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THREE:[576]During this period a vast empire was beginning to unfold itself in the East Indies, destined to produce a vast trade, and pour a perfect mine of wealth into Great Britain. The victories of Clive, Eyre Coote, and others, were telling on our commerce. During the early part of this period this effect was slow, and our exports to India and China up to 1741 did not average more than ��148,000 per annum in value. Bullion, however, was exported to pay expenses and to purchase tea to an annual amount of upwards of half a million. Towards the end of this period, however, our exports to India and China amounted annually to more than half a million; and the necessity for the export of bullion had sunk to an annual demand for less than ��100,000. The amount of tea imported from China during this period rose from about 140,000 pounds annually to nearly 3,000,000 pounds annually��an enormous increase.

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THREE: The Year of Revolutions��Lord Palmerston's Advice to Spain��It is rejected by the Duke of Sotomayor��Dismissal of Sir H. Bulwer��The Revolution in Germany��Condition of Prussia��The King's Ordinance��He disclaims a Desire to become German Emperor��The National Assembly dispersed by Force��A New Constitution��The King declines the German Crown��The Revolution in Vienna��Flight of Metternich and of the Emperor��Affairs in Bohemia��Croats and Hungarians��Jellachich secretly encouraged��Revolt of Hungary��Murder of Lamberg��Despotic Decrees from Vienna��The second Revolution in Vienna��Bombardment of Vienna��Accession of Francis Joseph��Commencement of the War��Defeats of the Austrians��Quarrel between Kossuth and G?rgei��Russian Intervention��Collapse of the Insurrection��The Vengeance of Austria��Death of Count Batthyani��Lord Palmerston's Protest��Schwartzenberg's Reply��The Hungarian Refugees��The Revolution in Italy��Revolt of Venice��Milan in Arms��Retreat of Radetzky��Enthusiasm of the Italians��Revolution and counter-Revolution in Sicily and Naples��Difficulties of the Pope��Republic at Rome��The War in Lombardy��Austrian Overtures��Radetzky's Successes��French and British Mediation��Armistice arranged��Resumption of Hostilities��Battle of Novara��Abdication of Charles Albert��Terms of Peace��Surrender of Venice, Bologna, and other Italian Cities��Foreign Intervention in Rome��The French Expedition��Temporary Successes of the Romans��Siege and Fall of Rome��Restoration of the Pope��Parliamentary Debates on Italian Affairs��Lord Palmerston's Defence of his Policy.Yet, during this winter, while Massena's army was in a constant state of semi-starvation, badly clothed and badly lodged, and thus wasting away by sickness and desertion, that of Wellington increased in numbers, in physical condition, and in discipline. Whilst Massena's army, originally seventy-one thousand men, was ere long reduced by the battle of Busaco and the miserable quarters in the wet country near Torres Vedras to fifty-five thousand, the forces of Wellington had been augmented, by reinforcements from England, and by the addition of Portuguese and Spanish troops, to fifty-eight thousand. When Massena retreated to Santarem, Wellington followed him to Cartaxo,[607] and there fixed his headquarters, and ordered General Hill to post his division opposite to Santarem, so as to check the enemy's foraging parties in that direction. At the same time, Colonel Trant, who had surprised the French rear as Massena's army was leaving Coimbra on his march after Wellington to Torres Vedras, and had secured the sick and wounded in the hospitals there to the amount of five thousand men, and who retained possession of Coimbra, now joined Sir Robert Wilson and Colonel Millar, who commanded the Portuguese militia, and their united force appeared in Massena's rear, cutting off his communication with the north and also with the Spanish frontier.

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THREE: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 tariff��to 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 less��to 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 tax��at least, if a temporary one��was 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.The claims of Ireland seeming, for the moment, to be happily satisfied, Ministers now proceeded to carry out those reforms for which they had loudly called during the many years that they had been in opposition. They adopted and introduced the Bills of Sir Philip Clerke and Mr. Carew for excluding contractors from the House of Commons, and revenue officers from voting at elections. The Bill against the contractors passed the Commons with little difficulty; but the Ministers immediately felt the mischief of allowing Lord Thurlow to retain his place of Chancellor. He opposed the measure vehemently, and divided the House upon it. Lord Mansfield gave it his cordial resistance, and the new Lord Ashburton, though created by the present Administration, tacked to it a clause exempting all gentlemen who merely contracted for the produce of their estates. The clause, however, was lopped away again on the return of the Bill to the Commons, and the Act passed without it. The Bill for disqualifying revenue officers was opposed with equal pertinacity by Thurlow and Mansfield; though Lord Rockingham stated that the elections in seventy boroughs depended chiefly on revenue officers, and that nearly twelve thousand of such officers created by the late Ministry had votes in other places. The Bill passed, after exempting all officers who held their posts for life, and therefore were charitably supposed to be beyond the reach of undue influence, as if no such thing as promotion had its effect.

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THREE:On the death of Stanhope, Sir Robert Walpole was left without a rival, and he received his commission of First Lord of the Treasury on the 2nd of April, and from this period down to 1742 he continued to direct the government of Great Britain. His chief anxiety now was to restore the public credit. He drew up, as Chairman of the Committee of the Commons, a report of all that had been lost in the late excitements, and of the measures that had been adopted to remedy the costs incurred. Amongst these were the resolutions of the House respecting the seven and a half millions the directors of the South Sea Company had agreed to pay to Government; more than five had been remitted, and we may add that on the clamorous complaints of the Company the remainder was afterwards remitted too. The forfeited estates had been made to clear off a large amount of encumbrance, the credit of the Company's bonds had been maintained, and thirty-three per cent. of the capital paid to the proprietors. Such were the[49] measures adopted by the Commons, and these being stated in the report to the king, a Bill was brought in embodying them all. Many of the proprietors, however, were not satisfied. They were very willing to forget their own folly and greediness, and charge the blame on the Government. On the second reading of Walpole's Bill they thronged the lobby of the House of Commons. The next day the Bill was carried, and gradually produced quiet; but Walpole himself did not escape without severe animadversions. He was accused of having framed his measures in collusion with the Bank, and with a clear eye to his own interest; but he had been strenuously vindicated from the charge, and on the whole the vigour and boldness with which he encountered the storm and quelled it deserve the highest praise, and may well cover a certain amount of self-interest, from which few Ministers are free.

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