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TWO: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 tariff��to 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 less��to 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 tax��at least, if a temporary one��was 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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TWO:With the Elizabeth the Young Pretender lost the greater part of his arms and ammunition. Yet he would not return, but set out in the Doutelle towards Scotland. In two days more the little vessel was pursued by another large English ship, but by dint of superior sailing they escaped, and made the Western Isles. It was only after a fortnight's voyage, however, that they came to anchor off the little islet of Erisca, between Barra and South Uist.But, notwithstanding these partial advantages, and though the duke and his army were enduring all the severities of a Highland winter, exposed to the cutting east winds on that inclement coast, and compelled to keep quarters for some time, Cumberland was steadily seizing every opportunity to enclose the Highlanders in his toils. His ships cut off all supplies coming by sea. They captured two vessels sent from France to their aid, on board of one of which they took the brother of the Duke of Berwick. The Hazard, a sloop which the Highlanders had seized and sent several times to France, was now pursued by an English cruiser, and driven ashore on the coast of Sutherland: on board her were a hundred and fifty men and officers, and ten thousand pounds in gold, which the clan Mackay, headed by Lord Reay, got possession of. This last blow, in addition to other vessels sent out to succour him being compelled to return to France, reduced Charles to the utmost[105] extremities. He had only five hundred louis-d'ors left in his chest, and he was obliged to pay his troops in meal, to their great suffering and discontent. Cumberland was, in fact, already conquering them by reducing them to mere feeble skeletons of men. The dry winds of March rendered the rivers fordable, and, as soon as it grew milder, he availed himself of this to coop the unhappy Highlanders up still more narrowly in their barren wilds, and stop all the passes into the Lowlands, by which they might obtain provisions. He himself lay at Aberdeen with strong outposts in all directions; Mordaunt at Old Meldrum, and Bland at Strathbogie. As soon as he received an abundance of provisions by a fleet of transports, along with Bligh's regiment, hearing that the Spey was fordable, on the 7th of April he issued orders to march, and the next day set forward himself from Aberdeen with Lord Kerr's dragoons and six regiments of foot, having the fleet still following along the shore with a gentle and fair wind. On reaching the Spey Lord John Drummond disputed their passage, having raised a battery to sweep the ford, and ranged his best marksmen along the shore. But the heavier artillery of the duke soon drove Lord John from the ground; he set fire to his barracks and huts, and left the ford open to the enemy, who soon got across. On Sunday, the 13th of April, the English advanced to Alves, and on the 14th reached Nairn. As the van, consisting of the Argyllshire men, some companies of Grenadiers, and Kingston's Light Horse, entered Nairn, the rear of Lord John Drummond had not quitted it, and there was skirmishing at the bridge. The Highlanders still retreated to a place called the Lochs of the Clans, about five miles beyond Nairn, where the prince came up with reinforcements, and, turning the flight, pursued the English back again to the main body of their army, which was encamped on the plain to the west of Nairn.

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TWO:A quarrel took place between Massena and Ney on the subject of attacking the British and Portuguese who invested Almeida, where was a French garrison, and Ney threw up his command, and retired to Salamanca. Massena was daily expecting the junction of Soult, who had taken Badajoz; but Wellington did not give time for this junction. He attacked Massena at Sabugal on the 3rd of April, and defeated him with heavy loss. Massena then continued his retreat for the frontier of Spain, and crossed the Agueda into that country on the 6th. Wellington then placed his army in cantonments between the Coa and the Agueda, and made more rigorous the blockade of Almeida.

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