POSTSCRIPT.

SATURDAY NIGHT.

Sir ROBERT PEEL made his financial statement in the House of Com- mons last night, in Committee of Ways and Means. Its breadth and boldness took the House by surprise. The Premier proposes at once to master the deficiency by increased taxation, but in such a way that he is enabled to reduce some of the taxes which press upon the opera- tions of commerce ; seeking at the same time to give immediate sup- port to the revenue and to strengthen its original sources. The; ac- count for the year ending 5th April 1843, in round numbers, will stand thus-- EXPENDITURE Licosa £50,820,000 48,350,000 X

DEFICIERCY

2,570,000

3,700,000

New TAXES,

Great Britain—an Income-tax

Ireland—equalized Stamp and Spirit-duties ;

Absentees to be taxed upon Property in

Ireland, as residents in Great Britain 410,000

Export-duty on Coals 200,000

TOTAL New TAXES

4,310,000

Soirees

£1,740,000

Of this surplus, about 1,200,000/. is to be devoted to a redaction of a variety of duties, in a sweeping revision of the Tariff; all prohibition being removed, and raw material being lightly taxed. The remainder will go to meet additional expenses which may occur in China or India.

The masterly speech in which Sir Robert Peel developed his plan is so well conveyed in the abridgment of the Times, that, with some slight emendation, we adopt that abridgment.

The late Chancellor of the Exchequer had calculated the probable revenue for the year ending April 1842 at 48,310,0004 and the probable expenditure at 50,735,000!.; and that calculation had proved to be very nearly accurate ; the

actual result being only 160,0001. below that estimate of revenue, and a little, he knew not precisely how much, below that estimate of expenditure. For the year ending April 1843, the estimated revenue would be 48,350,0004 the esti- mated expenditure 50,819,0004 and the consequent deficiency 2,469,000/. A further probable outlay must be provided for in respect of the war in China. Something must be made good for Australia, and something in Canada ; and a considerable addition must be made to the Army Estimates on account of the war in Afghanistan. The finances of India, too, required attention.

If Indian credit were shaken, the credit of England would be affected ;

and the present state of Indian finance was not a consolatory one. Be feared that the deficit thereupon in the two years ending next May would not be leas than 4,700,0001. How, then, were these deficiencies at home and in India to be met ? Should we persevere in the system of the last five years, the system of loans and Exchequer Bills, the system of permanent addition to our debt ? Was there a prospect of any considerable reduction in expendi- ture? or was the pi-mat deficiency an occasional one ? No; it bad been pro- ceeding for the last six years. In such circumstances, he could not resort to the miserable expedient of continued loans. When the Post-office revenue was aban- doned, a surrender which he had dissuaded, the Parliament which gave it up en- gaged to grant some other supply in its stead. Should he, then, impose a tax on articles of consumption, on the necessaries of life ? He could not consent to place burdens upon the labouring-classes; and if the House attempted that, recent experience proved that they would be defeated. The late Government had proposed an additional percentage of 5 cent on the Customs and Excise, and of 10 per cent on the Assessed Taxes. In last year the additional per- centage on the Customs and Excise, instead of producing 5/. on each 100/., had produced but about 108. ; but the percentage on the Assessed Taxes had produced considerably more than the estimated result of 101. for each 1001.; a new survey, however, having been made for the purpose of the increased assessment. These facts proved that the country had arrived at the limits of taxation on articles of consumption. All these resources, then, being set aside, should he revive old taxes? Should he go back to the Post-office ? At pre- sent, the new packet expenses being added, the Post-office produced no revenue at all, but rather occasioned a charge; but he did not think the recent reduction had yet had a sufficient trial to justify as yet an increase upon postage. Should he revive the taxes upon salt, upon leather, or upon wool? Upon the faith of their abolition various contracts had been entered into, and salt particularly had been applied to a variety of new purposes. Should he resort to locomotion for the purpose of taxation ? Be was reluctant to tax the means of transferring from place to place the labour of those whose labour was their only capital, Gas-light would fall within the same analogy, and ought to retain the same exemption. After ridiculing the various suggestions of people who were con- stantly sending hint projects for taxes on pianofortes or umbrellas, accompa- nied with claims of very large percentages upon the proceeds, he came to the question raised by the late Government, how far it might be possible to obtain increased revenue from diminished taxation; a resource which the fullest con- sideration had satisfied him was wholly inadequate to the immediate emer- gency. That a nation's revenue was eventually increased by diminished taxa- tion, might be quite true; but the first effect was always a fall of that revenue, sods long interval was found necessary to restore the lunount. This principle was illustrated by what had happened with respect to wine, tobacco, coliee, hemp, rum, sugar, and other articles. A mere reduction of duties, therefore, would not suffice to meet the present exigencies ; and he would now state what was the measure which, under a deep conviction of its necessity, he was pre- pared to propose; and which he was persuaded would benefit the country, net only in her pecuniary interests, but in her security and her character. He would propose, for a period to be limited, an Income-tax, of not more than 7d. in the pound, or about 3 per cent, from which lie would exempt all incomes under 150/., and in which he would include not only landed but funded property, whether in the hands of British subjects or of foreigners. He esti- mated the assessable yearly value of the land at 39,400,0001.; of houses, at 25,000,0001.; of tithes, shares in railways and mines, and other similar pro- perty, at 8,400,000!.; total, 72, 00,0004 From this he would deduct one- fourth for the exemption which he proposed to give to all incomes under 1504 and then the tax thus far would give him 1,600,0001. The occupiers of land (as- sessed at half their rent) would yield 120,000L Next came funded property. The dividend paid in 1841 was 29,400,0004, from which he would deduct 1,000,0001. in respect of the savings banks; but he must add, upon bank, foreign, and other stocks, 1,500,0004 making a total of almost 30,000,0001.,

