10,000l.] The salary as governor might | be only that sum; but did the right hon. gentleman mean to be understood as stating that as governor, commander-in-chief, and in his other capacities, he did not receive public money to the amount of 20,000l. a year? He hoped that the Chancellor of the Exchequer would give some correct information upon this point. This was only a solitary case that had accidentally come to his knowledge; but he feared many others existed, where, from the influence of family and connexion, ministers were compelled to submit to wasteful abuses in various departments. He concurred with what had fallen from Mr, Marryatt respecting the drawbacks upon West India produce. With regard to the property tax, he did not wish unnecessarily to disturb the manes of the dead, by traducing the memory of that which was no more: he felt too much respect for the maxim of the old proverb, but in truth if he were compelled to speak only in praise of the property tax, all the good that he could say of it was, that it was dead; for all the opprobrious epithets that had been heaped upon it, appeared to him not to come up to its desert. In theory it might be very beautiful to tax every man accord ing to his property, but nothing could be more odious than that a man should be catechised by persons who possessed more than inquisitorial powers: for his own part, he would much rather be sum moned before the bench of bishops, to be questioned as to his belief in the doctrinal points of religion, than appear, before the commissioners under the property tax, to answer their questions as to the exact amount of his worldly goods and chattels. The Chancellor of the Exchequer seemed resolved that it should not quit the stage without éclat, and was determined to do all in his power to procure for it a hand, some retirement. A threat had been studiously held out that it might on some future emergency be revived; but he would never give his consent, unless we had the misfortune of witnessing a repetition of the dreadful crisis we had just passed. Mr. Rose addressed the committee as follows :* There are reasons operating on my * From the original edition printed for T. Cadell and W. Davies, Strand; and J. Hatchard, Piccadilly, with the following Introduction. "I am desirous of sub mind, which had determined me not to rise on the present occasion; but I feel it quite impossible to remain silent after what has fallen from the hon. gentleman who spoke last. In vindication of the measure thus reprobated it will not be necessary for me, however, to trouble the committee at much length. It was insisted upon, before the recess, that whether we should have a peace with America or not, the tax could no longer be levied; as the termination of it depended on a peace with France, the only country with which we were at war when the Act passed. Of the accuracy of that I thought no doubt could be entertained; but the question appeared to be perfectly unimportant, because if the legal interpretation gave the tax a continuance beyond the French peace, and it should not be longer wanted, there could be no hesitation about the repeal: on the other hand, if, on the peace taking place, an indispensable necessity should be found for a continuance of it in some shape or proportion, I certainly conceived the faith of parliament could not have been so pledged as to prevent such a continuance. The adjournment for the holidays took place without any determination expressed by his Majesty's ministers, as to their intention about proposing a renewal of the tax; and during the recess, petitions were poured in from every part of the kingdom in such numbers against it, as to induce my right hon. friend and his colleagues to wave any intention of making it a part of the ways and means. That determination having been taken, and having been approved of by the gentlemen on the other side of the House, I am not such a Quixote in finance as to offer a resistance against it; it would indeed be as utterly useless, as it would be inexcusably presumptuous in me to make such an attempt. I may however be al lowed to lament that the petitions were adopted, without the persons who were present at the meetings being at all aware, that if their request should be granted they would unavoidably be subjected to other burthens, probably bearing mitting to the public the substance of what I said in the House of Commons respecting the property tax, in order that if there shall appear to be any thing questionable in my statement, in which there are many dates and figures, an opportunity may be afforded of its being examined." much more heavily upon the great mass of the people, if productive ones, than the tax they complained of. It is a justice due to the memory of Mr. Pitt, with whom the system originated, and a duty to those who have patiently acquiesced in it, to explain shortly what compelled the resorting to it; I hope, therefore the committee will permit me to bring to their recollection the circumstances which left no choice with respect to adopting the principle of raising a large sum of money within the year; the measures that have been taken for effecting that; and to what extent the object in view has been attained. The advantages which might have been derived from a modified continuation of the Act, at the present moment, will then be too obvious to