Greenwich.-Read a fecond time, and committed for the next day.

The London coal market bill; the friendly focieties' bill; the Irish juftice of peace protection bill; the Irith fhip burning bill, and the Guernfey corn bill, were read a third time, paffed, and ordered to the Lords.

Sir W. Geary prefented a petition from the debtors confined in Maidflone gaol;-Ordered to lie on the table.

The Lord Mayor moved, that the order of the day for the Houfe refolving into a Committee on the City additional force bill fhould be poftponed till the next day. Ordered.

The volunteer corps bill was read a fecond time, and committed for Monday.

The further confideration of the report of the cotton bill was poftponed till the next day.

Mr. Vanfittart moved, that the further confideration of the report of the affeffed tax bill, and the Scotch affeffed tax bill, fhould be poftponed till Tuesday.-Ordered.

The Houfe, in a Committee, went through the Thames police bill. Ordered to be reported the next day.

Mr. Alexander brought up the reports of the longitude bill, and the Grenada loan bill, which were ordered to be read a third time the next day.

Mr. H. Addington brought up a bill for more (peedily completing the militia of Great Britain, which was read a first time, and ordered to be rod a second time the next day.

INCOME TAX.

The Chancellor of the Exchequer moved the order of the day for the Houfé refolving itself into a Committee of the whole Houfe, on' the property and income tax bill. Re folved.accordingly.

After the Committee had proceeded fome length, in confidering and difcuffing the bill, paragraph by paragragh,

The Chancellor of the Exchequer rofe and faid, "Sir, 1 rife at this time in the hope of thortening the difcuffion. I have confidered the fentiments which were thrown out laft night, with regard to exemptions; and I am decidedly of the opinion I was then of, that no breach of good faith could poffibly attach on the fuppofed diftinction between income arifing from trade and other fpecies of income. I would beg the Committee to advert to the principles of the bill, in confidering of the propriety of the alteration about to be fubmitted to them. It is propofed to make a diftinction between

the

the income arifing from capital, and that arising from bodily labour and skill. In thofe cafes where the income is pro duced by a combination of intereft, from capital, and that arifing from bodily labour, it was my wish to grant indule gence, fo that no perfon fhould pay more than 51. when his income amounted to lefs than 150l. The intereft arising from capital is then one which may be fairly fixed with the tax. I mean to propose an exception from the principle of the bill, in fo far as regards that fort at income which arifes not from bodily labour, but from the learned professions, which is even more extensive than that arising from capital. Of all the cafes of hardship to which this tax can apply, I conceive that it is moft fevere on the income arising from that fpecies of industry. It will not be the policy of Parlia ment at this time to exclude the income arifing from that fource, however, from contributing a fair fum towards the prefent exigencies. There is no one who arrives to great attainments in fuch profeffions as I allude to, who has not acquired a confiderable proportion of capital; and you are, therefore, to combine the advantages which he thus derives, not from bodily labour, but from the labour of the mind, with the income arifing from his capital. Almost every perfon engaged in trade may carry on that trade by means of reprefentatives; but perfons engaged in the learned profeffions must give in perfon that advice which is neceffary, for no proxy can poffibly be admitted. It is abfolutely impoffible to apply an unobjectionable mode of taxation. I feel the difficulty of extending the exemptions, on account of creating a prodigious addition to the trouble of the Commiffioners. It does not appear to me, however, to be unjust or irrational to make a diftinction between capital arifing from trade yielding a large intereft, and that which yields a moderate income. No defalcation of any confequence would arise from the propofed exemption. There is no ground for a charge of violation of faith. It may be a matter of furprife to the Committee, that after confidering the fubject with great anxiety, I fhould now feel difpofed to think, under the prefent circumftances, that the public cre ditors should enjoy fome exemption from the prefent tax. I am inclined, to join in the with which was pretty generally expreffed laft night, to extend the exemptions to perfons de riving their incomes from land to the amount of 150l. and to propose a scale for that purpofe. But, Sir, I must fairly own, that I do this with great difficulty, It is a difficulty, VOL. IV. 1802-3. however,

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however, which am fatisfied may be got the better of, at the expense of what is highly important towards the prefervation of the bill the avoiding difclofure and contributing towards the cafe of collecting the tax. Sir, this is a moment, when, above all others, I am glad to fee a reluctance in feveral Gentlemen to acquiefce in the adoption of any measure which may tend to injure the feelings of any clafs of individuals. It is moft defirable, important, and neceffary, to carry with us the opinions and feelings of that very defcription of perfons for whom I have been brought to reconcile my mind to thefe exemptions. They conftitute a very confiderable proportion of the yeomanry, whole zeal, fpirit, and ardent love of their country, have been manifested in a confpicuous manner during the last ten years, and never more alive to that ardent zeal than at the present moment, I am affured, that an expectation was entertained by them, that they would experience the indulgence of the Legislature, and that persons of a given income would not be subject to be taxed fo fully as others. But having faid this, I must acknowledge, that I look forward to fome degree of defalcation in the amount of the tax, which will create a neceffity, if the war fhould continue, for Parliament to act up to our avowed principle, of raifing fupplies within the year. I hope, therefore, that Gentlemen will make up their minds to fill up the chafms which may arife from fuch exemptions I shall now allude to the schedule which is neceffary to introduce this exemption. I fhould propose to leave out that part of the bill, which begins with fchedule B. No. 2, to the end of the 20th page; with the intention of propofing the next day certain claufes, which may be introduced when approved of by the Committee, fo as to carry the purpofe into effect. Though I entertain a conviction that the bill will be got over, it will require very great diligence to prepare the claufes for the continuance of the difcuffion to-morrow. I apprehend, however, that they will be ready for confideration by that time."

