Nicholls' _History of the English Poor Law_, Mackay, ditto (a

continuation), and Fowle, _The Poor Law_, are general modern

descriptions. Webb, _English Poor Law Policy_, is an historical

criticism of the system from 1834; see also Kirkman Gray,

_Philanthropy and the State_. The eighteenth century is described in

Cunningham, _Growth of English Industry and Commerce, Modern Times_;

Webb, _English Local Government, The Parish and the County_; Redlich

and Hirst, _Local Government in England_, Vol. I; Hammond, _The

Village Labourer_, c. 7; Hasbach, _The English Agricultural

Labourer_, _c._ 3 and _c._ 4, and Mantoux, _La Révolution

Industrielle_. Ashby, _The Poor Law in a Warwickshire Village_ (in

Oxford Studies in Social and Legal History, Vol. III), provides

illustrations.

Bibliographies in Hasbach and Cunningham, _op. cit._

_Contemporary_ (1) _Documentary Sources_.--The best collection of

contemporary statistics, of paupers, diet, cost, etc., in the

eighteenth century is given in Eden, The State of the Poor. The

Report of the 1834 Commission (XXVII and XXVIII) describes conditions

and the new policy. See also Report of Committees on the Poor Law,

1817 (VI) and 1819 (III), and Report of Committee on Labourers'

Wages, 1824 (VI).

(2) _Literary authorities._--Illustrations of contemporary opinion

can be found for different periods in Defoe, Giving Alms no Charity,

Reports of the Society for Bettering the Condition of the Poor

(1795-1808), Rose, Observations on the Poor Law. A municipal system

is described in Cary, The Proceedings of the Corporation of Bristol.

A general survey was made in the middle of the eighteenth century by

Burn, History of the Poor Laws, and at the end by Eden, The State of

the Poor.

1. SETTLEMENT LAW [_Statutes_, 14 _Charles II_, _c._ 12], 1662.

An Act for the better relief of the poor of this kingdom.

Whereas the necessity, number and continual increase of the poor, not

only within the Cities of London and Westminster with the liberties of

each of them, but also through the whole kingdom of England and Dominion

of Wales, is very great and exceeding burdensome, being occasioned by

reason of some defects in the law concerning the settling of the poor

and for want of a due provision of the regulations of relief and

employment in such parishes or places where they are legally settled,

which doth enforce many to turn incorrigible rogues and others to perish

for want, together with the neglect of the faithful execution of such

laws and statutes as have formerly been made for the apprehending of

rogues and vagabonds and for the good of the poor. For remedy whereof

and for the preventing the perishing of any of the poor, whether old or

young, for want of such supplies as are necessary, may it please your

most Excellent Majesty that it may be enacted ... that whereas by

reason of some defects in the law poor people are not restrained from

going from one parish to another and therefore do endeavour to settle

themselves in those parishes where there is the best stock, the largest

commons or wastes to build cottages, and the most woods for them to burn

and destroy and when they have consumed it then to another parish, and

at last become rogues and vagabonds to the great discouragement of

parishes to provide stocks where it is liable to be devoured by

strangers ... it shall and may be lawful upon complaint made by the

churchwardens or overseers of the poor of any parish to any Justice of

Peace, within forty days after any such person or persons coming so to

settle, as aforesaid in any tenement under the yearly value of ten

pounds for any two justices of the peace whereof one to be of the Quorum

of the division where any person or persons that are likely to be

chargeable to the parish shall come to inhabit, by their warrant to

remove and convey such person or persons to such parish where he or they

were last legally settled either as a native householder sojourner

apprentice or servant for the space of forty days at the least unless he

or they give sufficient security for the discharge of the said parish to

be allowed by the said Justices.

[II. Appeal to Quarter Sessions.

III. Persons allowed to go for the Harvest into another parish if they

have a certificate of settlement in their original parish.

IV. Provision for setting up workhouses in London and within the Bills

of Mortality.]

[VI. and XXIII. The President and Governors of such workhouses may set

rogues and vagrants to work in the workhouse with the consent of the

Privy Council. Justices of the Peace may sentence disorderly persons and

"sturdy beggars" to transportation not exceeding seven years.

Persons allowed to go for the harvest into another parish if they have a

certificate of settlement in their original parish.

Provision made for setting up workhouses in London and within the Bills

of Mortality. The President and Governors of such workhouses may set

rogues and vagrants to work in the workhouse. Justices of the Peace may,

with the leave of the Privy Council, sentence disorderly persons and

"sturdy beggars" to transportation not exceeding seven years.][373]

[Footnote 373: Amended by 8 and 9 Wm. and Mary, 30. Persons with

certificates from churchwardens of their parishes, acknowledging them to

be inhabitants, not to be removed from any other parish till chargeable

and then to be chargeable in the parish where the certificates were

given. Any one receiving relief to wear a badge. Also by 35 Geo. III,

101. "No poor person shall be removed ... to the place of his or her

last legal settlement, until such person shall have become actually

chargeable to the parish."]

2. DEFOE'S PAMPHLET, "GIVING ALMS NO CHARITY" [_D. Defoe, Giving Alms no

Charity, etc._], 1704.

I humbly crave leave to lay these heads down as fundamental maxims,

which I am ready at any time to defend and make out.

1. There is in England more labour than hands to perform it, and

consequently a want of people, not of employment.

2. No man in England, of sound limbs and senses, can be poor merely for

want of work.

3. All our workhouses, corporations and charities for employing the

poor, and setting them to work, as now they are employed, or any Acts of

Parliament, to empower overseers of parishes, or parishes themselves, to

employ the poor, except as shall be hereafter excepted, are, and will be

public nuisances, mischiefs to the nation which serve to the ruin of

families and the increase of the poor.

4. That it is a regulation of the poor that is wanted in England, not a

setting them to work.

* * * * *

The poverty and exigence of the poor in England is plainly derived from

one of these two particular causes,

_Casualty or Crime._

By Casualty, I mean sickness of families, loss of limbs or sight, and

any, either natural or accidental, impotence as to labour.

The crimes of our people, and from whence their poverty derives, as the

visible and direct fountains are:

1. Luxury.

2. Sloth.

3. Pride.

This is so apparent in every place, that I think it needs no

explication; that English labouring people eat and drink, but especially

the latter, three times as much in value as any sort of foreigners of

the same dimensions in the world.

* * * * *

There is a general taint of slothfulness upon our poor, there is nothing

more frequent, than for an Englishman to work till he has got his pocket

full of money, and then go and be idle, or perhaps drunk, till it is all

gone, and perhaps he himself in debt; and ask him in his cups what he

intends, he will tell you honestly, he will drink as long as it lasts,

and then go to work for more.

3. THE WORKHOUSE TEST ACT [_Statutes_, 9 _Geo. I_ _c._ 7], 1722.

An Act for amending the laws relating to the settlement, employment and

relief of the poor.

IV. And for the greater ease of parishes in the relief of the poor, be

it further enacted by the authority aforesaid, that it shall and may be

lawful for the churchwardens and overseers of the poor in any parish,

town, township or place, with the consent of the major part of the

parishioners or inhabitants of the same parish, town, township or place,

in vestry, or other parish or public meeting for that purpose assembled,

or of so many of them as shall be so assembled, upon usual notice

thereof first given, to purchase or hire any house or houses in the same

parish, township or place, and to contract with any person or persons

for the lodging, keeping, maintaining and employing any or all such poor

in their respective parishes, townships or places, as shall desire to

receive relief or collection from the same parish, and there to keep,

maintain and employ all such poor persons, and take the benefit of the

work, labour and service of any such poor person or persons, who shall

be kept or maintained in any such house or houses, for the better

maintenance and relief of such poor person or persons, who shall be

there kept or maintained; and in case any poor person or persons of any

parish, town, township or place, where such house or houses shall be so

purchased or hired, shall refuse to be lodged, kept or maintained in

such house or houses, such poor person or persons so refusing shall be

put out of the book or books where the names of the persons who ought

to receive collection in the said parish, town, township or place, are

to be registered, and shall not be entitled to ask or receive collection

or relief from the churchwardens and overseers of the poor of the same

parish, town or township; and where any parish, town or township shall

be too small to purchase or hire such house or houses for the poor of

their own parish only, it shall and may be lawful for two or more such

parishes, towns or townships or places, with the consent of the major

part of the parishioners or inhabitants, and with the approbation of any

justice of peace dwelling in or near any such parish, town or place,

signified under his hand and seal, to unite in purchasing, hiring, or

taking such house, for the lodging, keeping and maintaining of the poor

of the several parishes, townships or places so uniting, and there to

keep, maintain and employ the poor of the parishes so uniting, and to

take and have the benefit of the work, labour or service of any poor

there kept and maintained, for the better maintenance and relief of the

poor there kept, maintained and employed; and that if any poor person or

persons in the respective parishes, townships or places so uniting,

shall refuse to be lodged, kept and maintained in the house, hired or

taken for such uniting parishes, townships or places, he, she or they so

refusing, shall be put out of the collection-book, where his, her or

their names were registered, and shall not be entitled to ask or demand

relief or collection from the churchwardens and overseers of the poor in

their respective parishes, townships or places; and that it shall and

may be lawful for the churchwardens and overseers of the poor, with the

consent of the major part of the parishioners or inhabitants, to

contract with the churchwardens and overseers of the poor of any other

parish, township or place, for the lodging, maintaining or employing, of

any poor person or persons of such other parish, township or place, as

to them shall seem meet; and in case any poor person or persons of such

other parish, township or place, shall refuse to be lodged, maintained

and employed in such house or houses, he, she or they so refusing, shall

be put out of the collection-book of such other parish, township or

place, where his, her or their names were registered, and shall not be

entitled to ask, demand or receive any relief or collection from the

churchwardens and overseers of the poor of his, her or their respective

parish, township or place: provided always, that no poor person or

persons, his, her or their apprentice, child or children, shall acquire

a settlement in the parish, town or place, to which he, she or they are

removed by virtue of this act. No person or persons shall be deemed,

adjudged or taken, to acquire or gain any settlement in any parish or

place, for or by virtue of any purchase of any estate or interest in

such parish or place, whereof the consideration for such purchase doth

not amount to the sum of thirty pounds, _bona fide_ paid, for any longer

or further time than such person or persons shall inhabit in such

estate, and shall then be liable to be removed to such parish or place,

where such person or persons were last legally settled, before the said

purchase and inhabitancy therein.

VI. No person or persons whatsoever, who shall be taxed, rated or

assessed to the scavenger or repairs of the highway, and shall duly pay

the same, shall be deemed or taken to have any legal settlement in any

city, parish, town or hamlet, for or by reason of his, her or their

paying to such scavenger's rate or repairs of the highway as aforesaid;

any law to the contrary in any wise notwithstanding.

4. GILBERT'S ACT [_Statutes_, 22 _George III_, _c._ 83], 1782.

An act for the better relief and employment of the poor.

Whereas notwithstanding the many laws now in being for the relief and

employment of the poor, and the great sums of money raised for those

purposes, their sufferings and distresses are nevertheless very

grievous; and, by the incapacity, negligence, or misconduct of

overseers, the money raised for the relief of the poor is frequently

misapplied, and sometimes expended in defraying the charges of

litigations about settlements indiscreetly and unadvisedly carried

on....

VII. And be it further enacted, that it shall and may be lawful for two

justices of the peace of the limit where such poor house shall be, or be

so agreed to be situated, and they are hereby required, as soon as

conveniently may be after such agreement shall have been made as

aforesaid, upon application to them by two or more of the persons who

shall have signed such agreement, and upon producing the same to them,

to appoint one of the persons so recommended to be guardian of the poor

for each of such parishes, townships, and places, in the form contained

in the said schedule, No. VII, or to that or the like effect; and every

such guardian shall attend the monthly meetings hereby directed to be

holden, and execute the several powers and authorities given to

guardians by this act, and shall have, and is hereby invested with, all

the powers and authorities given to overseers of the poor by any other

act or acts of parliament.

