IRISH TITHE BILL.
Another measure connected with Ireland arose from the difficulty of collecting tithes. It has been seen that in the preceding year an act was passed, enabling government to advance to the Irish clergy such amount of tithes as had been illegally withheld during the year 1833, and empowered the executive, on making such advance, to levy the arrear itself. This expedient only inflamed the animosity of the tithe-payers, since it created a creditor whom it was apprehended would be more difficult to resist. Ministers, therefore, resolved to relinquish this plan; and they proposed instead of it that government should be empowered to abandon all processes under the existing law, to pay up all arrears, and to seek reimbursement in a different manner. On the 12th of June Lord Althorp moved that it was the opinion of this committee that an advance of money should be paid to the clergy of the established church in Ireland, in order to relieve the occupying tenants from payments on account of arrears of tithes, or composition of tithes in the year 1833, such advance to be paid within a limited time by a land-tax chargeable on all land liable to the payment of tithes, the owners of which should not have paid the tithes, or composition of tithes, which became due during such years. This was generally approved of by O’Connell and the Irish members, though they insisted that it should be extended to lay-impropriators as well as clerical. There were others who opposed it because they thought it would be holding out a premium to lawless violence, and an invitation to resistance to the payment of tithes. Moreover, a third party were for rejecting it, because instead of involving the principle that the Catholic population should not be taxed in any shape for the Protestant church, it seemed to contemplate the perpetuation of the impost. In accordance with the expressed opinion of the committee, a resolution was moved to the effect:—“That his majesty be enabled to direct exchequer-bills to an amount not exceeding £1,000,000 to be issued, for the purpose of advancing, under certain conditions, the arrears of tithes due for 1831 and 1832, subject to a deduction of 25 per cent., and the value of tithes for 1833, subject to a deduction of 15 per cent., to such persons as may be entitled to such arrears on such tithes, and as may be desirous of receiving such advances; and that the amount advanced shall be included in the tithe-composition, so as to be repaid in the course of five years, being payable by half-yearly instalments.” This plan was strongly opposed, principally on the ground that the money would never be repaid, since repayment was still to depend on a collection of tithe, which never would succeed. The pretended loan would be converted into a gift, and England, besides paying its own tithes, would also be paying those of Ireland. The resolution was carried by eighty-seven to fifty-one, and a bill founded on it was brought in and passed both houses without any important alteration. The measure was regarded by the Conservatives as a mischievous precedent, and they asserted that any existing necessity for it had been produced by ministers’ own misgovernment.
FINANCIAL STATEMENTS.
The budget was opened on the 1st of April. As this was the first occasion of bringing any financial statement before a reformed parliament, the chancellor of the exchequer said that he thought it right to state what progress had been made in redeeming that pledge of economy on which the administration had taken office. In the number of places abolished, he showed that there had been a saving effected of £192,000, and he said that the diplomatic expenses had been reduced by £91,735. A saving of £28,000 had also been effected by bringing a number of persons from the retired list in the revenue department, and placing them on active service. The state of the finances was more satisfactory than during the last session. The chancellor of the exchequer stated that the amount of the income and expenditure of the year was respectively £46,853,000 and £45,366, leaving an excess of income over expenditure of £1,487,000, an excess which would be more than sufficient to cover the deficiency of £1,240,412 of the preceding year. He estimated the revenue for the present year at £46,494,128, and the expenditure at £44,922,219, which would leave a surplus of about £1,572,000. He thought it desirable, he continued, that a reduction of taxes should be made to the extent of this surplus. He proposed to make the reductions on taxes chiefly which fell on industry; and he selected tiles, marine insurance, advertisements, the assessed taxes, cotton, and soap, as the taxes to be reduced. The estimated loss to the revenue by these reductions was £1,056,000, which would leave a surplus for the year, after the above reductions, of £516,000. Mr. Hume thought the reductions were neither sufficiently great nor sufficiently numerous; they ought to be pushed at least to the extent of the estimated surplus. On the contrary, Sir Robert Peel was disposed to think that the chancellor of the exchequer had carried reduction too far: it was dangerous, he said, to reduce taxes to such an extent as might affect our ability to keep faith with the public creditor. He concurred, however, in the general view the noble lord had taken of the subject: he had acted wisely in maintaining the system of taxation as it stood at present. The financial statements of the chancellor of the exchequer appear to have given general satisfaction, for there was no discussion on the details.
