Karl Marx 
Opening of the Labour Parliament- 
English War Budget 

New-York Daily Tribune. 
Nr. 4035, 24. März 1854 

From Our Own Correspondent. 

London, Tuesday, March 7, 1854. 

The delegates to the Labor Parliament met yesterday at the People's In- 
stitution, Manchester, at 10 o'clock in the forenoon. The first sitting was, 
of course, applied to preliminary business. It was moved by James Williams 

of Stockport, seconded by James Bligh of London, and supported by Ernest 
Jones, that Dr. Marx be invited to sit as honorary delegate at the Labor 
Parliament, which motion was carried unanimously. Similar resolutions were 
passed with respect to Messrs. Blanc and Nadaud. Whatever may be its 
immediate results, the mere assembling of such a Parliament marks a new 

epoch in the history of labor. The meeting at the Palais du Luxembourg at 
Paris, after the revolution of February, might perhaps be considered a pre- 
cedent in a similar direction, but at first sight there appears this great dif- 
ference, that the Luxembourg was initiated by the Government, while the 
Labor Parliament is initiated by the people themselves; thatthe Luxembourg 

was invented with a view to removing the Socialist members of the Provi- 
sional Government from the center of action and any serious participation 
in the real business of the country; and lastly, that the delegates to the 
Luxembourg only consisted of members of the various so-called corps 
d'états, corporations more or less corresponding to the medieval guilds and 

the present trades-unions, while the Labor Parliament is a true representation 
of all branches and divisions of labor on a national scale. The success of the 
Labor Parliament will principally, if not exclusively, depend on its acting 
upon the principle that it is not the so-called organization of labor, but the 
organization of the laboring classes they have at present to deal with. 

The privileges of the now governing classes, and the slavery of the working 
classes, are equally based on the existing organization of labor, which, of 
course, will be defended and maintained on the part of the former by all 
means in their hands, one of these means being the present State machinery. 
To alter then, the existing organization of labor, and to supplant it by anew 

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Opening of the Labour Parliament—English War Budget 

one, you want power—social and political power—power not only of resisting, 
but also of attacking; and to acquire that power you want to organize your- 
selves as an army possessed of that moral and physical strength which will 
enable it to meet the fiendly hosts. If the Labor Parliament allows its time 
to be absorbed by mere theoretical propositions, instead of preparing the way 
for the actual formation of a national party, it will prove a failure as the 
Luxembourg did. 

A new election of the Chartist Executive having taken place, according 
to the statutes of the National Charter Association, Ernest Jones, James 
Finlen, (London), and John Shaw, (Leeds), were declared duly elected to 
serve on the Executive of the N.C.A. for the next six months. 

As Bonaparte's intention of contracting aloan atthe Bourse was frustrated 
by the passive resistance of the Paris capitalists, his Minister of Finance has 
presented to the Senate a Budget containing the following article: "The 

Minister of Finance is authorized to create, for the service of the Treasury 
and the negotiations with the Bank of France, Treasury bonds, bearing 
interest and payable at fixed periods. The Treasury bonds circulation shall 
not exceed 250,000,000 francs, (£10,000,000;) but the bonds delivered to the 
sinking fund are not included within this limit, by virtue of the law of June 10, 
1833, nor are the bonds deposited as a guarantee at the Bank of France and 
the discount establishments." In an additional clause itis provided that "the 
Emperor reserves to himself the right of issuing supplementary emissions 
by virtue of mere decrees," to be registered afterward by the Senate. I am 
informed by a Paris letter that this proposal has struck with horror the whole 
of the middle classes, as on the one hand the treasury bonds shall not exceed 
the sum of 250,000,000 and on the other exceed that identical sum by what- 
ever amount the Emperor may think fit to decree, the bonds thus issued being 
not even to be deposed as a guarantee at the Bank of France and the other 
discount establishments. You know that on the like amount taken from the 

Caisses des depöts et consignations 60,000,000 have been already advanced 
by the bank on treasury bonds. The mere appearance of war is eagerly 
grasped at by the Decembrists to remove the last weak barriers yet standing 
between themselves and the national treasury. While this prospect of an 
imminent disorganization of the public credit, already much shaken, per- 

plexes the middle classes, the bulk of the people will be exasperated at the 
proposed increase of the salt tax and similar most unpopular imposts. Thus, 
this war which is sure to gain for Bonaparte a sort of popularity in foreign 
countries, may, nevertheless, accelerate his downfall in France. 

That I was right in presuming the present Spanish troubles as likely to 
afford the occasion for serious misunderstandings between France and 
England, one may infer from the following intelligence of a London paper: 

Karl Marx 

"The French Emperor has made inquiries of Lord Clarendon, through 
Mr. Walewski, whether the British Government would be disposed to aid him 
in placing the Carlist Pretender to the Crown of Spain upon the throne, in 
the event of Queen Isabella being dethroned. Lord Clarendon is said to have 
declared that, happily, Queen Isabella was firmly seated on her throne, and 
that a revolution was but a remote contingency in a country so devoted to 
monarchial institutions; but that even if a revolution should break out in 
Spain and the Queen be dethroned, the British Cabinet must decline to enter 
into any engagements. 

