The Sun.
London, England, 1853-05-03 00:00:00

of stock, why add to the misfortune of a suit in equity
such an injustice at this Their lordships might be sure
such a measure would cause immense dissatisfaction and-
heartburning ; and he would say that he had passed days
and nights in attempting to facilitate the course of jus-
tice in the Court of Chancery, and that he could not but
feel that all that time and trouble would be utterly
thrown away, if an attempt was made to deal unjustly
with the funds of the suitors.
Earl GRANVILLE was obliged to the noble and
learned lord for his suggestions. This part of the mea-
sure was, no doubt, experimental, to see how the wind
blew on the Stock Ex.change ; and some slight alterations
might be rendere,l necessary.
The bill was then passed through committee, and
The house adjourned at half-past eight.

most uncommon proceeding on the part of a Chancellor of
the Exchequer." But, great as was the indignation _of the
members of the present Government, because ',had recourse
to the first method which was necessary to carry out my
policy—namely, that I should create a deficiency and
supply it by new taxation, their indignation was still
greater that I should presume to anticipate the manage-
ment of our finances for a period more advanced than the
termination of the impending financial year. (Hear, hear.)
I may quote upon this subject again the words of the hon.
member for Kidderminster, because, as he has shown to-
night ho is not only an honourable member, but a very
high-minded member. (Laughter.) He has told us to-
night, that he is one of those gentlemen' who never will
sacrifice anything for ephemeral popularity—(Hear, and a
laugh)—that he is a man who would not to-day say one
thing and to-morrow say another to gain temporary ends.
(Hear, hear.) Listen, then, to the words of the hon. mem-
ber for Kidderminster, and I quote his] speech, for it was
a single speech, and one that received a memorable reward.
(Cheers and laughter.) Mark, that in order to carry into
effect a complete revision of our financial system, it was
necessary to have recourse to two proceedings—the first
was to create a deficiency by the remission of taxes, which
could only be supplied by the proposition of others ; and
the second was that a Chancellor of the Exchequer engaged
in such an enterprise must' not shrink from attempting to
control the financial management of more than the financial
year. That, however, was not the opinion of the Secre-
tary of the Board of Control. He said,—
" The right hon. gentleman" (my humble self) " had given
them two budgets to consider ; one for 1853, the other for
1854. The wisest man would have enough to do in attempt-
ing to arrive at a correct view of the financial condition of a
great country, even for a single year."
(Cheers from the Opposition). But now we have a budget
for seven years—(prolonged cheering from the Opposition
benches)— and, not content with this—not content with
regulating the commercial arrangements of the country
for seven years—the Government accompany that measure
with financial propositions that fix the rate of interest for
nearly half a century. (Cheers.) Really I think this is
rather a remarkable contrast to have occurred within the
space of four months in the opinions of a statesman who
would not say one thing to-day and another to-morrow for
mere ephemeral popularity, the only difference being that
the economic gentleman who was the member for Kidder-
minster four months ago is now Secretary to the Board of
Control. (Laughter.) Hon. gentlemen will doubtless ex-
cuse these frank comments. I make not these quotations
by way of taunt. (" Oh !" from the Ministerial, and cheers
from the Opposition.) I have a perfect right to make the
quotations, and I am justified in making them, to vindi-
cate the course I took on the occasion to which they refer,
(Hear, hear.) Well, then, having given my approbation
to the general principles on which the Chancellor of the
Exchequer's financial scheme is founded, because, I have
before observed, it is, in fact, the identical process by
which I myself attempted to operate (" No, no," from the
Ministerial, and " Hear, hear," from the Opposition
benches)—the process is the same, though the application
is different—(hear, hear)—l have now to see whether I van
bestow the same approbation upon the application of the
principle as I give to the principle itself. I come first to
the consideration of the first resolution before the com-
mittee, to which an amendment has been proposed by my-
hon. friend the member for Hertfordshire. The Chan-
cellor of the Exchequer, by this resolution, proposes to
continue the income tax for a term of seven years. It is a
tax which has never, in our time, been proposed for a
period of that duration. (Hear, hear.) The Chancellor of
the Exchequer objects to provisional budgets—he objects
to our finances being in a condition which is not esta-
blished and confirmed—he thinks that no arm of our
finance should be of a temporary or doubtful character.
There is a great authority, I am told, just published,
which seems to express the same opinion. This is the lead-
ing article of the Ecortoinist newspaper. (" Hear, hear,"
and laughter.) It is headed " The Budget, its Great Poli-
tical Feature ;" and it informs its readers that " Nothing
can be more disgraceful to a great nation, or injurious to
its best interests, than to permit its financial condition
to be exposed to serious uncertainty, which has pre-
vailed in this country, at least since the expiry of the in-
come tax in 1851. Since then more than 5,000,0001. of
the necessary income of the country have been subject to
an annual vote." This, then, is the great political feature
of the budget, to terminate the dangerous and pernicious
system by which so large a portion of our income as
5,000,000/. is dependent on an annual vote of this house.
What new lights break upon us ! Perhaps I may remind
the committee--although I confess that until I heard the
Chancellor of the Exchequer, and read this authority, I
should have thought it unnecessary to do so—that at no
very remote period—no longer, indeed, than when, I first
entered this assembly, a large amount of the annual re-
venue was always under the control of Parliament, and
subject to an annual vote. (Hear.) But what is more ex-
traordinary still, this state of things was held by high
constitutional authorities to be one of the securities of the
rights and liberties of the people. (Cheers.) The system
was then highly valued by all gentlemen professing liberal
opinions, not only as the safeguard of popular rights and
liberties, but also as the best security for an economical
administration of the finances. (Hear, hear.) The sugar
duties were voted annually in order that Parliament
might have a control over the annual revenue of the
country. (Hear, hear.) In amount, too, the sugar duties
were little less than the income tax, which we are now dis-
cussing. (Cheers.) Why, it was only at a very recent
period that the Minister of the day, having to deal with
the sugar duties, took the opportunity of appealing to the
house, on account of the question of slavery to concede that
those duties should no longer be dependent on an annual
vote and entered into a compact with the house to substi-
tute for the amount secured by those duties an equal sum
to be subject to an annual vote of the house. (Cheers.)
Who was that minister ? The committee shall hear. On the
20th of July, 1846, the house resolved itself into a Commit-
tee of Ways and Means, like the present, and Lord John
Russell spoke in these words :—" I do not propose to vary
in any respect the constitutional practice of leaving a large
a considerable amount of revenue, dependent on a yearly
vote of .this house, as hitherto has been the case, I shall
therefore propose some other source of revenue, which I
will state before these resolutions are formed into the
shape of a bill, to be yearly income, and for which, pre-
vious to the sth of July, the minister of the Crown shall
every year be obliged to ask the consent of parliament. I
think that it would be unfortunate that the duties on sugar
should be made the annual subject of debate, and, without
departing from a constitutional practice, I shall endeavour
to find some other duty, which it will be less objectionable
to take as an annual vote." (Cheers.) The noble lord,
who will probably follow me in debate, will, perhaps avail
himself of the opportunity to inform us what is the branch
of public revenue which, in conformity with the promise
then given, he has provided for the annual decision of Par-
liament. (Cheers and laughter.) The noble lord, however;
on a point of constitutional practice, speaks with the au-
thority of a master, and he is bound, before the committee
shall come to a vote on the resolution submitted to it, to
explain upon what grounds he supports a proposition ad-
vanced for the express purpose, as was avowed, of setting
aside the " constitutional practice of having a considerable
amount of revenue dependent on a yearly vote of this
House." (Cheers.) We have been expecting every year
that the noble lord would produce the tax over which Par-
liament should exercise the control declared to be so valu-
able in a constitutional as well as in an economic point of
view ; but we certainly did not expect to be told that
the enjoyment of this great constitutional privilege was a
fiscal enormity—(cheers and laughter)—we did not expect
to be !told that when, by accident, an opportunity oc-
curred of dealing with a branch of revenue, equal
in amount to, but not greater than the sugar duties, if we
exercised our power in this respect we should endanger the
finances and expose the country to danger. (Cheers.) So
much, then, for the Chancellor of the Exchequer's first
proposition to renew the income tax for seven years on the
ground that it was desirable a large branch of the national
revenue should not be dependent on an annual vote of Par.