Mr. Pitt faid, he had heard the obfervations of the Chan cellor of the Exchequer with inexpreffible fatisfaction. They had freed his mind from thofe objections which, had the measure been perfifled in as it originally flood, would not have prevented him from fupporting the bill in general. His objections could not have prevented him fupporting the fyftem of railing great part of the fupplies within the year. But he thought the dangers would have counteracted the advantages

vantages of the plan. He was most anxious that there fhouldn be a probability of every man concurring in the measure in general, and in every part of it. Though in the detail there. might be confiderable difficulties, he trufted there would be. none as to the fundamental principles. He trusted the Com- ! mittee would proceed with minds actuated by a defire to render the bill as perfect as poffible. Understanding that the point which formed the bafis of his objection; was given up, he was not anxious to tread over the controversy, or to advert to the motives which might have produced the changes. He would not quarrel becaufe his arguments might not have been approved of; he was perfectly satisfied that the conclufion of them had been adopted. He oblerved, that as far as the exemptions were applied to landed and funded, property, as well as other fources of income, there could be no difficulty in adopting the bill without ftrikings out the fchedules...

The Attorney General faid, as it was intended to carry ther exemptions to every 'defeription of income, it would be more convenient to adopt a general provifion that should extend to them.

b Di. Laurence thought the mode of making the alteration: in the bill fhould be left to the Chancellor of the Exchequer, He was of opinion the Chancellor of the Exchequer bado acted wifely and politically, in giving way in favour of that, bold peafantry, which, once extinguished,' never could be fupplied. He could not pledge himself to vote for any tax that might be brought forward to supply the defalcation accafioned by the exemptions, but he was fure he should ever be difpofed to vote for taxes to meet the exigency of the country fo

1 Mr. Buxton fuggefted there fhould be exemptions in fam your of the landed interest for repairs, I

Mr. Calcraft opposed this fuggestion. He, as a landholder, could not object to the tax, however, hard it might Prefs upon him.....

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Ms. Rafe fuggefted that the exemptions should be extended, tb clergymen who did duty at feveral churches in the fame pirit, and were confequently obliged to keep a curate, Lord Hawkesbury faid, the evil of this bill, as well as of the former one, arpfe from the neceffity of exemptions. We thought a tax lower in amount, without any exemptions, would be more defirable for by adopting them a rule was aid down that must be arbitrary. Whether the line was 302 drawn

drawn at Iool. or 200l. it was obvious à cafe could be ftated, where a perfon with 100l. a year was, in fact, richer than ́ another with 200l. The lefs the exemptions were mul tiplied; the more defirable the tax would be. Agreeing with his right hon. friend as to extending the exemptions, he yet cautioned the Houfe againft carrying them further, except in cales of neceffity. If they did, they would have all the difficulties of the tax without their money's worth. It might be true that the cafe of a clergyman might bear hard, but there was no cafe with regard to which a grievance' might not exist. If they went into exemptions with too much minutenefs, they would have no ground to ftand upon. ·Mr. Kinnaird expreffed his fatisfaction at the Chancellor of the Exchequer having extended the exemptions.

Mr. Hurt faid, he was forry the Chancellor of the Exchequer had conceded. He was of opinion every man'in the country who had twenty fhillings ought to pay one filling to the State at the prefent crifis.

Mr. William Smith faid, that every thing which he had contended for was now granted. The principle, that difa ferent fpecies of property ought to be differently taxed, was recognized. He agreed very much with the noble Lord (Hawkesbury) that the property to be taxed once fixed, they ought to go from the higheft to the loweft without any abatement. doubung ( 59

Lord Archibald Hamilton faid, that by the gth article of the act of Union, Scotland was only to pay the land tax in the proportion of 50,000l. for that country, for every two millions which was paid by England. He moved an amendment to that purpose.

The Chancellor of the Exchequer contended, that this was hot a land tax fuch as was meant by the act in queftion, and therefore the noble Lord's argument fell to the ground.

Mr. Hobhoufe agreed with the Chancellor of the Exchequer, that in the prefent inftance all ought to pay in proportion to their circumstances. The circumftances of Scotland were changed fince the Union, and unless it could be fhewn that it could not pay, it ought to come forward with a fair and equal proportion. He oppofed the amend ment.!

Mr. Kinnaird maintained that this was a land tax, folfar) as it went, to levy five per cent. on the income arifing from land, and was therefore within the meaning of the act of Union. By that aet no difability to pay was required to be

proved,