XVII. The guardians of the poor of the several parishes, townships and

places which shall adopt the provisions of this act, shall provide a

suitable and convenient house or houses, with proper buildings and

accommodations thereto, when wanted.

And, to render the provisions of this act more practicable and

beneficial, be it further enacted, that no person shall be sent to such

poor house or houses, except such as are become indigent by old age,

sickness, or infirmities, and are unable to acquire a maintenance by

their labour; and except such orphan children as shall be sent thither

by order of the guardian or guardians of the poor, with the approbation

of the visitor; and except such children as shall necessarily go with

their mothers thither for sustenance.

XXX. And, be it further enacted, that all infant children of tender

years, and who, from accident or misfortune, shall become chargeable to

the parish or place to which they belong, may either be sent to such

poor house as aforesaid, or be placed by the guardian or guardians of

the poor, with the approbation of the visitor, with some reputable

person or persons in or near the parish, township, or place, to which

they belong, at such weekly allowance as shall be agreed upon between

the parish officers and such person or persons with the approbation of

the visitor, until such child or children shall be of sufficient age to

be put into service, or bound apprentice to husbandry, or some trade or

occupation; and a list of the names of every child so placed out, and by

whom and where kept, shall be given to the visitor; who shall see that

they are properly treated, or cause them to be removed, and placed under

the care of some other person or persons, if he finds just cause so to

do; and when every such child shall attain such age, he or she shall be

so placed out, at the expense of the parish, township, or place, to

which he or she shall belong, according to the laws in being: provided

nevertheless, that if the parents or relations of any poor child sent

to such house, or so placed out as aforesaid, or any other responsible

person, shall desire to receive and provide for any such poor child or

children, and signify the same to the guardians at their monthly

meeting, the guardians shall, and are hereby required to dismiss, or

cause to be dismissed, such child or children from the poor-house, or

from the care of such person or persons as aforesaid, and deliver him,

her, or them, to the parent, relation, or other person so applying as

aforesaid: provided also, that nothing herein contained shall give any

power to separate any child or children, under the age of seven years,

from his, her, or their parent or parents, without the consent of such

parent or parents.

XXXI. And be it further enacted, that all idle or disorderly persons who

are able, but unwilling, to work or maintain themselves and their

families, shall be prosecuted by the guardians of the poor of the

several parishes, townships, and places, wherein they reside, and

punished in such manner as idle and disorderly persons are directed to

be by the statute made in the seventeenth year of the reign of his late

majesty King George the Second; and if any guardian shall neglect to

make complaint thereof, against every such person or persons, to some

neighbouring justice of the peace, within ten days after it shall come

to his knowledge, he shall, for every such neglect, forfeit a sum not

exceeding five pounds, nor less than twenty shillings, one moiety

whereof, when recovered, shall be paid to the informer, and the other

moiety to be disposed of as the other forfeitures are hereinafter

directed to be applied.

XXXII. And be it further enacted, that where there shall be, in any

parish, township, or place, any poor person or persons who shall be able

and willing to work, but who cannot get employment, it shall and may be

lawful for the guardian of the poor of such parish, township or place,

and he is hereby required, on application made to him by or on behalf of

such poor person, to agree for the labour of such poor person or

persons, at any work or employment suited to his or her strength and

capacity, in any parish, township or place, near the place of his or her

residence, and to maintain, or cause such person or persons to be

properly maintained, lodged, and provided for, until such employment

shall be procured, and during the time of such work, and to receive the

money to be earned by such work or labour, and apply it in such

maintenance, as far as the same will go, and make up the deficiency, if

any; and if the same shall happen to exceed the money expended in such

maintenance, to account for the surplus, which shall afterwards, within

one calendar month, be given to such poor person or persons who shall

have earned such money, if no further expenses shall be then incurred on

his or her account to exhaust the same. And in case such poor person or

persons shall refuse to work, or run away from such work or employment,

complaint shall be made thereof by the guardian to some justice or

justices of the peace in or near the said parish, township, or place;

who shall enquire into the same upon oath, and on conviction punish such

offender or offenders, by committing him, her, or them, to the house of

correction, there to be kept to hard labour for any time not exceeding

three calendar months, nor less than one calendar month.

XLI. And whereas it frequently happens that poor children, pregnant

women, or poor persons afflicted with sickness, or some bodily

infirmity, are enticed, taken, or conveyed by parish officers, or other

persons, from one parish or place to another, without any legal order of

removal, in order to ease the one parish or place, and to burden the

other with such poor person: for remedy thereof, be it further enacted,

that, when any guardian, or other person or persons, shall so entice,

take, convey, or remove, or cause or procure to be so enticed, taken,

conveyed, or removed, any such poor person or persons from one parish or

place to another, which shall adopt the provisions of this act, without

an order of removal from two justices of the peace for that purpose,

every person or persons so offending shall, for every such offence,

forfeit a sum not exceeding twenty pounds, nor less than five pounds.

5. SPEENHAMLAND "ACT OF PARLIAMENT" [_The Reading Mercury, May 11,

1795_], 1795.

Berkshire, to wit.

At a General Meeting of the Justices of this County, together with

several discreet persons assembled by public advertisement,[374] on

Wednesday the 6th day of May, 1795, at the Pelican Inn in Speenhamland

(in pursuance of an order of the last Court of General Quarter Sessions)

for the purpose of rating Husbandry Wages, by the day or week, if then

approved of, [names of those present]....

Resolved unanimously,

That the present state of the Poor does require further assistance than

has been generally given them.

Resolved,

That it is not expedient for the Magistrates to grant that assistance by

regulating the Wages of Day Labourers, according to the directions of

the Statutes of the 5th Elizabeth and 1st James: But the Magistrates

very earnestly recommend to the Farmers and others throughout the

county, to increase the pay of their Labourers in proportion to the

present price of provisions; and agreeable thereto, the Magistrates now

present, have unanimously resolved that they will, in their several

divisions, make the following calculations and allowances for relief of

all poor and industrious men and their families, who to the satisfaction

of the Justices of their Parish, shall endeavour (as far as they can)

for their own support and maintenance.

That is to say,

When the Gallon Loaf of Second Flour, weighing 8lb. 11ozs. shall cost

1s.

Then every poor and industrious man shall have for his own support 3s.

weekly, either produced by his own or his family's labour, or an

allowance from the poor rates, and for the support of his wife and every

other of his family, 1s. 6d.

When the Gallon Loaf shall cost 1s. 4d.

Then every poor and industrious man shall have 4s. weekly for his own,

and 1s. and 10d. for the support of every other of his family.

And so in proportion, as the price of bread rise or falls (that is to

say) 3d. to the man, and 1d. to every other of the family, on every 1d.

which the loaf rise above 1s.

By order of the Meeting,

W. BUDD, Deputy Clerk of the Peace.[375]

[Footnote 374: _Reading Mercury_, May 4, contained an advertisement of a

general meeting of justices "to limit, direct, and appoint the wages of

day labourers."]

[Footnote 375: Simultaneously the Magistrates published a recommendation

to overseers to grow potatoes, setting poor people to work and offering

them one-third or one-fourth of the crop, and to sell at 1s. a bushel;

also to get in a stock of peat, faggots, furze, etc., in the summer and

to sell at a loss in the winter.]

6. THE WORKHOUSE SYSTEM [_Eden, The State of the Poor, 1797, Vol. II,

pp. 168-9_], 1797.

_Stanhope (Durham)._

The poor have been farmed for many years: about fifteen years ago they

were farmed for 250l.; but the expense has gradually increased since

that period: the year before last, the expense was 495l., and last year

494l.; and the Contractor says that he shall lose 100l. by his last

bargain, and will not take the poor this year under 700l. Twenty-two

poor people are at present in the house, and 100 families receive weekly

relief out of it: these out-poor, the Contractor says, will cost him

450l. for the year ending at May-day next. The Poor-house was built

about fifteen years ago; it is, like most others in the hands of

contractors, in a dirty state.

_Preston (Lancashire)_[376].

The number of poor in the workhouse a few weeks ago, was as follows:--

Men 26

Women 39

Boys 47

Girls 40

---

Total 152

---

At present there are 158 or 159 in the house. The number of out-poor at

present is 70; they cost about 10l. a week.

The workhouse is built on a tolerable plan, but wants apartments for the

sick. There are 4 or 5 beds in a room: the bedsteads are made of iron,

and the beds are stuffed with chaff: white-washing and other means of

keeping the house clean, seem rather neglected. It is said that about 15

die in a year in the house. About 20 acres of land were inclosed from

the common, for the use of the house, for keeping cows horses, and pigs;

raising potatoes, etc.: this plot of ground is much improved by

cultivation. Nothing is manufactured for the use of the house. The boys

and girls are employed in weaving calicoes, till they are able to earn

their living elsewhere. Old women wind cotton; a few, who can work, are

employed in husbandry, gardening, and other occupations: no account of

their earnings could be obtained.

_St. Martin-in-the-Fields_ (_London_)[377].

The poor of this parish are partly relieved at home, and partly

maintained in the workhouse in Castle-street, Leicester Fields. There

are, at present, about 240 weekly out-pensioners, besides a considerable

number of poor on the casual list. Of 573, the number of poor at present

in the workhouse, 473 are adults and 100 children; of which 54 are boys,

21 girls, able to work, and 25 infants. Their principal employment is

spinning flax, picking hair, carding wool, etc.; their annual earnings,

on an average of a few years past, amount to about £150. It was once

attempted to establish a manufacture in the house; but the badness of

the situation for business, the want of room for workshops, and the

difficulty of compelling the able poor to pay proper attention to work,

rendered the project unsuccessful. Between 70 and 80 children belonging

to this parish are, generally, out at nurse in the country: a weekly

allowance of 3s. (lately advanced to 3s. 6d.) is paid with each child.

At 7 or 8 years of age, the children are taken into the house, and

taught a little reading, etc., for three or four years, and then put out

apprentices.

_Bulcamp_ (_Suffolk_)[378].

The poor of 46 incorporated parishes in the hundred of Blything, are

maintained in a house of industry, which is situated on an eminence in

the parish of Bulcamp. The expense of erection was 12,000l.; the house

was opened for the reception of the poor in October, 1766. The whole

annual sum, to be paid by the parishes (which was fixed at the average

of seven years' expenditure, previous to their incorporation), was

3,084l. 12s. 8d.; in 1780 half the debt was paid off, and the rates

reduced one-eighth, or to 2,699l. 1s. 1d.; in June, 1791, the whole debt

was discharged. The rates have been continued at the reduced sum of

2,699l. 1s. 1d. In 1793, the corporation found it necessary to apply to

Parliament for farther powers, relative to the binding out poor children

apprentices, which cost 350l. 15s.

The work done in this house is chiefly spinning for the Norwich

manufacture: clothes and bedding, etc., for the house, are also made at

home. The following were the last week's earnings: an account of the

annual earnings could not be procured; but it appears that they have

been about 8l. a week, or 400l. a year, for several weeks past.

Worsted spinners 4l. 3s. 1-3/4d.

Tow spinners 1l. 12s. 1d.

Sempstresses 0l. 7s. 3d.

Tailors 0l. 9s. 0d.

Knitters 0l. 8s. 0d.

Weavers 0l. 7s. 0d.

Shoemakers 0l. 16s. 0d.

-----------------

Total earnings for one week 8l. 2s. 5-3/4d.

-----------------

Number of paupers in the house in June, in each of the following years

(the average number in the year must, probably, be more), and Table of

Mortality:--

Years. No. of Persons. Deaths.

1782 297 87

1783 298 69

1784 265 76

1785 295 82

1786 143 70

1787 256 67

1788 290 52

1789 207 37

1790 192 18

1791 235 34

1792 243 9

1793 260 23

1794 270 37

--------

Average of 13 years 50-11/13

--------

The number at present in the house is 40 men, 60 women, and 255

children: total 355.

