If,

you do it for mere purposes of registra- to something like an income tax of 11 tion, which can easily be effected with- per cent upon the whole means of the out it? It was clearly the intention of family. But if the man rises in his its founder that it should operate only as scale of diet, and eats meat, eggs, buta register; but it really is, and it has ter, and the like, he then lives on articles now come to be regarded as, a source of that are duty free; and therefore this Revenue. And what sort of a source of tax presses with its greatest severity on Revenue is it? It is impossible to ima- the poor-that severity increasing in the gine any tax which combines more of ratio of their very poverty. Again, it the qualities that make a tax odious is a tax on a raw material in its very that is, it is a duty on an article that is rawest state; and this 18. a quarter-or produced in England with no counter- whatever it is-has to bear the profit of vailing Excise duty upon it; it is there- the millers, the retailers, and all the fore effectual as a protective duty-that different persons through whose hands is to say, it not merely raises the price the corn passes before it reaches the poor of the portion of the article that pays it, man in the form of a loaf. In fact, in but also raises the price of the portion of every way it violates all the principles the article that does not pay it. It, of political economy; and the only thing therefore, inflicts on the subject a bur- that can be said for it is that it is a very den much more considerable than the little tax, though it yields a considerable benefit it confers on the Revenue. If we sum of money to the Exchequer. want to get at the real evils of the tax, however, the argument that the tax let us imagine ourselves applying to it being small it can therefore do no harm the same rules as we apply to all other is to prevail, then I say we have found protective taxes, and put a countervailing the philosopher's stone of finance, beExcise duty on the home-grown article. cause, whatever may be the difficulty of Just fancy the exciseman let loose upon putting on a good tax, nothing will be the barns and the stores of the farmer so easy as putting on a little tax or a and the corn-dealers, collecting a tax of number of little taxes. Thus, if amouut 3d. per cwt. on their corn all over the is to be looked at, and not principle, country. What a sensation it would you may have a system of taxation create! The case is not altered by the which violates every rule to which fact that the Government raises the tax every tax should be subject. The oball over the country; and as the price of ject is to find a good tax. The proporwheat is raised by the tax, the Govern- tion of this tax is not large, but the sum ment should apply a remedy instead of raised is large. Although in the case of taxing the consumer, according to the a small duty of this kind we cannot trace exploded system, for the benefit of the its exact incidence or measure the exact producer. But the case of this tax is amount of the mischief it does, surely still worse than that. The consumpthere is such a thing as faith in politics tion of wheat in this country is about as well as in religion; and if we cannot 22,000,000 quarters annually; the im- at this time of day trust enough to the ports are about 8,000,000 quarters, and doctrines of political economy and Free the home growth about 14,000,000 Trade to believe that when you raise quarters. I do not mean to say that nearly £1,000,000 sterling from the very the price of the whole 14,000,000 quar- poorest of your people you do an immense ters grown at home can be sensibly amount of mischief, what is the use of raised by this tax, but I feel no doubt abstract science or speculation at all? If that the price of a considerable portion we can take nothing on the strength of of it is, and no one can exactly say how abstract reasoning, and everything must much. Then consider how hard it is. rest upon statistics, which it is impossible Why, it is a kind of poll-tax, of which to obtain in such cases, then we may as we hear so much in olden times; but it well burn our books on political ecois graduated in a peculiar fashion, be-nomy, and economic science is altogether cause it falls heaviest on the poorest of useless. But if political economy be true, your people. It has been computed by these mischievous effects are certainly persons who have inquired into the sub-produced, even though we may not be ject that if a man and his family ate able to trace them. But I hope we may nothing but bread-which is the case of yet do some good in this matter. Then the very poor-this duty would be equal there is another point that also appears

to me to be of the greatest importance, also a tax of 3 per cent. Thus it apand that is the amount of trade that pears that during the whole of this time might exist in this article if it were not very considerable sums have been levied for the duty. I have called for Returns by means of a tax which was in itself on this subject, and with the permission small in amount. I do not wish, howof the Committee I will read them, to ever, to labour this subject further, and show how little of an exporting country nothing but its importance to the poorest England is. I hold in my hand a Re- and most helpless class of the community turn of the exportation of foreign and could justify me in saying so much as I colonial corn and grain; and of course have done. In doing what we propose the thing derives more weight when we I am satisfied we shall be doing that consider that England, with her enor- which will greatly tend to their benefit, mous trade, is fitted by her splendid and be laying the foundation of a great geographical position between America entrepôt trade which will not only be of on the one hand and the corn-growing enormous advantage to the mercantile countries of the Baltic, Russia and Po- classes, but which will have the equally land, on the other, to become more and desirable result of creating that abundmore the commercial entrepôt of the ance to which the existence of an entreworld for these and other commodities. pôt so largely contributes by circulating Well, this is the Return for the years traffic and sensibly lowering prices. An. 1864, 1865, 1866, 1867, and 1868. The other remission which we propose is one corn exported from the warehouse, or with respect to which I shall not enter after payment of the duty, was in 1864, into any lengthened argument, because 21,455 quarters; in 1865 it was 10,851 it has often been discussed in this House, quarters; in 1866, 17,648 quarters; in and because the House has pronounced 1867, 65,453 quarters; and in 1868, an opinion on it. As the Committee pos83,086 quarters. And that is all that sibly anticipates, I allude to the duty on England exports of an article for the fire insurance. The fire insurance duty trade in which her geographical position, has been the subject of much metaas I have said, fits her to be the entrepôt physical discussion, but it has never, I of Europe. There were also, in the year think, been better defined than by my 1864, under transhipment, 54,164 quar- right hon. Friend at the head of the Goters of foreign and colonial corn and vernment when he described it as being grain; in 1865, 9,239 quarters; in 1866, an income tax with two great exceptions 49,071 quarters; in 1867, 169,467 quar--the one in favour of a person who was ters; and in 1868, 154,902 quarters. rich enough to be his own insurer, and Observe how much larger the quantities the other in favour of the man who under transhipment are than the quantities exported from the warehouseplainly showing the evil effect of the duty in preventing the establishment of a great corn depot in this country. I have here another table, which I wish to read, giving the average importation of corn in the seven years from 1861 to 1867. In those years there were imported 28,000,000 cwt. of wheat, of the value of £16,000,000 sterling; on an average of those years, at the price of 11s. 5d. per cwt., and, taking the duty at 3d. per cwt., the tax on that wheat must be estimated at about 2 per cent of its value. Of flour 3,800,000 cwt. were imported, which sold at the rate of 14s. 11d. per cwt., making at 44d. per cwt. a tax of about the same amount. Of barley, 6,500,000 quarters were imported, which sold at 78. 8d. per quarter, making a tax of 3 per cent; of oats 6,800,000 quarters, which sold at 78. 8d. per quarter, making

