Zf- (THE LIFE OF JAMES DEACON HUME, SECRETARY OF THE BOARD OF TRADE. CHARLES BADHAM, M.A. " He embraced at .a very early period the soundest principle* of commercial policy. The history of the Board of Trade from the time of Mr. Huskisson to the clow of Mr. Deacon Home's services at that Board may be considered as the history of Mr. Deacon Home himself, for he was the life and soul of that department : and every Hood measure which was adopted in rapid succession at that period, either received his earnest support, or may be traced to his wise suggestion." SIR JAXKS G&ABAM. LONDON: SMITH, ELDER AND CO., 65, CORNHILL. 1859. Right of Trantlation ii merved. " With a masculine understanding, and a stout and resolute heart, he had application undissipated and unwearied. He took public business, not as a duty which he was to fulfil, but as a pleasure he was to enjoy; and he seemed to hare little delight except in what in some way related to the public service." BURKE ox GEORGE GRENVIU.E. " It is my deliberate opinion that Mr. Deacon Hume's Consolida- tion of the Laws of the Customs, in its original form, was a master- piece of legislative skill. Writing on a subject with which he was profoundly conversant, he succeeded in the invention of a legal style, so clear, and so popular, that every one readily seized his meaning; nor can I remember a single appeal to the Courts of Westminster to ascertain it, so long us he continued in office." THE BIGHT How. SIR JAMES STEPHEN. " The publication of his Life will vindicate his better claim to a great share in the introduction of an improved system of finance, and to commercial intercourse- upon true principles, than that of many others who are too generally thought to be exclusively entitled to public gratitude for the reformation. He was the patient and efficient investigator in the preliminary inquiries to the enactment of our free trade code, and cleared the way for the success of those who followed him, in completing the great work by legislation. "- THE RICUT HON. EDWARD ELLICE. i. an rv , ERRATA. Page 20, line 12, for " want" read ' wants." Page 251, line 18, for "proportion" read " proposition." Page 302, line 14, for " in its doctrines" read " its doctrines in. CONTENTS. PAOK PREFACE , iz CHAPTER L Unacknowledged statesmen Birth, education, and early life of James Deacon Hume I CHAPTER II. Mr. Deacon Hume consolidates the laws of the Customs He becomes Joint Secretary of the Board of Trade Death of Mr. Huskisson -21 CHAPTER HI. Fauntleroy Mr. Deacon Hume discovers his forgeries Remarks of Sir Robert Peel 35 CHAPTER IV. Corn Laws and Currency Letters in the Morning Chronicle, in 1833, signed "H. B. T." 5.1 CHAPTER V. Alteration in the laws relating to silk Mr. Deacon Hume ruits the principal seats of manufacture Political opinions vi CONTENTS. PAGE Evidence before a Select Committee of the Houae of Commons Mr. Huskissun Manchester Chamber of Com- merce Mr. Deacon Hume's statements respecting smuggling canvassed in Parliament by the Earl of Derby . . .129 CHAPTER VL Education The Political Economy Club Agriculture Currency Politics 157 CHAPTER VIL Life Insurance The Atlas The Customs' Benevolent Fund . 179 CHAPTER VHI. Duties on timber An essay by Mr. Deacon Hume on the same subject, reprinted from the " British and Foreign Quarterly Review" 198 CHAPTER IX. Mr. Deacon Hume retires from the Board of Trade Resides at Reigate Sir Robert Peel's request often complied with Mr. Hume succeeded by Mr. Macgregor The former suggests the appointment of a Select Committee on the Import Duties Mr. Macgregor His evidence Mr. Deacon Hume's evidence Remarkable passages .... 238 CHAPTER X. The evil effects of protecting duties upon morals and civilization The London coffee-houses 270 CHAPTER XI. Notions on biography Mr. Disraeli quoted Sir Robert Peel's sympathy with the creations of others His respect for Mr. Deacon Hume's opinions on finance His influence CONTENTS. vii PAGE Difficulties Exertions Mr. Hume's soheme for life insurance for the working classes His usefulness His unostentatious career His death Sir Robert Peel's allusion to it in Par- liament 292 CHAPTER XIL Parallel between Mr. Hume and Mr. Clarkson David Hume His Political Discourses Forestalling and regrating Remarks of Lord John Russell Free Trade doctrines of English, not of French origin Mr. Hume's long-continued exertions His caution Application of principles The Anti- Corn Law League Mr. Cobden Sir Robert Peel's advances The opposition he encountered Free trade, at first, not a party question Sir Robert Peel's statement Mr. Gladstone quoted Corn Laws repealed Benefits resulting Navigation Laws repealed Reply to questions proposed in 1858 by the French Minister of Agriculture and Commerce Burton's Life of David Hume quoted Mr. Macgregor .... 299 CHAPTER XIIL Mr. Deacon Hume's productions, oral and written He purposed to collect and reprint them His intellectual powers Interesting testimonies of Sir James Stephen, of Mr. Ewart, Mr. J. B. Smith, Sir James Graham, Mr. Ellice, Mr. Cobden, and Mr. Labouchere Mr. Hume's labours Influence Personal character Habits Concluding remarks . . 330 IT was not until this volume was printed that the Author met with the following passage, referred to at the twenty-fourth page. " The task (of consolidating the Customs' laws) was of great magnitude, but we did not shrink from it. I am free to admit, that we never could have succeeded in our undertaking without the assistance of a gentleman in the service of the Customs, a gentleman of the most unwearied diligence, and who is entitled, for his persevering exertions, and the benefit he has conferred on the commercial world, to the lasting gratitude of the country. In the performance of this duty we had innumerable difficulties to encounter, and battles without end to fight. And now, sir, in one little volume which I bold in my hand, arc comprised all the laws at present in existence on the subject of the management and the revenue of the Customs, of navigation, of smuggling, of warehousing, and of our colonial trade, compressed in so clear and yet so comprehensive a manner, that no man can possibly mistake the meaning or the application." Mr. Hume's volume " is the perfection of codification." HUSKIBSON. PREFACE. THE first page of this volume, if it be read with the last, will sufficiently describe its object, as well as the spirit in which it has been written. It records the life of a remarkable man, whose days were devoted to the public service, and who was, to no inconsiderable extent, a benefactor to his country. An endeavour to afford some insight into the life and labours of those who are engaged in the important, though subordinate official service of the State, has, and it is saying much at the present day, somewhat of novelty to recommend it. We have lives of the unavoidably more conspicuous portion of public men ; and not too many even of these. It is a fate to be deprecated that any of the world's benefactors should pass from the world with their histories unrecorded. And yet this is not unfrequently the case. There is no popular life of Watt, and an adequate biography of Huskisson has yet to be accomplished. As far, how- ever, as the last mentioned is concerned, there will be a time for such a work. This volume will necessarily indicate, incidentally, X . PREFACE. the changes which have gradually taken place of late years in our commercial policy. It will, the writer hopes, not very imperfectly mark the steps which led at last to the abandonment in principle, and to a very considerable degree in practice, of the long tried experi- ment of commercial restriction, for the annihilation of which the subject of these pages toiled with noontide energy for a period of fifty years. Those who presuppose that the life of a political economist must necessarily, except to a very limited number of readers, be void of interest, will, it is believed in this instance, find themselves mistaken. The suc- ceeding pages may haply also be the means of inducing some persons to look with more complacency than they have hitherto done upon the science of political economy a science the practical end and object of which is to show how industry may be employed to the best advantage, or how, with the least labour, and the least waste of materials, the greatest amount of comfort and enjoyment may be created for mankind. So far from this being a subject for the few, it is eminently a subject for the many; it is one which now is, and ought to be, taught in schools, and of which no one should be permitted to remain in igno- rance.* When it is borne in mind how greatly not only * The Committee of Council on Education have placed some very useful elementary books on Political Economy upon their list for the use of schools which are aided by Parliamentary grant. PREFACE. xi the commercial prosperity, but the social and individual comforts of the community are affected by a well or ill-regulated tariff that its effects for good or for evil are felt all the world over, it must be clear that the subject is essentially a popular one, and worth any amount of pains that may be bestowed upon it. " The doctrines of political economy may admit of exceptions, but never of refutation." * The remarks of a well-known writer upon the subject are not much too strong where he says, " the proper business of every man, and every hour, is to know as much as he can of political economy. This is the education which must enable him to keep the benefit of his labours for himself.* It has, indeed, been defined to be the science of preventing our betters from defrauding us, which is sufficient to account for its being eagerly pursued on the one hand, and vilified on the other." Coleridge, while he admitted that the great principles of commerce require the interchange of commodities to be free, allowed himself to speak disparagingly of political economy as a science : and the language which he employed has, unfortunately, found imitators in influential quarters. To say that " the tendency of modern political economy is to denationalize," and that " it would dig up the charcoal foundations of the Temple of Ephesus to burn as fuel for a steam engine," f * Lord John RusaelL f " Table Talk," TO!, ii., p. 327. XII PREFACE. is, undoubtedly, excellent as a caricature, and if ridicule were the test of truth, it might be deemed conclusive. Notwithstanding the dictum of a learned lawyer, who is an authority in his profession, surely a collection of truths ascertained by experiment, and upon which well- informed men are generally agreed, must be considered as a science. It may not be a perfect science, for much probably " remains to be discovered by experience and observation." It has been confidently maintained that the study of it is the highest exercise of the human mind, and that the exact sciences require by no means so hard an effort. Let no one, however, on this account be discouraged in its pursuit. Notwithstanding the well-known lines of Pope, " a little knowledge," so far from being " dangerous," is a great deal better than none at all, upon this, as well as upon almost every other, subject And here the author cannot forbear expressing the obligation which he conceives the great mass of English readers lie under to Lord Brougham, for the admirable and interesting lives of David Hume and Adam Smith which he has given to the world. For inducements to read the " Political Discourses " of the first-mentioned writer, the earliest " refutation of the errors which had so long prevailed in commercial policy, and the first philosophical, as well as practical, exposition of those sound principles which ought to be the guide of states- PREFACE. xiii men in their arrangements, as well as of philosophers in their speculations, upon this important subject," he must refer to the biography itself. With respect to Dr. Smith's "Wealth of Nations," he will at once secure the thanks of the reader, if he has not already met with the " Lives, " by inserting here Lord Brougham's testimony to what he justly terms its "prodigious merits." " The ' Wealth of Nations ' combines both the sound and enlightened views which had distinguished the detached pieces of the French and Italian economists, and, above all, of David Hume, with the great merit of embracing the whole subject ; thus bringing the general scope of the principles into view, illustrating all the parts of the inquiry by their combined relations, and confirming their soundness in each instance by their application to the others. " It is a lesser, but a very important merit, that the style of the writing is truly admirable. There is not a book of better English to be anywhere found. The language is simple, clear, often homely, like the illus- trations, not seldom idiomatic, always perfectly adapted to the subject handled. Besides its other perfections, it is one of the most entertaining of books. There is no laying it down after you begin to read. You are drawn on from page to page by the strong current of the arguments, the manly sense of the remarks, the ful- XIV PREFACE. ness and force of the illustrations, the thickly strewed and happily selected facts. Nor can it ever escape observation, that the facts, far from being a mere bede- roll of details unconnected with principle and with each other, derive all their interest from forming parts of a whole, and reflecting the general views which they are intended to exemplify or to support." The only notice of a biographical character which has appeared of Mr. Deacon Hume is an article com- municated by his successor in office, the late Mr. J. Macgregor, M.P. for Glasgow, to the columns of a daily journal. It is a record somewhat brief and bare, but accurate in its facts, and contains some very just observations. The author has fully availed himself of the contribution, and when he could do so with advan- tage, verbatim et literatim. He has consulted all the Parliamentary papers and Reports of Select Committees he could discover, with which Mr. Deacon Hume appeared to have had any concern. From these and some may have escaped him as well as from the debates in Parliament, he has derived much assistance. To the late President of the Board of Trade, Lord Stanley of Alderley, his best thanks are due for per- mission to inspect such papers preserved in the archives of that Board as could be produced without inconve- nience to the public service, as also for the use of its library. With respect to the archives, however, he PREFACE. XV regrets to say that he found nothing which could be of service to a biographer. It is well known, as Mr. Macgregor observed in the year 1844, that Mr. Huskisson "relied implicitly on the knowledge, acuteness, judgment, and, above all, the uncompromising honesty of Mr. Deacon Hume." Nor did he omit to add, " And to Mr. Hume I certainly owe the confirmation of those principles and that ambi- tion to labour through all the difficulties, at my sole expense, of collecting in Europe and America the materials of my work on Commercial Statistics.** The author has thought it right to make an especial acknowledgment in the last chapter, for this volume is not a family tribute or contribution.* The writer has only attempted what, in the case of a public man, any one is at liberty to undertake ; and with the exception referred to, he is responsible for the work. Its object is to set forth the public life, with portions of the writings, of Mr. Deacon Hume, with a view of affording, in a popular form, information upon economic subjects which is greatly needed ; and, also, of doing justice to the services of one " whose memory," as an able judge recently remarked, " has not yet received the place in the respect of the country which it deserves." The greatest care, as biographers rarely fail to plead, * Page 331. XVI PREFACE. cannot always prevent mistakes. The author trusts that in the present instance they are few and unim- portant, since he has given time and attention to the subject. To the Right Honourable Lord Monteagle, the Right Honourable Lord John Russell, M. P., the Right Honourable Sir James Graham, Bart, M. P., the Right Honourable Sir James Stephen, K.C.B., the Right Honourable Henry Labouchere, M.P., the Right Honourable Edward Ellice, M.P., the Right Honourable W. E. Gladstone, M.P., Sir Denis Le Marchant, Bart., William Ewart, Esq., M.P., J. B. Smith, Esq., M.P., Richard Cobden, Esq., A. G. Sta- pleton, Esq., Thomas Doubleday, Esq., F. J. Hamel,Esq., and G. Plank, Esq., he is also indebted, and desires to express his thanks for very obliging communications, which either contained information, or afforded hints that were useful to him in his progress through the work. Sudbury, SuffbUt, December, 1858. LIFE OF J. DEACON HUME. CHAPTER I. UNACKNOWLEDGED STATESMEN BlRTH, EDUCATION, AND EARLY LIFE OF JAMES DEACON HUME. IT has been justly observed, that few persons have any idea what obligations this country lies under to those who may be termed her unacknowledged statesmen. They sit in their separate apartments in Downing Street, and Whitehall, the unseen sources of many a splendid reputation. They, not unfrequently, both suggest and prepare the particular measures, which are submitted to Parliament every session, by the Govern- ment, and it is to them that we are generally indebted for those judicious and timely provisions, which relieve the nation from some pressing distress, and lend e*clat to the favourite of the hour. As the judges of the land are largely assisted in the cases or causes which come before them by the speeches of counsel, who have been giving their attention to every point at issue, so are Cabinets influenced, and Select Committees of the n 2 LIFE OF J. DEACON HUME. House of Commons instructed and guided, by the advice and information which under-secretaries, espe- cially if they should happen to be men of unusual sagacity and intelligence, are capable of affording. They also from time to time supply the Secretaries of State and the Chancellors of the Exchequer, with those telling facts which enable them, hi debate, to silence opposition, and extricate Government from embarrassing positions. It may, nevertheless, be doubted whether even the most valuable of the indi- viduals referred to ever had justice done to them, or received their full reward. Their acquired powers of official suggestion are admitted; but strictly, they possess no real administrative power. They must not seek a seat in Parliament, or mix themselves up with the conflicts of party. Were they to do so, it would be impossible for them to continue in office, as many have done, from year to year, unaffected by the succession of Governments. If at every change of administration those who hold office in Downing Street were one and all to depart, the question, " How is the Queen's Government to be carried on?" would not only be asked, but it would also have to be answered. It may be thought that the foregoing remarks are applicable only to persons who, though occupying a respectable position, never expect to fill the responsible office of secretary. But it is not so. With the excep- tion of the former being less known to the public, the observations are applicable to both. James Deacon Hume was descended from an ancient HUMES OF MARCHMONT. 3 Border family, the Humes, or Homes, as it was occa- sionally written, of Marchmont, whose arms he conse- quently bore.* The practice of spelling Hume, the great English historian of that name remarks, " is by far the most ancient and most general till about the Restoration, when it became common to spell Home contrary to the pronunciation. The name is frequently mentioned in Rymer's "Fcedera," and always spelt Hume."t Had the subject of these pages been of the elder branch of his family, he would have had an immediate claim to the dormant peerage above mentioned: a circumstance which he never regarded, for, having no son, but a large family of daughters, and a fortune inadequate to the rank of an Earl, he would undoubtedly have been deterred from preferring that claim. Nor does the elder branch appear to have been more soli- citous about it. There is, with very many, at the present day, a disregard, real or affected, of ancient lineage, for which it is not difficult to account. We are disposed, however, to coincide in the remark of the historian above-mentioned, where he says : " I am not of the opinion of some, that these are matters altogether to be slighted. I doubt that our morals have not much * Vert, a lion rampant ar. Crest, a lion's head erased ar. Motto: True to the end. " A Selection from the Papers of the Earls of Marchmont, in the possession of Sir George Henry Rose, Bart., illus- trative of Events from the year 1685 to 1750," in three volumes, published by Murray, in 1831, in a work of considerable historical interest. f See a letter (date 1758) in Burton's "Life of David Hume." 4 LIFE OF J. DEACON HUME. improved since we began to think riches the sole things worth regarding."* James Deacon, the son of James and Elizabeth Hume, was born on the 28th of April, 1774, in the parish of Newington in the County of Surrey. He had four sisters. The youngest, who survives, married the late Rev. Edward Smedley, M.A., Author of " Sketches from Venetian History ,"f a " History of the Reformed Religion in France,"^ and a "History of France from the Final Partition of Charlemagne to the Peace of Cambray," with many other well-known publications. Before he had reached the period of middle age he became incapacitated by bodily affliction for the active duties of his profession, and devoted himself to literature in its highest and worthiest pursuits. His second daughter published some years since a volume of poems entitled " Songs and Ballads from English History." Not the least interesting is " Grizzel Hume," a poem founded upon the following passage taken from the Second Series of Sir Walter Scott's Tales of a Grand- father.! The subject was very naturally one of personal and family interest. * David Hume came from another branch, the Humes, or Homes, of Nine-wells, and so was descended from Earl Home. The arms of Home of Nine-wells are curious. Vert, a lion rampant argent, within a bordure or, charged with nine well*, or springs, barry, wavy, and argent. f Murray's Family Library. J The Theological Library. Rivington. The Society for the Diffusion of Useful Knowledge. U The account is more fully given in " A Narrative of the Events which occurred in the Enterprise of the Earl of Argyle, in 1685," by Sir Patrick Hume. HIS FATHER. 5 " Sir Patrick Hume, of Polwarth, afterwards Lord Marchmont, was one of the leaders of the Jerviswood plot in the reign of Charles II. When this conspiracy was discovered, Sir Patrick, having narrowly escaped falling into the hands of those who were sent to arrest him, concealed himself in a vault in the churchyard of Polwarth, and remained there till his enemies had given up seeking for him in that neighbourhood. During his sojourn in this dark and melancholy lurking place, his daughter Grizzel, a girl about eighteen years old, conveyed provisions to him every night. She was obliged to go forth alone, at midnight, for this purpose ; and great must have been her anxiety during each of these perilous expeditions ; for had chance discovered her to any evil-disposed person, the secret of her father's hiding place must inevitably have become known, and there can be no doubt that he would have shared the fate of the noble Baillie of Jerviswood, who, having refused to purchase safety by becoming a witness against Lord Russell, suffered death about tlu's time." James Hume, after the birth of James Deacon, the subject of this volume, was appointed Commissioner of the Customs. But at the time to which we refer, he was the deputy of a noble duke, who had a patent place in that department He obtained the appointment through the favour and influence of his uncle, Dr. Hume, Bishop of Salisbury. The duke's place was one of considerable value, arising from fees. The salary of the deputy did not exceed 300J. a year. Mr. Deacon Hume was greatly attached to his father, who 6 LIFE OF J. DEACON HUME. was a man of very amiable character, as well as of considerable ability. The Rev. Edward Smedley was accustomed to speak of him as " without exception, the best man and the most delightful companion he had ever familiarly known." When the Secretaryship of the Customs, worth at that time above 2,000/. a year, became vacant, Mr. Pitt, the Minister of the day, selected Mr. James Hume to fill the office : a circumstance which surprised and gratified him, for he had no patron, and it was entirely unsolicited on liis part. This deserves to be mentioned, as it is a sort of parallel to the manner in which his son was afterwards advanced ; and a parallel to which Mr. Deacon Hume himself very often referred. He was fond of relating the following anecdote in con- nection with his father's appointment. " When Mr. Pitt gave him the place, he went to communicate the intelligence to the Duke of . The latter, however, instead of expressing pleasure that one who had served him ably and faithfully for many years should have met with such good fortune, only regarded the matter as it affected himself; and he exhibited much dis- satisfaction that his own interest had not been con- sidered in the arrangement While Mr. James Hume held the office first mentioned, his income being limited, he removed to Bideford, a retired village in Devon- shire. It was in this neighbourhood that his son's career, in the seventh year of his age, was very near being cut short Having to cross the long bridge over the river Torridge on his way to school, and finding one WESTMINSTER SCHOOL. 7 day other boys loitering and amusing each other with the various feats which they could perform, he, being determined to outdo them all, climbed to the top of the parapet, and then letting himself down on the outside, hung by his hands over the water. Those who are acquainted with the height of the bridge, and the nature of the stream, will appreciate the danger of the situation. It was one from which a boy could not, by any possibility, extricate himself. When his little hands were almost tired out, he was rescued, strange to say, by a stout washerwoman, who not only saved his life, but gave him at the same time a sound beating, in order to teach him not to risk it again in such perilous adventures. At an early age he was sent to Westminster School, where the boys of his family, both before and after his time, have generally been educated, and have arrived, in several instances, at some distinction.* He was there during the successive head-masterships of Drs. Smith and Vincent ; and of the latter he always spoke in that tone of admiration with which he was regarded by all his pupils. Some old Westminsters will probably be gratified, as well as the general reader, by the following portrait of the Venerable Doctor, by the hand of Mr. Deacon Hume's brother-in-law, the late Rev. Edward Smedley: His nephews, the Rev. Charles Dodgson, the present Archdeacon of Richmond, and Hassard Hume Dodgson, Esq., both from this school, were elected students of Christchurch, Oxford. The first- mentioned was a double first-class man in 1821, the hitter a first-class man in 1825, and Dean Ireland's scholar in 1826. 8 LIFE OF J. DEACON HUME. " How vividly and how faithfully can I summon to my mind's eye that loved and venerated sage, to whom I owe my first awakening to the value of letters ; and consequently, all the happiness and consolation which during life have flowed from their culture ! ' ?XM yap a, \t that they will cheerfully assent to the exclusion of the idle and dissolute. What is the great desideratum ? It is abundance upon easy terms. What are the sources of abundance P They are rich soils favourable climates skill in cultivation, and facility of conveyance, in respect of the products of land, whether they be food of man, or of animals for the service of man, or be the materials of manufactures. And in respect of other commodities, the sources of abundance are raw materials, derived from the most productive places skill in converting those materials into the articles wanted machinery for saving human labour in the process, and strength for setting that machinery in motion, drawn by science from some power of nature that never wearies. These are the sources from which abundance is to be obtained by the least possible exertion of human labour. If we refuse to apply to these sources, with what pretence can we complain of want ? If we resolve to employ labour to waste, with what pretence can we complain of toil ? The extent to which, in the last half-century, mankind have acquired a knowledge of the means of rendering these sources available is very great. The inventions and improvements of machinery, and of its moving powers, are too notorious to need more than to be mentioned ; but, to the minds of many persons, those in agriculture may not be equally palpable. I shall, there- fore, just say, that the extensive introduction of the turnip and the clover, and the invention of hollow-draining, have been, in husbandry, scarcely less operative than machinery and steam have been in manufactures. By means of these two esculents, vast tracts of light land, which were formerly deemed of insignificant value, have not only produced abundance of food for animals, but have also been thrown into a course of crops by which they have been qualified for the growth of corn ; and by the invention of the hollow drain, a very great quantity of good lands, which could not before be cultivated on account of their springs and under- waters, have been reclaimed from a state of useless swamp. If, in consequence of bringing two very extensive descriptions of land into productive cultivation, which had previously been unpro- ductive, another description, the " stiff clays," have become lew profitable than before, we must bear in mind that similar vicissi- EFFECTS OF RESTRICTION. 67 tudes have occurred in other interests. It is probable, no doubt, that some lands, which can be worked only with extreme labour, must now be appropriated to permanent crops of some description ; for the progress of the country cannot be arrested for the sake of attempting to prevent this consequence of improvements in agri- culture. Such an attempt would amount to an open avowal, that the public shall derive no benefit from such improvements. AVhat, indeed, could we do ? Would we prohibit turnips and clover, or give a bounty for cultivating " stiff clays ? M or would we raise the price of corn grown upon all lands, the fortunate as well as the unfortunate, until it can be profitably grown on those which alone are in difficulty ? Putting aside, therefore, the lands unfit, under present circum- stances, for corn, as we would discard old machinery, I repeat, that in agriculture, as well as in manufactures, there has been a great access of productive power in the last half-century.* Had this not been the case, it would have been the extreme of folly to have talked of obtaining " an ample supply of necessaries and comforts for a small amount of labour." The Society invite " their fellow-men in France, Germany, and the other countries of Europe, to give their support and co- operation." My scheme embraces them also; it is not even practicable without them ; nor, indeed, without my " fellow-men " in Asia, and Africa, and America too. Abundance is my end> mutual consumption is my means. I must have the world for my workshop, and the world for my customer. Let any man compute the productive powers of the world in the present state of know- ledge, and then refuse, if he can, to rely on the sources of abundance; let him reflect on the appalling extent of human wants unsatisfied, and then doubt, if he can, the efficacy of consumption. There is scarcely a civilized spot in the globe in which the now impoverished labourer cannot produce, in excess of his own wants, some peculiar commodity with which he could * In comparing the prices of corn of the present times with the prices of former times, we must make the same allowance for improTe- menta in agriculture as we do for improvements in machinery with respect to manufactures. In such comparisons, the progressive depreciation of the value of money is one consideration ; but we are apt to forget that the progress of art is another, which is to be placed in the opposite scale. 68 LIFE OF J. DFJS.CON HUMK. provide himself with those other commodities he so greatly needs, if his right of exchange were not denied by the interposition of some arbitrary power. Mutual supply by means of such exchange is the scheme, and it is the law of nature, loudly proclaimed by the diversities of climate, soil, and capacities, it is a manifest design of a beneficent Providence for the benefit of the human race. But what is the law of man ? an impious prohibition of the law of God. I figure to myself the family of a Manchester or Birmingham workman, contemplating on a Saturday night the true exchangeable value of their week's work ; and computing how much food, as well as other commodities, it would supply them with, under the free operation of the scheme of Providence and of the law of Nature. I also figure to myself the family of the Polish husbandman longing to doff their miserable dresses of sheep-skin, and to exchange their corn for fabrics of the spindle and the loom. A greater offence can hardly be committed than to obstruct the mutual dealings of such parties, except it can be justified as a necessary national sacrifice. I stoutly deny the nationality of the object : the restraint is nothing less than a taking of the necessaries of life from those who have nothing to spare, in order to increase the luxuries of those whose command of them would bear reduction supposing, but by no means admitting, that any reduction would ensue. I cannot find room here to establish this proposition before those to whom it may not be sufficiently self-evident; upon another occasion, if necessary, I may perhaps do so, but at present, assuming the admission of the truth that there is no national ground for any protection to our home productions beyond that which may incidentally arise out of duties imposed for the sake of revenue I earnestly advise the members of the proposed Society, if it be eventually formed, to apply themselves with singleness of purpose to all fitting efforts for obtaining their right to the fruits of their labour : a right which no man can be said to enjoy, unless he be at liberty to make the most advan- tageous exchange he can of the product of his own labour for that of the labour of others. Let them pursue this course, and, if they succeed, the agricultural and landed interests will be among the first to acknowledge the merits of the " Society for Promoting National Regeneration." I am, Sir, your humble servant, II. B. T. THE TWO INTERESTS. 69 LETTER II. To the Editor of the MORNING CHROMCLE. SIB, 30th December, 1833. I thank you for the insertion of my former letter in your paper of the 18th instant, and also for the excellent leading article with which, at the same time, you supported the object of it. If you can again afford me a little space in your columns, I will endeavour, more pointedly than before, to show to the members of the " National Regeneration Society," that their distresses con- sist in their being compelled, by natural causes, to seek a foreign market as sellers of the goods they produce, while they are prevented by artificial causes, from going into that market as buyers of the goods which they want. Few people are aware of the relative positions in which our manufacturing interest and our landed interest are practically placed towards each other, by reason of the different proportions which the gross quantities of their respective productions bear to the consumption of the country; and consequently few persons perceive the degree in which this natural inequality of advantages is aggravated by the interposition of a law which throws its weight to the side which already preponderates. If any interference between these two interests could be justified, a far better case could be made out in favour of a bounty to increase the impor- tation of corn, than of a duty to restrain it. My first position is, that the agriculturists have, under any cir- cumstances, the enviable advantage of always selling their goods at home in a market insufficiently supplied. My second position is, that the manufacturer when he sells any of his goods at home, always sells them in a glutted market. These are facts which can be readily ascertained by referring to the accounts of imports and exports. The average annual quantity of foreign corn, chiefly wheat, imported into England during the last seven years, was very nearly two million quarters; besides which, we imported large quantities of seeds, and of butter and cheese. One-third, at least, of all the tallow we use comes from abroad ; and we import vege- table oils as a substitute for tallow in making soap, and fish oils as its substitute in lieu of candles. This account might be conside- rably extended, without including any product which is not suitable to our soil and climate ; but it is sufficient for the purpose 70 LIFE OF J. DEACON HUMK. of showing that the agriculturist has the advantage of a home market, in which the demand is much greater than the supply. The amount in real (not official) value of British manufactures exported in each of the last two years, was rather more than 36,000,0001., and nearly the whole of this sum is constituted of labour. Cotton wool, fine sheep's wool, flax, and dyeing drugs, are the chief of those raw materials of our exports, which we do not produce ; the metals and the coals are in our own mines, till labour extracts them. Making, therefore, ample abatement for foreign materials, the quantity of surplus labour in the country, that which seeks a foreign market may be roundly estimated at thirty millions sterling a year. The home market of the manu- facturer, therefore, is always a glutted market. These are the relative positions of the two interests ; and I beg the " Society" to mark the 'practical effect of these two positions upon their mutual dealings first, as buyers respectively, the one from the other ; and next, as sellers respectively, the one to the other. For the sake of perspicuity, I must be allowed here, to use a little personification, and to concentrate, in the proceedings of two imaginary individuals, the course of transactions which do actually take place between the two masses. A landowner and a manufacturer are the parties. Wheat may be the representative of agricultural produce, and cottons the representative of manu- factures. The landowner has one hundred quarters of wheat to sell, the whole of which, and more, is wanted by the manufacturer. The manufacturer has two hundred pieces of cotton to sell, half only of which is wanted by the landowner. As the quantity of the one is deficient, and the quantity of the other is excessive in their mutual home market, the prices of both must be governed by the foreign market, the influence of which upon them will be manifested by inverse consequences, the case of the one being the reverse of that of the other. The question between them shall be tried under the assumption of a state of free-trade to both. When the landowner is seller, he is enabled, in fixing the price on his wheat, to add to the amount of the foreign price, all the expense which must be incurred by bringing wheat from abroad. He stands firm in the market, and says to the manufacturer, reject my wheat if it please you to do so, and go a thousand miles by water and by land to fetch the cheap wheat you speak of. AGRICULTURE AND MANUFACTURE. 