The house is very roomy and convenient. The beds are chiefly of

feathers: the dormitories and other rooms are kept very clean. More

work is done now than formerly; but owing to lowness of wages, the

receipts have decreased.

The number of deaths is very great, and, I presume, rather arises from

the number of old persons admitted into the house than from any

inattention towards the sick.

[Footnote 376: _Ibid._, p. 368.]

[Footnote 377: _Ibid._, p. 440]

[Footnote 378: _Ibid._, p. 678.]

7. TWO VARIETIES OF THE ROUNDSMAN SYSTEM OF RELIEF [_Eden, The State of

the Poor, 1797, Vol. II, p. 29 and p. 384_], 1797.

(_a_) _Winslow_ (_Buckinghamshire_)

There seems to be a great want of employment: most of the labourers are

(as it is termed), on the Rounds; that is, they go to work from one

house to another round the parish. In winter sometimes 40 persons are on

the rounds. They are wholly paid by the parish, unless the householders

choose to employ them; and from these circumstances, labourers often

become very lazy, and imperious. Children, above ten years old, are put

on the rounds, and receive from the parish from 1s. 6d. to 3s. a week.

(_b_) _Kibworth Beauchamp_ (Leicestershire)[379].

In the winter, and at other times, when a man is out of work, he applies

to the overseer, who sends him from house to house, to get employ: the

housekeeper, who employs him, is obliged to give him victuals, and 6d. a

day; and the parish adds 4d. (total, 10d. a day) for the support of his

family; persons working in this manner are called rounds-men, from their

going round the village or township for employ.

[Footnote 379: Eden, _The State of the Poor_, Vol. II, p. 384.]

8. ANOTHER EXAMPLE OF THE ROUNDSMAN SYSTEM [_Thomas Batchelor, The

Agriculture of Bedfordshire (Agricultural Surveys), 1808, pp. 608-9_],

1808.

_Bedfordshire._

The increase of population has caused a deficiency of employment, which

is so remarkable in some seasons, that a great proportion of the

labourers "go the rounds." This practice is not modern; but as it is not

supposed to be sanctioned by law, it may be proper to describe the

nature of it, and its general consequences. When a labourer can obtain

no employment he applies to the acting overseer, from whom he passes on

to the different farmers all round the parish, being employed by each of

them after the rate of one day for every 20l. rent. The allowance to a

labourer on the rounds, is commonly 2d. per day below the pay of other

labourers, which is found to be a necessary check upon those who love

liberty better than labour. Boys receive from 4d. to 6d. per day on the

rounds, the whole of which is often repaid to the farmers by the

overseers. About half the pay of the men is returned in the same manner,

and the farmers often receive in this way the amount of from 2d. to 4d.

in the pound rent, which consequently causes the apparent expense of the

poor to exceed the truth. The practice in question has a very bad effect

on the industry of the poor: they are often employed in trivial

business; the boys in particular are of little use in the winter season.

The men are careful not to earn more than they receive, and seem to

think it the safer extreme to perform too little rather than too much.

9. REPORT OF THE POOR LAW COMMISSION [_Report from Commission on the

Poor Laws, 1834 (XXVII), pp. 297, 228, 47, 261-262, 306-307_], 1834.

We recommend, therefore, the appointment of a Central Board to control

the administration of the Poor Laws; with such assistant Commissioners

as may be found requisite; and that the Commissioners be empowered and

directed to frame and enforce regulations for the government of

workhouses, and as to the nature and amount of the relief to be given

and the labour to be exacted in them, and that such regulations shall,

as far as may be practicable, be uniform throughout the country.

* * * * *

It may be assumed that in the administration of relief, the public is

warranted in imposing such conditions on the individual relieved, as are

conducive to the benefit either of the individual himself, or of the

country at large, at whose expense he is to be relieved.[380]

The first and most essential of all conditions, a principle which we

find universally admitted, even by those whose practice is at variance

with it, is that his situation on the whole shall not be made really or

apparently so eligible as the situation of the independent labourer of

the lowest class. Throughout the evidence it is shown, that in

proportion as the condition of any pauper is elevated above the

condition of independent labourers, the condition of the independent

class is depressed; their industry is impaired, their employment becomes

unsteady, and its remuneration in wages is diminished. Such persons,

therefore, are under the strongest inducements to quit the less eligible

class of labourers and enter the more eligible class of paupers. The

converse is the effect when the pauper class is placed in its proper

position, below the condition of the independent labourer. Every penny

bestowed, that tends to render the condition of the paupers more

eligible than that of the independent labourer, is a bounty on indolence

and vice. We have found, that as the poor's rates are at present

administered, they operate as bounties of this description to the amount

of several millions annually.

* * * * *

Another evil connected with out-door relief, and arising from its

undefined character, is the natural tendency to award to the deserving

more than is necessary, or where more than necessary relief is afforded

to all, to distinguish the deserving by extra allowances.[381] ... The

whole evidence shows the danger of such an attempt. It appears that such

endeavours to constitute the distributors of relief into a tribunal for

the reward of merit, out of the property of others, have not only failed

in effecting the benevolent intentions of their promoters, but have

become sources of fraud on the part of the distributors, and of

discontent and violence on the part of the claimants.

* * * * *

The chief specific measures which we recommend are:[382]--

First, that except as to medical attendance, and subject to the

exception respecting apprenticeship hereinafter stated, all relief

whatever to able-bodied persons or to their families, otherwise than in

well-regulated workhouses (_i.e._, places where they may be set to work

according to the spirit and intention of the 43rd of Elizabeth), shall

be declared unlawful, and shall cease, in manner and at periods

hereafter specified; and that all relief afforded in respect of

children under the age of 16, shall be considered as afforded to their

parents.

At least four classes are necessary:[383]--(1) The aged and really

impotent; (2) The children; (3) The able-bodied females; (4) The

able-bodied males. Of whom we trust that the two latter will be the

least numerous classes. It appears to us that both the requisite

classification and the requisite superintendence may be better obtained

in separate buildings than under a single roof.... Each class might thus

receive an appropriate treatment; the old might enjoy their indulgences

without torment from the boisterous; the children be educated, and the

able-bodied subjected to such courses of labour and discipline as will

repel the indolent and vicious.

[Footnote 380: _Ibid._, p. 228.]

[Footnote 381: _Ibid._, p. 47.]

[Footnote 382: _Ibid._, pp. 261-2.]

[Footnote 383: p. 306-7.]

10. THE POOR LAW AMENDMENT ACT [_Statutes, 4 and 5 Wm. IV, 76_], 1834.

An Act for the Amendment and better Administration of the Laws relating

to the Poor in England and Wales.

Whereas it is expedient to alter and amend the Laws relating to the

Relief of poor Persons in England and Wales: Be it therefore enacted ...

that it shall be lawful for His Majesty, His Heirs and Successors, by

Warrant under the Royal Sign Manual, to appoint three fit persons to be

Commissioners to carry this Act into execution....

XV. And be it further enacted, ... for executing the powers given to

them by this Act the said Commissioners shall and are hereby authorized

and required, from time to time as they shall see occasion, to make and

issue all such rules, orders, and regulations for the management of the

poor, for the government of workhouses and the education of the children

therein, and for the management of parish poor children under the

provisions of an Act made and passed in the seventh year of the reign of

His late Majesty King George the Third, intituled _An Act for the better

Regulation of Parish poor Children of the several Parishes therein

mentioned within the Bills of Mortality_, and the superintending,

inspecting, and regulating of the Houses wherein such poor children are

kept and maintained, and for the apprenticing the children of poor

persons, and for the guidance and control of all Guardians, Vestries,

and Parish officers, so far as relates to the management or relief of

the poor, and the keeping, examining, auditing, and allowing of

accounts, and making and entering into contracts in all matters relating

to such management or relief, or to any expenditure for the relief of

the poor, and for carrying this Act into execution in all other

respects, as they shall think proper; and the said Commissioners may, at

their discretion, from time to time suspend, alter, or rescind such

rules, orders, and regulations, or any of them: provided always that

nothing in this Act contained shall be construed as enabling the said

commissioners or any of them to interfere in any individual case for the

purpose of ordering relief.

XXVI. And be it further enacted, that it shall be lawful for the said

commissioners, by order under their hands and seal, to declare so many

parishes as they may think fit to be united for the administration of

the laws for the relief of the poor, and such parishes shall thereupon

be deemed a Union for such purpose, ... but, notwithstanding ... each of

the said parishes shall be separately chargeable with and liable to

defray the expense of its own poor, whether relieved in or out of any

such workhouse.

XXXVIII. And be it further enacted, that where any parishes shall be

united by order or with concurrence of the said commissioners for the

administration of the laws for the relief of the poor, a Board of

Guardians of the poor for such Union shall be constituted and chosen,

and the workhouse or workhouses of such Union shall be governed, and the

relief of the poor in such Union shall be administered, by such Board of

Guardians; and the said Guardians shall be elected by the ratepayers,

and by such owners of property in the parishes forming such Union as

shall in manner hereinafter mentioned require to have their names

entered as entitled to vote as owners in the books of such parishes

respectively.

11. OUTDOOR RELIEF PROHIBITORY ORDER [_11th Annual Report of the Poor

Law Commissioners, pp. 29-33_], 1844.

_Amended General Orders._--_Regulating the Belief of Able-Bodied Poor

Persons._

1. Every able-bodied person, male or female, requiring relief from any

parish within any of the said Unions, shall be relieved wholly in the

workhouse of the Union, together with such of the family of every such

able-bodied person as may be resident with him or her, and they not be

in employment, and together with the wife of every such able-bodied male

person, if he be a married man, and if she be resident with him; save

and except in the following cases:--

1st. Where such person shall require relief on account of sudden and

urgent necessity.

2nd. Where such person shall require relief on account of any sickness,

accident, or bodily or mental infirmity affecting such person, or any of

his or her family.

* * * * *

4th. Where such person, being a widow, shall be in the first six months

of her widowhood.

5th. Where such person shall be a widow, and have a legitimate child or

legitimate children dependent upon her, and incapable of earning his,

her, or their livelihood, and have no illegitimate child born after the

commencement of her widowhood.

* * * * *

7th. Where such person shall be the wife, or child, of any able-bodied

man who shall be in the service of Her Majesty as soldier, sailor, or

marine.

* * * * *

Given under our hands and Seal of Office, this 21st day of December, in

the year of our Lord 1 thousand 8 hundred and 44.

(Signed) GEO. NICHOLLS.

G.C. LEWIS.

EDWARD W. HEAD.

SECTION VI

FINANCE AND FOREIGN TRADE

1. Act abolishing Tenure by Knight Service, etc., 1660--2. Navigation

Act, 1660--3. Proposals for Free Export of Gold and Silver, 1660--4.

An Attack on the Navigation Acts, c. 1663--5. Free Coinage at the

Mint Proclaimed, 1666--6. The East India Company and the Interlopers,

1684--7. Foundation of the Bank of England, 1694--8. The Need for the

Recoinage of 1696--9. Speech by Sir Robert Walpole on the Salt

Duties, 1732--10. Pitt's Sinking Fund Act, 1786--11. The Suspension

of Cash Payments, 1797--12. Pitt's Speech on the Income Tax,

1798--13. Foreign Trade in the early Nineteenth Century, 1812--14.

Debate on the Corn Law, 1815--15. The Corn Law of 1815--16. Free

Trade Petition, 1820--17. The Foundation of the Anti-Corn-Law League,

1839--18. The Bank Charter Act, 1844--19. Debate on the Corn Laws,

1846.

This section illustrates various departments of Government policy:

taxation and revenue (Nos. 1, 9 and 12), public debts (Nos. 7 and 10),

fiscal and trade policy (Nos. 1, 2, 4, 6, 13-17, 19), the coinage (Nos.

