profits arifing from capital were lefs than a hundred and fifty pounds a year. He did not deny that the prefent claufes of the bill, as far as the tax on the funds was concerned, might be fimplified and improved. This, however, could be very easily done in the Committee. He was very much difpofed to think that any alteration to the extent which his right hon. Friend propofed, would neceffarily occafion much of that disclosure of circumstances which it was fo much the wifh of the framers of the bill to prevent as far as poffible. At all events, however, whatever improvements might be introduced, could better be fuggefted in the committee, than propofed in the form of inftructions. This he could not but confider an irregular mode of proceeding.

Mr. Gregor (from under the gailery) fpoke for a few mi̟nutes, but in a low tone of voice. We could only collect generally that he was a friend to the inftruction which Mr. Pitt had declared his determination to propofe.

Mr. Kinnaird, in very energetic terms, followed on the fame fide. Before the Houfe went into the Committee he was anxious that the principle of the bill fhould be fully understood. From the very luminous fpeech of the right hon. Gentleman oppofite (Mr. Pitt), with almost all of whofe ftrictures on the meafure he perfectly agreed, he could not hefitate in collecting that the bill was to be confidered as an income bill. The hon. and learned Gentleman oppofite (the Attorney General) had on the other hand laboured hard to prove that it was a tax on capital. He ridiculed what the laft fpeaker but one had faid about disclosure, and contended that there would be no want of perfons ready to declare their income, if by this means they might be excufed from the payment of an oppreffive tax. He adverted to the tax as it referred to Scotland, condemned it as contrary to the articles of the union, gave notice of his intention to move an inftruction to the Committee on the fubject, and expreffed a hope that the right hon. Gentleman would afford him his powerful fupport. Before he fat down, he alluded to the delay in bringing forward the meafure for the general defence of the country, which he had confidently expected to have heard detailed next day. Minifters boafted of their having long. and feriously revolved the fubject in their minds, but now the Houfe was told that the measure could not yet be produced, left it thould appear in a crude and undigefted form. VOL. IV. 802-3.

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When

When fuch was the language and the conduct of Minifters, he had ftrongly doubted how far he could, confiftently with his duty, entrust them with the fupplies which it might be proper to vote for the public fervice.

Mr. Wilberforce, in a short speech, impreffed on the Houfe the expediency of introducing fome very important alterations into the bill, which, as it now ftood, appeared to him peculiarly objectionable. If once the propriety of a tax on capital was admitted, then it would be neceffary to afcertain its intrinfic worth, and to calculate the value of capital employed in a great variety of ways. This of itfelf would be an inconvenience which would fully demonftrate the impolicy of fuch a mode of taxation. He perfectly agreed with what had been thrown out about landholders, under a certain annual income, not being entitled to any abatement of the tax. This was a class of men, of whom he had to reckon a very large proportion among the number of his conftituents. Many of them lived on their own farms, with the affistance of fome adventitious fource of income, while others wholly fupported themselves and families by the produce of the land. The attachment, the loyalty, the public fpirit of this refpectable part of the community were not unknown to the House; and was it fair, at a moment like the prefent, to place them under an unequal fyftem of taxation? The people of this country, he was fure, had good fenfe and public fpirit enough to fubmit to fuch burthens as were neceffary for the fupport of the public fervice, if they were but fairly and impartially impofed. Nothing, however, would fooner excite difcontent than any appearance of partiality of oppreffion in the mode of levying the taxes. This every man would deprecate as the greatest evil that could happen under the prefent fituation of the country. This was a time to foothe and conciliate, not to goad or to irritate the people. He applied the fame general remarks to the ftockholders, who were not to be exempted by the bill as it now ftood, or were to receive no abatements. With confiderable feeling he described their claim both on the justice and humanity of the Houfe. He illuftrated the argument drawn from views of national good faith, and infifted, that unless they were allowed equal advantages with the owners of other property, they had a fair right to complain of a violation of the public credit.

Mr. Dent was on the fame fide, and argued that, if the Chancellor of the Exchequer did not fully explain his views

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of a tax on the funds to those who contracted for the loan, he had been guilty of very reprehenfible inattention to their interest.