liament. I differ from the right hon. gentleman ou that
point. The late Government having to propose the con-
tinuance of the income tax, indicated that the period
should be three years, in deference to the precedent which
had always prevailed ; but, if we had to chose between a
period of seven years and a period of one year, I should
vote for the latter. (Hear.) What I wish to impress on
the committee is, the error of these new fangled doctrines
—that it is dangerous to have a large amount of revenue
dependent on the annual vote of Parliament ; for I believe
that if we regained the exercise of the ancient constitu-
tional privilege from which we have been too long de-
barred, it would be in the power of this house to ensure a
better and more economical control over the finances.
I come now to the second part of the Chancellor of the Ex-
chequer's proposition respecting the income tax, and that
is with regard to its assessment. The right hon. gentleman
proposes not only to continue the tax for seven years, but
also that no difference shall be made in the mode of its
assessments. Perhaps the house will not think it imperti-
nent in me if I take the opportunity of explaining the
reasons why the late Government fixed on the rate of as-
sessment which they recommended the House of Commons
to adopt. Remember, I have never had an opportunity
of expressing my opinions on this matter. Our vote for
the income tax never came before the house. In deference
to the feeling of the house, I placed the whole financial
propositions of the late Government before it, and the
income tax resolution was included among the others, but
I said, at the time, that I did not intend to ask for the
opinion of the Committee of Ways and Means on the
question until after Christmas, and that all I then de-
sired was, that tho house should be in possession of the
principle on which we proceeded. The noble lord the
member for London, when a candidate for a seat in Parlia-
ment lately, said I had declared I had not had time to look
over the schedules of the income tax. I suppose men may
say anything when they are on the hustings. (Cheers and
laughter.) Great license, we know, is permitted under
such circumstances, and therefore I should have made
no remark on that statement of the noble lord, had I not
heard it stated on Friday last, in sentences of solemn pro-
priety, that the debate on my proposition respecting the
income tax had confessedly broken down. Why, there
never was any discussion on the subject. I never said that
I had not looked over the schedules of the income tax ;
and perhaps those who make these assertions are not as
well acquainted with them as myself. (Hear, hear.) What
I said was, that between the time when I publicly an-
nounced the rate of difference we proposed in the schedules,
and the end of a week following, I had not had time to
refer to the practical authorities to make an adjustment in
harmony with the settlement we proposed, but that no
alteration that could be made would materially affect the
financial results which I had laid before the house. Let
me remind the committee of the circumstances under which
we undertook the revision of the taxation of the country,
the first steps towards which was the proposition I sub-
mitted to the house ; for I stated, at the time, that it was
not a complete system. It was our opinion that the taxa-
tion of this country unduly pressed on the interests con-
nected with the land. (Hear, hear.) That opinion we
expressed openly ; we had no wish to conceal it. It was
our opinion that after the abrogation of a protective policy,
the best mode of assisting a class subjected to unrestricted
competition was to lessen the cost of production, and we
mtwdh-iaetaiste
oanvtlweedec dot;
thought that that could not be done without a general
revision of the system of taxation. (Hear.) This policy
was openly announced ; nothing was hidden ; our object
despair
vandrr
were
hfp
publicly
attainingbmli eeal means by
announced.wouh irchobwjnenintended
(Hear,
ebanr t,
buetnoa
Ire!
st)
st attain
justice, we kneweeththate
desire that it should be. The
could. convince the country that our policy was founded in
itco uwnoturlydtnhoat our policy was just we
commence the revision of prinetipbleeaceef
uepntreeislirineotreddid
avowed view
was impossible for us to
com-
petition having it became my duty to
of
removingo our financial system with the
s unduetat
n th
e
it was impossible for us tcoalstus pressure
operations on land.
wh
ich wI
et
those measures into effect;
contemplated without the aid
against which so much of the income tax—that tax
opinion, in a great degree, so
mo u had been excited, and in our
opinion, having to revise the whole
excited. It was our
with the avowed purpose of relieving the
of our taxation,
undue pressure, that it was absolutelyg the land from an
come to the commercial classes with seine
necessary we should
what we really believed was the undue some exposition of
ticular tax upon them,
4,4
of
our willingnessthe trading,
to remove the
the com-

enereiale and, manufacturing 'classes. ' I make no contrasts *hom were born since some of tece great events of.
now—our. time ,is -too precious-e-between income derived 1 which we are treating. To them the right h
i
on. gentleman
from realized- prepertY-and incomes- the result of intellie-Lmay have-conveyed an impression that with the income
geace and skill. We have 110 time for rhetoric now; but tax, in addition to the ordinary sources of revenue, we
there is not a man in this house who has not contemplated produced a revenue equal to all the expenses of the war,
the question, and who is not ashamed by the contrast,. and yet with only a slight surplus pf expenditure—the'
whatever his opinion may be on the general financial ques- revenue being 65,000,0001., and the expenditure 67,000,000/.
tion,—and I appeal alike to the brain and to the heart of —or the reverse, I forget which way the balance was.
every man to come to a verdict of that kind. But I will New, if that were so, unquestionably the income tax
meet the question of the trading and the commercial would be that colossal weapon which he so justly described
classes—those classes connected with terminable annuities. it. But between 1806 and 1816, the year of the peace, the
I shall put before the committee in a brief and succinct right hon. gentleman forgot to say that although we had a
formula a contrast that brought conviction to my mind, revenue of 65,000,0001., meeting an expenditure of
and it is necessary to my argument, and in vindication of 67,000,0001., yet that there was simultaneously created a
the course I am now detailing, that I should place before. Vast addition to the public debt, and that between 1806
you briefly and clearly the considerations which led to our and 1816 that public debt had incresed from 600,000,000/.
determination. There is a man with 200001. which he.in- to about 840,000,000/. (Hear, hear.) Hon. gentlemen
vests in realised property. Well, I will suppose that he mina remember this, when they hear of the efficacy of this
obtains 8001. a year for it, being-at the rate of 4 per' cent. colossal instrument, that there was a deficit in 1814, 1815,
There is another man who has the same amount of capital, and 1816, of 91,000,0001. That was the state of our
who invests it in property perishable at the end of 20 finances. We had an increase of our deficit simultaneously
years—in silks, in machinery, or in annuities terminableett with the use of this charmed weapon, whose qualities the
that time. The one man who receives for his 20,0001. in- Chancellor of the Exchequer so ably dilated on. There is
vested in real property 8001. yearly •, the other receives for one other point in the income tax to which I must advert,
the said amount invested in perishable property at the end and that is its extension. Assuming, as I do, the perme-
of 20 years, or in a terminable annuity, exactly 1,4731. neat feature of this tax, I think that no class or
—6731. being the interest, at 4 per cent., that at the country should have been exposed to it without
end of twenty years will supply the capital which has a Mitigation of its injustice. But I must argue as if
perished. (Hear, hear.) Take that case—it takes in all. this tax will cease. And now I have to consider its
But how do you tax the two men ? You tax the man who extension to Ireland. The right hon.. gentleman the Pre-
owns the realised property at the rate of 24/. a year. and sident of the Board of Control (Sir C. Wood) said that I
you tax the 1,4731., which is virtually also realised pro- had proposed the extension of the income tax to Ireland,
perty, at the rate of 441. a year- And this is the system and that I did not propose a:measure to deal with the con-
which you are going to support,—(cheers)—which you, who solidated annuities. I must say, sir, that I see no
profess to be the peculiar representatives of the commercial connexion between the income tax and the consolidated
body, are now going to establish for a term of seven years, annuities. (Cheers.) I see no connexion between the
as you say, but, as I shall presently show you, most pro- incidence of imperial taxation and the results of' local ar-
bably for ever. (Hear, hear.) You are taxing the pro- rangement, and I, think it most impolitic, indiscreet, and
perty of those classes whom you are sent here to represent unwise ever to Mix them together. (Hear.) Sir, I have
nearly double the amount, and you do this while at the heard, not in the course of this debate, but of converse-
saline time you continue to tell us that you are doing so 'in tions within this house, of something like a compact rela-
the interest of the trading and commercial classes. (Cheers.) tive to the income tax and the Irish members. (Cheers.)
