I shall begin by stating what has been voted as the amount of the supply under the head of the services for the navy, with the exception of what is necessary for the transport services. All these accounts have this day been laid before us; and it appears that the total sum for the ordinaries and extra-ordinaries of the navy and transport services amounts to 13,642,000l., being the same sum, within a very small amount, as was granted in the course of last session, and which I have the satisfaction of assuring the committee is likely to prove sufficient for the whole expenses of the navy, without leaving any necessity for augmentation. The next head of expense is the army, in which the estimates amount to 8,840,000l. ... Under the head of ordnance services, including the expenses which have not been provided for, there has been voted the sum of 1,570,000l. The next article is that of the miscellaneous services. The plantation estimates have already been voted, but there are other minuter parts of these services which have not yet undergone a discussion in this house. The amount will be rather less than it was last session. I state it [at] 600,000l. To this is to be added the usual sum voted towards the redemption of the national debt, above the annual million, which is 200,000l. There are other sums, which are generally voted under the head of deficiency of grants. Among these is a sum due for interest on treasury and exchequer bills paid off, amounting to 565,000l.; the discount on prompt payments upon the loan, amounting to 210,000l.; the interest on exchequer bills circulated within the year, and charged upon the succeeding year, 300,000l.; in addition to this, there is the deficiency of the land and malt in the act passed two years ago, amounting to 300,000l. These sums swell the total of the supply to 29,272,000l. This total, sir, does not differ in any material degree from the amount of the supply of last session.

[He then estimates prospective sources of revenue:

Land and malt taxes2,750,000l.
Lottery200,000l.
Produce of the consolidated fund1,500,000l.
Import and Export taxes1,700,000l.
——————
6,150,000l.]

The remainder of the sum is that which must be raised either by a tax within the year, in the same manner as the assessed tax bill of last year, or by a loan. It will be to be considered, how the committee will divide that remaining sum between them. The sum to be provided for is upwards of twenty-three millions. Gentlemen will recollect that, in the debates upon the subject of the assessed taxes last session, two fundamental principles were established as the rule by which we should be guided in providing for the supplies for the service of the year. These were, first, to reduce the total amount to be at present raised by a loan; and next, as far as it was not reducible, to reduce it to such a limit, that no more loan should be raised than a temporary tax should defray within a limited time. In the first place, the tax acceded to by the House last session[392] was for the purpose of providing for the supplies of the year; and in the next place, for the purpose of extinguishing the loan raised in that year. From the modifications, however, which that measure underwent after its being first proposed, the produce of it was diminished to a considerable extent. Other means indeed were adopted to remedy the deficiency which was thus occasioned. The voluntary and cheerful efforts which, so honourably to individuals and to the country, came in aid of the assessed taxes, and the superior produce of the exports and imports beyond the estimate, brought the amount of the sums raised to that at which they had been calculated. The different articles were estimated at seven millions and a half, and this sum was fully covered by the actual receipts under the distinct heads. It gives me, indeed, the most heartfelt satisfaction to state, that notwithstanding the difficulties which the measure encountered from the shameful evasion, or rather the scandalous frauds by which its effects were counteracted, the total amount which was expected has yet been realized. The meanness which shrunk from fair and equal contribution has been compensated to the public by the voluntary exertions of patriotism. The produce of the assessed taxes, under all the modifications, and all the evasions, is four millions. I had taken it at four and a half after the modifications. The deficiency is supplied by the excess on head of voluntary contributions....

Satisfactory as it must be to review the circumstances to which we owe those advantages, and the benefits which the mode of raising the supplies to a considerable extent adopted last session has produced, it is unnecessary for me to state that, however the principle may deserve our approbation, it is still much to be desired that its effects should be more extensive, and its application more efficient.... Every circumstance in our situation, every event in the retrospect of our affairs, every thing which strikes our view as we look around us, demonstrates the advantages of the system of raising a considerable part of the supplies within the year, and ought to induce us to enforce it more effectually to prevent those frauds, which an imperfect criterion and a loose facility of modification have introduced; to repress those evasions so disgraceful to the country, so injurious to those who honourably discharge their equal contribution, and, above all, so detrimental to the great object of national advantage which it is intended to promote. In these sentiments, our leading principle should be to guard against all evasion, to endeavour by a fair and strict application to realize that full tenth, which it was the original purpose of the measure of the assessed taxes to obtain, and to extend this as far as possible in every direction, till it may be necessary clearly to mark the modification, or to renounce, in certain instances, the application of it altogether. If then, the committee assent to this principle, they must feel the necessity of following it up by a more comprehensive scale and by more efficient provisions. They will perceive the necessity of obtaining a more specific statement of income, than the loose scale of modification, which, under the former measure, permitted such fraud and evasion. If such a provision be requisite to correct the abuses of a collection, to obviate the artifices of dishonesty, to extend the utility of the whole system, it will be found that many of the regulations of the old measure will be adapted to a more comprehensive and efficient application of the principle. If regulations can be devised to prevent an undue abatement, and to proportion the burden to the real ability, means must be employed to reach those resources which, primâ facie, it is impossible under the present system of the assessed taxes to touch. While inaccuracy, fraud, inequality, be grievances which it is desirable to remedy, it will be an additional satisfaction, that when compelled to adopt means to prevent the defects of which we complain, we shall be enabled likewise to improve and to extend the benefits we have obtained. The experience which we have had upon the subject, proves that we must correct and remedy, in order to secure the advantages which the measure is calculated to afford. It is in our power to make them our own. I think I can show that whatever benefit the principle upon which we have begun to act, is fitted to bestow, may by a liberal, fair and efficient application, be carried to an extent far greater than has yet been obtained, an extent equal to every object of great and magnanimous effort, to every purpose of national safety and glory, to every advantage of permanent credit and of increased prosperity.

Impressed then with the importance of the subject, convinced that we ought, as far as possible, to prevent all evasion and fraud, it remains for us to consider, by what means these defects may be redressed, by what means a more equal scale of contributions can be applied, and a more extensive effect obtained. For this purpose it is my intention to propose, that the presumption founded upon the assessed taxes shall be laid aside, and that a general tax shall be imposed upon all the leading branches of income. No scale of income indeed which can be devised will be perfectly free from the objection of inequality, or entirely cut off the possibility of evasion. All that can be attempted is, to approach as near as circumstances will permit to a fair and equal contribution.... The details of a measure which attempts an end so great and important, must necessarily require serious and mature deliberation. At present all that I can pretend to do is, to lay before the committee an outline of the plan which endeavours to combine every thing at which such a measure ought to aim. This outline I shall now proceed to develop to the committee as clearly and distinctly as I am able.

The next point for consideration then, is the mode of contribution which shall be adopted. On this head it is my intention to propose that no income under 60l. a year shall be called upon to contribute, and that the scale of modification up to 200l. a year, as in assessed taxes, shall be introduced with restriction. The quota which will then be called for ought to amount to a full tenth of the contributor's income. The mode proposed of obtaining this contribution differs from that pursued in the assessed taxes, as instead of trebling their amount, the statement of income is to proceed from the party himself.

[A detailed estimate of income from different sources follows. One-fifth is deducted to allow for the remission of taxation on incomes under 60l. and graduation under 200l. from 1⁄120 to 1⁄10.]

For the sake of greater clearness I will recapitulate the heads in the same order that I have followed:—