The Chancellor of the Exchequer admitted that those who appealed to the humanity or to the juftice of the Houfe on the fubject of the tax were entitled to have their opinions treated with all due refpect and confideration. Above all it was highly important to have it afcertained how far it was at all calculated in the remoteft degree to interfere with the national credit, which was, under eve y poffible confideration, to be preferved inviolate. He hoped that he was not less inclined than any other Member in the Houfe to liften to the calls of humanity, and if it could be proved that the operation of the tax would be inconfiftent with humanity, he certainly should not perfevere in preffing it to the House. But unless this could be made out, he thould feel it his duty to support it to the utmost of his power, as a tax, under all the circumftances of the cafe, the beft which could be brought forward for railing a large portion of the fupplies within the year. Against the principle of the tax, excepting from one or two quarters, no objections had in the former stages of the bill been brought forward, and till that night he had not been aware that there was any objection to the plan of raising a tax on the profits arifing from capital. It was not meant that any diftinction should be formed betwixt the different species of capital. It was to the income arifing from this capital that the provisions of the act were to apply. The various fpecies of capital were propofed to be divided into capital in landed property, property in the funds and money arifing from intereft or annuities. The other other denomination of property to which the act was to extend arose from income dependent upon perfonal exertions, or arifing from profeffons. It was in this that diftinction was to be founded. Every exertion had been made to render the operation of the tax on income and capiital as equal and impartial as poffible," while means had been employed to prevent the tax applicable to capital from being fuperadded to perfonal labour and induftry. On this principle the ratio had been established from fixty to a hundred and fifty pounds a year in eftimating the exemptions and abatements. The funds ftood exactly on the the fame footing in the application of the tax, as landed and other fpecies of property which had been repeatedly specified in the courfe of the debate. Unless, therefore, it could be thewn that the funds were expofed to any tax exclufive of

other property; unless the operation of the tax could be thewn to be more directly oppreffive, then it was impoffible to prove the existence of any violation of the public faith. He had, fince the tax was propofed, received a great number of applications on the fubject; but among the various objections stated, this had never been started, various as were the quarters from which the applications proceeded. The mode of levying the tax had been the principal ground of objection. He had not himself been unaware, how eager, and fenfitive thofe connected with the credit of the country were, in all cafes where that credit could in the remoteft de. gree be affected. Thofe applying to him had claimed that the dividends thould be fuffered to remain in the hands of the public creditor, that the business of the Stock Exchange hould remain unembarraffed, that no penalties fhould attach to the non-payment of the duty at the time the dividends were delivered. Impreffed with the importance of avoiding any thing like a fhock to public credit, and willing rather that the revenue should fuftain fome lofs than that funded property fhould experience any depreciation, he had thought it his duty to accede to the fubftance of their requests. An hon. Member had faid fomething about the communication of his defign of impofing this tax to the gentlemen who contracted for the loan. That hon. Gentleman, from his extenfive connections, ought to have known what was the real state of the cafe. He had only however to ftate, that he spoke this in the prefence of fome gentlemen who were prefent at the interview; that he had difclofed his views in the fulleft and moft explicit manner. As to the equality of the operation of the tax, he had to obferve, that it was formed on principles which appeared the best calculated to promote that most important object. But he begged leave further to call the attention of the Houfe to that measure, which had at its origin raised the public funds from a state of extraordinary depreflion, which had reanimated the national spirit, and led to the fuccefs which had diftinguished the last years of the war. Of the beneficial confequences of this meafure, no fort of doubt could be entertained; but of this he was fure, that no man would affirm that this tax, beneficial as it was in all its points of view, was equal in its operation. Perfect equality in the operation of any tax, however defirable it might be, was inconfiftent with the imperfection of human nature. He had no fort of objection to the prefent tax being called an income tax, except in fo far as he thought that the title, which had

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been affigned to it, more fully described its nature. He finished by declaring his opinion that the propofition for inftructing the Committee was unneceffary and irregular. It could only embarrass the proceedings of the Committee, without at all binding their decifions. He expreffed a hope that his right hon. Friend would not infift on preffing his motion.

Mr. Pitt, fo far from having heard any reafons to induce him to withdraw his notice, declared his express determination to take the fenfe of the House on the subject.

Sir. W. Curtis faid a few words, corroborating the statement of the Chancellor of the Exchequer refpecting his communication to the gentlemen concerned in contracting for the lottery.

Sir H. Mildmay obferved, that the prefent was a bill impofing an income tax upon the full produce of landed property, without any deduction for intereft or annuities charged upon fuch property. This was a principle which he confidered as extremely unfair, and unless he was affured that there was a difpofition on the part of his Majesty's Minifters to obviate this objection, he fhould vote against the Speaker leaving the chair. He highly approved the exemptions of all incomes under the value of 60l. a year; and alfo that a fcale of moderation fhould be adopted towards incomes, from 60l. to 150l. and upon the fame principle; namely, a principle of lenity to perfons of fmall income; he highly approved of the propofition of the right hon Gentleman oppo. fite to him (Mr. Pitt) and fhould vote for his motion when it came regularly forward. But there was one point on which the bill would have a moft fevere and unequal operation, contrary to its avowed principle; namely, that of a fair, equal, and proportionafe tax, for it made no exemption whatever in favour of perfons having large families, if their income exceeded 150l. a year, fo that whether a' man was fingle, or had a family of twelve children to fupport, there was no difference in the operation of the tax, though it must fall with a weight infinitely more oppreffive in the latter than in the former cafe. The natural mode with perfons of mo. derate income to countervail the tax, would be by reforting to rigid economy. This the gentleman of fmall family might do, by abridging the number of his fuperfluities; by ditmilling a part of his fervants, his carriages, or his horses, and diminishing the profufion of his table; but a man of large family, whofe income was barely able to fupport them in a style of moderate refpectability, had no fuch opportunity, as he could not dif

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