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

A DIALOGUE ON THE IA COME TAX.

TO TUE EDITOR oat VIE Ektizr. Pu7)Uß:rad by Effingham Wilson, Royal Exchange.
SIR,--In my former letters r explained teat the Times SCENE—An apartment in Downing-street, with blue
was in error when It stated that a' Rink of England note books, writing materials, papers, and red. tape. The
would be acceptable to the people only ..te long as it was . Chancellor of the Exchequer is discovered, absorbed iu
supposed to be conaertiale into gold on.derna.nd. I re- apbatious thdught.
risiee from the ground tho Spirit of Cocker.
ferred to the year 1825, when, at a crisis like the pre- pint
eta, e ,
.. .
Spirit of Coeker—What meddlesome medium has sum-
sent, a further issue of notes was retorted to, by the money me from my resting-place ?
advice of Lord Ashburton) inattasirg the paper currency Chencellor of the Exchequer—Forgive, illustrious shade,
to 24,479,0001., when it as generally known that there i
the unwarrantable intrusion upon your--
were only a leer hundreds of thousands of bullion in the , Sp.--`Speek, I pray you, with brevity—my time is short,
Bank coffers. So, witheut relying upon any mere opi. at cock-crow I depart ; speak also iu sincerity, we deal not
niers, the error of the Times is demoi sorated by experie in soft sawder in the spirit-world. Who are you? What
ence, the most powerful of argument e In fact, i find since i do you want with me ?
Oh. of Ex.—l am the Chancellor of her Majesty's Exche-
that my ideas on this point are precisely those of Adam !
Smith ; for we read in hie " Wealth of Nations" that the quer,, an officed otiirctuttaert.iivieffiicT.l—ty_Baenthd --,
value of notes depends upon, not the quantity of gold C4'. o(afsEl se, ausni.la ekrineowingYwell the kindness of your
in the country, but the amount of trades done by the h Di.' ' ' ears—
. , .
coun tar, If the -cireu sting medium, whether gold or i sp. (impatiently).—Spirits have no hearts • confine your-
notes, lie too scarce, as at present, traits is at a dead lock
~ self to facts, and avoid metaphor. Feelings 'I
possess—do
front the want of that medium. If capital is too ahuu. i not trifle•with them.
lent, whether nets, or g 1(1, then the eirculatiog medium Ch.aof Ex.—l humbly crave pardon. I was about to
is idle, from the want pf trade. When the medium old
and notes, is too abuntlar t, the goal is ventured in fo• say that, being aware of the kindliness of your disposition,
, I thought you might be willing to assist me in a difficulty
which oppresses .me greatly, and I took the liberty of call-
reign epeculatione and the notes must lay idle, or be
~,everatd into gold for the same purpose. If their con-your
version is an impeseibility, they then depreciate in value, . lug you from the region of shades to solicit a word of
itt-valuable counsel. -
not altogether because they are inc invertible, for it the
of such as you.
hone trade were suddenly to improve they would lame- Ch. of. Ex .—I think I have a copy in my library of your
diately be employed, and would be no longer dopreci tted; , invaluahle work on the Science of Figures.
but because instead of, like a nnowball, multiplying its - Sp.—Don't attempt any deception. You: may possess a
value by 'stimulation it is only useful to squander in copy of my great work, but it is clear you have never con-
goods or food for actual censamption. The difference of I suited it. It would have been more respectful had you
done so before disturbing my repose. What is it you
value between notes when issued in accordance with the ;
requirements of trade and when too abundant is just the
difference between a sack of wheat and a sack of flour to want
Ch: 7of Ex.—l was desirous, sir, of consulting you con-
cerning the " unreasoning impatience of taxation " on the
con-
y farmer ; the one, ay cultivation, may increase a bun part of many who have raised an outcry against the con-
dredtold, the other is useless except for making into bread, tinuance of the property and income tax.
arid if the quantity of flour is not more than is re- Sp. (angrily). —No such tax exists.
Inked for actual consumption it is as vaaiable as wheat; Ch. of Ex.—Pardon me, respected shade of departed
if flour is too abundant it depreciates its value. But 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 euperflitity, like that I mention ? Am I to be for granting to her Majesty Duties on Profits arising from
presence Property, Professions, Trades, and Offices, until," Sec.*
d from enj tying the fresh air of heaven, which Sp.—A tax is granted to her Majesty upon certain pro-
is necessary to life, lest a hurricane should hurl me fits ,• certainly not upon property, as you calewl know.