With these facts before us, with a conviction that the as- Now, of all, the men in this house, lam one who, perhaps,
sessment was unjust, we feel that it was absolutely nem- needed, less than any other to have a compact with any
sary in order to put the case to the commercial classes when Irish member as to the policy which I felt it my, duty to
asking them to agree to the continuance of the income tax recommend with regard to the income tax and the conso-
that we might carry out a revision of our financial system, lidsted annuities. Four months ago I had to consider in
with the avowed purpose of relieving the land from an Un- the responsible situation in which I was then placed, the
due pressure —it was necessary, I say, that we should ac`- . 'extension. of •the' income:tax to Ireland, and, after a ma-
knowledge the existence of inequalities' in the system of - tare consideration of the subject, we unanimously came
assessment of the income tax. We never proposed the to the conclusien, that it would be unwise and inexpedient
difference of 4 and of per cent, as a financial arrange- to extend it to, Ireland. We not only thought it unwise
ment. We offered it 'only as the acknowledgment of a to extend it to Ireland at the present moment, but for the
principle. (Hear, hear.) The right honourable gentlernan- considerable period which we proposed to Parliament to
the Chancellor of the Exchequer says that land is not intrust us _with this tax we had no immediate intention of
taxed more than any other property under the schedule; changing our policeein this respect. It was our opinion,
in which land and all real property is included ; and the., for reasons, which I need not give, but it was arrived at
right hon. gentleman further says, that when you take 'after ample and anxious consideration by the late Govern-
into consideration the burdens on land you ought to in- ment, that it was quite out of the question to extend the
elude all the local taxation. Strong phrases these from income tax to Ireland. Sir, I am prepared to support
the Chancellor of the Exchequer ! (Hear, hear, and & the same policy now that I advocated on the other side of
laugh.) Significant acknowledgments from, that side of, the table. (Hear.) It is not true that I was not prepared
the house, when I remember the five years during which I to make a proposition upon the Consolidated Annuities. I
endeavoured to press upon the house an acknowledgment
_say !that these two subjects ought not to be' mixed up with
that there were burdens peculiar to land. (Hear, hear.) each other, and that they have no necessary, connexion.
When I rememberethat I was told, night after night, and On `the contrary, I said, that I would take the earliest day
by no one more 'earnestly, more continuously, or more 'to anbrnit a resolution to the house on the Consolidated
consistently than by the members of the present Govera- Annuities. I said that, after I stated that the Government
ment, that the idea of. local taxation was a burden upon did
,not intend to extend the income tax to Ireland. The
land was a mere illusion, I say it is satisfaotore, to me to proposal I was prepared to bring forward ,with regard to
have lived to find on acknowledgment of its being true in the Consolidated Annuities was certainly not that which
the basis, to a certain degree, of the financial arrangement the right hon. gentleman has made, but it was one founded
before the committee. (Cheers.) The right hon. gentle- upon equity, which would, I think, have given complete
man the Chancellor of the Exchequer says there is a dif- satisfaction to all those who were interested in the affair.
ference of 2d. in the pound in the schedules between the I have now touched upon the principal points of the first
assessment of real property and the assessment of other resolution of the right hon. gentleman. I might stop here,
kinds of property. Well, sir, I will not stop to analyse but I beg the permission of the committeee-and I will not
the data upon which the right hon. gentleman has ar- abuse their indulgence—to allow me to express the general
rived at his conclusion, but he may be sure that he will opinion which I entertain with respect to the financial
be reminded of this conclusion before these debates are policy recommended by the Chancellor of the Exchequer.
over. (Hear, hear.) But, sir, I say that it was not Sir, I have one great objection to that policy. It appears
as a complete. financial arrangement, but' as the ac- to me that the whole of the financial policy of the right
knowledgment of a principle made in the spirit of con- hon. gentleman is conceived in a spirit of injustice to the
ciliation, that I made that difference in the schedules. land. (Loud cheers; Now, sir, that is a subject on which
We have now the income tax at a particular rate of assess., I have no wish to indulge in declamation, as the hon.
ment, but no certainty that that assessment shall not be member for the West Riding said of the Chancellor of the
changed. We have a Government that professes to deal Exchequer. lam ready, with the permission of the corn-
more largely with the income tax than any other Govern- mittee, to establish the truth of my opinion by reasoning
ment in our experience, and deals with it for a period of and by facts. And, as I plead for an interest which is
seven years. This is an ago of great financial operations. now surrounded for no artificial legislation—as I give you
Suppose next year a Chancellor of the Exchequer proposes credit for sincerely wishing that all classes of the comma-
to modify the rate of assessment—suppose that happens, nity should, so far as it is possible, receive from the Legis-
which happened half a century ago, when we are also ture, especially upon financia leubjects, justice,—l trust
governed by " All the talents"—(laughter)—supposing the you will listen to me with temper and toleration, and that
Ministry come down to the house, and propose to extend you will not permit the memory of ancient feuds to divert
the income tax to 10 per cent., what answer would it be to your minds from the facts which I shall lay before you.
the artist, the artisan, the merchant, and the tradesman, (Hear, hear.) Now, sir, I would ask the committee to
that the land was 2s. or 24d. in the pound more than they view for a moment the state of our revenue in its amount.
were ? If our arrangement had been established, they If you look to the last returns you will find that the ordi-
would at least have felt that if at a future time the impost nary sources of our revenue, deducting that income tax
assumed a severer and more burdensome character gene- which was only proposed as a temporary tax, and which as
rally, they, at least, must find considerable relief in the' a temporary tax is the basis of the financial scheme of the
change in the assessment. And, sir, I still maintain that Ministry—deducting that temporarytax from the ordinary
in coming forward to ask the commercial classes to grant sources of revenue, the revenue amounts to about
us the income tax, in order that we might carry into effect 46,000,0001. sterling per annum. This great country, with
a complete revision of our taxation, the object of which the most extensive commerce of modern times,—the most
was to relieve land from an undue pressure of taxation, admirable manufactures, governed by the great towns,—
according to our opinions, we were taking a prudent, a this country of progress raises an imperial revenue to the
wise, and a comprehensive course, which, carried out to its amount of 46,000,0001. sterling per annum from its ordi-
full extent, was one which would not have been fruitless. nary sources. Now,. let the house observe that one-fourth
We were told by those who had a right to speak with au- of that revenue is raised by a duty upon a single crop of
thority on such subjects that the plan we proposed would the British farmer. (Cheers.) The average of the united
not diminish the revenue, while it would most certainty duties that you levy, directly or indirectly, upon barley
give satisfaction
in the inequality of the assessment as respected the coin- show you how this system operates—how it must operate
mercial, trading, and professional classes, and we deemed under the financial policy recommended by her Majesty's
it our duty to endeavour to adjust the inequality, because Government. (Hear, hear.) You are called upon in
we were not asking them to grant the income, tax for the this scheme to deal with the tea duties. It ie unneces-
avowed purpose of relieving the undue pressure of taxation sary for me to say that that is a proposition which I can
on the land of the united kingdom. (Loud cheers.) Well, view with no repugnance ; I have always considered that
sir, the right hon. gentleman opposite now proposes to the tea duties, per se, were a most unwise impost, and
continue the tax, without any difference in the assessment, one which a Minister of Finance, at a favourable oppor.