need explanation. It is not in the smallest degree to be wondered at, that when a numerous assembly of persons of all descriptions were asked whether they desired to be relieved from a heavy contribution, without a substitute for it being mentioned, every hand should be held up in the affirmative; but it may reasonably be doubted whether a very different sensation might not have prevailed at such meetings, if the parties present had been aware that an immensely productive tax could not in the present state of the country be given up, without some other heavy impositions to a very great amount being substituted in its place. The absolute necessity of finding productive taxes in lieu of the one under consideration, in the event of that being relinquished, seems to have escaped attention almost generally. If that necessity had been understood as clearly as it exists, it would I think have had an influence on all classes; the opulent would not have been as forward as they were in ex-services were at par, but got to a discount pressing their anxiety for a petition, the success of which, at the time it was to relieve them from heavy contributions, would be attended with consequences bearing probably with more severe pressure on the middling and lower classes of the community than the tax complained of; and the latter would have been less solicitous on the occasion, if they had foreseen they were likely to be so pressed upon by a compliance with their own wishes. That this tax has been felt as a most severe pressure by many, it is impossible to deny; that is not a point likely to be treated with levity by me. I can most truly say, that no one could feel more for that pressure on meritorius and respectable individuals, in many cases struggling with difficulties, than I have done; or who would have felt a higher gratification at relief having been afforded them: and if the tax had been continued, I believe that would have been found practicable, on classes on whom the pressure was most severe, as I will endeavour to shew presently. Keeping in view, however, even the most distressing part of the Act, I think I shall make it evident, almost to demonstration, that the benefits not only to the country, but to a very large propor. tion of its inhabitants have much more than compensated for the money taken from the subject. In the American war, navy and victualling bills were issued without any definite time for payment, and consequently were at a great discount, 121. to 141. per cent.; at the close of it 161. to 201. per cent.; the non-interest bills frequently at 201. The public therefore paid 100l. for stores of the value of from 801. to 887. In 1792 the bills issued for these as high as 91. and 10l. per cent. so early as the end of 1793; and in January 1794, to 117. To avoid so serious a loss to the public, an act was passed in April in that y year, to provide that bills of this description should be paid with interest peremptorily at the end of 15 months: this produced the desired effect for a time, as the discount fell to 1 in May, and fluctuated through the whole of 1795 to the middle of 1796 from 13 to 42; but rose again in August and September, 1796, to 144. and 15l. per cent.; notwithstanding the certain payment at the end of a year and a quarter. Mr. Pitt therefore in this instance, as in every other in his life, determined to meet the difficulty, however great it might be, rather than the public should sustain so severe a loss; bills were therefore funded to the amount of 11,595,000l., and an Act was passed on the 31st December, (parliament sitting on till after Christmas for the purpose) to provide that all navy and victualling bills should be issued payable in ninety days; from which time stores and provisions have been bought, and transports have been hired at ready-money prices. The 3 per cents, which were nearly at par in the beginning of 1792, fell to 76 before the end of December in that year; they were however no lower than 70l. at | tions of persons at home and abroad: but exertions such as were then made by individuals, unexampled, I believe, in the history of the world, could not be expected to be continued; nor would it have been just to call for or to accept them, draining the purses of the loyal and liberal subjects, while others of a different deanscription escaped altogether. the opening of 1796, but in January 1797 they had fallen to 551. and at the end of May they were as low as 473, 71. or 8. lower than at any time in the American war; at which price they were in February 1798; notwithstanding the operation of the sinking fund established in 1786, improved by that of 1792, which last converted every sum borrowed into annuity for a term of years, longer or shorter according to circumstances. It was under this most discouraging state of public credit, that the determination was taken in the sunimer of 1797 to raise a considerable sum within the year. The measure was untried to any extent, whatever the urgencies of the country had been. It is not surprising therefore that a variety of difficulties should present themselves, in whatever shape it was proposed to effect it. * After much consideration it was thought the most tangible one would be a charge upon every one in proportion to the payments on assessed taxes; as the amount of these could be ascertained, an Act was therefore passed in January 1798, for a charge equal to five times the amount of those taxes, with various modifications; and with abatements from all income under 2001. a year. To remedy these objections, an Act was passed in January 1799, for repealing the one I have been speaking of, and to impose duties on income in lieu thereof, to be charged on the property of persons in Great Britain, though not residing there, and on all income of personal property of 10l. per cent. on all above 200l. a year, and less than that in proportion down to 1-120th part; with further allowances for children.