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Leader (1850-1860), 13th May 1854, Edition 1 of 1, Page 434

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      A still tfiore important step for the courteous itifling of an aristocratic abortion , is the reference > f Lord Campbell's Bill for preventing unauthoi * ed communications with foreign states to a select committee of the Lords . Everybody perceives that the bill would , or might , interfere with loan contractors , with our Catholic subjects ; and

      even with Lord CfcrapbeU , who went to instruct the Pope in the right conduct of Ca € holic ttfiairs in this country . But the peseta did not like to reject a bill brought in by the Lord Chief Justice of England , so th ^ r refer it to « select conaiittee ; as they baptise royial infants ' on the mere servile presumption of breathing , in order to lay them in state .

      The elections that have been taking place about the country create some degree of interest in Hhe places , but really effect no change in Parliament . Idchfield acquires a "thorough reformer" in I ^ ord Waterpark , but nobody of course expects that he will introduce the . People ' s Charter . Flint secures 6 W JA& 0 . Mdstyti ibr another Lloyd

      Mostyn ; the former Lloyd Mostyn having gone ujr to the Btbuse oifiPeefS fit lieu of a previous Iiloyd Mostyn Who lura folkived ancestral Lloyd Mpstyna to ifafe depose ttf th&t respectable family . Hastings ra fales iii to . l ^ orth , and Devonport BaVcnosen Suf Erskine Perry . But the character of legislation wilL not be . altered by these accessions to our CoBunons .

      The Oxford BiU underwent another discussion pk ^ nrgd ^ . V . ' " $ *?¦ only notable circumstance is the amendment carried by Sir William Heatbcote ^^ ic ^ rcQ ^| p tiii e ofjginalprovisions the resuscitated Jp ^ 3 y ^ t 0 * vQ >^^ woira . hereafter as C © n . gregationvas to consist of the iPubfic Tutors and certain othe drojOUtgiate and tTnJveraity officers named in t 3 * e schedule . It has now been decided that it sbikll consist of all resident xaembere of Convocation . This , bill at once admits the 4 arge and

      impprtant class of private tutors , who are , in point of feet , tile real teachers of the university—the Collegiate chaplains , who may be said to represent the eleemoiiynajy interest—and other persons who irould otherwise ! nave been excluded . The alteration is ft real improvement , in so far as Congregation , instead of being a mere intellectual aristocracy , -will fairly represent all classes and interests in the University , and mil thereby strengthen , the liberal ^ elements in the new Hebdomadal Council .

      Mr . Liddell , of St . Paul ' s , Knightsbridge , has taken , his stand . He will not give up his church furniture taor alter his church services , unless compelled by law to do so . He believes himself to be in the right ; he is fervid in his belief—" but if the law courts say he is wrong then—will he take the dictum of law courts or the dictum of the Church of England P It remains to be seen whether others are prepared ' to take their stand , find what is to come of these internecine wars in Belgravia . _

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      terest receivable during the twelve months of their currency . Kovr a man who buys an Exchequer-bill knows that his interest is safe , that his principal will be payable on a give !) day , and that the measure of the loss is itt the premium ; if it be five or ten shillings , that Is the atnovmt of his risk . While it is running irp , he nrmy be in good humour ; but that state oC things cannot last , for the public are under no obligation to repay the premium , witfc winch , in p « iflt of fact , they feftire tiotbing what *** to do . AllowingIhem to fi d ** at a premium * # 60 * . Or 80 s . mefcns th * % they shall 4 wt be redeemed -at Jfflj for it twnldnotfcea safe ( Miration for the countty to