for a further period of seven years. I may, perhaps, he tunity, and in a proper spirit, ought to deal with ' • and I
allowed briefly to state the reasons why I do not think proved the sincerity of my views by dealing with them.
that at the end of seven years the incidence of the tax will (Hear, hear.) I make no comment to-night upon the pro-
terminate. The first reason why lam incredulous is, be- position of the Chancellor of the Exchequer with respect
cause I see that the spirit of the times in which we live is to the tea duties : I believe that the supply is illimitable
• hostile to the abrogation of that tax. (Hear, hear.) I beg which China can afford us of tea, and therefore, though
the house to recollect the various aspects which the income I should have preferred my more prudent arrangement, I
tax has assumed since it was first brought under our am not terrified by the arrangement of the Chancellor of
notice by the late Sir Robert Peel. It was first brought the Exchequer. But if I were of the same opinion as the
forward to supply a deficiency, and in order that it might Chancellor of the Exchequer, or the member for the Uni-
assist in the creation of a surplus out of which the indi- versity of Cambridge, that the supply was limited, then I
root taxation of the country might be dealt with. It confess, if I were Chancellor of the Exchequer, I should
was continued again for the same purpose of creating a not feel as easy as he seems to be. (Laughter, and cries of
surplus, which should allow you still further to deal with " Hear, hear.") But understand what you are going to
the indirect taxes. Well, what is the ase at the present do. You are going to reduce the duties upon tea more
moment? It is no longer proposed, in 'order to create a than 100 per cent. ; you are going to bring tea into in-
surplus, tp enable you to deal with: the system of direct creased competition with those beverages that are prepared
taxation ; but you are gofer advanced that you must grant from the productions of the British farmer. (Hear, h.)
the income tax to support your revenue as at present It will probably become a substitute for spirits and beer
established; and to provide for your necessary expend!- produced from barley. (Hear.) Manygentlemen opposite
tare ; and you ask us not only to grant the income tax, say that they have no objection to tea or to wino becoming
but to lay on other taxes to the amount of nearly a substitute for spirits—for whisky, for gin, or for beer.
3,000,0001., for the purpose of dealing with the indirect Well, if that is the natural course of human affairs—if
taxation—(loud cheers)—and, considering the circum- that change resulted from a concomitant change of habits ,
stances which have occurred during the last 10 years, a and feelings and tastes in the people, he would be a very
man must shut his eyes to all that passes around him, and unwise man who should set his face against the change,
be incapable of perceiving the temper and the signs f the But, if that change is produced by the foreign products
times, the thoughts and habits of his fellow-men, if he can entering into competition with the English proucts, with
suppose that the income tax, having so well fulfilled: the the immense advantage of being taxed by half less, then
purposes for which it was established, will be abandoned— their substitution for the products of the British farmer is
he must be the most credulous of men if he can believe in fact not the consequence of a change of taste in the peo-
that we are standing still or retrograding. How can any ple, but of your fiscal injustice. (Hear, hear.) And that
man suppose that the arguments which prevail with re- is what I wish to impress upon you. Rely upon it, you
spect to taxation will not be generally applied ? What ar- may crack jokes about reducing the malt duties, and re-
gument in favour of remitting the tea duty does not apply missions of duty going into the pocket of the brewer, and
to the wino .duty? What argument is there that is maudlin philanthropists may denounce dram-drinking, and
brought forward in favour of a remission of the Excise say that they will not encourage a 'legislation that gives
duty on soap that does not equally apply to the Excise any impetus to such a habit ; but the jests and jokes even
duty on paper ? (Hear.) Cheap sugar is one of the bless: of a President of the Board of Control will be baffled by
ings of the age. Why should you not have cheaper the inexorable principles of political economy—(hear)—
sugar? (Cheers.) We have had the article of tobacco and the maudlin philanthropist who denounces dram-
brought under our notice lately, and we have been re- drinking, but is nothing loth to receive the dividends
minded that English smugglers hare always made large which dram-drinking supplies, is not a legislator who I
fortunes so long as we retained the immense impost on hope will ever influence the decrees of the House of Corn-
tobacco. (Hear.) Well, I have also a second reason why mons. (Hear, hear.) 11,000,0001. or 12,000,0001. a-year
I think the income tax will not terminate at the end of .7 can never be raised without being paid by the consumer,
years, and that second reason I find in the whole scope of and, if paid by the consumer, they must restrict the in-
the financial policy of the right hon. gentleman—in all hie dustry and restrain the trade and commerce of the man
antecedents—in the whole of his conduct and career. If that produces. (Hear, hear.) It is of very great impor-
the arguments of the right hon. gentleman upon this and tance, no doubt, that we should deal wit the' excessive
upon former occasions mean anything, they mean that we indirect taxation that attaches to many foreign articles ;
should find the means of supplying the whole of the re- it is of great importance that we should extend our com:
venue raised from the Customs' duties in direct taxes. merce with India and China on a sounder basis ; and that
That is the natural and inevitable consequence of the right is one of the main reasons why we should deal with the
hon. gentleman's arguments. I am perfectly willing to tea duties. It is of very great importance that we should
concede, that when tho right hon. gentleman (Mr- Glad- increase our commerce with France and the south of
stone) held out the Prospect, which he did the other night, Europe ; and that is a very good reason
why
that at the end of 7 years the income tax would cease to should deal with the wine and brandy duties. weßut,
exist, he was speaking with perfect conscientiousness. • I irrespective of political justice,
,have you considered
have not the slightest doubt that the right hon. gentle- the fiscal consequences which must accrue if you persist
man is sanguine in his hopes and anxious effect a sue- lessening the indirect taxation upon the toChinese
tea or in
the
cessful arrangement, and lam ready to admit that, should French wine, and at the same time leave the
im-
the year 1860 find him in the position of Chancellor of the post that exists upon the malt and the spiritsenormous
that are made
Exchequer but bring with it circumstances totally adverse from British produce? (Hear.) That was the reason that
to his commercial policy, the right hon. gentleman induced the late Government to
make up their minds to
is so conscientious a man that it is quite likely he wean deal with the 11,000,0001. or 12,000,0001. that
you
raise
resign the office sooner than propose the continuance cf from a tax upon a single crop of the British farmer e
the tax for a further period. (Hear.) We shall see Mere were as desirous as gentlemen opposite to increase mir'
com-
as
we (lid in the case of the Maynooth—(hear)—resign. his merce with China, and to expand our trade with France;
office and retire beneath the gangway, whence the right but we felt that we had a primary duty to fulfil, and that
hon. gentleman would again rise and recommend the re- we were bound simultaneously to reduce the burden and
newel of the tax ; he would sacrifice himself to save his mass of indirect taxation that pressed upon the industry of
country. (Cheers and laughter.) I have given at least the British producer. .Irrespective' of political justice, I
two reasons, one being the character and feeling of the age, ask what must bo the fiscal consequences of articles of fo-
and the other the character of the right hon. gentleman, reign product—like tea and wine—coming in at reduced,
by which lam induced to believe that the income tax will and, if the system of the right hon. gentleman be ever con-
become a permanent tax if we consent to its retention for summated, perhaps at nominal duties, and supplanting the
a period of 7 years. If that be so, it appears to me that beverages that are produced from the barley of the British
we have arrived at this dilemma :—if this is to be a per- cultivator of the soil? What will become of your revenue
