Part 47

These last would have joined on all occasions in urging a further and still a further increase of income tax, and would never have consented to a tax on consumption. The income tax would finally absorb all other taxes.

Another great objection to the income tax now is that it would have the effect of perilling the reduction of the 3 per cents.

The Duke, Rosslyn, and I were decidedly against income tax. Lord Bathurst and Lord Melville, as well as the Chancellor, less decidedly so, but still in favour of abiding by the reduction of the beer and leather tax. Aberdeen said nothing, neither did Sir G. Murray, so they were understood to go with the majority.

Goulburn acknowledged the discussion had to a great extent changed his opinion, and that he was not then prepared to propose the tax.

Herries seemed much in its favour; but more, as it seemed to me, because he wished to maintain a large surplus according to the decision of the Finance Committee than for any good reason. Peel was decidedly for a property tax. He wished to reach such men as Baring, his father, Rothschild, and others, as well as absentees and Ireland. He thought too it was expedient to reconcile the lower with the higher classes, and to diminish the burthen of taxation on the poor man. I accede to the principle; but I doubt whether taxes on consumption do really press more heavily on the poor man than an income tax. What he has to look to is not the actual price of the article he wants, but the proportion which his wages bear to that price. It matters little to him what the price of candles may be, if he has not money wherewith to purchase them. That system of taxation is best for the poor man which most tends to increase the funds for the employment of labour; and every disturbance in the system, every alteration of demand, does intrinsic mischief.

After this matter was decided, Peel behaving most fairly, and declaring he would support the decision of the Cabinet whatever it might be, and that in this case the decision of the Treasury was to be principally looked to, we talked of Queen Donna Maria, in whose name Don Pedro has established a Regency in Terceira.

I read Leopold's letter to Lord Aberdeen, in which he refers to his letter of February 11, for the statement of his views in taking the Greek coronet, saying that he only acceded from courtesy, and as a matter of form, to the protocol, and further urging some alteration in the frontier. He has made an application for a joint guarantee by the three Powers of a loan of 60,000,000 paras, or 2,400,000£. Now we only agreed to guarantee 50,000£ a year, and that for troops. Nothing will be said upon this point till he has withdrawn his letter. He seems to be Aberdeen's pet. I do not think, had the Greeks searched Europe, they could have found a man whose character was more congenial to their own.

March 17.

Leopold has withdrawn his obnoxious letter.

March 18.

House at five. Debate on the Duke of Richmond's motion for a select Committee on the state of the labouring classes, and the effect of taxation upon the productive powers of industry.

A most dull debate, till Lord Holland spoke. I answered him. Lord Lansdowne next, then the Duke. I spoke, showing the impracticability of the Committee. I however showed up Committees rather too much. This Lord Lansdowne took hold of, not very fairly, but he did it well.

We had in the House 69; they 39.

With proxies we had 140 to 61. My uncle voted in the minority, and so did Coplestone. Dudley, Lord Malmesbury, Lord Gower, voted with us.

The Whigs, Brunswickers, and Canningites were in the minority. The Duke of Cumberland was there.

I find we have some recruits--in proxies Lord Lauderdale, Duke of Bedford, Downshire, Lord Wilton; and Lord Jersey sits behind us. He has now Lord Lauderdale's proxy. All this is consequent upon Lord Rosslyn's accession. Lord Grey has now no one left. No one expressed a wish to turn out the Ministers.

March 19.

It seems that in the House of Commons Huskisson made a friendly speech, finding he can do no harm, and Lord Althorp a very friendly one. In short, everybody seems to be of opinion that the worst thing that could be done would be to turn out the Government.

Peel says, and so does Herries, that the House is in favour of an income tax. That what we have determined upon is the best for this year, but that next year there must be an income tax.

Cabinet. Leopold wants more money. It was agreed he should have 70,000 pounds a year loan guaranteed to him for seven years, instead of 50,000 pounds.

The holders of 4 per cents. are to have the option of 100 pounds stock 3 1/2, or 70 pounds stock 5 per cents. Trustees may only convert into the 3 1/2 per cents.

March 20.

Chairs at 11. They have made some alterations in the letter to the Indian Government respecting their conduct, and have praised Lord William for his perseverance, &c. This is contrary to the Duke's view and to mine. I shall see whether I can allow their amendments.

I find they have likewise altered much in the letter relative to Batta.

March 23.

The Duke, Lord Bathurst, and Rosslyn went away at 2 to the Cabinet, where they decided against the Jew Relief Bill. The bishops have intimated that they must unanimously oppose it.

Debate on Lord Clanricarde's motion on the eternal Terceira question. The Duke spoke very well. The House was flat. The division with proxies 126 to 31, 4 to 1. We have now of Whig proxies Bedford, Lauderdale, Wilton, Downshire, Belhaven, Meldrum, and Lord Jersey.

March 24.