The Northern Daily Times.
Liverpool, Merseyside, England, 1857-01-07 00:00:00

DIRECT VERSUS INDIRECT TAXATION.

A letter to the president from Sir Charles Grey, dated
St. Germain-on-Lave. Dec. 30th, 1856, was read. In it
Sir Charles stated that ho had read in Galignane s
Messenger, copied from the Times of the preceding
Friday, the address of the association on the present
agitation against the property and income tax, and that
it was with the liveliest satisfaction he saw, for the first
time, some prospect of the legislature being called upon
to take into consideration a measure which he has long
contemplated as the most universally benefibial which
could be adopted by governments, and which England
alone, perhaps, is capable of being.the .first to curry into
• practical and complete execution,• Sir Charles says, that
more than a quarter of a century: ago :he stated his
opinions on this -subject to • Lord; William Bentinck, in
India; 'and .that' in his official correspondence as a
colonial governor, he frequently referred to it, and gave
'indications of such parts of the plan as hi) thought might
.be harmlessly pravosed. He speaks of the danger and
difficulty attendiug the introduction of-novel schemes of
taxation, in a country where a depression of less than 1
per cent in the price of funds is attended by a temporary
loss of se reran]] illions pounds sterling : but, he says, he
has ne doubt that the substitution of a property tax for
all other taxes is a practicable measure, and he thinks it
capable of demonstration that if the minds of people
were once reconciled to it, the results would be beneficial
to an extent which cannot yet be' onceived. Sir Charles
further declares, that he shall be anxious to, promote
this grand inovation whenever satisfied that progress
could he made without mischief, and he enquires whether
there is any hope of the great commercial community of
Liverpool being reconciled to a plan which, if fully
carried out, will require that every one shall be prepared
to exhibit, annually, a schedule of his estate and effects
After discussion, the secretary was instructed to con-
vey the thanks of the council to Sir Charles Grey for his
valuable communication ; to express their gratification
on finding their views endorsed by so high an
authority; to info7m him that they would feel greatly
obliged to him for any suggestions, or a sketch of the
principles advocated in the official correspondence
alluded to ; and to state that though merchants familiar
with the working of the Custom and Excise Duties, and
other persons who have studied the effects of indirect as
compared with direct taxation, may be prepared for the
change an'l for the measures necessary to give it effect,
the council are apprehensive that if the whole community
of Liverpool were polled the result would be very different.
A petition, emanating from a London association,
against the property and income tax, which has been
sent down to Liverpool and other towns, was handed in
from an agent in attendance, who requested the signatures
of the council. The petition having been read, it was
decided that, whilst fully concurring in the allegations
of unfairness and injustice against the present t..x, the
council considered it, with all its faults, incomparably
the least of two evils —the other being a continuance and
increase of taxes on trade and industry ; and, therefore,
could not give any sanction to such a petition.

A second address to the commercial and industrial
classes, deprecating the present agitation, and urging the
consideration of sound fiscal principles, was read, and
discussed at considerable length. In the course of the
conversation it was suggested that America was in a con-
dition to make this great experiment at once. The
reply was that already throughout the union the state
taxes were raised by direct taxation, and only the federal
taxes by duties on commodities. It was the custom
house which gave patronage to the government and
enabled it to squander public money, without that strict
check upon it which would be exercised if the federal
as well as the state taxes were levied directly. The
publication of the address. which is intended for the
Times, was deferred for a day or two.
These discussions occupied so much time that the
reading of numerous letters from various parts of the
kingdom, elic,ted by the first address was postponed
till the next meeting. It may be however stated, in the
meanwhile, that the writers, some of whom awarded
subscriptions, and requested to be enrolled as members,
expressed their hearty concurrence in the views of the
association, and only one of them found fault with the
address, he being of opinion that it ought to have
included a. denunciation of the bank monopoly —the
advocacy of a paper currency and a silver standard, and
various other matters, which he considers of essential
importance, but to which it makes no allusion. Another
trad.eanan of Torquay, writes most enthustically in
favour of the projected change, and declares that the
working classes throughout the country ought to band
themselves together as one mau in order to bring it about.