arrived when a considerable saving might be effected to the country by a reduction in those stocks which bore the highest rate of interest. It was, therefore, no surprise to the public to learn, early in the present session, that a plan was in the contemplation of Government for reducing the 3 per Cent. Consols, which at the commencement of the year 1844 had reached the price of 102. The particular mode by which this change was to be effected was of course a matter of much anxiety to a large class of the community, and the development of the Ministerial scheme was anticipated with considerable interest. On the 8th of March the views of the Government respecting the future mode of dealing with these funds, were explained by Mr. Goul burn in a lucid and able speech. The measure, he said, which he was about to propose, would tend to raise the character and the power of this country by exhibiting the extent of her resources and the constancy of her public faith. He was about to ask the House to deal with the largest sum for which any Government had been called on to propose a regulation, being no less than 250,000,000l. of money. There had long been a general opinion that the time was approaching when it would be the duty of the Government to reduce the interest on this stock. was there a period when capital seeking investment was so plentiful, and the rate of interest so low, as at present; and there was nothing in the circumstances of the times which gave any reason to expect that this state of things would soon pass away. The condition of the public finances, too, was favourable to the proposed ob

Never

ject; for, thanks to the firmness of the House of Commons, the revenue now once more exceeded the expenditure. He specified the successive creations and amounts of the different stocks bearing 3 per cent. interest, and noticed the past reduction in them. He had not thought it right, though these stocks had been separately constituted, to deal with them separately; but proposed to treat them all upon one level, except the stock constituted in 1818, which had been accompanied at its birth with some peculiar protections. On different occasions, when redemptions had been proposed, different inducements had been held out to stockholders, each of which had its advantages. His duty was as agent for the public, the debtors, to obtain the best terms which could be had for them consistently with justice to the creditor. He was not disposed to purchase an immediate relief by increasing the burdens of succeeding times. He had, therefore, rejected the idea of lowering the present interest by augmenting the capital of the debt; and his intention was to propose the conversion of the 31 into a 34 per cent. stock, which should continue till October, 1854, after which period the interest should be reduced to 3 per cent.; with a guarantee that, for twenty years from 1854, there should be no further reduction. Having stated the period which should be allowed for signifying dissent, he observed that by this measure the public, from October 1844 to 1854, would save 625,000l. per annum ; which saving, from and after 1854, would become 1,250,000l. per annum. He proposed also to make such arrangements, that from next October the payments

of interest would be nearly equalized in each quarter. He concluded his statement, amid repeated cheers from both sides of the House, by moving a resolution which embodied the proposals of his speech.

Mr. Francis Baring considered this a very honest scheme, seeing that the Chancellor of the Exchequer was of course under strong temptation to have taken a greater present benefit at the price of future burden. The avoidance of any increase to the National Debt was undoubtedly a great public advantage: the gradual reduction by a quarter per cent. for ten years was well calculated for breaking the fall to the stockholder. had risen chiefly to express his satisfaction at the plan; but he must also add his belief that this proceeding, so worthy of our own country, would be to other states a useful lesson, that good faith to the public creditor was not only an honourable but even an economical policy.

He

Sir J. R. Reid rejoiced that the "passing cloud" was gone, and that the star of hope now pointed to prosperity.

Mr. P. Stewart observed, that the state of the money market, which enabled the Government to make this operation, was not a good sign of the times, arising, as it did, from the low value of money and the flat state of foreign trade.

Sir J. Easthope was highly gratified by this plan, the fairness and simplicity of which he would applaud without reference to party feeling; and he believed it would meet with that general acceptance which it so well deserved.

Mr. Williams gave the Chancellor of the Exchequer some ad

vice about the interest of Exchequer-bills.

Mr. Alderman Thompson bore testimony to the merit of Mr. Goulburn's plan.

Mr. Hawes concurred, and assured the Government, that when they acted upon principles so sound they would never have to encounter any opposition.

Mr. Warburton begged it might not be forgotten that the opportunity of performing this operation had arisen out of what was in itself an evil the low rate of profit.

Mr. Blewitt hoped the Government were prepared to pay off the dissentients, who might be found more numerous than the Chancellor of the Exchequer seemed to expect.

After a few words from Mr. Ricardo,

Mr. Goulburn expressed his strong feeling of the kindness which had been shown him, and his conviction that the unanimity evinced by the House would have the best effect in facilitating the

measure.

The resolution was then put and carried unanimously.

The Bill brought in to give effect to the resolution thus carried, passed rapidly through its stages in the House of Commons, and being carried up to the House of Lords, was read a second time and committed unanimously. On the 18th of March Lord Brougham and Lord Monteagle in particular, expressed great satisfaction at the measure. The latter noble lord, however, wished that ampler notice had been given to the stockholders. And he expressed a hope that the opportunity afforded by this saving would be taken advantage of to abrogate the Income-tax at the

period originally announced, and to revise the existing system of taxation and the banking laws. The Earl of Ripon said, that in a transaction of such magnitude, it was desirable that the matter should be closed as soon as possible; and in point of fact, he was not aware that any practical disadvantage had been sustained by any parties.

