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 The financial system of the United Kingdom. 
 London, MEtcmlllaa, 1914. 
 
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•FOB T Iin* A B TOC 
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 Graduate 
 SCHOOL OF BUSINESS 
 
 TUB SEUCSMAM UBHAMT OP BCXJNOMICS 
 
 PeiCHMID If Till. UMVniRT 
 1929 
 
1 ills r IIM AIM CI ALf o i o 1 ISIVI vJr 1 HIS 
 
 UNITED KINGDOM 
 
MACMILLAN AND CO.. Limited 
 
 UWOON • BOMBAY • CALCUrrJI 
 MBLBOUJINB 
 
 THE MACMILLAN COMPANY 
 
 mW ¥01K . BOSTON • CHICAGO 
 DALLAS • SAN .FRANCISCO 
 
 THE MACMILLAN CO.. OF CANADA, Ltd. 
 
 TOIONTO 
 
 i 
 
 FINANCIAL SYSTEM 
 
 OF THE 
 
 UNITED KINGDOM 
 
 i 
 
 BY 
 
 HENRY HIGGS, C.B. 
 
 » • • » • , . • • * • » 
 
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 MACMILLAN* AND CO., LIMITED 
 ST. MARTIN'S STREET, LONDON 
 
 1914 
 
[4 iTOt' 3 
 
 OOPYMOBf 
 
 PKEFACE 
 
 This volume was prepared at the suggestion of the 
 late Sir Edward Hamilton, who had in vain cherished 
 during a Ufetime in the Treasury the project of 
 publishing a connected account of our financial 
 procedure, which he believed to be much needed by 
 members of Parliament, by Government Departments, 
 and by the pubhc at large. Want of leisure compelled 
 Mm to defer the execution of his plan until his retire- 
 ment from the service, when he hoped to treat the 
 subject with greater freedom of comment and criticism 
 than were permissible in an active official. But on 
 his retirement his health was too broken for the task 
 for which he was so exceptionally qualified. 
 
 In attempting to observe his wishes I have hmited 
 myself, so far as possible, to describing things as 
 they are here and now, not as they have been, as 
 they might be, or as they are in other countries. 
 
 All that is offered is a summary exposition of our 
 financial system, its organisation, methods, and forms 
 of procedure. So far as I am aware nothing is here 
 stated which is not to be found in various official 
 pubHcations, the Statutes, the Standing Orders and 
 Debates of Parliament, the Reports of PubHc Accounts 
 
¥i 
 
 THE FINANCIAL SYSTEM 
 
 Cbmiiiittees, iSelect Committees, and Royal Commis- 
 »ois, in, papers and acoonnts predented to the House 
 of Commons, and in such works^ m Sir Erskine 
 Ma/s Tf&xlisB m ^ Lm^ PfwHegm^ PmmMngSj 
 mid Usages qfPmUammi, Sir C. P. Ilbert's Legislative 
 Meikds and Forms, A, Todd's PmtUammimy Gomm- 
 mma m England, Professor Redlich's Proceiwe in the 
 H'mme ofOmmmom, Sir W. .Anson's Law and Custom of 
 
 OoiM^liiliofi, Lord 'Halsbnry's Lam ofEnghmd, and 
 President Lowell's Govemmeni of England. Articles 
 upon particttlM' topics of 'inanoe have from time to 
 time been written by active Treasury officials, e,g, 
 by Sir E. Hamilton, ,Mr. W. BM^n, and ,Mr. Stephen 
 Spring-Rice in the Emydopaedia Rtitanndm, and 'Mr. 
 6, H. Hunt in the EHcttomMry of PoMimd Eamomjf, 
 bnt the materials for a complete study have not 
 hitherto been brought together in a complete form. 
 
 It has faUen to' my lot to be called upon to explain 
 our fnancial system to official and unofficial visitors 
 from. .Europe, Asia, and America, wd to be respo^nsible 
 for oiering officidi'^iivioe ■upon financial organisation 
 to Governments in the South, .and the North of .Africa. 
 A difficulty always encotmtered even with the best 
 informed may be. illustrated by the experience of the 
 late Professor .Henry Sidgwick, who found it eaay to 
 follow Lord Goschen's claasical exposition of the 
 Theory of the Foreign Exchanges and to' understand 
 the explanations of authorities in the City, but 
 'Complained that .he had never been able to link 
 together theory and practice. In the text which 
 foHowB I have endeavoured to connect the forms, and 
 
 PJ^.£1 F./V^I£< 
 
 documents printed in the Appendix with actual 
 practice, so as to show how our financial organisation 
 marches, and have contented myself with indications 
 of the sources to which students may turn for a 
 further development of the topics dealt with. The 
 Appendices are in themselves sources which have 
 enabled me to abridge the commentary within 
 narrow limits. No apology is needed for setting 
 them out at length in what German authorities would 
 call an essay in Formal-Financial-Administration. 
 
 Though this volume is in no sense official, I have 
 carried reticence to the point of refraining from 
 comment even upon the infiuence which forms may 
 exercise upon administrative efficiency and financial 
 policy. A good example of such a discussion will be 
 found in Mr. Sidney Webb's Grants in Aid : a Criti- 
 cism and a Proposal, 1911, which exceeds the length 
 of the present commentary in enlarging upon a subject 
 here confined to a few lines. The present work is 
 too condensed to be interesting. It must suffice for 
 the present if it is found to be useful. 
 
CONTENTS 
 
 CHAPTER I 
 
 TBM BfiTOMATBS: PeIPABATION AND PeBSBNTATION . . 1 
 
 OHAPTEK II 
 
 ThI COMSOUDATID FUHB AND THB ExCHEQUMt . . Ig 
 
 CHAPTBE III 
 laHii4«i8 nr Pahhamiiit 25 
 
 CHAPTER nr 
 
 Thi Budokt anb tbm. Vmrnm Bna. . . 07 
 
 CHAPTER V 
 I^AMca Axxxmwm ^ 
 
 CHAPTER VI 
 
 Thb Audit Ofmcii, tsm '^AYMASTm^wmmMs, amd Ptouo 
 Aooomnmrn . . 
 
 • • • • • 00 
 
 CHAPTER Vn 
 
 Thb Teeastoy ^ 
 
 *_ 
 
THE FINANCIAL SYSTEM 
 
 €HAP'T1B ¥111 
 
 Tm Nahomm. Debt; Baiws of EwHaAiro ato laiiuyro . 89 
 
 O'HAPTBR IX 
 .Poiiiw WoEKS Loans and Smoiai. Agooumts . 06 
 
 APPBNDICBS 
 
 1, EzcMiQtniB ATO Atoit Depabtmiiits ,Aeif, I8IW» .aw>' 
 
 Tebasubt MnfUTE thereon . . . .103 
 
 % Fvmsm Aommm. job Ciiaiiqm Aut, 18»1,, & S. , 132 
 
 3. EsmiAn OiEOTiAi, 1912-1913 . . . .134 
 
 4 .Ijw of ¥ofw . ; . . . . , 
 
 & CSoiiliaDATED Fund (No. 1) Bill, 1912 . , .147 
 
 a •Odksuhdaot Wmm (Awiobbaww) .Am, 1912 . 149 
 
 7. toKifS AOTHOMBrao AND oaANmro Cebdits and Bx- 
 
 CMEQUEB Issues I8I 
 
 8» Tmummr Mmrnm o» Urn May 18S9 HM-nifa to 
 
 'XBiAstniT .Bua 189 
 
 9. BxcKBQiTiB Bond .... . . 190 
 
 M Kahomai. Bmwp (8111KI110 'PuiffD) Act, 1875 . . 197 
 
 11. Sf AHDiNo Q»Dii»s ojT THE HousB OT Com OKS ON ImAjroiii, 
 BwaiNEss .... . ,. , 
 
 l^^mMMmMmmMTM . . ., . ^207 
 
 18.^ .flficiMBN ArraoHUATiON .JuxMJmm .... an 
 
 14.. Wmommmmt Am, 1911 ...... 214 
 
 INDEX 
 
 ' 217 
 
 CHAPTER I 
 
 THE ESTIMATES : PEEPABATION AND EEBSIHTATION 
 
 The financial year of the United Kingdom begins on 
 the 1st of April (17 & 18 Vict. c. 94, s. 2}.^ The 
 preparation for it dates from the preceding 1st of 
 October, on which day a circular 2 is issued by the 
 Treasury to the various Civil Departments of Govern- 
 ment, including the Revenue Departments, requesting 
 them to furnish on or before the 1st of December 
 Estimates of their financial requirements for the 
 
 ^ As w« ihifcU find other dates for certain financml periods it may be 
 oonTenient heze to state that from tlie earUest times on rocord the yearly 
 acoomnts of pnbHo receipts and ezpenditnie of this oomntry were made np to 
 Michaelmas. In 1786 the accounts weie also made up as a supplementary 
 statement to the 6th January (Old Christmas Day). The 6th January wm 
 formally adopted as the end of the financial year 1799-1800. In 1832 the 
 annual Budget, formerly made up to the 6th January, was presented by 
 Lord Althorp for the year ending the 6th April, but Supply was taken up 
 to the 31st March only. Though this practice was continued for the annual 
 grants, the financial accounts were still made up to the 5th January and 
 there were thus three different "years" for fimincial purposes, unk in 
 1854 the 1st of April was made the beginning of the financial year by 
 
 i pLTi^ f , ™' fP'' y*^*')' ^^^^ known 
 
 m Ohisholm B AfMlyats of ikt Public Accounts, 1688-1869, is a mine of 
 
 iifbrmation for the historical iliident of our financial system 
 
 mn ^ ^ Appendix III. The 1st October 
 
 1911 faUmg on a Sunday, the oircukr was issued on the 2nd. 
 
 I u 
 
 13 
 
2 THE FINANCIAL SYSTEM chaf. 
 
 ensttiBg financial year. If the Estimates cannot !» 
 mt mt in aU the required detail before the 15th of 
 :Deoeniber, approximate 'totals are required by the 
 Treasury on or before that date, in order that the 
 Chancelor of the Exchequer may ascertain the prob- 
 able total of the amounts which he will be required 
 to provide for those services. When the preparation 
 an Estimate is delayed by ex«5eptional, drcnm- 
 stances, or questions affecting it are^ still ontstandi,ng, 
 an Estimate framed on the basis of existing authorities 
 is required to be sent to the Treasury on or before the 
 18th of January, after which date no .Estimate or 
 •alteration of an Estimate can be received. A Depart- 
 ment which neglected its obligation to forward the 
 Estimate by this, date would run the risk of being 
 left out in the cold imless the Treasury presented, 
 an Estimate framed by itself, as was done with the 
 Estimate for the House of Lords Offices laid before 
 the House^ of 'Commons^ in ISM in the mmB form as 
 tie Estimate for the previous year.^ 
 
 When forwarding' 'their detailed Esti^mates to 
 the Treasury, Departments are required to quote 
 'the ^Treasury authority for^ any variations from, the 
 precedi:ng' Estimates in respect of numbers of persons 
 employed, scales, of salary, rates of wages, new 
 .services, ete,., and to explain the causes of vari.ation 
 in estimated requirements under each sub-head. The 
 amounts ,granted duri.ng ^each of the last two years 
 and expended during each of the two financial years 
 
 »• .See Mmm <|f ■ Cmmmm Faptr m <jf ' IBS for ■an eiplanation o! the 
 
 I 
 
 THE ESTIMATES 
 
 3 
 
 last ended, and the half-year to the 30th of September 
 last, are also noted for comparison, as well as any 
 receipts for the same period. The statemealiB of 
 Pensions granted and ceased are made up to the 
 aoth of November. Ejqienditure requiring special 
 Treasury authority is not to be included in the 
 Estimate in anticipation of such authority, and if 
 for any reason it is printed in the approved Esti- 
 mate this does not dispense with the need for formal 
 Treasury sanction for the expenditure at a later date. 
 The Estimate when it reaches the Treasury is checked 
 against ti.e Treasury autO^orities qnot^ and the 
 Treasury records. It is also scrutinised in the light 
 of experience of past years in order that it may be 
 made to correspond as closely as possible with the 
 probable requirements of the Department. It is 
 the duty of the Treasury to see that the provision is 
 economical and sufficient. To frame unduly high 
 Estimates of expenditure would weaken Parliamentary 
 control, would add to the difficulties of the Chancellor 
 of the Exchequer in ordinary years, and would result 
 in an unnecessarily burdensome scheme of finance. 
 On the other hand, inadequate provision would 
 necessitate a further application to Parliament and 
 would be still more disturbing to the settlement made 
 by the year's Budget. It is therefore not uncommon 
 for the Treasury to modify the Estimates first sub- 
 mitted, either by addition or by reduction. Official 
 and semi-official discussions take place with regard 
 to most of these modifications, but f ailii^ resort to 
 the Cabinet, the last word rests with the Treasury, 
 
HE FINANCIAL SYSTEM chaf. 
 
 wWch approves the gross and net total of the Estimate 
 subject to any alterations which may become 
 
 smj before its 'pile:iitation to Pafiiament. 
 
 A special proceduf e k resorted to in the cam 
 of the EstimaL for PnbUc Works and Bmldings. 
 
 .Before these me .settled,, sketch Ijsti.mates are pre- 
 pared, hj the Mrst C^trnmissioiier of Works (for Great 
 BritaiE) and the Comimssioaers of PubUc Works for 
 
 onal, eonf ere&ce between, these authori- 
 ties and the Mnanoial Secretary to the Treasury 
 'takes place for the consideration, of these pro- 
 pammes, and .after discnssion of the more dubious 
 or less nig^nt items provisional totals are settled to 
 which these ^Departments work in their deinitiire 
 
 The Eistimates for the CiYil iSerrices and the 
 Revenue Departments when finally approved by the 
 'Treasury are agned by the M:nancial Secretary to the 
 
 1^ ^ P«»id b. Hi. mi«^,Z^ 
 
 to the House of Commons, together with a memo- 
 random explanatory of the principal changes in the 
 
 several Votes for the year and of any considerable 
 variations over a period, of years. The earoenditnre 
 te ten years (the iL two ^Tated) is sZnarised 
 
 for each Tote in separate tables. 
 
 Each class of the CSvil Service Estimates and the 
 memorandum is at first issued separately, but subse- 
 qiiently the whole is^ brought together in. one volume 
 with an index. The Bevenue Department Estimates 
 (not issued, in .separate classes) form mother volume. 
 'The Mnancsial S^ecretary's memorandum upon, the 
 
 I THE ESTIMATES 5 
 
 Bevenue Estimates is included in the volume of 
 Qvil Service Estimates. 
 
 The Estimates Circular is not sent to the Admiralty 
 or to the War Office, which have considerable financial 
 Departments of their own. The requirements pro- 
 visionally formulated by the naval and military 
 advisers respectii|r are translated into money by 
 those Departments, the Krst Lord of the Admiralty 
 and the Secretary of State for War confer with the 
 Chancellor of the Exchequer upon the amount to 
 which he is ready to assent for their services, and the 
 total is finally settled by the Cabinet. When the 
 approximate total figures of expenditure are agreed 
 for each service, the Board of Admiralty and the 
 Army Council settle their detailed programmes 
 accordingly. The several Navy Votes and Army 
 Votes are submitted one by one to the Treasury with 
 explanations and a request for their approval. Dis- 
 cussion sometimes arises over points of detail, but, 
 these Estimates depending largely upon policy, and 
 the various totals having been ahready settled, the 
 Treasury departmental examination is less profound 
 than in the case of the Civil Estimates. When the 
 Estimates for the %hting services are approved by 
 the Treasury they are signed by the Board of Admir- 
 alty and the Army Counci respectively, and are 
 presented by His Majesty's commands to the House 
 of Commons, with a decennial table of expenditure 
 and statement of the principal differences from the 
 current year's Estimates. A fuller memorandum, 
 explanatory of these Estimates from the policy point 
 
i rl M* 1 JN, AN C I ALi 5' ¥ o 1 n M chap. 
 
 of view, is separately presented by the Minister at 
 the head of each .Department.^' 
 
 There are thus four volnmes of annual Estimates 
 for the Mavy, the Army, 'the 'Civil. Service, and the 
 Revenue Departments respectively. 
 
 By resolution of the 19th of Febraary 1821 the 
 of CommonB directs that whenever Parliament 
 ^aasembles 'before Ghiistmas. the Navy, .Army, and 
 Ordnance Iktiuiates^ should be presented before the 
 lith day of January then next following, and that 
 such .Estimates should, be presented within ten dap 
 after the opening of the Committee of Supply when 
 Parlament does not meet 'tiU. after Christmas. The 
 directions given by this resolution are observed, as 
 far as possible, not only by the Naval and Military but 
 also by the Civil. iService .and Revenue Departments."' 
 
 The Qvi Service Estimates are divided into 
 'tticht classes i * (1) PubEe Works and Buildings, 
 (S) Salaries and .Expenses of Civil. Departments, 
 (3) JLaw and Justice, (4) Education, Science and 
 Alt, (5) Foreign and Colonial Services, (6) Non- 
 eiective and Charitable Services, (7) Miscellaneous, 
 (8) Insurance and Labour Exchanges. 
 
 1 A full deeoription of the meHiods by whioli tlw Eatimains are pra|Mured 
 in Mm ▼arifiiii I)e|Mirtiiieut8' «d oheokfid in. tlie Ttoasuiy will be found .in. Ibe 
 wmimm' kid bef on tbO' Soleot 'Committee on .Hationiil Szpenditiui} in 1902 
 and. 1903, Mmm of Cmmmmm Fojm§ SS? o/ im mni S|i o/ IBOS, Bm 
 etpeoiaUy pp. lil*S, 197-8» 211^221 of puper SS7 and pp. 13-15 of paper 
 Befeienoe: may .also be made^ tO' tbe evidence' given bj Sir E. Chahneci' before 
 'ibe Sttleet' Cbmmiltee on .Kstimates {f '77 of Mli}, m 'to tbe pioeeduie by 
 wMA a total, it ixed. for Army .and Mavy Estlm.atei. 
 
 * ^liayt FmHtmm^orif Fmclm, 11th ed.» p. 1146. 
 ^Bedueed. to aeiran. 'in .ltl# by a :ittanRingem«nt of dasaes. ¥!.» VII., 
 :aiid Vni. 'intO' 'two. 
 
 THE ESTIMATES 7 
 
 sions make it possible to compare groups of national 
 expenditure over a aeries of years, but are not otherwise 
 of practical significance. The Revenue Departments 
 Estimates are arranged in three classes : (1) Customs 
 and Excise, (2) Inland Revenue, (3) Post Office. 
 
 Each class of the Estimates comprises a number of 
 Votes (see Appendix IV.). Votes are divided into 
 sub-heads, while many of the sub-heads are further 
 divided into items. The arrangement of the Esti- 
 mates rests with the Treasury, which, however, 
 consults the Public Accounts Committee before 
 making any important changes of form. 
 
 Each Estimate consists of three parts. Part 1. 
 is in the form " Estimate of the amount required 
 during the year ending 31st of March 19 to pay 
 the salaries and expenses of " the Department named. 
 References are added to any statutes which constitute 
 or throw speciic duties upon the Department, and 
 then follows the total amount of the grant required. 
 Part 11. is a table of the " sub-heads under which the 
 Vote will be accounted for by the ( ) Depart- 
 
 ment." These sub-heads are indicated alphabetically, 
 thus— Sub-head A, Salaries, Wages, and Allowances ; 
 Sub-head B, TraveUing ; Sub-head C, Incidental 
 xifenses, etc. Sometimes a self-contained group of 
 sub-heads is inserted to provide for a distinct branch 
 of services the cost of which it is desired to show 
 separately. In such cases the headings Salaries, 
 Travelling, and so forth may reappear,^ Against 
 each sub-head is stated the amount required during 
 
 ^ For tbe form of an Estimate see Appendix XII. 
 
8 THE FINANCIAL SYSTEM 
 
 m ywir, and in another colnmn k shown for compari^ 
 aon 'the amoiint .granted for the corrogponding service 
 during the previous session. It would not be possible 
 tO' make the comparison with the total sums granted, 
 np to the close of the financial year, as the Estimates 
 for the following year are usually closed before the 
 final, Supplementary Yotes. ,are taken. When the 
 totals in Part H. have been modified by Supplementary 
 Gianta^ ,in the previous session a footnote is .added ,in 
 '4she ,f orm .: 
 
 f otd original Met litinmte, 1918-1913 . £ 
 AM Supplementary Estiinatie 
 
 Further columns .give the iiflceaae m decre^ase for the 
 year. If it is ,intended. 'that services, provided, for in 
 ■the current year under one ,sub-head should in future 
 be classified under another sub-head of the same 
 ,Ij8timate, 'the figures in the oripnal sub-head for the 
 current year are reduced, ,and those in 'the second 
 ,sub-head increased, .accordingly, in 'Order that there 
 may be a comparison of like with like, and the fact 
 :is, noted on, the Estimate. The transfer' ,may, ,however, 
 be to or from another Vote. In such cases the 
 modification of the total, in Part' IL is. axplained in 
 the form ! 
 
 Original Net ,iEstiiiiate, 1912-191,3. ,. £ 
 JMiM 'f zaniftt U Ckm ( ) ¥ote ( ) 
 or JM Transfer from, daaa. ( ) Yote ( ) 
 
 Subject to 'these modifications by Supplementary 
 ,I!8ti,mate8, or by transfer between sub-heads or 
 
 I 
 
 THE ESTIMATES 
 
 9 
 
 between Votes, the figures for the current year agree 
 with those presented in the last volume of Estimates. 
 Items which appear for the current year, but for 
 which provision is not needed in the next year's 
 Estimate, are printed throughout in italic words and 
 nirures. 
 
 The account is divided into sub-heads merely for 
 purposes of comparison of classified heads of expendi- 
 tures, and may be said to be appended to the Estimate 
 for information, and to f aciUtate control and intelligent 
 study of the expenditure. In other words, ParUament 
 votes the total but not the sub-heads, and the 
 Treasury is empowered in its discretion to sanction 
 the application of savings on one or more of the 
 sub-heads to meet excesses on others if the total 
 expenditure falls within the grant. In the same 
 manner the Treasury may authorise the opening of a 
 new sub-head within the year if occasion arises for 
 such a course, provided that the new expenditure falls 
 within the scope of Part I. of the Estimate. If it 
 transcends Part I. (which is the basis of the resolution 
 on which the Appropriation Act is framed) a Supple- 
 mentary Estimate should be introduced. 
 
 When the sub-heads are added together there is 
 deducted from the gross total any Appropriation in 
 Aid or credit sub-head reprrBenting cash receipts by 
 the Department which it may be authorised to utilise 
 for Its expenditure and set ofi against its gross require- 
 ments. The resulting difference, the net total or 
 amount which requires to be voted, corresponds with 
 the sum mentioned in Part I. 
 
HE FINANCIAL SYSTEM chap. 
 
 lull J..J,X* 'UII.III/MIIO' llt3lj||il.lB' III tUl^lMo lUoISi utSU 
 
 agfttnat the oMef sub-heads in Part II. and shorn the 
 itemS' %j which they are built up. By means of 
 'these: di:¥isions and sub^divisioos Parliament is fully 
 
 1* vii'f wiik#1 41 CI 4*/% 'I'.lf'A <l<iO'lTT¥i<i'^ii^iri A'irnA'vtilli^iii*ik 
 IMIJxIUISlJ.. wl mm UISSviIl:ift1iiUIJI (11 vU3a tSXp6IlUIvUrt3' 
 
 which it is^ asked, to wnction,. and is enabled tO' 
 question any item the j'ustification of which m not 
 apparent. 
 
 It win be obsenred m ;fefeience to ^ Estimates 
 that some of the sub-heads are desciibed as Grants 
 in Aid. These^ ^are block nayments which it is desired 
 to exempt from the operation of the ordinary detailed 
 audit or from liability to surrender to the Exchequer 
 any Daianoe. unexpenaea au tine ena oi une year or 
 'from, both of these requirements. A Grant in Aid to 
 an 'Outside 'body ^like the Royal S^ociety or 'the^ Boyal 
 
 A receipt from, 'the proper' authority m 'then a sufficient 
 \'-aclier for 'the purpose of audit. The payment is 
 in eiiect a donation or subscription and is not further 
 foUowed up. 'The Grant in Aid to 'the National 
 GaQery lor the purchase' of pictures^ is subject 'to^ 
 audit in the ordinary way, but the unexpended balance 
 (If any) is not surrendered. It is the duty of the 
 Comptroller and Auditor -General to see 'that this 
 grant is expended only for the purpose for which it 
 is '¥oted, and that any balance at the end of the year 
 is added to the fund which the Trustees are aUowed 
 to .accumulate: for emergencies, of purchases. Such .an 
 .accumulation out of 'TOted. 'moneys is not permissible 
 in the case of ordinary sub-heads. When an Estimate 
 
 I 
 
 THE ESTIMATES 
 
 II 
 
 includes a Grant or Grants in Aid the fwt is mentioned 
 in Part I., and a note to the Estimate shows what 
 conditions are attached to each Grant in Aid.^ 
 
 Appropriations, in Aid are cash receipts 'used 
 under strict regulations towards meeting the gross 
 expenditure submitted to' the House^ of Commons. 
 The system as now applied was framed in pursuance 
 of some observations by the Public Accounts Com- 
 mittee in 1881, but was only regulated by statute in 
 1891 (Public Accounts and Charges Act, 54 & 55 Vict, 
 c. 24, s. 2).^ The War Office receives over two and 
 a half millions sterling annually from the Indian, 
 Colonial, and Egyptian Governments for expendi- 
 ture incurred for their benefit. If this sum were paid 
 into the Exchequer, and a corresponding amount 
 voted as expenditure, both the taxation and the 
 cost of government would appear to be larger than 
 they really are. Similar considerations apply to the 
 receipts of other Departments, appropriated in aid. 
 From the details set out in Part III. of their Estimates 
 it will be seen that they consist of fees for services 
 rendered, rents received, proceeds of sales of materials, 
 etc. Unless the cash receipts are expected to amount 
 to £1000 or over it would not usually be considered 
 worth wMle to open a credit sub-head, but examples 
 of smaller Appropriations in Aid wiH be found in the 
 Estimates, either because the receipts are directed by 
 
 * For a criticiBni and defence of Granta in Aid as part of onr financial 
 ijatem, referano© may be made to Emm of Commom Paper m 0/ 1902, 
 ppu 21S.14 and 225-6^ and to Webb, op. cit. p. ¥ii. 
 
 * See Appendix II. Tbe amount of reoeipfcs whioh might be appropri- 
 ated in aid was fixst shown in the Appropriation Act of 1894. 
 
It THE FINANCIAL SYSTEM cm^. 
 
 statttte Uhem applied or because the sub-heads are 
 amrvivals from an earlier time when the receipts were 
 (or were expected to 'be) larger in amount.* 
 
 In order further tO' avoid 'unduly iniating both 
 aides of the national accounts and to escape un- 
 necessary book-keeping and cash, payments it is a 
 ■rule of the public aenrice that payments from voted 
 moneys should not :in ordinary circumstances* be 
 .made by one .Department to another. With the 
 obfeot of .showi.ng' the 'tme cost of each Department a 
 note is inserted after Part .11. of ^each .Estimate in the 
 folowing' form : " Provision is also .made as^ follows 
 in other Estimates for expenditure^ in. 'Connection 'with 
 this .service," 'with a reference to the Estimate .in 
 which each of these .so-caBed .Allied Services is pro- 
 ■vided, and 'the cost, of 'the service as estimated by 
 the Department which performs it. Examples are : 
 Office Accommodati,on (Buidings, Furniture, .Fuel, 
 and light, etc.) ; Rates ; Stationery and Printing ; 
 .Pensions ; .Postal, Telegraph, and Telephone services. 
 
 Folowing upon this note sometimes appears a 
 statement of estimated extra, .receipts in caah or 
 'through the medi'um of stamp. The fees for Civil. 
 Service examiiiati.ons, e.g., are paid .mai.nly by stamps, 
 which, are, of course, not available for the payment 
 of departmental expenses, and cannot be treated as 
 Appopriations in ,Aid of 'the vote 'for the Civil Service 
 
 \ Bm Emm «/ Cmmmm Paper 0 ©/ im. Tim ^iiilT«iitiigw and dls- 
 •dmiitapa of tlio ^ptom of A]i|iiopmtj0tia in AM mo cliaoiused on iip. 
 Ilt-IB snd of Emm of Commons Foftt SS7 HffMOi, 
 ^ *^ In oidinaij oinniBrtMiiws*'' 'beoiMMi Jlpnoy ;iMiymento m% pof- 
 
 I THE ESTIMATES 13 
 
 Commission. In other cases the extra receipts though 
 in cash are not appropriated in aid, owing to the 
 smallness of the amount or to their casual character, 
 which makes it inadvisable to open a special credit 
 sub-head in the Estimate. In yet other cases extra 
 receipts in cash are separately inscribed because the 
 total receipts exceed the necessary expenditure of the 
 Department. Thus in the Estimate for the Mint, 
 1912-13, the gross expenditure amounts to £161,050, 
 but the cash receipts are estimated at £962,000. The 
 Appropriations in Aid are entered at £161,000, leaving 
 a margin of £50 to be voted for the service, and the 
 remaining £801,000 is shown as an Extra Keceipt. 
 This procedure is adopted in order that a Token Vote 
 or Nominal Vote may be presented to the House of 
 Commons, giving an opportunity for discussing and 
 controUing the whole Estimate for the Mint. Extra 
 receipts are paid into the Exchequer in all cases. 
 The revenue coltected by the Customs, Inland 
 Eevenue, and Post Office is paid into the Exchequer 
 and not appropriated in aid. 
 
 The detail of a Salary Sub-head comprises the 
 following columns : 
 
 Mmabvm. 
 
 
 1 Salaiy of Officer. 
 
 Fro¥liioii nqnirod. 
 
 1912-13. 
 
 1918-14. 
 
 
 Minimum. 
 £ 
 
 Aamml 
 Increment. 
 £ 
 
 Maximuin. 
 £ 
 
 1913W4. 
 
 1912-13. 
 
 Col. 1 
 
 Col 2 
 
 Col 3 
 
 Col. 4 
 
 Col. 5 
 
 Col. 6 
 
 CoL 7 
 
 Cols 
 
 In Column 3 is stated the rank of the officer in the 
 establishment. Extra remuneration received from 
 
14 THE FINANCIAL SYSTEM, 
 
 pobic tods by mj officer in. this list and exceeding 
 £25 for the financial, year, in addition to the ordinary 
 emolnments. of Ms office, as provided in the ^Estimate, 
 ;is mentioned in a note ahomng the amount of snch 
 remuneration, the^ service for which it is received, and 
 the source from which it is provided, 
 
 A feature of the .Estimates for Public Works and 
 Buidings is a detaQed table of new works., alterations, 
 .additions, and puchaaes in the following form : 
 
 
 
 
 
 
 Further 
 
 
 FImo and 
 Nature of 
 Work. 
 
 Original 
 
 Total 
 Estimate. 
 
 Itevlnd 
 Total 
 Estimate. 
 
 Protiabl® 
 Bxpemtfture 
 tollavdi. 
 11.W1& 
 
 Vote 
 required 
 for 
 
 Amount 
 requirad 
 lor com- 
 pleting tlie 
 Serfioe. 
 
 Vol«d 
 
 These tables protect Parliament against committing 
 itself without .full information to .a costly programme 
 of bufldiBg or works e^nding perhaps over two or 
 
 'three' years or even, .for a longer period. If it is^ asked 
 to vote an. :iniitalment, the amount ^already spent or 
 remaining to be spent is brought out by the table. 
 
 Unforeseen. 'Circumstances^ may compel expenditure 
 to' be incurred, m mmm of the amount provided in 
 'the original Estimates* Supplementary Estimates 
 are then necessary. Gaaes also arise^ in which owing 
 to' probable savings on certain portions of the Estimate 
 the original, grant will probably .not be exceeded, but 
 a new 'work or considerable variation of a works 
 programme is^ proposed, and. .it k deemed desirable to 
 bring the proposal to the knowledge of Parliament at 
 'the 'earliest opportunity.. In such cases a Token 
 
 Estimate' is 'presented, showing the 
 
 I THE ESTIMATES 15 
 
 cost of the service and deducting from it a sum 
 estimated to be available from savings on the original 
 grant, leaving only a nominal total to be granted. 
 Supplementary Estimates may be presented at any 
 time, but the Treasury usually presents a batch in 
 June or July in good time before the close of the 
 Committee of Supply, and a further batch in February, 
 to avoid any excess on the Votes before the end of the 
 financial year. A Supplementary Eistimate Circular 
 is issued by the Treasury to the Qvil Service and 
 Revenue Departments before the " Spring Supple- 
 mentaries " (in February) are prepared. This circular, 
 which is a safeguard against Excess Votes, also calls 
 for a forecast of the amount likely to be unexpended 
 on the 3Ist March. No circular is issued for the 
 "Summer Supplementaries." M Supplementary 
 Estimates require the sanction of the Treasury, and 
 are presented to Parliament in the same manner as 
 the original Estimates for the Army, Navy, and Civil 
 Departments respectively. The form of a Supple- 
 mentary Estimate follows that of the original Estimate 
 when one exists, except that Part I. is stated in such 
 cases to be a "Supplementary Estimate of the 
 amount required in the year ending, ete." If the 
 Supplementary Grant is for a new purpose which 
 cannot be brought within the scope of the original 
 Estimate as defined in Part I it is necessary that the 
 new Part I. should be extended to cover it. Part II. 
 contains only the sub-head or sub-heads which need 
 revision or addition. A note is appended showing 
 the amount of the original grant for the service, the 
 
i6 THE FINANCIAL SYSTEM 
 
 fmilier' amoimt now wquired, and the total, of the 
 revised Estimate as a whole. Part III. gives only such 
 detail, as is needed to^ explain, the variations^ in the 
 estimate from its original form. 
 
 It may here be menti,oned 'that a Supplementary 
 Istiniate is required when either the net or the gross 
 total of the original ,Estimate. is^ likely to^ be exceeded. 
 Snppose, for example, that an Estimate' is presented 
 showing a gross expenditure of £200,000 and Appro- 
 priations, in Aid of £60,000, leaving a ,net total of 
 £l4i,000 which is granted by ParHament. If this net 
 amonnt proves insnfficienti owing to increased, ex- 
 penditure or a falling oi of Appropriations in Aid, a 
 ■further grant must evi,den% be. applied for. But if 
 the actual gross expenditure amounts to £206,000 and 
 the Appropriations in Aid realise £70,000, the net 
 ^amount required, is £136,000, which is less, than the 
 grant of £140,000. Nevertheless, a Supplementary 
 .Estimate for £6000' must be presented, though it 
 would be reduced to a nominal net total by deducting 
 increased Appropriations in Aid for, say, £5990. In 
 other words, an increased receipt cannot be utiUsed 
 to enlarge without Parliamentary sanction the gross 
 «pnditure as shown in the original Estimate.* 
 
 It sometimes happens that the House desires to 
 pant exceptionaly a sum, of money for some special 
 service, such as a monument to a deceased statesman. 
 In this^ case, an address to the Crown k moved, asHnir 
 that the expenditnie may be incurred and stating th^ 
 
 'this^ House will make good the same,"' This, procedure 
 
 Em p. 72 as to mvaA ami miitiiiy services. 
 
 I THE ESTIMATES 17 
 
 is useful in cases where policy recommends that pro- 
 posals for expenditure should appear to come not 
 from the Ministry but from the body of the House.^ 
 Special expenditure may also be initiated by a 
 nie^^age under the royal sign-manual, communicated 
 to the House by a Minister. All these Exceptional 
 Grants, as they are called, must, of course, be voted 
 in a Committee of the whole House. 
 
 Excess Votes, Votes on Account, and Votes of 
 Credit are referred to in Chapter III. 
 
 -PWwe of the House of Commons, Eng. trans., 1903. iii. 
 
 c 
 
nWAPTlll? TT 
 
 THl CONSOLIDAIEB lUND AND TBM EXCHEQUER 
 
 In 1785 the Gammifisioneis of Public AccoimtB called 
 attention to the intricacy of tie system under wliich 
 Yarious public cbarges were earmarked against par- 
 ticular' sonrces of revenne. Thtifl, for example, no 
 fewer than seventy-four charges involving seventy- 
 four separate^ accounts were imposed upon the 
 Customs revenue, the Militia charges were defrayed 
 .from the Land Tax, and certain hereditary annuities 
 wei» met out of the Post Office revenue. To sweep 
 away such comphcations the Commissioners recom- 
 mended that there should be formed " one Fund into 
 which shall flow every stream of the public revenue 
 wd from, whence shall issue the supply for every 
 public service." Effect was given to this recom- 
 :mfindation in 1787 by the Consoidated Fund Act 
 27 Geo. III. c. 13. 
 
 The keystone of our present flnancial system is 
 the Exchequer and Audit Dqwrtments Act, 1866.^ 
 Under this Act — ^with some exceptions hereafter 
 referred 'to— the revenue of the Government is paid 
 into :His Maj:esty*s Exchequer account at the Bank 
 
 .11 THE CONSOLIDATED FUND 19 
 
 of England and the Bank of Iieland. The duty of 
 banking the public revenues in Scotland and remitting 
 them to the Bank of England is performed hy ax 
 Scottish banks in annual rotation. The moneys 
 standing to the credit of the Exchequer account 
 constitiite the ConsoUdated Fund. 
 
 A technical distinction is drawn in Acts of Parlia- 
 ment between moneys which may be paid without 
 further authority than that of the Acts by which 
 they are authorised once for all and moneys which 
 require a vote of the House of Commons in Committee 
 of Supply. The former are described as payments 
 to be " made out of the ConsoUdated Fund," charges 
 "upon the Consolidated Fund and the growing 
 produce thereof " (i.e. the accumulating balance), or 
 by some expression to the same effect. The latter 
 are described as payments to be " made out of moneys 
 provided by Parhament " and are known as Supply 
 Charges. These charges, too, are eventu^y paid out 
 of the ConsoUdated Fund. The distinction in their 
 case is that a previous vote in Supply is required. 
 Ihe Estimates described in the last chapter embody 
 the Supply charges for the year. 
 _ It IS evident that chai^ upon the ConsoUdated 
 have a greater permanence and fixity than those 
 which, coming under annual review in the House of 
 Ummons, are subject to the delay or uncertainty of 
 » Vote. The Civil List and the charges for the 
 service of the National Debt are statutory bargains 
 into which the pubUc has for value received solemnly 
 entered with the Sovereign and with ito creditors. 
 
THE FINANCIAL SYSTEM chaf. 
 
 The salanea of the Speaker of tne House of Commons, 
 'the Judges, the Comptroller and Auditor^Oeneral, 
 for example, are placed. mpoE the Consolidated WmiA 
 in, order to safegE,ard their independence more effectu- 
 all'7 than if their actions eould he oan'^assed m the 
 ooinse of discussion on the annual Estimates. There 
 
 'IK13 nioii t/Ucu^eu.. upiiu viie vyiiotiMiiiiwii. n uiiu 'wn/tiui 
 
 dotations in perpetuity to the representatives of 
 
 .national heroes — ^the .Duke of Schomberg, Rodney, 
 
 Nil '1 1 '1 t '1 i> * « t 
 
 ©json, ana ouners^ ^ana. a .numuer oi iiiems, many oi 
 
 em. .dill ciTirmtiTi.'l*. wii'nj^iio 'Kifi'4u\i*ii>ci1 i*A'a0i\'na f^fli fi.i*iVMii 
 
 lliiiiiU iilllll'luJIIi, M3X VlftOllllo .IMovUriUlM rtsllaiflJoa xjUMAf^So 
 
 mm not now raised against the Consolidated. ^Fnnd 
 without special justification for withdrawing them 
 bom .anmyfj' consideration W the House of Conunons., 
 
 An abstract .account ,_,of the issues from the Con- 
 'Bohdated Jimd is prttiented to Farhament every 
 fear together with the report of the Comptroller and 
 Aiditoi^General thereon pursuant to section 21 of 
 the Act 2i k W ¥ict. c. 3i. Fuller details are shown 
 in the annual Finance Accounts (see Chapter V.). 
 The total. Consdidated Fund Services .in 1§.12-I3 
 amounted to about £37,000,000, and the Supply 
 .services U £15.1,604,000.. 
 
 .An. 'Undertaking was isiven tO' the House of Com- 
 mons by the Fttst Lord of the Treasury (Mr. W. H. 
 Smith) and the ChanceHor of the Exchequer (Mr. 
 Ckischen) on the 16th Mav 1889 that no pensions, 
 mm even vnose itir .uououriiiii.e 'oervice, uui/ even vnusf} 
 ■anctioned by the authority of Act of ParUament, 
 
 '■nii'i'.ci/'f'j.tfiiin in.ci.i7A fuMi'ti Icaif^ iiTk/kii i'Vm "fQl^la rt'f l^'nvliOYino'n'fi 
 iUlI.lN«Ullfl ult'VtJ .UOHIi. UUU. upUil VjUM tdUlc 0£ jriliI:UIIIIicIl.U 
 
 THE CONSOLIDATED FUND 21 
 
 for 30 days, so as to give Parliament an opportunity 
 of expressing its opinion upon those terms if it thinks 
 fit to do so." ^ The presentation of a Eeturn showing 
 the nature of the transaction, the annual charge 
 redeemed, the amount of redemption money, how it 
 is provided, and the terms of redemption is required 
 by statute (36 k m Vict. c. 57, s. 6 ; 46 Vict. c. 1, 
 s. 1 ; 46 & 47 Vict. c. 55, s. 18). The undertaking 
 goes beyond these requirements by pledging the 
 Government to consult the House before conamutation 
 of a pension instead of apprising it of an accomplished 
 fact. The statutes referred to contain limitations 
 as to the form and the amount of the consideration 
 to be paid in certain classes of commutation. 
 
 The forecast of the amount required for Consoli- 
 dated Fund charges in the next financial year is 
 framed by the Treasury after consultation with the 
 National Debt Conamissioners. Added to the esti- 
 mated Supply charges it gives the total estimate for 
 which provision must be made in the Budget exclusive 
 of any new charges which Government may propose 
 to create in the course of the year. 
 
 Under section 10 of the Exchequer and Audit 
 Act, 1866, the Commissioners of Customs and Excise, 
 the Commissioners of Inland Revenue, and the 
 Postmaster-General are required to cause the gross 
 revenues of their Departments to be paid in accordance 
 with Treasury regulations into His Majesty's Ex- 
 
 » Smami, 3rd series, vol. 336, colmnn m For an emm^ of a 
 Xreasury Minute oomplyiiig witli tills promiae see Emm of Cmmmma Paper 
 iS6 of 1906, 
 
22 
 
 THE FINANCIAL SYSTEM chaf. 
 
 cheqmef Moomnt at the Banks of England and Ireland 
 iQspeotiYelj ^after deduction of the pajrnaeiits for 
 drawbacks,, hoimties of the nature of drawbacks, 
 repijnients, and discounts. It will be observed that 
 'the deductions include only moneys which the 
 Exchequer has no claim to retain. Examples are 
 moneys paid by mistake, or collected by Government 
 to be^ passed on to a third, party to whom they belong, 
 as in the case of noioney for foreign telegramS' in so far 
 as they are transmitted abroad over cables owned by 
 private^ companies, the railway share of charges upon 
 ;parcda conveyed for the Post Office, etc. 
 
 The some ^section directs that all other public 
 moneys payable to the Exchequer tm tO' 'be^ paid to 
 'the same^ account. 
 
 Section 12 of the same Act requires quarterly 
 accounts of the income of and charges upon the 
 Consolidated Fund to be prepared, and .if it appears 
 from any such account that there is a deficiency in 
 the ConsoUdated. Fund, i.e. if the balances at the 
 dose^ of the quajrter ^are not sufficient to^ meet the 
 charges accruing up to the fifth day of the following 
 
 'ffVi'Afi'liti /irmiYiflf f'.fiiii iia.l'jk ciffi wli'So'li' 4iKa 'ifi'i'iftiFAa'i*. #in i'.liA 
 
 iSt U p.y.bU.), fte 0»Mptr»ller and 
 
 iiuditor - 'General, .is to certify the amount of the 
 deficiency to the Bank of England or Ireland, and 
 those^ .BankS' are thereupon, authorised to .make 
 Mvances (known as Deficiency Advances) which are 
 to be^ repaid with, interest out of the growing produce 
 
 See note m f, 1. Tlie iiiMMsM. jmx fti one lime ended on the 
 
 II THE CONSOLIDATED FUND 23 
 of the Consolidated Fund in the next succeeding 
 
 nii$Li*ter 
 
 Detailed reference will be made later to the items 
 of Exchequer receipts and issues and to the method 
 of operating upon the account. It suffices for the 
 present to point out that the sums paid into or out 
 of the account in the year are not necessarily the true 
 income or expenditure of the year. As already 
 mentioned, sums received by certain Departments 
 are utilised by them as Appropriations in Aid of their 
 Votes instead of being paid into the Exchequer and 
 reissued to meet the necessary expenses of the Depart- 
 ment. Certain special accounts (see Chapter IX.) 
 have also been created by ParMament to be kept apart 
 from the Exchequer account. Moreover, the account 
 has the advantages and disadvantages of a pass-book 
 or cash account. It begins the year with a balance, 
 and is fed by revenue payments, by borrowings, and 
 by repayments of advances made from the Exchequer. 
 It is drawn upon for national services, for advances, 
 and for the repayment of debt, contains a number 
 of cross entries, and includes certain capital transac- 
 tions. The borrowings and repayments for the year 
 may not be identical. Outstanding amounts on both 
 sides of the account on the 31st March may differ 
 from those on the previous 31st March. Grants and 
 Issues wiU differ. The Exchequer balance at the end 
 of the year will for all these reasons be greater or less 
 than at the beginning. If it is depleted below the 
 amount needed for a working balance it may be 
 necessary to replenish it by borrowing. 
 
THE FINAN'CIAL SYSTEM chap n 
 
 ne revenue is paia into tne fixonequer oj une 
 receiving Departmenta in round sums from 
 
 for 
 
 allowed, m far as amounts due to them from the 
 .ESxcboo'uef ' so* to' meet cuneut exDeiifieS' teniBOf eeiIy 
 tmt of cash in their hands. Issues froma the Exchequer 
 to the Paymaster-General for the public services^ and 
 to the Bank of England for payment of interest on the 
 national debt, are also made in round sums. Moating 
 balances in the hands: of some Departments — ^notably 
 the subsidiary accounts of the National Debt Com- 
 noissioners — ^are^ used tomnor arilT for current exnenaes. 
 It folows that at the close of business on the 31st 
 March sums may be due by the Exchequer to receivini^ 
 DeDartments, that revenue may have been received 
 by the Departanente but not yet paid in to the Ex- 
 cheouer, that cheoues drawn on the Excheouer are 
 Still outstanding, and that imprests or advances of 
 varyi:ni! amounto are^ in the handS' of sub-accountants. 
 K.v»««. m . norMal year tte t™. «venue and 
 (lu> EnheqoK Kicnpts, tlw true eipniditiiie a. 
 audited and the Excheouer issues are found to differ 
 comparaiaveiy nrae. 
 
 'The stato of the Exchequer account 'is .shown in 
 tbe Returns pubHshed quarterly by the Treasury in 
 the Lmim Gmeite in a form foflowing closely the 
 account shown on pp. 44-51 . Except for the separate 
 statoment of balanceS' at the Bank of Enidand and 
 at the Bank' of Ireland the Exchequer account 'is 
 maieii: in. we piionsneo. accounw as^ one account. 
 
 CHAPTER III 
 
 THE BSTIMATBS IN PAELIAMBNT 
 
 We have seen the preparation of the Estimates by 
 the Departmente. Let us now foUow them into 
 
 Parhament. 
 
 Each session of Parlament is opened by a speech 
 from the Throne, in the course of which the Sovereign, 
 addressing himself exclusively to the Gentlemen of 
 the House of Commons, informs them that Estimates 
 for the requirements of the public services for the 
 coming year have been prepared and will be laid 
 before them. In reply to the Speech an Address is 
 moved, and a discussion upon the Address, ranging 
 over a variety of topics, occupies the House for some 
 days— usually to the end of the second week. When 
 this hm been disposed of the House immediately 
 settles down to the financial business which is the 
 backbone of the work of each Session, and there is 
 usually a race against time to complete the necessary 
 inancial steps before the 31st of March. 
 
