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Before this, however, the financial statement for the year had been made, and for awhile the Corn Law question was suspended for the country to recover from its astonishment at finding in the Minister of the Conservative party one of the boldest reformers of our tariff who had ever occupied the Ministerial benches. But yesterday his position had appeared one of the greatest difficulty, in which a cautious hold upon the established sources of revenue, with some well-balanced proposals for additional taxes, was all that could be expected. He had not the good fortune of Mr. Goulburn or Lord Althorp in having a surplus to dispose of. The Whig Government had bequeathed to their successors a deficit, which had been increasing from year to year, with a revenue falling off even in the face of new taxes. How[488] was the deficit to be met was the question which filled the mouths of public men; a question which was answered by the famous financial statement of Sir Robert Peel on the 11th of March. After showing that the deficiency for the coming year would be little short of 2,500,000, and that this deficiency might be expected to be considerably augmented by the position of affairs in India and China, the Minister declared that he would not consent to resort to the miserable expedient of continual loans. He declared that he would not attempt to impose burdens upon the labouring classes, and that if he did, recent experience had shown that they would be defeated. In fact, the country had arrived at the limits of taxation upon articles of consumption. After ridiculing the various suggestions of people who were constantly sending him projects for taxes on pianofortes, umbrellas, and other articles, accompanied with claims of very large percentages upon the proceeds, he acknowledged the principle laid down by financiers that increased revenue may be obtained by taking off the taxes which pressed upon industry, but declared that the first effect was always a diminution in revenue, and that time was found necessary to restore the amount. In these circumstances, he stated what the measure was which, under a deep conviction of its necessity, he was prepared to propose, and which, he was persuaded, would benefit the country, not only in her pecuniary interests, but in her security and character. His scheme was this: he proposed, for a period to be limited, an income tax of not more than 3 per cent., from which he would exempt all incomes under 150, and in which he would include not only landed but funded property. Sir Robert Peel calculated that the tax would yield 3,350,000 a year, a sum which, with an addition to the spirit duties in Ireland, and an export duty of 4s. on coals, would not only cover the existing deficiency, but enable him to remit indirect taxes to the amount of 1,200,000. The sliding scale had brought little credit to the Minister, and the income tax was in its nature an unpopular measure; but the proposal to reduce the custom duties on 750 out of the 1,200 articles in the tariffto remove prohibitions altogether (in itself a vast concession to Free Trade doctrines)to reduce the duties on raw materials of manufactures to five per cent. or lessto keep the duties on articles partially manufactured under twelve per cent., and on articles wholly manufactured under twenty per cent., was a scheme which excited general admiration. The measure was, indeed, contested by the Whig Opposition at every stage. The preliminary resolutions were debated for eight nights. There were many of Sir Robert Peel's old supporters who looked on the financial plan with distrust, as being founded, in a great measure, avowedly on those principles of political economy which they had been accustomed to sneer at; but, in truth, it was not unfavourable to the interests of their party. We have already seen that the new taxat least, if a temporary onewas calculated to impose a far greater burden upon the manufacturing and moneyed class than upon the landowners; in fact, by exempting incomes under 150 a year, and assessing land only upon its net rental, the burden was imposed almost entirely upon that middle class which was the especial object of the dislike of Tories of the more advanced kind. At the same time, by cheapening articles of general consumption, the Minister did something towards securing popularity among the working classes, who, as exemplified in the Chartist agitation, were not always disposed to take part against the landowners. The Income Tax Bill passed, after considerable opposition in the Commons. An amendment proposed by Lord John Russell was rejected by a vote of 302 to 202, and another amendment, proposing the reading of the Bill on that day six months, having been thrown out on the 18th of April by a vote of 285 to 188, the third reading was carried by a majority of 130 on the 30th of May. No debate took place in the Lords until the third reading, when the Bill passed by a majority of 71.

