upon realised property, and especially upon the agricultural interest, has been reduced by the amount of 25 per cent since I first drew the attention of the House to the subject; and there is no doubt, notwithstanding the somewhat disappointing return I have just placed before the House, that there are circumstances in operation at this moment which, if human judgment can lead us to a reasonable conclusion, must considerably affect the amount of pauperism in this country. I have no doubt the counteracting causes that, for a moment, have arrested the rapid diminution of the rates might be discovered, but I myself still believe there are circumstances and causes in operation that will progressively, and even materially, diminish the pauperism of the country. Well, then, Sir, I have to consider, under these circumstances, whether it will be expedient to deal with the sum that is raised by local taxation for the maintenance and relief of the poor. I have to recollect that, since I brought this subject forward, there has been such a diminution in the amount levied that four times the amount of the One establishment charges have been saved to the realised property of the country. I have to recollect that we are precluded from dealing with the establishment charges entirely, since that could not be effected without the transference of the entire patronage of many thousand offices to the central Government-an arrangement which in this country could not be tolerated. I have to recollect, also, with regard to that peculiar portion of the realised property of the country whose claim I urged, that since the period of 1849 the relative proportion between that property and the other realised property of the country has undergone a change, and that from both these causes the incidence of this taxation is less severe. Lastly, I do believe that all the influences in operation, notwithstanding the return I have quoted to the House, tend to the diminution, and the considerable diminution, of the burden in question. Well, Sir, as my means are limited lost in the great principle of the daythat of unrestricted competition. Now, I must put these facts before the House, because they are very significant, and till then I hope hon. Gentlemen will suspend their accents of triumph. I have shown you that there has been a diminution of poor-rates from 1848 to 1851 of nearly 25 per cent a very important point for me to consider as regards the expediency of dealing with those rates; but, though there has been, from 1848 to 1851, a diminution of nearly 400,000l. a year in the poor-rates, I have here the return for 1852; and I am sorry to say that that rate of diminution has not only ceased, but that very little diminution has taken place. The returns of the Poor Law Board, which I have in my hand, are very contradictory to the popular opinions that are held; and it is of the utmost importance that we should have correct ideas upon this subject, not only with reference to the condition of the people, but also with reference to that important question which is agitating the public mind-namely, as to the influence of emigration upon the consuming power of the country. would suppose, from what we are told, and from what we read every day, that an ablebodied pauper was not in existence, and that a time has arrived in which the common business of the country cannot be carried on, owing to the emigration which is taking place. Now, the fact is, that in that wonderful period of 1851-2, in which we heard all these stories, and when I, for one, was prepared to see certainly an equal diminution of pauperism in the country, there has been no such result. The amount of the rates for 1851 was 4,962,000l., and for 1852, 4,894,000l.; and I find, from the return for the half-year ending in Michaelmas, 1852, that the amount is 2,432,000l., which, being doubled, would give 4,864,000l. for the year; but you must remember that the half-year ending at Michaelmas is the mild half-year, and, therefore, I do not think we can believe that any sensible reduction of the pauperism of the country ought to looking, as I have anxiously looked, for be relied on. I will not, however, urge any means by which I might assist every sufargument upon it. I confess myself, not-fering class, every class which I think has withstanding this return, I believe that the a fair claim to the consideration of the country is in a most prosperous state, and I will not relinquish the belief that pauperism will yet be sensibly diminished; but it is my duty to place these details before the House. Still, the great fact remains that the charge for pauperism in this country House, in a manner which would contribute to the general welfare of the community-believing that the measures which, on the part of my Colleagues, I am about to propose to-night have that tendency, and that they will greatly assist those who, I think, have been subjected to a very se- | So long as there were two great parties in vere trial, and who, in this respect, I con- this country who questioned the principle ceive, are liable to a taxation which, on upon which our commercial code ought to principle, cannot be defended-I am not be established, it was impossible to obprepared to recommend any change in the tain any general adhesion to the principle present system of raising the local taxation upon which our financial policy ought to be of the country. constructed. So long as a man thought that his industry ought to be protected, he was prepared to endure a heavy burden of taxation artificially distributed. So long as a man thought that his industry should be free from all restriction, of course he demurred against the system which imposed restriction upon the financial arrangements of the country, and raised the prices of the articles which he consumed. It is obvious, generally speaking, that the doctrine of unrestricted competition is not consistent with restricted industry-in a word, if you decree that the community are to receive low prices for their produce, your policy ought to be one which will put an end; as soon as possible, to high taxes. Well, Sir, after the general election, and after the solemn verdict of the country, we had to consider the general system of our taxation, and to apply to it the principle of unrestricted competition. We had to ask ourselves what were the measures which it was best to recommend to Parliamentnow that this principle was formally and definitively established, what were the measures most consistent with that principle, and which would enable the community to encounter that competition which it must now, in every