QUESTION. (Hansard, 18 April 1861)

§ THE CHANCELLOR OF THE EXCHEQUER

—Sir, I am afraid that it will be very difficult for me to give a full answer, to the last part especially, of the question of my hon. Friend, without entering into a discussion upon the whole nature of Votes of Credit, but I will endeavour at the same time, without perhaps taxing the patience of the House to that extent, to give an answer that bears, as far as I understand it, on the purpose he may probably have in view. Beginning at the commencement of the Question, what "proportion of the Vote of Credit taken for the expense of the Chinese war has been actually expended and paid out of the Exchequer?" The information on that point was settled by me generally on Monday, and is stated precisely in the balance-sheet of income and expenditure which was laid on the table this morning. So far, therefore, I need not trouble the House with any explanation. "What proportion is estimated to be still payable out of the balances in the Exchequer in respect of expenditure chargeable to that Vote?" The whole remaining portion of that Vote is still payable out of the balances in the Exchequer. There might have arisen here a very nice legal question. The language used by the Legislature in respect to Votes of Credit in the Appropriation Act has not been uniform. In the Act relating to Votes of Credit for the Russian war the language was obviously largo enough to carry on any Vote of Credit once given by the House from year to year until the whole sum had been exhausted, quite irrespective as to what particular charge might have been incurred. Under the Act of last year there may perhaps be a doubt as to the effect of the language, but I think the Vote of Credit that was 722 given by the House last year was not applicable in respect of any charge except a charge incurred during the last year. However, the distinction is immaterial, inasmuch, as there can be no doubt whatever that the charge incurred during the last year, although not a charge payable out of the Exchequer during the last year, will run even somewhat beyond the total amount of the Vote of Credit taken last year. Therefore no legal point arises, and I have no hesitation in answering that the entire balance of the Vote of Credit is not yet exhausted, and is payable out of the Exchequer in respect of the expenditure strictly chargeable to that Vote. The next part of the question, I think, falls to the ground, because that could only assume a particular character in case it was found that the whole of the Vote of last year was not applicable under the terms of the law. Then I come to the last part of the question, "why a further Vote of Credit to the amount of £1,000,000 is likely to be required, when there is an unexpended surplus, approaching £800,000, on the Vote taken last year?" As I said, I will endeavour to give a practical answer without entering at large into the subject. The view in which I think it most desirable that the House should consider the million of money which, so to speak, I have charged in the financial statement against the revenue of the year is this, that it is—as nearly as can be judged at the Treasury—about the amount which is likely to be required out of the Revenue of the year and, therefore, within the year, to meet the charge on account of the Chinese war. I may also say that that same million of money, together with the three-quarters of a million, in round numbers, still remaining available out of the Vote of last year, are likely, as far as we can form what I may call a conjecture rather than a judgment, about to cover the whole liability of the country in respect to what may be called the China war, together with future liability that is indirectly incidental to the China war, and that is, I am sorry to say, very heavy, an extraordinary charge that arises from the necessity of providing for the Indian pay and allowances to the British force in the occupation of China. So long as any portion of the Indian force is engaged in China the British force serving with them will be entitled to Indian pay and allowances, and the estimated expenses of that scale—that is to say the expense of the British portion of the forces—are extra 723 ordinary expenses arising out of the necessities of the year just commenced, in addition to the ordinary pay, and the charge is, I believe, over £400,000. These expenses may possibly be checked or brought to a close before the year expires. I think after what I have said, my hon. Friend may naturally say to me, and the question would arise out of what I stated, "Why, if you only expect to be called upon to pay a million of money between this time and the 31st of March, 1862—why request from us an authority, which you do on your own showing, which will enable you to pay a million and three quarters?" My answer to that would be, I am not sure that it is absolutely necessary for us to have the authority to pay a million and three-quarters. The nature of a Vote of Credit is very peculiar, and one of its incidents is that it will generally come to a final settlement in a year, subsequent to that in which it is granted; because by the terms in which the House of Commons votes any sum of money as a Vote of Credit it is not appropriated to any particular service, and perhaps the House will be surprised, and perhaps even my hon. Friend will be surprised, when I state that no expenditure has yet taken place, no final expenditure has taken place, under the China Vote of Credit of last year, unless, perhaps, £450,000, which was a settlement of a previous account with the Indian Government. Of all the grants for the China war no part is as yet finally settled. Large sums have been paid, but they have been paid on account, and the Vote of Credit cannot be finally settled, and no expenditure on account can be finally allowed, excepting in making up the army and navy accounts for the year. The accounts for the year are not made up until eight months after, or something within eight months after, the expiration of the year for the navy and twelve months for the army. It is only on the final making up of that account that you can ascertain how far the expenditure, including the China war, may have been in excess, and that excess is the measure of the degree in which we are authorized by law finally to apply and allot the Vote of Credit in aid of the regular and ordinary branches of Ways and Means. Therefore the sum, as I have said, which I have put in the statement which I submitted to the House, has been not so primary and mainly an estimate of the amount which the Revenue will be called upon to meet 724 on account of the China war within the financial year now commenced. It is also an estimate, as near as we can form an estimate, of what we believe and presume the ultimate liability of the country for expenditure incurred during the China war, the return of the troops home, together with the allowances for one year, and of extra charge for pay to the troops now serving in China. Having said thus much, I must not sit down without reminding the House that all Votes of Credit are from their nature most elastic—which I am afraid is only another way of saying, of a most uncertain character; and it is on the practical judgment of your officers that you can really rely in presenting any figures to the House with respect to them. I am bound to say that I have such confidence in the practical judgment and experience of your officers that I think the Vote of Credit of last year, and the Vote of Credit this year, will probably prove to be, within some short limit, well adapted for the purposes for which they were given; but they must not be taken as if they were estimates of an ordinary kind, being, on the contrary, according to the first intention of them, Votes taken with a margin, under extraordinary circumstances, and, therefore, not capable of being estimated beforehand with the same degree of precision.