The Sun.
London, England, 1844-07-18 00:00:00

THE SUN, LONDON, riItURSD"AY EVENING JULY 18, 1844

THE PITT POUND VERSUS THE PEEL POUND.

AN APPEAL TO COMMON SENSE.

PosTmAnt—THAT TAXES LAID ON COMMODITIES DO NOT ADD TO THEIR INTRINSIC VALUE.

*,,,* The Commodity, Wheat, has been taken as the Example, but the reasoning applies to all other com-
modities.—lt is assumed that fifty per cent. has been required to be added to the price, in order to
remunerate the producer for the burdens imposed on him by indirect taxation.—The Sovereign and
One Pound Note are assumed to coexist for the sake of argument.

" Look here upon this picture and on this :—The counterfeit presentment of two Brothers."

PITT'S POUND.
No. I. No. 11.
Two Pounds. v Two Pounds in Gold.
Gold as money. II

PEEL'S POUND.
No. I. No. 11.
Two Pounds. Throe Pounds in Gold.
Gold as money.
It
C>tti, 6g 1= Li Ll £1
WHEAT
,WHEAT,

05.3. 8
13s. 4d. 13s. 4d. 13s. 4d,
_ O.T
•1111)
OF OF = [Xi
WHEAT WHEAT

Gold as a commodity.

Gold as a commodity.

[The 10 dwts. 6 grs. of gold in two sovereigns, and
the quarter of wheat are here assumed as natural
equivalents; i. e., their value in relation to each other
estimated by the labour necessary to bring them to
market.]

[The 10 dwts. 6 grs. of gold in two sovereigns, and
the quarter of wheat are here assumed as natural
equivalents ; 1. e. their value in relation to each other
estimatt d by the labour necessary to bring them to
market.]

PITT'S POUND.
(See above, Diagram No. II.)

PEEL'S POUND.
(See above, Diagram No. IL)
In this case, as in considering Pitt's pound, it is
assumed that the pressure of indirect taxation has forced
up wheat from two pounds to three pounds per quarter.
From the above diagram it will appear, that by keeping
the paper pound at par with the gold pound, as Sir Robert
Peel contends it should be, a quarter of wheat is now
equivalent to 15 dwts. 9 grs. of gold ; therefore, accord-
ing to Peel, taxation has added to the intrinsic value of
wheat (see postulate) ; because if it has not, 15 dwts. 9
grs. of gold must be equal to 10 dwts. 6 grs., and three
gold pounds must be equal to two gold pounds., i. e.
3=2, which is absurd. But Peel's pound, gold
though it be, has lost its value, or power of
purchasing, in proportion as taxation has added
to the price of wheat ; each pound has lost
one-third of its power to purchase, and goes no fur
ther than 13s. 4d. would have done before taxation was
imposed : as money, therefore, its value or power of pur-
chasing, is 13s. 4d. ; as a commodity its value is 20s.
Under this system, taxation cannot be added to the
price of commodities, without adding to their intrinsic
value in gold, which has a most ruinous tendency as re-
gards both our home and foreign trade.
With respect to our home trade, if we could surround
Britain with a wall to keep in the "gold, and could com-
mand at will as much of it as the necessity of expressing
our taxation in it required, then might our pro-
ducer be enabled to recoverfrom the consumer the amount
of taxation which, in the shape of Excise and Customs'
duties, he has originally advanced to the State ; but this
being out of the question, the home producer must make
up his mind to sell his goods or produce at their natural
or untaxed level. The wealthy and unproductive
are' thus freed from their just share of the burden
of taxation, which the producers cannot recover
from them by an enhanced price of the products
of their industry. The burden of indirect taxation thus
falls entirely on the productive classes of society ; who,
to shield themselves, are obliged to use every expedient
to diminish the expense of production—low wages,
lengthened hours of work, the substitution of the labour
of women and children for that of men, the introduction
of machinery to supersede, not assist, human labour:
all these are the fruits of the attempt to keep
the paper pound at par with the gold pound.
Low and unremunerating prices are the consequence ;
agriculture, manufactures, and trade languish ; la-
bourers and operativesare thrown out of employment; and
the cry of over-production, over-population, is heard:—the
revenue declines; and the Minister is driven to impose a
property and income-tax, which tends still further to
impoverish the people, by the diminution of expenditure
and employment to which it gives rise.
In the foreign market we no longer deal on the prin-
ciple of barter, i. e. giving equal values for equal values;
for we are compelled to exchange the labour embodied
in 15 dwts. 9 grs. of gold for the labour em-
bodied in 10 dwts. 6 grs. We give the foreigner
three for two, and are congratulated on the excess of our
exports, and on the favourable state of the exchanges,
which is but an indication that the process of giving
three, and GETTING TWO, is in DISASTROUS OPE-
RATION ! Under this system the absentee derives a
profit by his want of patriotism—the income which he
draws from this country is no longer burdened with his
share of taxation, since, for every three pounds which
he draws, he receives 15 dwts. 9 grs. of gold, instead
of the 10 dwts. 6 grs. which is his due—he luxuriates
in a foreign land on the extra 5 dwts. 3 grs. of gold
wrung out of the taxed producers of this country.
Should it happen that the expansive power of taxa-
tion in raising prices is allowed to operate by a free
issue of money, and that prices in consequence approach
to, or even reach their taxed level, then the foreigner
will be glad to dispose of his quarter of
wheat, or other commodity of equal value, and taking
advantage of our taxed price, obtain 15 dwts. 9 grs. of
gold, for what cost him in his own country only 10 dwts.
6 grs. ; thus he receives a premium of 50 per cent. to
take our gold instead of our goods. Under this opera-
tion the gold vanishes, " panics" ensue, " fluctuations in
prices" occur to a fearful extent, and a deadly struggle is
again made to bring back the gold of which we have al-
lowed ourselves to be so absurdly robbed.
In Peel's Pound the National Debt has been
virtually doubled in Amount, and never can be
paid.
Peel's Pound WILL RUIN the country.

