THE BUDGET OF 1784.
On the 30th of June, Pitt produced what is called the budget, which included the subject of taxation. In his speech he discussed the ways and means for defraying the expenses of the services of the present year; the loan; the funding a portion of the unfunded debt; and new taxes. A loan of six millions was found requisite for the current services of the year, besides the ordinary sources of income; and this he proposed to throw open to public competition; the biddings being sent in, sealed up, and afterwards opened in the presence of the governor and deputy governor of the Bank of England. At this time the navy and victualling bills, with the ordnance debentures, which formed a considerable part of the unfunded debt, amounted to about fourteen millions; nearly the half of which he proposed to fund at five per cent, stock, and to make irredeemable for thirty years, or until twenty-five millions of the existing funds should be extinguished. Beyond this, there was in the market about seven millions in bills and debentures, which bore an interest of four per cent. These bills, with the new fund and the new loan, required an interest of nearly one million pounds sterling; and Pitt undertook to find taxes which should produce that sum. He proposed duties on hats, ribands, coals, gauzes, horses, linens and calicoes, candles, bricks and tiles, paper, and hackney-coaches; and he also proposed licences to dealers in exciseable articles, and certificates to kill game. In commenting upon these taxes, the young premier observed:—“It would be idle to suppose that all the taxes in this long catalogue were unexceptionable; but the necessities of the public leave us no option to deal otherwise than openly and fairly. The wants of government are many; the finances of the country have been much reduced; and it is proper to look our real situation manfully in the face.” Pitt could speak and act the more boldly because the necessities of the government were not of his own creation; and his manliness, together with the ability he displayed in his financial detail, gained for him the applause even of his most determined opponents. Fox said, with reference to his management of the unfunded debt, that “too much praise could not be given him.” The only tax, indeed, which met with decided opposition, was that on coals, which was justly represented as oppressive to the poor, and injurious to our manufactures. This he relinquished, as he did also that on hops, which was to have been included in the exciseable articles, introducing in their stead, taxes on gold and silver plate, lead exported, race-horses, licences to sell ale, and postage of letters. Pitt also introduced regulations regarding the privilege of franking, which were calculated to increase the revenue of the post-office. On the whole, the introduction of this budget, though the nation was already exhausted by taxes, had the effect of greatly increasing the youthful premier’s popularity.