might be rich enough, but yet was too improvident to insure at all. I will not, as I said before, enter into the subject at any length, since it has already been exhausted, and I can add nothing new to its discussion. I agree with those who maintain that it is in vain to expect a revival in a tax like this, if merely diminished, such as you expect from a remission of taxation on articles of consumption. It is a tax upon prudence, and the same improvidence which deters a man from insuring now would be likely to operate still if the tax were lowered. It is, besides, a tax which appears to me to have many faults. It is an optional tax, and any person who wishes to escape it may do so by taking what may be looked upon as a very foolish and improvident course. It is, in fact, a sort of penalty imposed upon the exercise of providence, and I mention this because I cannot agree with the

summer next.

hon. Member for Dudley (Mr. H. B. [those lesser taxes in which we propose Sheridan), whose attention I would in- that remissions should be made. The vite, as the subject is so intimately con- duty on hair powder is the first which nected with the discussion on his Mo- presents itself. It yields a revenue of tion next week. He seems to be of £925,000 a year. [A laugh.] I mean opinion that there is great recuperative £925 a year. I beg the pardon of the power in this tax; but he must not Committee, but it is one of the many forget that, if we go below a certain difficulties of the subject that the figures point, new arrangements must be made with which I have to deal are in some for its collection, while the expenses of instances so exceedingly large, and in that collection would not be diminished. others, comparatively speaking, so small, Entertaining these views, and seeing that it is not always so easy for one so the strong feeling that has existed on inexperienced in financial statements as the subject, the Government have deemed myself to bear in mind their relative it to be the best course to pursue to proportions. I believe, however, I am repeal the tax altogether. ["Hear!"] correct in saying that we realize £925 a I am afraid I must moderate the satis- year from the duty on hair powder; and faction of those hon. Gentlemen who the best thing I think which we can do cheer by stating that when the duty with that tax is to abolish it altogether. was lowered from 3s. to 1s. 6d. the re- I now come to the tax on armorial bearduction did not come into effect until ings, which is a tax which is very sinMidsummer, and as we have entered gular as well as unsatisfactory. It is upon this quarter, and as an Act of of this nature. If a person possesses a Parliament will be required to do away carriage, on which he would have to with the tax altogether, we propose pay at the present rate of duty £3 108. that its abolition should date from Mid- a year, he has to pay for armorial bearings £2 128. 9d.; but if he does not I have now stated three remissions possess a carriage he has to pay only which we propose to make-that of 1d. in 13s. 2d. It is not necessary that he the pound in the income tax, the corn should put the armorial bearings on his duty, and the duty on fire insurance; and carriage. A physician, for instance, who I proceed in the next place to deal with has no carriage may have a seal, for another part of my subject which does which he would have to pay a duty of not involve the mention of such large only 13s. 2d., but if he has a carriage and figures, although it is nevertheless ex- drives about to visit his patients he will ceedingly important, and if I mistake have to pay a tax of £2 128. 9d., instead not will be found by hon. Gentlemen to of 13s. 2d. for armorial bearings, even be exceedingly interesting. I only hope though he does not put them on his it may in some degree tend to relieve carriage. That is not a very satisfactory the very dry nature of the statement state of things, and I should be glad which it has been my duty to lay before if I could get rid of the duty altothe Committee. I said, as the Commit-gether, inasmuch as I do not think it tee will remember, that it was necessary, is based on any sound or good prinin order to work the system of Excise licenses which we propose to substitute for the present assessed taxes, that we should have recourse to a system of simplification and do away with a great deal of the complexity which attends the payment of these taxes, at the risk of relieving the rich from something which they ought to pay, and charging, I am sorry to say, a little more to the poor. We have deemed it expedient, in fact, to make the duty uniform in order to insure the permanence of the taxes, and to prevent them from becoming an intolerable nuisance to those who will have to send in declarations. Having said thus much, I will go through

ciple. But as I cannot get rid of it the best thing it appears to me which I can do is to increase it a little. I propose to alter the present rates of duty, and to charge the £1 18. for armorial bearings and that is for all armorial bearings other than those on carriages, and if a gentleman likes to put his armorial bearings on his carriage, then I propose that he should pay another £1 18.; so that there will be, in fact, two taxes of £1 18. each, which will bring to the Revenue, it is computed, an additional sum of £8,000 from this source. I come, in the next place, to carriages on four wheels. At present, if drawn by two horses, they pay as

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