Se ae 
ON RECENT CHANGES IN THE DISTRIBUTION OF WEALTH. 355 
Taim at is to elicit from the materials now at hand some indication of 
the recent changes in the distribution of property, more especially in 
relation to the estimated income of the labouring classes. Within the 
last thirty years great changes have taken place in the economic condi- 
tion of the people. The introduction of free trade—or, more correctly 
stated, a more economic financial and commercial policy—the great 
extension of railways, the discoveries of gold in California and Australia, 
the enjoyment of a lengthened period of. comparative peace, and the 
development of resources in the British colonies and dependencies, have 
each and all had surprising effects on the trade and industries of the 
realm. Have the higher, middle, and labouring classes participated in 
the same proportion in the increasing wealth of the nation ? 
§ 4. Classification of the Population. ° 
It is difficult to classify the population under any well-defined cate- 
gories. Generally, we have the broad distinction between income tax- 
payers and non-income taxpayers. But the number of income taxpayers 
at any time is affected by the changes made in the limit of incomes subject 
to the tax. In 1798 the tax was levied upon all incomes of 60/1. and 
upwards. Since 1875-6 the tax has been levied only upon incomes of 
150]. and upwards, subject to certain allowances or abatement of duty. 
Non-income taxpayers, on the other hand, comprise the lower middle 
class and the labouring classes. The more common distinction of society 
is the division into the higher, middle, and lower classes. But who are 
the higher classes? Shall we place within this category the large land- 
owners only, or shall we include among them those having large incomes 
from whatever sources? Who are the middle classes? ‘There is a 
higher middle and a lower middle class. Our merchants and bankers 
pride themselves on being the great middle class. But so are clerks, 
teachers, and ministers of religion, having but a small anuual income ; 
whilst it is a misnomer to distinguish any number of persons as working 
classes when we are all workers, some with the hand, some with the 
mind, and many with both. Moreover, the so-called working classes in- 
clude artisans, labourers, domestic servants, &c., &c. Practically we 
have four classes of society: first, we may take the aristocracy of wealth 
including all having an income of 3,000]. and upwards; second, the 
middle class, those having an income of 500/. to less than 3,000/.; third, 
the lower middle class, those having an income of 1501. and less than 
5007.; and fourth, we have the lower professional or trading classes, 
and the labouring classes, having an income of less than 1501. 
§ 5. Assessed Incomes of the Middle and Higher Classes, 1851 and 1881. 
Let us now see what liglit the Income Tax Returns throw on the dis- 
tribution of income among those so assessed in 1851 and 1880 respec- 
tively. An exact comparison, indeed, cannot be made; for, whilst the 
classification under Schedule D in 1851 included the incomes of public 
companies except mines, quarries, ironworks, gasworks, railways, water- 
works, canals, &c., which were not assessed under Schedule D until 
1866-67, the classification for 1879-80 includes trade and professions 
only. Still, the comparison in so far as regards the relative incomes at 
the two periods may be useful. The return relating to Schedule D 
refers to Great Britain, aid for the years 1850-51 and 1879-80, is as 
follows :— 
AA2 
