kind, if we pick out cases in which the reduction has been but small, and where the commodity is subject to considerable fluctuations in price, but it is manifest, that such instances can do nothing to invalidate the general principle. We can also conceive a possible case-though we believe it to be a very rare one, in which the trade might be confined to so small a number of persons, that they night, by combining together, prevent an immediate reduction of price. Such a combination, were it ever practicable, would be necessarily of very short duration; and even this temporary combination might be entirely prevented by refusal on the part of government, to allow the drawback on the stocks on hand. Having concluded this part of our subject, it will be seen, that we are disposed to agree with the Chancellor of the Exchequer, as to the propriety of applying the surplus of our revenue to the reduction of our indirect, rather than of our direct taxation; because, on the one hand, we see scarcely any advantage likely to arise from the abolition of the assessed taxes, beyond the mere relief from so much taxation: whilst on the other, we think, that the reduction of some of our enormously high duties will be productive of considerable benefit to the consumer, at small expense to the revenue; will tend to put an end to all the various evils arising from smuggling and adulteration; will promote an advantageous intercourse with other nations, and may be the means of inducing them to follow in our steps. We are glad, therefore, that the Chancellor of the Exchequer has had sufficient firmness to resist the temptation of sacrificing a sound principle to the acquisition of temporary popularity. At the same time, we think he has acted with discretion in abolishing such of the assessed taxes as were productive of a comparatively trifling profit to the revenue, whilst at the same time, they were inconvenient, or vexatious in their operation, difficult, or expensive in collection, or inexpedient from other considerations not necessary to be here enumerated. Such were the house-tax on houses of a rent not exceeding 101. per annum; the window-tax on houses containing not more than seven windows, and the duties on interior windows, taxed carts, poney-carriages, and various other articles, upon which the total loss to the revenue is estimated at 276,0001. Having thus expressed our concurrence in the general principles which have guided the Chancellor of the Exchequer, we must next consider in detail the cases which it has been thought proper to select for a reduction of duty. We shall first consider the arguments which may be urged, for or against a reduction of duty in these particular instances; and we shall then proceed to notice the case of other highly taxed articles, on which the duty remains undiminished. We shall thus be enabled to determine, as far as is in our power, whether the selection of the Chancellor of the Exchequer has, or has not been judicious. The We shall begin with coffee. duties upon this article were previously to the reduction, as follows:-Upon West India coffee, 1s. per lb.; East India, 1s. 6d.; foreign, 2s. 6d. They have all been reduced one half, by which it is calculated, that the revenue will be diminished to the amount of 150,0001. The principal argument in favour of this reduction, has been deduced from the fact that, since the imposition of the last duty, in 1819, the consumption of coffee has not increased in the same proportion as that of other commodities. This argument derives additional force from the fact, that a cheap, wholesome, and not unpalatable substitute for coffee has been lately introduced; the sanction of the legislature having been obtained for the sale of roasted corn, the use of which was, till lately, prohibited by the construction given by the courts to an act of parliament. There was reason, therefore, to apprehend, that unless the price of coffee could be reduced, its use, amongst a large portion of the community, would be entirely superseded by the introduction of this article. The reduction of the duties on coffee has been further recommended on the ground, that it would be particularly desirable at the present moment, as a boon to the West India interest, who are stated to be labouring under great depression. There is also another advantage attending this measure, which we ought not to pass by unnoticed; which is, that it will tend, in some degree, to place our own possessions in the East and West Indies, as well as foreign countries, on a more equal footing in the production of this commodity. West India coffee previously possessed an advantage of 6d. per lb. over East India, and of 1s. 6d. per lb. over foreign coffee: whereas this advantage is now reduced to 3d. in the one case, and to 9d. in the other. We trust that we shall, ere long, see them reduced to a perfect equality. Protecting duties which prevent the consumer from purchasing in the cheapest market, are always injurious; and it surely admits of a doubt whether it can, in any case, be desirable to attempt to benefit one portion of our dominions at the expence of another. Foreign wines constitute another article which the Chancellor of the Exchequer has selected for a considerable reduction of duty. He has reduced the duty upon French wines from 11s. 5 d. to 6s. per gallon, and upon all other foreign wines from 7s. 7d. to 4s.; and he calculates the consequent loss to the revenue at 230,000l. A very strong argument in favour of the reduction of these duties may be derived from the fact, as stated by the Chancellor of the Exchequer, "that the consumption of wine "in the United Kingdom had not only "not increased, but had, in truth, greatly "fallen off." Important, however, as may be this consideration, there are, we think, still stronger arguments in favour of this desirable measure. Considerable as may be the immediate