that the production of shipping bills, or Customs bill of lading, and ship's manifest can be obtained by other means.

As to the operation of these charges upon the trade and commerce of the country, the testimony of the mercantile witnesses was unanimous in describing them as obstructive, vexatious, expensive, and unequal.

In regard to the charge on imports, your committee refer to the valuable evidence of the Chancellor of the Exchequer as to the reasons for its imposition, and to the practical experience of its working, which have induced the distinct declaration from him that the principle of this tax may be considered as abandoned.

On reference to the tariff of units of entry delivered in by the chairman of Customs, it will be seen that it contains a greater number of items for taxation than the national tariff, the detrimental operation of this second tariff being still further increased by any variation in its items which may be made from time to time, thereby exercising a prejudicial effect upon the general commerce of the country; and in regard to the 18. 6d. stamp on exports, it appears by the evidence given on behalf of the important and rising ports of Southampton and Hull, that it presses with considerable severity on all the smaller items of our rapidly increasing commerce by steam transit; while at the same time there exists great facility for its

evasion.

Notwithstanding the annoyances that were, on all hands, matter of complaint, there was an equal unanimity in the statements as to the able and conciliatory manner in which the officers of Customs had constantly endeavoured to collect these obnoxious rates; the objections being mainly directed against these small charges on trade and commerce, rather than to the mode of their collection.

Your committee were unable to obtain any positive information as to the total cost of procuring statistical information; the monies expended for this object by the Customs were stated at about 27,000l. per annum, and by the Board of Trade at about 4,000l. per annum; but as these sums represent only salaries paid to the officers and persons employed in this department of statistics, they are obviously a very insufficient measure of the actual cost to the country for this information.

According to the last Parliamentary Return, the tax on imports yields about 138,000l. per annum, and on exports about 43,000l. per annum, representing in the aggregate an amount altogether insignificant, when compared with the trouble, obstruction, and annoyance caused by their imposition. The evidence which has been obtained fully sustains the acknowledged principle of sound taxation, that the tax should produce the revenue required with as little annoyance to the payer as possible.

Your committee are of opinion that these small charges on commerce are unwise and inexpedient, and recommend their abolition.

The chairman of your committee has prepared an abstract of the evidence affecting the more important points referred to your committee, which is appended to their report.

The following is an abstract of the evidence referred to in the foregoing report:

:

1. As to the Value of the Charges imposed (Customs Act, 1860), for obtaining improved Statistical Information.-The Right Hon. W. E. Gladstone, M.P., Chancellor of the Exchequer, would not trust his memory precisely with regard to the degree in which a statistical benefit was con

templated in connection with the penny inwards. The plan originally proposed for the penny tax inwards was of an exceedingly simple character; because it was proposed to levy it upon goods generally, taking the unit of package wherever it was a package, and the unit of weight and bulk wherever it was in weight and bulk, a simple sum of one penny; and the belief with which it was proposed was, that it might be levied upon the delivery of the goods from the ship without any process of subsequent account. The character of the plan was changed in a very important degree as it went before Parliament; in fact, the simple plan broke down because it was found that the number of packages, of very small value, on which the penny would have constituted a sensible tax was such that it could not be applied; it then assumed a totally different character, which made it, without doubt, much more inconvenient to the trading community. Mr. Ewart rather believed that it made it more useful for statistical purposes; but that was a point on which witness would rather refer the committee to others for information; inasmuch as witness has no official connection with statistics, or any right to give an official opinion of the value of any particular measure for statistical purposes. The Board of Trade as the department of the executive government, which is conversant with the statistics of the Customs, is the board which actually collects such statistics, and is the source to which witness would respectfully refer the committee, but witness apprehends that the charge of one penny inwards, while it was materially worsened in its essential character by the change it underwent during the discussion in Parliament, probably became more valuable for statistical purposes than it would have been if witness had been able to carry it into effect as originally projected. With regard to the tax of 1s. 6d. on bills of lading: the history of the charge, so far as witness can call to mind, is that originally a penny charge was contemplated outwards as well as inwards, but it was found that it could not be applied. In the case of the outward trade of the country, there was no doubt upon the mind of the Government that a very important object existed; that there was a great defect to supply in our statistics, which were notoriously and grossly inaccurate; there was no adequate motive furnished to the executive to secure any approximation to the truth, and the matter did require attention, if they were to set out with the idea that statistical information is of such value as to justify both the imposition of a considerable charge upon the public, and likewise the imposition of considerable labour upon the mercantile community in order to obtain it. Therefore as regarded the trade outwards and the charge outwards, the obtaining of statistical information was a vital part of the whole measure. By means of this charge on bills of lading, the Customs have been enabled to secure very minute specifications of cargoes outwards, and to make some approximation to accuracy with respect to our export trade. Mr. Gladstone was not aware that there is now any new document, but believes that the manner in which the document is prepared is totally different. He believed it to be now prepared with considerable care and accuracy, instead of being dealt with at random and hap-hazard, without any precision at all. Mr. Gladstone's impression is that the legal provisions for the returns before were sufficient, but that it was impossible for the Customs to enforce them upon documents with regard to which they had no financial control. Mr. Gladstone believed that the 18. 6d. stamp does give them more control over the accuracy of the document than they formerly had.