71 But when the landowner changes his position, and becomes the buyer of the manufacturer's cottons, he reverses his calculation, and he deducts from the price which they would fetch in the foreign market, all the expenses of sending them thither. Nor is his language less changed, though it is equally peremptory. He now says to the manufacturer, there is my offer, leave it if you like, and carry your cottons half round the world, in quest of that better price which you say will be given for them in other countries. Whether as buyer of the wheat, or as seller of the cottons, the manufacturer submits to this dictation of the landowner ; for it is he, and not the landowner, who is, in both cases, subject to the control of the foreign prices ; and the result is, that he gives one hundred pieces of cottons for fifty quarters of wheat. But this is only half the story; and the picture here drawn gives a very inadequate representation of the natural advantages which the landowner has over the manufacturer, and of the consequent injustice of increasing that advantage by artificial means. We have seen that the first use which the landowner makes of his power over the manufacturer is, to supply himself with home commodities to his heart's content, in exchange for a moderate quantity of his corn. He has got, for instance, one hundred pieces of cottons, for fifty of his one hundred quarters of wheat ; and now, feeling himself still rich with fifty quarters more at his com- mand, a desire comes over him for the enjoyment of foreign luxuries also ; and he is anxious, therefore, to make his remaining stock of wheat available for the procuring of them. But when he contemplates the sending of his wheat to foreign market, he is quickly struck with the reflection that, if he does so, be must not only submit to take the foreign price for it, but he must also deduct from that price the charges of exportation, instead of adding the charges of importation, as he had done in the case of the first fifty quarters. After some deliberation upon the course he should pursue, he comes to the following conclusion : I remem- ber, he says, that the manufacturer of whom I bought my hundred pieces of cotton, had another hundred for which he could not find a purchaser, and well know he was sorely in want of more wheat than the fifty quarters I have sold to him. I will e'en carry to him the residue of my wheat, and offer it for the residue of his cottons ; in his double distress, with glut on the one side, and dcfi- 72 LIFE OF J. DEACON HUME. ciency on the other, he will gladly come into my terms ; and then I shall get possession of a description of goods which I can use, as an advantageous medium for the acquirement of the foreign com- modities I am so desirous of obtaining. This is the true working of sale and purchase in a home market, where different local commodities are produced in very unequal quantities; and it might have been thought that the fortunate party would have been contented with his natural advantage. But the English agriculturists, like their fabled prototype, to whom Jupiter gave the treacherous power of regulating his own weather, had, as unluckily for themselves and the country, the power of regulating their own corn laws; and, not being able to look for- ward beyond half-a-dozen Mondays in Mark Lane, they sought to increase their advantage by imposing duties and restraints on the importation of foreign corn. And although the scheme has signally failed to assure to them the prices they expected, or even the prices they would have had, if they had wisely suffered com- merce to take the lead, it has, nevertheless, enabled them to ex- change small quantities of their corn for large quantities of home manufactures, which they employ partly for their immediate con- sumption, and partly to exchange again for foreign commodities, in the manner which has been described. So complete a case of Sic vos rum, vobit was, perhaps, never reduced to actual practice upon so large a scale in an enlightened country; and I think that the members of the "Society" must clearly see, how truly it accounts for the great quantity of labour they are compelled to perform, and the privations they nevertheless suffer, while, to all outward appearance they are surrounded by the elements of plenty obtainable upon easy terms. I am quite sure that many a high-minded land proprietor, if he could be brought to perceive the relative positions in which the agricultural and manufacturing interests are placed, would be the first to denounce the system as the most abominable piece of subtle and refined oppression he has ever met with. Yet so it is ; the manufacturer stands over those very goods which are destined for a foreign market, which he knows will go to a foreign market, and' for which foreign goods will assuredly be received in return ; and yet he is not permitted to send them to the foreign market on his own account, nor to receive in return for them the description of foreign goods he wants for himself The landowner is both AGRICULTURE AND MANUFACTURE. 73 exporter and importer; for the operation of the Corn Acts is, to give him a right of pre-emption of our manufactures at an enormous price. I have examined this proposition with an honest intention to abandon it if it be wrong ; but I cannot find in it a failing point. It is true that, of agricultural produce, we chiefly import wheat, but that is only because wheat is the most concentrated form in which a given quantity of agricultural produce can be imported, and the price of it has its influence over all other produce of the land. It is also true that our exports consist chiefly of cottons and hardware ; but the prices at which they can be disposed of abroad, must necessarily govern the prices of our other manu- factures. The magnitude of the exports proves that their influence over the whole industry of the country must be overpowering. While the Corn Act lasts, the landed interest must have the power of dictating prices, both as seller and as buyer. The only way to effect the " national regeneration " which the society desires is, to place all sellers and all buyers upon an equal footing. If I should be permitted to trespass again upon your paper, I will avail myself of your indulgence in an endeavour to convince the landed interest that they have mistaken their policy quite as much as they have mistaken their rights. I am, Sir, your humble servant, H. B. T. LETTER III. To the Editor of the MORNING CIIRONICLK. SIR, January 10, 1834. The reception which you have given to my two former letters has convinced me, not only that you take the same view that I do of the true interests of the working classes, but also that you are willing to afford me opportunities of advocating their cause in my own way. It is apparent to you, as it is to me, that the working classes have only to obtain the restoration of their natural rights, " the rights of industry," the liberty of exchanging, in the moat advantageous manner they can, the product* of their own labour for those of the labour of others, and they will gain all they seek. By the simple exercise of those rights, under the free play, in all other respects, of the ordinary rules, habits, and maxims of civilized society ; without asking favour of one body of men, or 74 LIFE OF J. DEACON HUME. attempting to force their purposes upon another ; without any combination, except that insensible self-combination of all the parts of national association which takes place when their affini- ties are left to their natural action by the simple exercise, I say, of the indisputable rights of industry, the working classes will obtain that full measure of the " necessaries and comforts of life," which it appropriate to the existing state of the science*, iu agricul- ture and mechanics ; and they will also acquire a direct interest in every fresh addition to those sciences ; because each advance and improvement will enable them to employ the increased means of production, either to the purposes of more leisure, or to the pur- poses of more emolument, according to their respective desires. When industry shall have recovered its rights, all jealousies be- tween the rich and poor all invidious distinctions between the productive and the non-productive all cant about the useful and the useless will cease ; and in their place will be revived the older and better sentiment of the sacredness of property, and of respect for superiors. Let property withdraw itself into its proper limits, and relinquish all its usurpations ; and let there be nothing factitious in superiority of station, and we shall see physical power and moral power always harmonizing with each other. If the working classes shall be thought to have lost any portion of their accustomed respect for the rights of property, it is solely in conse- quence of the unintelligible difficulties in which they find them- selves placed by the attacks which property makes upon the rights of industry. Their understandings are perplexed and mys- tified by their situation ; and, as the blows they receive are inflicted by property, they are almost led to attribute to it an inherent evil quality. But the property of one man cannot, under equal laws, operate any injury to another. It can be no injury to me that a particular man is owner of a particular part of my country as his exclusive estate, provided he be contented with it for its true worth, and leave me in quiet possession of any property which I may happen to own. But if he tell me, that hit property is of so peculiar a nature that it entitles him to take from me some of mine, in order to make his the more valuable ; and, above all, if my property consist solely in my labour, then there may be some risk that I may be seduced into an opinion, that property is a sort of noxious matter, and a nuisance which I may fairly endeavour to abate. RIGHTS OF PROPERTY. 75 There is nothing in Mr. Owen's scheme of society which is not of the very essence of society, in its national form. He proposes that a large body of people shall agree together to employ them- selves in the manner which shall produce the greatest quantity of ease and comfort for them all. The people of this country would spontaneously fall into the very division of employments which would produce this consequence if they were left to themselves. It is only because the pictured results of Mr. Owen's plan are the proper results of a well-constituted society as a nation, and there- fore natural to the imagination, that it has attracted any attention. There is a consciousness of the perfection to which common society might be brought, if all men would perform their respective parts ; and the mind dwells with pleasure on the descriptions of new arrangements that are to produce a degree of happiness which it feels ought not to be unattainable. The wild schemes, which are occa- sionally proposed for removing the evils of society, are generated by that wildest of all, by which those very evils are produced the officious legislative management of men's affairs in their private, and not their public capacities. It is by such a system, and by that alone, that industry is deprived of its rights. It is not by such a system that the rights of property are maintained ; perhaps they are endangered by it. I have indulged in these general observations out of the great anxiety I feel that the " Society for Promoting National Regene- ration" should have a just conception of that true "regeneration" which the simple reduction to practice of sound principles of trade must produce. It is necessary thus to keep before them the end and object of these letters ; but the manner in which that object will chiefly be pursued will be, by bringing out into promi- nent view some of those strong features of the question at issue, which, as it appears to me, have been much overlooked in all the discussions upon it. There are parts of the subject of taxation which stand in the obscurity alluded to, although bearing strongly upon the question of protection. The magnitude of the National Debt, and the necessity it creates of raising a large revenue by taxes, is con- stantly assigned as the principal reason, and often as the only reason, for our protective system. By none more than the landed interest is this plea advanced ; and as the various trades, which continue to call for protection to themselves, often declare that 76 LIFE OF J. DEACON HUME. they do so solely because of the protection conceded to agriculture ) the subject may be examined with reference to land alone. The plea of the Corn Act is, the great amount of the taxes levied for the purpose of paying interest on the loans raised during the late war to defray the expenses of it ; for it is not pretended that the debt, as it stood before the war, would furnish any ground for such a plea. Why, under any circumstances whatever, the landed interest is not to pay any part of these taxes, or to be in- demnified for what they do pay, I am wholly at a loss to conjecture; but when the real circumstances of the case come to be investigated, it will be found, that if it can be fair for any interest of the country to be invested with a power of indemnify- ing itself for its own portion of that burden, by making surcharges upon another interest, then, I say, that the trading interest would be entitled to throw their share of the burden upon the land ; and I am not afraid of establishing this proposition, supposing that such a species of favouritism could be allowed. The efforts made, and the adroitness employed by every branch of trade to throw off from itself the burden of any tax affecting its transactions, are the subject of common observation; and provided that none be armed against their neighbours with any law for that purpose, the various parties may be left to adjust the matter among themselves as they can. But, even in the absence of any such law, there is one most important interest in this country, on whose back some of the burden, beyond its own share, after it has been shifted from shoulder to shoulder a dozen deep, must ulti- mately fall, and there rest. / allude to our export manufacturer*. This country, as compared with any other in the world, is a rich, high-priced country. The parties, therefore, who raise, or make the commodities, which are wholly consumed at home, may measure their respective exactions by the scale of English prices;* but they who make the surplus which must be exported, are forced to conform to the scale of foreign prices. When, therefore, the burden has reached these parties, it will remain upon them as the last in the rank, having none beyond them upon whom they can throw it. But, although they cannot throw on the foreigner * These parties, at all events, think so, which is enough for the present argument ; but they will find themselves mistaken in the lung run. THE CORN LAWS. 77 any portion of that burden, they can receive from him the support and succour which will enable them to bear it, if they are not pre- cluded from doing so by any arbitrary restraint such as that which they suffer under the Corn Act. Thus it appears, that in the absence even of all protection to agriculture, the landed interest have not only the advantages pointed out in my last letter, as sellers of their own goods, and as buyers of the goods of others, but they have also the advantage of being able to shift from themselves a large part of the burden of the taxes which they appear to bear. Unless, therefore, it can be broadly pro- pounded as a principle, that the landed interest, like the old privileged classes in France, whom they would do well to re- member, ought to be relieved from the fiscal burdens of the State, it will be impossible to maintain that the National Debt can be a plea for the Corn Act. And here I must explain the peculiar difficulty which I expe- perience in discussing this great subject. I consider the Corn Act to be the most signal failure that can be found in the domestic history of the country ; because 1 do not entertain a doubt, that if the ports had been thrown open at the end of the war for the admission of corn, free of duty, or at a moderate duty only, for the sake only of revenue, the prosperity of our trade would have been such as to have secured to the farmers a much better price for their produ:e than they are now obtaining. To say, therefore, as I distinctly do, that the Corn Act raises the price of agricultural produce sufficiently to indemnify the landed interest for all the taxes which fall, in the first instance, either upon their trade or upon their personal consumption, sounds like a contradictory asser- tion. But, still, such is the case ; because, taking the trade in its present depressed and limited state, and taking the prices of agri- cultural produce at what they would be without a Corn Bill, if trade still remained in that state, the Corn Bill adds to those prices a sum which, in the aggregate, is more than equal to all the State taxes paid in any shape by the landed interest In saying this, 1 say DO more than they say themselves ; the protection they cling to reaches them only in the form of increased prices of corn and meat ; and as we may almost despair of their discovering that they might have those prices, and better too, without protection, it is necessary to try the justice of their claims upon their own show- ing, lest we fail of convincing them of their impolicy. 78 LIFE OF J. DEACON HUME. Upon the commonest principles of justice, and even supposing that there had been nothing peculiar to the case of the landed interest in the circumstances under which the National Debt accu- mulated during the late war, they can have no claim to be ex- onerated from the payment of their share of the interest of it, by means of a law which should enable them to make heavy sur- charges upon the other branches of the community. Upon a little examination, however, properly directed to the true points of the question, it will be seen that the landed interest is the very last in the country which should object to bear its portion of that burden. My proposition is this : The expenses of the State during the war were enormously increased by a contemporaneous enhance- ment of the prices of all agricultural produce ; the loans raised to defray those expenses were proportionately the larger ; and in the expenditure of those loans, a very great part of them passed into the pockets of the landed interest in the shape of extraordinary profits. I shall conclude that the two first branches of this proposition will need no proof. Neither can it be doubted that a large portion of the loans was paid away in extraordinary prices for corn, meat, timber, &c., or that the general expenditure of the Government, as well as that of every individual in the country, was greatly in- creased by the high prices of agricultural produce. The only question therefore is, whether those prices gave extraordinary profits to the landed interest; or, in other words, whether the cause of those high prices lay in the cost of production, or in some incidental extraneous circumstances. The war broke out in 1793 and in 1792 we had exported a considerable quantity of com the average price of wheat being then under 44*. per quarter. The war, therefore, began upon low prices and a surplus produce; and as the era of peace had closed with a year of exportation, we have pretty good proof that, pre- viously to the war, British and foreign prices could not have widely differed from each other. In a short time afterwards importation upon a large scale commenced, accompanied by a great rise of prices, and by every other indication, that a demand had sprung up which our home agriculture was totally unable to satisfy. That this demand was real and permanent is proved by the quantities imported during a long series of years ; that it was an "WAR PRICES." 79 efficient demand is proved by the prices given ; that it was caused by an increased consumption and not by any falling off of our home produce, is proved by the whole history of our agriculture during the war, which gives one continued account of agricultural success and proclaimed improvements. With a demand so urgent, and with a power of purchasing so effectual, the consumption price of the corn derived from abroad would depend solely upon the amount of the charges of importa- tion which were to be added to the foreign cost. By reason of circumstances peculiar to the late war, as distinguished from all former wars, those charges were rendered particularly heavy ; and as there could not, of course, be two prices for the same commodity in one market, the amount of those charges was added to the natural price of English corn, although not one shilling of them was incurred upon it. This was the sole cause of the " war prices" of our agricultural produce ; and when we consider that upon the strength of those prices rents were doubled, and in many cases trebled, while the affluent circumstances of the tenantry was the subject of general remark, I think that we need have little difficulty in deciding, that the cause of those prices was wholly independent of the cost of production, and that they did confer on the landed interest an enormous amount of extraordinary that is, of unusual and un- earned profits. If any further proof of the true cause of the high prices of British corn during the war were wanting, it might be found in the fact, that the i'all in those prices which took place immediately after the war, was accurately measured by the reduc- tion of the charges of importation ; and what is very remarkable, and must throw some doubt over the opinion that the high prices were materially attributable to the depreciation of our currency, is, that as the price of foreign corn fell, and with it the price of British corn, the prices of all our manufactures and colonial pro- duce, although we held of them enormous stocks, greatly rose, and together with them, the value of our paper currency rose also, in the face of an increased issue to a considerable amount. These arc undisputed facts. I cannot here undertake to reason upon them, but I think it is so necessary to divest the corn question of all the false colouring under which it has been constantly presented to public view, that, if you will permit me, I will at another time endeavour to show, that however much embarrassed other interests 80 LIFE OF J. DEACON HUMK. might have been by the high price of gold in the last years of the war, the effect of that price was beneficial to the landed interest ; it worked for them, while it was working against all the other interests of the country. I have now delivered in my " Bill of Charges' 1 against the landed interest, upon account of the National Debt ; and I debit them with some hundred millions. They have had the money. Had they taken care of it, it would have been better for the country as well as for themselves ; for, by their extravagant ex- penditure as income of such immense sums, which were more properly of the nature of principal, they unwholesomcly increased the whole scale of our transactions, both public and private ; and they raised the interest of money against the State by a constant dispersion of capital, after it had actually collected itself in their hands. The great body of landowners ought, at this day, to be the principal stockholders. The two terms should be almost synonymous ; and instead of the word " mortgage" being the echo of the word " land," the possession of an estate of " five thousand a year" should imply the accompaniment of " fifty thousand con- sols." All mortgages ought, certainly, to have been paid off during the " war prices ;" but, instead of seizing so fair and tin- looked for an opportunity of clearing their estates, the landowners exhibited their enlarged rentals only as security for more advances ; and they became competitors with the State in the money market as borrowers, when they ought to have entered it as the principal lenders, I am, Sir, your humble servant, II. B. T. LBTTBB IV. To the Editor of the MORNING CHRONICLE. Si>, 16/A January, 1834. The more particular purpose of my last letter was to show that the landed interest was the very last interest in the country which should pretend to found a claim to protection upon the magnitude of the National Debt. I then proved, first, that it was their inability to supply the country sufficiently with agricultural produce during the war that caused the debt to become so large, aud next, that the excess so created went into their pockets, in the THE LANDED INTEREST. 81 shape of extraordinary and unearned profits upon the quantity of agricultural produce which they did supply. In following out this subject, I was naturally led to the confines of the bullion question in which the landed interest discover fresh grounds for relieving themselves from the public burdens ; and towards the close of the letter I asserted that the high price of gold, during the last years of the war, worked for the landed interest, while it was working against every other interest in the country. I now propose to prove the validity of this assertion. The subject is peculiarly relevant, not only because of the nature of its facts, but also because of the conduct of the landed interest themselves, and of the general tenor of the observations upon it, which we have been occasionally hearing from them ever since the war was over and the time of borrowing had ceased. There is no distinguishable body of the people from whom, so much as from the landed interest, has proceeded a strain of insinuations dan- gerous to the public creditor, and injurious to the national faith. Language, not merely pointing to resistance, but even of oppro- brium and contempt has been used by them towards the fund- holder, who, though he haa escaped their direct plunder, has not escaped their abuse. When the failure of the first extravagant Corn Act became apparent, was not the sponge plainly hinted at as the next remedy ? Did we not hear it said, in absolute allusion to insolvency, that "the country was not to be expected to perform impossibilities?" Were we not also frequently asked, whether the old families of the kingdom were to sit quiet until a parcel of sordid, upstart money-lenders should push them from their pater- nal seats? And next, when the honourable feeling of the country revolted at such suggestions, what were then their selfish schemes? Who so strenuous as the landed interest to force upon us a base currency, in order that they might pay both the fund-holder and their own mortgagee in false money? While such sentiments co-exist with political power, the country is hardly safe. The French nation, after a long and patient second trial of their old dynasty, drove them at length from the throne, solely because they proved to the last to be irreclaimable pretenders to divine right. Had the French family and their personal adherents been faithful to the conditions of their return, and renounced in their hearts M well as in their words, pretensions wholly disowned by the people who received them, Charles the Tenth would now have been O 82 LIFE OF J. DEACON HUME. reigning a popular monarch over satisfied subjects ; the King of the Netherlands would have still had an undivided kingdom under his sway, and Poland would have remained quiet under institu- tions which, whatever might be the theoretical objections to them, were working much practical good towards a population deficient in the art* of industry and commerce. These are serious lessons, and it is always useful to practise the mind in conceiving what different turn affairs would have taken, under the supposition of the reversal of some event of powerful influence which has occurred. It certainly seems plain that all the political mischief we have witnessed in the last three years may be traced to that single folly in the French family, in perpetually harbouring hopes, and betraying desires and intentions of re-establishing, by the first opportunity, the principle of divine right; and if our aris- tocracy think that in virtue of some analogous hereditary claims, as lords of the soil, they are to perpetuate their families and their patrimonies by any other means than by their own prudent management of their estates, according to their intrinsic values, they may some day be repudiated for sentiments equally incon- sistent with the natural rights, and the common sense of mankind. They have the good fortune of being placed among a people strongly attached to them by disposition and by habit, and who are sensible of the advantages, while they delight in the splendour of a high and hereditary nobility; and, therefore, if disagree- ment ensue, there can be no doubt as to the side on which the fault, as well as the chief sufferings must lie. But the people delight in the splendour of their nobility, only in the contem- plation that it is maintained by the intrinsic resources of their own broad possessions. If the people, rich or poor, are made to support that splendour from their own means, they must cease to respect it. The National Debt is set forth as the reason for a corn act, upon two separate grounds. First, its quantity alone is advanced as a ground for protection ; this I have already dealt with. Next, its quality the nature of its composition, is objected to ; and into this I am about to inquire. It is charged against the monied interest by the landed inte- rest, that the fundholder lent only depreciated bank-notes, and that, therefore, he has not any just claim to be repaid in sterling money. This argument is chiefly founded upqn the very high THE HEREDITARY NOBILITY. 83 price of gold, computed in bank-notes, which prevailed during the last five or six years of the war ; and my answer to it, for them at least, is, that that higher price of gold was, to them, a fertile source of extraordinary profits, such as must form, in their case, an ample set-off against the evil consequences they point out. The subject lies in a small compass. It has been shown that the price of English corn was raised during the war, pari passu, with the expenses attending the importation of foreign corn. Now one of the most material ingredients of those expenses was the high price of gold. If we examine the question with the illus- trative aids of assumed sums, in figures, the amount will stand somewhat in the following manner : The depreciation of the currency may be taken at twenty-five per cent.; the finance minister, therefore, must be supposed to have raised a loan of twenty-five millons, when twenty millions would otherwise have been sufficient for him. But then, if this additional five millions went, as I contend it did, directly into the pockets of the landed interest, without any equivalent consideration from them, they received their indemnification for the excess ; the account upon the score of depreciation, was settled with them at the time, and they can have no after claim upon that ground. The question then is, whether this five millions did go into their pockets in the manner I have stated. Every merchant remembers the great difficulty which, at the time referred to, attended the remittance of funds to the Continent to pay for our imports ; and that, to exorbitant freights and heavy insurances, which, under the circumstances of the intercourse, were well earned by the parties who received them, there was to be added the loss on the foreign exchanges ; or, in other words, the difference between the Mint price and the market price of gold, in making up the amount of charges on foreign corn. But although in respect of English corn which was already at home, there was of course no freight, no insurance, no remittance, still all the charges upon foreign corn under those heads, including the difference between the Mint price and the market price of gold, were simultaneously added to every quarter of English corn, as fully and specifically, shilling for shilling, as if the identical quarter had formed part of the cargo of the " Vrow Wilhelmina, Jansen, master, from Dantzick." Let the market prices of gold from 1797 to 1815 be examined, 84 LIFE OF J. DEACON HUME. and account be made out of the suras by which the respective loans, received in bank-notes, were greater than they would have been if received in gold ; and then compare, year by year, the ascertained excess of those loans with an equal per-ceutnge in- crease upon the prices of all the agricultural produce of the country computed in gold. If a debtor and creditor account of this nature were made out, the landed interest would be charge- able with a heavy balance, because it will be found that the prices of agricultural produce, even when computed in gold, were enor- mously high. By an irresistible operation of commerce, it must have occurred, that the necessity we were under of importing large quantities of foreign corn, which could not be obtained without indemnifying the foreign seller for any depreciation in our cur- rency ; that is to say, for any difference between the market and the Mint price of gold with us, would enable the home-grower to demand the same indemnification for himself. When one foreign hand was held out to receive the computed sum, twenty English hands were thrust forward at the same time, with the same demand, and the same sum was put into each of them. The immense importance to us of the single fact, that the national agriculture proved to be inadequate to the feeding of the people during the war, has never been properly adverted to ; and consequently the true character and operation of that fact has escaped observation. Strange to say, a case of absolute want and palpable distress was mistaken for prosperity. To a portion of the people, no doubt, it brought great prosperity, but to the nation it was a positive loss, the amount of which is now represented in the form of perhaps a full fourth of our present National Debt. To the makers of gunpowder, the manufacturers of muskets and cannons, and to the holders of saltpetre or naval stores, the breaking out of a war is the legitimate promise of a new harvest of profits ; but not so to the farmer. The prices of the peculiar material of war may naturally rise with the occurrence of war, but the general food of a people need not rise also,* unless, indeed, their country should become the seat of hostilities. If we were to trace the occurrences of the war, and test them by the supposition that the agricultural produce of the country, * In the American war the value of land was very much depresMd. THE LANDED INTEREST. 