THE BUDGET OF 1805. which will make it 1s. 10d. Flour, which sold last week for 52s. per "sack, the farmers enhance this week, to 63s." Why the farmers? The farmers, like every body else, sell their goods for as much as they can; and are they, merely because they deal in wheat, to be pointed out as objects of public hatred? The harsh epithets bestowed upon speculators in corn or meal are equally unjust. To speculate in those articles is a trade, and though in consequence of the paper-money system, it is a trade which, in certain cases, is extremely injurious to the community, yet the persons who follow the trade cannot be blamed for making as much by it as possible; the livelihood of themselves and their families depends upon their success in this trade, and therefore it is as unreasonable to blame their speculations as it would be to blame a blacksmith for shoeing people's horses. As to the system, indeed, which, after having made every thing else an object of gambling, has, at last, set the staff of life upon the cast of the dye, it is certainly an object of abhorrence; but that abhorrence should not be extended to any individual or any class. The same may be said of Bank-Directors and all the inferior tribe of papernoney makers, who, though they are somewhat more closely connected with the minister of the day, do, nevertheless, only follow a trade which is sanctioned by law, and of the mischiefs which that trade produces, they experience, perhaps, rather more than their share. Finally, we should avoid, on this score, all harsh reproaches against even the minister himself, who never was aware of the destructive tendency of his systein of finance, and who for his own sake would now apply a remedy were it in his power. Besides, all he has done has been sanctioned by the different parliaments to whom his projects have been submitted; and, if he has produced mischief without measure, his associates are not few. THE BUDGET OF 1805. CONSOLIDATED FUND-TAXES-DEBT-LOANS, RENTS, AND THIS word always puts one in mind of the contents of the thing, of which, in its literal sense, it is the representative; and, upon no occasion, that I recollect, has this idea pressed itself forward with more force than at present.- -Every year certain expectations are held forth; and every year they are disappointed. But, if the last year's promises are broken, ample amends is made by the new ones, which never fail to exceed the former, whether as to magnitude or solemnity.Upon a complete view of the financial state of the country it would be useless to enter until the whole of the annual accounts were laid before parliament; but, the Budget, taking its statements, as to the past, for truth, enables us to settle a point or two, with respect to which there has been some dispute. The art of financiering consists principally in multiplying and confusing accounts, till, at last, no one has courage to undertake an exami. nation of them. The way, therefore, to detect a financier of the Pitt school, is, to fix upon some one point, and that, too, a point as simple as possible in itself, and that will not very easily admit of being disfigured and confused. When my attention was first attracted to the subject of finance, it appeared to me, that a gross deception was played off upon the people annually; but, an annual exposition of every little wheel, peg and wire in the immense machine, would have been an endless task. I, therefore, fixed upon one single point, namely, the Surplus of the Consolidated Fund, and, upon this point I have steadily followed the first financiers in the world" (as the Sun and the Oracle call them), from the month of December 1802 to the present day. "two But, first of all, in order to render what I have to say intelligible, it may be necessary to explain what is meant by the words, Consolidated Fund. Who would not imagine, that it was a national resource already realized and set apart? In the common acceptation of the word Fund, it means something collected together. When we talk of a fund for the purpose of defraying any expense, we never suppose it to depend upon contingencies. If a man tells us that he has formed a fund for a certain object, we think him to mean that he has got so much money together; and, that there he keeps it apart for that special object. With this notion in their minds, the people, when they hear talk of the Consolidated Fund, think that the nation has a certain great fund, or stock purse; and, when they hear talk of the surplus of this fund, they think that the fund has grown beyond the demands upon it, and that they are in a fair way of becoming as rich as Jews. Whether any of them ever imagine, that they shall live to see the day when the overflowings will be distributed amongst them is more than I can say; but, that some of them, and those political writers, too, regard the consolidated fund as intended to defray all the expenses of the nation, will appear from the following passage of the Morning Herald, once before quoted. "From the official account of "the income and charges of the year (1803), it will be seen, that the "income amounted to 31,862,9611., whilst the charges are only "26,700,5331., leaving a balance in favour of the country of more "than 5 millions, a circumstance without example in the whole of our "financial history!" And, indeed, who can blame people for adopting such notions? Why are not the accounts of the nation stated like the accounts of individuals? Why are words and even whole sentences to have a meaning, when applied to national accounts, different from that which they have when applied to the accounts of individuals? What is it that constitutes cant? And, what are the purposes for which cant is used? Who would ever imagine, that by the Consolidated Fund, was meant the money annually received at the Exchequer for all the permanent taxes of the kingdom: or, in other words, with an exception not worth noticing here, the whole income of the nation, war taxes not excepted? This fund, as it is called, is, by several acts of parliament, appropriated to the paying of the interest upon the national debt, the expenses of the civil list, and the pensions and salaries granted by Parliament; and what remains is called the surplus of the consolidated fund; which surplus, be it observed, is all that there is, except the war taxes, wherewith to meet the expenses of the army, the navy, the ordnance, aud the miscellaneous charges, which four heads amount this year to 43,000,000l. sterling, while the famous surplus amounts to only 1,200,000l., leaving, of course, 41,000,000l. to be raised by war taxes and by loans; and, accordingly we see, that 16.000,000l. in war taxes are counted on, and we have seen a loan made for 20,000,000l. Why then confuse and puzzle men by talking about a fund and a surplus ? Oh!" say the people of the : 'Change," but this fund is a very important thing. It is appropriated, by acts of parliament, to the payment of the interest of the public "debt it is sacred and cannot be touched. The stockholder is thus "secured by the law. Let come what will; let who will go unpaid, he "must be paid." What a farce is this! Just as if any one would, or could pay the stockholders, if there were not wherewith to pay the army and the fleet! Yet does the mere notion, absurd as it is, prop up the faith of many; or, at least, amongst other notions, inspired by similar means, it tends to that end. The worst of it is, that this sort of faith is of a nature exactly the opposite to that of faith in the religious sense of the word; for, it is the property of the latter to enable men to smile in their last moments, whereas, the longer the former is entertained, the more horrid will be the catastrophe. Having, as well as the confusion of the statements will permit me, described the nature of the consolidated fund and its surplus, I have now to beg the reader's attention to the several estimates relative to the latter, made, at different times, by "the two first financiers in the world." In December, 1802, Mr. Addington estimated the future surplus of the consolidated fund, without the imposing of any new permanent taxes, at 7,845,000l. a-year; but in order to keep within bounds, he took it, in his ways and means, only at 6,500,000. Upon the subject of this estimate, I said, "I assert, that, if the accounts of last year be correct, "the surplus for this year will amount to only 4,974,654l. Here, Sir, we are at issue. Time alone can finally decide between us." Time did decide the year ended, and the surplus was only 5,162,5331. Proving the gross fallacy of "the first financiers'" estimate, the correctness of mine, within 187,879., which, in such a sum as that in question, is hardly worth notice. " ་་ The Budget, as it is very properly called, for last year, was brought forward in April, when Mr. Addington called upon the parliament to vote (and that they did so it is hardly necessary to say) 5,000,000l. as the surplus of the consolidated fund for the year 1804. But, we must take down his words here. "I now come to the surplus of the consolidated fund, which I estimate at 5,000,000l. I shall be ready, when called upon, to state, why I do not take it at so large an amount as in the "last year, and why it may be fairly taken at 5,000,000l. The House "is aware, that the produce of the consolidated fund, for the last year, "was calculated at 6,500,000l., but, in fact, it realized only 5,162,5331. In five quarters it had produced 6,100,000/., but in the three quarters following it fell below what I estimated it at. I see no reason to impute blame to myself for having, upon these grounds, called upon the House to vote 6,500,000. I detailed my reasons to the House, and "the House approved of them!!!"* Thus, silence was, as indeed it ought to be, when accompanied with an affirmative vote, construed to mean approbation. A useful hint for those, who are disposed to suffer money votes to pass as mere matters of course! " " Another year has now terminated. From the moment the account of the last year's permanent taxes appeared, I ventured to state, that the surplus of the consolidated fund for last year would not exceed 2,000,000%. I was deceived, for the other "first financier in the world" now has told us, that it produced 2,200,000l.!!! In doing this, however, he kindly See Parl. Debates, vol. ii. p. 353. POLITICAL REGISTER, FEBRUARY, 1804. endeavoured to cover the blunder of his brother financier, by attributing the deficit" to causes which he could not but consider as temporary, as it proceeded, in a great measure, from stock in hand, &c. &c." But, the misfortune is, that this is no more than a tame repetition of the excuses made by the other "first financier in the world," who, in his farewell budget-speech above quoted, said, "I could show, beyond doubt, that the deficiency from the amount voted, has arisen from the suspen"sion of the payment of certain duties, and the increase of draw-backs, the "amount of which may be fairly added to the surplus of the consolidated "fund. I therefore, look forward to a probable amount next year (that is fairly "to say the year just expired) of 5,000,000l."