The Sun.
London, England, 1856-12-25 00:00:00

DIALOGUB ON THE Ili COME TAX.

TO THE EDITOR OF THE SUN. I Published by Effingham Wilson, Royal Exchange.
SIR,--In my former letters I explained that the Times -SCENE—An apartment in Downing-street, with blueTe
was in error When it stated that a Rink of England note books, writing materials, pap.ers,. aim red tape. The
would be acceptable to the people only as long as it was ,
supposed to be convertilde into gold on demand. I. re- Chancellor of
thought.
Exchequer is discovered, absorbed in
anxiousbtera rising
from the ground, the Spirit of Cocker,
ferred to the year 1825, when, at a crisis like the pre- -6
Spirit of 00i/tter—What mediiletorae medium has sum-
sent, a further issue of notes woe resorted to, by the
advice of Lord Ashburton, increasing the paper currency Chancellor of the Exchequer—Forgive, illustrious shade,
mond me from my resting-place ?
to 24,479,C00/., when it was generally known that there the unwarrantable intrusion upon your--
were only a few hundreds of thousands of bullion iu the l Sp.—Speak, I pray you, with brevity—my time is short,
Bank coffers. So, with' ut relying upon any mere opi. at cock-crow I depart ; speak also in sincerity, we deal not
nion, the error of the Times is demonstrated by experis in soft sawder in the spirit-world. Who are you? What
ence, the most powerful of argument. In fact, I doyou want with me ?
find since y
that my ideas on this point are precisely those of Adam ' 'h. of Ex —I am the Chancellor of her Mejeity's Exche-
Smith ; fir we read in his" Wealth of Nations" that the qusCepr,. a offic.e of peculiar difficult and
value (enside, and interjectively).!Bosh !
value of notes depends upon, not the quantity of gold .
in the country, hut the amount of trade done by the
:Ch. of Ex.—And, knowing well the kindness of your
Ch.
country. If the circulating medium. whether gold or ' Sp. (impatiently).—Spirits have no hearts • confine your-
notes, be too scarce, as at present, trade is at a dead lack self to facts, and avoid metaphor. Feelings'l possess—do
from the want of that medium. If capital is too abuts- i not trifle with them. dant, whether mites or geld, then the circulating medium 1 Ch. of Ex.—l humbly crave pardon. I was about to
When the medium, gold
is idle, from the want of trade.
say that, being aware of the kindliness of your disposition,
and notes, is toe abundant, the ge!d is ventured in fo- ‘
reign epeculatiene, and the netes must lay idle, or be I thought you might be willing to assistine in a difficulty
cualltly.
which oppresses me greatly, and I took the liberty of call-
converted into gold for the same purpose. If their con- , log you from the region of shades to solicit a word of your
version is an impossibility, they then depreeiat invaluable counsel.e in value, • not altogether because hey are iricerivert ble Sp. —You have my works; I left them for the guidance
, for if the
home trade were suddenly to improve they would imam• of such as you.
Ch. of. Ex.—l tk I have a copy in
diately be employed, and would be no longer depreci ited ; invaluable work onhin the Science of Figuremy library of your
but because instead of, like a snowball, multiplying its Sp.—Don't attempt any deception. You me possess a
value by circulation, it is only useful to squander in
you
have
eul
nevaedr con-
copy of my great work, but it is clear
salted it. It would have been more respite
is . you
goods or food for actual censemption. The difference of
What it you
done so before disturbing my repose.
value between notes when issued in arc iniance with the
t ?
requirements of trade and when. too abundant is just the i
waCeh. of Ex.—l was desirous, sir, of consulting you con-
difference between a sack of wheat and a sack of flour to
a farmer ; the one, Ly cultivation, may increase a bun part of many who have raised an outcry against the con-
' corning the " unreasoning impatience of taxation ' on the
dredfold, the other is useless except for making into bread, tiuuance of the property and fu came tax.
and if the quantity of flour is not more than is re- Sp. (angrily). --No such tax exists.
guired for actual consumption it is as valuable as wheat; Ch. of Ex.—Pardon me, respected shade of departed
if flour is too abundant it depreciates its value. BLit is arithmetical accuracy, if I presume to question--
.
there no medium between an extreme scarcity of cur-
Sp —Read me the title of the Act of Parliament.
rency, like that which is supposed to exist at present, Ch. of Ex. (taking up act from table, reads).—" An Act
and a superfluity, like that I mention ? Am I to be
for granting to her Majesty Duties on Profits arising 'rem
Property, Professions, Trades, and Offices, until," &c.*
prevented from enjoying the fresh air of heaven, which
Sp.—A tax is granted to her Majesty upon certain
is necessary to life, lest a hurricane should hurl me fits ; certainly not upon property, as you very well know.
pro-
down a precipice and dash me to pieces? Our merchants Ch. of Ex.—l stand corrected; but we call it a pro-
end rnanutacturers require a currency of some sort at a party and income tax.