pro-
down a precipice and dash me to pieces? Our merchants Ch. of Ex.—l stand corrected; but we cl it a pro-
sod manutacturere require a currency of some sort at a party and income tax.
price.eur profits enable us to pay, not that we may enter I So.—l care not what you call it ; you may throw dust
into foreign speculations, but to carry on our legitimate i in the public eyes, but you cannot in mine—spirits have
trade. We eotnptain that money should increase so end- none.
denly in price, not from any extra demand, arising from Ch. of Ex.—But, sir, "what's in a name ? a rose," you
increased trade and increased profit., but simply because know, `Lboyaanyother name will smell as sweet."
of a temporaryscarcity of bullion in the Bank of Eogiand, name
youY will will, tisteeyteirata make yourthe tax sweet, call it by what
which bullion is after all only a small fraction of the sir-public nostrils. But let
that pa" e; only. wo will, ityou please, call it by its right
culatino medium when we take bills, notes, and checks name!, "I's Tax on Profits."
into consideration. Besides, it does not follow because hof Ex --But is it not in fact &property tax ?
there is a scarcity of gold in the Bank coffers that there Sp.—No, sir. Is your brein property. Is ingenuity
is necessarily a scarcity of gold in England. This brings property ? Professional ekill, literary excellence, plodding
me to the subject of my letter, which is te prove that the well oireeted industry, are these property ?
Bank Act of 1844, whilst it is a source of incalculable Ch. of Ex.—No, air, not in a commercial sense; but we
inconvenience and loss to every one except a few tax property also.
bankers and money lenders, to whom it brings enormous . Sp.g-Yol.deo, thel profitsbartb arisingas from property, but very
p rgepteeervtoyu grievous
hardly
i be
profits at the expense of the smaller capitaliets and the tthrt•eerl
trading coinrnunity generally, it is perfectly inoperative gingerly. You
theu praoyfits of late lu' s '.raya,vybut u
touches them with one of its fingers. y
for the sole purpose for which it was
.framed--ethat, in Ch. of Ex.—Will you explein to me how the Property
fact, it promotes the very evil it aff.cts to core, and and en
—I mean, tax on Profits doe,' this ?
when the evil is brought about it aggravated the cense- Sp.—Listen, then, and I will instruct you. The Income
quencee. The principle of this Bank Act, as ydur Tax, as you call it, is a masterpiece of statecraft, originally
readers are doubtless aware, ii 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 surpessing ingenuity for extracting the largest possible pro-
portion of money from the pockets. of the industriens and
country generally, but in the Bank coffers, that scarcity
is increased, as it may at any time be produced by a intelligentt ?restotre of wealth, in order that a proportionate
proportions:Ws withdrawal of notes, on•tae erroneous sup- °f weals
inwueanlitlyi
;niotnits
aeoctaucion may, be enjoyed b the possessors
uponthe working bees of leihosesesouciarl
position that notes are only valuable as long as they can hive for the relief of the drones. The deep ingenuity of
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, met- which it extracts the money .
inverse ratio of the from the pockets of
•
cantile classes, evils which experience hat demonstrated various clases in precisely the
too clearly. A supporter and admirer of the Bank' Act amount of property possessed. Its these respects
.I can
are it
a bat
whic
y c to h
of 1844 said to me the other day, "I agree with you
doaayL aso 'nmpftsting some southern clitravellers
w whic rote of in
h lightly fennemyl'
that this act is very embarrassing, and causes great loss
its wings a g sense of securit anreose
to the mercantile community, a loss that was never the uncouscious into
objectsoothin from whom it extracted' n full
intended, and which every one must deplore, but some- stream the current of life.
Wog met be done to check speculation, when specu- (The Chancelloreahibite signs of impatience and dissent.)
lation is carried on to too great an extent, and this, Sp. (continuing) —Do you pesssess the works of my dis-
it appears to me, the Bank Act does. The problem tingatshed cotemporary and present coadjutor, Adam
you have to solve is, how is excessive speculations to be Sarah ?
checked without us justly interfering with the legitimate Ch. of Ex.—l have his works, and frequently consult
operations of trade ? How can 3ou make money dearer them.
Sp.—Then turn to the Fifth Book, part 11., of his
to Vet gambler without making it a ruinous price to the
prudent trader ?" " Wealth of Nations," Under the head " Of Taxes," and