 Reference to the Journals of the House will show 
 that as soon as the Address has been agreed to, the 
 lollowing stops are taken : 
 
 25 
 
16 THE FINANCIAL^'" SYSTEM chaf. 
 
 Beeoliml that 'tliis^ Mmm wM (to-nunrow) ^ tmohm itself 
 into Ctommittw to wnsider of the Supply to be laranted to 
 .MB Majeaiy. 
 
 CMeirecl tliat tlie seYeral EstimateB pweented to this 
 
 Wmm during 'tli© pwient .ieseion be: wifenced, to Hie Committee 
 Supply. 
 
 :Mei!olired, tliat tiiM Honae do (to-monrow) * reeolve itself 
 :into' 'Ctemnittee to •eoaaider' tbe Ways and. Means for mining 
 supply to be granted to lis Majesty. 
 
 Jtosolved that the Committee of Publie Accounts do 
 consist of ifteen members : 
 
 That (hei» follow the names) be^ membeis. of the said 
 Committee. 
 
 fhiit the 'Committee :have powor to ^send for persons, 
 papers, and lecoidB. 
 
 That .i¥e be the quorum. 
 
 It hm already been mentioned that the grants 
 .made .in Supply are " for the year ending the Slat 
 March 19 Snch grants are not available for the 
 «r¥ioe of another year. It is^ therefore necessary, 
 before the lat April to obtain interim authority from 
 Pariiament' to meet the .Supply charges which will 
 come into oonise of payment on and after' that date 
 before the new Estimates have been passed. It is 
 also .necessary to regularise the inance. of the current 
 year in case any Supply services require further 
 mmU .Buppkmailiary to^ tibose aheady voted. In 
 that case Supplementary :Estimates are presented. 
 Or .it may 'be necessary tO' .make good, a deficit or 
 over-flpending which the audited accounts have 
 iisdi»ed for the previous year.* For that purpose 
 
 < Or tit some other early date. 
 
 * Hie OTer-spendiiig may have been rendered poesible by the utilisation 
 of eKtn reoeipto or by an iMl¥ance from the (Ml Contingenciee fund. 
 
 „, THE ESTIMATES IN PARLIAMENT 27 
 
 an Estimate for an Excess Vote is presented, but 
 is not considered by the House until the Public 
 Accounts Committee have presented a special 
 Report recommending that it should be passed. As 
 a general rule Excess Votes (which are combined 
 into a single resolution) should be taken before 
 the close of the financial year following that in 
 which the excess occurred ; but, by desire of the 
 House or for the convenience of Parliamentary 
 business, the Vote is sometimes postponed to a 
 
 As regards the coming financial year, pending the 
 detailed consideration and final approval of the 
 Estimates, provision is made by a Vote on Account 
 for the Civil Services and Revenue Departments. 
 The Vote was until 1896 usuaDy taken for not more 
 than two months' expenditure, and a second or even 
 a third Vote on Account according to the duration 
 of the Session and the progress in Supply was some- 
 times necessary. The changes made in the procedure 
 of Supply in 1896 were thought to justify taking a 
 single Vote for four or five months' expenditure 
 covering the length of the normal Session after the 
 1st April. But in the exceptional circumstances of 
 1911 a shorter Vote was again resorted to, representing 
 about three months' expenditure. An Estimate is 
 presented showing the total amount required for 
 each Vote for the whole year and the amount required 
 
 * E.g. Army Excess Vote 1900-1, postponed to 1902-3 ; Army BxceiB 
 Vote 1901-2. postponed to 1903-4 ; Mmal md Civil Exmm Votes 1903-4. 
 poitponed to 1905-6. 
 
28 THE FINANCIAL SYSTEM' «.«. 
 
 m aocoiint for each Vote. Thus on the 8th March 
 1911 the Resolution moved in Committee of Supply 
 :nnifl : That a sum not exceeding £19,350,000 be. 
 granted to His Majesty on account for or towards 
 defraying the charges for the foDowing Civil Services 
 and Kevenne Departments for the year ending on the 
 31rt of March lil2, via:. : 
 
 €l¥n. SlIB¥IC)M 
 
 'CUIUS II. f bieign (Mm . 
 Qaiis I. Boysl Micei. 
 Btc., ©te. 
 
 £20,000 
 
 Total . . £19,350,000 
 
 (irrf&^me s^iim taken repMente » pfoirieon for aboat tliree monlilis' 
 
 '•zpamiitoni.) *' 
 
 The Foreign Office was placed first on, 'the 'list by 
 desire of the House in order that a •discission 'might 
 take place upon Foreign Af airs. The other Votes 
 are arranged in order of classes as they appear in the 
 Estimates.. "The Vote which k a&t down first is 
 different from year to year. A Vote on Account 
 .shoiuld not include any new service unless such 
 service has been authorised by Act of Parhament. 
 ■Otherwise, by ,granti,ng mi instalment, the House 
 might prejudice its. opportunity of objecting to the 
 inception of a Vote which had not come under 
 adef uate Parli:amentary consideration in a previous 
 .Senii^on. 
 
 No Vote on Account is taken for the fighti'ng 
 services, but after the number of men and boys to be 
 empl,oyed, is .apprlled, ^one Army Vote and one Navy 
 Vote is. taken— usually Vote 1 for the land forces 
 
 III THE ESTIMATES IN PARLIAMENT 29 
 
 and for the fleet.* The money so voted is applicable 
 to any Army Services or any Naval Services as the 
 case may be, pending the fuller provision required.^ 
 
 Before the House goes into Committee of Supply 
 a motion is made that the Speaker do now leave the 
 Chair." This process of " setting up Supply " with 
 the incidental necessity for " getting the Speaker out 
 of the Chair " is repeated three times : once for the 
 Army Estimates, once for the Navy Estimates, and 
 once for the Civil Service and Revenue Estimates. 
 On the motion for going into Supply on the Army 
 Estimates any question affecting Army administra- 
 tion may be raised and discussed, and a day or two 
 is usually allowed for that purpose. So also with the 
 Navy. There is no need to " move the Speaker out 
 of the Chair " for the consideration of Supplementary 
 Estimates or Excess Votes. The Speaker will not 
 accept a motion that he should leave the Chair for 
 consideration of a branch of Supply until the Esti- 
 mates for that branch are in the hands of members ; 
 but a Vote on Account, since it does not include new 
 services, may be taken before the Estimates to which 
 it relates have been dehvered.* Standing Orders* 
 15 (6) lay down that not more than one of the allotted 
 days in Supply shall be devoted to any Vote on 
 Account, and not more than one sitting to the report 
 of that Vote. 
 
 1 In 1906 the fixst Money Vote taken for tlie Anaj was Vote 7 (Supples 
 and Clothing). 
 
 * See post, p. 70. 
 
 * See Hansard, 3rd issue, 341, p. 1518 ; 4ttl aenes, 79, p. 821. 
 
 * See Appendix XL 
 
30 THE FINANCIAL SYSTEM cmak 
 
 When the. Yotes. lave been agreed to^ in Committee 
 of Supply they are reported to the House, and when 
 the House has approved of the Votes the next step 
 iwpnied is to provide funds or Ways and Means 
 with which to meet the expenditure authorised. For 
 'this piipoae the House goes into Committee of Ways 
 Mid Means— a Committee of the whole House. ^The 
 :w»lutions^ of that Committee for raisi,ng suppHes of 
 ■the necessary amount i .are reported to the House for 
 its appoval. Kreetions are: given by the House to 
 draw up a Bill to carry them into effect, and this is 
 done by 'the ^officers of the House in the Consoidated 
 Iiiiid (No. 1) Bill, a short measure authorising the 
 Treasury U issue from, the Consolidated Fund a 
 speciied amount " towards making good the Supply 
 granted to .His llaj«ty for the year' ending on the 
 list ^day of .March, If The amount so authorised 
 .may be. used, to 'make go^od, the Supply so granted at 
 the time of issue, whether Army, Naval, or Civil 
 though the Ways and Means BiU may have beei; 
 baaed merely upon a Vote^ for one or two instead of 
 al three of these services.* A specimen of a Consoli- 
 dated Fund (No. 1) Bill wfll be found in Appendix Y. 
 It must pass through all its stages, in both Houses of 
 ,Pftrliament and ,receive the Royal Assent in time ,f or 
 the ,is8tte of 'the ,neces8ary funds, from the ,]lkohequer 
 'before 'the Ust March,, ,Afl we shall see ,hereafter a 
 ,loyaI, Order is necessary to' place at the disposal, of 
 
 * '111* Com,mitte© of Ways ,iiiid Means may not vote sims in, mmm of 
 il© mcpiiidiitoi© Yoted by the Committee of Supply. 
 
 • Section t iil Public Accounts and Cbargoa Act, 1891, printed In 
 Appndiz IL 
 
 HI THE ESTIMATES IN PARLIAMENT 31 
 
 the Treasury the supply granted to His Majesty. 
 Moreover, the Bank of Ireland being closed for business 
 on the 31st of March, the Irish issues must be made 
 on the 30th of March at the latest. To sum up, the 
 financial procedure required before the end of March 
 includes the passing of Supplementary Estimates and 
 Excess Votes if required, a Vote on Account for the 
 Civil Service and Eevenue Departments, two sub- 
 stantial Money Votes (one for the Army and one for 
 the Navy), and a ConsoKdated Fund Act making good 
 the Supply which has been granted. All these steps 
 should be completed two or three clear days before 
 the 31st March, to aiord time for the formaities 
 mentioned above. 
 
 A Money 6111,^ i.e. a Bill of which the main object 
 is to grant money, must originate in a Committee of 
 the whole House. Notice must be given for the 
 House to go into Committee for the purpose of 
 originating the Bill. A resolution is then passed in 
 Committee that it is expedient to grant the money, 
 and to make such legislative provisions as are required 
 for the purpose of the Bill. This resolution is framed 
 by the officers of the House in the PubEc Bill Office 
 after seeing the proposed Bill, and care must be taken 
 that the terms of the resolution are sufficiently wide 
 to cover the whole of the Bill.* 
 
 Standing Order 15 provides as follows : 
 
 Section (2) : Not more tlian twenty days, being days before 
 tlie 5th of August, shall be aiotted for the consideration of 
 
 » 8m (Appendix XIV) 1 & 2 Geo. V. c, 13. s. 1 (2) for statutory deinition, 
 • nimrt, LegialtUim Methods and Forms, 1907, p. 99. 
 
32 THE FINANCIAL SYSTEM chaf. 
 
 anm»l BBtiiinitei for ike limy, Hairy, ami Ci¥il Service, 
 .iiiotadiag Votes m. Aocoimt Tlie days, allotted shall not 
 include any day on wMch the question has to be put that the 
 Spaker do leave the Chair, or any day on which the business 
 of Supply does not stand as first order. 
 
 Section (7) : At 10 of the clock on the last day but one of 
 isle days so allotted the Chairman shall forthwith put every 
 question necessary to dispose of the Vote then under con- 
 sidetation, and .shall, then forthwith, put the question with 
 respeet to each ckss of the Civi Service Estimates, that the 
 total amount of the Votes outstanding in that class be granted 
 for the services defined in the class, and shall in like manner 
 put severaly the questions that the total amounts of the 
 Votes outstanding .in the Estimates .for the 'Navy, the Army, 
 and the levenue .Departments, be^ granted .for the :Services. 
 defined in those Estimates. 
 
 Section (8) : At 10 of the clock of the last, not being earlier 
 than the twentieth, of the alotted days, the Speaker shall 
 forthwith put every question necessary to dispose of the 
 report of the resolution then under consideration, and shall 
 then forthwith, put, with respect to' each ckss of the 'Civil. 
 ■Service: Estimates, the question that the House doth ^apee 
 with the Committee in all the outstanding resolutions reported 
 in respect of that class, and shall then put a like question with 
 lespect to aH the resolutions outstanding in the Estimates for 
 the Mavy, the Army, the Revenue Departments, and other 
 outstanding resolutions severally. 
 
 This process is usualy referred, to m the " Girilo- 
 tim**i 'Tie old practice ■iinder 'wiiich each. Vote 
 required to be passed separately had become uiiwork- 
 able. The pactice .now is for the Opposition to choose 
 the Votes which shall be set down for discussion, and 
 when 'the alotted time has been exhausted all the 
 outetending Votes are passed without debate. 
 
 Tim Qniloiiiie Stendiag' Owbr Initiatad .in ISM woa passed in ito 
 pmal loRii on. tlw SStli Afril imSL 
 
 III THE ESTIMATES IN PARLIAMENT 33 
 
 Let us suppose that the Vote set down for a 
 particular day by arrangement between the VHiips 
 is the Vote for the Board of Education. As soon as 
 the arrangement has been announced, Members give 
 notice of motion that such and such an item be reduced 
 3^ ^^®rtai.n sum^ for example, that the salary of the 
 President be reduced by £100. As it is out of order 
 (S. 0. 66) that a motion to increase expenditure 
 should be made unless recommended from the Crown, 
 it follows that a critic who wished to complain that an 
 insufficient sum was provided for some educational 
 service would be compelled to make his motion in 
 the form that the Estimate be reduced. Discussions 
 in Supply are of a conversational order, and the same 
 Member may speak more than once. If the debate 
 is not concluded, and the Vote is not taken before the 
 conclusion of the sitting, it is either set down for 
 another day, or comes under the operation of the 
 Guillotine at the final closing of Supply. 
 
 As certain advances have been made in the Vote 
 on Account, the form of the Resolution, when the 
 original Estimate is discussed, is : 
 
 Tliat a sum not ©xoeeding ( ) pounds be granted 
 
 to His Majesty to compMe the amount required to defray the 
 salaries and expenses of the ( ) Department during 
 
 the year ending 31st of Maioh 19 . 
 
 At the close of the Session the Appropriation Act 
 authorises the issue out of the Consolidated Fund 
 of the balance of Supply granted for the service of 
 the year. A Schedule to the Act appropriates the 
 
 B 
 
THE FINANCIAL SYSTEM cha^. 
 
 Sapfly grante to the specific puiposes and services 
 set forth in the Schedule.* 
 
 When, the Committee of Supply has concluded a 
 8i:tti:ng' it :reiolve8: to report, progress and ask leave to 
 ait again. The House then resnmes. 'The 'Chairman 
 reports accordingly to the House, which orders that 
 the reports 'be received, on a day named, and that the 
 Committee sit again. If the Committee adjourned 
 without taking this step it would be necessary to 
 :iet' 'up Supply ' ' afresh by a .speech from the Throne 
 or by a Royal mess.age. 
 
 Supply .is the first, order of the day in the^ House 
 of Commons on Thursdays, but is also set down for 
 Mondap and Wednesdays. The business of Supply, 
 apart from getting the Speaker out of the Chair, and 
 Supplementary .Estimates, extends over about ten 
 weeks, and 'usuaUy carries the House down to the end 
 of July or the begi.:nning of August. A large part of 
 the^ Pariamentary .Session .is thus, ■occupied by the 
 consideration of the Intimates. • 
 
 As a ^safeguard against the goiiotining' of a 
 contenti.ous ¥ote whi.ch Members, have had no 
 opportunity of signifying a desire to discuss, Standing 
 Order .!§ {,10) provides that .: 
 
 lay additional Estimate for any new mattar not indiided 
 in 'iift^ '«igiial .Estimates for the year sliai be^ submitted for 
 conaideiatioii .in. the Committee' of Supply on mmm day not 
 
 Committee is closed. 
 
 » Sue Appendix VI. The ConsoKdaled IWd Bill (Ho. 1) wmj U loiowed 
 % one m mom Bills as Supply pwceeda until the wMe mpjply of the Qmdm 
 18 completed and appropriated in the Consolidated Fond (Ajipropriation) 
 Bm, except the Spring Supplementariei, wliich 9m mf^t^am in Ha BOI 
 of the loiowing Session. 
 
 Ill THE ESTIMATES IN PARLIAMENT 35 
 
 An .Estimate of this Mnd bears, npon .its .face the 
 words " New Service/* 
 
 If a Supplementary Estimate has not been taken 
 before the Original Estimate, the two are combined 
 in a Resolution : 
 
 That a sum not exceeding (including a 
 
 supplementary sum of ) be granted to His 
 
 liftjesty, etc. etc. 
 
 It is unnecessary here to enter into the minutiae of 
 Parliamentary procedure, but it may be convenient 
 to state that discussion on a Supplementary Estimate 
 is by the practice of the House restricted to the 
 particular purposes for which the Supplementary 
 Grant is required.^ In Committee of Supplv an 
 amendment is put in the form : That the words 
 proposed to be left out stand part of the question." 
 This gives abundant opportunity for moving further 
 amendments. On the Eeport Stage, however, the 
 motion before the House is : " That the House doth 
 agree with the Committee in the said Besolution," 
 and on this a motion to reduce an item is not in order. 
 An amendment may be moved to the whole Vote on 
 report, and must be brought forward after the second 
 reading of the Resolution. When it has been decided 
 no further amendment can be proposed. 
 
 A Member may, of course, only speak once on the 
 Report Stage. 
 
 A Vote of Credit is proposed to the House of 
 Commons in case of unforeseen national emergency 
 
 * The rule was laid down by Loni Oowliiey on 19tli Webemrj 1886 anxi 
 SOIli Aigiiat 1887. 
 
36 THE FINANCIAL SYSTEM cHAP.m 
 
 when, for example, it k necessary to make immediate 
 preparation for naval or military operations. The 
 Bfifwiiition 'takes 'tlie form: "That a sum not 
 exceeding £ ( ) be granted to His Majesty 
 
 %wkI lie mMmry grmOs of Pmliammt " to defray 
 the charge, etc. The words which have been placed 
 in itaHcs indicate the exceptional, character' of the 
 proceedinp:. 
 
 In I9I2 Government gave effect to a recommenda- 
 tion of the Select Committee on National Expenditure 
 1903, that a Select Committee should in each Session 
 be appointed to examine and report on such of the 
 Istimiites presented to the House as may seem fit 
 tO' the Committee, As. in, the case of the Public 
 Accounts Committee, the Chairman is selected from 
 the Opposition, and questions of policy are ruled out 
 from the purview of the Committee. The Reports 
 of this Estimates Committee in 1912 and 1913 have 
 been nmiBly confined to questions of form and to 
 examination of the methods of estimating and the 
 jiistififiation of Estimates. The Committee reports its 
 condnsions to the House, and tiie Treasury issues a 
 Minute: givi,ng effect^ to the lecommendations. of the 
 Committee or stating its reasons for dissent. This 
 Ifinute m laid bef oie the Committee at its first^ sittiM 
 m the ,fblowing Sessi,on. 
 
 CHAPTER IV 
 
 THE BUDGET AHD THE MNANCB BILL 
 
 The Budget may be defined as the estimated balance- 
 sheet of the revenue and expenditure of the financial 
 year.^ On the Continent of Europe the Estimates of 
 Revenue and Expenditure are presented as a whole 
 for the sanction of the legislature in a Budget Bill, 
 but in England the Estimates of Expenditure only are 
 formally voted in detail, the scheme of revenue apart 
 from its anticipated results alone receiving formal 
 Parliamentary authority. 
 
 As soon as possible after the close of the financial 
 year the Chancellor of the Exchequer opens his Budget 
 in a speech in the House of Commons, disclosing the 
 out-turn of the past year, the revenue, the ex.'pe,n.dx— 
 ture, the state of capital liabilities, including the 
 National Debt, and the reahsed surplus or deficit so 
 
 * Til© wofd Budget is derived from the Frencli bougeUe, a dimiiiii- 
 tive of bouge, a leather bog. Bouge is found in Wydiffe as early as 
 1388. The term Budget in its present signification came into use in England 
 early in the eighteenth century. WalpoJe's financial scheme was satirised 
 in 1733 in a pamphlet entitled The Budget Opened. He was presented as a 
 conjuror, the Budget being his wallet or bag of tricks. — Murray, New 
 Hiatorical JMcHonary of the English Langmge, s.v. " Budget." 
 
 37 
 
38 THE FINANCIAL SYSTEM cmaf. 
 
 aa 'tliis is shown by 'the Ikc5lieqiier .account— -th© 
 audited expenditure being not yet ascertained. The 
 'Comparison of Estimates, with, results, the explana- 
 tions of variations, the comments upon the trend 
 of industry and commerce, the bearing of new 
 facts upon 'Om Snance of the past and possibly 
 of the coming year, while keeping Members upon 
 the tentei-hooks of expectation as to new inandal 
 measures, compel their attention once a year to a 
 paerd, survey of our financial, position, and throw 
 light upon the necessities of the immediate future. 
 Of Mm yeara this portion of the Budget speech 
 has been abridged, and a white paper presented to 
 .Jteiament summarises 'the .financial resulte of the 
 past year. 
 
 The requirements of the new financial year so far 
 m Supply Services are^ concerned, are ateady known 
 to the House through the Estimates. To these are 
 added 'the 'Cbnsoldated fund charges, and any new 
 expenditure not included in the Estimates upon which 
 Government may propose to embark if it can obtain 
 the approval of the Pariament. To meet all these 
 ref uiremente there are available the proceeds of 
 tazatLon and other resources on the existing basis. 
 I!i6 estimated yield has been framed by the several 
 Departmente concerned to ||he best of their abiHty 
 after taking into account the stote of trade and aU 
 other factoia likely to influence the revenue. The 
 system folowed in some countries abroad of adhering 
 piecisely to the last realised resulte with such modifica^ 
 tions as may be indicated by changes in legislation, or 
 
 w THE BUDGET AND FINANCE BILL 39 
 
 of taking an average of receipte over a specific period, 
 is a safeguard against inflated estimates of revenue 
 which has not been found necessary in Eneland, where 
 the principle foUowed has been to make the best 
 esemate possiole witmn pruaent linuts, and to bear 
 the brun? of criticism when the forecast proves 
 defective. The fixture amved at on this basis is 
 comparea wim me mmimma expenoi^ure, ana ii 
 there is a surplus or a deficit the question arises how 
 it shall be dealt with. A surplus mav be used to 
 increase Exchequer balances, to reduce debt, to remit 
 taxation bv reducing or reneali'ni! ^existins char^res, 
 or by a combination of these courses. A deficit may 
 be lit conversely by decreasing Exchequer balances, 
 by adding to the debt, or by increasing taxation. 
 Even thouizh the Budnet approached equilibrium it 
 might conceivably be thought desirable to increase 
 certain heads of revenue and to effect a compensating 
 reduction of other taxes. The authority of Parlia- 
 ment for the necessary steps is sought in the Finance 
 Bill. 
 
 In so far as the past year is concerned a reaUsed 
 surplus, unless Parliament otherwise detormines, is 
 applied to the redemption of debt as the Old Sinking 
 Fund (see Chapter VIIL). A realised deficit may 
 be met out of Exchequer balances, if the deficit 
 is not too large to make such a course prac- 
 ticable, or by borrowing with the authority of 
 Pariament, or by being carried forward as expendi- 
 ture to be met out of the revenue of the following 
 
 y tstiiJL. 
 
40 THE FINANCIAL SYSTEM cmap. 
 
 The Bwiget speech is made in. Committee of Ways 
 and Means— which is, as akeady stated, a Committee 
 of the whole House— and as soon as possible after its 
 completion the Committee is asked to vote 'the 
 necessary resoktions. The majority of taxes rest 
 upon pennanent statntes, bnt in ofder to ensure: 
 adef mate control by the Honse of Commons, two 
 taxes— one an indirect tax, the Tea Duty, and one a 
 'direct tax, 'the Income Tax— are of only annual 
 duration. The Tea Duty 'runs from the 1st July, 
 uni the Income Tax from the 6th April in each 
 year, Besolutions are therefore proposed fixing 
 ■the amount 'the Tea Duty and 'of the Income 
 Tax for a further year either at the old or a new 
 rate. If any change is proposed («) in the Income Tax 
 or (i) in indirect taxation a resolution is taken im- 
 mediately to avoid {a) inconvenient adjustment of 
 deduction of Income Tax or (ft) fess to the revenue 
 either by forestalling the tax (msliing in .imp^orts 
 before it is^ raised) or by delaying imports as far as 
 possible if the tax is to be reduced. A resolution of 
 'the House: of Commons, to 'which retroactive effect 
 is given by an Act of the same financial year, has 
 in the past been acted upon immediately by the 
 levenifi Departments. The decision in Bowles v. TM 
 Aw* o/ Emghmd, affirming the principle that there 
 is no 1^1 authority for the collection of new taxes 
 ■until the Act of Parliament has received the Royal 
 Assent, has led, to the passage of an Act' in 1913 
 (a;Geo. V. c. 3) giving statutory sanction for the 
 old practice, with certain limitations. 
 
 IV THE BUDGET AND FINANCE BILL 41 
 
 When the House has approved the resolutions of 
 the Cominittee of Ways and Means effect is given to 
 them, in the Finance BiU. 
 
 Until 1894 the taxes for the year were embodied 
 in a Customs and Inland Bevenue BiU, but in the 
 jmi mentioned, on 'the ^iiiiisioii "Of tbC' 'Death Duties, 
 the scope of the BiU was enlarged, and its title was 
 changed to Finance BUI. In 1899 provisions relating 
 to the National Debt were included. Special appUca- 
 tions or modifications of the SinMnit Funds are now 
 enacted in the Finance BiU. Measures amending 
 financial legislation apart from the Budget proposab 
 are included in a Revenue BiB. 
 
 The calculations of the Chancellor of the Ex- 
 chequer would be upset if other Bills were inta^uced 
 and passed disturbing his financial arrangements. 
 Accordingly. aU Bills which lay a charge upon the 
 Consolidated Fund or on the Supply Services must 
 receive the assent of the Crown, signified to the House 
 by a Privy duncillor (in practice a Minister), before 
 thev are introduced into Parliament. When a BiU 
 ^ .. . pubBc charge. ela^e, c«at- 
 iiig the chai^geiae printed i« »ato, teoli»i»Hy tamed 
 MankSy and must be sanctioned by a Committoe 
 of the whole House, and agreed to on report before 
 they are discussed in Committee on the BiU. 
 " The Crown demands money, the Commons grant 
 it, and the Lords assent to the grant; but the 
 Commons do not vote money unless it be required 
 by the Crown, nor impose or augment taxes 
 unless they be 'necessary for the 'public service as^ 
 
4t THE FINANCIAL SYSTEM chaf.,v 
 
 declared by ike Ctown through its constitutional 
 advisers - ^ 
 
 The course of: the Biidget and other Money Bills 
 in the Honse of Lords is now regulated by the 
 Pidiament' Bill, 1011.^ 
 
 » May. 11th ed,, p. MIL 
 * 8m Appeiitliz .XI?. 
 
 WIHANUE ACCOIJIITS 
 
 The Finance Accounts of the United Kingdom of 
 Great Britain and Ireland for the Financial Year, 
 described by Lord Goschen in 1891 as the " official 
 and statutory balance-sheet of the nation," are, 
 pursuant to Section 2 of the Act 17 & 18 Vict. c. 94, 
 prepared by the Treasury and laid before ParUament 
 on or before the 30th June in each year. PmUa- 
 m&nJtmy Pafer No. 173, 1918, price 5|d., is a small 
 Blue Book of 101 pages which opens with the account 
 of Exchequer Receipts and Issues in the year ending 
 31st March 1913, and the Balance in the Excheouer 
 at the commencement and termination of the year. 
 The account, rounding o£E shillings and pence, is as 
 follows : 
 
 43 
 
 [Table 
 
THE FINANCIAL SYSTEM 
 
 Iwrnmni, Mm Ixmnditxibb amb otheb Exchequib 
 
 looouHT allowing the whole of Mi© Receipts into and Issues 
 
 and the Bakaoes in the Exchequer at the 
 
 'iMiAMClS IN THE ExCMEQUHt OM THE 
 
 1st Afml 1912 : 
 
 At the Bank of England 
 At Um Bank of Iieljuid • 
 
 Totftl • • • 
 
 Bs¥EHi7s mcminD mm m: Ix- 
 
 I Ill 
 
 Customs ...... 
 
 33,485,000 
 
 
 38,000,000 
 
 ^Salute, ete, Dutiiii .... 
 
 25,248,000 
 
 Siainp (ezolniiiTe of Fee, etc. 
 
 'StftlllJW^ * ... a • 
 
 10,DW,000 
 
 Ijuifl Tax 
 
 700,000 
 
 BoaiO' Duty ..... 
 
 
 Imperty and Inoom© Tax (in- 
 
 
 oliidiiig Siiper-Tax) . 
 
 '4^1,806,000 
 
 Land Value Butjut .... 
 
 455,000 
 
 Post Office 
 
 2»,175,000 
 
 Crown Lands (Net) .... 
 
 '530,000 
 
 Receipts from Sueas Canal Shams 
 
 and Sundry Loans 
 
 
 Miscellaneous (including Wm, et€. 
 
 
 Stamps) ...... 
 
 2^MS^100 
 
 Total .B4ST«Mim» 
 
 10,623,073 
 845,518 
 
 1 1,468,591 
 
 ifift mi''* 
 
 XiOO^OIPSpi 
 
 'QtifiiNt lorwafd 
 
 200,270,590 
 
 ir 
 
 FINANCE ACCOUNTS 45 
 
 RiOHPTS AND Issues m the Year 1912-13. 
 
 out of the Exchequer in the Year ended 31st March 1913, 
 Commencement and Termination of the Year. 
 
 liMues. 
 
 Amounts. 
 
 OOMSOIIDATED FUND SbBVIOES : 
 
 £ 
 
 £ 
 
 National Debt Services : 
 
 Inside the PermamtU or Fixed 
 Annual Charge — 
 
 J? UUII.WU ±J\J*JV a 
 
 Terminable Annuities . . . 
 Unfunded Debt : 
 Interest ...... 
 
 Management of the Debt . 
 New JainMns Fimd . . . 
 
 15,000,752 
 3,540,175 
 
 1,171,863 
 166,907 
 4,620,303 
 
 24,500,000 
 1,172,205 
 
 9,653.299 
 1,692,426 
 
 Boad Improvement Fund ... 
 
 Payments to Local Taxation Ao- 
 counts, etc. ... 
 
 Other Consofidated Fund Seraoes : 
 Civil list ..... 
 Annuities and Pensions 
 Salaries and Allowances 
 Courts of Justice .... 
 Miscellaneous Services 
 
 470,000 
 320,883 
 56,468 
 523,450 
 321,625 
 
 
 
 Supply Sbbviois, viz. : 
 
 
 
 Ofdnance Factories .... 
 
 Mlaoellaneoua Civil Services . 
 Coitoms and Excise 2,324,000 
 Inliind Bevvuue . 1,87^000 
 
 Post' Office ServicW' • . . • 
 
 28,070,800 
 200 
 
 44,365,000 
 51,944,000 
 
 4,200,000 
 23,024,000 
 
 151,604,000 
 
 
 
 Total Exfenditijbb chabgeablb 
 AGAINST the Bevxhue (carded 
 forward) 
 
 
 
 
 188,621,930 
 
46 THE FINANCIAL SYSTEM cm^if. 
 
 IcoouNT showing tlie whole of the Receipts into 
 
 ended 31st Maxck 
 
 Brought forward 
 
 
 
 'Otlw Sxehofimr Bmif 1% vilL : 
 
 
 
 Bepaymint of Advances : 
 
 
 
 For purchaa© of Bullion for Coinage 
 interest on K»ioheqaer Bonds 
 Issued under xhe Capital Sz- 
 penditure (Money) Act, 1904, re- 
 paid from Army and Naw Votea 
 
 
 
 Total 
 
 
 1,538.045 
 
 lfOM¥ HAISIIB' BY RlWMWAL OF 
 
 Mum ARB' BonDs : 
 
 
 
 % TceaBiiry Bill for Snppiy 
 By issue of Exehefiier Bonds uniier 
 tiiO' Capital .Eiipaiditiire (Money) 
 Aet^ IttM • • . , 
 
 30,400,000 
 4f0fiO|900' 
 
 
 Total 
 
 
 34|4fl0,®00 
 
 'Caixied lonrard 
 
 • • • 
 
 236,269,535 
 
 and Issues out of the Exchequer in the Year 
 1913, etc. — conHwued, 
 
 
 Ainouuto* 
 
 
 £ 
 
 £ 
 
 j>roiignii lorwura 
 
 
 jQQ a9i ntiA 
 
 Otiief Ezonequer lasaes, viz. : 
 
 
 
 Issues to meet Capital Expsndi- 
 
 
 
 TUBE : 
 
 
 
 TeleizraDh Acts. 1892 to 1907 
 
 1,000,000 
 
 
 Telephone Transfer Act, 1911 
 
 390,000 
 
 
 Militaiy Works Aots, 1897 to 1903 
 
 50,000 
 
 
 Land Begistzy (Hew BiiildlngB) 
 
 
 Aet| 1900 • • • • ■ 
 
 18,000 
 
 
 Fnblio BiiiMinga Expenses Act, 
 
 
 
 20,000 
 
 
 
 
 *iFlft» •••••• 
 
 10,000 
 
 
 Total 
 
 
 1,488,000 
 
 XUI VAJIUJio i 
 
 • 
 
 Ibr pnrohase of Bullion lor Coinage 
 
 1,550,000 
 
 
 Interest on Exchequer Bonds 
 
 
 ■ 1 1 at • • « .-.III- 
 
 issued under the Capital Ex- 
 
 
 
 penditure (Money) Act, 1904, re- 
 
 
 
 payable from Army and Navy 
 
 
 
 Votes 
 
 138,045 
 
 
 xoiiai . . . 
 
 
 1,688,045 
 
 B&iLS ANB BOHBS PAID OZV SVKTSOf 
 
 
 
 TO Rbnewaii : 
 
 
 
 Troasoiy Bills for Supply 
 
 29,000,000 
 
 
 Bxoheqner Bonds issued 
 
 
 under the Capital Ex- 
 
 
 
 penditure (Money) 
 
 
 
 Act, 1904 . . £4,781,700 
 
 
 
 Issa. — ^Paid off by the 
 
 
 
 National Debt Com- 
 
 
 
 missioners . . 720,800 
 
 
 
 
 4,060,900 
 
 
 
 
 33,060,900 
 
 CSsxfied forward 
 
 • • • 
 
 224,858,875 
 
48 THE FINANCIAL SYSTEM chaf. 
 
 AcsoouNT stowing tlie whole of the Receipts into 
 
 0iidecl. Blst MmoIi 
 
 
 AlBOIllltas 
 
 
 £ 
 
 £ 
 
 Bfouelit lonrard 
 
 
 
 MORBT MMSKD' BT OkMUXEOll' Of 
 
 
 
 Addehonal DlBT : ^ 
 
 
 
 9br tlie purpoees of tie Td^ftpb 
 
 
 
 Aels, 1892 to 1007 : 
 
 
 
 13efiiti]iiiUe Annuities 
 
 
 
 oiiitiipiibfo en Ftet Offiee 
 
 
 
 Vote • • . . a 
 
 lfCXM)|090' 
 
 
 Rv' the purposes of the Telephone' 
 
 
 
 TriUMfer Act, 1911 : 
 
 
 
 By Terminable Annuities 
 
 
 
 olmigeable on Post Office 
 
 
 
 Vote' • • • • • 
 
 390,000 
 
 
 For tho pinpoees of tbe Militniy 
 
 
 
 Worfa Ants, 1817 to imB: 
 
 
 
 % Tenniniible Anaiitiei 
 
 
 
 eimfeiible on Army ¥otos 
 
 
 
 ¥m tbe purposes, of Land EegMzj 
 
 
 
 (New Buildings) Act, 1900 : 
 
 
 
 By Terminable Annuities 
 
 
 
 chargeable on Vote for 
 
 
 
 Public Buildings, Great 
 
 
 
 Britain 
 
 18f900 
 
 
 Ibr the purposes of the Public 
 
 
 
 Buildings Expenses Act, 1903 : 
 
 
 
 By !Rstniinable Annuities 
 
 
 
 diaiqseiible on Vote for 
 
 
 
 .Pubie Buildinp, Great 
 
 
 
 Britnio . 
 
 
 
 For the pmrpoees of the .Piibli© 
 
 
 
 'Offices Site (Bnliliik) Ant,' im : 
 
 
 
 By lefaliiibfe Ananitiea 
 
 
 
 chargeable on Vote for 
 
 
 
 Publio^Worlai miil BniM- 
 
 
 
 
 10,000 
 
 
 Total. . . . 
 
 
 
 Carried forward 
 
 • • • 
 
 237,707,635 
 
 « Eiohequer Bonds for £7,000,000 weie issued in tbe year to the 
 llmir imdertaldiig under the Telephoiie Tmorfer Aet,, 1911., The tnns- 
 iM«i.fl< 'Or issue of ^ imsh.. 
 
 V 
 
 FINANCE ACCOUNTS 
 
 4*9 
 
 and Issues out of the Exchequer in the Year 
 1913y etc. — i!Oftltfiif0ci. 
 
 
 
 Amounts. 
 
 Brouffbt forward 
 
 Ou> Smraro Fund, 1907-8 : 
 
 Amount iifned in 1912-13 under 
 Section 9 'Of the Ftnanoe Act, 1908' 
 
 £ 
 
 £ 
 
 224,858,875 
 
 Old Sinking Fund, 1910-11: 
 
 Amounts issued in 1912-13 under 
 the Finance Act, 1911 : 
 Section 16 (1) {a) . 
 Section 16 (1) (6) . . . 
 
 1,500,000 
 35,500 
 
 
 Total 
 
 
 1,535,500 
 
 Old SiNKiNa Fund, 1911-12 : 
 
 .Amount issued to tho National Debt 
 OonimittiiMieis • • • • 
 
 
 5|000,000 
 
 Carried forward 
 
 231,428,375 
 
THE FINANCIAL SYSTEM 
 
 €#il]IA'V''a, 
 
 AoconMT siiowing tlie wliole of the Receipts into 
 
 ended 31st Marcli 
 
 Broiight f arwatd 
 
 Tempoeaey Advances: 
 
 On deficiency of the ComoMdated 
 Fund : 
 
 On the credit of Wayi itnd Means : 
 By Treasury Billa : 
 
 In November 1912 
 By other Advances : 
 
 In Becemlier 1912 
 
 CrauBD^ 'hfMM: 
 
 lenl mk Aoooinit of Briiioi|Hil. 
 
 CtfiM of 600 Shares dmwn and 
 ;iMiid of m 1912-lB . 
 
 CmMA I»D.I!lf IIITY' : 
 
 Bwnipts on Aefsount of . 
 
 MAor AxKEcui FmomommATM Loam : 
 
 Riipaymenl m Aoconnl ol .Principil 
 
 and. Ibi 
 
 CatinMl Total , 
 
 3,000,000 
 IffiOOfiOOO 
 
 237,757,535 
 
 4,800,000 
 
 130,000 
 
 11,904 
 
 19S.800 
 
 2,115 
 
 242,895,354 
 
 FINANCE ACCOUNTS 
 
 and Issues out of the Exchequer in the Year 
 1913, etc. — condfmed. 
 
 
 
 Tbmwmi.. 
 
 Amouute. 
 
 Brought forward 
 
 £ 
 
 £ 
 
 231,428,375 
 
 Tbmpobaby Advahoes Bbpaib : 
 AdvanoeB on Deficienov of the Con* 
 solidated Fund .... 
 Advanoos on the credit of Ways and 
 liCeans z 
 
 Ireasury Bills .... 
 Other Advances 
 
 3,000,000 
 1.800.000 
 
 nE 
 
 Total 
 
 
 4,800,000 
 
 CuNABD Loan Repayments: 
 
 
 
 Amount issued to the National Debt 
 Commissioners under the Cunard 
 Agreement (Money) Act, 1904 . 
 
 
 130,000 
 
 Sum Canal Shares : 
 
 
 
 Capital of 600 Shares drawn and 
 paid off, issued to reduce Debt 
 under the Finance Act, 1898 . 
 
 
 
 
 
 
 looueii no recmoe xjeou unoer bne 
 Finance Act, 1906 
 
 
 
 East Aiuoa Bbotbcsto&ate Loan 
 Repayments : 
 
 
 
 Issued to the National Debt Com- 
 missioneza under Section 16 (2) 
 of the Finance Act, 1911 . 
 
 
 2,115 
 
 BaLANOE in 'TBI SxmEEQVSB ON yipi 
 
 31sr Mamhe' Iil3: 
 
 
 
 At the Bank of England 
 At the Bank of Irehmd . 
 
 6,389,135 
 940,025 
 
 
 Total 
 
 
 6,329,160 
 
 Ontnd Total • 
 
 • • • ' 
 
 242y895.354 
 
52 THE FIN'ANCIAL SYSTEM cmf. 
 
 We 'wiH Gonaiilei these^ items mmtim. 
 
 Bdmm in the Ewdeqmr m tfw m of Apnl If IS. 
 £ll,468,6tl.— Under Section, 11 'of the Exchequer 
 and .Audit Bepartments^ .Act, 1866, all moneys paid 
 into the Bank of England and the Bank of Ireland 
 on account of 'the Exchequer are. to be considered as 
 forming one general fund in the books of the banks, 
 and aO orders directed by the Treasury to the banks 
 for issues out of the credits to be granted by the Comp- 
 troler ami Auditor-General for 'the public services 
 .are: to be satisfied out of the general fund. * In other 
 words, the .Exchequer Account .is kept by the two 
 banks, and the baknce in the Exchequer on the Ist 
 of .April 1112 is arrived at by adding together 'the 
 ^amountS: to 'the credit of 'the Exchequer Account in 
 'Cfieh bank. 
 
 We oome .next, to^ the .revenue :received into the 
 .Exchequer .: 
 
 (1) Cm^om, £3I,48II,CM)0.— On pp. 20 and 21 of 
 'the Mnanoe Accounts are :Bhown' in detail the gross 
 :receipts 'under 'Oach ^artiole or head, of duty, the 
 amounts paid, 'thereout .for Drawbacks, .Repayments, 
 and Alowances, and the net receipts or produce, 
 together with the .appopriation thereof. .Drawbacks, 
 are. remissions 'upon the. eiport of articles which 
 .have .akeady paid duty as if for home consumption, 
 itepayments and Alowances insinde such 'items as the 
 corrections of error, 'the all.owance in some cases, for 
 waste, the 'unconsumable husks of tobacco, losses 
 from accident in bond, and so forth. The cost of 
 'Collection is not' 'deducted, from 'the ,gros8 receipts,. 
 
 w FINANCE ACCOUNTS 53 
 
 but is voted as expenditure. The appropriation of 
 the net receipts refers to the distribution of the 
 amounts between the Imperial Exchequer and the 
 Me of Man, which is treated as a separate entity for 
 Customs purposes. Details of the rates of duty and 
 a mass of statistical information relative to the 
 Customs are published in the Annual Eeport of the 
 Commissioners of Customs and Excise presented to 
 Parliament. It will be noticed from the Finance 
 Accounts, p. 21, that the round sum paid into the 
 Exchequer by the Customs does not correspond 
 precisely with the M ^^^1^^^ of the Customs for the 
 year. It is sometimes a httle more, sometimes a 
 little less than the actual receipts. This is the case 
 with the other Eevenue Departments and has already 
 been explained on p. 24. 
 
 (2) JjKoise, £38,000,000. — The same remarks apply 
 here with the exception that there is no appropriation 
 of receipts to the Me of Man. 
 
 (3) EstcOe, eto. Duties, £25,248,000, on property 
 passing at death, and Corporation Duty. 
 
 (4) Stamps {exdnsim of Fee, eic. Stamps), 
 £10,059,000. 
 
 (5) Lafd Tax, £700,000. 
 
 (6) Home Duty, £2,000,000. 
 
 (7) Property ami Inmme Tm (mdwMmg Super- 
 Tax), £44,806,000. 
 
 (8) Lafd Value Duties, £455,000. 
 
 Detailed information upon the rates of duty, etc., 
 in respect of the last six sources of revenue is found 
 in the Annual Beport of the Commissioners of Inland 
 
54 THE FINANCIAL SYSTEM ceaf. 
 
 Revenue, pfeseiited to Parliament. An analysis of all 
 tlie fi^mfes appeaFs on pp. 2S anci I^inanee Accounts* 
 
 (§) Post Office, £29,175,000 (including Telegraphs 
 and Telephones). — 'Wm details see p. 2B of .Finance 
 Accounts and the Annual Report of the Postmaster- 
 General, presented to Parliament. 
 
 (10) Crmm Lmds, ■m^, f530,CMM). — On his acces- 
 sion the Sovereign, siorenders to the Exchequer his 
 nereoiiary revenues m lespecii' oi wooos, loresiss, ana 
 land revennes of the Oown, in return for an annual 
 
 Pavment cuarflecl on tiie Uonsolidatecl iinci' joiown 
 as the Civil list.^ Ciertain charges for coHecting the 
 revennes, donations, to^ churches, schools, and other 
 
 uniiaMCiii0, pay menus lur ourvtsyo, .n3piii.r0, ew., lor 
 
 land, property, and other taxes, for repairing and 
 ainsaining nuimngs, wans, lences, roacw, ana, mamng 
 enclosnies and plantations, etc., are paid out of 
 'leoeipla, and the net amount only paid into 'the 
 Exchequer. The salaries and expenses of the Com- 
 ttUBsionerS' of Woodfi' ..and Forests - and their officers in 
 Loadon are voted annuaDy by Parliament and not paid 
 out of .revenue. Details are given on p. M, .Finance 
 Accounts, .and an annual Report of their' operations. 
 ;i8. presented. tO' Parliament by the (Jommissioners. 
 
 '*'* 'Tiie expemam of tlio Royal Homieliold am mm mUxdj' mpmmMoi 
 iram 'Hw mpmmm of' ciiril govemineiit ; but, hj a wMiwioal ptrwmmsm, 'the 
 Buiie 'Oi OtI 'lift hm tmu^mi attached to that portioii of' the zeTenue 
 vlileh is appropriated to the expenses of the Eoyal Household. It is still 
 Mian utmnge that several neighbouring nations should have thought thii 
 most unmeaning of aU. iwiaes worth bonowiag." — ^IfaoftiilAy, Hitior^ 
 England, chap. 
 
 For the origiii and history of the Ci¥il List see Appendix XIII. of 
 'CUiliolm't JfMlf »«, .seftawl te m pu I, note,, of this Toluine. 
 
 V FINANCE ACCOUNTS 55 
 
 (11) Receipts from 8mz CamU Shams afid Sufidry 
 Loans, £1,418,899.— This represents the interest or 
 dividend received in the year on the Suez Canal 
 shares, purcliased by the Government from the 
 Khedive of Egypt, in the time of Mr. Disraeli (1876), 
 with the exception of shares drawn and paid ofi in the 
 interval. (See post, p. 63 n.) There are also certain 
 receipts in respect of loans, the particulars of which 
 appear on p. 27 of the Mnance Accounts. 
 
 (12) Knally, we come to Miscdlanmus ReDmm, 
 indwiing Fee, etc. Stamps, £2,925,100. — ^The detail of 
 this lEsoellaneous Revenue is given on pp. 27-M of 
 the Finance Accounts. The main divisions are small 
 branohes of the Hereditary Ee venue, including receipts 
 from escheated estates of persons dying intestate and 
 illegitimate or without known Mn, the profits on the 
 issue of Bank Notes, the profits of the Mint, fines and 
 penalties in the Crown Office Supreme Court, certain 
 small receipts from surplus Crown Revenues in 
 Jersey and Guernsey, etc. The sum of £186,731 
 represents the amount payable by the Bank of 
 England out of the profits of its Note Issue for the 
 year to the 6th April 1912. Repayments from the 
 Bankruptcy Fees Account and the Companies Wind- 
 ing-up Fees Account are also included. We find 
 £8287 surplus and £14,173 moiety of surplus of 
 interest on securities to the credit of the Post Office 
 Savings Bank and the Trustees Savings Bank Fund 
 respectively beyond the interest paid or credited to 
 depositors. The receipt of the Pension Fund taken 
 over from the National Telephone Company, the 
 
56 THE FINANCIAL SYSTEM chaf. 
 
 expeniefi of iidim:iiisteati:Oii of locd, loans in respect 
 of expenses .incurred by various Government Depart- 
 ■nients, and the receipts from, various Government 
 Departments other than those appropriated in aid of 
 Votes, figure also under this head, which is described 
 in the Estimates as^ ** iktra Beceipts." Here, for 
 example, appear admission fees to .National Galleries, 
 moneys .received for sales of photographs of pictures, 
 Brompton Cemetery burial receipts, sales of certain old 
 materi,ab, conscience money, contribution of £10,000 
 .from 'the Customs Revenue of the Me of Man, and so 
 rtn. 
 
