deducting 37,388,254l. from this sum of 47,917,000l., there remains to be dealt with the sum of 10,528,746l.; and this is the source of revenue with regard to which alone Sir Robert Peel, in the course of his Administration, made his financial experiments. And what has been the result? The result is, that while, as I have told you, the 37,388,254l. with which he did not meddle, grew, by the 5th of January, 1847, to 41,538,573l., the 10,528,746l. upon which Sir Robert Peel tried his financial reform dwindled down by the 5th of January, 1847, to 6,019,427l. Well, Sir, I then have further, by his own admission and acknowledgment, to deduct 416,000l., which is fairly to be attributed to the measure of the noble Lord opposite (Lord John Russell) with reference to sugar duties, and but for which this sum of 6,019,427l. would have dwindled down to 5,603,427l., showing a loss to the revenue upon that part of it upon which he attempted his financial experiments of no less than 621 4,929,319l.—or 44⅓ per cent. And when you bear in mind, as I have stated, that this sum of 10,528,746l. forms but two-ninths of the entire ordinary revenue, just see what would have been the condition of the country if Sir Robert Peel had tried his experimenting hand upon the whole of what are called the ordinary sources of revenue. Sir, the result would have been, that this defalcation upon the whole revenue would have been no less than 20,163,935l., which must have been recovered by a most exorbitant property and income tax. Well, Sir, but perhaps it will be argued, that, though it is true that Sir Robert Peel lost a great revenue upon those items with regard to which he legislated, still that, "by taking off the weight''—that is the expression—"which hung upon the springs of industry," he had given such an impulse to the great staple manufactures of this country, that he occasioned an increased consumption in all other articles—the necessaries of life, and the luxuries consumed by those numerous bodies of the people engaged in the great staple manufactures—and that thus it was he indirectly regained all he had primarily lost through these reductions; and besides, if it were true that the dead loss upon cotton and wool amounted to 658,360l., still, that this loss was, nevertheless, amply indemnified by the great impulse given to cotton and woollen manufactures; whilst, in like manner, when the duty was taken off the flax and silk manufactures, a similar impulse was given to those trades. Now, let me examine this part of the question. I have before me a comparative statement of the declared value of exports in the four great staple articles of our manufactures for the first five months of the year 1845, with the first five months of the present year; and what is the result? The result (and these first are the five months before that large revenue previously derived from cotton was sacrificed) will appear in the following statement:—
Revenue in 1841. Revenue in 1846. Incrse. Decrse. £. £. £. Stamps 7,276,360 7,675,921 399,561 Spirits, Rum 1,063,087 1,210,535 156,448 Tea 3,973,668 5,112,004 1,138,336 Tobacco & Snuff 3,550,825 4,319,087 768,262 Wine 1,721,281 1,892,204 170,923
"Declared value of exportation in the first five months of 1845:— Cotton manufactures and yarn. £10,289,868 Linen manufactures and yarn. 1,750,510 Woollen manufactures and yarn. 3,464,086 Silk manufactures and yarn. 297,721 £15,802,191 Glass 215,639 Declared value of exportation of the first five months of 1847:—622
Cotton manufactures and yarn. £9,820,772 Linen manufactures and yarn. 1,495,636 Woollen manufactures and yarn. 3,110,568 Silk manufactures and yarn. 404,502 £14,831,478 Glass 131,739 The result of all this is, that the aggregate value of the amount exported of these articles in the first five months of 1845 was 15,802,191l.; whilst, in the first five months of 1847, it fell to 14,831,478l. The House, from this statement, must see what was the effect of the financial changes brought about by the late Minister: but I hope you will not forget the fond anticipations in which Sir Robert Peel indulged with regard to the effects which he held must necessarily arise from a repeal of the duties on glass. When it was announced that the duties on glass were to be removed, the intimation was ushered in with a loud note of preparation. The country was told that it would be utterly impossible to estimate the endless variety of purposes to which glass might then he applied; among others, that the springs of our watches were to be made of glass; and, mounting from small things to great, iron was to be superseded, and, instead of the water of our great towns being carried through iron tubes, it was hereafter to be conducted through pipes of glass. And, as far as foreign exports of it were concerned, why