Jan. 30, 1822.
My dear Duke,
I omitted in my account of the King's speech a paragraph stating that the estimates have been framed with every possible attention to economy, and expressing satisfaction at the reduction which it had been found possible to make upon the general expenditure, particularly on the navy and military services. This amounts to 1,500,000l.; but there is 450,000l. of temporary charge to be added for the veteran battalions to Ireland. I am myself much inclined to agree with your view, and to think that with the present superabundance of capital in the market, the advance of five millions to the agricultural interest in Exchequer Bills at four per cent. interest can do little. It may have the effect of producing a general lowering of the interest on mortgages, and if this should succeed, it would indeed be a material advantage, and would also collaterally tend to raise the stocks and to enable us to save a million and a half by paying off the Five per cents.
Still I am myself very anxious for a reduction of taxation, but it is true that it is very difficult to determine to what articles this should be preferably applied for the relief of the land. Windows would probably be the most direct, and yet that would apply more efficaciously to the towns than to the country. It has been already seen how very little relief was produced by the reduction of the malt duty.
Every day's account from Ireland is worse and worse. There is more appearance of organization and connexion; nor have we as yet a clue to any of the directors of it.
I know nothing about Bloomfield, or of what is going on at Brighton.
You will be amused to hear that from secret and private sources we have reason to believe that Lord C—— has by this time made himself master of the military chest of the army, containing 500,000 dollars, and has sailed to establish himself independently on the isthmus. Will not this make a good novel for some future Walter Scott?
To-day the plan for issuing Exchequer Bills to the landed interest seems to be nearly dropped, and to be changed into a general proposition for increasing circulation by borrowing four millions from the Bank. Still I am convinced that we must come to the reduction of taxation as the only measure of relief which will be comprehensible.
Ever yours,
C. W. W.