SECTION VI (2)

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FINANCE AND FOREIGN TRADE

1. Act abolishing Tenure by Knight Service, etc., 1660—2. Navigation Act, 1660—3. Proposals for Free Export of Gold and Silver, 1660—4. An Attack on the Navigation Acts, c. 1663—5. Free Coinage at the Mint Proclaimed, 1666—6. The East India Company and the Interlopers, 1684—7. Foundation of the Bank of England, 1694—8. The Need for the Recoinage of 1696—9. Speech by Sir Robert Walpole on the Salt Duties, 1732—10. Pitt's Sinking Fund Act, 1786—11. The Suspension of Cash Payments, 1797—12. Pitt's Speech on the Income Tax, 1798—13. Foreign Trade in the early Nineteenth Century, 1812—14. Debate on the Corn Law, 1815—15. The Corn Law of 1815—16. Free Trade Petition, 1820—17. The Foundation of the Anti-Corn-Law League, 1839—18. The Bank Charter Act, 1844—19. Debate on the Corn Laws, 1846.

This section illustrates various departments of Government policy: taxation and revenue (Nos. 1, 9 and 12), public debts (Nos. 7 and 10), fiscal and trade policy (Nos. 1, 2, 4, 6, 13-17, 19), the coinage (Nos. 3, 5 and 8), and the national Bank (Nos. 7, 11, and 18). The specimens of revenue policy begin with the Act by which Charles II abandoned feudal dues in exchange for a general and hereditary excise (No. 1). The principle involved in this transaction may be compared with Sir Robert Walpole's remarks on the question of justice in taxation (No. 9) and with Pitt's speech on introducing the Income Tax in 1798, which also gives a survey of the whole financial position and a defence of the policy of paying for wars out of hand (No. 12). The opposite policy, of war-loans, had been adopted earlier, and the French wars of the seventeenth and eighteenth centuries established the funding system. An outline is given of the Sinking Fund by which it was supposed that this national liability could be reduced while it was being created (No. 10). The foundation of the Bank of England (No. 7) was an important step in the policy of national loans as well as an encouragement to the growth of capital and capitalist industry. The French wars at the end of the eighteenth century produced a crisis in the management of the Bank's reserve; an official report explains the causes of the panic which led to the suspension of cash payments and also shows the deliberate policy by which the suspension was continued till 1819 (No. 11). This was the first controversy of great importance on the subject of currency since the seventeenth century, when the government of Charles II had adopted the policy of allowing free export and free coinage of Gold and Silver (Nos. 3 and 5). The gradual deterioration of the coinage which led to the recoinage of 1696 is illustrated by a contemporary description (No. 8). The Bank Charter Act (No. 18) shows the financial aspect of rapid national expansion in the nineteenth century and the method adopted to give stability to credit by limiting the issue of unsupported paper currency, in the period before the triumph of the cheque system.

The Navigation Act of Charles the second's reign (No. 2) formed part of a system by which the State set itself to encourage particular industries and took a part in the struggle for commercial leadership. (See also Nos. 4 and 6.) The complications of this policy with considerations of revenue and particular interests rapidly increased, while the manufacturing export trade became more important (No. 13). A reaction led by the Economists had begun in the latter part of the eighteenth century. In the nineteenth century the battle raged over the special protection successfully claimed by the Agricultural Interest in the depression at the end of the Napoleonic wars (No. 15). The debates and petitions (No. 14, No. 16, No. 19) bristle with the new Political Economy. They also give an indication of the new social class created by the Industrial Revolution and of the struggle of the landowners with the North of England manufacturers who founded and financed the Anti-Corn-Law League, the most successful of all political associations for an economic object (No. 17).

AUTHORITIES

The most important modern authorities on taxation and finance are: Dowell, History of Taxation and Taxes; Seligman, The Income Tax; Kennedy, English Taxation,1640-1799: on currency and banking, Shaw, History of the Currency; AndrÉadÉs, History of the Bank of England; Thorold Rogers, The First Nine Years of the Bank of England; Bagehot, Lombard Street: on commercial and fiscal policy; Day, History of Commerce; Levi, History of British Commerce; Hewins, English Trade and Finance; Beer, The Old Colonial System and British Colonial Policy; Hertz, The Old Colonial System; Ashley, Surveys; Cunningham, Growth of English Industry and Commerce, Modern Times, and Rise and Decline of the Free Trade Movement; Bruce, Annals of the East India Company; Holland, The Fall of Protection; Morley, Life of Cobden; Trevelyan, Life of Bright; Nicholson, The English Corn Laws. Smart, Economic Annals of the Nineteenth Century, analyses economic debates, legislation and conditions in the early nineteenth century.

Bibliographies in Cunningham, op. cit., Day op. cit., Cambridge Modern History, Vols. VI and X, and Grant Robertson, England Under the Hanoverians.

Contemporary.—Parliamentary Paper, XXXV, 1869, gives a summary of public revenue and expenditure, 1688-1869. Important documents for financial history are contained in the seventeenth century Treasury Papers (ed. Shaw). The Advice of the Council of Trade on the Exportation of Gold and Silver, 1660, is in McCulloch's Collection of Tracts on Money. The official history of the suspension of cash payments is in the Reports of Committees on the Restriction in Payments, 1797 (XI), on the High Price of Gold, 1810 (III), and on Cash Payments, 1819 (III).

A collection of literary authorities on monetary questions was made by McCulloch, "A Select Collection of Scarce and Valuable Tracts on Money"; it includes Petty's Quantulumcunque, Isaac Newton's Representations, etc. For contemporary opinion on taxation and finance, see Petty, Taxes and Taxation Price; Observations on Reversionary Payments, and The State of the Public Debts; Smith, The Wealth of Nations, and the Speeches of Pitt (Everyman Series), and of Cobden (edited Bright and Rogers). For foreign commerce consult The Diary and Consultation Book of Fort St. George (ed. Pringle), and Reports of Commons Committee on Orders in Council, 1812, together with the pamphlet literature on Colonial policy (see Cunningham op. cit. and McCulloch's Select Collection of Tracts on Commerce).

1. Act Abolishing Tenure by Knight Service, etc. [Statutes, 12 Charles II, 24], 1660.

It is hereby enacted that the Court of Wards and Liveries and all Wardships, Liveries, Primer-Seizins, and Ouster-le-mains, values, and forfeitures of marriages by reason of any tenure of the King's majesty or of any other knight's service, and all mean rates and all other gifts, grants, charges incident or arising for or by reason of wardships [etc.], be taken away and discharged. And that all fines for alienation, seizures, and pardons for alienations, tenure by homage [etc.], also Aide pur file marrier et pur farer fitz chivalier, and all other charges incident thereunto, be likewise taken away and discharged, as from February 24, 1645. And that all tenures by knight's service of the King, or of any other person and by knight service in capite, and by socage in capite of the King, and the fruits and consequents thereof—be taken away and discharged.

And all tenures of any Honours, manors, lands, tenements, or hereditaments of any estate of inheritance at the common law, held either of the King or of any other person or persons, bodies politic or corporate are hereby enacted to be turned into free and common socage to all intents and purposes.

[Purveyance and Pre-emption abolished.]

XIV. And now to the intent and purpose that his Majesty, his heirs and successors, may receive a full and ample recompence—there shall be paid unto the King's majesty his heirs and successors forever hereafter in recompence as aforesaid the several rates [etc.] following:—

[1s. 3d. a barrel of beer sold above 6s. a barrel.
3d. a barrel of beer sold at 6s. or below 6s. a barrel.
2d. a gallon of spirits imported.
3s. a barrel of beer imported.
1d. a gallon of aqua-vitae, etc.]

2. Navigation Act [Statutes, 12 Chas. II, 18], 1660.

An Act for the encouraging and increasing of shipping and navigation.

For the increase of shipping and encouragement of the navigation of this nation wherein, under the good providence and protection of God, the wealth, safety and strength of this kingdom is so much concerned; be it enacted by the King's most excellent majesty, and by the lords and commons in this present parliament assembled, and by the authority thereof, that from and after the first day of December one thousand six hundred and sixty, and from thenceforward, no goods or commodities whatsoever shall be imported into or exported out of any lands, islands, plantations or territories to his Majesty belonging or in his possession, or which may hereafter belong unto or be in the possession of his Majesty, his heirs and successors, in Asia, Africa or America, in any other ship or ships, vessel or vessels whatsoever, but in such ships or vessels as do truly and without fraud belong only to the people of England or Ireland, dominion of Wales or town of Berwick-upon-Tweed, or are of the built of and belonging to any the said lands, islands, plantations or territories, as the proprietors and right owners thereof, and whereof the master and three-fourths of the mariners at least are English.

And it is further enacted by the authority aforesaid, that no goods or commodities that are of foreign growth, production or manufacture, and which are brought into England, Ireland, Wales, the islands of Guernsey and Jersey, or town of Berwick-upon-Tweed, in English-built shipping, or other shipping belonging to some of the aforesaid places, and navigated by English mariners, as aforesaid, shall be shipped or brought from any other place or places, country or countries, but only from those of the said growth, production or manufacture, or from those ports where the said goods and commodities can only, or are, or usually have been, first shipped for transportation, and from none other places or countries.

3. Proposals for Free Exportation of Gold and Silver [McCulloch, Tracts on Money,1856, pp. 145], 1660.

Advice of his Majesty's Council of Trade, concerning the Exportation of Gold and Silver in Foreign Coins and Bullion.

[Concluded Dec. 11, 1660.]