there was to be no limit to them. We were to supply, if not the whole of the world, at least the whole of Europe, with glass. Now, Sir, how stands the matter? I find that the exports in glass amounted, in the first five months of 1845, to the declared value of 215,639l.; and that they fell off, in the first five months of 1847, to 131,739l. The result of the whole of this statement is, that there was a falling off upon the declared value of the four great staple manufactures, together with glass, amounting to 1,054,613l. Now, after that statement, I think it cannot be argued by the most sanguine or subtle financier that the abolition of the duties on cotton, on wool, on flax, and upon glass, contributed to the increased revenue upon those articles of general consumption of which I have before spoken. There must 623 be some other cause than that. Well then, Sir, we may, perhaps, be told that it was from the reduction of the duties on brandy that this increased revenue arose. French brandy is one of the articles upon which there appears to be a considerable loss to the revenue. The receipts of duty on French brandy fell from 1,329,082l. in 1842, to 1,165,456l. in 1846; showing a decrease of 163,626l.; and it will hardly be argued that by taking off 7s. 10d. of the duty upon brandy, and thus making brandy cheap, and encouraging its consumption in preference to wine, rum, and British spirits, on which you left the high duties undiminished, you indirectly induced this greater consumption of high taxed wine, rum, and British spirits; yet, whilst you lost on brandy, 163,626l., you gained on wine, on rum, and British spirits, 1,098,347l. Yet, as I have shown the House, foreign wines, rum, and British spirits are three of the heads of revenue which, being left untouched, have very largely increased in consumption. Another article upon which the duties were reduced, and on which a large revenue has been lost, is that of timber. Now, Sir, I think it can hardly be pleaded that the large increase of between 400,000l. and 500,000l. on the Post Office duties, and the increased duty of 205,772l. upon paper, can have grown out of the reduction of the duties upon timber. Well, Sir, but amongst the various alterations in these duties, to which so much success is ascribed, is the removal of the duties not only upon raw materials used in manufactures, but on all dyestuffs, oils, and various other articles of a similar description; but as these are articles of reduction which apply only to the four staple manufactures of the country, and as I have shown that the exportations of the staple manufactures have not increased, it cannot be pleaded that the removal of any of the duties connected, in dyeing, or in any other way, with manufactures, can have been instrumental in increasing the consumption. Sir, what was totally left out of view, I apprehend, was the gracious and merciful interposition of Providence, which happened as soon as the Whigs went out of office. I do not wish to say anything derogatory to the Whigs; but certainly, no sooner did the Whigs go out of office, than we were blessed with three successive fine harvests, and with excellent cotton crops; and I apprehend that it was not the five per cent additional that the Whigs placed on the 624 Customs duties, or the ten per cent additional on the assessed taxes, that checked the prosperity of the nation, and blighted the growth of the revenue, but that the cause why the revenue did not prosper in 1841 and 1842 was that we had then had three successive bad harvests and a bad cotton crop to boot. Well, Sir, I have spoken of the interposition of Providence, which in our previous discussions has been altogether passed over; but, Sir, I may venture to say that there was a not less powerful cause at work, and that was that, instead of 150,000,000l. being lent, as my noble Friend the Secretary of State for Foreign Affairs informed us the other night, in loans to foreign countries, of which neither capital nor interest has been repaid, nearly 100,000,000l. have, in the course of these six years, been spent at home upon railway enterprise. And you will find the consumption of tobacco, the consumption of tea, and of sugar, by those employed at home on railway enterprise, to be the true cause of the elasticity of the revenue, and not, Sir, the often-boasted effects of these alterations of the financial and commercial policy of the country. Indeed, these boasts often remind me of that fable of the two flies which is so well told by the poet when he speaks of the flies who ascribed all the dust kicked up by the carriage on which they were riding as the result of their own great exertions. Prior, I think, tells the tale thus:—