price our profits enable us to pay, not. teat we may enter Sp.—l care not what you call it you m thrw dust
into foreign speculations, but to carry on our legitimate in the public eyes, but
you cannot in mine—ay spiriots have
trade. We eornpiain that money should increase so cud- none.
Ch. of Ex.—But, sir, "what's in a name ? a rose," you
denly in price, not from any extra demand, arising from
"
increased trade and increased profit-, but simply because know, by any other name will smell as sweet."
of a temporary scarcity of bullion in the Bank of En iand Sp.—You will never rusks your tax sweet, call it by what
which bullion is after all only a small fraction of the cir- that
te
aysou. will ; it stinks in the public nostrils.
its right
letht
xyabwepwrofilt,Bl,, you please, c it by g
culating medium when we take bills, notes, and checks name') 4rai Tan
into consideration. Besides, it does not follow because li of Ex —But is it not in fact a property tax ?
there is a scarcity of gold in the Bank coffers that there Sp.—/tie, sir, Is your brain property. Is ingenuity
is necessarily a scarcity of gold in England. This brings property ? Professional skill, literary excellence, plodding
me to the subject of my letter, which is to prove that the well directed industry, are these property ?
Bank Act of 1844, whilst it is a source of incalculable Ch. of Ex.—No, sir, not in a commercial sense; but we
inconvenience aced loss to every one except a few tax property also.
bankers and money lenders, to whom it brings enormous Sp.—You do, the profits arising from property, but very
profits at the expense of the smaller capitaists and the gingerly. You lay burthens, heavy and grievous to be
trading community generally, it is perfectly inoperative tbeurnes
h elhethe terhofits of
ii.tnaii.is:ry, but property hardly for the sole purpose for which it was framed—that, in Ch. of Ea.—Will Villoneeaof
explain to me how the Property
fact, it promotes the very evil it affects to cure, and and In—l mean, tax you
Profits does this ?
when the evil is brought about it aggravates the conse- Sp.—Listen hen, and I will instruct you. The Income
quences. The principle of this Bank Act, as your Tax, as you calls it, is a masterpiece of statecraft, originally
readers are doubtless aware, is that when from any invented by the late William Pitt; it is a contrivance of
cause whatever there is a scarcity of gold, not in the
surpassing ingenuity for extracting the largest possible pro-
country generally, but in the Beak coffers, that scarcity
portion of money from the pockets of the industrious and
is increased, as it may at any time be produced by a intelligent creators of wealth, in order that a proportionate
proportiona`e withdrawal of notes, on the erroneous sup- immunity from taxation may be enjoyed by that; possessorsabcia
position that notes are only valuable as long as they can of wealth ealth ;itis a tax upon the working bees the
ingenuity of
hive for the relief of the drones. The deep ingenuity o
be converted into gold on demand, and that when there the contrivance consists of two things; first, the artfulness
is an unusual quantity of gold, the excess is increased , by which it deludes its victims into the belief that
by a proportionate increase of notes. Any one, by they' are taxed equally or proportionately with other
reflecting a moment, will see at once the enormous evils classes of society; and, secondly, the facility with
such an act must give rise to, particularly to the noes. which it extracts the money from the pockets of
cantile classes, evils which experience has demonstrated various classes in precisely the inverse ratio of the
too clearly. A supporter and admirer of the Bank Act amount of property possessed. In these respects I can
of 1844 raid to me the other day, "I agree with you
only compare it to a bat which travellers wrote of in my
day as eifesting some southern climes,fwhichltightly fanned
that this act is very embarrassing, and causes great loss to the mercantile community, a loss that was never ttthuietsa'ewningesaiantoasootflarienal sensew ilomo i
tseecxutrri
ayetjainrepfouslel
intended, and which every one must deplore, but some- stream the current object
life.
thing must be done to check speculation, when specu- (The Chaiicellor exhibits signs of impatience and dissent.)
ration is carded on to too great an extent, and this, Sp. (cibritinuing ) —Do you posssess the works of my die-
it appears to me, the Bank Act does. Toe problem tinguished cotemporary and present coadjutor, Adam
you have to solve is, how is excessive speculations to be Smith ?
checked without unjustly interfering with the legitimate Ch. of Ex.—l have his works, and frequently consult
operations of trade ? How can Sou make money dearer them.
to tie gambler without making it a ruinous price to the Sp.—Then turn to the Fifth Book, part 11., of his
prudent trader ?"
" Wealth of Nations," under the head " Of Taxes," and
rez;dh.wahfat
Ex.
you find there written. .
The only advantage which is spoken of in connection E freading )—I. " The subjects of every State
