[35] This difference reached its climax in 1845, when Lord Grey wished to exclude Lord Palmerston from the Foreign Office, and Lord Russell insisted on his being nominated for that department.
[36] The exports of Great Britain rose from 47,000,000l. in 1842 to 60,000,000l. in 1845, and the imports from 65,000,000l. to 85,000,000l., and, in the same period, the entries of British mercantile shipping rose from 4,627,440 tons to 6,031,557 tons. (See Porter’s ‘Progress of the Nation.’)
CHAPTER IV.
Lord John Russell’s first steps as Prime Minister: the Equalization of the Sugar Duties—He suspends the Navigation Laws, January 1847—Mr. Ricardo’s motion, February 1847—Reply of Mr. Liddell—Mr. Ricardo’s motion carried—Committee appointed, February 1847—Meeting of the shipowners, August 12, 1847—Their arguments—What constitutes “British ships”—State of Navigation Laws in 1847—Rules in force in the Plantation Trade—Their rigorous character—Their history from 1660 to 1847—First infringement of the principle of confining the American trade to British vessels—Absurdity and impotency of these laws—State of the law before the Declaration of American Independence—Trade with Europe—Modifications of the law—East India Trade and shipping—Trade with India in foreign and in United States ships even from English ports—Coasting trade—Summary of the Navigation Laws.
Lord John Russell’s first steps as Prime Minister: the Equalization of the Sugar Duties.
Suspends the Navigation Laws, January 1847.
The first measure introduced by Lord John Russell, when he succeeded Sir Robert Peel as Prime Minister,—the equalization of the Sugar Duties—was one almost as important to the interests of merchant shipping as the repeal of the Corn Laws. A change so great, affecting, indirectly, the general as well as the fiscal policy of the empire, was even more remarkable than the abolition of the Corn Laws. It was strenuously opposed by the Protectionist party, but Sir Robert Peel, having given his support to Government, the Bill was carried by a large majority. This measure in itself afforded much additional employment to shipping; and in the course of the debate upon it, Lord John Russell made the memorable declaration that he “did not propose in any respect to alter the existing Navigation Laws.”[37] He was, however, obliged immediately afterwards to suspend the operation of these Laws till the 1st September following, so as to facilitate the importation of grain and flour. Indeed, some such measure was absolutely necessary, as the crops of Germany and France had in many instances failed, and the French Government had also been compelled to suspend for a time their Navigation Laws, in order to obtain supplies of food from other countries.
As the necessity of increasing, at all events for a limited period, the facilities for importing grain from foreign countries and the admission of sugar more freely into breweries and distilleries, so as to augment the supply of food, had been pointed out in the Royal Speech, no opposition was offered to this temporary suspension of the Navigation Laws; but it was stoutly maintained by the Protectionists that the suspension must be limited to the period fixed in the Bill. The Free-traders, however, on the other hand, could not see the necessity of any limitation, and, though the Ministry did not feel strong enough to undertake the task of a total abolition of the Navigation Laws, one of its principal supporters gave notice that, on an early day, he would formally call the attention of Parliament to this important subject.
Mr. Ricardo’s motion, February 1847.
Accordingly, on the 9th February, 1847, Mr. John Lewis Ricardo brought forward his motion,[38] “That a Select Committee be appointed to inquire into the operation and policy of the Navigation Laws.” Intense interest was excited among shipowners; the fact of Mr. Ricardo proposing the motion was deemed highly ominous, as he was known to hold very advanced opinions on Free-trade, and to be prepared to go further in that direction than perhaps any other member of the House. He was, indeed, at that time, one of the most formidable exponents of the Free-trade doctrines. His speech,[39] delivered in a tone of much confidence, propounded, as indisputable facts, what were then rather startling assertions. After briefly recapitulating the history of the Navigation Act, which had been held to be perfect till 1821-22, he pointed out that Mr. Wallace in those years, and Mr. Huskisson in 1824-25, had broken into the exclusive principle on which the Navigation Act rested. He then referred, at great length, to the labours of the Committee on British Shipping in 1844, and boldly asserted that that inquiry was instituted by the shipowners to prove the efficacy of the existing laws, and was allowed to drop because they had no case for further encouragement. He specially singled out the opinions of the late Mr. Joseph Somes, one of the largest shipowners of that time, who went so far as to demand a tax on Colonial shipping; and he successfully combatted this by contending that the colonists already suffered severely by the Navigation Laws. Millions upon millions, he said, were spent upon internal communications;[40] Parliament was looking with great jealousy lest a half-penny or a penny too much should be charged for inland transit; yet, when goods arrived by sea, there was a law which increased the cost of carriage over the greater part of their journey. He then referred to the opinions expressed by Mr. G. F. Young, one of the leading opponents of any change in the laws of shipping, who had also advocated a tax on Colonial vessels, stating, in his evidence in 1844-45, that he “considered the whole system of Navigation Laws as relating more to the encouragement of maritime commerce than to any other object, and that, therefore, many sacrifices of pecuniary interests ought to be made for it,” adding, “I have no doubt that private interests ought to be sacrificed for the general interests of the country. If the Legislature should decide that it was no longer necessary to keep up the Navigation Laws as a means of national security, no doubt the consumers of foreign articles could purchase at a cheaper rate, since this would be the natural consequence of admitting imports in the ships of foreign nations.”