The Sun.
London, England, 1852-08-07 00:00:00

secured to our own colonial fisheries by the treaty

of 181 S.
CHROI‘.TICLE.—The, speeill burdens which re
sail to be imposed on the land consist of tithe, land-
tax, county-rate, highway-rate, poor-rate, and
church-rate. The alleged effect of certain indirect
taxei in increasing the cost of agriculturel produc-
tion may most conveniently be considered separately.
We have already disposed of the supposition that the
cost price of corn or cattle can be increased, or the
property of the landowner diminished, by his joint-
ownership with the recipient of the tithe. Mr. Dis-
, raeli's territorial constitution must at least secure the

.
rights of all who possess a share in the soil; and the
landed aristocracy can certainly not be entitled to
compensation for the circumstance that their good
fortune has not given them the undivided ownership
of all the real property in the country. The land-tax
was imposed, as is stated in evidence before the Com-
mittee of the House of Lords. under the Act of 4
William and Mary. According to Blackstone, it was
a mere commutation of the periodical subsidies and
2ssestments, and of the more ancient scutege, hy-

dage, and talliage. However this may be, it is clear,
as Lord Monteagle observes in his Report, that pro-
perty has now, for more than a century and a half,
been purchased or inherited subject to this impost.
The occupier is, of course, entirely unaffected by the

small per-centege levied on the owner; nod, in com-
mon with all other deductions from the rent, the land-