... Supposing that it were of absolute necessity to restrain all money and bullion, once imported, to be kept within this kingdom. It then came under consideration whether either the laws hitherto made in that behalf are, or that it be possible to make a law, adequate to prevent the exportation thereof.

And here we were convinced, by experience, that the laws of this kingdom (hitherto made) have been of no effect to the end thereby designed; and looking abroad, as there are nowhere more strict and severe laws against the exportation of coin and bullion than in Spain and France, we found all to be to as little purpose.

We then, thirdly, enquired what loadstone attracted this metal by force of nature to itself, against all human providence or prevention; and soon found that it was alone the present course of trade and traffic throughout the world....

And therefore, in the fourth place, we discovered that, as it is impossible by any laws to restrain money and bullion against the use that traffic finds for the same; so also the adhering to this principle of restraining thereof discourageth, as well all natives as foreigners, to import any money or bullion—where the exportation thereof is forbidden them.

From whence, fifthly, the many advantages (thereby given away clearly to the stranger from the English) present themselves; for the stranger, knowing we must be furnished in one of these places for our occasions, make us pay dearly for our accommodation.

So that, to wind up all that has been said, the result of the several reasons and arguments herein summed up seemed to be this: that time and experience instruct, and the present state of traffic throughout the world require, that, for the increase of the stock of money in these your Majesty's kingdoms, some way of liberty for the exportation, at least of foreign coin and bullion, should be found out, and put in execution; which hath produced the humble advice offered in the preceding paper.

4. An Attack on the Navigation Act[384] [P.R.O. Colonial Papers, Vol. XXXVI, No. 88], c. 1663.

To the King's Most Excellent Majesty.

The Humble Remonstrance of John Bland, of London, Merchant, on the behalf of the Inhabitants and Planters of Virginia and Maryland.

Most humbly representing unto your Majesty the inevitable destruction of these colonies, if so be that the late Act for increase of trade and shipping be not as to them dispensed with; for it will not only ruinate the inhabitants and planters, but make desolate the largest, fertilist, and most glorious plantations under Your Majesty's Dominion; the which, if otherwise suspended, will produce the greatest advantage to this nation's commerce and considerablest income to Your Majesty's revenue, that any part of the world doth to which we trade. [Rejoinder to argument that the Dutch prohibit English trade with their Indian Dominions. The American colonies are in need of customers. Why should the Dutch be prevented from dealing with them?]

Virginia and Maryland are colonies, which though capable of better commodities, yet for the present afford only these, tobacco chiefly, then in the next place corn and cattle, commodities almost in every country whatever to be had; withal they are such commodities, that except purchased in these plantations so cheap as not elsewhere so to be had, none would ever go thither to fetch them, no, not we ourselves. Which being so, then certainly it cannot stand with wisdom to hinder the Hollanders from going thither.

Then again, if you keep thence the Hollanders, can it be believed that from England more ships will be sent than are able to bring thence what tobacco England will spend? If they do bring more, must they not lose both stock and block, principal and charges?...

A further prejudice doth evidently attend the commerce by this Act, not only in debarring Hollanders from trading to these colonies, but thereby we do likewise debar ourselves; for, by the Act, no English ships can load any goods in Virginia and Maryland to transport to any country but our own territories.... I demand then, if it would not be better to let our English ships, loading in those colonies, to go whither they please, and pay in the places where they do trade (if it will not be dispensed with otherwise), the same customs to your Majesty as they should have done in England, or give bills from thence to pay it in England? Certainly this would be more beneficial to the commerce, and security both for the ships and goods, and advantageous to your Majesty; for whilst they are coming to England they might be at the end of their intended voyages and obtain a market, which haply in England could not be had....

If that notwithstanding what is by the foregoing particulars declared, it may seem reasonable that the Act shall stand in force.... Then let me on behalf of the said colonies of Virginia and Maryland make these following proposals which I hope will appear but equitable; and I dare undertake for them, that they will be very well satisfied, that those few tobacconists that have engrossed that trade into their hands, shall still continue in it without moving further against them therein.

First, that the traders to Virginia and Maryland from England shall furnish and supply the planters and inhabitants of these colonies with all sorts of commodities and necessaries which they may want or desire, at as cheap rates and prices as the Hollanders used to have when the Hollander was admitted to trade hither.

Secondly, that the said traders out of England to these colonies shall not only buy of the planters such tobacco in the colonies as is fit for England, but take off all that shall be yearly made by them, at as good rates and prices as the Hollanders used to give....

By way of accommodation this I propose. Let all Hollanders and other nations whatsoever freely trade into Virginia and Maryland, and bring thither and carry thence whatever they please, and to counterpoise the cheapness of their sailing, with dearness of our ships, to pay a set duty and imposition that may countervail the same; and when what they paid formerly will not do it, let it be doubled and trebled, as shall be thought meet, yet still with this caution, that it may not make it as bad as if they were totally prohibited.

In the next place, that all English ships that do go thither to trade, and carry goods to any other country besides England, may be freed of any custom there, more than some certain duty to the use of the colonies....

[384] Quoted in The Virginia Magazine of History and Biography, Vol. I, pp. 142-145.

5. Free Coinage of Bullion at the Mint Proclaimed [Statutes, 18 Chas. II, 5], 1666.

Whereas it is most obvious that the plenty of current coins of gold and silver of this kingdom is of great advantage to trade and commerce ... be it enacted ... that whatsoever person or persons, native or foreigner, alien or stranger, shall from and after the twentieth day of December one thousand six hundred sixty and six, bring in any foreign coin, plate or bullion of gold or silver, in mass, molten or alloyed, or any sort of manufacture of gold or silver, into his Majesty's mint or mints within the kingdom of England, to be there melted down and coined into the current coins of this kingdom, shall have the same there assayed, melted down and coined with all convenient speed, without any defalcation, diminution or charge for the assaying, coinage or waste in coinage: so as that for every pound troy of crown or standard gold that shall be brought in and delivered by him or them ... there shall be delivered ... a pound troy of the current coins of this kingdom, of crown or standard gold.

6. The East India Company and the Interlopers [Diary and Consultation Book of Fort St. George, Ed. Pringle Series I, Vol. III, p. 49], 1684.

To Sir John Wetwangs, Commander of ship Royal James.

His Majesty the King of England our Sovereign Lord having granted the Honourable East India Company full power and authority to enter into any ship or vessel, and to make seizure of the same, that shall be found in these parts of the East Indies, contrary to his royal will and pleasure,[385] ... we therefore, the Agent and Council of Fort St. George, for the said Honourable East India Company, do ... (there being now an Interlopers' ship, the Constantinople, merchant, John Smith, master, at Covelon), require you immediately to repair aboard your ship, weigh anchor, and set sail for that port of Covelon, and there seize upon the said Interlopers' ship and bring her into this Road of Madras.... Dated in Fort St. George the sixth day of June, 1684.

William Gyfford.
John Bigrig.
Elihu Yale.
John Nicks.
John Littleton.
John Gray.

[385] New Charter granted Aug. 9, 1683.

7. Foundation of the Bank of England [Statutes, 5 & 6, Wm. & Mary, 20], 1694.

An Act for granting to their Majesties several rates and duties upon tunnage of ships and vessels, and upon beer, ale, and other liquors, for securing certain recompences and advantages in the said act mentioned, to such persons as shall voluntarily advance the sum of fifteen hundred thousand pounds, towards the carrying on the war against France.

XIX. And be it farther enacted by the authority aforesaid, that it shall and may be lawful to and for their Majesties, by commission under the great seal of England, to authorize and appoint any number of persons to take and receive all such voluntary subscriptions as shall be made on or before the first day of August, which shall be in the year of our Lord one thousand six hundred ninety four, by any person or persons, natives or foreigners, bodies politic or corporate.

XX. And be it further enacted, that it shall and may be lawful to and for their Majesties, by letters patents under the great seal of England, to limit, direct, and appoint, how and in what manner and proportions, and under what rules and directions, the said sum of twelve hundred thousand pounds, part of the said sum of fifteen hundred thousand pounds, and the said yearly sum of one hundred thousand pounds, part of the said yearly sum of one hundred and forty thousand pounds, and every or any part or proportion thereof, may be assignable or transferable, assigned or transferred, to such person or persons only as shall freely and voluntarily accept of the same, and not otherwise; and to incorporate all and every such subscribers and contributors, their heirs, successors, or assigns, to be one body corporate and politic, by the name of the governor and company of the bank of England, and, by the same name of the governor and company of the bank of England, to have perpetual succession, and a common seal.

XXVIII. Provided, that nothing herein contained shall any ways be construed to hinder the said corporation from dealing in bills of exchange, or in buying or selling bullion, gold, or silver, or in selling any goods, wares, or merchandize whatsoever, which shall really and bona fide be left or deposited with the said corporation for money lent and advanced thereon, and which shall not be redeemed at the time agreed on, or within three months after, or from selling such goods as shall or may be the produce of lands purchased by the said corporation.

8. The Need for the Recoinage of 1696 [H. Haynes, Brief Memoirs Relating to the Silver and Gold Coins of England (in Lansdowne MSS, 801, British Museum), fs. 33-48].

The silver money of England as well as the coins of all other countries are liable to abuse by these three following methods:

1st, by alteration of the standard appointed by public authority.

2nd, by melting them down and converting the metal to other uses.

3rd, by exporting them into foreign countries, to carry on a trade.

And by all those methods was the whole stock of the cash of this kingdom excessively impaired before the late grand coinage.

For 1st. the standard of our silver moneys appointed by the Government was notoriously violated. By standard is here meant that particular weight and fineness in the silver moneys which was settled by Queen Elizabeth and continued all her time, and after it, through the reigns of all her several successors down to her present Majesty, and was lately confirmed by Act of Parliament....

