And we repeatedly added a wish for a first explosion of those crimes and calami. measure somewhat similar to the bill now ties, which have since brought desolation before us. I well remember to have de- on many nations, and extreme danger scribed it as the grand desideratum in fi- upon all, there were men (and Englishnance. But we at the same time ex- men too) of leading and enlightened tapressed our fears that such a measure lents, who believed or affected to believe, would be found impracticable. It now ap- and who persuaded themselves and others, pears that the difficulties, which we feared, that the French revolution was the most were not insurmountable. The successful glorious fabric of human integrity and attempt to surmount them was well worthy wisdom; that it was the victory of eternal of that great and energetic mind which di- truth over prejudices; and that the atrorects our councils. It was well worthy of cious acts of the revolutionists were only that mind, which seems to have been cre the first excesses and transient ebullitions ated, by a beneficent Providence, for the of a new liberty, calculated to become preservation of this kingdom-for the pre- the epoch and consummation of human servation of an adjoining kingdom, whose happiness. The wretched delusion expermanent prosperity nnd security (in de- tended itself, and prevailed with much spite of her ill-judged jealousies) we cor- force, and with many perilous consedially seek to equalize with our own pros-quences, to the period of the Lisle negoperity and security; and, perhaps, also for the restoration of Europe. Nothing inferior to the force of such a mind could have accomplished a project, which, in its actual effect and probable consequences, is of a nature so gigantic, that it is well calculated to rank with the other events of 1798. I annex no epithet to those events, for no language can do justice to their glory, or to their importance. tiation: and even then, a great part of the nation was disposed to abandon the whole continent of Europe to subjugation and destruction, and to make other ruinous sacrifices, in order to purchase a nominal peace, more fatal than any war. When I look back to that period, I have all the painful sensations of a feverish and frightful dream. Almighty God was pleased, for our preservation, to destroy But if the adoption of this measure will our short-sighted hopes. The Lisle conbe really so advantageous to the public, is ferences were broken off in a manner it not (says one of the noble lords) an ad- which removed the film from the eyes of mission that the system, which you have many. France avowed the inveterate deso long pursued, was wrong? Is it not sign to destroy and extirpate the British an implied censure on that system? In empire! She proclaimed her design with other words, if the new system is so clearly ostentation, and made the most extravathe best, why was it not sooner brought gant preparations to execute it. Every forward? Perhaps it might be a sufficient doubt now ceased, and it became most answer, that till the funds began to be de- manifest, that a steady and vigorous propressed by the accumulated weight of secution of the war was indispensable to new loans, the expediency of raising a con- our existence as an independent people. siderable part of the supply within the In a crisis, so awfully interesting, the year was less evident and less urgent. But whole spirit and good sense of the nation there was another reason, paramount to burst forth. The militia, the yeomanry, all reasons. It was impossible at an the army, the navy, were all animated by earlier period, to procure the adoption of the same zeal, and vied with each other the large and salutary plan now offered to in activity, promptitude, discipline and us. Our countrymen in general have been bravery. The same enthusiasm warmed well and wisely disposed, during the whole the heart of every Englishman in every of the tremendous struggle in which we part of the globe. The wisdom of parare engaged, from its commencement to liament went hand in hand with the right the present hour. Still, however, there disposition of the people; and towards the were many, too many, among us, to whom close of 1797, brought forward the meathe progress of the French revolution, and sure of the additional assessed taxes, the events of the war, had not yet deve- which was accompanied by a voluntary loped the infernal views and tendency of contribution, promoted by all ranks with Jacobinism, or the principles and practicos a generosity unexampled, and amounting of those, who, both secretly and openly, at this hour to a sum little short of two were supporting its cause. millions sterling. Those exertions, which laid the foundation of the great system It must be remembered that, in the now under discussion, were farther aided | fanciful and extravagant; not indeed with by a war tax (the convoy tax) on our much success, but certainly with much imports and exports. And here I must vehemence, both in speeches and publidigress for a moment to remark, that the cations. I may now be permitted to reply, amount of those imports and exports, by with a reasonable exultation, that our aca most happy peculiarity in the seventh tual prosperity (independently of the inyear of a war, was in 1798, so far as the calculable advantages to be derived from accounts are completed, greater than ever. our late victories and from the opening of It was seen and acknowledged, that new sources of commerce) far exceeds the measure of the additional assessments what I ventured, in 1796, to promise, or bore unequally, and that its inequalities even to think probable. affected those who came forward with public spirit, and who were incapable of evasions; at the same time, that the comparative means of others, in many cases, evaded a fair contribution, and in many more were exempted from all charge. The measure nevertheless went forward, and with all its imperfections was of such evident utility, as