On taxation: how it is raised and how it is expended

Front matter

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arV13089 On taxation:

Preface

IX tensive, and a larger number of officers in the various departments is required. Salaries and wages are also higher, and, if we add the increased cost of necessaries, which swell so largely the amount required for our soldiers and sailors, it will be allowed that the expenditure for all public purposes must be considerably enlarged. "We must, therefore, make up our mind to an increase of taxation from past limits. Fortunately, the nation has increased resources to meet it, and it becomes the duty of those who have the administration of our finances to place the revenue and expenditure of the country in a safe and satisfactory condition.

■ The mode in which our present taxation is raised and expended will be best appreciated if we exhibit side by side the amount and the contribution per head of the entire population, as follows : —

Ebtshtjb.

Millions.

British and foreign spirits, >

wine, and beer ... J

Income tax

Sugar

Tobacco

Tea

Probates, legacies, and sac- \

cession S

Land and assessed taxes .

Deeds, bills of exchange, *>

receipts, newspapers, &e.J

Licences

Insurance — ^Fire and marine

Fost-office

Paper

Other articles of Customs, "}

Excise, &c i

Miscellaneous receipts, not *)

taxation S i8-Jo

SS"

S'4o

3-40

3"oo

a'So

3"So

2'SO

63*00

Per

I o

1 2

o It

9 3 4

1 8

42 9

EXPS2n>XTTTBS .

Millions.

Per

head.

a. d.

Public debt . .

28-50

19 7

Army ....

8 3

Navy ....

9'20

S

Justice ....

2 S

Bevenue collection

2 S

Other salaries . .

1*00

Education . . .

■go

The Queen . . .

•40

Public works . .

i*oo

Diplomacy, &e. .

Colonies ....

•50

■JO

4 4

Miscellaneous . .

1-40

II 63-00

42 9

X PREFACE.

The taxes on paper and on insurance, and some of the licence duties, are likely to be abolished as soon as the finances will allow ; but other taxes will probably continue to be levied with increased productiveness. The principal difficulty is with the income tax, which is maintained from year to year in a most unsatisfactory manner. As it is universally admitted that it would be inexpedient to increase the present amount of indirect taxes, we trust the attention of Parliament will be early directed to devise means for a more equitable and comprehensive assessment of the income and property tax. To abandon our present mixed system of direct and indirect taxes for any exclusive plan of direct taxes on income or on wealth does not seem desirable. We may well picture to our mind an ideal community, so enlightened as to the interests of the State, so conscientious as regards the duty they owe to it, and withal so attached and loyal to the constituted authorities, that each member wiU be ready and willing to pay whatever share of the expense is found necessary for maintaining order and security. Such a community will, doubtless, prefer paying the amount required m a direct manner, rather than by any indirect and shifting process ; but, under present circumstances, we should scarcely be justified in acting on such an assumption.

The facts and figures inserted in the essay have been derived from official and Parliamentary documents, and other works of authority. My aim has been to pre-

PREFACE. XI

sent a clear, but brief and compendious^ view of the finances of the United Kingdom ; and, as the substance of the Essay has formed the subject of a course of lectures in King's College, I have had recourse to some historical and collateral information to render the whole attractive and instructive.

LEONE LEVI.

BOOK I. CEAPIBB fAQE

I. British Wealth i

ir. Progress of Taxation 1 1

III. Taxation in Kelation to National Eesources and

IV. Distribution of Taxation 28

V. Sources of Taxation 38

VI. Taxes on Commerce 44

VII. Treaties of Commerce 50

VIII. Customs 56

IS. Taxes on Necessaries 62

Section i. Sugar 64

„ II. Tea 6g

„ III. Coffee 73

„ IV. Comparative Consumption of Sugar,

Tea, and Coffee, in different Countries 75

„ V. Grain and other Necessaries .... 77

X. Taxes on Beverages 80

Section i. Wine 80

„ II. Spirits » 86

„ III. Beer 93

XI. Taxes on Tobacco 96

XII. Taxes on Eaw Materials 99

Section i. Wool 100

„ II. Cotton 102

„ III. Timber 103

XIV CONTENTS.

