The Treasury bears a similar relation to the departments that deal with purely fiscal payments, the National Debt Office, the Public Works Loan Board, and the Paymaster General's Office, through which almost all disbursements are now made. For, although the Paymaster General is a political officer, he has ceased to have any real connection with his department, and it is administered under the direction of the Treasury.[129:1]
The Outlying Departments.
Besides the departments subordinate to the Treasury, there are a number of outlying departments more or less closely connected with it which have already been referred to as having nothing to do with financial affairs; and, indeed, one may say that in theory, at least, every branch of the public service—except the Ecclesiastical and Charity Commissions[129:2]—that does not have a political chief of its own, and is not connected with some other department, is under the supervision of the Treasury and represented in Parliament thereby. But while the commissioners, or other heads of such offices, are as a rule appointed on the recommendation of the First Lord, or of the Prime Minister, the degree of control exercised over them by the Treasury varies a great deal; and in some cases its responsibility, apart from regulating the amount of expenditure, is somewhat illusory. Several institutions in this position are intended to be entirely outside the range of party controversy; and the boards of trustees of the British Museum, the National Gallery, and the National Portrait Gallery habitually contain members of Parliament who would never think of resigning their posts by reason of a change of ministry. The principal outlying departments of the Treasury directly connected with national administration, are: the Civil Service Commission, which examines the candidates for the various branches of the civil service; the Parliamentary Counsel's office, which drafts all the bills introduced by the ministers; and the stationery office, which does all the government printing.
Throughout a great part of the nineteenth century the influence of the commercial classes was strong, the government was conducted on strict business principles, and the Treasury as the representative of those principles was the keystone of the administrative arch, or to change the metaphor, the axle on which the machinery of the state revolved. For a long time, indeed, there was a marked tendency to consider the office of Chancellor of the Exchequer as the most important in the cabinet after that of the Prime Minister, to regard the person who held it as heir presumptive to the premiership, and to make him leader in the House of Commons when his chief was a peer. But with the waning desire for economy, and the growth of other interests, the Treasury has to some extent lost its predominant position. A symptom of this may be seen in the fact that during the last dozen years of Lord Salisbury's administrations, the Commons were led, not by the Chancellor of the Exchequer, but by a First Lord of the Treasury appointed for the purpose. The turning point came at the beginning of that period, when Lord Randolph Churchill in 1886 quarrelled with his colleagues over the estimates for the Army. The occurrence did not produce, but it did mark, a change in the tone of public opinion; and although the Treasury will no doubt maintain its control over the details of expenditure, one cannot feel certain that its head will regain the powerful influence upon general or financial policy exerted thirty years ago.
FOOTNOTES:
[115:1] An excellent description of the existing financial procedure may be found in Sir Courtney Ilbert's "Legislative Methods and Forms," 284-99.
[115:2] This did not apply to the hereditary revenues of the Crown until, with the exception of the revenues belonging to the Duchies of Lancaster and Cornwall, they were surrendered by George III., in return for a fixed Civil List.
[116:1] 27 Geo. III., c. 13.
[116:2] The rule had not been absolutely without exceptions, for the Mercantile Marine Fund, derived from port charges on vessels, was used to defray part of the expenses of the Board of Trade without going through the Consolidated Fund. Cf. 2d Rep. Com. on Civil Estab., Com. Papers, 1888, XXVII., 1, Qs. 18211-26. In 1898 this process was restricted to the maintenance of lighthouses, buoys and beacons. It may be observed, also, that the Act of 1891 concerning "appropriations in aid" (54-55 Vic., c. 24, § 2) declares that it merely gives statutory authority to an existing practice. Such appropriations are now regularly granted by Parliament in aid of the votes for the services in which they occur. The amount in aid of each vote is fixed, and listed in a separate column in the schedule to the Appropriation Act, only the excess above that amount being paid into the Consolidated Fund.