In this case it is assumed that the pressure of indirect
taxation has forced up wheat from two pounds to three
pounds per quarter: the pound, therefore, loses its value,
or power of purchasing, in the proportion that indirect
taxation has added to the price of wheat: Each pound
loses one-third of its power to ptuchase, and goes no
further than 13s. 4d. would have done before taxation
was imposed. By thus permitting the paper pound to
depreciate with respect to the geld pound, the intrinsic
value of wheat in gold is preserved: a quarter of wheat
being still equal to 10 dwts. 6 grs. of gold (see postu-
late). Under this system, taxation may be added to the
price of commodities to any extent, without altering their
natural value in gold—a property of the highest conse-
quence, both with respect to the home and foreign
market.

By means of increased prices in the home market, the
producer is enabled to recover from the consumer the
amount of that taxation which, in the shape of Excise
and Customs' duties, he has originally advanced to the
State: the labourer charges the taxation, which enters
into the articles which he consumes, to his employer:
the employer adds it to the price. The wealthy and un-
productive are thus made to bear their just share of the
burden of taxation in the enhanced price which they
pay for every product of industry. The producers, too,
contribute to the revenue in their capacity of consumers;
and, by the stimulus which remunerating prices give to
the agricultural and manufacturing producer, new energy
is imparted to all; new fields of enterprise are opened
up; new wealth is called into existence; the wants and
tastes of the people, not only keep pace, but expand, with
the powers of production. The greater the production,
and the greate► the popuation, the more easily does the
burden of taxation fall on all. With the distributive
power which such a currency gives, the wealth of the
country is proportionably diffused through all classes of
society in their several degrees; and, as no excessive toil
is exacted from the labourer in field or factory, a fair
opportunity is given him of raising himself in the social
scale.