The Emperor's proposal to place the Comte de Montemoiin upon the 
throne is inspired by his very natural desire to prevent the Duchess of 
Montpensier from inheriting her sister's diadem; for he thinks it would be 
inconvenient that he should have for a neighbor a son of Louis Philippe as 
husband of the Queen of Spain." 

In Friday's sitting of the Commons Lord John Russell stated that he was 
forced to withdraw his Reform bill for the moment, which, however, would 
be proceeded with on the 27th of April if, in the meantime, in consequence 
of the new proposal made to the Emperor of Russia being accepted, the 
Eastern Question was settled. It is true that after the publication of the Czar's 
manifesto to his subjects and his letter addressed to Bonaparte, such a 
settlement has become more improbable than ever before, but, nevertheless, 
the ministerial declaration proves the Reform bill to have been brought 
forward only with a view to absorb and appease public opinion in case 
the coalition diplomacy should succeed in reestablishing the Russian status 
quo ante bellum. The eminent part taken by Lord Palmerston in his 
ministerial intrigue is thus described by The Morning Advertiser, one of 
his most ardent partisans: 

"Lord Aberdeen is the nominal, but not the real Prime Minister. Lord 
Palmerston is practically the first Minister of the Crown. He is the master- 
spirit of the Cabinet. Ever since his return to office, his colleagues have been 
in constant fear of his again flying off from them at a tangent, and are 
consequently afraid to thwart any of those views to which he is known to 
attach importance. He has consequently everything his own way. A striking 
instance of his Lordship's ascendency in her Majesty's Councils was af- 
forded last week. The new Reform bill was then brought formally under the 
consideration of the Cabinet, and the question came to be whether it should 
be proceeded with this session or abandoned. Lord Aberdeen, Lord John 
Russell, Sir James Graham, and Sir William Molesworth, were for proceeding 
with the measure. Lord Palmerston proposed that it should be abandoned, 
and intimated, in plain terms—as we stated some days ago, thathe would vote 
for its abandonment in the House should he be defeated in the Cabinet. The 

Opening of the Labour Parliament—English War Budget 

result of the discussion or conversation, which took place, was, that Lord 
Palmerston carried his point. Those opposed to him— among whom were the 
ministerial leader in the Lords and the ministerial leader in the Commons— 
eventually succumbed. Another triumph of Lord Palmerston, within the last 
eight days, has been the appointment of Sir Charles Napier to the command 
of the Baltic fleet. It is no secret that both Lord John Russell and Sir James 
Graham were opposed to that appointment; but Lord Palmerston was for 
it and therefore ittook place. Nothing, therefore, could be more appropriate 
than that the noble Lord should this evening occupy the chair atthe banquet 
to be given in the Reform Club to the gallant Admiral." 

Mr. Gladstone presented last night to the House a novelty unknown to the 
present generation—a war budget. It was evident from his speech that the 
reason why the Government took this early opportunity of submitting his 
financial measures to the House was that of giving a preliminary record of 

the most disagreeable effects produced by war on private purses, thus to cool 
down the warlike energies of the country. Another main feature of his speech 
was his only asking for the sum which would be required to bring back the 
25,000 men about to leave the British shores, should the war now be brought 
to a close. 

He commenced by explaining the actual state of the income and ex- 
penditure of the last financial year. This not having yet closed, he observed 
that one month of the amount of the revenue could be only an estimate. The 
total estimate of the income of the year on the 18th of April last had been 
£52,990,000, while the actual receipts of the year had reached to no less a 

sum than £54,025,000; thus showing an increase in the actual income over 

the presumed expenditure of £1,035,000. On the other hand there had been 
a saving in the expenditure beyond the estimate of £1,012,000. He therefore 
calculated, that but for the peculiar circumstances in which the country was 
at present placed, there would this year be a surplus over the expenditure 
amounting to £2,854,000. 

Mr. Gladstone then adverted to the results of the reductions of duty in- 
troduced by him. The receipts of the Custom duties, notwithstanding these 
reductions, had been £20,600,000 in 1853-'54, while in 1852-'53 they had only 
realized £20,396,000, showing an increase in the Custom duties of £204,000. 
The reduction made in the duty upon tea had produced a loss of only 
£375,000. The reduction of the Stamp duties from threepence up to ten 
shillings to one uniform duty of onepence, had increased their income, 
instead of the anticipated loss taking place, to the amount of £36,000. 
Mr. Gladstone proceeded, then showing the result of the measures of last 

Session for the augmentation of the taxes. The collection of the Income tax 
in Ireland had been delayed by various circumstances, but it would yield 

irr’ 

Karl Marx 

£20,000 more than calculated upon. The extension of the tax uponincomes, 
from £150 to £100, in Great Britain would produce £100,000 beyond this 
estimate, viz., £250,000. The revenue from the additional duty of one shilling 
a gallon on spirits in Scotland had produced an increase of only £209,000, 
he having estimated it at £278,000. On the other hand, the Spirit duty in 
Ireland had realized an increase of £213,000, while he had calculated upon 
an increase of £198,000 only. The operation of the Succession duty on the 
financial year would produce only half a million. So far the statement of 
Mr. Gladstone on the finances of Great Britain during the last twelve months, 
expiring on the 5th April. 
The probable estimate of the revenue for the year 1854-'55 will be: 

Income. 

