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its currency; and a cautious politieian might have reasoned, that with the cause the effect would necessarily cease. The banking system and the prosperity of that country have grown up together, and are so entwined, as to be inseparable. Since its commercial transactions have greatly increased, so much greater need has the country of that currency, which has been truly naturalized to it, and the place of which it could not supply, but by some inconceivable effort. Mr Tierney, with astonishing littleness of thought, alluded to the wealth which was imported into Scotland by those of its natives who had realized fortunes in the East Indies. He might have allowed that Scotland should have some chance of keeping pace

with England in riches; and allowing that, he might also have allowed that natives of England, as well as of Scotland, have realized fortunes in the East Indies; and that all the wealth imported into Scotland from that country, is as nothing, compared with the wealth derived by England from the East India Company's trade, of which the port of London has the monopoly. He might also have reflected, that any little gold which Scotland may attract within its territory, must be exported from it to pay its taxes, a very small proportion of which only is expended within it, the rest being expended in England and Ireland; and to pay the rents of its absentee landed proprie tors, who reside and expend their rents in England.

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The Budget-Management of the Public Debt-Funding of Exchequer Bills -Public Balances at the Bank-State of the Nation.

THE state of our finances, interest ing at all times, had become more so from the recent and still existing embarrassments in trade and commerce. As the revenue is an indicator of the actual condition of the bulk of the people, there was an eagerness to know, from the exposé to be made by the Chancellor of the Exchequer, whether, in the course of the year, their comforts had been greatly encroached upon, or the stamina of the national prosperity seriously impaired; and what, in the opinion of government, were the actual prospects of the country. But, notwithstanding all that eagerness, the subjects immediately connected with finance underwent, this session, comparatively little discussion, the attention of Parlia ment having been almost entirely engrossed by the measures brought for ward by Ministers for rectifying the cur rency, and relieving the public distress,

On Monday, March, 13, the House of Commons having resolved itself into a committee of ways and means, the Chancellor of Exchequer spoke as follows:

Although the circumstances under which we are now placed, differ in some material respects from those which

existed at the corresponding period of the last year, there is nothing to create either alarm or despondency. In the course of the discussions which have taken place with regard to the com mercial distress of the country, there has been a great deal of very unnecessary contest between those who are sneeringly denominated philosophers, and those who designate themselves by the more humble title of practical men. I

call it " unnecessary contest," because I consider it to be the bounden duty of the legislature to endeavour at all times to render available the sound reasoning and theory of one class, by applying to them the practical experience of the other. If those who have to prepare their minds for the consideration of subjects of this nature, are to be told that books must be thrown aside, and elementary reasoning re jected, I know not at what fountain they are to drink, if they are to be dri ven from those springs where science and knowledge are the presiding dei ties. And, sir, when we find that in every class of the community knowledge has extended, and is extending itself to a degree, which, but half a cen tury ago, would have been deemed impossible,—are we to be behind-hand in

availing ourselves of the increasing lights of human intelligence? Is it not, on the contrary, our duty to struggle to be foremost in the race? I am aware, that there are persons who think this general diffusion of knowledge the misfortune of the age; but, for my own part, I confess that I cannot conceive how that mind can be constituted which contemplates the progress of human knowledge with an eye of fear. On me it produces an impression diametrically the reverse. Before I can satisfactorily proceed to explain the view which government takes of what it is fitting to do under existing circumstances, I ought to recall the attention of the committee to the course which has been pursued with respect to our financial system during the last two or three years. When, in 1823, it first became my duty to submit to the House a view of our finances, I ventured to assume that, in the course of that year, a certain amount of revenue would be realized; and allow me to ask,-What was the result? In the course of that session, we repealed taxes to the amount of about 3,200,000l.; of that sum I calculated that about a million and a half would be lost to the revenue in the course of 1823; so that, in point of fact, my original estimate would have been borne out, if the receipts had been 1,500,000l. less than 52,200,000l. Now, what was the result? Why, that the actual revenue, after sustaining the loss that I have mentioned, amounted to 52,017,0007.; being less by 183,0007. only than my first estimate; and exceeding, by 1,318,000l., what would have been sufficient to realize my anticipations, after the reduction of taxes had been adopted. In the year 1824, I estimated the probable produce of the revenue at 51,265,000l. In the course of that session, however, taxes were repealed to a very considerable amount; and I calculated that the loss which the revenue would immediately sustain in