with the Bank Act of 1844 is, that it checks speculation ought to contribute towards the support of the Govern.
ph carried beyond a certain point.. This I most em- meet, as nearly as possible, in proportion to their re-
phatically deny. I assert most distinctly that the Bank spective abilities. The expense' of Government to the in-
Actand aggravates and some
promotes speculation, . dividuals of a nation is like the expense of management to
times creates the injurious consequences attending ape- the joint tenants of a great estate, who are all obliged to
culation, The Bank Act may he retributive in its rt.- contribute in proportion to their respective interests in the
don—it certainly is not preventive. The largest capita- estate. In the observation or neglect of this maxim con-
lists, the bill discounters, and the Bank directors are
of capital, This. assts what is called the equality or inequality of taxation."
interested in bringing about a scarcity
Sp.—Very good. Now answer me. Is your tax on pro-
by playing into each other's
loandys, and using the fits levied in aceerdaiece with the equitable and politic
Bank Act of 1844 dictum of Adam Smith?
Bank directors can be easily managed. The Ch. of Ex.—We, that is, my respected predecessors and
, when money is plentiful, make myself, have anxiously considered the subject, with the
it a glut as in 1852, when it could only fetch 2 per cent., view of rendering the operation of the tax as equitable as
and when the smaller capitalists whom the leviathans possible, and finding the subject surrounded with difficul-
are anxious to devour are embarrassed to knew how to ties, we—aliew---
get a reasonable percentage for their money the Sp. (interrupting)—Shirked it upon the House of Com-
Barings, the Hopes, Rothschilds &o. throw on the m"B'
market, foreign loans, Russian railways, sic., &c., not Ch. of Ex.—ln one sense wea dalleseot;
otahmatmlattteoesbaitathwac
but simply
any idea that they will be profitable investments, mooed the appointment of
which resulted in
----
ins; smaller rivals, making money P Pt
ng
for the purpose of employing or rather sink.
rE1111:::::'1; ,
ing the capital of their; a blue book, and an outlay of 1,0001. in
scarce and dear as at the present time, and then reaping - Ch. of Ex.—The Committee reported the evidence, and
. the reward of their pious labours. The tears of the that it was extremely difficult, indeed impossible, to levy
impoverished widow are nectar to the money lender, ' the tax more equitably.
ctaoletuhlaetire
teharesir. Sp. (with indignation)—l'll simplify the matter for them
*pwrrbh:eefintehian ngtkhaeie:rye directorstohfiesy ruined
and f families
ey
ilsennideurssie
aconcieemnaapnladte before I have done with it.
formillosod standinandg 0 p idleera. Ch. of Ex —I must admit, sir, that the tax is not strictly
a property tax; but how do you prove that the burthen
fives starving when there is abundanceg falls in the inverse ratio of equity and fairness ?
This, I think, is adi '
Sp.—l shall make y.in prove that. Get me down a copy
pa,siouate view of the Bank Act of
1844. I think I haves demonstrated of my Rudiments of Arithmetic.
re that it promotes Ch. of Ex. (producing a dusty volume)—Here, sir, is a
the very evil it affects tocu ;t pretends to check copy of your invaluable treatise.
speculation, when in fact it drives
indeed
people to speculate, Sp. (sarcastically)—Yes, "invaluable treatise" ;
and then, by suddenly increasing the value of money, you may work a sum in the dust upon the cover.
really brings ruin to investments which, with money at Ch. of Ex. —I must plead guilt of neglect of the science
the real market value,
smight have been profitable. Lord which derived additional lustre from your --
Overstone was the chief adviser, it is thought, of Sir R. . Sp. (interrupting impatiently)—Can you find the pre.
Feel, when the Bank Act of 1844 was framed, and sent value of an annual sum ?
may imagine when we remember how he was instrwue Ch. of Ex.—l think I can, aided by your useful manual.
mental in fi!ching from the mercantile communit the. Sp.—Then find me the present value of 1501, per annum
bill the House of Commons passed fez. their benefit— for three years; interest at 41. per cent.i
laboriously,
limiting the liability at partners to the amount of money
wgehesEhdancellor of the Exchequer works
by mental
they had inveated in a concern—with what sincerity he arithmetic oefoefeaCroacek)er arrives at the result,
wishes to meek speculation without interfering with Ch. of Ex.—l make it 41(7.
the legitlmate operation of trade ; for he has given to Sp.—That is right, nearly. Now sit down and find me
:but'oie companies the privilege which is denied to bona also the present values of 1501. per annum, for 5,7, 10, 15,
fide and established trade.—Yours, &c., 20,23, 30, and 50 years, ano in perpetuity; and place the
values, when found, in tabularjuxtaposition.
Ch. of Ex. (after considerable pause).—Here are the re-
sults, sir, in a tabulated form.
THE PRESENT, OR PROPERTY VALUES OF £l5O PER
ANNUM FOR I.HE PERIODS 'UNDERMENTIONED •

