window tax. In April the Chancellor of the Exchequer, Lord Althorp, brought in his budget. By careful economy, the abolition of sinecures, and the reduction of the public expenses, he was able to show a surplus of about a million and a half after replacing the deficit of the former year. This surplus he intended to employ in reducing some taxes which he regarded as particularly heavy, such as those on soap, on marine insurances, and some of the assessed taxes. But he impartially refused to listen either to the outcry of the towns for the abolition of the house and window tax, or to the clamours of the agriculturists against the malt tax; he regarded them both as necessary sources of revenue. The carelessness of Government subjected it to a temporary defeat on a subsequent motion for the reduction of the malt tax to one half. Though the defeat caused great irritation to the ministers it was speedily retrieved. A motion against the house and window tax was also brought in, and Lord Althorp, in opposing it, argued that the removal of either tax alone would be an unfair advantage to one or other of the rival interests, and that the removal of both was impossible; he introduced an amendment to the effect that the reduction of the malt tax and the repeal of the house tax would necessitate a general property and income tax, and a change in our financial system. As this amendment was carried, both the taxes were retained; but the ministers could not but feel that they owed their success to the support of their enemies, and the popular indignation was great. Hobhouse, unable to vote against Government, and thus to redeem his pledge, felt it incumbent on him to resign both his place and seat. On appealing again to his constituents at Westminster he was rejected for Colonel de Lacy Evans, a more advanced Liberal. The same thing happened in the cases of Dr. Lushington and Mr. William Brown in the Tower Hamlets and Southwark. A great indignation meeting, attended with some violence, was held near Coldbath Fields, and several great towns passed resolutions to the effect, that the ministers, by violating the constitution of Ireland, refusing to inquire into the public distress, continuing the house and window tax, and by forcing the whole malt tax, already once repealed, upon the nation, had betrayed the confidence of the people.

Weakness of

Thus in all directions the power of the Government was decreasing; they were divided among themselves, and gradually the ministry. losing the popularity of the country. Yet they were still able to carry out successfully some of the duties they had set themselves to perform; before the close of the session they had

1833)

RENEWAL OF THE BANK CHARTER

1441

renewed the Bank charter, settled the affairs of the East India Company, and completed the emancipation of the slaves.

Renewal of the

June.

The last renewal of the Bank charter had been in 1800; since then events of the greatest importance with regard to currency and credit had taken place, the resumption Bank charter. of cash payments at the close of the war, and the great commercial crisis of 1825 and 1826. It was felt that the system of the Bank required close examination, and in May 1832 a very influential committee had been appointed to examine it preparatory to the renewal of the charter, which came to an end in August 1833. Upon the information gained by this committee the ministerial propositions were based. On the whole it appeared clear that a single bank of issue was better than several competing banks. The Bank was therefore to retain its monopoly. The principle of the Directors, that a third of the value of their obligations should be kept in hand in specie, was considered sound; but that the public might in future have control of the issue of notes, the Bank was required to publish a weekly account of its notes and deposits, and a quarterly average showing its general condition. No other bank of more than six partners, within sixty-five miles of London, was to be allowed to issue paper, while notes of the Bank of England and its branches were made legal tender, except at the bank from which they were issued. It was hoped by this means that country banks, being able to meet their demands with bank notes, would be saved from the necessity of making large and rapid demands upon the Bank of England, and thus dangerously lessening the supply of gold. The whole sum due from the Government to the Bank, and from which that institution derived its great credit, was fourteen millions. This was regarded as too much; it was to be reduced to eleven millions, twenty-five per cent. being at once repaid to the Bank, while to balance its advantages the Bank was to receive £120,000 a year less than hitherto for the management of the National Debt. On these terms the charter was to be renewed for twenty-one years, but with an option allowed to Government for breaking it off on a year's notice after eleven years. The two points which met with the greatest opposition were the terms which the Government had made with the Bank and the com

pulsory currency given to bank notes. On the first of these points it seemed almost unanimously felt that the Bank had made too good a bargain; on the second it was hastily urged by many that it was a partial resumption of the inconvertible currency. It was shown without much difficulty that this was not the case, as the Bank of

England was bound ultimately to meet its liabilities in gold; but even Sir Robert Peel objected to the measure, avowing his fear that it would cause a depreciation of the paper. Experience has proved that this fear was groundless, and although the arrangements with the Bank had subsequently to be somewhat modified, the Bill passed, and was a distinct advantage.

Settlement of
the East India

Company.
July.

Company.