The only advantage which is spoken of in connection read what you find there written.Ch of Ex. (reading.)—l. " The subjects of every State
with the Bank Act of 1844 is, that it checks 'peculation ought to contribute towards the support of the Govern-
when carried beyond a certain point. This I most em- meet, as nearly as possible, in proportion to their re•
nhatically deny. litassert most distinclly that the Bank spective abilities. The expense wf Government to the in-
Act promotes speculation, and aggravates and some- dividuals of a nation is like the expense of management to
turtles creates the irjurious consequences attending spa- the joint tenants of a great estate, who are all obliged to
culation. The Bank Act may be 'retributive in its ac- contribute in proportion to their respective interests in the
estate. In the observation or neglect of this maxim con-
lists, the certainly is not preventive. The lac eat capita.
sists what is called the equality or inequality of taxation."
lists, the bill discounters, and the Bank directors are
interested in bringing about a scarcity of capital. Thie. Sp.—Very good. Now answer me. Is your tax on pro-
fits levied iu accordance with the equitable and politic
by playing into each other's hands, and using the dictum of Adam Smith?
Rink Act of 1844, can he easily managed. The Ch. of Ex.—We, that is, my respected predecessors and
Bank directors, when money is plentiful, snake myselfeheve 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—aheue—
get a • reasonable percentaae for their money the Sp. (interrupting)—Shirked it upon the House of Com-
Baringe,
the Hopes, Rothschilds, &e. throw on the liwns*
market, foreign loans, Russian railways, &c.,
&c,, not Ch. of Ex.—ln one sense we did so ; that is to say, we
with any
moved the appeintment of a select committee of that
idea that they will be profitable investments
out siustely for the purpose of employing or rather sink'. Fiououtable House; which resulted irk—
ing the capital of their smaller rivals, making money. Sp.—l know; a blue book, and an outlay of I,oooa, in
scarce and dear as at the present time, arid then reaping Printing. Ch. otEx.—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.
the long cry of rutned families is music to their ears. Sp. (with indignation)=l'llsimplify the matter for them
The bank dirgctors and money lenders calculate their before I have done with it.
profits as they con
era plate mills stendi Ch. of Ex —I must adMit, sir, that the tax is not strictly
t
when there 'is a demand for goods andng idle
operas a property tax; but how dp you prove that the burthen
tires starving when there is abundance of work falls in the inverse ratio of equity and fairness ?
his,lrB4 4. I think,t hin,Rlandaiv'Pead‘seimmOant:tvraie:dottbtalite Bank Act of of my Rudiments of Arithmetic.
sir, is
Sp.—l shall make you prove that. Get me down, a copy
the very evil it affects to cure ;it pretends to check OlLo(i.fyEouxi:
It promotes volume)—Here, is a
(producingi invaluable
speculation, when in fact it drives people to s l copy ' 'll y • lblt t. " indeed ;
pecu ate, Bp. (iarcastica. y)— es,'nye ua e rea use
and then,
by suddenly increasing the value of money,lc ' the`dust upon the cover.
you may wOl a sum In u ,
really brings ruin to hivetreatise. a
dusty
etrnents which, with money at Ch. of Ex.—l must plead guilty of neglect of the science
the real market value, might have been profitable. Lord which derived additional lastre from your --a--
Overatone was the chief adviser, it is thought, of Sir R. Sp. (interruptingleepatiently)—Cau you find the pre.
peel, when the Bank Act of 1844 was framed, and we sent-value of an annual sum ?
may imagine when we remember how he was instru• Ch. of Ex.—l think I can, aided by your useful manual.
mental in filching from the mercantile community the Sp.—Then find me the present value of 1501. per annum
bill toe House of Commons passed fur their benefit— for three years; interest at 4/. per ceut.T
limiting the liability of partners to d(The Chancellor of the Exchequer works laboriously,
the amount of money vebile Shae of they bad invested in a concern—with what sincerity he arithmeticd of courCseocker arrives at the result, by mental
wishes to check speculation without interfering with ' Ch. of Ex.—l make it 41(;l.
the legitimate operation of trade ; for he has given to Sp.—That is right, nearly. Now sit down and find me
bubble 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, and in perpetuity; and place the
C. W. S. values, when found, in tabular juxtaposition.
Ch. of Ex. (after considerable pause).—llere are the re-
sults, sir, iu a tabulated form.
THE PRESENT, OR PROPERTY VALUES Or £l5O PER
ANNUM POR IHE PERIODS UNDERHENTTrn,--

