unnatural that fault should be found with him for not
making a more resolute effort to lighten the burden of that heavy mortgage
which, under the name of the National Debt, we have laid upon the industry
and property of the nation. In 1866 he was keenly excited by Jevons's
argument from the ultimate shrinkage of our coal supply, and he accepted
the inference that we should vigorously apply ourselves by reduction of
the debt to preparation for the arrival of the evil day. But, as he wrote
to Jevons (March 16, 1866), "Until the great work of the liberation of
industry was in the main effected, it would have been premature or even
wrong to give too much prominence to this view of the subject. Nor do I
regard that liberation as yet having reached the point at which we might
say, we will now cease to make remission of taxes a principal element and
aim in finance. But we are in my judgment near it. And I am most anxious
that the public should begin to take a closer and more practical view of
the topics which you have done so much to bring into prominence."

He was always thinking of the emancipation of commerce, like Peel and
Cobden. His general policy was simple. When great expenditure demanded
large revenue, he raised his money by high income-tax, and high rates of
duty on a few articles, neither absolute necessities of life nor raw
materials of manufacture. He left the income-tax at fourpence. In 1866, he
told the House that the new parliament then about to be elected might
dispense with the tax. "If," he said, "parliament and the country
preferred to retain the tax, then the rate of fourpence is the rate at
which in time of peace and in the absence of any special emergency, we
believe it may be most justly and wisely so retained." While cordially
embracing Cobden's policy of combining free trade with retrenchment, he
could not withstand a carnal satisfaction at abundant revenue. Deploring
expenditure with all his soul, he still rubs his hands in professional
pride at the elasticity of the revenue under his management.

II

When it is asked, with no particular relevancy, what original contribution
of the first order was made by Mr. Gladstone to the science of national
finance, we may return the same answer as if it were asked of Walpole,
Pitt, or Peel. It was for Adam Smith from his retreat upon the sea-beach
of distant Kirkcaldy to introduce new and fruitful ideas, though he too
owed a debt to French economists. Th