85 which was abundant up to the commencement of it, had continued to be equal to the demand, or nearly so, we should see that some of the greatest difficulties of our situation would have been avoided, or much alleviated. By nothing was the country more embarrassed than by the necessity we were under of placing large funds on the Continent, both for state and for commercial purposes, during the war, and particularly in the last five or six years of it, when our merchants were prevented, by the Berlin and Milan decrees, from rendering their merchandise as it always ought, alone, to be the medium of remittance; and it will easily be comprehended how greatly their difficulties must have been increased by the additional necessity of making remittances in payment for foreign corn. The landed interest cannot suppose that I am upbraiding them with this deficiency of their produce, or that I insinuate blame to them for accepting enormous profits which, from such causes, incidentally fell into their hands. But I charge them with ridiculous arrogance, for boasting that they mainly assisted in carrying the country through the war; and with the basest ingratitude for turning round upon the country in the manner they did as soon as it was over. If the true nature of the case had been understood at the time, nothing would have been more just than to have restored, or rather preserved, in some degree the proper balance between the different interests of the country, by the imposition of a very heavy tax upon land. Any charge that was clearly less than the unusual portion of the expenses of importation on foreign corn would have been easily borne without the least derangement of our agriculture. The only effect would have been to have prevented a most uncalled-for increase of rents. The country might, with great propriety, have held this language to the agriculturists : The calamities of war, and the difficulties under which the nation is labouring, have an incidental tendency to throw great and most unnecessary profits, at the public cost, into your hands ; it is, therefore, only an act of justice to the public to call upon you to restore some of those profits to the nation, for the purposes of that state of warfare which is the sole cause and source of them. Nothing of this kind was attempted, nor is any sort of restitution desired ; but when the benefited party complains, the losing party may well desire an investigation of the accounts between them. It is the particular 86 LIFE OF J. DEACON HUME. purpose of these letters to examine these accounts, in order that the relative situations of the several great interests of the country the agricultural, the trading, and the moneyed interests may be thoroughly understood. I am confident that I cannot be wrong in saying, that the agriculturists were indemnified, in the price of their produce, for every shilling by which the National Debt was increased in consequence of the difference between the Mint price and the market price of gold, and that therefore they, of all people, should be the last to object to bearing their share of the common taxation out of which the interest of the debt is paid. Nor was this advantage confined to the landed interest, although few others had the opportunity of enjoying it ; but every trade which raised or manufactured an article, of which the home supply was so much below the demand that the consumers were obliged to have recourse to importation, was enabled to add to the price of that article all the extraordinary charges of freight and insurance, as well as the loss in purchasing gold for remittance, which were necessarily incurred in bringing the like description of goods from abroad. The difficulties which the merchants were under in making foreign payments were peculiar to the description of warfare we were carrying on. It was not that they were deficient in export- able commodities suitable to the purposes of remittance, both in quality and in price, but solely that they could not obtain admis- sion for their goods into the continental ports, by reason of impediments of a warlike, and not of a commercial nature. This, however, is a different subject, worthy, perhaps, of more consideration than has been bestowed upon it in any of the discussions upon our currency. I am not now investigating the cause of the high price of gold during the war, but the effect of it upon the prices of our own agricultural produce ; and I trust I have shown, that in those prices the landed interest were amply indemnified for all the increase which may have been made to the National Debt in consequence of the difference between the Mint price and the market price of gold. They were indemnified in the most direct and perfect manner that can be imagined ; they received the money itself, and more than the money. The rate of the indemnification was exact ; and the sufficiency of the aggregate amount of it will never be doubted by any man who AGRICULTURISTS INDEMNIFIED. 87 will ask himself the question, whether one-fifth of all our agri- cultural production was not, as prices at that time were, repre- sented by a much larger sum than the amount of one-fifth of the contemporaneous loan P But this is not all there is another point of view in which the picture is to be seen, where it will disclose fresh advantages enjoyed by the landed interest at the period of our greatest difficulties, not only exclusively, but derived directly though incidentally, still positively derived out of the very misfortunes which those difficulties brought upon other interests. The foreign adventurer came here with a cargo of corn, for which he considered himself amply remunerated by the clear intrinsic sum of 800/., that is to say, for example, 500/. for the shipping price at Dantzic, and 3001. to cover freight and insurance to London. He demanded, however, and did receive, bank-notes to the amount of 1,000/., which he converted into 800/. in gold, and with that gold be returned to his own country. This he did, not because he could not, with even 8002. in bank-notes, have purchased colonial produce and English manufactures, which would have made him a richer man when he got back than be would be with his gold, but simply and solely because he knew that he would be prevented, by military force, from intro- ducing those goods into the Continent. Not only, therefore, did the 2001. additional money vanish from him in consequence of his returns being confined to gold, but, when he got home, he was forced to give for such goods five times as much in gold as he could have purchased them for, when he was here, in bank- notes. Now we are to observe, that it was precisely because the foreigner was placed in this situation that the English agricul- turist received 1,0001. for the like quantity of his corn: let us then see bow he was circumstanced in his expenditure of that sum. I appeal again to the recollections of our merchants, whether our warehouses were not, at thp time in question, groaning with sugar and coffee, and all manner of our own colonial produce, as well as with foreign tropical productions, remitted as payments to some unfortunate exporters of British manufactures ? and, also, whether those manufactures were not held here in immense quantities, for want of their natural markets, and at prices ruinous beyond measure to the makers 88 LIFE OF J. DEACON HUME. and holders of them. Every man who had any acquaintance with our commercial affairs in the last five or six years of the war, knows well that such was the case. Into so depressed a market, therefore, for all such commodities did the English agri- culturist go as a purchaser, supplied with funds extravagantly enlarged, not only incidentally while that market happened to be so low, but positively rendered large by the very cause which made it so low. An idea, and a most mistaken one it is, very generally prevails, that during the high price of gold all commodities were dear ; but the mercantile and manufacturing interests knew, but too well, that nothing scarcely was dear at that time, with reference to the cost of production, except agricultural produce, and those other commodities which, if imported, were imported solely for consumption ; and also, t hat the cause of that dearness lay in the expenses of importation and the loss in remitting money to the Continent occasioned by the impediments to exportation. If we set aside the medium of money, whether in paper or in gold, and measure the prices of our manufactures and colonial produce by the quantity of agricultural produce for which they could be exchanged at that time, we shall see, that the degree in which the landed interest revelled, both in the distresses and because of the distresses of the manufacturing, colonial, and commercial interests all except the shipping interest was so great, that it is now a matter worthy of astonishment how the country was able to support the burden of the war and the burden of the land at the same time. . Still I say and repeat, that these are no grounds of complaint or reproach against the landed interest, nor would they be adverted to, except as curious historical and statistical facts, exhibiting the vicissitudes of good and bad fortune to different classes of society, if, when the war was over, and the cause of such derangements had ceased, the fortunate class had been contented with what had passed, and had not refused to loosen their grasp, and let go their hold of the unfortunate classes. The various schemes and expedients to which the landed interest have resorted, or endeavoured to resort, in order to avoid bearing any share of the public burden which the war has left upon the country, render it absolutely necessary that their pretensions to exemption should be sifted to the bottom. Perhaps they have CURRENCY. 89 never comprehended their real position perhaps, when they do comprehend it, they will relent and be just. I am, sir, your humble servant, H. B. T. LETTBE V. To the Editor of the MOBNING CHRONICLE. SIK. January 25, 1834. The working classes, who are the great body of the people, are, because they are the great body, more interested in the esta- blishment of sound principles, upon extensive subjects, than the other, and far less numerous, portion of society can be. The dis- tinction between the two classes, with reference to the several effects upon them of good or bad general systems, is somewhat like that which exists between the extensive productions of the field and the limited productions of the garden with reference to the influence of the weather ; the first are openly exposed to the effects of the prevailing season, while the latter may be sheltered in a variety of ways. So long as the faults in the political economy of a great nation are confined to trifling objects, they are like the little indiscretions of diet committed by persons of strong con- stitution, they do harm, no doubt, though it passes by unheeded. But when an extensive subject like that of corn, or like that of currency, to which I am about to advert, is wrongly treated, the evil consequences will break out ; and then the great body of the people the working classes will be the chief sufferers. My friends of the " Society for Promoting National Regeneration " must not think that I am forgetting their cause, while I am only trying an " issue out of Court," upon which much of their cause depends. They have escaped great peril in the attempts which have been made to debase our currency ; but although those attempts have hitherto failed, through an opposition highly creditable to the honour of our country, still we must remember that the project was not rejected upon any disproof of the grounds upon which it was proposed, and that the fact of a former deprecia- tion seems now to be admitted on all sides. If the validity of that admission is to remain an undisputed record, future assaults, made in times of pecuniary pressure, may prove too strong for our virtue ; and I shall, therefore, offer in this letter, the suggestion of 90 LIFE OF J. DEACON HUME. some doubts upon the subject, which may, perhaps, be thought worthy of serious consideration. The proposition in my last letter did not depend upon the hypo- thesis of depreciation. I was not content there to assume the fact, or even to admit its truth; all I had to prove was, that the landed interest were fully indemnified for the difference between the market price and the Mint price of gold, let the cause of that difference be what it may. I shall now examine the question of depreciation itself. In order that we may bring the question at issue before us in as plain and succinct a manner as possible, a few matters must be premised, a few definitions settled, and a few admissions agreed upon. But first, I must make a declaration of faith. I am a true disciple of the school of currency, of which Mr. Hu*kison may be the leader ;* I swear by the principles of his celebrated work, and I pledge myself to advance no theory, to employ no doctrine, except such as it was the object of his labours to establish. We shall differ only upon facts. The principles of the writers who opposed him in the heat of the controversy I totally reject. It is not, however, for the s ike only of making this declaration that I draw attention to that treatise ; I do it chiefly for the advantage of the brevity and distinctness with which I may be able to place in a prominent point of view the proposition I hope to establish, if I lay its foundation upon the details of a work which has long been before the public, and from which the public may be said to have chiefly drawn the opinions upon currency they now uni- versally entertain. Mr. Huskisson's pamphlet was published shortly after the delivery of the Bullion Report of June, 1810. He had been a member of the committee by whom that report was made, and he wrote with the avowed purpose of supporting its doctrines with a sort of supplement of details, such as could not well be introduced into the parliamentary document. Let us, then, consider what the doctrine of depreciation is, according to these authorities. Depreciation of a local currency is an effect of which a re- dundant quantity of circulating medium is the cause. The test of I would here include Mr. Ricardo and Mr. Mushett; they will be sufficient representatives of a code of doctrines which they assisted in advocating with great skill. HUSKISSON. THE BULLIONISTS. 91 the redundancy, and the measure of it, are to be found in the course of mercantile transactions with foreigners. When a local currency is redundant, it causes the prices of com- modities, in the country where it occurs, to be raised above their proper level with relation to other countries. The general level of prices in the world is determined by the total stock of the precious metals. The proper level in each par- ticular country depends upon the proportionate share of that stock, which it is able to command, by means of its relative power of producing, cheaply and abundantly, commodities which are desirable in other countries. Although the total stock of the precious metals governs the prices of commodities, so that those prices are always reckoned or expressed in the precious metals ; still, that stock may be econo- mized, and, in effect, expanded, either by means of direct barter, as in some cases; or, as in other cases, by trust ings and transferable credits, so managed as to be indirectly equivalent to barter since by such methods of dealings, men are enabled to pass commodities from one to another, to a very great amount, without the inter- vention of the precious metals. These transferable credits have come in time to assume the form of " bank-notes," actually per- sonating the very metals themselves, and performing the functions of coins in the country in which they circulate ; and their operation upon prices is the same aa that of an increase of the stock of the precious metals. But as bank-notes are always local, if they be anywhere issued in undue quantity, the prices of commodities in the country where they circulate will be raised above their proper level ; that is, above the level at which they ought to be in that country, in due relation to the prices in other countries, with reference to its own power of commanding a supply of precious metals, by means of its surplus productions, suitable, in description and price, to the markets of other countries. A country having such an excess of circulating medium loses its command over the precious metals, for the purposes of commerce, by the same means as it obtains other articles of merchandise namely, by paying for it an advanced price proportioned to the redundancy of its local currency ; and the price so given is the measure of the depreciation. This is a sufficient exposition of the principle of currency and 92 LIFE OF J. DEACON HUME. of the first cause of depreciation, and it is perfectly consistent with the doctrines of the bullionists. We now come to the practical operations, or secondary causes; and in describing them, the bul- lionists again shall be my guide. When the prices of all commodities have been raised in a par- ticular country by a redundant quantity of circulating medium, its markets become attractive to foreigners as sellers, but repulsive to them as buyers; and importers return home* with gold instead of goods, because they can purchase no goods in that country at a price for which they will be reimbursed in their own country. If the issuing bank could continue to pay its notes on demand, these importers would continue to derive a most profitable trade ; but, as this is impossible, we will at once suppose what was our own case that the paper currency is not convertible into coin ; and then the two following consequences will shortly ensue: first, the stock of gold in the market will be sensibly reduced ; and next, the stock of those goods which are produced for the export trade will accumulate. In a little time after this the price of gold will have risen so much as to destroy the profits apparently gained on the sale of the foreign goods; and then a third consequence will follow namely, that there will be a considerable check to im- portation. This is a state of things which cannot be permanent. Trade never stagnates long, and some part of such a combination must in time give way. The manner in which the struggle will end, will determine the extent of the depreciation, by fixing the terms on which the foreigner will be willing, once more, to carry on com- mercial dealings with the country. Either the distress, which the holder of exportable goods begins to feel from the want of a sale, will make him disposed to lower his prices ; or, the want of im- jMirtablr goods will make the customer ready to give the foreigner ft better price for them than he did before ; or, a few goods being imported, gold will be less in demand for returns, and will become cheaper ; and thus, the jiarty who is wrong yielding in the con- test, the true relative values, computed in the local currency, of imports, of exports, and of gold, will be ascertained ; commerce will resume its functions upon an agreed basis, and goods, once more, will go in return for goods, let the ascertained amount of depreciation be what it may. The foreigner cares nothing for the depreciation of your paper, provided you allow him the proper PRACTICAL OPERATIONS. 93 discount. If you give him five-and-twenty per cent, more than he wants for his goods, he will give you five-and-twenty per cent. for your goods more than he considers them worth. But if you ask him twenty-six per cent, he will leave them, and will buy gold at twenty-five per cent, instead. In this way the value of the local paper currency comes in time to be measured, side by side, with the intrinsic metal currencies of the rest of the world ; and the degree of the depreciation is proclaimed in the public market price of gold. The moving cause of this result may be stated in a very short axiom, which is this that if you depreciate your currency by an excess of circulating medium, the foreigner will give a preference to your gold over your goods, up to the rate of the depreciation. It is not a preference to gold over paper, for, were it so, he would barter his own goods for gold when they came in ; but every merchant sells his goods, first, in the currency of the country he carries them to ; and then he considers what he shall buy with that currency to take back with him. This forces him to deter- mine whether he shall buy gold or goods ; and the terms upon which he prefers one to the other evinces his estimation of the currency in which he had sold his goods. A mercantile preference can have but one guide, and that is, a comparison between the respective prices of different articles at the place where they are to be bought, with reference to their respective prices at the place where they are to be sold. This is the preference intended in the axiom ; and I request the reader's attention to it, because it is the key to the question of depreciation, and we shall have much use tor it in the sequel. It is this description of preference which was intended by Mr. Huskisson and all the bullionists. Before I proceed to give to the foregoing observations that application, for the sake of which they have been made, I shall take a short retrospect of the period during* the suspension of cash payments, in order that the extent of the subject matter, as well as the question at issue upon it. may be well understood. The Order in Council, directing the suspension of cash pay- ments, was issued in February, 1797. No immediate rise, how- ever, in the price of gold succeeded that order ; and in 1799, the Bank had so completely recovered itself from the effects of those State measures which had, indeed, alone brought it into difficulty, that they not only then proposed to resume their payments, but 94 LIFE OF J. DEACON HUME. solicited permission to do so. Mr. Pitt, however, conceiving that the country might be called upon to make extraordinary efforts against the enemy, in which a command of the specie might prove useful, resolved to continue the suspension upon ]x>litical grounds ; and it must be acknowledged that the country was willing to leave the management of its circulating medium to the discretion of the Bank. In 1800, the market-price of gold rose about three or four per cent, above the Mint price; but this was mainly caused by the " great scarcity " consequent ii|>on the bad harvest of the previous year, which led to extensive and unusual importations of corn, at very high prices, and requiring extraordinary remittances to foreign countries. In 1801, the exchanges righted themselves again, and little more was thought on the subject till about the beginning of the year 1809. They say that from 1806 till about the close of 1808, the price was 4l. the ounce, or about 2 per cent, above the Mint price; that it then began to rise rapidly, until it l>ecaine about 1 5$ per cent, above the standard ; and there it continued up to the time of their report. We know that there was, afterwards, a considerable further rise, the excess being at times even above 30 per cent. ; but the average, from the close of 1808 to the close of 1814 may be fairly taken at 25 per cent. In the autumn of 1814, the exchanges rose with great rapidity; and notwithstanding the fresh breaking out of the war, which caused a relapse for a short time,* they recovered so effectually soon after the final peace, that by the middle of 1816 the exchange upon Paris was a quarter per cent, in favour of London. The fresh armaments all over Europe, which the return of Napoleon to France gave occasion to, must have caused a most urgent demand for gold for the supply of the various military chests ; and, added to the general dismay of the time, may well account for the relapse in price which occurred in 1815. But the progress which had been made before the end of 1814 in levelling the ex- change, followed by the consummation in the middle of 1816, notwithstanding such a powerful interruption, is sufficient to show, that if that interruption had not occurred, the level would, in all probability, have been effected a full year sooner. For these Upon the mere news of Napoleon's escape from Elba the exchanges fell ten per cent, in one day. This could be nothing but mercantile speculation, excited by a recollection of what had been the state of things so recently before. CIRCULATING MEDIUM. 95 reasons I divide the term of the suspension into the three follow* ing periods : The first period embraces about twelve years viz., from February, 1797, to the close of 1808. During this time the market-price of gold was above the Mint price, on the average rather less than 2 per cent. ; and, when all the circumstances of that period are considered, particularly the great occasion which Government had for placing funds in foreign countries, the public will not quarrel much with the Bank for that small excess. Indeed, it never would have been seriously thought of, if it had not been for the great subsequent rise ; but the subject is usually argued, as if gold had been exceedingly dear all through the term of the suspension. The second period in the division is one of six years, from the end of 1808 to the end of 1814, during which time the excess of the market-price over Mint price may be computed on the average, at 25 per cent. The third period is that from the end of 1814 to the resumption of cash payments, with which I have not any intention of med- dling, although I may illustrate my views of the general question by reference to some of its features. I now return to the discussion of that question, with reference to the price of gold from the close of 1808 to the close of 1814. I should, however, here remark, that the Bullion Report of 1810, and Mr. Huskisson's pamphlet which followed soon after, as well as the works of the other writers alluded to, must be deemed, not- withstanding their earlier dates, to be applicable to the whole of this period ; because the members of the Committee and all other bullionists always gave them that subsequent application. I have now faithfully stated the doctrines of the bullionists, in which I entirely agree, and I have truly related their explanation of the manner in which an excessive issue of paper terminates in a high price of gold, firmly believing that the effect which they predicate will always follow the cause which they deprecate. We have now to apply that explanation to the facts of the period we are about to examine, in order to see whether such a cause had then any existence. Let us then recur to our test. Was the price of gold raised above the Mint price, in consequence of a preference given by foreigners to gold over our goods ? In other words, did the foreign merchants at that time, find that the prices of the 96 LIFE OF J. DEACON HUME. goods we produced for exportation, or acquired in the way of our natural trade for exportation, were raised so much above their value abroad, that they thought it more to their interest to sacrifice twenty-five per cent, upon the bank-notes they had received for their imports in purchasing gold, than to lay out those notes in purchasing cottons, hardware, sugar, or coffee? This is a question of fact ; and unless it can be answered in the affirmative, the charge of depreciation brought against our currency must fall to the ground, and a verdict of acquittal be entered up ; for certainly there is not a single " count " in the indictment, as it has been framed by the authorities I have spoken of, that can be substan- tiated, if the proof of high prices of goods should fail. What was the language of advice, and of injunction too. which Mr. Huskisson distinctly addressed to the Bank of England in his treatise, when he meant to give to the proceedings of the directors a practical application of his doctrines ? " Reduce your issues," he said to them, " you will thereby lower the prices of our goods, which will then be once more the chief, or even only medium of remittance to foreign countries, as they ought to be, not only to pay for foreign goods, but also for the recovery of the gold, which the redundance of your notes has driven out of the country. By your excessive issues you have so raised the price of the goods which we ought to export, that the foreigners are compelled to leave them behind and take away the gold." This was the pur- port of the language of Mr. Huskisson, addressed to the directors of the Bank of England ; and such language, added to the whole tenor of the reasoning in his work, as well as to that of the reasoning of all able men, who took the same side of the bullion question that he did, can leave no room to doubt, that proof of a high price of goods, as well as a high price of gold, computed in a local currency, is necessary in order to establish a charge of depre- ciation against that currency. " Cash suspension " alone is clearly not enough, because, during suspension, the Bank might, from a morbid caution, so stint the circulation as that, for purposes of occasional convenience, a premium in gold should be given for notes; and again, if we should suppose that clipping, melting, and exportation, could really be prevented by a law, an intrinsic metallic currency might be so improvidcntly extended, that un- coined gold might be considerably above the Mint price in gold standard money, and even although there were no notes in cir- THE "CONTINENTAL SYSTEM." 97 culation. It is only by supposing extreme cases of this nature that principles can be tried. It may be observed, that no statistical tables or accounts have been introduced into these letters. There has been no need for them, because I have founded all my positions upon great leading facts, which are notorious to the public. The fact I am now about to bring to the recollection of the reader is of this description. I mean the ruinously low prices of our manufactures, and of our.'colonial productions, under the opera- tion, against England, of the " Continental System," during the six last years of the war. Prices are high or low by comparison ; but then it is material to consider what are the proper objects of comparison, according to the purpose of the inquiry. For our present purpose we are to compare the English prices with the contemporaneous foreign prices ;* and in doing so, we need not aim at any great accuracy, because the foreign prices of all those descriptions of goods, which we held in the greatest abundance, were so much above the English prices, that if we were to take them at only half the amount, the excess would still be enough to have given the exporter an enormous profit, over and above what he got in taking gold, even if he could have bought gold with his bank-notes at the Mint price. I mean to assert, that the prices of sugar and coffee, for instance, on the Continent, computed in gold, were four or five times higher than their prices in England, com- puted in bank-notes. I am speaking of the times of the " Berlin and Milan Decrees," and the British " Orders in Council ;" of the times of the " License System," and of the " Blockade System," of the times in which the French chemists discovered sugar in beet-root, and a substitute for coifee in chicory ; and wheu the English grazier tried experiments upon fattening oxen with treacle and molasses of the times when we took pos- session of the island of Heligoland, in order to form there a depot of goods to facilitate, if possible, the smuggling of them into the north of Europe ; and when the lighter descriptions of British manufactures found their way into Germany through Turkey. It will be remembered that the French decrees declared on one hand, that no vessel should enter a Continental port if she came from England, or even had touched at England. On the * No mistake can be greater than that of comparing the prices of thoae times with subsequent prices. II 98 LIFE OF J. DEACON HUME. other hand, our Orders in Council declared that no ship should go to the Continent unless she came from England. Whatever might be the military merit of this mode of retaliation, its commercial effect against ourselves was most pernicious. Our fleets had com- plete possession of the seas at that time, and they compelled every ship they met to make for a British port. The consequence was, that almost all the merchandise of the world accumulated in our warehouses, where they became impounded, except when some small quantity was released by a French license, for which the merchants at Hamburgh or Amsterdam had, perhajMi, given Napoleon such a sum as forty or fifty thousand pounds. They must have been strange merchants, according to the bullionists, to have paid so large a sum for liberty to carry a cargo of goods from a dear market to a cheap one. What was the ostensible alternative to the merchant ? Literally this either to buy coffee at 6rf. a pound in bank-notes, and send it to a place where it would instantly sell at 3. or 4s. a pound in gold, or to buy gold with bank-notes at 51. an ounce, and send it to a place where it would be received at 31. 17*. 10^7. an ounce. A man might as well pretend to deny all Bonaparte's victories, or even that there was such a person, as attempt to deny that such was the state of our intercourse with the Continent during the reign of the decrees. It is too absurd, of course, to say literally and distinctly, that the gold was remitted instead of the coffee, as a preferable mercantile operation ; and yet, if it was not so, under some explanation which I am wholly unable to conjecture, what becomes of Mr. Huskisson's advice to the Bank, to draw in a number of their notes in order to reduce the price of coffee to the sum at which it would be a preferable remittance to gold P I have never been able to extract out of all the writings of the bullionists but one descrip- tion of reasoning which could even seem to approximate to the shadow of an answer to this objection. I will state it, and expose ita futility. They begin with showing that all the human laws that ever were made have proved ineffectual in preventing the precious metals finding their way nut of the country which debases its circulating medium ; or into the country which contracts its circulating medium, in even a small degree, within the amount which is consistent with the preservation of its Intrinsic value. This is perfectly true; and in proof of it, it would be easy to show that the natural tide of the precious metals did really set in strong THE "CONTINENTAL SYSTEM." 99 upon England through the whole of the time in question. There was not a space on the globe at which we could gain access with some goods, as a valuable consideration, from whence the gold and silver did not spontaneously flow to us; and there was not a country in the world in which so large a quantity of desirable goods could be obtained, in return for an ounce of gold, as in England. But the error which those good people have fallen into, is this they are thinking of the facility of smuggling gold, and forget the diffi- culty of smuggling goods. The gold, of course, will not come, if the goods cannot go ; and that the goods could not go, at the time in question, is sufficiently proved by their current market prices on the different sides of the Channel.* The impediment was, the resistance of bayonets and cannons ; and the efficacy of the impe- diment is undeniable. I remember well to have heard it fre- quently said of Bonaparte, at the time when all this was going on, that he was constantly examining the English price current, in order to ascertain whether, and with what degree of success, his decrees were enforced by his own troops, and obeyed by his allies. So long as he saw that gold was dear and coffee was cheap in England, he was satisfied that his " Continental System " worked well. The English could see nothing in those documents but proof that the Bank was shamefully extending the issue of its notes. It is a most extraordinary thing that the people of England should have so strangely mystified themselves on the subject, as to have imbibed a general impression, that all things were dear during the time that gold was dear,; for there never was a greater mistake, and yet no man speaks ten sentences upon the " currency question," without talking of the high "war prices," as applicable to all commodities. Some descriptions of goods were, certainly, exceedingly dear ; but then, others were most oppressively cheap ; and the characteristic line to be drawn between them will be found to be a very curious one, when we come to examine the distinction with reference to the question at issue. The dear goods were those which we raised or imported, or partly raised and partly imported for consumption only, and of which, so far from having any surplus, we scarcely obtained enough for our own * If 60,000 tons of coffee, held here unyaleable at 6rf. the pound, while coffee was 4* or 5*. the pound on the Continent, is not evidence that the impediment was more than all the subtlety of mercantile men could overcome, it is in vain to look for proof of such a fact. 100 LIFE OF J. DEACON HUME. demand. The cheap goods were those which we made at home, or brought from our colonies, in quantities beyond our con- sumption. The cause of the dcarness of the first class lay in the difficulties and consequent charges under which alone the defi- cient quantities could be procured. The cause of the cheapness of the second class lay in the impediments to our gaining admis- sion for the surplus quantities in the countries of their proper markets. The false idea of universal dcarness being thus dis- pelled, by reference to these facts, I would ask, which of the two classes of goods, according to the above division, is the one whose prices bear most on the currency question ? I have a right to receive from every bullionist the answer, that the value of the circulating medium is to be tested by the prices of the exportable commodities, more than by the prices of the importable commo- modities. The mere fact of the great cheapness of the former speci- fically contradicts the charge of depreciation; while the clearness of the latter in no way alone implies depreciation. Then arise two other questions : First, has not the dearness of the importable goods been clearly accounted for, upon the common principles of supply and demand '** And next, can the cheapness of the ex- portable goods be accounted for consistently with an assertion, that the currency was depreciated at the same time ? There is one more point to be cleared up, and that is in respect of the quantity of exportable goods debarred exportation ; because it is necessary to consider, whether the quantity was sufficient to have produced a great effect upon the price of gold, under the supposition that the impediment to exportation had been removed. My solu- tion of this problem shall be distinctly adapted to the purpose of the inquiry. I am confident that the stock of goods which we held waiting a foreign market, over and above the quantities of them which we should want to retain for the home consumption, amounted in valuef to a sum equal to the whole quantity of gold coin necessary for the ordinary circulation of the country, when the Bank is paying its notes on demand. And in this valuation I do not take the extravagant prices at which, during the prohibitory system on the Continent, the scanty supplies, occasionally let in, The cause of the high price of corn, and other agricultural pro- duce, was fully pointed out in the third letter. f The value of the coffee alone, at a moderate price, in open market, would have given u upwards of six million* sterling. DEPRECIATION. 