THE BUDGET—PROPOSED REDUCTION OF POSTAGE DUTIES, ETC.
The chancellor of the exchequer brought forward his financial statement on the 5th of July. From his statement it appeared that the expenditure had exceeded the estimates; chiefly in consequence of the war in Canada. The estimates were £46,974,000, and the expenditure £47,760,000, so that there was a deficiency of £786,636. Mr. Rice, however, stated that he did not think himself justified in laying a permanent charge on that account upon the country, and he proposed to meet the deficiency by a vote of exchequer-bills on a subsequent occasion, in the nature of a vote of credit. The chancellor of the exchequer next stated the estimated income and expenditure of the present year; the former being £48,128,000, and the latter £47,988,000, leaving an excess of £140,000.
In his statements the chancellor of the exchequer took a cheerful view of the commercial prospects of the country; and he referred to the increase of exports for the present year over those of 1838 as a symptom of returning prosperity. So confident was he of a return of prosperity, that he proposed to reduce the rates of postage. At this time there was a committee sitting on the post-office acts; and Mr. Rice moved this resolution:—“That it is expedient to reduce the postage charged on letters to the uniform rate of one penny, for every letter of a weight to be hereafter fixed by law; parliamentary privileges of franking being abolished, and official franking strictly regulated. This house pledges itself at the same time to make good any deficiency of revenue which may be occasioned by such an alteration in the rates of the existing duties.” In moving this resolution the chancellor of the exchequer said that he proposed a penny rate, because he had been convinced by the arguments and evidence of the committee that the latter expedient would involve less loss to the revenue than a twopenny postage, which had been recommended by the committee. After some observations from Mr. Goulburn and Sir Kobert Peel, both of whom intimated further hostility to such a change, the resolution was agreed to without a division. On the 12th of July, when the order of the day was read for receiving the report of a committee on the postage-acts, Mr. Goulburn rose for the purpose of proposing a series of resolutions to be substituted for the report. These resolutions were:—“That with a deficiency of revenue during the three years ending on the 5th day of April, 1840, of not less than £8,860,987, it is not expedient to adopt any measure for reducing the rates of postage on inland letters to an uniform rate of one penny, thereby incurring the risk of a great present loss to the revenue, at a period of the session so advanced, that it is scarcely possible to give to the details of such a measure, and to the important financial considerations connected with it, that deliberate attention which they ought to receive from parliament.” This amendment was opposed by the chancellor of the exchequer, and supported by Sir Kobert Peel. After a few words from Messrs. P. Thomson and Warburton in favour of the proposition, the original question was carried by a majority of two hundred and fifteen against one hundred and thirteen. The report was then brought up and read; and on the question that the resolution agreed to by the committee be read a second time, Sir R. Peel moved an amendment to omit such part of the resolution as pledged the house to supply any deficiency of the revenue occasioned by the reduction. This amendment, however, was rejected, and the report agreed to; and on the 18th of July Mr. S. Rice brought in a bill, intituled, “An act for the further regulation of the duties on postage until the 5th day of October, 1840.” This bill was read a second time without a division, and by the 29th of July it passed the commons.
The second reading was moved by Lord Melbourne in the house of lords on the 5th of August; on which occasion the Duke of Wellington criticised the manner and circumstances under which it had been brought forward in the face of a deficiency of more than one million, which, considering the state of our affairs both at home and abroad, was likely to be greatly augmented by the 5th day of October, 1840. At the same time the noble duke said that he would vote for the bill, and would recommend their lordships to follow his example. Several other noble lords addressed the house, chiefly in favour of the measure; and the bill was then read a second time, and subsequently became law without further opposition.
In his remarks on the postage-bill the Duke of Wellington recommended ministers to reduce the amount of the floating debt, under the pressure of which the market had been labouring, by funding exchequer-bills. Apparently acting upon this suggestion, on the 12th of August Viscount Melbourne and the chancellor of the exchequer made public their determination, subject to the approval of parliament, to effect the funding of four millions of exchequer-bills in the three per cent, consolidated annuities. This arrangement was effected on the 17th.