* Under this Act, which was repealed in May 1802, in consequence of the peace, the revenue raised on the average of the three years they had been in force, was 5,560,000l.; the produce having been very nearly equal in each. On the renewal of the war, an Act was passed in August 1803, imposing a tax of 51. per cent. on profits arising from property, professions, trades, and offices; with abatements on profits less than 601. without any exception as to the nature or de. scription of the income, and from that to 150l. a year.† In March 1805, an addition was made to the 51. per cent. of 1803, of one-fourth of that sum, making the whole 641. This experiment did not succeed; the charge was found to bear most unequally; many of those who were best able to pay, and who were the fittest objects of taxation, escaping almost entirely, and others contributing in infinitely smaller proportions than they ought to have done. This accounts for the sum raised being very little more than 3,600,000l. which was brought up however to 6,000,000l. by voluntary contributions from all descrip-tration that not only the tax was increased * The Chancellor of the Exchequer mentioned an instance in the 1st of queen Anne; there are, I think, one or two others about that time, producing sums to no great amount. In the 34th Edw. 1st, there is an entry in the rolls of parliament, prescribing the mode of levying the tax of 1-30th generally, and 1-20th on tenants in demesne by assessors, taxers, and sub-taxers upon oath.* And in the 17th Edw. 2nd, it was provided that the chief taxers themselves should be taxed by the lord treasurer and barons of the Exchequer.t *Rot. Parl. Vol. 1, p. 269. Thus stood the property tax, till the administration was formed in 1806, composed of the friends of the gentlemen opposite to me. It was under that adminis in amount to 10. per cent. but the pres sure on classes most entitled to relief was aggravated; by the act brought in by them, the allowances under the former laws for repairs of houses, buildings on farms, &c. were taken away.§ These were the measures proposed by successive administrations, and adopted by parliament, for raising large sums within the year. the 37. per cents., when the first Act passed in January in that year, had fallen to 47, with the support of the sinking funds of 1786 and 1792. It is impossible to doubt, I come now to the clear and decided but that under the immense accumulation advantages that have been derived from of debt subsequently incurred, the capital that system, which I will explain as briefly of which increase exceeds 600,000,000l., as I can, supported by such proof as can the funds would have been much, very leave no doubt on that part of the subject. much lower, if we had relied on the old It has been stated that at the end of the system of borrowing the whole sums year 1796, the discount on navy bills was wanted; especially if we take into our as high as 157. per cent. (although the consideration, that when the 31. per cents. payments were absolutely certain at the were at that low price, the unredeemed expiration of 15 months, with interest), to debt of Great Britain was 304,000,0002. which it had risen from 3, at the be- and that it has been progressively accuginning of that year; it was therefore quite mulating to this time to 649,000,000. I evident that if means had not been taken will suppose, however, that the sum above for the cure of that evil, and for the pre- mentioned had been funded so advantagevention of it in future, the discount would ously, as the 31. per cents. at 50%; a most have been still higher; I will however sanguine and extravagant expectation; a suppose it only at that rate: the sums capital would have been created in that paid for services for which bills had al- fund of 296,000,000l.; but as a part of the ways been issued by the naval and ord-loans have been made in stocks at a higher nance departments, amount from January 1797, to the close of the last year, to about 235,000,000l., the loss on which by discount at 157. per cent. would have been 37,500,000l. to which amount, at the least, there has been a saving to the public by paying for stores and transports in ready money, or in 90 days bills, which are considered as the same. interest, I will suppose the capital created would have been 260,000,000/. The national debt would have then been increased to that extent; and the interest and sinking fund required would have been 10,400,000l. computing the interest on that capital at 31. per cent., whereas a part would have been at 41. It is evident, therefore, that the public would I assume in the first place, that no loan have been relieved from taxes to that imfrom 1798 inclusive, would have been mense extent in perpetuity, by the temmade on terms so