Customs £20,175,000 
Excise 14,595,000 
Stamps 7,090,000 
Taxes 3,015,000 
Income-tax 6,275,000 
Post-tax 1,200,000 
Crown lands 259,000 
Old stores 420,000 
Miscellaneous 320,000 

Total income £53,349,000 

The probable estimate of expenditure on the other hand is given as 

Funded debt £27,000,000 
Unfunded debt 546,000 
Consolidated fund 2,460,000 
Army 6,857,000 
Navy 7,488,000 
Ordnance 3,846,000 
Commissariat 645,000 
Miscellaneous estimates 4,775,000 
Militia 530,000 
Packet service 792,000 
Eastern service 1,250,000 

Total expenditure £56,189,000 

Causing a deficit of 2,840,000 

Before adverting to the means by which this deficiency was to be made 
up, Mr. Gladstone enumerated the measures which Government would not 
recommend the House to adopt. He should not return to the re'imposition of 

Opening of the Labour Parliament—English War Budget 

any of those reductions of duties he had proposed last year, which had 
already acquired the force of law. He would not assent to the re'imposition 
of these taxes unnecessarily which former Governments had released. If 
however, the struggle they were now entering upon should be prolonged for 
a year, it would hardly be intheir powerto maintain apermanent continuance 
of those reductions. In general, he would not propose any addition to indirect 
taxation. He should not resort to state-loans, there being no country whose 
means were already so heavily mortgaged as those of England. At length, 
after allthese preambles, Mr. Gladstone came to the announcement whatthe 
Government intended to propose. This was to double the Income-tax for six 
months, and to abolish altogether the existing distinction between home- 
drawn and foreign-drawn bills. The average rate of duty on present bills of 
exchange, although unequally distributed, was Is. 6d. per cent.; he proposed 
to equalize it to Is. per cent. This change, he calculated, would produce an 
increase of revenue of £60,000. With regard to the income-tax, the increase 
would be from 7 to 107,d. in the pound onincomes of £150 and upward, and 
from 5 to 7V2d. on incomes between £100 and £150. Simultaneously he 
proposed that the House should make a proposition to enable him, before 
the tax was levied, to issue £1,750,000 exchequer bills to be paid out of the 
accruing produce of the income-tax. In conclusion, Mr. Gladstone endeav- 
ored, not very successfully, to vindicate his late measures for the reduction 
of the public debt, measures which resulted, as you know, in a lamentable 
failure. 
In the discussion following upon this statement several members partook, 
but the only speech worth mentioning was that of Mr. Disraeli. He declared 
that he should make no opposition to any vote which Government, on their 
own responsibility, thought necessary to submit to the House for the purpose 
of conducting the impending war with vigor, and he hoped with success. But 
he protested, in case of the war being prolonged, against direct taxation being 
exclusively had recourse to for carrying on the war. As to the second part 
of Mr. Gladstone's statement, that which related to the actual state of the 
finances of the country, and as to the money in hand, it seemed to him 
involved in an obscurity which did not become a financial statement, and 
certainly not one delivered under such circumstances as the present one. The 
present state of the balance in the Exchequer was not sufficient or satis- 
factory. When the present Government took office, there had been, on the 
3d January, 1853, balances in the Exchequer amounting to £9,000,000, but 
a year after, in January, 1854, they were reduced by one-half. He estimated 
that the balances in the Exchequer on April 5th next would be £3,000,000, 
while the expenditure, consisting of the dividends for the payment of the 
public creditors and the execution of his conversion scheme would altogether 

Karl Marx 

require from £9,000,000 to £10,000,000. The right honorable gentlemen said 
there was no use of meeting this with balances in the Exchequer, but that 
he would make up the sum wanted by deficiency bills. He maintained that 
it was of great importance they should have had at this moment an ample 
balance but instead of its being a question whether they were to have a 
balance, or an excess of balances, it was now a question whether they were 
to have a balance at all, or a large deficiency, and in fact, instead of having 
any balance, they had an enormous deficiency, which had been caused in 
two ways by the Chancellor of the Exchequer. First, by having reduced the 
interest on Exchequer bills to IV2 per cent, when the value of money was 
rising, and secondly by his ill-devised conversion of the South Sea stocks, 
a measure which had not only eaten up his balances but left him in a present 
deficiency of £2,000,000. 

Some further remarks of an indifferent character having been made by 
other members, the Report on Supply was brought up and the resolution 
agreed to. 

Karl Marx.