But, if it had been thought well to continue the monopoly of the great banking corporation in England, the whole force of the commercial feeling of the time set directly against the perpetuation of the monopoly of the East India The necessity for corporate trading had disappeared. The restrictions it laid upon free trade had become only so many obstacles in the way of extended commerce. Already, in 1813, this had been so clearly felt that the merchants of the great trading centres, Liverpool, Glasgow, Paisley, and Manchester, had succeeded in procuring the admission of traders to the territories of the Company, and to India generally, but the corporation still retained the trade with China. The accounts of the Company after this renewal of its charter rendered it plain that it could not compete with private merchants. It seemed clear that in China, as in India, the destruction of the monopoly would extend commerce. It was therefore determined to destroy the Company as a commercial body, allowing it to keep its territorial position. After April 1834 its commercial property was to be sold. It was, however, to retain the government of India, and to receive for forty years an annuity from the Indian revenue of £630,000, at the close of which period Parliament might redeem it by the payment of £12,000,000. It was further arranged that all restrictions in the way of the settlement of Europeans in the East should be removed, that natives and Europeans should have equal opportunities of employment and office, and should be under one law. The Bill was vehemently opposed by Lord Ellenborough, but was carried by large majorities, and proved to be the means of opening, in accordance with the principles of free trade, an enormous market for English commerce, so that in ten years the Chinese trade had doubled, and British exports to India and Ceylon had increased from two to six millions.

Emancipation

But the most important measure of the session was the Bill which was passed on the 30th of August for the emancipation of the slaves. The abolitionists had been successful in 1807 in putting an end to the traffic in slaves, but though raised in value and lessened in number, by means of smuggling

of the slaves. Aug.

1823]

STATE OF THE WEST INDIA TRADE

West India
Islands.

1443

and of the natural increase of the race the supply of human cattle had been kept up and slavery had continued. The Resolutions of 1823 had aimed at the gradual extinction of slavery, at alleviating its worst horrors, and raising the slaves to a fitting condition to receive freedom; but they had practically been inoperative: not only had they been continually thwarted by the Condition of planters, but the discovery that they had rights, and trade in the that those rights were acknowledged, caused a very natural uneasiness among the slaves, and had added greatly to the difficulties under which the planters laboured. Their position was constantly becoming worse. Injudicious protection had been afforded to sugar, their chief production. Enormous duties had been laid on it, with a preference always to the West Indian and slavegrown article. During the war the monopoly of production had fallen chiefly into their hands. They had been able to make enormous profits. As a consequence, just as in the case of corn in England, the cultivation of the sugar-cane had been carried on in the most reckless fashion. Plantations were temporarily occupied only to be exhausted or sold at a heavy loss, and fresh land taken in. In the midst of this false prosperity, a wasteful expenditure and a total want of economy, the natural consequences of easily-gotten wealth, had become prevalent; the planters as a body had become deeply involved. The cessation of the war had admitted other competitors to the market. The commercial crisis in England had seriously affected the planters' credit, and just as the greatest efforts would have been necessary to restore them at all to their old state of prosperity, their supply of slaves was diminished, it became more difficult to work their exhausted land, and the Resolutions of 1823, and subsequent orders in Council, made the employment of slave labour, which economists had long known to be really an extravagant form of labour, more and more difficult. These evils were naturally attributed to the abolitionists in England and to the Government which had even partially listened to them. As long as the unreformed Parliament existed, the West Indian interest was very strong in the House, and the planters, who believed that with some help from England, and with the management of the slaves left in their own hands, they might yet retrieve their position, were not without hopes. The accession of the Grey ministry was a heavy blow to them, for a large section of the supporters of the Government were almost as anxious for the abolition of slavery as for the passage of the Reform Bill, and it was impossible that a ministry of

which Lord Brougham was the Chancellor, who had owed his last election chiefly to the abolitionists' votes, should postpone the settlement of the question long.

Opposition of the planters

to the orders in Council. 1831.

The conduct of the planters forced on the crisis. A new series of orders in Council was issued in 1831 for the better and more merciful management of the slaves, for the limitation of the hours of labour, and for the establishment of official slave-overseers. All the colonies except the Crown colonies, where but little difficulty was met with, resented highly this interference with what they considered their rights and property. The language of their assemblies became disrespectful and almost rebellious. In Trinidad it was determined to stop the payment of taxes till the order was repealed, while on the other side the slaves in Jamaica burst into open rebellion, producing a loss estimated at £1,000,000. In April 1831, a great meeting in London declared that Government was liable for these losses, and claims were sent in to the Colonial Secretary for damages caused by the measures pursued by his Majesty's ministers. It was a sort of declaration of war, which was brought to a point when, on the 17th of April, Lord Harewood presented a petition from the West India interest begging for a full inquiry into the laws, usages, and condition of the West Indian colonies, and the possible future improvements, with due regard always to the rights of private property. This was in the very heat of the discussions on the Reform Bill. Bent upon his great measure, Lord Grey could not afford to risk anything at the moment. He therefore not only at once granted the committee, but allowed a sum of £100,000, which had been voted for the relief of the colonies, to be raised to £1,000,000 on account of a late destructive hurricane. On the 24th of May Sir Fowell Buxton, the leader of the abolitionists, brought the matter before the Lower House, while the Chancellor presented a gigantic petition, followed by many others, in favour of emancipation; for the great crisis was now over, Wellington's efforts to form a Government had proved futile, and the hope of the abolitionists were consequently high. But, somewhat strangely, Lord Althorp could not be induced in the Lower House to give up Canning's idea of gradual emancipation, and moved and carried amendments upon Buxton's motion in favour of the continuance of the policy of 1823. It must be remembered that the House of Commons was still unreformed, and that the great Bill was not yet carried.

With the change in the character of the House all prudential