CHAFTEB PAGE

XIII. Taxes on Foreign Manufactures 105

Section i. Linen 105

„ II. Woollen 108

„ III. Silk Ill

XIV. Excise Taxes on British Manufactures 114

Section I. Glass 116

„ II. Soap 118

„ III. Paper 120

XV. Taxes on Occupation 125

XVI. Taxes on Locomotion 127

XVII. Stamp Duties 129

Taxes on Contracts and Transference of Capital . 129

xviii. Taxes on Legacies and Successions 134

XIX. Taxes on Fire and Marine Insurance 137

XX. Post-ofiBce 141

XXI. Taxes on Income and Property 143

XXII. Assessed Taxes 155

Section i. Taxes on Land 155

„ II. Taxes on Houses 157

„ in. Taxes on Servants 159

„ IV. Taxes on Carriages, Horses, and Dogs 161

XXIII. Concluding Observations on Taxation 162

BOOK XL

I. National Expenditure 164

II. Eoyal Expenditure 168

III. Diplomatic Salaries 171

IV. Consular Service 1 74

V. The Army Expenditure 178

VI. The Navy Expenditure 182

VII. Interest of the Public Debt 188

VIII. Colonial Expenditure 190

CONTENTS. XV

CHAfTSB FAGE

IX. Public Salaries and Superannuations 196

X. Pensions for Public Service 199

XI. Law and Justice 201

XII. Education, Science, and Art 204

XIII. Printing and Stationery 207

XIV. Religious Grants 209

XV. Public and Charitable Institutions 211

XVI. Public Works 213

XVII. Eussian-Dutch and Greek Loans 2ig

XVIII. Conclusions respecting the Expenditure . . . . 217

BOOK in.

NATIONAL DBBT.

I. Nature of the National Debt 220

II. History of the National Debt 224

III. Payment of the National Debt 230

BOOK ly.

CONTKOL OF PUBLIC MONET.

I. Eight of Taxation 238

II. Appropriation of Taxes 245

III. Control of the Issues 250

IV. Einancial Accounts 254

ERRATA.

P. ig, line 29, for 2,146,000?., the amount of annuities which fall in in i860, read 1,292,583?.

P. 91, line 27. The duties on British spirits have since been fixed at 8s. id., in^ead of 8s. per gallon j and the duty on brandy and geneva at 8s. 6d. per gallon.

ON TAXATION.

BOOK I.

Chapter I. British Wealth

TO form a correct estimate of the finances of any country it is necessary fully to appreciate its strength and resources. Burdens oppressive beyond measure to one nation may be most easily borne by another. What may have proved a great barrier to national progress at one period may operate as a healthy stimulus to valuable energies in another. "Witness the alarm prevailing in England during the first era of her national debt as compared with the ease with which its burdens^ so immeasurably increased^ are now felt. The unbounded prosperity of the nation has, in fact, quite neutralized the evils which seemed impending on Britain from her excessive national expenditure, and frustrated the realization of the most gloomy forebodings of the wisest British statesmen. Nor can we charge them with any want of foresight. Little could they anticipate those discoveries of science which have so altered the aspect of society, and con-

/ B tributed so powerfully to tte increase of wealth. Steam power was then unknown. Navigation was in its infancy. Internal means of transport were but scanty; and British produce and manufacture^ chiefly the fruit of manual labour, were far behind those of other European countries. In process of time a sudden revolution took place in the commerce and industries of the United Kingdom. Wealth increased apace, and as the nation grew in opulence and resources, so the national debt and national expenditm-e ceased to act as the nightmare of financiers and economists.