101 under French licenses, were then selling; but only the prices which at those times might have been expected in an ordinary state of commercial intercourse with an enemy's country, such as has been usual in other times of war. The proposition which I would establish is, that although de- preciation must produce a high price of gold, a high price of gold is no proof of depreciation, unless accompanied also by a high price of goods. It is the price of goods which rises first, and the price of gold rises afterwards, only because the price of goods had risen, and the foreigner is therefore willing to give a high price for gold, rather than give a still higher price for goods. A low price of goods that is, greatly below that for which they will sell abroad is utterly inconsistent with, and contradictory of, a charge of depreciation ; and therefore, if, when the prices of goods are low, the price of gold should happen to be high, we must seek another cause than depreciation for the high price of gold. Never was effect deduced from its cause more clearly, than that both the low price of goods and the high price of gold are deducible from the French decrees and the British Orders in Council ; and yet the bullionists so completely abstracted themselves from every existing fact, that they inferred depreciation, at once, from the high price of gold. It is true that they assert that goods were dear, and that the high price of gold did receive the confirmation of a high price of goods. But they took the wrong goods they took corn and other agricultural produce they took hemp, timber, barilla they took the very goods for which we had to give the gold, instead of the goods which ought to have been taken instead of the gold, and in return for which alone we can obtain gold itself. The only goods which can affect a question of currency in any country, are those which it naturally and habitually exports. In France it would be wine; in Russia, tallow; in Virginia, tobacco; in Norway, deals, and in England, calicos, hardware, sugar, and coffee. The price of agricultural produce, here, had no more to do with the subject than the price of admission to a theatre at Paris. And yet one of the modes of accounting for the strange misconceptions into which the bullionists fell, notwithstanding the light of their excellent principles which they had for their guide, is, that they assumed a general rise of prices from the clearness of agricultural produce ; a fresh proof, by the by, of the mischievous predomi- nance of a land bias upon every question. 102 LIFE OF J. DEACON HUME. Another mode of accounting for the prevalence of the error I have exposed, is the course pursued by the Bank during the bul- lion controversy, and the line of argument adopted by their lite- rary advocates. These parties entered the field of theoretical discussion, and attempted to overthrow the sound doctrines of Mr. Homer, Mr. Huskisson, Mr. Ricardo, and the rest of the true school ; their object was, to establish principles of currency upon which a cash suspension might be defended at all times. If they had applied themselves to the task of proving the inapplicability of those doctrines to the extraordinary facts of the then present times, and had said, " Look at the prices of the British exportable goods, and our immense stocks of them these are the represen- tatives of our absent coins ; with them the coins can be recovered whenever the interruption created by brute force shall cease." If they had said this, the unwelcome answer to them might have been, " Very well, we will keep our eye on those prices, and on those stocks, so long as that interruption lasts; but, remember, that as soon as the interruption is over, your cash suspension is over also ; and, therefore, be upon your guard, and take care that when the time comes, these stocks shall really be exchanged for the coins." But the bullionists should not have waited for the Bank to commence this dialogue, they should have given the injunction themselves ; and most happy would it have been for this country if they had done so : for then the finest opportunity in the world for retracing a step false in its nature, but right under the circumstances would not have been lost. The bul- lionists should themselves have pointed to the stocks of exportable goods, their immense magnitude, and their miserable prices, com- pared with their prices in their proper market abroad, and they fhould have said "In this we admit an exception to our rule; here is a force in operation which suspends the applicability of our doctrine.' 1 Happy, I repeat, it would have been for the country if they had done this, because then, the true cause of the high price of gold being acknowledged, the period of its natural cessa- tion would have been assuredly fixed upon as the period also of the cash suspension. Had that period been so fixed on, and resolutely adhered to as it would certainly have been if the caw had been understood we should have recovered our gold with increased prices of the goods which we sent out in order to bring the gold back. But the bullionists were thinking of nothing but triumph- CASH PAYMENTS. 103 ing with their principles over their antagonists, by whom those prin- ciples were most al>surdly attacked ; and the Bank was caring for nothing but continuing the cash suspension as long as they could ; and therefore, not defending themselves from unjustifiable assaults by pleading a justification which was of a terminable character. This letter has been extended much beyond the limits within which I hoped to confine it; but I cannot conclude it without endeavouring to fix on the mind of the readers the proposition I have advanced in the last paragraph, viz. : that we could have resumed cash payments within a short time after the termination of the Continental system, war or no war, with more ease than at any much later period. The means of acquiring gold are, the possession of such goods to give in return for it, as the parties having the gold are desirous of receiving. The Continent never could be more bare of all tropical productions, and of British manufactures, than it was rendered by the privations which that system inflicted on it. Neither could any other state of commerce whatever give occasion to so large a collection of such goods in this country, as had at the same time, and by operation of the same causes, been then forced into it, and there impounded. The people of a country which has lost its coins, by the high prices of its exportable goods, in consequence of an exces- sive issue of paper money, can only recover the precious metals by such a contraction of its currency as shall greatly reduce those prices. They must exactly retrace their steps ; they must make their markets attractive to buyers, and repulsive to sellers, except the sellers of the precious metals ; they must make it profitable to a foreign merchant, who wants the goods of a third country, to bring his gold first to them, and with it to purchase their goods, as the cheapest medium for obtaining from that country the goods he wants. Men who talk so composedly as they do of our alleged depreciation can have no conception of the misery which this country would have had to go through, if we really had lost our gold from that cause. The real fact is, that the prices of all our exportable commodities rose from fifty to a hundred per cent, during the time when the chief part of our gold was spontaneously coming in; and when we might most easily have secured the whole, if the Bank had given only a slight appreciation to our currency at the time. I*et us reverse this case, and imagine that, instead of the prices of our goods rising, as I have stated, they had 104 LIFE OF J. DEACON HUME. fallen considerably below what they had been and they most have done so if they had been depreciation prices and then we shall have some conception of the distress which must have per- vaded this country while it was undergoing such severe discipline. Let us, on the other hand, imagine that the Bank had seized the opportunity I speak of, for preparing speedily for the resumption of cash payments ; and, by an effort, which would then have been a very easy one, for the work was almost done to their hands, had consummated that work ; and then let us reflect on the number of troubles, and the mass of errors and misconceptions we should have escaped. The question of previous depreciation is not affected by the fault of the Bank in not taking the proper time for replacing the metallic currency. It is enough to prove, that there was a time when it could have been done, not only with the facility I have described, but also with the accompaniment of cir- cumstances the very reverse of those which must attend a recovery after depreciation. If any man doubt the fact, that the price of all our exportable commodities was very high in the year 1814,.! will refer him to the amusing annual statements which poor Alderman Waithman used to make in the House, for the purpose of showing the liberality, or the folly, or something but nobody could tell what of our exporters, in supplying foreigners with our goods so much more cheaply than we used to do. He always pitched upon 1814 as his dear period. But this extraordinary rise of the prices of our exportable goods at the time referred to, is as little considered in discussions on currency, as their previous low prices ; and to what must we attri- bute such remarkable neglect of so strong a feature of that ques- tion ? To corn corn, again ! Land, land and for ever. The price of corn, which proved nothing, fell, and therefore the prices of our manufactures and colonial produce, which alone affected the question, are to go for nothing ; although the first fell only because the expenses of importation were reduced, and the second rose only because foreign ports were opened for their reception. I cannot tell, sir, whether I have shaken, in any degree, the decision which has been so universally passed upon the currency question ; but of this I am sure, that if our currency was depre- ciated during the last six years of the war, the principles of currency, upon which the charge of depreciation is to be founded, have not yet been propounded to the public. THE BANK. 105 I defend the Bank up to the end of the war. Their conduct since, till lately, has been full of faults, and full of blunders- Their attempt to infuse gold into the circulation by paying it away in driblets, till they had wasted six millions of their trea- sure ; and, again, their quietly consenting to cash payments, and withdrawing their own small notes, while the country bankers were left at liberty to issue as many as they pleased ; the omission of the Bank to insist upon the revival of the whole of our original monetary system, if the part which immediately affected them was to be revived ; these, and many more matters, prove that there was a time when the Bank did not understand their business. But they understand it now ; they have had the lessons of costly experience, and there is ample reason to be satisfied with their present management. As to the suspension of cash payments, it might have been justifiable for a short time in 1797, because the Minister had brought the Bank to a stand-still before they were aware of their situation, and some time was necessary for them to recover a proper stock of metals and coin. This being done, the suspension was indefensible, in my opinion, until the continental system came into operation. If, during the operation of that system, we had resolved to keep a metallic currency, our circulating medium must have been contracted * to a degree which no man at present contemplates. If sixpence in metal could not be attracted into the country for a pound of coffee, which would ensure the holder of it three or four shillings in France or Holland, I do not * We must either hare given up the use of a bank, and been content to see the price of a fat ox brought down to 10.., or we must have given up the Orders in Council. I consider that our pecuniary difficulty lay in the Orders in Council, and not in the French decrees-, and I go so far as to say, that if we had not retaliated, I would not have admitted the decrees to have justified the cash suspension. The stoppage of the direct channel of remittance by the enemy was not a sufficient excuse ; but when we ourselves stopped all indirect and circuitous channels, and thereby brought also the American embargo upon us, it is most preposterous to talk coolly of tho never-failing efficacy of mercantile expedients; or rather, not even to deem such a state of things worthy of mention, in treatises upon currency, intended for the ue of the very times in which such things occurred. 106 LEFE OF J. DEACON HUME. see how a bank could issue a single note more than it could pay in specie at the same moment. I am, sir, your humble servant, H. B. T. POSTSCRIPT. If any bullionist should condescend to notice this letter, with a view to its refutation, I hope that he will keep close to the point. He must apply his reasoning to the fact that all exportable articles were, in this country, far cheaper, computed even in Bank notes, than they were in the countries of their proper markets in gold. The reverse of this fact has hitherto been assumed by all the writers who have insisted on the depreciation of our currency. In the works of Mr. Huskisson, Mr. llicardo, and Mr. Mushett, there is not to be found the slightest trace of any impediment to commerce. Future historians may very fairly endeavour to prove, by arguments drawn from their total silence on the " continental system,' 1 and their constant assumption of free agency in the merchants, that the Berlin and Milan Decrees and the British Orders in Council were fabulous traditions. I have been desired, since this letter appeared, to re-peruse the Appendix to Mr. Kicardo's pamphlet, which he wrote in answer to an article in the " Edinburgh Review," upon the previous edition of the pamphlet itself. It is long since I looked into any of these treatises, and I turned with haste to this Appendix, imagining that I should have found something which I had formerly overlooked ; but far from it the Appendix, like all the rest, proceeds wholly on the assumption, that " coffee, sugar, &c. M were cheaper, in France than in England. I will give a quotation from the Appendix, as a specimen of remarks and illustrations which might be selected from the writings of the bullionists, suffi- cient to nil a volume. " The only proof which we can possess of the relative cheap- nen of money in two places, is by comparing it with commo- dities. Commodities measure the value of money in the same manner as money measures the value of commodities. If these commodities will purchase more money in England than in France, we may justly say that money is cheaper in England, and that it is exported to find its level, not to destroy it. After comparing the value of coffee, sugar, ivory, indigo, and all other exportable commodities, in the two markets, if I persist in sending RICARDO. 107 money, what further proof can be required of money being actually the cheapest of all these commodities in the English market, in relation to the foreign markets, and, therefore, the most profitable to be exported ? What further evidence is neces- sary of the relative redundance and cheapness of money between France and England, than that, in France, it will purchase more corn, more indigo, more coffee, more sugar, more of every export- able commodity than in England." I suppose Mr. Ricardo con- sidered everything that could be put into a ship an exportable commodity, or he would not have jumbled corn into this latter list ; but the reader will remember that I have applied the word " exportable " to those commodities which a country produces habitually beyond its consumption, as contradistinguished from what we may denominate its consumable commodities. Certain manufactures and colonial produce are our " exportable" commo- dities ; and my position is, that so long as we possess them in great abundance beyond our consumption, and the prices of them are very greatly below their prices in other countries, the pheno- menon of a high price of gold does not prove the assertion that the currency is depreciated ; nor is the coincidence of a high price of corn, which may be the effect of famine, a sufficient corroboration of that assertion. So much for the classification of commodities : but Mr. Ricardo did not attempt to say that the high price of gold proved depreciation, notwithstatuling the low prices of all our exportable commodities ; he assumed that these prices were higher here than in France. He imagines the peaceful merchant in his counting-house, with no other weapon than his pen, nor ammu- nition than his ink, coolly calculating and finding that gold will be a more advantageous remittance to France than coffee or sugar, because, consulting the prices-current, he sees that " money will purchase more coffee and more sugar in France than in England." Now we know that this assumption was not merely untrue, in anything like the ordinary degree in which prices vary, but that it was extravagantly, ridiculously untrue : for that coffee and sugar were 500 cr 600 per cent, dearer in France in gold and silver than they were in England in bank-notes, and that for four or five years together. It is quite in vain to say that the depre- ciation of the currency is proved by such writings as this ; and it will be found, that the reasonings of all the bullionists are based upon the same false assumption, accompanied at the same time 108 LIFE OF J. DEACON HUME. with a total want of the discrimination necessary to be made between those commodities, which are properly the exportable commodities of the country, and those which it could- only produce or import to satisfy its own wants. If, therefore, I repeat, any bullionist should condescend to notice my exposition of this subject, I hope that he will under- take, this time, to prove that the high price of gold did not require the corroboration of a high price of goods in order to prove that the local currency was depreciated ; but that the price of the gold was proof alone, even notwithstanding the miserably low prices and the enormous stocks of our exportable commo- dities. It is, of course, too late for such diffuse reasoncrs to fall back upon the truism, which the simple price of the standard metal affords. If the whole question lay in the price of gold, it could have been answered in three words, and there would have been no need of three hundred pages of elaborate argument. A patient tells hi* physician that he has a pain in his side ; the physician immediately pronounces that the disease is in the liver, and then, with great volubility, describes a variety of symptoms connected with the origin and progress of such a disease, and which symptoms he also assumes the patient to be suffering under. The patient, as soon as he can obtain a hearing, assures the physician he has not one of those secondary symptoms ; on the contrary, he has some symptoms directly opposite to those described. " I don't care for that," says the physician ; " you have a pain in your side, and that 's enough to prove to me that your liver is diseased, whether you have the other symptoms or not." The patient would be very likely to say, " I have no doubt that the man who, in addition to a pain in his side, has all those other symptoms you describe, has a diseased li ver, but I shall take other advice before I submit myself to the remedies which you prescribe." The truth is, that if we search an inch beyond the main fact of a high price of gold, we find that all the subordinate facts run counter to the doctrine of depreciation, as its progress and workings have hitherto been expounded. It is very excellent to furnish the world with sound abstract treatises on currency ; but the public have a particular case before them, and they want information expressly upon that case. Under circumstances so extraordinary as not to have their parallel in the THE QUESTION. 109 history of human affairs, we agreed, at a particular period, to dispense with a metallic currency, and to adopt a substituted circulating medium. Now what the country wants to know i>, whether in that interval of time the substituted currency fairly performed the duties of its absent principal ; they want to know whether the prices of goods at that tune were unduly raised by an abuse of the substituted currency, in order that they may know whether the difficulties under which they labour now, twenty years afterwards, in consequence of low prices, are attribu- table to a fall of them from an improper elevation ? They do not want to know how much the true levtl of prices would have been deranged on the side of depression, if, under such circumstances as we were placet] in. with nearly the whole world combined in a conspiracy to deprive us of the use of the precious metals, we had resolved to employ a metallic currency they want a rule for judging, by means of which, setting aside the extraordinary influences on both sides, they may be able to estimate the fitness of the prices, according to the ordinary operation of supply and demand according to the quantity of the precious metals in existence, and according to the share of those metals to which, upon mercantile principles, we were entitled. In the quotation I have given from Mr. Ricardo, he says, and says most truly, "The only proof which we can possess of the relative cheapness of money in two places, is by comparing it with commodities in those two places." Our money at that lime was wholly paper, unchecked by gold as its test or regulator ; it was, therefore, peculiarly fit to be tested by the prices of com- modities in countries where money was subjected to the ordeal of the precious metals. Now I mean to assert that, from this trial of its value, our currency of that day will come out triumphant. It is a positive fact, that England was the cheapest country in the world during the time when gold was twenty-five per cent, and upwards above the Mint price. I am told, that if I admit the possibility of dis- turbance by physical force, I deny the theory of money. Then the surgeon who recognises the power of the tourniquet, denies the theory of the circulation of the blood. 110 LIFE OF J. DEACON HUME. I i I i i i; VI. To the Editor of the MORNING CHRONICLE. Sin. January 31, 1834. When men use the proverb, that "honesty is the best policy," they are not contemplating that highest policy of which no reasoning mind ever doubts, but they mean to intimate that those persons who always forbear to seize the opportunities of in- cidental power for pushing their interest beyond their rights, will generally find, in the end, that they have adopted the most politic, as well as the most honest, course in the management of their worldly affairs. But parties who suffer present evil from the conduct of those who have not philosophy enough to trust to this maxim in doubtful cases, or who want the virtue to act justly without it in all cases, are not bound to defer their rights- before the claims of dishonesty until they can make out a clear case of impolicy also, to the satisfaction of those by whom their rights are invaded. I have in several places sufficiently intimated my opinion, that the land interest have greatly misconceived their policy ; but whether I bring them round to this opinion or not, I shall equally call upon them to desist from acts of injustice. " The Rights of Industry" do not depend upon my proving, even to impartial minds, that our agriculture would have been hi a much more prosperous condition than it is, if there had never been a Corn Bill ; much less do they depend upon my making converts of the landed interests themselves to such a view of their case. In "skimming the papers" on a club-table, within these few days, I fell upon a letter from some very angry gentleman of Land, in which he says, in a mighty high tone, " Prove to us that the price of corn will rise, as a consequence of free admission, and we will be very ready to give up our Corn Act." In another place, he says, " that the man must be an incomparable coxcomb who would pretend to predict what the price of com would be after the repeal of that act," forgetting that the Corn BUI itself was founded upon predictions of this nature. Such an effusion might have been suffered to pass quietly, if we did not know that this gentleman is only an impatient spokesman of the sentiments of his class ; and, therefore, whether I venture or not, under the peril of this denunciation, to make the forbidden estimate, I have at least the boldness to tell him, that the price, whatever it would be without a TITHES. POOR LAWS. Ill Corn Act, is all that he or his friends who possess land can, as honest men, demand of those who have none. It is absolutely necessary to discharge the subject of all the false chums of the landed interest, before either the question of their particular policy, or the question of the general policy of the nation, can be advantageously discussed. I have, in former letters, disposed of those claims which are founded upon burdens created by the long and arduous war which terminated about twenty years ago. The National Debt, I trust, will no more be pleaded by the landed interest as the justification of a Corn Bill, either upon the ground of its magnitude or that of its composition ; and it may be hoped that, even in other quarters, the composition of the debt will be thought a little better of than it has been. I now propose to offer a few observations upon the claims which the landed interest found upon their liability to tithes, to poor-rates, &c., and to taxation in general. Of tithes, it may be enough to say that they existed long before that most abstruse and highly theoretical maxim in political eco- nomy, called " protection," was invented by " practical men ;" and they have always existed, as a positive charge upon land, un- qualified by any right conferred on the owners of land to re- imburse themselves from the moneys of the rest of the community; except so far as such a charge may, by the operation of trade, under some circumstances, infuse itself into the prices of the pro- ductions of land. If, after one-tenth part of the produce of a field ha* been taken for the tithe, a law is to provide that the value of the nine other parts shall be increased by one-ninth, the owner of the field pays no tithe at all ; and I believe that no man will say that it never was intended that the burden of tithe should be borne by the landowner. A Corn Bill, granted for the purpose of relieving the land from tithes, is a deliberate transfer of a charge from one party, who is liable to pay it, to another, who is under no such liability ; and nothing but an increase of population, which has added greatly to the value of the remaining nine parts of the produce of the field, could have enabled the owner of it to execute a device for making the people pay him also for the tenth part, which never was his property. The poor-laws are of older date than the importation of corn; they existed through a long term of exportation, when the owners of land neither had, nor could have had, any protection upon the 112 LIFE OF J. DEACON HUME. ground of the charges they incurred in supporting their poor. The circumstance of our having passed from the condition of an ex- porting to that of an importing country, can give them no right to be re-imbursed those charges by the trading part of the community, although it supplies them with the machinery for enforcing such a claim ; and, indeed, if we reflect upon the number of idle persons who were supported by the great landowners out of the produce of their estates, before commerce and refinement had altered the habits of society, by converting squires into gentlemen, and boors into artisans, the poor-rates would appear to be little else than a substitute for the former practice, tardily adopted after an interval of great disorder, under which the landowners were the greatest sufferers. There is nothing in the first institution of the poor- law, nor in the early practice under it, upon which the landed in- terest can found a prescriptive or traditional right, to throw upon the rest of the community directly or indirectly, by any device or contrivance whatever the charge they incur in maintaining the surplus part of the population of their respective parishes. The demand of an additional price for the produce of their lands upon the ground of that charge, amounts to a claim for personal ex- emption ; and if we follow out the proposition contained in such a claim, it will be found to run into the most extravagant con- clusions. Suppose the labouring population of an agricultural parish, which had brought all its lands into complete cultivation, to have been at any given time so exactly measured to the work to be per- formed in it, that none but the sick and infirm should require relief. In a few years this happy adaptation of hands to work would inevitably be deranged by the natural increase of popu- lation ; unless the portion which constituted the surplus could be absorbed in the various occupations of other parts of the country. The facilities for effecting their migration must depend very much upon the prosperous condition of the manufacturing part of the people; and their ability to support this agricultural surplus would be evinced only by their ability to employ them. But suppose that from some cause of distress such, for instance, as being forced to pay a high price for corn, while their foreign competitors were able to obtain corn at a low price, the manufacturers were unable to find employment for this agricultural surplus of people in their works, would it not be an extraordinary proceeding to POOR RATES. 113 t require them to remit money to the respective parishes oF those people for the purpose of supporting them there in idleness? And yet a law which enhances to the manufacturers the price of corn, upon the ground of the poor-rates paid by farmers, amounts to nothing short of such a requisition. Nor can the manufacturers see any end to such demands, except in ruin to themselves and the farmers too ; fur, let us imagine that in a pariah in Sussex, the work and the work-people had twenty years ago been balanced in a manner just mentioned, and that the lands in it produced at that time for the market, after feeding its inhabitants, a thousand quarters of wheat, which sold at sixty shillings the quarter ; but that now the population had become so much increased, that the quantity left for market was only eight hundred quarters, and that the farmers, therefore, demanded seventy-five shillings the quarter. If their demands were ac- quiesced in uixm that ground, the disposable quantity, at the end of the next twenty years, might be only six hundred quarters, and the price must be 5 the quarter ; and thus, in process of time, the whole produce of the parish would come to be consumed upon its own lands, were it not that such false systems must explode before these extremities are arrived at, or even very closely approached. According to the Agricultural Report of last session, there is a considerable extent of land in Sussex which is very expensive in the cultivation, and which yields scarcely three sacks of wheat to the acre. Such land must require the labour of many hands ; but yet we are told that there is not sufficient employment, in the several parishes, for their respective populations. In these places, the case we have been supposing would soon be realised, if the farmers are to throw the burden of their poor upon Birmingham and Manchester ; and the owners of such lands would do well to consider, whether they are not manoeuvring for the filling of workhouses in their own parishes, which they may find that they must support, instead of factories in the manufac- turing districts. But in what light are we to view the significant lamentation poured out over these barren soils by the Committee and their witnesses ? Can they possibly mean to intimate that the people of this country are to be fed upon a scale of supply, measured by the produce of land which yields but three sacks of wheat to on acre, in return for expensive cultivation ? Can they I 114 LIFE OF J. DEACON I1OIE. i really harbour an inclination, to smite the country, as it were, with such a degree of virtual sterility? The highway-rates are a description of charge which naturally attaches to the superficies of a country. The various roads are in the ratio of that superficies, and the more numerous they are, and the better their condition, the greater is the advantage of those persons who own or occupy the surface of the country over which they pass. But the receipts of tolls form the great fund of the main highways of the kingdom, and from this source lines of communication have been made, by which the value of land, in numerous and extensive district", has been greatly enhanced. The chief ground upon which the landed interest demand rc- imbursement of such charges is, that they are not borne by their foreign competitors. If this be so in regard to highways, I can only say that their foreign competitors have the worst of the bargain. If an addition can be made to the price of corn upon the ground of the highway rates, it must be upon the principle that it is a charge which ought not to fall upon land ; and how such a principle is to be maintained I cannot conceive. The couuty-rates are another grievance complained of; but the occupiers of land, and the dwellers in rural situations, are the parties most interested in the purposes for which those rates arc chiefly expended. I can see no ground upon which the landed interest should throw their portion of these expenses upon the other members of the community ; but this they will do if the price of corn is artificially raised upon the ground of the county- rates. But the landed interest do not confine their claim of indemnifi- cation to those taxes or rates which attach immediately to their lands ; they intimate in no doubtful expressions, that they must be supplied with the means of bearing their share of the general taxation of the country. Heavy duties have, of late years, been imposed on horses, carriages, servants, wine, and other articles of their use and consumption, and they conceive that their liability to these duties constitutes a right in them to require that tluir in- comes shall be proportionally raised. Their incomes are the rents of land, and as rents cannot be increased except the prices of agri- cultural produce be increased, they have brought themselves to believe that they are entitled to compel the public, by the aid of a law, to pay higher prices for bread and meat, in order that they HIGHWAY AND COUNTY RATES. 115 may compete, as I suppose, with foreign landlords in keeping horses and carriages, and using other luxuries. It must be admitted that very strange ideas are entertained generally of taxes. They are recognised by every man, as a burden, and yet every man thinks he is ill-used the moment he feels the slightest sensation of the burden on his own shoulders. The common remedy in these days is to call for a repeal ; but the landed interest only demand re- imbursement. Give us plenty of rent, they say, and we will not complain of taxes. There is but one construction to be put upon this conduct it amounts to a plain arowal that the landed interest are, in effect, to pay no taxes. A demand of increased price of corn upon the ground of taxes is a demand of an exemption from taxation. Nothing but an open market for the consumer can enable him to compel the producer to pay his own taxes. If this country choose, in the midst of all its pecuniary diffi- culties, to indulge in acts of profuse liberality to particular classes in the country, let it do so with its eyes open, and, at least, let the objects of its generosity confess their obligations. Every sum paid under legal compulsion, for a commodity beyond its natural price in open market, is a positive tax upon the consumer of that com- modity, whether it go into the national purse or into a private pocket. We are under the necessity of raising a large revenue, and it has become a matter of great difficulty to fix on subjects through the medium of which the power of the population to hear taxes should be advantageously exerted in the production of the required amount This power is expended in vain with reference to the national purposes, in the degree in which it is made to exert itself for the purposes of private interest ; and when the public collector romes with his demand, he finds that power almost ex- hausted by the previous demands of private collectors. The tax- p iving power is limited of course ; but if the whole of it were exerted for the State, the receipts of the revenue would overflow, and relief from the more injurious taxes would be easily granted. The heavy burden of public taxes under which the country labours, is supposed, by many persons, to constitute the very reason why it should be burdened with private taxes ; an idea which is so strange that one hardly knows how to deal with it. The proposition, which is supposed to lie conclusive to this purpose, is, that in a country which is so heavily taxed alluding to general 1 1 6 LIFE OF J. DEACON HUME. taxation, not a specific tax, which may be and always is counter- vailed ctrtain trades the cultivation of barren land, for instance cannot be supported, unless the public be compelled to purchase its productions at arbitrary prices. Now, it appears to me, that the true form of the proposition would be, that a country which has already such heavy and necessary burdens upon it, cannot afford, and ought not be expected, to take upon itself other and unnecessary burdens. If we had very few or very lijiht public taxes, then, indeed, we might give way to whims of generosity, and agree to pay taxes for the sake of supporting private indi- viduals in losing trades. But when we hear it often questioned whether it will be possible to keep the revenue up sufficiently to satisfy the public creditor, it is most outrageous to plead such a difficulty as a reason for paying over immense sums, raised upon the people, to parties who are no creditors at all, and who have not a shadow of claim upon the general funds and resources of the country. It is said that these sums are s|>ent in the country so also, I say, are pensions and sinecures ; but a tradesman has only small thanks to the man who lays out in his shop the money he had first taken out of his pocket. The public may rely upon it, that the cause of all our fiscal difficulties lies in the protective system. The people cannot pay public taxes and private taxes too. But the evil does not stop here ; because a protected trade is, of course, a losing trade, or it would not want protection ; so that the means of paying taxes are crippled into the bargain. Those means must be in profitable and not in losing trades. The particular amount of taxes which are paid by those parties who are supported in carrying on losing trades by contributions from the rest of the people, forms an insignificant sum compared with the amount which would flow with ease from the country at large if none but profitable trades were pursued. Analyze the farming accounts of that land which yields only three sacks of wheat to an acre, in return for great labour of horse and man, and ascertain how much that land contributes to the State by its own productive powers, after deducting what is first contributed towards its cultivation out of the sources of employments which really are profitable; and then it will be seen in what manner the taxes* which are paid by the thriving part of the people, are intercepted in their way to the National Treasury, and the difficulty we have in raising a sufficient revenue will be understood. I wish, with all RIGHTS OF THE LANDED INTEREST. 