to excite a general wish to improve and extend it. It was highly encouraging to that extension to have observed, in the progress of the experiment, that the defalcations made from the incomes or capitals of individuals, had not occasioned any distress or embarrassinent. On the contrary, there has been a general and progressive increase in the prosperity of the kingdom. Your lordships will find ample proofs of this assertion in the comparative statements of our trade; in the favourable course of exchange with the continent; in the nett produce of the permanent revenue, which for the year ending the 5th of January 1798, was 17,960,000l. and for the year ending January 5, 1799, 21,049,000l.: but more especially in the nett produce of the permanent taxes which existed antecedent to the war. That produce for the year ending the 5th of this month was 1,070,000l. higher than in the preceding year:-2,021,000l. higher than what I once stated in this House to have been the average produce of the three years ending the 5th of January 1796: and 118,000l. higher than in the most productive year of peace, I mean the year ending the 5th of January 1793. In mentioning the exports, I ought to have remarked that the value of British manufactures, exported in 1798, so far as can be inferred from the amount of the three quarters ending the 10th of October, was considerably greater than ever. All these evidences of prosperity are now much stronger than the statements and estimates which I submitted to your lordships in May 1796. And yet those estimates were at the time attacked, and disputed, and opposed, as [VOL. XXXIV.] The war supply, thus established, has been paid without a murmur. It has been accompanied by the astonishing successes, by which the year 1798 will be rendered ever memorable in history. Nor will the impression, estimation, and value, of those successes, be diminished by the assertion of the noble baron, that "Two hundred millions have been squandered without attaining any permanent advantage." That assertion, my lords, provokes me to request your attention for a moment to the singular contrast exhibited by the enemy. Bankrupt in finance; ruined in manufactures; deprived of all commerce; baffled in all project of invasion; disgraced and defeated in every attempt to injure this country, which has been the peculiar object of hostility; groaning under the loss of large fleets and large armies; struggling against the hatred, and horror, and despair, of enslaved nations; and exposed to new hostilities from other states at last sensible of the general danger; France nevertheless continues to pursue her wild and wicked career! cheating one ally, extorting money from a second, and plundering a third, in order to collect means to invade fourth, without provocation or pretext; fomenting and purchasing rebellions and revolutions; carrying or threatening devastation indiscriminately to republics and to monarchies; she still continues to set at defiance all the principles and duties of religion, and all the laws of nature and of nations. And this extremity of persevering wickedness is blended with a presumptuous rashness, and with a cold and calculating cruelty, beyond any example at which we have shuddered in the most degrading records of human depravity. It is not easy in private life for the bravest man to defend himself against a mad and desperate ruffian. There is something analogous in the struggles between nations. Nor can there be a doubt that this country would have fallen, and would have involved in her ruin all the [0] other existing governments, if our countrymen had not been awakened to a timely sense of their danger, and if they had not been animated by a well-founded confidence in their own resources, and by a wise and characteristic courage. We feel and know that our only road to peace and security is by resistance and energy. We are driven, and we universally acknowledge that we are driven to provide for another year, with the same vigour to which we owe our present safety and prosperity, and the unparalleled glory with which they are accompanied. Happily we have means and resources still adequate to the trial; and it only remains to be considered, whether those resources can be brought into activity and effect better than by the measure now before us. What then, my lords, are the nature and objects of this measure? Its leading principle, as in the measure of the last year, is, to raise a considerable portion of the supplies of the year within the year; and to liquidate, within a short time, what may be farther raised by loan. The sum raised last year, by the different modes of what may be called a war supply, will probably amount to about seven millions and a half. The sum estimated to be raised towards the service of the present year, by this bill, and by the war tax on imports and exports, is about twelve millions. With these views, it is proposed to tax in equal proportions, all the descriptions and classes of income, except those only which belong to the poor and labouring part of the community; and also except that small amount of income which may be presumed to furnish a mere subsistence. The sum expected to be thus raised has been stated at ten millions, being the tenth of the calculated amount of that part of the national income, which is made liable to the proposed contribution. I have reason to believe, that this calculation is moderate, and that by a commendable caution it is given below the truth. I farther incline to think, that the general income of the class exempted from all contribution might be shown to be, at least, as great as that part of the national income on which this bill will operate. The plan has been introduced, framed, and completed, with every modification and indulgence compatible with its principle. Large allowances have been made to families and to individuals, in proportion to the number of their children, and by a scale highly favourable to incomes not exceeding 