At the outset of our inquiry into the finances of the United Kingdom, it may be advantageous, therefore, briefly to glance at the principal sources of our national wealth, and to consider how far the economical condition of the people stands in relation to its fiscal arrangement. But how diflScult it is to form a proper conception of the extent of British wealth. How shall we estimate the value of the millions of acres of land under cultivation, or dedicated to pasture; of those wonderful strata of the earth which so abound in minerals the most useful and valuable ; of those rich manufactures, and those industries which administer to the wants of advancing civilization, and provide for human comforts in every region and clime ? "We wish we could carry our readers with us to explore these immense laboratories of British riches. AYe could promise them an ample reward ; but we much fear lest our own powers of digesting and explaining millions and thousands of millions may fail us ; and we prefer avoiding any exact calculations which, after all, can be but nominal and imaginative. The economical progress of the United Kingdom in later years has^ indeed, been great, and far beyond the ratio of any former period. In agriculture, the first and most essential of all human industries, Ave have made rapid advance ; and, notwithstanding all the disadvantages of our soil and climate, with a large capital invested in land, with a provident system of farming, with the application of scientific principles, and proper knowledge of chemical affinities, and with abundance of stock, we succeed in obtaining greater produce than France, Austria, or Russia.

"Where shall we find a nation better favoured than Britain in mineral resources ? Iron and coal form the chief staple of British industry. Tin and copper have, from the earliest times, been sought after in English ground. Of coal alone we yearly extract 65,000,000 tons, and of iron upwards of 3,000,000 tons. But neither quantity nor value adequately represent the importance of our mining industry. What could we do without iron and coal ? Where would be our noble railways ? What would become of our machinery ? It is, indeed, to our mining industry that we owe our position as the first industrial and commercial nation in the world. We shall say nothing of our manufactures, which attract universal admiration. We import cotton-wool from America, raw silk from India, China, and Italy, oil from Africa, tallow from Russia, woods from America, and a hundred other articles from distant countries ; and by means of our capital, skill, and machines we

B 2 convert them into woollen, cotton, and silk manufactures, wliicli we export to almost every country on earth. Visit our hives of industry. Manchester will offer you millions of pieces of coloured and printed goods ; Leeds has her flannels, Birmingham her buttons and ironware, and Sheffield her knives and forks. Whilst France and other Continental countries excel in articles of luxury, and in such as form the delight of the opulent, British industries are directed to making useful articles, or articles which diffuse substantial comforts among the great body of the people. In everything, in fact, appertaining to the comfortable and scientific branches of industry the superiority of Britain in quality is great, and in quantity boundless.

Out foreign commerce alone exceeds 300,000,000^.* in amount, fully one-third of the entire commerce of the world. There is not a nation but contributes its quota to the commercial power of Britain, and the British merchant may be seen everywhere exploring, experimenting, and advancing, ever intent on furthering enterprise, and on realizing practical benefits from those scientific discoveries and ingenious contrivances which, with the aid of capital, have all but changed of late the face of society. With a mercantile marine

* The compntej value of the total imports of merchandize, m the year ending 3istDeoember, 1858, was 164,583,8322. ; and the declared value of exports, including foreign and colonial produce, 139,782,779;. : total, 3041 336,611'- The declared value of British and Irish produce exported in 1858 was 116,608,756^. The computed real value of merchandize imported in the year ending 31st December, 1S59, was 179,334,9812.; and the declared value of British and Irish produce exported, 1 30. + to, 4^7'- exceeding 5,600^000 tons,* the British are noWj what once constituted the glory of the Italians and of the Dutch, the carriers of the world ; whilst, with the facilities granted for bonding, the British marts of merchandize have become, what Venice, Amsterdam, and N6vogorod once were, the common warehouses of nations. To speed the stream of commercial enterprise, and to render the more available the rich treasures with which the British soil abounds, railways have been executed in the United Kingdom at an expenditure of 400,000,000^ Yet the conversion of so vast an amount from floating into fixed capital has not hindered the British capitalists from seeking everywhere concessions for great public undertakings in foreign States, and most of the great trunks of railways which now enrich foreign countries have been constructed by means of British capital and by the aid of British artificers.