manent tax, we are authorised, with the inequalities, the of 11,000,000/. or 12,000,0001.? (Hear.) By every conside-
injustice, and the odious qualities that it possesses— ration of a sound finance, irrespective of political justice—
are we authorised to extend it to new classes and coup- which is a higher consideration than sound finance even—
tries without any attempt being made to mitigate these you ought at least to take care, when you are bringing in
odious qualities and to adjust those inequalities? If articles which enter into competition with articles produced
it be, as I believe it avowedly is, the basis of the lby the English cultivator of the soil, that the competition
Government proposition that this is to be only a tem. which he enters into is, as you say, an unrestricted compe-
porary tax, for seven years, is it wiee—is it politic, I tition. (Hear.) But what is the course recommended by hor
ask again, to introduce an impost so essentially unjust and Majesty's Ministers ? While they are reducing by more
odious to new classes and new countries? (Hear, hear.) than 100 per cent. the tax upon tea, while they are pro-
But that is the dilemma of the right hon. gentleman. My , pared at a favourable opportunity probably to deal also in
opinion is, that our proper policy would be to renew it, the same manner with wine, while they are allowing these
and for a very limited time, as was proposed by the late foreign articles to enter into competition with articles of
Government, with as much' of a mitigatory character as British growth that are subject to a duty of 200 per cent.,
we could contrive. That was the proposition of the late the only proposition they make with respect to this amount
Government, and it is the proposition of my hon. friend of indirect taxation is to add 500,0001. to the amount which
the member for Hertfordshire (Sir B. Lytton), although is already found so oppressive. (Hoar.) So far for the
the adoption of that proposition of my hon. friend does not justice of the policy of the Government as to the land with
bind any gentleman who may support it to the specific. respect to sealing with indirect taxation. I am asking no
proposal of the late Government. i But if this tax is not to favour, mind you, for the land in this behalf. (Hear.) I
be mitigated, and if its inequalities and its injustice are to. shall be glad if any gentleman can get up, with the most
baffle both Minister and Legislature,
the best thing to do extreme views of the subject of unrestricted competition,
is to apply your surplus and accruing• dicate theirpolicy. (Hear.) I say we are bound,
income. as you re-, Ind yin
ceive it to the reduction of an impost which no Minister' if we admit foreign products like tea and wine at, much re-
endure. (Cheers.) In duced duties, to deal also with that immense taxation
can manage and no people can. long
considering this important ,which we raise from English articles, for which these fo-
the whole of this question, in th right hon. will • allprobability besubstitute.
described gentlee reign products in
arm of our national finance, which
man the Chancellor of the Exchequer with so; (Hear.) I cannot imagine that there
thatcvl
ll
much power, but which I think he described in a manner question. the policy, or the wisdom,_ er • .ne justice
policy
who to hon. members proposition. (Hear, hear.) Now, ef the financial
that conveyed an erroneous impression
financial matters—in consider- '-• ht hon. gentleman 1 1 with the • •
f the rig ( ea a indirect taxa-
ingwho are not experienced in
you t l .0.
t d th 1 what is it
r, as accura ey as tion in so unjus a manner as regar s
this tax, we should always d
enob'ects we are to gain by doing at the same time witb. our, direct taxation ? (Hear,
we can, to ascertain whethert the J
the cost. (Hear, hear.) The hear.) Why, we find this, —this is the first thing that moots
its perpetuation are worth
tax upon paper is bad ; :—A farmer finds. in the first place that the duties
and, as
tax upon soap
we obtain a surplus, these is a bad tax, the
taxes, I admit, should .upon barley indirectly affect the whole soil of the kingdom,
1
of the Minister of Finance. and that 'his e,auct au mmense impost placed in
early command the attention
tmake enincome tax a per-, unrestricted aomprpetitionwith withi his foreign rivals,is who have
But, when you are asked o th
you are asked, not whether to p&,y a welch reduced rate ; he finds, in addition to this,
manent portion of our n
fi
tea are impolitic or not—of course that the indirect taxation upon the article he produces is
the taxes upon soap and .
teaisa worth your while to relieve increased and what more does he find when he leaves the
they are—but whether
incidencei of these taxes by perpetuating- domain of indirect taxation He finds the right hon..g9en-
yourself from the
must follow the advice of Dr. Frank- tleman saying, " You will meet this increased competition
the income tax.
You
the whistle is worth its price. The with' increased indirect contest,n, in addition to a I
din, and see whether
gave us a description of the income. 'this, to sustain you in the we are going to put
right hon. gentle g
mahievements. The hon. member for the upon you an income-tax." That is the position of tho
tax and and its greens-cC b len) said it was declamatory. It tivator of the soil ; what is the condition of the proprietor
West Riding ((•
was somewhat declamatory,
but that Ido not quarrel with., of the soil—the proprietor of the soil who has been told to
But it appeared to me to be inaccurate, or
of the income tax, to which I may (Hear.) You are going to propose a tax which you call
an idea of the results
a new house, and I ara extending the legacy duties to land, which will act as a
pardoned if I advert. This is
be
young members in it, some of direct tax of a very considerable amount upon all real pro
happy to say there are many y

thing abouithe absolute.necessity.ef -the scale being alteresl !
(Hear, hear.) ,But if rumour is true even the plan itself is
to be abandoned. - Now, mark the difference when a parti-
cular class of the population of the towns is concerned in
matters of taxation, and when You deal with those who are
connected, with the land. (Cheers.) There is not the slight-
est, doubt—l take it for granted—:that the Chancellor of
the Exchequer would never have proposed the licences un-
less he believed them to be just and. -proper, and not only • .
just but politic, But he changes. his opinion in 24 hours
when the trades rise and tell him they' will not endure it. •
The farmer must bear his:income-tax, the proprietor of ths)
.soil must bear his increased burden of direct taxation, the
cultivator Must find his burden of indirect taxation unne-
cessarily aggravated, while he has fresh rivals in the field
in the articles he produces. (Hear, hear.) He murmurs, •
but he is to get no relief. (Loud cheers.)- But the instant •
a particular class in the country.are touched` by the Mini-
ster of Finance; ..alders are given--the delegates wait—and
the Minister mbles. (Cheers.). . Now; sir, I have ad-
Verted to -this subject. before, and think it by much the
inest-serious of our pOlitical condition. •-- If it be the fact
that certain classes in this country, because they have a
certain portion -of electoral power, are,exercising that •
electoral power systematically to exempt themselves from
Just taxation—(cheers)—l cannot coercive any feature in
Our state as a nation more to be deprecated, and snore
perilous, and more to be arrested. (Cheers.) Why, what •
has been the ca.use-ofthe disturbances.ofnationa and of the
fall even of 'thrones ? It has been the existence of classes
exempted from taxation. •I see no difference been a pri-
vileged noble and a privileged 'tobacconist. (Cheers and
laughter.) In matters of finance it is equally important, •
whether it is the wealthy man with thousands who calls on
the Chancellor of the Exchequer and abjures him notto
touch him with an impost or the tradesmen with a NI.
note. The circumstances are equally grave—equally full
of . political disorders. • Nor can I doubt that what have
been the- Consequences in one case will be the same in the
other, for I feel it is the privileged which will be the class
that will suffer in the end, though it may now reap an
undue and unholy harvest. Nor can the electoral system last
which will permit such scenes which we now almost yearly
see in the House of Commons in consequence of this state
s
those
Complain whenows
—when
ti
i ne
ot
hots
avotnnei
lruy injured by his project, but irritated by
st of fe thesu b j
of things. But when these great -scandals take place, d
tool t
of
tdh teh efi
u.
au cultivatorsee Minister
o f
tthhsoiley"are
not justly treated, and claim from lim•nothi
ng but justice
e
e unwise concessions, they come to him by their repre-
sentatives, how are they' met? By taunts and by jeers.
