§ SIR STAFFORD NORTHCOTEsaid, he rose to ask Mr. Chancellor of the Exchequer, Whether he can explain the discrepancy which appears to exist between the increase in the quantity of paper manufactured, and in the amount of duty received in 1860, as compared with 1859?
§ THE CHANCELLOR OF THE EXCHEQUERSir, the explanation is one which I could easily have given yesterday if I had had the paper in my hand at the time the question was put to me. It is very simple. In fact, both accounts are perfectly correct. The one statement refers to the paper manufactured, and on which duty was charged; the other to the amount of duty received. By the Excise system the year is divided into eight rounds, and the paper duty charged on each round is collected in the following round. Consequently it follows that when a Return is called for limited to the period between two given dates, the Return includes the duty charged upon seven rounds made in that year, and one round made in the year before; while as respects the weight it represents the actual quantity manufactured within the year. The quantity in each round depends on a variety of circumstances that cannot always be traced; but in the present instance the last round of the last financial year derived a considerable increase from the fact that it was compared with a round in the year 1859–60, during which the repeal of the paper duty had been commenced, although the arrangements as to the drawback had not been made. Until those arrangements had been made there was a considerable stagnation in the trade; and that I apprehend is substantially the cause of the considerable difference between these two rounds.