But shall we abstain altogether from giving any

* The number, tonnage, and crews of registered vessels which belonged to the United Kingdom and British possessions on the 31st of December, 1858, was as follows ; —

Vessels.

Tons.

Cfews.

England

Scotland

Islands of Guernsey, Jer- "( sey, and Man . . . , > British possessions . . .

20,868

3,543 2,247

168,603 32,862 14,209

26,658

10,210

4,587,893 69,845

951,885

215,754

5,479

67,112

37,75'

6,609,623 tangible estimate of this immense wealth? In the year 1700 Gregory King estimated the total wealth of the kingdom at 6oo,ooo,oooL, which, with a population of 8,000,000, gave 75Z. per head. In the year 1800 Dr. Becke and Sir William Pulteney estimated it at 1,800,000,000?., or 11 2?. per head. In 1812, Dr. Colquhoun estimated it at 2,100,000,000?., or 116?. per head, showing an increase of 16 per cent. In 1845 Mr. Porter valued the personal property at about 2,000,000,000?., and the real property at somewhat the same sum, or altogether at 4,000,000,000?., or 150?. per head; showing an increase in 30 years of 94 per cent. : and now the common estimate is 6,000,000,000?., or 200?. per head, exhibiting another increase of 50 per cent.* The same proportion of increase has taken place in the national income. Whilst in 1800 the annual income of 16,000,000 inhabitants was estimated at 230,000,000?., in i860 the estimate is 600,000,000?., or upwards of 20?. per head. And should such an estimate appear all but fabulous, we have the absolute fact that in the year 1858 income tax was assessed upon no less a sum than 310,000,000?. ; which at the usual valuation will represent a capital of 5,000,000,000?., and the income tax

Progressive Increase of Wealth in the United Kingdom.

Tear.

Population.

Estimated amoont

of wealth,

exclusive of the

national deht.

Estimated wealth

of the population

per head.

Increase per cent.

£112

n6

150 206

16 94 50 is not levied upon incomes less than loo^. per annum, nor upon wages, wliich alone are calculated to amount to nigh i^OjOOOjOOo^.*

The superiority of British resources over those of the largest European countriesisveryremarkable. Whilst with apopulation of 29j00o,ooo,Britain produces 6oo,ooOj00o^. per annum, or upwards of lol. per head, the productive industry of France may, at the maximum, amount to 500,000,000?., which, with a population of 36,000,000, gives an average of i\l. per head ; and that of Hussia at 350,000,000^., which, with a population of 70,000,000, gives only 5^. per head.f

No proper estimate can be formed of the productive forces of the British colonies : of India overflowing with wealth, of Australia glittering with gold, of Canada rapidly advancing to stately independence, of the West Indies, or of the immense territories of North America. All these colonies ofi'er an unlimited scope to welldirected industries and energies, and thither the rroc,r zssive Increase of National Income in the United Kingdom.

Year.

Population.

Estimated amount of income.

Estimated income

of the population

per head.

Increase per cent.

£147

95 31

In England and Scotland the amount of property assessed to the income tax under schedule (a), profits of farmers under schedule (b), and trade under schedule (d), in 1842-3, was 154,796,328?.; and in 1857-58, 209,262, 288Z.; showing an increase in the period of 35 per cent.

•f* These estimates are founded on the official publication, entitled Statistigiie de la France, on Tegoborski's Etudes siir les Forces Produclives de laSussie, and on the Statistique Official de VAntriche.