The following day the Bill was read a third time, and passed.

He

The Annual Financial statement for the year 1844 was made by Mr. Goulburn, the Chancellor of the Exchequer, on the 29th April. He began by alluding to the gloomy forebodings which had been expressed by some persons in the last year, when it was said that the country was not likely to recover from the state of depression under which it laboured. then, however, saw indications of improvement which led him to anticipate a revival of industry and commerce, and a favourable change in the condition of the public finances; and this anticipation had been completely realized. The estimate of the income which he formed last year had been greatly exceeded by the actual receipts: he estimated the Customs at 19,000,000l.—the amount actually received had been 21,426,000l. A considerable importation of foreign corn took place, and produced a revenue of 800,000l., not included in his estimate; great improvements had also taken place in the wine duties on the cessation of the negotiations which paralysed the trade while they lasted, producing 350,000l. above the estimate; the duties on sugar had produced 200,0001. in excess, the duties on tea 300,000l. -indicating revived power of con

sumption on sumption on the part of the labouring population; the duty on cotton wool, 300,000l.-denoting increased activity in that department of industry. In almost every minor article there had been an uniform augmentation, keeping pace, generally speaking, with the extension of commerce and the increased employment of the people.

The estimate of the Excise revenue was as nearly accurate as possible-it was 13,000,000l.; the actual receipt. was 12,907,000l. There had been an increase in some of the chief articles of Excise, which, if it did not begin quite so soon in the year as the advance in the Customs, was nevertheless surely indicative of an improved state of the country. The other estimates were generally correct. In the Stamps the estimate was 7,000,000Z.-the amount received 7,011,000l.; Taxes, 4,200,000l. received 4,192,000l. There was an impression that the imposition of the Property-tax would cause a considerable diminution in the produce of other direct taxes, and especially of the assessed taxes: a comparison of the receipt with the estimate showed that such had not been the result. The estimate for the Post-office was 600,000l., the receipt 628,0001. The estimate of the Property-tax was 5,100,000l., exclusive of returns from Scotland; the actual receipt, including those returns, was 5,326,000l. The estimate of the total revenue was 50,150,000l.

the sum received 52,835,1347.; showing an increase of about 2,700,000l. The actual expenditure of the country had not exceeded the estimates formed last year. The estimate for the Army was 6,619,0001.-the actual ex

penditure 6,118,000l.; the East India Company having made a large payment to the Crown for various military services, and the restoration of tranquillity preventing the necessity for keeping up such great funds in the commissariat chests. Altogether the actual expenditure was less than the estimate by 650,000l. The total result was, that instead of the estimated surplus of 700,000l., the gross surplus actually amounted to 4,165,000l. There was, however, last year a deficiency of 2,400,000l.: that deficiency, including some additional items, which raised the amount to 2,749,000l., had been cleared off and discharged out of the present year's revenue; leaving a net surplus of 1,400,000l. over and above the expenditure for the year ending the 5th April last.

Mr. Goulburn then proceeded to state his estimate of revenue and expenditure for the ensuing year. The former, he said, he should not estimate at too high an amount, taking the Customs at little more than the sum they actually produced last year namely, 21,500,000l.; Excise, 13,000,000l.; Stamps, 7,000,000l.; Taxes, 4,200,000l.; Property-tax, 5,100,000l.; Post-office, 600,0007.; Crown-lands, 130,000l.; Miscellaneous, 250,000l.: total estimate of the revenue, 51,790,000l. Of the estimated expenditure, that on account of the Debt would be 27,697,000l., showing an apparent saving of about 1,400,0007.; but that arose in part merely from shifting the time for paying some of the dividends: the real diminution this year caused by the conversion of the Three-and-a-Half per Cents would be 313,000l. The charges for the year on the consolidated Fund would amount

to 3,097,000l., including the deficiency Exchequer-bills and the interest on them. The estimate for the Army was 6,616,000l.; Navy, 6,250,000l.; Ordnance, 1,840,000l.; Miscellaneous, 3,000,000l. There would also be some extraordinary expenses-thus estimated: on account of the late hostilities in China, 400,0007.; to pay off dissentients in the reduction of the Three-and-a-Half per Cents, 200,000l.; to complete the 610,000l. which it was agreed in 1815 to pay the South Sea Company, (for the surrender of their privileges, and until the completion of which they were to

receive an annual interest of 11,868. from the Customs,) 239,000l. The total expenditure for the year he estimated at 48,643,170.; the the income at 51,790,000l.; leaving an apparent surplus of 3,146,000l.; or, making a deduction for a portion of the Debt to be discharged next year, 2,376,000l.

He

Mr. Goulburn proceeded to say that this considerable balance having been pretty generally anticipated, he had been pressed from all quarters with recommendations to reduce taxes of all sorts. would gladly have done so, had he felt that there was a permanent revenue to fall back upon; but the source of the surplus was not a permanent one: it was mainly the Income-tax. That tax the House would have to consider next year, in order to determine whether it should or should not be prolonged, as had originally been proposed, for two years beyond the first three: and if other taxes were now to be hastily reduced, before the operation of the Tariff could be thoroughly known, the House