Duty on Malt, Sugar, Tobacco and Snuff, and on Pensions, Offices, &c. continued Profits of Lotteries........ Monies to arise from the Sale of Old Naval and Victualling Stores............. Ditto tional Debt Ditto 22, from the Commissioners for the Reduction of the Na Exchequer Bills Funded, pursuant to Act 1 Geo. 4, c. 13 Brought from the Civil List Revenue, to replace the like Sum issued out of the Aids Repayments on account of Exchequer Bills issued pursuant to two Acts of the 57th year of his late Majesty, for carrying on Public Works and Fisheries in the United Kingdom Exchequer Bills voted in Ways and Means, 1 Geo. 4, c. 31 ... £. 29,000,000 0 0 TOTAL Ways and Means.......... 1,500,000 0 0 30,500,000 00 61,005,381 8 61 TOTAL Sums voted, and Payments for Services not voted...... 60,923,751 2 61 REPORT S. FOREIGN TRADE OF THE COUNTRY.-FIRST REPORT of the Select Committee of the House of Commons appointed to consider of the means of Improving and Maintaining the FOREIGN TRADE of the Country: Ordered to be printed 9th March 1821... The SELECT COMMITTEE appointed to consider supposed to be committed; a short reference of the means of maintaining and improv-duties, and to the circumstances attending to the laws which imposed the respective ing the Foreign Trade of the country, and the periods at which they were imposed, has to report their opinion and observations been sufficient to satisfy your Committee on thereupon from time to time to the House; this head. and to whom the report relative to the timber trade, which was communicated from the Lords in the last session of parllament, and the several petitions respecting the duties on timber, presented to the House in the present session, were severally referred; Have, pursuant to the order of the House, considered the matters to them referred; and have agreed to the following Report: YOUR Committee have deviated from the course which their former report appeared to prescribe, and instead of proceeding to examine some of the burthens that were stated to press with considerable weight upon the foreign trade of the country generally, have applied their consideration to that particular branch of it, which embraces the importation of timber from the northern states of Europe, and the British colonies in North America. This they have done, as well on account of that branch having (as appears by a report referred to them) already occupied the attention of a committee of the other House of parliament, appointed for similar purposes; as of the anxiety they understand to prevail among the commercial and shipping interests, connected with the trade in question, and the inconvenience of a continued suspense in respect to the system which parliament may deem it expedient to adopt, on the expiration of the existing law, which, according to the latest extension of it, will terminate on the 25th of March in the present year. In the imposition of the several duties, at present in force, on the importation of timber, the consideration of the legislature appears to have been directed to two distinct objects; first, to the protection and encouragement of the wood trade in the British American colonies; and secondly, to the augmentation of the revenue. Regarding them in this point of view, the first question that obviously presented itself was, to the maintenance of what part of these duties, if of any, the public faith might be VOL. V. Appendix. Although the policy of giving encourageAmerican colonies, may be inferred to have ment to the trade in timber from the British been previously entertained, from the acts 3 and 4 Anne, and 5 Geo. 3, by which boundoes not appear to have been acted upon with ties upon the export of it were granted; it much effect before the year 1809; at that time the course of events had placed our relations with the northern states (from whose territories our supplies of timber, as well for domestic as for naval purposes, had been chiefly derived) in a situation which gave rise to a well-founded apprehension, lest the resources in that quarter might entirely cease to be available for the demands of this country. Under the influence of this apprehension, it was deemed advisable by parliament to resort to the hitherto neglected though abundant supplies to be found in our American colonies, and by adequate protection to encourage the transport of them to meet the exigency with which we were threatened; to accomplish this object, a virtual exemption from duty was granted to the timber imported from our North American possessions, while a large addition was made to that levied on timber from the north of Europe; first, by the 49th Geo. 3rd, c. 98, and in the ensuing year by the 50th, c. 77, by which the duties of the preceding year were doubled, making the whole duty on northern timber, including the temporary duty imposed in the same years, for the support and during the continuance of the war, amount to 2l. 14s. 8d. per load. These duties were again augmented by an addition of 25 per cent to the permanent duties on timber, in common with all other duties of customs, for the express purpose of assisting the revenue. The whole of these duties were consolidated by the 59th of the late king, and now amount to 31, 5s. per load, when imported in British ships. From this statement it will appear, that of these duties (however they may all alike have (1) operated in the way of protection to the colo-states of Europe; that subsequently to that nial timber trade), a part only can be said to period, a great and gradually increasing prohave been intended for that purpose; viz. portion of its supplies has been drawn from those which were imposed by the acts passed the British North American colonies; that at avowedly with the object of giving encourage- present the use of the timber from the north ment to that trade, amounting to 2. 