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Mr. Goulburn's financial statement was made on the 8th of May, 1844. It comprised some small reductions of taxation, and the foretaste of an important modification of the sugar duties. As a money account it was encouraging, and showed some progress in diminishing the disastrous effects of Whig finance. The past financial year had witnessed a gross surplus of revenue over expenditure of more than 4,000,000; or, after paying the deficiency of the previous year, 2,400,000; and after making other deductions there was, for the first time for many years, an available surplus, amounting to 1,400,000. The anticipated good effects of relieving industry from burdensome taxes had been more than realised. The estimate of the revenue had actually been exceeded by 2,700,000. The Budget, therefore, fully justified the policy of 1842; but the Chancellor of the Exchequer ventured only on a small and timid extension of the principles then laid down, with the reduction or abolition of duty on flint-glass, currants, wool, and some other minor matters. The abolition of the wool duty provoked new hostility to the impolitic duty on cotton. The concession to Free Trade principles was small; but the movement was kept up, and there was at least no sign of reaction.The death of no English statesman had ever produced a deeper feeling of grief throughout the nation, or more general expressions of lamentation at the irreparable loss which the country had sustained. Mr. Hume had a motion on the paper for the day following his death; but instead of proceeding with it, he moved the adjournment of the House, which was agreed to unanimously. Mr. Gladstone paid an eloquent and touching tribute to his memory, concluding with the linesOne of the first acts of the Parliament, which met on November 12th, was to punish the peculations and abuses of the Lord Chancellor, Parker, Earl of Macclesfield. The Court of Chancery, in former ages a sink of corruption, was at this time in its worst condition. The offices of Masters were regularly sold, and the Masters as regularly took care to recoup themselves by all manner of peculation. The estates of widows and orphans and the money of suitors were unscrupulously plundered. There was a loud outcry against these robberies, and especially against the Lord Chancellor, for his not only tolerating but partaking in them. He endeavoured to escape the storm of public indignation by resigning in January, but this did not avail him. He was impeached by Sir George Oxenden in the Commons, and tried in the Lords, and fined thirty thousand pounds. A motion for disabling him from ever again sitting in Parliament or holding any office was lost only by a very few votes. The king struck his name out of the list of Privy Councillors, and in 1725 Sir Peter King was made Chancellor in his stead, with the title of baron.

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TWO:

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ONE:

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ONE:In this utter desertion, the king prevailed on Lord North, who was already Chancellor of the Exchequer, to accept Grafton's post of First Lord of the Treasury, with the Premiership. Lord North, eldest son of the Earl of Guildford, was a man of a remarkably mild and pleasant temper, of sound sense, and highly honourable character. He was ungainly in his person and plain of countenance, but he was well versed in the business of Parliament, and particularly dexterous in tagging to motions of the Opposition some paragraph or other which neutralised the whole, or turned it even against them. He was exceedingly near-sighted, so much so, that he once carried off the wig of the old Secretary of the Navy, who sat near him in the House. For the rest, he was of so somnolent a nature that he was frequently seen nodding in the House when Opposition members were pouring out all the vials of their wrath on his head. He thought himself a Whig, but if we are to class him by his principles and his acts of administration, we must pronounce him a Tory.[See larger version]

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ONE:[See larger version]

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ONE:[110][52]

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ONE:ELECTION MEETING IN IRELAND. (See p. 254.)

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ONE:

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TWO:From the 24th of September till the commencement of October Buonaparte continued to maintain himself at Dresden, though the Allies were fast gathering round him. Occasionally he made a rush from the city, and on one occasion pursued Blucher as far as Nollendorf, beyond Kulm; but these expeditions only served to exhaust his troops, without producing any effect on the enemy. As he chased one body on one side, others were closing up on other sides. Seeing that he could not remain long at Dresden, and that Bernadotte and Bülow had quitted the neighbourhood of Berlin, he suddenly conceived the design of marching rapidly on that city, and taking up his headquarters there; but this scheme met with universal disapprobation from his officers, and he was compelled to abandon it. He then continued for days, and even weeks, in a state of listless apathy, for hours together mechanically making large letters on sheets of paper, or debating some new schemes with his generals; but the only scheme to which they would listen was that of retreating to the left bank of the Rhine. In fact, they and the army were completely worn out and dispirited.