What said the President of the Board 'of Control to some
one who had made comments on the scheme of the Govern-
ment? He said, " You had better
take
my advice—(a
laugh)—you had better take thismeasure or you will get
worse." " Now, Sir," said the President of the Board of
Control, "remember the eight shilling •fixed duty. You
did not take that ; you see what. not taking the measure '
we brought forward led to." (
dA.ilaeu.gh(leal::ehlle,atrhst
The
shae
very favourite topic on the other
cheer of the right hon. gentleman will allow me to dwell
on it a little longer. It is not merely the President of the
Board of Control that takes this course. The President of
the Board of Control is rather of an active and vigorous
than an original mind, . (Laughter.) The precedent of the
Board of Control has followed the conduct of one—l say it
without offence, fer he is a person for whom I have a very
,great regard—he has followed, in this, the example of more
eminent persons. The noble lord is very fond of giving his
advice on this subject. At the' beginning of the year I
brought forward a motion respecting our foreign relations
with France, and it fell to the noble lord to answer the •
observations I made. The noble lord, on that occasion—
the subject being our relations with France—delivered
himself of an oration in favour of free trade. (Laughter,
and cheers from the Opposition.) Not a very uncommon
habit with the noble lord. (Cheers.)
And he said then
that if I had followed his advice I might have been one of
her Majesty's Ministers at that time. (Cheers and
laughter.) As far as that ware. concerned, I believe
it did not depend upon my • following his advice,
provided I had only followed his example. (Loud cheers
from the Opposition.) I dare say• if we had submitted to •
what I see Ministers submit that probably I might have
been sitting on those (the Ministorial) benches. (Hear.)
But that is not the point to which: I wish to call attention
to the noble lord. The noble lord has said, and he has
now been followed up by the President of the Board of
Control," " You never take our advice. I advised you to
take an Bs. duty on corn, but you 'would not take it." The
noble lord has reminded us of that: several times. I should
not, however, have noticed it if the President of the Board
of Control had not said it. (Laugliter and cheers from the
Opposition.) If the taunt had come -from the right hon.
baronet the member for Portsmouth (Sir F. Baring), who
was Chancellor at the time, I might have allowed it to
pass, because he might have been . justified in making it ;
but the taunt has been so often. repeated and stereotyped
that I think it is time it should cease. I have, therefore,
thus noticed it, in order, if possible, to prevent its repeti-
tion. I think it would only have . been decent of the noble
lord to have stated under whose advice, and at whose ur-
gent advice, we did refuse the Bs..fixed duty on corn. It
is not for me to depreciate the comprehensive idea of a fixed
duty of Bs. on corn. I give the noble lord all the credit
that is due to him in that respect... But at the same time,
when the noble lord remembers under whose advice and at
whose instance that proposal was refused—when he re-
members who are those by whom. ho is now surrounded—
(Opposition cheers)—when the noble lord remembers that
he.has thrown away the Whig party, and that he has ac-
cepted a subordinate office under the subordinate officers
of Sir Robert Peel, I think he Knight have felt that the
time has come when these scoffs and sneers should cease.
The hon. member for the West Rik-ling (Mr. Cobden) said,
other night, that his (Mr. Marken's) hon. and much-re-
spected friend, the hon. member for Warwickshire, had
stated that-this budget was a great triumph to Manchester.
I had hoped that the old feud beltween town and country
had ceased for ever. There exist, s no difference of mate-
rial interests any longer between , town and country. The
very motion which my hon. frier td the member for Hert-
fordshire has Proposed tonight is .somewhat significant of
that, and is evidently conceived iha spirit ohonourable
conciliation. I could therefore hAve hoped, however, that
you might have voted that you would have accepted that
amendment in the same spirit. ()Opposition cheers.) The
hon. member for Manchester, when addressing his consti-
tuents some time ago, expressed ;his amazement that the
country gentlemen should have 'inade such a proposition,
and added, that they were entitled to the kindly feelings of
the working classes of the country. That was the way in
which the hon. member for Manchester had spoken of the
proposition which has been treat end ,so differently by the
Secretary of the Board of Control. That right hon. gen-
tleman had spoken of our proposition in terms—l will not
say offensive, for if they had bee a offensive I should have
called in the Attorney-General t, ) have taken a message to
the right hon. gentleman, because I recollect—it is still
ringing in my ears—the glowing; oulogium made by the
first Crown officer upon that ...cry subject The hon.
member for Manchester spoke, in a manner honour-
able to himself, and worthy of the occasion ; and I tell
him that no class values more highly than the country gen-
tlemen the rights and liberties of the people ; no class has
less interest in the corrupt adminfistration of the affairs of
the country ; and no class has a greater interest in an '
economical administration of those affairs. (Cheers.)
Gentlemen are very apt to tell -a s of the great weight and
importance of the great towns, a. rid that this budget was
supported by the members of those great towns. But I
have already said that I think there is no great difference
:in material interests between the -people of great towns and
the country gentlemen. But I -am told that there are
moral and. political differences--I mean by moral, social
differences. lam very loath to believe it. (Hear.) I
cannot but believe that it will be remembered. that these
great towns are situate in a country of no considerable ex-
tent, with no excessive population, and with a commerce,
however great, which has been is repaired, and with manu-
factures, however successful, whileh have been surpassed.
What makes this country great ? The national character
of the country—(hear)—the mitional character of the
country which has been created by its institutions and by '
its traditional influences impress( idupon those institutions.
Those institutions are deeply and broadly planted in the
soil, and that soil is not the possession of any exclusive
class. The manufacturer may dt 'posit within it his accu-
mulated capital, and he may enjoy those privileges which
his possessions entitle him' to, at the same time that he
discharges those duties which his' possessions also impose.
(Cheers.) Then, why this hostility to land? Every man
in this country is deeply interetited in maintaining the
stability of the possession of the land of this country. I
therefore adjure those gentlemen who are the representa;
-tives of large towns to condescend to ponder over these
observations, and not to be led °may by prejudices and by
the influence of the present debates ; remembering that we
are all alike interested in maintaining the greatness of this
country, not only in its material possessions, but in the
existence of its institutions. Should, however, the repre-
sentatives of towns take another . course, which I trust not,
then of this I feel convinced, tha• t if they are still alienated
from ns —if they still proceed int their illusory progress,
they may arrive at the goal which they contemplate, they
may achieve the object they have set beforo them, but I
believe they will be greatly disoppointed in the result,
and will find only a change from a first-rate kingdom into
a second-rate republic. (Cheers.;`
Lord J. RUSSELL.—After folur nights' debate I shall
attempt to do little more than seat before the committee as
clearly
as I can the question upon 'which they are now about
to divide. They have a budget before th©m comprising pro-
positions of very great intportan be to the finances of the
country ; and the question they have to decide is whether
the advantages held out by those propositions are such as to
or
be greater than the burdens it mt sy impose, and whether t.
mot it is for the interest of the con utry to adopt that budget.
In which has been
the question of the income tax •.—a .