ACTION FOR COMPENSATION FOR RAILWAY

INJURY.

In the Court of Session at Elinburgh a case was tried
on
bil.londay last,
the innwhhiiczehgibnljern.
t,WpriellsieanmtlyAcilueaxratnerd;dr
D _ o_ie, ensign in
inthaenrven' was
Aberdeen, Aberdeenaadtchaeas
Railway
tried before
f oe
were pursuer,
defenders. Thu se w
the Lord President and ajury upon the following issue:—
r
colp
"It being admitted that, on the 27th of July, 1855,
and at or near Cove station on the defenders 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
wlich the pursuer (a pas-eoger by the raid 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 datnage 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 bad
sustained, and therefore the question of damages was the
only one the jury bad to consider.
The jury returned a verdict for the pursuer with 9501.
damages.
The decision, we believe, will carry costs.

Yrs. I Yrs. • Yr• °3. )ss. I Ye2al. e2a3r

30 I 50 lin Per
Years. Years petulty.

1-£ I-X
/XI XIX
4t6 667, 900 1216 1667 2018 2228

X I £
3222 3750

agthsglYl)--Srellswe"n e a f
Sou have found are the property
questions.vai,Slupe.s( uoenfci°sOtlie sums
per annum ?
Ch. of Ex.—Yes ; the amount which would be realised
in the market.
Sp.—Exactly; whether realised by actual eale 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 throe years is 4161., and for 15 year the value is 1,1367 i.
and in perpetuity it is worth 3,7501.
Sp. (angrily)—Aud yet you levy on all three the same
the possessors.
notwithstanding the difference in value to
Cu. of Ex.—How so ?
annum?Bp
Sp.—What tax do you levy on an income of 1501. per

Ch. of Ex.— 101., being Is. 4d. 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 you call equitable taxation ?
Can you work a common proportion ?
Ch. of Ex.—Yes.
Sp.—Then furnish me with the results of the following
proportions :

The Chambers of Hesse Darmstadt assembled on
the 18th. Iu the &coed Caanaber six candi-
dates for the presidency, to be presented to the
Grand Duke, were selected.
HOLIDAYS IN THE CHANCERY OFFICES —The Regis.
t raßecord, Affidavit, and Master.' Offices, as also
th
e chambers of theors Master of the Itoils, and the
will be closed from this day
r se r
until Wednearlay i nnce Vice-Challnext week,

If £416 pays £lO, what is that per cent. ?
If £467 pays £lO, what is that per cent. ?
If £9OO pays £lO, what is that percent. ?
If £1,216 pays £lO, what is that per cent. ?
If £1,657 pays £lO, what is that per cent. ?
If £2,03-; pays £lO, what is that per cent. ?
If £2,228 pays £lO, what is that per cent. ?
If £2,59: pays £lO, what is that per cent. ?
If £3,222 pays £lO, what is that per cent'
°lf £3,750 pays £lO, what is that per cent. ?
Ch. of Ea. (having worked out proportions) —Here aro
the several results :

THE NEW BISHOP OF RIPON.—The confirmation of the
Rev. Dr. Bickersteth 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-
firmation will be in London (St. James's) or at York

2 a. d.
A with £416 pays at the rate of 2 8 0 per cent.
13 with .2667 pays at the rate of 1 9 11 per cent.
C with £9OO pays at the rate of 1 2 2 per coat;
D with £1,216 pays at the rate of 0 16 5 per cent.
13 with £1,667 pays at the rate of 0 1 t 11 per cent.
F 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 cont.
11 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.
Swith £3,750 pays at the rate of 0 5 4 per cent.
:
—"v sir, yon see the operation of your tfts. Pro.

Minster.
The Weiner Zeitung states that there was "public
mour "at Odessa during two days for the late
Prince Wor“oznff.

A letter from Bucharest announces that the Caimacans
have received orders to convoke the divans ad hoc. The
palace of the Caiinaosn at that place was being arranged
f it the a' t ngs of the inte”nati,mal commission.
THE Dn.CORATION FIIOII 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 thrfatening an invasion of the territories of Switzer-
land, as a preliminary step towards the annihilation of
her .free institutions. This is the opinion universally
entertained among ber Majesty's subjects, and we are
only doing our duty
in apprising her of the fact.---
Morning Advertiser.