benefits to the consumer resulting from the reduction of this duty, they are, in our opinion, as nothing, when compared with the advantages of an unrestricted commercial intercourse between this country and France, towards which, we trust, we may regard the present measure as the first step. There are, perhaps, no two countries in the world better suited for an advantageous commercial intercourse, as well by their local situation, as by the nature of their productions, than Great Britain and France. They may be considered as the two most civilized nations of the world; they are situated within a few hours' sail of each other; and at the same time the one is distinguished by peculiar advantages, both natural and acquired, for the maintenance of manufactures; whilst the other abounds in all those natural productions, for which the extent of its territory, the fertility of its soil, and the excellence of its climate so eminently qualify it. With these facts staring them in the face, could it have been believed, that the governments of the two countries could have been so ignorant as to go on, year after year, and century after century, obstinately refusing to avail them elves of any of those advantages which nature seems almost to have thrown into their hands? Almost every page of our history contains records of ruinous wars with France; wars which have, in many cases, been undertaken almost without pretence, and have been continued without any ostensible object, except that of gratifying the mutual antipathies of the two countries. Even when mutual exhaustion has caused a temporary interruption of hostilities, our legislature, instead of taking advantage of any favourable opportunity of cultivating social relations between the two countries, has in general done all in its power to prevent communication between them; and thus the two nations have stood, like two ferocious animals, eyeing each other with mutual hatred, and only watching for the first favourable opportunity to renew the conflict. For a confirmation of our statement we would refer to the discussions in parliament, as late as in the year 1787, and above all, to the speeches of Mr. Fox at that period. It was on that occasion that Mr. Pitt proved himself the first minister since the revolution, who had been able to carry through parliament a commercial treaty with France. It was, however, vehemently opposed, and at the head of the opposition stood Mr. Fox. Now since Mr. Fox has been generally esteemed one of the most enlightened statesmen of his time, and since he was regarded as the head of what has been called the more liberal party in the country, we may consider him, on that occasion, to have spoken the sentiments of a large proportion, if not of the majority of the nation. Yet we repeatedly find him using such language as this: "France was the natural political enemy of Great Britain. What made her so? Not the of those fields had nothing to do with the circummemory of Crecy and Agincourt; the victories stance. It was the overweening pride and boundless ambition of France; her invariable and ardent desire to hold the sway of Europe. being the means to connect, was what should excite And again, " Vicinity of situation, instead of our fear and jealousy t." We have neither room nor inclination to give a studied refutation of the absurd fallacies contained in these few lines.. We shall not, therefore, attempt to shew the folly of the term "natural enemy," nor shall we endeavour to prove how illogical it is to personify the whole changing population of *Fox's Speeches, vol. iii., p. 275, + Ibid. p. 282. an extensive country, and then to attribute | concluded with Portugal so long ago as the year 1703, and according to the provisions of which, we agreed to receive Portuguese wines at a lower duty than those of France, on condition of Portugal's receiving the productions of our woollen manufacture on favourable terms in return. It is unnecessary to prove that such a treaty must be injurious to both parties, inasmuch as it restricts them from having recourse to the cheapest market. It has, nevertheless, been persevered in for upwards of 120 years. According to one of the stipulations, however, a power was reserved to either party, of requiring of 15 years. At the conclusion of the treaty of 1810, such notice is understood to have been given; and we trust, therefore, that our Government will now avail themselves of the opportunity which is thus afforded them, of equalizing the duties upon all foreign wines, as well as abolishing the monopoly of the Oporto Wine Company; a monopoly which is said to have considerably enhanced the prices of Portuguese wines, by limiting the supply. to this imaginary being all the evil which has been perpetrated by a number of successive administrations. We quote these passages only for the sake of proving how great was the influence of these prejudices even over enlightened minds, and at so late a period; and we may perhaps be allowed at the same time to congratulate ourselves, that in this respect, at least, our generation has improved on that of our forefathers. We trust, indeed, that the present inhabitants of this country, have tasted sufficiently of the evils of war; and that they have learned, that it is injurious, not only by the immediate loss and mi-a revision of the treaty, by giving a notice sery which it occasions, but also by its tendency to turn aside the attention both of the Government and of the public, from the reformation of their institutions, and from all other subjects of useful inquiry. We trust that it is needless to caution the people both of this country and of France, to beware for the future, as they value their own happiness and that of their posterity, how they suffer themselves to be misled by the empty sound of military glory. As a first step towards an entire change of ancient feelings, it would