an exact transcript of the existing Act | vindication of his Bill on two very distinct which their Lordships had already dis- grounds. He has rested it first on the cussed, and approved of on former occa- necessity, in which I cordially concur with sions; the only deviation from it being an him, of maintaining the public credit, and alteration by which tenants occupying land on the consequent impossibility of diswho conceived that their profits were over- pensing with the whole amount of the incharged by what was originally considered come tax in the present state of the rean advantageous arrangement in their venue, at least in the course of the present favour, namely, assessing them upon half year. He has also rested it on another the amount of their rent, would have the consideration, with respect to which I option, admitting the possibility of altered must take leave altogether to dissent from circumstances having made their pro- the noble Marquess, namely, the expedifits fall short of that half of their rent, ency of what he calls developing and furof putting themselves under the schedules ther extending your present commercial of trades and professions, and of proving system, and still further facilitating the to the Commissioners that their profits had importation of those articles of foreign fallen short of the assumed amount. The produce, the extensive, exorbitant, and distressed farmer by this means would unchecked importation of which has alhave the opportunity of making the case ready brought so much ruin on this counof his distress good; and the amount of try. But I am not desirous of taking relief which he would derive would be pro- this opportunity of entering into a general portionate to that distress. He was not discussion of the commercial policy of the aware that it would be practicable, by any noble Marques and of Her Majesty's Goadjustment, to render the operation of the vernment, because we are now, in point tax more equable. Undoubtedly, the tax of fact, in a position in which we have no did press somewhat more heavily on per- option as to the course we should pursue. sons exercising trades and professions than We have brought up to us a Bill, the passon any other class; but it was fair, at the ing of which in some shape is, I am ready same time, to remember that, if they were to admit, necessary for the maintenance of in this respect more heavily burdened, they the credit of the country. Apart from all were precisely that class of persons who, other considerations, I am not the person from the remission of general taxation which to contend, nor ever contended, nor shall I the income tax alone had enabled the Go- now contend, that in the course of this vernment to effect, were now able to get year-nor can I honestly say that in the their provisions cheaper, and to make their course of the next year-will it be incomes go farther as to the amount of possible, in my belief, to dispense with comforts and luxuries which they could pur- the continuance of a certain portion of chase. The income tax was therefore now the income tax. And I hope I need proposed by this Bill to be renewed for one not say for myself, and for those with year, with the view of having the whole whom I act, that no consideration would subject reconsidered; and he could hardly induce us to sanction that rash and reckdoubt that in the present state of the less reduction of taxation which would finances, and having due regard to the leave the Government in a position not to safety of the public credit, as well as to meet the engagements of the State. I the development of the commerce and say that under no circumstances do I manufactures of the country, which were believe we could in the course of the prenow in a rapid state of development, and sent year repeal the whole of the existing which might be carried further still by income tax. Your Lordships are placed persevering in the same course of policy in discussing this subject in a position he could not doubt, he repeated, that on differing from that of the other House of both of these great and important con- Parliament; because when a Bill of this siderations their Lordships would assent to kind is brought before you, you are not in the second reading of the Bill which had a position, with a regard to the privileges come up from the other House of Parlia- of the other House, to amend, or alter, or ment, proposing that the income tax should modify it in the slightest degree. The be continued for one year. The noble single question which is submitted to your Marquess concluded by moving that the Lordships' consideration is this-whether Bill be now read a Second Time. you will adopt the modified income tax now proposed to you for the term of a single year, after the other House of Par

LORD STANLEY said: The noble Marques who has just sat down has rested the

may

liament has avowed its intention of inquir-real or apparent injustice to individuals; ing into the irregularities and imperfec- there must be anomalies in theory, and tions of the measure, or whether you will inequalities in practice. I do not mean reject the Bill altogether, and therewith that the anomalies of the present law reject the means of producing a revenue of not be modified or diminished; but I agree between 5,000,000l. and 6,000,000l., and with the noble Marquess, that by no alteraso convert a surplus of about 2,500,000l. tion of the Bill can you impose a perfectly into a deficiency of a similar amount? Now, just, or even a reasonably just, measure. between these two propositions I conceive It is for this reason I rather agree with the that there cannot be a moment's hesitation. theoretical objections of the noble Marquess In my mind there is none, and I believe to the tax, than I concur in the practical there can be none in the mind of any of adoption of the course which he recomyour Lordships. When I say we are de- mends. I find that Her Majesty's Gobarred from considering any modification vernment seem disposed to continue this of this Bill, your Lordships have a striking anomalous and unjust measure—not as proof of that statement in the fact that originally proposed by the late Sir Robert you are actually compelled to pass the Peel-not as a temporary measure to meet measure in a shape which reflects no credit a temporary deficiency in the revenue-but on the "blundering" legislation of Par- as a real, permanent, and substantial inliament. The noble Earl (Earl Grey) says corporation on the taxation of this country that a "blunder" has been committed in for the purpose of effecting what the noble the Bill, which, while it is proposed that it Marquess calls a development of our existing should be passed for a single year, con- commercial system. That which I take the tains an enactment applicable to the last House of Commons to have decided is this year of that term of one single year; and not that the income tax shall not be rethe noble Marquess (the Marquess of Lans- newed in any case at the expiration of a downe) says that that is a blunder intro-year-not even that if it be found impracduced by the Amendment of an individual ticable to amend or remove the anomalies Member of the other House. Now I must of the present tax, that tax, or at least a take leave to differ from the noble Marquess portion of it, shall not be continued; but upon that point. The blunder is conse- I take the House of Commons to have dequent on the introduction of the Amend- cided, and as I think decided wisely, that ment; but the blunder was not in the they will compel a reconsideration of this Amendment itself. It is a blunder made question at the expiration of one year, and by the Government, who, having acceded that they will not leave the Government to the Amendment, or having had it forced in such a state of security with respect upon them, did not look to the context of to this large portion of the revenue as to the Bill, and did not take care that the induce them to proceed in that reckless remaining clauses of the Bill were in ac- course of disposing of every petty surplus cordance with the Amendment. But we in such a way as indefinitely to postpone must pass this Bill, blundering and non- the period at which the tax might be altosensical as it is, or we must pass no Bill gether done away with. They have decided at all. We must pass this Bill, or leave also, and as I think decided wisely, that the country without a revenue sufficient during the year for which the tax is for the public service. Now I do not hesi- granted, they will inquire whether they tate to say that I, for one, do not feel jus- can mitigate or reduce the many pressing tified in opposing the passing of the Bill; grievances and inequalities of the tax as and between the two alternatives before it now exists. I confess I much revery me, I feel it my duty to assent to the gret the course adopted by the House of adoption of the measure. I must also Commons in one respect. I confess I very concur, to a certain extent, in the opinion much regret that they did not adopt the expressed by the noble Marquess, that do proposal made by a right hon. Friend of what you will, and whatever may be the mine (Mr. Herries), namely, to begin at ingenuity of Committees of this or of the once with getting rid of a portion of this other House of Parliament, it will be im- unjust and oppressive tax, either by an possible, in any manner, so to modify or alteration of those schedules which act amend this tax as to do away with all the most oppressively, or by a reduction pro irregularities and imperfections that must tanto in the whole of the tax. I regret be found in an income tax. However mo-that they did not begin by diminishing the dified or arranged it may be, there must be pressure and amount of the tax, by apply