These were the just weights, and the legal fineness of our silver moneys coined with the hammer, of which sort the far greater part of the cash of the whole kingdom did consist; but they were very liable to be clipped and diminished in their weight, because very few of these pieces were of a just assize when they first came out of the Mint. So many pieces, I suppose, were by the Moneyers cut out of a bar of standard silver, as did pretty exactly answer the pound weight Troy; and the tale of the pieces required in that weight, by the Indenture of the Mint: but though all the pieces together might come near the pound weight or be within remedy; yet divers of them compared one with the other were very disproportionable, as was too well known to many persons, who picked out the heavy pieces, and threw them into the melting pot, to fit them for exportation, or to supply the silver smiths.

[Pieces of hammered money, "though never clipped, did many of them in their weight and value want or exceed the legal standard." Crowns varied from 5s. 3d. to 4s. 9d., half-crowns from 3s. to 2s. 4d., etc.]

According to the best observation of Goldsmiths[386] and others the clipping of our coins began to be discoverable in great receipts a little after the Dutch war in 1672, but it made no great progress at first for some years: and the silver moneys of Queen Elizabeth were very little diminished.... But the yearly loss by clipping made terrible advances every year from 1686.... In the later end of 1695[387] the public loss upon all the clipped money then actually current (if one may judge of the whole by the foregoing table) was at least 45 per cent. by mere clipping and light counterfeit pieces, which upon the whole running silver cash of the kingdom amounts to 2,250,000l.[388] ...

The whole kingdom was in a general distraction by the badness of the silver coin and the rise of guineas, for no one knew what to trust to; the landlord knew not in what to receive his rents, nor the tenant in what to pay them. Neither of them could foretell the value of his moneys to-morrow. The merchant could not foresee the worth of his wares at two or three days distance, and was at a loss to set a price upon his goods. Everybody was afraid to engage in any new contracts, and as shy in performing old ones, the King subsisted his forces in foreign parts at the disadvantage of seven or eight per cent. interest and five per cent. premio for money borrowed here, besides the loss by the Exchange abroad: and how to provide for the next year's expense, was a mystery.

[386] Ibid. folio 38.

[387] Ibid. folio 40.

[388] Ibid. folio 48.

9. Speech by Sir Robert Walpole on the Salt Duties [Parliamentary History (Cobbett), Vol. VIII, Col. 943], 1732.

House of Commons. Debate on Sir Robert Walpole's motion for Salt Duties. February 9, 1732.

Sir Robert Walpole stood up and spoke as follows:—

Mr. Speaker,

As there is nothing his Majesty has more at heart than the giving all possible ease to his subjects; so, whenever he is necessarily obliged to desire assistance from them for the immediate support of the government, he desires that they would choose those ways and means for raising the annual supplies, which are least burthensome to the people, and which makes the load fall equally upon the subjects in general. When money is to be raised for the public good, for the security of all, he thinks that every one ought to contribute his share, in proportion to the benefit that he is thereby to receive.

As to the manner, sir, of raising taxes upon the people, it is a certain maxim that that tax which is the most equal and the most general, is the most just, and the least burthensome. Where every man contributes a small share, a great sum may be raised for the public service, without any man's being sensible of what he pays; whereas a small sum, raised upon a few, lies heavy upon each particular man, and is the more grievous, in that it is unjust; for where the benefit is mutual, the expense ought to be in common. Of all the taxes I ever could think of, there is not one more general nor one less felt, than that of the duty upon salt. The duty upon salt is a tax that every man in the nation contributes to according to his circumstances and condition in life; every subject contributes something; if he be a poor man, he contributes so small a trifle, it will hardly bear a name; if he be rich, he lives more luxuriously, and consequently contributes more; and if he be a man of a great estate, he keeps a great number of servants, and must therefore contribute a great deal. Upon the other hand, there is no tax that ever was laid upon the people of this nation, that is more unjust and unequal than the Land Tax. The landholders bear but a small proportion to the people of this nation, or of any nation; yet no man contributes any the least share to this tax, but he that is possessed of a land estate; and yet this tax has been continued without intermission for above these 40 years.

10. Pitt's Sinking Fund Act [Statutes, 26 Geo. III, 31], 1786.

An Act for vesting certain sums in commissioners, at the end of every quarter of a year, to be by them applied to the reduction of the national debt.

[£250,000 is to be set apart quarterly out of the sinking fund.]

IV. Provided always, and be it enacted by the authority aforesaid, that if at any time it should happen, that at the end of the year ending the fifth day of January, one thousand seven hundred and eighty seven, or at the end of any future year, computed as aforesaid, after provision shall have been made for all payments for which monies are previously to be set apart or issued according to the directions of this act, the said surpluses, excesses, and overplus monies, composing the sinking fund, shall not be sufficient to make good as well all such deficiencies as shall have arisen during such year, as the payment of the sum of two hundred and fifty thousand pounds then due, in every such case, the amount of such deficiency or deficiencies, whether the same shall have arisen in any preceding quarter or quarters within such year, or in the quarter ending on the fifth day of January on which such year shall end, shall not be carried forward as a charge on the said sinking fund at the end of the next succeeding quarter, but shall be made good out of any aids or supplies which shall be or shall have been granted by parliament for the service of the then current year; and the amount of such deficiency or deficiencies so to be made good, shall be issued to the governor and company of the bank of England, in the manner hereinafter directed, within ten days after monies sufficient to answer the same shall have been paid into his Majesty's receipt of exchequer, on account of any such aids or supplies.

V. And be it further enacted by the authority aforesaid, that the monies so set apart, at the end of any quarter of a year ending as aforesaid, or of any year computed as aforesaid either for the payment of the sum of two hundred and fifty thousand pounds due at the end of such quarter, or of any part thereof, or for making good such deficiency or deficiencies as aforesaid, shall forthwith be issued and paid to the governor and company of the bank of England, and shall by them be placed to an account to be raised in their books, and to be intituled, The account of the commissioners appointed by act of parliament for applying certain sums of money annually to the reduction at the national debt: and that as well all such monies, as any other monies which shall be paid to the governor and company of the bank of England by virtue of this act, to be placed to the said account, shall be applied by the commissioners hereinafter appointed towards the reduction of the national debt, in the manner hereinafter directed, and to no other intent or purpose, and in no other manner whatever.

X. And be it further enacted by the authority aforesaid, that all monies whatever, which shall be placed from time to time to the account of the said commissioners by virtue of this act, shall be applied by them either in payments for the redemption of such redeemable public annuities as shall be at or above par, in such manner and at such periods as shall be directed by any future act or acts of parliament, or to the purchase of any public annuities below par in the manner hereinafter directed.

11. The Suspension of Cash Payments [Reports of Committees on Bank of England, 1797 and 1826, in Reports 1826 (III), pp. 142 and 255-256], 1797.

The alarm of Invasion [in 1796-1797] which, when an immediate attack was first apprehended in Ireland, had occasioned some extraordinary demand for cash on the Bank of England, in the months of December and January last, began in February to produce similar results in the north of England. Your Committee find, that in consequence of this apprehension, the farmers suddenly brought the produce of their lands to sale, and carried the notes of the County Banks, which they had collected by those and other means, into those banks for payment; that this unusual and sudden demand for cash reduced the several banks at Newcastle to the necessity of suspending their payments in specie, and of availing themselves of all the means in their power of procuring a speedy supply of cash from the metropolis; that the effects of this demand on the Newcastle banks and their suspension of payments in cash, soon spread over various parts of the country, from whence similar applications were consequently made to the metropolis for cash; that the alarm thus diffused not only occasioned an increased demand for cash in the country, but probably a disposition in many to hoard what was thus obtained; that this call on the metropolis, through whatever channels, directly affected the Bank of England, as the great repository of cash, and was in the course of still further operation upon it, when stopped by the Minute of Council of the 26th of February.[389]


Your Committee find, that the Court of Directors of the Bank did, on the 26th October 1797, come to a Resolution, a copy of which is subjoined to this Report.

Your Committee, having further examined the Governor and Deputy Governor, as to what may be meant by the political circumstances mentioned in that resolution, find, that they understand by them, the state of hostility in which the nation is still involved, and particularly such apprehensions as may be entertained of invasion, either in Ireland or in this country, together with the possibility there may be of advances being to be made from this country to Ireland; and that from these circumstances so explained, and from the nature of the war, and the avowed purpose of the enemy to attack this country by means of its public credit, and to distress it in its financial operations, they are led to think that it will be expedient to continue the restriction now subsisting, with the reserve for partial issues of cash, at the discretion of the Bank, of the nature of that contained in the present Acts; and that it may be so continued, without injury to the credit of the Bank, and to the advantage of the nation.

"Resolved, that it is the opinion of this Court,[390] that the Governor and Company of the Bank of England are enabled to issue Specie, in any manner that may be deemed necessary for the accommodation of the public; and the Court have no hesitation to declare that the affairs of the Bank are in such a state, that it can with safety resume its accustomed functions, if the political circumstances of the country do not render it inexpedient: but the Directors deeming it foreign to their province to judge of these points, wish to submit to the wisdom of Parliament, whether, as it has been once judged proper to lay a restriction on the payment of the bank in cash, it may, or may not, be prudent to continue the same?"[391]

[389] The Minute of February 26, 1797, suspended the obligation of the Bank of England to pay coin for its notes.

[390] Copy of a Resolution of the Court of Directors of the Bank of England at a meeting on Thursday, October 26, 1797.

