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REPEAL OF THE LEATHER TAX.

April 6, 1818.

Lord Althorp having moved the order of the day for the second reading of the Bill," for the repeal of the additional tax upon leather, imposed in the year 1812," Mr. Charles Grant objected to the principle of the Bill, and moved that it be read a second time that day six months. After Mr. Brougham had defended the measure,

Mr. HUSKISSON said, he was desirous of explaining an error, into which he was surprised the honourable and learned gentleman should have fallen. The honourable and learned gentleman had said, that if the tax upon leather were taken off, the House might proceed, as they had done before, without substituting any other. If the honourable and learned gentleman alluded to the propertytax, he was totally mistaken. There was an obvious distinction between a tax which was to continue only during the war, and the present tax, which was part of the ways and means of the year, and was carried to the Consolidated Fund for the payment of the interest of the debt.

This tax, he must inform the honourable and learned gentleman, formed no part of the supply of the year; and whether they were to abate five thousand, or ten thousand men, there would be no difference respecting it; as it was pledged for the payment of the interest of the loans granted on the faith of Parliament. The whole amount of the permanent taxes carried to the Consolidated Fund were not equal to the charge upon it; and therefore, every gentleman must see, that the tax could not be repealed, without substituting another. If there had been an excess of the Consolidated Fund above the charge, the case would have been different; but as there was no such excess, they were bound, in justice to the public creditor, to see that if they repealed this tax, they carried to the Consolidated Fund an equal amount of revenue.

The honourable and learned gentleman was for having all taxes on the necessaries of life done away with. Now, the taxes on beer and malt were taxes on the necessaries of life. The whole of a large revenue of twenty millions a year might be said, therefore, to be raised on the necessaries of life. Was the honourable and learned gentleman, in pursuance of his favourite theory, desirous that the whole of this large revenue should be done away with?

It had been said, that if the excise regulations, by which the leather trade was impeded, were repealed, the process of manufacturing might be improved; as had formerly been the case in France. But this argument did not apply; for it was not proposed to repeal the whole tax on leather, but the additional tax only; and after the repeal of the additional tax, it would still be necessary to continue the present regulations, with less advantage to the public.

He had read all the statements, and listened to all the arguments, which had been urged against this tax; and he confessed that, if the House had been in a condition to perform the gratifying duty of repealing taxes, the leather tax was not the first of which he should recommend the repeal. It was obvious, and it had been so argued by the honourable and learned gentleman, that the burthen of the tax did not fall on the tanners, but, as was the case in all consumable commodities, on the public, who were the consumers. Yet, if the honourable and learned gentleman read any of the statements which had been put forth upon this subject, he would see, that those who were most active in demanding this repeal, grounded their enmity to the tax upon the assertion, that it could not be thrown from the manufacturers upon the consumers.

The only circumstance which gave a shew of an argument in favour of this bill was, that the tax had been laid on almost immediately preceding a time of great pressure. But a much stronger statement might be made out in favour

of the repeal of any other part of the excise duties. But, even were the Bill carried, the relief afforded to the public would not be in proportion to the loss caused to the revenue. In the malt trade, for instance, since the additional duty had been repealed, there had been a diminution of the number of licences, an increase of the number of bankruptcies in the trade, and a diminution of the produce of the old duty, from three millions to less than 1,900,000l. In this case, as in the case of all commutations, the consumers would not be benefited to the full extent of the tax remitted. In consequence of the additional tax, an additional quantity of capital had been employed in the leather trade; and until that capital was shifted to some other employments, the dealers would charge their customers with the interest of it.

The right honourable gentleman then went over the various arguments that had been urged by the gentlemen opposite, and maintained that, upon all the grounds, it was the interest of the tanner alone that was consulted by the present Bill. This was a trade that had suffered in common with all others, from the return of peace; and, like all others, it was gradually reviving. But it was at the interest of the public that the House ought to look, rather than at that of individuals; and with a view to the interest of the former, he would say-Do not consent to repeal this tax, as they will not have the benefit of it. He would maintain, that a greater injury could not be done to the public, than by experiments of commuting taxes on articles of consumption, as they would not diminish the price to the consumer. There were no taxes, in fact, that could be repealed with full benefit to the public, except direct taxes. Whenever any reduction could be effected, these should be the first to meet consideration.

