I believe we find ourselves in this singular situation:  we have an increased expenditure, (increased within this year,) and have, at the same time, a reduction of taxation, and no overplus whatever (or one not amounting to more than 10,000 l.) of revenue.  I say we are in that peculiar situation, because I put out of the question those occasions on which ministers of the crown have thought it their duty to propose and effect loans, to carry on the public service of the country.  Even in these cases, those who have made such propositions have thought it their duty to provide a surplus over revenue, in order to meet the unforeseen casualties in the amount of revenue, which every man knows must occur in so large a revenue as this country has the happiness to boast of.  This principle of having a surplus revenue over the expenditure, has been considered advantageous with a view to the diminution of the national debt.  I am aware that this is a part of the subject on which a difference of opinion exists.  I am aware that many great authorities are of opinion that no surplus is necessary for the express purpose of reducing the national debt, and I perfectly agree with them that it is not desirable that a surplus should be created by borrowing, and thus creating new liabilities for the purpose of getting rid of the old.  But I cannot look to what has taken place of late years, even in my own time, when I filled the situation of first Lord of his Majesty’s Treasury,—­cannot look to what took place then without seeing the advantage of having an overplus of income over expenditure, such as would tend to the gradual diminution of the public debt.

I am considerably within the truth when I state, that since the peace the interest of the public debt has been decreased by an amount more than sufficient to pay the interest of 100,000,000 l. of stock; and your Lordships will therefore see that some surplus of revenue, in order to lead to a diminution of the public debt, is highly desirable.  I think it is a principle of the financial policy of this country that there should be such a surplus, and that it should be so applied.  Besides, much of the revenue of this country depends on the seasons, and almost all on consumption; and the amount of consumption depends upon taste and fashion; and the change of taste and fashion, and other circumstances over which no man can have control, and which are liable to variations, may tend to a variation in the amount of the revenue, which nothing can provide against except a surplus revenue.  It is on this principle that the government to which I had the honour to belong proceeded.

We should not think that an individual provided for his expenses who should leave a part of them to be paid within a future period, neither can we think all the expenditure of the country is provided for, leaving a part to be paid for in the next year.  The sum expended for the service of the year is the sum to be paid, whether within the year or at any other period, for this sum provision ought to be made within the year, or debt is incurred.  It is a new principle introduced into the financial system of this country; it is a principle which at any other time than the present, would never have been listened to, much less tolerated by parliament for a moment.