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The temper of Townshend was warm, though his nature was upright; and in this mood, a discussion taking place on foreign affairs at the house of Colonel Selwyn, the dispute became so heated that Walpole declared that he did not believe what Townshend was saying. The indignant Townshend seized Walpole by the collar, and they both grasped their swords. Mrs. Selwyn shrieked for assistance, and the incensed relatives were parted; but they never could be reconciled, and, after making another effort to obtain the dismissal of Newcastle, and to maintain his own position against the overbearing Walpole, Townshend resigned on the 16th of May. He retired to Reynham, and passed the remainder of his life in rural pursuits. One of the greatest benefits which he conferred on this country he conferred after his retirementthat of introducing the turnip from Germany.The news of this great victory, which at once freed from the French armies the rich province of Andalusia and the cities of Cadiz and Seville, spread joy and exultation over Spain, and filled Buonaparte, who received it at Bordeaux, with the deepest anxiety, but the Spaniards were led into a confidence which brought its subsequent chastisement. The news no sooner reached Madrid than the king ceased to feel himself safe there. He determined to retire to Vittoria, which was at a convenient distance from the French frontier. On the 3rd of July he quitted the city by night, and, guarded by French troops, took the road to Vittoria, leaving Grouchy and Marshal Bessires to cut off any pursuit of the Spaniards. Grouchy then despatched a letter requiring Casta?os to send an officer to take charge of the city, and to protect the French invalids in the hospitals. He sent General Moreno, and himself arrived to hold the city on the 23rd of August. Such of the Spanish grandees as had encouraged the French fled, with Joseph, for safety, and obtained the name of "Josepinos," or "Infrancsados;" the rest joined the Spanish cause.
ONE:Local Act (various) { 21 unions 320On the day appointed for the trial of Warren Hastings there was a wonderful crowding into the great hall at Westminster. The walls had been in preparation hung with scarlet, and galleries raised all round for the accommodation of spectators. The seats for the members of the House of Commons were covered with green cloth, those for the lords and all the others with red. Galleries were set apart for distinguished persons, and for the members of the foreign embassies. When the lords, nearly one hundred and seventy in number, entered in procession, the vast hall presented a striking scene, being crowded, with the exception of the space in the centre for the peers, with all who were noted in the land, from the throne downwards. The lords were all in their robes of gold and ermine, marshalled by the king-at-arms and the heralds. First entered Lord Heathfield, the brave old Elliot of Gibraltar, as the junior baron, and the splendid procession was closed by the Earl Marshal of England, the Duke of Norfolk, and by the brothers and sons of the king, the Prince of Wales last of all. The twelve judges attended to give their advice on difficult points of law, and the Managers were attended also by their counsel, Drs. Scott and Lawrence, and Mr. Mansfield, Mr. Pigot, Mr. Burke, and Mr. Douglas. The galleries blazed with the rich array of ladies and foreign costumes. There were seen the queen with her daughters, and the Princesses Elizabeth, Augusta, and Mary, the Duchess of Gloucester, Mrs. Fitzherbert, the beautiful Duchess of Devonshire, Sheridan's handsome wife, and the great actress, Mrs. Siddons. Gibbon the historian, Dr. Parr, Mr., afterwards Sir, James Mackintosh, and numbers of distinguished artists, amongst them Sir Joshua Reynolds and Gainsborough, were also present.

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TWO:FATHER MATHEW AND THE FAMINE-STRICKEN POOR. (See p. 537.)

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ONE:DEAN SWIFT.
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ONE:The military transactions of the Continent this year had been of the most remarkable kind. Buonaparte, after his repulse at Pultusk, had retired to Warsaw, which he entered on the first day of the year 1807. He calculated on remaining there till the return of spring. But Benningsen, the Russian general, was determined to interrupt this pleasant sojourn. He had an army of eighty thousand or ninety thousand men, with a very bad commissariat, and equally badly defended from the severity of the winter. The King of Prussia was cooped up in K?nigsberg, with an army of a very few thousand men, and his situation was every day rendered more critical by the approach of the divisions of Ney and Bernadotte, whom the treacherous surrender of the Prussian fortresses by their commanders had set at liberty. But Benningsen hastened to relieve the King of Prussia at K?nigsberg; his Cossacks spread themselves over the country with great adroitness, surprising the French convoys of provisions. More Cossacks were streaming down to their support out of the wintry wilds of Russia, and the French were forced from their pleasant quarters[543] in Warsaw, to preserve the means of their existence. Buonaparte, alarmed at these advances, determined to turn out and force the Russians eastward, towards the Vistula, as he had forced the Prussians at Jena with their rear turned to the Rhine. To take the Russians thus in the rear, he ordered Bernadotte to engage the attention of Benningsen on the right whilst he made this man?uvre on the left. But Benningsen, fortunately, learned their stratagem, by the seizure of the young French officer who was carrying Buonaparte's dispatches to Bernadotte. Benningsen was therefore enabled to defeat Buonaparte's object. He concentrated his troops on Preuss-Eylau, where he determined to risk a battle. But he was not allowed to occupy this position without several brisk encounters, in which the Russians lost upwards of three thousand men. The battle of Eylau took place on the 7th of February. It was such a check as Buonaparte had never yet experienced. He had been beaten at every point; Augereau's division was nearly destroyed; that of Davoust, nearly twenty thousand in number, had been repulsed by a much inferior body of Prussians. Fifty thousand men are said to have been killed and wounded, of whom thirty thousand were French. Twelve eagles had been captured, and remained trophies in the hands of the Russians.
THREE:[501]On the 6th of March the first blessings of war began to develop themselves in the announcement, by Pitt, that his Majesty had engaged a body of his Hanoverian troops to assist the Dutch; and, on the 11th, by his calling on the House to form itself into a Committee of Ways and Means to consider the propriety of raising a loan of four millions and a half, and of issuing four millions of Exchequer Bills, in addition to the ordinary revenue, to meet the demands of the year. Resolutions for both these purposes were passed; and, on the 15th, a Bill was introduced, making it high treason for any one to sell to the French any muniments of war, bullion, or woollen cloth. Fox and his party opposed this Bill, but it was readily carried through both Houses.