On the question for the second reading being put, the House divided: Ayes 130, Noes 136. Majority against the second reading, 6.

STATE OF THE CIRCULATING MEDIUM-RESUMPTION OF CASH PAYMENTS BY THE BANK.

May 1.

Mr. Tierney moved, "that a Select Committee be appointed to take into consideration the State of the Circulating Medium, to examine whether there be any, and what, necessity for the further continuance of an Act passed in the 56th year of his present Majesty, restraining the Bank of England from payments in Cash." After the motion had been opposed by the Chancellor of the Exchequer and Mr. Charles Grant, and supported by Lord Althorp, Sir Henry Parnell, and Mr. J. P. Grant,

Mr. HUSKISSON said, he was anxious to make a few observations upon this important question; more especially after the novel and extraordinary doctrines which had been advanced by the right honourable mover, and by the honourable and learned gentleman who had just taken his seat. In some points he even differed from his right honourable friend, the Chancellor of the Exchequer, and they also required explanation. The right honourable mover had adverted, in the course of his speech, to the discussions and publications which had taken place during the labours of the Bullion Committee, and he had seemed to be of opinion, that it required an effort of courage to refer to their Report. He had, however, in defiance of all ridicule, ventured to reperuse it that very morning; and he had no hesitation to avow, that it contained, in his opinion, a perspicuous statement of facts, a well-arranged concatenation of inferences, and a conclusion as indisputable as it was convincing and satisfactory. It had been prepared by an honourable and learned gentleman,* whose enlarged mind

• Francis Horner, Esq., member of parliament for St. Mawes. He died at Pisa, on the 8th of February 1817, aged thirty-eight years, and was interred in the protestant burying-ground at Leghorn. The disease which proved fatal to him was an induration and contraction of the lungs; a malady, which is said to be wholly beyond the reach of medical aid. The following paragraph, admirable alike for its

was well fitted to investigate any subject with precision, but which had been applied to the question now before the House with peculiar success. He could not conclude this brief notice of that distinguished individual without expressing his sincere regret, that he was not then present to assist their deliberations with the force of his reasoning, and the soundness of his judgment.

The question now before the House was this-Whether, to the present circumstances of the country, it was proper to apply the principles on which that Report was founded. He had that evening come down to the House, in the full conviction, that no dissent could have been expressed to the principle, that an increase of a paper currency tended to its own depreciation, and must have the effect of enhancing

elegance and its truth, appeared in the Morning Chronicle of the 28th of February :

"With an inflexible integrity and ardent attachment to liberty, Mr. Horner conjoined a temperance and discretion not always found to accompany these virtues. The respect in which he was held, and the deference with which he was listened to in the House of Commons, is a striking proof of the effect of moral qualities in a popular assembly. His understanding was strong and comprehensive, his knowledge extensive and accurate, his judgment sound and clear, his conduct plain and direct. His eloquence, like his character, was grave and forcible, without a particle of vanity or presumption, free from rancour and personality, but full of deep and generous indignation against fraud, hypocrisy, or injustice. He was a warm, zealous, and affectionate friend-high-minded and disinterested in his conduct -firm and decided in his opinions-modest and unassuming in his manners. To his private friends, his death is a calamity they can never cease to deplore. To the public, it is a loss not easily to be repaired; and, in times like these, severely to be felt."

When, on the 3d of March, a writ was moved for a new member for the borough of St. Mawes, in the room of Mr. Horner, similar tributes were paid to his memory by Mr. Canning, Lord Morpeth, Mr. Manners Sutton, Mr. Wynn, Sir Samuel Romilly, Mr. William Elliot, Mr. Charles Grant, and Lord Lascelles, the present Earl of Harewood.