In the first place the proposition of the Government is en
I tem—
having been for a long time
isinn
kr even to those most eons
selected and subsists as a part of our financial sys
rise to questions most
ehnesebnldeeapvaorurliashmoeulntd bet
debate, and having given
because think it has
have. followed the course
Eh' I
I,;noarrenttoWlsotthileth
come to a final recision.ethsautbiciecPeut—erPstiiwoeshnacyttilF)3drist.
I the debates On th e subject that, though the
g very wise and well
proposition of Sir 11. Pt tel in 1842 to impose an in-
comeoriginal prop
r torte for
re
ittihitUeloyneaorfa themi country,'lt .b
yet it isimpo—asibl
lorenvecrivtiscleannt, to any. persons who,
years
now to continue the tax from three years to thee
`nl6WilehNict tdirtlitbtas ianSdh differences
,wviitthhoruetspeexcetittiongthaet e
modever y i
be im-
posed. (Hear, hear.) ' Such disemssionaend such-.:la
could not take place without clistuihinv 'i differences
whole financial system—(hear, hear)—and
in( Osns' shioanfideetnhglS 18 42"--y
tax.onr
alld yet, no Govern-
imi meal 1 seriously er is ionucsel y 1842
contemplatedno hhoeua
rsti le.: aftreCita
Every Chancellor of the ExcheTuer in the intervalof three
years has propoSed variousporseedducbtions of taut, and those
haneadiodf neovtermyavkaertwye.relptrowould
appear
snloafratbh6er shoonuseev every
whodid side
tions were urged. that the members
when those proposi-
tions
urge them did not believe that the income tax would ter-
' minate at the -period at which by law it was fixed to ter-
minate. (Hear, hear.) Such being the case, my right hon.
friend the Chancellor of the :Exchequer' has shown the
house that continuing the tax for a certain limited time
—I will admit no very short per:iod—will enable the House
of Commons to determine, if it shall think fit to do so, on
parting with this tax. I say there is prima facie a great
advantage in the budget as it stands. In the next place,
it is proposed to take away one, of the most injurious du-
ties of Excise. Almost the only tax which remains on
what may properly be called a xl ecessary of life is the tax on
soap, which interferes with the comforts of the people. It
is further proposed to reduce thle duty on tea from 2s. 2d.
to ls., in the course of three years. It is proposed that the
system of dealing with protective duties should be carried
further than it has been, and that many disputed questions,
such as that relating to spirits, should be settled by legis-
lation in the present year. To these must be
tadedaeftsitunl
proposal to adjust the assessed taxes, not es.tr boveryo d
sumptuary principle that persons are to y /
in-
creased number on their servaas or
or horse they have.
pay equally for every servant, pall-slit:cal ffect
and
groat
It has been said to-molit, horses, they are to
ease he be ©st to
. I emphasis, that this atvivantwaieTw.coolilrld

' party, and, of course, if upon all real property, in a very
-great degree,-if not mainly; upon-the 1 oir:I/hero
seems, as far asi could collect the opinion of the commit-
tee as the debate has proceeded, some 'little misapprehen-
sion'. on the subject. An hon. friend of mine, the member
for Wakefield, who has given in his adhesion to the project
iof the Chancellor of the Exchequer, said that he did so be-
calve the right hon. gentleman was going to fulfil that
which Mr. Pitt failed in doing; and another hon. member
opposite eulogised the right hon. gentleman on the same
'accomplishing
and said that Mr. Fitt'had only failed by One vote in
accomplishing that which the right hon.. gentleman now
proposed, and which ho hoped he would succeed in accom-
plishing. (Hear.) Now, there is a very great error in
this. Mr. Pitt never proposed any tax -upon settled pro-
perty of any kind. (Cheers and a laugh.) I have read the
act:which Mr. Pitt broilg ht in, and if the nfitleman who
laughs means to express'any incredulity on' the subject, I
wilt refer him to that act. Mr. Pitt introduced two bills
one of which is the origin of our present legacy duties with ,
reference to personalty, and the other was a bill which
would have extended the same system of legacy duty to
landed property, which was not settled. (Hear.) Telles
been alleged that it was the selfishness of the landlords then
in Parliament which threw out that bill. It was nothing,
of the kind. ;Nine tenths of the landlord Pyliament
were possessors, as gentlemen in this houses are' present
posliessore, of settled estates, and the propositiona of Mr.
Pitt never touched them. (Hear.)l It wasthrown out on
different grounds, and i(teroesrgn.lainit thrown out from the
influence of Mr. Fox. was Mr. Fox whose
opposition threw ont that bill, and it wase ° h wh' opposed
it on grounds to which I may hereafteradvert gi-ounds
which were considered sound and scientific, without— doubt.
The bill was thrown out by the selfishness of the land-
lords, and the only persons whose interests
who were
affectel
,by it were the small proprietors of England,
members ofParliament, and whose estates were not settled.
(Hear, (Hear, hear.) This is a subject of very grave importance..
(Hear hear.) ' The right hon. gentleman the President of
the Board of Control said, the other night, that the late
Government were going to •• propose a tax on successions.
Now I am sure either the memory of the right hon, gentle-
man must have been imperfect, or he must have spoken
from inadvertence when he said this. It was the duty of
the late Government, when they revised the taxation of
the country; not to omit so important a subject as the duty
on successions:or the legaey duty; and certainly it was our
opinion that it was most imprudent to delay dealing with
that question, and that it was a subject which, for a per-
manent settlement, ought, without unnecessary loss of time
to be brought before the house. What I did say on the
subject, within the recollection of right hon. friends near
me—and certainly I could have intended to say' nothing
more—was, that we did not think it impossible to make a
proposal upon that subject which would terminate for ever
the controversy, in a manner which would be recognised as
perfectly satisfactory by all parties. (Hear.) And that was
not a vague phrase ; that proposition was a matured pro-
position • and probably in the course of this discussion—
though I will not trouble the house with it now—l may be
• ble to submit it to the consideration of the house. But,
Sir, in considering the question of a tax upon successions,
it is absolutely necessary not to disguise from ourselves
that it is a very important subject, and that there are
many.points' to be considered before we come to a -vote
upon it. "(Hear.) We must ask ourselves, in the first
place, is it a just tax ? (Cheers.) Is it abstractedly a just
tax? - (Hear.) Is it a politic, a just tax, a tax that can be
vindicated on principle ? (Hear.) We must ask ourselves
in the second place whether, if it be a tax, sound in prin-
ciple, it is a tax adapted to the country in which it is pro-
posed to be introduced ? Thirdly, we must ask ourselves
what are the data which the Chancellor of the Exchequer
has before him upon which he founds this estimate of its
produce—(cheers)—and, above all, what is the machinery
by which he means that tax to be raised ? (Hear.) These
are three important points which would well deserve con-
sideration. For my own part, Sir—although I think that
if the arrangement of Mr. Pitt had passed it would have
been unwise (unless the state of our finances justified us in
doing so) to disturb that arrangement—(hear)—formy own
part, I believe that all taxes on successions, whatever
shape they may take, are unsound in principle. (Hear.)