 In the year under consideration the unexpended 
 cash balances of .grants of Parliament for .19.11-12 
 ■were ■with 'the auth.ority of Parliament appropriated 
 to the Exchequer instead of to the Old Sinking Fund. 
 The .amount, abmm on p. 34 of the Mnance Accounts, 
 is £142,377, and :figures as Miscellaneous Bevenne. 
 The .amount received, by the Inland .Eevenue Depart- 
 
 Year :i8 included under Misceiianeous. Eevenue. .Such 
 stamp represent payment for special services rendered 
 to particular individuals, differing therefore from the 
 ordinary Stamp Duties, which are taxes pure and 
 simple. On p. 35 of the Finance Accounts will be 
 .found the description, of the various Fee and Patent 
 Stamp, with the amount yielded under each head— 
 for example, Bankruptcy Court (Ireland), Civil 
 Service Commission (fees for examination), Judicature 
 (1^ proceedings), Imdm GmeUe (fee for insertions), 
 r^gist»tion of money-lenders, patents .f of .inventions, 
 
 r FINANCE ACCOUNTS 57 
 
 etc. etc. The Fee Stamp alone account for a total 
 of £745,946, and the balance £323,329 is made up by 
 Patent Stamp. 
 
 The total Revenue received into the Exchequer is 
 thus stated at something over £188,800,000. There 
 were, however, certain sums paid into the Exchequer 
 which cannot proprly be regarded as Revenue. 
 These are distinguished as OtJter Eocchequer Eeceijiis. 
 For example. Repayment of Advances for purchase of 
 BuiSmn for coinage, £1,400,000. The Mint purchases 
 bullion by means of an advance from the Exchequer, 
 repays the amount advanced when the coins are 
 issued (or paid for if made for a Colonial Government), 
 and accounts for the difference between the nominal 
 value and the bullion value in its receipts. The 
 receipt into the Exchequer is in this caae mere repay- 
 ment of a temporary loan, financed out of the 
 Exchequer Account. In the same way the Interest on 
 certain EaxAequer Bonds, issued under the Capital 
 Expenditure (Money) Act, 1904,^ repaid from Army 
 and Navy Votes, is balanced by a corresponding entry 
 on the other side of the Finance Accounts, which it may 
 be regarded as cancelling. The interest paid to the 
 bond-holders figures among the debt charges, but the 
 amount due for naval and miUtary loans is brought 
 into the accounts of the Navy and Army by a grant 
 of Parliament, which they pay into the Exchequer. 
 Money raised by renmd of BSk ami Bonds. Details 
 of these transactions are shown on p. 87 of the Finance 
 Accounts, and at greater length in the Annual Report 
 
 I See post, p. 80. 
 
 i 
 
58 THE FINANCIAL SYSTEM 
 
 of the Commissionera for the reduction of the National 
 IhM, The .iist item,, TrmS'Wy BUk fm Smpplf, 
 £30,400,000, refers to the borrowing by Treasury 
 .Mils under the authority of the Consohdated Fund 
 Act to make good, the sums voted in Supply. When 
 the taxes, are eoUecsted and the .Ixchequer Account .is 
 in & position to repay these: advances, the Bills, which 
 have perhaps been renewed from time to time, are 
 extinguished, and a cross entry of £29,000,000 appears 
 on the other side. The next item, By issm of 
 'CA«f ^uer Awidii, under the Capital Expenditure (Money) 
 Act, 1904, shows the proceeds of Bonds issued under 
 that .Act. 
 
 Mmk we come 'tO' Money misei by Ofmlim of 
 .£MMond IMifof v&nmm Pwpom.— The machinery 
 her©: set in .moti.on .is intended to raise, capital .sums for 
 'Certain purposes in the nature, of capital. expendi.ture. 
 .Sieh,^ for example, ..are the construction of telephone 
 truniW^ which last for several years and are 
 'Capable of 'earning an annual revenue for a consider- 
 able length of time. Instead of charging the whole 
 amount to the ¥oteS: every year— by which they 
 would be 'Unduly burdened— the principle is adopted 
 of setting up terminable annuities calculated to 
 eadii.nguish the debt within the Ife of the works or 
 plant,, .and the amount :necessary .for interest and. 
 Sinki:ng Fund— in, other words 'the annuity— is charge- 
 •We on the Vote for the Department concerned until 
 it ceases.. There .are also someti.mes temporarv 
 advances on deficiency of the Consolidated IWd- 
 when the Exchequer Account is financed by advances 
 
 V FINANCE ACCOUNTS 59 
 
 from the Bank. In the year in question no such 
 advance was received, but money was raised by 
 Treasury Bills and otherwise. After Capital of 600 
 8tm Camd Shmrm drawn by lot for repayment and 
 paid off in 1912-13, comes Repayment by the Cumrd 
 SMppmg Compa^Mf on account of the principal of 
 the loan advanced to it by Government, and Chima 
 Indmmiy, receips on accourd of £193,800, represent- 
 ing the instalment received from the Chinese Govern- 
 ment as compensation for the loss and expense to 
 which we were put by the Boxer Rising. A small 
 Bepayment of interest and principal of a Loan to the 
 Easi Afrim PffO&slmc^ closes the list. 
 
 The grand total, £242,895,364, may be regarded 
 as the figures at the foot of the credit side of the 
 National Pass-Book for the Financial Year. 
 
 We now turn to the issues out of the Exchequer 
 during the Financial Year. 
 
 Comolid(Ued Fund Services— The National Debt 
 Services are grouped into five divisions. First 
 come the Funded Debt, on which interest amounted 
 to £15,000,762, and TmmmMe AnmMes, amount- 
 ing in the year to £3,540,175. For details of Funded 
 Debt and Terminable Annuities see Finance Accounts, 
 p. 38. Over one and a half millions represent 
 annuities for life— the remainder are annuities for 
 terms of years. Every annuity, whether for life 
 or for a term of years, represents, in addition 
 to interest on debt, a sinking fund for extinction 
 of the original debt. Interest of the Unfunded 
 DM of a temporary or floating character accounts 
 
6o THE FINANCIAL SYSTEM ch^ip. 
 
 faf £1,171,8118. The Unftuided .Debt, as shown on 
 p. 89, .Mnanoe Aoconnte, consists mainly of Exchequer 
 ,Boni8. and Advanees. The MamagmheM of Ik IMd 
 cost £166,907. These sums were paid to the Bank of 
 England and 'the Bank of Ireland for the management 
 of Debt, Funded and Unfunded. Tim New SMmg 
 Fmid .amonnted to ,£4,620,80S,* 
 
 Next comes Boad Improvmenl Fufd,^ £1,172,205, 
 representing payments to the load Board on aeconnt 
 of 'tie net proceeds of duties on motor spirit and 
 of carriage Hcences. PmpmfUs to I^ml Tmrntrnm 
 Ammmto^ amonnted to £§,658,299. For details 
 and diatribntion between England, Scotland, and 
 Irdand, see p. 42, Finance Accounts. 00m Conr 
 sdm&ied Fufd Services are: CwU List, £470,000; 
 AnmmMm md Pmsiom, £820,883 ; Sakmes mi 
 AMmmmms, £66,468 ; Courts of Justice, £523,450 ; and 
 M'imxMmmms Smmoes, 4«tt,625. These amounts 
 ^are. ,ahown in great detail from. pp. 48 to' 67 of the 
 Finance Accounts. The total Consolidatod Fund 
 Senrices for the year amount to £87,017,980. 
 
 Next come the Supply Services, The Army 
 Services account for £28,070,800. It will be seen 
 from p. 71 of the Finance Accounts that this does 
 not exactly tally with the .grants of Parliament during' 
 the same year, owing to the existence of bal:ances 
 of former years unissued from the Exchequer, and 
 to' 'the fact 'that the total amount granted was^ not dl 
 issued, within the year. The balance of grants^ unissued 
 
 » a» Owifler Vin. for afl theiiit serwiiMii. 
 ■ Se© Cli»pt«r IX 
 
 w FINANCE ACCOUNTS 6i I 
 
 1 
 
 |: from, the Exchequer on the 81^st of March 1913 was I 
 correspondingly altered. (kdnameF€ustories,&200,Te- I 
 presents only a Token Vote. The factories are treated j 
 as independent enterprises which charge the Navy, 
 Army, India, ete., with the cost of manufacture and, j 
 recovering their expenses, do not in theory require any ' 
 separate grant to enable them to carry on their services. 
 A small sum is, however, inserted in the Estimates for 
 P^Mamentary sanction in order to bring the factories t 
 within the range of Parliamentary criticism. Nuvy 
 Smmes^ to which the same remarks apply as to the 
 Army Services above, are responsible for issues I 
 amounting to £44,365,000 ; Miscellaneous Civil Ser- 
 vices, £|>1,944,000 ; Customs and Eixmse, £2,824,000; I 
 Ifdmnd Revenue, £1,876,000; Post Offwe Services, \ 
 £28,024,000. The Supply Services, £151,604,000, 
 added to the Consolidated Fund Services, give a total 
 expenditure changeable against the Bevenue of nearly \ 
 £188,622,000. In addition to these are Ismm to i 
 nmt capital expmditwre under various Acts, £l ,488,000. 
 The capital expenditure here represented is extin- ! 
 guished by Aimuities placed upon the Votes of i 
 successive years, as explained above (p. 58). The 
 application of sinking funds in this manner obviates 
 the simultaneous creation and cancellation of public ; 
 debt. Advances for purchase of buUion for coinage, ; 
 and Inierest on EwcJiequm Bonds, correspond, with 
 
 on the other side of the account. The difference ■ 
 between the advance for the purchase of buUion 
 and the repayment of advance for that purpose 
 
63 
 
 THE FINANCIAL SYSTEM 
 
 u im to tie &ct that the. Ixolieqiier 1ms not yet 
 hmm repaid for all the bullion purchased, a portion of 
 the advances being ■Btil ontstanding. There^ were 
 also issued in respect of BiUs and Bonds paid off sub- 
 to remewd, ,£33,060,900, of which 29 millions are 
 on Treasury Bills for Supply and the remainder the 
 .issne of Ekcheqner' Bonds less 'bonds, paid off by 
 the National Debt CommisBaioners. Entries under 
 correspondi,ng titles on the other side have .abeady 
 been, rofecced. to. OW MnMng Fund will be ex- 
 ,plai,ned in 'Chapter YIII.; ,£4,800,000 are the 
 Temporary Advances .already referred to ,as 'received 
 into the Ikchequer. Cuna/rd Loan Repat/menis, 
 £130,000 ; Sum Cmd Shms, drawn and paid of to 
 the extent of £11,004 ; CMma Inimmity, £193,800, and 
 .Bm AJmm PnMed&miB Loan Repe^mmii, £2115, are 
 ^ai, payments for services in respect of which debt was 
 created, and are therefore appied'to the reduction of 
 debi. Details .are shown on p, 8«, ,Iina:nce Accounts, 
 finally, the balance in the Exchequer on the 
 Slat' of March 1913 is, at the Bank, of England, 
 £15^389,135 ; at the Bank of Ireland, £940,025 ; the 
 total amounting to £6,329,160, m compared with the 
 balance of £11,468,591 on the 1st of April 1912. 
 
 The next section of the .Mnance Accounts (p. 85) 
 consists, of statements rel^ative to the^ National "'Hilt : 
 showing the debt created and reduced in the year; 
 the amount issued on account of Sinking funds, and 
 the^ afpication thereof; the capital account of the 
 Mational Debt on the^ .3l8t. of March 1918, and the 
 amount of gross capital UaMUties of the State, the 
 
 V FINANCE ACCOUNTS 63 
 
 estimated assets, and the Exchequer Balances. The 
 assets ^ consist of £39,015,000, market value of Suez 
 Canal Shares ; £400,000, Bullion advances from the 
 Exchequer unrepaid ; £46,530, Loan to East Africa ; 
 £1,311,203, due from the Colonies as contribution 
 to capital expenditure on the Pacific cable; and 
 £1,950,000, the nominal value of Debenture Stock 
 of the Cunard Steamship Company, held as security 
 for repayment of the advances made to it under the 
 Cunard Agreement Act, 1904. There is appended a 
 statement of contingent or nominal liabilities, namely, 
 liabilities to suitors in the Courts of Justice, to 
 bankrupts' estates, unclaimed dividends, or annuities, 
 etc. The next table gives a statement of all out- 
 standing guaranteed loans on the 31st of March 1913, 
 showing the particulars of the amount of each loan, 
 when, why, and on what terms it was granted, and 
 how the account of each loan stands as regards 
 amounts paid off and outstanding securities held 
 against it, etc. etc. The last table is a statement of 
 unrepaid advances made to or for Colonial Govern- 
 ments, etc., from Votes of Parliament. 
 
 With the Estimates for the Navy, Army, Civil 
 Services, and Revenue Departments before him, 
 showing the estimated expenditure on Supply Services, 
 the Appropriation Accounts giving the actual expendi- 
 
 1 Tbe true aaieta of the State ue, of oonise, Toiy mmh lurger, iuoluding 
 laiid, ImEdiiigB, ihip, Bloies, eto. Suez Qmal shales of the nominal ¥ahie 
 of fiOO frnnes ate now aeling at ten times that amount ; hut the drawings 
 m viewed with equanimity, as an odtoro de jmimance is issued gratis in 
 place of eaoh drawn share, and is awarded regular dividends of 25 francs 
 per annum less than an original share. The owner who invests his re- 
 paid capital of ISOO franos at @ per cent loses nothing. 
 
64 THE FINANCIAL SYSTEM chaf.v 
 
 tnfe on these services compared with the grants, and 
 the Hnance Accounts covering Consolidated Fund 
 'ServioeS' wd aH financing operations of the year, the 
 student is furnished with the necessary material for 
 understanding the financial, position of 'the country 
 during the period which they cover, and will have 
 Httle difficulty in folliowiag the several items which 
 igire in the accounts. In Chapters VII. and VIII. 
 will be described the various operations by which 
 Qovetnment borrows, temporarily or adds to the 
 permanent or Funded Debt, the management and 
 .redemption of debt, ^aad the Capital Account of the 
 ation« 
 
 THE AUDIT OFFICE, THE PAYMASTER-GENERAL, 
 AIO> FUBIIO ACOOUMTIlfa 
 
 The Estimates having been prepared by the Depart- 
 ments, sanctioned by the Treasury, approved by the 
 House of Commons, and embodied in the Appropria- 
 tion Act, there is now statutory authority for the 
 expenditure of the country upon Supply Services. 
 As akeady stated, charges upon the ConsoHdated 
 Fund are authorised by various statutes more or less 
 permanent. The ConsoUdated Fund Act has granted 
 the funds necessary for meeting the Supply charges, 
 but before money can be issued from the Exchequer, 
 the Comptroller and Auditor-General, who presides 
 over the Exchequer and Audit Department, must 
 authorise the issue. This officer is appointed by the 
 Crown, is independent of the Treasury, and responsible 
 to the House of Commons alone, though like the 
 judges he can be removed from office by an address 
 to the Crown voted by both Houses of Parliament. 
 His powers and duties are regulated by the Exchequer 
 and Audit Act, I866.1 
 
 When money is required for ConsoHdated Fund 
 
 ^ Appendix I. 
 
 65 I 
 
§6 THE FINANCIAL SYSTEM chap. 
 
 Sorvioes, the Cbmptuoler and Auditor-Geaeral m 
 ■»§ niied, and authorised by a requiiaition signed by 
 twO' 'LmiB of the Tieaswy to .grant a credit to the 
 Treasury upon, the .aecoiint of His Majesty's Ex- 
 oieq ner at the Bank of England or Ireland., If 
 satisied 'with the correctness, of this, requisition, and 
 that it :is dtily based, upon statutory .sanction, he 
 .grants the credit,, which is. 'transferred to the Bank 
 concerned. If, however, 'the money is, required ,for 
 ,Siipply Services a diierent^ procedure is. requisite. We 
 have seen that the grants of the House of Commons 
 ,aEe made in form, 'to' the Sovereign. ,A Royal Order 
 is. therefore :neoe8saEy to^ ;plaoe the money at the 
 disposal, of 'the Treasury, .and the 'Comptroller and 
 Auditor-Greneral must be furnished with such an. 
 Order (prepared by the Treaauiy, signed by the 
 .Sovereign, .and countersigned by 'two Lords, of the 
 Treasury) in conjunction with the Treasury requisition 
 'before he ffmnU a credit for Supply Services. The 
 requisitions in thii latter case must state the services 
 to be provided for and the amounts required 'in order 
 that the 'Comptroler and Auditor-General may be 
 satisfied that the amounts do not exceed 'the povision 
 made under each head by Parliament.* 'The Comp- 
 'troler and Auditor -General and the Treasury re- 
 ceive every day two accoante-^ne from the bL of 
 England and the Bank of Ireland of receipts into and 
 iWeB out of the GoBsolidated IWd, and 1 from the 
 Revenue 'Departments of sums paid to the Fund. 
 The ,Paymaster-General, .an unpaid ,member of 
 
 ^ §m imm,^ Appendix ¥II. 
 
 vi THE AU,DIT OFFICE 67 
 
 the Mnistry, fulfils the duties of a banker for the 
 various public Departments with certain exceptions.^ 
 The moneys issued from the Exchequer for the 
 various Services are paid to his Supply Account at 
 the Bank of England. For each of the Civil Service 
 Votes he keeps a separate aceount ; but the several 
 Votes for the Army are included in one Army Account, 
 and there is similarly one account for the Navy. To 
 tl|ese accounts he credits the sums issued from the 
 Exchequer, and debits the amount of the various 
 drafts or orders drawn on him by the several Depart- 
 ments. These drafts require the signature of two 
 prescribed ofiGicers, one of whom should be the Account^ 
 ing Officer or his authorised representative. The 
 Pajrmaster-General is not concerned with the sub- 
 heads of the Departments' accounts, but only with 
 their total grants. He attends to the payment of 
 penaona, retiring aUowancea, etc., which are notified 
 to him once for all by the Treasury when they are 
 awAd.. The S«p^ Curt iT. ^J^, 
 ^^iO^ce. 
 
 The Revenue Departments do not bank with the 
 Paymaster-General, but keep separate accounte at 
 the Bank of England. 
 
 Payments in respect of certain Civil Voted 
 Services and Consolidated Fund Services are made 
 in Scotland by the King's and Lord Treasurer's 
 
 * Mainly the Beve&ue Departments and the service of the public debt. 
 
 * For the duties of the Paymaster-General see also p. 87, and the History 
 ■of the Bank qf England and its Financial Services io the State, by Professor 
 Eugen von Philippovich, of the University of Vienna. Second edition. 
 Translated for the National Monetary Commission by Christabel Meredith, 
 with an. Intsodmotlon by H. S. Foxwdi^ Waahingtony 1911. 
 
68 THE FINANCIAL SYSTEM char 
 
 Bemeiiibiaiioer, and in lieland hj tlie Treasurr 
 RiliiGiiibraiicjcr and .DeDntv Paymaster. In ordsr 
 to' meet these Bayments the Kinir's and Lofd 
 TreasTirer's Bemembiancer obtains 'funds from the 
 'Riwiiniiei I)eimrtnientB in Bdinlmm'h. and renays 
 "the Departments which make the advances by a 
 'dnrft cm thfi^ Paymaster - GtenemL The Treasury 
 Bemembraneer for Ireland obtains his funds from 
 'the Exchequer account at the Bank, of Ireland, and 
 from, the Supply account of the Paymaster-Oeneral. 
 The Tarious .Acconntinff 'Officers at the close of each 
 day forward, to 'the three authorities mentioned a 
 mxti&ed list of ofieo ^drawn 'upon them, showing the 
 .nature, of the .service, the amount of ^each order, and 
 me name oi une payee, inese usiss serve oma as an 
 'intimation, of liabilities to be met, and. as a check 
 'unon 'tho' orders "when they are 'uresented*^ 
 
 The .Acconntine Officers of the Beyenue Depart- 
 .ments ^draw npon 'their departmental .accounts at 
 the Banks of England and Ireland and mA upon 
 the Paymaster -General except for .adjustment 
 purposes. The collectors and receivers of revenue 
 .ai6 allowed 'to ^cash out of the moneys collected by 
 them orders ;i8sued for .any authorised service, but 
 the amounts so advanced are repaid to the Eevenue 
 Departments out 'of 'their Parliamentary grants. 
 'This procedure obviates the unnecessary movement 
 
 The 'Principal Accountants referred to in section 11 
 
 * Em Mtpmi lo fli Jfolidnol Mmulaf^ Commimm m the Fiscal Systems 
 tf UmM 8mm, Mm^glMmit Wmmm^ md Qemmmy, WMhiogtoii, 1910. 
 
 VI 
 
 THE AUDIT OFFICE 
 
 69 
 
 of the Exchequer and Audit Departments Act, 1866, 
 are the Chief Cashiers of the Banks of England and 
 Ireland (for the service of the debt), the Comp- 
 troler-Qeneral of the National Debt, the Pajnnaster- 
 General, and the Accountant-Generals of the Eevenue 
 jjepajLi/iueniis* 
 
 In order to keep himself in funds the Paymaster- 
 General makes daily requisitions upon the Treasury, 
 stating that the issues are required, and specifying the 
 Services and amounts. The Treasury then takes 
 steps to direct a transfer from the Exchequer to his 
 Supply Account. No Vote is held at the disposal of 
 a spending Department untE the Treasury gives the 
 Department formal notice that the money is available, 
 or gives special authority for payment in anticipation. 
 This formal notice is not issued until the Vote has 
 been taken in Committee of Supply, reported to the 
 House, and adopted, the necessary Ways and Means 
 granted by Parhament, and a Royal Order issued. 
 
 Part II. of each Estimate opens with the words 
 "Head" or, if more than one, "Sub-heads under 
 which this Vote will be accounted for by " a specified 
 officer or Department. The officer nominated by the 
 Treasury for this purpose is called the Accounting 
 Officer. He is usually the permanent head of the 
 Department which administers the Vote, or, if the 
 permanent officer is too busily occupied with adminis- 
 trative affairs, the Accounting Officer should be one 
 of the highest permanent officials in the Department. 
 It is the duty of the Accounting Officer to rendll 
 certify to the accuracy of the Appropriation account 
 
70 THE FINANCIAL SYSTEM cum. 
 
 of 'Ms Vote, .stowing the amoimts. .granted by Parlia- 
 mcEt imder each aub-iead,; 'the amoimts. actually 
 expended, under eacb sub-head, wi:thin the year ; 'the 
 expenditure less 'thou 'Ostiuiated or more than esti- 
 mated under each sub-head, and an explanation of 
 Tariations which exist 'between the grant md the 
 expenditure. It is for liim to see that aU expenditure 
 is properly authorised and brought to ^accouut under 
 its appropriate, sub-head, and that no financial 
 irregularity :is. committed within his Department. 
 Be. should call attention to any extra¥agance or 
 irregularity. If it is proposed to him to make a 
 payment from, the^ Tote wMch he does not regard as a 
 proper charge to the Tote, it is his duty to offer 
 obfection, and if he ,is over-ruled by the head of 'Ms 
 Department he should then ■record Ms objection in 
 writing. Om receipt of a written instruction from, 
 Ms superior officer oTer-raling Ms objection, he is 
 absolved from personal responaibihty. Otherwise he 
 :i8 .liable for any payment wMch may be disallowed m 
 not being a proper charge upon the Vote for wMch 
 he is accountable. It is through the Accounting 
 Officer that revenues collected by Ms Department are 
 paid into the Exchequer, .and he .is the channel 
 ihrou^. wMch expenditure is. made. AU civil ex- 
 penditure incurred witMn the financial year wMch 
 hm .actuaiy come .in course, of pajroent is included 
 witM.n the accounta of 'the year. .If, for example, an 
 ^ordeT' for payment is. dated the 31st of March, payment 
 ;ia. recorded, as. having been made witMn the year, 
 allihoiigh the order may not be 'Cashed, by the recipient 
 
 VI THE AUDIT OFFICE 71 
 
 until a later date. Should, however, an order issued 
 during one financial year not be presented for payment 
 before the 30th of June in the next financial year, it is 
 regarded by the Paymaster-General as out of date, 
 and the owner must obtain a new order bearing a 
 later date, wMch is charged against the account of 
 the yesjr in wMch it is paid.^ Sums advanced or 
 imprested to sub-accoimtants are not final charges 
 against a Vote except so far as an account has been 
 rendered to and allowed by the Accounting Depart- 
 ment. If, however, one Department acts as Agent 
 for another,* the pajwiint made by the Agent Depart- 
 ment is charged against the Vote of the Principal 
 Department for the year in wMch it was advanced, 
 if the account of that year be still open, although the 
 recovery may not have been made until after the 
 31st March. The year is thus made to bear its proper 
 burden. The same principle applied to a payment 
 before the 31st March made, for example, by India on 
 behalf of the Imperial Government, and repaid to 
 India after the 31st March, throws the burden of 
 pajrment into the year of repayment, in wMch the 
 charge first " actually came in course of payment " 
 from Imperial funds. 
 
 « Army ami Navy onJoia may bo paid up to tlie Wk September in the 
 finanoua year {oiowing that in which they were dwwn. 
 
 * This happens when Deportment A, which has not been provided by 
 Fkriiament with f unda for the purpose, acts outside its ordinary functions 
 aa an intermediary to supply articles for Department B owing, for example, 
 to urgency or to the fact that A by reason of large contracts or expert 
 knowledge ia in a better position than B to obtain what is required. In 
 mmk cases A icootom the amount of its expenditure from B as an agency 
 payment. 
 
7t THE FINANCIAL SYSTEM ch4f. 
 
 .Receipts sm efedited to the account of the financid 
 jmt im which they .are leceived. 
 
 K a Departmeat while keeping within the total 
 of iti^ .Pariiiinentarj .grant earoeeda the total ^provided 
 for its requirements under one or more sub-heads, the 
 authority of tie Treasury is .nuceeaary and sufficient 
 tO' enable it to meet the excessei? on those sub-heads 
 by savings on other portions of its grant. Vmmmi or 
 'transfer of credits, is not permitted between one civil 
 Vote and another. But since 1862 the annual Appro- 
 pri^ation Act provides 'that^ if a necessity shall arise^ for^ 
 incurring expnditure not provided for in the sums 
 appropriated to Naval and Ifiitaiy Services by the 
 Act, and which it may be detrimental to the public 
 service to postpone until provision can be made for it 
 by Pariiament in the usual course, the respective 
 Departments may, with the sanction of the Bmsuiy, 
 defray temporarfly such 'expenditure out of any 
 surpluses which may have been or may be efiected 
 by the saving' of eapenditure upon Totes within the 
 same Departments. The form of the Appropriation 
 Act was amended in 1904 so m to ,give Parliamentary 
 sanction to the expenditure of . Appropriations in 
 ^Aid, and again .in 1907 to^ legalise the practice of 
 .^ending suiplus Appropriatiom in Aid under one 
 Army or Navy Vote to make good a deficiency under 
 another Army or .Navy Vote. The present practice 
 wil, be. seen on. reference to sections 4 and B of the 
 Appropriation Act, 1912, printed in Appendix VI. 
 The fact that naval, md military expenditure is 
 :inourred m distant parts of the world makes it difficult 
 
 THE AUDIT OFFICE 73 
 
 to forecast the out-turn of the accounts in time to 
 avoid excesses by Spring Supplementaries or to close 
 the accounts as early as those of the Civil Depart- 
 ments. 
 
 On the 4th March 1879 the House of Commons 
 resolved/ on the motion of Mr. Monk, 
 
 That it is desirable that a statement of every case in which 
 the Naval and Militaiy Departments have obtained the 
 sanction of the Commissionera of Her Majesty's Treasury to 
 the application of an actual or anticipated surplufl on one 
 Vote to meet a deficiency on another Vote witMn the financial 
 year, setting forth the representation made to them by the 
 respective Department, be laid upon the table of the House 
 within three weeks after such sanction shall have been given, 
 if Parliament be then sitting ; or if Parliament be not then 
 sitting, withm three weeks after tiie next meeting of ParMa- 
 ment. 
 
 The Treasury Minute presented to the House in 
 pursuance of this Resolution (known as the Monk 
 Eesolution) is printed and circulated, and statutory 
 sanction is given to the Treasury action in the 
 following Appropriation Act. 
 
 The Appropriation account ' is examined by tiie 
 Comptroller and Auditor-General, who certifies as to 
 its correctness, and adds a report to Parliament upon 
 any feature of the accounts which seems to caE for 
 observation. In particular he calls attention (1) to 
 every case in which it appears to him that a grant 
 has been exceeded ; (2) to every case in which money 
 received by a Department from other sources than 
 
 t lys importiuili Beflbliilifi& is not reported in Hansard, 
 s For the 1 oim of an AppopEiaMon MMMnmt wm Appendix XIIL 
 
74 THE FINANCIAL SYSTEM chap. 
 
 the grants for the year has not been applied or 
 
 •^ftccoiuited, for in ^accordance with the directions, of 
 Pttiament ; (8) to every case in which a sum 
 charged against a grant .in unsupported by proof of 
 payment or did not occur within the period of account, 
 or for any other reason was not properly chargeable 
 ^ai,nst the grant. The Appropriation accounts of 
 the CSvil Votes are rendered on or before the 30th 
 November, and printed, under the direction of the 
 CbmptroMer and Auditor-General, together with his 
 reports, and 'are forwarded to the Treasury for 
 presentation to the House of Commons. The Civil 
 Service and Revenue Departments accounts and 
 reports are ref uired to 'be submitted to the House not 
 later than the Slst of January or within, one week 
 ^after the meeting' of Parliament. Separate accounts 
 and reports are presented for the Army Services, 
 whose: Appropriati,on .accounts must be rendered to' 
 the CbmptroBer and Auditor-General not later than 
 the 3.1,st of ,December, and forwarded, by him to the 
 'TteMury with his report not later than the 3,1st of 
 January folowi,ng. They must be presented by the 
 Reasury to the House of Commons by the 15th of 
 February. These. provisi,onfi of the Exchequer .and 
 .Audit .Act have been, appEed to the Navy Appropria- 
 tion account in accordance with a recommendation 
 of the Committee of PubHc Accounts, in 1870. If 
 the Treasury fail to present any report of the 
 Comptroller and Auditor-General 'within the time 
 prescribed as above by the Exchequer and Audits 
 Department Act, ,it is enacted, that the Comptroller 
 
 „ THE AUDIT OFFICE 75 
 
 and Auditor-General shall himself forthwith present 
 such report. 
 
 The Public Accounts Committee, as we have seen, 
 is set up early in each Session. The practice is to 
 select a member of the Opposition to act as its Chair- 
 man, and the Financial Secretary of the Treasury 
 as one of the members. To it are referred the Appro- 
 priation accounts, Consolidated Fund account, and 
 certain other accounts. Its first business is to 
 inquire into any cases in which the Votes taken in 
 Committee of Supply have been exceeded. On 
 receiving satisfactory explanations the Committee 
 specially reports to the House, and recommends that 
 the amount exceeded should be granted by an Excess 
 Voto.^ It then proceeds to go through the several 
 • accounts with the Reports of the Comptroller and 
 Auditor-General, taking evidence from the accounting 
 officers, the Treasury officials, the Comptroller and 
 Auditor-General, and any other witnesses whom it 
 may desire to examine upon the accounts and reports. 
 It reports to the House of Commons the conclusions 
 at which it has arrived, and makes such recommenda- 
 tions as it may think desirable with regard to any 
 irregularity, or as to the principles and regulations 
 which should govern the receipt and expenditure of 
 public money and the method of accounting. When 
 the Committee has made its final report the Treasury 
 each year issues a Minute conveying to the several 
 Departments the instructions necessary to give eiect 
 
 » An Bxceaa Vote wImsq gnmfted, follows the comxm of otlier Votes 
 exoept tliat bo 'furtlier iMseomt id it 'is ;s9iideied.. 
 
76 THE FINANCIAL SYSTEM cm^. 
 
 to the wMm of the Committee. It .sometimea 
 .happem that the 'Treasury dom not concur in the 
 recommendations of the Committee, in which case 
 its reasons for difering are stated in the Mnnte, and, 
 if necessary, brought before the Committee for further 
 consideration in the mit Session of Parlament. This 
 course is always f oDowed when, the Committee recom- 
 mends the 'disaiowanc© of a charge which the Treasury 
 thinlffl: proper to' allow. A day is, when possible, 
 appointed, by the House for the considerati,on of the 
 Committee's ,Report». 
 
 ^The Treasury Mnute upon the Reports of the 
 Committee of Pubic Accounts is. laid before the 
 'Committee at its :irst meeti,ng in, the ,f oUowi,ng Session. 
 At the end of each Appropriation .account the surplus 
 of the Vote is shown m an amount to be surrendered 
 to 'the ,lxchequer. In the absence of statutory 
 provision over-riding this destination of the surplus, 
 it is applied under the Act 38 & 39 Vict. c. 40, ss. 4, 6, 
 and 6, to the redemption of the National Debt as the 
 Old Sinki,ng' Fund, The amount so surrendered is the 
 dilerence between the grant for the year and the 
 ejqjenditur© for the year. It does not necessarily 
 leave a Bepartment without 'funds; the Eevenne 
 Departments, for example, require large working 
 balaiices, which at© regulated by 'the frequency and 
 amounts of their payments into the Exchequer. For 
 the purp'ose of convenience, the ,surrender of un- 
 expended, grants is pierally carri^ed out by a " short 
 ,issue" from the grant lor 'the ,followi,ng' year. In 
 other' words, an amount equal to the sum. to' be sur- 
 
 THE AUDIT OFFICE 77 
 
 rendered is canceled in the books of the Exchequer 
 on the current Vote of the Department concerned. 
 By this means superfluous payments, which would 
 increase the miscellaneous revenue of Exchequer 
 receipts on the one hand and sweU Exchequer issues 
 on the other, are avoided. 
 
 It is to the Accounting Officer that the Auditor- 
 General addresses his queries, caling attention to 
 apparent irregularities or requesting explanations. 
 ICiior irregularities rectified by this process in the 
 course of the year are not referred to by the Auditor- 
 General in his Report to Parliament. 
 
 A statement of assets and liabilities at the end of 
 the financial year is furnished by each Department, 
 and audited by the Comptroller and Auditor- 
 General. 
 
 In addition to his audit for the House of Commons 
 — known as Appropriation Audit — the Comptroller 
 and Auditor -General examines the public accounts 
 on behalf' ot the liilsury in order to ascertain that 
 expenditure requiring the sanction of that Depart- 
 ment has been duly authorised. The Treasury 
 requires the numbers of every establishment, the 
 rates and scales of personal remuneration, and all 
 special expenditure to be submitted for Treasury 
 approval. 
 
 The Bevenue Votes have been added to Schedule 
 
 B of the Exchequer and Audit Act, and are audited 
 as directed by section 29 of that Act.^ Grante for 
 
 ^ Treasury Minute of 27th March 1899 printed in Epitome o/ Public 
 AecourUa MAporta, p. 423. 
 
78 THE FINANCIAL SYSTEM cHAf. 
 
 p-yments of Old Pensioiifl. were added, by Treagiiry 
 Mniite of the 31st August 1»09.^ An additional 
 detailed test examination, is made of selected portions 
 of the Navy, Aimy, and .Bevenue Accounts.. 'The 
 examination of the Comptroller and Auditor-General 
 of the receipts of revenue is governed by section 33 
 of the Exchequer and Audit Act ; the test audit of 
 Store accounts by Treaaury Minute, of .15th November 
 1886/ and the test audit of Manufacturing and 
 Expenie. Accounts, of the Army and Navy by the 
 Army and Navy Audit Act, 1880. The Comptroller 
 and Auditor-General also '^ezami.nes the Treasury 
 Chest Fund and Civil Contingencies. Fund accounts 
 (see Chapter ¥11.), the Ordnance Factories, Army 
 Clothing' .Factory, and Dockyard accounts, and 
 reports to Parliament upon them. Under the pro-' 
 visions- of Special Acts, he examines and reports 
 on tie accounts of Chelsea Hospital (Capital and 
 Income), Greenwich Hospital (Capital and Income), 
 Court of Chancery (Funds), Post Office Telegraphs 
 and Telephone (Capital Account), etc. 
 
 The annual Reports of the Comptroller and 
 Auditor-General, the discussions and reports of the 
 Pubic AcC'Ounts Committees and the Treasury Minutes 
 bearing upon them, by their constant and vigilant 
 scrutiny of out' inandal system, tend to its continual 
 improvement and maintain it in a state of high formal 
 'efficiency,. The " Epitome of the Beports from the 
 
 • AfiMBdix to Mspmi if FMc AceowmH €hmmim, 1887. p. 206.. 
 
 .jfffdiiifii, p, 187. 
 
 I^E AU.DIT OFFICE 70 
 
 Committees of Public Accounts 1857 to 1910, and of 
 the Treasury Minutes thereon, 1911 " (Home of Com- 
 mom Pa/p&r 86 of 1911),^ though necessarily a collec- 
 tion of case-made decisions, contains many important 
 expositions of general principle and detailed explana- 
 tions of financial macliinery not to be found elsewhere, 
 and is our nearest approach to a collection of materials 
 for a financial code. 
 
 ^ Heimftar wf eited to as HmSooL 
 
CHAPTEE VII 
 
 This office 'Of the Lord Higli lliiliiter, a great func- 
 tionary of tbe State, who was responsible under the 
 iSo?erei,gn, for the inandal administration of the 
 country, has not been filled in England for the last 
 two centuries.^ It has instead been put in commission 
 and exercised by the Lords Commissioners of His 
 Majesty's Treasury appointed by Letters Patent 
 under the Great Seal.* The first commissioner men- 
 tioned, in the Letters Patent, the Mrst .Lord of the 
 Treasury as he is called, is usually the Prime Minister ; 
 the second is Cihancellor of the Exchequer. There are 
 pneraly three^ ■others, known, as Junior Lords,® and 
 
 * UmIssI, Lorf, High Traamirer in Inghnd wm 11m Duke of Siumlniiy 
 (wiigiiiMl,:aOtIi October 1714), 'TImw wm » I*orf Hkk 'Ttowi^ 
 
 'till 18IC 
 
 « For a form of Letters Patent appointing Oommiieioiien ** for ©xecnting 
 the office of Treaaurer of the Exchequer of Great Britidit ftad Lord Bigli 
 T^asurer of Mand," see Anaon, Lam ami Omtom o/ He 0oiMiiliiltbfi, 
 lid, ed, vdL ii. part i p. 260. 
 
 • Till Act 6 Anne c. 41, e. 26, limited the Treasnrj CommlmioneES to the 
 nnmliea then existing, namely, one First Lord, one Chaneellor of the 
 Excheqmw, and three Junior Lords. Bnt when the British and Irish 
 Excheqnen were nnited in 1816 power was gi¥en by 66 Geo. III. c. 98, s. 14, 
 to increase the number of Commissioners by two. Todd's statement that 
 the three Junior Lords are one for England, one for Scotland, and one for 
 Iieliind, dewiibed by Sir W, Anaon as " traditional," is clearly unfounded. 
 
 8o 
 
 CWA'P. Til THE TREASURY 8i 
 
 sometimes a fourth Junior Lord who is usually unpaid. 
 These Ministers, who constitute the Board of Treasury, 
 have two parMamentary secretaries — ^the Parhament- 
 ary or PoUtical Secretary, who acts as the Chief 
 Whip, and the Financial Secretary. They have also 
 a Permanent Secretary (or sometimes two, as at 
 present) and a small staff of permanent oflBicials. The 
 Mrst Lord does not concern himself with the details 
 of finance unless some special emergency arises. He 
 has the patronage of the Board, save in so far as he 
 delegates it in minor matters to the Parliamentary 
 Secretary, and nominates for approval by the Sovereign 
 the incumbents of certain Crown livings. He also 
 recommends to the Sovereign the names of persons to 
 be the recipients of Civil list pensions or Eoyal 
 
 Boimtv. If he is Prime Minister, he has other duties 
 
 ■III v 
 
 which need not here be alluded to. The Chancellor 
 of the Exchequer corresponds very closely to the 
 Minister of Finance in other countries. It is his 
 function to regulate thepublicincome andexpenditure, 
 to propose any change of taxation, or any measures 
 affecting the pubMc debt, to keep the public services 
 in funds, and to supervise the currency and the 
 banking legislation of the country. He is ex qffmo 
 Master of the Mint. His principal assistant is the 
 Financial Secretary, who attends to the details of 
 financial business and in particular to the sanction 
 of estimates and to the piloting of them through the 
 House of Commons. The Financial Secretary also 
 represents in tiie House a number of Departments 
 which have no ministerial Head. The Pflrliamentaiy 
 
112 1 0,12#' r l.WilW:dAl-» iSialliM CHAP. 
 
 Secretary-sometimeB described as the Patronage or 
 'Politi,cal, Secretary— takes no part in the financial 
 affairs of lie country, but assists the Krst Lord in 
 the organisation of his supporters and the .management 
 of ParMamentary business. The Junior Lords of the 
 Treasury are almost invariably niembers of the House* 
 of Oonunons. One of them is customarily charged 
 mOi pnestionfi relating to the grant of pensions and 
 sipwumuati^^ aUowances by 'the Treasury, but^ 
 eacoept for the signature of Treasury warrants the 
 Junior Lords^ have .little other concern with the depart- 
 mental duties of the freasury and are utiKsed as 
 whip of the party or as representatives in the House 
 of Oonmions of Mnisters who are peers and have no 
 second Parliamentary assistant. 
 
 The p»li«nentary Secretaries of the Treasury are 
 appointed by the Board and not by the Crown ; neither 
 do they hold office " 'under the Crown," but mder 
 flie Board, which meets formally only for the purpose 
 of " calling in " or appointing new Secretaries. 
 
 The 'poweiB of the 'Treasury are very great, resting 
 partly upon the prerogative of the Crown in so far as 
 its exercise is. conmoitted. to the Treasury in matters 
 of finance, and partly upon a variety of statutes. 
 ^Section 27' of the Exchequer .and Audit Act. 1866, gives 
 it practical, control over the whole public expenditure 
 ^and enaUes:^ it ^^to^'''''niiQ]ie that' any measure tendi^ng to 
 increase that expenditure should be submitted for 
 its concurrence before it is adopted under nain of 
 being diaaJIowed. Proposals for the incr^ of 
 establishments;, increased, rates of pay, additional 
 
 THE TREASURY 83 
 
 services or new works, require Treasury sanction, and 
 are questioned by the Auditor-General if they are put 
 in force without the authority of the Treasury. By 
 reason of its central position the Treasury undertakes 
 the regulation of general questions affecting the 
 organisation of the Civil Service at large, prepares 
 Orders in Council governing the service, and issues 
 circulars designed to promote uniformity in the 
 treatment of officials in different departments. The 
 bulk of its departmental business consists of the 
 control of expenditure by the examination of pro- 
 posals for increased pay or establishments or new 
 services, for all which it requires full justification, 
 and the award of pensions for the Civil Services. 
 Naval and military pensions are regulated by the 
 King's Regulations and the Army Warrant ad- 
 ministered by the Admiralty and the War Office 
 respectively. 
 
 The great Revenue Departments (including the 
 Woods and Forests), the Mint, the Stationery Office, 
 the Office of Works in England, and the Board of 
 Works and Valuation and Boundary Survey in 
 Ireland are subordinate to the Treasury. As akeady 
 mentioned, the Treasury represents in Parliament 
 certain other Departments which are not otherwise 
 subordinate to it. It accounts for a large number of 
 Votes which do not naturally fall under any other 
 Department. It is responsible for seeing that the 
 Civil List does not become indebted, and a high 
 officer of the Treasury is appointed Auditor of the 
 Civil List. In addition to its general supervision 
 
 G 2 
 
84 THE FINANCIAL SYSTEM cHAt. 
 
 of the finance of tie country it hm therefore a variety 
 of miwelaneoTO dtttiee which do not require to be 
 further epecified in detail for om present purpose. 
 
 The buflineas^ of the Treasury in connection with 
 the preparation of the Estimates has been dealt with 
 in Chapter II. ; and the arrangements for the issue of 
 money feom the Exchequer to meet the daily needs 
 of the Government, in Chapter VI. It is mder the 
 necessity of watching the Exchequer balances in 
 ■order to avoid overdrafts. At 'the begi'nning of the 
 inancial year 'Treasury Bills are issued, under statutory 
 restrictions.* Tenders are invited at the Bank of 
 England by notice in the Londm Gmdie for bills to 
 be repaid at the date mentioned in each bill, or bills 
 .are issued at a fixed, rate of 'discount to the National 
 Bebt Commissioners or other persons who have 
 ^agreed to take them. The currency of the bills may 
 not exceed twelve months. A Treasury Warrant 
 authori,sing the B^ank of England to prepare and 
 ;ia8ne the bills is transmitted for the counter-signature 
 of the Comptroler and Auditor-General, and the 
 .amount received by the Bank for the sale of bills is 
 carried to the Exchequer Account. A form of a 
 Treasury Bill and of the necessary Warrants will be 
 found in Appendix ¥111. When the bills mature 
 they are paid oi on the dates specified upon them, 
 without days of grace, and are cancelled by the Bank. 
 ,Afi. the bulk of the income-tax .revenue is not encashed 
 'until late, in the^ financial. ,year, it is often necessary to 
 
 » 8m mpmmj Tmrnmy Bill AnH 1887 aui 1904, uid thi mmmA 
 
 OoiHoBiiiM .Vmifl. .Icti. 
 
 Ti, THE TREASURY 85 
 
 issue new bills in place of some or all of those which 
 are paid off at an earlier date. The Regulations 
 relating to Treasury Bills will be found in House of 
 Commons Paper 187 of 1889, embodying the Treasury 
 Minute of 31st May 1899.^ The principal relevant 
 enactments on the subject are the Acts 40 Vict. c. 2, 
 
 and 62 Yict. c. 6. 
 
 If the receipts into the Exchequer are insufficient 
 to meet the ConsoUdated Fund charges on the due 
 dates, recourse may be had to borrowing from the 
 Bank of England by deficiency advaiioes. (See 
 p. 22 ofile.) 
 
 Money may also be raised by Exchequer Bills ; 
 but since 1861 there have been no new issues of 
 Exchequer Bills, Exchequer Bonds and Treasury 
 Bills having taken their place. Exchequer Bills may 
 therefore be regarded m having a merely historical 
 importance. They bore interest (originally at a 
 daily rate), and might be used in payment of taxes. 
 Exchequer Bonds differ from them in being issued 
 for fixed periods, generally for one to three years, and 
 having a fixed rate of interest. They were first 
 introduced by Mr. Gladstone in 1853, and have since 
 been resorted to on many special occasions, notably 
 on outbreaks of war, the purchase of the Suez Canal 
 shares in 1876, and (to facihtate the conversion by 
 Mr. Goschen in 1888 of the National Debt) in 1889. 
 In 1905, Exchequer Bonds issued under the Knance 
 Act of that year were made redeemable in ten years 
 from the date of issue by annual drawings of one- 
 
 1 See Appendix VIII. 
 
86 THE FINANCIAL SYSTEM cha,. 
 
 tenlih of tiie total .188116. By 1 & 2 Qm, ¥. €• 26| s. 1 
 
 (2), tie 'Treasuiy mm ©mpeweidl, k connectioE witli 
 tke piiroliase of tlie National Telephone Company*8' 
 "i^ptem, to' issue Ezcheqiief ^Bonds for a term not 
 «3K»ecling twenty years :from the date of issue. ,Being' 
 .rodeenjable at i»d dates, Earoheqner Bonds are' less 
 'liable than Consob to^ :iiM5tiiation in price. The 
 Ikcheqner Bills and :Bonds Act, 29 Yict. c. 25, m 
 amended by 40 & 41 ¥ict. c, 2 and 52 & 53 Vict, 
 c. f , s. S, regulates the. issne of 'both 'these forms of 
 borrowing. By the Capital Expenditure (Money) 
 •Act, 1904, the Treasury are empowered to borrow by 
 Ikchef ner 'Bonds when they are anthonsed to borroiv 
 by terminable' annnities. Mnaiy, the Treasnry may 
 iseek Parliamentary authority for 'the creation of 
 mm' debt 'to which it :is desired to .give a longer 
 cmrenov.* 
 
 w 
 
 Apart from ontside borrowing, the Treasury is 
 able 'Within certain limits to meet its cash .require- 
 :ment8 'temporarily from certain funds at its dispoeal. 
 The Treasury Chest Fund, regulated by the Act 40 & 
 41 Yict. c. '45, ;i8 a central, banking fund under Treasury 
 control which exists for the purpose of laying down 
 funda abroad, (mainly by bills and telegraphic trans- 
 fers) to carry on the public services generally. There 
 are^ Treasury Chests abroad at various, naval and 
 military stations by means of which the services are 
 locally .inanoed at ^par, the advances being recovered 
 
 >' Wm '<lifi^'"liiit<]i7 'Of Bxoioqiir Bills, unci Exulieqiieff Bonds see mmm 
 iBte tboin: 'titl«s by Mr. 'Q. H. Hml in. PnlgnWe DkHmaqf of FoUUmi 
 A Mm <if Isolmiiiar Mood k piiBted, in Apf«nils. IX. 
 