C. W. s.

ACTION FOR COMPENSATION FOR RAILWAY

INJURY.

ELI nmtoble, Courtday la
last,
Session at th E n air.b
William
caseul
Awl
Alexatriednder
Dobie, ensign iu the 70th Regiment, presently quartered
in Aberdeen, was pursuer, and the Aberdeen Railway
defenders.l27l.,,p,artidypwreesriedentaudaitry i The casetile
followinga'a
upon
"It being admitted that, on the 27th of July, 1855,
s tried
issue:—
before
and at or near Cave station on the defer ders' line of
railway, one of the ordinary passenger trains on the said
line came into collision with an excursion train, then
standing at or near the said station, in consequence of
which the pursuer (a pas-eager by the said excursion
train) sustained a fracture of both bones of the left leg
immediately below the knee, and a severe contusion
upon the knee and other parts of the left leg.
" Whether the said collision occurred through the
fault of the defenders, to the loss and damage of the
pursuer ?"
Damages were laid at 2,0001.
At the outset the Dean of Faculty said the company
made no question as to their being responsible for the
whole consequences of the injury which the pursuer had
sustained, and therefore the question of damages was the
only one the jury had to consider.
The jury returned a verdict for the pursuer with 9501.
damages.
The decision, we believe, will carry Costs.

3 5 7 10 ls 20 23 30 50 In Per
Yrs. Yrs. Yrs. TN. Yrs. Year, Year.. Years. Years petuity.
—-—---- - —— £ £ £ £ £ £ £ £
.£ .£
4A6 667 900 1216 f 1667 , 20i8 , 2228 2593 3222 3750
----
--.:

•
Sp. (encouragingly)—Very well ; now answer tne a few
questions. The sums you have found aro the propert
values of 1501. per annum ? y
Ch. of Ex .—Yes ; the amount which would be realised
' in the market.
Sp.—Exactly; whether realised by actual sale or found
by calculation, the sums you have given represent the
property values.
Ch. of Ex.—Yes ; the property value of 1501. per annum
for three years is 4161., and for 15 years the value is 1,667/.
and in perpetuity it is worth 3,7501.
Sp. (angrily)—And yet you levy on all three the same
sum annually, notwithstanding the difference in value to
1 the possessors.
Co. of Ex.—How 53 ?
Sp.—What tax do you levy on an income of 1501. per
annum ?
Ch. of Ex.-10'., being Is. 43. in tle pound.
Sp.—Just so. You make a property worth 4161. pay
101., and another worth 1,6671. pay 131., and another worth
3,7501. pay 101. Is this what yon call equitable taxation
Can you work a common proportion ?
Ch. of Ex.—Yes,
Sp.—Then furnish me with the results of the following
proportions :
If £416 pays £lO, what is that per Cont. ?
If £ti67 pays £lO, what is that per cent. ?
If £9OO pays £lO, what is that per cent. ?
If X 1,2 i 6 pays £lO, what is that por cent. ?
If £1,657 pays £lO, what is that per cent. ?
If .12,03'i pays £lO, what is that per dent, ?
If P 2,228 pays £lO, what is that per cent, ?
the several 3,
If £2,59:'59.' pays £lO, what is that per cent: ?
If £3,222 pays £lO, what is that per cent'
If
ra ‘t
s7uslOtsp.af. £lO, what is that per cents 7
Ch. of Ex. (having worked out proportions) —.dere are

The Chambers of Hesse Darmstadt assembled on
the 18th. Iu the Socoud Cumber six candi-
dates fur the presidency, to be presented to the
Grand Duke, were selected.
HOLIDAYS IN THE CHANCERY OFFICES —The Regis.
trars', Record, Affidavit, and Master,' Offices, as also
• the chambers of the Mast.er of the Rolls, and the
severe' Vice-Chanin ncellext week.ors will be closed from this day
until Wedne,day
THE NEW BISHOP OF RIPON.—The confirmation of the
Rev. Dr ackersteth to the see of Ripon will take place
on Saturday, January 17, and the consecration on Sun.
day the 11th. It is not yet settled whether the con-
fiin:ation Wlll be in London (St. James's) or at York
Minster.

£ s: d.
A With £416 pays at the rate of 2 8 0 per dents
E with £667 pays at the rate of 1 9 11 per cent.
C with £909 pays at the rato of 1 2 2 per cer.t;
n with £1,216 pays at the rate of 0 16 5 per cent:
E with £1,667 pays at the rate of 0 11 11 per cent.
1' with £2,038 pays at the rate of 0 9 9 per cent.
G with £2,228 pays at the rate of 0 8 11 per cent.
Il with £2,593
pays at the rate of 0 7 8 per cent.
I with £3,222 pays at the rate of 0 6 2 per cent,
6
_R with £3,750 pays at the rate of 0 5 4 per cent.
13.---Now, air, geethe you operation of your tgx. Pro-

The Weiner Zeitung states that there wag " public
mour, ing " at 0 lessa during two days for the late
Prince Wor,nzoff.

A letter from Bucharest announces that the Caimacans
have received orders to convoke the divans ad hoc. 'The
palace of the Ciiniacan at that place was hein,4--
arranged
fit the s t ngs of the into' rfttiunal commission.
THE Dr.CORATION FROM THE QUEEN TO THE YOUNG
PRINCE OF PRUSSIA.-We have once or twice referred
to the intended journey of Sir Colin Campbell to Berlin,
for the purpose of presenting the young Prince of
Prussia with the Order of the Garter from the Queen of
England. Considering that the young Prince is on the
eve of becoming her Majesty's son-in-law, it is all natural
and proper enough that she should pay attentions to him ;
but surely a more fitting time might have been chosen
for the purpose than the very moment at which Prussia
is threatening au invasion of the territories of Switzer-
land, as a preliminary step towards the annihilation of
her fro? institutions. This is the opinion universally
entertained among her Majesty's subjects, and we are
only doing our duty in apprising her of the fact.—
Morning Advertiser.