consequence, would be 630,000l. But what was the fact? The actual receipts of the year, notwithstanding, were considerably beyond the original estimate which I had formed: for, the estimate being 51,265,000l., the actual produce was 52,562,000l. Again, in 1825, I assumed that the revenue derived from the same sources would be 51,975,000. From the repeal of taxes, subsequently enacted, I expected that in the course of that year the loss upon that assumed amount would be about 650,000l. Yet, the actual receipt was 52,259,000l.; or, 284,000l. above my original estimate. It thus appears, that in those three years the actual receipts exceeded the estimates by the sum of 1,398,000Z.; notwithstanding the concomitant repeal of no less than 8,000,000l. of taxes. I have already stated, that in the course of the three years to which I have been alluding, taxes to the amount of 8,000,000l. were repealed. But I would request the committee to go back with me to 1816, when parliament was enabled to pursue something like a systematic diminution of our burdens. It has been argued that the reduction in the burdens of the people, which has been made since the conclusion of the war, is not worth speaking of; and not more than sufficient to balance the difference which has taken place in the value of our currency. It has also been maintained, that it is impossible for us to return to a more sound currency unless his Majesty's ministers are prepared decidedly and essentially to curtail the whole expenditure of the empire at once. I consider these two propositions to be wholly unfounded. Adverting, in the first place, to the reduction which has taken place since 1816, I will state to the committee the precise process of the reduction which originated at that period. In 1816 (the first year in which any reduction of taxation took place) the property tax was repealed, the annual amount of

total relief in 1823, therefore, was 3,200,000l. In 1824, the following duties, to the following amouut, were diminished: viz on rum, 150,000l.; coals, 200,0007.; law stamps, 200,000%; wool, 350,000/.; silk, 527,000l.; union duties, from 1822, 300,0007.; making a total of 1,727,000/.-The total repeal in 1825, was no less than 3,146,000%; and it was produced in the following manner :-by the relinquishment of the remainder of the salt duty, about 200,000l.; of the duty on hemp, 100,000l.; on coffee and cocoa, 150,000; on wine, 900,000l.; on British spirits and rum, 1,250,000l.; on cyder, 20,000l.; on assessed taxes, 276,0007.; and, finally, on customs, in various minor articles of commerce, 250,000l.— Thus, sir, it appears that the grand total of taxes repealed from 1816 to 1825, amounts to the sum of 30,712,0007.; from this, however, must be deducted the sum of 3,190,000l., being the amount of taxes imposed in 1819. Now, sir, I say with confidence, that the repeal of 27,522,000l. of taxes, is a substantial and important relief to the country; and that it is impossible for any man in his senses to argue, that this large remission of duties has not mainly con

which was no less than 14,320,000l. In the same year, the war malt duty of 2,790,000l. was abandoned; and further relief was afforded, in the diminution of war-customs, duties on tonnage, and coasting duties, to the extent of 828,000l. To these are to be added 35,000l. arising from a small reduction of the assessed taxes in Ireland, and 315,000l. from the diminution of the duty on malt and spirits in the same country. The total amount of taxation thus repealed in 1816, was 18,288,000l. In 1817, partial relief, under the heads of shopwindows, husbandry, horses, &c. was afforded, to the extent of 280,000l. In 1818, various assessed taxes were reduced in Ireland, to the amount of 236,000l. In 1819, the policy pursued by parliament was of a different character; and a very considerable addition, to the amount of 3,190,000l. was made to the taxation of the country. In 1820, no alteration whatever took place. In 1821, the repeal of the agricultural horse tax lessened the burdens of the farming class of the people by 480,000l. In 1823, the duty upon malt was reduced one shilling a-bushel, and the public were relieved thereby to the amount of 1,400,000l. Nearly the whole of the impost upon salt was also re-tributed to that increased consumption moved, beinga reduction of 1,290,000l.; there was likewise a reduction of half the duty upon leather, 300,000l. the tonnage duty, 160,000%.; and the tax upon hearths and windows in Ireland, 200,000Z.;—so that the total amount of taxes repealed in the year 1822 was 3,355,000l. In 1823, various assessed taxes in England were repealed, to the amount of 2,250,000l.; whilst the relinquishment of the whole of them in Ireland, saved the inhabitants of that country the payment of 100,000l. Added to this, was a reduction of the duties on spirits, both in Ireland and in Scotland, to the extent of 800,000l.; and a reduction of 50,000%. in several minor branches of the customs. The