 THE TREASURY 87 
 
 from the Parliamentary grants to the Departments 
 concerned. The profit or loss on the exchange 
 operations is charged against the Fund, which is 
 limited by the Act 56 & 57 Vict. 0. 18 to a capital 
 not exceeding £1,000,000 nor less than £700,000. If 
 the annual balance-sheet discloses a net profit on 
 exchas^, the amount is paid to the Exchequer ; if a 
 loss, the amount required to make it good is voted by 
 Parliament, and the working balance at the beginning 
 of the financial year is always now kept at £700,000.* 
 
 Another fund at the disposal of the Treasury 
 is the Civil Contingency Fund, regulated by Treasury 
 Ifinute of 13th May 1862. This Fund provides a sum 
 of £120,000,'' entrusted to the Treaaury to meet 
 unexpected demands and to make advances for 
 services to be afterwards voted by Parliament. No 
 final payment is charged on this Fund, but the amount 
 is recovered by a Vote of Parliament in the ensuing 
 year, and repaid to the Fund, which is thus kept 
 annuaBy at its maximum. Both the Treasury Chest 
 Fund and the Civil Contingencies Fund are kept in 
 the hands of the Paymaster-General and are audited 
 by the Compfcroler and Auditor-General. Certified 
 bfJance-sheets of the Funds, with the reports of the 
 last-named official, are laid before ParHament annually 
 before the necessary Votes are taken. 
 
 It may be convenient here to mention that, in 
 addition to sums reahsed by Departments in the 
 
 I for tlio hietoiy of tlie Fnnd see Affiendiz V. to Beports of Publio 
 Aooounts Committee, 1902, SamSook, p. 452. 
 
 « Inoraftaed to £180.000 by Smpplemontaij Bstimato taken on 11th 
 Fobnimy 1913. 
 
88 THE FINANCIAL SYSTEM chap.vh 
 
 course of their administration, the Treasury Chest 
 Fund, the CSvil Contingencies Fund, and the moneys 
 supplied to Mm from day to day from the ConsoHdated 
 Fund, the Paymaster-General holds large sums under 
 'the name of Deposit Funds, 'wfaich are merely kept 
 in suspense and are not due immediately (if at all) to 
 the Exchequer. In so far as^ there is no legal direction 
 to invest these Funds, and they remain as cash on the 
 account of the Paymaster-General at the Bank' of 
 England, this cash is used like other cash received by 
 Mm to meet current expenditure, before^ issues are^ 
 made from the Consolidated Fund, the necessary 
 «iiustment being „^e before l^e accoante of Z 
 y»ar are closed.^ 
 
 9m Tmmmf Mmm» nf lilli ApI I88IS prialecl 'in MmmMmk, 
 
 CHAPTEE VIII 
 
 THB HATIONAI* DEBT ; BAHKS Ot EHGLAlfB mB 
 
 An official Mstory of the National Debt is contained 
 in two Blue Books presented to Parliament— Report 
 by the Secretary and Comptroller-General of the 
 proceedings of the Conamissioners for the Eeduction 
 of the National Debt from 1786 to 31st March 1890 
 (0. 65S9 of 1891), and History of the earher years of 
 the Funded Debt from 1694 to 1786 (C. 9010 of 1898). 
 A Return is presented annually to the House of 
 Commons showing (1) the aggregate gross liabilities 
 of the State as represented by the nominal fimded 
 debt, estimated capital MabiHty in respect of termin- 
 able annuities, unfunded debt, and other liabilities 
 in respect of debt, the estimated assets and the 
 Exchequer Balances at the close of each Fmancial 
 Year from 1835-36 inclusive, and (2) the gross and 
 net expenditure charged annually during that period 
 against the pubhc revenue on account of the National 
 Debt, and other payments connected with capital 
 liabilities. The Tables contained in the annual Finance 
 Accounts embody all the essential figures of the year. 
 The Funded Debt was "originally so termed 
 
90 THE FINANCIAL SYSTEM chaf. 
 
 from the taxes, revenues, or .ftmdi. on. wMch the 
 iaterest of 'tie Pubic Debt was charged, though by a 
 ifaange aa^atioa of ideas the term is now applied 
 to the capital sum upon which 'the interest is payable, 
 the National Debt being familiarly known as The 
 ^Fimds." * Debt of a temporary character, such as 
 Ixchequer Bonds, Treasury Bills, ete., is distinguished 
 aa loating or unfunded debt^ and floating debt is 
 funded when it is definitely converted, into Govern- 
 ment Stock with the authority of Pariament. 
 
 The^ CommissionerB of the National Debt were 
 created in 1786 by the lot 2§ Geo. III. c. 31, entitled 
 " An, Ict^ for vesting 'Certain sums^ in Commissioners 
 at the ^end of every quarter of a year, to be by 
 them appied to the reduction of the National Debt." 
 The Commissioners were the Speaker, the Chancellor 
 of 'the .Exchequer, the Master of 'the Rolls, the 
 .locountant-'General of 'the Court of Chancery, and 
 the Governor and Deputy-Governor of the Bank of 
 England, all for 'the 'time Mng. The Chief Baron of 
 the Exchequer was added by 48 Geo. III. c. 142, & 32. 
 The Lord, 'daef Justice 'was substituted, for this 
 official (whose office was abolished in 1880) by 44 & 
 m ¥ict. 0. i8, s. 82. The .Act M & M Yict. c. 44 
 abolished the office of Accountant-General of the 
 Cburt' of Chancery, 'whose ,. duties, under the same 
 Act, devolved upon the Paymaster - General. In 
 practice the business of the Commissioners is^ per- 
 formed by a permanent Secretory and Comptroller- 
 General. 'Under 'the directi.on of the Chancellor of the 
 
 THE NATIONAL DEBT 91 
 
 Exchequer, though three Commissioners are required 
 to constitute a formal quorum. 
 
 The Sinking Fund established by Pitt could not 
 be maintained during the Napoleonic Wars, and even 
 when not suspended it was counteracted by borrowing 
 at a faster rate than the SinMng Fund accnnxulated. 
 In 1829 the Act 10 Geo. IV. c. 27 laid the true basis 
 of the Sinking Fund as the application of real surplus 
 revenue to the extinction of debt. The Act 38 & 39 
 Vict. c. 45,^ 1875, for which Sir Stafford Northcote 
 was responsible, governs in the main the SinHng 
 Funds of to-day, the Old Sinking Fund consisting of 
 the surplus of income above expenditure for the year, 
 as defined below, and the New Sinking Fund of the 
 balance of a permanent annual charge for the service 
 6f the debt, after defraying the actual expenditure 
 for such service. This permanent charge was fixed 
 at £27,400,000 for 1875-76, at £27,700,000 for the 
 following year, and at £28,000,000 for every subse- 
 quent year. This last amount has been varied by 
 subsequent legislation and now stands at £24,500,000, 
 under siijiion 4 of the Finance Act, 1910. 
 
 The Old Sinking Fund consists of the sum by 
 which the Exchequer receipts for the year in respect 
 of public income exceed the Exchequer issues in 
 respect of expenditure chargeable against income, and, 
 unless Parliament otherwise determines, it is applied 
 to the reduction of the National Debt, being issued 
 from the Exchequer to the National Debt Commis- 
 sioners to be applied by them to purchasing and 
 
 ^ Appendix X. 
 
92 THE FINANCIAL SYSTEM chap. 
 
 cancelK,iig consols or other Govemment securities. 
 It has at 'various times been .made applicable to capitstl 
 expenses, e,g, in 1897 to certain military works, in 
 1898 to the provision of certain, public buildings, in 
 1911 to the Development Fnnd, to sanatoria, and to 
 a loan to the East Africa. Protectorate. 
 
 Tie New Sinking Fund canno* be so briefly 
 defined. It consists of the portion of" the permanent 
 or annnal fixed, charge for 'the .National Debt which 
 is not required 'to pay the charges of .management or 
 the interest of 'the .Debt. To arrive at this we mnst 
 consider, fiisiy, annuities for Kf e or for a term of years 
 whi,ch have 'been purchased by the pmblc, 'through the 
 Post Office or otherwise, from the National Debt 
 Commi,saioners, The ori,gi,nal 'purchase 'was made bv 
 'tie delivery of stock, m of a sum of money sufficiei 
 'to buy stock of a prescri.bed amount which was 
 canceled at the 'time of 'the operation, and when the 
 purchaser or the term of years expires a corresponding 
 amount of debt .has been extiinguisied, 'the State 
 .having converted perpetu.al, debt into temporary 
 'd«bt at an increased, annual charge during its con- 
 tinuance. Secondly, there are terminable annuities 
 into which Government .has converted some of .its 
 own labilities, such as deposits in the Savings Bank, 
 capital expenditure on 'telegraphs and telephones, etc., 
 with 'the object' of ensuri.ng that out of the revenue 
 of each year ^shaU. 'be povided a sum suflldent not 
 only to meet 'tie .interest on capital but also to wipe 
 out the capital labilty within the prescribed period. 
 Consols or other Govemment securities are canceled 
 
 THE NATIONAL DEBT 93 
 
 when such annuities are set up, and when the period 
 has run off debt to the extent of the securities can- 
 celed has been extinguished. Thirdly, we have a 
 sum. of a million a year devoted to the drawing and 
 canceling of Exchequer Bonds created in 1905 and not 
 expiring entirely until 1915. The balance of the per- 
 manent charge unappropriated after meeting interest, 
 cost of management, and the charges referred to is 
 the New Sinking Fund, which must be appHed to the 
 purchase and redemption of funded or unfunded 
 debt unless an Act of ParHament otherwise deter- 
 nnnes. To avoid the simultaneous creation and 
 redemption of debt the New Sinking Fund has more 
 than once been suspended, e.g, by the Finance Act, 
 1900. Under Sections 7 and 8 of the Act of 1875 
 accounts of the Old and New Sinking Funds are to 
 be kept and publshed. The grand total of National 
 Debt (Capital Account, p. 91, Finance Accoumts) on 
 the 31st March 1913 was £656,473,765, made up as 
 folows :— Funded Debt, £593,453,857; Terminable 
 Annuities (estimated capital labilty), £31,519,908 ; 
 Unfunded Debt, £31,500,000. 
 
 The National Debt Commissioners require special 
 authority to lend out of the funds which they hold 
 on account of Post Office and Trustee Savings Banks. 
 They wiU not lend except on a statutory guarantee 
 from the Consoldated Fund, which is sometimes a 
 collateral security (see, e.jf., 52 & 53 ¥ict. c. 71, s. 8, 
 and 54 k 55 Vict. c. 24, s. 4 (3)). 
 
 The Banks of England and Ireland manage the 
 National Debt, keeping the registers in which are 
 
94 THE FINANCIAL SYSTEM cm^ 
 
 the names of holders and arranging for the 
 .iasfliie of stoek ^certiicates and the payment of interest. 
 Their remuneration for these services is regulated by 
 the Bank Act, 1892, 55 & 5i ¥ict. c. 48. The rates 
 allowed are : to the Bank of England, £325 per milUon 
 on £500,000,000, and £100 per milHon above that limit ; 
 to the Bank of Ireland, £300 per milKon. The rate of 
 remuneration for managing Treasury Bills ia ixed 
 at £200 per million sterling, and of Exchequer 
 Bonds at £I00 per million by 56 & 56 Vict, c, 48 ' 
 •ad i Idw. m c. 20, s. 10 (2). 
 
 The Bank of England is prohibited by its Acts 
 and Charters from lending tO' Government unless 
 authorised to do so. Such an authority is always 
 given by the Conaoidated Fund Acts of each session, 
 authorising the Bank to advance on the application 
 of the Treasury to the amount covered by the Act the 
 ■ums: required, for the public service in respect of any 
 supply granted in the same session. These are called 
 Ways ^and Means Advances. • 
 
 In addition to these functions, to the keeping of 
 the Exchequer Account,, and to the financing of 
 Government by Defideicy Advances, the Bank of 
 England has charge of the Note Issue, out of the 
 profits of which it makes a payment to Govern- 
 ment, amounting in 1912-18 to £186,731, which 
 figures among the Miscellaneous Revenue. These 
 payments are regulated by 24 Vict. c. 3 and by 
 7 A 8 Vict. c. 32. 
 
 By 3 & 4 Wm. IV. c. 98 the Bank of England was 
 
 granted the. ^exelusive right of Note^ .Issue within 
 
 THE NATIONAL DEBT 
 
 London and 65 miles around in return for an annual 
 payment of £120,000. It also pays to Government 
 £60,000 for exemption of its notes from Stamp Duty, 
 and out of profits of issue, m addition to the net 
 profit on all notes in excess of £14,000,000 issued 
 against securities under rights acquired since the 
 passing of the Bank Act of 1844.^ It also acts as 
 the medium for putting gold and silver coin into 
 circulation, and for withdrawing light gold, for which 
 latter service it receives a commission from the 
 
 1 Publications of National Monetary Commiasim, Waaliiiigtoii, 1911, 
 vol. i. p. 16. 
 
 * For full detail of the rolations between the Bank and the Govern- 
 ment see PhiUppovlch, op. cU, ante, p. 67 n.^ 
 
FOTHO WOIKB ■ IiOJfflS .AMB SPECIAL ACCOUNTS 
 
 Tm 'PiiMo Wortfl^ Loans Act, 1875, created a body of 
 unpaid Commissionais. for Great Britain ^called the 
 Fabic Works Loan Commissioners, whose business 
 is to supervise loans from pubic moneys for certain 
 purposes. The Commissioners are an independent 
 'body who are. kept in funds by .Acts of Parliament., 
 They :may advance money for the purpose of any 
 works mentioned in the Kist Schedule of the Act (as 
 'extended by 59 & 60' Vict. c. •42, s. 2) to any person 
 having power under an Act of Parliament or otherwise 
 to borrow for such a purpose. Their' powers and 
 duties as to requiring suJficiency of security for 
 ■repayment, rate of interest to 'be charged, realising 
 mortgages or oflier securities, etc., are laid down by 
 various statutes. Their worki,ng ejcpenses are voted 
 
 in Committee, of Supply, and a Bil m introduced 
 
 .annually to grant 'them the funds, they'' 'flquire for 
 loans, and to .authorise^ the writing off of their bad 
 debts. Under an Act of 1877 (40 & 41 Vict. c. 27) 
 .similar powers, .are 'Conferred upon the Conmiisaioners 
 
 of ^Public Works in Ireland. 
 
 ■■■■ I* .96 
 
 cEAF. tx PUBLIC WORKS LOANS 97 
 
 The National Debt and Local Loans Act, 1887, 
 constituted a Local Loans Fund under the control 
 of the National Debt Commissioners out of which 
 money may be advanced for loans by the Public 
 Works Loan Commissionerfl, the Kshery Board of 
 Scotland, the Commissioners of Public Works in 
 Ireland, or by the Irish Land Conamissioners, or for 
 the purpose of similar loans by the Treasury. All 
 these are described as Local Loans. A Special Local 
 Loans stock is created by the Act for these purposes. 
 It is enacted by s. 15 of the Act as amended by the 
 PubHc Works Loans Act, 1897, that when Parliament 
 directs the whole or any part of a local loan to be 
 written off from the assets of the Local Loans Fund 
 as not likely to be recovered, the principal is to be 
 treated as a loss to the Exchequer, without altering 
 the Hability of the borrower. Any amount so written 
 off is to be paid to the National Debt Conamissioners 
 out of moneys provided by Parliament, and any 
 sum afterwards recovered is to be paid into the 
 Exchequer. 
 
 The Local Taxation Account, created under the 
 Local Government Act, 1888, is kept at the Bank of 
 England, and the Commissioners of Inland Revenue 
 are required by sections 20 and 21 of the Act to pay 
 into that account instead of to the Exchequer the 
 duties collected in the administrative counties of 
 England and Wales on local taxation licences as well 
 as a portion of the probate duties. These sums are 
 paid over to county councils, and if they prove 
 inadequate the Local Government Board may borrow 
 
98 THE FINANCIAL SYSTEM chap. 
 
 temporazily on the security of the account such sums 
 
 m may be. »f uired, for meeting the deficiency. A 
 ^aluute of the .Estate Duty waa^ aiibstitiited for the 
 fortioa, of the pobate duties by s. 19 of the Mnanoe 
 Act, 1894 The Finance (1909--10) Act, 1910, re(3[mies 
 'the duties abo¥e fefeifed. to to' be paid into the 
 Bxchef mer, whence they are now issued to the Local 
 Taxation Accomnt.. (See also the .Bevemie ,Act, 1911, 
 1 CSteo. V» c* 2»} 
 
 ^Iiocal 'taxation accounts for Scotland and .Ireland 
 were created by the Act il & 52 Vict. c. 00, in 1888, 
 .amended by the Local. Government Acts for .Ireland 
 in 1898, sections 48 and 58, and for Scotiand in 1889, 
 .sections. 19-24. 
 
 'Certain duties on beer and spirits were allocated 
 to the several local taxation accounts by s. 7 of the 
 Customs and .Inland .Revenue Act, 1890. Their 
 appBcation is regulated by the Local Taxation 
 (Customs and Excise) Act, 1890, tiie PoMce Act, 1890, 
 and the Technical Instruction Act, 1891. 
 
 The Cattie Pleuro-pneumonia Account for Great 
 Britain.. :i8 required by .s. 15 of the Diseases of Ani.mals 
 Act, 1894, to be kept at the Bank of England and to 
 .receive such moneys not exceeding .£140,000 in any 
 one year as may be provided by Parhament towards 
 
 m 'expenses of the Board of: Agriculture in 'the. 
 slaughter of cattie, animals, or swine on account of 
 pleuio-pneumonia, foot and mouth disease, or swine 
 fever, mA mdi sums as are received by tiie Board 
 from the sale of slaughtered animals after deducting 
 aay amounts, .payable, to the owners. If the account 
 
 PUBLIC WORKS LOANS 99 
 
 shows a deficiency the Local Government Board and 
 the Secretary for Scotland are required to pay out 
 of the English and Scottish Local Taxation Accounts 
 such additional suma as may be certified by the 
 Board of Agriculture to be required for defraying its 
 expenses. 
 
 The National Health Insurance Commissioners 
 control a fund to which are carried, without passing 
 through the Exchequer, the contributions of insured 
 persons, and to which sums are also voted in Supply 
 for working expenses and for special grante. Under 
 section 54 (5) of the Act 1 & 2 Geo. T. c. 55 the 
 accounts of the Fund are audited by the Comptroler 
 and Auditor-General in such manner as the Treasury 
 may direct (see p. 77). The same provision is applied 
 by section §2 (2) of the Act to the Unemployment 
 Fund. 
 
 The Eoad Improvement Fund is vested in the 
 Road Board, created by i Edw. VII. c. 47, and 
 receives out of the Consolidated Fund a sum equal 
 to the net proceeds of duties on motor spirit and 
 on Kcences for motor cars (Finance (IQOqIiO) Act, 
 1910, s. 90, and 1 Geo. V. c. 2, s. 18). The accounts 
 of the Fund are audited by the Comptroller and 
 Auditor-General under s. 12 of the Act 9 Edw. VIL 
 c. 47. 
 
 The Development Commissioners were created 
 by the same Act (9 Edw. VII. c. 47), which endowed 
 them with £600,000 annually out of the Consolidated 
 Fund for the five years ending 31st March 1915. 
 Under the Finance Act, 1911, this endowment is 
 
lOO THE FINANCIAL SYSTEM chap, ix 
 
 HlftClQ 107 ifil6 lABl' llIIM ITWIS Ol %hB BeilOCl ITOIXl ft 
 
 sum of £1,500,000 diverted from the Old Sinking 
 Fund. The ftccoiints of the DeireloBineiit Fund ftio 
 examined and reported upon by the Comptroller 
 and Auditor-General (9 Edw. VU. c. 47, s. 2). 
 
■A- "P "P 'i ^ T 3^ I 
 
 IXOHlQUm AND AUDIT DEPARTMENTS ACT, 1886, 
 
 and tbeasury minute thereon 
 
 29 & 30 Vict, Chaftbb 39 
 
 An Act to connoliiate liie Duties of tlie Exchequer and 
 Audit Departments, to regulate tlie Receipt, Custody, 
 and Issue of Public Moneys, and to provide for the 
 Audit of the Accounts thereof . [28th June 1866 J 
 
 'Wbbbeas it is expedient to consolidate the powers and 
 
 * duties of the Comptroller of Her Majesty's Exchequer and 
 
 * of the Commissioners for Auditing the Public Accounts, and 
 
 * to unite in one department the business hitherto conducted 
 
 * by the separate establishments under them ; and to make 
 
 * other provisions for the more complete examination of the 
 ' public accounts of the United Kingdom : ' Be it therefore 
 enacted by the Queen's most Excellent Majesty, by and with 
 the advice and consent of the Lords Spiritual and Temporal, 
 and Commons, in this present Parliament assembled, and by 
 the authority of the same, as follows : 
 
 1. fhis Act may be cited for all purposes as the Exchequer 
 and Audit Departments Act, 1866. 
 
 2. In this Act "the Treasury" shall mean the Com- 
 missioners of Her Majesty's Treasury for the time being, or 
 any two or more of them ; " the Bank of England " shall mean 
 the Governor and Company of the Bank of England ; ** the 
 " Bank of Ireland " shall mean the Grovernor and Company of 
 the Bank of Ireland ; " the National Debt Commissioners " 
 shall mean the Commissioners for the Keduction of the 
 
 103 
 
104 THE FINANCIAL SYSTEM 
 
 Ifttioiift! DeM ; " piinoii»l aooomntants shall mean those 
 who receive issues diiediy from the accounts of Her Majesty's 
 Eidieqper si 'iie 'BanlcB of England and Ireland respectively ; 
 
 mb-tiMMHUitMitB " shaM mean those who :receive advances, 
 liy my of mprest^, from, principal. acooTOtants, or who .receive 
 fees or ^oHier pnblic moneys through other channels^; '"the 
 « Secreiazies of the Treasury *' shall indiide iie Aasifltant 
 Secretary*. 
 
 3. At any time within twelve months after the passing of 
 this Act it shaE he lawful for Her Majesty, Her heirs and 
 suocessoTB, hy letters patent under the Great Seal of the 
 United Kingdom, to nominate and, appoint the pereon who 
 shai at that time hold the office of Comptroller-General of 
 the Keoeipt and Issue of Her Majesty^s Exchequer, and 
 Chaimian of the Commissioners for Auditing the Public 
 Accounts, to be Comptroller-General of the Receipt and Issue 
 of Her Majesty's Exchequer and Auditor-General of Public 
 .Accounts, in tlds Act referred to as " Comptroller and Auditor- 
 " Goneral/' and also to' nominate' and appoint one of the 
 persons who shall at that time hold the offices of Conmiis- 
 sioners for Auditing the Public Accounts to be Assistant 
 u Cijjupljjijllej and Auditor," 
 
 The said Comptroller and Auditor-General and Assistant 
 Comptroler and Auditor shall hold their offices during good 
 'behaviour, subject, however, to their 'lemoval therefrom by 
 Her Majesty, Her heirs and successors, on an. address, from 
 the two Houses of Parliament ; and they shaM not be capable 
 of holding their offices together with any other office to be 
 held during pleasure under the Crown or under any officer 
 appointed by the Crown ; nor shall they be capable, while 
 holding their offices, of being elected or of sitting as members 
 of the House of Conamons .; nor shaO. any peer of Parlittment 
 be^ capable of holding either of the said offices, 
 
 4. Her Majesty may, by such letters patent, grant to the 
 persons therein named the following salaries ; that is to say, — 
 
 To the ComptroEer and Auditor-Genera! a salary of two 
 thousand pounds per annum, and to the Assistant 
 Gomplroier and Auditor a sakry of one thousand 
 ive hundred, pouuds^ per annum ; and such salaries. 
 
 APPENDIX I 
 
 105 
 
 shall be charged upon and paid out of the Consolidated 
 Fund of the United Kingdom or the growing produce 
 thereof. 
 
 It shall be lawful for Her Majesty, Her heirs and successors, 
 by letters patent as aforesaid, to grant to any person 
 who shall have executed the offices of Comptroller 
 and Auditor-General, or Assistant Comptroller and 
 Auditor, on his ceasing to hold such office, an annuity 
 or pension not exceeding one-half of the salary of his 
 office to which he shaE have been entitled immediately 
 before he ceased to hold such office, if he shaE have 
 held either, or one after the other, of the said offices, 
 or the office of Commissioner of Audit for a period 
 not leas than fifteen years, and two-thirds of his said 
 salary if he shaE have held either, or one after the 
 other! of tiie nud offices for a period not less th»n 
 twenty years : Provided always, that no such annuity 
 or pension shaE be granted to either of the said 
 officers unless he be sixty years of age at the least, or 
 be afflicted with some permanent infirmity disabling 
 him from the due execution of his office, the same to 
 be distinctly recited iu such grant: Provided also, 
 that nothing herein contained shaE prevent either of 
 the said officers from receiving, in Meu of such annuity 
 or pension, if he shaE so elect, the amount of super- 
 annuation aEowance to which he would have been 
 entitled in respect of the fuU period during which he 
 shaE have served in the permanent CivE Service of 
 the State under the provisions of the Superannuation 
 Act, 1859. 
 
 5. On the appointment as aforesaid of a ComptroEer and 
 Auditor-General and an Assistant ComptroEer and Auditor, 
 the then existing letters patent of appointments of ComptroEer- 
 General of the Exchequer and of Commissioners of Audit shaE 
 be tpso /fltcto revoked, and the present offices of ComptroEer- 
 General of the Exchequer and Commissioners of Audit shaE 
 be abolished, but the person appointed to be ComptroEer and 
 Auditor-General shaE have and perform aE the powers and 
 duties conferred or imposed on the ComptroEer-General of 
 
io6 THE FINANCIAL SYSTEM 
 
 the Bxchequer and ill© CbmmisaioEers for Auditing the Public 
 JboountB lespeotiTelj hy my enactments relative tO' thoee 
 authorities lespeetivelj m fm m 'the same ^are not repealed 
 0r ^allered hy tiiis Act oi my other Act of the present session 
 of Parliament ; and it shall he lawful for the Treasury to 
 grant to each of the said (commissioners of Audit whose 
 offices shall be abolished under the provisions of this Act, 
 and who shall not be appointed to either of the said offices 
 of Comptroller and Auditor-Qeneral or Assistant GomptroUer 
 .and Auditor, an annual aiowanoe> by way of 'Compensation, 
 not exceeding the sum charged on the Consolidated Fund as 
 the salary of such Conmiissioners : Provided always, that any 
 Commissioners who may be in receipt of emoluments exceeding 
 tin salary so charged on the Consolidatpdiund shall be entitled 
 f9 leceive, in addition to the afoiesaii compensation allowance, 
 such proportion of the ^said emoluments as the Treasury are 
 empowered to grant under the provisions of the Superannua- 
 tion Act, 1859 ; and such ^allowances shal be changed upon 
 and paid out of the Consohdated fund of the United Kingdom 
 or the growing produce thereof. 
 
 6. On the death, resignation, or other vacancy in the office 
 of the Comptroller and Auditor-General, or of the Assistant 
 'Ccxmptroier and Auditor, Ber Majesty, Her heirs and. snc- 
 'Oessors, .may by letteia patent as^ aforesaid nominate and 
 appoint a successor, who .shall have the same powers, authori- 
 ties, and duties, and who shall be paid the like sakry and the 
 ike annuity or pension out of the Consolidated Fund. 
 
 7. Anything which under the authority of this Act is 
 directed to be done by the Comptroller and Auditor-General 
 .may, in. his .absence, be^^ done by tiie Assistant Comptroller 
 .and Auditor, except the certifying and reporting' on accounts 
 for 'the .House of 'Conunons. 
 
 8. The Treasury shall from time to time appoint the 
 officers, clerks, and other persons in the Beparti^nt of the 
 Comptroler and Auditor-General, and Her Majesty by (Mer 
 a Oound :may from time to time regukte 'the numbers ^and 
 salaries of the respective ;gradcs or cksses^ into whidi 'the said 
 officers, olerkB, and others shall be divided. 
 
 9. The Comptrolhr and Aoditw-Geneial ahall hare fall 
 
 APPENDIX I 
 
 power to make from time to time orders and rules for the 
 
 conduct of the internal business of his department, and to 
 piomote, suspend, or remove any of the officers, clerks, and 
 oliieiS employed therein ; and to prescribe regulations and 
 forms lor the guidance of principal and of sub-accountants in 
 making, 'up and rendering'their periodical accounts for examina- 
 tion : Brovided always, that all such regnlations and forms 
 shaO be approved by the Treasury previously to the issue 
 thereof. 
 
 10. The Conamissioners of Customs, the Commissioners of 
 Inland Revenue, and the Postmaster-General shall, after 
 deduction of the payments for drawbacks, bounties of the 
 natm» of drawbacks, repayments, and discounts, cause the 
 gross revenues of their respective departments to be paid, at 
 each times and under such regulations as the Treasury may 
 from time to time prescribe, toTccount« to be intituled " The 
 "Account of HerMajesty's Exchequer " at the Bank of England 
 and at the Bank of Ireland respectively, and aU other public 
 moneys payable to §m Exchequer shaU be paid to the same 
 accounts, and accounts of aU such payments shaU be rendered 
 to the Comptroller and Auditor-General daily in such form 
 as the Treasury may prescribe : Provided always, that this 
 enactment shall not be construed to prevent the collectors 
 and receivers of the said gross revenues and moneys from 
 cashing, as heretofore, mider the authority of any Act or 
 reisulation, orders issued for naval, militarvi revenue. civil« or 
 other services, repayable to the Bevenue. Departments out 
 of the Consohdated Fund or out of moneys provided by 
 Parliament. 
 
 11. All moneys paid into the Bank of England and the 
 Bank of Ireland on account of the Sxcheouer shall be con- 
 sidered bv the Governor and Comnanv of the said banks 
 respectiveiy as forming one general fund in their books ; and 
 aU^rders Looted hytiie TrLory to the said banks for issues 
 out of credits to be granted by the Comptroller and Auditor- 
 General, as hereinafter provided, for the public service, shall 
 be satisfied out of such general fund ; and with a view to 
 economise the public balances the Treasury shall restrict the 
 sums 'to be issued or 'ttansfiorred from time to^ time tO' the 
 
io8 THE FINANCIAL SYSTEM 
 
 eteM of Mooimts (xf f zindipftl Mcoimtaiits i»t the said banlm, 
 US herein-after provided, to siioli total soniB m tlwy may 
 ©oniider neoeflflMy for oo&duotiiig the current payments for 
 'the pahio ^sernee: intmstod to snoh prinoipal ^aeoountants ; 
 and the said prinoipal aeoomitants may oonsider the sums so 
 transferred to their acoonnts as constituting part of their 
 geneml drawing balance applicable to the payment of all the 
 services for which they are accountable ; but suoh sums shall 
 be carried in the books of such accountants to the credit of 
 the .respective services for which the .same may be issued, 
 m speciied in such orders. : .Bpovidod, always, that this enact- 
 ment <shal. not be construed to empower 'the Treasurv or any 
 authority to direct the payment, by any such principal 
 accountant, of expenditure not sanctioned by any Act whereby 
 services are or may be charged on the Consolidated Fund, or 
 by a vote of the House of Commons, or by an Act for the 
 appropriation of the supplies., annuaiy granted by Parliament. 
 
 ^ 12. At 'the close 'Of each of the qiwrteEs ending on the 
 thirly-irst day of March, the thirtieth day of June, the 
 thirtieth day of September, and the thirty -first day of 
 December in every year, the Treasury shall prepare an account 
 of the income and charge of the Consolidated Fund in Great 
 Britain and in Ireland for such <|uarter, and the charges for 
 the. pubic debt due on the ,ifth 'day of April, 'the fifth day of 
 July, the tenth day of October, and 'the .fifth day of .January, 
 ^shai. be mcluded. in the .accounts of the said charge for the 
 f uarters ending on the days preceding the latter dates ; and a 
 copy of such aoiOttnt shall forthwith be transmitted by the 
 Treasury to the Comptroller and Auditor-General ; and if it 
 shall appear by such account that the income of the Consol- 
 dated Fund in Great Britain or in Ireland for the quarter is 
 not sufficient to defray the 'Charge upon it^ the Comptroller 
 and Auditor^General, M satisfied of the correctness of the 
 deficiency, shaU certify the amount thereof, to the Bank of 
 Bngland or to the Bank of Ireland, as the case may be^ and 
 upon such certificates the said banks shall be authorised to 
 make adfiipi, from time to time, during the succeeding 
 fuarter, on 'tie .application of. the Treasury, by writing, in a 
 form, to 'be .from 'time to time^ determined by them, to an 
 
 APPENDIX I 
 
 amount not exceeding in the aggregate the sums specified in 
 such certificates ; and ai such advances shall be placed to 
 the credit of the Exchequer accounts at the said banks, and 
 be available to satisfy the orders for credits granted or to be 
 granted upon the said accounts by the Comptroller and 
 Auditor-General ; and the principal and interest of all such 
 advances shall be paid out of the growing produce of the 
 Consolidated Fund ia the said succeeding quarter. 
 , , 13. The Comptroller and Auditor-General shall grant to 
 the Treasury from time to time, on their requisitions author- 
 ising the same, if satisfied of the correctness thereof, credits 
 on the Exchequer accounts at the Banks of England and 
 Ireland, or on the growing balances thereof, not exceeding the 
 amount of the charge in the aforesaid quarterly account of 
 the income and charge of the Consolidated Fund remainipg 
 unpaid. 
 
 The ComptroUer and Auditor-General shall also grant 
 horn time to time to the Treasury, on similar requisitions, 
 supplemental credits for services payable under any Act out 
 of the growing produce of the Consolidated Fund, and not 
 included in the aforesaid quarterly account ; and the issues 
 or transfers of moneys required from time to time by the 
 principal accountants to enable them to make the payments 
 intrusted to them shall be made out of such credits on orders 
 issued to the said banks, signed by one of the Secretaries of 
 the Treasury, or in their absence by such officer or officers as 
 the Treasury may from time to time appoint to that duty, 
 and in all such orders the services for which the issues may be 
 authorised shall be set forth, 
 
 A daily account of aU issues or transfers made from the 
 Exchequer accounts, in pursuance of such orders, shaU be 
 transmitted by the said banks to the Comptroller and Auditor- 
 General. 
 
 14. When any sum or sums of money shaU have been 
 granted to Her Majesty by a resolution of the House of 
 Commons, or by an Act of Parliament, to defray expenses for 
 any specified public services, it shall be lawful for Her Majesty 
 from time to time, by Her Eoyal Order under the Boyal Sign 
 Manual, countorsigned by the Treasury, to authorise and 
 
no THE FINANCIAL SYSTEM 
 
 .leqiiiw tibe Tmmmj to wm% 'Oat ol tlie credits to 11 frantecl 
 to tkim. on tlie Bamlieqiier ftcsooimts m :iieEeiii-ftfto! pioimMi 
 tl i0 mils wMdi 'imj 'be lefuifwl. imm time to time to defrftj 
 noil ox|ieiifleB, not exceeding tlie amount of tlie soms so ¥oted 
 or gmnwii. 
 
 16. Whm mj ways and means sliall liave been granted by 
 Puiiament to make good tbe supplies granted to Her Majesty 
 by any Act of ParMamont or lesoktion of the House of Com- 
 monS| the GomptcoUof ^and Anditor-Geneial shaU grant to 
 the 'fteasuiyi on their refuiiition authorising the same, a 
 credit or credits on the Exchequer accounts at the Bank of 
 England and Bank of Ireland, or on the growing balances 
 thereof, not exceeding in the whole the amount of the ways 
 and means so granted. Out of the credits so granted to the 
 'Treasury .issues .shall be .made to' principal accountants from 
 time to time on^ orders issued to 'the^ said banks, signed by one 
 ol the Secretaries of 'the Treasury, or in their absence by such 
 officer or officers as the Treasury may from time to time 
 appoint to that duty ; and the services or votes on account 
 of which the issues may be authorised shall be set forth in such 
 orders : Provided alwap, that the issues for Army and Navy 
 servioeS' shall, be :made under the general heads, of Army " 
 and. ** .Navy " respectively. 
 
 issues made from the Exchequer 
 accounts in pursuance of such orders shall be transmitted by 
 the said banks to the Comptroller and Auditor-General. 
 
 * 16. Within fifteen days after the expiration of the 
 quarters ending on tiie thirty-first day of March, the tiiirtieth 
 ^day of .June, the thirtieth 'day of Septomber, and. the thirty- 
 irst day of December 'in. every year, the Treasury shaU. prepare 
 an aooount of tiie public income and 'expenditure of the^ 'United 
 Kingdom, according to the actual receipt and issue of moneys 
 on the Exchequer accounts at the Bank of England and Bank 
 of Ireland in the twelve months ending on such quarter days 
 respectively; and if there shai appear by such account to be 
 a surplus of income above expenditure, the Treasury shai 
 certify the same 'to the National Debt COnnuissioners, and. one^' 
 f onith part of such surplus shall be appicable to the reduction 
 
 1 .eiMliiiii .16 ii wseML by 38 4 B» Vict. 46^ a. 6. 
 
 APPENDIX I 
 
 III 
 
 of the national debt as herein-after directed ; and the National 
 Debt Commissioners shall publish from time to time in the 
 London Gazetto the sum which will be so apptied in the 
 ensuing quarter. The Treasury shall cause one-fourth part 
 of such surplus income to be charged on the Consolidated 
 Fund in the quarter succeeding the termination of such 
 account; and the sum so charged shall be issued by the 
 Treasury from time to time in the next ensuing quarter to 
 the National Debt Commissioners, who shaU apply the same, 
 during the said quarter, in redeeming funded or unfunded 
 debt, or in repaying to the Bank of England or to the Bank 
 of Ireland any advances made by them, under the provisions 
 of this Act, towards supplying the deficiency of the Consoli- 
 dated Fund during the said quarter ; and all debt so redeemed 
 ShaU be forthwith canceUed. And a copy «£ every accouat 
 prepared by the Treasury as aforesaid, certified by the Comp- 
 troller and Auditor-General, shall be laid before the House of 
 Commons within fifteen days aftor the expiration of the said 
 quarterly periods, if Parliament be then sitting, or, if not 
 sitting, then within one week after Parliament shall be next 
 assembled. 
 
 ^ 17. All debts accruing due under any contract or lease 
 now or hereafter entered into or taken for the public service, 
 and payable out of the supplies from time to time voted by 
 Parliament to Her Majesty for the public service, in any 
 department for which the payments are made by the Pay- 
 master-General, shall be discharged and paid in manner 
 following ; that is to say, such debts shall be payable on the 
 order of the department, and the payment thereof shall be 
 made by a draft drawn by the Paymaster-General on the 
 Bank of England, according to the course and practice of Us 
 office, payable to the persons to whom such debts may be 
 due, or to their agents. 
 
 18. The Treasury may from time to time determine at 
 what banks accountants shall keep the public moneys entrusted 
 to them, and they may also determine what accounts so opened 
 in the names of public officers or accountants in the books 
 of the lank of England, of the Bank of Ireland, or of any 
 Qmtmu 17 is lepealed by S2 & ^ Vioi c. S3, s. 2. 
 
THE FINANCIAL SYSTEM 
 
 otiutt liaiik, sliaU M imsmd public aomunts ; mid on tlie 
 dentil, i«iigE»tion, or removal of my mek public officers or 
 'MCOUiitantB ihe bftlaiices remiiiiiiiig at 'tbe credit of sucb 
 'MMsomitB^ shall, upoii tbe apiiointment of tbeir' successors, 
 mnlesB otherwise directed by law, vest in and be tiansferred 
 to the pubic accounts of such successors at the said banks, and 
 •hal nofc in the event of the death of any such public officers 
 or accountants, constitute assets of the deceased, or be in any 
 ttaaner subject to the control of their legal repiesentatives. 
 
 19. It shai be kwM for 'the lieasury, whenever they shall 
 consider it for 'the advantage of the public service, tO' direct 
 that the accounts of any public officer or department, which 
 by any Act or Acts are required to be kept under separate 
 beads at the Bank of England or at the Bank of Ireland, shall 
 be consolidated in such manner as they shal judge most 
 mnvenient for the public service. 
 
 W. It 'ishai be lawful for 'the Bank' of England and .Bank 
 of Irelind, at the .req|uest of the Treasury, signiied by one of 
 their secretaries, for the public convenience, to open and keep 
 accounts of Government stock and annuities in the books 
 of the 8aid banks under the official description of any public 
 officer for the time being without naming him and the dividends 
 on .such, stock and annuities may from time tO' time be reoeived, 
 ^and. 'the stock and annuities, or any part 'thereof,, to the credit 
 of such account may from time to time be transferred by the 
 officer for the time being holding such office, as if such stock 
 and annuities stood in his own name ; and upon the death, 
 resignation, or removal of any such public officer, the stock 
 and annuities standing to the 'Credit of such account, and all 
 dividends thereon, including ^any 'dividends not theretofore 
 received,, shall, become 'vested .in his sucoessor .in office, ^and 
 be receivable and transferable accordingly. And any such 
 public officer in whose official description such Government 
 stock and annuities may be standing may, by letter of attorney, 
 authorise the Bank of England or the Bank of Ireland, or all 
 or any of their cashiers, to sell, and transfer all. or any part' of 
 the stock: or annuities from time to time standing m the books 
 of 'the said 'banks m smk account, and to receive the dividends 
 due and to become dii: 'iwetti "; but no stock or annuities 
 
 APPENDIX I 
 
 shall be sold or transferred at the said banks under the 
 authority of such general letter of attorney, except upon an 
 order in writing, signed by one of the Secretaries of the 
 Tfeasury, directed to the proper officers of the said banks. 
 
 Appropriaiim demmis 
 
 21. The Treasury shall cause an account to be prepared 
 and transmitted to the Comptroller and Auditor-General for 
 examination on or before the thirtieth day of September in 
 every year, showing the issues made from the Consolidated 
 Fund of Great Britain and Ireland in the financial year ended 
 on the thirty-first day of March preceding, for the interest 
 and management of the public funded and unfunded debt, 
 for the Civil List, and all other issues in the financial year for 
 services charged directly on the said fund ; and the Comp- 
 troller and Auditor-General shaU certify and report upon the 
 same with reference to the Acts of Parliament under the 
 authority of which such issues may have been directed ; and 
 mpk accounts and reports shall be laid before the House of 
 Commons by the Treasury on or before the thirty-first day of 
 January in the following year, if Parliament be then sitting, 
 and if not sitting, then within one week after Parliament shall 
 be next assembled. 
 
 22. On or before the days specified in the respective 
 columns of Schedule (A) annexed to this Act, accounts of the 
 appropriation of the several supply grants comprised in the 
 Appropriation Act of each year shall be prepared by the 
 several departments, and be transmitted for examination to 
 the Comptroller and Auditor-General and to the Treasury, 
 and when certified and reported upon as herein-after dkected 
 they shaU be laid before the House of Commons ; and such 
 accounts shall be caled the "Appropriation Accounts" of 
 the moneys expended for the services to which they may 
 respectively relate; and the Treasury shall determine by 
 what departments such accounts shall be prepared and 
 rendered to the Comptroller and Auditor-General, and the 
 Comptroller and Auditor-General shall certify and report 
 upon such accounts as hetein-after directed ; and the reports 
 thereon shall be signed by the Comptroller and Auditor- 
 
THE FINANCIAL SYSTEM 
 
 Cteninil : Provided always, and it is the intention of this Act 
 tluit ilie Tieamiiy Aall direct that the department charged 
 wilih the expenditure of any vote under the authority of the 
 ^Tieawiiy ehall prepare, the appropriation aoconnt 'thereof : 
 Provided .also, 'that the teen department/* when 'used k 
 thii Act in connexion with the dnty of preparing the said 
 appropriation accounts, shaU be oonstraed as including any 
 public officer or officers to whom that duty may be issigned 
 by 'the Treasury. 
 
 23. A phn of account boohs and accounts, adapted to iio 
 r«|uirements of each service in order to exhibit, in a convenient 
 form, the whole of the receipts and payments ;in respect of 
 each vote, shaU be designed under the superintendence of the 
 Tiwwiry; and Her Majesty may from time to time, by 
 Order in Council, prescribe the manner in which each depart- 
 ment of the public service shall keep its accounts* 
 
 M. An appropriation account of supply giants shall 
 exhibit on the charge mde 'thereof 'the sum or sums appropriated 
 by Parliament for the wrvice of the inancial year 'to 'which 
 the account relates, and on the discharge side thereof the sums 
 which may have actually come in course of payment within 
 the same period ; and no imprest or advance, of the applica- 
 tion of which an account may not have been rendered to and 
 aQowed. by 'the .accounting department^ shaU be included on 
 'the. discharge .side iJiereof . 
 
 25. The department charged with the duty of preparing 
 the appropriation account of a grant shall, if required so to 
 do by the Comptroller and Auditor-General, transmit to him, 
 t<>gether with the annual appropriation account of such 
 grants a balance-sheet so prepared as to show the debtor and 
 .creditor 'baknoos .in tike ledgers of such department on the 
 day when 'the sM appropriation account was closed, and to 
 verify the baknces appearing upon the annual appropriation 
 account : Provided always, that the Comptroller and Auditor- 
 General may, if he thinks fit, require the said department 
 to transmit to him in lieu of such balance-sheet a certified 
 statement showing the actual disposition of the balances 
 appearing upon 'tibe annual appropriation account on the 
 last' day of the period of such account. 
 
 115 
 
 26. Every appropriation account when rendered to the 
 ComptroUer and AuLr-General shaE be accompanied by an 
 explanation showing how the balance or balances on the grant 
 or itrants included in the previous account have been adjusted, 
 and shall also contain an explanatory statement of any excess 
 of expenditure over the grant or grants included in such 
 account, and such statement as well as the appropriation 
 account shall be signed by such department. 
 
 27. Every appropriation account shall be examined by 
 the ComptroEer and Auditor-General on behalf of the House 
 of Commons ; and in the examination of such accounts the 
 OomptroUer and Auditors-General shall ascertain, first, whether 
 the |apaents which the accounting department has charged 
 to lli |rant are supported by vouchers or proofs of pajrments, 
 and, second, whether the money expended has been applied 
 to the purpose or purposes for which such grant was intended 
 to provide : Provided always, and it is hereby enacted, that 
 whenever the said Comptroller and Auditor-General shaE be 
 required by the Treasury to ascertain whether the expenditure 
 included or to be included in an appropriation account, or any 
 portion of such expenditure, is supported by the authority 
 of the Treasury, the Comptroller and Auditor-General shaU 
 examine such expenditure with that object, and shaE report 
 to the Treasury any expenditure which may appear, upon 
 such examination, to have been incurred without such 
 authority ; and if the Treasury should not thereupon see fit 
 to sanction such unauthorised expenditure, it shaE be regarded 
 as being not properly chai^caule to a ParHamentary grant, 
 and shaU be reported to the House of Commons in the manner 
 hereinafter provided. 
 
 28. In order that such exannnation may, as far as possible, 
 proceed pan pasm with the cash transactions of the several 
 accounting departments, the ComptroEer and Auditor-General 
 shaE have free access, at aE convenient times, to the books 
 of account and other documents relating to the accounts of 
 such departments, and may require the several departments 
 concerned to furnish him from time to time, or at regular 
 periods, with accounts of the cash transactions of such depart- 
 ments respectively up to such times or periods. 
 
ii6 THE FINANCIAL SYSTEM. 
 
 29. Ie ©oeducting the examiniitioii of the viwishifS felating 
 to the appropriation of the grants for the eeveml servioea 
 enimieKiited In Sohediile (B) to this Act annexed, the Comp- 
 tioier and Anditoc-Oeneial, after satisfying himself that the 
 aooonnts bear evidence that Ae Touohen have been oompletel j 
 checked, examined, and certified as comet in every respect, 
 and that they have been allowed and passed by the proper 
 departmental ofiicers, may admit the same as satisfactory 
 evidence of payment in support of the charges to which they 
 may :zelate : Brovided always, that if 'the Treasury should 
 desire^ any such vouchers to be examined by the Comptroler 
 and Auditor-General in greater detail, the Comptroler and 
 Auditor-General shall cause such vouchers to be subjected to 
 such a detaied examination as the Treasury may think fit 
 to prescribe. 
 
