"4. That it is necessary to maintain the principle of a scale of duties, with standards designed to include several classes of sugar within each range of duty.

5. That if any alteration be made in the present scale, the chief object of such alteration should be to admit, at a lower duty than at present, certain of the sugars now paying 12s. 8d. and 16s. respectively; or sugars which are now excluded, because, if imported, they would be liable to those duties.

"6. That sufficient evidence has been laid before the committee to warrant the conclusion that such alteration might be made without any important risk to the revenue."

Resolutions, to be proposed by Mr. Crawford, were read as follows:"1. That the first interests to be considered in this matter are those of the consumers, and the maintenance of the revenue.

"2. That the interests of producers and of the refiners are of secondary importance, and cannot claim to be sustained or adjusted by particular action on the part of the Legislature.

"3. That it is a breach of the fundamental principles of freedom of trade to create any legislative machinery with the view to reconcile differences of climate or soil, or to remedy the effect of deficiencies of labour.

"4. That an uniform duty on all kinds of sugar is in accordance with these principles; but that, inasmuch as the imposition of a high duty on sugar has a particular bearing on the trade of the refiner, and the supply of his produce to the consumer, refining in bond for home consumption is an obvious supplement to an uniform duty, and would equitably dispose of many of the objections of such a duty.

"5. That the chairman of the Board of Customs, and the officers of the department, have stated that refining in bond is impracticable with due security to the revenue.

“6. That whilst refining in bond cannot, therefore, be recommended, the case can be fairly met by substituting an alternative for refining in bond.

"7. That as such a substitution must necessarily be imperfect, and can only be obtained by departure from the principles before stated, the deviation should be no more than will satisfy the object in view.

"8. That such object will be attained with the smallest sacrifice of principle, by the imposition of two duties only on sugar consumed in this country, as, it has been stated in evidence, is the rule in France, Belgium, Holland, Russia, Germany, and America.

"9. That all sugar below the quality of No. 19 of the Dutch standard, should be charged with 138. 2d. per cwt., the assumed average of the existing rates of duty on raw sugars.

"10. That sugar of the quality of No. 19 and upwards of the Dutch standard, should be charged with a duty of 18s. 4d. per cwt.

"11. That there should be allowed one drawback only on refined sugar, at such a rate as the circumstances of the case shall require."

Resolutions, proposed by Mr. Cave, were read as follows:"1. That the duties ought to be so regulated as to encourage the largest possible supplies of sugar from the various sources of production, in what

ever form the same may be imported, whether as refined sugar, or in combination with other substances to be afterwards separated by the process of refining.

"2. That while it has been confidently stated that the best solution of certain difficulties attending a graduated scale of duties would be the permission to refine sugar in bond, without which the adoption of an uniform rate of duty would be highly inexpedient, yet the Customs authorities have expressed so much doubt with regard to the security of the revenue, if such permission were granted, that the committee feel themselves precluded from recommending it.

"3. That, under these circumstances, it is desirable to maintain a graduated scale of duties, designed to comprise within the range of each, such qualities as may be properly classed under one denomination.

"4. That the existing scale may be rendered more equitable by such an alteration as shall admit, at lower relative rates of duty, the inferior portion of the sugars which are now liable to pay 12s. 8d. and 168. respectively.

5. That sufficient evidence has been laid before the committee to warrant the conclusion that such an alteration might be made without any important risk to the revenue."

Resolutions, to be proposed by Mr. Potter, were read as follows:—

"1. That the present scale of duties on sugar, induces an import of the lower descriptions, and affords a bounty to the refiner at the expense of the revenue.

"2. That a fixed duty of 138. 4d. would induce a larger import of fine sugars at a lower price, create a larger consumption, and benefit both the consumer and the revenue."

Resolutions, to be proposed by Mr. Gregson, were read as follows:

"1. That the present graduated scale of duties subjects the importers to delay, uncertainty, and annoyance, which would be obviated by a uniform rate of duty.

"2. That a graduated scale encourages the importation of inferior sugar, while a uniform rate of duty would tend to supply the public with better qualities of sugar.

"3. That a uniform rate of 138. 2d. duty on raw sugar would yield the present amount of revenue."

After much discussion on the resolutions proposed, as proposed by the different members, the committee were ordered to report as follows:

"1. That the amount of revenue now derived from sugar could not, with justice to the consumers of the lower classes of sugar, be raised by any uniform duty applicable to all classes.

"2. That it is not possible to charge sugars with duties varying exactly with the quality or value.

"3. That it is necessary to maintain the principle of a scale of duties, with standards designed to include several classes of sugar within each range of duty.

4. That the duties ought to be so regulated as to encourage the largest possible supplies of sugar from the various sources from the various sources of production, in whatever form the same may be imported-whether as refined sugar or in

combination with other substances to be afterwards separated by the process of refining.