* Now, however, we find, that, in spite of the addition of these suspended payments, so added, the 5,000,000l. have dwindled down to 2,200,000, as was, at the time, predicted. Mr. Pitt has now estimated the surplus for the present year at 4,000,000l.; but, unless the war taxes fall off in a proportionate degree, or, unless money depreciates still more rapidly than it now does, I venture to predict that there will be no surplus at all, other than what may arise from new taxes, or war taxes brought into the consolidated fund, and thereby leaving a larger sum to be provided by loan, -Here, then, we have a quite satisfactory proof of Mr. Addington's skill and foresight, when, in such lofty strains, he congratulated the parliament and the nation upon the "growing produce of the consolidated fund." The speech, here alluded to, he afterwards published in a pamphlet. He said, that his statements were made upon " the most mature deliberation;" that he had "carefully and minutely examined all the facts upon which his estimates were founded;" and, let it be observed, that, in the next month of June (1803), after the war had begun, he repeated his statement in this respect, and said: "The growing produce of He accordingly included it the consolidated fund is likely to increase." in his ways and means at 6,500,000. I beg the reader not to forget that this was after the war had begun; and, that, therefore, no excuse can be grounded on a change in the situation of the country.-Grow the surplus does, indeed, and very fast too; but, as the old women say of stunted children, it is downwards, like a cow's tail. First it was estimated at 7,845,000l. At its first start it reached 6,500,000l.; but this was a sort of Midsummer shoot. The next spring brought it to 5,100,000/.; and the next, to 2,200,000l. Observe, too, that this is the progress of the falling off in the permanent taxes, amounting, at the end of two years, to more than 5,000,000l. in the year, to which must be added more than 1,000,000l. for depreciation of money, according to Mr. Pitt's own declaration, during his speech upon the civil list.t-Upon the subject of the loun, it is impossible to refrain from observing, that we hear now again all the set phrases of congratulation, which we have heard repeated in every budget speech for the last fourteen years. It is always such an excellent bargain for the public! One may here exclaim with Condorcet: "qu'il est bele cet être moral qu'on appel publique !" It is, too, always a bargain equally excellent for the loan-jobbers! Mr. Addington never failed to say so, and his brother in finance has now repeated the saying in terms stronger than ever. But a trifling circumstance seems to have been forgotten, namely, that during this war we were to have no loans, at +Ibid. 905. " least not exceeding 6,000,000l. a year! This is another case which calls on us to recur to their very words. "The committee," said Mr. Addington in his budget speech of 13th June, 1803,"will perceive, that the "great object I have in view is, to raise a large part of the supplies "within the year. The extent, to which I wish to carry this principle is this, that there shall be no increase whatever of the public debt during "the war. In the first place it will be necessary to ascertain the probable "amount of the annual charges during the war, and then to make provi"sion for carrying on a vigorous and even protracted contest, without making any greater addition to the public debt than what will be an"nually liquidated by the Sinking Fund. The annual charge of the war, "unless demands should be made upon us by the intervention of foreign powers who may wish to make a common cause with us, I think, will "not exceed 26,000,000l. I do not deny that this is a great, an enormous, sum; but certainly not greater than the value of the object for "which we have to contend. If, then, the House think proper to adopt "the measure I am now proposing; if I am right in my estimate of the growing produce of the consolidated fund, which I have considered "at about 6,500,000l., and if my calculation of the annual taxes be "correct, which I have estimated at 12,500,000l. but, which, for this purpose, I will only take at 10,000,000l., there will only remain a sum "of 6,000,000l. to be borrowed, which will be more than covered by the "sinking fund, which now produces considerably more than 6,000,0002. "The growing produce of the consolidated fund is also likely to increase, "unless we are again visited by those calamities by which the country has "been afflicted. If, then, my calculations are correct, we shall be able "to meet a war expenditure of 26,000,000l., without any increase to the public debt, an object so desirable that no difference of opinion can be "entertained upon the subject. I trust, therefore, this system will be 66 adopted. It is one which has been before tried, and of which the effect " is known. It has inspired confidence at home, and created respect "abroad. But, the pecuniary effect is not all. It will be a difference in "another respect: the difference between a temporary and a permanent "tax. It will have another effect also that of convincing the enemy of "this country, that it is hopeless for him to contend with our finances; "that it is not in his power to affect us in that respect. It will have a "still further effect; that of convincing the other powers of Europe, that "they may safely join with us in a common cause of resistance against "the common enemy; for, that the resources of this country are such as "tɔ give full security for the punctual discharge of any engagement it may enter into, and this is an object for which I have in view some pro " " visions." Now, all this is proved to have been false. Completely false. The surplus of the consolidated fund has continued to decrease; the war taxes have not produced more than half the amount which they were, by this time, to have produced; instead of 6,000,000l. a year, we borrowed 10 millions in 1803; in 1804, we borrowed 14,000,000l.; and, this year we have already borrowed 22,500,000l.; the war expenses, instead of 26,000,000l. a year, are already risen to 43,000,000l., while 5,000,000%. only are pretended to be provided for subsidies, and while nothing has been voted by parliament on account of those visitations of scarcity, to which "the first financier in the world" thought proper to allude. At the time that the above flattering picture was drawn, even at an earlier |