1,000l. upon the principle, that the expense of maintaining and educating children bears proportionably more heavily on small incomes than it does on larger incomes. The rules for estimating the incomes of farmers, and lessees of land, and more especially of farmers under 300l. a year, have also been stated with most liberal modifications and abatements. And there appear in the bill many other indulgences, proceeding certainly from just and wise motives, but tending to diminish the estimated produce. Still, however, when we recollect that the additional assessments, with the voluntary contributions, are producing above six millions, it is not unreasonable to presume, that the measure now in question may produce ten millions. The measure of the last session, by the nature of its operation, forced upon some only (and in that, as well as in other respects, it was partial) the necessity of declaring their incomes. The present measure requires from all, the statement of an income, not inferior to the income actually possessed and enjoyed; allowing, however, a veil of secrecy to be thrown over such statements in every case where the publication may be thought by the individual to be contrary to his commercial interests, it will result from these provisions, that the hoarders of income must now pay their full proportion for the protection which they enjoy. Nor will it any longer happen that the conscientious contributor will pay his quota, or more than his quota, whilst the cold hearted and the fraudulent, with equal or greater means, pay little or nothing. In these respects, the system is now as just towards individuals as it will be found to be expedient with regard to the public. Keeping these several objects in view, the present bill appears to me to have been anxiously calculated, and ably and accurately framed to prevent inequality, fraud, embarrassment, and injury. And thus it is, my lords, that we are accomplishing the best operation of finance, the practicability of obtaining, by a national effort, to be made for a time only, without national inconvenience, any supply that the national exigencies may require. That in a measure so extensive, unforeseen cases may occur, which may hereafter call for parliamentary interference, relief, or explanation is probable, and more than probable. Undoubtedly many such cases may, and will occur. On the other hand, occasions may arise in which it will be necessary to apply strict and more effectual provisions, to obviate unforeseen evasions and frauds. I shall now, my lords, take a summary view of the principle advantages to be derived from the vote which, I trust, we are about to give. Some of those advantages were entirely overlooked by the noble baron, and others seem to me to have been under-rated by him. The consideration which first presents itself is that of economy. I will not fatigue your lordships with minute calculations. But in comparing the prompt levy and payment of twenty millions, with the value of the annuity which must have been created, if parliament had borrowed the same sum by loan, I am moderate in assuming, that such a loan could not have been obtained at a better price than 50%. for the 3 per cent, or at an interest of 6 per cent, which with the provision of 2 per cent towards the redemption of the capital so created, would have amounted to a charge of 8 per cent, or 1,600,000%. And here let me remark incidentally, that 1,600,000l. a year must have been imposed in new and permanent taxes; to which might be added, the great expense of collecting. These considerations must not be overlooked in comparing the 10 per cent upon income payable only for two years, to produce the amount of the sum stated. The 1,600,000l. a year so created for the interest and gradual extinction of the twenty millions so borrowed, or, in other words, for the extinction of forty millions capital 3 per cents, may be estimated to extinguish the whole, at the probable average price of the funds, in about forty years. What, then, is the present value of such an annuity for forty years? Your lordships will find it to be about twenty years purchase, taking the average interest of money at 4 per cent. And certainly, though, from the experience of this century, there have been wars during nearly sixteen years in every forty years, 4 per cent may now be considered, under the actual prosperity and prospects of this country, as a fair average interest. The result then will be, that instead of creating an annuity in taxes bearing heavily on the people in general, the value of which would be thirty-two millions, you raise twenty millions in two years, and gain the difference. But the farther resulting advantages are infinitely more important. It is not among the least of those advantages, that by the present plan, the salutary effects of the sinking fund are greatly accelerated. The sums of different descriptions to be reserved, and applied by the commissioners for the redemption of the national debt, will, in the first year of peace, be not less than fifteen millions or nearly 50,000l. a day, for three hundred days in the year. The operation of such a sum, brought daily into the market to purchase stocks, which is to be extinguished, and not to return to the market, cannot fail to have an effect in favour of public credit as much beyond all calculation as it will be beyond all experience. It is a farther consolation and encou ragement under our actual exertions, that we are now approaching fast towards that period, when the original sinking fund will have reached its maximum; and when, by the addition of the 1 per cent which has been appropriated for the gradual discharge of the capital in every loan of the present war, the permanent sinking fund will amount to eight millions sterling a year. When I said, that the plan proposed will prevent the increase of permanent taxes, which otherwise must have been levied on articles of consumption, I ought to have added, that by avoiding such an