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-__- -_- - -IA YEAR OF MR.…

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A YEAR OF MR. GLADSTONE. The close of the financial year enables us to compare the promise of Mr. Gladstone's Budget for 1860-61 with its performance. The results are equally curious and in- structive In that wonderful scheme the Chancellor of the Exchequer inaugurated so many experiments; conceded so many remissions, total or partial, of taxation contrived so many compensations producing revenue on the other side of the account picked up so many waifs and strays of receipts for the service of the year; postponed so many liabilities anticipated so many assets,—finally adjusted an unpropi- tious balance by the convenient appropriation of several hundred thousand pounds from the cash at the national bankers-that his Budget as a whole presented one of the most unintelligible, as it was the most unsatisfactory, financial proposition that had appeared for many years. Nor was the nature of the scheme rendered more tolerable by the method of its presentation. The right hon. gentle- man, as one of his admirers has lately confessed, in his celebrated speech of 10th February, established a rhetori- cal deficit," —that is to say, he assumed the expiration of certain war taxes on tea and sugar, and of the Income and Property-tax, though afterwards all those imposts were renewed, with, in the latter case, a grievous augmentation in the tariff of charges and the shadow of this deficit has haunted finance ever since." It has done more. It has infused perplexity into all the calculations which members of the Legislature or the commercial public have been able to frame respecting the products of past taxation, the prospects of future revenue, or the general results of those multifarious changes which Mr Gladstone had intro- duced, and especially of those that centred in, or grew out of, the Commercial Treaty with France. Even now that the year is completed, and the figures are before us, it is impossible to track in detail the conse- quences of each particular measure, whether as tending to occasion a rise or fall in the commercial barometer. We can as yet speak of nothing but the gross results-but these are quite sufficient to show the haphazard way in which the returns of revenue in the different branches were guessed at by the Minister at the time, and the serious blunders into which he was consequently betrayed. At the termination of the then current year, Mr. Glad- stone found himself in the comfortable, but customary, position for English finance ministers, of possessing a handsome surplus. Adopting without alteration the esti- mates and arrangements of his predecessor, the Chancellor of the Exchequer found at the end of the year 1859-60, that the revenue presented an actual excess, as compared with the normal expenditure of the twelvemonth, to the amount of more than a million and a half. To this was added a quarter of a million, being a moiety of the old debt unexpectedly repaid by Spain,—constituting altogether a surplus of EI,89,3,000. This handsome balance in hand, however, he at once proceeded to dissipate, first by sub- tracting £ 1,170,000, as the additional charge on army and navy account," to defray outstanding liabilities on account of the Chinese and other little wars;" and, secondly, by charging t640,000 as the prospective loss occasioned by the operation of the French Treaty during the seven weeks then still unexpired of the current year. Here we meet the first in the long series of Ministerial blunders. When the financial year terminated, on March 31, I860, it appeared from the official tables that the Cus- toms receipta-the only branch of revenue affected by the Treaty-so far from diminishing, had actually increased by L350,000 beyond the returns for the previous year. Even allowing for the extra war-expenditure, the amounts of 1859-60 closed with a net surplus of at least one million sterling. Passing on to the Estimates for the year just terminated, Mr. Gladstone, when promulgating his rhetorical" budget, got together an hypothetical income of X60,700,000 from the following sources: Customs, £ 22,700,(100; Excise, E 19,170, 000 Stamps, £ 8,000,000; Assessed Taxes, £ 3,250,000 Property Tax, £ 2,400,000 Post Office, £ 3,400,000; Crown Lands, £ 280,000; and Miscellaneous, £ 1,500,000. These figures were computed on the avowed basis that matters were left entirely to take their course that on the one hand the Property tax ceased altogether, and the Customs-duties on tea and sugar subsided to the peace-level, while, on the other, no remissions were effected either in pursuanco of the French Treaty or under any other pretext. The alterations subsequently intro- duced produced a series of ups and downs of very perplex- ing diversity, and of which we can pretend only to indicate j the salient features and aggregate results. In Customs, the Commercial Treaty was computed to occasion a loss, on the year, of E 1, 190,000 the decrease of receipts from the remission of duty on three or four hundred small articles" adding to this loss a gross esti- mated sum of £ 910,000 —total, £ 2,100,000. On the other side, the continuation of the war duties on tea and sugar would produce precisely the same amount of income- 12,100,000-and the series of homcepathic imposts on packages, transfers, and other commercial operations respecting the Customs revenue, was expected to yield an income of £ 510,000. So that on balance the rheto- rical" estimate of receipts from this department showed an augmentation of at least half a million, -raising the total from X22,700,000 to £ 23,210,000. The Excise branch of revenue was subjected to still more extensive manipulations. During the year 1859-60, this item of receipt produced no less than £ 20,361,000. Mr. Gladstone rhetorically" estimated the product for 1860-01 at E19,170,000, and afterwards reduced that amount by a round million as the prospective loss from his proposed repeal of the Paper-duty; while he augmented the irnme- diate income by £ 1,400,000 through a reduction in the malt and hop credits, and anticipated a gain of about L500,000 more by a new taritf on game certificates. As the proposal to abolish the Paper-duty was wisely repu- diated by the House of Lords, the net result should have been to elicit a revenue from Excise, on the arrangements of the February budget, amounting to E20,620,000. On the Property and Income Tax, as matters stood, a balance ef about £ 2,400,000 remained to be collected, at the 5d. tariff, for the assessments for the year ending April 1, 1860. A new lease of the impost, at a double rate-but only for one year-was asked for and obtained by Mr. fHarlatnno, K.it such novel arrangements for collection, that three quarters instead ot one-half were gathered into the Exchequer during