form and in every sense, be prepared to meet? Well, Sir, when we took that subject into consideration, giving it the utmost thought we could command, it appeared to us that we must arrive inevitably at this result-that we should best enable the people to engage in that competition to which they are now for ever destined by cheapening as much as possible that which sustains their lives. look, therefore, to articles that are of prime necessity, and if we find that those articles of prime necessity are subjected to some of the heaviest taxes in our tariff, then we say that these are arrangements inconsistent with the new system established, and the new principle of which we have approved. It is the boast of hon. Gentlemen opposite that they have given cheap bread to the community-but the principles upon which you have given cheap bread to the community are principles which ought to make you cheapen the sustenance of the community in every I have now, Sir, considered three instances of peculiar interests that have, in my opinion, suffered by recent legislation. I have placed before the House the general views of Her Majesty's Government with respect to those interests. I have offered, with regard to the shipping interest, measures which, so far as I could judge of the feelings of the House, were, 1 think, considered moderate but satisfactory.["Hear, hear!"] I mean moderate so far in their conception that they have not been framed with an ad captandum purpose; satisfactory, because I believe this House and the country will take them as a final settlement to that controversy. I have endeavoured, on the part of the Government, to view the claims of the sugar colonies in a just and fair spirit. I am sure that those who are connected with that interest must be satisfied that it would be quite impossible to propose a differential duty; that that claim could only have been urged by those who were not masters of the facts; and they must see, from the course taken on the part of the Government as to encouraging immigration to the Colonies, and permitting them to carry on the manufacturing processes without the restrictions which before existed-a boon which has been described to me by an eminent member of the West India body as equal itself to a differential duty of 1s. 6d. per cwt.-they must feel, when the Government have taken upon themselves the responsibility—for it is a grave responsibility of recommending that step, besides others to which I shall have to advert, having the same object in view, that there has been an anxious desire on our part to place them in as good a position as present circumstances and the temper of the public mind would permit. I believe, Sir, that the measures we have recommended with respect to the West India body will sensibly improve the condition of that interest. I shall not touch any further upon the subject of local taxation. I now approach the more important topic of viewing the taxation of this country under the new circumstances in which all parties and conditions of men have now agreed they are to be placed. We form; and I think I shall be able to show | authority in this House-one of very great malt tax was inevitable; and, Sir, I think on as follows: "But, if the importation of foreign barley be not permitted, the tendency of a reduced duty to increase the consumption of malt would be coun which would arise from the duty having been lowhigher in consequence of the new demand for it, ered; and thus the consequence of a reduction of duty would be, not such an increased consumption of malt as would keep the revenue up to its present amount, but a higher price of barley, and a certain loss of revenue. As, therefore, there is no probability of a reduced duty being followed by such an increased consumption of malt as would prevent a loss of revenue, so long as the importation of foreign barley is restricted, we are of opinion that it will be preferable to endeavour to check illicit malting by the enforcement of the Excise laws, however inadequate they may be to produce a complete remedy, rather than to try the if we deal in a small manner with this great labours we are indebted for some of the subject. The existing duty upon malt is most valuable documents in our Parlia2s. 74d., and 5 per cent on the bushel. mentary library. Now, these words are The consumption is increasing. In 1849 very interesting when we remember the it was 38,935,000 bushels; in 1850 it was circumstances under which they were 40,744,000; and in 1851 it went a little written. Having entered into a general back, and was 40,377,000 bushels. But, statement that the most effectual mode though increasing, there is no article of of suppressing illicit malting would be by consumption which has less proportionately a reduction of the duty on malt, he went increased, and the diminution of the consumption of which can, I think, be more clearly attributed to the large tax levied on it, and to the restrictions which that tax occasions. I know there are Gentle-teracted by the price of British barley becoming men who have endeavoured to maintain at times that the reason the consumption of malt has not increased to a greater extent is, that the taste of the country has been diverted to other sources of sustenance and excitement; but I think I could show to the House, by a reference to a few general statistics upon these subjects, that that is a position which cannot be maintained. Well, Sir, under these circumstances Her Majesty's Government think it their duty to recommend to the House that the malt tax should be considerably diminished-experiment of stopping it by a reduction of duty. that we should diminish by one-half the amount of the present duty on malt. The sum which we have to deal with is a sum which exceeds 5,000,000l. as regards the revenue, and we propose that we shall diminish the duty exactly by one-half; we propose that there should be paid an uniform duty of ls. 31d. and 5 per cent per bushel upon barley, and also upon every bushel of bere and bigg; we propose to terminate the restrictions and the difference in the duty which has been injuriously and improperly maintained between malt raised from barley and from bere and bigg; and we propose also to do away with the drawback in Scotland upon spirits produced from malt. That drawback has already been renounced by Ireland as unnecessary. It was recommended by the Commissioners on Excise Inquiry as one which should be "Nothing, in our opinion, can be more unwise than to reduce duties on articles which are fit terminated whenever any considerable resubjects of taxation, without at the same time duction took place in the duty upon malt; taking care to secure the most abundant supply and I think I shall have no difficulty in that is possible to be secured of the materials showing to the House, when we come to which are necessary for their production." points of detail, that this is a change which Well, you have done that. The circumought no longer to be postponed. Now, stances which he anticipated have ocallow me to read to the House the recom-curred, and now I ask you to adopt the mendation which was made, in the year measure which he recommended. 