*5 l' The arithmetical dr 6 Vict., cap. 35.
represent term " present value" is employed to
down b the property value or amount which would be paid
y a purchaser for any sum to be received at a futura
period or periods, so as to recoup the purchaser the princi-
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
I,'ol.,miuus the interest of WO/. In like manner,the value ofan
annuity of 1001. for three years' interest is 1001., minus one
year's interest, added to 1001., 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 11. per annum, constructed by
John Smart, formerly of the Chamberlain's-office London,
which Tables are to be found in all standard work's 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 41. per cent.,
per
annum,piy e
2h all fir arl
which, t the
being tables
multipliedi ve as
intothe 1v ale
gives
e 151.4
ss. as the result.
This mode of finding
present values lies at the base of all
calculations for the purchase and sale of freehold and lease-
hold estates, annuities for terms of years, &c. The Tables
161.
in the Legacy Duty and Succession Duty Acts, for deter-
ix fiudiDg values for other fiscal pur.
mining valuesat death, are derived from the same data, which
could be equally applied
poses.

THE LATE FATHER MATHEW AND THE PUKE OF
WELLINGTON.—The following story shows the great
influence exerted by Father Alathew over the highest
as well ss the humblest of the sonu 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, aed six children. The amiable Father
Mathew applied to the colonel of the regiment in vain
for his di-charge. Being disappointed, he wrote, con-
trary to the advice of his friends, to the commander of
tee forces, who by return of post sent an Autograph
letter asiollows Field Marshal the Duke of Wel-
lington resents his compliments to the Very Rev. Mr.
Mathew. He could not refuse his application, and has
directed the discharge of the soldier he desired."

1 ' Sp.—A Property Tax.
Ch. of Ex.--But have you not demonstrated the diffi-
culty of levying such a tax fairly ?,
Sp.—Not at all. I required you to demonstrate that
your In some Tax was, in one sense a Proper ty Tax; not an
equal tax on the value of property, but a graduated sliding
scale Property Tax, the gradation of the taxation being in
a ratio inverse to the amount of the property. Confound-
ing the produce of skill and labour with the interest aris-
ing from realised property, and then ignoring all those
differences in the value of property arising from the dura-
tion of the income taxed, I oesleavoured to convince you
that your tax was a masterpiece of injustice. What I now
propose as a property tax is a very different thing ; by that
term I mean an equal tax on the value of all realizable
property in the country, so that if 1001. shall pay U., then
1,0001, will pay 101., and 10,1.001. will pay 103/. This tax
being levied upon fair principles, there could be no diffi-
culty in making all contribute • whereas you now exempt
a large proportion of the property of the country, viz , that
which belongs to owners of property up to about 3,0031.
in value—while you inflict the tax in its most oppres-
sive form upon men living by labour of hand or brain,
and who have not 101. worth of property in the world.
Ch. of Ex.—But such a tax will drive property from the
country.
Sp.—lt cannot drive away the land, or houses, or facto-
ries, or funds, or mines, or railways; such fears are alto-
gether delusive. Let me ask, however, have you no fears
lest British industry, skill, and enterprise should seek
more congenial treatment than they receive under your
paternal management ? What would be the value of land,
where would the wealth Of Bogland be, or how would you
raise your taxes, if British skill and enterprise should make
themselves wings and fly away ?
Ch. of Ex.—But could the property of the country sup-
port the burthen ?
Sp.—First tell me what is the estimated value of the
property in Great Britain ?
Ch. of Ex.—lt has been estimated by the best statists to
he worth 5,000 millions.
Sp. It is more than that, as your Interns 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,ie time of peace, about '0 millions.t
Sp. (sharply)—Then 5,000 millions cannot pay 50 mil-
lions, or, in other words, 5,0001. cannot bear 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 is, however,
some 10 millions at the most that you aro called upon to
supply, now that the war is over; and you aro bold enough
to tell mo that 5,00) millions cannot pay 10 millions, or, in
other words, that a tax of 4s. on the 1001. in value would
be an intolerable and insupportable burthen on property.
You might just as well try to convince me that Moneygrub
and Millionnaire, of Lombard-street, are unable to pay their
police rate. The simple truth is, you delude yourself about
the excessive pressure 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 set, 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., 20'., or 3017,
which is the very life-blood, bone, and sinew of himself
and family; adding mockery to injury, by offering him a
receipt for Property Tax. You thou 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 upon
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 £416 pays 1-41st of his property.
with .667 pays 1-66th of his property.
C with £9O pays 1-90th of his property.
kith £1,216 pays 1-121st of his property.
B with £1,667 pays 1-166th of his property.
with £2,038 pays 1.203 d of his property.
G with £2,228 pays 1 222,1 of his property.
H with £2,593 pays 1-259th of his property.
I with £3,222 pays 1-32 'd of his property.
K with £3,750 pays 1.375 th of his property.
(Spirit-continuing with dignity, and rising into the style
of the late Sir R. Peel.) Thus, sir, by a simple appeal
to the invaluable science which I left for the guidance
of an attentive world, I have shown to you that your
income tax is, in fact, a graduated property tax—the
gradation of the scale of taxation proceeding in the in-
verse ratio of fairness, sound policy, and ability to sustain
the burthen. From neglect of that science with which
my name is imperishably associated this evil has ari,en,
and has been perpetuated ; and terrible has been the
punishment which retributive justice has inflicted on the
ideeggednieseraiptleess.onsßoyf
etheoistee
pwleborweteurreemtye pupils, ilssluadny of t and
s
sublime rule of proportion, the tax on incomes may be re-
pealed, and a tax on property, valued as property, may be
introduced. Time warns me that I must be brief, for at
cock-crowing our interview must terminate. There are two
courses open to you; either repeal this to- 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—"readingyour history in a" grateful
" nation's eyes ;"' or persist in the tax as at present' levied
(to palter with or tinker it is nseles9, 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 Ex. (with cheerfujaspect)—Ah ! 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 competitive examination as the basis of ad-
mission to clerkships in our public--
Sp.— Hold. You misinterpret my meaning. Ido not
now allu le to the masses or to the clerks. Let us beginfat
the head and not at the foot of the scale; it will be time
to consider the clerks when their betters are attended to.
I wish you to communicate to the British 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 especially Re-
duction—a rule of which they appear to be lamentably
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
and published annually, before further sup-
Book-keeping,
plies are asked for.
(The cock crows, the Shade of Cocker melts shay ; the