Sir T. Fremantle, chairman of the Board of Customs, said that the penny tax inwards is extremely valuable for the statistical returns of the country, and if further extended, or rather modified, it might fill up the deficiencies which now exist; the officers having now to collect the returns from the merchant in order to check the penny, so that very considerable improvement is made: the same difficulty now exists as formerly in regard to goods in packages, because as the penny is paid upon the packages, the Customs are unable to obtain an accurate return of the goods inside the packages. When no duty is involved, statistics are not to be relied upon; but when there is a small charge, general correctness is insured. Unless a tax of some sort is to be levied, the officers neither would be disposed to apply, nor would have the means of applying, to the importing agent, and getting correct returns. Stamps are the simplest way of collecting the duty. Bills of Lading.-The adoption of the new system has tended to render the statistical information with regard to the export trade much more accurate. Sir T. Fremantle was inclined to think that it approaches such a state of accuracy as to be broadly reliable, and witness is unable to suggest anything by which more accuracy may be obtained. As regards the practice of the Port of London, witness's impression is, that the system of lodging bills of lading while the goods are in course of shipment, the manifest being examined afterwards, gives the statistical information which is required. The change in the mode of clearing goods for exportation since 1860 has been beneficial as relates to the accurate collection of statistics, because the Customs' bill of lading is required to give certain particulars which there was not the same means of obtaining under the former document, and the accuracy of the bills of lading is checked by the requirement of the manifest of the ship, which was not formerly required, but now they are enabled to check the correctness of the entries for the statistical accounts. The previous practice, as relates to exports, was in a great measure unsound and illusory; the present system is more sound, and approaches as nearly to accuracy as is practicable, and is sufficient for its object. Mr. F. St. John, surveyor-general of customs, London, thought that under the manifest and the stamped shipping bill, or the Customs' bill of lading, much greater accuracy is obtained now than formerly. The 1s. 6d. duty has considerable influence on the correctness of the returns, in inducing the officers to pay more attention. You cannot find the merchant to give accurate information, unless the charge is put on.

2. As to Inutility of the Charges for obtaining greater Accuracy than formerly in Statistics.-The Right Hon. W. E. Gladstone, M.P., admitted that there is not the same necessity in regard to imports as in the case of exports to maintain the tax with a view to the correctness of the statistics. He did not know that it matters how many shipments are combined in one bill of lading, as far as statistics are concerned. Sir T. Fremantle said, with regard to goods which come in packages, we are under the same difficulty now in ascertaining the contents of the package having obtained the penny, the officers are quite powerless in collecting an accurate return of the contents of the cases, except where they contain dutiable articles. Very great inaccuracies still occur where we have the penny charge upon the packages, and where we have not commuted it for a unit of entry; to make the scheme complete, we ought to have a unit of entry for all the importations of the country. Generally we cannot rely upon the accuracy of the information when the charge is

levied upon the package. So that, to that extent, the penny tax fails in respect of its statistical information. And, with regard to all dutiable articles, the information for statistical purposes can readily be obtained through other sources. Sir T. Fremantle's belief was, that the statistical information obtained in the two largest ports in the kingdom was not correct, although we did impose the penny tax for statistical purposes. In regard to the 18. 6d. on the bills of lading, in fact we rely upon the general accuracy of the broker for a very important portion of our statistical information; provided he pays the 1s. 6d., and states as much as will pass muster, that is accepted. We rely upon the broker, because he is the person deputed by the merchant to do the business. Speaking of tobacco: with regard to free goods, we take the wharfinger's account; but with regard to dutiable goods, the officer stands by the scale. The information derived from the penny unit of entry we obtain from our own books, and therefore with regard to this penny stamp it is useless in a statistical point of view. So far as packages are concerned, Mr. F. St. John was not prepared to say that there is the same degree of accuracy as to their contents as in other goods; we accept generally the account of their contents which is given by the exporter; the Act of Parliament requires that the shipping bill or the Customs' bill shall give those particulars, and they are always furnished; but they do not practically yield accurate information with respect to the contents of the packages, so that to that extent our information for statistical purposes is still somewhat illusory. Prior to 1860, we required the shipping bill, and if we had had power to call for the manifest, we would have known of all the goods on board without any 1s. 6d. stamp. The weight of goods which come under the unit of entry is ascertained at the respective wharves or warehouses where they are landed, without reference to the penny stamp for the unity of entry, consequently that information comes to the Customs, whether the penny stamp is imposed or not; it involves sending an officer to look after it; we send an officer now, and we could do so in case there was no penny stamp, and he would doubtless follow out his instructions, and bring back the weight. In order to charge the unit of entry, we are not obliged to weigh everything; we can get the account from the wharfinger. The merchant must have his goods weighed for sale, and we take that account; or if the goods are delivered direct from the ship, we ascertain on what freight has been paid, and adjust the thing in that manner.