British settler directs his eye as a proper field for the exercise of labour or the investment of capital ; but to return home with accumulated wealthy to enjoy the fruit of his successful exploits. The extensive discoveries of gold in Australia have attracted to that colony a tide of emigration from all parts of the world greater perhaps than the host which marched in the Middle Ages for the recovery of the Holy Sepulchre. An empire has been created in a day. Yet how different are the notions at present entertained of the probable consequences of such discoveries from those held by the Spaniards in the sixteenth century. "Whatever anxiety may have been exhibited to reach the golden regions, and however chimerical the fancies of the adventurers, no settled industries have been neglected in this country on that account, no laxity of energies has been allowed to creep in. Magical has been the increase of the Australian colonies, and great riches have been amassed therein ; yet, side by side with gold-digging, agriculture, commerce, and shipping have immensely thriven ; and should gold ever cease to afford so plenteous a harvest, riches far more enduring and valuable will be found in the commodities which Australia will produce, and the industries of which that colony has become the centre.

This is not the place to inquire into the causes of the boundless prosperity of the United Kingdom ; but we may search for them in the increase of communication both by sea and land, in that great network of railways which so facilitates the circulation of our national wealth, in the immense development of our banking institutions, and in a wise economical policy, which

Las unfettered the energies of the nation. We maysearch for them also in that innate sentiment of independence and rightj in that lucidity of thought and promptitude of action which distinguish the Anglo- Saxon character, in those civil and political liberties secured to us as a sacred patrimony by our venerated British Constitution, in that integrity and publicity ■which are characteristics of our administration of justice, in the long peace which we have enjoyed, as well as in the wisdom of our legislators, and in those practical reforms which have from time to time been introduced so as to avert those political convulsions which effectually disturb the course of commerce and industry, and which have often made a wreck of other nations. AH these causes acting together have contributed to the formation of our colossal riches, and have augmented the sum total of British power and influence.

In the committee of nations Britain holds a high rank. Long the acknowledged mistress of the sea, her fleet has often checked her proudest competitors. Foremost in most political treaties, British ambassadors exercise a considerable ascendancy over the cabinets of Europe. Her consuls, scattered over all mercantile and maritime stations, protect the interests of British subjects all over the world, and exact in their behalf the most scrupulous regard to good faith and justice. But so lofty a position has been purchased at the cost of unprecedented sacriflces. The great wars in which Britain has been engaged have raised her to a supreme rank in the scale of nations ; but they have imposed upon her inhabitants burdens which wiU not be easily removed.

ON TAXATION.

Fortunately for Britain^ she has always known how to meet her pressing exigencies ; and it is owing to the sacredness with which Britain has regarded her engagements that her public credit has never for a moment fallen short, and her securities have maintained a high value in the money-markets of the world. Such is the condition of the empire whose finances we now proceed to review.*

* As an evidence of the immense expansion of British resources since the commencement of the present century, we append tables showing the quantities of the principal articles imported, the value of exports, the shipping and mercantile marine in the years 1800, 1820, 1841, and 1859, ^^^ ""^ increase of our colonies within the last thirty years.

United Kingdom.

iSoo.

jSzo.

Imports.

Cotton wool .

Sheep's wool .

Raw silk . .

lbs. 1

1,200,000,000

10,000,000!

Sugar . . .

British produce &

manufac. export.

Shipping entered

36,000,000

tons.

51,000,000

tons.

130,000,000

tons.

and cleared .

Meroant. marine

4,000,000 2,000,000

4,000,000 2,400,000

9,500,000 3,500,000

19,300,000 5,600,000

British Colonies.

Population.

Imports. 1 Exports.

^.American ") colonies .} West Indies Australia .

Africa . .

Asia . . .

Europe , .

Estimated.

