The System of National Finance

Cover The System of National Finance
The System of National Finance
E Hilton Edward Hilton Young
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It was not until at least a century after the time at which Parliament established its right to 148 NATIONAL FINANCE appropriate that it woke up to the inadequacy of a formal appropriation to secure its purpose, unless it exercised some control over the actual expendi- ture. During the first half of the nineteenth century it was becoming clear to financial reformers that the active enforcement of the appropriation of grants, even after they had been released from the control of Parliament for t...he use of the spenders, was a necessary coping-stone of the structure of Parliamentary control over finance. The financial genius of Gladstone gave the principle clear expression. " It is undoubtedly the business of the House of Commons, " he said, "to be responsible, not only for the inception of all public expenditure, but also to follow money raised by taxation until the last farthing is accounted for. " ^ The lesson had by then been learnt that to sup- port the power of Parliament in money matters it is necessary that Parliament should not only direct how the money is to be spent beforehand, but should see that its directions are carried out.

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