 30. In. condiiioting the examination of the vouchers rektm^ 
 to the appropriation, of the .grants lor any services not enmaaer- 
 ated in tJie aforesaid schedule, the Comptroler and Auditor- 
 General shall test the aecufacy of the castings and computation 
 of the several items of such vouchers : Provided always, that 
 when any vouchers have been certified to be correct by any 
 officers specialy authorised to examine the same, it shall be 
 lawful lor 'the Comptroler and. Auditor-General, with the 
 consent of 'the Treasury, tO' 'dispense with a ^second examination 
 of the particular items of such vouchers.. 
 
 SI. If during the progress of the examination by the 
 Comptroler and Auditor-General herein-before directed any 
 objections should arise to any item to be introduced into the 
 appropriation account of any grant, such objections shal, 
 ii'Otwr lh i B tp #nd i™ g 'Such account shal .not have been rendered 
 to him, be immediately communicated, by him to 'the depart- 
 ment concerned, and if the objections should not be answered 
 to his satisfaction by such department, they shall be referred 
 by him to the Treasury, and the Treasury shall determine 
 in what manner the items in question shal be entered in the 
 .annual appropriation account. 
 
 tt. .In npoctiqg m herein-befoie directed., 'lor the informa- 
 tion of the Bonse^ of Commons, the :ie6ult of the examination 
 of the approprialiim accounts, the Comptroler and Auditor- 
 
 APPENDIX I 
 
 Qonetal shal prepare reports on the appropriation account 
 of the Army and on that of the Navy separately. 
 
 He shall prepare a report on the appropriation accounts of 
 the Departments of Customs, Inland Revenue, and Post Office. 
 
 He shal prepare a report or reports on the accounts 
 rekting to the several grants included within each of the 
 classes into which the grants for oivl services are divided in 
 the Appropriation Act. 
 
 In all reports as aforesaid he shall call attention to every 
 case in which it may appear to him that a grant has been 
 exceeded, or that money received by a department from other 
 sources than the grants for the year to which the account 
 relates has not been appMed or accounted for according to the 
 directiona of Parliament, or that a sum charged agamst a 
 grant is not supported by proof of payment, or that a payment 
 80 charged did not occur within the period of the account, 
 or was for any other reason not properly chargeable against 
 the grant. 
 
 If the Treasury shal not, within the time prescribed by 
 this Act, present to the House of Commons any report made 
 by the Comptroler and Auditor-General on any of the appro- 
 priation acGoimts, or on the accounts of issues for Consolidated 
 Fund services, the Comptroller and Auditor-General shaU 
 forthwith present such report. 
 
 Ammnts otiwr than Appropriation Accouwis 
 
 33. Besides the appropriation accounts of the grants of 
 Parlament, the Comptroler and Auditor-General shaU examine 
 and audit, if required so to do by the Treasury, and in accord- 
 ance with any regulations that may be prescribed for his 
 guidance in that behalf by the Treasury, the f oUowing accounts : 
 viz., the accounts of aU principal accountants, the accounts 
 of the receipt of revenue by the Departments of Customs, 
 Inland Revenue, and Post Office, the accounts of every 
 receiver of money which is by law payable into Her Majesty's 
 Exchequer, and any other public accounts which, though not 
 relating directly to the receipt or expenditure of imperial 
 funds, the Treasury may by minute to be laid before Parlia- 
 ment direct. 
 
 I 
 
ii8 THE FINANCIAL SYSTEM, 
 
 34. Th© MsmmU wMch hj the laefc preceding Beetion tlie 
 f wiisiiry are empowered to subject to the examination of the 
 Comptroier and Anditor^General shall be rendered to him 
 by the departmentB or officers who may be directed m to do 
 by the Treaiiiry ; and the 'term, " accountant," when used 
 in this and the following sections of this Act with reference 
 to any snch acoonnts, shall be taken to mean the department 
 or officer that may be so required by the Treasury to render 
 the same ; and every public officer into whose hands public 
 moneys, either in the nature of revenue or fees of office, shall 
 be paid by persons bound by kw or regulation to do so, or 
 by mhmimM. or other officers whose duty it 'may be to .pay 
 such moneys wholly or in part into the receipt of Het Majesty's 
 Exchequer, or to apply the same to any public service, shall, 
 at such times and in such form as the Treasury shall determine, 
 render an account of his receipts and payments to the Comp- 
 laollor and Auditor-General ; and it shall be the duty of the 
 Treasnry to Worm 'him of the appointment of every such 
 oiiioer. 
 
 35. Accountants shal transmit their accounts together 
 with the authorities and vouchers relating thereto to the office 
 of the Comptroller and Auditor-General in such form, and for 
 such periods, and under such regulations as he may from time 
 to time prescribe for the guidance of such accountants: 
 .Btovided, dways, that no such regulationfl shall be obligatory 
 on .such accountants wM Aey .shal have 'been approved 
 by 'the Treasury,. 
 
 M. The Comptroller and Auditor-General shall examine 
 the several accounts transmitted to him with as fittlto delay 
 as possible, and when the examination of each account shall 
 be completed he shall make up a statement thereof in such 
 foim m he 'may deem it, aid ,i it shall appear' from the 
 statement so made up of .any account^ being, an .account 
 current, that the balance thereon agrees with the accountant's 
 baknoe, or if it shall appear from any account rendered by 
 an accountant, as well as from the statement of such account 
 by the Comptroller and Auditor-General, that the accountant 
 is " even and quit," the Comptroller and Auditor-General is 
 hereby required, to sign and pass such statement of account 
 
 APPENDIX I 
 
 119 
 
 so made up by him as aforesaid : Provided always, that in 
 all other cases whatever the Comptroller and Auditor-General, 
 having made up the statement of account as herein-before 
 directed, shall transmit the same to the Treasury, who, having 
 considered such statement, shall return it to Mm, with their 
 warrant attached thereto, directing him to sign and pass the 
 account, either conformably to the statement thereof, or with 
 such alterations as the Treasury^may deem just and reasonable ; 
 and a statement of the account made up by the Comptroller 
 and Auditor - General in accordance with such Treasury 
 warrant shall then be signed and passed by him : Provided 
 further, that a list of all accounts which the Comptroller and 
 Auditor-General may sign and pass (such list to be so prepared 
 as to show thereon the charge, discharge, and balance of each 
 account respectively) shall be submitted by him to the 
 Treasury twice in every year, videlicet, not kter than the 
 first week of February and the first week of August. 
 
 37. It shall be kwful for the Comptroller and Auditor- 
 Gtneral, in the examination of any accounts, to admit and 
 allow, in cases where it shall appear to him to be reasonable 
 and expedient for the public service, vouchers for any moneys 
 expressed therein, although such vouchers be not stamped 
 according to law. 
 
 38. As soon as any account shall have been signed and 
 passed by the ComptroEer and Auditor - General, he shall 
 transmit to the accountant a certificate, in which the total 
 amount of the sums forming respectively the charge and 
 discharge of such account, and the balance, if any, remaining 
 due to or by such accountant shall be set forth ; and every 
 such certificate shall be signed by him, and shall be valid and 
 effectual to discharge the accountant as the case may be, 
 either wholly or from so much of the amount with which he 
 may have been chargeable as he may appear by such certificate 
 to be discharged from: Provided always, that when any 
 account, not beiog an account current, has been signed and 
 passed by the Comptroller and Auditor-General with a baknce 
 due thereon to the Crown, he shall not make out or grant any 
 such certificate as aforesaid until the accountant has satisfied 
 him either that he has discharged the fuE amount of such 
 
I20 THE FINANCIAL SYSTEM 
 
 balance, and any mtewili that may m iMsrein-after proirided 
 be payaU© thereon, or tliat lie liaa been relieved from ike 
 pyment tbereol, or of so mEoh ikereof as hm not been paid, 
 by a warrant from, ibe 'Treaanry. 
 
 39. Mo defslaration sbaD 'be^ made by the Comptrolkr and 
 Auditor-General before tbe Obanoellor of ibe Izxibefiier in 
 relation to uiy aocsonnt or any state or statement thereof ; 
 nor sbiii any snob state or statement be enrolled as of record 
 in tbe office of Her Majesty's Remembrancer of the Court of 
 itohoquer, any law, usage, or custom to the contrary not- 
 witbstuiding ; bmt every statement of an account made out, 
 liipied, and passed as. aforesaid, shaE be 'recorded, in 'the office 
 of 'the Comptroler and Auditor-Cbneral, and the 'recording of 
 such statement of account in bis office shaU be as valid and 
 eiectnal for enabling any process in the law against the 
 party changeable, and any other proceeding for the recovery 
 of any balances and any interest thereon, and for all other 
 purposes, as^ the enrohnfint of a declared account in the office 
 of Her ■Mafes*y'fl 'Remembrancer 'would have 'been H this Act 
 bad not been passed ; and a 'Copy, certiied under the hands 
 of the Comptroler and Auditor^Cteieral, of the record of any 
 such statement of account, shall be taken notice of and pro- 
 ceeded upon in the like manner as the record of any such 
 declared account, enrolled as aforesaid, might have been if 
 this^ Act 'had., .not been passed. 
 
 40. In al cases where the Comptroller and Auditor-General, 
 shall be required by the Treasury to examine and audit the 
 accounts of the receipt, expenditure, sale, transfer, or delivery 
 ol any securities, stamps, Government stock or annuities, 
 provisions, or stores, the property of Her Majesty, he shaU, 
 on the examination of 'Such accounts 'being completed,, transmit 
 a istatement 'thereof, or a report thereon, to the 'Treasury, who 
 ^shai, .1: they think '£t, signify their approval of such ^accounts 
 to him, and he shaU thereupon transmit to the accountant 
 a certificate in a form to be from time to time determined by 
 the Comptroller and Auditor-General, which shall be to such 
 accountiut a valid and efiectual discharge fcom so much as 
 h» may 'thereby appear to be discharged, from. 
 
 41. B,«y «»ou«tant duOl. «m th. termmttoa of hk 
 
 AP,P.E.NDIX I 
 
 charge as such accountant, or in case of a deceased accountant 
 his representatives, shall forthwith pay over any balance of 
 public money then due to the public in respect of such charge 
 to the public officer authorised to receive the same ; and in 
 an cases in which it shaU appear to the Comptroller and 
 Auditor-G«neral that balances of public money have been 
 improperly and unnecessarily retained by an accountant, he 
 shall report the circumstances of such cases to the Treasury ; 
 and the Treasury shall take such measures as to them mav 
 seem expedient for lecoveiing by legal ptoom, oi hy ^m 
 lawful ways and means, the amount of such balance or baknces, 
 together with interest thereon, upon the whole or part of such 
 balance or balances, for such period of time and at such rate, 
 not exceeding five pounds per centum per annum, as to the 
 Treasury may appear just and reasonable. 
 
 42. In all cases where any estate belon^g to a public 
 accountant shall be sold under any writ of extent or any 
 decree or order of the Courts of Chancery or Exchequer, and 
 the purchaser thereof or of any part thereof shaO have paid 
 his purchase money into the hands of any public accountant 
 authorised to receive the same, such purchaser shall be wholly 
 exonerated and discharged from all further claims of Her 
 Majesty for or in respect of any debt arising upon the account of 
 such accountant, although the purchase money so paid be not 
 sufficient in amount to discharge the whole of the said debt. 
 
 43. In all cases in which an accountant may be dissatisfied 
 with any disallowance or charge in his accounts made by the 
 Comptroller and Auditor-General such accountant shall have 
 a right of appeal to the Treasury, who, after such further 
 investigation as they may consider equitable, whether by 
 vim voce examination or otherwise, may make such order 
 directing the relief of the appellant wholly or in part from the 
 disallowance or charge in question, as shall appear to them 
 to be just and reasonable, and the Comptroller and Auditor- 
 General shall govern himself accordingly. 
 
 44. It shall be lawful for the Treasury, from time to time, 
 if they see fit so to do, to dispense with the transmission, to 
 the Comptroler and Auditor-General, of any accounts not 
 being accounts of the receipt and expenditure of public 
 
122 THE FINANCIAL SYSTEM 
 
 moiiy, and with, lii© audit of aoiwiiits If Mm, any 'law, 
 ungei, « custom to 'tlie contrary notwitliBtaiMling : Brovided 
 iilwayi, tiiat copies of any 'Trcasiiiy Mnntes d%>ensing witli 
 He andit of siicli accoimts sliall bo laid before Parliament. 
 
 45. Nothing in this Act contained sliaU extend to riWflige 
 or alter the rights and powers of Her Majesty to control, sus- 
 pnd,orpre¥entthe execution of anyprocessorproceeding, under 
 this Act or otiierwiae, for recovering money dne to the Crown. 
 
 4i. The Acts mentioned, m Schedule (C) to this Act^ 
 ,annexBd shal he^ repealed, to the extent mentioned in. rach 
 Schedule, and al accounts required or directed to be audited 
 by the board of audit shall be audited according to the pro- 
 irisions of this Act ; but nothing herein shall be deemed to 
 confer upon the Treasury the powers with respect to audit 
 irested .in 'the Admiralty by the Greenwich Hospital Act, 1865, 
 or to aiect any right, titie, obligation, or liabiity acquired 
 or accrued before: 'the commencement of 'this Act : Provided 
 always, that this Act shal not affect any proceeding which 
 may have been coDomenced under any of the said Acts before 
 tliift A.ct comes into operation. 
 
 47. This Act shall commence on the first day of April one 
 thousand ^eight hundred and .sixty^ieven. 
 
 iSlflini'TlTTT 17 A 
 
 Omnta or Servkm to wUcli 
 Urn Appropriifclilcn A<3miii» 
 
 :itiil».. 
 
 Mm ■flar'tiie' 'Tetmliiation of every fimmtliil 
 Tost to vbWi Appropriation Acooants neiaiQ. 
 OB or Man which they aie to be madie up 
 mA .MliBittted.. 
 
 To the Oonm- 
 troller and 
 Andltor-General 
 by the Deport- 
 
 To the Treasury 
 by Comptroller 
 and Auditor- 
 
 To the House 
 of Commons 
 by the 
 
 
 
 Jkimjf • . . * * * 
 
 SI .SMMBtieff 
 
 
 li Wtibmm 
 
 Mmwjf, • . • * . • 
 
 
 
 
 
 
 
 
 ]!««•■« ;B«piitiiiflirti. (S&Uriea. 
 SaiMniiiiiiiittoii, «Dd Sx- 
 
 'HO HovimlMt 
 
 1.6 Jmmif 
 
 SI January 
 
 'Vuil. mm 1 iwtel 8«r¥ic© 
 sad 
 
 Al oitai' SifflMi voted In 
 SiQpiy .. * • • • 
 
 J 
 
 
 
 APPFNDTX ! 
 
 123 
 
 SOMJfiDXJLS S 
 
 Army; 
 Navy; 
 
 and such other servicea as the I'reasiiry, by their minnte to be laid 
 before Parliamenty may direct ; but no snob minute ehall take effect 
 until it shall have lain before the House of CSommons thirty days, unless 
 it shall haire been |«e¥iou0]y ap |ifoved by a resolution of the House of 
 LommonB. 
 
 SCHlDTJUi C 
 
 Wmt^^im^ E&pedei 
 
 25 (jieo* 3. c. 32. 
 
 27 Geo. 3. c. 13. 
 in part. 
 
 39 & 40 Geo. 3. 
 0. 54. 
 in part. 
 
 46 (jeo. 3. 0. 56. 
 
 .in part; namelyf-— 
 
 An Act for better examining and auditiog the Publick 
 
 Accounts of this Kingdom. 
 An. Act for repealing the several ^ 
 
 Duties of Customs and Excise, 
 
 and granting oHiir Duties in 
 
 lieu thereof, aad for applying 
 
 the said Duties, together with 
 
 the other Duties composing 
 
 the PubEok Revenue; for 
 
 permittinir the Importation of 
 
 oertaia Goods, Wares, and 
 
 Merchandize, the Produce or 
 
 Manufacture of the European 
 
 Dominions of the French King, 
 
 into this Kingdom ; and for 
 
 applying certam unclaimed 
 
 Monies, remaining in the Ex- 
 
 chequer for the Payment of 
 
 Annuities on Lives, to the Re- 
 duction of the National Debt 
 Section seventy-two. 
 An Act f« more eSeotaaUyl 
 
 chaf einiE Publick Accountants 
 
 with the Payment of Interest ; 
 
 for allowing Interest to then 
 
 in oertaui Cases; and for 
 
 compelling the Payment of 
 
 Balances due from them 
 Sections four, five, six, nine, ten, and thirteen. 
 An Act to amend an Act made in the Twenty-fifth 
 
 Year of His present Majesty, for better examining 
 
 and auditing the Publick Accounts of this Kingdom ; 
 
 and for enabling the Commissioners, in certain 
 
 Cases, to allow of ToDchers, although not stamped 
 
 iKJ0or(3i]iiiC tx) liftw* 
 
 impart; namely,— 
 
124 THE FINANCIAL SYSTEM 
 
 46 Geo. 3. 
 c. 141. 
 
 47 Gm, 3. 
 Smd.. 2. c. 39. 
 
 62 Geou X 0* & 
 
 03 Gm 3. 
 0.. ISO. 
 
 S7 Gm, X 0. 48. 
 
 1 A 2 Qw. 4. 
 0. 121. 
 in part. 
 
 lll'Ofso.4. 0.27. 
 
 2 & 3 Will. 4. 
 0. 26. 
 
 An Act for making more effectual Provision for the 
 more speedy and regular Examination and Audit 
 of the Public Accounts of this Kingdom. 
 
 An Act for more effectually charging Publick Account- 
 ants with Interest upon Bahmces, and for other 
 Pur|)oses relating to the passingof PublickAooounts. 
 
 An Act to provide for the speedy and r^golar Sz- 
 
 amination and Audit of the Public Aoooiints of 
 Ireland; and to repeal certain former Acts mlating 
 
 thereto^ 
 
 An. Act for (he more speedy and eiiectii.al Examination 
 and Audit of 'the Accounts of IGUtoiy lizpenditure 
 in Spain and Portugal j for removing JDelays jft 
 passing the^ Public .Accounts' ; and for maMng; neir 
 .Anangiemenls. for oondnetlnig the Bnsiness of the 
 Audit Office^ 
 
 An Act to make further Provision for the Adjustment 
 of the Accounts of the ConsoUdated Fund of the 
 United Kingdom ; and for making good any occa- 
 sional Deficiency which may arise in the said Fund 
 in Great Britain or Ireland respectively ; and to 
 direct the Application of Monies by the Commis- 
 sloners for the Reduction of the National Debt. 
 
 An Act to alter and aboUsh cer- 
 tain Forms of Proceedings in 
 the Exchequer and Audit 
 Office relative to PubUc Ac- 
 oonntants ; and for fp.iilp»ig 
 .further' Proviiiiint .for the 
 PnriMMie of faeiiitatinff imii^ 
 expediting' the ;pa88ing' of 
 PubUc Aeoounta in Great 
 .Britain.; and. to .rend« .per- 
 petual and amend an Act 
 passed in the Fifty -fourth 
 Year of His late Majesty 
 for the effectual Examination 
 of the Accounts of certain 
 Colonial Revenues 
 Except sections twenty-seven, twenty-eight, and 
 twenty-nine. 
 
 An Act to amend the several Acts for regulating the 
 Beduction of the National Debt. 
 
 An Act to authorize the Commissioners for Auditmg 
 the Public Accounts of Great Britain to examine 
 and audit Accounts of the Receipt and Expenditure 
 of Oolonial 'Bevennei. 
 
 APPENDIX I 
 
 125 
 
 2 4 3 Win. 4 
 c* 90. 
 
 0. 104* 
 
 4 4 5 Will. 4. 
 c. 15. 
 in part. 
 
 3 & 4 Vict. 
 0. 108. 
 in part. 
 
 9 & 10 Yici 
 
 e» '92. 
 
 14 & 15 Vict, 
 c. 42. 
 in part. 
 
 17 & 18 Viet, 
 e*. 19. 
 0. 94. 
 
 s_ ...... .. I,. 
 
 in pi^fii. 
 
 18 & 19 Vict. 
 
 c. 96. 
 in part. 
 24 & 25 Viol 
 
 e. 9X 
 
 28 & 29 Vict. 
 0* 93. 
 
 in part ; namely, — 
 
 An Act for transferring the Powers and Duties of the 
 
 Commissioners of PubUc Accounts in Ireknii to the 
 
 Commissioners for Auditing the Public Accounts of 
 
 Great Britain. 
 An Act to regulate the Period of rendering the Public 
 
 Accounts and making up the General Imprest 
 
 Certificates. 
 An Act to regulate the Office of 
 
 the Keceipt of His Majesty's 
 
 Exchequer at Westminster 
 
 Except sections seven and twenty-six. 
 An Act for the Regulation of 
 
 Municipal Corporations in 
 
 Ireland 
 
 Sections two hundred and thirteen and two 
 • hundred and fourteen. 
 An Act to provide for the Preparation, Audit, and 
 Presentation to Parliament of Annual Accounta of 
 the Beoeipt and Ex|M»nditure of the Naval and 
 Military Departments. 
 An Act to make better Provision ^ 
 for the Management of the 
 Woods, Forests, and Land 
 Revenues of the Crown, and 
 for the Direction of Public 
 Works and Buildings 
 Section thirty-eight wholly, and section thirty- 
 nine as far as it relates to the Accounts of the 
 Commissioners of Her Majesty's Works and 
 Public Buildings. 
 
 The Naval Pay and Prize Act, 1854 
 
 in part; namely,— 
 
 in part; 
 
 j- in part ; namelyt — 
 
 An Act to alter the mode of pro-' 
 viding for certain Expenses now 
 charged upon certain Branches 
 of the Public Revenues and upon 
 the Consolidated Fund 
 Sections three, four, and five. 
 The Supplemental Customs Con- 
 solidation Act, 1855 
 Section one. 
 
 An Act to provide for the Ptoporation, Audit, and 
 Presentation to Parliament of Annual Accounts of 
 the Appropriation of the Moneys voted for the 
 Revenue Departments. 
 
 An Act to consolidate the Offices of Comptroller- 
 General of the Exchequer and Chairman of the 
 Commissioners for auditing the Public Acoounta, 
 and for other Purpoieii. 
 
 .f 
 
126 THE FINANCIAL SYSTEM 
 
 TiEjysoRY inNun mam 2m march mi 
 
 h Mf liOidfl hme had under conrndenbtioii Mie Act 29 k 
 30 Vict. c. 39, ktitiiled " An Act to oonsoMcbt© the Duties 
 of 'the Exisiieqiier itnd Audit De|iactiiient8, to Mgnkte the 
 .lewipt, Cirtody and 'lasii© of Public Moneys, and to' provide 
 fbf the Audit of the Accounts thereof." 
 
 2. fbe regulations necessary for carrying into effect the 
 poirisions of this Act may be divided under three heads 
 
 Ist. The Reguktions connected with the accounts of the 
 
 " Appropriation " of 'the Grants of Parliament 
 ^ 2&d. fhe BegnhtionB applicable to' the Audit of 'the 
 Accounts of persons intrusted with 'the receipt and 
 disbursement of Public or other Moneys. 
 Sii. The Regulations for carrying into effect the provisions 
 of the Act so far as they relate to the receipt and 
 issue of Public Moneys on the .Exchequer Account. 
 
 3. The provMons^ .rekting to Mie Audit of 'the " Appropria- 
 tion " Aflcounts referred to undm the irst head are^ contained 
 in the ,seotions 21 'to M of the Act. My :Lords have already, 
 ts appears by Their Minuto of June 22nd 1866, taken steps 
 to enable them to discharge the duties imposed upon them 
 by the 23rd section of the Act, by appointing a Committee 
 to prepare plans and regulations for keeping and rendering 
 for audit the several Departmental Accounts. They have 
 'iaslnicted. 'the Oommitfeee to 'Consider also what improvements^ 
 may be made in the classification of the Annual Estimates for 
 Misoellaneoui Services, the accounts for which (with the 
 exception of those of the Departments of Works and Public 
 Buildings, and of Woods) are mow, for the first time, to be 
 subjected to an ** Appropriation " Audit. When the Com- 
 mittee shaU have made their Reports upon these matters 
 My liords: 'wil. be^ prepared 'to :make such .regulations as 'may 
 appear to them advisable, in order to carry out the intentions 
 of the Act in thfa z«p~t; .and they dir«^ that. untU such 
 Riporte shall have been received, and instructions consequent 
 thereupon shall have been issued in reference to the preparing 
 and lendering of any of the Appropriation Accounts, every 
 
 APPl'MDIX ..I 127 
 
 account which is now auiitftd by the Commissioners of lillt, 
 and which relates to the final expenditure of a vote, shall 
 continue to be examined in the same manner, and under 
 the same regulations as they would have been, if the Com- 
 missioners of Audit had continued to be charged with the 
 Audit thereof. 
 
 I. With respect to the Audit of Accounts, other than 
 Appropriation Accounts, referred to under the second head, 
 Iff iXds direct that the Account* speciaUy designated iii 
 the 33rd section of the Act, annexed to this Minute shall be 
 audited by the Exchequer and Audit Department in the same 
 manner and under the same regulations (so far as the same 
 are not affected by the Act) as they would have been if the 
 Conamissioners of Audit had continued to be charged with 
 the Audit thereof. 
 
 My Lords will be prepared, by a subsequent Minute, to 
 direct what other Public Accounte, not relating directly to the 
 Receipt or Expenditure of Imperial Funds, shall be trans- 
 mitted to the Comptroller and Auditor-General for examina- 
 tion and audit under the provisions of the said 33rd section. 
 
 5. My Lords proceed to de&ne the regulations for the 
 Receipt and Issue of Public Money on the Exchequer Account, 
 referred to under the third head. 
 
 6. The 10th section of the above Act relates to the payment 
 of the gross receipts of the Revenue Departments to the 
 Account of Her Majesty's Exchequer at the Bank of England, 
 and to a similar Account at the Bank of Ireland. My Lords 
 desire that the Commissioners of Customs, and the Commis- 
 sioners of Inland Revenue, will continue to cause the Revenue, 
 collected in their respective Departments, to be paid to the 
 Banks daily, as prescribed by Treasury Minute of the 2nd 
 March 1855 ; ^ and the Postmaster-General and the Commis- 
 sioners of Woods and Forests, and the Paymaster-General 
 will also continue to regulate the payments of Revenue, and 
 other receipts in their respective Departments to the Ex- 
 chequer Account, from time to time, according to the present 
 custom. The several Revenue Departments will transmit 
 to this Board as well as to the Comptroller and Auditor- 
 
 * See FmMmmtarf flofifr Mth 37S^ Bemam ISfiS^ Jkppeniliz, page S83. 
 
128 THE FINANCIAL SYSTEM' 
 
 General certificates, according to fiie forms annexed, No. 1 
 (ll 4 1>), of tlie sums so paid to tlie Exchequer Account, at the 
 mam time as their orders are sent to the Banks to place the 
 ninieyB' tO' 'the credit of the isaid. Account. 
 
 7. fhe 12lih. section of 'the Act 'directs that accounts of 
 the income and ^' charge of 'the Consolidated 'Fond shall be 
 prepared by the Treasury at the close of each quarter, and 
 that such accounts shall be forthwith transmitted to the 
 ComptroUer and Auditor-General. The object of this enact- 
 nent is to enable that officer to certify the amount of the 
 diidenoy for which this Board may be authorised to obtain 
 .adirances* 'from, 'the Banks of Bnghmd .and Irehtnd, to meet 
 the charges of 'the Consoldated Fund for each quarter ; and 
 also to enable him to satisfy himself of the correctness of the 
 amount for which credits on the Exchequer Account, to 
 meet such charges, may from time to time be authorised by 
 this Board under the 13th section of the Act. My Lords will 
 'Cause the 9 %^ .. aecouuts 'to be transmitted to the ComptroUer 
 a n d iAuditO!i'**Oe&eEal as soon as possible after the close of 
 each quarter, prepared m the Form Mo. 2, annexed 'to 'this 
 Minute; and the Comptroller and Auditor -General, after 
 satisfying himsel of the correctness of the deficiency of the 
 inoome to meet the charge of the Consolidated Fund for the 
 said quarter, wiU transmit to the said Banks a certificate of 
 the amount, of such deficienoy according to the Form No, 3, 
 annexed. 
 
 B. !I!he applioations of the 'Treasury to the Banks, for 
 .advanceS' from time to^ time on account of the said deficiency 
 wil be according to the Form No. 4, annexed. 
 
 9. The 13th section of the Act requires the Comptroller 
 and Auditor-General to grant to this Board, on theilr lequisi- 
 Qons amnonsmg me same, orecuts on mm mcnequer Jiccouni; 
 at thiC' Banks of Engliind and Ireland to provide for the pay- 
 ment of 'the charges on the Consolidated, Fund included, in the 
 aforesaid quarterly accounts of Income and Charge remaining 
 unpaid ; as well as to grant credits from time to time during 
 the succeeding quarter, on similar requisitions for services 
 
 ' 'XIm wnnii ":iiiMiiiiiig' olisigii** m a |mI|m1>]® slip ftud lift¥Oj. Iiecii 
 MBiotodi.. 
 
 129 
 
 payable out of the " growing produce of the Consolidated 
 Fund. 
 
 10. At the periods when the quarterly charges on the 
 Consolidated Fund become payable, My Lords wiU authorise 
 the Comptroller and Auditor-General, byrequisitions according 
 to Forms Nos. 5 and 6, to grant such credits, in part or in full 
 01 SUCH cmarges. wnen me creoiiis so aumonsea snaii nave 
 been granted to this Board by the Comptroller and Auditor- 
 General according to Forms Nos. 7 and 8, My Lords wMl 
 direct the Banks, from time to time, to make the necessary 
 issues or transfers, as required by the Act, from the Exchequer 
 Account to the accounta'of the Principal Accoun1«nta. changed 
 with the duty of making the public payments, according to 
 Form No. 9, annexed to this Minute. These authorities, 
 when acted upon, are to be transmitted by the Banks to the 
 Comptroller and Auditor-General. 
 
 11. A daily account of such issues (including the issues 
 out of credite granted for supply services hereinafter referred 
 tq) is to be transmitted by the Bank of England to the Comp- 
 troller and Auditor-General and to this Board, according to 
 Form No. 10 ; and a similar account is to be sent by the 
 Bank of Ireland to the two departments according to Form 
 No. 11, annexed to this Minute. 
 
 12. The issues to Principal Accountants will be regulated 
 according to the provisions of the 15th section of the Act. 
 When Ways and Means shaU have been granted to Her 
 Majesty by Act, My Lords will authorise the Comptroller and 
 Auditor-General by requisition according to Form No. 12, 
 annexed, to place credits at their dictposal at the Banks of 
 tngland and Ireland to enable the#W''Supply the Principal 
 Accountants with the funds necessary for carrying on the 
 public service. Upon the grant of credits on the Exchequer 
 Accounts at the said Banks by the Comptroller and Auditor- 
 General (according to Form No. 13), the actual issues or 
 transfers to the accounts of such Accountants will be made 
 by orders of this Board, under the authority of a Boyal Order 
 {see Form No. 14, annexed), in accordance with the provisions 
 of the 14th and 15th sections of the Act. 
 
 13. The orders for issues for Supply Services will be 
 
ijo THE FINANCIAL SYSTEM 
 
 pwpired fusooriing to f otm No. 15, annexed to this Mmute, 
 and when mUd upon they will be transmitted by the Bank 
 of England and the Bank of Ireland to the Comptroller and 
 Auditor-General to afiord him the means of wrifying the 
 aoooimts tO' be prepared by 'this Board, under th©. 16ih ^section 
 of the Act, and which he is required by the Act to isortify 
 previously to their being submitted to Parliament. A daily 
 statement of such issues will be included in the accounts to 
 be transmitted to this Board, and to the Comptroller and 
 Auditor-General, by the Banks of England and Ireland (as 
 ieroinbeforo direoted), according tO' Forms^ Mos. 10 and 11. 
 
 M. On. &mt application of 'the new .reguktions after 
 the close of the present financial year, it will be necessary that 
 a Boyal Order should be obtained for cancelling aE previous 
 Boyal Orders for public Supply Services, so far as they may 
 remain unexecuted on the 31st March next. A new Royal 
 Older will therefore be obtained to authorise the issues to 
 :Mncipal Accountants out of credits, to be granted upon the 
 .Ixoieqiier Account to the ojrtent of' the balance of Ways and 
 Means of prior years which may remain 'unissued on that 'day. 
 
 15. As under HI eadsting system of granting credits upon 
 the Account of Her Majesty's Exchequer at the Bank of 
 England to Public Accountants, there wil remain unexhausted 
 credits on that Account on the 31st March next, and as after 
 'the 1st Apri. wmt, actual transfers to those^ Accounts are to 
 be substituted for credits on the Exchequer' Account, My 
 Lords request that the Bank of England wil, on 31st March 
 next, transfer all such balances of credits from the Exchequer 
 Account to the separate Accounts of the persons in whose 
 favour they may have been granted. 
 
 16. It wil be necessary, in the case of the Paymaster- 
 'Qeneral, to open, in 'the books, of the :Bank of England a new 
 account, 'to be caled. **'fhe Paymaster-General's Supply 
 Account," to which the balance of credits above mentioned 
 granted to that officer should be transferred. This Account 
 is to be fifiwated upon by the Paymaster-General solely by 
 'Wiites-oi'to his Drawing and Bil Accounts. 
 
 17. The 16th section of the Act, so far as its provisions 
 idate to the preparation of the Account therein, referred to, 
 
 APPENDIX I 
 
 showing the surplus of Revenue applicable to the reduction 
 of the National Debt, is already in operation under the pro- 
 visions of the Act 57 Geo. III. c. 48 ; but a new provision has 
 been added to the section, which renders it necessary that the 
 Account in question should be certified by the ComptroUer 
 and Auditor-General, before it is presented to Parliament. 
 My Lords wil cause the Account to be transmitted to the 
 Comptroler and Auditor- General inamediately after the 
 expiration of each quarter, in order that it may be certified 
 and presented to the House of Commons within the period 
 of fifteen days specified in the Act. 
 
 18. Let a copy of this Minute be transmitted to Sir William 
 Dunbar,* to the Paymaster-Greneral, the several Revenue 
 Departments, the Bank of England, the Mational Debt 
 Commissioners, the Bank of Ireland, tiie Indosure Commis- 
 sioners, the Master of the Mint, and the Commissioners of 
 Public Works in Ireland, for their information and guidance ; 
 and request Sir William Dunbar to inform this Board if he has 
 any alteration to suggest in the Forms of Authorities, Nos. 
 3, 7, 8, and 13, annexed to this Minute, which are to emanate 
 from his department. 
 
 19. Let a copy of this Minute be laid before the House of 
 Commons. 
 
 1 Then ComptroUei and Anditor-GeneraL 
 
APPENDIX n 
 
 WmUO ACCOUNTS AND CHAReiS ACT, 1891, S. 2 
 
 64' 4 66 ¥iCT. Cbafisb 24 
 
 An Act to iiiii«nd certiiiii. provMons of tlie Law with respect 
 to Money charged on or payable out of the Consolidated 
 fund, and with respect to Public Accounts. 
 
 [3rd July 1891.] 
 
 2. Whereas it is expedient to give statutory authority to 
 the practice with respect to issues from the Exchequer and 
 appropriations in aid ; be it therefore enacted that— 
 
 (1) Where an Act authorises any sum to be issued out of 
 the Consolidated Fund of the United Kingdom of Great 
 Britain and Ireland towards making good the supply granted 
 to Her Majesty for the service of any year, every sum issued 
 in pursuance of that Act shall be applied towards making good 
 the supply so granted at the time of such issue. 
 
 (2) All money directed by or in pursuance of any Act 
 (whether passed before or after this Act), or by the Treasury, 
 to be applied as an appropriatioi 11 aid of money provided 
 by Parliament for any purpose shall be deemed to be money 
 provided by Parliament for that purpose, and shall, without 
 being paid into the Exchequer, be applied, audited, and dealt 
 with accordingly, and so far as it is not in fact so applied shall 
 ■be paid mto tho Ixchequer. 
 
 (3) Where any fee, penalty, proceeds of sale, or other 
 money of the nature of an extra receipt is, by virtue of this 
 .Act, or of .any other Act (whether passed before or .after this 
 
 APPENDIX II 
 
 133 
 
 Act), or otherwise, payable into the Exchequer, the Treasury 
 may by a minute to be laid before Parliament direct that the 
 whole or any specified part thereof shall be applied as an 
 appropriation in aid of money provided by Parliament for the 
 service mentioned in the minute. 
 
mmUTM OniCUIiAR, 1012-ltl8 
 
 TiiBASOTW CkAMBEBS, 2imI (Maber 1911. 
 
 SiBr— Tlie Loida ■Comimiiii^nais ol His Majesty's 'Tiwisiiiy 
 oommand iM to transmit to yoa tlie endused foims of esti- 
 mates for the services to be administered by yoor Department 
 during the year ending Slst Marob 1913. 
 
 One copy of eacb form, after insertion of the proper 
 partioulars, ud with rach changes, as may be necessary, 
 .should be^ r^toned to 'the Treasury in dm course. Thefigwm 
 f^' pad f fflouM he cm^mM^ elflcM, md mmstei nxAefv 
 fmmmry. As much inconvenience is caused if the forms are 
 not used, additional copies of them, as well as of this covering 
 ^letter, wil be furnished to you if needful, 
 
 Ikde of rendering EstmMes 
 
 Such of the Estimates for 1912-191S as requin no special 
 delay in their preparation should be sent to the Tlreasury on 
 or' before the 1st Beeember 1911. fhoae estimates, which, 
 from peculiar eircuinstances, cannot be made up so soon, 
 should be sent in as speedily affcer that date as possible. The 
 ktest date at which any estimate, or alteration of an estimate, 
 can be received will be the 13th January 1912. 
 
 To enable iie Ektimates to be promptly issued, it is im- 
 'portant that al. questions which aiect 'the details should, 
 unless in exceptional cases, be settied before Uie Estimates 
 themselves an sent in. Piopoiils for which Treasury sanction 
 is required should therefore be submitted well in advance 
 of the time for sending in the Estimates. If in any case 
 Bsptiiilad. Ifom Bmm Ommnmm til ni 101% fp.. IM-ISS. 
 
 1.34 
 
 APPENDIX III 
 
 135 
 
 questions are still unavoidably outetanding, the Estimates 
 should not on that account be delayed, but should be sub- 
 mitted to the Treasury in as complete a stete as possible, 
 upon the basis of existing rates and authorities, with the 
 understanding that the items stii under consideration are 
 liable to alteration. 
 
 N.B.— Jw mief that the Ghcmcdbr of the Exchequer mmf 
 be in a position to ascertain the probable total of the 
 Estimates at an early date, it is requested thai in aU 
 cases where the deiimr^ of the detmted, estimate is Ukek^ 
 to be ddaffed b^ond December 1911, ^ appmd- 
 maie totol mmmi, so fmr as cm be foreseen, ma^ be 
 commwrnei/ei to the Treasury on or b^ore that date. 
 
 Date of Statements Ewpenditwre, etc. 
 
 AU statemente of actual expenditure on new bmldings 
 should be made up to the 30th November 191 1. The estimates 
 should not, however, be kept back on this account, but should 
 be rendered, if necessaiy, with such statemente in blank, 
 leaving the omitted figures to follow later. 
 
 A like rule will govern any other statemente of actual 
 expenditure, or of actual receipts, or of time actually spent 
 in particular services, ete,, that may be admitted into the 
 notes to the Estimates. 
 
 The stetemente of Pensions granted and ceased should 
 be made up to the 30th November 1911. 
 
 Wecess^for Mwmmy 
 
 My Lords direct me to remind you that, while it is essential, 
 in order to avoid Suppkmentary Estimates, that no expense 
 Ukely to be found necessary sh&M be omitted im, thefirM indance, 
 yd lie date of ike pMdc remmie mdbe^ it imperative to re^rict 
 Ae prmmim to suck semm and smm as am w^mtly required. 
 
 Mtiopkmation of Edimates 
 
 My Lords desire to impress upon Departments the fact 
 that a sufficient explanation is necessary of the amount 
 estimated for a duly authorised service even when it does 
 not exceed the estimate of the preceding year. The habit 
 
136 THE FINANCIAL SYSTEM 
 
 of regariing emh year's estimate as the starting-point for 
 tlie next is one against wMcli special vigilance is needed in the 
 ease of services upon wHch the expenditure is in some degree 
 iisowtionary, and My Lords think, it necessary to warn 
 Departments, espeoiaiy those whose, expenditure^ is of this 
 character, that they must he. prepared to^ subordinate such 
 expenditnre to the financial exigencies of each year. 
 
 W^Mficatim of Vmmmm 
 
 My Lords request that fheir attention may be drawn by 
 a note upon the estimate to any office provided for m it which 
 is vacant at the date of forwarding the estimate, and as to the 
 future of which any <|uestion may be pending. 
 
 f mm for Exphnatiom 
 
 It is particnhurly requested, that the expknations of the 
 details of the estimate may in all cases bo written upon the 
 forms referred to in Regulation 3. The explanations should 
 not be confined to mere statements that a larger or smaller 
 amount is required, but should aiord a justification of the 
 whole amount inserted. Additional copies 'Of the forms can 
 'be suppled :i required. 
 
 Pmgms Mtports 
 
 In any case where the estimate contains provision for a 
 special service which, thou^ not permanent in character, 
 extends over' more. than, one year, My 'Lords request that the 
 'estimate may be accompanied by a report on .such service 
 showing — (a) the expenditure upon it to date as compared 
 wift tiie estimated total cost, (b) the progress made towmds 
 liie completion of it; and stating whether the service is 
 likely to be completed within the period previously anticipated, 
 and .at a oosl not .exceeding the .amount .sanctioned. 
 
 Biikmie of Becmpis m Bmmps 
 
 I am to request that special attention may be given to the 
 preparation of the estimate of receipts m stamps called for by 
 Begilatlon IS. 
 
 APPENDIX III 
 
 137 
 
 Expenditure during the current Year 
 
 I am to request that, in addition to the information required 
 by E^gulation 3, the figures of actual expenditure under 
 each sub-head may be given for the half-year to 30th 
 September 1911, with any conaments upon them regarded as 
 an indication of the probable expenditure in the current year. 
 
 Vote on Account 
 
 Behm the commencement of the next financial year 
 Parliament wil be asked to grant a ¥ote on Account sufficient 
 to provide for the requirements of each service for the normal 
 period of the Session. In ordinary course the Treasury will 
 fix the amount to be included for a particular service on the 
 basis of the amounts which have been found sufficient in 
 previous years. If there are any special circumstances which 
 should be regarded in fixing the amount of your Vote on 
 Account for next year, I am to request that you will draw 
 attention to them in the letter submittmg the estimate, 
 ihdicating the amount likely to be required. 
 
 The annexed regulations should be strictly observed in 
 filling up the forms of estimates.— I am. Sir, Your obedient 
 servant, C. Hobhotjsb. 
 
 To the Accounting Officer. 
 
 Eegulations to be observed in preparing the Civil 
 SiRViCK Airo Revenue Departments Estimates 
 
 1. In prepanng the estimates, the references to the 
 chapters and sections of the statutes relating to the service 
 provided for should be carefully revised and corrected accord- 
 ing to the latest legislation, special care being taken to remove 
 references to statutes which have been repealed or which 
 are no longer applicable. Statutes governing the vote gener- 
 ally should be recited in the heading of it, and those relating 
 to particular sub-heads should appear in the detail of those 
 sub-heads. 
 
 2. No charge for which due sanction has not been already 
 obtained is to be inserted in an estimate. Any contemplated 
 alteration, addition, or new provision, requiring Treasury 
 
ttS THE FINANCIAL SYSTEM 
 
 •pproinil, should be broiiglife to Their LowiBliips' notice, if 
 possible, in time for decision before the estimate is sent in. 
 Where such a proposal cannot be submitted in advance of 
 the estinnite, it ahonld be dealt with in a separate explanatory 
 
 letter* 
 
 S. !I*he letter 'tntnamittinfit each estimate should alsO' endose^ 
 wiemensB wnraen upon mm samm oi wnicn 'Copies are^ senii 
 herewith, and m the form of which a specmien is annexed, 
 explaining and justifying seriatim the amounts provided in 
 the estimate under each sub-head of expenditure. The 
 estimated amounts of receipts in cash or stamp should be 
 nmilarlY 'exiilamed* 
 
 ' '4* Jkuthoritir for a new or increased exnense is not to bO' 
 inierrea^irom, me .lacii oi ii» naving .neen, irom any^ cause, 
 
 Kiiiiieii we tsoiiiiiiiiijeiS' iiieioxe jms proper muisiiu. Dauuucin iiao' 
 
 Men given. 
 
 5. If Troamity approval has been signified to any deviation 
 from the provision made in the estimate for the preceding year, 
 care should be taken to insert an aamraie refemm to both the 
 mmmJber and i(M lie Trmma^ iMer conveying such approval. 
 
 6. 'Whenever a transfer .of ehariEe .from, one sub-head to' 
 another 'becomes necessary, the amount provided for the 
 previous y«ir for the service in question should be also trans- 
 ferred, so as to exhibit a proper comparison. 
 
 A ike course should be foOowed if a charge be transferred, 
 with previcm Treasury consent, from one vote to another. 
 
 7. Saeh eitimate should urovide for 'the isross amount of 
 Guiii^eif wjEinu. Will priiDapiy oome mmi iKiime ox paymenii 
 auniig. me year unuer eacn. .suo-neaii , ana aiso lor me gross 
 .receipt iillipated 'under the credit sub-head, in cases where 
 the system o« appropriation in aid of the vote has been intro- 
 .duced. 
 
 8. HI charges for the peisonal remuneration of the per- 
 'manent or temporary stal' of a department, .including the pay 
 of professional. ;men engaged for special services, .should be^ 
 provided 'for in 'the sub-head for .Salaries, ete.,''' unless some 
 othor .arrangement has been specially sanctioned by the 
 'Treasurv. 
 
 9. .In. cases where .remuneration, exceeding, the sum of £25 
 
 APPENDIX III 
 
 139 
 
 for the financial year, is received by any officer from public 
 funds in addition to the ordinary emoluments of his office as 
 provided in the estimate, a note must be appended, statinjg 
 the amount of such remuneration, the service for which it is 
 received, and the source from which it is provided. This rule 
 is intended to apply to all extra remuneration, however casual 
 or variable, and to any pension or compensation allowance 
 in respect of Public Service, that an officer may receive, its 
 object being to bring into one view the whole of his official 
 emoluments from whatever source. Ivery officer is bound 
 to report annually to the accounting officer of his department 
 aE the extra remuneration that he may have received in the 
 year from any external source. The fact of an officer being 
 provided with an official residence, fuel, or light, at the public 
 expense, should ako be recorded. 
 
 The mode of applymg the foregoing regulation is more 
 fully explained in Treasury Circular of 28th August 1897. 
 
 10. The estimate should be accompanied by a separate 
 statement explaining, with reference to Treasury letters of 
 approval, every "personal" salary or allowance included 
 
 iu the estimate. 
 
 11. The sub-head for incidental expenses should, as a 
 general rule, be confined to petty and casual charges, too 
 insignificant to be provided for separately. Details of it 
 should be furnished to the Treasury, although not necessanly 
 for publication. 
 
 12. Special attention should be caUed to any provision 
 included in an estimate for rates, taxes, or insurance, with an 
 exphmation of the circumstences which are considered to 
 make such provision necessary. 
 
 13. Special care should be taken in calculatmg the Mmifj^ 
 appertaining to each estimate ; and their nature should be 
 stated, so as to show the probable 3riehi of each principal 
 source. 
 
 The amounts that are likely to be collected in cash and m 
 stamp should be stated separately. 
 
 If any material increase or decrease be expected in either 
 cash or stamp receipts, the cause thereof should be explained 
 to the Treasury, as prescribed by Eeguhition 3. 
 
I40 THE FINANCIAL SYSTEM 
 
 14. Depttrbnants dunged witii tiie duty of 
 
 for Rirlknieiitiiiy grants for Subordinate Departments or 
 fitenriuii will he rmpom^h for tlie observance of these regula- 
 tions in the preparation and transmission of the several 
 oatiinates of such Subordinate Departments and Services. 
 