*5 & 6 Viet., cap. 35.
represent the
± The arithmetical term " present value" i employed to
property value or amount which would be paid
y a purchaser for any sum to be received at a future
period or periods, so as to recoup the purchaser the princi-
S
down b
pal, with interest at a given rate. In commercial language,
it is the discounted value of a future payment or payments.
Thus 1001. to be received at the end of a year is worth now
L :0/.,miuus the interest of 1001. In like manner the value ofan
annuity of 1001. for three years' interest is 100/., minus one
year's interest, added to 101., minus two years' interest,
added to 1001., minus three years' interest ; or, in other
words, the amount of three sums of 1001. discounted respec-
tively for one, two, and three years. As compound interest
is always charged and allowed in such calculations, the find-
ing of the exact present value of an annual sum by common
arithmetic is at best a tedious process, never resorted to. The
process, by logarithms, is greatly simplified; but all calcula-
tions of the kind are almost entirely obviated by the use of
Tables of the present value of 1/• per annum, constructed by .
John Smart, formerly of the Chamberlain's-office, London,
which Tables are to be found in all standard works treating
of compound interest. By the mere multiplication of any
fraction, found in the tables, into the annuity, the result is
almost instantaneously found. Thus, if the value of 150/. per
annum for three years is required, interest at 4/. per cent.,
payable half-yearly, the tables give, as the value of 1/. per
annum,which being multiplied into 150/. gives 416/.
ss. as the result.
This mode of finding present values lies at the base of all
r.. 1: :,,J 'on,: io.' I_;,e plit.,.: ~,,.. ,:7'l ,: :',- of f: c, 'lOl,l
~,jd 1,3,0_
hold eLs.tates, alma; i, les for torn of years, otc. The Tables
in the Legacy Duty and Succession Duty Acts, for deter-
mining values at
adpeatiioci
death, are
fidneariLeadvfarloumesthfoersaomthl
same data, afitasc,alvvpluhich.. could be equally p
poem

THE LATE FATHER MATHEW AND THE PUKE OF
WELLINGTON.—Tbe following story shows the great
influence exerted by Father Mathew over the highest
as well as the humblest of the sons; of Erin. In 1847
the leader of one of the temperance bands in Cork en-
listed in the army. He was the chief support of an aged
mother, his wife, and six children. The amiable Father
Mathew applied to the colonel of the regiment in vain
for his di,charge. Being dißappointed, he wrote, con-
trary to the advice of his friends, to the commander of
-Tit ;tLi
letter a. Jartr.,e Duke of \\T`'' lington pr,bents his compliments to the Very Rev. Mr.
Mathew. He could not refuse his application, and has
directed the discharge of the soldier he desired."

Sp.—First toll me what is the estimated value of the
property in Great Britain ?
Ch. of Ex.—lt has been estimated by the best statists to
be worth 5,000 millions.
Sp. —lt is more than that, as your Income Tax returns
demonstrate • but I will assume that your figures are cor-
rect. Now tell me, what is the average annual charge on
the country for national purposes?
Ch. of Ex.—Say, in time of peace, about - 0
Sp. (sharply)—Then 5,000 millions cannot pay 50 mil-
lions, or, in other words, 5,0001. cannot boar the burthen
of 501. annually ? Why, if all the existing taxes were
swept away to-morrow, a Property Tax would produce
easily all the revenue of the country. It xi, however,
some 10 millions at the most that you aro called upon to
supply, now that the war is over; and you are bold enough
to tell me that 5,000 millions cannot pay 10 millions, or, iu
other words, that a tax of 45. on the 100/. in value would
be an intolerable and insupportable burthen on property.
You might just as well try to convince me that Iloneygrub
and Millionnaire, of Lombard-street, are unable to pay their
police rate. The simple truth is, you delude yourself about
the excessive pre,sure of taxation on property, where's
property has never yet felt the strain. Your taxes oppress
not so much because they are excessive, as because they
bear unequally, and where there is not strength to support
their weight. You sot, so to speak, a pony to draw a laden
waggon, and you yoke a team of cart horses to a child's
perambulator. From the man who maintains, as I did
when in this world, a constant struggle for life and its
common necessaries, you wring (after taxing everything
which he eats, drinks, and uses) some 151., 2E, or 301.,
which is the very life-blood, bone, and sinew of himself
and family; adding mockery to injury, by offerinc, him a
receipt for Property Tax. You then collect from those who
enjoy every comfort and luxury, with money to spare for
every form of indulgence, an amount insignificant in pro-
portion to their property, and which does not trench open
the use or enjoyment of a single superfluity. To revert to
the proportionate values again. Each of the properties I
have referred to pays 101. annually for Income Tax, so
that—