117 my heart, that the lands of the kingdom were of a quality to yield, by their intrinsic value, the rents out of which the owners are paying their taxes to the State ; then, indeed, their contributions would be valuable, because they would be made without impairing the powers of other people to pay their taxes also ; then might our agriculture boast of being the " foundation of all our prosperity ;" but it is the greatest delusion imaginable to suppose that the ex- penditure of the higher orders is beneficial to the revenue, or to the interest of the country, if the means of it be not drawn from the sources of real and unfactitious property. It appears to be perfectly clear that the rights and immunities to which the landed interest lay claim are of a description which cannot be contingent upon any property whatever. There is no intelligible principle upon which the owner of an estate can be held to possess more than that estate. In the earliest and rudest states of society mere accidental pre-occupation was a title to land, which time afterwards sanctioned. In later times, grants from the ruling powers constituted the original right, and the priority of the right to'grant claimed by every State, is familiarly shown in the conduct of the European governments respecting the lands in their colonies. The common assent which mankind taken in their most collective character as possessors of the earth have given to the appropriation of spots of land to particular indi- viduals, as their exclusive properties, is founded upon the con- viction that they would be better supplied with food from the land, through the interested exertions of those individuals, than they would be through the combined efforts of the community in its corporate capacity. The human race were not bound to concur in partial seizures and distributions of the surface of the earth- except under the expectation of universal bent-lit ; and had this expectation been disappointed, we may rest assured, that the system would not have descended to our times within many gene- rations. In the beginning, the quantity of land compared with the number of inhabitants, precluded almost the idea of value, much more the contemplation of a monopoly ; and we know, beyond a doubt, that no right of monopoly is contained in the grants of land made by any State. How strange a proposal it would be for settlers in Canada, when they are taking their grants of wilderness at two or three shillings an acre, to desire the insertion of a clause in the grants which should be the foundation of a Corn JJill a thousand 118 LIFE OF J. DEACON HUME. years hence ; in case the population should by that time be such as to require more food than all Canada could then produce ; and when, perhaps, their descendants would be receiving, as annual rents, ten times the amount of the purchase prices, computed at the same relative value of money. It cannot be pretended that in any case whatever the original grantee acquired with his land a right of taxing his fellow-subjects for his own personal benefit ; the land, and nothing but the land, wus granted to him : his successor can have no more. In the name of the working classes, and in defence of the rights of industry, and in behalf of every man who has no land, 1 call upon the landed interest to be contented with their estates is that an unreasonable demand ? I am, Sir, your humble servant, II. B. T. LETTER VII. To the Editor of the MORNING CHRONICLE. SIR, February 12, 1834. We are now in condition to consider the " policy" of the Corn Law. The respective "rights" of the conflicting parties the landed interest, and the trading interest have been pretty fully discussed. The "rights of industry" are found to consist, in the liberty of the workman to exchange, in their best market, the fruits of his labour, for those necessaries and comforts of life of which he has need. The rights of the landowner consist, in the exclusive proprietary possession of a particular portion of the superficies of our common country, upon which no man may take any part, without first paying to him the sum for which he agrees to exchange it. But it is the very essence of human laws, that all private right should be held subject to limitations for the public good ; and the question therefore is, whether the public good requires that the exercise of either of these rights should be sub- jected to any description of restraint ? No reason has, as yet, been assigned, or pretended, for imposing any restraint upon the land- owner ; the free exercise of his rights are supposed to be perfectly consistent with the general welfare ; and he is left in the unlimited enjoyment of them. But not so the workman ; restraint is im- posed on the exercise of his rights, and it is for those who impose THE LANDOWNERS. 119 that restraint to show the national necessity for guch a measure. There can be no doubt that the original right of a workman to the fruits of his labour is of a character far superior to that of the right which any particular man can have to any particular portion of the earth. The right of the workman is founded in nature, the right of the landowner is conventional. The restriction which is imposed on the rights of the workmen by the Corn Law has not even the outward show of being in- tended for the public good ; and it is in vain to tell the landowner that the burden of the proof, that it is so intended, lies on him ; because we see him, on every occasion, claiming the benefit of it as his peculiar right. It is his own case which he perpetually pleads, and it is upon the merits of the case which he thinks he makes out, that he demands an extra twopence of every poor man for his loaf. Nothing can exceed the indignation or resent- ment with which thorough-going landlords treat every man who hesitates to admit the justice of their demand ; and we occasionally see some of them, of the first rank, travelling to county meetings in splendid equipages to enforce their claim to those twopences. In your paper, sir, of the 6th instant, there is a report of such a meeting in the county of Suffolk, at which a noble lord felt himself entitled to say, that " A cry for an alteration in the Corn Laws proceeded from a base, democratic spirit in the country that wanted cheap bread for its fellows, no matter what injury the agriculturists sustained." I can assure that noble lord, that I have not, in my sentiments or inclinations, a particle of that de- mocracy which he thinks is the sole enemy of his rental. So far from it. that what remains to me of my animal strength should be exerted, if necessity arose for it, in the defence of his aristocratic privileges and of his proprietary rights. But I would remind him, at the same time, that his indignation is warmed up by feel- ings of a direct, personal, pecuniary interest; while it does happen, as he must know, that among those who would advocate a greater freedom in the trade of corn are to be numbered many men of great virtue, talents, and attainments ; aye, and some, too, of deep interest in landed property. Look at Lord Grenville's pro- test was he a base democrat ? As to the affected care of this Suffolk nobleman for the " agriculturists" it is sad meanness. Why, sir, the Agricultural Report rings, from one end to the other, with evidence of the heartless depredations of the landlords 120 LITE OF J. DEACON HUME. upon the capital of the farmers. The agriculturist, my good lord, ia in no danger except from bis landlord. It is the deduction of the " lion's share " from the gross produce, which impoverishes the farmer ; and these lamentations over him are only the growl of the lion while making the division. The trade jof farming, as a trade, is invulnerable by competition in an importing country ; and if it is not a trade, what is it is it an office ? The sole cause of the farmer's difficulty lies in an ill-conceived, impotent corn law ; and in the obstinate confidence with which the owners of their farms have relied on its efficacy in fixing their rents. But, my good lord, you have got your corn law, and you have got your distress too what do you say to that? If " Democracy" is only to be starved down, and if bread is to be made dear for that pur- pose, what steps will "Aristocracy" take, when bread is cheap, in spite of all the corn bills it can devise and pass ? IIow low is the country to be brought before the landed interest will admit that their scheme works downwards instead of upwards? I must not quit this part of the subject without stating, that although the ill-judged words I have been commenting on were uttered by a particular nobleman, I use them only in the most abstract sense, and without attaching to them any idea of an indi- vidual person. It would be trifling with the subject not to consider the landed interest as demanding the exclusion of foreign corn, for the sake of their own private benefit ; and, except that they assert that their luxuries and enjoyments are the only alembic through which the industry of the country can be converted into prosperity and wealth, I do not know that they even attempt to state a public ground as the basis of their particular pretensions. If they be right in their views, they have certainly a pleasant duty to perform, and they might, at least, go about it with a little better humour. Hut has it never occurred to them that they might enlist many recruits into this service, which they so voluntarily undertake to perform alone 't that pensioners and sinecurist* might be multi- plied, and that the salaries of all placemen might be doubled ? It would make no difference to the public whether the taxes which they would have to pay for this purpose, went first through the Exchequer, or went directly into the pockets of the parties, as the bread-tax does; and we may be quite sure that these recruits would not be backward in luxurious expenditure. But perhaps AGRICULTURE OUTGROWN BY TRADE. 121 we ought to admit that the trial is too much for human nature. Few men can argue against a proposition which goes to prove that they benefit their country and become patriots by keeping two carriages instead of one, and by drinking claret instead of port. In all this, however, the landed interest have only fallen into a most common mistake ; they have seen trade and agriculture in- crease together, and being misled by coincidences, which pride and avarice prevented them from comprehending, they have mistaken the effect for the cause. We have long passed that point up to which the prosperity of a country is based upon its land. Our trade has outgrown our agriculture, because it has led to an increase of population which the land can neither profitably employ nor plentifully feed. What it is to have a redundant population the landed interest well know, and the more trade is cramped the more redundant will a given population prove to their cost. I know they think that there is a circle of employment to be found in the HOME TBADE, in which the same internal elements of pro- sperity may be perpetually revolved and improved that as mouths increased in number bread would get dearer, rents would rise, expenditure enlarge, home trade flourish, and the power of the people to pay for the bread increase with its price. The particular trades which act as purveyors to the luxuries of the rich cordially believe in this view of national prosperity , and the country shop- keepers, who during the " war prices " felt the influence of them in an unusual expenditure of the farmers' families, pant for the return of dear bread, and imagine that a price, created by Act of Parliament, is the same thing as a price created by actual circum- stances. Home trade and agriculture may, indeed, run a round of the nature described, while a country is passing from the practice of exporting corn to the practice of exporting manufactures ; but then the increase in the price of corn will be a natural effect, partly of an increase in the home demand of corn for the con- sumption of the export manufacturers, and partly of a propor- tionate relief from dependence on the more remote foreign markets for the sale of the surplus quantity. When this surplus is absorbed by a general increase of population, and the import trade is kept at its usual amount, by means of payments made with manu- factures instead of corn, the two branches of industry may be considered as balanced; but with this advantage to the side of 122 LIFE OF J. DEACON HUME. corn, that it henceforth saves the charges of exportation. But if the increase of population should not comprise a new body of manufacturers, capable of supplying commodities for the foreign market, besides having mouths enough to consume all the home- grown corn ; then, not only would the import trade be lost, but the home trade and the agricultural would languish together, and the country would become little else than one great poor-house. On the other band, if the additional population consist chiefly of manufacturers, \vh<> produce commodities suitable to foreign markets, and the export of those commodities materially exceed in quantity the corn which had formerly been exported in return for the imports the case of the country is thenceforth entirely changed, and its future prosperity will be based upon trade, and not upon land ; and no imaginable measure can be so injurious to land as that which may impede the progress of trade. It happens very unfortunately that the chief part of this transition in our case took place during the war; because the contemporaneous effects of the war, which was totally unlike all other wars, were so mixed with both the causes and the effects of the transition, that the public have never been able to separate them ; and the consequence is, that the most fatal mistakes have been made in the appropriating and consorting of causes and effects relative to the events of that period. It was about the time when the improvements in machinery and steam-power were making their greatest strides, that the then vain-glorious, military France thought proper to despise trade, and to deride us as a " nation of shopkeepers ; " and this affected contempt for trade, accompanied by a positive neglect of it, when added to the impediments to the progress of trade, which war of almost any description, still more a war of a revolutionary character, must have interposed on the Continent, gave to us the possession, as it were, of a patent for manufactures against all the world. The " nation of shopkeepers" had the undisturbed enjoyment of this patent for full fifteen years ; and until Napoleon, who at last saw the effects of the folly of the French, had recourse to his conti- nental system, which he ushered in with the well-known decla- ration, that he wanted only "ships, colonies, and commerce." These two quaint expressions were, perhaps, of more portentous import to the affairs of man than any other words that ever were uttered on the authority of man. They designate respectively " SHIPS, COLONIES, AND COMMERCE." 123 two eras of most extraordinary consequences ; and although most men still look back upon them with astonishment, and with a vague consciousness that they were of a wonderful character, still no one attempts to consider seriously or distinctly what that character was. The first era was marked by the most extraordinary advances in opulence that ever occurred in any country. The trade of the world, taken as a whole, was, no doubt, lessened by the war ; but we had nearly all of it ; and as the causes by which we obtained such an enormous share were of a nature to make it also a mono- poly of trade, the profits of it were extremely large. Here then arose, at one and the same time, two very powerful causes of increased consumption of agricultural produce, and both decidedly of a temporary nature the one wholly so, the other so in a great degree. The first was the war, bringing with it a lavish use of such produce in the military and naval services ; the second was an entirely new demand for such produce, by reason of the extra- ordinary start which, partly in consequence of the war. and partly in consequence of the freshness of the inventions referred to, our manufacturing industry then took of all the world. The enormous profits which these circumstances threw into the hands of the landed interest, and the effect of these profits in swelling the gross amount of the national (Hit, have been pointed out in a former letter ; but the means which the contemporaneous increase of general commerce afforded to the country for bearing the burdens which were then brought upon it by the war, and by the extravagant prices of agricultural produce, were not then taken into consideration either as an explanation of the past, or as a lesson and a powerful lesson it furnishes for the future. That commerce was supported chiefly by profits drawn from foreigners for exported articles, which, for the reasons before- roentiontd, we were then able to produce at less than what had been the previous cost, either to them or to ourselves : and this very power, upon the remnant of which alone we now subsist, was, happily, in its greatest vigour in the hour of our greatest need. But, besides this, our " national shopkeeping " propensities so long as we were left to indulge in them without the interference of rival;), and had also, as was then the case, the whole ocean almost to ourselves led us into a very extensive and lucrative traffic in foreign commodities. Nearly all tiie colonies of Europe were at 124 LIFE OF J. DEACON HUME. the same time in our actual possession; and so great was our command over foreigner*, for prices which should cover all charge*, that we shipped to the colonies even the high-priced corn of England. Through the whole of this period the landed interest believed, and they still helieve, that their great profits constituted the national prosperity, which then enabled the country to furnish the loans as they were wanted although they spent all their money themselves as fast as they got it and also to supply the sums raised in the current year by taxes, although the public was all the while piying to them, in extraordinary and un-earned profits, four times as much as the taxes they contributed. These are some of the grievous mistakes which the landed interest blinded, as I am justified in saying, by pride and cupidity committed in those days, and which, unfortunately, they have never rectified since. And the tearful problem, affecting the salvation of the country, which remains to be solved is, whether they will discover and correct their errors in good time and there is not much time to be lost or will obdurately wait till facts past question will dispel the mist from their eyes, and they wake, as it were, from a delusive dream, only to survey and to lament, in useless penitence, the mischiefs they shall have brought on themselves and all around them. 1 have in this letter only broken ground on the policy of the Corn Laws ; and my inclination is to follow out, to their legitimate conclusions, the points of that subject which have been barely propounded. But your columns, sir, can afford me but little space during the sitting of Parliament ; and it happens, too, that my own avocations press upon me at the same time. Delay, also, is rendered of k-s importance by a late ministerial declaration. Nevertheless, I shall not lose sight of the subject my feelings upon it will not suffer me to do so and I may, perhaps, seek a future opportunity of impressing upon the lanued interest the great and important truth, that they never did, nor ever will, experience prosperity by any other means than the secondary effects of our foreign commerce. I am, sir, your humble servant, H. B. T. CONCLUSION. It is manifest that the landed interest have FOREIGN COMMERCE. 125 mistaken the means and sources of their prosperity. At the end of nearly twenty years of trial of their own nostrum, accom- panied by an immense reduction of taxes in the second year of abundant harvests with a protection, amounting to a total prohi- bition of foreign corn, and at a time when other interests are, at least, without immediate cause of complaint, the distress of agri- culture is such that it is proclaimed from the Throne and reiterated in both Houses of Parliament. The landed interest have either aimed at more than is attainable, or, in their impa- tience, they have sought their object by wrong methods, i believe the error td be of the latter description. A country like this cannot be isolated from the rest of the world ; it cannot take an arbitrary level at its own choosing : it has never done so ; and the condition, aimed at by the corn law since the peace, is totally new in practice. A country requiring foreign markets fur its surplus industry, to the great extent that England does, can no more assume a station inconsistent with the relations of commerce than it can create a peculiar atmosphere for itself. In the case of the precious metals we have seen how vain it is to attempt a fictitious local standard it is only not quite so difficult to fix an artificial local price for corn. Commerce is the unrelenting rectifier of either error ; and the only difference in the operation is, that in the one case the correction is rapid and palpable, and in the other it is slow and lingering, and not readily perceptible to common observation. The foreign price and the British price have a natural tendency to assimilation, whether direct mixture be per- mitted or not. The influence of the foreign price is felt through the medium of the exports ; it comes back upon the British price in the form of low returns for those exports. The only question is, at what level shall they meet? The landed interest are manoeuvring for the lowest level that can be apprehended in any case. Their plan depresses the price abroad, and the home price must be drawn downwards the more. If they would take courage and consent at once to direct mixture they would elevate the foreign price, and thereby arrest the downward progress of their own prices. Those of the landed interest who are not so besotted as to despise foreign trade, seek to extricate themselves from the dilemma ol their position by professing unlimited confidence in the superior faculties of British industry, and the greater energies 126 LIFE OF J. DEACON HUME. of the British workman. I l>eg them to follow out this view of the question. Suppose it to be true, as they say, that one Man- chester factory- man is equal to two foreigners, are those superior powers their property or his? Have they a right to make him earn- douhlc weight for their emolument ? Are we to treat a superior breed of men as we would treat a superior breed of horses ? But are not the labourers in agriculture of the same breed ? We know they are ; and it is also known, that the fanner as well as the manufacturer obtains a greater produce from a given quantity of bone and muscle in England, than in any foreign country whatever. But the landed interest are afraid that we shall become dependant upon foreign countries for food. Let them, I say again, follow out also this proposition; to what conclusion does it lead them? Simply this, and no other that the population must be kept down by starvation. This is treating the high-bred Manchester workman rather worse than the high-bred horse. However severely the horse may be matched by his unfeeling master, he is sure to have all the iiivigoratioti that the most heartening food can give him. But suppose it to be the policy of the nation to check the increase of the people by the dearness of their food- would that be a reason for giving the additional part of the price to the producers? Most certainly not. The instrument used for the purpose should be an excise tax, the produce of which should increase the public revenue for the general benefit. And yet, notwithstanding the strength of my case, I will agree to a compromise. The whole difficulty of the subject lies in a misappropriation of the soil of the country caused, in the first instance, by the high war prices, and imprudently kept up since the war, under the fallacious promises of the corn laws. We have lately purchased Negro emancipation let us now make a similar, and a far easier, effort to purchase Corn emancipation. If about a million acres of our strong arable lands were laid down in (or for) grass, the quantity of corn withdrawn from the market would be such, that the foreign supply would not be able to distress the good lands. The scheme of our agriculture is absolutely defective from the want of a greater breadth of inferior grass land : the graziers, notwithstanding the richness of their pastures, and the high price of meat, complain much of low profit, from the want of lean stock at reasonable prices. THE COMPROMISE. 127 The outline of the plan is to impose a duty of 10*. the quarter on every species of corn ; to be reduced by Is. a year for five successive years, until it settled at 5s. the quarter. The produce of this duty might be a fund to be applied in bounties to those landowners who should lay land down to grass, under covenauts not to break it up again within twenty years, without returning the bounty and the interest upon it. There might also be given to the parishes in which this conversion of land took place, and in proportion to the quantity converted, some of the money to assist a part of their labourers to emigrate, if they should be disposed to do so. That there is no way out of our difficulty, except by giving up the arable cultivation of a large breadth of our worst laud, 1 am most confident. The only question is whether the consummation shall be brought about in a sure and beneficial manner, by a legislative measure, or left to the slow operation ot distress. The corn farmers are like trees too closely planted none flourish until a sufficient number of the weakest have died off. The measure I suggest is like that of the woodman, who thins them out at an early state of their growth. I propose the same duty upon oats, barley, &c., as upon wheat, because a greater encouragement to the spring corns would lead to a more wholesome and more ameliorating system of husbandry. I am not at all afraid of the difficulty of the details for the work- ing of the measure I have here suggested. 27th February, 1834. H. B. T. These letters attracted the attention of, amongst others, Sir Benjamin Hawes, who thought not only that they bore internal evidence of being the compositions of Mr. Hume, but that they displayed such an amount of sound political economy, combined with a practical acquaintance, equally large, with all the details of trade and commerce, that he was the only person who could have written them. To Sir Benjamin Hawes it was entirely owing that these letters were republished ; for no sooner had Mr. Hume admitted that he was the 128 LIFE OF J. DEACON HUME. author, than he urged the reprinting of them in the form of a pamphlet. It was not without difficulty that Mr. Hume was persuaded to commit them a second time to the press. He thought few persons would read them except in the columns of a newspaper. The publication, however, was most successful, and a second edition was speedily called for. In the early and more moderate days of the Anti- Corn Law League, the energetic directors of its move- ments published copious extracts from those letters in the form of a tract, whiclrthey circulated through the country we might literally say by the ton. 129 CHAPTER V. ALTERATION iv THE LAWS RELATING TO SILK MR. DEACON HUME VISITS THE PRINCIPAL SEATS OF MANUFACTURE POLITICAL OPINIONS EVIDENCE BEFORE A SELECT COMMITTEE OF THK HOCSB OP COMMONS MR. HUSKISSON MANCHESTER CHAMBER OF COMMERCE MR. DEACON HUME'S STATEMENTS RESPECTING SMUGGLING CANVASSED IN PARLIAMENT BY THE EARL OF DERBY. " It is to the increasing wealth of the manufacturing population and the progress of industry, and not to artificial regulations for creating high prices, that this country must look, not only for relief from her burthens, but for the power of making fresh exertions, whenever her situation may demand them. It is not in the power of any artificial measures to give that real relief to agriculture, or to any other mode of occupation, which can only fiow from the increasing activity and increasing industry of the people." HUSKISSON. IT has been correctly observed, that " the manufacture of silk is singularly characteristic of the industry of France and England, showing the addiction of the one to luxury, of the other to utility. Of all the views which can be taken of this subject, this is the most interesting and the grandest Profit and loss may captivate the merchant's mind ; the financier, the states- man, may consider labour as a mine of national wealth, and some ministers will hold it to be a source of taxation ; but philosophy, which comprises these and every other view, which presides over them all, will never be satisfied by any inquiry wliich is not at once K 130 LIFE OF J. DEACON HUME. the most minute and the most comprehensive. Industry should be turned every side ; it ought to be considered by men of every vocation : its most enlarged and noble properties relate to the intellectual history of human beings. This is the aspect by which it will unite at once the views of the merchant, of the statesman, and of the minister ; for in tracing up their respective idols to a common origin, they will find that the only source of private profit, of public wealth, the only taxable commodity, is mind. Philosophy, too, not only directs the present researches, and the future prospects of men, it is the great preserver of all that we have acquired, and embalms the memory of all that we know. The art which has deposited its principles in the archives of philosophy will never perish." Though silk goods have been made in England from the time of Edward III., it is only within the last thirty years that the silk manufacture can be said to have been firmly established in this country. Its progress was long impeded by a system of duties and restrictions intended to benefit the manufacturer. " That useful competition," said Mr. Huskisson, in 1824, "which gives life to invention, which fosters ingenuity, and, in manufacturing concerns, promotes a desire to produce the article in the most economical form, has been extinguished. The system of prohibitory duties has had the effect, to the shame of England be it spoken, of leaving us far behind our neighbours in this branch of industry. We have witnessed that chilling and benumbing effect which is always sure to be felt when THE ACT OF 1824. 131 no genius is called into action, and when we are rendered indifferent to exertion by the indolent security of a prohibitory system. If the same system had been continued with respect to cotton manufacture, it would at this moment be as subordinate in amount to the woollen as it is junior in its introduction into this country." But such a state of things was not to be for ever. In the year 1824, the system underwent an important change. Mr. Deacon Hume was much engaged at this period in the preparation of legislative measures relating to the silk trade. He drew the bill, by which the system of prohibiting the importation of foreign manufactured goods was prospectively repealed, and a scale of duties adopted, under which such goods might be imported. The duty of 5s. 6d. a pound upon raw silk, and 14. 8d. upon thrown silk, was reduced ; on the former to 3rf., on the latter to 7. 6cL a pound.* He also framed the table of duties for the Act of 1826. Had he been able to follow his own convictions entirely, instead of those of his superiors in office, the measures referred to would, in some degree, have been different, and the duties would have been further decreased. During the years 1830 and 1831, the subject again engaged the attention of Parliament, and at the close of the latter, Mr. Hume undertook, at the desire of the Government, a tour of observation through some of the principal seats of manufacture, which he thus notices in a letter to a friend. * These rates were afterwards further reduced that on raw silk to It/., and that on thrown silk to 3. Gends upon how bad they must be before the landed interest discover that they are going upon a wrong tack, and literally working against them- selves. " I some time ago read the article which is to surprise the present Lord Londonderry with the news, that his brother and Mr. Canning were identified. I shall be glad to see the answer. Mr. George Villiers is in Paris, and one of a joint commission discussing the commercial relations of the two countries, I despatched to him yesterday three sheets of notions, which I hope may be useful to him." Mr. Hume proceeded from Birmingham to Coventry, Manchester, Salford, Stockport, Glasgow, and some other places engaged in the silk manufacture, including the district of Spitalfields. During this tour, which . 'TOUR THROUGH MANUFACTURING TOWNS. 133 occupied him nearly six weeks, he wrote some interest- ing letters to Mrs. Hume connected with the subject of his mission. Silk in fact was an article to which, not unnaturally, he very frequently referred when he found himself at the head of his family circle, consisting of young ladies. Sometimes he would indulge in a disquisition upon this topic, and its extensive bearings, and would provoke a laugh, of which he was fond, by remarking as he con- cluded, " And all this about ladies' dresses." Or, in a somewhat graver mood, he would say, " You may smile, but you have little conception of the breadth of this subject, and of the anxietj which this single article of your dress occasions the Government of this country." A manufacture, he might have added, which was so much valued by Roman ladies, and so much satirized by the Latin poets, because it had the double advantage, as they deemed it for the days of hoops and crinoline were not yet of covering the body, and yet of showing the form ; a manufacture which, it has been also said, though it was unknown in England at the beginning of the thirteenth century, has long since descended from the highest to the lowest rank of society, and is now to be found in almost every shape, even in the wardrobe of the peasant Though in politics Mr. Deacon Hume was a Whig, yet he was not addicted to party : and would sometimes maintain that he was of no party. He thought for himself. But though he took no active share in its con- flicts, it will not be supposed that he was an uninterested 134 LIFE OF J. DEACON HUME. spectator of political events. He was, of course, in favour of the repeal of the Test and Corporation Acts. As a member of the Church of England, he maintained without fear of the Pope, the Christian duty of granting the claims of the Roman Catholics. He contended for it, as was natural to him, upon the ground of right. So far was he from regarding the Act of 1829 as an inroad upon the constitution, like Dr. Arnold, he viewed it " as a fulfilment of it :" that is to say, " if by the Constitution be meant a system for the Government of the Commonwealth upon the principles of liberty and justice." He was a reformer in the true sense of the word. And herein he differed from Mr. Huskisson, who, as he stated in the outset of his speech on the East Retford Disfranchisement Bill, had " a settled aversion to every system of what is called Parliamentary re- forms," and who only voted for the disfranchisement of that borough, and to give two representatives to Birm- ingham, upon the principle maintained by Burke, that " early reforms are amicable arrangements with a friendly power ; late reforms, capitulations with a con- quered enemy;" and because the rejection of the proposal would " pave the way for a measure so fatal in its consequences as a general Parliamentary reform." Mr. Deacon Hume, while he entirely agreed with Mr. Huskisson in the vote which he gave upon the East Retford question, with bolder views, and greater foresight, contended that so far from its being fatal, a general measure of Parliamentary reform was to be desired ; that it might not only be granted with perfect security, A REFORMER. 