be well for the Governments of both countries to do all in their power to promote commercial intercourse between them; much less for the sake of the immediate advantages of the trade, than for the purpose of promoting such a free communication as must gradually remove those disgraceful prejudices, which have been so long injurious to both parties: and because, by thus rendering the two nations dependent upon each other for many of the comforts and luxuries of life, they will make the evils of war more directly and sensibly felt, and consequent ly a commencement of hostilities, more unpopular, amongst all classes of society. It is, therefore, with the greatest satisfaction, that we hail the reduction of a high duty on an article of French production, as we trust that it is intended only as the first step towards an entire change of system. Our readers will remark, that French wines still remain subject to a duty of 50 per cent, higher than that which is imposed upon the wines of Portugal or other countries; and that such inequality is utterly inconsistent with the principles which we have endeavoured to advocate. This inequality was originally caused by the Methuen treaty, which was There is an objection which might be urged, with considerable plausibility, against a reduction of duty on French wines; viz. that the first-rate claret-vineyards are small in extent, and that, consequently, their produce fetches a monopoly price; and that if, therefore, we reduce the duty, we shall not benefit the consumer, but shall only increase the rent of the French landlord. Now we certainly cannot undertake to assert, that this statement may not be true to a certain extent, with regard to a few of the very first-rate wines. that not an hundredth part of the wine which is sold under the names of Lafitte and Chateau Margaux is really produced from those vineyards, and that therefore the monopoly, if it exist at all, is at all events not nearly of the extent which is generally supposed. We may add, that the reduction of duty will, in all proba bility, have the effect of greatly increasing the consumption of the inferior kinds of French wines, which have hitherto been altogether unknown in this country. But it appears, Whilst we are upon the subject of the prices of wine, we would mention, that it would be highly desirable that an ad valorem duty should, if it were practi cable, be substituted for the present fixed We were astonished to hear such sentiments from Mr. Huskisson, as they appear to be altogether opposed to the principles which he usually professes. The price of wine, like that of all other commodities, is determined by circumstances alto and it is both useless and unjust to blame them for obtaining the highest possible price in their power. The fact, on this occasion, appears to have been, that the report of the reduction of the duty produced in the first instance so great an increase in the demand, as to enable the wine-merchants to raise their prices, instead of reducing them: but it was obvious that this rise could only be of very temporary duration, because the increased demand having been caused solely by the hope of a reduction in price, when it was discovered that the price, instead of be ing reduced, had risen, the demand would of course be checked and subsequently diminished. And thus it was found, as might have been predicted, that the evil corrected itself, and that prices fell to their proper level. duty per gallon. We have already said enough upon the disadvantages of inequality of taxation, in the early part of this essay; it is therefore only necessary to add, that by the present mode of collection, the duty increases in but a very small proportion the price of the more ex-gether independent of the merchants; pensive wines, whilst it has the effect of entirely excluding the inferior sorts from the British market; and we need scarcely state, that if tolerably good wine could be purchased at one or two shillings a bottle, the consumption would, in all probability, be equally increased, and a considerable addition would be made to the luxuries of a large class of the community. Without an acquaintance with the practical details of taxation, it would of course be presumptuous to give a decided opinion as to the practicability of imposing an ad valorem duty upon this article. Since, however, we believe that it is at present usual to taste all wines which pass through the Custom-house, in order to ascertain that they are really the produce of the country from which they profess to be imported, we would ask, whether a plan might not be adopted with regard to wine, similar to that which is at present practised in the case of certain other articles which pay an ad valorem duty; that is, that a taster should be employed on the part of Government, that the importer should be required to fix a value upon the wine, and that Governnent should have the option either of re-derable capital has been invested in their ceiving the ad valorem duty, or of purch sing the wine at this valuation. Before concluding our observations on the wine duties, we must advert to what we consider a very unwarranted attack which has been made upon the winemerchants, both by Mr. Brougham and by Mr. Huskisson. Mr. Brougham stated in the House of Commons, that "On the morning following the night on which the Chancellor of the Exchequer had announced his intention of taking off 201. per hogshead from the duties on French claret, he heard that the honest class of his Majesty's subjects, who were employed in selling wine to the rest of his Majesty's subjects, had raised the price of the same wine 101. per hogshead*." And on the same night Mr. Huskisson stated, that "He had heard, with considerable indignation (hear, hear), that the wine-merchants had, some how or other, managed, within these few days, to double their stocks, and to raise the price