addition to the permanent taxes, we 'accelerate our arrival at the period when a part of the taxes already subsisting may be abolished. But the advantages of the measure are not confined to the question of economy, however important; nor to the operations of the sinking fund, however salutary; nor to the avoiding of new taxes, however desirable to the people at large: nor to the maintenance of our public credit, however essential to our prosperity: they are calculated to demonstrate to our enemies, and to the world at large, that we possess inexhaustible resources, together with the disposition to use them; and that we are determined to assert and to secure that proud position which we hold, and which, I trust, we shall long continue to hold among nations. I shall now avail myself of your lordship's indulgence, to take a short notice of the principal objection to which this bill has been thought liable. It has been said by the noble baron, and has been suggested to me by others, for whose opinions also I feel a sincere respect, that the bill having exempted all incomes below 60%., and having imposed the payment in a progressive scale, from 60l. to 2007., the principle of gradual rise is admitted, and ought to have been pursued through all the higher classes of income. I contend with all due deference, that such a rise would be contrary to all the safety and rights of property; that it is worthy only of the French council of Five Hundred, and consequently would be disgraceful to a British parliament; and that it would amount to neither more nor less than the introduction of a plan for equalizing fortunes; and to the implied inference, that because a man possesses much, therefore more shall be taken from him than is proportionably taken from others. Nor, when the matter is fairly considered, is there any inconsistency in the exemption given to incomes below 60%. That exemption is only a liberal construction and exercise of the principle, that in levying a tax upon income, we ought not to extend it to incomes which may be necessary to actual subsistence: and having established that point at 60l. a year, there must be some gradations beyond it in order to arrive at the one-tenth :-otherwise, it would happen that the man of 651. a year, would by the payment of 67. 10s. become poorer than the man of 60l. a year, and so in proportion in advancing higher. Perhaps it might have been more strictly conformable to the proposed system, to have confined the scale within 100l. a year. But I give no opinion contrary to the more liberal sentiment which has been exercised by the framers of the bill. I am only solicitous to establish the consistency of the principle, by which the inequalities of income remain as they were found; and by which the privations of the year bear, within the year, in an equal proportion upon all. The notion of requiring a higher proportion from the higher classes, exclusive of its levelling tendency, would imply, that in all taxes upon consumption also, every individual should be rated in proportion to his income; and that when a man of 400l. a year pays a duty of five shillings for a bushel of salt, or for any given quantity of tea or wine, the possessor of 4,000l. a year ought to pay fifty shillings. It is no answer to this, that the use of such articles is, in some degree, voluntary. Happily, such a system, which certainly would be unjust and most mischievous, is as certainly impracticable. There is another objection, which is equally unsound, though more plausible. We are told, that one species of income is more valuable than another: and therefore, as a fair price for its protection, that it ought to pay in proportion to its value: for example! that an annuity for life being worth only ten years purchase, and an income resulting from an estate in fee being worth thirty years purchase, the latter ought to pay three times as much as the former. I confess that, for a moment, and when this notion first occurred in the debates of the last session, I conceived it to have some solidity: but a little reflexion will show that the whole difficulty arises from a confusion in terms, and from blending together the ideas of income and of capital. Income, as income, cannot be distinguished, and brought into a scale of taxation, whatever may be the nature and value of the fund from which it is derived. The moment that income is rated by its value in the market, it ceases to have the properties of income, and becomes capital. And then a new question presents itself: -will you impose your contribution upon capital? I conceive that a tax on capital would be unattainable. How would it be possible to value the different estates of the owners and occupiers of land, and all the different modifications, conditions, settlements, remainders, and reversions, to which real property is liable? Still more, at how many years purchase, and by what rules, will you value the varying incomes of artists, manufacturers, and mercantile and professional men? They are in the nature of incomes, for life or for years, and generally with the advantage of being in a course of increase and improvement. It is true that they are subject to innumerable accidents and changes; but they cannot be distinguished in their average from other annuities, no more than those annuities can be distinguished from incomes which are nominally for ever. Will it be contended, that, in point of real value, an unsettled estate, which its owner will leave to his children, is of more worth to him, than if the same estate were for his life only, and already settled on his son and his descendants? Would an estate so settled on him for life, with remainder to his heirs male, be more valuable to him, than it would be if he had no son, and it were settled on some distant relation or on a stranger? And if on a stranger, how is it more valuable to the possessor, than any other annuity for life? The income arising from commerce or a profession, becomes, on the retreat or de |