135 but that it would be in itself a source of safety. He consequently hailed the Reform Act of 1831 with much satisfaction. The following extracts from letters written about this time to a friend, chiefly with reference to import duties, currency, and reform, will be read with interest. The treaty with Brazil, alluded to in the first, he speaks of elsewhere, as a " substantive treaty, but smelling strongly of the Portuguese connection." " Board of Trade, 2nd December, 1829. ** I send you an extract from, and a comment upon, the Brazil Treaty. Have you read Mr. Western's letter ? * I have been ex- pecting that the tactics of the landed interest, would lead them to currency. It is the most plausible cry they can set up, to divert attention from the cheapness of corn abroad. I mean to look, more narrowly than I have yet done, into the arguments of the letter, and to be prepared with some answer to them ; for I con- eider the production as a feeler, put out in good time, prepara- tory to the battle which must before long be fought." " IGth November, 1830. " It would be many years before India could increase the growth of sugar to the extent of the produce of the West Indies ; two cwts. of which is equal in strength to those of the Indian. But if India were now growing ten times our consumption, it would be at a very great price, by reason of the freight. Sugar is now brought from India at what is called dead weight. The general cargoes arc light goods ; and the ships being very large, they require a con- siderable quantity of heavy goods to stow in the bottom. To the extent of this room, as dead weight, the sugar is carried for a very low freight. Whenever this quantity should be materially ex- ceeded, the freight would rise enormously ; for then, ships must be sent out in ballast to bring the sugar, which is the case now, to the West Indies, and I leave you to conceive what the cost would be in the one case compared with the other." M.P. for Essex, a terwards Lord Western. 136 LIFE OF J. DEACON HUME. 11 16/A November. I had fully intended to call upon you to-morrow about two, and perhaps I may still be able to do so. But, ' whereas doubts have arisen,' in consequence of Mr. Herries having appointed me to be with him nearly at that time. We are up to our eyes in colonial intercourse. The deed is done in America, as you see, and we must come out immediately with our measures, which are to determine the footing upon which the trade is to be carried on." " Board of Trade, 6th January, 1830. " I have lately bad upon my hands a great deal of business in my own private affairs, and we have been far from idle at the Board of Trade. The consequence is, that I have not done 4 Corn.' Another cause of postponement is, that I have been doing ' Bullion ;' and that in a way, as it appears to me, to introduce corn the better. I am intent upon giving in my entire paper before the session. But you are to understand that I am professing (that is, to Lord A., for I have said nothing about it to Mr. T., who ' writes himself), to lay before him, in a condensed form, all the lucubra- tions which have fallen still-born before his predecessors. " I long to know your ideas, again, on political matters. We seem quieter, but I believe that it is only in expectation of satis- factory measures. If disappointment come, the storm will only be the more violent. I am told that the old party is reckoning upon forcing their way in again. Personally, I have no objection ; neither would I object to their system, if I thought it manageable. But my firm belief is, that the resistance of popular wishes, which would be the basis of their measures, must lead to revolution." ' My visit to the manufacturing districts took place in an era full of extraneous difficulties, and yet trade made, by its own energies, a good head against them. It will have a new and vigorous spring before long, just in time to give eclat to the reform, unless the torch be set to that train of continental com- bustibles which has its source and origin in France. No man's opinion, in these days, is worth anything, except it be hypotheti- cally given with reference to the possibility of great and un- governable events. Cholera, French Revolution, Belgium, Poland, Reform, Brazil, Mexico, &c., &c. : all working against the trade POLITICS. 137 of this country. And yet the people employed in the factories have all along been earning a fair livelihood. Our difficulties are with the unemployed : it is therefore that we want more work, and to obtain it we must take corn. I am satisfied as to our power to consume an enormous quantity beyond our growth. Such a fact answers the arguments of tLe agriculturists by fixing upon them a grievous responsibility. As to the Reform Bill, I do not expect that you will give up your old notions until a few elections have proved to you, that good Houses of Commons can be formed under its provisions. I think the aristocracy, as a body, is well taken care of. They must, some of them, behave a little better but I do not see any harm in that. How wretchedly have the ultras managed their case ! Give me a definition of wisdom in the conduct of our affairs, and try by the test of it, the in- tellect of the ultra lord. If mischief should ever ensue, it will be the fruit of their conduct, and not the necessary consequence of the reform." " Russell Square, Idth Octobtr, 1831. ** Aly former letter was an acknowledgment of yours and not an answer to it. I thank you for ' going off' on the subject of the bill. You remind me that you are an irreclaimable auti-reformer. This saves observations in detail, and such discussions must gene- ralize as much as possible. For many years I have, almost intuitively, applied a touchstone to all public questions, which leads one, as I think, to the most useful consideration of them. I ask myself, what is the line of the working, that is, the natural tendency of the matter at issue ? A sound answer to this question gives the policy of the proceedings upon it. The Duke thought that the true policy lay in unbending resistance. I believe no one doubts now that a very little yielding on his part would have satisfied the subject for a considerable period. The Lords, much worse than the Duke, because after experience, dismiss the bill with insult; and what is the consequence? Only that every man is now a reformer of some sort. Looking at what I believe to be the ' tendency,' I see nothing but evil in delay. I fear that the term* of to-day will never be mended by those of to-morrow. In some cases time works for you ; in some it works against you. The Tories ought to have taken the country at its word. They are now off the bargain, and, when they come to treat again, will have 138 LIFE OF J. DEACON HUME. no reason to complain if the price be raised instead of being reduced. The House of Commons would never have objected to the Lords making some amendments, and the people were in humour to admit that they were entitled to a voice in the framing of the law but a total rejection, an actual spurning of a four months' hard work of the Commons is a course of proceeding which, I fear, will never be forgotten. I look to ultimate conse- quences. It was not necessary for the Lords to give proof of their power, and it was unwise to select an opportunity for doing so which must raise the revolutionary question in millions of minds whether it be not a dangerous power, and one necessary to be curbed ? The Lords have said in plain terms, that the people never were represented and never shall be. Must not this make a question between the Lords and the people, which may only be settled by a trial of strength ? What I fear is this. Ministers will modify the Bill to save the credit of the Tories, in case they should be disposed to give way. The " efficiency," however, being preserved, it will be lost again, and ministers will go out. Now I will suppose that tranquillity is preserved ; but the new minister will be unable to get on with the present Parliament, and a new election follows. 'I hen comes the tug of war. The next House of Commons will be far worse than the present, and away goes the new administration. Whigs, with a still stronger infusion of liberals, will come in, and a fierce political struggle between the two houses will ensue. The radicals will be encouraged the moderates disgusted, and a bill, ten times worse than the present, will be passed, just in time to save a revolution. The conduct of the press is a part of the tendency ; and there- fore scolding is useless. I do not see how Lord Grey can do other than stand or fall by his measure, and if so, he must either have resigned or made the declaration he did. Early in the year 1832 another motion was made in the House of Commons upon the subject of silk. And on the 1st of March a select committee was appointed to "examine into the state of the silk trade, and to inquire what effects have been produced by the changes EVIDENCE ON THE SILK TRADE. 139 in the law relating to it since the year 1824 : and whether any, and what legislative measures, compatible with the general interest of the country, may be advis- able, in order to promote it, or to check smuggling in silk manufactures: and to report their observations thereupon to the House."* Mr. Deacon Hume, was the first witness called. He was informed that his attendance was required in order that the committee might learn from him the changes which had taken place in the laws relating to silk, and also to supply certain Custom House accounts which he would be able to furnish. He then proceeded to state that he had been employed in 1824 in preparing the Act of Parliament of that year, that he drew the bill, and had framed the tables of duties on the Act of 1826. That the intention of the Act of 1824 was to substitute a protecting duty of 30 per cent, in lieu of total prohibi- tion. Two years had been given before the Act came into operation, during which period " the trade " became of opinion that an ad valorem duty would be ineffectual. They suggested rates of duty by weight ; and that they should be computed so as to afford thirty per cent., as nearly as such rates would admit, and it was upon that principle, and in consequence of the * The committee consisted of Earl Grosvenor, Mr. H. L. Bulwer, Mr. Poulett Thomson, Sir Robert Peel, Mr. Alderman Venables, Mr. Courtenay, Mr. G. Bankea, Mr. Hume, Mr. Alexander Paring, Sir H. Parnell, Mr. Frankland Lewis, Mr. Powell Buxton, Sir M. Stew art, Mr. Strutt, Mr. Heywood, Mr. Stewart Mackenzie, Mr. E. Stewart, Mr. Shield, Lord Dudley Stuart, Mr. A. Sandford, Mr. James Morrison. 140 LIFE OF J. DEACON HUME. change of opinion in the trade, that the tables of 1826 were prepared, before importation commenced. The table of 1829 was not framed like the former. There was a modification ; twenty-five per cent, was adopted in some cases, and even more than thirty per cent, in others. But, excepting one article, he was of opinion that the table of 1829 compared with 1826, increased rather than reduced the protection. Upon being asked, whether, since the modification was applied to different qualities of goods, the duty was intended to be more or less than 30 per cent, on an average, he replied, that he did not feel the application of an average ; since the duty on one article did not average with the duty on another, for each paid of itself. The rate in 1829 was meant to give 25 per cent, on plain goods. The officers were allowed, at their sole option, to take an ad valorem duty instead of the rate ; but there was no instance in which they had a right to demand more than 30 per cent, if they required the goods to be entered at value. In 1826 there was no choice; there were some goods that could not be rated, but there was no choice except in instances of millinery, or things of that sort. In 1829 there were alterations in the rating of many of the articles, and in some there was none. The plain silk which had been 15. a tt>., was reduced to 11*. the It). ; 1 5. was understood to be 30 per cent, in the former case, but in the latter, Us. was understood to give only 25 per cent. ; then there came the figured satin goods ; they were reduced, but still they were meant to give 30 per cent. ; others were left at the EVIDENCE ON THE SILK TRADE. 141 original duties with the knowledge that they gave more than 30 per cent. So that in fact, there were three divisions of silk goods; some, where the principle of 30 per cent was adhered to, others, where it was taken at 25 per cent, which is a reduction, and others for which certain duties were assessed amounting to more than 30 per cent But these last were not alterations. Though he drew both the schedules of 1826 and 1829, his instructions were very different upon each occasion. In 1826, 30 per cent, was to be strictly adhered to. In 1829 it was agreed that there should be no universal rule. It was in fact a matter of discussion during the entire period that he was engaged in drawing up the tables. In the first case there was a universal rule, in the other there was constant discussion without a fixed rule. He was of opinion that the table of 1829 practi- cally increased the protection as compared with that of 1826, except on one article. Upon being asked if in the table of 1829 the duty was fixed at the minimum cost of smuggling ? Mr. Hume replied, that such was the intention of the Government of that day : it was believed that the articles on which they left the higher duties unreduced were less likely to be exposed to smuggling than those on which they had reduced the duties. The silk trade thought a great deal more than. 30 per cent necessary. There might be various opinions as to the stopping of smuggling, but he believed that when the temptation was great it was very difficult to put an end to it In 1826 he had entertained a hope upon the subject as to the 30 per 142 LIFE OF J. DEACON HUME. cent., that it could be collected ; but smuggling, like everything else, had been lowered] in price. The protecting duty of 30 per cent did not operate in the way the Government anticipated. It was imposed to prevent smuggling; but smuggling went on. So far as smuggling was concerned, prohibition was more effectual than a protecting duty. He thought the smuggling of an article that cannot be legally possessed within the country at all, might be more effectually guarded against than that of one which is admissible, however high the duty; a more rigid rule might be adopted, and the severity of the law be applied with greater decision, so as to make it more effectual. French manufactured goods, however, were less dis- tinguishable, he believed, than formerly, and if that were the case, the success of detection would of course l?e lessened. Though smuggling had, he be- lieved, increased of late years, it had been by means of packages of various assortments ; from all the informa- tion he had been able to obtain, his opinion was, that plain silks by themselves were not much smuggled. Smuggling in the sense in which it is understood to be important, occurred chiefly, he understood, in inferior gauzes. That 25 per cent might not lead to occasional smuggling of plain silks, by themselves, he did not mean to deny. It was a near race between smuggling and regular entry, and the mixture of some high-dutied gauzes would decide the question in favour of smuggling. He had been asked whether he considered that there was a disposition generally in the trade, supposing they EVIDENCE ON THE SILK TRADE. 143 had the option, to pay five per cent, more on the goods to the revenue than they would save themselves to that amount by smuggling ? He thought that they would : the regular importer could give his order, and could have it executed immediately ; he knew when his goods would arrive : and he must also allow something for a man's wishing to comply with the laws of his country. These considerations put together were probably suffi- cient to induce men rather to give, say 25 per cent, in duty for goods than to smuggle them at 20. It might be possible always to keep the duty rather above the cost of smuggling, buc he was not prepared to say that 25 per cent., or any other percentage would be the proper sum. He wished to be understood as speaking from the impression which his mind had received in consequence of those inquiries which, in his situation, it was his duty to be perpetually making. The price of smuggling was variously stated, and whatever it was then it might become lower. As to the question whether the change in the law had had the effect of stimulating exportation, it had amoved the impediment from inferior articles; the result of which was, that the fine Italian silks were made into superior goods for the use of this country, and that the East India silks were made into inferior articles which suit the export trade. The law, he considered, had done good ; the home silk being dearer by reason of the duty on foreign silk : the exporter required the drawback for the one as well as for the other. It was beneficial to the consumer or worker 144 LIFE OF J. DEACON HUME. of fine silk in this country. There were no parties to whom the drawback was injurious, unless it was to the throwsters of Italian raw silk. He did not conceive that any fine silk goods whatever were exported ; there was no export, or very little, of goods made from the Italian thrown silk, or from British thrown silk of a similar quality. The duty was a direct evil to those who work up the description of thrown silks liable to it ; the drawback was an indirect alleviation of it, and was a direct benefit to those who work up a different description of thrown silks for exportation. With the duty continued, the drawback, he thought, must work beneficially upon the whole trade. Such, though much abridged, yet in his own words, was Mr. Hume's evidence. The change from total prohibition to moderated protection, little as it might avail in preventing smuggling, was nevertheless an important step in a right direction. The Act of 1824, which substituted a protecting duty of 30 per cent, in lieu of total prohibition, will accordingly be remem- bered. And though it fell short of Mr. Hume's con- victions as to what ought to have been done, even at that time, he never regretted that he had so large a share in what was effected. As is well known, it produced the utmost disquietude amongst the majority of manufacturers, who contended that they could not possibly meet the competition which it was destined to produce. That their mills would be worthless, and that both the employed and the employer would be ruined. No terms were deemed too harsh or severe to be applied GOOD RESULTS. 145 to Mr. Huskisson, who was also subjected to the heaviest obloquy from his opponents in Parliament. Upon one occasion, he said, " I have been assailed and distressed by appeals to my feelings, calling upon me to commune with my conscience and my God, and to say whether I am under no visitation of compunction and remorse. That man must have a heart of stone who can witness without sympathy and pain the distress which now exists among our manufacturers. I hope I am not wanting in the duties and feelings of a man. I have also a duty to perform as a minister, to trace the causes of the present calamities, and to prevent, if possible, their recurrence."* Who the true philanthropists really were, was soon made manifest ; and, also, who were the false prophets. The improvement was gradual, and it was permanent. The poor rates were not burdened. We were able to compete with foreigners. In the ten years preceding 1824, the qiiantity of raw and thrown silk used by our manufacturers amounted to 18,823,1 17lbs., being an average of 1,882,311 Ibs. per annum ; that in the ten years immediately fol- lowing the change of system, the quantity used was 36,780,009 Ibs., or 3,678,001 Ibs. per annum, being an increase over the average of the former period of 95 per cent ; and that, in the sixteen years ending with 1849, the consumption was 66,376,645 Ibs., or 4,148,540 Ibs. per annum, being an increase of 120 * Sir Robert Peel, it may be remembered, applied these words to his own case in thu year lb 46. L 146 LITE OF J. DEACON HUME. per cent upon the quantity used under the restrictive system. " Notwithstanding the great increase in the quantity of silk employed in our looms, the quantity of thrown silk imported has not at all augmented during the last sixty; but, on the contrary, has sensibly diminished. The spur of competition has driven forward the manu- facture in both its branches. Improved machinery has been introduced into our throwing-mills, the effect of which has been to lessen most materially the cost of the process ; and, by the adoption and improvement of the machinery of Jacquard, our weavers are now enabled to produce fancy goods, the quality of which is, with few exceptions of little importance, fully equal, and, as regards some sorts, superior to the quality of goods made in France, although the cost of production is not yet reduced to the level of that country."* Previous to the year 1824, the silk manufacture was substantially limited to two places. Soon after, to adopt the words of Mr. Hume, " While Spitalfields and Coventry were protesting that without assistance against foreigners, they could carry on their trade no longer, Manchester quietly stepped in and took it out of their hands." f Not only did the silk trade extend itself to Manchester, but it established itself at Norwich, Paisley, Macclesfield, Derby, Leigh, Sudbury, and other places. Subsequent to this period, owing to foreign compe- * Porter's "Progress of the Nation." t An Essay bj Mr. Deacon Hume on the Corn Laws, in the fourth number of the ' British and Foreign Review." EXTENSION OF THE SILK TRADE. 147 tition, and to improved processes of manufacture in this country, the price of the article has been greatly reduced ; so that the use of silk, which was formerly entirely confined to the higher classes, has been extended to every class of the community. The trade is not subject to so many fluctuations, and the employment of those who are engaged in the manufacture is not liable to so many alterations. The Manchester Chamber of Commerce, and the manufacturers of that town, viewed the subject in a different light to that in which it presented itself to the generality of the English of like occupation. Resolutions of approval were passed in the year 1825 by the above- mentioned Chamber, and in 1839 it again expressed its opinion in the following terms : " That this meeting regards the present as the proper occasion for reiterating its adherence to the opinion so often declared by this Chamber, that the prosperity, peace, and happiness of the people of this and other nations can be alone promoted by the adoption of those just principles of trade, which shall secure to all the right of a free interchange of tlu-ir respective productions ; and this meeting, on behalf of the great community whose interests it repre- sents, feels especially called upon to declare its dis- approbation of all those restrictive laws which, whether intended for the protection of the manufacturing or agricultural classes, must, in so far as they are operative, be injurious to the rest of the nation, unjust to the world at large, and in direct hostility to the beneficent designs of Providence." 148 LIFE OF J. DEACON HUME. The Select Committee of J832, having sat fifty-two days and examined nearly ninety witnesses, whose evidence, when printed, occupied 1,050 folio pages, expressed their regret to the House, on the 2nd of August, that they were unable to make any general or full report on the several matters submitted to their consideration ; but the various interests involved, and the extent of the subjects brought before them, as well as the great number of witnesses they had to examine, and the knowledge that many others still remained to be examined, compelled them, at so late a period of the session, only to lay the evidence before the House. Mr. Deacon Hume's most mature testimony upon the subject of protective duties with reference to the silk trade, was given before a Parliamentary Committee in the year 1840. He had then retired frcm public life, and with the experience of fifty years passed in the Custom House and the Board of Trade, he gave evidence as a private person, and without the reserve which must often attach to an official position. The Report, which contains his evidence on the import duties, will be more completely brought before the notice of the reader in a future page. The portion, and it is short, which refers to the silk trade, may be more usefully introduced here, and with little abridgment. The Chairman.* The Committee are anxious to know your opinion of the effect of protecting duties and how far they ought to be continued or might be removed with reference to the exist- ing commerce of the country. Mr. Deacon Hume. I think it might be desirable to classify * Joseph Hume, Esq., M.P. SELECT COMMITTEE EVIDENCE. 149 goods with reference to degrees of protection, and the degrees of importance of that protection to the public or to individuals. With regard to the effect on the commerce of the country, I should say, that in a general and national view, the effect of removing the protecting duties must be very l>eneficial ; at the same time, some partial interests must be sufferers under the change. Then is it your opinion, that generally speaking, all pro- tective duties should be removed, and that it would be the con- sideration which of them might be exceptions only to that rule? I conceive that no general measure could be more beneficial to the country than a removal of all protections, prohibitions, and restrictions. I cannot conceive that a country exporting forty millions' worth of its industry in the year can effectually and beneficially for any length of time protect any partial in- terest whatever. If the protection is effectual, it can only be so in consequence of the prosperity of the country arising from other means; but if once the country should cease to be pro- sperous, in consequence of being unable to find markets abroad for this enormous amount of exportation, then the parties making those goods that had before been exported would apply themselves to the manufacture of the protected articles, and thus bring them down to their own level very quickly. Spital- fields was invaded by Manchester before it was by Lyons. During the late war, and for a number of years, while the cotton trade was entirely or nearly our own, there was little attempt to make silk goods in our provincial manufacturing towns, and Spitalfields had the trade nearly to itself. But the first distresses, of Spitalfieldsi after the war closed, arose from home competition, and not from the importation of foreign goods. Then one effect of every protecting duty is to direct labour to that particular branch, which the natural state of the com- merce of the country does not allow of P The first tendency is certainly such, and it is not counteracted so long as other trades which have no protection are still flourishing, and therefore are content with their success. But you are aware that in Spitalfields there have been for a long time great alternations of prosperity and distress: do you consider that this distress was produced in either case by the foreign manu- facturers, or by the home manufacturers in Manchester or else- where ? During the period of total prohibition, and before Man- 150 LIFE OF J. DEACON HUME. cheater adopted the manufacture, the periods of distress must have arisen from changes of demand in a confined market. I do not conceive that the quantity smuggled in at that time could have had any real effect upon the trade. High forced prices, subject to caprice of fashion, must always keep a trade in peril of reverses. Then what do you mean by stating that Spitalfields was invaded by Manchester ? Manchester devoted itself to the manufacture of silk goods as soon as the cotton trade began to fail them in some degree, and the profits of the manufacturers in Spitalfields were reduced. There was an interval of very considerable distress in the cotton manufacture between the high prices of the late war and the settling down of the trade to its own level, and then Manchester began to think of the silk trade. Mr. VUliers. The people of Spitalfields had as much interest in being protected against Manchester as against Lyons ? Certainly. And the principle of protecting them is the same in both cases? Yes: and you cannot support the manufacture of Spital- fields in its former state, unless you protect them against home competition as well as foreign. The purpose of protecting is, to support an existing interest that cannot support itself? Yes : it is of no use unless the trade is naturally a losing trade. And it cannot support itself when the community can get the article cheaper elsewhere? Certainly not, if the protection is wanted. Then it is always at the expense of the consumer that the protection is imposed ? I think that is manifest. You have always considered it to have that effect P I have always considered that the increase of price, in consequence of protection, amounted to a tax. If I am made to pay 1. 6d. by law for an article which, in the absence of that law, 1 could buy for a shilling ; I consider the sixpence a tax, and I pay it with regret, because it does not go to the revenue of the country ; and therefore, I do not, in return, share the benefit of that pay- ment as a contribution to the revenue. I must be taxed a second time for the State. The Chairman. Then it is your opinion that every protection of a commodity operates as a tax to the community at large ? Decidedly. SELECT COMMITTEE EVIDENCE. 151 Mr. Villiers. And, further, as a misdirection of capital and labour? Yes: it is tempting parties to embark in a trade by factitious support, which, in the end, may prove a fallacious one. 1 have often wondered how any rulers could consent to incur the responsibility of such a policy. The Chairman. Do not all such protective duties and monopolies occasion very considerable fluctuations in that particular branch, from time to time ? I think that every trade which is thrown out of its natural course by protection, is more subject to fluctuations than those which are left to their natural operation. j\Ir. Tuffnell. Then you cannot conceive any circumstances under which a protective duty can confer a permanent and general benefit upon the community? I think not. While it operates in favour of the party intended to be protected, it is a tax upon the community, and there is always the risk of its not being able to support itself by its own natural strength ; and the protection may some day fail of keeping it up. The real question at issue is, do we propose to serve the nation, or to serve particular individuals The Chairman. Does not every protection in some degree lessen the efforts of the party protected, to meet his competitors in the market? In my opinion, from all I have noticed and heard, it has, in a most peculiar degree, that operation upon the human mind. It is rather before my own positive recollection ; but in conversations long ago, with older men, hi the woollen trade, I have learnt, that at the time of Mr. Pitt's commercial treaty with France, the great import which came upon us was the French broad-cloths. Previous to that, our own ordinary cloths were entirely protected by the prohibition of the other. They were of an uniform and very inferior character. In the. first instance, the French cloths had a very great sale in this country ; the habit was always to order a coat of French cloth, and no tailor thought of making out a bill without putting the words " coat of French cloth:" and my informant assured me that that habit of so charging lasted many years after there was scarcely a piece of French cloth brought into the country. The manufacturers of this country, feeling the stimulus of a competition, soon set them- selves seriously to work to see whether they could not make cloth as good as the French, and the result has been that, up to a cer- tain point, short of some very exquisite productions, such as are 152 LIFE OF J. DEACON HUMi:. hardly ever required, the English make cloths better for the price than the French do, and consequently they have retained the trade to themselves. Do they continue to export to a very great extent? They export to a great extent, and the degree to which they export into markets where the French can meet them without any advan- tage of protection from the laws of this country is evidence that they have completely attained perfection in their trade. Are you able to state to what degree the effects of that com- petition took place in the silk trade after Mr. Huskisson admitted silks at reduced duties ? The immediate effect was very similar to that in the case of the broad-cloths. Within two or three years, to the best of my recollection, the importations of the raw silk into this country were more than doubled, which is tolerable evidence of the increase of the manufacture. Mr. Chapman. Did that circumstance arise from the fashion of wearing silk coming into general use at that particular period P I think it did ; but that was brought on by the greater cheapness and excellence of the commodity. It also led to the adoption of improved machinery in this country, and particularly in the busi- ness of throwing silk. In the month of June, in the year 1846, in which the corn laws were repealed, Lord Dalhousie, following in the wake of that course of commercial legislation which had been commenced twenty years before, introduced, on the part of the Government, a measure entitled the Customs' Duties Bill. In doing so, he stated that the Government did not propose the measure as one which departed altogether and at once from protection. They desired to remove from articles of food all duties what- soever; while upon articles which were not of first necessity, but which still entered largely into the con- sumption of our population, they were desirous of reducing duties, as far as consideration of revenue CUSTOMS' DUTIES DEBATE. 153 would permit Referring to the article of silk, he remarked that the duty was said to be 30 per cent universally ; but that, in point of fact, it ranged from that to about 250 per cent The Government there- fore proposed to put a fixed duty of 15 per cent, from which they expected an increase of importation, to the prevention of illicit trade, and a great increase of revenue. This gave rise to a debate, which, on the 23rd of June, turned very considerably upon a state- ment purporting to have been given in the evidence of Mr. Deacon Hume on the silk trade in the year 1832. Lord Stanley,* in opposing the motion, said that " a very high authority, Mr. Deacon Hume, had told them in 1832, that unless they imposed a higher duty than 25 L per cent, ad valorem, they need not be appre- hensive of smuggling." The Earl of Dalhousie, assuming that Lord Stanley's statement was correct, replied, that when his noble friend said, on the authority of Mr. Deacon Hume, that a duty of 25 per cent, would meet the case of the smuggler, of course he could not venture to impugn so high an authority, as applied to former times. But it was no longer the case. It was as notorious as the sun in the heavens, that there was no article whatever of foreign produce which could not, for an insurance of 20 per cent, be guaranteed to be delivered in London on the most respectable references to the best bankers." Lord Stanley "was obliged to his noble friend for the reference he had just made, because it led him to state Now Earl of Derby. 154 LIFE OF J. DEACON HUME. how Mr. Deacon Hume went on with his argument. He admitted all that the noble lord had said : but Mr. Hume went on to say, that the risk of loss on the part of the smuggler was so much greater, that it was always worth the while of the merchant to pay 25 per cent to the Government rather than 20 per cent to the smuggler, so that if the duties were reduced to 25 per cent, the revenue would reap nearly the whole of the benefit. That was the continuation of the argument of Mr. Deacon Hume." Earl Fitzwilliam said he thought " Mr. Deacon Hume could never have said anything so extravagant as that the same amount of percentage would put down the smuggler in every kind of trade in light and easily concealed goods, as in heavy and bulky articles." Before the debate closed, Lord Stanley added, " that since the Earl of Dalhousie had spoken, he had referred to the evidence of Mr. Deacon Hume, and he found that he had fixed an average of 25 to 30 per cent, as the amount of duty which might fairly be imposed without the risk of encouraging smuggling. In 1832 Mr. Deacon Hume gave his opinion on the subject of silk, and he stated that as the maximum for pro- tection and the minimum for smuggling. Therefore, so far as Mr. Deacon Hume might be considered as an authority, there was no ground for the reduction of the duty, which, according to his calculation, should be from 30 to 35 per cent" Without saying that there is no foundation for what CUSTOMS' DUTIES DEBATE. 155 Lord Stanley asserted, it is perfectly clear that had he read the evidence which he consulted more carefully, he would not have hazarded without reserve the state- ment which he did ; and that greater care would have enabled him to see that so far from asserting that unless a higher duty than 35 per cent., ad valorem, was imposed, they need not be apprehensive of smuggling, Mr. Hume expressly says, " It was hoped by the Go- vernment, in 1825, that 30 per cent would be the minimum of smuggling." Again, that " while 30 per cent, was imposed smuggling took place, though the alterations were made to prevent it." Again, that " there may be various opinions as to stopping smuggling ; but he believed when the temptation was great, it was very difficult to put an end to it." And lastly, though he conceives " it may be possible " to keep the duty " rather above the cost of smuggling," he emphatically adds, " but I am not prepared to say that 25 per cent., or any other percentage, would be the proper sum. The price of smuggling is variously stated, and whatever it is now, it may become lower." Sir John Bowring was examined after Mr. Deacon Hume in the year 1832. He expressed a decided opinion that a protecting duty of 20 per cent would destroy a considerable portion of the smuggling trade ; that anything beyond 20 per cent would infallibly cause it to go on. " I consider," he added, " protection to be wholly illusory. I think the silk manufacture of this country would ultimately be increased, by the abolition of it, to an enormous degree. I apply to the 156 LIFE OF J. DEACON HUME. manufacture of silk that which applies to every other. So far as my experience goes, wherever ignorance and inferiority have remained unprotected, intelligence and superiority have taken their place." Had the life of Mr. Hume been spared three years beyond its allotted term, he would have seen, in the year 1845, the duties on the importation of silk wholly repealed ; and a considerable abatement effected in the rates of duty upon foreign goods, in the year after. The day when the remaining impediment to the pro- gress of the silk manufacture, the protecting duty of 15 per cent upon foreign productions shall be removed, cannot, assuredly, be very remote. 