COMMUTATION OF TAXES. 145 



is only one way by which embarrassed parties can be assisted, or by 

 which the government can obtain an income to meet the deficiency 

 which a large remission of taxes would occasion, and that is, by 

 placing an income-tax on all vested property, whether on land or on 

 mortgage, making such provision as shall empower the landholder to 

 pay the tax for the mortgage, and afterwards deduct it from his inte- 

 rest. This would at once simplify the transaction, and would divest 

 the tax from an inquisitorial character, because its payment for the 

 amount of mortgages would be conducted as privately as that of 

 interest money, The operation of this tax would also have a great 

 effect on politics ; for as soon as the Government should propose to 

 raise a large sum of money, partly by a larger property-tax and partly 

 by retrenchment, we should find that Members of Parliament would 

 almost to a man become rigid economists, and the measures of Mr. 

 Hume would be carried by sweeping majorities. The army and navy 

 would soon be found too expensive, and the pension list would be 

 examined with the most jealous and scrutinizing attention. This is 

 the effect which such a measure would have on the House of Com- 

 mons, Whether or not the Whigs desire such a change in the policy 

 of their followers, is a question that we shall not attempt to deter- 

 mine ; but, from their strenuous efforts to avoid a commutation of 

 taxes, we should imagine that the present tone of parliament is the 

 most acceptable to them. 



What means have they taken to prevent the progress of a subject 

 which is rapidly gaining ground in all parts of the kingdom ? They 

 have not ventured to grapple with the abstract question of a property 

 tax, and by overthrowing its advocates by fair and reasonable argu- 

 ments, to turn the opinion of the country against it ; but they have 

 blended it, certainly with some dexterity, with a general income tax, 

 and have endeavoured to arouse the fears of the people bv pointing 

 out the various inconveniencies that existed under the collection of a 

 heavy and general property tax during the war. The Chancellor of 

 the Exchequer has not attempted to argue the subject in a distinct 

 form, because he is aware that it is only on the ground of inconveni- 

 ence that he can expect to protract the measure. We believe that" 

 many members of parliament begin to discover the difference between 

 a blended property tax and an income tax on what is termed real 

 property ; but the opponents of the latter declare, that it would 

 be an act of sheer injustice to levy on one property without the 

 other. To this assertion, therefore, we shall attempt a reply. 



We contend that it would not be an act of injustice to place a tax 

 on real property, and leave the personal estates free ; because it is to 

 real property that all national distinctions and privileges are attached. 

 At the same time, we believe that the possessors of real property are 

 in such a condition as to render it absolutely necessary for the mort- 

 gagees and vested monied interest to bear a proportion of the taxa- 

 tion, otherwise the greater portion of the land must at once be offered 

 for sale. Having therefore so far concluded our opinion, as to admit 

 the necessity, though not the justice, of a tax being placed on the 

 monied as well as the landed interest, we must of course include the 

 fimdholder in estimating the most fitting interests for taxation ; but 



M. M. No. 92. U 