Mr. H. Caulier, principal searcher, Customs, London, said that the difference between the plan which now obtains for procuring statistical information, as compared with that in 1859, is, in the port of London, simply the addition of a 1s. 6d. stamp to a shipping bill, such as was rendered before; nothing more. At the outports it is rendering a Customs' bill of lading, instead of the shipping bill after shipment; practically, there is no alteration, except that we now put on the 1s. 6d. stamp. In the case of the John Bull steamer: although witness discovered that there were five additional consignees to that mentioned in the bill of lading, and thereby obtained 7s. 6d. more stamps, he did not by that means procure any better statistical information. They had correct statistical information previously. We always accept the declared value of the goods, unless we have cause to suspect inaccuracy.

Mr. Brion Scotney, custom-house agent, said :-In entering free goods on importation, we give, as a description of the goods, the best information we

can get from the bills of lading. This we obtain from the agent on the other side of the water. We do not obtain any weight at all; if we did, we could not rely upon it; the bill of lading and the letter of advice do not always agree. We could not pay any regard to weight, because our merchandise is generally mixed cases. We cannot obtain satisfactory information with regard to what the packages contain on which the penny is charged. Mr. Scotney thought it is impossible for the custom-house to give a correct return of free goods. We endeavour to make the return a fair one, but we could not, unless we were to go into a minute examination, and then our customers would not submit to the delay. More accurate information might be obtained by decreasing the numbers and details of the import rates. We say that you cannot obtain a correct return, because you have so many rates that we cannot comply with. It does not concern the merchant at all; but Parliament requires proper returns, and those returns are valueless, because they are so inaccurate. We do not know what is inside the packages when exported: so that, in fact, we have to rely upon the exporters for the information they choose to give, both with regard to the contents and the value of the goods exported. But that information is given quite irrespectively of the stamp. Mr. Frederick Thomas Cowley, customhouse agent, thought there was very little reliance to be placed upon the returns now made from the entries of goods in packages, and that it would be impossible to extend to such goods the mode of collecting the nominal duty by means of the unit of entry; it could not be done unless there was a thorough examination of each package: the unit of entry does not enable us to obtain correct information, although it is more correct than that obtained by the package: does not think the abolition of the charge would make any difference in the information: the imposition of a nominal duty certainly does not assist the Customs in collecting correct information with regard to imported goods. Mr. Samuel Eli, Pickford's agent, thought it would be possible to obtain the details required by the Government of the nature of the goods exported without the inconvenience and trouble of the stamp, by requiring the particulars to be filled in, in the bill of lading and in the shipping bill, the same as is now done in free entries upon imports. Mr. Eli did not think the stamp duty assists at all in the operation of collecting correct information, because the stamp is not upon the quantity of goods, but upon the bill of lading itself; if it was an ad valorem duty upon the goods, rated according to the quantity, there might be some expectation of obtaining correct statistics. If the 18. 6d. stamp on bills of lading for exports was abolished, the goods would still be fairly described in the shipping note for statistical purposes if the Customs required it.

Mr. E. Berger, merchant, London, did not think the 18. 6d. bill of lading stamp at all insures any greater accuracy than before in the statistics, because the 1s. 6d. is no inducement either the one way or the other to make the shipping bill entry other than it was. The Customs have no greater means of ascertaining whether the contents are or are not what they are said to be. The shipping bills are precisely the same as were used before 1860; the only addition is that we have to pay 40,000l. by the putting on of that 1s. 6d., which is not a clear gain to the revenue by any means, because there is the staff required at the Custom-house to check it. There is no machinery in the exacting of the 1s. 6d. which insures one particle more accuracy for statistical purposes than was obtained previously

to 1860.