1s. per of Europe, owing to the price it bears in com load, and which may be contended to have parison to American timber, is in a great led to its extension by the application of capi- measure confined to the higher and more tal, which except for such inducement would valuable description of buildings, and to purnever have been so invested. With respect poses for which increased strength in bearing to the exemption from duty in favour of is necessary or desirable; that for less subcolonial timber, that advantage was originally stantial buildings, and for the inferior pur temporary, and has been since continued from poses to which wood is applicable, the Ame time to time for limited periods; and although rican timber and deals have been generally the persons concerned in the colonial timber brought into consumption, and although the trade may have had a just expectation that red pine of America (of which the quantity is they should enjoy for a considerable period relatively small) is said by several witnesses the advantages afforded them, as well by the to be equal in quality to the fir from the north exemption granted as by the duties imposed of Europe, yet the yellow pine, of which the by the 49th and 50th Geo. 3rd; so far from great importation consists, is stated, when used any expectation being held out that the en- in this country, to be inferior to it, except for couragement so given had been considered particular purposes and in particular situa by government as permanent, or was intended tions, fromits supposed greater liability to dryto be indefinitely continued to them,that means rot, and comparative deficiency in strength seem to have been studiously taken to pro- and durability. At the same time there is duce by explanation a conviction of a contrary reason to believe, from other evidence, that tendency, and to impress them with the as- much prejudice subsists on this head, and surance that previously to the expiration of that in Lancashire, where the yellow pine has the existing law, the timber trade would be been a long time in general use than in any brought under consideration of parliament other part of the kingdom, as well as in the with the view of introducing an alteration neighbourhood of Shields, its qualities are into the scale of the present duties, that considered as more valuable than they are should render them more equal and more generally esteemed; and there is repeated favourable intercourse with the foreign testimony, that when used in America, both states with whom it was carried on. Your in the construction of ships and buildings, it Committee are therefore of opinion that there has been found to be free from the particular is nothing which precludes the consideration defect alluded to, and of a durability equal to of these duties, nor any part of them which that of the best timber of Europe. in strictness may not be open to any modification, either in respect to the rate at which they shall continue, or the mode in which they shall be levied, that parliament under a sense of the public interest, may deem it prudent to introduce. The policy most advantageous to the country, as far as the mere supply of timber is concerned, would be, to obtain it of the best quality, and at the lowest price, without re ference to the quarter from whence it might be derived; and the course of your Committee has been to inquire, first, to what extent the operation of this policy is infringed by the system of duties now in force; in the next place, to examine how far the limits imposed on its operation are sustained by adequate considerations of expediency; and lastly, to determine whether, by the adoption of any and what alterations, the duties might be rendered, as far as circumstances allowed, more consistent with the regard due to the principle on which this policy proceeds, and generally more beneficial to the commercial interests of the United Kingdom. It appears that previously to the imposition of the duties in 1809-10, the supplies of wood required for the consumption of the country were principally furnished by the northern The scale of comparative value attached by different witnesses to the wood drawn from each particular country, will be seen in the evidence of sir R. Seppings, Mr. Holland, Mr. White, Mr. Copland, Mr. Churchill, Mr. Smith, Mr. Haigh, Mr. Bellhouse and others, to which your Committee think it sufficient to refer. That the supply of wood to meet the de, mands of the British and Irish market might be obtained with greater facility and cheap ness to the consumer (if the means of purchasing and transporting it at the lowest rate were the only considerations to be attended to), a reference to the account of the charges of obtaining and transporting it from the northern ports of Europe, independent of the duty, will leave no doubt; and although under the pressure of the duty, the demands of the country for superior purposes may have been such as to lead to the importation to a certain amount of timber from the Baltic, it yet must be obvious, that while this duty bears upon it with its present weight, it is to those higher purposes alone to which that species of timber can be applicable; and that a great proportion of wood of an inferior quality must be forced into consumption, both in avowed substitution for the superior timber in buildings, which thereby become less solid and lasting; and in a fraudulent application of it, when that of a superior kind has been contracted for, which, according to the evidence, if