3, 5 and 8), and the national Bank (Nos. 7, 11, and 18). The specimens

of revenue policy begin with the Act by which Charles II abandoned

feudal dues in exchange for a general and hereditary excise (No. 1). The

principle involved in this transaction may be compared with Sir Robert

Walpole's remarks on the question of justice in taxation (No. 9) and

with Pitt's speech on introducing the Income Tax in 1798, which also

gives a survey of the whole financial position and a defence of the

policy of paying for wars out of hand (No. 12). The opposite policy, of

war-loans, had been adopted earlier, and the French wars of the

seventeenth and eighteenth centuries established the funding system. An

outline is given of the Sinking Fund by which it was supposed that this

national liability could be reduced while it was being created (No.

10). The foundation of the Bank of England (No. 7) was an important step

in the policy of national loans as well as an encouragement to the

growth of capital and capitalist industry. The French wars at the end of

the eighteenth century produced a crisis in the management of the Bank's

reserve; an official report explains the causes of the panic which led

to the suspension of cash payments and also shows the deliberate policy

by which the suspension was continued till 1819 (No. 11). This was the

first controversy of great importance on the subject of currency since

the seventeenth century, when the government of Charles II had adopted

the policy of allowing free export and free coinage of Gold and Silver

(Nos. 3 and 5). The gradual deterioration of the coinage which led to

the recoinage of 1696 is illustrated by a contemporary description (No.

8). The Bank Charter Act (No. 18) shows the financial aspect of rapid

national expansion in the nineteenth century and the method adopted to

give stability to credit by limiting the issue of unsupported paper

currency, in the period before the triumph of the cheque system.

The Navigation Act of Charles the second's reign (No. 2) formed part of

a system by which the State set itself to encourage particular

industries and took a part in the struggle for commercial leadership.

(See also Nos. 4 and 6.) The complications of this policy with

considerations of revenue and particular interests rapidly increased,

while the manufacturing export trade became more important (No. 13). A

reaction led by the Economists had begun in the latter part of the

eighteenth century. In the nineteenth century the battle raged over the

special protection successfully claimed by the Agricultural Interest in

the depression at the end of the Napoleonic wars (No. 15). The debates

and petitions (No. 14, No. 16, No. 19) bristle with the new Political

Economy. They also give an indication of the new social class created by

the Industrial Revolution and of the struggle of the landowners with the

North of England manufacturers who founded and financed the

Anti-Corn-Law League, the most successful of all political associations

for an economic object (No. 17).

AUTHORITIES

The most important modern authorities on taxation and finance are:

Dowell, _History of Taxation and Taxes_; Seligman, _The Income Tax_;

Kennedy, _English Taxation_,1640-1799: on currency and banking, Shaw,

_History of the Currency_; Andréadés, _History of the Bank of

England_; Thorold Rogers, _The First Nine Years of the Bank of

England_; Bagehot, _Lombard Street_: on commercial and fiscal policy;

Day, _History of Commerce_; Levi, _History of British Commerce_;

Hewins, _English Trade and Finance_; Beer, _The Old Colonial System_

and _British Colonial Policy_; Hertz, _The Old Colonial System_;

Ashley, _Surveys_; Cunningham, _Growth of English Industry and

Commerce, Modern Times_, and _Rise and Decline of the Free Trade

Movement_; Bruce, _Annals of the East India Company_; Holland, _The

Fall of Protection_; Morley, _Life of Cobden_; Trevelyan, _Life of

Bright_; Nicholson, _The English Corn Laws_. Smart, _Economic Annals

of the Nineteenth Century_, analyses economic debates, legislation

and conditions in the early nineteenth century.

Bibliographies in Cunningham, _op. cit._, Day _op. cit._, Cambridge

Modern History, Vols. VI and X, and Grant Robertson, _England Under

the Hanoverians_.

_Contemporary._--Parliamentary Paper, XXXV, 1869, gives a summary of

public revenue and expenditure, 1688-1869. Important documents for

financial history are contained in the seventeenth century Treasury

Papers (ed. Shaw). The Advice of the Council of Trade on the

Exportation of Gold and Silver, 1660, is in McCulloch's Collection of

Tracts on Money. The official history of the suspension of cash

payments is in the Reports of Committees on the Restriction in

Payments, 1797 (XI), on the High Price of Gold, 1810 (III), and on

Cash Payments, 1819 (III).

A collection of literary authorities on monetary questions was made

by McCulloch, "A Select Collection of Scarce and Valuable Tracts on

Money"; it includes Petty's Quantulumcunque, Isaac Newton's

Representations, etc. For contemporary opinion on taxation and

finance, see Petty, Taxes and Taxation Price; Observations on

Reversionary Payments, and The State of the Public Debts; Smith, The

Wealth of Nations, and the Speeches of Pitt (Everyman Series), and of

Cobden (edited Bright and Rogers). For foreign commerce consult The

Diary and Consultation Book of Fort St. George (ed. Pringle), and

Reports of Commons Committee on Orders in Council, 1812, together

with the pamphlet literature on Colonial policy (see Cunningham _op.

cit._ and McCulloch's Select Collection of Tracts on Commerce).

1. ACT ABOLISHING TENURE BY KNIGHT SERVICE, ETC. [_Statutes, 12 Charles

II, 24_], 1660.

It is hereby enacted that the Court of Wards and Liveries and all

Wardships, Liveries, Primer-Seizins, and Ouster-le-mains, values, and

forfeitures of marriages by reason of any tenure of the King's majesty

or of any other knight's service, and all mean rates and all other

gifts, grants, charges incident or arising for or by reason of wardships

[etc.], be taken away and discharged. And that all fines for alienation,

seizures, and pardons for alienations, tenure by homage [etc.], also

Aide pur file marrier et pur farer fitz chivalier, and all other charges

incident thereunto, be likewise taken away and discharged, as from

February 24, 1645. And that all tenures by knight's service of the King,

or of any other person and by knight service in capite, and by socage in

capite of the King, and the fruits and consequents thereof--be taken

away and discharged.

And all tenures of any Honours, manors, lands, tenements, or

hereditaments of any estate of inheritance at the common law, held

either of the King or of any other person or persons, bodies politic or

corporate are hereby enacted to be turned into free and common socage to

all intents and purposes.

[Purveyance and Pre-emption abolished.]

XIV. And now to the intent and purpose that his Majesty, his heirs and

successors, may receive a full and ample recompence--there shall be paid

unto the King's majesty his heirs and successors forever hereafter in

recompence as aforesaid the several rates [etc.] following:--

[1s. 3d. a barrel of beer sold above 6s. a barrel.

3d. a barrel of beer sold at 6s. or below 6s. a barrel.

2d. a gallon of spirits imported.

3s. a barrel of beer imported.

1d. a gallon of aqua-vitae, etc.]

2. NAVIGATION ACT [_Statutes, 12 Chas. II, 18_], 1660.

An Act for the encouraging and increasing of shipping and navigation.

For the increase of shipping and encouragement of the navigation of this

nation wherein, under the good providence and protection of God, the

wealth, safety and strength of this kingdom is so much concerned; be it

enacted by the King's most excellent majesty, and by the lords and

commons in this present parliament assembled, and by the authority

thereof, that from and after the first day of December one thousand six

hundred and sixty, and from thenceforward, no goods or commodities

whatsoever shall be imported into or exported out of any lands, islands,

plantations or territories to his Majesty belonging or in his

possession, or which may hereafter belong unto or be in the possession

of his Majesty, his heirs and successors, in Asia, Africa or America, in

any other ship or ships, vessel or vessels whatsoever, but in such ships

or vessels as do truly and without fraud belong only to the people of

England or Ireland, dominion of Wales or town of Berwick-upon-Tweed, or

are of the built of and belonging to any the said lands, islands,

plantations or territories, as the proprietors and right owners thereof,

and whereof the master and three-fourths of the mariners at least are

English.

And it is further enacted by the authority aforesaid, that no goods or

commodities that are of foreign growth, production or manufacture, and

which are brought into England, Ireland, Wales, the islands of Guernsey

and Jersey, or town of Berwick-upon-Tweed, in English-built shipping, or

other shipping belonging to some of the aforesaid places, and navigated

by English mariners, as aforesaid, shall be shipped or brought from any

other place or places, country or countries, but only from those of the

said growth, production or manufacture, or from those ports where the

said goods and commodities can only, or are, or usually have been, first

shipped for transportation, and from none other places or countries.

3. PROPOSALS FOR FREE EXPORTATION OF GOLD AND SILVER [_McCulloch, Tracts

on Money,1856, pp. 145_], 1660.

Advice of his Majesty's Council of Trade, concerning the Exportation of

Gold and Silver in Foreign Coins and Bullion.

[Concluded Dec. 11, 1660.]

... Supposing that it were of absolute necessity to restrain all money

and bullion, once imported, to be kept within this kingdom. It then came

under consideration whether either the laws hitherto made in that behalf

are, or that it be possible to make a law, adequate to prevent the

exportation thereof.

And here we were convinced, by experience, that the laws of this kingdom

(hitherto made) have been of no effect to the end thereby designed; and

looking abroad, as there are nowhere more strict and severe laws against

the exportation of coin and bullion than in Spain and France, we found

all to be to as little purpose.

We then, thirdly, enquired what loadstone attracted this metal by force

of nature to itself, against all human providence or prevention; and

soon found that it was alone the present course of trade and traffic

throughout the world....

And therefore, in the fourth place, we discovered that, as it is

impossible by any laws to restrain money and bullion against the use

that traffic finds for the same; so also the adhering to this principle

of restraining thereof discourageth, as well all natives as foreigners,

to import any money or bullion--where the exportation thereof is

forbidden them.

From whence, fifthly, the many advantages (thereby given away clearly to

the stranger from the English) present themselves; for the stranger,

knowing we must be furnished in one of these places for our occasions,

make us pay dearly for our accommodation.

So that, to wind up all that has been said, the result of the several

reasons and arguments herein summed up seemed to be this: that time and

experience instruct, and the present state of traffic throughout the

world require, that, for the increase of the stock of money in these

your Majesty's kingdoms, some way of liberty for the exportation, at

least of foreign coin and bullion, should be found out, and put in

execution; which hath produced the humble advice offered in the

preceding paper.

4. AN ATTACK ON THE NAVIGATION ACT[384] [_P.R.O. Colonial Papers, Vol.

XXXVI, No. 88_], _c._ 1663.

_To the King's Most Excellent Majesty._

_The Humble Remonstrance_ of John Bland, of London, Merchant, on the

behalf of the Inhabitants and Planters of Virginia and Maryland.

Most humbly representing unto your Majesty the inevitable destruction of

these colonies, if so be that the late Act for increase of trade and

shipping be not as to them dispensed with; for it will not only ruinate

the inhabitants and planters, but make desolate the largest, fertilist,

and most glorious plantations under Your Majesty's Dominion; the which,

if otherwise suspended, will produce the greatest advantage to this

nation's commerce and considerablest income to Your Majesty's revenue,

that any part of the world doth to which we trade. [Rejoinder to

argument that the Dutch prohibit English trade with their Indian

Dominions. The American colonies are in need of customers. Why should

the Dutch be prevented from dealing with them?]

Virginia and Maryland are colonies, which though capable of better

commodities, yet for the present afford only these, tobacco chiefly,

then in the next place corn and cattle, commodities almost in every

country whatever to be had; withal they are such commodities, that

except purchased in these plantations so cheap as not elsewhere so to be

had, none would ever go thither to fetch them, no, not we ourselves.

Which being so, then certainly it cannot stand with wisdom to hinder the

Hollanders from going thither.

Then again, if you keep thence the Hollanders, can it be believed that

from England more ships will be sent than are able to bring thence what

tobacco England will spend? If they do bring more, must they not lose

both stock and block, principal and charges?...

A further prejudice doth evidently attend the commerce by this Act, not

only in debarring Hollanders from trading to these colonies, but thereby

we do likewise debar ourselves; for, by the Act, no English ships can

load any goods in Virginia and Maryland to transport to any country but

our own territories.... I demand then, if it would not be better to let

our English ships, loading in those colonies, to go whither they please,

and pay in the places where they do trade (if it will not be dispensed

with otherwise), the same customs to your Majesty as they should have

done in England, or give bills from thence to pay it in England?