      redtetjtn 8 , O « 0 jOOO / . or 9 j 0 QO , 00 G £ at one time , l » d ParlkWient ^ tFOia never W » diire the redeml » ti ** l ** annti secttr ^ tes bearmg ^ ftjfer c « ft % . by tripling ^ teft iaterest , and raising it to 5 or 6 per cent . The consequence is that when Exchequer-bills were out th « y were aHowed to rem * m out , and at % ttoae « f afflBeatty a matted operation became necewaTy to reii « ve ttae market of the burden . Thus a great addition became necessary to the capital of the national debt . In the four years respectively , 1819 , 1821 , 1826 , and 1830 , sums of 2 « , 6 dd , 0 ( k > £ ., % 000 , 000 / L , 8 , 000 , 000 / . and 3 , 000 , 000 / . were funded , ttt interest ranging from 5 / . 58 * 3 d . per cent , to 4 = 1 19 s . per cent . ? and there

      were only two occasions since the -peace , in 1839 and in 1841 , on which by funding ti permanent burden had not been ^ entailed of 41 . or 51 . for every 100 / . of Exchequer-bills . On no instance has the unfunded debt been reduced , except when , the public credit was low , and the price af the rands was below 90 ; the consequence was that 9 / . in Exchequer-bills was never funded without incurring at least 10 ? . and sometimes 11 / 1 or 12 i of debt . He now came to ^ February , 1853 , when the amount of Exchequerbilfa fa currency was 17 , 740 , 000 / ., the interest upon one portion 45 s . per annum , on another& 7 s . ; the premium upon the Mils itt ^ the latter case being not and it had been

      less than 55 s ^ shortly before considerably higher . Upon the 15 th of February the ^ Exdhequer-trftts were advertised for «« chaiige , the amettnt of * ew bills to beat itttertfct at * h «* a * eof id . per day ; on the 18 th , the premium had sunk to only 15 s . In March , the holders had the option of ge ' ttiftg their mohey ; not one person availed himself Ht that option . As the year 'Wfri-tf am , the condition of fouls ; grator »« y altered , simd ^ MiMCduBt" appeared for tfee first time in the quotations < ontne . 6 th of May , when the bills were quoted at Is . discount ; on the previous day Government had been obliged to pay 2 ft . pipemtum fop a purchase , . and ft " * a * not tofta the

      the interest allowed upon Deficiency-bills beyond the usual amount , and the profit which tbe Bank has in the use of the deposits , the rate of interest paid by Government , which is about literally three per cent . is vkt * lflfy * il ] aivalent to four or five per cent , ou tbe enttffe transaction . The " Deficiency-bills , " as life 3 tad fHfeviously explained , represent no real " Defiefettcy , " but are only an item set down in our mystifying fcyttem of public accounts to represent , at tile , feegktsing of a quarter , the gross total of aocomtittCUtioti which it is possible that the GoverntBQfSt&mlfr require while the receipts from the taxes are OQralig . in . Mt * Qhai-txme recapitulated how he stood the

      on Hi t ) T _ n * £ k ; " there was on the 6 th of March an ifciccess . in &e testimatfci of 4 , * 07 , 000 / ., and in this 4 , 307 , 600 / . was included a sum of 1 , 250 , 000 / . taken for extraordinary expenses of the war ; the ordinary Terenue © f the country was unequal by tlie sum of 2 , 840 , < 000 & to meeting the charge that had been incurred by ttxe estimates , whereas if there had been no increasa in the estimates , I should in lieu of a deficiency have had a surplus of 1 , 666 , 000 / . " Government then asked half the , year ' s income-tax , — 3 , 307 , 000 / . ; which raised the revenue to 56 , 656 , 000 / . aod secured a surplus of 467 , 000 / . The supplemental navy , ordnance , and army estimates , wliich he

      advanced last week ,, mate -a total of 6 , 000 , 000 / . ; and allowing , as he had tfone in March last , a further sum for unforeseen expenditure , which he now took a 6 850 , 000 / . 5 he had to provide a total of 6 , 850 , 000 / . To meet this additional exp «»« KtuTe , Mr . Gladstone proposed th « following taxes t- ^^ Hrst , the continuance of the income-tax for the second half of the ^ Swancjal year , and its permanent duration during the war . This would toe embodied In a separate hill . Secondly , a modification of the * iigar duQes , sojas to get rid of the anomaly which is now represented as a grievance by the sugar refiners , from tfee ^ omt effect of the duty and tbe drawback . The scale of duties , as it