157 CHAPTER VI. EDUCATION TUB POLITICAL ECOXOMT CLUB AGRICULTURE CURRENCY 1'oi.incs. A FRIEND to education in every way to schools, libra- ries, and mechanics' institutions, Mr. Deacon Hume was associated with the earliest advocates of popular in- struction, and sympathised strongly with the establish- ment by Lord Brougham and others, of the Society for the Diffusion of Useful Knowledge. Upon retiring from public life, he aided when he resided at Reigate, both by his influence and by his purse, the benevolent efforts of a gentleman,* whose zeal for the moral and intel- lectual improvement of his neighbours has been as un- tiring as it has been beneficial. With politicians, as such, even during his residence in town, Mr. Hume associated but little. The society in which he had most interest, was that of political economists. In the year 1821, he assisted Mr. Thomas Tooke, F.R.S., who contributed largely to the formation of the Statistical Society, in establishing the Political * Tliomas Martin, Esq., Fellow of the English College of Surgeons. 158 LIFE OF J. DEACON HUME. Economy Club. Through a long series of years, we believe, he was never absent from its meetings, which were held on the first Thursdays of the months of December, February, April, May, June, and July, at the Freemasons' Tavern, until the year 1852,* where the members, after the manner of Englishmen, dined together, and a lengthened discussion ensued. At these reunions he met Professors Senior and Macculloch, Mr. Jones Loyd, now Lord Overstone, Mr. Ricardo, Mr. Villiers, Sir H. Parnell, Colonel Torrens, Sir John Bowring, Mr. Macgregor, and many others. For a long period, while most of the members were contend- ing for a fixed duty on foreign corn, Mr. Hume was strenuously advocating the absence of any duty. Mr. Cobden, never a member of this club, was present upon one occasion, or the reader would not have to thank * Tliis Club is still flourishing. Its meetings, since 1852, have been held at the Thatched House Tavern, St. James's. The follow - i-ig is a list of its members for the year 1857 : Lord Ashburton, W. J. Blake, Esq.; Sir G. W. Bramwell, E. P. Cameron, Esq.; Edwin Chad- wick, Esq.; Sir William Clay, Bart.; W. Coulson, Esq.; J. W. Cowell, Esq.; G. J. Graham, Esq.; Thomas Hankcy, Esq., M.P.; Sir B. Hawes, K.C.B.; J. G. Hubbard, Esq.; Kirkman Hodgson, Esq., the Right Hon. R. Lowe, M.P.; the Kight Hon. Holt Mackenzie; Herman Merivale, Esq.; John S. Mill, Esq.; W. Newmarch, Esq.; G. W. Norman, Esq.; Lord Overstone; Samson Ricardo, Esq., M.P.; J. L. Ricardo, Esq., M.P.; the Right Hon. Sir John Rorailly. W. N. Senior, Etq.; Lord Be! per. W.T.Thornton, Esq.; T. Tooke, Esq., F.R.S.; hi* Excellency M. Van de Weyer; the Right Hon. C. P. Villiers, M.P.; H. Warburton, Esq., W. W. Whitmore, Esq., M.P.; W. A. Wil- kinson, Esq.; J. E. Cairncs, Esq.; Rowland Hill, Esq.; Earl Gran- vine, the Earl of Clarendon, the Archbishop of Dublin, Earl Grey, the Marquis uf Lansduwne, Lord Montcagle, the Chancellor of the Exchequer, Charles Neate, Esq., M.P. The last eight are honorary members. MR. COBDEN. 159 him for the following very characteristic and graphic sketch : " I remember hearing Mr. Deacon Hume speak at the * Political Economy Club' in favour of the total repeal of the corn laws ; and when his chief opponent was Mr. Macculloch, the author of the * Commercial Dictionary.' There was a general opposition to his views among the company present, who seemed to delight in trying to mystify a simple matter and to puzzle one another. But I was charmed at the bold- ness with which that meek-looking man contended for the full measure of truth and justice. * Gentlemen landowners,' said he, 'you have your landed estates, they are secured to you by law, you may fence them round and exclude all intruders, why are not you con- tent with the possession of your property, why do you attempt to invade the proj>erty of the labourer by inter- fering with his right to exchange the produce of his <>\vn toil for the corn of other lands ?'* The establishment of this club, which we believe approached nearly enough to Dr. Johnson's definition,! was productive of considerable service. The informa- tion which was imparted, and the collision of kindred minds, resulted in the gradual advancement of political science, and in the multiplication of its disciples. In- deed there is nothing more certain in the modern history of finance, than that it is upon the conclusions deduced by legislators from the received doctrines of some of the above-mentioned individuals, and a few * An assembly of good fellows, meeting under certain conditions. 160 LIFE OF J. DEACON HUME. others, that the important changes made of late years in our commercial system, have been founded. Mr. Tooke, die author of the " History of Prices,"* was also the author of the petition presented by the London mer- chants in favour of free-trade in 1820; a remarkable document, every principle of which has since been made the groundwork of legislation. There was no economist of the time with whom Mr. Humo was more constantly associated. Dissimilar in many respects, both were distinguished for patience and intrepidity in the pursuit after truth, as well as for the promotion of it, by their most zealous and active example, f The following fragment of a sketch of the character and policy of a distinguished statesman is worthy of being preserved. It was written about the year 1829. "Ma. CANKIWO. During a term of many years, and while the country was placed in situations of great difficulty and peril not less by the open assaults of foreign enemies, than by the efforts of traitors and internal foes, while Jacobinism raged, and that party, which, professing liberal policy and assuming the character of constitutional opponents of ministers, had acquired considerable influence over the public mind, allowed itself to be allied with the leaden of Jacobinism, George Canning was the most distinguished defender of everything that was aristocratical, legitimate, and established, in Church and State. He held no terms with the enemies of the constitution ; and he refused to distinguish from such enemies, those who in struggling only, as it may be hoped, for ministerial office and power, had failed so to distinguish thcm- telvei. * In MX Yolumes, 8vo. f Mr. Tooke died at his residence in Spring Gardens, on the 26th of February, 1958, in the 85th year of his age. To the last moment of his existence, it is said, there was no interval during which the clearness and serenity of mind, so remarkable in him, was beclouded. CANNING. 161 "Through the whole of this era he exposed himself to the charge of ultra-toryism, and extreme illiberality of political sentiments ; patricians crowded round him and applauded him; plebeians hated and assailed him ; the country was in danger of a preponderance of the popular interest ; and, pending such danger, he saw it to be policy to conceal from public knowledge how much the genuine sentiments of his mind, and the feelings of his heart, were opposed to tyranny how much he believed that the true interest of a great and noble aristocracy was to be promoted by the granting of free institutions to the people. "At length the happy day arrived when he could safely suffer his sentiments to be known, and, safely too, indulge the hope of seeing them prevail. He then, turning to the great and noble, addressed them in the language of congratulation for their triumph, and of warning against a renewal of similar scenes of danger. He showed to them those errors of government, which had led the minds of the people into a belief that the rulers ana the ruled were in a necessary state of natural enmity. He taught them by the example of France, that when oppression had excited one people to rebel- lion, the anarchy which arose from it was dangerous to their freer neighbours ; and he expected to be supported by them in his laudable endeavours to render the world secure by making it bappy. " But he knew not his auditors. His mind, candid as it was pene- trating, judged rightly of human nature in the mass, but erred in its estimate of the sophisticated few. He had propounded doc- trines which were unpalatable; and, hi the hour of trial, he found himself among enemies, when be believed himself to be surrounded by friends. " There was a hero, to the strength of whose arm he owed the glorious opportunity of benefiting his species which he thought he had attained. He looked to that hero, that he should have joined him in a cause, which, by making his victories serviceable to all mankind, should carry down his' fame with double splendour to the latest posterity. But, alas ! he found that hero enlisted against him, in the ranks of low and little minds ; he had to learn the mortifying lesson, that genius in the field had no necessary connection with the more valuable quality of philosophy in the closet." It is obvious from the foregoing that Mr. Hume If 162 LIFE OF J. DEACON HUME. thought highly of Mr. Canning, and still more so of his policy. In one of his letters, he remarks, " It is impossible to overrate the benefits to mankind which might result from the proper comprehension of a scheme of policy, the honest practice of which must reverse many of the events which are in progress. It is in vain for any man, now, to write essays, the produce of his own mind, although they should inculcate doctrine in perfect unison with the sentiments of the great master. Such productions would want the stamp of authority." .... Yet " a superficial consideration of the changes in men since his death, might lead to a conclusion adverse, rather than favourable, to his character." The limits of this volume will not admit of the insertion of the article contributed by Mr. Hume, in the year 1836, to the third number of the British and Foreign Review, on the Corn Laws. We will, however, present the reader with the following passages : " ENGLAND INDUSTRIALLY AJTEB THB WAB. At the termina- tion of the war, the industrial peculiarity of England among the nations was that of a decided bias to manufacturing and commer- cial pursuits ; while the industry of the Continent had a marked inclination to agriculture. Such, indeed, was the character of the long war by which the peace had been preceded, that it could not fail to produce these distinguished peculiarities. A most serious question was then propounded to the statesman whether he should take the actual position of the country and the world, as the basis of his future measures, or whether he should undertake to create for himself a totally new basis, in order that he might have a foun- dation for measures, schemed in his own brain, but for which the existing order of things was wholly unfitted. The war had given us the command of the seas, and thus our ENGLAND APTER THE WAR. 163 commercial superiority was established ; and it so happened that, during the war, the chief of those inventions in machinery, and of those discoveries in science which have wrought revolutions in the condition of man, were either brought by us first into use, or were by us matured. England had, by these means, acquired a greater command over the precious metals than any other nation ; because she was thereby enabled to send forth into the general markets of the world, a greater value in her manufactures, in proportion to the quantity of human labour expended upon them, than any other nation could send. This power is the foundation of all riches ; and since it exerts itself in commanding the larger share of the quan- tity of precious metals extant in the world, it has a direct tendency to raise the rents of land in the country by which it is possessed. Whatever excuses may be made for the errors of our statesmen, in not seeing at once, and in the happy moment for a right decision, that they had then in their hands, self-created, a foundation for their future proceedings, far preferable to anything which their vain and fanciful devices could produce, no excuse can now be offered for that wilful blindness, Vhich sees no remedy for the evils of its own making, except in their noxious repetition. " In the progress of the twenty years, which have been gradu- ally exposing the grand mistake made at the close of the war, the landed interest, from time to time, condescended to argue a little with those enlightened men, who endeavoured to make them comprehend the error of their course ; but now, when to every rational mind the question has received a complete decision, they content themselves with sneering at, or crying down, every man who considerately points out to them those sure and undeviatiug laws of human affairs, which never fail in the end to punish all nations which despise their dictates. To say the least of it, this is a disgraceful course ; and when we think on the names of the many prominent men among us their stations in lite, and their necessary education who seek to confound the voice of wisdom, by calling up the vociferous cheers of thoughtless audi- tories, with the words 'philosophers' and ' theorists,' used as cant terms, irreverently intended to imply ignorance and absurdity in men of science we blush for the upper ranks of our national society. " Two-and-twenty years of habitual hostility had rendered the business of war a sort of second nature to the country, by calling 164 LIFE OF J. DEACON HUME. into exercise many branches of industry peculiar to that state, and which could not but fall into disuse upon the return of peace. The transition was necessarily a painful one even under the most skilful management ; and the ' revulsion,' as it was then tunned, by which that transition was attended was, to a great extent, un- avoidable and irremediable, except by the lapse of time. But though many of the employments of war were inapplicable to a state of peace, there was nothing in the respective natures of agriculture and commerce to render one, more than the other, unfit to meet the change. They were both equally peaceful employ- ments : why, then, while we were suffering under unavoidable change in some matters, while change in se constituted our pecu- liar grievance of the time, why, at that time, seek to make forcible change in other matters, and thus aggravate the evil which was of a temporary nature, by superadding another evil, to which no definite limit can be assigned ? u As if war of some kind with the rest of the world was our natural element, we no sooner terminated that of the sword with one country, that we declared the war of commerce with all the rest. And by what peculiar class amongst us we ask, was this deed done ? By the landed interest, is the answer. And who, now, at the end of these twenty years, is the complaining party P Again, we answer, the landed interest." A< .KK n.Tt RAI. PROGRESS. We admit that no improvements in husbandry can be expected to keep pace with many of those in manufacture. But still, we cannot but believe that the labours of the farmer, upon the various qualities of the soil, are far more productive than they were a few years before the war ; and unless the landowners have, for the last forty years, been indulging in mere idle boasts, great advances have, during that period, been made in the science of agriculture. The numerous agricultural societies, long established in various parts of the kingdom, by the union of which their present great central association is formed, all had for their objects the encouragement of ingenuity and skill in the devising and bringing to perfection of new methods and new implements, and also the extensive diffusion of the know- ledge of such discoveries. Was the promise to ' make two blades of grass grow where only one grew before,' a gross delusion on the public expectation ? w AGRICULTUBAL PROGRESS. 165 44 THE FARMERS 1 BURDENS. We must suggest the substitution of the more comprehensive words cost of production for the word 4 burden ' And in speaking of the cost of production, every charge between the grower and the consumer must be taken into the ac- count. The charge of conveyance from the one to the other is one of those which have been materially reduced ; and, connected with that charge, is also the state of the allocation of the people. Not only has one universal system of road-making rendered all parts of England mutually accessible to each other, but the accidents of localities, and the attraction of manufacturers, have caused the people to be far more equally distributed than formerly. The dense, and chiefly new population of our manufacturing districts, is placed in a position, flanked on three sides, by England, Scot- land, and Ireland. The mouths have met the corn half-way, and that half-way is traversed with increased facility. The apparent lowness of the present price of corn, is, in a great measure, to be accounted for by an equalization of prices thus brought about ; and this proposition would be made very apparent, if we had the means of striking a present and a former average, taking, in both cases, the prices at the barn-door. Particular lands, favourably situated under the old system, must have now to contend with an enlarged domestic competition. The Middlesex hay-farmers have long felt the effects of the Paddington Canal, and of the macadamized roads round London, which have occasioned the bulky commodities of hay and straw to be brought from a more extended circle. There are mere illustrations of trifling instances ; but the great cases of Miproved distribution are those of Ireland and of Scotland of steam navigation of canals, and of railways all of which, even now, may be considered as only in an incipient state. A ready distribution of pruning produce has led to an equalization of its prices ; and the productions of many extensive districts, formerly of little value, now partake of the average which is the result. " These are effects upon property in land, which the landowners cannot resist or control. The United Kingdom will be, and must be, treated as a whole; and it is in the ordinary nature of thing* to suppose, and to expect, that if, in their new predicament, all the lots of land are thrown into one general mass of equality, upon the redrawing many that before were prizes will turn out blinks ; and many of the old blanks will be new prizes. For this great and still 166 LIFE OF J. DEACON HUME. progressing change, the landed interest must prepare themselves. They may demand protection against foreigners with what con- fidence they please; but protection against Ireland and against Scotland against bogs reclaimed and marshes drained pro- tection against domestic improvement against the progress of science, and the industry of their fellcw-countrymen they can never have at the hands of a British Parliament. The price always to be considered is the price of the three kingdoms, under every possible advance in the art of life ; and we must insist, that the mere fact before us, that the average in the chief markets of England is now five or six shillings lower than it was before the war, constitutes no proof that the people of England cannot be supplied from the lands of Great Britain and Ireland with wheat at the present price, yielding a fair trading profit to a sufficient number of producers in the cultivation of a sufficient quantity of our national soil." " LOCAL CHARGES UPOW LAND. Every possible improvement in details ought, no doubt, to be made in their collection and admini- stration ; and such ameliorations are in progress. The tithes will be commuted, and the barbarism of a charge upon grots produce will soon become, like its rude origin, matter of history only : and we may anticipate, also, that an assimilation of some sort will, before long, place Ireland, in respect of an unemployed pauper population, more nearly than she now is, upon a footing with England. But let not the sanguine agriculturist believe that the pecuniary advantages of these measures will settle themselves quietly into his pocket. When the cultivator of the soil is unre- strained in his spirited improvements, as he often now is, by the deadening calculation, that if his invested hundred pounds increase only by ten pounds, an ample return in any other case, he will clone the account with no more than ninety-nine pounds in his pocket it may be expected, that much increased capital will be expended upon our lands, and that much increase of produce, to supply our markets the more abundantly, and therefore the more cheaply, will be the result. And again, when under a system of poor laws in Ireland, human beings are no longer found to be contending for small plots of land to preserve existence; and when the estates in that country can therefore be allotted into suitable farms, and the people can be divided 'into masters and LOCAL CHARGES. RENTS. 167 workmen, it may be expected, that the system of good and business-like husbandry, which then will assuredly supersede the present miserable practices, must tend to increase the productions of that naturally fertile island, in a degree far exceeding that degree in which its home consumption will be at the same time enlarged. That that consumption will, to the gratification of every humane mind, be much enlarged by such changes of condi- tion cannot be doubted. It is also to be believed that fewer starving Irish will then cross the channel for employment, in competition with English labourers. These two anticipations of our landed interest in England will be specifically realized, when, by the operation of a poor law, Ireland shall be no longer per- mitted to export human food, while her population are dying with famine. But the English landlords will be disappointed of those pecuniary advantages to themselves, for the sake of which they urge the adoption of the measure." M RESTS. Rents are private contracts in which the public has no voice, unless appealed to by the parties themselves. That the rents need not be reduced in the ratio of the reduction of the price of corn is perfectly clear, if the other costs of production have, as we believe they have, been reduced in a still greater degree. Land is the raw material of corn, and its value computed in rent must, like the value of other raw materials, be governed by the state of supply and demand. The improvements in husbandry and the increased facilities of conveyance which have been already noticed are equivalent to the new acquisition of a larger surface of fertile lands, which, in proportion to their quantity and quality, tend to diminish in various degrees the ground of rent for the better parts of the older possessions, and to destroy that of the worst. It cannot now be said that we throw our inferior soils out of cultivation, by admitting the produce of the rich soils of foreign countries ; the cuckoo-note of this old and once constant cry is completely silenced. The operative cause is in our own richer or more tractable soils, which, under the application of greater skill, are increasing in produc- tiveness at even a faster rate than the population increases to consume its produce. Some partial inconvenience may be suffered in such a case, but it is without remedy. What owner of a poor oil will have the front to propose, in these days, that the cultiva- 168 LIFE OF J. DEACON HUME. tion of certain lands, or the use of certain systems at home, shall be prohibited ? We say pointedly, in these days, for the attempt, if made, would not be without a precedent ; the owners of the old meadows in England once petitioned for the prohibition of the artificial grasses." Mr. Hume was acquainted with the science of agri- culture as well as with the principles of trade, and he exacted great advances in both. But he never ven- tured, we suspect, to foretell that in the year 1858, so vast a stride would be compassed as has been announced to the world in the following passage respecting the general application of steam to agricultural purposes. After pointing to many successful instances, the Times practically remarks : "Cultivators of the intractable weald of Kent and Sussex, of the London, Oxford, and lias clays, need not now suffer enormous losses of capital in the wearing out of horses and poor returns of cropping on the land, unsurpassed in native richness, but hitherto locked against our defective mechanics: and 600J. to 8001. outlay, though it may equal a year's rent, will be well invested in steam-tilling apparatus. Proprietors who would augment their estates without stretching the area, namely, by deepening the staple : extensive occu- piers under secure tenure, who have capital at command when profit is at stake : and men who would make a business of ploughing as well as threshing for hire will be purchasers of the more costly and powerful machinery. While smaller farmers can adapt a plough or scarifier to their present portable engine for a sum AGRICULTURE. STEAM-TILLAGE. 169 varying from 200/. to 300/. only the price of some six or eight cart-horses. " It is not merely the British agriculturist that will be profited. Already the steam-plough is started in Cuba ; the sugar-growers want it in Jamaica and Demerara where the blacks won't work ; and, indeed, the West Indies first agitated the question, experi- ments having been made ten or twenty years ago with especial view to their requirements. Australia, New Zealand, and other dear labour colonies are not slow to seize upon mechanical improvements; and Canada and the States are ready for any discovery that can expedite production and lessen field labour. Our continental friends, too, from their large purchases of engines, reapers, and labour-saving tools, are awake to the merits of steam-power in husbandry, while their peasants are being draughted to the idle camp. We congratulate the English farmer on the opening of a new era in mechanical agriculture. The steam-engine feeding, after clothing and furnishing a nation, will form a grand chapter in our industrial history; and the ' sons of the soil,' no longer driven to pauperism or emigration, may with the busy town operatives bless the good genius of James Watt." The first of the following letters was written to a correspondent upon receiving some copies of a pamphlet on Currency. The latter portion refers to a question which Mr. Hume had recently proposed for discussion at the Political Economy Club. " Is it rightly said, as stated by Mr. Hicardo, that 'commodities measure 170 LIFE OF J. DEACON HUME. money, as money measures commodities' ? And, if so, is not a high price of commodities as well as a high price of gold on a local currency necessary to complete the proof of depreciation ?" "Board of Trade, IQth Jan., 1836. 44 The Clubbists to whom I sent the letter are Senior, Tooke, Blake, Jones Loyd, McCulloch, and Torrens. If I had made a seventh it would hare been Parnell. Mr. Tooke called to say that he had received such a present and that he contemplated writing to you to say, among other things, that Mr. Blake, the above-named, had written a pamphlet on Exchanges, in which he had drawn such an argument as yours from the low prices of exportable articles. Mr. Tooke is now re-writing his work upon * high and low prices,' and as he professes to record the facts of the times under these heads, he says that he shall show, more prominently than he did before, the state of the circumstances which you have made your present particular topic. " We have had no meeting of the Club since the letter appeared, hut on the first Thursday in next month I shall expect to hear something about it. 44 I remember now that Mr. Blake did write a very clever treatise on Exchanges, in which he undertook to show that their depression might be brought about by the operation of circum- stances distinct from depression. He was, unfortunately for me, not at the Club the night my question was argued . but I have learnt that had he been there I should have had his support. Colonel Torrens was a good deal shaken : Jones Loyd was with roe : Tooke could not forgive certain issues of bank-notes, I think, about 1809: but Senior and McCulloch fired point-blank shots against all qualifications of a high price of gold. Mr. Tooke does not think that the Club is to be considered as unanimous upon the point. I am aware of this ; but I knew and felt that, in effect, the sense of the Club was against me." "Eltham, 4th October, 1836. 44 1 have carried your letter in my pocket ever since I received it, and with the never-ceasing intention of taking a good oppor- tunity of returning an ample answer. Such opportunities have of late lxen very rare. Not because I have been unusually CURRENCY. LANDOWNERS. 171 engaged in official business, but from a want of my ordinary appliances. Painters and paperers have turned me out of house and home : and thus I am deprived of that fund of time, upon which I have been accustomed to draw so largely when most other people were in bed. Besides, I have taken once more to the saddle, and many spare hours have been employed in proving its superiority over blue pill. And I have proved it, for I am better in health than I have been for many years past. My colleague, Mr. Le Marchant, has only now completed his recovery from a violent bilious fever; and in consequence of his unavoidable absence, all my holidays have been comprised in two Saturdays until this day, when I superadded a Friday ; and in the night of which I am here at Eltham, the only person up, endeavouring to execute my long-intended purpose. Seeing no hope of a furlough, I have located my family here, and contented myself with riding up and down, as often as I could, until winter, or wintry weather, drives us home again. Here you have my apology, my history, and my bulletin ; and now for a few words upon some of the topics of youf letter. Your remarks upon the * tone ' of the H. B. T. letters coincides with my own opinion. Had I been writing for a pamphlet at first, instead of a newspaper, and without the most distant idea of further publication, the tone would certainly have been softened down. When the idea of reprinting arose, and that certainly not with me, I had an incli- nation to re-write the whole, and give it as the substance of the letters. But there was no time for such a course, and I could only add such prefatory remarks as should preserve an account of the origin, as some apology for the tone. Were I to think it worth while to undertake such a task even now, I would not suffer my corrections to be more than those of style and expres- sion. Nothing should tie abated of my indignation at the manner in which the owners of the lauds of the country testify their affronting notices, that, in some way or other, they have a pro- prietary right in the people also. If we only make a fair distinc- tion between the state of public opinion and intelligence in the feudal times and of that opinion in thoe later days, it appears to me that a corn law now is quite as tyrannical as feudalism was then. To usurp a power of the pocket in the present state of civilization, is as arbitrary as it was to claim the person in a barbarous age. This ground I should take without the slightest 172 LIFE OF J. DEACON HUME reservation, or the appearance of yielding an inch of it : but in my defensive position I might stand more erect upon it, and preserve rather a sterner countenance than I did in the fugitive letters. But, believe me, I have no thought of undertaking such a task. Everything of the kind is utterly useless : time and the progress of knowledge in the body of the people can alone work remedies in these cases. A period of severe scarcity may perhaps come in to hasten the cure.* u With regard to the letter on the bullion question, can anything be more manifest than the occasional inaccessibility of the public mind upon some subjects? I have 'tried it on' upon the Political Economy Club, and I then found, that I gained only a few converts ; but McCulloch, nnd Senior, and Parnell, et hoc genus omne, al- though not one of them said a single word which could reconcile a low price of exportable goods with a high price of gold, as evidence of a depreciated currency, still they ended where they began, and claimed the whole price of gold during the period referred to, as the measure of the alleged depreciation. " The only use of the argument is, to stop the mouths of the agriculturists, who are clamouring for an alteration in the standard ; and yet the political economists the greatest enemies to such a proceeding will not avail themselves of the weapon offered to their hand. There is no chance of rendering the proposition useful, unless these persons come in with their adhesions, and assist to enforce it upon the public mind. "You ask my opinion on the present condition of the circu- lating medium. I have been watching it closely for some months, and am compelled to say that I expect an increase of the present difficulties. The pinch has not yet come, and the Bank will have to give several more turns to the screw, before it will be tight enough to force away the redundance. The joint-stock banks, chiefly, have done the mischief; but the Bank is greatly to blame in not having foreseen, that if it did not draw in, the two together would produce excess. The Bank must be content to see a portion of their business pass into the hands of joint stocks. It is surprising to what an extent a great fundamental error on * This prediction was fulfilled in the year 1846, when the failure of the potato crop in Ireland and the deficient harvest caused the abolition of the Corn Laws. CURRENCY. POLITICS. 173 this subject prevails. Men think it sufficient that the hanking establishments should he solvent ; they imagine that the only thing to fear is, lest failures should occur, and the holders of notea should not be paid. This is mistaking solvency for currency; as if the rich might innocently convert their properties into circu- lating medium. The greater the confidence in the banks, the greater is the liability to the mischief; private security here becomes public evil. I believe that the security of creditors at this time is unusually good, for the debtors have acted with great prudence with relation to their private affairs ; but there will be great losses, although there may be few bankrupts. a We occasionally see in the ' City Articles ' accounts of * im- provement ' ' money less scarce,' and the like. These are bad indications. The complaint is plethora, and the bloated face is not a sign of convalescence. The permanent remedies are, a smaller unfunded debt, and a reduced issue of bank-notes. It will require a watchful eye, and a steady hand, to bring about the re-adjust- ment. T think that .. portion of the cost will fall upon the Chan- cellor of the Exchequer, and that all will not fall upon the Bank. u Politics are at this time a disagreeable topic to a man who is of no party. I see such great faults in my old friends the Tories, that I cannot travel by their side. I have heard it said, that Peel is ready to bid very high in the auction of liberalism if any opening should occur. This may be good tactics lor a party man, and all fair, for what I know; but my idea is, that the Tories should have been liberal a little sooner or, rather, a great deal sooner ; and when I compare what they are ready to do, with what they have refused, my mind recoils at the terms in which they continue to abuse the Whigs. I say this may be all very right and fair with partie*, but a common man like myself, with one plain subject before him, cannot chime in with such modes of proceeding. I cannot take up a new station with every move. The Tories have fully recognised the necessity of progress ; and they deem to me to keep always one or two steps behind the Whigs, only for the sake of a point of distinction for a grand quarrel.* Step by step * The friend to whom this letter was addressed, replied, with some effect, to this particular accusation, " I do not think you are quite fair to the Conservatives (Tone* are gone). Surely, it is too hanl to say that ' they keep one or two steps behind the Whigs, only for the aake of a point of distinction, for a ground of quarrel.' Do you think 174 LIFE OF J. DEACON HUME. it has been so hitherto ; and, mark me. step by step it will be so hereafter. But my fears for the country in the end, are removed. I see that the people may be trusted. If there had been any foun- dation for the former alarm at granting any thing, how should there be a reaction ? The truth is that every concession has satis- fied a stratum of discontent, and made an addition to the mass who cry ' hold enough.' My idea is, that the increase of conser- vatism arises from a contentment at what has been done, and not out of alarm at the move which may follow." " 9th November. "But you think more of foreign affairs. Spain is indeed a failure ; and if Lord Palmerston ought to have known that Louis Philippe is the most cold-blooded traitor that ever lived, he will have hard work in showing an excuse for having entered into a league with such a man. It may run the Ministers hard, particu- larly as they are likely to have several other great and distressing difficulties upon their hands, such as often prove too much for any Administration. Much has transpired within the last three weeks, which may create apprehensions of a high price of provisions, and of slack employment; there are even indications of a hard winter; and the opposition papers are already laying their plans for attri- buting the distress which the lower orders may suffer, to the new Poor Law, although nothing is more certain than that it had the hearty concurrence of the Tories. But all this would be no bed of roses to succeed to. Peel did not himself choose his time before ; I doubt whether he would like such a time as I am imagining : although he would have the benefit of hope of relief in his favour, while the blame of the cause would be thrown upon his prede- that when Lord Stanley separated from his hereditary party, and from his personal friends, and resigned his office, he did so for the sake of a point of distinction, and a ground of quarrel ? Lord Stanley had every personal motive which could actuate a public man to get rid of every point of distinction and ground of quarrel. He was the first man of his own party, when Lord Grey, then upwards of seventy-three, retired. He could only be the second in the party to which he was about to unite. But regardless of ambition, so vital did he think the distinction to be, that, to satisfy his conscience, he flung to the winds all other less honest considerations." FOREIGN AFFAIRS. CURRENCY. 