 .ride ijf Full! 
 
 8«i>-liMul. Itelilliation of Increase or DecreaM in tin 
 
 EsMnuite for 1912-1918. 
 
 •A. — Salaries. ^ 
 
 .Ifliiiiiite 1912-1913 . 
 
 1911-1912 . 
 Expenditure 1911-1912 
 
 (Sk months to 30tli 
 September 1911.) 
 » 1910-1911 
 
 itoi-iilo 
 
 1908- 1909 
 
 m-TlULVl!MlllO. . 
 
 Esttiiiile 1911-191S . 
 
 lipeiMlitiupe 1911-1012 
 
 (Six. munHU' to 30th 
 September 1911.) 
 1910-1911 
 
 1909- 1910 
 
 Bicnim, OB Cbbdit 
 
 SlTB-HKAD. 
 
 Irtiiiiate 1912-1913 . 
 
 1911-1912 . 
 Beodptfl 1911-1912 
 
 (Six months to 30th 
 8lpt®Jnher 1911.) 
 1910-1911 . 
 „ 1909-1910 . 
 ft 1908—1909 • 
 
 APPENDIX IV 
 
 list of votes 
 Navy Estimates 
 
 Vote. 
 Mm Htimbers — 
 
 1. Wages of Officers, Seamen and Boys, Coast Guards, and 
 
 Royal Marines. 
 
 2. Victualling and Clothing for the Navy. 
 
 3. Medical Establishments and Services. 
 
 4. Civilians employed on Fleet Services. 
 
 5. Educational Services. 
 
 6. Scientific Services. 
 
 7. Royal Naval Reserves. 
 
 8. Shipbuilding, Repairs, Maintenance, etc. 
 
 9. Naval Armaments. 
 
 10. Works, Buildings, and Repairs at Home and Abroad. 
 
 11. Miscellaneous Effective Services, 
 
 12. Admiralty Office. 
 
 Nm-effedive Services, vk, 
 
 13. Half Pay and Retired Pay. 
 
 14. Naval and Maiine Pensions, Gratuities, and Compassionate 
 
 Allowances. 
 
 15. Civil Superannuation, Compensation Allowances, and 
 
 Gratuities. 
 
 A»MY Estimates 
 
 Vote. 
 A. Numbers — 
 
 1. Pay, etc., of the Army. 
 
 2. Medical Establishments : Pay, etc. 
 
 141 
 
142 THE FINANCIAL SYSTEM 
 
 3. Special Reserve. 
 
 4. Territorial Forces. 
 
 5. .EstabliskneatB. for Miltftry Muciitioii,. 
 §. QiiMteringi Transport^ ftnd Ssmoiiiitt. 
 
 7. SuppUes mill ClDilimg. 
 
 8. Ozdnanoe^ Bepactmeiit Bstabliilimeiits and General 
 
 Stoves. 
 
 f . Armaments, Engineer and Aviation Stores, 
 li. Works and Buildings. 
 
 11. liiscellaneoiu Elective Bervioes. 
 
 12. War Offioe. 
 
 Nm-effedive SemceSf viz. 
 
 13. Mon-effecliva charges for Officen, etc. 
 
 14. Mon-effeclive 'diargeS' for Men, etc. 
 
 15. Civil Supeiamiiiatioa, Compensatiitti and Gratuities. 
 
 €mL. Sbbvices 
 
 Clam 1. FMm Works and Buildings 
 
 1. Eoyal Palaces. 
 
 2. 'Osborne. 
 
 3. Royal Parks and Pleasure Gardens. 
 
 4. Houses of Parliament Buildings. 
 
 5. Miscellaaeoiis Legal Buildings, Great Britain. 
 
 6. Art and Science Buildings, Great Britain. 
 
 7. Bioloioatio and 'CSonsnlar' BiiildiniES. 
 
 8. Revenue Buildings. 
 
 i. Labour Exchange and Insurance Buildings. Great Britain. 
 
 10. PnBUc Buildings, Great Britain. 
 
 11. Snrveys of the United Kingdom. 
 
 12. Harbours under the Board of Trade. 
 
 13. Peterhead Harbour. 
 
 14. Bates on Government Property. 
 
 li m "Tk '11* 1' 1' 1^. .« 1 ■ T 1 1' 
 
 10. ruDiic worics ana uniMungs, xreiana* 
 
 11. Baiways, Ireland. 
 
 APPENDIX IV 
 
 I 
 
 Class 11. Salaries and Expenses oj Civil Departmenis 
 
 United Kingdom and England 
 
 1. House of Lords Offices. 
 
 2. House of Commons. 
 
 3. Treasury and Subordinate Departments. 
 
 4. Home Office. 
 
 5. Foreign Office. 
 
 6. Colonial Office. 
 
 7. Privy Council Office. 
 
 8. Board of Trade. 
 
 9. Mercantile Marine Services. 
 
 10. Bankruptcy Department of the Board of Trade. 
 
 11. Board of Agriculture and Fisheries. 
 
 12. Charity Commission. 
 
 13. Government Chemist. 
 
 14. Civil Service Commission. 
 
 15. Exchequer and Audit Department. 
 
 16. Friendly Societies Registry. 
 
 17. Local Government Board. 
 
 18. Lunacy Commission. 
 
 19. Mint, including Coinage. 
 
 20. National Debt Office. 
 
 21. PubKc Record Office. 
 
 22. Public Works Loan Commission. 
 
 23. Registrar-General's Office. 
 
 24. Stationery and Printing. 
 
 25. Woods, Forests, etc., Office of. 
 
 26. Works and Pubhc Buildings, Office of. 
 
 27. Secret Service. 
 
 Seoikmd 
 
 28. Secretary for Scotland, Office of. 
 
 29. Board of Agriculture. 
 
 30. Fishery Board. 
 
 31. Lunacy Commission. 
 
 32. Registrar-General's Office. 
 
 33. Local Government Board. 
 
144 THE FINANCIAL SYSTEM 
 
 M. HoQBeliold of the Lord. 'lientoEAnl 
 
 Qmi Smtetaay lor 'Inlmid. 
 86. 'Bnpfirtmaiit of Igricnltim, etc. 
 S7. disatftbto Bomitioiis^ moA Beqnests^ Office. 
 
 CJ^iigeBtdL DielEMstB Boud. 
 W. Im&l Goyernmenl"'BoH!d. 
 m. Pablic Record Office. 
 
 41. Public Works Office. 
 
 42. Begistriyr-General's Office. 
 
 '4Sb ¥iiliiiilioii ftnd .Bouidazy Sunrej. 
 
 Ckm III. Lam mm JiMwe 
 
 1. Imw 'diiifges. 
 
 2. Miscellaneous Legal Expenses. 
 
 8. Supreme Court of Judicatiire, etc. 
 
 4. I^d Registcy. 
 
 6. 'Pabio: Trustee. 
 
 5. ^Oomity' Courto. 
 
 7. Police, England and Wales. 
 
 8. Prisons, England and tbe C!olonies. 
 
 9. Reformatory and Industrial Schools, Great Britain. 
 
 10. fyimitiAl Lunatic Asylums. .Enidftud. 
 
 SooUand 
 
 11. Law Charges and 'Courts of 'Law. 
 
 12. Scottish Land Court. 
 
 IS. Bcpiter' House, Edinburgh. 
 
 Inkmi 
 
 11. Law Charges and Criminal Prosecutions, 
 li. Sttpicme Court of Judicature and other Legal Depart- 
 ments. 
 
 17. Irish Land Commission. 
 
 18. Countj Court Officers, etc. 
 
 IS. Dublin, ■lictwipoitan Police^ (including Police 'Courts). 
 
 APPENDIX IV 
 
 HS 
 
 Mf, MmjM insn i^onsmDUiarj. 
 
 21. Prisons. 
 
 22. Reformatory and Industrial Schools. 
 
 23. Dundrum Criminal Lunatic Asylum. 
 
 Ckm IF. Educatiimj Sdmce, afd AH 
 
 UnUed Kingdom afd England 
 
 1. Board of Education. 
 . Bntisii Museum. 
 
 3. National Gallery. 
 
 4. National Portrait Gallery. 
 
 5. Wallace Collection. 
 
 6. Scientific Investigation, etc. 
 
 7. UniYcrsities and Colleges, Great Britain, and Intermediate 
 
 Education, Wales. 
 
 Scodani 
 
 8. Public Education. 
 
 9. National Galleries. 
 
 10. 'Public Education. 
 
 nHSiiilAWAii RraiAAM l^iAiiriTViiaaiATiiiiMa 
 
 12. National Gallery. 
 
 13. Science and Art. 
 
 14. Universities and Colleges. 
 
 GUm F. Foreign and Colonial Services 
 
 1. Diplomatic and Consular Services. 
 
 2. Colonial Services. 
 
 3. Telegraph Subsidies and Pacific Cable. 
 
 4. Cyprus, Grant in aid. 
 
 5. Treasury Chest Fund. 
 
 Class VI. Non-effective and ChariUMe Services 
 
 1. Superannuation and Retired Alowances. 
 
 2. MisceUaneous Charitable and other Allowances. 
 
 3. Hospitals and Charities, Ireland. 
 
 4. Savings Banks' and Friendly Societies' Deficiencies. 
 
 5. Old Age Pensions. 
 
146 THE FINANCIAL SYSTEM 
 
 'Ckm VIL MimseUmmmm 
 
 1. Temporary Commissions. 
 
 2. Miscellaneous Expenses. 
 
 8. Repayments to the Local Loans Fund. 
 
 4. Ireland Development Grant. 
 
 5. Ctevemmeiit Hoipitality. 
 
 6. International EkUMtions. 
 
 7. Bepajrments tO' the Civil Contingencies fund. 
 
 8. liqieiiies under Unemployed Workmen Act, 1905. 
 
 Ckm F/U. Immmmce mnd Labow Emhmn^ 
 
 1. Mational Healili Insurance, Joint Committee. 
 
 2. National Health Insurance Coiimiission, England. 
 
 3. National Health Insurance Commission, Wales. 
 
 4. National Health Insurance Commission, Scotland. 
 
 6. National Hlili Insurance Commission, Ireland. 
 LalMiiir Exchanges and Unemployment Insurance. 
 
 7. National Healih Insoia&ce, Audit Bepartmenl. 
 
 8. Iriendlj .Societies, Grants in Aid. 
 
 ft. National Health Insurance (Special Grants). 
 M. Treatment of Tulierculosis (Special Grants). 
 
 I. Customs and Excise. 
 '2. Inland Revenue. 
 
 5. Bost Office. 
 
 APPENDIX V 
 
 OONSOLIDATEB WUNB (MO. 1) BILL, 1912 
 
 A Bill to apply certain sums out of the Consolidated Fund to 
 the service of the years ending on the thirty-first day 
 of March one thousand nine hundred and eleven, one 
 thousand nine hundred and twelve, and one thousand 
 
 Most Gracious Sovereign— We, Your Majesty's most 
 dutiful and loyal subjects, the Conmions of the United 
 Kingdom of Great Britain aiid lreland in Parliament assembled, 
 towards making good the supply wMch we have cheerfuly 
 granted to Your Majesty in this session of Parliament, have 
 resolved to grant unto Your Majesty the sums herein-after 
 mentioned ; and do therefore most humbly beseech Your 
 Majesty that it may be enacted, and be it enacted by the 
 King's most Excellent Majesty, by and with the advice and 
 ixinsent of tde Lo^ds Spiritual and Temporal, and Commons 
 in thk pieBent Parliament wBembled. and by the authorit; 
 of ihe same, as follows 
 
 1. The Treasury may issue out of the Consolidated Fund 
 of the United Kingdom of Great Britain and Ireland, and 
 apply towards making good the supply granted to His Majesty 
 for the service of the years ending on the thirty-first da/y 
 
 0110 '^AoiiMiiil 'ftffi€ .^wulf fid ^eleijef^ aitil ^otiwfi^ 
 fitfie hmked md tw^^ the sum of two hmdrei and forty -(me 
 timmmi om hmdred and mjmJtmi, pounds. 
 
 2. The Treasury may issue out of the ConsoUdated Fund 
 of the United Kingdom of Great Britain and Ireland, and 
 apply towards making good the supply granted to His Majesty 
 for the «Mrvioe of tiie year ending <m the day of 
 
 «47 
 
148 THE FINANCIAL SYSTEM 
 
 March one ikommii nim hm^M md thirteen the sum olfifty- 
 mme miUion mmdy-two thousand one hundred pounds, 
 
 3. — (1) The Treasury may borrow from any person, by the 
 issue of Treasury Bills or otherwise, And the Bank of England 
 Md the ^Banlc' of Irelund may adiranoe to the Tfeasuiy on the 
 oredit of lie mM mam, any siun or .sums not exceeding in the 
 whole j^E^tfttf mMm^ ikm kmtdred and ^irteen thmmmd 
 tm hundred amd^ mmteem pounds. 
 
 (2) The date of payment of any Treasury Bills issued 
 under this section shall be a date not later than the tkkty- 
 JlrH ia§ €^ March one ihmmmd nine hundred and tkirieen, and 
 mc&m ax of 'the^ Treasury Bils. Ict^, 1877 (which lelates to^ 
 'the :nnewal. of hills), shal not apply mih respect to those 
 billB. 
 
 (8) Any nuiiMiy borrowed otherwise than on Treasury Bills 
 ahiiU be repaid, with interest not exceeding five pounds per 
 cent per annum, out of the growing produce of the Con- 
 solidated Fund, at any period not latef than the next suc- 
 'Ceeding qmadm to that in which the money waa bonowed. 
 
 (4) Any money bomiwed under this section shai be placed 
 to the ccedit of the account of the Exchequer, and shall form 
 part of the said Consolidated Fund, and be available in any 
 manner in which such Fund is available. 
 
 4. This Act may be cited as the Consolidated Fund (No. 1) 
 
 Mote.—SeeUon 6 of th© Treasury Bills Act, 1877, referred to in 
 .Clmi» I (2) <if the above Bill, empowers the Treasury to issue 
 TPMMimy Rlla or Exchequer Bills in Ueu of Bilk paid off during the 
 
 APPENDIX VI 
 
 OOMSOUBATBD WUWD (APPEOFBIA'FIOII) ACT, 1912 
 
 2 & S Qm, V. o. 7 [7tk August 1912] 
 
 An Act to apply a sum out of the Consolidated Fund to the 
 service of the year ending on the thirty-first day of March 
 one thousand nine hundred and thirteen, and to appro- 
 priate the Supplies granted in this Session of Parliament. 
 
 Most Graoioits Sovebbiqh — We, Your Majesty's most dutiful 
 and loyal subjects, the Commons of the United Kingdom of 
 Great Britain and Ireland in Parliament assembled, towards 
 making good the supply which we have cheerfully granted to 
 Your Majesty in this session of Parliament, have resolved to 
 grant unto Your Majesty the sum herein-after mentioned; 
 and do therefore most humbly beseech Your Majesty lihat it 
 may be enacted ; and be it enacted by the King's most 
 ExceUent Majesty, by and with the advice and consent of 
 the Lords Spiritual and Temporal, and Commons, in this 
 present Parliament assembled, and by the authority of the 
 same, as follows : — 
 
 Grants oot of Cohsolidatisd Fund 
 
 1. The Treasury may issue out of the ConsoHdated Fund 
 of the United Kingdom of Great Britain and Ireland, and 
 apply towards making good the supply granted to His Majesty 
 for the service of the year ending on the thirty-first day of 
 March one thousand nine hundred and thirteen the sum of 
 ninety-two million eight hundred and forty-seven thousand 
 three hundred and forty-three pounds. 
 
ISO THE FINANCIAL SYSTEM 
 
 2. — (1) Tk© fteastiiy may borrow from any person, by the 
 isBoe of Treamiry Bilk or otherwise, and the Bank of England 
 and the Bank of Ireland may advance to the Treasury on the 
 oredit of the said sums, any sum or gums not exceeding in 
 tlio. whole ninety-two million eight hundred and forty-iovea 
 'thoiinand three hundred, and forty-three^ {loimds. 
 
 (2) The date of payment of .any Treasury Billa issued 
 under this section shal be a date not kter than iiie thirty- 
 first day of March one thousand nine hundred and thirteen 
 and section six of the Treasury Bills Act, 1877 (which relates to 
 the renewal of bills), shall not apply with respect to those bills. 
 
 (S) Any money borrowed otherwise, than on Treasury Bills 
 :ihai 'bo .repaid, with intmst not ezoeeding &m pounds, per 
 cent, per annum, out of the growing produce of the Consoli- 
 dated IWd, at any period not kter than the next succeeding 
 quarter to tiiat in which the money was borrowed. 
 
 (4) Any money borrowed under t^» section shall be placed 
 to the credit of the account of the Ixchoquer, and shall form 
 ,p«rt. of 'the said Consoidated. .Fund, and be availablo :in any 
 :miinner in wUcli. such Fund .is available. 
 
 .AraaoMttnoM' of Qmmm 
 
 3. Al sums granted by this Act and the other Act men- 
 tioned "in Schedule (A.) annexed to this Act out of 'the said 
 CSonsolidated Fund towards making' good the rapply granted 
 to Bis Majesty, amounting, as appears by the said schedule, 
 in the aggrepto, to the sum of one hundred and fifty-two 
 million one hundred and sixty thousand five hundred and sixty 
 pounds are appropriated, and shaU be deemed to have been 
 appropriated as from the date of the passing of the Acts 
 mentioned in the said Schedule (A.), for the services and 
 pnzposes expressed in Schedule (B.) anuezod hereto. 
 
 'The abstraot ^of schedules and schedules annexed hereto, 
 with the notes (if any) to such schedules, shall be deemed to 
 bo part of this Act in the same manner as if they had been 
 cmtained in the body thereof. 
 
 In addition to the sums hereby granted out of the CSon- 
 solidated Fund, there may be applied out of any money 
 
 APPENDIX VI 
 
 directed under section two of the Public Accounts and Charges 
 Act, 1891, to be applied as appropriations in aid of the grants 
 for the services and purposes specified in Schedule (B.) an- 
 nexed hereto, the sums respectively set forth in the last 
 column of the said schedule. 
 
 4. ^1) go long as the aggregate expenditure on naval and 
 military services respectively is not made to exceed the 
 aggregate sums appropriated by this Act for those services 
 respectively, any surplus arising on any vote for those services, 
 either by an excess of the sum realised on account of appropri- 
 ations in aid of the vote over the sum which may be appled 
 under this Act as. appropriations in aid of that vote, or by 
 saving of expenditure on that vote, may, with the sanction of 
 the Treasury, be temporarily appHed either 1 laMng up any 
 deficiency in the sums realised on account of appropriations 
 in aid of any other vote in the same department, or in defraying 
 expenditure in the Bame department wUch is not provided for 
 in the sums appropriated to the service of the department by 
 this Act, and which it may be detrimental to the public service 
 to postpone until provision can be made for it by Parliament 
 in the usual course. 
 
 (2) A statement showing all cases in which the sanction of 
 the Treasury has been given to the temporary application of 
 a surplus under this section, and showing the circumstances 
 under which the sanction of the Treasury has been given, 
 shall be laid before the House of Conamons with the appropri- 
 ation accounts of the naval and military services for the year, 
 in order that any temporary application of any surplus sanc- 
 tioned by the Treasury under this section may be submitted 
 for the sanction of Parliament. 
 
 5. Whereas under the powers given for the purpose by the 
 Appropriation Act, 1910, and the Appropriation Act, 1911, 
 surpluses arising on certain votes for the naval and military 
 services respectively have been temporarily applied as shown 
 in the accounts set out in Schedule (C.) to this Act : 
 
 It is enacted that the application of those surpluses as 
 shown in the said accounts is hereby sanctioned. 
 
 6. A person shall not receive any part of a grant which 
 may be made in pursuance of this Act for half-pay or army, 
 
152 THE FINANCIAL SYSTEM 
 
 mwj, iir oivi non-effective servioes, until lie has subscribed 
 mek declumtioii as may from time to time be prescribed by a 
 warrant of the Treaauiy before one of the persons prescribed 
 by such warrant : 
 
 Provided that, whenever any such payment is made at 
 msm fmqmmt intervals, than once in a quarter, the Treasury 
 may dispense with the prodnotion of more than one declara- 
 tion in respect of each quarter. 
 
 Any person who makes a declaration for the purpose of 
 this section, knowing the same to be untrue in any material 
 particular, shall be guilty of a misdimeanour. 
 
 7. This Act may be cited for att piirpoies. as the Appropria- 
 lioD Act,. 1913. 
 
 APPENDIX VI 153 
 
 ABSTEACT of SCHEDULES (A.) and (B.) to which this 
 
 Act befebs 
 
 SCHEDULE (A.) 
 amiits out of the Consolidated Fund . . . £152,160,560 
 
 SCHEDULE (5.)— Appeopriation of Grants 
 
 
 
 
 Smna not exceeding 
 
 
 
 
 Swpidy Onints. 
 
 Appropfiations in Aid. 
 
 
 
 191(K1011-19ll 
 
 £ 
 
 f. 
 
 
 £ 
 
 t. 4. 
 
 Part L Navy Excesses, 1910-1911 
 
 100 
 
 0 
 
 0 
 
 28,795 10 10 
 
 
 
 Civil Services (Supplo- 
 
 
 
 
 
 
 
 
 mentaij), 1911-1912 
 
 241.017 
 
 0 
 
 0 
 
 27,190 
 
 0 0 
 
 
 
 
 241,117 
 
 0 
 
 0 
 
 55,986 10 10 
 
 
 
 1912-1913. 
 
 
 
 
 
 
 ft 
 
 3. 
 
 Navy 
 
 45,075,400 
 
 0 
 
 0 
 
 1,863,892 
 
 0 0 
 
 
 
 Army 
 
 27,860,000 
 
 0 
 
 0 
 
 3,414,166 
 
 0 0 
 
 ft 
 
 4.' 
 
 Army (Ordnanoe Fac- 
 
 
 
 
 
 
 
 
 tories) .... 
 
 100 
 
 0 
 
 0 
 
 2,923,000 
 
 0 0 
 
 
 
 
 72,935,600 
 
 0 
 
 0 
 
 8,201,057 
 
 0 0 
 
 ft 
 
 ilw \MwU. OOlTVIwlXi, V/UHKI X* • 
 
 3,831,430 
 
 0 
 
 0 
 
 125,263 
 
 0 0 
 
 *, 
 
 6. 
 
 „ Class II. . 
 
 4,182,144 
 
 0 
 
 0 
 
 828,481 
 
 0 0 
 
 n 
 
 7. 
 
 „ Class III. . 
 
 4,621,535 
 
 0 
 
 0 
 
 861,101 
 
 0 0 
 
 ft 
 
 a 
 
 „ Class IV. . 
 
 19,705,454 
 
 0 
 
 0 
 
 30,774 
 
 0 0 
 
 t* 
 
 9. 
 
 „ Class V. . 
 
 2,142,768 
 
 0 
 
 0 
 
 138,366 
 
 0 0 
 
 ft 
 
 10. 
 
 „ Class VI. . 
 
 13,014,564 
 
 0 
 
 0 
 
 • • 
 
 
 ft 
 
 11. 
 
 Class VII. . 
 
 380,699 
 
 0 
 
 0 
 
 7,250 
 
 0 0 
 
 It 
 
 12. 
 
 cWvin. 
 
 3,042,669 
 
 0 
 
 0 
 
 202,600 
 
 0 0 
 
 
 
 ToxAi. Civil Sibyiobs . 
 
 50,921,263 
 
 0 
 
 0 
 
 2,183,735 
 
 0 0 
 
 t» 
 
 13. KeveEneBepartm©nts,&0. 
 
 28,062,680 
 
 0 
 
 0 
 
 734,963 
 
 0 0 
 
 
 
 Gbamb Total . 
 
 162,160,560 
 
 0 
 
 0 
 
 11,175*740 
 
 10 10 
 
154 THE FINANCIAL SYSTEM 
 
 OlAMTi. OOT OF TBI CONSOMDAIID FUMB 
 
 For tlie i©rvioo of tlie years ended on Urn * • 
 31it diij of' llanli 1911 and 1912 
 Under' Aat $ €bo. & o. 1 . . , Ml,117 0 0 
 .For Ibe iorvice of tli© jme ending on tk© 
 day of Maroli 1913 : — 
 Under' Act t €bo. & e. 1 . . . 69,072,100 0 0 
 
 Under liiii lot , . , , . 92,847,343 0 0 
 
 TcwAL . , . 152,160,560 0 0 
 
 .SCHEDUIl (B.)— Part 1 
 Na¥Y Bxcissn, 1910-1911 
 
 
 
 
 
 
 Siiply Ctauita. 
 
 Aipniiiiatloiii 
 in AM* 
 
 Sim. gnmted to make good Eieeiaes 
 of Havy Bxpenditui© lieyood the 
 GrantB for tbe year ended on the 
 31et day of Marcli 1911 . 
 
 £ «. d, 
 
 im 0 0 
 
 £ «. d. 
 28,795 10 10 
 
 
 
 
 
 APPENDIX VI 
 
 155 
 
 SCHIDULB (RHPam 2 
 
 dim SlEVICES (SuPPLBMBNTAitY), 1911-1912 
 
 Schedule of Supplementary Sums granted to defray the charges 
 for the Services herein particularly mentioned for the year 
 ended on the 31st day of March 1912, viz. : — 
 
 Class II. 
 
 For the Salaries and Expenses in the 
 Offices of the House of Commons 
 
 For the Salaries and Expenses of the Board 
 of Agriculture and Fisheries, and of 
 Boyal Botanic Gardens, Kew, including 
 certain Grants in Aid .... 
 
 For Stationery, Printing, Paper, Binding 
 ^and Printed Books for the Pablic 
 Serriee, for the Salaries rad EzpeiDflefl 
 of the Stationery Office, and for Sundry 
 Miseelaneons Services, including Be- 
 ports of Pariiomentary Debates . 
 
 For the Salaries and Expenses of the De- 
 partment of Agriculture and other 
 Indiistries. and Technical Instruction 
 for Ireland, and of the Services ad- 
 ministered by that Department . 
 
 For the Salaries and Expenses of the Local 
 Government Board, Ireland, and to en- 
 able it to make good certain Statutory 
 advances 
 
 For certain Miscellaneous Legal Expenses 
 For such of the Salaries and Expenses of 
 the Supfom© Court of Judicature and 
 Court of Criminal Appeal as are not 
 charged on the ConsoUdated Fund 
 For the Salaries and Expenses of the 
 Establishment of the Crofters Com- 
 mission . ' 
 
 Carried forward . 
 
 Sums not exoeedii^ 
 
 Supply Grants. 
 
 1 1,400 
 
 47,000 
 
 50,000 
 If 000 
 
 1,600 
 
 120 
 
 111,135 
 
 Appropriations 
 in Aid. 
 
 £ 
 
 940 
 
 18,105 
 
 2,000 
 
 6^645 
 
 27,690 
 
156 THE FINANCIAL SYSTEM 
 
 
 Sum ndl ezcoediag 
 
 
 Snsply Omni 
 
 ^ Approprliitliiiis 
 
 is .AM* 
 
 Brought forward 
 For the Salaries and Expenses of the Com 
 laiiHionQr iif PoUco, the PoUce Courts 
 
 and Metropultan Police Establiahmen 
 
 of DuMm 
 
 " • ifi id 
 
 1 ^ 
 • • ,1 ^v^v^ 
 
 - 
 t 
 
 ■ 3,500 
 
 £ 
 
 6001 
 
 CisMM IV. 
 
 
 
 For til® Salaries and Expenses of the 
 Mattinal Gallery, inelnding a Grant in 
 Aid f or the Ftttchas© of Kotittes: . 
 
 WtW tlM' Salariiiii And "RvniM'MMi #%# 
 
 ^» wmmv §iftmmM.Mxm (Mill .JSApenSOS OI Wie 
 
 National Portrait Galleiy . 
 Wm .Public Education in Scotland, a«l.;fbr 
 Menee ■tmd. Art: in. Sodtiami . ' . 
 
 17,776 
 '^10 
 1IS,000 
 
 • • 
 ■ • 
 
 • • 
 
 Glass V» 
 
 
 
 For maldng good Hie mt lots on 'trant:. 
 actions connected with tlie raising of 
 money for the various Treasury diitls 
 Alwoad in the ,yeiir 1910-1911 . 
 
 
 • • 
 
 Class Vlt 
 
 
 
 J* or Expenditure m connection wiih Inter- 
 national Exhibitions (including a Gnmt 
 in Aid of the Expenses of the Royal 
 ComraissioTi for the Brussels, Rome, and 
 Turin Exhibitions) 
 
 J! or a erant in Aid of the Expenses in- 
 cittwd on aeooont of the C!oronation of 
 Mm Majesty the King, including the 
 State' Visits, to^ .IveltuMi, Watei .and Soot- 
 land . • 
 
 19>i300 
 10 
 
 • • 
 
 • • 
 
 ■Class. VIIL. 
 
 
 
 jPor the Salaries and Izpams of the 
 QflSees of tie Insitrance Commissioiieni 
 in England, Wales, Sootiimii and 
 Iwlmid, and. 'Of the Joint Ctatanttee , 
 
 31,690 
 
 • • 
 
 Total, . 
 
 241,017 
 
 f7,190 
 
 * Beieit. 
 
 APPENDIX VI 
 
 157 
 
 SCHEDULE (B.)-Pabt 3 
 NAVY 
 
 Schedule of Sums granted, and of the sums which may be applied 
 as appropriations in aid in addition thereto, to defray the 
 charges of the Navy Services herein particularly mentioned, 
 which will come in course of payment during the year ending 
 on the 3l8t day of March 1913 ; viz. : — 
 
 No. 
 •1. 
 
 3. 
 
 4. 
 
 6. 
 6. 
 
 ft 
 
 For wages, &c., to 137,600 oMcers, 
 seamen, and boys, coastguard, and 
 royal marines (including an addi- 
 tional number of 1500 men and boys 
 and an additional sum of 60,000;.) . 
 2. For victualling and clothing for the 
 . navy, including the cost of victual- 
 ling esliiiilisiiniaits at home and 
 abroad (including an additional 
 sum of 64,0001.) . . . . 
 For medical services, including the 
 cost of medical establisiioiettts at 
 home and abroad .... 
 
 For martial law 
 
 For educational services 
 For scientific services .... 
 7. For the royal naval reserve, the royal 
 fleet reserve (including seamen pen- 
 sioner reserve), Iiili"the royal naval 
 
 volnnteeiB, &c . 
 8» Sect 1. For the personnel for ship- 
 building, repairs, maintenance, &c., 
 Inelnding the cost of establishments 
 of dodiyanls and naval yards at 
 home uid abroad (inelnding an 
 additional sum of 36,000^.) . 
 Sect. 2. For the materiel for ship- 
 building, repairs, maintenance, &c., 
 including the cost of estabhshments 
 of dockyards and naval yards at 
 home and abroad .... 
 
 Carried forward . 
 
 Sama not exceedinf 
 
 Snppljr 'OnuitB. 
 
 7,687,000 
 
 2,682,100 
 
 269^900 
 3,500 
 162,500 
 72,000 
 
 426,700 
 
 3,528,800 
 
 6,076,800 
 
 [19,899,300 
 
 Appropriations 
 in AM. 
 
 174,500 
 
 731,337 
 
 20,006 
 100 
 66,386 
 31,789 
 
 9,732 
 
 22,000 
 
 380,300 
 
 1,436,208 
 
158 THE FINANCIAL SYSTEM 
 
 
 Sums not exceeding 
 
 Supply Graiit& 
 
 AmnvmrlAfikitiii 
 tu. AM. 
 
 Ho* 
 
 t 
 
 £ 
 
 Biongiit f orwan! 
 
 19,8ii,300 
 
 1,436,208 
 
 8. ISi9€t. 3. For oontraot work for ship- 
 
 
 
 liiiilciiiigt ropfuis, ao. (mciiiding im 
 
 
 
 additKiiiiil. 111111. of 611,00(M.) . 
 
 
 175.000 
 
 HI|M|||| d| • Hi V It 
 
 ii For niiTiil uniiitiiie&ts (iiioliidiiig an 
 
 
 
 aclciitioiiiil ram 'Of M>,0(MM.) . 
 
 4119,000 
 
 145»7lJll 
 
 10. For wocn, oiiiidiiigB, and repairs at 
 
 
 Immiw and abroad, 'including thO' oost 
 
 
 
 'Of fiiperinteiidonoo, puroliase of 
 
 
 
 sites, grants in aid, and other 
 
 
 
 eharges connected therewith (in- 
 
 
 
 eluding an additional sum of 
 
 
 
 30,0002.) ...... 
 
 3,645,000 
 
 32,000' 
 
 11. For various miscellaneous eieotiTe 
 
 
 
 * 
 
 532,000 
 
 .l.«l,«Slfll 
 
 U» Fte tliD Admin^lj 'Offiee . 
 
 
 8,850 
 
 13^ Vm^ haM-imy, and retired pay to 
 
 
 
 oaflen of ' the navj and. 'maEmes . 
 
 960^800 
 
 21,412 
 
 14. Fur nftval and madno penttons, .gra- 
 
 
 
 tuities, mid 'OonipaBaioMite allow- 
 
 
 
 anoes 
 
 1,516,200 
 
 30^926 
 
 IS. For civil superannuation, oompenia- 
 
 
 
 lion allowaiiMS,. .and gpituities . 
 
 413,000 
 
 410 
 
 Total Navy Sbbviohs ... 
 
 45,075,400 
 
 1,863,892 
 
 
 APPENDIX VI 
 
 159 
 
 SCHBDULB (B.)— Part i 
 
 ABMY 
 
 ScMiDtJLB of Sums granted, and of the sums which may be applied 
 as appropriations in aid in addition thereto, to defray the 
 charges of the Army Services herein particularly mentioned, 
 which will come in course of payment during the year ending 
 on the 31st day of March 1913 ; viz. : — 
 
 Ifo. 
 
 1. For the pay, &c., of His Majesty's 
 
 Army (including Army Reserve to 
 a number not exceeding 139,000) 
 at home and abroad (exclusive of 
 India) . 
 
 2. Jor the pay, &c., of the medical estab- 
 
 lisbments and for medicines, Ate, . 
 
 3. For the pay, bounty, &c., of the 
 
 Special Beaerve (to a number not 
 exceeding 91,363, including 1300 
 militia and 150 militia reserve) and 
 of the Officers' Training Cbrps 
 
 4. For grants, pay, allowances, training, 
 
 and miscellaneous charges of the 
 Territorial Force (not exceeding 
 319,673 men, including 5000 Terri- 
 torial Force Reserve), and Channel 
 Islands and Colonial MiUtia, includ- 
 ing the expense of permanent staff 
 
 5. For establishments for miltatyedttoa- 
 
 4 For fuarlenng, transport, and re- 
 noiints 
 
 7. For supplies and clothing . 
 
 a For the Ordnance Department estab- 
 lishments and for general stoves . 
 
 9^ For armaments, aviation and engineer 
 stores, including technical com- 
 mittees ...... 
 
 Carried forward . 
 
 Sums not exceeding 
 
 £ 
 
 8,536,000 
 
 1,718,000 
 
 AppropriatJons 
 tm AM. 
 
 1,354,000 
 
 436,000 
 
 1,700 
 
 716,000 
 
 6,600 
 
 2,780,000 
 
 
 142^ 
 
 89,100 
 
 1^624,000 
 4,275,000 
 
 67,000 
 198,500 
 
 615,000 
 
 220,000 
 
 325,000 
 
 20,841,000 
 
 2,266,700 
 
tilrt THF FIMAMPTAT 
 
 8iii!]il J Ct wii rifft 
 
 Aiipropriatioiii 
 ii AM. 
 
 11 
 
 .Bitiiiglit lorwiwl 
 
 Wm 'wurke, buildingSy awl mpmm, 
 laiicls, and miioellftiieoiia inigliiefir 
 'Serriees, includiiig ilKi m imiiieo- 
 tion therewith 
 
 For miacellajieous effective services . 
 
 For the War Office .... 
 
 For rewards ; half -pay ; retired pay ; 
 widowi* pensions ; and other non- 
 effective charges lor officers . 
 
 For CUeea and Kilmainham hos- 
 pitals ; for out peniions. ; for' :re» 
 'wardB for diatiiifiiiahed .aervioea-; 
 te' widows* penaioiis; andfoT'Othor 
 .ami-iiffeotivo charges for wamtat 
 'Ofioers, noii*ooiiiiiiiaaioiied 'Officers, 
 and meiif &c 
 
 For civil superannuation, compensa- 
 tion, and additional allowaiu 
 gratuities, injury grants, &a . 
 
 Total Abmy Sebvicbs . 
 
 ilitifY (OnfiTAirim Factories). 
 
 For the ordnance factories, the cost of pro- 
 ductions of which is charged to the 
 army, navy, and Indian and Colonial 
 Grovemmants, A;o. 
 
 17. 
 
 ToTAii' Jamt E. 
 'Ckniif Avcai' Fai 
 
 mem (IMCILUDIIIQI 
 
 2,602,000 
 72,000 
 440,000 
 
 1,843,000 
 
 1,917,000 
 
 145,000 
 
 27,860,000 
 
 100 
 
 27,860,100 
 
 £ 
 
 2,266,700 
 
 106,900 
 950 
 
 ■560 
 
 616,000 
 
 02il,llUfl' 
 
 65 
 
 3,414,165 
 
 2,923,000 
 
 6,337,165 
 
 APPENDIX VI 
 
 i6i 
 
 SOHIDULI (B.>~Pa»t 5 
 
 CIVIL SERVIOBS — Class I 
 
 SoHiDTJMS of Sums granted, and of the sums which may be appEed 
 118 appropriations in aid in addition thereto, to defray the 
 eharges of the several Civil Seeviges herein particularly 
 mentioned, which will come in course of payment during the 
 year ending on the Slst day of March 1913 ; viz. : — 
 
 
 Suns mot 'exceeding 
 
 
 Appropriations 
 in Aid. 
 
 Ho. 
 
 £ 
 
 £ 
 
 1. For expenditure in respect of royal 
 
 
 
 palaces, including a grant in aid 
 
 71,300 
 
 1,087 
 
 2. For expenditure in respect of Osborne 
 
 13,000 
 
 2,400 
 
 3. For the royal parks and pleasure 
 
 
 
 gardens 
 
 125,700 
 
 11,470 
 
 4.' J? or expenaiture m respeci oi bne 
 
 
 
 Houses of Parliament buildings . 
 
 60,800 
 
 400 
 
 5. For expenditure in respect of miscel- 
 
 
 
 laneous legal buildings, Great 
 
 
 
 Britain 
 
 79,200 
 
 600 
 
 6. For expenditure in respect of Art and 
 
 
 
 Science buildings. Great Britain (in- 
 
 
 
 cluding, a supplementary sum of 
 
 
 
 38,3502a ) ■ > • • • • 
 
 142,660 
 
 2,045' 
 
 7. For expenditure in respect of diplo- 
 
 
 
 matic and consular buildings, and 
 
 
 
 for the maintenance of certain 
 
 
 
 cemeteries abroad (including a 
 
 
 
 supplementary sum of 20,0002.) . 
 
 105,800 
 
 
 8. For the Customs and Excise, Inland 
 
 
 
 Revenue, Post Ofl&ce and Telegraph 
 
 
 
 buildings in Great Britain, and 
 
 
 
 certain Post Offices abroad . 
 
 725,800 
 
 5,340 
 
 9. For Labour Exchange and Insurance 
 
 
 
 buildings. Great Britain (including 
 
 
 
 a supplementary sum of 135,0002.) 
 
 350,300 
 
 666 
 
 10. For expenditure in respect of sundry 
 
 
 
 public buildmp in Great Britain 
 
 
 
 not provided for on other votes . 
 
 725,600 
 
 12,298 
 
 Carried forward. 
 
 2,390,060 
 
 37,443 
 
i62 THE FINANCIAL 
 
 Broiiglit fanmrd . . 
 11.. Wm ika msrw9f f£ Urn VjMiod Kiof- 
 dom, and lor minur Mnriois mn- 
 mected there with . . . , 
 
 12. Wot maintaining oertaiii Imrlioiirs 
 
 under the Board of Trad® and for 
 grants in aid of harbours 
 
 13. For ooBstraoting a new harbour of 
 
 mfiigft «| Bttterhead . 
 
 14. For rfttn mod Mnliiliiilions in Ueu of 
 
 mtoe. Aw., in reepect of Government 
 'property, and lor rates m. hamm 
 'OMiipied. bj .BepneentiitiTee of 
 Ito^m Fmrem,. and lor salaries and 
 ol th. filing rf Qavem- 
 'ineni pfopsrty 'departniMitk 'and lor 
 a contrilmiifiii towanli tlie^ ezpeoses 
 of the London Fire Bqgaie . 
 
 li. War the erection, repairs, and main- 
 teaanee of public buildings in 
 Ireland, for the maintenance of 
 certain parin and pubHc works, and 
 for tito maintenance of drainage 
 works OB the River Shannon . 
 
 li. For payments' vnder the 'Tramways 
 and Pnhio OompanieB (Imland) 
 .Aet, 1883, Ibo., tlie Bailways 
 f Inland) Ael,. 18M, and 'the Marim 
 Woffcs (inlanii) MM, IW . 
 
 tmm 'Om Sasfiwi,^ Class I. . . 
 
 SiiH. wa/t exMedlig 
 
 Supplr Qctiits. 
 
 214,i81l' 
 
 73,065 
 32,000 
 
 Afproprlationi 
 in Aid. 
 
 imjm 
 
 273,366 
 
 48,360 
 
 3,831,:430 
 
 37,443 
 
 43,475 
 
 2,600 
 
 33^786 
 
 7.960 
 
 126,263 
 
 APPENDIX VI 
 
 SCHEDULE (B.)— Faet 6 
 CIVIL SERVICES.— Class H 
 
 Schedule oi Sums granted, and of the sums which may be appEed 
 as appropriatkms in aid in addition thereto, to defray the 
 chsiTges of the several Civil Sbrvicbs herein particilarly 
 mentioned, which will come in course of pajrment dming the 
 year ending on the Slst day of March 1913 ; viz. : — 
 
 Ha 
 
 1. For the salaries and Mtpenses of the 
 
 offices of the Hoose of Lords 
 
 2. For the salaries and expenses of the 
 
 Honae of Commons .... 
 
 3. For the salaries and other expenses of 
 
 the department of Bjs ICafesty's 
 Treasury and subordinate depart- 
 ments, including expenses in respect 
 of advances under the light Rail- 
 ways Act, 1896 .... 
 
 4. For the salaries and expenses of the 
 
 office of His Majesty's Secretary of 
 State for the Home Department 
 and subordinate offices . 
 
 5. For the salaries and expenses of the 
 
 department of ffisMajest/s Secre- 
 tary of State for Foreign Affairs . 
 
 6. For the salaries and expenses of the 
 
 department of His Majest/s Secre- 
 tary of State for the Colonies, in- 
 cluding a grant in aid of certain ex- 
 penses connected with Emigration 
 
 7. For the salaries and expenses of the 
 
 department of His Majesty's most 
 Honourable Privy Council 
 
 8. For the salaries and expenses of the 
 
 office of the Committee of Privy 
 Council for Trade, and subordinate 
 departments (including a supple- 
 mentary sum of 37601.) . 
 
 'Carried, forward . 
 
 SuniB not ozceedlng 
 
 1,208,722 
 
 Appropiialli 
 in AM. 
 
 £ 
 
 15,000 
 16,000 
 
 4,344 
 
 13,500 
 
 ■■■..■■III liHff 
 
 775 
 
 1,800 
 
 26,446 
 
 77,865 
 
164 THE FINANCIAL SYSTEM 
 
 
 Sums not exceeding 
 
 Supply Oiwita. 
 
 Appropriations 
 in Aid 
 
 ]lf>. 
 
 
 £ 
 
 Brouglil forward • . 
 
 1,208,IM 
 
 77,805 
 
 M« j'Cv mm saianes ana expenms 'Ot oer- 
 
 
 
 wtM. iervices tranizerrea irom iM 
 
 
 
 jiiiofcaiii>iie Maniie jf una anci otnef 
 
 
 
 services connecicu wim ine Jiiercan* 
 
 
 
 tile Marine (includiiig Merchant 
 
 
 
 'Seamen s Jjimci tfieniiioiHi) • . 
 
 
 73,400 
 
 Jill. J? or .ineoiiiig ine ciiiiMQMy w i&ooino 
 
 
 nvjin iMi,. so., tor tiie nfiiurementa 
 
 
 
 01 ine jMMim oc .iximibi imcier ine 
 
 
 
 jsmuonptoy Aois, IWoa and. iWtmj * 
 
 8 
 
 111,291 
 
 ii. .j!<ir cne: laiiiiiei ann ttcponnei' ot ttie 
 
 
 jMiani 01 .agpoitiiiiiO' unci .jfinienes 
 
 
 
 ana. of .no]^ jsotaiuoijlarcteiiii, JiAw, 
 
 
 
 inciuoing certain grants in aid 
 
 8SS,IIS9 
 
 137,580 
 
 iz* J* or tne saianes ana expenseB oi tne 
 
 
 
 
 
 
 anu waies ...... 
 
 30,313 
 
 • • 
 
 to. J? or Lue oaiaries ana Hixpenfies oi tne 
 
 
 Department of the Grovernment 
 
 
 
 v/iiemi8x ...... 
 
 20,633 
 
 • • 
 
 14. j?t^ ine saianes ana exponseii ot tne 
 
 
 
 'Ulvtl iOVJcVllJo I^uIIIIIIIdIOU • • 
 
 55,1M 
 
 • ■ 
 
 lUh for ine Miianeii 'anoi expenses oz tne 
 
 
 ciopantmens oi me 'UoinpiEiiiWf anil 
 
 
 
 iluOliWHjrolieilll. • - • • 
 
 «7,7flO 
 
 3,124 
 
 JiOb. .jm ino ■auani anci ozponses ot tne 
 
 Begislcj 'Of lUeniify Societies • 
 
 
 • • 
 
 17. Wm the salaries^ and expenses of the' 
 
 
 
 Iioeal Government Board 
 
 283,374 
 
 5,580 
 
 18. the salaries and expenses of the 
 
 
 office of the Commissioners in 
 
 
 
 Lunacy in England .... 
 
 19,830 
 
 962' 
 
 19. For the salaries and expenses of the 
 
 
 
 Mint, including the expenses of 
 
 
 
 coinagK>, aiMi far 'llie expenses of the 
 
 
 
 preparation of medals, dies for 
 
 
 
 pontage and other stumps, and His 
 
 
 
 Majesty's simiIi ..... 
 
 
 iii,ooo 
 
 80. lor thi»' sakries and ezpuiaes of the 
 
 
 
 Natiowa Debt Oiloe . . ., 
 
 12,680 
 
 3,177 
 
 GaaxlMl f onravd . 
 
 2*073,853 
 
 573,979 
 
 APPENDIX VI 
 
 Mo. 
 
 Brought forward 
 
 21. For the miianes and expenses of the 
 
 Public Record Office and of the 
 Oftoe of Land Eevenne Beoofds 
 and Inrolments .... 
 
 22. For the salaries and expenses of the 
 
 establishment under the Public 
 Works Loan Commissioners . 
 
 23. For the salaries and expenses of the 
 
 department of the Registrar-General 
 of Births, &c., in England 
 
 24. Fur stationery, printing, paper, bind- 
 
 ing, and printed books for the public 
 service, for the sakries and ex- 
 penses of the Stationery Office, and 
 for sundry miioellaaeoui services, 
 including reports of Parliamentary 
 « Debates ...... 
 
 25. For the salaries and expenses in the 
 
 office of His Majesty's Woods, 
 Forests, and Land Revenues . 
 
 26. For the salaries and expenses of the 
 
 office of the Commissioners of His 
 Majesty's Works and Public Build- 
 
 27. Fbr His Majesty's foreign and other 
 
 seeret services ..... 
 
 28. For the salaries and expenses of the 
 
 office of His Majesty's Secretary for 
 Sootknil and subordinate offices, 
 expenses under the Inebriates Acts, 
 1879 to 1900, and expenses under 
 the Private Legislation Procedure 
 (Scotland) Act, 1899 
 
 29. For the salaries and expenses of the 
 
 Board of Agriculture for Scotland 
 
 30. For the salaries and expenses of the 
 
 Fishery Board for Scotland, and for 
 grants in aid of piers or quays 
 
 31. For the salaries and expenses of the 
 
 Board of Lunacy in Scotknd 
 
 Sums not exceeding 
 
 Oarried f orwivd 
 
 Supply Grants. 
 
