XI. The only effectual remedies to this danger are the extension of the relative lengths of the periods of peace; frugality in peace establishments; lessening the war expenses; the increase of taxes, whether permanent or levied during war. XII. If the three former of these remedies be impracticable, the last forms the only resource. By increasing the war taxes, the sum required to be raised by loan is lessened. By increasing the taxes in time of peace, the sum applicable to the discharge of debt is increased. These measures may be followed to such an extent, that the savings, in time of peace, may be brought to an equality with the surplus expenditure in time of war, even on the supposition that the periods of their relative duration shall be the same, for centuries to come, that they have been for a century past. The difficulty, and even impossibility, of a further increase of taxes has been considered. Every new imposition, as the limit to taxation approaches, becomes more oppressive and more unproductive; and if Government adhere to an expenditure beyond the ability of the country to support, it is impossible to escape national, or more properly government bankruptcy. So long as the practice was followed of defraying almost all the war expenses by loans, and imposing taxes only for the payment of interest, the burdens of war were so lightly felt, that the promptness of the Aristocracy to engage in war was scarcely under any restraint. Had the supplies been raised within the year, and most of them by direct taxation, the pressure would have been so great, that it would have probably stimulated the people to restrain their rulers from engaging in hostilities for remote and delusive objects. Justice to posterity required this. Every generation has its own struggles and contests. Of these and these only it ought to hear the burden; and the great evil of the Funding System is, that it enables nations to transfer the cost of present follies to succeeding generations. XIII. When taxation is carried to such an extent that the supplies adequate to meet a war expenditure are raised within the year, the affairs of the nation will go on under the pressure of existing burdens, but without a continual accumulation of debt, which would terminate in bankruptcy. So long as taxation is below this standard, accumulation of debt advances; and it becomes more difficult to raise taxation to the proper height. If it should ever be carried beyond this standard, a gradual discharge of the existing burdens will be obtained; and these circumstances will take place in the exact degree in which taxation falls short of or exceeds the standard of average expenditure. XIV. The excess of revenue above expenditure is the only real Sinking Fund by which public debt can be discharged. The increase of the revenue and the diminution of expense are the only means by which this Sinking Fund can be enlarged, and its operation rendered more effectual; and all schemes for discharging the National Debt, by Sinking Funds operating by compound interest, or in any other manner, unless so far as they are founded on this principle, are illusory. Both these propositions have been sufficiently established in our exposition of the Funding System. ABUSES IN THE EXPENDITURE OF GOVERNMENT. The labours of Mr. Hume and Sir Henry Parnell are an instance of what the ability and perseverance of a few individuals may accomplish. It is not, however, so much the good effected as the evil prevented that entitles them to the gratitude of the country. Under the long leaden and unprofitable administration of Lord Liverpool, all the great branches of public expenditure had been annually augmenting; and how far this progression would have extended, had not Mr. Hume, supported by a small phalanx of honest persons, commenced his exposures, it is impossible to say. His mode of attack could not be parried: though an unofficial man himself, he showed as intimate acquaintance with the details of the public accounts as John Wilson Croker, Peregrine Courtenay, or any other veteran placeman. Even Sir T. Gooch and Lord Wharncliffe were constrained to admit the value of his services, and the reductions effected in the public departments, prior to the formation of Earl Grey's ministry, are chiefly attributable to him and the gentleman we have mentioned. In the course of this section we purpose to bring together some of the more palpable abuses in the government expenditure, and for a knowledge of many of which the public is indebted to a valuable work of Sir Henry Parnell, On Financial Reform. We intend to avail ourselves of this gentleman's publication, though we cannot say the member for Queen's County is an object of our exclusive admiration: he is too much of a doctrinaire for us, and appears to repose too implicit confidence in the dogmas of the Ricardo school,—the disciples of which know as much about the internal state of the country, and the causes and remedies of its embarrassments, as the natives of Kamschatka. But this infirmity of the honourable Baronet does not impair the utility of the facts he has published, nor depreciate the important information collected by the Finance Committee of 1828, over which he so ably presided. The following is Sir Henry Parnell's list of the several departments entrusted with the business of expending the public money, pursuant to the general appropriation of it by parliament:- 1. The Treasury, including the Commissariat Department in 1827, £80,542 2. The Exchequer ..... 3. The Audit-Office in 1828..... 4. The Bank of England, do................ 48,000 32,977 267,597 5. The Commissioners of the Sinking Fund, do.. 10,350 6. The Civil Department of the Army, do. 108,837 7. Do. of the Navy, do. 8. Do. of the Ordnance (the Tower and Pall Mall,) do....... 57,961 £779,911 The expense of the Treasury department was, in 1797, only £44,066; so that it has nearly doubled; although the revenue, the superintending of which constitutes the chief business of the treasury, was as great as in 1827. Does not this show the profusion with which salaries have been increased, and offices multiplied? There are no fewer than fifteen clerks in the treasury, who receive salaries amounting to £1000; five of these fifteen receive £1,500 a-year each and upwards. Their duties are little more than nominal; they seldom attend their offices but to look over the newspapers; many of them hold two or more offices and sinecures; yet with all their official appointments, so little are they engaged in the public service, that they may be mostly seen driving about town in their stanhopes, and whiling their time in the club-houses. The Exchequer. -This is one of the most absurd and lucrative establishments under government. As the chief duty of the exchequer is that of superintendence, in taking care that there are no issues of public