tax is entirely unconnected with that cost of produc-
tion which Mr. Disraeli has undertaken hereafter to
diminish. The original inequalities in the assess•
ment of the tax have, so far us individuals are con-
cerned, being practically corrected by the lapse of
time. Sir J. Sinclair, as quoted in the Report, attri-
butes the inequality of the returns to the various po-
litics of the owners at the time of the Revolution,
Those who were attached to the new settlement
showed their zeal for the Government by rendering
true accounts of their property, while the friends of
the banished dynasty estimated their possessions at
the lowest possible rate. There is a certain difler-
ence—though it will not be found to bear upon the
claim for compensation—between the charges which
we have thus tar considered, and the variable burdens
or rates which are levied on the land. Tithes and
land-tax must be paid without regard to the objects
to which they are destined. The proprietor is liable
for the payment of a definite sum, and not for the ac-
complishment of any public purpose. Tne overthrow
of the Church Establishment would give him no
right to the tithe ; and so long as the State raises
any revenue from its subjects, the land-tax must be
either paid or redeemed. The local rates, on the
other hand, are merely the methods by which the
community meets certain necessary charges. If
funds were provided by private endowment, or by
foreign tribute, for the maintenance of the poor, of
the roads, and of the prisons, the rates raised for these
purposes would no longer be levied. Yet it is an
error to suppose that, except in the case of some
sudden pressure, either poor-rate or county-rate in
any degree affects the cost of production. Mr. Dis-
raeli has borrowed a phrase from economical science
for the purpose of concealing the purely political
objects of his proposed re-adjustment ; and his
opponents cannot do better than take him at his
word, by offering to relieve production from any bur-
dens which oppress it. They may be certain that
at least the rent must be exhausted before the rates
can increase the cost of growing corn or of breeding
cattle. There is no reason why capital should be less
profitably invested in the cultivation of a farm, paying
nineteen shillings in the pound for rates, than of one
absolutely exempt from taxes. Whether the landlord or
the taxgatherer receive the rent is a question entirely
immaterial to the occupier, provided the average bur-
dens remain unaltered during his term of possession.
The usual rates and taxes are the first deductions
which an intending tenant makes from the gross value
of the land, when he calculates the rent which he can
afford to pay. At the expiration of exiting leases,
every farthing of reduced taxation would go into the
pocket of the landlord in the form of augmented rent.
The distinction between imposts which unjustly
affect individuals or classes, and those which in-
jure the whole community by impeding the pro-
duction of wealth is of the highest importance.
The Chancellor of the Exchequer, for rhetorical
purposes—or, perhapa under a misapprehension—
compares the relief which he proposes to afford the
landowner with the removal of duties from those
raw materials which are required by the manufac-
turer. It would be scarcely possible to compare two
fiscal processes which have less in common. A tax
on cotton wool tends to divert capital from a particu-
lar branch of industry, and the removal of the duty
benefits the cotton-spinner by extending the sphere of
his operations • but the manufacturer's profit is not, like
the rent of land, a fixed sum subject to certain definite
burdens. If he buys his materials more cheaply, he
probably lowers the price of his finished goods, de-
riving increased profit only from the receipt of the
former per-tentage on a large amount of produce.
The chief gainer by a reduction of duties on raw ma-
terials is the consumer, end the national wealth is in-
creased by the relief afforded to productive capital.
The different tendency of a tax upon rent may be
illustrated by an extreme case. A duty of five
hundred per cent. on cotton wool would annihilate
the cotton manufacture. On the other band, an
absolute confiscation of all the landed property in
Great Britain would not necessarily or directly di-
minish the national wealth by a single shilling;
and certainly it would not add the smallest frac-
tion to the price of a quarter of wheat. Accord-
ing to Mr. Disraeli's theory, such a measure would
render agricultural production impossible. It is for
him and his adherents to show how the change of
ownership could affect the application of capital to
the soil ; yet, until the rental is absorbed, all rates
and taxes on the land only amount to partial inter-
ferences with the ownership. No landlord really
thinks that he would let a rate-free farm on terms
more advantageous than those which the tenant can
secure at present. Still less does the farmer propose to
grow or to sell his wheat cheaper under Mr. Disraeli's
promised system than he does now. In their private
affairs, men seldom make gross mistakes in political
economics. There is certainly no reason why land-
owners should be more exposed than any other class
to fiscal injustice. But their claim to relief on the
ground of non-possession of tithes might equally
well be set up by any other section of capitalists.
The fundholders—although not like their landed
brethren, the constitued agents for collecting the
tithe rent-charge—have at least as good a right
as the latter to complain that they have
no share in the property which is distri-
buted between the Church and the lay
impropriators. If every change of value were to
lead to a re-adjustment of burdens, the repeal of the
corn-laws might give the tithe-owners some pretext
for raising their demands on the land ; for a perma-
nent diminution in the price of corn is equivalent to
a depreciation of the currency in which the rent-
charge is paid. The landlords will certainly do well
to adopt the advice of one of their number, and to say
nothing about the excellent bargain which they have
made. It happens that, in the matter of the land-
tax, there is a real anomaly, which Mr. Disraeli has
unaccountably overlooked. The tax was originally
assessed on personal as well as on landed estates,l legally
it was only in 1833 that movable property waasr eage
wey
exemp ed from its operation. In
tthhea
that year,
learn from the evidence given before
Com-
mittee, personalty contributed and Landis paid 381 the
elranthis head 5,000/.
to the revenue. The Bank of_
mcoivanstteyr and
tthheecCithyanofcell'oersot-f
onfotWaarswinigckle
fla6rst.h
i6actg..,
the Exchequer proposes to do justice to the land by on personal property, the
restoring this heavy burden
question will arise whether the necessary machinery
of collection can be provided on sufficiently econo-
mical terms. It is not likely, however, that much
will be heard of the land-tax. A large portion of it
has been redeemed, and the remainder is trifling in
amount. It is on the rates, which we have not yet
discussed in detail, that the weight of the argument
must rest.
DAILY NEWS.—Amongst the items contained
on the credit side of the Bank accounts, issue de-
partment, there are two—" Government debt,
11,015,1001. ;" and " other securities, 2,984,9001."—
making together exactly 14,000,0001. The latter
consist of Exchequer-bills or other Government
paper, and represent Government debts just as much
as the first item. Oa this 14,000,0001. the Bank is
authorised by law to issue notes to that amount,
without having any
other capital or any other wealth
to redeem them. That the state which creates these
paper securities should regard them as equivalent to
money is to be expected ; but the whole community
so regards them, and relies on the pledge of the State
to pay the 14,000,000/., or the annual interest on it—
which is, for all useful purposes, the same thing—as
sufficient to redeem the Bank promises to pay to that
amount. The Government pledge, and the Bank
promises founded only on it, have all the purchasing
power for which men desire to have money. Gold
and silver, though very beautiful when manu-
factured into coin, are not desired for their own
sake but for what they will buy. Men like to pos-
sess them as a means of purchasing at any moment
the other things they may need. The essential prin-
ciple of money is tnat it will buy other things, or
has a known purchasing power. It has no value or
use in the past, only in the future. But a debt of
the Governtnent to be paid at a specific time, a por-
tion of which can be transferred from hand to hand,
though it want, the flame as a doubloon or an ingot of
gold, some of the conveniences of small coin, answers
all the purposes of money. Like gold itself, it is
coined or divided, and the debt of the Government
to the Bank becomes small bank notes, an extremely
convenient money. The Bank of England is not the
only body which coins the. large debts of the State
into small promises to pay. Al! the private banks of
issue keep only a small quantity of cash in their till,
and the bulk of the property they possess, on which
they rely to redeem their notes when presented, con-