advantageous to govern-porary payments of 5l., 6., and 10l. per ment, as taking the 31. per cents. at 50: the ground for which appears to me to be quite indisputable; having shewn that cent. This, however, is not all; nothing can be more certain than the point already urged, that the expectation of the 31. per cents. being as high as 501, during the war, or in the short interval of peace,* could not have been realized; I have a right, therefore, to assume the benefit to the public of the difference in funding from 1797, between the 31. per cents, at 50%. and lent. The exemptions therefore, narrowed as they were, were confined to the profits arising from the occupation of land, from trades or professions, wages, salaries, or other profits derived from personal labour. Income from every other source, however small, was subjected to 10%. per cent. except annuities for life of small amount, if arising from profits belonging to other persons under wills or deeds. Whereas, under the former Acts, persons whose aggregate incomes were under 60l. a year, were entirely exempted from any charge from whatever source they might arise; and incomes of 60l., and under 150l. were entitled to abate-owing, as in the present instance, to the ments, without distinction as to the source of their income. Under the Acts of the 48 and 50 Geo. 3, the powers and authorities of the surveyors and inspectors were somewhat restrained. * This is stated on the experience of the American peace: after the preliminary articles were signed, the 37. per cents. were 68, and in September 1783, when the definitive treaty was concluded, they fell to 644, and in October 1784, they were so low as 54; in the spring of 1785 (two years after the peace) they were at 55, necessity of providing for the heavy expenses of the war; but from the operation of the effectual measures at that time taken, they rose to 70%, before the close of that year. at 60%, which is about the average price at which the loans have been made. Now the sums raised by loans, from 1797 to the present time, amount to 397,094,000l. and have created a capital of 604,457,000l. taking the long annuities at 16 years; which capital would have been 60,445,700l. more, if the money had been borrowed with the 37. per cents. at 50%. To the extent of the difference between that and the capital actually created, the national debt is less than it would have been, if large sums had not been raised within the year; and taxes must have been found to pay the interest and to provide a sinking fund for that capital, which would have been so increased. The following statement will, I hope, shew these advantages in an intelligible manner: Capital that would have been created by funding thet 148,000,000l. raised within the year, the price of the 31. per cents. at 50l. ; the other stocks in proportion............ Capital on the amount of loans since 1797, if made at 50l. instead of 60l., would have been, taken low,........... ...... £260,000,000 40,000,000 Saving of capital............ £300,000,000 Interest on that at 31. per cent. and 17. per cent. for the sinking fund, would have been 12,000,000l. The certainty of this cannot be questioned, without the accuracy of my premises being denied; about which I feel most perfectly confident. Here then the public have the immense benefit of a diminution of the national debt of 300,000,000l., at the least, and a saving of perpetual taxes to the amount of 12,000,000l. annually. On speaking of these advantages we should not lose sight of the saving on the expenditure of the *The precise average is 604. + This is exclusive of the other sums raised within the year by war taxes; the whole together amount to 212,640,000l. from the commencement of the last war only. The capital is reduced to this sum, on a supposition that a part would have been funded at a higher rate of interest than 31. per cent. But in truth he has paid 10l. per cent. only nine years of the period, during the other seven years he has paid 51. and 61. 5s.; he has therefore gained more than the sum above mentioned on what his capital would have been by paying 101 per cent. on his income. The landed gentlemen have profited also to a very considerable extent. It is an established fact, incontrovertibly proved before the corn committee, that the rent of land is doubled within the last 20 years, during 18 of which this system prevailed; now I would ask any gentleman who hears me, whether he conceives it would have been possible for improvements to have been carried on, so as to have enabled such rents to have been paid, if the interest of money in the funds had been 61. per cent. We know in the American war how much improvements were at a stand; how depreciated the value of land was, and how extremely difficult it was to raise money on the most unexceptionable securities. There were instances of land sold in many counties (I believe in Middlesex) at 22 and 23 years purchase, the common rate of average being now, I think, from 28 to 30; in some parts of the country more and the difficulty of borrowing was so great, that it became extremely common to give large premiums (evading the law against usury) to obtain sums on mortgage on fee-simple and un-encum * I think I have established, from experience, that they could not have risen on the commencement of the peace above the depressed war price. |