from which he would deduct one-fourth for the incomes under 1501. a year ; and then the proceeds of his tax would be 646,000/. He now arrived at the in- come of trades and professions, a part of the subject attended with great diffi- culty: the produce he expected from this source was 1,250,000/. From the income of public offices he calculated upon 150,000/. The total would be 3,771,0001. With respect to the duration of this impost, the view of Govern- ment was that it might probably require to be continued for five years ; unless in case of such a revival of commercial prosperity, from the other measures which he was about to propose, as might induce Parliament to take the op- portunity of revising the subject ; but he would, in the first instance, propose continuance for three years only.

In case of war, he should deem it reasonable that Ireland should bear her proportion of this tax; but during peace, and for a limited period, and in the absence of all machinery in Ireland for collection, he should prefer to raise the quota of that country by other means. He thought he could do so, consistently with the Act of Union, by two modes ; the first of which would be a duty of Is. per gallon upon spirits. This approach to the equalization of the spirit-duty in the Three Kingdoms would, on certain fiscal grounds which he explained, be of great advantage to the nation at large, and to Ireland in particular. For along while the Temperance pledge in that country had been very effectual, but the consumption of spirits there had of late been again upon the increase. He cal- culated, from this source, to receive 250,000/. The other source to which he looked in Ireland was the equalization of the stamp-duty with that of Eng- land; from which he expected to obtain 160,000/. In Great Britain, however, as well as in Ireland, he proposed to reduce the stamps upon the charter-par- ties and bills of lading. With respect to regular absentees from Ireland, having no call of public duty to fix them in England, he proposed to require from them the payment of the same property-tax which would be required from other residents in this island.

Another resource would be a tax of 4s. upon coal exported in British ves- sels from this country ; a fair impost, when it was considered that the article thus carried abroad Was a most important material of our own industry, and a great assistance to that of rival nations. That tax is already imposed on coal exported in foreign vessels, but the vessels of many countries claim exemption on the around of reciprocity treaties: it will now be levied on all alike. Such a tax would probably yield an income of 200,0001.; and would operate, unlike most other taxes, as an encouragement to native industry.