"Diminished value of exports:— On the four great staple manufactures £970,713 On Glass 83,900 £1,054,613" 'Say, sire of insects, mighty Sol,'A fly upon the chariot pole cried out,'What blue-bottle aliveDid ever with such fury drive?''Tell, Beelzebub, great father, tell,'Says t'other perched upon the wheel,'Did ever any mortal flyRaise such a cloud of dust as I?My judgment turned the whole debate,My valour saved the sinking state.'That, I think, is a fair description of the boasts of the great rival free-traders of modern days. But, Sir, in bringing forward this Motion, and thus trespassing on the attention of the House, I hope to be excused on the ground of the result of my Motion; for if, at the eve of a general dissolution, the political doctrines to which I have alluded should go forth, on such high authority as the right hon. Gentleman the Member for Tamworth, uncontradicted to the elections, what must be the necessary result? Why, you will have a far louder call for free trade in the next Parliament; you will not be able to resist 625 the call for the entire repeal of the tea duties, for the entire repeal of the tobacco duties, for the removal of the window tax, and every other tax, not excluding the malt tax, and the hop duties and the soap tax, which are taxes so much more onerous to the people than the taxes on cotton, on French brandy, on timber, on wool, on oils, and on dyestuffs, which have been removed; and there will be a House of Commons returned in which the Members will come again pledged to their constituents to repeal all these taxes, and they will either put themselves in the position of breaking faith with those who sent them to Parliament, or of leaving the main sources of the revenue in a state unequal to meet the demands of the public creditor. Sir, I am one of those who seek for the repeal of the malt tax and the hop duties. I am one of those who think that the Excise duties ought to be taken off. But, Sir, I do not pretend that you can repeal the malt tax, or the hop duties, or remove the soap tax, without commutation for other taxes. I will not delude the people by pretending that I could take off 7,625,000l. of taxes, without replacing them by others, and not leave the nation bankrupt. But, Sir, I think these reforms have been in a mistaken direction; I think that revenue duties on all foreign imports ought to be maintained, and that a revenue equal to those Excise duties which I have mentioned can be levied upon the produce of foreign countries and of foreign industry without imposing any greater tax than one that shall fall far short of Mr. Walker's "perfect revenue standard of 20 per cent." I say that by imposing a tax far less than 20 per cent, by imposing one of 12½, or at most of 15 per cent ad valorem upon all articles of foreign import, a revenue might be derived far less burdensome to this country, than of Excise—a revenue of which the burden would be: largely shared in by foreign countries, and in many cases paid altogether by foreign countries—a revenue such as would furnish a sum of money that would enable those great items of Excise duties, the malt tax, and the hop duties, and, with such continuing prosperity as we have had, the soap duty too, to be repealed, without any risk to the public revenue. Sir, I thank the House for having so long listened to me; and I will now conclude by begging leave to move for this return, which, though not exactly in the terms of my Motion 626 on the Paper, is still comprehensive enough to carry out my object. I have drawn up the return in the terms suggested by Her Majesty's Chancellor of the Exchequer:—Return of the net amount of Duty received upon each article paying Customs Duty to the amount of 1,000l. or upwards, and of all other articles paying Customs Duty collectively, in each of the years ending the 5th day of January, 1842, and the 5th day of January, 1847, divided into classes A and B, (A containing those articles in the Duties on which no alteration has been made; B containing those articles the Duties on which have been altered), with the increase or decrease of receipt on each article respectively, and distinguishing, in the year ending the 5th day of January, 1847, the increase or decrease in the amount of Sugar Duties received before and after the 18th day of August, 1847, when the Sugar Duties Act, 9 and 10 Vie. c. 03, was passed.Similar Return for Duties of Excise, Stamps, Taxes, Post Office, Crown Lands, Miscellaneous.Return of the declared value of the Exports of the four great articles of our staple Manufactures, viz.: Cotton Manufactures and Cotton Yarn, Woollen Manufactures and Woollen Yarn, Linen Manufactures and Linen Yarn, Silk Manufactures, in the five months ending the 5th day of June, 1845, and in the five months ending the 5th day of June, 1847; together with an Abstract of each of the foregoing Returns.