the year. The difference, so far as the revenue or the tax-payers are concerned, is this :—Last April, at the 5d. tariff, nearly two millions and a half were still uncollected. This year, when the tariff is 10d., the outstanding balance is only two and a quarter millions; and the effect of certain sinister devices, originating, it seems, nobody knows where, for anticipating the collection, has probably reduced this available amount by one or two hundred thousand pounds. Altogether the product from this source of income was computed to amount to about sio,goo,ooo. In Stamps the only change of last year's growth com- prised the introduction of divers new inventions in this line, including stamps on brokers' notes, dock-warrants, bankers' cheques, and other business transactions, from which the Finance Minister hoped to realize E300,000, raising the total income from L8,000,000 to £ 8,300,000. Upon other branches of receipts the effect of Mr. Glad stone's Budget passes beyond the range of critical inquiry, since any influence that might have been exercised was altogether indirect, and arose merely from the degree in which the financial system of the country stimulated or repressed the advance of national prosperity. So far we have treated entirely of the first" Budget, announced in the speech of 10th February. Three months later, or thereabouts, a second" Budget was promulgated, with the view of providing for the exigencies arising out 1 of the presentation of divers little bills on account of war in China and New Zealand, and for other purposes which are reckoned as incidentals" by Whig financiers, but which long experience has taught us to regard as con- stants" in Whig finance. The result of this new edition of the scheme of taxation was to impose further duties on home spirits, accruing to the Excise, and expected to yield one million per annum with a revised schedule of Customs- duties so managed as to extract S400,000 additional from that branch of the revenue. Assuming that one-half of this augmentation would be realized during the year, the final result as computed by Mr. Gladstone ought to have been a net Customs receipt of E23,410,000, and an Excise receipt of J621,120,000, during the financial year ending on the 13th instant. To these totals must fairly be adied the amour.t which ought to be credited to the national growth of population, of wealth, of enterprise, and of consump- tion in the British dominions. Between 1842 and 1853, in the face of remissions amounting on the whole to more than twelve millions a-year, the gross product of the Customs revenue actually increased between one and two millions sterling. There was, on the average, eleven hundred thousand pounds of duties annually abolished, and yet the net product of revenue increased every year nearly a quarter of a million. lir. Gladstone has tried the experiment of remission, but so blunderingly, that instead of all increase he is forced to confess a deficit. I His estimate of revenue from Customs, as corrected and revised in the latest editions of his Budget, showed a re- turn of nearly 21i millions. The actual product, as an- nounced in the revenue-returns on the 1st inst., amounted only to £ 23,305,000. The difference in figures is not large. But in the face of an industrial expansion, annually pro- gressing with augmented rapidity, and attesting the elasti- city of commerce and wealth among the whole community, this retrograde step assumes a very serious significance. But the Excise returns point to far more disastrous con- clusions. In Mr. Gladstone's corrected" as contradis- tinguished from his "rhetorical" estimate the produce of this item during the past year should have been £ 21,120,000. It has actually amounted only to 119,43.5,000, The dif- ference on the wrong side of the account is 11,61,35,000. This is not the worst: The present account includes the XI,400,000 anticipated from the malt and hop credits, so that the actual deficiency exceeds three millions sterling. What this enormous falling otf in a branch of receipt which depends so materially upon the purchasing power of the home community -upon the consumption of articles which are essentially the luxuries of the working rnan-iiily really indicate, we will not attempt to determine. Our present inquiry relates only to the financial bearings of the Glad- stonian scheme On this point i: is indisputable that, although the Uouse of Peers revised his proposition, and gave him fourteen hundred thousand pounds of income more than he had reckoned upon, his estimate of prospec- tive receipts has fallen short oy no less than three millions for the past twelvemonth. Fro-n all other sources of revenue the income has proved stable, or something more. The Property and Income Tax, estimated at EIO,872,000, has realized £ 10,923,000. The produce of Stamps, Assessed Taxes, Post-otfice, and Miscellaneous, in spite of a large reduction in the proceeds from sales of old stores," have proved fullr equivalent to the computations hazarded more than a year ago. With these departments of receipts Mr. Gladstone, in fact, did not intermeddle. His interference in other departments has resulted in the consequences which we have mentioned, ending in a logi of two or threo millions of net revenue, and in the conversion of a surplus of nearly two millions into a deficiency, as confessed in the official returns for 1860, of more than £ 600,000. As the outcome" of these configuratio :8, we presume we may venture to expect that the Budget to be announced on Monday week will be comparatively modest in character and unimportant in the financial changes wlii( it it will comprise. Mr. Gladstone is, we hope, tired of experiments, and satisfied of the inexpediency-to say no worse of rhetorical artifices." If he can coutrive to make both ends meet by a persistence in existing arrangements, lie ought to be very well satisfied. As matters stand, the Property and Income Tax, and the war-duties on tea and sugar, expire in the course of a few weeks. Let those im- posts bo continued for another term, and with proper eco- nomy the Finance Minister may pay his way until this ) time twelvemonth. The deficit on last year's income may be more than met by the proposed savings in the military and naval estimates. If Mr. Gladstone can but restrict his ambition within these moderate limits, he may do some- thing to compensate for his bygone blunders. He will then be able to provido for the financial necessities of the year without increasing the burdens on the tax-paving com- munity, without exhausting the resources of the Exchequer, and without committing the country to vast and profligate experiments upon its financial system.Press.

ITALY—FRENCH OR ITALIAN ?

ENGLAND AND THE SOUTHERN CONFEDERACY.

WAR WEATHER.!

OMENS OF WAR.

[No title]

------COUNTY COURTS.--

MISCELLANEOUS INTELLIGENCE.…