The Government had come to the conclusion that it would not be justified in keeping so large a balance in hand and it was proposed to apply it to the diminution of taxation. There were four articles which would at once present themselves to notice—viz., the tea and sugar duties, the tenth penny of the income tax, and the paper duty. It was proposed to remit the penny on the income tax which was imposed last year. This remission would cause a loss in the present financial year of £850,000. The rate would be 9d. in the pound on incomes above £150 a year, and 6d. in the pound on those above £100.
It was next proposed to repeal the duty on paper on October 1, making a loss of revenue in the year of about £665,000. The surplus for the year would be £408,000....
Referring to what were called the minor charges on commercial operations, he stated that the charges were about £320,000, and the Exchequer could not surrender that sum.
As to the portions of the reduced income tax and the duty on paper, the loss of which would fall on the year 1862–3, to the extent of about £800,000, that would probably be provided for by the sum payable for indemnity from China, and reductions in military estimates. It was only proposed to re-enact the income tax and tea and sugar duties for one year.
BRITAIN AND ITALIAN UNITY (1861).
Source.—Leaves from the Diary of Henry Greville, Third Series, pp. 369, 370. (Smith, Elder and Co., 15, Waterloo Place.)
Saturday, April 20, 1861.—There was an interesting debate last night in the House of Lords, brought on by Lord Ellenborough, on the Roman question, in which Clarendon and Lord Derby also took part. He asked whether our Government was engaged in any correspondence with the object of reconciling the spiritual independence of the See of Rome with the exercise of temporal sovereignty by the King of Italy within the Roman territory. He thought Rome was the fitting capital of a united Italy, and that the occupation by the French of that city precluded that unity.
He then discussed the Venetian question, and though he admitted the right of Austria to maintain herself in Italy, by virtue of the Congress of Vienna, he considered the time was come when she should reconcile herself with the Italian people. Holding these views, however, he deprecated the interference of the Italians in Hungary. Lord Wodehouse replied that we were not in any correspondence on the Roman question, and that H.M.’s Government considered it was neither becoming nor desirable for a Protestant country to take the initiative in the matter. The whole question depended upon the withdrawal of the French troops from Rome, and H.M.’s Government had not disguised their opinion that it was desirable those troops should be withdrawn. Clarendon thought Rome the proper capital, and believed the Emperor Napoleon to be sincerely desirous of withdrawing his troops whenever it would be safe for him to do so, both as regarded the Pope and his own position in France, where popular opinion was in favour of their remaining. Derby said much the same thing, but expressed his opinion that it would have been far better to establish a Northern and Southern Kingdom of Italy, in which case Rome would have lain between the two countries and the solution of the difficulty would have been easy. As, however, there was only one kingdom, the desire to have Rome for their capital was quite natural; but it was a desire that created the greatest embarrassment.