The aggregate_ revenue, then, from all these sources, would be 4,380,0001.; constituting a considerable surplus, after covering the deficiency on the votes of annual expenditure. This surplus he proposed to apply in relaxing the com- mercial tariff. He had considered, on each of the numerous articles included, the proportion between the price and the duty. His main principles had been removal of prohibition, and reduction in the duties upon raw materials, which should not in scarcely any case exceed 5 per cent. He would also consider- ably diminish the duties upon articles partially manufactured, the highest be- ing 12 per cent; and even upon complete manufactures he contemplated that the maximum should not in general exceed 20 per cent. Be now laid upon the table this amended scale of duties, which had been distributed into twenty different heads ; for it was all prepared. It would be found that in about 750 articles there had been an abatement of duty recommended ; and that on about 450 the duty had been left untouched. Treaties were now pending with various nations, in which several of these articles were the subjects of discus- sion ; and such articles of course could not be included in the present reduc- tions. The total diminution of revenue occasioned by all the reductions would probably not be more than about 270,000/. On sugar, he regretted to say, the present Ministers could not offer any reduction : they could not con- sent to let in the sugars of Brazil and Cuba without some securities upon the subject of slavery in those countries ; and they thought that to reduce the duty on British sugar without a corresponding reduction upon foreign sugars would be merely to give to the British planters a monopoly-price, without advantage to the British consumers. The present prospects as to the supply of British sugar were, however, of a highly satisfactory character. With respect to coffee, of which the consumption had latterly decreased, he would recommend a great reduction of duty, bringing down the rate per pound to 4d. upon British, and 8d. upon foreign coffee. 'rhe loss of revenue, after some allowance for increase of consumption, would probably be 171,000/. On the subject of timber, his measure would be the reverse of that which was brought forward by the late Ministry: he would

advise a great reduction of duty, which would benefit all classes, from

the agriculturist to the shipbuilder; but he would interpose protection to the interests of the Canadas, which he would treat as an integral part of this island, by admitting their timber at a duty little more than nominal.

Accordingly, while he would lower the duty on foreign timber to 25s. a load, lie would let in the timber of Canada at a duty of Is. The loss on these re-

ductions in the timber-duty he estimated at 600,0001. There were yet two other reductions which he had to propose ; one upon the export of certain British manufactures, on which he proposed altogether to remit the duty ; the other upon stage-coaches, the duty upon which, in point of justice as ht tween them and railway-carriages, he proposed considerably to diminish. Thee two heads of reduction would produce a loss of 70,0001. On the whole, these re- ductions, in addition to the excess of expenditure, would increase the deficit to somewhat more than 3,700,0001.; but the estimated produce of the newly-pro- posed sources of income would not only cover this, but leave more than half a million sterling applicable to the contingencies of our distant wars. Sir Robert concluded with an eloquent appeal to the House to sup- port untarnished the name which the people have inherited from their forefathers, and which they have maintained in this century for twenty- five years of war and twenty-five of peace. He moved his first resolu- tion, which went to grant a duty on Irish spirits.

No discussion followed Sir Robert's statement. Lord JOHN RussELL welcomed the liberal principles of the measure ; but hinted that the duties on sugar would be better than on timber. A few other excep- tions were taken ; but the discussion of so important a measure was de- ferred for further consideration. The resolution was agreed to, as well as two others, abolishing the malt allowance on spirits distilled in Ire- land from malted corn ; and granting 8,000,000/. out of the Consolidated Fund to make good the supply granted to the Crown. The House re- sumed, the Committee to sit again on Friday.

Mr. WARD gave notice, that on going into Committee of Supply on Monday, he should move an amendment declaring it inexpedient to impose any duty on foreign corn until inquiry has been instituted as to the alleged burdens on the landed interest.

Early in the evening, Sir ROBERT PEEL said in reply to Mr. STUART Wonmur, that on the 22d January the Governor-General of India had Just received intelligence of the murder of Sir William APNaghten. There was no later official intelligence ; but a Dr. Reid, who wrote from Peshawar on the 16th January, had received a letter from a Captain M`Gregor written at Jellalabad on the 13th of that month, which left no doubt that the troops at Cabul had met with a great reverse. After a capitulation with Akhbar Khan, they left Cabal, and were attacked Ig about three days' march from the city ; and "no doubt remains but that our forces met with a great misfortune." There was, however, no occasion for dismay ; and Sir Robert had no doubt that Parlia- ment would give every support to the demand which it would be the duty of Ministers to make for the purpose of repairing that disaster. [Loud and repeated cheering from all quarters of the House responded to this appeal.] The CHANCELLOR OF THE EXCHEQUER carried a resolution, autho. rising the issue of 360,0001. in Exchequer Bills, in aid of public works ; explaining new regulations to be enforced in the advances made to contractors.