FORE: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.Such a tremendous crash in the commercial world could not have occurred without involving the working classes in the deepest distress. In order fully to understand all that society has gained by the instruction of the people, by extending to them the blessings of education, and especially by the diffusion of useful knowledge through the medium of cheap literature, we have only to read the records of popular disturbance and destructive violence which occurred in 1825 and 1826. In the August of the former year there was a combination of seamen against the shipowners at Sunderland; and on one occasion there was a riot, when a mob of some hundreds flung the crew of a collier into the sea. They were rescued from drowning, but, the military having fired on the rioters, five persons were killed. Their funeral was made the occasion of a great popular demonstration. There was a procession with flags, and a band of singers, twelve hundred seamen walking hand in hand, each with crape round the left arm. In the Isle of Man the people rose against the tithing of their potatoes, and were quieted only by the assurance that the tithe would not be demanded of them, either that year or at any future time. In the spring of 1826 the operatives of Lancashire rose up in open war against the power-looms, the main cause of the marvellous prosperity that has since so largely contributed to the wealth of England. They believed that the power-looms were the cause of their distress, and in one day every power-loom in Blackburn, and within six miles of it, was smashed; the spinning machinery having been carefully preserved, though at one time the spinning jennies were as obnoxious as the power-looms. The work of destruction was not confined to one town or neighbourhood. The mob proceeded from town to town, wrecking mill after mill, seizing upon bread in the bakers' shops, and regaling themselves freely in public-houses. They paraded the streets in formidable numbers, armed with whatever weapons they could lay hands on��scythes, sledge-hammers, and long knives. They resisted the troops fiercely, showering upon them stones and other missiles. The troops, in their turn, fired upon the crowds, and when they were dispersed the streets were stained with blood, the mob carrying away their wounded into the fields. In one week no less than a thousand power-looms were destroyed, valued at thirty thousand pounds. In Manchester the mob broke the windows of the shops. At Carlisle, Norwich, Trowbridge, and other places in England, similar lawless proceedings occurred. Even in Glasgow the blame of the general distress was thrown upon the machinery, not only by the ignorant operatives, but by the gentry and the magistrates. In Dublin the silk-weavers marched through the streets, to exhibit their wretchedness. 100 GB$29/month