§ SIR HENRY WILLOUGHBYsaid, that he was one of those who did not feel inclined to dispute the amount of the surplus stated by the Chancellor of the Exchequer. He threw the entire responsibility, however, upon the right hon. Gentleman. He wished, however, to ask a question which arose out of the threatened disturbances in America. He wished to know, Whether, in consequence of recent events in America, any increase in the military force of this country would be required, and, if so, whether there would, on that ground, be any addition to the amount of the Military Estimates? The right hon. Gentleman would recollect that in February last year he made his financial statement to the House, estimating the expenditure at £70,000,000. Before the following August, however, he was obliged to come down to the House to impose new taxes to pay for the Chinese war, and finally was obliged to increase the National Debt by nearly £500,000. He thought the House ought to have a distinct answer—if the right hon. Gentleman could give one—as to whether the recent occurrences in America would cause any increase in our public expenditure? He wished, also, to put another question as to the claim of the Indian Government 1573 on the Executive at home, on account of the Chinese war. The connection between Indian and British finances was growing closer; and he understood that the demand of the Indian Government, on account of the China war, would be larger than the amount expected. He understood the right hon. Gentleman to assume that about £1,000,000 would cover the expenditure on account of the Chinese operations for the present year. He believed that a single demand of the Indian Government on that account would amount to £1,200,000, If that were the case, it was quite clear the right hon. Gentleman had not left sufficient margin for contingencies. The right hon. Gentleman had estimated the expenditure of the year at £69,900,000. The House ought clearly to understand that that would be the whole amount before it proceeded to take off any important duties. He would, therefore, ask if the Government had calculated on any increase in the estimated expenditure caused by the state of affairs in America, or by increased demands on the part of the Indian Government?
§ THE CHANCELLOR OF THE EXCHEQUERsaid, it was very true that in February, 1860, he estimated the expenditure of the country at £70,000,000, and in the following July he found it more likely to be £73,000,000 or £74,000,000. In the interval, however, between those two periods the war with China had broken out (Cries of "Oh, oh!") Yes, the war with China had broken out in the interval. At the first period provision was made to the extent of £2,500,000 to meet the expenses of the military expedition to China. At the next period provision was made for a considerable extension of the amount required for that expedition of which they knew nothing when he made his financial statement in February. That extension had taken place in India. He referred to that point for the purpose of saying that if anything should occur this year of an analogous character, if any great demands not at present foreseen by the Government in the financial arrangements of the country should arise, it would, of course, be their duty to pursue a similar line. If, however, the hon. Gentleman asked him whether the Government had foreseen anything of the kind, or had come to the conclusion that in consequence of the disputes in America there would be an increased expenditure, all he could say was that the 1574 Government had come to no such conclusion, and that he had no reason to make any change in the financial arrangements laid before the House. With regard to the charges due to the Indian government he was at a loss to understand the hon. Baronet's question; so far as he gathered from it, it amounted to this, whether the estimate which he had given to the House of the probable amount of payments in reference to the China war was made upon his official responsibility? The hon. Baronet said if it were so he would acquiesce in it. He (the Chancellor of the Exchequer) could only repeat what he had already stated to the House, that there was a peculiar difficulty in framing a precise estimate of the payments in the case of a war expenditure, when that war was not carried on exclusively through the agency of her Majesty's Government, or even of the Indian department at home, which might be properly taken for that purpose to be a part of her Majesty's Government. The accounts were settled in this country between Her Majesty's Government and the East Indian department. Large payments were made on account by the Government from the Exchequer to the Indian department, and nothing could be more fallacious than for the hon. Baronet to reply upon accounts which might have reached him from India, and which in all probability might refer to liabilities a large portion of which had been already discharged. In July last the House granted a Vote of Credit amounting to £3,800,000. The Government had certainly not endeavoured to throw any undue portion of charge upon the present financial year, but the fact that their demands only amounted to something over £3,000,000 might serve, as far as it went, to show that they formed an adequate and full estimate of the expenditure which had to be encountered. In proceeding to estimate as well as they could the residues of payment that were still outstanding, they had gone upon the same principles and been guided by the same views as they were in July last, when they estimated the Vote of Credit at £3,800,000. In such a case he did not much value his own opinion. The Chancellor of the Exchequer had a special responsibility devolving upon him respecting estimates of Revenue, but as to estimates of expenditure, and particularly of war expenditure in China, he could only bring a limited amount of discernment to bear upon it.
1575 So far, however, as they were cognizant of the particular liabilities of the country, some of them, which had been included in the estimate of £1,000,000, ought to be susceptible of reduction, and he had no reason whatever to suppose that there was any margin of uncertainty which would swell the charge, while the possible reductions of which he had spoken were likely, on the other hand, to bring it down. As compared with ordinary estimates, this was necessarily somewhat unsafe in its nature; but at the same time, according to all the evidence before him, it was a safe and a liberal estimate. As regarded the Vote of Credit, he could not say what amount of authority would be taken from the House within the margin of that limit. This would depend on circumstances with which the Government were not yet fully aware respecting the application of the outstanding sum; but the £1,000,000 in the financial statement was that which they estimated as the probable outgoing from the Exchequer within the financial year on account of the recent military operations in China and the occupation which was now going on.
§ Motion agreed to.