[391] The Bank of England resumed cash payments, 1819.

12. Pitt's Speech on the Income Tax [Speeches of William Pitt, edited W.S. Hathaway, 1806, Vol. III, pp. 282-333], 1798.

I shall begin by stating what has been voted as the amount of the supply under the head of the services for the navy, with the exception of what is necessary for the transport services. All these accounts have this day been laid before us; and it appears that the total sum for the ordinaries and extra-ordinaries of the navy and transport services amounts to 13,642,000l., being the same sum, within a very small amount, as was granted in the course of last session, and which I have the satisfaction of assuring the committee is likely to prove sufficient for the whole expenses of the navy, without leaving any necessity for augmentation. The next head of expense is the army, in which the estimates amount to 8,840,000l. ... Under the head of ordnance services, including the expenses which have not been provided for, there has been voted the sum of 1,570,000l. The next article is that of the miscellaneous services. The plantation estimates have already been voted, but there are other minuter parts of these services which have not yet undergone a discussion in this house. The amount will be rather less than it was last session. I state it [at] 600,000l. To this is to be added the usual sum voted towards the redemption of the national debt, above the annual million, which is 200,000l. There are other sums, which are generally voted under the head of deficiency of grants. Among these is a sum due for interest on treasury and exchequer bills paid off, amounting to 565,000l.; the discount on prompt payments upon the loan, amounting to 210,000l.; the interest on exchequer bills circulated within the year, and charged upon the succeeding year, 300,000l.; in addition to this, there is the deficiency of the land and malt in the act passed two years ago, amounting to 300,000l. These sums swell the total of the supply to 29,272,000l. This total, sir, does not differ in any material degree from the amount of the supply of last session.

[He then estimates prospective sources of revenue:

Land and malt taxes 2,750,000l.
Lottery 200,000l.
Produce of the consolidated fund 1,500,000l.
Import and Export taxes 1,700,000l.
——————
6,150,000l.]

The remainder of the sum is that which must be raised either by a tax within the year, in the same manner as the assessed tax bill of last year, or by a loan. It will be to be considered, how the committee will divide that remaining sum between them. The sum to be provided for is upwards of twenty-three millions. Gentlemen will recollect that, in the debates upon the subject of the assessed taxes last session, two fundamental principles were established as the rule by which we should be guided in providing for the supplies for the service of the year. These were, first, to reduce the total amount to be at present raised by a loan; and next, as far as it was not reducible, to reduce it to such a limit, that no more loan should be raised than a temporary tax should defray within a limited time. In the first place, the tax acceded to by the House last session[392] was for the purpose of providing for the supplies of the year; and in the next place, for the purpose of extinguishing the loan raised in that year. From the modifications, however, which that measure underwent after its being first proposed, the produce of it was diminished to a considerable extent. Other means indeed were adopted to remedy the deficiency which was thus occasioned. The voluntary and cheerful efforts which, so honourably to individuals and to the country, came in aid of the assessed taxes, and the superior produce of the exports and imports beyond the estimate, brought the amount of the sums raised to that at which they had been calculated. The different articles were estimated at seven millions and a half, and this sum was fully covered by the actual receipts under the distinct heads. It gives me, indeed, the most heartfelt satisfaction to state, that notwithstanding the difficulties which the measure encountered from the shameful evasion, or rather the scandalous frauds by which its effects were counteracted, the total amount which was expected has yet been realized. The meanness which shrunk from fair and equal contribution has been compensated to the public by the voluntary exertions of patriotism. The produce of the assessed taxes, under all the modifications, and all the evasions, is four millions. I had taken it at four and a half after the modifications. The deficiency is supplied by the excess on head of voluntary contributions....

Satisfactory as it must be to review the circumstances to which we owe those advantages, and the benefits which the mode of raising the supplies to a considerable extent adopted last session has produced, it is unnecessary for me to state that, however the principle may deserve our approbation, it is still much to be desired that its effects should be more extensive, and its application more efficient.... Every circumstance in our situation, every event in the retrospect of our affairs, every thing which strikes our view as we look around us, demonstrates the advantages of the system of raising a considerable part of the supplies within the year, and ought to induce us to enforce it more effectually to prevent those frauds, which an imperfect criterion and a loose facility of modification have introduced; to repress those evasions so disgraceful to the country, so injurious to those who honourably discharge their equal contribution, and, above all, so detrimental to the great object of national advantage which it is intended to promote. In these sentiments, our leading principle should be to guard against all evasion, to endeavour by a fair and strict application to realize that full tenth, which it was the original purpose of the measure of the assessed taxes to obtain, and to extend this as far as possible in every direction, till it may be necessary clearly to mark the modification, or to renounce, in certain instances, the application of it altogether. If then, the committee assent to this principle, they must feel the necessity of following it up by a more comprehensive scale and by more efficient provisions. They will perceive the necessity of obtaining a more specific statement of income, than the loose scale of modification, which, under the former measure, permitted such fraud and evasion. If such a provision be requisite to correct the abuses of a collection, to obviate the artifices of dishonesty, to extend the utility of the whole system, it will be found that many of the regulations of the old measure will be adapted to a more comprehensive and efficient application of the principle. If regulations can be devised to prevent an undue abatement, and to proportion the burden to the real ability, means must be employed to reach those resources which, prim facie, it is impossible under the present system of the assessed taxes to touch. While inaccuracy, fraud, inequality, be grievances which it is desirable to remedy, it will be an additional satisfaction, that when compelled to adopt means to prevent the defects of which we complain, we shall be enabled likewise to improve and to extend the benefits we have obtained. The experience which we have had upon the subject, proves that we must correct and remedy, in order to secure the advantages which the measure is calculated to afford. It is in our power to make them our own. I think I can show that whatever benefit the principle upon which we have begun to act, is fitted to bestow, may by a liberal, fair and efficient application, be carried to an extent far greater than has yet been obtained, an extent equal to every object of great and magnanimous effort, to every purpose of national safety and glory, to every advantage of permanent credit and of increased prosperity.

Impressed then with the importance of the subject, convinced that we ought, as far as possible, to prevent all evasion and fraud, it remains for us to consider, by what means these defects may be redressed, by what means a more equal scale of contributions can be applied, and a more extensive effect obtained. For this purpose it is my intention to propose, that the presumption founded upon the assessed taxes shall be laid aside, and that a general tax shall be imposed upon all the leading branches of income. No scale of income indeed which can be devised will be perfectly free from the objection of inequality, or entirely cut off the possibility of evasion. All that can be attempted is, to approach as near as circumstances will permit to a fair and equal contribution.... The details of a measure which attempts an end so great and important, must necessarily require serious and mature deliberation. At present all that I can pretend to do is, to lay before the committee an outline of the plan which endeavours to combine every thing at which such a measure ought to aim. This outline I shall now proceed to develop to the committee as clearly and distinctly as I am able.


The next point for consideration then, is the mode of contribution which shall be adopted. On this head it is my intention to propose that no income under 60l. a year shall be called upon to contribute, and that the scale of modification up to 200l. a year, as in assessed taxes, shall be introduced with restriction. The quota which will then be called for ought to amount to a full tenth of the contributor's income. The mode proposed of obtaining this contribution differs from that pursued in the assessed taxes, as instead of trebling their amount, the statement of income is to proceed from the party himself.

[A detailed estimate of income from different sources follows. One-fifth is deducted to allow for the remission of taxation on incomes under 60l. and graduation under 200l. from 1/120 to 1/10.]

For the sake of greater clearness I will recapitulate the heads in the same order that I have followed:—

The land rental, then, after deducting one-fifth, I estimate at 20,000,000l.
The tenant's rental of land, deducting two-thirds of rack rent, I take at 6,000,000l.
The amount of tythes, deducting one-fifth 4,000,000l.
The produce of mines, canal navigation, etc., deducting one-fifth 3,000,000l.
The rental of houses, deducting one-fifth 5,000,000l.
The profits of professions 2,000,000l.
The rental of Scotland, taking it at one-eighth of that of England 5,000,000l.
The income of persons resident in Great Britain drawn from possessions beyond seas 5,000,000l.
The amount of annuities, from the public funds, after deducting one-fifth for exemptions and modifications 12,000,000l.
The profits on the capital employed in our foreign commerce 12,000,000l.
The profits on the capital employed in domestic trade, and the profits of skill and industry 28,000,000l.
——————
In all 102,000,000l.
——————

Upon this sum a tax of 10 per cent. is likely to produce 10,000,000l. a year, and this is the sum which is likely to result from the measure, and at which I shall assume it.