practised, can be with difficulty detected; expedients of this nature would probably not be resorted to, if the difference of price was reduced, and the inducement to prefer the American wood were less powerful. It appears, too, by the admission of some of the principal dealers, that the difference is at present such as to be prejudicial to the trade itself, and to bring into the market from the colonies an excessive quantity of timber of a very inferior description, both in point of quality and preparation, and that sonic alteration of the duty, calculated to approximate the relative prices of the timber from the north and from the American colonies, would be desirable, if only to confine the supply of the market to a more carefully selected and better prepared commodity. In addition to these inconveniences, the amount of the duty levied on Baltic timber, and the increased price which, under the operation of that duty, the American timber must have borne, may be considered as a bounty paid by the consumers of the United Kingdom for the benefit of the North American colonies, and the support of the superfluous shipping, to which the transport of their wood is said to afford the only employment. the export of them has been' maintained, notwithstanding the burthens imposed on the importation of this important branch of their produce into the United Kingdom. Your Committee do not think it improbable, that a diminution of the export of wood from the British North American colonies might, en the other hand, be experienced; some duminution, as far as the trade is concerned, would be desirable, and indeed can hardly fail to take place, even independent of any alteration of duties, owing to the excess beyond the consumption of the country, to which the importation has been, by peculiar circumstances, recently enlarged. The causes to which we may attribute this excess, are, in part, the prolonged expectation of an alteration in the rate of duties, combined with the desire to take advantage of the time the present law may continue, and to anticipate the impending change by the greatest possible previous importation; and in part, to the amount of shipping (greatly exceeding the actual demands of our commerce), which has been thrown out of employment by the conclusion of the war, and other circumstances, and which has been since engaged in this branch of trade, not so much because the employment was attended with advantage, as because it was preferable to the vessels lying entirely idle, incurring expense, and deteriorating in value. 38 The prudential considerations by which the As our intercourse with the northern states application of the same principle appear to must be liable to be influenced by the fluchave been limited, are, the danger incident tuations of political events; and as the exto want of competition, from the exclusion of clusion from their ports, which has been colonial timber, and from a reliance for our once experienced, may at some future period supplies on a single source: the possible recur, your Committee are apprehensive, that failure of supply from the north of Europe, in the consequences of any measure that might a moment of necessity; the maintenance and have the effect of placing our dependence for employment of our shipping, and the effect a supply of timber exclusively on those coun that might be produced on the various in-tries, might become eventually the occasion terests connected with our American trade, and the capital embarked in the establish ments for carrying it on. The same prudential considerations, in the opinion of your Committee, at present forbid any recommendation on their part, tending entirely to take away the legislative protection hitherto enjoyed by the colonial trade; but, as the extent of that protection is admitted on almost all hands to exceed the necessary bounds, they have directed their attention to ascertain to what amount that protection, and in what mode, should be prospectively con-mittee feel the respect due to an interest so tinued. In so far as any alteration introduced is favourable to foreign trade, it must have a tendency to produce an increased importation from the north of Europe, and thereby possibly to induce an increased demand from that quarter for the manufactures of Great Britain and your Committee are inclined to believe that an increased demand would be the result, as well from the desire for British manufactures that is said strongly to prevail in those countries, as from the extent to which of serious political inconvenience and danger; and by the exclusion of competition, possibly defeat the expectation of comparative cheapness to the consumers of this country. The alarms represented in the petitions from the shipping interest in various quarters, which have been referred by the House to your Committee, appear to proceed on a presumption of the necessarily destructive effects of any alteration made in the existing duties, a measure which is accordingly deprecated with corresponding earnestness. Your Com important to the power and safety of the country; and if all the weight is not given to the representations of the petitioners which they may expect, it is because the alarms expressed in them appear to be carried to excess, and the objects sought, not conducive to the general commercial interests of the kingdom, in which their own must be inseparably involved. Your Committee see no reason whatever to imagine, that the alteration which they have in contemplation, would be attended with the effect of depriving the American colonies of their due participation in the benefits of the wood trade, although it might have a mode rate and