      is proposed for all sugars , irrespective of origin , will be , then , —if "beneath brown clayed , lls . per cwt . ; if equal to brown , but not quite equal to -white clayed , 12 s . ; if equal to white clayed , and not equal to refined , 14 s . ; if refined , 16 s . the cwt . The corresponding rate upon molasses will be 4 s . 6 d . He proposed to Tepeat the increase -of Is . on spirits in Scotland , — - raising the duty to 5 s . Sd . per g » Uon . ; and 40 repeat the augmentation of 8 d . iulreland . And he proposed to raise itie tax upontaAlt , now a little more than Ss . "Bia . p e * bushel , to 4 s . « Wb ask for a pertnCLikent annual Inrovisiom for taxation—I tsette word ' permanent'with reference to the duration of war—a permanent or fixed provision of 6 , 8 ^ 0 , 0001

      But out of that 6 , 850 , 000 / . we cannot expect to redelve in Ga-sb , before tbe 5 th of April , 1855 , mote than sometlu ^ g like i ; he following « ums : —Incometax , 220 . 00 C / . ; spirits , 400 , 000 / . ; sugar , 620 , 000 / . ; ma . lt , 1 , 600 , 000 / . ; making in all 2 , 840 , 000 / ., which will be the greatest 'Amount , not of the taxes we are now asking for , but which we c « n expect to have actually at our command before the 5 th . of next April . Deducting that 2 , 840 , 000 / . from the sum of M 50 , 000 / ., it will explain that on the 5 th of April , 1855 , we on £ ht to expoct to be in am arrear of m less than 4 , 010 , 000 / . That 4 , 010 , 000 / . is the sum which Government ought to have ample means of raising , and even , perhaps , something more . "

      Mr . Gladstone explained his position in regard to the Exchequer-bonds . He reminded the Bouse that he did not , on the 6 th March , pledge himself to take no loan ; and he explained that on tbe 2 let of April he did not ask for a loan . The amount of 6 , 000 , 000 / ., which he proposed to take on Exchequerbonds , was , in fact , not a loan ; but only the means of obtaining the interim command of funds . Of that amount , by the 2 nd of May , only 1 , 113 , 0002 . tenders were sent in ; they were either the sealed price , or within a very small fraction of it . It was aot the price therefore that occasioned the slowness . The cause was clear . " The practice obtaining in former

      wars has been , not to make any effort to meet even the first charges from the annual resources of the country ; but it has be « n to borrow largely on stooks , and the fortunes made on those stocks have been so gigantic that the opening of a war is not less distinguished for the opportunities it affords to contractors than for the opportunities it affords to horoes . " A t the present the amount of subscription upon bonds A is a trifle below 2 , 000 , 000 / . " We propose to confirm the contracts entered into with respect to bonds A , and to issue , at the discretion of the Lords of the Treasury , a second series of bonds fox another 2 , 000 , 000 / . either now or at a future clay .

      We also propose to take power to issue 2 , 000 , 000 / . of Exchequer-bills , and as many more Exchequer-bills as shall not t > e taken of the 4 , 000 , 000 / . bonds . At first sight this would appear to give us a command of ( 5 , 000 , 000 / . of money . It does not , however , givo us quite so much , because a sum amounting to some hundred thousand pounds—500 , 000 / ., to my certain knowledge—of the tenders sent in , has been an exchange of Kjcchcquer-lills , and is not , therefore , an effbetive addition to cash . Tbe effective addition to cash is 5 , 500 , 000 / ., and that may be mado applicable to services aipproved l > y 1 ' orliuniont or to the liquidation of pul > lic securities . "