I trust that it will not be necessary for me to go into any detail of argument to convince the committee of the advantages of the beneficial mode adopted last session, of raising a considerable part of the supplies within the year.... It will be manifest to every gentleman on the slightest consideration of the subject, that, in the end, the measure of raising the supplies within the year is the cheapest and the most salutary course that a wise people can pursue; and when it is considered that there is a saving of at least one-twelfth upon all that is raised, gentlemen will not suffer a superstitious fear, and jealousy of the danger of exposing the secrecy of income, to combat with a measure that is so pregnant with benefits to the nation. If gentlemen will take into their consideration the probable duration of peace and war, calculated from the experience of past times, they will be convinced of the immeasurable importance of striving to raise the supplies within the year, rather than accumulating a permanent debt. The experience of the last hundred, fifty, or forty years, will show how little confidence we can have in the duration of peace, and it ought to convince us how important it is to establish a system that will prepare us for every emergency, give stability to strength, and perpetual renovations to resource. I think I could make it apparent to gentlemen that in any war, of the duration of six years, the plan of funding all the expenses to be incurred in carrying it on, would leave at the end of it a greater burden permanently upon the nation than would be sustained, than they would have to incur for the six years only of its continuance, and one year beyond it, provided that they made the sacrifice of a tenth of their income. In the old, unwise, and destructive way of raising the supplies by a permanent fund, without any provision for its redemption, a war so carried on entails the burden upon the age and upon their posterity for ever. This has, to be sure, in a great measure, been done away and corrected, by the salutary and valuable system which has been adopted of the redemption fund. But that fund cannot accomplish the end in a shorter period than forty years, and during all that time the expenses of a war so funded must weigh down and press upon the people. If, on the contrary, it had at an earlier period of our history been resolved to adopt the present mode of raising the supplies within the year; if, for instance, after the peace of Aix-la-Chapelle, the scheme of redemption had been adopted and persevered in to this time, we should not now, for the seventh year of the war, have had more to raise from the pockets of the people than what we have now to pay of permanent taxes, together with about a fourth of what it would be necessary to lay on in addition for this year. Fortunately, we have at last established the redemption fund: the benefits of it are already felt; they will every year be more and more acknowledged; and in addition to this it is only necessary, that instead of consulting a present advantage, and throwing the burden, as heretofore, upon posterity, we shall fairly meet it ourselves, and lay the foundation of a system that shall make us independent of all the future events of the world.[393]

[392] The Triple Assessment, based on the individual's previous payment to the various taxes on expenditure which Pitt had grouped together as the Assessed Taxes.

[393] The income tax was recast in 1803, when Schedules of different sources of income, instead of a general return, were introduced. It was again revised in 1806. In 1816 it was repealed. Peel reintroduced it in 1842 for three years, and it then became permanent.

13. Foreign Trade in the early Nineteenth Century [Committee on Orders in Council, Reports 1812 (III), pp. 38, 40, 41, 132-133, 522-523], c. 1812.

[Evidence of Joseph Shaw, Chairman of Birmingham Chamber of Foreign Commerce and exporter of hardwares.]

Have you had occasion to make any estimate, founded upon your own inquiries, of the number of workmen employed in the Birmingham manufactory[394]—and the neighbouring towns? I never particularly estimated for the whole of them, but in the year 1808 I took an estimate of the people employed in the American trade.... Those that could be ascertained to be (as nearly as could be) exclusively employed in the American trade were 50,000, exclusive of the nail trade, which employed from twenty to thirty thousand [of whom two-thirds were engaged in the American trade].


Can you state to the Committee, from your observation, what proportion the foreign trade generally bears to the trade for home consumption?... I should think it was considerably more than one half, including the United States.

Do you think it would amount to two-thirds? I should think not far from it.... Do you think the foreign trade is equal to two-thirds of the whole manufacture?—When the foreign trade is the same as in the year 1810, not in its present state; it is now very different....


To what cause do you ascribe the diminution of your trade to the Continent?—The risk of sending goods into many ports of the Continent is too great....


Then it is the French, Berlin, and other decrees that have produced this diminution of your trade to the Continent?—To my own particular trade. I cannot say how it is as to others.

[Evidence of John Bailey, exporter and home factor of Sheffield goods.]

What are the principal articles manufactured at Sheffield?—They are very numerous, I can present a list of them to the House; the principal articles are cutlery, files, edged tools, saws, and a great variety of other heavy articles.


Can you speak to the population of Sheffield, and such parts of the neighbouring parishes as are concerned in the Sheffield manufacture?—The population of the parish of Sheffield, as returned by the overseers in the year 1811, was 53,000 odd; but including those parts of parishes in which Sheffield goods are manufactured, the population amounts to 60,000 at least.

Can you tell what proportion of hands are employed in manufacturing for the American market?—For the American market, about 4,000 male adults, and 2,000 women and children, making a total of 6,000.


How many do you estimate are employed in manufacturing for the home trade?—Six thousand male adults, and one thousand women and children.

How many do you calculate are employed in the remaining parts of the Sheffield trade, namely, manufactures for the foreign market, exclusive of the American?—Two thousand male adults, and one thousand women and children.

This last market includes Spain and Portugal?—Spain, Portugal, the West Indies, South America, and Canada, with some few other parts.

What proportion does the American market bear to the home market, as far as regards the Sheffield goods?—The American exports amount, as nearly as I have been able to ascertain, to one-third of the whole manufactures of Sheffield; the home trade to, I think, three-sixths.

[He adds that the American trade had been affected by the Orders in Council and the Non-importation Act of the United States. The home trade with towns in the American trade had been injured also. Goods to the value of £400,000 were waiting in Sheffield and Liverpool warehouses.]


[Evidence of Robert MacKerrell, London merchant, dealing in cottons and muslins, and manufacturer of Paisley.]

Can you inform the Committee what the state of the trade was in the years 1808, 1809, 1810, and 1811?—In 1807 we felt the whole effect of the Berlin decree, we were entirely excluded from the Continent; I speak with regard to my own transactions and those of a vast number of my friends. We had in 1807, and previous to that, trades to the South of Europe, particularly in Portugal, which were uninterrupted, but which were likewise put an end to by the French invasion in November of that year. In 1808 the trade revived considerably; a great quantity of our goods, and of English merchandise, was introduced into the Continent through Heligoland; considerable exports were made to the Baltic; the trade in the Mediterranean increased very considerably; a very great trade was opened to this country in consequence of the Royal Family of Portugal removing to the Brazils, which likewise made an opening to Spanish South America. In 1809 the trade through Heligoland was most extensive; Bonaparte had his hands full with the Emperor of Germany and with the Spaniards, and had no time to attend to the coast; the trade during that year I may say was uninterrupted. The trade to the Mediterranean increased very much; the quantity of goods taken out that year greatly exceeded any previous year, for reasons that at that time we could not account for. The trade to the Brazils was equally extensive with the year before, vast exportations took place to South America, and in general, trade in the line in which I am engaged was reckoned a fair trade; the markets were never heavy.

[The Orders in Council increased the English export trade to the South of Europe, and Africa and the Levant were supplied with English substitutes for Continental cottons and linens.]

What has been the state of your trade for the last eighteen months, and, as far as you have been informed, of the country in general?—The state of the trade during the last eighteen months has been depressed; for the last twelve months it has been recovering, but for the six months previous it was very much depressed indeed.

To what do you attribute that depression?—We attribute the depression of trade which took place to the effect of the Berlin and Milan decrees. [Northern Europe, the Baltic, etc., were shut against English trade, and English ships were sequestered even in Swedish ports.]

[394] Brassfounding, hardware, plated ware, jewellery, etc.

14. Debate on the Corn Law [Parliamentary History, 1st Series, Vol. XXIX, Cols. 798-818], 1815.

House of Commons. February 17, 1815.

The State of the Corn Laws.

The Hon. Frederick Robinson immediately rose.... He had never disguised from himself, and he was not ashamed to confess it, the extreme difficulty, as well as the extreme importance, of this question. He could not, however, but feel that the prejudices on this subject had, from further inquiry, been very much removed. But, above all, he was happy to see that the misrepresentations, for so he thought they were, with respect to the motives of those who supported this measure, and with reference to the effects which it was likely to produce, were done away with. There did not now exist in the public mind the feeling by which it was before influenced. It was not now supposed that the object sought to be accomplished by the alteration of the corn law was the mean and base and paltry one of getting, for a particular class of society, a certain profit at the expense of the rest. "For my part," said Mr. Robinson, "I declare to God, if I thought this was the motive which actuated any individual who supported the alteration; and, above all, if I conceived that such would be the effect of the measure, no consideration on earth could tempt me to bring it forward." ...


... The general result of his reasoning was, in the first place, that it was quite impossible for us safely to rely on a foreign import. If they so did, a necessary result would be a diminution of our own produce, which would become more and more extensive every year, and consequently call for a greater annual supply from foreign countries—a supply which must progressively increase as the agriculture of the kingdom became less encouraged; and that, when the fatal moment arrived, the system of foreign supply would prove completely illusory.

The next point to be considered was the extent to which protection should be given. That was a point on which, undoubtedly, a difference of opinion was most likely to prevail. Some gentlemen would be for going considerably higher than others. Many thought the prohibition ought to be carried to a price considerably above that, without he obtained which it was conceived the agriculturalist could not cultivate. Others would wish that it should be placed much lower; and contend that because a particular species and degree of burden was likely to be removed, the protecting price ought to be much reduced. Now he would be inclined to agree to the first of these propositions, if the necessary effect of it would not be to bring up the price of corn to the highest possible rate, within the limits of the sum at which importation should commence. This certainly might be the case at the first moment, but he believed the ultimate result would not be so. He thought the final effect of the system would be to give such a powerful support to our own agriculture as would greatly increase the general produce of the country. It would excite a strong competition between the different parts of England, and between England and Ireland; so that the growth of corn, if Providence blessed us with favourable seasons, would be sufficiently large to afford an ample supply for the people of this country, and would enable them to be fed at a much cheaper rate, in the long run, than could be effected by the adoption of any other system.


