CHAPTER VIII.

COMMERCIAL AND ECONOMIC PROGRESS, 1860-1870.

Causes affecting Trade.-Increase of Population. -Consumption of Articles of Food and Drink.-Increase of Commerce.-Amount of Bank Deposits. -Transactions of the Clearing House.-Increase of Property assessed to Income Tax and in the Capital of Savings' Banks.-Statistics of Factories. -State of British Finances.-The Coinage Act.-Treaties of Commerce.

THE decennium 1860-70 commenced under two opposing influences. On the one hand, there was considerable suffering in Lancashire, consequent on the restricted supply of cotton from the United States of America, on the other there was great activity in the trade with France and other European states, consequent on the conclusion of the treaties of commerce. The Act of 1862, on Joint Stock Companies, gave considerable stimulus to the formation of companies, and a buoyant spirit ensued which led to the commercial crisis of 1866. Some time elapsed after that crisis before confidence revived, and trade was scarcely restored to its wonted activity when the Franco-Prussian War produced a most discouraging and paralysing influence. Notwithstanding, however, all unfavourable circumstances, much progress is visible in the economic progress of the nation during the ten years. The population of the principal towns increased as follows:

The population of the United Kingdom increased as follows:

The economic condition of the people may be judged from the consumption of the principal articles of food and drink :

The amount of trade greatly increased. In 1860 the exports of British produce and manufacture were valued at 135,891,000l., or in the proportion of 4l. 148. 7d. per head. In 1870 they amounted to 199,586,000l., or in the proportion of 6l. 78. 11d. per head. The total trade of the United Kingdom increased as follows:

As an evidence of the increase of capital, the following is the amount of deposits held by the London Joint Stock Banks:

In 1867 the Committee of Bankers determined to ascertain and publish the total daily amount passing through the clearing house. An attempt was made to obtain the amount cleared in 1839, when it was found that the average for each day of the week was 18,400,200l., or omitting the 4th of each month and settling days, 17,146,400l. In 1867-68 and subsequent years, the results were as follows:

Considerable increase is observable in the amount of income assessed to income tax, as follows:

The assessments on quarries, mines, fisheries, canals, railways, gasworks, &c., were transferred from Schedule A to Schedule D from April 5, 1866.

The amount of capital held by the Trustees Savings' Banks greatly increased, and in 1863 the Post Office Savings' Banks were established. In 1860 the amount held by the Trustees Savings' Banks was 41,259,000l. In 1870 that amount was reduced to 37,959,000l.; but in the latter year the Post Office Savings' Banks held 15,099,000l., making the total of 53,058,000!. The amount expended in actual relief of the poor in England and Wales, which in 1860 was 5,495,000l., increased in 1870 to 7,644,307., while the number of paupers increased from 851,020 in 1860 to 1,079,391 in 1870.

The following figures indicate the progress of our textile manufactures :

The finances of the United Kingdom were affected by the Treaty of Commerce with France. Mr. Gladstone was Chancellor of the Exchequer in the second Palmerston administration of June 30, 1859, and his first budget in 1860 provided for the repeal of all duties on butter, cheese, eggs, rice, and silk manufactures. He proposed also the repeal of the excise duty on paper, but that gave occasion to a question of privilege between the two Houses of the Legislature, and the question was not disposed of till the following year, when the duty on paper was abolished. The customs duties on sugar were reduced in 1864, and the duty on tea reduced in 1865. During Mr. Gladstone's financial administration, which lasted till 1865, the revenue averaged 70,000,000l., and, excepting 1860 and 1861, the budgets exhibited an annual surplus. The Funded Debt was reduced from 785,962,000l. in 1860 to 775,768,295l. in 1865. For a brief period of two years, in 1866 and 1867, Mr. Disraeli was Chancellor of the Exchequer, during which the finances remained in a sound condition. In October 1867, Mr. Gladstone's administration was formed with Mr. Lowe as Chancellor of the Exchequer. In 1870 the gross revenue amounted to 75,434,252l., and the expenditure was 68,864,7521. On that year the Funded Debt was 741,112,640.

In 1870 an important Act 2 was passed to amend the law relating to the Coinage and Her Majesty's Mint, whereby all coins made at the Mint must be of the weight and fineness specified in the schedule of the Act, the same to be legal tender in the case of gold coins for the payment of any amount, in the case of silver coins for a payment of an amount not exceeding forty shillings, and in the case of bronze coins for a payment of an amount not exceeding one shilling. Any person bringing to the Mint any gold bullion may have the same assayed and coined without any charge.3 The Chancellor of the Exchequer for the time being was made Master Worker and Warden of Her Majesty's Mint.*

The number of articles and subdivisions of articles charged with distinct rates of import duties in the customs tariff was as follows:

The free coinage of gold was introduced in 1666 under the Act 18 Charles II. c. 5. The Act was made perpetual by the Act 9 Geo. III. c. 25. Important changes have been made in the constitution of the Mint. In 1851 the contract with the melters and moneyers was put an end to. Till 1851 the proceedings of the Mint were regulated by Indentures between the Crown and the Master of the Mint. From that date, by an Order of Council, the administration of the Mint and the regulation of the coinage were made subject to the control of the Treasury. Under the Act of 1870 the regulation of the coinage was more definitely regulated by statute.

Sir Isaac Newton was, in the reign of William and Mary, appointed Warden of the Mint, and in 1718 was transferred by George I. to the Mastership.

eral important treaties were excluded during this period. A traty of elmmerce with Italy on August 6, 1863, with Prussia on May 310 1865, and with Austria on December 30, 1569; also with Torn in 1961, with Burmat in 1862, and with Salvador in IM2. Treaties were occluded with Belgium, France, and the Netherlands on November 8, 1864, on drawback on sugar. Treaties for the redemption of the Stade toll in 1861, and the Scheldt toll in 1963; and a treaty with the United States of America for co-operation in the suppression of the African slave trade on April 7, 1862.