temporary tendency to the reduction of the importations from thence, and so far may, in the first instance, and for a given period, affect the interests of the ship-owners, In fact, the interest of the ship-owners is the one most concerned in the present question; while that of the colonies themselves, important as it is, is still a comparatively subordinate one. Your Committee fully concur in the wisdom of that policy which has rendered the British shipping a favourite object of the attention and vigilance of parliament; but they cannot feel that, beyond the extent which may he rationally deemed essential to the safety and defence of the country, every other consideration is to be sacrificed to that object, or that it is consistent with the public welfare, that the care due to the interests of our merchants and manufacturers, and every regard to our foreign commercial relations, should be foregone, for the purpose of supporting by artificial means a mercantile marine in a state of magnitude, at which it has arrived from accidental causes alone, and which is neither conducive to the commercial prosperity, or essential to the political security of the nation; and in which (unless by the opening of new sources of employment, or the extension of those existing), the regular trade of the country is incapable of maintaining it. Of this, the great depreciation which all property in shipping is represented to have undergone, appears to your Committee to furnish sufficient proof. The degree in which the shipping may be affected by any change that is adopted, must depend upon the influence which such change is likely to have in reducing the export of wood from the colonies. From the evidence of persons conversant in the uses to which wood is applied, your Committee collect, that for many of those uses, the wood imported from America is either indispensable, or preferable, or as good, or nearly so, as that brought from the north of Europe. In reference to the first description, are mentioned masts for ships of large dimensions, both ships of war and the more valuable description of merchant-men, which can only be found in our North American colonies, and which must therefore form a considerable article of import into this country under almost any state of duties. To the second, all articles in which facility of working, and an extensive surface and freedom from knots is required, and to whatever extent pine timber for these purposes is employed, the American wood even at equal prices would have a preference. To the last, the application to all inferior purposes, as for packing chests, and various objects in the interior of houses, or in situations where it has the benefit of a free circulation of air for such uses it may be fairly supposed, and indeed it is more than once admitted, that the consideration of mere cheapness would cast the balance in favour of the produce of our American provinces. The aggregate of these applications of timber, form a very considerable proportion of the general consumption of the country; and it appears to your Committee, that it would require something little short of equality in point of price with those of the Baltic, to ex clude the timber and deals of the British colonies from importation for these purposes. Nor must it be forgotten that the experience, obtained within the last few years, of the qualities and value of the American wood, which has had the effect of removing much of the prejudice that prevailed against it, in so far must probably have contributed to induce a permanent extension of its consumption, By the estimate of some of the witnesses, the excess of supply of American pine beyand the demand, is stated to be at present considerable, insomuch that a heavy loss is incur red by the importers. This circumstance, even under the existing duties, cannot fail to lead to a reduction in its future, importation, and of course to a diminution of employment, in the same degree, of the shipping engaged in the trade. If the effect of an alteration of duty should for a time increase the demand for northern timber, it must also undoubtedly tend to a similar consequence, not likely to be more than partially counterbalanced by a cer responding increase of demand for British shipping in the trade with the north of En rope from the ports of which a smaller num ber of vessels may be sufficient for an equal amount of importation. By a diminution of the demand from Ame rica, the capital invested in saw-mills andés tablishments in those colonies, stated at 150,000l. may be liable to some injury. It must be recollected however, that the advantage given to the American colonial trade, en which these establishments were founded, has already extended beyond the period on which those engaged in it had any right to calculate; and having speculated on their own views of public policy, they can have no just ground of complaint, in the event of parliament taking a different view of what, that policy requires, and subjecting these duties to some modifica tion beyond the expectation which they had formed, To the Canadian propriety, the principal value of the timber trade appears to consist in the employment it affords to the persons concerned in agriculture and their servants, during a certain period of the year, in conveying the wood from the places where it has been felled, to the places from which it is to be conveyed to the ports of export; while the part of the business which belongs to cutting and rafting, is in many instancos performed by axe-men passing fromthe United States for this purpose, who are understood to be more expert in these operations than the Jabourers of the British territories. |