§ The CHANCELLOR OF THE EXCHEQUERwas not prepared to follow the noble Lord into the various details by which he had supported the arguments contained in his speech, nor did he think that any good would arise from such a discussion at such a time. He had no doubt that his noble Friend had, speaking generally, very accurately stated the various amounts of revenue at the different periods to which he had referred. The returns moved for, however, would be shortly before the House, and then every hon. Member would be enabled to test the accuracy of his noble Friend's statements. His noble Friend had also gone into a considerable discussion on the principles of free trade, and had alluded to a letter addressed by a right hon. Baronet to his constituents respecting his commercial policy; and his noble Friend would, probably, through the means of his speech, put before the public his views on the same subject, and the public might consider the letter and the speech as manifestoes on the two sides of the question, otherwise he could not think that any great benefit could arise from such a discussion at that period of the Session. He could not refrain from observing, however, that a decrease of revenue must be expected, of 627 course, on those articles upon which the duty had been considerably reduced; and it would be perfectly absurd to expect an increase of revenue on articles where the whole duty had been taken off. It was expected, of course, in all matters of that kind, that by relieving parties from duties of one kind, you enabled them to consume other articles, so as to make up the deficiency. His noble Friend had truly stated that the late Government had had the advantage of good harvests; and a portion of the increased consumption of the country was no doubt owing to the material prosperity which usually followed a good harvest; but his noble Friend had entirely forgotten, whilst comparing the five months of the year 1845 with five months of the year 1817, that the harvests in the latter year were somewhat in the same unfortunate state as in 1841. Having said thus much, he hoped that no long discussion would be raised on the question. He was prepared to give the returns asked for by his noble Friend, although he did not concur in his conclusions; and he again trusted that the speech of his noble Friend, in answer to a manifesto published elsewhere, and which perhaps his noble Friend might have answered as effectually in an address to the electors of Lynn, would not be the means of leading to a prolonged discussion.
§ MR. HUMEconsidered that the noble Lord the Member for Lynn's statement was of a partial character. Let them take the revenue of the year 1842, for instance, recollecting that the right hon. Baronet's manifesto extended over a period of four years. It appeared from a Parliamentary Paper moved for by Mr. Baring, numbered 260 of the Sessional Papers, that the revenue for the year 1842 amounted to 50,979,595l., deducting all drawbacks, deductions, and repayments. In point of fact, that was the net revenue for 1842. Well, what was the revenue this year? They would find by reference to authentic documents that it reached 57,589,000l.; but the income tax amounted to5,464,000l., so that if they deducted that sum, there would still be left a large balance in favour of the year 1846–7, notwithstanding the fact that seven millions and a half of taxation had been taken off articles of almost daily consumption, thereby affording increased means of employment, and cheapening the price of those articles which entered most largely into the consumption of the labouring and agricultural classes. Deducting the income tax, and excluding all 628 consideration of the China money, the net revenue of 1846–47 showed an increase over the net revenue of 1842 of l,445,000l.; and no result could be more satisfactory. The additional imposition of taxation had fallen on the property of the country; and the whole object of the reform of the Tariff was to remove taxes on articles required for manufactures, and for consumption by the mass of the people; to stimulate employment, and give them a higher and more remunerative scale of wages. The reform of the Tariff, recently effected, unquestionably had done this; but there was no doubt that the surplus net revenue of 1846–7 over that of 1842 was aided by the development of railway enterprise and the increase which had taken place in the rate of wages. Without wishing to prolong the present discussion, he could not avoid saying, that he considered the noble Lord the Member for Lynn had altogether failed in making out his case. At the same time, he would observe, that he should be most happy to see the duties removed from malt, hops, and soap. He advocated the removal of all Excise duties, and was perfectly prepared to substitute the income tax in their stead. He thought he had demonstrated the utter failure of the noble Lord's arguments, that the revenue of 1846–7 exceeded that of 1842, notwithstanding a deduction of nearly seven millions and a half on the taxation of articles used by the masses of the people, and that the experiment made in reforming the Commercial Tariff had proved eminently successful.