Certainly this would be more beneficial to the commerce, and security

both for the ships and goods, and advantageous to your Majesty; for

whilst they are coming to England they might be at the end of their

intended voyages and obtain a market, which haply in England could not

be had....

If that notwithstanding what is by the foregoing particulars declared,

it may seem reasonable that the Act shall stand in force.... Then let me

on behalf of the said colonies of Virginia and Maryland make these

following proposals which I hope will appear but equitable; and I dare

undertake for them, that they will be very well satisfied, that those

few tobacconists that have engrossed that trade into their hands, shall

still continue in it without moving further against them therein.

First, that the traders to Virginia and Maryland from England shall

furnish and supply the planters and inhabitants of these colonies with

all sorts of commodities and necessaries which they may want or desire,

at as cheap rates and prices as the Hollanders used to have when the

Hollander was admitted to trade hither.

Secondly, that the said traders out of England to these colonies shall

not only buy of the planters such tobacco in the colonies as is fit for

England, but take off all that shall be yearly made by them, at as good

rates and prices as the Hollanders used to give....

By way of accommodation this I propose. Let all Hollanders and other

nations whatsoever freely trade into Virginia and Maryland, and bring

thither and carry thence whatever they please, and to counterpoise the

cheapness of their sailing, with dearness of our ships, to pay a set

duty and imposition that may countervail the same; and when what they

paid formerly will not do it, let it be doubled and trebled, as shall be

thought meet, yet still with this caution, that it may not make it as

bad as if they were totally prohibited.

In the next place, that all English ships that do go thither to trade,

and carry goods to any other country besides England, may be freed of

any custom there, more than some certain duty to the use of the

colonies....

[Footnote 384: Quoted in _The Virginia Magazine of History and

Biography_, Vol. I, pp. 142-145.]

5. FREE COINAGE OF BULLION AT THE MINT PROCLAIMED [_Statutes, 18 Chas._

II, 5], 1666.

Whereas it is most obvious that the plenty of current coins of gold and

silver of this kingdom is of great advantage to trade and commerce ...

be it enacted ... that whatsoever person or persons, native or

foreigner, alien or stranger, shall from and after the twentieth day of

December one thousand six hundred sixty and six, bring in any foreign

coin, plate or bullion of gold or silver, in mass, molten or alloyed, or

any sort of manufacture of gold or silver, into his Majesty's mint or

mints within the kingdom of England, to be there melted down and coined

into the current coins of this kingdom, shall have the same there

assayed, melted down and coined with all convenient speed, without any

defalcation, diminution or charge for the assaying, coinage or waste in

coinage: so as that for every pound troy of crown or standard gold that

shall be brought in and delivered by him or them ... there shall be

delivered ... a pound troy of the current coins of this kingdom, of

crown or standard gold.

6. THE EAST INDIA COMPANY AND THE INTERLOPERS [_Diary and Consultation

Book of Fort St. George, Ed. Pringle Series I, Vol. III, p. 49_], 1684.

_To Sir John Wetwangs, Commander of ship Royal James._

His Majesty the King of England our Sovereign Lord having granted the

Honourable East India Company full power and authority to enter into any

ship or vessel, and to make seizure of the same, that shall be found in

these parts of the East Indies, contrary to his royal will and

pleasure,[385] ... we therefore, the Agent and Council of Fort St.

George, for the said Honourable East India Company, do ... (there being

now an Interlopers' ship, the _Constantinople_, merchant, John Smith,

master, at Covelon), require you immediately to repair aboard your ship,

weigh anchor, and set sail for that port of Covelon, and there seize

upon the said Interlopers' ship and bring her into this Road of

Madras.... Dated in Fort St. George the sixth day of June, 1684.

WILLIAM GYFFORD.

JOHN BIGRIG.

ELIHU YALE.

JOHN NICKS.

JOHN LITTLETON.

JOHN GRAY.

[Footnote 385: New Charter granted Aug. 9, 1683.]

7. FOUNDATION OF THE BANK OF ENGLAND [_Statutes, 5 & 6, Wm. & Mary,

20_], 1694.

An Act for granting to their Majesties several rates and duties upon

tunnage of ships and vessels, and upon beer, ale, and other liquors,

for securing certain recompences and advantages in the said act

mentioned, to such persons as shall voluntarily advance the sum of

fifteen hundred thousand pounds, towards the carrying on the war

against France.

XIX. And be it farther enacted by the authority aforesaid, that it shall

and may be lawful to and for their Majesties, by commission under the

great seal of England, to authorize and appoint any number of persons to

take and receive all such voluntary subscriptions as shall be made on or

before the first day of August, which shall be in the year of our Lord

one thousand six hundred ninety four, by any person or persons, natives

or foreigners, bodies politic or corporate.

XX. And be it further enacted, that it shall and may be lawful to and

for their Majesties, by letters patents under the great seal of England,

to limit, direct, and appoint, how and in what manner and proportions,

and under what rules and directions, the said sum of twelve hundred

thousand pounds, part of the said sum of fifteen hundred thousand

pounds, and the said yearly sum of one hundred thousand pounds, part of

the said yearly sum of one hundred and forty thousand pounds, and every

or any part or proportion thereof, may be assignable or transferable,

assigned or transferred, to such person or persons only as shall freely

and voluntarily accept of the same, and not otherwise; and to

incorporate all and every such subscribers and contributors, their

heirs, successors, or assigns, to be one body corporate and politic, by

the name of the governor and company of the bank of England, and, by the

same name of the governor and company of the bank of England, to have

perpetual succession, and a common seal.

XXVIII. Provided, that nothing herein contained shall any ways be

construed to hinder the said corporation from dealing in bills of

exchange, or in buying or selling bullion, gold, or silver, or in

selling any goods, wares, or merchandize whatsoever, which shall really

and _bona fide_ be left or deposited with the said corporation for

money lent and advanced thereon, and which shall not be redeemed at the

time agreed on, or within three months after, or from selling such goods

as shall or may be the produce of lands purchased by the said

corporation.

8. THE NEED FOR THE RECOINAGE OF 1696 [_H. Haynes, Brief Memoirs

Relating to the Silver and Gold Coins of England (in Lansdowne MSS, 801,

British Museum_), _fs._ 33-48].

The silver money of England as well as the coins of all other countries

are liable to abuse by these three following methods:

1st, by alteration of the standard appointed by public authority.

2nd, by melting them down and converting the metal to other uses.

3rd, by exporting them into foreign countries, to carry on a trade.

And by all those methods was the whole stock of the cash of this kingdom

excessively impaired before the late grand coinage.

For 1st. the standard of our silver moneys appointed by the Government

was notoriously violated. By standard is here meant that particular

weight and fineness in the silver moneys which was settled by Queen

Elizabeth and continued all her time, and after it, through the reigns

of all her several successors down to her present Majesty, and was

lately confirmed by Act of Parliament....

These were the just weights, and the legal fineness of our silver moneys

coined with the hammer, of which sort the far greater part of the cash

of the whole kingdom did consist; but they were very liable to be

clipped and diminished in their weight, because very few of these pieces

were of a just assize when they first came out of the Mint. So many

pieces, I suppose, were by the Moneyers cut out of a bar of standard

silver, as did pretty exactly answer the pound weight Troy; and the tale

of the pieces required in that weight, by the Indenture of the Mint: but

though all the pieces together might come near the pound weight or be

within remedy; yet divers of them compared one with the other were very

disproportionable, as was too well known to many persons, who picked out

the heavy pieces, and threw them into the melting pot, to fit them for

exportation, or to supply the silver smiths.

[Pieces of hammered money, "though never clipped, did many of them in

their weight and value want or exceed the legal standard." Crowns varied

from 5s. 3d. to 4s. 9d., half-crowns from 3s. to 2s. 4d., etc.]

According to the best observation of Goldsmiths[386] and others the

clipping of our coins began to be discoverable in great receipts a

little after the Dutch war in 1672, but it made no great progress at

first for some years: and the silver moneys of Queen Elizabeth were very

little diminished.... But the yearly loss by clipping made terrible

advances every year from 1686.... In the later end of 1695[387] the

public loss upon all the clipped money then actually current (if one may

judge of the whole by the foregoing table) was at least 45 per cent. by

mere clipping and light counterfeit pieces, which upon the whole running

silver cash of the kingdom amounts to 2,250,000l.[388] ...

The whole kingdom was in a general distraction by the badness of the

silver coin and the rise of guineas, for no one knew what to trust to;

the landlord knew not in what to receive his rents, nor the tenant in

what to pay them. Neither of them could foretell the value of his moneys

to-morrow. The merchant could not foresee the worth of his wares at two

or three days distance, and was at a loss to set a price upon his goods.

Everybody was afraid to engage in any new contracts, and as shy in

performing old ones, the King subsisted his forces in foreign parts at

the disadvantage of seven or eight per cent. interest and five per cent.

premio for money borrowed here, besides the loss by the Exchange abroad:

and how to provide for the next year's expense, was a mystery.

[Footnote 386: _Ibid._ folio 38.]

[Footnote 387: _Ibid._ folio 40.]

[Footnote 388: _Ibid._ folio 48.]

9. SPEECH BY SIR ROBERT WALPOLE ON THE SALT DUTIES [_Parliamentary

History (Cobbett), Vol. VIII, Col. 943_], 1732.

_House of Commons. Debate on Sir Robert Walpole's motion for Salt

Duties. February 9, 1732._

Sir Robert Walpole stood up and spoke as follows:--

Mr. Speaker,

As there is nothing his Majesty has more at heart than the giving all

possible ease to his subjects; so, whenever he is necessarily obliged to

desire assistance from them for the immediate support of the government,

he desires that they would choose those ways and means for raising the

annual supplies, which are least burthensome to the people, and which

makes the load fall equally upon the subjects in general. When money is

to be raised for the public good, for the security of all, he thinks

that every one ought to contribute his share, in proportion to the

benefit that he is thereby to receive.

As to the manner, sir, of raising taxes upon the people, it is a certain

maxim that that tax which is the most equal and the most general, is the

most just, and the least burthensome. Where every man contributes a

small share, a great sum may be raised for the public service, without

any man's being sensible of what he pays; whereas a small sum, raised

upon a few, lies heavy upon each particular man, and is the more

grievous, in that it is unjust; for where the benefit is mutual, the

expense ought to be in common. Of all the taxes I ever could think of,

there is not one more general nor one less felt, than that of the duty

upon salt. The duty upon salt is a tax that every man in the nation

contributes to according to his circumstances and condition in life;

every subject contributes something; if he be a poor man, he contributes

so small a trifle, it will hardly bear a name; if he be rich, he lives

more luxuriously, and consequently contributes more; and if he be a man

of a great estate, he keeps a great number of servants, and must

therefore contribute a great deal. Upon the other hand, there is no tax

that ever was laid upon the people of this nation, that is more unjust

and unequal than the Land Tax. The landholders bear but a small

proportion to the people of this nation, or of any nation; yet no man

contributes any the least share to this tax, but he that is possessed of

a land estate; and yet this tax has been continued without intermission

for above these 40 years.

10. PITT'S SINKING FUND ACT [_Statutes, 26 Geo. III, 31_], 1786.

An Act for vesting certain sums in commissioners, at the end of every

quarter of a year, to be by them applied to the reduction of the

national debt.

[£250,000 is to be set apart quarterly out of the sinking fund.]