------------ ,_
slats-----...-
_tit of Exchequer-bills, India Bonds, or portions of
OS, edelos, or securities hearing interest. The means
.nt
circulation redeeming
the bask cf the Bank of Erigiand notes
I,,ert shows that about two-thirds of the pro.
other,T,has well as the bulk of the property on which
ankers carry on their business consists of ra-
tionals,bil. debts. tine general confidence in the continued
stability of Governments gives to their promises all
thata purchasing power which is the essential attribute
of money. Gold and silver, in fact, now form only a
very small portion of the money of the world, and a
much larger portion is formed of those paper oblige'
hops, in the purchasing power of which men have
the same confidence as they have in the purchasing
power of gold and silver. Like cash in the purse,
they are a guarantee against want. Not
er
only ere
they considered valid in our community, but in
evi
civilised community they are recognised and a
arefreou Ilnd
e'
gotiable. For !raking large payments they
more convenient than gold and silver, a are eta'
rid
ployed in adjusting heavy acccuuts, whether the
parties to them live under the some or different Ge'
v:
vernments. A transmission backwards or for
of American bonds or French renter, made b,V •iacll-
duals and on icdividual account, serves as well al
sending gold and silver to adjust what is
called
the balance of payments between nations. Titer®
is nothing new in the remark that the bul' -
the actual currency of the civilised world consists
of paper ultimately redeemable by plYments gutsci
ranteed by different states or by individuals, lee,
that only a small portion of the purchasing or PP%
power in use consists of the precious metals. l'neeret
1 is much, however, to be wondered at in the fact, tu."
the discovery of gold in California and Attsll•sll4'
adding a few millions of pounds ster'ing
Wile currency of the world, to th emeci
ahsolate iai:
alarm amongst those who have seen with
wore mi
difference the creation year after year of
lions of state debts than all the bullion of the world d
discover
can equal, and to which all that has been
on the shores of the Pacific is a mere driblet. Almost es
instsnei.
keeping pace with production, and in some
surpassing it, the Governments of Europe have int jt,
excites up'prehension an
tiplied the instrument of future purchase Witrh°,ll" eil-
cliiting the least alarm, but no sooner are a le" 13,31ey
of
fonhs of pounds sterling of gold added to the cartelej
class,
e world than men of science and the reeled
ss, and particularly the debt creators, ar,ehie de'
rifled at some unknown, undefined, yet PV'"',", oer
preciation of the standard of value. I\° 61°0'
does Nature provide in a small degree for t'e I
crease of the currency, -which tat tree ebellnoker '
and ethers, are continually doing,s ei'thou't rie:ivago
exactly whet they are about, than they, svil°„,7; ill
their own. wisdom and exertions, fancy confidence in Nature, and unbounded conPue—efill
society 00
fall to ruin. The source of the alarm is abaavecirrt°ol3eposei
supposition that states and individuals
their debts, and make all their purclaases, Withwith
precious metals. In fact, they do not assures or
them ; the gold and silver serve only as 5,7 all
counters,th and states, as well as individuals, buy al,
they want by services or commodities, alveegs•
mately pay all their debts, or redeem all their °." oe
silver e a
tions, by the same means. The gold and
like a pint pot or a pound weight, and raen,seu: foit
weigh and determine the value, without PaYl7d for
all the beer or beef that is consumed. It 15 p-ct, ali
by other commodities, or by services. It is now eot
established principle, that onl services can Piitjonli
services; that labour of one kind; r another boo
was, as Adam Smith says, the ony original rig 03
of time, the only
money, but it continues to be, and will be tong t"tfor till
means of buying and pays of
things. The value of all comroodities eve ° bay bee,
depends on the labour vested in them.' This '11; otice
fully established by Mr. Ricardo and other icorio•
mists ; but it is also implied in the fundanieatts' to is
ciple of the " Wealth of Nations" that all viehllo 'rtot
long periods pays all
the produce of labour, and that labour within -e aai
commodity in proportion to the desire for it' ~,`",es its
law of supply and demand, certainly detetall'iot of
price. The quantitY °,,r the
selling price, but the precious metals, on aece°,-rtia
their indestructibility, the facility of tra°,sr„-,ed ia
them, and their being almost universally (iii-esluet
nse, are far less subject to variations in thetria,oo
from a change in tueir quantity, than most, -, sur,
substances. More permanently influential the 'pal
ply and demand, the cost of production is IT,, eV
regulator of the value of all commodities reotbe
change. It is not—to illustrate the prineiP' cloth
immense quantity of cotton
now annually produced, which has caused the get, 0
fall in the price of these two articles, scYrignid of
yarn and ec'ttni3 rest
the lessened cost of producing their 11 re s"-u-PPilai
newly-invented machinery. Variations in
prices, direct labour to rod temporary more
variati°nsf al
and demand causingor less ° 11d;
Prodneeto
commodity, and influence thtle''qtintities
but price and value are ultimaeteltideterrar'ed !Ides:
ITibour and trouble necessary to pyroduce con:0.'0100
he relative price between silver and gold' 0 by
varies very little, is determined, as 13 well ha°waa'ta'
the cost ot procuring silver and gold. The ,ese,ra sr
tion from some gold having been lately four soul
eievotticl
patently little labour, that the relative prieeae f 0
be altered, shows the principle at issue ;
is that the expectation has been disappointed, °ender"
therto the relative price of the two metals hes end
gone very little variation. Nevertheless, the opine
or
that the value of gold in exchange is detereni°
'apply tO
elusively by quantity and the relation of the for tbet
the demand, continues to cause great Oa° nig facv
future reduction in the value of gold. The e-oesitir
is the 03eli
which at all justifies the apprehension
which took place in the value of the Preeeilsrit iti
after the discovery of America. In tile:etroclac""a
stance, the great quantities then introduce"
ail
into Europe were obtained by PlllO-:er; 90;
after the supply from that source wase°'-sidaoa-
both metals were only got by diligent ant' esde lot 11
exertion, the price settled and continued thatsteady 00
very long period. Ir, is generally supposea 0,, the
the difficulty of obtaining the precious Ipet+iitaftet
price rose from the beginning of this centurYt 'ere oh'
but too bi,
tbe increased supplies of gold from Russia *cot itaer
tamed on easier terms and increased stiPPleiese, talluere
from America were Obtained by in3Pre,vi„-,,- etiti lf
gical processes. Admitting that a scaa" `i-eaellr We'd
gold bas been latterly obtained at a °°lniifidissr,
little cost though, when the rums eie„btfta
—still, it is so amall in proportion
way be don bole
pointed diggers is considered, that
t° the
snieli
quantity in use as money, and so inconceivable' 0'
in relation to the whole currency of the
which must be affected before andardbl:
altered—that it can have only can iflaile-bereL
influence, it any, on the value of gold. 'of t.
at present no probability that the productie° osta°
has been
—ion::
precious metals will be facilitated as ron.cl3thei are
only obtained by much and arduous toil. nie pri.af).
production of food and clothing, and novi4o:, 09'
as our conclusion, therefore, that the cost el le to
duction of gold in large quantities is not likel.'rettea;
much and rapidly diminished, and that the 90;0 sto°.
some wr:ealall9l'
shiyonasomenetGerotvaienrendolbeyottsh, ethpautbalirca, bidy
de
reciatio,
.tber
P Prranted I)" t°
take place in the value of gold,
believe that its future
theory. '!'here warrant
no rees°Pcli'
minished, or that we shall have to seek
by facts nor sound
of civil. purchasing pcoVe v'ther VogtP
sure of value than that which ifirlsvr°°l/r9let"°cltirf33litbil
considerations affecting frora, of
from the beginningjeisa. civilisation. o -atikraise/
opportuniteereif
view to which we may tekegis another
adverting. aOurselves with fed
Now we content that the toi
warning our readers not to conclude
important consequences which we have 11dveartore ;
resulting from national deboa which the ere-, Jost"'
athem neither willed nor comprehended, are any
cation of contradiCting them.