A with £4lO pays 1-41st of his property.
13 with £4167 pays 1-66th of his property.
C with £9Ol pays 1-fi3th of his property.
D with £1,216 pays 1-121st of his property.
E with £1,667 pays 1-166th of his property.
P with £2,038 pays 1.203 d of his property.
G with £2,228 pays 1 222 d of his property.
11 with 1;2,593 pays 1-259th of his property.
I with £3,222 pays 1-32'd of his property.
I.£ with £3,750 pays 1-375th of his property.
(Spirit continuing with dignity, and rising into the style
of the late Sir R. Peel.) Thtis, siri by a simple appeal
to the invaluable science which I left for the guidance
of an attentive world, I have shown to ydu that your
income tact is, in fact a graduated properly tax—the
gradation of the scale ox taxatiln proceeding in the in
verse ratio of fairness, sound policy, and ability to sustain
the burthen. Prom neglect of that science with which
my name is imperishably associated this evil has an-on,
and has been perpetuated ; and terrible has been the
punishment which retributive justice has indicted an the
degenerate sons of those who were my pnpils, and admir-
ng discipleS. By a simple' return to the study of this'
sublime rule of proportion, the tax on incomes may be re-
pealed, and a tab on property, valued as property, may be
introduced. Time warns me that I must be brief, for at
cock-crowing oar interview must terminate. There are two
courses open to you; either repeal this tar on profits at
once and for ever, and substitute a bona fide, ad valorem,
Property tax and go down to posterity—which means come
to us in the spirit .vorld —"reading your history in a" grateful
" nation4s eyes;"' or persist in the tax as at present levied
(to palter with or tinker it is useless), and be swept out of
office by the swelling flood of indignant intelligence which
is rising hourly in the breast of the British people. (The
(chancellor displays emotion.) Tell that people from me
that there are three things which I wish them to attend
to-1. Education; 2, Competitive examination; 3. Book-
keeping.
Ch. of (with choerfui aspect)=Ah,l these are points
which I have invariably urged on the Cabinet and advo-
cated in the house ; attention to the education of
,the
masses, and compltitive examination as the basis Cf ad-
mission to ClorkThips in otir public
Sp.— You misinterpret my meaqing. Ido not
now allu le to the masses Or to the clerks. Lot tis begin at
the head Mid not at the feet of the scale; it will be time
to consider the clerks then their betters are attended to,
I wish you to communicate to the trills% people my de-
sire that they should attend more to the education of their
representatives and head officials; let these, before selec-
tion, be put through a course of simple arithmetic, in-
cluding the first four rules, Proportion, and espee'.ally Re-
duction—a rule of which they appear to be latnentablY
ignorant ; let them be required to repeat by rotemy dia-
logue on the income tax before taking upon them their
official duties; a slight examination in English history
and the principles of English law may also be superadded.
Lastly, for my minutes are numbered, let the British
people see to it that the receipt and expenditure of the na-
tion are stated clearly, explicitly, and in detail, according
to the rules laid down in my Elementary Treatise on
Book-keeping, and published annually, before further sup-
plies are asked for.
(The cock crows, the Shade of Cocker melts away ; the

* Amongst other financial paradoxes resulting from the
working of the existing system is the following :—lf a person
has 3,30 J/. Consols and purchases 341. in addition, he is, by
the transaction, a loser of 12.31. Thus, A has 3,3110 Consols,
which p• oduce loss than 1001. per annum, he therefore escapes
taxation, paying nil. He purchases 341. Consols, making a
tmtal of 73,334!., winch
,?;ives an iccome of 100'. a year, and
render., liabic Lo a i'Oductiou in tic pvulid.ll.
15s 10d; if the tax is made permanent, this is equal to a
capital of 1591., so that he gains 341., and loses 1591, in pre-
sent value, or is iu a worse position by 1251.
t Omitting Post-office, OroTra Lands, 4c.