In the foreign market we thus deal on the principle of
barter; our high prices not interfering with the intrinsic
or gold value of oar goods or produce. The foreigner
may sell to us his quarter of wheat, or other commodity
of equal value, for three pounds instead of the two, for
which he would have sold it before taxation enhanced
its price in this country ; but, as in this case, his three
pounds exchange for 10 dwts. 6 grs. of gold only, he
derives no undue advantage over us—he has sold his
goods to us at their natural price. In like manner,
when we sell abroad our quarter of wheat, or com-
modity of equal value, we are content to receive in ex-
change 10 dwts. 6 grs. of gold, or goods of equal value ;
for the gold or goods will command the high prices of
this country, and exchange for three pounds of its cur-
rency. We may thus carry on a flourishing foreign
trade with all the foreign exchanges against us—they
being merely so nominally.
Under this system, the absentee is prevented from
profiting by his want of patriotism. Every three pounds
which he draws from this country will bear his share of
taxation, and yield him only 10 dwts. 6 grs. of gold ;
which will command no more abroad than his three
pounds would do at home.
Under this system, the paper pound becomes the
pound of account in all transact►ons in this country; and
it derives its value from being receivable at the Treasury
in payment of taxes. Its value is regulated by the
amount of indirect taxation. It loses its power of
purchasing as taxation is increased—it increases in its
power of purchasing as taxation is diminished. Under
this system no " panics " or " fluctuations in prices "
can be experienced, the pound preserving a uniformity
of value indicated by the gradual operation of taxation.
Under this system all our wealth remains among us, and
we may confer as much of it as we please on the indus-
trious classes of society, by increasing the wages of the
labourer and the artisan.

In Pitt's Pound the National Debt was chiefly con-
tacted, and might have been paid off within the last
wenty-five years.
Pitt's Pound WOULD SAVE the country.

GENERAL ANNUITY SOCIETY.
A festival of this Society took place at the London
Tavern yesterday evening, the object of which was stated
to be to assist in resuscitating its operations. A very
excellent dinner was provided on the occasion by the
spirited host, and the utmost enthusiasm prevailed in
reference to the object. Shortly after six o'clock, the
chair was taken by W. Tooke, Esq., F.R.S.
After the cloth was removed, and " Non nobis Domino"
had been sung by the professional gentlemen, namely,
Mr. Bruton (director), and Messrs. Edney, Ashton, and
F. Martin,

The CHAIRMAN proposed in succession the following
toasts :—" Her Majesty the Queen," " The Queen
Dowager," " Prince Albert," " The Prince of \Vales and
the rest of the Royal Family," " The Army and Navy,"
the whole of which were received with customary enthu-
siasm.
The CHAIRMAN then said they had now arrived at the
very pith and marrow of the festival ; and he should
indeed feel diffident in alluding to it, were he not satis-
fied that every one present felt the warmest interest in
the cause which it was their object to promote. They
know that that Institution had had a period of con-
siderable decay, or at least of decline, and the object of
their assembling together was, as far as in them lay, to
contribute by every means in their power, to restore it
to that position among the charities of the metropolis,
to which it was so peculiarly entitled.—(Cheers.)
It was almost the only Institution which aimed at the
relief of that class which especially claimed their sym-
pathy, namely, the decayed males and females who had
known better days—who having moved in the same
sphere of life as themselves, felt most acutely the want
of those comforts which it was the object of that Institu-
tion to bestow.—(Hear.) He considered that meeting
to be in the nature of a Committee meeting. It was a
meeting in which they had met to discuss and promote
ulterior proceedings, which by the aid of the public,
would place the Society in its right position.—(Hear,
hear.) They heard much in the present day about
Young England, and of the infusion of young blood.—
(Hear, hear.) He would not say anything as to the
political effect of the operations of the Young Eng-
land party in this country ; but he was quite sure
that their zeal could not be more usefully displayed than
in treading in the footsteps of their predecessors, by
placing this Institution in that prominent position which
its benevolence entitled it to occupy. A printed paper
had been circulated, from which they would see the
gradual decline of the funds, and consequently of the
Society's means of usefulness. It should be their
object individually to promote the cause between that
period and the next anniversary, when he trusted the
Society would assume a proper attitude, and that chair
be occupied either by royalty or by some illustrious
person worthy of the Society and of the occasion. He
should be most happy, as far as it was in his power, to
contribute to the funds.—(Cheers.) With unfeigned
wishes and aspirations for the accomplishment of their
object—namely the ample restoration of their means
of usefulness—he begged to propose "Prosperity to the
General Annuity Society."
The toast was drunk with three times three.