etileUt
IMPROVEMFNT OF THE SEVERN.---!iropr)r;everl
favoured with the sight of a prospectus for tlw," the "nog°
of the Gloucester anti Berkeley Canal, arid ,ost tc)" Ole
'ect
below its outlet, so as to admit vessels of the thl3 Obi
to the port of Gloucester. To acconipllib three,„vrio
canal is to be extended, so as to have its out the eo,r coitY
lower down the river ; and the promoters of, tbe s'`c t
baroc 103
have undertaken to remove those hindrances snct 0 .0 al A
of Gloucester which impede the navigation 81) ertiti° vise"
provement higher up. They also promise cc°l)sl be detirir
the Severn Commissioners in measures which crer tbeiff„Jr thet
for rendering the navigation improvement t'„np-aalsite,„cd tbil'
diction effective and complete. The outlaY'-iidersi-,oo‘
purpose is estimated at a million ; and it is enders
theu". 9 tie:
the joint-stock company through whose gen iider tu-
contemplated will be ushered into the world l world' mirelf d
tion of very eminent names in the commerel3 5, be 56: jor
general co-operation of interests and partie! ciboronra 0'
in right earnest, the greatest obstacles to t'',e
provement of the Severn will be got rid 0' WO 'ben'
terests and opposing
courage the proposal of a broad and comPtebae,nood 00'
parties have hitherto con3sio sco,
for developing the full capabiltties of tbe 0' este'
lish rivers. We shall rejoice to learn that
...Jorc
given place to cordial union and • t acti°a'
and conjoin
Chronicle.