§ MR. BANKEShad no desire, in accordance with the expressed wish of the right hon. Gentleman the Chancellor of the Exchequer, to prolong the discussion to which his noble Friend's observations had given rise. His noble Friend thought it right to make a statement answering the manifesto issued elsewhere by the right hon. Baronet the Member for Tamworth, and so the matter stood; but when the hon. Member for Montrose asserted that his noble Friend the Member for Lynn had made out no part of his case in reply to that document, he must be allowed to say that he considered the part of the case which the hon. Member for Montrose thought not proved, had been most clearly established; and if the hon. Gentleman had remained in the House during the delivery of his noble Friend's speech, instead of going out to procure information as he had done, and returning loaded with that information, possibly he might have 629 inclined to a similar opinion. The noble Lord went most minutely and in great detail into that part of the case to which the hon. Member for Montrose had adverted. The noble Lord the Member for Lynn stated that the right hon. Baronet the Member for Tamworth had taken credit for the general success of his plans; whereas the fact was, that the amelioration of the revenue had arisen from the returns of those taxes with which the right hon. Baronet the Member for Tamworth fortunately did not deal, and that the failure of the revenue had occurred in that portion of the taxes with which the right hon. Gentleman did interfere. That was the statement made by his noble Friend—a statement which he would not attempt to weaken by proof, or by repeating those facts with which his noble Friend had demonstrated its complete accuracy. There had been an increase in that portion of the revenue—his noble Friend conclusively showed, and he cheerfully concurred in the demonstration—with which the right hon. Baronet had not interfered or tampered; and that increase, he admitted, was augmented by the increased consumption of articles arising from the effects of railway enterprise. In point of fact, that was the true and simple mode of accounting for the improved condition of the country. Let it be recollected, when he was speaking upon the subject of trade, that they had been promised as a kind of set-off against the additional imports which the removal of restrictive duties encouraged, a corresponding increase in the exports of their domestic manufactures. Great, however, was their regret and alarm when they found that that which was promised to be so useful a result, did not follow.
§ MR. GOULBURNobserved, that he had not heard any portion of the noble Lord's speech, with the exception of the last sentence, as he had no idea that it was the noble Lord's intention to have made a speech on the occasion of moving for unopposed returns. He was aware that the noble Lord had a Motion on the Paper, and had asked the Chancellor of the Exchequer whether he anticipated any debate; and that right hon. Gentleman had told him he did not, as it was not his intention to oppose the return. Under these circumstances he had left the House. Whatever triumph the noble Lord had achieved by his array of figures, and the attack he had made upon the right hon. Gentleman lately at the head of the Government, would 630 be for him to enjoy after the papers had been moved for; but he (Mr. Goulburn) assured him that whatever course his right hon. Friend and himself had adopted, had been taken with the desire to promote the greatness and the prosperity of the country. He agreed with his right hon. Friend the Chancellor of the Exchequer, that all discussion upon the subject at this moment would be inopportune, and consequently he would not trespass further on the attention of the House.
MR. WILLIAMSexpressed his approval of the free-trade measures of the Government, which he contended had conspired to increase the comforts of the people, without injuring the revenue of the country. There had been a reduction since 1818 of 27,000,000l. of taxes, and yet the revenue had fallen off only to the extent of 9,000,000l.
§ Returns ordered.