Mr. RICHARDSON then read a report in reference
to the proceedings of the Society. He commenced
by referring to its early history. The Institution 'Was
established in 1827, for the purpose of allowing annuities
to decayed merchants, bankers, professional men, their
widows, and clerks, and to single females, daughters of
persons belonging to such classes of society. It was
formed under,the most flattering auspices, and at first
its success was very great; but in the course of three or
four years the funds began to decline, and they had con-
tinued in a very low state from that time to the present,
although a great number of annuities had been granted.
Two months ago the Directors met for the purpose
of considering whether it was possible to do anything to
resuscitate this charity ; they came to the conclusion
that it was possible to revive it, and the result of their
deliberations was the present festival, which was held for
the purpose of advancing that object. There were several
circumstances which led the Directors to hope that that
meeting would be the foundation of permanent success.
There was still 1001 a year coming into the treasury of
the Society from annual subscriptions. The Directors
had come to a resolution that there should, in future, be
one election a year instead of two, and that the minimum
subscription should be five shillings a year for one vote,
ten shillings for two, and so on, assimilating the system
to that of the National Benevolent Institution. They
had a particular reason for fixing the minimum sub-
scription at five shillings. There were very few clerks
in bankers' or merchants' offices who could not afford to
subscribe five shillings a year, and to continue that sub-
scription.—(Hear, hear.) It was the continuation of
subscriptions which was the great desideratum.—(Hear,
hear.) It was much better to give five shillings a year
regularly, than to give a donation of 11, and then think
no more of the Society.—(Hear, hear.) The losing
sight of this had been one great cause, he believed, of
the decline of the funds. He felt perfectly persuaded
that it was only necessary to pull together, in order to
bring this charity into a condition of the greatest pros-
perity; and he trusted that next year they would have
to congratulate each other on the success of this attempt
to resuscitate so excellent an Institution.—(Cheers.)
Amongst the numerous donations announced by the
Secretary were—His Royal Highness Prince Albert, 20
guineas ; Sir Felix Booth, Bart., in addition to 20 gui-
neas, 101. 10s. ; A. W. Robarts, Esq., in addition to
1051, 201. ; Luke J. Hansard, Esq., 20/. ; the Hon. Miss
Harley, 101. 10s. ; the Duke of Cleveland, 101. 10s. ;
James Tyler, Esq., 101. 10s. ; Mrs. H. F. Richardson,
51. ; B. Bond Cabbell, Esq., 31/. 10s. ; C. Tudway Swan-
ston, Esq., 5/. ; Sir John H. Pelly, Bart., 10/.
The following toasts were successively drunk and re-
sponded to :—" The health of the Chairman," " The
health of Abraham Wildey Robarts, Esq.," the Presi-
dent of the Institution," (which, in the absence of Mr.
Robarts, was acknowledged by Mr. Stephens) ; " The
health of Charles Stephens, Esq."
A. ♦ote of thanks was also given to the Directors, the
Treasurer, the Trustees, and the Secretary of the Insti-
tution, and to the Stewards of the dinner,
The CHAIRMAN proposed " The Hon. Miss Harley
and the Lady Subscribers."

TO THE RIGHT HON. LORD
MONTEAGLE.