BANK OF ENGLAND CHARTER RENEWED.
On the 31st of May Lord Althorp brought the subject of the renewal of the Bank of England charter before the commons. In doing so he stated at great length the terms on which government had determined to consent to a renewal of that charter; after which he laid the following-resolutions on the table of the house, that they might be considered:—“That it is the opinion of the committee, that it is expedient to continue to the Bank of England, for a limited period, the enjoyment of certain privileges now vested in law in that corporation, subject to provisions to be hereafter made: That provided the Bank of England continued liable, as at present, to defray, in the current coin of the realm, all its existing engagements, it was expedient that its promissory note should be constituted a legal tender for sums of £5 and upward: That one-fourth part of the debt at present due by the public to the Bank be repaid during the present session of parliament: That the allowances to the Bank on the management of the national debt, and other public business be continued, subject to an annual deduction of £120,000 from the remuneration at present assigned for that purpose: That the laws restricting the interest of money to five per cent, be repealed, so far as concerned bills not having more than three months to run before they become due: That it is expedient that royal charters be granted for the establishment of joint-stock banks, within a certain distance from London: That all banks should enter into a composition, in lieu of stamp-duties, at present chargeable at the rate of seven shillings for every one hundred pounds issued in notes: That it is expedient that a bill should be introduced into parliament to regulate country banks, the provisions of which should be such as to encourage joint-stock banking companies in the country to issue the notes of the Bank of England.” These resolutions were moved on the 1st of June, and the first of them was met by an amendment to the effect of delaying the consideration of the measure till the ensuing session. The opposition proceeded principally from members hostile to the renewal of the privileges of the Bank; and to that hostility they now added objections to particular parts of the proposed plan. They demanded delay in order that there might be more full inquiry, and they contended that such inquiry would make it manifest, that the exclusive privileges of the Bank ought not to be renewed. The amendment, however, was lost by three hundred and sixteen to eighty-three, and the first resolution, affirming the propriety of continuing the privileges of the Bank was agreed to without a division. The second resolution, making the notes of the Bank of England a legal tender for sums of £5 and upwards was opposed still more energetically, as being both unnecessary and mischievous; but it was carried by a majority of fifty-eight. Lord Althorp, however, agreed so far to modify the proposal as to make it incumbent to pay all £5 notes in gold, if demanded. To the resolution which provided for the continuance of remuneration, a counter resolution was moved, to the effect that it was, in the opinion of the committee, expedient that the remuneration now insured by law to the Bank of England for the management of the public debt and other public business should cease; but this was also lost by a large majority. The sixth and eighth resolutions, which went to regulate the establishment of joint-stock banking companies were abandoned for the present, Lord Althorp conceiving that the opposition was so strong that he should not be able to carry them, at least during this session. A bill founded on these resolutions was brought in and read the first and second time without a division. On the motion for going into the committee, Mr. Gisborne moved as an amendment that the committee should be taken that day six months; but this was lost by a majority of one hundred and nineteen against forty. In the committee multifarious amendments were proposed, but without success. One alteration, however, was made by ministers themselves. They had believed that the existing law prohibited deposit-banks, no less than banks of issue, consisting of more than six partners, from being established in the metropolis, or within a short distance of it; but the solicitor-general had now satisfied himself that, as the law stood, no such restriction existed, and a clause was introduced declaring such to be, and to have been the law, although there were legal opinions the other way, and although the Bank, and all mercantile men, had acted on the belief that the restriction did exist. As the bill passed the commons, its chief provisions were, a monthly publication of the Bank accounts; the repayment of a portion of its capital; a partial repeal of the usury laws which impeded its action; an annual payment of £120,000 in return for privileges conceded; its notes made a legal tender except at the Bank itself, or its branches; a quarterly return of the amount of circulation of all other banks; and certain regulations for the improvement of joint-stock banks. The bill passed the upper house without alterations: an amendment moved by Lord Whynford to leave out the declaratory clause regarding deposit-banks, as being contrary to law, mercantile understanding, and good faith, having been rejected. Government, also, refused to allow the opinion of the judges to be taken regarding the legality of such companies under the existing law.