expire; whilst, by a treaty just concluded with France, the British Government had undertaken to recommend measures involving the abolition and reduction of duties to the extent of 1,200,000l. And all this at a time when the public expenditure was estimated to reach 70,000,000l. The Chancellor of the Exchequer was thus under the necessity of providing for a deficit of 9,400,000l.—a task of no ordinary difficulty; but, instead of going back to the obsolete system of imposing burdens of a nature to cripple our trade and limit our national resources, Mr. Gladstone called on the nation to make a present temporary sacrifice, with a view to a future and permanent good. By allowing the additional rates of duty on tea and sugar to remain as they were, and by imposing an income-tax of 10d. in the pound, and other stamp duties, he was able not only to meet the deficit, but to enter courageously into various measures of reform, and to bring out a budget calculated to benefit the best interests of the realm, and one which inaugurates yet another era in that chapter of economical progress which has put Britain far in advance of other nations.

This bold and comprehensive measure limited the number of articles in our tariff to those which are the most productive to the revenue; removed the last vestiges of protection; introduced a wise and a longneeded reduction in the wine duties; and swept away the paper duty, a tax for the early abolition of which the House of Commons had long been pledged. Considerable advance has thus been made in the improvement of our finances, and we may trust that as soon as

a material reduction can be safely effected in our public expenditure, further and more complete reforms may

realized.

Tabular View of the Revenue.

Norman Line.

be

CHAPTER III.

TAXATION IN RELATION TO NATIONAL RESOURCES AND POPULATION.

N our review of the resources of the empire we

IN

have seen that the taxation of the United Kingdom has not in the least checked the development of national resources. The wonderful achievements of the British nation have been purchased, it is true, by means of hard and heavy sacrifices; but such sacrifices have never prostrated the energies of the people. Doubtless, when bread and other provisions were put beyond the reach of ill-rewarded industries by an ill-judged taxation, and when an ignorant policy of monopoly and restrictions circumscribed our trade and limited our resources, the poor were the first to suffer, and many an honest labourer was forced to sink into the mire of pauperism.

Nevertheless, were we to dive deeper into the arcana of the gigantic prosperity of Britain, we should find that, in a great measure, it is the result of the difficulties which British nationality imposes. To meet a personal expenditure greater by far than that required in any other country, to answer the calls of the tax

gatherer, and to provide for those comforts which the wants and conventionalities of British society have created, great efforts are needed. No one is allowed to indulge in dolce far niente. The energies of the body and mind are taxed to the utmost extent; the laws of nature, physical and intellectual, are all rendered subservient to the creation of capital; the ship of fortune is fearlessly dashed through the storms and gales of adversity; and acts of daring, from which the timid adventurer would shrink, become the vehicles of colossal treasures. Here and there a bark is foundered; often intellect and bodily strength become a wreck amidst shattered fortunes and reputation; yet the British character, inured to hardships and storms, conquers all difficulties, and increases in vigour and solidity.

Within the last fifty years the burden of taxation on the wealth and income of the nation has greatly lessened. Whilst in 1801-10, with an estimated total income of 230,000,000l., there were 57,000,000l. of taxes, or, in other words, 25 per cent. of the income, devoted to State purposes; and in 1841, with an income of 450,000,000l., the taxation fell to 53,000,000l., reducing the amount devoted to national purposes to 12 per cent.; now, with an income estimated at 600,000,000l., our average amount of taxation is 63,000,000l., or a little more than 10 per cent. of the income. This is an immense improvement upon the former condition of public finances, and one which is full of promise for future progress.