Various - Blackwood's Edinburgh Magazine — Volume 53, No. 327, January, 1843

"Shall we persevere," he continued, "in the system on which we have been acting for the last five years? Shall we, in time of peace, have recourse to the miserable expedient of continued loans? Shall we try issues of Exchequer bills? Shall we resort to Savings' banks?—in short, to any of those expedients which, call them by what name you please, are neither more nor less than a permanent addition to the public debt? We have a deficiency of nearly L.5,000,000 in the last two years: is there a prospect of reduced expenditure? Without entering into details, but looking at your extended empire, at the demands which are made for the protection of your commerce, and the general state of the world, and calling to mind the intelligence which has lately reached us," [from Affghanistan,] "can you anticipate for the year after the next, the possibility, consistent with the honour and safety of this country, of greatly reducing the public expenses? I am forced to say, I cannot calculate on that.... Is the deficiency I have mentioned a casual deficiency? Sir, it is not; it has existed for the last seven or eight years. At the close of 1838, the deficiency was L.1,428,000; of 1839, L.430,000; of 1840, L.1,457,000; of 1841, L.1,851,000. I estimate that the deficiency of 1842 will be L.2,334,030; and that of 1843, L.2,570,000; making an aggregate deficiency, in six years, of L.10,072,000! ... With this proof that it is not with an occasional or casual deficiency that we have to deal, will you, I ask, have recourse to the miserable expedient of continued loans ? It is impossible that I could be a party to a proceeding which, I should think, might perhaps have been justifiable at first, before you knew exactly the nature of your revenue and expenditure ; but with these facts before me, I should think I were degrading the situation which I hold, if I could consent to such a paltry expedient as this. I can hardly think that Parliament will adopt a different view. I can hardly think that you, who inherit the debt contracted by your predecessors—when, having a revenue, they reduced the charges of the post-office, and inserted in the preamble of the bill a declaration that the reduction of the revenue should be made good by increased taxation—will now refuse to make it good. The effort having been made, but the effort having failed, that pledge is still unredeemed. I advised you not to give that pledge ; but if you regard the pledges of your predecessors, it is for you now to redeem them.... I apprehend that, with almost universal acquiescence, I may abandon the idea of supplying the deficiency by the miserable desire of fresh loans, of an issue of Exchequer bills. Shall I, then, if I must resort to taxation, levy it upon the articles of consumption , which constitute, in truth, almost all the necessaries of life? I cannot consent to any proposal for increasing taxation on the great articles of consumption by the labouring classes of society ." [Is it the friend or the enemy of the people , that is here speaking?] "I say, moreover, I can give you conclusive proofs that you have arrived at the limits of taxation on articles of consumption." 3 3 Hansard, vol. lxi. col. 429, 430, 431. Sir Robert Peel then proceeded, with calmness and dignity, to encounter the possible, if not even probable fatal unpopularity of proposing that which he succeeded in convincing Parliament was the only resource left a conscientious Minister—an INCOME TAX.

"I will now state what is the measure which I propose, under a sense of public duty, and a deep conviction that it is necessary for the public interest; and impressed at the same time with an equal conviction"—[mark, by the way, the exquisite judgment with which this suggestion was here thrown in!]—"that the present sacrifices which I call on you to make, will be amply compensated, ultimately, in a pecuniary point of view, and much more than compensated, by the effect which they will have in maintaining public credit and the ancient character of this country. Instead of looking to taxation on consumption—instead of reviving the taxes on salt or on sugar—it is my duty to make an earnest appeal to the possessors of property , for the purpose of repairing this mighty evil. I propose, for a time at least, (and I never had occasion to make a proposition with a more thorough conviction of its being one which the public interest of the country required)—I propose that, for a time to be limited, the income of this country should be called on to contribute a certain sum for the purpose of remedying this mighty and growing evil , ... should bear a charge not exceeding 7d. in the pound, which will not amount to 3 per cent, but, speaking accurately, L.2, 18s. 4d. per cent—for the purpose of not only supplying the deficiency in the revenue, but of enabling us, with confidence and satisfaction, to propose great commercial reforms, which will afford a hope of reviving commerce, and such an improvement in the manufacturing interests as will re-act on every other interest in the country; and by diminishing the prices of the articles of consumption and the cost of living, will, in a pecuniary point of view, compensate you for your present sacrifices; whilst you will be, at the same time, relieved from the contemplation of a great public evil." 4 4 Hansard, vol, lxi. col. 439.

We have quoted the very words of Sir Robert Peel, because they are every way memorable and worthy of permanent conspicuousness. In point, for instance, of mere oratorical skill, observe the matchless tact of the speaker. Conscious that he was about to propose what would come like a clap of thunder on all present, and on the country, he prepares the way for its favourable reception, by pointing out the almost necessarily direct pecuniary benefit ultimately derivable from his unpalatable tax; and the instant that he has disclosed his proposal, in the same breath carries our attention to a similar topic—an assurance calculated to arouse the self-interest and excite the approbation first of the commercial classes, and then of all classes, by the means this tax will give the Minister of proposing "great commercial reforms," and "reducing the cost of living." No power of description we possess can adequately set before the reader the effect produced on the House of Commons by the delivery of the passage above quoted, and which was shared, as the intelligence was communicated, by the country at large. One thing was plain, that the Minister, disdaining personal considerations of unpopularity, had satisfied the nation that a desperate disease had been detected, which required a desperate remedy. It was—it is, in vain to disguise that an income-tax has many disgusting, and all but absolutely intolerable, incidents and characteristics, and which were instantly appreciated by all who heard or read of the proposal for its adoption, and these topics were pounced upon by the late Ministers and their supporters, with eager and desperate determination to make the most of them. To give effect to their operations, they secured an immediate and ample interval for exasperating popular feeling against Ministers and their abominable proposition! But it was all in vain. There was a bluff English frankness about the Minister that mightily pleased the country, exciting a sympathy in every right-thinking Englishman. Here was no humbug of any sort , no obtaining of money under false pretences. At first hearing of it, honest John Bull staggered back several paces, with a face rueful and aghast; buttoned up his pockets, and meditated violence even; but, in a few moments, albeit with a certain sulkiness, he came back, presently shook hands with the Minister, and getting momentarily more satisfied of his honesty, and of the necessity of the case, only hoped that a little breathing-time might be given him, and that the thing might be done as quietly and genteelly as possible! To be serious, however.