THE BUDGET.

Lyttelton Times, Volume X, Issue 599, 31 July 1858, Page 4

THE BUDGET.

In the House of Commons on "MmwW +l,„ (19th April, in Committee of \V*V™J & Mr. Fitzroy in the chair, ~ &nd Means'! The Chancellor „f the Exchequer rose to •bring- forward the financial statement for the -current year. ; Sir.cc the ]»st budget'had been -presented by-his predecessor in otßce a ;n-eit .iaud'dhsasfcrous change had supervened^compro-

mising alike the commercial prosperity of the country and the well-being of the general mass of the community. The .financial-effect of the late crisis had been to produce upon the threequarters of a year ending December 31, a decrease of £766,000 upon the produce of the Customs, Excise, and Stamps—a result' which had, however, been transformed during the three months that had since elapsed, to'an increase of £1,100,000 upon the twelve months which terminated on the Ist instant. The Chancellor of the Exchequer then proceeded to cite returns showing the alternations of our export and import trade, of shipping, home manufacture, and other teste bf national wealth and j industry. Observing that confidence was returning and capital had become abundant and cheap, the right lion, member professed his opinion that some time must elapse before speculative enterprise, from which the Exchequer profited so largely, would resume its former activity. The Finance Minister then recapitulated the amount, and explained the changes of the various items of charge which were estimated to accrue during the current twelvemonth. For debt, funded and unfunded, the amount required would be £28,400,000, about £150,000 having been struck off this head of expense through the redemption of £2,000,000 Exchequer Bonds, the operations of the Commissioners of the Sinking Fund, and some reduction in the interest on Exchequer Bills. The permanent charges .on - the Consolidated Fund were estimated at £1,900,000 showing an increase of about £170,000, arising from the very liberal allowances granted by Parliament to the proctors and officials of the Ecclesiastical Courts under the act passed last session. For the army, the revised estimates already presented showed an outlayof £11,750,000; and for the navy of £9,560,000. On account of the miscellaneous civil services lie expected to incur a charge of about £7,000,000, being £400,000 less than last year; and for the revenue departments, £4-,700,000. These items presented an aggregate of ordinary expenditure of £63,610,000: but there was in addition £2,000,000 of Exchequer Bonds falling due to be paid off next month, and £1,500,000 on account of the war sinking fund. With this extraordinary charge the total outlay of the year ieached an amount of £67,110,000. Passing on to the revenue side of the account, the Chancellor of the Exchepuer proceeded to state, with various explanations, the expected produce of every branch of income. The Customs duties had been estimated by his predecessors to bring in -£22,350,000: they had netted in reality to the 'Exchequer £23,109,000 ; and he hoped to obtain from them £23.400,000.during the current year. From the Excise £17,000,000 had been anticipated, and £17,825,000 really obtained in the past year. His estimate for the present twelvemonth was £18,100,000. From Stamps, which had brought in £7,416,000 during 1857-S, he expected to gain £7,580,000; from Land and Assessed Taxes, £3,200,000, being about £48,000 in excess of the last year's product; ' and from the Income and Property Tax, which had just fallen to sd. in the pound, £6,100,000. The Post Office revenue he set down at £3,200,000; the Crown Lands at £270,000-; and miscellaneous receipts at £1,300,000. The total revenue from all sources amouted to £63,1-20,000, leaving a deficiency, as compared with the expenditure, of £3,990,000. The deficit he divided into two heads: one, amounting to £3.500,000, arising from the proposed repayment of debt; the other of about half a million, from reduced taxation. On the first point, the Chancellor of the Exchequer entered somewhat at large into-the question of the sinking fund, commenting upon the absurdity and extravagance of attempting to pay off debt when there was no surplus revenue disposable for that purpose, and stating as the result of his computations that he should propose to rescind, or at any rate postpone, any further payments on account of the war sinking-fund. This would retrench'a million and half from the charges of the year, and leave only two millions and a half of deficiency to be met. Respecting the two millions of Exchequer Bonds, he intended to maintain the principle of liquidation, but suggested that the actual payment might be postponed for the present, provided such arrangements were made as would ensure their being ultimately cancelled. The right honorable member then adverted to the second source of deficit, that, namely,- from the remission of taxes. The chief reduction had. taken place hi the property and income tax. The imposition of-this tax had excited innumerable controversies; endless complaints were urged against its injustice, which many vain attempts had been made to assuage, and at length, in 1853,, a scheme had been adopted by Parliament for the gradual diminution and ultimate extinction of the impost at the end of a certain period. The war has since changed the circumstances of the country, both temporarily and permanently, by adding considerably to the public debt and expenditure. Fully admitting ..-.P^Y..er v tl.jeless, that an income-tax ought not. to be reckoned among the permanent sources of a regular income, he observed that even in the face of a deficit, the Government did not intend to suggest any increase or snspension'in the progressive diminution of this impost. There remained, therefore, a deficiency of £500,000 still to be met, and this object could not be accomplished by a retrenchment of expenditure. The present ministry had cut down the estimates by £800,000, and further remissions could not be made in heat and haste, but must follow from a change in the policy of the country and tlie gradual accomplishment of economical reforms. To obtain the required income, he proposed to equalise tlie duties on Irish and British spirits, abolishing the only remaining differential duty still existing in the Sister Isle. From

! this source, "he anticipated a gain of at least | half a million, thus extinguishing; the deficit. It was, he thought, still prudent to establish 'a surplus of revenue, on which account he thought a very moderate provision necessary^ since large sums would become available for the year through repayments from the East India Company, the Sardinian Government, and of moneys advanced for public works. The onlynew tax, therefore, which he should suggest was a stamp duty of one penny on bankers' cheques, from which he hoped to obtain at least £300,000. Having thus more than provided for the wants of the present year, the Chancellor of the Exchequer sketched the probable condition of national finances in ensuing years, expressing his belief that if commercial prosperity -endured, if some retrenchments were effected, and no disaster occurred, the Exchequer would be able, in 1859, to meet all its engagements, including the payment of Exchequer Bonds, and that in 1860 the long-expected extinction of the Income-Tax might be happily corisumated. The two millions of bonds falling due this year he pi-oposed to leave to be paid off in 1862 and 1863, one million being cancelled' in each of those years. The resolution for increasing the duties oh spirits manufactured in Ireland to the same amount as the duties paid on spirits made in England and Scotland was then put from the chair.

A long discussion ensued, and several honorable gentlemen having addressed the House, the resolution was agreed to.