IV. Provided always, and be it enacted by the authority aforesaid, that

if at any time it should happen, that at the end of the year ending the

fifth day of January, one thousand seven hundred and eighty seven, or at

the end of any future year, computed as aforesaid, after provision shall

have been made for all payments for which monies are previously to be

set apart or issued according to the directions of this act, the said

surpluses, excesses, and overplus monies, composing the sinking fund,

shall not be sufficient to make good as well all such deficiencies as

shall have arisen during such year, as the payment of the sum of two

hundred and fifty thousand pounds then due, in every such case, the

amount of such deficiency or deficiencies, whether the same shall have

arisen in any preceding quarter or quarters within such year, or in the

quarter ending on the fifth day of January on which such year shall end,

shall not be carried forward as a charge on the said sinking fund at the

end of the next succeeding quarter, but shall be made good out of any

aids or supplies which shall be or shall have been granted by parliament

for the service of the then current year; and the amount of such

deficiency or deficiencies so to be made good, shall be issued to the

governor and company of the bank of England, in the manner hereinafter

directed, within ten days after monies sufficient to answer the same

shall have been paid into his Majesty's receipt of exchequer, on account

of any such aids or supplies.

V. And be it further enacted by the authority aforesaid, that the monies

so set apart, at the end of any quarter of a year ending as aforesaid,

or of any year computed as aforesaid either for the payment of the sum

of two hundred and fifty thousand pounds due at the end of such quarter,

or of any part thereof, or for making good such deficiency or

deficiencies as aforesaid, shall forthwith be issued and paid to the

governor and company of the bank of England, and shall by them be placed

to an account to be raised in their books, and to be intituled, The

account of the commissioners appointed by act of parliament for applying

certain sums of money annually to the reduction at the national debt:

and that as well all such monies, as any other monies which shall be

paid to the governor and company of the bank of England by virtue of

this act, to be placed to the said account, shall be applied by the

commissioners hereinafter appointed towards the reduction of the

national debt, in the manner hereinafter directed, and to no other

intent or purpose, and in no other manner whatever.

X. And be it further enacted by the authority aforesaid, that all monies

whatever, which shall be placed from time to time to the account of the

said commissioners by virtue of this act, shall be applied by them

either in payments for the redemption of such redeemable public

annuities as shall be at or above par, in such manner and at such

periods as shall be directed by any future act or acts of parliament, or

to the purchase of any public annuities below par in the manner

hereinafter directed.

11. THE SUSPENSION OF CASH PAYMENTS [_Reports of Committees on Bank of

England, 1797 and 1826, in Reports 1826 (III), pp. 142 and 255-256_],

1797.

The alarm of Invasion [in 1796-1797] which, when an immediate attack was

first apprehended in Ireland, had occasioned some extraordinary demand

for cash on the Bank of England, in the months of December and January

last, began in February to produce similar results in the north of

England. Your Committee find, that in consequence of this apprehension,

the farmers suddenly brought the produce of their lands to sale, and

carried the notes of the County Banks, which they had collected by those

and other means, into those banks for payment; that this unusual and

sudden demand for cash reduced the several banks at Newcastle to the

necessity of suspending their payments in specie, and of availing

themselves of all the means in their power of procuring a speedy supply

of cash from the metropolis; that the effects of this demand on the

Newcastle banks and their suspension of payments in cash, soon spread

over various parts of the country, from whence similar applications were

consequently made to the metropolis for cash; that the alarm thus

diffused not only occasioned an increased demand for cash in the

country, but probably a disposition in many to hoard what was thus

obtained; that this call on the metropolis, through whatever channels,

directly affected the Bank of England, as the great repository of cash,

and was in the course of still further operation upon it, when stopped

by the Minute of Council of the 26th of February.[389]

* * * * *

Your Committee find, that the Court of Directors of the Bank did, on the

26th October 1797, come to a Resolution, a copy of which is subjoined to

this Report.

Your Committee, having further examined the Governor and Deputy

Governor, as to what may be meant by the political circumstances

mentioned in that resolution, find, that they understand by them, the

state of hostility in which the nation is still involved, and

particularly such apprehensions as may be entertained of invasion,

either in Ireland or in this country, together with the possibility

there may be of advances being to be made from this country to Ireland;

and that from these circumstances so explained, and from the nature of

the war, and the avowed purpose of the enemy to attack this country by

means of its public credit, and to distress it in its financial

operations, they are led to think that it will be expedient to continue

the restriction now subsisting, with the reserve for partial issues of

cash, at the discretion of the Bank, of the nature of that contained in

the present Acts; and that it may be so continued, without injury to the

credit of the Bank, and to the advantage of the nation.

"_Resolved_, that it is the opinion of this Court,[390] that the

Governor and Company of the Bank of England are enabled to issue Specie,

in any manner that may be deemed necessary for the accommodation of the

public; and the Court have no hesitation to declare that the affairs of

the Bank are in such a state, that it can with safety resume its

accustomed functions, if the political circumstances of the country do

not render it inexpedient: but the Directors deeming it foreign to their

province to judge of these points, wish to submit to the wisdom of

Parliament, whether, as it has been once judged proper to lay a

restriction on the payment of the bank in cash, it may, or may not, be

prudent to continue the same?"[391]

[Footnote 389: The Minute of February 26, 1797, suspended the obligation

of the Bank of England to pay coin for its notes.]

[Footnote 390: Copy of a Resolution of the Court of Directors of the

Bank of England at a meeting on Thursday, October 26, 1797.]

[Footnote 391: The Bank of England resumed cash payments, 1819.]

12. PITT'S SPEECH ON THE INCOME TAX [_Speeches of William Pitt, edited

W.S. Hathaway, 1806, Vol. III, pp. 282-333_], 1798.

I shall begin by stating what has been voted as the amount of the supply

under the head of the services for the navy, with the exception of what

is necessary for the transport services. All these accounts have this

day been laid before us; and it appears that the total sum for the

ordinaries and extra-ordinaries of the navy and transport services

amounts to 13,642,000l., being the same sum, within a very small amount,

as was granted in the course of last session, and which I have the

satisfaction of assuring the committee is likely to prove sufficient for

the whole expenses of the navy, without leaving any necessity for

augmentation. The next head of expense is the army, in which the

estimates amount to 8,840,000l. ... Under the head of ordnance services,

including the expenses which have not been provided for, there has been

voted the sum of 1,570,000l. The next article is that of the

miscellaneous services. The plantation estimates have already been

voted, but there are other minuter parts of these services which have

not yet undergone a discussion in this house. The amount will be rather

less than it was last session. I state it [at] 600,000l. To this is to

be added the usual sum voted towards the redemption of the national

debt, above the annual million, which is 200,000l. There are other sums,

which are generally voted under the head of deficiency of grants. Among

these is a sum due for interest on treasury and exchequer bills paid

off, amounting to 565,000l.; the discount on prompt payments upon the

loan, amounting to 210,000l.; the interest on exchequer bills circulated

within the year, and charged upon the succeeding year, 300,000l.; in

addition to this, there is the deficiency of the land and malt in the

act passed two years ago, amounting to 300,000l. These sums swell the

total of the supply to 29,272,000l. This total, sir, does not differ in

any material degree from the amount of the supply of last session.

[He then estimates prospective sources of revenue:

Land and malt taxes 2,750,000l.

Lottery 200,000l.

Produce of the consolidated fund 1,500,000l.

Import and Export taxes 1,700,000l.

-------------

6,150,000l.]

The remainder of the sum is that which must be raised either by a tax

within the year, in the same manner as the assessed tax bill of last

year, or by a loan. It will be to be considered, how the committee will

divide that remaining sum between them. The sum to be provided for is

upwards of twenty-three millions. Gentlemen will recollect that, in the

debates upon the subject of the assessed taxes last session, two

fundamental principles were established as the rule by which we should

be guided in providing for the supplies for the service of the year.

These were, first, to reduce the total amount to be at present raised by

a loan; and next, as far as it was not reducible, to reduce it to such a

limit, that no more loan should be raised than a temporary tax should

defray within a limited time. In the first place, the tax acceded to by

the House last session[392] was for the purpose of providing for the

supplies of the year; and in the next place, for the purpose of

extinguishing the loan raised in that year. From the modifications,

however, which that measure underwent after its being first proposed,

the produce of it was diminished to a considerable extent. Other means

indeed were adopted to remedy the deficiency which was thus occasioned.

The voluntary and cheerful efforts which, so honourably to individuals

and to the country, came in aid of the assessed taxes, and the superior

produce of the exports and imports beyond the estimate, brought the

amount of the sums raised to that at which they had been calculated. The

different articles were estimated at seven millions and a half, and this

sum was fully covered by the actual receipts under the distinct heads.

It gives me, indeed, the most heartfelt satisfaction to state, that

notwithstanding the difficulties which the measure encountered from the

shameful evasion, or rather the scandalous frauds by which its effects

were counteracted, the total amount which was expected has yet been

realized. The meanness which shrunk from fair and equal contribution has

been compensated to the public by the voluntary exertions of patriotism.

The produce of the assessed taxes, under all the modifications, and all

the evasions, is four millions. I had taken it at four and a half after

the modifications. The deficiency is supplied by the excess on head of

voluntary contributions....

Satisfactory as it must be to review the circumstances to which we owe

those advantages, and the benefits which the mode of raising the

supplies to a considerable extent adopted last session has produced, it

is unnecessary for me to state that, however the principle may deserve

our approbation, it is still much to be desired that its effects should

be more extensive, and its application more efficient.... Every

circumstance in our situation, every event in the retrospect of our

affairs, every thing which strikes our view as we look around us,

demonstrates the advantages of the system of raising a considerable part

of the supplies within the year, and ought to induce us to enforce it

more effectually to prevent those frauds, which an imperfect criterion

and a loose facility of modification have introduced; to repress those

evasions so disgraceful to the country, so injurious to those who

honourably discharge their equal contribution, and, above all, so

detrimental to the great object of national advantage which it is

intended to promote. In these sentiments, our leading principle should

be to guard against all evasion, to endeavour by a fair and strict

application to realize that full tenth, which it was the original

purpose of the measure of the assessed taxes to obtain, and to extend

this as far as possible in every direction, till it may be necessary

clearly to mark the modification, or to renounce, in certain instances,

the application of it altogether. If then, the committee assent to this

principle, they must feel the necessity of following it up by a more

comprehensive scale and by more efficient provisions. They will perceive

the necessity of obtaining a more specific statement of income, than the

loose scale of modification, which, under the former measure, permitted

such fraud and evasion. If such a provision be requisite to correct the

abuses of a collection, to obviate the artifices of dishonesty, to

extend the utility of the whole system, it will be found that many of

the regulations of the old measure will be adapted to a more

comprehensive and efficient application of the principle. If regulations

can be devised to prevent an undue abatement, and to proportion the

burden to the real ability, means must be employed to reach those

resources which, _primâ facie_, it is impossible under the present

system of the assessed taxes to touch. While inaccuracy, fraud,

inequality, be grievances which it is desirable to remedy, it will be an

additional satisfaction, that when compelled to adopt means to prevent

the defects of which we complain, we shall be enabled likewise to

improve and to extend the benefits we have obtained. The experience

which we have had upon the subject, proves that we must correct and

remedy, in order to secure the advantages which the measure is

calculated to afford. It is in our power to make them our own. I think I

can show that whatever benefit the principle upon which we have begun to

act, is fitted to bestow, may by a liberal, fair and efficient

application, be carried to an extent far greater than has yet been

obtained, an extent equal to every object of great and magnanimous

effort, to every purpose of national safety and glory, to every

advantage of permanent credit and of increased prosperity.

Impressed then with the importance of the subject, convinced that we

ought, as far as possible, to prevent all evasion and fraud, it remains

for us to consider, by what means these defects may be redressed, by

what means a more equal scale of contributions can be applied, and a

more extensive effect obtained. For this purpose it is my intention to

propose, that the presumption founded upon the assessed taxes shall be

laid aside, and that a general tax shall be imposed upon all the leading

branches of income. No scale of income indeed which can be devised will

be perfectly free from the objection of inequality, or entirely cut off

the possibility of evasion. All that can be attempted is, to approach as

near as circumstances will permit to a fair and equal contribution....

The details of a measure which attempts an end so great and important,

must necessarily require serious and mature deliberation. At present all

that I can pretend to do is, to lay before the committee an outline of

the plan which endeavours to combine every thing at which such a measure

ought to aim. This outline I shall now proceed to develop to the

committee as clearly and distinctly as I am able.