 2,073,863 
 
 Appropriatioiii 
 in AM. 
 
 25,320 
 
 34 
 
 60,405 
 
 959,751 
 
 21,380 
 
 136,760 
 50,000 
 
 17,126 
 209,580 
 
 24,428 
 6,123 
 
 3,584,750 
 
 573,979 
 
 11,800 
 
 10,250 
 
 140,000 
 
 2;010 
 6,000 
 
 743,669 
 
i66 THE FINANCIAL 
 
 JfO* 
 
 31 
 
 37» 
 
 39* 
 
 Bkooght forward 
 For tbo lalarieB ind DZfonMi of 
 
 the deimrtnieiit of tlie Bcfiitrar- 
 
 'Cbnenil of Birtlifl, .in ^Soolliiiid . 
 Ibr Hie Mikriiie' ftnd eziwiiies of the 
 
 liOOtil. GbveniiMiil BMid for' Boot- 
 
 Ijuid 
 
 For the sftkdes imd ezfieiiiet of the 
 houflehold of the Lord-IienteiiAiit 
 of Ireland 
 
 For the salaries and expenses of the 
 offices of the Chief Secretary to the 
 Lord - Lieutenant of Ireland, in 
 Dublin and London, and of the 
 Inspectors of Lunatio Asyinms, and 
 ezpoDMNi under the Inebriatei Acts 
 
 For the tiiliiriet mid. ezpensei' off the 
 departinont off agrieulture and 'Other 
 industriefl, and technieal 'inslmotion 
 lor Irehmd, and of the lervicet ad* 
 .niinistered by that department^ in- 
 clnding sundry granta in aid . 
 
 For the salaries and expenses of the 
 office of the Commissioners of 
 Charitable Donations and Be- 
 quests for Ireland .... 
 
 For the Congested Distriots Board 
 for Ireland (Grants-in-Aid) . . 
 
 For the salaries and expenses of the 
 iiooal CkiveiiinieatBoard in Ireland, 
 Ineludiiig aimdry grants :in aid 
 
 For the: salaries and ezpenM' of the 
 Public Baoofd. Offieo' in Ireland and 
 of the Keepr' 'Off Slato .Papen in 
 Dublin > 
 
 For the salaries and expenses of the 
 Office of Public Works in Ireland . 
 
 For the salaries and expenses of the 
 department of the Registrar-General 
 of Births, 4o., and for the expenses 
 of collecting «Biigration statistics in 
 Ireland •«••«.• 
 
 Otorried fforwacd • • 
 
 Boil mil exomdlnf 
 
 Supidy Grants. 
 
 Appropriatioiis 
 in AM. 
 
 £ 
 
 I 
 
 743,559 
 
 8,356 
 
 1,300 
 
 mils 
 
 • .* 
 
 
 • • 
 
 27.2W 
 
 307 
 
 1 1 Oil *»\ A 
 
 
 2,052 
 
 34 
 
 
 » » 
 
 111,088 
 
 13,000 
 
 
 • • 
 
 'i0,909 
 
 3,000 
 
 20,258 
 
 800 
 
 4,130,849 
 
 819,481 
 
 APPENDIX 
 
 VI 
 
 167 
 
 
 Sums not exceeding 
 
 
 Sapply Oiants. 
 
 Appropriationa 
 in Aid. 
 
 Ho* 
 
 Brought forward . 
 43. For the salaries and expenses of the 
 general valuation and boundary 
 survey of Ireland .... 
 
 £ 
 
 4,139,849 
 42,295 
 
 £ 
 
 819,481 
 9,000 
 
 ToTAi. Civil Sievicbs, Class 11. . 
 
 4,182,144 
 
 828,481 
 
i68 THE FINANCIAL SYSTEM 
 
 SCHEDULE (B..)-I?ABi 7 
 
 ;8ciioii>ii'iJB of Sums gnmted, and of the sunui' wlmk wmj bo applied 
 as appropriatioiis in aid in addition tlieroto, to defray tlie 
 cbarges of the seYeml €im SnticiiB himin particularly 
 mentioned, wMch wil come in conne of payment during the 
 
 ywyf^ ending on the: aift day of :ilaKih 1013 ; to. 
 
 Mo, _ 
 1. lor til© nakriiii 'Off th© law fMmm 
 
 departanent, 'the^ lakiMS and ez- 
 
 pennes of the cbparlnent of the 
 
 Solicitor for the affairs of His 
 
 Majflalgf*i Tpeaanry and King's 
 
 Proctor, and the department of 
 
 Director of Public Prosecutions, 
 
 for the costs of prosecutions, of 
 
 other legal proceedings, and of 
 
 ParUamentary Agency . 
 
 1, For oerlain misceUaneous legal ex- 
 pnnseii, includiog grants in aid of the 
 fspenifle of the Incorporated Law 
 So()ifiiiiiaiil'lngland.andIieland . 
 
 X for such of the lalaiifie .and ezpenies 
 of the Snpmme 'Ooorl' off Jndioatnre 
 ;aiid 'Court of Criminal Appeal ai are 
 not oharged. m the^ Coniolidated 
 
 'the 'iaiaries. and ezpenM ef 'the 
 offioe of Land Begietry . 
 
 & Bor the salaries and ezpemes off the 
 ofiee of .Pnbiio Tmitee . 
 
 6b For the .Hilarifla and .eipenaee oon- 
 neoted vith. the County Oonrti . 
 
 'CSbnied fonvaid • • 
 
 Snim wtA mam&tm 
 
 83,812 
 
 110,194 
 
 331^632 
 36,171 
 
 10 
 S 
 
 19,000 
 
 12,731 
 
 51,100 
 
 29,990 
 490,382 
 
 612,773 
 
 VI 
 
 Ho. 
 
 Brought forward . 
 
 7. For the salaries of the Commissioner 
 
 and Assistant Commissioners of the 
 Metropolitan Police, and of the Re- 
 oeiTer for the M etrooolitan Police 
 .District, the oontrthntion 'towards 
 the expenses of the Metropolitan 
 PoEoe, and the salaries and ex- 
 penses of the InsDeotors ol Con- 
 stahulMy 
 
 8. For the expenses of the prisons in 
 
 England, Wales, and the Colonies . 
 
 9. For the salaries and expenses of the 
 
 office of the Inspector of Reforma- 
 tories and for the maintenance of 
 jnvenil© offenders in reformatory, 
 indnstriid. and dav industrial 
 schools and in places of detention 
 under the Children Act, In Oreat 
 Britain •>•••. 
 
 10. For the maintenance of criminal 
 
 lunatics in the Criminal Lunatic 
 Asylums at Broadmoor and Ramp- 
 ton, including the furnishing and 
 equipment of Rampton Asylum . 
 
 11. For the salaries and expenses of the 
 
 Lord Advocate's department and 
 other law charges, and the salaries 
 and expenses of the Courts of Law 
 and tlpstlce in Scotland . 
 
 12. For the salaries and expenses off the 
 
 offioe of the Scottish Land Court . 
 
 13. For the salaries and expenses of the 
 
 offices in His Majest^s General 
 Register House, Edinburgh . 
 
 14. For the salaries and expenses of the 
 
 Prison Commissioners for Scotland, 
 and of the prisons under their con- 
 trol, including the maintenance of 
 criminal lunatics and inmates of the 
 State inebriate reformatory, and 
 the preparation of judicial statistics 
 
 Carried forward • . 
 
 Sima nol exoeedfng 
 
 Supply OnmtB. 
 
 £ 
 
 601,124 
 
 Apptoprlattoiui 
 in AM. 
 
 £ 
 
 612,773 
 
 126,998 
 776,650 
 
 277,474 
 
 83,154 
 
 87,373 
 11,600 
 
 43,966 
 
 101,776 
 
 2,010,015 
 
 25,000 
 
 25,000 
 
 1,216 
 
 49,300 
 
 5,800 
 
 719,166 
 
I TO 
 
 THE FINANCIAL 
 
 SYSTEM 
 
 Brouglit lurwafd. . 
 
 .16. For orimimil proiOMtioiis mill other 
 Iiiw' dtmgm in Inlawi, inulnding a 
 Qmnt in relief of oertain eiqpeiiMg 
 piiyaWe by utiitiite out of looal mtet 
 
 IC For snoli of the MbrjiNi and. ezpenaea 
 of the Snpnniii Conrt of Judicature 
 and of certain other legal depart- 
 ments in Ireland as are not ohaig^ 
 on the Consolidated Fund 
 
 17. For the salaries and expenses of the 
 office of the Irish Land Commission 
 
 IS. For the salaries, allowancea, and ex- 
 penios of varioua comity court 
 oilooni, and of magistrates in 
 Ivdaiidt and the expeniea of re- 
 
 ^ If, tlio Mlariet' and ezpeneea ol the 
 Ckiinnilaaioiier of Police, the^ police 
 courts and the metropolitaii pdico 
 establishment of Dublin • . 
 
 m Wot the expenses of tho Boyal Ifidi 
 Constabulary ..... 
 
 21. For the expenses of the General 
 
 Prisons Board in Ireland, and of the • 
 establishments under their control ; 
 the registration of habitual criminals 
 and the maintenance of criminal 
 luiuitict confined in district lunatic 
 'asyloBMi' 
 
 22. For thc' ^eaipenM. of raf ormatoiy and 
 
 industrial sehoob in Ireland . 
 M. Fbr the maintenance 'Of criminal, 
 .lunatics in the Bundrniii 'Crimiiial 
 liuuiticlaylui, .Inland 
 
 Total. Citol Brnvmrn, Glmb^ ML • 
 
 Sums not ezoeedlac 
 
 Supply Grants. 
 
 2,010,015 
 
 05,410 
 
 ll.Bk.l35 
 616,M7 
 
 111.,. 145 
 
 90,466 
 
 l.,377,S80' 
 
 112,430 
 11I,§12 
 
 7^477 
 
 4iS1.5l|fi. 
 
 Approptitttiona 
 
 .in AMI. 
 
 £ 
 
 719,166 
 
 490 
 
 3^900 
 24,600 
 
 6,200 
 
 56|715 
 35,680 
 
 3,600 
 1.960 
 
 861,101 
 
 APPENDIX VI 
 
 171 
 
 SCHBDULB (B.)— Pabt 8 
 
 Cim SlRVICm— Class .IV 
 
 Schedule of Sums granted, and of the sums which may be applied 
 as appropriations in aid in addition thereto, to defray the 
 charges of the several Civil Services herein particularly 
 mentioned, which will come in cowrse of payment d uHn g tho 
 year ending on the 31st day of March 1913 ; viz. ; — 
 
 1. For the salaries and expenses of the 
 
 Board of Education, and of the 
 various establishments connected 
 therewith, including sundry grants 
 in aid (including a supplementary 
 sum of 15,000/.) .... 
 
 2. For the salaries and other expenses of 
 
 the British Museum, and of the 
 Natural History Museum, including 
 certain giants in aid ... 
 
 3. For the salaries and expenses of the 
 
 National Gallery, and of the 
 National Gallery of British Art, 
 Miibank, including a grant in aid 
 for the purehaee of pictures . 
 
 4. For the salaries and expenses of the 
 
 National Portrait GaOeiy, includ- 
 ing a grant in aid for the purchase 
 
 nf Tifwfvn.i'l'ja 
 
 u& _|iuc'WLiMii'a • . . • s 
 
 6. For the salaries and expenses of the 
 Wallaoe Colleetion .... 
 
 6. For sundry grants in aid of scientific 
 
 invesHgaMon, &c., and other grants 
 
 7. For grants in aid of the expenses of 
 
 oertain Universities and Colleges 
 in Great Britam and of the expenses 
 under the Welsh Intermediate Edu- 
 cation Act, 1889 
 
 Carried forward . 
 
 SmnB not exoeeding 
 
 Snppir QrmlM, 
 
 14,619,766 
 
 Appropfiatiom 
 In AM. 
 
 £ 
 
 10,100 
 
 204,071 
 
 14,445 
 
 6 mot 
 ,:lllfl 
 
 8,511 
 125,523 
 
 314,200 
 
 16,019 
 
 2,600 
 
 660 
 
 15,192,196 1 29,279 
 
172 THE FINANCIAL SYSTEM 
 
 'Ok 
 
 11% 
 'IX* 
 
 12a 
 
 13* 
 
 Brought f orwiMrd 
 For public education in Scothni, and 
 for Science and Art in SootlMiii, in- 
 cluding a grant in aid . . . 
 For the salaries and expenses of the 
 National Gallery, the Scottish 
 National Portrait Gallery, and the 
 Miiseiiiii of Antiquities, including 
 fMrlain puntS' In iiid ... 
 Wm tkn eiKptmrn cif IhO'Cbiniiiiaaioiifiif 
 of Nalliiii*! Eiuotttion in Irelmid, 
 inolmiiiig & gfftnl in nd of the 
 Teaohflni Penaion Fond, Iraknd 
 (including a supplementiiry luin 
 of 10,000/. for ezpeniet nf seholar- 
 ships tenable by pupils froin 
 primary schools in Ireland) . 
 For the expenses of the Office of the 
 Commisrioners for managing certain 
 school endowments in Ireland 
 For mliiries imd expenses of the 
 Niitioniil QftUeiy of Ireland, iaeted- 
 ing ft gmal in aid for the purchase 
 of pietniefl ...... 
 
 For the inlaries and ezpemeS' ^of the 
 Institutiona of Sdence and Art in 
 Dublin, and of the Geological Sur- 
 vey of Imland, and Annual Grants 
 to Schools and Classes of Science 
 and Art and Technical Instruction, 
 including sundry Grants in Aid, 
 administered by the Department 
 of Agriculture and Technical In- 
 struction for Ireland 
 For grants under the Irish Uniyer- 
 •met Act, l'M8' .... 
 
 'ToVAii Ctifii* SaBinoBs, Class I¥. . 
 
 'Bliai mil' «nmm^ptg 
 
 Siiipljr Chaiita. 
 
 2»489,42'5 
 
 A 'ppfOjpflrtflcwiiii 
 In ,j Hi |, 
 
 £ 
 
 20J70' 
 
 6,598 
 
 935 
 
 3,165 
 
 138,591 
 
 150 
 
 1,346^ 
 
 19,706,454 
 
 30,774 
 
 APPENDIX VI 173 
 
 SCHEDULE (B.)--Pabt 9 
 CIVIL SERVICES.— Class V 
 
 ScHSDULi of Sums granted, md of the sums wMcli may be applied 
 •8 appropiatioiis in aid in addition theretti, to defray the 
 charges of the several Civil Sievicis herein particularly 
 mentioned, which will come in course of payment during the 
 year ending on the 31st day of March 1913 ; viz. 
 
 
 BimB motb exoeeding 
 
 Supply GnintiL 
 
 Appropffatiom 
 
 in. AU. 
 
 1. For the ezpensei in connection with 
 
 His Majesty's embassies, missionfl, 
 and consular establishments abroad, 
 and other expenditure chargeable to 
 the Consular Vote .... 
 
 2. For sundry colonial services, including 
 
 certain grants in aid (including a 
 supplementary sum of 503,000Z.) . 
 
 3. For the subsidies to certain Telegraph 
 
 Companies, and a grant in aid of the 
 annual expenses of the Pacific Cable 
 4 For a grant in aid of the Revenue of the 
 Island of Cyprus .... 
 
 Tof AL Civil Sibvicis. Class V. . 
 
 £ 
 
 689,040 
 
 1,363,754 
 
 39,974 
 50,000 
 
 £ 
 
 101,820 
 
 . • 
 36,546 
 
 « • 
 
 2,142,768 
 
 138,366 
 
174 THE FINANCIAL SYSTEM 
 
 cim smviom-CMis '¥1 
 
 SoHiDOLi of Sums gumtecl, «ii of tli« siinm wMcli may b« applied 
 as appropriatioBS k aid in addition thewsto, to defray tlie 
 chargea of tlie neTeral Qmh Simvicass herein particnlarly 
 mentioned, wMcli wil, come in oonrae of 'payment during tie 
 year ending on tie 31st day of litwsli, 1913 ; 'vii. 
 
 1. For tiiperaiiniiation, • oompeiMation, 
 QOimpaiiiionate, mA additioiiAl allow- 
 MMMi, and giratuitiet under eimdry 
 Slatates, for oonpaaaionate allow- 
 iiiifiai and .gratiiiMeS' awarded by tlie 
 Treasury; and lor the salaries of 
 meclioal .referees . 
 
 2* For certain misoelkneous charitable 
 and other aUowanoes, Great Britain 
 
 S. For hospitals and infirmaries and cer- 
 tain miscellaneous charitable and 
 other allowances in Ireland, includ- 
 ing sundry grants in aid . . . 
 
 4 For making good the deficiency on the 
 Income Account of the Fund for 
 Friendly Societies . • . . 
 
 & For Old Age Pensions in the United 
 Kingdonit and for oertain adminis- 
 tniti¥e expenses hi eonneelion 
 'therewitt ...... 
 
 C Wm wmpensation. to 'the Registrar' and 
 Stai at Stationers* Hall on the ahoi- 
 'Mon of the offiee^ of Begistrac . 
 
 TO»AL Civil Skbviom,, Class. VI. . 
 
 Buiiii not ezoeflding 
 
 Bupiiy dniiiti. 
 
 718,20 
 l,i3®^ 
 
 16383 
 
 12,200,000 
 
 13,014,564 
 
 Appropriation 
 
 APPENDIX VI 
 
 175 
 
 SCHEDULE (B.)— Pabt 11 
 
 CIVIL SERVICES.— Class VII 
 
 Schedule of Sums granted, and of the sums which may be applied 
 as appropriations in aid in addition thereto, to defray the 
 charg^ of the several CmL Services herein particularly 
 mentioned, which will come in course of payment during the 
 year ending on the 3l8t day of March 1913 ; viz. : — 
 
 
 Sums not exceeding 
 
 Supply Grants. 
 
 Approprktiont 
 in A M . 
 
 ITo. 
 
 £ 
 
 £ 
 
 1. For the salaries and other eiqienses of 
 
 
 
 temporary commissions, committees, 
 
 
 
 and special inquiries .... 
 
 33,000 
 
 « * 
 
 2. For oertain miscellaneoiis expenses 
 
 13,742 
 
 7,250 
 
 3. For making good oertain sums written 
 
 
 
 off from the assets of the Local Loans 
 
 
 
 
 3,418 
 
 * • 
 
 4. For the Ireland Development Grant 
 
 
 
 
 185,000 
 
 • • 
 
 5. For a grant in aid of the €k>vemment 
 
 
 
 Hospitality Fund .... 
 
 10,000 
 
 
 6. For expenditure in connection with the 
 
 
 
 International Exhibition at Ghent in 
 
 
 
 1913 
 
 30,000 
 
 m « 
 
 7. For the repayment to the Civil Con- 
 
 
 
 tingencies Fund of certain miscellane- 
 
 
 
 
 5,539 
 
 m 
 
 8. For contributions in aid of expenses 
 
 
 
 under the Unemployed Workmen 
 
 
 
 let, 1906 ...... 
 
 100,000 
 
 • • 
 
 Total Civil Sirvicbs, Class VII. . 
 
 380,699 
 
 7,250 
 
IJInii, jRuL, 
 76 
 
 XHF FIMANriAI SYSTFM 
 
 SCMlBUUi (B.)>-Pabt 12 
 
 CWSL BWES,WMM8.'-^(kMMM ¥111 
 
 UUi of Sums granted, and of the sums which may be applied 
 appropriations in aid in addition thereto, to defray the 
 charges of the several Civil Services herein particularly 
 mentioned, which will come in course of payment during the 
 y«Mf ending on the 31st day of March 1913 ; viz. 
 
 1. For the salmiif oipeiises of the 
 
 national Heallli Insuraiiee Joint 
 CSommittee 
 
 2. Fkir the salaries and expenses of the In- 
 
 siiranoe Commission (England), for 
 contributions under Part I. of the 
 Mational Insurance Act, 1911, and 
 for grants in aid of expenditure in- 
 euired out of the NaMoiml Mealth 
 .insuMUDe' Jfnnn m wtpwn of Deneiiiis 
 ,■ 11^^ wpeniet' of' adninislfation 
 iinilflr' liiiil Part of that Act. {ineliid- 
 iiM ocfftaiii special gfaiits tovarcls 
 iw mmrnrn^. ^mumm (3om- 
 mitlees) (including a mppleiiwiitaij 
 sum of 42,5001.) 
 
 B. For the ealaiies and expenses of the In- 
 surance Commission (Wales), for 
 contributions under Part I. of the 
 Hational Insurance Act, 1911, and for 
 grants in aid of expenditure incurred 
 out of the Welsh National Health 
 Insurance Fund in reflect of benefits 
 and expenses of admitiitnilion under 
 that Birt of that Act (including cer- 
 tain iiMwial grants, toiwanli' tlie ex- 
 of InsiifMim Ooimiiittees) 
 Indlng' ft nifjpleiiieiilarj .siuii. of 
 ■) • • • • • ■ 
 
 Sums not exceeding 
 
 Biiply flfimts. 
 
 AppropxiatioiiB 
 
 lit JkML 
 
 'CanMI. forwaid 
 
 I ■mam hok 
 
 APPENDIX 
 
 VI 
 
 Ho* 
 
 Brought forward . 
 
 4. For the salaries and expenses of the 
 
 Insurance Commission (Scotland), 
 for contributions under Part I. of the 
 National Insmrance Act^ 1911, and 
 for grants in aid of expenditm^e in- 
 ciizred out of the Scottish National 
 Bealth Insurance Fund in respect of 
 benefits and of expenses of adminis- 
 tration under that Part of that Act 
 (including certain special grants to- 
 wards the expenses of Insurance 
 Committees) (including a supple- 
 mentary sum of 10,000L) . 
 
 5. For the salaries and expenses of the 
 
 Insurance Commission (Ireland), for 
 oontribuMoas under Part I. of the 
 National Insurance Act, 1911, and 
 for grants in aid of expenditure in- 
 curred out of the Irish National 
 Health Insurance Fund in respect of 
 beneitB and of expenses of admini- 
 stration under that Part of that Act 
 (Including certain special grants to- 
 wards the expenses of Insurance 
 Committees) (including a supple- 
 mentary sum of 18,100^.) . 
 
 6. For the salaries of the staff and other 
 
 expenses of Labour Exchanges, in- 
 cluding the contribution to the Un- 
 employment Insurance Fund . 
 
 7. For the salaries and expenses of the 
 
 Audit staff under Part I. of the 
 National Insurance Act, 1911 . 
 
 8. For grants to Friendly Societies, &c., 
 
 in aid of the expenses of preparing 
 schemes under section 72 of the 
 National Insnranoe Act, 1911 . 
 
 ToxAL CkviL Sebyicibs, Class VIII. . 
 
 Sums mot ezceecliiig 
 
 Supply Giants. 
 
 1,727,226 
 
 244,510 
 
 168,140 
 
 804,037 
 
 51,737 
 
 47,000 
 
 3,042,669 
 
 Appropriations 
 
 202,500 
 
 202,500 
 
178 THE FINANCIAL SYSTEM 
 
 8GHEDULE (B.V— Pabt 13 
 
 BIVEOTJE Di^ABTMlNTS, Aa 
 
 Schedule of Sums granted, and of tlie sums which may be Applied 
 as appropriations in aid in addition thereto, to defray the 
 charges of the several Revenue Departments, Ac, herein 
 particularly mentioned, which will come in course of payment 
 during the year eniiiig on the Slst day of March 1913; viz. 
 
 .Mo. 
 
 1. For the salaries and expenses of the 
 
 Customs and Excise Department . 
 
 2. For the salaries and expenses of the 
 
 Inland Revenue Department . 
 For the salaries and expenses of the 
 Post Officse, including Telegraphs and 
 Telephi 
 
 'TmMs Bavanin. Ditaiitiisiits 
 
 Siiiiii not ezoeediiit 
 
 fli 
 
 Omits. 
 
 £ 
 
 2,357.900 
 1,896,830 
 
 23,808,900 
 
 28,062,680 
 
 Approprliittas 
 
 m 
 
 93,770 
 10,000 
 
 631,193 
 
 734,963 
 
 APPENDIX VI 
 
 179 
 
 SCHEDULE (0.) 
 
 FAVT SlEVICES, 1910-11. 
 VOTBS. 
 
 Wages, &c., of officers, sea- 
 men, and boys, Coast- 
 guard, and Royal Marines 
 
 Victualling and clothing for 
 the Navy .... 
 
 Medical establishments and 
 sendees .... 
 
 Martial law .... 
 
 Educational servioes . 
 
 Scientific services . 
 
 Royal Naval Reserves 
 
 Shipbuilding, repairs, main- 
 tenance, &o. : 
 I. Personnel . 
 II. Materiel . 
 III. Contract work 
 
 Naval armaments 
 
 Works, buildings, and re- 
 pairs, at home and abroad 
 
 MisceUaneoufl eiiective ser- 
 
 Yiinni • « • • • 
 
 Admiralty Office . 
 
 Hall-pay and retired pay . 
 
 Naval and marine pensions, 
 gratuities, and compas- 
 sionate allowances . 
 
 Civil superannuation, com- 
 pensation allowances, and 
 gratuities .... 
 
 Amount written off as irre- 
 coverable .... 
 
 Total 
 Add Excess Vote . 
 
 Net Surplus 
 
 Surplttses. 
 
 £ f. eL 
 
 31,281 10 11 
 
 1,766 6 1 
 6,486 4 1 
 
 6,858 5 5 
 139,306 5 8 
 99,824 17 8 
 
 17,735 19 7 
 
 8,528 3 9 
 
 14,292 4 2 
 
 337,724 12 11 
 100 0 0 
 
 337,824 12 11 
 
 Deficits made good 
 from Surplufles. 
 
 £' <• dm 
 
 18,204 15 6 
 
 1,080 15 4 
 9,597 12 6 
 
 36,512 7 6 
 
 18,260 14 9 
 
 63,486 6 2 
 
 4,946 13 0 
 
 1,272 6 1 
 
 153,360 10 10 
 
 153,360 10 10 
 
 £184,464 2 1 
 
i8o THE FINANCIAL SYSTEM 
 
 SCHEDULE (0.) 
 
 Mo. of 
 
 .Ainr Brnncm, ioif>-ii. 
 
 81119I11ML 
 
 DeflcitB mftde food 
 
 Vote. 
 
 ¥0fl8. 
 
 f nun Sufiliuii. 
 
 
 
 
 
 1 
 
 Pay, of the Army. 
 
 10, 628 18 8 
 
 
 z 
 
 Medical eatiiblialiiiieiit : Pay. 
 ftc* • • • • • 
 
 4.il5 17 10 
 
 
 
 • f f-» 
 
 Special Reiorves . 
 
 Territorial Force . 
 
 Jim di 0 
 
 wm$m 8 11 
 
 
 B 
 
 Establishmenta for military 
 education . • . . 
 
 2^080 1 » 
 
 * * 
 
 0 
 
 Quartedng, twnsiKirt,. and 
 
 
 
 
 mnoimts .... 
 
 12, > 111 0 i. 
 
 
 w 
 
 8 
 
 SuuDlieB and ololliiiifc . 
 
 OrdnamMi' departmeitl estab- 
 liiiiiients and gemml 
 stoiMi • . • • . 
 
 « . 
 
 98,236 4 8 
 
 i 
 
 Irmamente and angiaiMr 
 stores , • . • • 
 
 68,670 11 11 
 
 * • 
 
 10 
 
 Works and buildings . 
 
 
 
 
 Miacellaneous effective ior- 
 inces . . • • • 
 
 6,190 7 8 
 
 • • 
 
 IS 
 in 
 
 War Oflace .... 
 Non-effective ohargea foe 
 officers, &o. . • 
 
 3,602 1 0 
 8^1 2 8 
 
 m m 
 
 14 
 
 Mon-efieotiTO ohaxgm lor 
 BMn, All. ... . 
 
 • . 
 
 3,231 10 2 
 
 IK 
 
 €M ■apflcanmialiin* oob- 
 |Mnialioii,.«iid.fr»tiiitiot . 
 
 BaljuiMi' iammmMB aad 
 oittina^ alMiidfiiid. . 
 
 2»0i0 18 11 
 • . 
 
 • • 
 
 3,779 16 7 
 
 
 Total. • • . 
 
 329,734 19 10 
 
 119,126 8 8 
 
 
 
 
 
 APPENDIX VIP 
 
 fOBMS AUTHOmSmO AMB ORAHTIHa OBEBITS ANB 
 
 exghbqueb issues 
 Form No. 1 
 
 Tebasuby Requisition authorising Credits for Consolidated 
 
 Fund Services 
 
 Consolidated Fund Services 
 
 Quarter to 19. .. 
 
 By virtue of the Exchequer and Audit Departments Act, 1866 
 (29 & 30 ¥ict. c. 39, s. 18) : We authorise and require you to grant 
 to the Lords Commissioners of His Majesty's Treasury for the 
 time being on account of the charge of the ConsoEdated Fund for 
 
 the Quarter ended 19.. , remaining unpaid at that 
 
 date, Credits on the Accounts of Sis Majesty's Snhequer at the 
 Bank of England and Bank of Ireland, or on the growing Balances 
 thereof, for the following sums, viz. :— 
 
 At the Bank of England . . . £ 
 At the Bank of Irdand . . . £ 
 
 To U mgmd % Two Lords 0/ 1 
 
 Tremwy, 
 
 Treasury Chambers, Whitehai,\ 
 19... / 
 
 To the ComptEoller and Auditor General. 
 
 1 The foniis, arranged in a different order, are to be found in Anson, 
 Lam and Omabum 0/ the CmdUuium, 4th ed., voL i pp. 316-322. 
 
 181 M 
 
i82 THE FINANCIAL SYSTEM 
 
 FoKM No . 3 
 
 dtiuif of CsBBiT by tie GomftboIiLIB and Auditqb Genxbal 
 
 payable out of the Consomdatkd Fumd 
 
 Cbidw fob Cohsoubatib Fuiro BmmmB 
 
 Quactof to. • ' • . . .19 . . . 
 
 By virtue of tlifl Exchequer and Audit Departments Act, 1866 
 (29 4 30 Vkt. c. 39, s. 13), and of a requisition from tbe Lords 
 Commissioners of His Majesty's Treasury, antborising the same : 
 I hereby grant a Credit to the Lords Commissioners of His Majesty's 
 Treasnry for the time being, on the aeoonnt of His Majesty's 
 Ixoheqner at the Bank of ........... or on the growing Balance 
 
 thereof, to the amount of on account of the 
 
 ©barge of the Consolidated Fund in Great Britain (or Ireland, at 
 
 tit mm wmtf he), for the (Quarter ended. • .19. 
 
 ;rem«iiiing: unpaid at that date. 
 
 Iwhequer and Audit Department,! 
 
 19 I 
 
 Cbmptroier and Auditor General. 
 
 To the GoTemor and: Companyl 
 of the Bank of / 
 
 F^BM. No. 3 
 
 ^Tbiasuby BmniSEnoN authorising Cbibits for Coksombaimb 
 FiwB SiBVicas, payabte out of the GBOiraio tBOBUca 
 
 COMIOUDAMB fUMB SlBWCJiHi. 
 
 GBOwmo Frnwrnm 
 
 By virtue of the Exchequer and Audit Departments Act, 1866 
 (29 k 30 Vict. c. 39, s. 13) : We authorise and require you to grant 
 to the Lords CJommissioners of His Majesty's Treasury for the 
 time being, a Credit on the Account of His Majesty's Exchequer 
 
 at the Bank of for the sum of £ , to 
 
 provide for Issues leqiiiei for the following Services, payable out 
 
 APPENDIX VII 
 
 183 
 
 of the Growing Produce of the Consolidated Fund, in the current 
 Quarter ending 19.. 
 
 Service. 
 
 Act. 
 
 Ammut. 
 
 
 
 
 2*0 he mgmd hy Two Lords of the 
 Tfeamty, 
 
 Treasury Chambers, Whitehall,! 
 
 To the Comptroie? and Auditor General. 
 
 FoBM Mo. 4 
 
 Gbaht of Cbbbit by the Coiiftbolleb and Auditob Gknbbal 
 for S1BVIOE8 payable out of the GBOWiiia Pboducb of the 
 Comsombatbb Funb 
 
 Cbedit fob Consolidatkd Fund Sbbvicbs 
 
 GBOwma Fboducb 
 
 By virtue of the Exchequer and Audit Departments Act, 1866 
 (29 & 30 Vict. c. 39, s. 13), and of a Requisition from the Lords 
 Commissioners of His Majesty's Treasury, authorising the same : 
 I hereby grant a Credit to the Lords Commissioners of His 
 Majesty's Treasury for the time being, on the Account of His 
 Majesty's Exchequer at the Bank of or on the grow- 
 ing Balance thereof, to the Amount of to provide 
 
 for Services payable out of the Growing Produce of the Con- 
 solidated Fund in Great Britain (or Ireland, as the case may he) in 
 the current Quarter ending 19 . . . 
 
 Exchequer and Audit Department,! ..... ........ . . 
 
 ComptroEer and Auditor Gteneral. 
 
 To the Governor and Company \ 
 of the Banlc of •■••*«..... j 
 
i84 THE FINANCIAL SYSTEM 
 
 TuuBUBT Qmm for Iflsiies from tlie ExohbquiBi Ammm 
 lor CoMsoiiiBikTiB Wwm SHIITICIS 
 
 CbMSOMBATIB' FUMB Bl]E¥ICSS> 
 
 Qniirter to. 19. .. 
 
 dimuiiiif, 
 
 JJnim the ftuthoiity <il llie Hnliiqiier mid Audit Depart- 
 meiili Jiltt lMi (29 & 30 ¥ict. c. 39, s. 13)^ mA of the Ciedit granted 
 to Hi liofds CbiDiiiiarioiiers of Hia Majesty's Treasury^ by the 
 Comptroller and Auditor Qenend on lBk$ Aooouut of His Majesty's 
 
 Bxelieqiter at the Bank of. , under the provisionB of 
 
 the' said Aet^ : I am Mmauded hw 'the Loids CononiafioiiBES of 
 His Majeatye to req»J that you will t»«I« the 
 
 followiiig. ifuoii, m the' . . mfltan% from, 'tike' itid AMOont to the 
 Supply Account " of [His Majest/s Paymaster Cksneral i] in 
 your books, on account ol the charge of the ConsoHdated Fund in 
 [Great Britain *] for the aboYe-mentioned Quarter. 
 
 Bervko. 
 
 Amount. 
 
 4fa 
 
 da 
 
 I am to request that when these sums have been transferred 
 will tranamit this authority to the ComptroUer 
 
 and Auditor General. 
 
 lam, Asc. 
 
 To he signed by one of the\ 
 Seoreitmee of me TmuwifJ 
 
 To the Governor and Company! 
 of the Bank ol. i 
 
 ^ for of such olliflr PiiiifiiiMl Anomiiittiitt m tlM mm mmw i«qiiii«.1 
 
 APPENDIX VII 185 
 
 FoBii No. 6 
 
 Royal Order for Public Supply Services 
 (For His Majesty's Eoyal Sign Manual) 
 
 !B0YAL. 'Qbdbe 
 
 Supply Services 
 
 Whereas the several sums mentioned in the Schedule hereunto 
 annexed have been granted to Us (by Act, or by Resolution of the 
 House of Commons, as the case may ht) to defray the expenses of 
 the Public Supply Services therein specified, which will come in 
 course of payment in the year ending the 31st March 19. . : OuB 
 wiM. AMB PLEASX7BE is, that you do, from time to time, authorise 
 the Governor and Company of the Bank of England^ or the 
 Governor and Company of the Bank of Ireland, to issue or teansfer 
 from the Account of our Exchequer at the said Banks to the 
 Accounts of the persons charged with the payment of the said 
 Services, such sums as may be required, from time to time^ lor the 
 payment of the same, not exceeding the amounts respectively 
 stated in the said annexed Schedule. 
 
 Provided that such issues or transfers shaU be made out ol the 
 Credits granted or to be granted to you, from time to time, on the 
 Account of Our Exchequer at the said Banks, by the Comptroller 
 and Auditor General, under the authority of the Exchequer and 
 Audit Departments Act, 1866 (29 & 30 Vict. c. 39, s. 15), and shall 
 not exceed in the whole the amount of the Credits so granted out 
 ol the Ways and Means appropriated by Parliament to the Service 
 of the said year. 
 
 Given at Our Court at this . day 
 
 ol 19. .. 
 
 Bv His Mftiestv*s Command. 
 
 To he countersigned hy Two 
 Lords of the Treasury, 
 
 To the Commissioners of Our Treasury. 
 
 Schedule. 
 
 Supply Service for which Valued or Granted. 
 
 Amoimfc. 
 
 £ t. 'd. 
 
i8§ THE FINANCIAL SYSTEM 
 
 f OBM No* 7 
 
 TiHASURY BujuisiTioN authorising Cbbdits for Supply 
 
 Services 
 
 BmnY Bmmmm 
 
 By virtee <»f tlia Bzfjli®4|iier ani Audit Departments Act, 1866 
 (W 4 30 Vict. c. d&, a. 15) We autlioiifle and lequiie you to grant 
 to tlie Loiii ConuianoiieEa of lis Majesty's Treasury for the 
 time ieiiig, on account of 'tlie Ways and Means granted for the 
 senrice of the year ending Slst March 19 . . , Credit on the Account 
 of His Mftjest/s lichei|iMr at the Bank of En|^d and Bank of 
 Ireland, or' on the gfwing 'Balances thereof, for 'the following' 
 ■sums; nil.:— ^ 
 
 At the Bank of England . . . £ 
 At the Bank of Ireland . . . £ 
 
 ^Duasury Chambers, Whitehall,! 
 
 • a a . 1'0 a a a / 
 
 r0 It mgfwd hi Two Lords 1 
 o/ li« Trmmty, ( 
 
 \....aa«aaaaaaa»aaa»a«,,. 
 
 To the Comptroler and Auditor General. 
 
 FoBM No. 8 
 
 Geamt of Cmmt iy the COmftroller and Auditor Gehihai. 
 
 for Supply Services 
 
 ^immx mm Suielt Snincsis 
 
 Year Ma. . 
 
 By virtue of the Exchequer and Audit Departments Act, 1866 
 (» k 30 ¥ict. Ca 39, Sa 15), and of a Requisition from the Lords 
 Commissioners of His Majesty's Treasury authorising the same : 
 I hereby grant a Credit to the Lords Commissioners of Bis 
 Majesty's Treasury for the time being, on the Account of His 
 
 Majesty's Exchequer at the Bank of , or on the 
 
 giowiug Balance theieof, to the Amount of 
 
 APPENDIX VII 187 
 
 on account of the Ways and Means granted for the Service of the 
 year endii^ 31st March 19. .. 
 
 Exchequer and Audit Department, 1 
 19... / 
 
 Comptroller and Auditor General. 
 
 To the Governor and Company oi\ 
 the ^Bank of ..••.••...»•'• # 
 
 Form No. 9 
 
 Treasury Order for Issues from the Exchequer Account 
 
 for Supply Services 
 
 SumiY Sbrvicbs 
 
 Year 19... 
 
 Treasury, Whitehall, 
 
 Gentlemen, 
 
 Under the authority of the Exchequer and Audit Depart- 
 ments Act, 1866 (29 & 30 Vict. c. 39,s.l5), and of the Credit granted 
 to the Lords Commissioners of His Majesty's Treasury, by the 
 Comptroller and Auditor General, on the Account of His Majesty's 
 
 Exchequer at the Bank of , under the provisions of 
 
 the said Act : I am commanded by the Lords Commissioners of 
 His Majesty's Treasury to request that you will transfer the 
 
 following sums, on the ...instant, from the said 
 
 Account to the " Supply Account " of [His Majesty's Paymaster 
 General in your books, on account of the Supply Services under- 
 
 mentioned : — 
 
 * 
 
 Supply Services. 
 
 Amount. 
 
 
 9m tlm 
 
 I [or of Buoh other Prmoipal Aooomitaiits as the oaae may lequiie.] 
 
i88 THE FINANCIAL SYSTEM 
 
 I am to wsqiiwt that when thM sums ihAH hav© been trans- 
 fened accordingly, you wil tranemit tlig authority to the 
 'Cbaif tcollex and. Aiiditof General 
 
 I aMj IciS'. 
 
 To he signed % one 0/ tie\ 
 
 To the Governor and ■Connmny of the 
 
 jP "jSt Jljj d 1 ^ikk ^ 
 
 tElASTOY MINUia OF 31ST MAY 1889 BSLATINO TO 
 
 TuBASTOY MnroTB, dated 31st May 1889, prescribing Regula- 
 tions relating to the Preparation, Issue, and Cancellation 
 of Treasury Bills, under the Acts 40 Vict. c. 2, and 52 
 Vict. c. 6. 
 
 The Chancellor of the Exchequer calls the attention of the 
 Board to section 5 of the National Debt Act, 1889 (52 Vict, 
 c. 6), which provides that after the passing of that Act 
 " Treasury Bills shall bear the name of one of the Secretaries 
 " for the time being to the Treasury, and that name may be 
 "impressed or affixed by machinery or otherwise in such 
 "mmmer as the Commissioners of Her Majesty's Treasury 
 " from time to time direct by regulations to be laid before 
 " both Houses of Parliament." 
 
 These Bills, as the Board is aware, have, in accordance with 
 the Treasury Bills Act, 1877 (40 Vict. c. 2, s. 8), been hitherto 
 signed by the Comptroller and Auditor General, his signature 
 being (pursuant to the regulations laid down in the Tzeasniy 
 Minute of the 16th March 1877) " affixed in the presence of 
 "such public officer or other person as the Treasury may 
 " from time to time approve." 
 
 Treasury Bills being often very numerous, the prescribed 
 signature and counter-signature have been usually affixed 
 to the Bills by a stamp ; and representations have reached 
 the Chancellor of the Exchequer that this mode of signature 
 is not wholly free from risk, and might therefore detract from 
 the negotiable value of the security. Accordingly, it was 
 
 * House of Commons Paper 187 of 1889. 
 
 189 
 
inft THF FINANriAl cvcTKM 
 
 deemed advisable to dispense with these signattues, snd to 
 sabstitate in lieu thereof a name engraved on the Bills in the 
 same way as the name of the Chief Cashier of the Bank of 
 Sugla&d is engraved on Bank of England notes. As the 
 iTeasuiy u lesponnoie lor wb paymenii 01 ireasuy uius, 
 the Chaioeior of the Ixoheqiier proposed that the name so 
 engraved should, he the name of the Pexmanen't' SeocetaKy to 
 the Board. 
 
 He points ont that this proposal does not weaken the 
 foroe of the existing eonstitntiiZl safeguard against the 
 issue of Bills in excess of Birliamentaiy powers, that safeguard 
 heinS' the reauiiement in. the Treasurr BUb Aot. 1877 (section 
 u|, inat' niiis ^aie omj m m wmmi oy tm Msmm 01 jiinguum 
 ** under 'tho^ authofitv of a Wanant :from the Treasnrv cownier- 
 
 ParEamont having given legislative sanction to the Chan- 
 Oiilir of the Exchequer's proposal, he invites the Board to 
 'amend the i^gulatioBt ^laid down in the Treasury Minute of 
 'the 16th llaroh 1877 m this .nspecl, and likawiae oertain. 
 otto nspaetB. 
 
 They hereby rescind the existing regulations ; and they 
 proceed to lay down in lieu thereof the following regulations 
 in pursuance of the powers conferred upon them by section 9 
 'Of 'the Treasury Bills Act^ 1877,- and section 5 of the Mational 
 Debt Act, 1889, 'viz. : — 
 
 I. Whenever it is required, to exercise the powers conferred 
 by the Treasury Bils Act, 1877 (40 Vict. 0. 2), the Treasury 
 "Will .issue Treasury Bills in one of the following ways, or partly 
 in one way and partly in another way. 
 
 A. The Treasury may invite tenders for Treasury Bills. 
 (1.) Motice that such tenders will be received at the 
 office 'Ol the Chief' Cashier of the Bank of England 
 on a given day shall be published in the Lmdm 
 Gmdie not less than five dear days bef oro the 
 date on which tenders aro to be delivered, and 
 shall specify the period (not exceeding 12 
 months) for which, and the terms and conditions 
 subject to which, the Bills are to be issued. 
 
 APPENDIX VIII 191 
 
 (2.) The principal of such Bills shall be repaid at the 
 
 date mentioned in each Bill. 
 (3.) The Treasury will from time to time instruct the 
 Bank of England as to the form in which the 
 tenders are to be made, and as to any other 
 necessary proceedings in relation thereto. 
 (4.) The Treasury reserves to itself the right of refusing 
 
 tenders, if it should think proper to do so. 
 (5.) The tenders for Treasury Bills shall be opened 
 at the Bank of England in the presence of such 
 person or persons as the Treasury shall from 
 time to time direct. 
 B. The Treasury may also issue Treasury Bills with a 
 fixed rate of interest to tiie (Commissioners for the Reduction 
 of the National Debt, or to such other person or persons as 
 may be willing to buy the same. 
 
 (1.) The rate of interest of the Bills so issued shall be 
 
 fixed by the Treasury. 
 (2.) The Gunency of the Bills shai be for any period 
 
 not exceeding 12 months. 
 (3.) The principal of such Bills shaU be repaid at the 
 date mentioned in each Bill. 
 II. The name of the Permanent Secretary for the time 
 being to the Treasury will be engraved on Treasury Bills, 
 which will be printed on a special description of paper to be 
 previously approved by the Treasury, and will be numbered 
 in arithmetical order throughout each financial year, com- 
 mencing with new numbers in each year. 
 
 m. The Treasury will from time to time give directions 
 to the Bank of England for the preparation, in the Form A. 
 hereto annexed, of such Treasury Bills as are required. 
 
 IV. When any tender or tenders for Treasury Bills have 
 been accepted by the Treasury, or when the National Debt 
 Commissioners or other person or persons shaU have signified 
 thek wilMngness to buy Treasury Bills carrying a fixed rate 
 of interest, a Treasury Warrant, drawn in the terms of one 
 of the Forms B. or C. annexed to these regulations, will be 
 transmitted for the counter-signature of the Comptroller and 
 Auditor GloneEal, authorising the Bank of England to pEcpare 
 
I02 THE FINANCIAL SYSTEM 
 
 null 188110 sugIi nimilier of Treasii^ Bill, mid for audi amoiints, 
 as am ipeoified in the Warrant. 
 
 ¥• ThB Bills when ready for issue will, upon the receipt 
 of the suns therein spedied, be deliwad hj the Bank o£ 
 iQglandy under the aitthfxiitf €i the Ttnuuij Warrant, to 
 the order of the person or persons entitled thereto. 
 
 ¥1. The amount leoeiTed hj the Bank for Treasury Bills 
 sold wil he carried to the account of Her Majesty's £xche<][uer, 
 as provided by the fifth section of the said Act. 
 
 ¥11. When the consideration allowed for the money 
 advanced on Treasury Bills takes the form of interest prepaid, 
 it wil be necessary to make proioaion for showing in. "the^ 
 public accounts the amount of such consideration. Accord- 
 ingly, the Treasury 'wil direct 'the ;issue 'to the Bank' of England 
 from the Exchequer of the amount of the prepaid interest, 
 which will be paid by the Bank to the Exchequer account, 
 Hither with the sums actually received for the Bills, thereby 
 rendering the amount paid to the Exchequer, and thus brought 
 to aecount as money raised, equal to the nominal amount of 
 
 rill 
 
 the Bils. 
 
 "VJOt.]t. The prmcipal sums of Treasury Bills will be payable 
 at the Bank of England on the dates specified in tie Bills, 
 without grace, and the discharge for the payment of such 
 Bills shall be an acknowledgment of receipt, to be given on 
 the huk of the Bill, or on a schedule of the numbers and 
 amounAi of the Bilb. 
 
 I^^. h f^ n '[Freasury " Bi ll s have been paid o^E by the "Ra^k 
 of Bnghud they 'will be^ 'CanceUed m such manner 'as ^may be 
 determined upon by the Governor and Deputy Governor of 
 the Bank, and the Treasury will from time to time, upon an 
 application from the Bank, direct cancelled Treasury Bills 
 to be destroyed, and the Chief CSashier of the Bank shall certify 
 'to the Treasury the partieuliirs of the Treasury Bills^ so 
 eeiroyea,. 
 