* Amongst other financial paradoxes resulting from the
working of the existing system is the following :—lf a person
annum, Thus, A has 3,3u0 Consols,
he therefore escapes
has 3,30, Consols and purchases 341. in addition, he is, by
wthe i transaction,ehp oduce
leas
s thanloser 1251.01f001.er
taxation, paying nil, He purchases 341. Consols, making a
total of 3,3341., which gives an income of 1001. a year, and
renders him liable to a reduction of 116 d in the pound=4/.
15s 10d; if the tax is made permanent, this is equal to a
capital of 1591., so that he gains 34/.; and loses 159/, in pre-
sent value or is iu a worse position by 1251.
'F Omitting Post-office, Crown Lands, &c,

Present Proprtion
Value of mount of Rate per of t rop .rty
Years. £I3O ler Ta,t levied Cent. of paid
Annum. Annually. Taxation. Annually.
£ £ .£ s. d.
3 416 10 2 II 0 1.415 t
5 657 10 1 Sll 1-66th
7 900 10 1 2 2 1-90:h
10 1,216 10 0,16 ?, 1-121st
15 -1,667 'lO 011 11 1-166th
20 2,038 30. 0 9 9 1.20:3d
23 2,228 10 0 811 1.22A1
15 2,343 10 0 8 6 1-234th
30 2,593 10 0 7 8 1-259th
40 2,968 10 0 6 8 1-296th
50 - 3,222 ' 10 . 0 6 2 1-322,1
60 .3,393 10 0 510 1-331 th
70 3,503 10 0 5 .8' • 1-350th
80 3,587 10 0 5 ,G, ,1-358th
90 3,640 10 0 5 5 'l-361th
Perpetuity :3,750 10 0 5 4 1-375th

Explanation of Table. —An income certain of 1501. for
fifteen years is worth 1,f47/.. and paying 10/. Income Tax
is taxed at the rate of lls. ad. per cent. on the present
value, being 1-66th part of the property. A similar in-
own° in perpetuity (say in the Funds) is worth 3,7501., it
is taxed at ss. 4d. per cent., being 1-375th part of the
value.