They are taxes on capital. (Loud cries of " Hear.") They
are unsound in principle as regards personal property, but
they are more unsound in principle as regards landed pro-
party, because they lead to partition, which, in my opi-
nion, is a very great evil. (Hear, hear.) But I am not
going to enter into that important subject now. All I say
is that you cannot deny that, by proposing this tax on
successions with reference to landed property, you are
proposing a new tax upon the land. (Cheers.) I have
shown you that in dealing with your direct taxation you
have commenced a system, and you have laid down a
principle, which must immensely aggregate the national
taxation upon the British producer. (Hear, hear.) I
have shown you, in the second place, that while you are
about to pursue that unjust and injurious policy—a
policy the propriety of which no man can vindicate
—while jon are abrogating the pressure of indirect
taxation upon the British producer, you aro inflicting upon
the cultivator of the soil a direct tax in the shapoof an in-
come tax, and upon the possessor of the soil a direct tax
in the shape of a tax upon successions. Now, Sir, I say
that the whole scope of the budget of the right hon. gentle-
man is conceived in a spirit of injustice to the land:
(Cheers.) I will not tench upon the past. I will not ask
you was it politic, was it wise, or was it generous to attack
the land,'both indirectly and directly, after such an im-
mense revolution had taken place in those laws which re-
gulated the, importation of foreign produce. (Loud cries
of " Hear.") I will make no appeal ad misericOrdiam.
What you have done, you have done. We have given our
assent to it. I will not refer to the past, and upon that
ground I refrain from appealing to you. But I will re-
mind you that the Minister who has conceived this budget
—who has conceived it, as I maintain I have proved, in a
spirit of injustice to the land—(hear, hear)-who is aggre-
gating the burden of indirect taxation to the land, and.who
is proposing new direct taxes on, the cultivator and the
proprietor of the soil, is the very Minister—the first Mi-
nister—who has come forward, and in his place in Parlia-
ment talked of the vast load of local taxation which real
I property endures. The vast load of local taxation which
real property endures ! Well, then, this is an age of com-
pensation—what is to be our compensation for- that ?
(Hear, hear, and laughter.) I remember when I made an
appeal to the sense of justice of the House of Commons on
that head, I was met by two kinds of opponents. One
school denied point blank that there were any burden
upon real property which were peculiar to it, or which it
was not bound to bear. But there was another class of
opponents who took a different ground. They said—" It
is very true that there is an undue burden of taxation upon
real property, and upon land as the most important portion
of real property, but 3rou forget you have not to pay the
legacy duty." (Hear.) Why, Sir, I have shown over and
over again that the legacy duty as a compensation was no
eompensption for the weight, the great weight of local
taxation which your Minister has mentioned. (Cheers.)
But let me remind you now that wo are not only to have
this great weight of local taxation acknowledged by the
Government, 'but it is not to be remedied by the Govern-
ment—nay, more, it is not only not to be remedied by the
Government, but it is to be accompanied by the very tax
an exemption from which they used to say was our com-
pensation for those burdens. (Loud cheers.) Sir, we have
lived to see very strange times. I remember when Sir R.
Peel proposed his first income tax, and I remember the
noble lord the leader of the house, sitting on these (the
Opposition) benches, rising, and, with the traditionary
spirit of Mr. Fox, denouncing the impost as Mr. Fox de-
nounced the legacy duties' because the noble lord, as well
as Mr. Fox, 'had seine feeling for the land of the country,
and for the burdens which it had so long borne. (Cheers.)
I remember how the nOble lord admonished Sir R. Peel.
The noble lord could not deny there was a deficiency in
the Exchequer ; but he had just left office, and knew pretty
well the state of his treasury. The noble lord said there
were other means of supplying the deficiency—anything
but this odious, this unjust, this inequitable, this inquisi-
torial income tax. (Hear, hear, and laughter.) The epl-
theta are the noble lord's, and not my own. Do anything
but this, the noble lord said ; if you have a deficiency,' why
don't you supply it by applying the legacy duty to land ?
Well, sir, he has applied the legacy duty to land, but he
has given us the income tax too. (Cheers and laughter.)
That is the fate of England. And now what is the fate of
Ireland ? Sir Robert Peel did not propose an income-tax
for Ireland, though he proposed one for England. Sir
Robert Peel thought that there were constitutional and
local grounds which should forbid him, even if he wished
it, to apply the income tax to Ireland ; but he said, "
must have some substitute, and that substitute shall bo a
duty on spirits. The Irish shall have a duty' on spirits
instead of the income tax, just as the English were to have,
if the policy of the noble lord had prevailed, a legacy duty
instead of an income tax ; but now England had got the
legacy duty as well as the income tax, and Ireland is to
have the spirit duty and the income tax too. (Cheers.)
Strange fate that both countries from the Ministry of "all
the talents"—(cheers and laughter)L-should receive such
accumulated blessings I (Cheers repeated.) But, sir, it is
not mylintention—and it would be taxing the patience of
the house, as we shall have so many opportunities of enter-
ing upon the consideration of this great subject—to go
into all the details of the budget, or even into all its main
features. lam confining myself to show to you that the,
budget is conceived in a spirit of hostility to the land—
(hear)—and I have endeavoured to substantiate that by
arguments and facts which it is open for all to consider,
and if possible to confute, and without the slightest allu-
sion to any of those views or considerations which in for-
mer debates may have influenced us on the subject, I have
dwelt upon them with the utmost confidence—the same
respect to hon. gentlemen opposite as to those on this side
of the house—all I ask is, that you will deal with those
great interests as you deal with all interests, great or small,
in the spirit of justice, and that if you cannot accomplish
all that justice requires, you will at least show you are
dealing, as regards them, with a desire to do so ; and that
you will not persist in legislating in a spirit which will
sour the temper and irritate the feelings of a large portion
of the most valuable subjects of the realm. (Cheers.) There
is now another point to 'which lam obliged to refer. The
Chancellor of the Exchequer has a project for the licences
of trades, which I dare say many of his supporters have
heard something about. (A laugh.) Well, sir, I have
received between 300 and 400 letters on the subject, and,
at first, many of them being really full of useful sug,gos
tions, it was my intention to have sent them to the
Chan-
cellor of the Exchequer. But when I found that theright
hon. gentleman, with a devotion to public affairs for
oo
which
I had not given him credit, was in the habit of answering
all his letters him self—(laughter)—l thought tat he might
f
have possibly misinterpreted what was really an
his
friendly courteousness—(a laugh)—and that perhaps act
would be rather disembarrassed by them. The gTehneersaylsttoenuol
of these letters may be described in this way :
of licences is infinitely worse than your house tax.
I should.
ay, indeed, that the majority described it as . .t.
cation of the house tax, and they all say they woquld mac oh
sooner—if they must• have something—have tnhozobyoluasveatur ii•xd
than the system of licenses, foritimt
uwsatsbe udevaeloppe'd shou Id
house tax, and if developed, as
the first step be conceded, they have got that which th.
wis • hed never to obtain, and from whichtohf oeytffiehoougtr
Ba t].
re ie
right hon. gentleman had turned me out
them. Well, there has been great clamour, there has bet ni
great discontent,
in the country on the subject; and, n a.
less I misunderstood him, the opinion of the right ho)i.
ge Whear..)
I on the subject is already shaken. (Hear,
rsibould have supposed a Minister of Finance would rcpt
have taken such a step as proposing licences for trades
am not now giving any opinion as to the policy of tho m.eak-1.
sure, which is unquestionably one of the most important
in the province of the Chancellor of the Excequer who
could not have" brought forward a proposition of such'a ni t.
tare without well weighing its character and consequence s,
Such a plan is not to be taken up hastily ;
It is a yes 3.
od. nor, one wool
.rsh •
think, is it a plan to be lightly reling
grave subject. It touches the retail trade—the most te)
der, the most irritable, the most lively, and the most se) 1. •
sitive to anything like an attack on their finances, of an y
portion of the community. The system of licences involve
some of the worst mcinsequences ofdirect taxation. Somi,
indeed, have propel ied it to us as a favourable substitute
for the income tax.. It ,
appears, however, we were to hap 'c licences and incom tax too, according to the original pro, - ject of the right he us. gentleman, But there is great mu r
mur of discontent. And at the very first murmur we he s r
Chancellor o the Ex
chequer use and mutter out Dom e -