"5. That the existing scale may be rendered more equitable by such an alteration as shall admit, at lower relative rates of duty, the inferior portion of the sugars which are now liable to pay 12s. 8d. and 16s. respectively.

"6. That sufficient evidence has been laid before the committee to warrant the conclusion that such alterations might be made without any important risk to the revenue.

"7. That the evidence does not justify the committee in recommending the adoption of refining in bond.

"July 8, 1862."

The following is an abstract of the evidence of witnesses :

Sir T. J. Fremantle gave an account of the sugar duties.

History of Sugar Duties.-Previous to 1844 the tariff recognised no difference in the quality of sugar except that of unrefined and refined, and white and brown candy; discriminating rates were levied on the last three descriptions. Refined sugar was charged with a rated duty of 5l. 58. 5d. per cwt. in 1801, which was gradually increased to 81. 88. per cwt. in 1809, and continued till 1840, when it was increased, in common with all custom duties, five per cent. During the whole of this period the principle of protecting and fostering the colonies was adopted as the rule in fixing the duties on sugar. Our colonies made no refined sugar, and, therefore, there was no discriminating rate for the refined sugar of any country; but in the unrefined, or Muscovado, this principle was carried out to an extent varying according to the colonies to be favoured. From 1800 to 1824 the West Indies enjoyed the supremacy of protection; their Muscovado sugars being admitted at rates varying from 17. to 17. 10s. per cwt., while East India and Mauritius sugars were charged, during the years 1800, 1801, and 1802, with 38. 2d. per cwt., and 421. 16s. 3d. per cent. ad valorem, and subsequently with rated duties varying from 11. 6s. 4d. to 17. 178. per cwt., and during the years 1804 to 1813 with further ad valorem rates, il. 4s., 1. 6s., 17. 78., and of 17. per cent. But in 1825, Mauritius was admitted to fellowship with the West Indies, and their Muscovadoes were put at 1. 7s., per cwt., which was, in 1830, reduced to 17. 4s., with a further 5 per cent. in 1840. When Mauritius was separated from the East Indies as regarded the rating of her sugars, the sugars of India were left on the footing on which they had been placed in 1819, viz., 10s. per cwt. above the West India. In 1830 this difference of 10s. was reduced to 88., which, in 1836, was altogether abolished in respect of sugars the produce of a British possession in India into which the importation of foreign sugar was prohibited, but retained upon sugar produced in other Indian possessions if imported from thence. Foreign unrefined sugar was, during the whole period of these favoured duties for colonial produce, taxed with high rates, ranging from 14. 148. to 3l. 38. per cwt., which totally excluded it, except in two or three years of great scarcity and dearness. In 1844 Sir Robert Peel's changes first took place. In that year he determined to effect a complete revolution in the sugar duties by breaking down the monopoly of the colonies, and introducing foreign sugars; by the 7th & 8th Vict. c. 28, July 1844, the then existing rates were continued till the 10th November of that year, and after that period the duty of 31. 38. and 5 per cent. charged upon all foreign sugar was repealed so far as regarded foreign unrefined

sugar, produced by free labour, which was admitted at 11. 148. per cent. and 5 per cent.; slave-grown foreign sugar being still charged at the former rate. The following year, 1845, a further and most important change of principle was introduced, by the adoption of a scale of graduated duties varying according to the quality of the sugar. Up to this period, all refined sugar had been charged with 81. 88. per cwt. without distinction of produce, and all unrefined had been subjected to one rate, according to the countries of its production. Considerable improvements had been introduced in the mode of manufacture both in colonial and foreign sugar, but the British consumer had been deprived of these advantages by the existing duties. In our own West India colonies, about the year 1833, a method had been introduced of boiling the cane juice in vacuo, by which a large, clear, and transparent crystal was obtained; but the Treasury decided, in June, 1833, that such sugar had undergone such a process of refinement as to render it inadmissible as Muscovado sugar, and that it was consequently liable to the duty of 81. 88. per cwt., which, of course, was prohibitory. In 1845 lower rates were introduced for colonial refined and candy, leaving the foreign still liable to the existing high rates. From the British possessions in America, Mauritius, and the East Indies, sugar equal to double refined was admitted at 17. 18. per cwt., not equal to double refined at 188. 8d. per cwt.; candy brown at 17. 68. per cwt.; candy white at 17. 158. per cwt., and unrefined sugar was also divided into two classes, " equal to white clayed," and "not equal to white clayed," still retaining the differential rates according to production, but with diminished protection. Then, in 1846, free-trade principles were unrestrictedly introduced into the system of sugar duties, by abolishing immediately the distinction for free or slave labour, making direct importation the ground for a lower rate, and by prospectively and gradually reducing the difference of duty upon colonial and foreign by annual diminutions, until, in 1851, all were to be placed on the same footing in respect of duties. This Act also equalized the duty on double refined and candy. These duties continued in force till the 10th of July, 1848, when they were repealed and replaced by new and reduced duties, instituted by the 11 & 12 of Vict. c. 97. This Act made one rate only for all refined and candy, introduced a further distinction of quality for sugar, not the produce of, and imported from, British possessions, into which foreign sugar was prohibited, under the title of "not equal to brown clayed," and like the former, provided for the eventual equalization of foreign and colonial rates by annually diminishing the difference till it disappeared in July, 1854. Shortly before this equalization was to take place, the Russian war broke out, and the increased expenditure rendered necessary by that event rendered also increased taxation necessary, and it was determined to raise part of the increased revenue from sugar. On the 9th of May, 15 per cent. was added to the duties then existing on sugar, and, subsequently, the Act of 1854 instituted the system which at present exists of one scale, graduated according to quality, but applicable to all sugars of whatsoever growth, and whencesoever imported. The rates then established were:-Refined, from 5th July to 2nd August, 17s. 4d. per cwt.; from 2nd August, 16s. per cwt.; equal to white clayed, not equal to refined, 14s. per cwt.; equal to brown clayed, not equal to white clayed, 12s. per cwt., and not equal to brown clayed, 11s. per cwt. In the year following, 1855, the extent of the war expenditure calling for greater resources, the sugar duties were again increased. I need not state to what amount. Then after the war, in the