* * * * *

The next point for consideration then, is the mode of contribution which

shall be adopted. On this head it is my intention to propose that no

income under 60l. a year shall be called upon to contribute, and that

the scale of modification up to 200l. a year, as in assessed taxes,

shall be introduced with restriction. The quota which will then be

called for ought to amount to a full tenth of the contributor's income.

The mode proposed of obtaining this contribution differs from that

pursued in the assessed taxes, as instead of trebling their amount, the

statement of income is to proceed from the party himself.

[A detailed estimate of income from different sources follows. One-fifth

is deducted to allow for the remission of taxation on incomes under 60l.

and graduation under 200l. from 1/120 to 1/10.]

For the sake of greater clearness I will recapitulate the heads in the

same order that I have followed:--

The land rental, then, after deducting one-fifth,

I estimate at 20,000,000l.

The tenant's rental of land, deducting two-thirds

of rack rent, I take at 6,000,000l.

The amount of tythes, deducting one-fifth 4,000,000l.

The produce of mines, canal navigation, etc.,

deducting one-fifth 3,000,000l.

The rental of houses, deducting one-fifth 5,000,000l.

The profits of professions 2,000,000l.

The rental of Scotland, taking it at one-eighth

of that of England 5,000,000l.

The income of persons resident in Great Britain

drawn from possessions beyond seas 5,000,000l.

The amount of annuities, from the public funds,

after deducting one-fifth for exemptions

and modifications 12,000,000l.

The profits on the capital employed in our

foreign commerce 12,000,000l.

The profits on the capital employed in domestic

trade, and the profits of skill and industry 28,000,000l.

------------

In all 102,000,000l.

------------

Upon this sum a tax of 10 per cent. is likely to produce 10,000,000l. a

year, and this is the sum which is likely to result from the measure,

and at which I shall assume it.

* * * * *

I trust that it will not be necessary for me to go into any detail of

argument to convince the committee of the advantages of the beneficial

mode adopted last session, of raising a considerable part of the

supplies within the year.... It will be manifest to every gentleman on

the slightest consideration of the subject, that, in the end, the

measure of raising the supplies within the year is the cheapest and the

most salutary course that a wise people can pursue; and when it is

considered that there is a saving of at least one-twelfth upon all that

is raised, gentlemen will not suffer a superstitious fear, and jealousy

of the danger of exposing the secrecy of income, to combat with a

measure that is so pregnant with benefits to the nation. If gentlemen

will take into their consideration the probable duration of peace and

war, calculated from the experience of past times, they will be

convinced of the immeasurable importance of striving to raise the

supplies within the year, rather than accumulating a permanent debt. The

experience of the last hundred, fifty, or forty years, will show how

little confidence we can have in the duration of peace, and it ought to

convince us how important it is to establish a system that will prepare

us for every emergency, give stability to strength, and perpetual

renovations to resource. I think I could make it apparent to gentlemen

that in any war, of the duration of six years, the plan of funding all

the expenses to be incurred in carrying it on, would leave at the end of

it a greater burden permanently upon the nation than would be sustained,

than they would have to incur for the six years only of its continuance,

and one year beyond it, provided that they made the sacrifice of a tenth

of their income. In the old, unwise, and destructive way of raising the

supplies by a permanent fund, without any provision for its redemption,

a war so carried on entails the burden upon the age and upon their

posterity for ever. This has, to be sure, in a great measure, been done

away and corrected, by the salutary and valuable system which has been

adopted of the redemption fund. But that fund cannot accomplish the end

in a shorter period than forty years, and during all that time the

expenses of a war so funded must weigh down and press upon the people.

If, on the contrary, it had at an earlier period of our history been

resolved to adopt the present mode of raising the supplies within the

year; if, for instance, after the peace of Aix-la-Chapelle, the scheme

of redemption had been adopted and persevered in to this time, we should

not now, for the seventh year of the war, have had more to raise from

the pockets of the people than what we have now to pay of permanent

taxes, together with about a fourth of what it would be necessary to lay

on in addition for this year. Fortunately, we have at last established

the redemption fund: the benefits of it are already felt; they will

every year be more and more acknowledged; and in addition to this it is

only necessary, that instead of consulting a present advantage, and

throwing the burden, as heretofore, upon posterity, we shall fairly meet

it ourselves, and lay the foundation of a system that shall make us

independent of all the future events of the world.[393]

[Footnote 392: The Triple Assessment, based on the individual's previous

payment to the various taxes on expenditure which Pitt had grouped

together as the Assessed Taxes.]

[Footnote 393: The income tax was recast in 1803, when Schedules of

different sources of income, instead of a general return, were

introduced. It was again revised in 1806. In 1816 it was repealed. Peel

reintroduced it in 1842 for three years, and it then became permanent.]

13. FOREIGN TRADE IN THE EARLY NINETEENTH CENTURY [_Committee on Orders

in Council, Reports 1812 (III)_, _pp._ 38, 40, 41, 132-133, 522-523],

_c._ 1812.

[Evidence of Joseph Shaw, Chairman of Birmingham Chamber of Foreign

Commerce and exporter of hardwares.]

Have you had occasion to make any estimate, founded upon your own

inquiries, of the number of workmen employed in the Birmingham

manufactory[394]--and the neighbouring towns? I never particularly

estimated for the whole of them, but in the year 1808 I took an estimate

of the people employed in the American trade.... Those that could be

ascertained to be (as nearly as could be) exclusively employed in the

American trade were 50,000, exclusive of the nail trade, which employed

from twenty to thirty thousand [of whom two-thirds were engaged in the

American trade].

* * * * *

Can you state to the Committee, from your observation, what proportion

the foreign trade generally bears to the trade for home consumption?...

I should think it was considerably more than one half, including the

United States.

Do you think it would amount to two-thirds? I should think not far from

it.... Do you think the foreign trade is equal to two-thirds of the

whole manufacture?--When the foreign trade is the same as in the year

1810, not in its present state; it is now very different....

* * * * *

To what cause do you ascribe the diminution of your trade to the

Continent?--The risk of sending goods into many ports of the Continent

is too great....

* * * * *

Then it is the French, Berlin, and other decrees that have produced this

diminution of your trade to the Continent?--To my own particular trade.

I cannot say how it is as to others.

[Evidence of John Bailey, exporter and home factor of Sheffield goods.]

What are the principal articles manufactured at Sheffield?--They are

very numerous, I can present a list of them to the House; the principal

articles are cutlery, files, edged tools, saws, and a great variety of

other heavy articles.

* * * * *

Can you speak to the population of Sheffield, and such parts of the

neighbouring parishes as are concerned in the Sheffield

manufacture?--The population of the parish of Sheffield, as returned by

the overseers in the year 1811, was 53,000 odd; but including those

parts of parishes in which Sheffield goods are manufactured, the

population amounts to 60,000 at least.

Can you tell what proportion of hands are employed in manufacturing for

the American market?--For the American market, about 4,000 male adults,

and 2,000 women and children, making a total of 6,000.

* * * * *

How many do you estimate are employed in manufacturing for the home

trade?--Six thousand male adults, and one thousand women and children.

How many do you calculate are employed in the remaining parts of the

Sheffield trade, namely, manufactures for the foreign market, exclusive

of the American?--Two thousand male adults, and one thousand women and

children.

This last market includes Spain and Portugal?--Spain, Portugal, the West

Indies, South America, and Canada, with some few other parts.

What proportion does the American market bear to the home market, as

far as regards the Sheffield goods?--The American exports amount, as

nearly as I have been able to ascertain, to one-third of the whole

manufactures of Sheffield; the home trade to, I think, three-sixths.

[He adds that the American trade had been affected by the Orders in

Council and the Non-importation Act of the United States. The home trade

with towns in the American trade had been injured also. Goods to the

value of £400,000 were waiting in Sheffield and Liverpool warehouses.]

* * * * *

[Evidence of Robert MacKerrell, London merchant, dealing in cottons and

muslins, and manufacturer of Paisley.]

Can you inform the Committee what the state of the trade was in the

years 1808, 1809, 1810, and 1811?--In 1807 we felt the whole effect of

the Berlin decree, we were entirely excluded from the Continent; I speak

with regard to my own transactions and those of a vast number of my

friends. We had in 1807, and previous to that, trades to the South of

Europe, particularly in Portugal, which were uninterrupted, but which

were likewise put an end to by the French invasion in November of that

year. In 1808 the trade revived considerably; a great quantity of our

goods, and of English merchandise, was introduced into the Continent

through Heligoland; considerable exports were made to the Baltic; the

trade in the Mediterranean increased very considerably; a very great

trade was opened to this country in consequence of the Royal Family of

Portugal removing to the Brazils, which likewise made an opening to

Spanish South America. In 1809 the trade through Heligoland was most

extensive; Bonaparte had his hands full with the Emperor of Germany and

with the Spaniards, and had no time to attend to the coast; the trade

during that year I may say was uninterrupted. The trade to the

Mediterranean increased very much; the quantity of goods taken out that

year greatly exceeded any previous year, for reasons that at that time

we could not account for. The trade to the Brazils was equally extensive

with the year before, vast exportations took place to South America, and

in general, trade in the line in which I am engaged was reckoned a fair

trade; the markets were never heavy.

[The Orders in Council increased the English export trade to the South

of Europe, and Africa and the Levant were supplied with English

substitutes for Continental cottons and linens.]

What has been the state of your trade for the last eighteen months, and,

as far as you have been informed, of the country in general?--The state

of the trade during the last eighteen months has been depressed; for the

last twelve months it has been recovering, but for the six months

previous it was very much depressed indeed.

To what do you attribute that depression?--We attribute the depression

of trade which took place to the effect of the Berlin and Milan decrees.

[Northern Europe, the Baltic, etc., were shut against English trade, and

English ships were sequestered even in Swedish ports.]

[Footnote 394: Brassfounding, hardware, plated ware, jewellery, etc.]

14. DEBATE ON THE CORN LAW [_Parliamentary History, 1st Series, Vol.

XXIX, Cols. 798-818_], 1815.

_House of Commons. February 17, 1815._

_The State of the Corn Laws._

The _Hon. Frederick Robinson_ immediately rose.... He had never

disguised from himself, and he was not ashamed to confess it, the

extreme difficulty, as well as the extreme importance, of this question.

He could not, however, but feel that the prejudices on this subject had,

from further inquiry, been very much removed. But, above all, he was

happy to see that the misrepresentations, for so he thought they were,

with respect to the motives of those who supported this measure, and

with reference to the effects which it was likely to produce, were done

away with. There did not now exist in the public mind the feeling by

which it was before influenced. It was not now supposed that the object

sought to be accomplished by the alteration of the corn law was the mean

and base and paltry one of getting, for a particular class of society, a

certain profit at the expense of the rest. "For my part," said Mr.

Robinson, "I declare to God, if I thought this was the motive which

actuated any individual who supported the alteration; and, above all, if

I conceived that such would be the effect of the measure, no

consideration on earth could tempt me to bring it forward." ...

* * * * *

... The general result of his reasoning was, in the first place, that

it was quite impossible for us safely to rely on a foreign import. If

they so did, a necessary result would be a diminution of our own

produce, which would become more and more extensive every year, and

consequently call for a greater annual supply from foreign countries--a

supply which must progressively increase as the agriculture of the

kingdom became less encouraged; and that, when the fatal moment arrived,

the system of foreign supply would prove completely illusory.

The next point to be considered was the extent to which protection

should be given. That was a point on which, undoubtedly, a difference of

opinion was most likely to prevail. Some gentlemen would be for going

considerably higher than others. Many thought the prohibition ought to

be carried to a price considerably above that, without he obtained which

it was conceived the agriculturalist could not cultivate. Others would

wish that it should be placed much lower; and contend that because a

particular species and degree of burden was likely to be removed, the

protecting price ought to be much reduced. Now he would be inclined to

agree to the first of these propositions, if the necessary effect of it

would not be to bring up the price of corn to the highest possible rate,

within the limits of the sum at which importation should commence. This

certainly might be the case at the first moment, but he believed the

ultimate result would not be so. He thought the final effect of the

system would be to give such a powerful support to our own agriculture

as would greatly increase the general produce of the country. It would

excite a strong competition between the different parts of England, and

between England and Ireland; so that the growth of corn, if Providence

blessed us with favourable seasons, would be sufficiently large to

afford an ample supply for the people of this country, and would enable

them to be fed at a much cheaper rate, in the long run, than could be

effected by the adoption of any other system.