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THREE:The Virginians were the first to move to lead the agitation. Patrick Henry and Thomas Jefferson took the initiative in a measure which would have better suited the character of the religious New Englanders. A fast was ordered on account of the Boston Port Act. The next day, however, being the 25th of May, Lord Dunmore, the governor of the province, dissolved the Assembly. The members, nothing daunted, retired to the "Raleigh" Tavern, and passed a series of resolutions. The chief of these were to purchase nothing of the East India Company, except saltpetre and spices, until their injuries were redressed; to request the members of all Corresponding Committees to take measures for the appointment of members to a General Congress; to summon the new members of the Assembly (the writs for which were already in course of issue) to meet at Williamsburg to elect delegates from that colony to the Congress.

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On the 13th of February the Opposition in the Commons brought on the question of the validity of general warrants. The debate continued all that day and the next night till seven o'clock in the morning. The motion was thrown out; but Sir William Meredith immediately made another, that a general warrant for apprehending the authors, printers, and publishers of a seditious libel is not warranted by law. The combat was renewed, and Pitt made a tremendous speech, declaring that if the House resisted Sir William Meredith's motion, they would be the disgrace of the present age, and the reproach of posterity. He upbraided Ministers with taking mean and petty vengeance on those who did not agree with them, by dismissing them from office. This charge Grenville had the effrontery to deny, though it was a notorious fact. As the debate approached its close, the Ministers called in every possible vote; "the sick, the lame were hurried into the House, so that," says Horace Walpole, "you would have thought they had sent a search warrant into every hospital for Members of Parliament." When the division came, which was only for the adjournment of Meredith's motion for a month, they only carried it by fourteen votes. In the City there was a confident anticipation of the defeat of Ministers, and materials had been got together for bonfires all over London, and for illuminating the Monument. Temple was said to have faggots ready for bonfires of his own.THE STANDARD OF PRINCE CHARLIE'S BODYGUARD, TAKEN AT CULLODEN. (In the possession of Sir Archibald Lamb at Beauport, Sussex.)
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<000005> On the 13th of February the Opposition in the Commons brought on the question of the validity of general warrants. The debate continued all that day and the next night till seven o'clock in the morning. The motion was thrown out; but Sir William Meredith immediately made another, that a general warrant for apprehending the authors, printers, and publishers of a seditious libel is not warranted by law. The combat was renewed, and Pitt made a tremendous speech, declaring that if the House resisted Sir William Meredith's motion, they would be the disgrace of the present age, and the reproach of posterity. He upbraided Ministers with taking mean and petty vengeance on those who did not agree with them, by dismissing them from office. This charge Grenville had the effrontery to deny, though it was a notorious fact. As the debate approached its close, the Ministers called in every possible vote; "the sick, the lame were hurried into the House, so that," says Horace Walpole, "you would have thought they had sent a search warrant into every hospital for Members of Parliament." When the division came, which was only for the adjournment of Meredith's motion for a month, they only carried it by fourteen votes. In the City there was a confident anticipation of the defeat of Ministers, and materials had been got together for bonfires all over London, and for illuminating the Monument. Temple was said to have faggots ready for bonfires of his own.THE STANDARD OF PRINCE CHARLIE'S BODYGUARD, TAKEN AT CULLODEN. (In the possession of Sir Archibald Lamb at Beauport, Sussex.)
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