in a ratio about equal to the amount of the reduction of duty (hear, hear) t.' There has been some discussion in the House of Commons, during the last session, as to the propriety of reducing the duties upon Cape wines. It has been urged with some force by Mr. Hume, that since the duties upon Cape wines have hitherto been only one-third of those upon Portuguese, and since coni cultivation, in the confident expectation of a continuance of the protection, the Cape cultivator would be unjustly treated, if no corresponding reduction were granted to him. It has been maintained, on the other side, that no actual promise has ever been made, and that all protections of this kind are inconsistent with the principles on which Government is at present acting. The Chancellor of the Exchequer has steered a middle course; he has granted a reduction of duty upon Cape wines, from 2s. 6d. to 2s. per gallon, such reduction to continue till the year 1830. The question was one of considerable difficulty, and we know not that a better plan could have been adopted. We have in this instance only another proof, that it is not one of the least evils of deviating from the true path of equality of taxation, that we can seldom return to it without doing injury to some existing interest. The article upon which the Chancellor | loss to the revenue is estimated at only of the Exchequer has afforded the greatest 20,0001, reduction of taxation is that of spirits; as Having now examined separately the he calculates that the loss to the revenue case of each of those articles which the arising from the diminution of duty will Chancellor of the Exchequer has selected amount to no less a sum than 750,000l. for a reduction of duty, we must, in the The enormous evils that were caused by next place, notice certain other highly the smuggling of spirits and by illicit dis- taxed commodities, in respect to which, tillation, especially in Ireland, are too well | according to many speakers, the claims known to require any enumeration in this should have been considered as more urplace. Accordingly, in the preceding gent. The principal of these are tobacco, session of parliament, it was determined soap and candles, and tea, It is stated to make a reduction of duty upon Scotch by Mr. Hart Davis, that the duty on toand Irish spirits, from 5s. 6d. to 2s, per bacco is not less than 1200 per cent. upon gallon, and this reduction has been attend- its original value, and that the revenue ed by the happiest effects. Now it was derived from it had not increased as it obviously absurd, when the duty was only ought to have done. There appears to 23. in Scotland and Ireland, to retain it be no doubt that this high duty has been at the high rate of 10s. 6d. in England; the cause that the consumption of tobacco and, accordingly, the Chancellor of the in this country is so much less than on the Exchequer has determined to reduce it in continent, The duty upon soap and the first instance to 5s. 10d,; and also to candles amounts to 120 per cent., and it throw the trade more open, by allowing is stated by Mr. Sykes, the member for the use of smaller stills than were per- Hull, that there is great reason to suppose mitted heretofore, and by removing cer- that the articles, or their raw materials, are tain other restrictions on the manufacture. the objects of extensive smuggling. The We have heard of no objections against duty upon tea is nominally 100 per cent.; this desirable measure, except one which but, in fact, it is much more. The East India has been advanced by Mr. Wm. Smith; Company possess an entire monopoly of which is, that the reduction of the duty this article, and it is found by a compaon spirits would, by diminishing the price, rison of the prices at which tea has been tend to encourage the vice of drunkenness sold at their sales in London, and those amongst the lower orders. To this it has at which it may be purchased on the conbeen replied by Mr. Hume, that in France, tinent, that the people of this country Holland, and the United States of Ame- pay, as consumers of tea, a tax of uprica, where spirits are cheap, drunkenness wards of two millions annually for the is comparatively unknown. We might sole profit of the East India Company *; add, that, even if we allow the force of and since the ad valorem duty to GovernMr. Smith's argument to its fullest extent, ment is charged upon the price so increaswe should still be of opinion that the ened by this tax, it is obvious that it is in couragement which high duties afford to reality much more than 100 per cent. smuggling is far more injurious to the There is every reason to suppose that morals of the people, than the effect of much smuggling must be caused by so low duties in rendering the means of in-high a duty, and we know from the retoxication cheaper: we cannot, moreover, peated convictions, that the adulteration but believe, that the only effectual mode of of tea has been carried on to a very great promoting morality is by the diffusion of extent. knowledge, and that those persons take a very narrow view of the subject who would enforce its practice by sumptuary laws or compulsory enactments. The cider duties have been reduced from 30s. per hogshead to 10s. This reduc. tion is highly desirable, inasmuch as cider is the liquor ordinarily drunk by the population of six counties, throughout which it is notorious that smuggling has been carried on to a considerable extent. The Now it is manifest, that so long as any commodities are taxed to such a high degree as in the instances which we have given, the prevention of smuggling must be impossible, and the exertions, both of the Chancellor of the Exchequer and of the President of the Board of Trade, towards this desirable end, must be attended with but imperfect success. At the same time we admit, that it is not possible to do * See Ed. Review, vol. xxxix. p. 450. |