which has itself augmented the revenue. It is very true, that in 1816, if the rates of exchange with foreign countries be taken as the criterion, the value of the currency was depreciated, perhaps to the extent of 5 per cent; so that the whole reduction of taxes which, as I have stated, took place in that year, cannot perhaps be looked upon as a clear reduction. If the depreciation were 5 per cent, then, upon the actual amount of taxation in the year in which it occurred, namely 61,000,000, that portion would amount to about 3,000,000l.; and if we deduct this 3,000,000l. from the 27,552,000l. of taxes remitted, it will leave 24,552,000l. as the actual reduction of the burdens

of the people, since 1816. If we de duct the 24,000,000l. from 58,000,000l. (which would have been the amount of the revenue, after deducting the sum of 3,000,000l.,) the result would leave only 34,000,000l. as the produce of the revenue; but the actual receipts of 1825, notwithstanding all the diminutions, were not less than 52,000,000l. And how have the 18,000,000l. the difference between the two sums, been obtained?—solely from the greater means which the people have possessed of consuming the various articles upon which taxes are levied. I should like now to ask, whether nothing has been done, either by his Majesty's government, or by the legislature. I declare most sincerely, that if there be anything uppermost in my mind in the consideration of these matters, it is an earnest desire to lay aside all thoughts of mere official interest and patronage. Whilst we have been decreasing the pressure of taxation, to the amount of 27,522,000l. since 1816, and of 8,000,000l. since 1823, we have not been inattentive to the permanent burdens of the kingdom. On the 5th January, 1823, the public funded debt amounted to 796,530,000Z.; on the 5th January, 1826, it amounted only to 778,128,000l.; being a reduction in the three years of 18,402,0007.; which is at the rate of nearly 6,134,000l. per annum. On the 5th January, 1823, the unfunded debt was 26,221,0007.; on the 5th January, 1826, it was 31,703,000l. being a reduction of nearly 4,578,000l. The total charge (including the charge for management) on the 5th Jan. 1823, was 28,123,0007.; the total charge of the unredeemed funded debt, on the 5th January, 1826, was 27,117,000l.; being a reduction on the charge of the funded debt of 1,006,000l. The interest on Exchequer Bills, during the same period, was reduced from 1,100,0007. to 820,000l.; being a reduction of 280,000l. The total charge of the two descriptions of

debt was, on the 5th January, 1823, 29,286,000l.; on the 5th Jan. 1826, only 27,946,000l.; being a reduction of 1,340,000%. in the annual charge of the whole debt, in the course of three years. There is another part of our expenditure, against which I have al-* ways felt inclined to wage the most unrelenting warfare; I mean the expense attending the collection of the revenue. In 1818 the expense of collecting the taxes of the United Kingdom was 4,353,0007.; in 1825 it was reduced to 3,832,0007.; being a diminution of no less than half a million. This was a great deal to do in the time. Nor, sir, let it be supposed that this was a very easy task. We have had many strong prejudices, many powerful interests, many deep-rooted habits, to contend with. I think I cannot give a better proof of the sort of feeling which we have had to encounter, than by adverting to what has been recently published to the world in the northern part of this island. It seems that the extinction of the two independent Boards of Customs and Excise in Scotland (and the same course has been pursued in Ireland) and their amalgamation with the central Boards in England, are to be considered by every true Scotchman as derogatory to his national dignity, offensive to his national pride, and subversive-good God! of what ?-subversive of his prescriptive rights? When Antony, in the beautiful speech which Shakspeare puts into his mouth over the dead body of Caesar, exclaims

"what a fall was there, my countrymen ! Then you and I and all of us fell down, And bloody treason flourished over us". the appeal was not more vehement, the passions of his auditors were not more keenly excited, than the appeal which is now made, and the fire which is now kindled, against the unfortunate author of the woful tragedy which terminated the existence of two insignificant fiscal

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