Mr. Philips professed himself equally inclined either to proceed with, or defer the discussion, as might be most agreeable to the wishes of the House. Several members calling out "Go on," he began by stating his entire concurrence in the opinion of the right hon. gentleman who had moved the resolutions, that this was not a question on which the interests of the commercial and agricultural classes were at variance, but one in which those interests, when fairly and liberally considered, would be found to accord; for no resolution upon it calculated to promote the general prosperity of the country could be adopted without materially benefiting both classes. But if this were not the case, if the question were one in which the interests of two or more descriptions of our fellow-subjects were opposed, he should say that it was the duty of parliament not to legislate for the advantage of one class in contradistinction to, or at the expense of another, but to legislate for the benefit of the whole community. Looking at the question under the influence of this principle, he could not help feeling and expressing some surprise at the occasion of their present deliberations. What was the object of their deliberations? To provide a remedy for the low price of corn. That which all ages and countries had considered as a great national benefit was now discovered to be a great evil, against which we were imperiously called to legislate in self-defence. The real object of the resolutions, however disguised and disavowed, was to raise the price of corn. [Here Mr. Robinson expressed his dissent.] Mr. Philips proceeded to say that this not only was their object, but if that object were not attained, the advocates of the resolutions would regard them as nugatory. The right hon. gentleman must at least allow that their object was to raise the present price of grain; but he contended that moderation and uniformity of price would be their ultimate effect. It did seem somewhat inconsistent, on the part of the hon. gentleman, to tell the House that the effectual way to lower price was to acquiesce in a measure expressly intended to raise it. But how are this moderation and uniformity of price to be produced? By contracting the market of supply. Thus, while in all other instances moderation and uniformity of price are found to be in proportion to the extent of the market of supply, in the instance of corn they are to be in proportion to the limitation of it: and in a commodity peculiarly liable to be affected by the variation of seasons, moderation and uniformity of price, and abundance, are to be attained by preventing importations from foreign countries correcting the effect of varieties of climate, and of a scanty harvest in our own. To him it appeared that no measure could be better calculated to produce directly opposite consequences.


In considering the relation between the price of provisions and of labour, Mr. Philips observed that it was necessary to distinguish the countries and the trades from which examples were taken. In a new country where the value of land is extremely low, and agriculture rapidly progressive, in a new and thriving manufacture, the price of labour may be so high in proportion to that of the necessaries of life as to be little affected by their fluctuations.... But this state of things cannot exist in old manufactures, such as those generally established in this country, where competition has reduced profits, and that reduction of profit has brought the wages of the labourer to a level with his subsistence in tolerable comfort. In such manufactures if you raise the price of provisions without proportionately raising that of labour, to what privations and evils must you necessarily expose the labourer! He was ready to admit with the noble lord[395] that, ceteris paribus, the immediate effect of a high advance of provisions might probably be a reduction of the price of labour; because labourers being desirous of obtaining the same comforts that they had been used to, might be stimulated to more diligence. They might work sixteen hours a day instead of ten, and thus the competition for employment being increased among the same number of workmen, without any increase of demand, the price of labour might fall. But will any person contend that this state of affairs can long continue? The labourer must go to the parish, or turn to some more profitable employment, if by chance any can be found, or he must emigrate, or work himself out by overstrained exertion. The proportion being then altered between the demand for labour and the supply, its price will rise. This effect sooner or later must happen, but till it has actually taken place how dreadful must be the situation of the labourer!


Having thus shown both by reasoning and by reference to facts, that the price of provisions must ultimately and on the average regulate that of labour, he proceeded to show the effect that an advance of provisions must have on our manufacturing interests. And here Mr. Philips said that he wished on such topics, to reduce his reasoning as much as possible to numerical calculation. He would suppose, for the sake of argument, without at all entering into the enquiry, that three-fifths, or 60 per cent. of the labourer's wages were spent in provisions, and that provisions were 80 per cent. dearer here than they were in France, or any manufacturing country on the continent. By multiplying 60 by 80, and dividing by 100, the committee would see that the excess of the price of labour here above that of France would, from these datas, and according to his reasoning, be 48 per cent. He wished the committee to consider what must be the effect of such an excessive price of labour employed in our manufactures, when compared with the low price of labour employed in the manufactures of France, and what an advantage it must give to the French manufacturers in their attempts to rival us on the continent.


[After quoting Malthus] he observed that there were two ways of equalising subsistence and population, one by increasing food, the other by limiting population, and warned the committee against being led into measures whose tendency might be to produce that effect in the latter way. Why (said Mr. Philips) should a commercial and manufacturing country like this have such a jealousy and dread of the importation of corn? An importation of corn cannot take place without a corresponding export of commodities on which British industry has been employed. The export will increase your wealth, that wealth will increase your population, and that increased population will produce an increased demand for your agricultural produce.... Mr. Philips observed that no country in the world was so interested as this in establishing the principle of free trade, because no other country could profit equally by the general recognition of that principle. Foreign nations, mistaking, like the advocates of the regulation before the committee, the circumstances which have operated against our wealth for the causes of it, are now following our example. They are prohibiting or imposing restraints on the import of our fabrics, in order to encourage their own manufactures, from which they will receive inferior fabrics at a higher price. Let us convince them, by an example, of their mistake. Let us convince them that by leaving industry and enterprise unfettered, and by allowing capital to take its natural and voluntary direction, we are persuaded that the true interests of this country and of every other will be most effectually promoted.

Mr. Philips proceeded to say that Great Britain was geographically a commercial country, that commerce had stimulated her agriculture rather than agriculture had stimulated her commerce. It had given wealth to her people, and diffused fertility over her soil. Take care, said he, that in attempting to change the natural character of your country, you do not stop the progress of national prosperity....

[395] Lord Lauderdale in evidence before a committee of the House of Lords.

15. The Corn Law of 1815 [Statutes, 55 Geo. III, 26]

An Act to amend the laws now in force regulating the Importation of Corn.

[Corn may at all times be imported and warehoused free of duty.]

III. And be it further enacted, that such foreign corn, meal or flour, shall and may be permitted to be imported into the said United Kingdom, for home consumption, under and subject to the provisions and regulations now in force, without payment of any duty whatever, whenever the average prices of the several sorts of British corn, made up and published in the manner now by law required, shall be at or above the prices hereafter mentioned; that is to say, whenever wheat shall be at or above the price of eighty shillings per quarter; whenever rye, pease and beans shall be at or above the price of fifty-three shillings per quarter; whenever barley, beer or bigg shall be at or above the price of forty shillings per quarter; and whenever oats shall be at or above the price of twenty-seven shillings per quarter.

IV. And be it further enacted, that whenever the average prices of British corn so made up and published shall respectively be below the prices hereinbefore stated, no foreign corn, or meal, or flour made from any of the respective sorts of foreign corn hereinbefore enumerated, shall be allowed to be imported into the United Kingdom for the purpose of home consumption, or taken out of warehouse for that purpose.

V. And be it further enacted, that the average price of the several sorts of British corn, by which the importation of foreign corn, meal or flour, into the United Kingdom shall be regulated and governed, shall continue to be made up and published in any manner now required by law; but that if it shall hereafter at any time after the importation of foreign corn, meal or flour shall be permitted, under the provisions of this Act, appear that the average prices of the different sorts of British corn respectively in the six weeks immediately succeeding the fifteenth day of February, the fifteenth day of May, the fifteenth day of August and the fifteenth day of November in each year, shall have fallen below the prices at which foreign corn, meal or flour may be, under the provisions of this Act, allowed to be imported for home consumption, no such foreign corn, meal or flour shall be allowed to be imported into the United Kingdom for home consumption from any place between the rivers Eyder and Bidassoa, both inclusive, until a new average shall be made up and published in the London Gazette for regulating the importation into the United Kingdom for the succeeding quarter.

16. Free Trade Petition[396] [Commons Journals, Vol. LXXV.], 1820.

The Petition, etc.,
Humbly sheweth

That foreign commerce is eminently conducive to the wealth and prosperity of a country, by enabling it to import the commodities for the production of which the soil, climate, capital, and industry of other countries are best calculated, and to export in payment those articles for which its own situation is better adapted.

That freedom from restraint is calculated to give the utmost extension to foreign trade, and the best direction to the capital and industry of the country.

That the maxim of buying in the cheapest market and selling in the dearest, which regulates every merchant in his individual dealings, is strictly applicable as the best rule for the trade of the whole nation.

That a policy founded on these principles would render the commerce of the world an interchange of mutual advantages, and diffuse an increase of wealth and enjoyments among the inhabitants of each State.

That, unfortunately, a policy the very reverse of this has been, and is, more or less, adopted and acted upon by the Government of this and of every other country....

That the prevailing prejudices in favour of the protective or restrictive system may be traced to the erroneous supposition that every importation of foreign commodities occasions a diminution or discouragement of our own productions to the same extent, whereas it may be clearly shown that although the particular description of production which could not stand against unrestrained foreign competition would be discouraged, yet, as no importation could be continued for any length of time without a corresponding exportation, direct or indirect, there would be an encouragement, for the purpose of that exportation, of some other production to which our situation might be better suited, thus affording at least an equal, and probably a greater, and certainly a more beneficial employment to our own capital and labour.


That, among the other evils of the restrictive or protective system, not the least is, that the artificial protection of one branch of industry, or source of production, against foreign competition, is set up as a ground of claim by other branches for similar protection, so that if the reasoning upon which these restrictive or prohibitory regulations are founded were followed out consistently, it would not stop short of excluding us from all foreign commerce whatsoever. And the same train of argument, which, with corresponding prohibitions and protective duties, should exclude us from foreign trade, might be brought forward to justify the re-enactment of restrictions upon the interchange of productions (unconnected with public revenue) among the kingdoms composing the union, or among the counties of the same kingdom.

That an investigation of the effects of the restrictive system at this time is peculiarly called for, as it may, in the opinions of your petitioners, lead to a strong presumption that the distress which now so generally prevails is considerably aggravated by that system, and that some relief may be obtained by the earliest practicable removal of such of the restraints as may be shown to be most injurious to the capital and industry of the community, and to be attended with no compensating benefit to the public revenue.