Lord Stanley

formation we have received up to a very weight otherwise I know not why the recent period, there does not appear to be man who resides in a 201. house should any indication of a fall in the price of fo- be subject to the tax, while a man who rereign timber in the slightest degree com- sides in a 107. house, and as such is enmensurate with the reduction of the duty. titled to a vote, should be exempted from In this as in other cases, the price of the it, or how the Government can justify article is rising in the place of its produc- saddling so large an amount of taxation tion, and that which you sacrifice in the upon so small a body, and exempt from it shape of revenue here, goes to a very con- 100,000 out of the 500,000 at present siderable extent to increase the profits of paying it. I think that, without sacrificing the foreign producer. But, as I said before, the revenue, you might have obtained to a I do not mean to enter at present into a great degree the sanitary objects you have general discussion of our commercial policy, in view. I believe that by the conversion as I am aware that such a discussion could of the window tax into a house tax, presslead to no practical conclusion. There is ing on the same amount of property, and one question, however, to which the noble the same number of houses, you might Marquess has referred, on which I wish to have effected the change without any loss say a word. The noble Marquess took to the revenue, and without any injustice great credit to the Government for the re- to individuals; or you might even retain duction of one denomination of direct taxa- for the present the window tax, and enable tion, by which he considers that a great parties who are now liable to that tax to boon in a sanitary sense, as well as in a compound for the present amount, and perfinancial sense, will be bestowed on a large mit them to open hereafter any number of portion of the community. Now, I am not windows they might think proper without going here to say that I believe the mode being subject to the inquisitorial visit of the in which the window tax operates is advan- tax-gatherer. I do regret that Her Matageous, or that it is not fraught with very jesty's Government should be proceeding serious evil; but I do say that when the on what I think a vicious principle, namely, noble Marquess takes credit to himself, that while they profess that the income tax and to Her Majesty's Government, for do- is but a temporary measure only, they ing away with the window tax, I must re- should year by year continue disposing mind him that to a great extent they pro- of every small surplus as it arises; taking pose to charge a similar tax on the same off taxes the relief from which will not be portion of the community, by the substitu- felt; taking off taxes which will be attendtion of a house tax for the window tax, that ed with a loss to the revenue, and conferportion of the community being but a small ring a boon principally on the foreign proportion of the whole population of the ducer, and so continually bringing down country. I believe the window tax was the revenue to balance expenditure, that it chargeable on something like 500,000 is hopeless that in any one year you can houses; while the proposed house tax will have a surplus sufficient to enable you to be chargeable on 400,000 only; and there- remove the income tax. Her Majesty's fore, although there is to be a reduction Government may make what professions in point of amount by the conversion of the they may think fit-they may make what tax, there is still to be a direct tax charged, declarations against the income tax they not upon windows, but upon houses with may please the country will judge of windows in them, exempting a small por- their sincerity not by their professions but tion of the former number. I do not know by their practice; and however strongly why that exemption is made. I know not they may condemn the tax in theory, if why you should sacrifice the revenue for the people of this country see that year by the purpose of exempting just that class year they are taking steps, by their mode who claim to exercise the elective franchise, of disposing of every surplus, which will which has always been supposed to be cor- render it impossible for them to remove relative to taxation. I know not why you that tax, they will come to the not unsacrifice gratuitously the amount of taxa- natural conclusion that, however theoreti tion you might obtain by extending the cally Her Majesty's Government may obtax to all the houses which were subject to ject to it, practically they mean to continue the window tax. That exemption may be it as a permanent tax, and to incorporate very convenient to the constituents of some to a greater extent than has ever yet been of the metropolitan Members, and that in-done a system of direct taxation as the fluence may not have been without its basis of our financial policy. These are

Lord Stanley