ACTS TO PREVENT SMUGGLING, ETC.
At this time there was a deficiency of three millions a year in the revenue of the country. This was principally owing to a failure in the estimated produce of taxes imposed by Lord North during the war with America. There were, however, other causes at work to produce this deficiency, and not the least among them was the universal practice of smuggling. This practice was, indeed, at the close of the American war, carried on to an almost incredible extent; government being too much employed to keep a strict watch over the trade of the country. It is calculated that forty thousand persons were thus engaged; and Pitt deemed it expedient to bring in a bill for the prevention of smuggling in general, and then to propose regulations applicable to those articles which formed its principle support. By the bill for the prevention of smuggling, the right of seizing certain vessels with their cargoes, under particular circumstances, was greatly extended; the building of such vessels was prohibited; the owners of armed vessels were obliged to procure licences; the rules respecting clearance were enlarged; and the act of resisting his majesty’s ships and officers was made a capital felony. In order to aid this bill, Pitt brought forward two others: one directed against contraband trade in tea, and the other against that in spirits. That with reference to tea was of great importance, for it was at this time considered a staple commodity of the smuggler. In fact, more than seven million pounds of that article were smuggled into the country annually; while only about five millions were sold by the East India Company. To prevent this evil, Pitt proposed to reduce the duty upon tea from fifty to twelve and a half per cent., which was not more than equal to the expense of smuggling. The same principle was maintained in the bill directed against the contraband trade in spirits. Great frauds had been committed on the distilleries at home; and Pitt proposed a bill by which the duties payable on British spirits were regulated and enforced; while those on foreign duties were considerably reduced. As these reductions, and especially on the article of tea, would occasion a great loss to the revenue, Pitt proposed to increase the tax on windows in proportion. All these resolutions were passed, after much debate in the commons, by large majorities; and they met with little or no opposition in the house of lords.