That a declaration against the anti-commercial principles of our restrictive system is of the more importance at the present juncture inasmuch as, in several instances of recent occurrence, the merchants and manufacturers in foreign States have assailed their respective Governments with applications for further protective or prohibitory duties and regulations, urging the example and authority of this country, against which they are almost exclusively directed, as a sanction for the policy of such measures. And certainly, if the reasoning upon which our restrictions have been defended is worth anything, it will apply in behalf of the regulations of foreign States against us. They insist upon our superiority in capital and machinery, as we do upon their comparative exemption from taxation, and with equal foundation.

That nothing would more tend to counteract the commercial hostility of foreign States than the adoption of a more enlightened and more conciliatory policy on the part of this country.

That, although, as a matter of mere diplomacy, it may sometimes answer to hold out the removal of particular prohibitions, or high duties, as depending upon corresponding concessions by other States in our favour, it does not follow that we should maintain our restrictions in cases where the desired concessions on their part cannot be obtained. Our restrictions would not be the less prejudicial to our capital and industry because other Governments persisted in preserving impolitic regulations.


That in thus declaring, as your petitioners do, their conviction of the impolicy and injustice of the restrictive system, and in desiring every practicable relaxation of it, they have in view only such parts of it as are not connected, or are only subordinately so, with the public revenue. As long as the necessity for the present amount of revenue subsists, your petitioners cannot expect so important a branch of it as the Customs to be given up, nor to be materially diminished, unless some substitute, less objectionable, be suggested. But it is against every restrictive regulation of trade not essential to the revenue—against all duties merely protective from foreign competition—and against the excess of such duties as are partly for the purpose of revenue and partly for that of protection, that the prayer of the present petition is respectfully submitted to the wisdom of Parliament.

[396] Quoted in Hirst, Free Trade and the Manchester School, pp. 118-121.

17. The Foundation of the Anti-Corn-Law League [History of the Anti-Corn-Law League by Archibald Prentice, I, pp. 101-2, 1853], 1839.

Resolutions of meeting of delegates at Manchester, January 23, 1839.

Resolved—1. That this meeting of representatives from all the great sections of our manufacturing and commercial population, solemnly declare it to be their conviction that the prosperity of the great staples upon which their capital and industry are employed, is in imminent danger from the operation of the laws which interdict or interfere with the exchange of their productions for the corn and other produce of foreign nations, and thus check our trade, and artificially enhance the price of food in this country; and believing that the facts upon which this judgment is formed are little known, and of such national importance as to call for their disclosure before the people's representatives, they earnestly recommend that petitions be immediately forwarded from all parts of the Kingdom, praying to be heard by counsel and evidence at the bar of the House of Commons in the approaching session of Parliament.

2. That in order to secure unity and efficiency of action this meeting recommends that delegates be appointed by the several Anti-Corn-Law Associations of the kingdom. Those manufacturing and commercial towns not already possessing such societies are earnestly recommended to form Anti-Corn-Law Associations; and in case they require information or advice, they are invited to put themselves immediately in correspondence with the Manchester Association, whose fundamental rule, prohibiting the discussion of any party or political topics, is especially recommended for the adoption of all similar bodies elsewhere.

3. That the agricultural proprietor, capitalist, and labourer are benefited equally with the trader, by the creation and circulation of the wealth of the country; and this meeting appeals to all those classes to co-operate for the removal of a monopoly which, by restricting the foreign commerce of the country, retards the increase of the population, and restrains the growth of towns; thus depriving them of the manifold resources to be derived from the augmenting numbers and wealth of the country.

4. That this meeting cannot separate without expressing its deep sympathy with the present privations of that great and valuable class of their countrymen who earn their daily bread by the sweat of their brow; many of whom are now suffering from hunger in the midst of boundless fields of employment, rendered unproductive solely by those unjust laws which prevent the exchange of the products of their industry for the food of other countries. So long as a plentiful supply of the first necessaries of life is denied by acts of the British legislation to the great body of the nation, so long will the government and the country be justly exposed to all the evils resulting from the discontent of the people. With a view to avert so great a danger by an act of universal justice, this meeting pledges itself to a united, energetic, and persevering effort for the total and immediate repeal of all laws affecting the free importation of grain.[397]

[397] The Anti-Corn-Law League was created on the recommendation of a delegate meeting, March 20 following.

18. The Bank Charter Act [Statutes 7 and 8 Victoria 32], 1844.

An Act to regulate the Issue of Bank Notes, and for giving to the Governor and Company of the Bank of England certain Privileges for a limited Period.

Be it enacted that from and after the thirty-first day of August, one thousand eight hundred and forty-four, the issue of Promissory Notes of the Governor and Company of the Bank of England, payable on demand, shall be separated and thenceforth kept wholly distinct from the general Banking business of the said Governor and Company; and the business of and relating to such issue shall be thenceforth conducted and carried on by the said Governor and Company in a separate department, to be called "The Issue Department of the Bank of England," subject to the rules and regulations hereinafter contained; and it shall be lawful for the Court of Directors of the said Governor and Company, if they shall think fit, to appoint a committee or committees of directors for the conduct and management of such Issue Department of the Bank of England, and from time to time remove the members, and define, alter, and regulate the constitution and powers of such committee, as they shall think fit, subject to any bye-laws, rules or regulations which may be made for that purpose: provided nevertheless, that the said Issue Department shall always be kept separate and distinct from the Banking Department of the said Governor and Company.

II. And be it enacted, that upon the thirty-first day of August, one thousand eight hundred and forty-four, there shall be transferred, appropriated, and set apart by the said Governor and Company to the Issue Department of the Bank of England securities to the value of fourteen million pounds, whereof the debt due by the public to the said Governor and Company shall be and be deemed a part; and there shall also at the same time be transferred, appropriated, and set apart by the said Governor and Company to the said Issue Department so much of the gold coin and gold and silver bullion then held by the Bank of England as shall not be required by the Banking Department thereof; and thereupon there shall be delivered out of the said Issue Department into the said Banking Department of the Bank of England such an amount of Bank of England notes as, together with the Bank of England notes then in circulation, shall be equal to the aggregate amount of the securities, coin and bullion so transferred to the said Issue Department of the Bank of England; and the whole amount of Bank of England notes then in circulation, including those delivered to the Banking Department of the Bank of England as aforesaid, shall be deemed to be issued on the credit of such securities, coin, and bullion so appropriated and set apart to the said Issue Department; and from thenceforth it shall not be lawful for the said Governor and Company to increase the amount of securities for the time being in the said Issue Department, save as hereinafter is mentioned, but it shall be lawful for the said Governor and Company to diminish the amount of such securities, and again to increase the same to any sum not exceeding in the whole the sum of fourteen million pounds, and so from time to time as they shall see occasion; and from and after such transfer and appropriation to the said Issue Department as aforesaid it shall not be lawful for the said Governor and Company to issue Bank of England notes, either into the Banking Department of the Bank of England, or to any persons or person whatsoever, save in exchange for other Bank of England notes, or for gold coin or for gold or silver bullion received or purchased for the said Issue Department under the provisions of this Act, or in exchange for securities acquired and taken in the said Issue Department under the provisions herein contained: provided always, that it shall be lawful for the said Governor and Company in their Banking Department to issue all such Bank of England notes as they shall at any time receive from the said Issue Department or otherwise, in the same manner in all respects as such issue would be lawful to any other person or persons.

IV. And be it enacted, that from and after the thirty-first day of August, one thousand eight hundred and forty-four, all persons shall be entitled to demand from the Issue Department of the Bank of England, Bank of England notes in exchange for gold bullion, at the rate of three pounds, seventeen shillings and ninepence per ounce of standard gold. Provided always, that the said Governor and Company shall in all cases be entitled to require such gold bullion to be melted and assayed by persons approved by the said Governor and Company at the expense of the parties tendering such gold bullion.

V. Provided always, and be it enacted, that if any banker who on the sixth day of May one thousand eight hundred and forty-four was issuing his own bank notes, shall cease to issue his own bank notes, it shall be lawful for Her Majesty in Council at any time after the cessation of such issue, upon the application of the said Governor and Company, to authorize and empower the said Governor and Company to increase the amount of securities in the said Issue Department beyond the total sum or value of fourteen million pounds, and thereupon to issue additional Bank of England notes to an amount not exceeding such increased amount of securities specified in such Order in Council, and so from time to time: provided always that such increased amount of securities specified in such Order in Council shall in no case exceed the proportion of two thirds the amount of bank notes which the banker so ceasing to issue may have been authorized to issue under the provisions of this Act; and every such order in Council shall be published in the next succeeding London Gazette.

XII. And be it enacted, that if any banker in any part of the United Kingdom who after the passing of this act shall be entitled to issue bank notes shall become bankrupt, or shall cease to carry on the business of a banker, or shall discontinue the issue of bank notes, either by agreement with the Governor and Company of the Bank of England or otherwise, it shall not be lawful for such Banker at any time thereafter to issue any such notes.

XIV. Provided always, and be it enacted, That if it shall be made to appear to the Commissioners of stamps and taxes that any two or more banks have, by written contract or agreement (which contract or agreement shall be produced to the said Commissioners), become united within the twelve weeks next preceding such twenty-seventh day of April as aforesaid, it shall be lawful for the said Commissioners to ascertain the average amount of the notes of each such bank in the manner hereinbefore directed, and to certify the average amount of the notes of the two or more banks so united as the amount which the united Bank shall thereafter be authorized to issue, subject to the regulations of this Act.