money by the Treasury contrary to parliamentary direction, it ought to be discharged by a very few officers, or altogether abolished. However, neither economy nor common sense are objects sought to be attained. The forms by which business is carried on are extremely antiquated and ridiculous, and as remote from modern practice as the conveyance of merchandize by packhorse and bells is from the cheapness and despatch of a rail-road. Our limits will only admit of a brief description of the constitution of this office, and the mummery and nonsense daily perpetrated there. The Exchequer is divided into seven different departments; the tellers, the pells, the king's remembrancers, the lord treasurer's, the auditor's office, the tally-court, and the pipe-office. The pipe-office alone has seven subsidiary absurdities; among these are the clerk of the nichills, the clerk of the estreats, and the cursitor baron; besides which, are eight sworn attornies, two board-end clerks, and eight clerks attached to the sworn attornies. From the inquiries of a parliamentary commission, it seems these are nearly all sinecurists. Two of the witnesses examined had been in the office, one eight and the other twenty-five years, and they stated, during that time, five out of the eight attornies never came near the office, living in the country at a considerable distance from London. The duties of their clerks were not more onerous. Three of them were at school long after being appointed to their situations. One of them admitted that, subsequently to his nomination, he was five years at school at Chelsea, two years in a conveyancer's office, and that he now practised as a barrister, and might look into the office once in a month. The board-end clerks laboured under similar lack of duties; and as to the clerk of the nichills, the name is sufficient to indicate his heavy and responsible functions. One of the duties of the Exchequer is, yearly to send down five great rolls of parchment to the sheriffs, containing accounts of supposed debtors to the crown during the last 300 years. The sheriff is bound to summon a jury, in order to ascertain what money is due to the crown on the roll. The sending of the roll down and up again, occasions considerable expense, and is as useless a task as the labours of Sisyphus. The farcical ceremony of passing the sheriffs' accounts is of a piece with the rest, and resembles a game on the draught-board. Under the pre tence of testing the account, the practice is to throw, in the presence of the cursitor baron, small copper coins behind a hat, from one little square of the cloth on the table to another; when the sheriffs' accounts are correct, a person cries out" tot;" when inaccurate, another person cries "nel;" and according as these words are uttered, the copper coins are shifted from one part of the chequers to another. All these antics were, probably, of use prior to the invention of arithmetic and book-keeping, but are now as irrelevant as the idle pageant of a coronation or lord mayor's show. The manner in which the public money is paid in to the tellers is a similar burlesque on real life. There are four tellers, and each has a little pew or cabin, in which he or his deputy sits, with a suitable complement of clerks, for the purpose of receiving the produce of the taxes nominally paid to him, but in reality to the clerks of the Bank of England, three of whom attend in an adjoining room to receive the money paid out of the Bank to be paid into the Bank again. The tellers, under the mockery of receiving the stamp, excise, and other duties, sign a parchment, written in a mixture of Latin or Saxon, or other jargon, which is as unintelligible to any one but a teller as the unknown tongues of Mr. Irving. They next pass a roll through a pipe into a room below, and there it is cut into a particular shape, and carried to the auditors of the Exchequer. A wooden tally was formerly used, which, within the last two years, has been exchanged for one of parchment. But the inconvenience and absurdity of the formality is so great, that Exchequer payments have been lately abolished, and they are now managed by clerks of the Treasury. From Madox's History of the Court of Exchequer, it appears, scarcely any alteration has been made in this department since the reign of Henry II. The reason is obvious enough. There are vested rights, claims of seniority, and reversionary interests in the way; and no reform can be introduced till all these expectancies are satisfied, and it has been the policy hitherto to take special care such expectancies never shall be satisfied, by promptly filling up every vacant appointment the moment it occurs. The most valuable sinecures in the Exchequer are held by peers and their relatives, and the emolument, fees, and patronage are so great, that it can hardly excite surprise the carnival doings we have described have been so carefully preserved. For the gratification of tax payers we subjoin a statement of the sums annually swamped in the "great Exchequer job." Auditor's Office Salaries Contingencies unknown from the want of documents, in an office Contingencies £ S. d. 13,004 9 24 £7,606 9 10 70 15 3 7,677 5 1 Carried forward....£20,681 14 34 Spencer Percival, Esq.'s Salaries 5,700 0 0 Contingencies of the four departments, exclusive of station- 6,012 2 11 5,800 0 0 5,768 5 4 5,396 14 0 1,020 4 0 113 4 3 £44,792 4 94 Of this sum about one-fourth is paid for sinecures, so complete, that in the words of the return," the Teller is empowered by his patent to appoint a deputy, who transacts all the business of the office. The Teller himself does not, nor has it been usual for him, to execute any part of it whatsoever." The Auditor is virtually a sinecure; the money porters, who perform the heavy drudgery of carrying slips of paper and parchment, are paid indifferently well; and there are five heads of offices who have deputies to act for them "in the general superintendence of the office during any occasional absence." The following gives an account of the salaries received for " responsibility," and of those paid for work. The Commissioners of 1831 recommend that the whole of the present machinery should be entirely swept away, and suggest the erection of a new office upon a new system-but then, agreeably with the established routine in such cases, the public will have to provide double-salaries for the new, and pensions and compensations for the old officials! The Audit Office.-This is as snug and delightful a retreat as any in the public departments. Were a proper system adopted in keeping the public accounts, this office might be dispensed with. In 1806, an attempt was made to improve the audit department, and the way this was set about is a very apt specimen of the mode of reforming government abuses in those days. A chairman of the Board was created, |