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THREE:On the day before her Majesty had desired to see Sir Robert Peel, to bid him farewell; but before he had set out for Windsor he had learnt the circumstances of the failure of the Whig leader to form a Cabinet; and as the result of his interview with the Queen he returned to London to resume the reins of Government. His position was greatly strengthened. Of his late Cabinet, Lord Stanley alone insisted on retiring, his place at the Board of Trade being filled by Mr. Gladstone. The baffled Whigs and the discontented monopolist party threatened a formidable combination; but, as regarded the Ministry itself, the change of policy was effected with far less sacrifice than might have been expected, considering all the circumstances of the case.
GIBRALTAR.O'Connell also wielded against the Government the fierce democracy of Roman Catholic Ireland. Sir Robert Peel had irritated him by some contemptuous remarks on his Repeal agitation, and he rose in his own defence, like a lion in his fury. He proceeded to give a description of the condition of Ireland, "which," said Mr. Brougham, "if not magnified in its proportions, if not painted in exaggerated colours, presents to my mind one of the most dismal, melancholy, and alarming conditions of society ever heard of or recorded in any State of the civilised world." Mr. O'Connell thus addressed the Treasury bench:"Tell the people of Ireland that you have no sympathy with their sufferings, that their advocate is greeted with sneers and laughter, that he is an outlaw in the land, and that he is taunted with want of courage, because he is afraid of offending his God. Tell them this, and let them hear also in what language the Secretary of State, who issued the proclamation to prevent meetings in Ireland, has spoken of Polignac." A powerful defence of his system of peaceful agitation, and a fierce defiance and denunciation of the existing Administration, closed this remarkable speech, whose effect upon the House, Mr. Roebuck said, was great and unexpected. Its effect upon the Roman Catholics of Ireland, it need not be added, was immense.SIR THOMAS PICTON.Before this, however, the financial statement for the year had been made, and for awhile the Corn Law question was suspended for the country to recover from its astonishment at finding in the Minister of the Conservative party one of the boldest reformers of our tariff who had ever occupied the Ministerial benches. But yesterday his position had appeared one of the greatest difficulty, in which a cautious hold upon the established sources of revenue, with some well-balanced proposals for additional taxes, was all that could be expected. He had not the good fortune of Mr. Goulburn or Lord Althorp in having a surplus to dispose of. The Whig Government had bequeathed to their successors a deficit, which had been increasing from year to year, with a revenue falling off even in the face of new taxes. How[488] was the deficit to be met was the question which filled the mouths of public men; a question which was answered by the famous financial statement of Sir Robert Peel on the 11th of March. After showing that the deficiency for the coming year would be little short of 2,500,000, and that this deficiency might be expected to be considerably augmented by the position of affairs in India and China, the Minister declared that he would not consent to resort to the miserable expedient of continual loans. He declared that he would not attempt to impose burdens upon the labouring classes, and that if he did, recent experience had shown that they would be defeated. In fact, the country had arrived at the limits of taxation upon articles of consumption. After ridiculing the various suggestions of people who were constantly sending him projects for taxes on pianofortes, umbrellas, and other articles, accompanied with claims of very large percentages upon the proceeds, he acknowledged the principle laid down by financiers that increased revenue may be obtained by taking off the taxes which pressed upon industry, but declared that the first effect was always a diminution in revenue, and that time was found necessary to restore the amount. In these circumstances, he stated what the measure was which, under a deep conviction of its necessity, he was prepared to propose, and which, he was persuaded, would benefit the country, not only in her pecuniary interests, but in her security and character. His scheme was this: he proposed, for a period to be limited, an income tax of not more than 3 per cent., from which he would exempt all incomes under 150, and in which he would include not only landed but funded property. Sir Robert Peel calculated that the tax would yield 3,350,000 a year, a sum which, with an addition to the spirit duties in Ireland, and an export duty of 4s. on coals, would not only cover the existing deficiency, but enable him to remit indirect taxes to the amount of 1,200,000. The sliding scale had brought little credit to the Minister, and the income tax was in its nature an unpopular measure; but the proposal to reduce the custom duties on 750 out of the 1,200 articles in the tariffto remove prohibitions altogether (in itself a vast concession to Free Trade doctrines)to reduce the duties on raw materials of manufactures to five per cent. or lessto keep the duties on articles partially manufactured under twelve per cent., and on articles wholly manufactured under twenty per cent., was a scheme which excited general admiration. The measure was, indeed, contested by the Whig Opposition at every stage. The preliminary resolutions were debated for eight nights. There were many of Sir Robert Peel's old supporters who looked on the financial plan with distrust, as being founded, in a great measure, avowedly on those principles of political economy which they had been accustomed to sneer at; but, in truth, it was not unfavourable to the interests of their party. We have already seen that the new taxat least, if a temporary onewas calculated to impose a far greater burden upon the manufacturing and moneyed class than upon the landowners; in fact, by exempting incomes under 150 a year, and assessing land only upon its net rental, the burden was imposed almost entirely upon that middle class which was the especial object of the dislike of Tories of the more advanced kind. At the same time, by cheapening articles of general consumption, the Minister did something towards securing popularity among the working classes, who, as exemplified in the Chartist agitation, were not always disposed to take part against the landowners. The Income Tax Bill passed, after considerable opposition in the Commons. An amendment proposed by Lord John Russell was rejected by a vote of 302 to 202, and another amendment, proposing the reading of the Bill on that day six months, having been thrown out on the 18th of April by a vote of 285 to 188, the third reading was carried by a majority of 130 on the 30th of May. No debate took place in the Lords until the third reading, when the Bill passed by a majority of 71.
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