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.
THE BUDGET OF 1784.
On the 30th of June, Pitt produced what is called the budget, which included the subject of taxation. In his speech he discussed the ways and means for defraying the expenses of the services of the present year; the loan; the funding a portion of the unfunded debt; and new taxes. A loan of six millions was found requisite for the current services of the year, besides the ordinary sources of income; and this he proposed to throw open to public competition; the biddings being sent in, sealed up, and afterwards opened in the presence of the governor and deputy governor of the Bank of England. At this time the navy and victualling bills, with the ordnance debentures, which formed a considerable part of the unfunded debt, amounted to about fourteen millions; nearly the half of which he proposed to fund at five per cent, stock, and to make irredeemable for thirty years, or until twenty-five millions of the existing funds should be extinguished. Beyond this, there was in the market about seven millions in bills and debentures, which bore an interest of four per cent. These bills, with the new fund and the new loan, required an interest of nearly one million pounds sterling; and Pitt undertook to find taxes which should produce that sum. He proposed duties on hats, ribands, coals, gauzes, horses, linens and calicoes, candles, bricks and tiles, paper, and hackney-coaches; and he also proposed licences to dealers in exciseable articles, and certificates to kill game. In commenting upon these taxes, the young premier observed:—“It would be idle to suppose that all the taxes in this long catalogue were unexceptionable; but the necessities of the public leave us no option to deal otherwise than openly and fairly. The wants of government are many; the finances of the country have been much reduced; and it is proper to look our real situation manfully in the face.” Pitt could speak and act the more boldly because the necessities of the government were not of his own creation; and his manliness, together with the ability he displayed in his financial detail, gained for him the applause even of his most determined opponents. Fox said, with reference to his management of the unfunded debt, that “too much praise could not be given him.” The only tax, indeed, which met with decided opposition, was that on coals, which was justly represented as oppressive to the poor, and injurious to our manufactures. This he relinquished, as he did also that on hops, which was to have been included in the exciseable articles, introducing in their stead, taxes on gold and silver plate, lead exported, race-horses, licences to sell ale, and postage of letters. Pitt also introduced regulations regarding the privilege of franking, which were calculated to increase the revenue of the post-office. On the whole, the introduction of this budget, though the nation was already exhausted by taxes, had the effect of greatly increasing the youthful premier’s popularity.
PITT’S INDIA BILL.
In the midst of this popularity, Pitt brought forward his celebrated India Bill. This may be considered under three separate heads. 1. A new establishment at home, with powers extending over the affairs of the East India Company. 2. Regulations to be applied to India. 3. The erection of a court in England for the trial of offences committed in India.
The first of these heads consisted of a board of control, which was to be composed of six commissioners, holding the rank of privy-counsellors, and comprising the chancellor of the exchequer and one secretary of state; and four others holding offices of such emolument as precluded the necessity of a salary. The members of this board were to be appointed by the king, and removable at his pleasure; and they were authorised to check, superintend, and control the civil and military government, as well as the revenues of the company. It was their duty also to inspect and countersign all the despatches transmitted by the court of directors to the different presidencies. The directors were enjoined to pay all due obedience to the orders of this board, touching the civil and military government and revenues; but in case such orders should at any time in the opinion of the directors, relate to matters not connected with these points, they were left at liberty to appeal to his majesty in council, whose decision was to be final. In all cases of secrecy, and particularly such as related to peace or war with the native powers of India, the commissioners were to have the power of sending their orders to the local government of India, through a secret committee of the court of directors, which committee could in this case only be considered as the vehicle of instruction to the local authorities of India.
The regulations applicable to India related to the government. Pitt proposed that the government in each of the three stations should consist of a president and counsellors; that the president of Bengal should be governor-general; that the commander-in-chief should be one of the council, and next to the governor-general; and that the commander-in-chief at Madras and Bombay should take similar rank at each of those stations. The government of Bengal was to have control over the other presidencies, and the appointment of governors, commanders-in-chief, and other members of the council, was to be vested in the directors; they, together with the king, having the power of recalling the governor-general, as well as every other person employed by the company. All promotions, whether civil or military, were to be made according to seniority, and in progressive succession, unless for some urgent case to be transmitted to the directors; and each government was empowered to apprehend all persons guilty of carrying on an illicit correspondence, and either bring them to trial in India or send them to England. In order to prevent ambitious projects, the supreme government was not permitted to enter into an offensive treaty, or to make war, without the command of the directors, against any power which had not commenced, or given full proof of its intention to commence hostilities. Provisions were also inserted in this bill relative to the settlement of disputes with the Nabob of Arcot, and the redress of complaints of injustice and oppression, exercised against the Zemindars, or great hereditary landholders of India, who had either been dispossessed of their lands, or subjected to exorbitant demands, by the officers of the East India Company. This part of Pitt’s bill also regulated the ages at which writers and cadets should be appointed, as well as the number proper to be sent out; prohibited the acceptance of presents; and required that all servants of the company should, after the 1st of January, 1787, deliver an oath within two months after their arrival in England, respecting what part of their property was, and what was not, acquired in India.