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.Mr. Walpole has summed up the character of George IV. in words alike of terrible conciseness and of unmitigating truth" He was a bad son, a bad husband, a bad father, a bad subject, a bad monarch, and a bad friend."
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.On the 26th of March the Marquis of Chandos made an attempt to obtain some relief for the agricultural interest, which was then in a very depressed state, and the measure he proposed was the abolition of the malt tax, which brought in the sum of 4,812,000. Sir Robert Peel prophesied that if this tax were abolished they would be in for a property tax. He said: "My prophecy is, that if you repeal this tax you will make an income tax necessary; to that, be assured, you must come at last, if you repeal the malt tax. You will lay your taxes on articles of general consumptionon tobacco, on spirits, on wineand you will meet with such a storm that will make you hastily recede from your first advances towards a substitute. To a property tax, then, you must come; and I congratulate you, gentlemen of the landed interest, on finding yourselves relieved from the pressure of the malt tax, and[382] falling on a good, comfortable property tax, with a proposal, probably, for a graduated scale. And you who represent the heavy land of this country, the clay soilsthe soils unfit for barleyI felicitate you on the prospect that lies before you. If you think that the substitute will be advantageous to your interests, be it so; but do notwhen hereafter you discover your mistakedo not lay the blame upon those who offered you a timely warning, and cautioned you against exchanging the light pressure of a malt duty for the scourge of a property tax." The motion was rejected by a majority of 350 to 192.The state of parties in the House of Commons at the opening of the Session of 1837 was so evenly balanced, that Government had a very narrow majority. The number of Whigs was calculated at 150, of Liberals 100, and of Radicals 80, making the total number of Ministerialists 330. On the other side, the Tories counted 139, the Ultra-Tories 100, and the Conservatives, belonging to the new school which Sir[414] Robert Peel had constituted, 80. Parliament was opened by commission on the last day of January. The Royal Speech announced the continuance of friendly relations with Foreign Powers, alluded to the affairs of Spain and Portugal, and directed the attention of Parliament to the state of Lower Canada. It recommended a renewal of the inquiry into the operation of joint-stock banks; also measures for the improvement of civil and criminal jurisprudence, and for giving increased stability to the Established Church. Special attention was directed to the state of Ireland, with reference to its municipal corporations and the collection of tithes, and to "the difficult and pressing question of a legal provision for the poor." Animated debates on the Address took place in both Houses. The Radicals, led on by Mr. Roebuck, strongly condemned the want of earnest purpose on the part of Ministers, whom he represented as "worse than the Tories." He accused them of pandering to popular passions on one side, and to patrician feelings on the other. But, situated as they were, what could they do? Their majority was small and uncertain in the Commons, while the Opposition in the Lords was powerful and determined. Lord Lyndhurst mutilated measure after measure, and then at the end of each Session taunted Ministers with their failure. They were trying to get on with a House of Commons elected under the influence of a Conservative Administration. Of course, Lord Melbourne could have dissolved Parliament and appealed to the country, in the hope of getting a working majority; but the king was decidedly averse from a dissolution; and it would have been an exceedingly unwise course to adopt, at a time when the precarious state of his health plainly indicated that the reign was fast drawing to a close, and its termination would necessitate another general election. It was unreasonable to expect that in consequence of weakness proceeding from such causes a Liberal Cabinet should surrender the reins of power to the Tory party, on the eve of a new reign, and with all the bright prospects that would be opened by the accession of a youthful queen to the Throne. At the close of the Session of 1836 they had, indeed, contemplated resignation, but eventually determined to go on.The condition of the Prussian camp was daily growing worse; the troops were compelled to kill their horses for food; they were drenched with heavy rains and decimated by dysentery. The King of Prussia and the Duke of Brunswick were full of resentment at the false representations of the Emigrants, who had assured them that they would have little to do but to march to Paris, loaded with the welcomes and supplies of the people. Europe was surprised at the easy repulse of the Prussians; with their reputation, it was expected that they would march rapidly on Paris, and disperse the Republican troops with scarcely an effort. But they were no longer commanded by old Frederick; and even he would have found it difficult to make his way through a country which refused the barest food for an army, and which almost to a man was in arms to resist the foe. On the 24th of September overtures were made by the Prussians for an exchange of prisoners, to which Dumouriez agreed, refusing, however, to give up a single Emigrant captive. This led to discussions on the general question, and having bargained for a safe retreat, the Allies hurried homeward with all speed. Oppressed by famine and disease, and disgusted with the Emigrants, who had led them to suffering and disgrace, they made the best of their way to the Rhine, and, at the end of October, reached Coblenz, a sorry spectacle, reduced from eighty thousand, who had entered France three months before confident of victory and fame, to fifty thousand humbled and emaciated men. If Dumouriez had had unity and subordination amongst his generals he would have been able by a forced march to outstrip the Allies, cut them off from the Rhine, and scarcely a thousand of them would have escaped. The blame thrown upon him for not thus inflicting a terrible chastisement appears unmerited.