year 1857, the following rates were fixed upon sugar:-Befined and candy, 188. 4d. per cwt.; equal to white clayed, 16s. per cwt.; equal to brown clayed, 13s. 10d. per cwt.; not equal to brown clayed, 12s. 8d. per cwt.: and those duties have been continued from that time to the present without any alteration for the last two years I think it has become an annual tax, and has been voted by Parliament every year. In 1857 they were made permanent till March, 1860, when they were again renewed, and have been since continued to the present time. In 1857 sugar was imported in considerable quantities in a state before unknown in this country, under the name of "melado," as it is called by the Spanish planters of Cuba. It consists of the cane juice defecated and boiled down to a certain consistence, when, instead of being poured into pans, and allowed to separate by granulation into sugar and molasses, and to free itself of the latter by draining, the whole is turned into casks, bunged up and shipped. In the course of the voyage the natural separation into sugar and molasses takes place to a greater or less extent, according to the extent to which it has been boiled. This melado has been admitted at the rate of 10s. 4d. the cwt., provided it contains one-third of molasses. Molasses pay 5s. per cwt. I have a statement here of the quantity of cane juice imported into the United Kingdom: in the year 1861-it was 125,000 cwt., and the quantity of molasses was 1,294,000 cwt. That was the importation; I have not got the consumption.

With regard to the French duties previous to 1860, duty was charged on sugars entering France according to three distinguishing rates for quality, viz., refined—unrefined, equal to the first standard; or unrefined, inferior to the first standard; but by the law of May, 1860, the duty was charged only on refined and unrefined; the rates were then very considerably reduced, and were further reduced in 1861, when they were on sugar not refined and not equal to refined from French Guiana, and other colonies in America, per 100 kilos., 22 francs, or 9s. 2d. per cwt., in our money, with a navigation surtax of 20 francs, or 16s. 4d. per ton of freight for the 1000 kilos.; then from La Reunion, from Bourbon, the 100 kilos., 19 francs, or 78. 11d. the cwt., and 30 francs, or 25s. per ton of freight for every 1000 kilos. From India, in French ships, by the 100 kilos., 30 francs, or 12s. 6d. the cwt.; in foreign ships, 32 francs, or 13s. 4d. the cwt. From other places out of Europe, in French ships, 30 francs, or 12s. 6d.; in foreign ships, 32 francs, or 138. 4d.; from entrepôts, in any ships, 32 francs, or 138. 4d. ; and refined from French Guiana, and other colonies in America, 24 francs 50 centimes, or 10s. per cwt., and 20 francs, or 16s. 4d. a ton, of freight for 1000 kilos. From La Reunion, 21 francs 50 centimes, or 9s. a cwt., and 30 francs, or 25s. per ton of freight. From England, in French or British ships, as per treaty, 41 francs per 100 kilos., or 16s. 8d. per cwt. From all other places prohibited.

36. The duty, then, is combined with the charge in the nature of freight; but in the trade between England and France that is not imposed in conformity with the terms of the treaty: it appears that the duty on the refined sugars is 16s. 8d. between England and France, in round numbers, and 13s. 4d. on the unrefined.

The combination of the charge for freight with the charge for duty render it difficult to draw a comparison with regard to the absolute rate of duty. The surtax, called "Surtax de affrêtement," is not the charge for freight, but a protective duty for the flag. Sugar from foreign countries is charged with one rate of duty, if imported in their own ships, and with