IRAKSACTIONS OF THE SECTIONS. 219 



value of the precious metals, and a coiTcsponding advance in general prices ; and it 

 is obvious that if the rise in prices should continue, the loss which -will be endured 

 by those in receipt of fixed money-incomes ^vill also continue. This being the 

 case, -^ve arrive at the second of the" three points enumerated, and we have to seek 

 R reply to the important practical question — What can be best done to mitigate 

 the consequences resulting from such a loss ? One or two practical conclusions 

 may be ventured upon. In the first place, it is hazardous to tie down trustees or 

 executors to invest money in some security in which the rate of interest is fixed. 

 If the money is invested in any kind of property, or in shares which represent pro- 

 perty, the money value of the property and of the shares will advance with the 

 rise in prices. "Worlvmen and others who can only make veiy small investments 

 from time to time may, it is thought, have a great difiicultyin finding such invest- 

 ments as those just recommended. It is, however, at once evident that if they pur- 

 chase their dwelling-house by joining a building society, or if they invest_ their 

 money in shares in some cooperative undertaking, they would avoid the risk of 

 finding the value of their savings depreciated by a depreciation in the value of 

 money ; and this risk they would run if they set aside a weekly sum to purchase 

 an annuity to commence some years hence. It may seem that some of these sug- 

 gestions afford an argument against life insurance ; but this is really not the case 

 if a judicious choice of an office is made by those who insure. Many offices divide 

 their profits, over a certain fixed percentage, among the policy-holders. If, there- 

 fore, the money is judiciously invested by the company, the money value of their 

 property will increase with the rise in prices; consequently the amount to be dis- 

 tributed among the policy-holders will increase, and will afford a compensation for 

 the diminution in the purchasing-power of the policy when it is paid. The third 

 point to which he wished briefly to direct attention is the following : — In the 

 present circumstances of the country, the possessors of small fixed incomes are 

 those who participate least in the advantages resulting from activity of trade, and 

 are also those who sufier most from the present rise in prices ; and there is no class 

 upon whom the burdens of local and imperial taxation probably fall with so much 

 severity. As examples, take a widow, a clerk, a curate, or a half-pay officer, with 

 an income of £200 a year. They are liable to the income-tax. The income-taxis 

 not only made a permanent part of our fiscal system, bat a precedent was set last 

 year for defraying exceptional expenditure by means of the income-tax. No class 

 probably has to spend so large a proportion of their income in house-rent ; and it is, 

 after all, upon the occupiers of houses that by far the most crushing effect of local 

 taxation falls. But the most serious injustice that seems to be done them is associated 

 with our poor-law system. lu those branches of industry Avhich are exceptionally 

 prosperous enormous profits are realized, and a great advance in wages is secured. 

 The additional wages are, to a great extent, spent and not saved. They are spent 

 in the purchase of more beer, spirits, meat, Initter, or the other articles of daily use. 

 The price of some of these articles advances with this extra demand, and the 

 possessors of fixed incomes sufler accordingly. No one would suppose that he 

 (Prof. Fawcett) did not rejoice in seeing the workman receive a better remuneration 

 for his labour, and have an opportunity of enjoying more leisure. But if his extra 

 wages are all spent, and nothing is laid by, what may happen? Why, trade may 

 become dull. Instead of there being the present demand for labour, tens of thousands 

 of hands may have to be discharged. Nothing having been saved in prosperous 

 days, how will they live without work ? They will be able to claim the right to 

 be maintained out of the rates, to no small extent contributed by the very class 

 (the possessors of small fixed incomes) who do not now share in the present pros- 

 perity, and who find the cost of living increasiu"-. This is the injustice to which 

 he alluded. Not only does this injustice exist, but there is reason to fear that it 

 may be increased. There is a general feeling at the present day that the burdens 

 of local taxation press unfairly on certain classes. Admitting that some reform is 

 needed, it must be home in mind that unless we are careful we shall, in striving 

 after greater equality, secure greater inequality. Some have gone so far as to 

 suggest that there should be a national poor-rate, or, in other words, that the sup- 

 port of the poor should be made an imperial charge. But even if such an extreme 

 proposal as a national poor-rate is not carried out, there is a demand, influentially 



