QUESTION. (Hansard, 17 May 1860)

§ THE CHANCELLOR OF THE EXCHEQUER

I believe it is customary with most men, when they have to deal with two points, to begin with the easier. I will therefore answer the bon. Member for Maldon (Mr. Peacocke) by informing him that, although the Yeomanry are not to be called out this year, according to the intention of the Government, the regular directions have been given for allowing them the exemption from the duty on Yeomanry horses, which is, I think, in accordance with obvious justice.

With respect to the question of the hon. Member for Halifax (Mr. Stansfeld), as it refers to a matter, which, of course, was under the consideration of the Government at the time the Treaty of Commerce with France was being negotiated, and as I learnt a few hours ago that the question was to be put, I sent for a copy of the Treaty with France, and I have no difficulty in giving an answer to the hon. Member, which embodies the opinion of the Government upon the effect of that article. I, of course, take no notice of those portions of the hon. Gentleman's questions, which appear to anticipate that I the Bill for the repeal of the duty will probably be lost in "another place;" since that is an occurrence which it is not for me to anticipate. The Seventh Article of the Treaty commences thus:— Her Britannic Majesty promises to recommend to Parliament to admit into the United Kingdom merchandise imported from France, at 1366 a rate of duty equal to the Excise duty, which is or shall be imposed upon articles of the same description in the United Kingdom. At the same time, the duties chargeable on the importation of such merchandise, may be augmented by such a sum as shall be an equivalent for the expenses which the system of Excise may entail upon the British producer. Sir, I do not understand the hon. Member to ask me what might be, or might not be, the obligations of England, according to the opinion of Her Majesty's Government, in the event of the repeal of the Excise duty upon paper; and, therefore, that matter I leave for the present altogether aside. But, the hon. Gentleman asks me the opinion of the Government upon the obligations of England, under the Treaty with France, and under the terms of the Address, by which each House of Parliament has bound itself to give effect to the Treaty, in case the Excise duty on paper should not be repealed. Well, Sir, I apprehend that is a question, upon which no person who has examined the Article I have quoted, can possibly entertain a moment's doubt. At any rate, Her Majesty's Government consider it to be a matter beyond all doubt, and beyond all argument or necessity for construction or interpretation; inasmuch as the words appear to be as plain as possible and directly applicable to the case. If there be a duty of Excise on paper, then, subject to a single condition, it is the obvious duty of England towards France, and of the Houses of Parliament, under the terms of their Address, to reduce the Customs' duty on foreign paper to the precise level of the Excise duty on paper made at home. The single condition, to which I refer is, that contained in the latter portion of the clause, which specifies that the duty chargeable on the import of such merchandise may be augmented by such a sum as shall be an equivalent for the expense which the system of Excise may entail upon the British producer. And that principle has been applied, in the course of the present Session, in conformity with the general spirit and express terms of the Treaty, to the case of spirits, where the regulations of the Excise are so restrictive in various particulars, that they entail disadvantages upon the producer, that are capable of being stated in money. And a compensation for these disadvantages, in the shape of what the French call a surtaxe, has been added to the import duty chargeable on foreign spirits. But, with respect to the duty on paper, whatever may be its effect in restricting trade—which is 1367 not now a matter of discussion—no one has ever alleged that it imposes disadvantages on the manufacture of paper of such a definite nature, or such an amount as to be capable of being stated in the form of a certain rate of money. No claim of such a character has ever been made, or could be made. The inconveniencies, whatever they are, to the actual manufacturer of the article which we call paper, are not so appreciable or palpable, as to be capable of being reduced to such a form. There will, therefore, be no case for a surtaxe like that imposed in the case of spirits, and, therefore, I presume that in such a contingency as that to which the hon. Gentleman has adverted—and which again I decline to accept or to suppose possible—my hon. Friend the Member for Herts (Mr. Puller) will withdraw, or cease to persevere, with the Motion of which he has given notice.