 X. When, upon any representation made by any holder 
 of a Treasury Bill, the Treasury has reason to believe that a 
 BiU has been lost, destroyed, or defaced, the Treasury will 
 cause a Warrant to be prepared authorising the issue of a 
 duplicate' of such Bill, ^and will give directions for the^ delivery 
 
 APPENDIX VIII 
 
 193 
 
 of such duplicate Bii to the person or persons applying for 
 the same, upon the execution by them of the usual bond of 
 indemnity. 
 
 Transmit copies of this Minute to the Comptroller and 
 Auditor General to the National Debt Commissioners, and to 
 the Governor and Deputy Governor of the Bank of England,' 
 for their information. 
 
 Let copies of these reguktions be laid before both Houses 
 of Parliament, in accordance with the directions contained 
 in section 9 of the Treasury Bills Act, 1877 (40 Vict. c. 2), and 
 in section 5 of the National Debt Act, 1889 (52 Vict. c. 6). 
 
 Slst May 1889. 
 
 Form A 
 Tbbasuey Bill 
 (A) 
 
 Per Acta 40 Vict. c. 2, and 52 Vict. c. 6 
 Due 
 
 A. 0000. 1. A. 0000. 1. 
 
 £ 
 
 London^ ................ 
 
 This Treasury Bill entitles ^ or 
 
 order to payment of , pounds at the 
 
 Bank of England out of the Consohdated Eund of the United 
 
 «^IIKjUD>|^dO]!Ul' OJDl IflXO «" w «' lH' # w * • m • m 
 
 Secretary to Her Majesty's Treasury. 
 
 FoBic B 
 
 Form of Treasury Warrant authorising the preparation of 
 Treasury Bills and the issue of them to Persons whose tenders 
 for the same have been accepted. 
 
 By virtue of the Treasury Bills Act, 1877 (40 Vict. c. 2), and 
 National Debt Act, 1889 (52 Vict. c. 6), you are hereby authorised 
 
 > If thwblankboaotMed!ii.th« BiUwffl l»p«Mto^l^^ 
 
194 THE FINANCIAL SYSTEM 
 
 to pnpK, in mwoiditiiw witii tlie provisions of the said Acts and 
 til Mgnlatiuna for giying effect to the same prescribed by the 
 'hmia Coinmissioners of Her Majesty's Treasury, Treasury Bills • 
 far llii total sum of .pounds^ as follows^ 
 
 , Bills for £ each. 
 
 Bills for £ each. 
 
 fit mid Treasury Bills are to bear date the ...... « diiy 
 
 of .18. and are to be payable at 
 
 months alter date, that is to say, on the day 
 
 of 18. . ; and they are to be issued and delivered 
 
 to such person or persons as shall be signiied in the directions of 
 the Lords Commissioners of Her Majes^'s Treasury, upon pay- 
 ment to you, for the account of Her Majesty's Exchequer, of the 
 Slims due in respect of the said Bills. 
 
 Treasury Chambers, Whitehall, 
 
 (Oouiiter-signiitiiie) 
 
 ■ ••••••*••>••••• • • • . • • • ■ • • 
 
 CbmptEoier and, Auditor Oeneial. . ..... 
 
 Oomn^anerB of H.M. T««„7. 
 
 To the Ck)¥ernor and Company of the 
 " Pfip lr of jEinidand. 
 
 y^Bil of Tbeasusit Warrant authorising the preparation of 
 fieasury Bills lli the issue of them to the Commissioners for 
 the Bednction of the National Debt or to persons who have 
 iKKIglit Bills canfiil a fixed rate of interest. 
 
 By virtue of the Treasury Bills Act, 1877 (40 Vict. c. 2), and 
 National Debt Act, 1889 (52 Vict. c. 6), you are hereby authorised 
 to prepare, in accordance with the provisions of the said Acts, and 
 the regulations for giving effect to the same prescribed by the 
 Lords Commissioners of Her Majesty's Treasury, Treasury Bills 
 lor the total sum of pounds, as following, viz. i — 
 
 • Bills for £• eaoh«' 
 
 • •••**••*... Bills for £. eaoha 
 
 flm mSA fieiisiiiy ^BillS' are to bear date the .... .day of 
 
 18. ., 1^ »e to be paytU. at day. (or 
 
 •lajiiffitlw) sHir 'ifttOi tiiat is to Mjp on the , , , ^^ . y of 
 
 APPENDIX VIII 
 
 195 
 
 18. and they are to be issued and detivered to the 
 
 Commissiouers for the Beduction of the National Debt, [or such 
 person 01 persons as shai be signified in the directions of the Lords 
 Commissioners of Her Majesty's Treasury], upon payment to you, 
 for the account of Her Majesty's Exchequer, of the sums due in 
 lespeot of the said Bills. 
 
 Treasury Chambers, 
 
 ..*... 18. . 
 
 (Counter-signature.) Commissioners of H.M. Treasury. 
 
 Comptroller and Auditor (General, 
 
 To the Governor and Company of the 
 Bank of England. 
 
A "PT^WMTITir lie 
 
 4Mi'ijBi <mmt ^^(■••(fcT|t,' 'twill^ ■•■■•■'•••iBil' ii(B»dHlpi^fc 
 
 ■aCOBWIllBR BOMD 
 IXOHBQUBR BOHB 
 
 (Witli two Cbiinlarloils) 
 P«r Acti » Vict. c. 25, 52 Vict. c. 6, and 
 
 THIS BO'MD mMm tlM BeMtet U receive tlie Sum of 
 
 0B. tbe. , togellier wiili Intemt tlMieoii, imm. 
 
 J at tlie late of ■ .per cent peat ■tnjnuii, 
 
 payable Quarterly on the. ,,..md , on 
 
 pmeatation. of tlie Ooupona Imeunto anneidl 
 
 Tiie Principal and Intererti of tMi Bond are oliaigeaMe on tEe 
 ^Cionioldated fund of tlit 'United Kingdom, pumuant to tlie Act 
 
 Secretary to^ His .liajeety's Treaeury. 
 
 Iiondiin|... 19 .. > 
 
 Wmm m Coufoh . 
 
 'BXCHBQUBB BOIB' UTEBEST 'OOUfOM. 
 Per Ada 29 Ftd. c M WieL & 6, mid 
 
 Wm ...PouNns. 00000 
 
 (LeaS' 'Income Tax.) 
 
 Being Throe Months* Hviiiend on POunda. 
 
 Due •••• 
 
 Wawmmim at rm Mmm m MMmMm, 
 
 196 
 
 APPENDIX X 
 
 NATIONAL DEBT (SINKING FUND) ACT, 1875.1 
 
 ■ i i l i ft j' l i Jti illilw iMAM 
 
 An Am to amend the Law with respect to the Reduction of 
 the Hattonal Debt and the Charge for the National Debt 
 in the Consolidated Fund. [2nd August 1875.] 
 
 Bi it enacted by the Queen's most Excellent Majesty, by and 
 with the advice and consent of the Lords Spiritual and Tem- 
 poral, and Commons, in this present Parliament assembled, 
 and by the authority of tie same, as follows : 
 
 New Sinking Fund, 
 
 1. For the payment of the annual charge on account of 
 the National Debt there shaU be issued out of the Consolidated 
 
 •■■Mail a 
 
 Tnind. — 
 
 (a) During the financial year ending the thirty-first day of 
 March one thousand eight hundred and seventy-six 
 the sum of twenty-seven million four hundred 
 thousand pounds ; and 
 
 {b) During the financial year ending the thirty-first day of 
 March one thousand eight hundred and seventy- 
 seven the sum of twenty-seven million seven 
 hundred thousand pounds ; and 
 
 (c) During every subsequent financial year the sum of 
 twenty-eight million pounds. 
 
 The said annual sum (in this Act referred to as the per- 
 
 » Thfi Act liAS been amended in detail, s. 1 by sucoessiYe Finance Acts 
 (the kst in 1910); 8.2 by60 ft 51 Tictc 16; anil t. 3 by 40 & 41 Vict. c. 2 ; 
 1. 7., but Its founeirork is not aieoted. 
 
 m O 
 
198 THE FINANCIAL SYSTEM 
 
 manent ^wmmil dmrge for Natioiml Debt) shall 'be. clmig^ 
 on. and Issued out of the Consolidated SWd, at such times 
 
 and in. such manner' as may be required "i&t paying the charges 
 
 payable thereout, and subject thereto, as the Treasury may 
 from time to time direct, so that the whole amount thereof 
 be issued in each financial year. 
 
 2. There shaU be paid out of the permanunt annual ehaige 
 for the National. .Bebt the folowing .annual charges : 
 
 (1) M annuities, whether perpetual or terminable^ 
 
 charged on the Consolidated Fund under any Act 
 passed before the passing of this Act (except as 
 herein-after mentioned) ; and 
 
 (2) All interest on excheouer bonds or exchequer bills 
 
 111' w jI jL 
 
 :i8sued in puisuanoe of any Act passed before the 
 ^ aasing 01 mm Mm ^ezoepii m neiem-anier men- 
 
 \9} MM mwresu on aoYanoes maoe ny line isanjc 01 jsingiana 
 or the Bank of Ireland in pursuance of section 
 twelve of the Exchequer and Audit Act, 1866 ; and 
 
 (4) The interert <m all loam, borrowed «nd« any Art to 
 
 meet ways and means : and 
 
 (5) The sum of &wb ^tiW^sv * in respect of each 
 
 \ 9 O JET 
 
 mam of one hundred and ten 'Dounds of the two 
 Bounds ten at iilliiigH per centum Bank annuities 
 
 jl c* jet 
 
 which is payable to the account of the National 
 Debt Commissioners in pursuance of section sixty- 
 nine of the National Debt Act, 1870 ; and 
 
 (6) The annual sums payable for the time being to the 
 
 Bank of England and Bank of Irehmd for the 
 'mananenient of the National Debt, or 'Of any part 
 thereof. 
 
 Theie shai not be paid out of the permanent annual charge 
 for the National Debt any annuities or the interest on any 
 exchequer bonds or exchequer bills or on any other loans 
 
 cxeated| issued or' borrowed. ■ 
 
 ii'i 'Uncter ftn y jijct reiatms tO' tne Jtuolio Wotkb i i^ mw 
 
 \J% Mb 1, 1 1 li l i HlPW .m3J|.P' ftHMBBVNL. llPliI>iil.v W&w ifllMOUlK IM III Hill 
 
 i AiCt I or 
 
 (I) Under any Act passed after the passing of this Aot 
 
 APPENDIX X 
 
 199 
 
 which does not direct the same to be paid out of the 
 said permanent annual charge. 
 
 3. Such portion of the permanent annual charge for the 
 National Debt as is in any financial year not required for the 
 purpose of paying the annual charges directed by this Act 
 to be paid thereout (which portion may hereafter be called 
 the new sinking fund) shall be from time to time issued to 
 the National Debt Commissioners, and shall be applied by 
 them, within six months after the date of the issue thereof, 
 in purchasing, redeeming, or paying of any one or more of 
 the following descriptions of debt, namely, annuities (per- 
 petual 'Or terminable) charged on the Consolidateliiitid, 'and 
 exchequer bonds and exchequer bills (whether held by the 
 public or on account of the Exchequer, or sent into the Bank 
 of England for payment) ; but the new sinking fund shall not 
 be applied in paying off any advances made by the Bank of 
 England or the Bank of Ireland in pursuance of section tweke 
 of the Exchequer and Audit Act, 1866, or in paying off any 
 loan borrowed under any Act to meet ways and means. 
 
 OM Bimkmg Fwnd 
 
 4. The Treasury shall, within fifteen days after the expira- 
 tion of every financial year, prepare on account of the public 
 income and expenditure of the United Kingdom according to 
 the actual receipt and issue of moneys on the Exchequer 
 accounts at the Bank of England and the Bank of Ireland 
 during the said financial year, and shall therein show either 
 the surplus of such income or the excess of such expenditure 
 during the said year : 
 
 Provided that issues made for the payment of expenses 
 authorised by any Act other than the annual Appropriation 
 Act, shall not, so far as moneys to meet such issues have been 
 provided out of loans, be deemed for the purpose of the said 
 account to be part of such expenditure. 
 
 A copy of such account, certified by the Controller and 
 Auditor General, shall be laid before the House of Commons 
 within one month after the eipiration of the financial year, 
 if ParHament be then sitting, or, if not sitting, within one 
 week after the then next meeting of Parliament, and a copy 
 
200 THE FINANCIAL SYSTEM 
 
 of' 'the 'Mooiint m wrtiied ahall. abo }m sent to the MationAl 
 DeM 'Comnussioiieis. 
 
 E II there appear hj the said account for any inamcial 
 year to be a surplus of income above expenditure for that 
 year, the Treasury shall in the course of the next financial 
 year cause the amount of such, surplus (which may be called 
 the old iinMng ;fund) to 'be issued out of the Consolidated 
 Find, or the growing produoo thereof, at such times during 
 that year as they may from time to time direct. 
 
 The old sinking fund shal be issued to the National Debt 
 Commissioners, and shai be appUed by them, within six 
 ■ftonths after the date of the issuo thereof, in 'purchasing, 
 'mdeeming, or .paying of' any one or more of the foiowing 
 desciiptioBg of 'd^bt, namely, annuitifie (perpetual or termin- 
 able) dittegrf on the Consolidated Fund, and exchequer bonds 
 and exchequer bills (whether held by the public or on account 
 of the Exchequer, or sent into the Bank of England for 
 payment), and advances made by the Bank of Engknd or the 
 Bank of Ireland in pursuance of section twelve 'Of the 
 ^Exdieqiier ^and Audit .Act, 1866, but the oM. ^sinking fund shall 
 :not U applied in :paying' of any loan, borrowed under any Aol 
 to 'meet 'ways ^and 'means. 
 
 6. Section sixteen of the Exchequer and Audit Act, 1866, 
 is hereby repealed as from the thirtieth day of June one 
 thousand ei^t hundred and seventy-five, without prejudice 
 to' 'the appication of any nms .issued, .in. pnrsuanoe of that 
 section before that date, or to the canoellation of any debt 
 ledeemed. m .pureliased befoie. ^that dato with sums .issued, .in 
 ;piiniani» of 'that section. 
 
 MisceUammm 
 
 7. The National Debt Commissioueis shall keep such 
 ^aecounts of 'the application of the old and new sinking funds 
 of 'Cach. :finanGial year m the Treasury may from 'time to time 
 'direct, and. those^ 'accounts .shal, within one month after the 
 expiration of each financial year, be submitted to the Con- 
 trofler and Auditor General in such form as the Treasury may 
 from time to time direct, and forthwith audited by him. 
 
 .Befone the ^expiration, of two 'monthS' after 'the expiration 
 
 20I 
 
 of the said financial year the Controller and Auditor Greneral 
 shall send the said accounts as audited by him to the Treasury, 
 wno snau iorinwii<n lay iiue same oeiore line aouse oi commons, 
 accompanied by such particulars relating to the new and old 
 sinking funds (to be furnished by the National Debt Com- 
 missioners) as the Treasury may from time to time direct. 
 
 8. The Treasury shall publish from time to time in the 
 London GmeUe the sums which will be issued by them in 
 pursuance of this Act in each quarter of a financial year to 
 the National Debt Commissioners. 
 
 All annuities, bonds, bills, and loans purchased or redeemed 
 by the National Debt Commissioners in pursuance of this Act 
 shall be forthwith cancelled in such manner as the Treasury 
 may from time to time direct ; and any such direction shall be 
 a sufficient indemnity to the Bank of England and the Bank 
 of Ireland for anything done in pursuance thereof. 
 
 0. In this .Act— 
 
 The expression " Treasury means the Commissioners of 
 
 Her Majesty's Treasury ; 
 The expression " National Debt Commissioners " means 
 
 the Commissioners for the Beduotion of the National 
 
 Debt ; 
 
 The expression Bank of England " means the Oovemor 
 and Company of the Bank of England ; 
 
 The expression " Bank of Ireland " means the Governor 
 and Company of the Bank of Ireland ; 
 
 The expression " finanwkl year " means the twelve months 
 ending on the thirtj^Jrst day of Mardi ; 
 
 The ej^ression loan borrowed under any Act to meet 
 ways and means " means a loan borrowed in pursuance 
 of an Act authorising sums to be borrowed on the credit 
 of any sum which the Treasury are authorised by an 
 Act to issue out of the Consolidated Fund towards 
 making good the supply granted to Her Majesty ; and 
 
 The expression ** Consolidated Fund " means the Consoli- 
 'dated Fund of 'the United KingdoncL 
 
 10. This Act may be cited as the Sinking Fund Act, 1875. 
 
APPEMBIX Xl 
 
 OTJUrBIHO OBDSBS OF TEM HOUSE OF COMMONS OH 
 
 FDfANCIAL BUSINESS 
 
 8mjpply afd Wa§s ami JfauM 
 
 14. TMi bonw wil, in future, appoint tli© committees of 
 mf plj md mjB and means at the eommenoement of every 
 aesiioa, so soon as an acliress hm been agimd to, in answer 
 to :Hii Maj'esty's speech. 
 
 As soon as the committee of snpply has been 
 appointed and estimates have been presentedi the bnaineBS of 
 snpply shall, nntil dispceed of , be the list order of the day on 
 Zhiusday, nnless^ 'the house otherwise order on the motion of' 
 a minister of the Crown, moved at the commencement of 
 pttiic bnsiness, to be decided without amendment or debate. 
 
 (2) Not more than twenty days, being days before the 
 eth of Angust, shall be aUotted for the consideration of the 
 ^annnal estimates for thO' army, navy, and civi .services, 
 .including votes on ^acconnt. The days aUotted sh^all not 
 include any day on which the question has to be put that the 
 weaker do leave the chair, or any day on which the business 
 of supply does not stand as first order. 
 
 (8) Provided that the days occupied by the considerajiin 
 of estimates sopplementaiy to those of a previous session or 
 of any vote of credit, or of votes for supplementaiy or addi- 
 tional esiraates presented by the government for war expendi- 
 tiire> or for any new service not included in the ordinary 
 esUmates fcr the year, shaU not be included in the computation 
 of the twenty days aforesaid. 
 
 (4) Provided ahio that on motion made after notice, to 
 be^ decided without amendment m debate, ^additional time, 
 
 203 
 
 APPENDIX XI 
 
 203 
 
 not exceeding three days, may be aHotted for the purposes 
 aforesaid, either before or after the 5th of August. 
 
 (5) On a day so allotted, no business other than the 
 business of supply shall be taken before eleven, and no business 
 in committee or proceedings on report of supply shall be 
 taken after eleven, whether a general order exempting busmess 
 from interruption under the standing order (sittings of the 
 house) is in force or not, unless the House otherwise order on 
 the motion of a minister of the Crown, moved at the com- 
 mencement of pubUc business, to be decided without amend- 
 ment or debate. 
 
 (6) Of the days so allotted, not more than one day m 
 tsommittee shaU be allotted to any vote on account, and not 
 more than one. sitting to the report of ihat vote. At eleven 
 on the close of the day on which the committee on that vote 
 is taken, and at the close of the sitting on wMch the report 
 of that vote is taken, the chairman of committees or the 
 speaker, as the case may be, shall forthwith put every question 
 necessary to dispose of the vote or the report. 
 
 (7) At ten of the clock on the last day but one of the days 
 so aEotted tihe chairman shall forthwith put every question 
 necessary to dispose of the vote then under consideration, and 
 shaU then forthwith put the question with respect to each 
 class of the civil service estimates that the total amount of 
 the votes outstanding in that class be granted for the services 
 defined in the class, and shaU in like manner put severaUy 
 the questions that the total amounts of the votes outstanding 
 in the estimates for the navy, the army, and the revenue 
 departments be granted for the services defined in those 
 estimates. 
 
 (8) At ten of the clock on the last, not being earlier than 
 the twentieth, of the aUotted days, the speaker shall forthwith 
 put every question necessary to dispose of the report of the 
 resolution then under consideration, and shall then forthwith 
 put, with respect to each class of tihe civi service estimates, 
 the question, that the house doth agree with the committee 
 in all the outstanding resolutions reported in respect of that 
 class, and shall then put a like question with respect to all 
 tho resolutions outstanding in the estimates for the navy. 
 
ao4 THE FINANCIAL SYSTEM 
 
 ■iilii armj, the mmmm iipartniMits, mi oilier oiitBtandinir 
 ■wwltttioiigse^OTiilly. 
 
 (9) On tlie i&jB appointed for concluding the bmiiiesB 
 of supply, the consideration of that huameiB shal not lie 
 anticipated by a motioii of adjoittiinient, and no dilatory 
 motion ahall be moimd on piooeedingp for that buaineBs and 
 the biaineis ahull not be intetmpted under any standing order. 
 
 (10) Any additional estimate for any new matter not 
 included in the original estimates for the year shaU be sub- 
 mitted for considmtion in the committee of supply on some 
 day not later than two days before the committee is closed. 
 
 (11) for the purpose of this order two Ridays shall be 
 deemed equivalent to a single sitting on any other day. 
 
 16. fhe committees of supply and ways and means shall 
 be i»d for Monday, Wedneaday, and Thursday, and may 
 »1» be appointed for any other day on which the House shall 
 meet for despatch of business. 
 
 17. Whenever the committee of supply stands as an order 
 of the day, Mr. Speaker shall leave tiie chair without putting 
 any question unless on irst going into supply on the army, 
 navy, or civil service estimates respectively, or on any vote 
 of credit, an amendment be moved, or question raised, relating 
 to the estmiates proposed to be taken in supply. 
 
 FMic Mmn^ 
 
 §6. This House will reoeivo no petition for any sum relating 
 to pubhc service, or prooeed upon any motion for a grant or 
 chittffi upon the public revenue, whether payable out of the 
 consohdated fund or out of money to be provided by parlia^ 
 ment, unless recommended from the crown. 
 
 m This House wil not proceed upon any petition, motion, 
 or bill, for grantmg any money, or for releasing or compoundin« 
 any sum of money owing, to the crown, but In a commit 
 of the whole House. 
 
 m. This House wil not receive any petition for compound- 
 any sum of money owing to the crown, upon any branch 
 of the revenue, without a certificate from the proper officer 
 or officers annexed to the said petition, stating the debt, 
 What prosecutions have been made for the recovery of such 
 
 APPENDIX XI 
 
 205 
 
 debt, and setting forth how much the petitioner and his 
 security are able to satisfy thereof. 
 
 69. This House will not proceed upon any motion for an 
 address to the crown, praying that any money may be issued, 
 or that any expense may be incurred, but in a committee of 
 the whole Hous^ 
 
 70. This House wiU not receive any petition, or proceed 
 upon any motion for a charge upon the revenues of India, 
 but what is recommended by the crown. 
 
 71. H any motion be made in the house for any aid, grant, 
 or charge upon the public revenue, whether payable out of 
 the consolidated fund or out of money to be provided by 
 Parliament, or for any charge upon the people, the considera- 
 tion and debate thereof shall not be presently entered upon, 
 but shaU be adjoumed tUl such further day as the house shaU 
 think fit to appoint, and then it shall be referred to a committee 
 of the whole House before any resolution or vote of the House 
 do pass therein. 
 
 Poc^ cmd TdegrapMc ContrcKis 
 
 72. In aU contracts extending over a period of years, and 
 creating a pubHc charge, actual or prosiLtive, entered into 
 by the Government for the conveyance of mails by sea, or for 
 the purpose of telegraphic communications beyond sea, there 
 should be inserted the condition that the contract shall not 
 be binding until it has been approved of by a resolution of 
 the House. 
 
 73. Every such conteact. when executed. shaU forthwith. 
 
 if Parliament be then sitting, or, if Parliament be not then 
 sitting, within fourteen days after it assembles, be laid upon 
 the table of the House, accompanied by a minute of the lords 
 of the treasury, setting forth the grounds on which they have 
 proceeded in authorising it. 
 
 74. In cases where any such contract requires to be con- 
 firmed by act of Parliament, the bill for that purpose shall 
 not be introduced and dealt with as a private bill, and power 
 to the Government to enter into agreements by which obliga- 
 tions at the pubMc charge shaE be undertaken shall not be 
 given in any private act. 
 
2o6 THE FINANCIAL SYSTEM 
 
 FMic Aammit 
 75. There shiill U m utiiniliiig oommitte©, to be ienigniited 
 ' * tie oomiiiittee of publi© aooonnti," for the exuuinatioii of 
 tlie iwooiiiits ehowiag tlie appopimtioii of 'tli© sums granted 
 hy PurlmiiiMit to meet the piibHc expenditure, to consist of 
 ifte®a membeiB, who shall be nominated at the commence- 
 meiit of mmj mamBn, and of whom five ahaU be a quorum. 
 
 APPENDIX XII 
 
 SPECIMEN ESTIMATE 
 
 CiiASS IL— Esthiatbs, etc., Civil Services ; itor the 
 Ymm mmma 31st Mabcm 1913 
 _20 — 
 
 JNAllUJNAJj UJSilil KflfMilxjMh 
 
 I. ESTIMATE of the Amount required in the Year ending 31st 
 March 1913 to pay the Salaries and Expenses of the National 
 Debt Office (26 Geo. 3, c. 31, s. 15 ; 10 Geo. 4, c 24, ss. 47 
 and 48; 2 & 3 Will. 4, c. 59, ss. 14 & 20 ; 26 & 27 Vict. c. 87, 
 8. 66 ; and 45 & 46 Vict. c. 51, s. 13). 
 
 Twelve Thousand Five Hnndred and Eighty Pounds. 
 
 II. Sub-Heads under which this Vote will be aceoiliilei for 
 
 by the National Debt Office. 
 
 
 1012-18. 
 
 1911-12. 
 
 Ineroaae. 
 
 Deexeaie. 
 
 NATIONAL DEBT OFFICE. 
 
 
 
 
 
 A. -^ALARIES. WAGES, AND 
 
 ALLOWANCES . 
 
 B. — INCIDBNTAL EXPENSES . 
 
 £ 
 
 14,920 
 65 
 
 £ 
 
 16,627 
 66 
 
 £ 
 
 • • 
 
 * • 
 
 £ 
 
 m 
 
 • • 
 
 BOARD. 
 
 
 
 
 
 C— ALLOWANCES . . . . 
 D. — ^INCIDENTAL EXPENSES . 
 
 762 
 10 
 
 762 
 10 
 
 • • 
 
 • • 
 
 • • 
 
 Gboss Total . . . 
 
 15,767 
 
 16,364 
 
 
 607 
 
 Dedmi, — 
 
 
 
 
 
 E.— APPROPRLITIONS IN AID i 
 
 3,177 
 
 3,009 
 
 • • 
 
 168 
 
 Net Total 
 
 12,580 
 
 13,365 
 
 • • 
 
 775 
 
 Nbt DiOEiASlt' . . £775|M^^^^^^^^^^^ 
 
 ^ In addition to the amount proidded as Appropriationa in Aid, a sum 
 will bo leooverable from the Local Loans Fund in lespect of expenses of 
 administration in 1911-12, and will be paid direct into the Ixolieqiier. 
 These expenses are estimated to amount to £628. 
 
 207 
 
208 THE FINANCIAL SYSTEM 
 
 20. — Nahoiial Bsbt Owwicm—continmd, 
 
 Bpoirifiioii is also made as follows in other EstimaloB 
 for Expeadituidlii mmuMtion with this Service : — 
 Ofioe Aooommodatioii (Buildings, Fiimituie, 
 Fiiol. and .liglii oto.), Claai L, 10 . . . 
 JftatoSf CHaflB' ^§ 'lA • 
 Slatidiifiij' and Bcintiiig, Qmm M 
 
 llQii-«iefitii¥% dam ¥1., 1 
 
 BiMl llfiii% Beveniie Bepartneiits Ha 3 . 
 
 loii-is.. 
 
 £ 
 
 5,100 
 4li0 
 
 320^ 
 
 £13»4A1 
 
 I. 
 
 BiTAiLs of the above. 
 
 NATIONAL DEBT OIIIOB 
 
 
 -SALARIES. WAGES, AND 
 
 
 
 
 
 ALLOWANCES : 
 
 
 
 
 
 
 VHiilMin. 
 
 
 
 
 
 1012-13. 
 
 1011-12, 
 
 X 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 1 
 
 1 
 
 CbHflioUei: Genmiil 
 
 • » 
 
 
 1,500 
 
 1,500 
 
 1,500 
 
 
 1 
 
 iMstaml Gomptroller 
 
 800 
 
 50 
 
 1,000 
 
 850 
 
 817 
 
 
 
 .IniMiilNil Qmim ^ . 
 
 560 
 
 Si 
 
 700 
 
 2,676 
 
 3,128 
 
 i 
 
 > • 
 
 il.«fiiliiiil Avndffil' Ckrk 
 
 
 fO 
 
 500 \ 
 
 2,f74 
 
 2^ 
 
 
 M 
 
 9 
 
 .Aaiiflaiii.eiiiii3iiial 'CMbi'I 
 
 350 
 
 15 
 
 
 
 
 i 
 
 6 
 
 Clerks, Second Biviaioii 
 
 
 
 
 
 
 
 
 (Higber' 'Qiade) . 
 
 SiO 
 
 
 
 1,611 
 
 1,806 
 
 li 
 
 IT 
 
 ClerH ^Steond. IXvliioii 
 
 
 7 10 
 10 
 
 130 
 300 
 
 { 2.926 
 
 2,869 
 
 
 
 Oanied forward 
 
 • • 
 
 • 
 
 £11,837 
 
 £12,445 
 
 * Ob© fMrives an aiewaiifie ef £100 far aotiiig as CUef Gerk. which is to be 
 ^HMMiiiUNiid. on a Yacanoy. 
 
 • Ow!' iweiviis an. aUowanoe^ ef 1100' aa Aoliaij. wMeli ;ia to U nooMideml on 
 a miaiio J. 
 
 APPENDIX XII 
 
 20,— Nazioiial Debt Ownm—mtiiinmed, 
 
 A. — «AT.AiR.TIii« , WAOES, AND 
 ALLOWANCES— €oiiltfiiiflf2. 
 
 NumbeiB. 
 
 T 
 
 33 
 1 
 1 
 
 1 
 1 
 I 
 1 
 
 1 
 2 
 4 
 
 46 
 
 . . Bronghl forward . . 
 Female Typist, per week 
 Housekeeper . . . 
 
 Ditto. Allowanee in 
 lieu of quarters, eto.^ 
 Head 'Messenger ^ . 
 Messenger, First Class ^ . 
 Messenger, Second Class ^ 
 Pensioner Messenger,^ per 
 
 week • . • • 
 Porter . . . . 
 Boy Messengers, per week 
 Charwomen at 14s. per 
 
 WUUAk . • * • 
 
 Extra attendance and 
 
 OK JBiPk' 
 
 Agents at 
 land 
 
 Agents at Bank of Ireland^ 
 Broker .... 
 Private Secretary to 
 
 Comptroller General * 
 Temporary Salaries, in- 
 
 dnding Copying . 
 
 Total for Sauoiiis, Waqbs, and Allowahobs 
 
 Salary of Office. 
 
 s 
 s 
 
 20b. 
 
 £100 
 £90 
 
 21s. 
 £55 
 9b. 
 
 If 
 
 2s. 
 
 £5 
 £2 lOs. 
 £2 10b. 
 
 Is. 
 £2 lOs. 
 
 s 
 
 26s. 
 £70 
 
 £110 
 £100 
 £90 
 
 24b. 
 £80 
 
 1012-13. 
 
 £11,837 
 57 
 70 
 
 85 
 115 
 105 
 
 95 
 
 63 
 69 
 64 
 
 160 
 
 300 
 100 
 1,600 
 
 100 
 
 200 
 
 £14,920 
 
 1011-12. 
 
 £12,445 
 54 
 70 
 
 85 
 115 
 105 
 
 95 
 
 63 
 66 
 
 160 
 
 300 
 100 
 1,500 
 
 200 
 
 £16,627 
 
 * This allowance is to be reconsidered on a vacancy. 
 
 ■ The present three Messengers receive £5 each in addition to salary on scale. 
 
 * This Pensioner Messenger receives an Army Pension of Is. Id. a day. 
 
 * This amount wiU be repaid from the Vote for the Irish Land Commission («ee 
 Sub-Head E of this Vote). 
 
 * In. addition to .his ^sabry m a Second .Division Oeik. 
 
a 10 THE FINANCIAL SYSTEM 
 
 PBNSIQM OOlilf UTATION BOARD 
 
 (84 4 35 Tict. c. 36, a. 5) 
 
 
 
 
 i— AliOWAM CM3, im. : 
 
 
 
 
 IW 
 
 100 
 
 
 150 
 
 160 
 
 
 76 
 
 76 
 
 ^SoilMilM9p0r 
 
 6 
 
 5 
 
 ^^^^^^^^^ 
 
 12 
 
 
 Wm$ to MmMoiiI Ommm . « : . . 
 
 
 400 
 
 Wmm to liMlMl, Beferom^ mumi. hw Appli. 
 
 
 
 ...... . ■ . 
 
 murk 
 Mm 
 
 
 TofMii lor AuowAHcn^ i»to. 
 
 S76S 
 
 £762 
 
 Thmm AibwiiiiMi (i»ai|il m liodtoiil. Wem) m paid to offioero whose 
 MfiilMr Mkiiee^ me IhaIimIimI undiv Suli-Heiid. A. 
 
 a— APPROPRIATIONS JM MB : 
 
 
 £ 
 
 AppKed under the Act 45 & 46 Vict. c. 61, 
 
 
 
 out of moneys to bo fMeiml ladiir tli»t 
 
 
 
 AiOl» as follows, viz. : — 
 
 
 
 For Charges of Management of Sniriiip 
 
 
 
 Banks Immediate Annuities 
 
 i»06a 
 
 1,066 
 
 For Charges of Management of Savings 
 
 
 
 Banks Deferred Annuities . 
 
 293 
 
 200 
 
 For Qmtgfia of Management of Govern- 
 
 
 
 ment InraiaiiDe ...... 
 
 MCI' 
 
 SI5I 
 
 249 
 
 Wmt to 'liO' mmmd hy National Bobt OAoe 
 
 
 
 Md Ptentont Oominalaiioii Boafd. . . 
 
 1,470 
 
 1,906 
 
 B«pftjrment by the Irish liuid. Oomai^ 
 
 
 
 iwpeol of '0081 of Agmtt at 'BMik of 
 
 
 
 Jniuiiit 
 
 100 
 
 100 
 
 1^ Jtimmmjmmm m Mb . 
 
 £3,177 
 
 £3,000 
 
 APPENDIX XIII 
 
 iaJrJiiUiJilljiJM JMfrM&UriiiiJLllllN AXSVUVml 
 CiYiL Services, Class II., Vote 20, 1912-13 
 NATIONAL DEBT OFFICE 
 
 AOOOUNT of the Sum expended, compared with the Siun 
 punted, to pay the Sakries and Expenses of the Natiohal 
 DiBT OfMCB, in the year ended 31st March 1913, showing 
 the Surplus or Deicit upon ernsh Snb-Head of the Vote. 
 
 
 
 Bipeiiiiliiie. 
 
 Expenditure compared 
 
 
 More than 
 gzsiitod. 
 
 NATIONAL DEBT 
 OFFICE. 
 
 A. — Salaries, Wages, and 
 
 Allowances 
 
 B. — ^Incidental Ea^penses . 
 
 TION BOARD. 
 
 C. — ^Allowances . 
 
 D. — Incidental Expenses . 
 
 0«M8 Total . 
 
 £ s. d. 
 14,920 0 0 
 65 0 0 
 
 762 0 0 
 10 0 0 
 
 £ s. d. 
 14,688 18 10 
 42 18 11 
 
 657 0 0 
 7 11 2 
 
 £ 8. d. 
 231 1 2 
 22 1 1 
 
 106 0 0 
 2 8 10 
 
 £ 8. da 
 
 • • 
 
 15,757 0 0 
 
 15,396 8 11 
 
 360 11 1 
 
 * . 
 
 Deduct — 
 E.~Appropilatioii8 in Aid 
 
 Net Total 
 
 Estimated 
 
 Realised 
 
 Surplus of 0Ki8s..''E8ti- 
 mato over Expendi' 
 ture 
 
 £360 11 1 
 
 Surplus of Appro- 
 priations in Aid 
 realised 
 
 3,177 0 0 
 
 3,456 15 4 
 
 £279 16 4 
 
 Total Surplus to be 
 surrendered 
 
 12,580 0 0 
 
 11,930 13 7 
 
 £640 6 6 
 
 211 
 
212 THE FINANCIAL SYSTEM 
 
 Ttxruxmam or m Cadms of Vaxuhok bstwuh 
 
 jsaffnuiTuw asB' Ixbair 
 
 A'-— Bm to 'tslMi nlimiioiit of an iBtiatiuit Pdndp*! Oef k and of a 
 Gbonnd. Bfiirioa C&irk of BigliDr Grade, to oitangOB in thu 'ilai 
 'Miiwiiient thereon, «ni. to a iaving in temponurj ealariei. Ilie sairing 
 
 fedneed. bj m expeniitare of iSm im TpmpmmMim of life Annuity 
 Tablei^ eiiarged. ^tgainit 'the Tote by Ttoasuiy diieettoni (T.L. 6111/12), 
 and by £18 consequent upon the appointment of an additional Clerk 
 |T,L. 20,248/12). liii{i%ir*t contributiona under the Hstional 
 Imuwuoe Act, 1911, anounted to £2 : 18 : 7. 
 
 Due' to^ the eipeuaei' being len^ than eitinittted. 
 
 e—Bue to the ieee paid to^ Medieal ^Ofioen and M edieal Beferees^ 
 'being 'hm than cetiniatod. 
 
 BuO' to an 'ineieased amount of fees 'paid by candidates for 
 eommutatiott. The gross surplus was reduced by £72, the amount of 
 Mmmission reoeiwed % the Mational. Bebt Ofioe^ under the ^Savings 
 Bank (Inwestment) Begulatim being leas 'than the sum estimated. 
 
 
 
 
 
 
 Estl- 
 maled. 
 
 BoalM. 
 
 Applied under the Act 45 & 46 Vict. c. 51, out of 
 moneys to be received under that Act . 
 
 lees^ reoei¥ed by Hatimiii' Bebt Office and 
 :Baisii»s CSonmntoMoii. Board. .... 
 
 Bepayment by the^ 'Irish Land Cbmaissioniirs in 
 lespeot 'Of oosi of .Agenls^ at Bank of Ireland . 
 
 £ 
 
 1,607 
 1,470 
 100 
 
 £ 8. d. 
 1,607 0 0 
 
 1,740 15 4 
 
 100 0 0 
 
 •%177 
 
 '3^466 IS 4 
 
 ^Beeiia BwimaBJkXiov Cnomiiira £26) 
 
 line oAeeni 'received, .amounts varying from £27 to £40 for extra 
 nimunflr»ti«a. during 'the inMioial year in. oomection. with, the ptepara- 
 Mon of Betums. for .Parliament ^or Board 'Of Xrade, and for eaJeuklion 
 'Of :new' lilO' .Annuity Tables^ 
 
 The Surplus of £1016 : II : 4 shown on the Account of the Voto 
 " National.^ Bebt Olice,*'* 'for the year 'ended 31st March 1.012, haS: been 
 
 W. G. TuBpnf, 
 
 national Debt OHee, Ammniing Offiar, 
 
 MA /liff 101.B. 
 
 APPENDIX XIII 213 
 
 I oerHly that this Account has been examined under my directions, 
 and is corred g j Qj^^om, 
 
 ■m 1 J m» « w Comptroller and Auditor-OemrmL 
 
 Bxftniined, lit o. Kkly. 
 
 REPORT OF THE COMPTROLLER AND AUDITOR-GENERAL 
 1. The amount to be surrendered is £640 : 6 : 5. 
 
 
 £ Sa d. 
 
 Grant (Gross) ...... 
 
 15,757 0 0 
 
 Expenditure (Gross) 
 
 16,396 8 11 
 
 SuipluS' • 
 
 360 11 1 
 
 Add— 
 
 
 Appropriations in Aid realised in excess of 
 
 
 the Estimate 
 
 279 15 4 
 
 Total Surplus .... 
 
 £640 6 5 
 
 2. The Accounts of various non-Toted Services administered by the 
 National Debt (Commissioners have been examined in my Department 
 and found correct. 
 
 H. J. Gibson, 
 Comptroller and Ayditor-Genmd, 
 
 .P 
 
m% It It jIjI jiil' Ji ■ * ill. ^CaJ. V 
 
 f nuimsw Am itli, 1 1 2 Qm. V. o. 13 
 
 Pmimv rfHmm. ofJMk m m Mmm^ Mi 
 
 Section 1. — (1) If a Money Bill, having been passed by the 
 House of Commons, and sent up to the House of Lords at least 
 one month before the end of the session, is not passed by the 
 House of Lords without amendment within one month after it 
 is so sent up to that House, the Bill shall, unless the House of 
 Commons direct to the contrary, be presented to His Majesty 
 and become an Act of Parliament on the Eoyal Assent being 
 ligiiiied, notwithstanding that the House of Lords have not 
 consented to the Bill. • 
 
 (2) A Money Bill means a Public Bill which in the opinion 
 of the Speaker of the House of Commons contains only provisions 
 dealing with all or any of the following subjects, namely, the im- 
 position, repeal, remission, alteration, or regulation of taxation ; 
 the imposition for the payment of debt or other financial purposes 
 of charges on the Consolidated Fund, or on money provided by 
 Parliament, or the variation or repeal of any such charges; supply; 
 the appropriation, receipt, custody, issue or audit of accounts of 
 public money ; the raising or guarantee of any loan or the pay- 
 ment thereof ; or subordinate matters incidental to those subjects 
 or any of them. In this subsection the expressions " taxation," 
 
 public money," and " loan," respectively do not include any 
 taxation, money, or loan raised by local authorities or bodies for 
 local purposes. 
 
 (3) There shall be endorsed on every Money Bill when it is 
 fWiit up to the House of Lords and when it is presented to His 
 Majesty for assent the certificate of the Speaker of the House of 
 Conamons signed by him that it is a Money Bill. Before giving 
 Ms certificate, the Speaker shall consult, if practicable, two members 
 to b« appointed from the Chairmen's Panel at the beginning of 
 eiuiii Sflision by the Comjnittee of Selection. 
 
 APPENDIX XIV 
 
 Omtifimie of Speaker 
 
 Section 3.— Any certificate of the Speaker of the House of 
 Commons given under this Act shall be conclusive for all purposes, 
 and shall not be questioned in any court of law. 
 
 Jimofifi^ Wmis 
 
 Section 4.— (1) In every Bill presented to His Majesty under 
 the preceding provisions of this Act, the words of enactment 
 shall be as follows, that is to say : 
 
 " Be it enacted by the King's most Excellent Majesty, by and 
 with the advice and consent of the Commons in this present 
 Parliament assembled, in accordance with the provisions 
 of the Parliament Act, 1911, and by authority of the same, 
 as follows. 
 
 (2) Any alteration of a Bill necessary to give effect to this 
 seotion shall not be deemed to be an amendment of the Bill. 
 
INDEX 
 
 Aoooiinting Officer, 68-70, 77 
 Aooounts, date of olosiog, 74 
 
 special, 96-100 
 Agency payments, 12, 71 
 Allied Services, 12 
 Annuities, terminable, 58, 61, 92 
 AnsoQ, 80-181 
 
 Appropriation Account, 88, 74 
 Appropriations in Aid, 9, 11, 16, 72 
 Army and Navy transfers, 72-78 
 Assets of State, 63 
 Audit, 74-79, 99-100 
 
 Bank, of England, 55, 98-96 
 
 of Ireland, 94 
 Blanks, 41 
 
 Bowies V, Bank o/Mnffimd, 40 
 Budget, 37 
 
 Biilli«iii, piiQliaee of, 61, 68 
 
 Cattle Pleuro-Pneumonia Account, 98 
 Chancellor of Exchequer, 37, 41,80-81 
 Chiaholm's Analyds^ 1, 54 
 Civil Contingencies Fund, 26, 87 
 Civil List, 19, 64, 83 
 Comptroller and Auditor General, 
 
 10, 66, 84 
 Oonaolidated Fund, 18, 59 
 
 Account, 20 
 
 charges, 19, 59, 66, 85 
 Courtney, Lord, 35 
 Crown Lands, 54 
 
 BeH Ainded, 59, 90, 93 
 
 unfunded, 59, 90 
 
 management of, 60, 94 
 
 National, 89, 93 
 Deficiency Advances, 22, 85 
 Development OomniigsionefB, 99 
 
 Estimates Circular, 1 
 Estimates, Army and Navy, 6 
 
 217 
 
 Estimates for Public Works, 4 
 Nominal or Token, 13, 61 
 Supplementary, 8, 9, 14, 16, 26, 
 
 29, tl, 35 
 Committee, 36 
 Exceptional Grants, 17 
 Ezcefls votes, 15, 27, 29, 31, 76 
 Exchequer Account, 19, 23-24 
 Balance, 28, 39, 52 
 Bills, 85 
 
 Bonds, 57-58, 61, 86 
 Extra Receipts, 12, 56 
 
 Finance Aooounta, 43 
 Finance Bill, 39, 41 
 Financial Secretary to Treasury, 76 
 81 
 
 Ffnandal year, 1 
 First Lord of Treasury, 80 
 
 Grant in Aid, vii, 10, 11 
 Guillotine, 32, 34, 37 
 
 Hunt, a H., 86 
 
 Ilbert, Sir C. P., 31 
 Imprest, 24 
 Income Tax, 40 
 
 Insurance, National Health, 99 
 
 King's and Lord Treasurer's Remem- 
 brancer, 67 
 King's Speech, 26 
 
 Local Loans Fund, 97 
 Local Taxation Account, 60, 97 
 Lords, House of, and Finance, 42 
 
 Macaulay, Lord, 54 
 May, Sir E., 6, 42 
 
 Miscellaneous Revenue, 55 
 Money Bill, 31, 42 
 
2iS THE FINANCIAL SYSTEM 
 
 Monk Eeioliitwii, 78 
 Mmriij, a7 
 
 Iliiiiml Debt Otaiimnioiien, 8».91 
 Mational Healtk Iiiunme .fiwl, m 
 New Service, 35 
 New WmkM, 14 
 
 .PiriMiiiitniy Semlary ta Trmawty, 
 81 
 
 Biymaster-Genernl, 66-67, 81-85 
 Pensions, hereditary, oommiitod, 20 
 Hiilpijovicli, E. von, 67, 95 
 Prenentiilioii of Estinuites, date, 6 
 ftriacipal Accountants, 08 
 Provisional collection of taxes, 40 
 Public Accounts Committee, 26, 75 
 
 ^Umm of Mtjmis, 79 
 Fiiblio Works Istimates, 4 
 Pihtte Worin Immus, ff 
 
 .Bsdlich, J., vi. 17 
 
 Iliad Improvement Fund, 60, if 
 
 lufal Order, 66 
 
 Sinking fnnd. New, 41, if, 10, fl 
 
 Old, 39, 41, 49, 79, fl 
 Speoial Accoimts, 95 
 
 Sub-heads, new, f 
 
 Suez Canal shares, 65, 59, 63, 85 
 
 SupplementM^r Estimatos, 8, 9, 14, 
 
 16, 26, 36 
 Supply oharges, 19, 63 
 Supplf, setting' up of, Sf , 34 
 
 Tea duty, 40 
 Todd, A., vi, 80 
 Token lilinuitet, 18, 61 
 Transfeii^, 8, 71-71 
 Treasury, 80 
 
 Bills, 58, 84 
 
 Chest Fund, 86 
 
 Minute m P.A.O. Bep<irt%. 76 
 
 BflnwnlirMieer, Ireiaud, 67 
 
 Unemployment Fund, 99 
 FifwiMtl, 72 
 
 Vote, B;iM88, 16, S7, 76 . 
 of Credit, 86 
 on Account, 27 
 Token or Nominal, 13, 61 
 
 Webb, Tii. 11 
 Works in pnigyti^ 14 
 
 A AH .JUIJI 
 
 Frimitdk^WL ft R. Cuuoc, Limitbd, Edmhtwgk, 
 
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 a 
 
COLUMBIA UNIVllSITY LIBRARIES 
 
 TWt ietk it mi flM m§ IndlcsM btlow, or at th« 
 «cpiimttai irf m iftiatto fMM ate tit ilatt of borrowing as 
 proir Mwiayti it lllinijr fito tr bf fiwM amngemtnt with 
 
 1110 liiUlBBtiMi In flIUttlplk 
 
 
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 COLUMBIA UNIVERSITY LIBRARIES 
 
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