17, Carlton House Terrace, July 15, 1844.
MY LORD,—As it appears from the Morning Oro-
nick of Saturday last, that your Lordship has thought
proper to avail yourself of my signature being attached,
as Chairman, to a circular emanating from the Society
' for the Emancipation of Industry, publicly to make a
personal allusion to me, on Friday, in a place where I
could make no answer, the only adequate channel left
for that purpose is the public journals ; and as you used
my unimportant name in an effort (however abortive) to
bring into contempt the principles of a benevolent So-
ciety to which I belong, I feel bound to enter my pro-
test. Your Lordship misrepresents me when you say " that
a few sessions back I brought forward several schemes
for a new arrangement of the representative system of
Ireland, and also of this country." The Society to which
I then belonged, neither professed nor practised any-
thing of the kind, but the very reverse. It was formed
for the purpose of checking, in a constitutional manner,
a systematic violation of the law, which, under the fos-
tering care of the political party to which your Lordship
belonged, had become a crying evil. The country,
from one end to the other, responded to our call, and
we succeeded in putting down the nuisance. In the
" other occupation" which it rejoices your Lordship
that I have now found, Icalculate upon your Lordship's
assistance, either by taking the trouble to understand
our principles (in which case I am confident you will
approve them), or by pursuing the line of opposition
which you have commenced. In either case I feel no
small confidence that we shall be successful in freeing
this country from one of the greatest curses that was ever
inflicted upon it, viz., the bullionist-system of currency.
I beg to assure your Lordship that the principles of
the Society cannot be controverted, nor its members
diverted from propagating them, by the stale trick of
holding up a paper, and calling it "prodigious non-
sense." This piece of acting answered its purpose in
another place on the introduction of the Bill, but your
Lordship has blundered sadly in the imitation. Sir
Robert Peel held up a thick volume, which would have
taken the House three days to read—you, a short paper
that might have been read in three minutes. Sir Robert,
amidst a sweeping condemnation of many opinions, did not
venture to attack or in any way characterise the prin-
ciples of the Society for the Emancipation of Industry,
nor did he even refer to them. It is possible that, a!-
though they have been laid before him, he has never
made himself acquainted with them. You extracted a
single passage, and put your misconstruction upon the
whole paper. Had you read it through, the House
would have foiled that at any rate, it was not liable to
the objection made by Lord Ashburton to your own
speech, viz., that one part contradicted the other.
I warn your Lordship that, however available this sub-
stitute for argument may be among those who do not
yet sufficiently feel the ruinous effects of the measure of
1819, it will not stay the progress of our opinions among
the intelligent portion of th community out of doors,
where they are spreading with that steady progress
which is the accompaniment of truth and the assurance
of success.

Your Lordship may conceive it to be " nonsense" to
suggest an inquiry into the subject of the currency
previously to legislation—nonsense, to suppose
that the national debt has any existence—nonsense,
to imagine that the taxation arising out of it is
of any consequence to those who pay it—nonsense, to
think it unwise and unjust to insist upon the payment of
all engagements in a commodity which cannot be pro-
cured in sufficient quantity—nonsense, to suppose that
such a demand, if enforced, will lead to fluctuations,
panics, and bankruptcies—nonsense, to suggest that if
you engage to sell your gold at a low price nobody will
be likely to give yeu a higher relative price for your
produce or manufactures, whatever they may be—
nonsense, to avow that taxes levied upon a pro-
ducer increases the expense he incurs in producing—
nonsense, to suppose a definite quantity of an article in
universal demand like gold, can at one and the same
time express the untaxed expenses of the foreigner and
the taxed expenses of this country, even when the latter
are 50 per cent. higher than the former—nonsense, to
deny that two are equal to three—nonsense, to prefer a
system which, previous to 1819, made the natioa happy,
wealthy, and loyal, and was in the course of rapidly
paying off the national debt, and reducing taxation, to
one which since that time has produced a decline of
revenue, undue speculation, panics, bankruptcies,
pauperism, incendiarism, and crime, to an extent pre-
viously unexampled. As, however, the Society cannot
concur in your views, they must leave it to the public to
judge whether there be more "nonsense" in their circular
letter, or in your Lordship's speech.
I have the honour to be, my Lord,
Your Lordship's most obedient servant,
ANDREW SPOTTISWOODE.

The convivialities of the evening were interspersed and
enlivened by the excellent performances of the profes-
sional gentlemen already mentioned, Mr. Toole, jun.,
officiating as toast-master, and the company did not
break up until a late hour.