1,000,000

800,000

5,200

250,000

100,000,000

320,000

2,500,000

1,000,000 1,000,000

700,000 180,000,000

380,000

4,300,000

4,400,000

800,000

500,000

8,000,000

4,000,000

£ 13,500,000

3,700,000 38,000,000

3,500,000 34,000,000

4,000,000

3,000,000

7,500,000

400,000

400,000

10,000,000

3,000,000

10,000,000

5,000,000 33,000,000

102,375,200

185,580,000

22,000,000

75,600,000

Chapter II. Progress Of Taxation

^^0 trace to their sources the different branches of the -*- public revenue is not consistent with the object proposed by this Essay. We shall only glance at some principal incidentSj and mark those events which have introduced the germ of and paved the way to the present method of taxation ; nor is there much in the early history of British finance to guide us in the gradual reforms which may be introduced. The ancient sovereigns knew nothing of general systems of finance. Without the smallest notion of political arithmetic, with no census of population, and at a time when hoarding and secreting were universally resorted to for safety and for exemption from the exactions of the Crown, the taxes imposed were as arbitrary as they were untimely and disproportionate. And no privilege or right protected the subjects from the plunder of their irresponsible masters till a check was set upon the despotic levying of contributions by the provision of Magna Charta that no tax should be levied without the consent of Parliament.

William Rufus oppressed the people with taxes and exactions of every shape. Henry I. laid three shillings on every hide of land to provide for the marriage of his daughter. Stephen imposed no regular taxes, but raised all money by plunder and robbing. Henry II. took of the Jews a fourth part of their chattels, and levied a tax on all moveables. Richard I. levied a land-tax to provide for his expedition to the Holy Land. John took one-seventh of the moveables, seized all temporalities of the clergy, and tortured the Jews. Henry III. levied fifteen scutages and innumerable other taxes. He extorted from the Londoners 15,000 marks, and compelled the Jews to ransom themselves at ao,ooo marks. In the reign of Edward a land-tax was imposed. To him was granted the tenth sheaf of corn and the tenth lamb ; whilst, in consideration of the protection of merchant-ships and foreign trade, Parliament granted to Edward subsidies on wine and merchandize. A polltax was resorted to during the reign of Richard II., consisting of three groats on every person, male or female, above fifteen years of age, presciibing that the opulent should relieve the poor by an equitable compensation. The novelty of the tax and the partialities with which it was levied produced a grievous discontent among all classes, and a revolution was the consequence. Gradually, however, the English sovereigns consolidated their power and improved their method of taxation.

But, although the sources of revenue were various and the means of exacting it often unscrupulous, the allowance was scanty and precarious. Little reliance can be placed on figures describing the amount of revenue of the early English kings. The Conqueror's revenue is estimated at 400,00c/. or 1,200,000^. of pre-

PROGRESS OF TAXATION. 13

sent money ; a sum, however, whicli commanded ten times more of the necessaries of life than it would at present. William Rufus, Henry I., and Stephen, whose reigns extended down to the year 1 154, had a revenue respectively of about 300,000^. The Saxon or Plantagenet kings had a revenue still less in amount. Henry II. had 200,000^., Richard II. 130,000^., and the kings of the Houses of Lancaster and York had a revenue below 100,000^.

With the accession of the House of Tudor a considerable increase of the revenue took place. Henry VII., intent on accumulating treasures for himself, cared not what sacrifices and hardships he imposed on the nation. He issued commissions with instructions to demand one-sixteenth part of every man's substance, payable in money, plate, or jewels. Henry VIII., with whose name the Reformation is identified, appropriated the first-fruits and tenths of the Church livings, which formerly belonged to the Pope, to his own use. He laid foreign princes under contribution, raised money by proclamation, and under the colour of asking loans he exacted four shillings in the pound from the clergy and three shillings and fourpence from the laity. The short reign of Edward VI. was sufficient to afford scope to the rapacity of his ministers. Mary exacted loans, laid embargoes on private property, and wasted revenues otherwise abundant j and Elizabeth, though proud in the splendour of her court, was economical in her public expenditure and rather abstemious in the imposition of taxes.