* * * * *

_Mr. Philips_ professed himself equally inclined either to proceed with,

or defer the discussion, as might be most agreeable to the wishes of the

House. Several members calling out "Go on," he began by stating his

entire concurrence in the opinion of the right hon. gentleman who had

moved the resolutions, that this was not a question on which the

interests of the commercial and agricultural classes were at variance,

but one in which those interests, when fairly and liberally considered,

would be found to accord; for no resolution upon it calculated to

promote the general prosperity of the country could be adopted without

materially benefiting both classes. But if this were not the case, if

the question were one in which the interests of two or more descriptions

of our fellow-subjects were opposed, he should say that it was the duty

of parliament not to legislate for the advantage of one class in

contradistinction to, or at the expense of another, but to legislate for

the benefit of the whole community. Looking at the question under the

influence of this principle, he could not help feeling and expressing

some surprise at the occasion of their present deliberations. What was

the object of their deliberations? To provide a remedy for the low price

of corn. That which all ages and countries had considered as a great

national benefit was now discovered to be a great evil, against which we

were imperiously called to legislate in self-defence. The real object of

the resolutions, however disguised and disavowed, was to raise the price

of corn. [Here Mr. Robinson expressed his dissent.] Mr. Philips

proceeded to say that this not only was their object, but if that object

were not attained, the advocates of the resolutions would regard them as

nugatory. The right hon. gentleman must at least allow that their object

was to raise the present price of grain; but he contended that

moderation and uniformity of price would be their ultimate effect. It

did seem somewhat inconsistent, on the part of the hon. gentleman, to

tell the House that the effectual way to lower price was to acquiesce in

a measure expressly intended to raise it. But how are this moderation

and uniformity of price to be produced? By contracting the market of

supply. Thus, while in all other instances moderation and uniformity of

price are found to be in proportion to the extent of the market of

supply, in the instance of corn they are to be in proportion to the

limitation of it: and in a commodity peculiarly liable to be affected by

the variation of seasons, moderation and uniformity of price, and

abundance, are to be attained by preventing importations from foreign

countries correcting the effect of varieties of climate, and of a scanty

harvest in our own. To him it appeared that no measure could be better

calculated to produce directly opposite consequences.

* * * * *

In considering the relation between the price of provisions and of

labour, Mr. Philips observed that it was necessary to distinguish the

countries and the trades from which examples were taken. In a new

country where the value of land is extremely low, and agriculture

rapidly progressive, in a new and thriving manufacture, the price of

labour may be so high in proportion to that of the necessaries of life

as to be little affected by their fluctuations.... But this state of

things cannot exist in old manufactures, such as those generally

established in this country, where competition has reduced profits, and

that reduction of profit has brought the wages of the labourer to a

level with his subsistence in tolerable comfort. In such manufactures if

you raise the price of provisions without proportionately raising that

of labour, to what privations and evils must you necessarily expose the

labourer! He was ready to admit with the noble lord[395] that, _ceteris

paribus_, the immediate effect of a high advance of provisions might

probably be a reduction of the price of labour; because labourers being

desirous of obtaining the same comforts that they had been used to,

might be stimulated to more diligence. They might work sixteen hours a

day instead of ten, and thus the competition for employment being

increased among the same number of workmen, without any increase of

demand, the price of labour might fall. But will any person contend that

this state of affairs can long continue? The labourer must go to the

parish, or turn to some more profitable employment, if by chance any can

be found, or he must emigrate, or work himself out by overstrained

exertion. The proportion being then altered between the demand for

labour and the supply, its price will rise. This effect sooner or later

must happen, but till it has actually taken place how dreadful must be

the situation of the labourer!

* * * * *

Having thus shown both by reasoning and by reference to facts, that the

price of provisions must ultimately and on the average regulate that of

labour, he proceeded to show the effect that an advance of provisions

must have on our manufacturing interests. And here Mr. Philips said that

he wished on such topics, to reduce his reasoning as much as possible to

numerical calculation. He would suppose, for the sake of argument,

without at all entering into the enquiry, that three-fifths, or 60 per

cent. of the labourer's wages were spent in provisions, and that

provisions were 80 per cent. dearer here than they were in France, or

any manufacturing country on the continent. By multiplying 60 by 80, and

dividing by 100, the committee would see that the excess of the price of

labour here above that of France would, from these datas, and according

to his reasoning, be 48 per cent. He wished the committee to consider

what must be the effect of such an excessive price of labour employed in

our manufactures, when compared with the low price of labour employed in

the manufactures of France, and what an advantage it must give to the

French manufacturers in their attempts to rival us on the continent.

* * * * *

[After quoting Malthus] he observed that there were two ways of

equalising subsistence and population, one by increasing food, the other

by limiting population, and warned the committee against being led into

measures whose tendency might be to produce that effect in the latter

way. Why (said Mr. Philips) should a commercial and manufacturing

country like this have such a jealousy and dread of the importation of

corn? An importation of corn cannot take place without a corresponding

export of commodities on which British industry has been employed. The

export will increase your wealth, that wealth will increase your

population, and that increased population will produce an increased

demand for your agricultural produce.... Mr. Philips observed that no

country in the world was so interested as this in establishing the

principle of free trade, because no other country could profit equally

by the general recognition of that principle. Foreign nations,

mistaking, like the advocates of the regulation before the committee,

the circumstances which have operated against our wealth for the causes

of it, are now following our example. They are prohibiting or imposing

restraints on the import of our fabrics, in order to encourage their own

manufactures, from which they will receive inferior fabrics at a higher

price. Let us convince them, by an example, of their mistake. Let us

convince them that by leaving industry and enterprise unfettered, and by

allowing capital to take its natural and voluntary direction, we are

persuaded that the true interests of this country and of every other

will be most effectually promoted.

Mr. Philips proceeded to say that Great Britain was geographically a

commercial country, that commerce had stimulated her agriculture rather

than agriculture had stimulated her commerce. It had given wealth to her

people, and diffused fertility over her soil. Take care, said he, that

in attempting to change the natural character of your country, you do

not stop the progress of national prosperity....

[Footnote 395: Lord Lauderdale in evidence before a committee of the

House of Lords.]

15. THE CORN LAW OF 1815 [_Statutes, 55 Geo. III, 26_]

An Act to amend the laws now in force regulating the Importation of

Corn.

[Corn may at all times be imported and warehoused free of duty.]

III. And be it further enacted, that such foreign corn, meal or flour,

shall and may be permitted to be imported into the said United Kingdom,

for home consumption, under and subject to the provisions and

regulations now in force, without payment of any duty whatever, whenever

the average prices of the several sorts of British corn, made up and

published in the manner now by law required, shall be at or above the

prices hereafter mentioned; that is to say, whenever wheat shall be at

or above the price of eighty shillings per quarter; whenever rye, pease

and beans shall be at or above the price of fifty-three shillings per

quarter; whenever barley, beer or bigg shall be at or above the price of

forty shillings per quarter; and whenever oats shall be at or above the

price of twenty-seven shillings per quarter.

IV. And be it further enacted, that whenever the average prices of

British corn so made up and published shall respectively be below the

prices hereinbefore stated, no foreign corn, or meal, or flour made from

any of the respective sorts of foreign corn hereinbefore enumerated,

shall be allowed to be imported into the United Kingdom for the purpose

of home consumption, or taken out of warehouse for that purpose.

V. And be it further enacted, that the average price of the several

sorts of British corn, by which the importation of foreign corn, meal or

flour, into the United Kingdom shall be regulated and governed, shall

continue to be made up and published in any manner now required by law;

but that if it shall hereafter at any time after the importation of

foreign corn, meal or flour shall be permitted, under the provisions of

this Act, appear that the average prices of the different sorts of

British corn respectively in the six weeks immediately succeeding the

fifteenth day of February, the fifteenth day of May, the fifteenth day

of August and the fifteenth day of November in each year, shall have

fallen below the prices at which foreign corn, meal or flour may be,

under the provisions of this Act, allowed to be imported for home

consumption, no such foreign corn, meal or flour shall be allowed to be

imported into the United Kingdom for home consumption from any place

between the rivers Eyder and Bidassoa, both inclusive, until a new

average shall be made up and published in the London Gazette for

regulating the importation into the United Kingdom for the succeeding

quarter.

16. FREE TRADE PETITION[396] [_Commons Journals, Vol. LXXV._], 1820.

The Petition, etc.,

Humbly sheweth

That foreign commerce is eminently conducive to the wealth and

prosperity of a country, by enabling it to import the commodities for

the production of which the soil, climate, capital, and industry of

other countries are best calculated, and to export in payment those

articles for which its own situation is better adapted.

That freedom from restraint is calculated to give the utmost extension

to foreign trade, and the best direction to the capital and industry of

the country.

That the maxim of buying in the cheapest market and selling in the

dearest, which regulates every merchant in his individual dealings, is

strictly applicable as the best rule for the trade of the whole nation.

That a policy founded on these principles would render the commerce of

the world an interchange of mutual advantages, and diffuse an increase

of wealth and enjoyments among the inhabitants of each State.

That, unfortunately, a policy the very reverse of this has been, and is,

more or less, adopted and acted upon by the Government of this and of

every other country....

That the prevailing prejudices in favour of the protective or

restrictive system may be traced to the erroneous supposition that every

importation of foreign commodities occasions a diminution or

discouragement of our own productions to the same extent, whereas it may

be clearly shown that although the particular description of production

which could not stand against unrestrained foreign competition would be

discouraged, yet, as no importation could be continued for any length of

time without a corresponding exportation, direct or indirect, there

would be an encouragement, for the purpose of that exportation, of some

other production to which our situation might be better suited, thus

affording at least an equal, and probably a greater, and certainly a

more beneficial employment to our own capital and labour.

* * * * *

That, among the other evils of the restrictive or protective system, not

the least is, that the artificial protection of one branch of industry,

or source of production, against foreign competition, is set up as a

ground of claim by other branches for similar protection, so that if the

reasoning upon which these restrictive or prohibitory regulations are

founded were followed out consistently, it would not stop short of

excluding us from all foreign commerce whatsoever. And the same train of

argument, which, with corresponding prohibitions and protective duties,

should exclude us from foreign trade, might be brought forward to

justify the re-enactment of restrictions upon the interchange of

productions (unconnected with public revenue) among the kingdoms

composing the union, or among the counties of the same kingdom.

That an investigation of the effects of the restrictive system at this

time is peculiarly called for, as it may, in the opinions of your

petitioners, lead to a strong presumption that the distress which now so

generally prevails is considerably aggravated by that system, and that

some relief may be obtained by the earliest practicable removal of such

of the restraints as may be shown to be most injurious to the capital

and industry of the community, and to be attended with no compensating

benefit to the public revenue.

That a declaration against the anti-commercial principles of our

restrictive system is of the more importance at the present juncture

inasmuch as, in several instances of recent occurrence, the merchants

and manufacturers in foreign States have assailed their respective

Governments with applications for further protective or prohibitory

duties and regulations, urging the example and authority of this

country, against which they are almost exclusively directed, as a

sanction for the policy of such measures. And certainly, if the

reasoning upon which our restrictions have been defended is worth

anything, it will apply in behalf of the regulations of foreign States

against us. They insist upon our superiority in capital and machinery,

as we do upon their comparative exemption from taxation, and with equal

foundation.

That nothing would more tend to counteract the commercial hostility of

foreign States than the adoption of a more enlightened and more

conciliatory policy on the part of this country.

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