1831, I think, upon the subject of the malt duty, by a distinguished Member of this House, Sir Henry Parnell, who was at the head of the Royal Commission to inquire into the Excise, and to whose VOL. CXXIII. [THIRD SERIES.] be to reduce it one half." corn price of barley, arising from the direct effect of a If there were no factitious cause for elevating the duty on foreign barley, or from the indirect effect of duties on other kinds of foreign corn, we should not feel any hesitation in saying that the proper way of dealing with the malt duty would Those were the words of Sir Henry Parnell. Practically, he said that, if your laws were repealed, he recommended you to reduce your malt duty one half; that, too, is the opinion of a Gentleman as tender of the revenue as any Gentleman who ever spoke in this House. circumstances, which Sir Henry Parnell possibly did not contemplate, have occurred; you have repealed your corn laws, and I ask you now to sanction the recommendation made by Sir Henry Parnell at that time. "For," says he Those MR. CAYLEY: Is that the report of the Commissioners that you have quoted from? The CHANCELLOR OF THE EXCHEQUER: Yes; the report of the Com2 F missioners of Excise Inquiry, of which possessors of malt from the competition, Sir H. Parnell was the chairman. The so far as the one-half in the amount of the report of the Commissioners also recom- duty is concerned to which they will be mended terminating the drawback on spi- subjected, and for that stock in hand they rits made from malt in Scotland. That is will receive a drawback in proportion to at present 8d. per gallon; and, of course, the reduction of the duty. I do not know if there were a reduction of the duty by that this is the convenient moment at one-half, it would only be 4d. per gallon. which I should attempt to place before the But here is the report of the Committee on House the effect of these changes upon the Spirit Duties in Ireland : "That it is the opinion of this Committee that the repeal of the malt drawback in Ireland will not be prejudicial either to the trade in spirits, or to the revenue, in that country." It will probably be more October next, on which day the whole stock in hand throughout the country will be taken, and a drawback allowed to the holders of that stock proportionate in amount to the reduction of the duty. the revenue, convenient that at a subsequent part of my statement I should place the effect of those changes before the House. I will, then,.. once more, merely recapitulate, for the That was in 1842. In consequence of sake of clearness, what this change is. that, the drawback in Ireland was termi- We propose to reduce the duty on malt nated without a murmur. It has given one-half; we propose that there shall be no general satisfaction, and I am certain that difference between the duty on malt raised the repeal of the drawback in Scotland from barley and from bere and bigg. This will prove equally successful. There are will occasion some accession to the remany points in the report of the Commis- venue, though it is not for that object, but sioners of Excise Inquiry as regards malt in order to simplify the subject as much which are well worthy of the consideration as possible, that I recommend it to the of the House. They particularly dilate House. We propose to put an end to the on the length of credit which is given in drawback allowed in Scotland on spirits that trade. They show the vicious prin- raised from malt; and we propose that the ciple on which that system has been estab-reduction shall take place on the 10th of lished; and they recommend that the credit should be limited to the same duration which applies to all other exciseable articles. I confess I am not prepared to give unqualified adhesion to that recommendation. I think it is of the greatest importance that in all these changes the particular trades involved should be disturbed as little as possible; and, though I think that the principles laid down in that report are sound principles, and that ultimately we should look as much as possible in this country to diminish the system of long credits, which is not adapted to the principle on which our commerce is conducted at present, but which was the result, I think, of paper currency and war speculation-still, at the same time, I think it would not be wise unqualifiedly and entirely to adopt the recommendation of the Commissioners in this respect. We propose, then, that on the 10th of October next the malt duty shall be reduced onehalf. We have fixed on that period, of course, after due examination into the question when the change could take place with the least inconvenience to the trade, and, as we believe, with the most general benefit to the community, and the 10th of October is the day on which we have fixed. On that day we propose to take the stock on hand throughout the country, and of course we shall guard those who are then Well, Sir, following the principle which I have laid down, that in the present state of affairs we should consider our taxation mainly as it regards the great body of the consumers, believing that that policy will afford the most legitimate, the surest, and the most efficient means of relieving the industry of the country, I proceed now to another branch of the question. I have shown you that by the manner in which we propose to deal with the malt tax we benefit largely, as we believe, the consumer; but in doing so we think that incidentally-and that was only a secondary purpose-we are giving most efficient aid to the agricultural interest, far beyond what dealing with local taxation would give. Now, Sir, I come to another branch of the subject. I come to deal with an article as popular with the people as malt. as much a necessary of life, and subjected to a much heavier tax. I am about to recommend to the House to deal with the tea duties. Sir, I know the prejudices that exist among a certain class of persons on the subject of the tea duties; but having had occasion to look very much into this question, I have been amused in mark |