175 oeMora. How often shall we change before we get an Admini- stration strong enough to disregard Radicals and Ultra-Tories ? That is the great question after all." " Board of Trade, 18th November, 1836. " If I recollect rightly, a wish is somewhere expressed in the H. B. T. letters, that they might become materials for other years. You are heartily welcome to realise that wish for me. Keep in mind that the bullionists commence with simply saying, 'gold is gold, and gold cannot be dear in gold, &c. :' that when gold seems to be dear, it is only that goods and money are cheap. But the Homers, Huskissons, Ricardos, &c., think that this appears too much in the light of an arbitrary dogma for the understandings of men in general, and therefore, in order to establish its truth, they aet themselves to work to write books to show the how and the why of the case. I will venture to say, that through the whole of these books there shall not be found a sentence, which, if touching on the point, does not go to establish the dearness of goods, as the main test of depreciation. " A tyro, therefore, having learnt his lesson from these instruc- tors, sets to work to try a particular case by the tests given him ; and he finds the result the very opposite of that which he was taught to expect. M The best foundation, consequently, for further remarks seems to be a complete establishment of the in variableness of this doctrine in the words of these writers." * * " Agricultural Bank of Ireland the run has been too hard for it. 1 think I see the fate of the last holds of the noxious one- pound notes. The fall in our corn markets may be attributed to the anticipated difficulties of the holders of corn in Ireland. They must occasion a temporary glut. This is a bad consequence, because it will give the Americans a power of pre-emption in Kurope. Great, very great evils are upon the cards. I hope that the oppo- sition will not calculate too nicely the ' degree of misfortune ' to* which Wilberforce once pointed, as just sufficient to turn out a Minister. They may not quite hit the mark.* 1 " 15, Rustell Square, 20th June, 1837. " If the Americans stick to their rule, that every bank shall be limited in its amount of paper issue, and that limit be as narrow as 176 LIFE OF J. DEACON HUME. it is considered to be, I do not think that much specie will l>e got from them. But mark what a different cash suspension this is from what the Attwoodites desire. Therefore, if the example of America he- referred to, we should point to this distinction ; and also to the bargain that the banks are to pay no dividends till they pay cash again. " The present peculiar shape of the currency question I take to be this. We have unconsciously expended our circulating medium, for a year or two back, just in the way which those who think with us approve, and would do openly. But we are now brought up quick, with a sharp curb, because the Bank must pay in cash. That party, therefore, thinks that the merit of their plan is proved ; for that we have only to add suspension, and the pro- sperity would be permanent. " The other party say, that the utter rottenness of that plan is completely proved by the shock to which the partial trial of it ha* subjected us ; and that the attempt to continue the ' prosperity^ by a bank suspension would either, and most probably, fail at once, through the anticipated fears of its ultimate consequences on the part of thinking people ; or, it would go on, until the bubble burst from IN own weakness, and ruin of the most appalling nature would involve the nation and its people in both public and private bankruptcy. " Prices would keep rising, step by step, and from season to season, till the dullest and the boldest would begin to suspect, that such magnificent accounts could never be settled according to their nominal terms: a distrust of the bank-notes would com- meuce, their depreciation would be evidenced too clearly by the exchanges and the price of gold ; and, every man beginning to secure his own retreat, the most dreadful panic conceivable would ensue. " This would arise from the immense difference between a tem- porary suspension, like that in the war, and a suspension which was, avowedly, to be permanent. In the Jirxt case, the public had always land in sight, and they waited for the order to cast anchor : in the tecond, they would soon begin to think that they were sailing in a boundless ocean without a rudder, a pilot, or a plumb-line to inform them of their depth ; and they could not long endure such painful feelings. It is the most mistaken idea in the world to suppose that the public mind would quietly acquiesce CURRENCY. 177 in a permanent bank suspension : and if it would not, why then, 4 Peel's Bill' is not the cause of that state of things which the Att.Toods consider to be an unnecessary contraction of our prosperous movements. Suppose that, instead of passing Peel's Bill, its opponents had succeeded in passing an Act which was to make the suspension permanent, and that the public had placed full confidence, at first, in the successful operation of such a measure, then all that I have been describing would have occurred long ago ; and we should, at this time, be many, many steps behind the position of prosperity in which we now stand. " You see my main point is that the public could not have confidence in paper which was never to be brought to the test ; and we know full well that nothing upon the public feeling in that respect has been tried. 44 As to the question of a silver standard, and the repeal of the law against exporting coins, these relate only to small per- centages ; and although the Attwoods raise them in despair, they are wholly inconsistent with, and inadequate to, the objects and ends which they profess to intend and to aim at." The first sentence in the following letter refers to a tour through Wales, and some of the adjacent counties, which Mr. Hume undertook in company with a friend early in the autumn of 1837. "Board of Trade, Whitehall, 12dl 0c/ M 1837. " I have lately returned from the most extended trip I have ever made, and it was then only that I got possession of your letter. I am well satisfied with your currency observations at the election, and now the more so as you said nothing about lowering the standard. " The relations between the precious metals and transferable objects are undergoing a change. The tendency is to a lowering of prices ; and this furnishes the great temptation to excessive banking : but it is not a sufficient reason for departing from the sanctity of an unalterable metallic measure. Men and things are outgrowing gold and silver, but the effect is too slow materially to injure any one generation ; and it must be borne as the minor evil. Notwithstanding all the errors which have been committed in banking, it does not follow that it may not be even extended N 178 LIFE OF J. DEACON HUME. without a renewal of them. Many countries have, as yet, scarcely availed themselves of the system; and, in proportion as they adopt it, they will release a quantity of metal. The idea that one scale of prices is more proper than another is a great mistake : the mischief lies in sudden changes, and these will never be produced by fluctuations in the general supply of the metals. Gold cannot keep pace with the steam-engine, as we multiply commodities by machinery they must individually represent less money. The idea of an arbitrary price for corn is at the root of all the mis- conceptions which distract the senses of the community. "The increased produce of the British dominions must be something most enormous, when we reflect that we are luxuriously feeding a doubled population : need we wonder, then, that the specific price of each quarter cannot be maintained ? or, indeed, can any good reason be given for expecting that it should, any more than that every piece of calico should be as dear as formerly ? " The following questions were proposed by Mr. Hume for discussion at the Political Economy Club, besides the one which has been already alluded to.* Of ques- tions proposed before the year 1835, there appears to be no available record. " March 5, 1835. Ought a compulsory provision against desti- tution to exist wherever there is exclusive property in land P " "December 1, 1836. What are the causes and probable conse- quences of the present pressure on the money market?" "February 10, 1839. Are there any sufficient reasons for any duty on foreign corn ? " Of the arguments made use of in the discussion of these questions we have no information. * Page 169. 179 CHAPTER VII. LITE INSURANCE THB ATLAB THE CDBTOMS* BENEVOLENT FUND, "An institution which improves the condition and respectability of public servants as a class, and relieves their anxiety for their dependent families, most qualify them the better for their official situations, and therefore confer advantages also upon the public service." Treasury Minute on the Benevolent Fund. MB. DEACON HUME was a great advocate of life in- surance. He was associated with several individuals in establishing the " Atlas," one of the oldest and most considerable of these institutions, and which owed its success in no trifling degree to his exertions. He con- tinued to be Deputy Chairman to the time of his death. This volume would be incomplete if it did not give some account of the rise and progress of a kindred association, the Customs' Benevolent Fund. The project originated, in 1816, with Mr. Charles Ogilvy, at that time a clerk in the long room at the Custom House. But, as the Report of the Directors in 1856 states, '.' it was worked out and brought to maturity entirely by the ability and influence of Mr. J. Deacon Hume, for many years, from the commencement of the insti- tution, President of the Fund." No one could have been found more able to introduce and carry out the scheme. 180 LIFE OF J. DEACON HUME. As a preliminary step to its introduction, a meeting of officers and clerks of the Customs was held on the 25th of April, 1816, Mr. Deacon Hume in the chair. The object and nature of the scheme were then fully explained, and the meeting having approved of its principles, appointed seven officers of the Customs as a " Temporary Committee of Formation,** to prepare a plan of the contemplated institution for the considera- tion of a further general meeting. The Committee was also instructed to invite the co-operation of other public departments as the projectors desired and hoped, "that they should be able to lay the foundation of an institu- tion which, at some future day, would be found to embrace within the range of its protection the widows and children of almost every officer of the Civil Service." With this view the Committee, in the first instance, addressed letters to the secretaries of the Excise Office, of the Stamp Office, of the Post Office, and of the Tax Office, but no answers were received. A letter was also addressed to the Secretary of the Board of Customs in Scotland, and that department declined to join. The notion of extending it to other public offices was aban- doned. Believing, however, that the department of the Customs alone was sufficiently numerous in itself to form an association, the Committee determined to esta- blish a fund, to be confined to the Customs alone. Having agreed upon the outline and general prin- ciples upon which the projected institution should be governed, and having obtained the approval of a CUSTOMS' BENEVOLENT FUND. 181 meeting of officers and clerks of the Customs, with the consent of the Board, the Committee submitted the scheme for the approbation and sanction of the "Lords of the Treasury in a memorial dated the 24th May, 1816. It was stated in this memorial, amongst other things, " That the anxiety of your memorialists for a local institution of this nature within their own depart- ment is chiefly felt in behalf of the interest and welfare of persons of small incomes who may need the prudence and decision necessary to induce them to insure their lives with any of the public companies already esta- blished." Their lordships had several conferences with the Committee, and after the project had been carefully and fully expounded to them, signified officially their consent to it in a letter to the Committee, dated the 20th June, 1816. And with the sanction and encourage- ment of their lordships, the Act of Parliament esta- blishing the Fund was passed, and is dated the 22nd of June, 1816. The Act embodies two peculiar features, -.vith which the scheme originally commenced. First, the certainty and permanency of the provision for the claimants. Secondly, the poundage charge of one penny upon salaries. It was expected that by the aid and influence of this auxiliary fund, although small, the benefits of the institution would ultimately be diffused generally throughout the department, and it could scarcely exist without it The certainty and permanency of the provision is secured by the llth section of the Act, which treats the produce of the insurance as an " alimentary provision " for widows and 182 LIFE OF J. DEACON HUME. other claimants, and bars the right of creditors thereon. It gives die form of a reversionary settlement, and this settlement, in the case of the widow, makes it secure and permanent even against the debts or control of any future husband. It is a settlement under the force of an Act of Parliament for her sole benefit for life, pay- able to her upon her own receipt only. But, in connection with the security the Act affords to the insurance, the application of the insurance itself is, at the same tune, limited for the sole benefit of widows, children, relatives, and, under the admission of the directors, of special nominees of subscribers. It could not be expected that, jointly with the protection, sub- scribers should also have an "unlimited** power to dispose of their insurances as they would in public assurance offices ; and, although the Fund was to be raised on the principles of life assurance, yet this protection, and the very limited power of appointment possessed by the subscribers, materially distinguish it from other assurance offices. But Mr. Hume, who was a correct as well as a close observer of the human mind, knew well that this limitation would require substantial advantages to counteract it advantages which would sooner or later be apparent And it was chiefly with this view that the poundage was insisted upon. Its design was to impart such aid and support to the fund as would counteract all adverse inclinations, from whatever cause arising, by securing to it a marked preference over common assurance societies. Poundage obviously increased the value of insurances, and these LIFE INSURANCE. 183 values went on increasing periodically at the awards of profit until, in course of time, their accumulations would so strikingly manifest the substantial advantages of the fund as to make persons anxious to join the association, and so secure the complete success of the scheme. Great stress was laid by the Committee of Forma- tion on the question of poundage, and in obtaining the grant. To adopt the language of Mr. Hume in one of his early reports, " The question propounded to the Lords of the Treasury was in substance this whether the fathers of those young men, whom they might be pleased thereafter to appoint to situations in the Customs, would be expected to hold those situations to be of less value to their sons, on account of so trifling a deduction from the salary as one penny in the pound, considering the use to which that penny was to be applied. Or would their lordships hold their patronage to be less valuable by reason of such a deduction for such an application." " Their lordships deliberated upon the proposition ; they discovered no objection ; and they signified their compliance." Mr. Hume, in his report, continued, " As most persons were appointed to public offices early in life, celibacy was not anticipated, nor were bachelors always without dependent relatives; and the very trifling deduction of one penny in the pound from the salaries of such persons was not considered by the Lords of the Treasury to constitute a larger payment than the chance of having occasion to avail themselves of the Fund might be deemed to be worth." 184 LIFE OF J. DEACON HUME. A report of the Directors in 1837, written by Mr. Hume in return to a Treasury reference on a contem- plated Excise Fund, leads to the conclusion that the formation of the Customs' Fund mainly depended upon the consent of the Lords of the Treasury to the grant of poundage. Speaking of poundage, the report goes on to say : " We have reason to believe that, if this poundage had not been granted, the persons by whom the project of the Fund was first promoted would not have proceeded with their endeavours to bring it to maturity." Apart from the more solid advantages which the Fund may have derived from poundage, the experience of the last forty years has shown that more persons were induced to effect insurances on their lives from the payment of poundage than from any other cause. To some it is a quarterly admonition that they have a duty to perform which, if longer neglected, might con- sign their families to want and penury. To others it leads to inquiry, and they find, from actual facts and results presented to them from the records and expe- rience of the office, that the Fund opens to them a mode of securing a provision for their families best suited in all respects to their means. And all arrive at the important fact, that the contribution of poundage ulti- mately returns, increased in value, to the widows and families alone of the members of the Association. Many, who, having been in the service at the establish- ment of the Fund, and, under the provisions of the Act of Parliament, declined to accede to the contribution of POUNDAGE. 185 poundage, upon witnessing the projects and develop- ment of the Institution, have consented to pay a heavy settled entrance fee, in order to qualify themselves to become members. The Fund always contained a provision enabling the directors, with the approval of a meeting of subscribers, to make benevolent grants to the destitute widows and families or dependent relatives of deceased contributors of poundage, who had failed to effect insurances in the Fund for their benefit With the concurrence of sub- scribers the directors do not confine themselves to the strict letter of the rules by making absolute destitution the sole ground for the relief, but have acted upon a liberal interpretation of the rules for benevolent grants, and been guided by the necessities of each case. Besides the poundage, the Fund derives another valuable source of income from the Bill of Entry Office, which has been annexed to the Fund almost from its commencement. It was that which Mr. Hume had in his mind, when he stated in his report which accompanied the first code of rules, that, " It is by no means improbable that out of the multifarious concerns of so extensive a department as the Customs, some sources of adventitious assistance may hereafter present themselves ; and confident may the members of the Institution be, that every fair proposal to promote its success will be kindly entertained by the Lords of the Treasury, to whose paternal care alone the Institution owes its existence." The application of the Bill of Entry Office, as will be 186 LIFE OF J. DEACON HUME. seen by the following condensed account of evidence given before a Parliamentary Committee, was not originally suggested by Mr. Hume, but the sanction and approval of the Lords of the Treasury to the measure were obtained chiefly through his influence. CUSTOM HOUSE BILL OF ENTKY. At one of the meetings of the Select Committee on " Sinecure Offices within the United Kingdom," which made its Report on the 24th of July, 1834, Mr. Hume was examined with reference to the " Custom House Benevolent Fund." The subject arose out of an in- quiry made by Mr. Ewart, at that time member for Liverpool, respecting the appropriation of the profits of a journal called the " Customs' Bill of Entry," which had long been prepared and sold under a patent right vested in particular individuals. Mr. Frankland Lewis, M.P., stated in evidence to the Committee that the office came into his family, he believed, by purchase of a Sir An- drew King, about the year 1720. That during the time that he held it, it was worth 1,OOOJ. per annum on an average; but that about the year 1811, it suited his family arrangements to transfer it to his mother, and that it was held in trust for her use and benefit, by her brother-in-law, Robert Nicholas, Esq., chairman of the Board of Excise, and that she duly received the net proceeds. From 1811 he ceased to have any control over, or interest in, the publication. In 1817, the Directors of the "Custom House Benevolent Fund" applied to him personally to know who the persons BILL OF ENTRY. 187 were with whom they could negociate for a transfer to them of the patent itself, and the duties connected with it He referred them to Mr. Nicholas, with whom they negociated. An agreement was entered into, the ulti- mate effect of which was the transfer to the Directors of the Custom House Fund, of the rights, duties, privi- leges, and emoluments arising from the patent.* The agreement involved the expediency of a surrender of the existing patent, and a new patent was granted by the Treasury for the purpose of enabling the agreement to be carried into effect, it being distinctly understood by the Treasury that the agreement was a beneficial one to the public service. The publication itself was of great use to the commercial world. The application of the money, according to the rules of the Custom House Benevolent Fund, is a public benefit, inasmuch as it is part payment to the persons engaged in the Custom House ; for if they derive considerable emoluments from the Benevolent Fund over and above the money they subscribe to it, out of the money arising from the sale of this publication,t they are thereby placed in a situation to require less in the nature of retired allowance or provision for widows, than they would require if no such advantage were held out to them when they entered the service of the Customs. The office of clerk of the Bills of Entry is in some points under the control of the * For the sum of 28,0007., calculated upon the probability of the patent being perpetually renewed. t Mr. Flank, Secretary to the Customs' Benevolent Fund, stated in evidence that the entire emoluments accruing to the Customs from the privilege of preparing the Bills of Entry, was about 11, IKK)/, a year. 188 LIFE OF J. DEACON HUME. Lords of the Treasury ; it was especially required to be so placed by Mr. Pitt, on the renewal of the patent in the year 1789. Many times during the late war it was held to be injurious to commerce, particularly when Bonaparte's decrees and the Orders in Council were in force, that the ports from which and to which particular articles were imported and exported should be published, and directions were sent from the Treasury not to print the name of any port in possession of the French troops ; the entries were made in blank : the merchants of the City of London knew enough of the real state of com- merce to understand where the goods came from, and whither they went; but as that was not so distinctly understood on the other side of the water, the ships were not condemned when they returned, say to the port of Hamburgh or the port of Flushing, or any port in the possession of the enemy, after an illegal voyage, although they would have been confiscated if it had been known when such a ship returned, that she had loaded her cargo in Great Britain instead of the foreign neutral port, from which she had nominally and ficti- tiously cleared out. On many occasions during the war directions were sent from the Treasury to omit altogether entries of the export of warlike stores. Mr. Frankland Lewis concluded his evidence by stating that, in his opinion, if the Bills of Entry publi- cation was to be correct and valuable, the clerks of the Customs must be interested generally in the support of it, and it would then be put on a footing by which the public would be essentially benefited. EVIDENCE OF F. LEWIS. 189 Mr. Deacon Hume, who was next examined, said, that previous to his leaving the Custom House in the year 1828, he rendered all the assistance of which his advice and influence were capable, in putting an end to many infractions of the patent which had been alluded to, by the clerks in the Custom House, but that he did not work in any way in the matter. Mr. Ogilvy, a clerk in the long room, a person of very great talent, who projected the Custom-house Fund (and also suggested the idea of acquiring the exercise of this patent for the benefit of the Fund), had the management. It was given to him in 1817, and he held it to the time of his death, in 1832. So much reliance was placed on his management of the matter, that one-half of the emolu- ments which the Customs derived was assigned him for his trouble. At the time when the agreement was entered into with Mr. Frank land Lewis, a great change and improvement certainly took place, and consequently there was considerable increase in the revenue derived from it Before that period the Bills of Entry were prepared in such a manner as could afford very little information to purchasers, and certainly none that could be depended upon. The first step taken by the direc- tors of the Fund to give confidence to the publication, was to disturb a practice which had prevailed in the different offices at the Custom House of taking a fee from any merchant who wished to have the publication of his entry suppressed, which had been an every day practice. It ceased immediately and completely. He did not mean to say the clerks of the Custom House, as 190 LIFE OF J. DEACON HUME. clerks of the Custom House, suppressed the entries : it was done by the clerk of the Custom House who was employed by the patentee. He employed one or more of the clerks in the long room as his agents, to collect the information, and that clerk kept the particular entry out of the publication, for which he received a fee from the merchant The chief clerk's selecting clerks in the long room to be his agents, was an Inci- dental circumstance, he need not have done so; he might have sent clerks of his own. The clerks sup- pressed any entry for which the merchant paid half-a- crown. He had seen it done a thousand times. The Commissioners, as he believed, not being called upon, never gave themselves any concern upon the subject He imagined that the patentee was not aware of the practice. What the merchant paid for was, that any particular entry in the Custom House books should be suppressed in the official Bill of Entry. And the new practice occasioned much emotion in the trade, there being many parties having different objects. There were as many merchants at first who wished for a continuance of the former practice as those who felt the increased value of the document by reason of its discontinuance, but the desire of improving the docu- ment in the end prevailed. Persons who used the Bill of Entry were, he conceived, aware of the liability of omission, for probably all had on different occasions availed themselves of it If there could be any persons who used it and were unacquainted with the practices alluded to they would be deceived. The omissions EVIDENCE OF J. D. HUME. 191 would not have the effect of vitiating the accuracy of the official returns compiled for Parliament, for the accounts were wholly distinct When first the omis- sion of entries was refused, it was complained of by many merchants; the question, in the form of com- plaint, was brought before the Commissioners of Cus- toms by several persons, about the year 1817, and after much discussion between the superior officers and the trade, it was agreed that particular merchants might be allowed to postpone the publication of their outward entries for, he believed, a fortnight : the object of sup- pression, without eventually injuring the aggregate account in the publication, being sufficiently attained by the delay, a payment was made: but though it was heavy, the produce was exceedingly small to the Custom House fund. It was enforced solely with a view of checking the practice without totally forbidding it It was rather a fine than a fee, and the amount was carried to the credit of the Benevolent Fund. Formerly the patentee's clerk received the fee for his own use. The Bill of Entry was published daily in London. The Custom House Benevolent Fund was instituted in the year 1817. He should say that it would be imprac- ticable to admit competition respecting the publication of the Bills of Entry. It would be inadmissable with reference to the business of the Custom House. The admitting various persons to consult the books could not be borne. As to the suggestion that an officer of the establishment, acting under the authority and re- sponsibility of the Commissioners, should make the 192 LIFE OF J. DEACON HUME. requisite publications correctly, the public being charged for such expense as might be incurred for the same, with equal accuracy as was then done by the Benevo- lent Fund, it might be practicable, but there would be much difficulty in attaching the responsibility with regard to the correctness. The present publishers, with no direct responsibility, had every stimulus to make the account as perfect as practicable. He did not believe that any publication similar to the Bill of Entry was given officially in any country. If he should be asked why there should be more difficulty in pub- lishing the returns with accuracy than there is in keeping the many accounts of the Custom House, he would reply, that the clerk has ample time for checking and correcting. His previous answer was with refe- rence to responsibility for the accuracy of the accounts. With regard to the despatch necessary to publish in the morning the business of the preceding day, which is such as must subject the account to much risk of inaccuracy, and might involve the officer employed in serious responsibility without affecting the correct- ness of any errors that might be material to the trade, he wished to distinguish between the accuracy for which a public officer would be responsible, and that for which a common publisher would be answerable, having at risk only his own emolument, and aiming at the degree of accuracy which would be necessary for his interest and the credit of his paper. He did not say that an individual not belonging to the establish- ment, and publishing the Bill of Entry, would not do BILL OF ENTRY. LIVERPOOL. 193 the duty with more accuracy than if he were a public servant, and were adequately paid for it, though he might believe so. He spoke of responsibility. The present returns, however, were as accurate as the most diligent clerks could make them ; and the merchants had a reasonable confidence in them. Dif- ferent merchants have different objects: it is im- possible to adapt a publication so as to suit every man's views. He was asked whether omissions for want of room had not occasionally occurred in the list ? The increase of business at the port of Liverpool had taken the Bill of Entry by surprise, and occasionally the paper had been incapable of holding all the names of the ships of the day, but the principle of the pub- lication had rendered this a matter of no serious im- portance to the trade, because the number of ships entered out, and the number of ships clearing out, every day was always given ; consequently, the number remaining on the books, as published in the bill of the preceding day, always enabled a broker or other in- terested person to see, by retrospect of that bill, whether the ship of which he wanted information, still remained on those books. No complaint had been made respect- ing the omission to any official quarter. Mr. Frankland Lewis considered the patent to be given up in the year 1817 for the benefit of the public service, and he (Mr. Hume), was asked whether he agreed with him in that opinion ? He would answer that the improvements in the publication were a benefit to trade, and that it was a public service : he thought that the advantage de- o 194 LIFE OF J. DEACON HUME. rived by the widows and orphans of the servants of the public, by so easy a mode, might justly be considered as a public service also. Mr. Frankland Lewis had mentioned that the retired allowance was affected by it, and he (Mr. Hume) was asked whether that was cor- rect ? In one sense it was. The plan of the subscription or premium by the officers and clerks to the Customs' Fund is, that it shall terminate at a certain period before the end of life; and consequently, when that time arrives at which an officer upon superannuation is suffering more reduction of his income, his premium to the Customs' Fund falls in, which makes the super- annuation more easy. He had understood the Treasury to conceive that the public patronage received advan- tage from this mode of assisting officers, in making some provision for their widows and children. The circumstance of the party contributing to this Fund is not specifically taken into consideration in the case of superannuation. There are two separate publications, the " Bill of Entry," and the " Trade List" The " Bill of Entry" is simply the daily account of the entries of ships and merchandise at the Custom House ; the " Trade List" gives once a week a compendious state- ment of those accounts, together with the usual matter of the Price Current. The " Trade List," on the face of it, is no more than an ordinary Price Current, as the Prices Current are in the habit of copying and compiling information from the Bills of Entry ; but the " Trade List," which is in fact a Price Current, has the advantage under the rights of the patent, of publishing "TRADE LIST." TRINITY HOUSE. 195 that description of information in that compiled form, more early than the other Prices Current, who must copy it from the Bills of Entry. There are Bills of Entry (A) and (B). The first relates to goods entered inwards and outwards; the second, to ships entered outwards. The bills having undergone a total change and corresponding improvement in the year 1817, the price was increased. The question of price was, he believed, never brought before the Commissioners of Customs. When the patent was transferred to the Custom House Fund, an attempt was made by some parties to publish a document in competition with the Custom House Bill of Entry; but this issuing of in- formation by manuscript to the trade was suppressed. It was an infringement of the patent. Anything may be copied from the "Bill of Entry." The "Trade List" is a losing concern; but it is thought as well to have it as part of the set of publications. It appeared in the returns that the sum of 2,349 J. 16s. 8d., exclusive of the amount received, was received the previous year for fees of suppression or furnishing separate manuscript information and details, exclusive of that in the printed papers. Every sum, in whatever way received, is carried to the general account of the Customs' Bene- volent Fund, after the payment of rent to the patentee. Trinity House had, for a series of years, been obliged to pay 1501. a year for being furnished with a list of entries and departures of ships. It is an account pre- pared in a different shape to the Bill of Entries, and made to suit the particular vpurposes of Trinity House. 196 LIFE OF J. DEACON HUilK. Considering the peculiar and additional labour it occa- sions, Trinity House willingly agrees to make the payment as a compensation for the clerical labour. The patent rights are considered in the payment The whole is a matter of agreement between the parties. The Select Committee presented their report to the House on the 26th of February. It was long and interesting. The paragraph which expressed their opinion upon the above-mentioned subject of inquiry, is in the following words : " Your Committee have taken some evidence upon the subject of the Customs' Bill of Entry, which has long been prepared and sold, under a patent right vested in specific individuals. The commencement of that patent is of ancient date, but it seems to have been renewed from time to time in favour of the heirs or relatives, or assigns of the original patentee ; and the last renewal dates in the year 1817, extending the privi- lege for thirty-one years, of which eighteen are still unexpired. The actual compilation of the ' Bill of Entry,' as it is sold to the public, is now exclusively performed by certain authorized officers of the Customs, who pay over out of the proceeds received from the sale, a fixed annuity of 2,0002. per annum to the patentee, according to a specific agreement entered into between them. The patentee does not interfere at all in the preparation of the document Your Committee fully recognise the necessity of confining the right of inspecting the Custom House books, out of which the * Bill of Entry ' is extracted, to some official and autho- TESTIMONIAL TO MR. HUME. 197 rized party ; but they trust that the patent, which is now running, will on no account be renewed ; the emoluments of the Patentee being unconnected with any benefit to the public, and enhancing unduly the sale price of the * Bill of Entry,' which appears to be exceedingly large. 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