      5 thof August that they were able to effect « , single purchase at a discount , and then they got them at a discount of Is . On the 20 th of September thel > iUs Wre-at 9 s-. discount , and in October the interest was raised at ad . a « lay . Thus he had disposed Of the questions « s to the impropriety of reducing the rate of interest . It was next said trlat he had raised it unduly ; btit is 2 d . a day or 3 per cetft . per annum ¦ & t&te unduly high . That is , is it out of proportion with ether transactions ? Is it so as compared with Exchequer-bills ? The average of all the years since the peace has been 3 / . 5 a . per cent . Is it out of proportion with the -rate of discount at the Bank ?—now

      at 6 per cent . Is It with similar securities , the bom du tresor in -France ?—the interest on which in April , 1853 , was 2 J per cent ., and in April , 1854 , 5 per cent . At Hie present rate * however , it lias been pmctia&ible to sell 1 , 100 , 000 / . ot 3 , 200 , 000 ? . M > f these Exchequer-bills within the last few weeks , and to add them to the stock in the market , without bringing Exchequer-bills to a discount . Mr . Oladstotte reviewed the objections against his conversion scheme , man ? of them very extravagant , —such as Mr . Disraeli ' s idea that lie had proposed to convert the whole 500 , 000 , 000 / . of consolidated funds ; and he showed Dhat "he himself had been the only

      prophet of the © nly valid objection to the schemenamely , that the South-Sea stockholders might not assent , and might lead to the withdrawal of the puflblic balances to a greater extent than was convenient in time of war . By citing the exaot figures , he showed that he had not attempted the conversion or the reduction of interest while there was a drain of bullion on the Bank . On the contrary , although bullion had been higher , —it was 21 , 870 , 000 / . in July 1852 , —it had wlso been lower , 17 , 652 , 000 / . in February , 1853 5 and standing at 18 , 816 , 000 / . on the 8 th of April , it was actually rising . The demand for gold coin in Australia , the difference of exchanges in East India and China , appeared to have been

      PAItf , IA ; M 3 B ] SrT OF THE WEEK . TJWb week is distinguished ty the presentation of flhe Wab Bcdget , as last week was by the voting of tfod Supplemental Estimates . It was ob Monday n-ight that Mr . Gladstone begun the promised financial statement , introducing Mb supplemental budget -with a vindication of his own conduct and policy . He repelled the Opposition suggestion , that Government , and especially tte Finance Minister , should be leniently treated in war time . He reminded the House tha ^ 4 t-vwas itself responsible fox the conduct and 4 * 6 ttlts of finance , and that , therefore , it must Mold strictly to account the Minister who conducted iinance with tlie authority of that House . He entered into a long explanation of the coarse vvluoh he had taken on Exchequer-bills , stating at tHo outset that hie principle was , that in times of ease the unfunded ckbt must bo brought within narrow 1 ml'ts , in order that its mil utility and power SS ~ 1 ^ TV * times of difficulty . When he entered offlae , he fouud Exchequer-billa running up to a premium somcUmcB doublo tho whole of the

      intemporary causes of a drain . But the non-assent of the South-Sea stockholders had occasioned some inconveniences . Not indeed , amounting to loss , for he could demonstrate that the effect ot tho operation was a saving between 60 . 000 , 000 / -and 100 , 000 , 000 / . a year . Tho necessity of money to meet the nonassenting stockholders occasioned his want to command temporary resources ; and hence , tho proposal of the Exchoquer-bond . Mr . Gladstone disproved the idea that there was any dispute between himself and the Bank , or that he had demanded accommodation from the liank at an unusually low rate of interest . He proved that the public balanced in the Bank always exceeded the amount of JX'fiuioncybills which ho required j and that taking into account

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      434 THE LEADER [ Saturday , v . - 1 -.. 1

  • Citation
    • Leader (1850-1860), May 13, 1854, page 434, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/l/issues/vm2-ncseproduct2038/page/2/