Sir Stafford Northcote and Mr Gladstone.

Thames Star, Volume XI, Issue 3497, 10 March 1880, Page 2

Sir Stafford Northcote and Mr Gladstone.

The following is the Times' opinion of the speech of. the Chancellor of the Exchequer in reply to Mr Gladstone's attacks :—

To be defeated by a pupil who was never regarded as having the commanding abilities of the master, such is Mr Gladstone's forttne in the assault he made in Sootland on Sir Stafford Northcote's finance. It is impossible to read the Chancellor of the Exchequer's speech at Leeds without acknowledging that on the main points in dispute as to the financial management of the Government he has a sufficient answer to the candidate for Midlothian. There are two points in the controversy—one whether there has been a wasteful and extravagant increase of expenditure, the other whether the pay* ment of charges that have been incurred has been unduly postponed and will lead to heavy taxation in the end. In both respects the Chancellor of the Exchequer hat been charged with financial misconduct, and he demonstrates that the real increase of expenditure has been -very small, while he challenges a discussion of its necessity, and asserts that, so far from heavy taxation being rendered necessary by any postponement of -charges, the national indebtedness, on balance, has absolutely been diminished during the, last two years. We have more than once shown that such are the facts as to the finance of the Government; that the only I question as to their management is i whether they have reduced the national indebtedness as much as they ought to have done; and that there is yet no question of increased taxation, except as a means of reducing the debt at a more rapid rate. But it may be worth while going over the ground again with the help of Sir Stafford Northcote's statement. As to the first point, the question of an jextravagant and wasteful increase of expenditure, Sir Stafford Nortbcote makes a point at starting. Mr Gladstone compared the outlay of the last years of his own Government, excluding the Alabama indemnity and the Ashantee war, with the outlay of the Conservative Government, including part of their extraordinary expenditure, and so brought out a total increase of 8£ millions, whereas the figure should be 1\ millions only. The difference does not seem great, and 71 millions is still, to all appearance, a large sum ; but the principle is important, and it is something to establish that even this difference, by which the charge is aggravated, is due to an illegitimate process. It is, of course, plain that in comparing expenditure the same things should be compared. The distinction between ordinary and extraordinary is well established, and to deduct the extraordinary in your own accounts and leave it in, that of your opponents cannot but' mislead. The policy of the extraordinary expenditure in either case may be questioned, and the greater or less probability of its being repeated and becoming ordinary deserves consideration; but these are questions apart from financial mismanagement, and it is misleading to confound them. The details given by the Chancellor of the Exchequer as to the increase of the charge for the debt were interesting. They bring to light some important changes in the-accounts 'which have been going on, and the magnitude of the provision which has been quietly and unostentatiously made in this country for the reduction of the debt. Part of the

increased charge of £1,937,000 is cauied by the growth of the system of loam to local authorities, for which money has to be borrowed. The debt which the present Government has incurred in this way .'• involves a new charge of £644,000, which is fully covered, however, by the interest received on the other aide. We have often expressed doubts respecting this system of borrowing in order to lend; but clearly an increase of debt charge of this peculiar sort should not be spoken of as an increase of our burdens. . Again, of the remaining increase of charge a large part is accounted for by the new sinking fund of the present Chancellor of the Exchequer himself, the appropriation for this sinking fund being no leii*than £633,000 last year, and another large part by the recent conversion of a portion of the permanent debt into terminable annuities, involving an increase of charge from about half a million to? £l,l()0 l ()q0^ the difference being really, an increase of the appropriation for the reduction of the debt, not an increase of expenditure in the proper sense,of the word. Jn these ( two ways, then, the present Government has increased its apparent annual deficit, or diminished its present annual surplu'i, at compared with the accounts of-itsi predecessors, by nearly £1,230,000. When the deficiencies^^? theY last two years are v spoken of -amounting in all to £4,800^000: j only, this fact should be horn inrmind./ But for these increased appropriations for the redujßtipniof thedebt, whicjiisjg£s*U ■ been" made ■ bj• ibi present Gownttint, the apparent accumulated deficiency,at the beginning of the present financial year would have been little elver :two millions sterling. The consideration of what mayprove to be the deficiency of the present,-: year ought also to be affected by. this fact. 7 Were the Government appropriatipa :for^| reducing they debt- the same, as :|b^ the i time of. th^i%^r^ecsssoM,vthere^would; prcitaWyJb^ no deficiency.•■jfct,*ii. ;Buf ft* hi^ l ownj agxiety,-tcj increasJßV^e appropriation ■-. ifo^idfebt^ re^uc'tioii^:Sitl>:i Stafford Noi^h^te/woul^^ larger surpluses when :f pluses, and smaller deficits: when there, : were deficits than he has had. '■'Sr"-^ ■i.:.:

The second point on which the Chan* cellor of the Exchequer rindicates the. Government relates to the alleged postponement of charges and the probable' increase of taxation in order to meet them. His answer under this head is, of course',V; partly anticipated by what has bean said „ about th« debt. The alleged deficiencies,; being themselves reducible in. the , way. described,.and being to that exteat not-' real deficiencies when a proper comparison is made between his finance and that; of;, his predecessors, there can be so far no question,of a postponement of charges. The worst that can have happened is that one,part of the debt which is called the permanent debt, will have been reduced, and what is called the unfunded debt will have been increased. It is only in a technical sense that the charges are post- -. poried, for if the accounts had been kept as J, they were by his predecessors, the charges would have been' written off as paid.

Thkbe is a common feeling that he who "' hag succeeded against great 1 odds, who has made his mark where those possessed of many advantages over him hate failed < to make theirs, must possess in himself remarkable elements of success. And the •>• feeling is right. The self made men are *[ on the whole the safest to be entrusted with great undertakings. The, stuff of. , which they are made has been tested, and ' has been found to be of the durable kyid./ t

Many years ago the Beso)ate t an English Government ship, had to b« abandoned in the Arctic Seas. It was found by an' American QoTernment ship,, taken to America, repaired by, the Government, and restored to our Govern--, ment.' It was lately condemned to be broken up. Her Majesty having heard of this ordered that a magnifioent article of furniture, combining writing-table* book'shelves.'&c, should be made out of the ship's timber, and sent as,a present to the President of the United States. Designs have been sent in by several cabinetmakers, bat no decision has been come to at present.