The reign of James I. was one of abuses, exactions.

and monopolies. His ordinary revenue amounted to about 500,000/.^ but he drew large sums from subsidies, sales of land, patents, benevolences, &c. Tbe revenue of Charles averaged 900,000^., a large portion of which was derived from illegal sources; but the arbitrary nature and ruinous effects of such exactions greatly exasperated the nation against a sovereign otherwise so unpopular and unfortunate. During the civil war which ensued the exigencies of the Long Parliament continued great, and under the administration of Cromwell the public revenue was little short of 2,ooo,oooJ. per annum. Immediately after the Restoration the House of Commons settled on the Crown a revenue of 1,200,000/. a year, which was increased to 1,850,000?. during the reign of James II. In this sum, however, provision was made for the whole expenditure now known as ci\'il services, including the payment of ambassadors, judges, &c. It was on the accession of William III. that a distinction was first introduced in the revenue between the portion allotted to the endowment of the Crown and that assigned to the public service. Deprived of any legal title to an hereditary revenue, William was whoUy dependent on the dotation granted to him by the British Parliament. Having merged the politics of Britain into the vortex of Continental diplomacy, the yearly expenditure under William's reign greatly exceeded all former amounts. Yet more discrimination was exercised in the levying of taxes than had hitherto been the practice. The hearth-money, so long the object of discontent, was abandoned, and a direct tax was imposed somewhat on the basis of the present income and pro-

PEOGEESS OF TAXATION. 15

perty tax. Queen Anne's reign was distinguished by the auspicious union of England i and Scotland, the finances of which were thenceforth amalgamatedj and during her reign, frequent wars with France and other Powers caused the public revenue to increase to about 5,500,000^. per annum. With the accession of the House of Hanover a brief period of peace intervened ; but under the reign of George II. the revenue had further increased to 8,500,000^. The time, however, speedily arrived when, under circumstances of danger and public excitement, the finances of the nation acquired a great and permanent enlargement.

Towards the end of the eighteenth century, and during the long reign of George III., with a debt already swollen to a considerable amount, the political relations of Britain began to assume a threatening aspect. Commencing with the fatal misunderstanding on the right of taxing the colonies, which brought about the unfortunate American war, the country was soon after involved in a severe contest with France, whose armies spread terror and anarchy in the heart of all European States. The enormous armaments which Britain set on foot to resist the ambitious spirit of Napoleon, and the loans and subsidies granted to foreign Powers to make common cause against a common enemy, demanded of the nation unparalleled sacrifices. In the first decennium of the nineteenth century the revenue had already increased to an average amount of 48,000,000^, per annum ; but towards the end of the great struggle, in 18 10 to 18 19, the revenue rose to an average of 63,000,000^., or thirty per cent, more than iu the previous decenniuin, besides the extraordinaryloans then contracted.

In those days the nation forsook all thoughts of economy. Intent upon one object, no sacrifice was deemed too great to attain it; and millions upon millions were voted without one passing thought of the hardships which were certain to ensue. Year by year we labour to find means whereby some sources of revenue may prove more productive ; retrenchments are made, and a handsome surplus is at last secured. Flushed with prosperity, the Chancellor of the Exchequer is besieged by a host of suppliants, each complaining of some peculiar taxes more or less injurious to their interests. For a series of years this air of tranquillity renders the position of the Chancellor of the Exchequer an enviable one. But at last a cloud gathers on the political horizon, a treaty has been broken, certain rights have been infringed, a Don Pacifico has been plundered, the ambitious views of a neighbouring sovereign give rise to anxiety, or the attitude of foreign Powers gives token of coming troubles. First, as measures of prudence, and afterwards for purposes of defence and ofifence, the army is strengthened, the arsenals give signs of activity, and millions are readily voted where thousands were once grudged. The accumulations of years are then swamped in a moment, taxes are doubled, loans are contracted, and the whole financial system grows out of order. So it was during the French war ; so it was during the late Crimean war ; and so it will ever be, the political annals of Britain being always reflected in her financial history.