19. Debate on the Corn Laws [Parliamentary Debates, 3rd Series, Vol. 73, Cols. 68, 69-71, 849-850, 1345-1347], 1846.

Address in Answer to Her Majesty's Speech, January 22nd, 1846.

House of Commons.

Sir Robert Peel.

Sir, the immediate cause which led to the dissolution of the Government in the early part of last December, was that great and mysterious calamity which caused a lamentable failure in an article of food on which great numbers of the people in this part of the United Kingdom, and still larger numbers in the sister kingdom, depended mainly for their subsistence. That was the immediate and proximate cause, which led to the dissolution of the Government. But it would be unfair and uncandid on my part, if I attached undue importance to that particular cause. It certainly appeared to me to preclude further delay, and to require immediate decision—decision not only upon the measures which it was necessary at the time to adopt, but also as to the course to be ultimately taken with regard to the laws which govern the importation of grain. I will not assign to that cause too much weight. I will not withhold the homage which is due to the progress of reason and to truth, by denying that my opinions on the subject of protection have undergone a change.


Sir, those who contend for the removal of impediments upon the import of a great article of subsistence, such as corn, start with an immense advantage in the argument. The natural presumption is in favour of free and unrestricted importation. It may, indeed, be possible to combat that presumption; it may be possible to meet its advocates in the field of argument, by showing that there are other and greater advantages arising out of the system of prohibition than out of the system of unrestricted intercourse; but even those who so contend will, I think, admit that the natural feelings of mankind are strongly in favour of the absence of all restriction, and that the presumption is so strong, that we must combat it by an avowal of some great public danger to be avoided, or some great public benefit to be obtained by restriction on the importation of food. We all admit that the argument in favour of high protection or prohibition on the ground that it is for the benefit of a particular class, is untenable. The most strenuous advocates for protection have abandoned that argument; they rest, and wisely rest, the defence of protective duties upon higher principles. They have alleged, as I have myself alleged, that there were public reasons for retaining this protection. Sir, circumstances made it absolutely necessary for me, occupying the public station I do, and seeing the duty that must unavoidably devolve on me—it became absolutely necessary for me maturely to consider whether the grounds on which an alteration of the Corn Laws can be resisted are tenable. The arguments in favour of protection must be based either on the principle that protection to domestic industry is in itself sound policy, and that, therefore, agriculture, being a branch of domestic industry, is entitled to share in that protection; or, that in a country like ours, encumbered with an enormous load of debt, and subject to great taxation, it is necessary that domestic industry should be protected from competition with foreigners; or, again—the interests of the great body of the community, the laborious classes, being committed in this question—that the rate of wages varies with the price of provisions, that high prices imply high wages, and that low wages are the concomitants of low prices. Further, it may be said, that the land is entitled to protection on account of some peculiar burdens which it bears. But that is a question of justice rather than of policy; I have always felt and maintained that the land is subject to peculiar burdens; but you have the power of weakening the force of that argument by the removal of the burden, or making compensation. The first three objections to the removal of protection are objections founded on considerations of public policy. The last is a question of justice, which may be determined by giving some counterbalancing advantage. Now, I want not to deprive those who, arguing a priori, without the benefit of experience, have come to the conclusion that protection is objectionable in principle—I want not to deprive them of any of the credit which is fairly their due. Reason, unaided by experience, brought conviction to their minds. My opinions have been modified by the experience of the last three years. I have had the means and opportunity of comparing the results of periods of abundance and low prices with periods of scarcity and high prices. I have carefully watched the effects of the one system, and of the other—first, of the policy we have been steadily pursuing for some years, viz., the removal of protection from domestic industry; and next, of the policy which the friends of protection recommend. I have also had an opportunity of marking from day to day the effect upon great social interests of freedom of trade and comparative abundance. I have not failed to note the results of preceding years, and to contrast them with the results of the last three years; and I am led to the conclusion that the main grounds of public policy on which protection has been defended are not tenable; at least, I cannot maintain them. I do not believe, after the experience of the last three years, that the rate of wages varies with the price of food. I do not believe that with high prices, wages will necessarily rise in the same ratio. I do not believe that a low price of food necessarily implies a low rate of wages. Neither can I maintain that protection to domestic industry is necessarily good.

Adjourned Debate. February 13, 1846.

House of Commons.

Sir Douglas Howard said:[398]


I have often imagined—and it was for this that I moved for, and obtained the order of this House for, the extensive returns which are now preparing, namely, the various colonial tariffs and commercial relations at present subsisting between all the Colonies of the Empire and the mother country, and between the Colonies themselves—that it might really be possible to treat Colonies like counties of the country, not only in direct trade with the United Kingdom, but in commercial intercourse with each other, by free trade among ourselves, under a reasonable moderate degree of protection from without, and so resolve the United Kingdom, and all her Colonies and possessions, into a commercial union such as might defy all rivalry, and defeat all combinations. Then might colonization proceed on a gigantic scale—then might British capital animate British labour, on British soil, for British objects, throughout the extended dominions of the British Empire. Such an union is the United States of America—a confederation of sovereign States, leagued together for commercial and political purposes, with the most perfect free trade within, and a stringent protection from without; and signally, surely, has that commercial league succeeded and flourished. Such an union, too, is the German Customs League; and it has succeeded to an extent that really is, in so short a time, miraculous. But free trade—the extinction of the protective principle—the repeal of the differential duties—would at once convert all our Colonies, in a commercial sense, into as many independent States. The colonial consumer of British productions would then be released from his part of the compact—that of dealing, in preference, with the British producer; and the British consumer of such articles as the Colonies produce, absolved from his; each party would be free to buy in the cheapest, and sell in the dearest market. I defy any hon. member opposite to say that this would not be a virtual dissolution of the colonial system.

Adjourned Debate. February 20, 1846.

Mr. B. Disraeli:[399]


I have now nearly concluded the observations which I shall address to the House. I have omitted a great deal which I wished to urge upon the House; and I sincerely wish that what I have said had been urged with more ability; but I have endeavoured not to make a mere Corn Law speech; I have only taken corn as an illustration; but I don't like my friends here to enter upon that Corn Law debate which I suppose is impending, under a mistaken notion of the position in which they stand. I never did rest my defence of the Corn Laws on the burdens to which the land is subject. I believe that there are burdens, heavy burdens, on the land; but the land has great honours, and he who has great honours must have great burdens. But I wish them to bear in mind that their cause must be sustained by great principles. I venture feebly and slightly to indicate those principles, principles of high policy, on which their system ought to be sustained. First, without reference to England, looking at all countries, I say that it is the first duty of the Minister, and the first interest of the State, to maintain a balance between the two great branches of national industry; that is a principle which has been recognised by all great Ministers for the last two hundred years; and the reasons upon which it rests are so obvious, that it can hardly be necessary to mention them. Why we should maintain that balance between the two great branches of national industry, involves political considerations—social considerations, affecting the happiness, prosperity, and morality of the people, as well as the stability of the State. But I go further; I say that in England we are bound to do more—I repeat what I have repeated before, that in this country there are special reasons why we should not only maintain the balance between the two branches of our national industry, but why we should give a preponderance—I do not say a predominance, which was the word ascribed by the hon. member for Manchester to the noble lord the member for London, but which he never used—why we should give a preponderance, for that is the proper and constitutional word, to the agricultural branch; and the reason is, because in England we have a territorial Constitution. We have thrown upon the land the revenues of the Church, the administration of justice, and the estate of the poor; and this has been done, not to gratify the pride, or pamper the luxury of the proprietors of the land, but because, in a territorial Constitution, you, and those whom you have succeeded, have found the only security for self-government—the only barrier against that centralising system which has taken root in other countries. I have always maintained these opinions; my constituents are not landlords; they are not aristocrats; they are not great capitalists; they are the children of industry and toil; and they believe, first, that their material interests are involved in a system which favours native industry, by insuring at the same time real competition; but they believe also that their social and political interests are involved in a system by which their rights and liberties have been guaranteed; and I agree with them—I have these old-fashioned notions. I know that we have been told, and by one who on this subject should be the highest authority, that we shall derive from this great struggle, not merely the repeal of the Corn Laws, but the transfer of power from one class to another—to one distinguished for its intelligence and wealth, the manufacturers of England. My conscience assures me that I have not been slow in doing justice to the intelligence of that class; certain I am, that I am not one of those who envy them their wide and deserved prosperity; but I must confess my deep mortification, that in an age of political regeneration, when all social evils are ascribed to the operation of class interests, it should be suggested that we are to be rescued from the alleged power of one class only to sink under the avowed dominion of another. I, for one, if this is to be the end of all our struggles—if this is to be the great result of this enlightened age—I, for one, protest against the ignominious catastrophe. I believe that the monarchy of England, its sovereignty mitigated by the acknowledged authority of the estates of the realm, has its root in the hearts of the people, and is capable of securing the happiness of the nation and the power of the State. But, Sir, if this be a worn-out dream; if, indeed, there is to be a change, I, for one, anxious as I am to maintain the present polity of this country, ready to make as many sacrifices as any man for that object—if there is to be this great change, I, for one, hope that the foundations of it may be deep, the scheme comprehensive, and that instead of falling under such a thraldom, under the thraldom of Capital—under the thraldom of those who, while they boast of their intelligence, are more proud of their wealth—if we must find a new force to maintain the ancient throne and immemorial monarchy of England, I, for one, hope that we may find that novel power in the invigorating energies of an educated and enfranchised people.

[398] Ibid. cols. 849-50.

[399] Ibid., cols. 1345-1347.


                                                                                                                                                                                                                                                                                                           

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