. The surplus of
the revenue amounted to over L4,000,000 sterling, owing largely to the
income tax, which now the ministers proposed to reduce. The charter of
the Bank of England was renewed in a form which modified the whole
banking system in England. The banking business of the Bank was placed
on the same footing with other institutions as to its power of issuing
notes, which beyond a certain amount should depend on the amount of
bullion in the Bank. Substantially, this was the same principle which
Daniel Webster advocated in the United States Senate,--that all
bank-notes should be redeemable in gold and silver; in other words, that
a specie basis is the only sound principle, whether in banking
operations or in government securities, for the amount of notes issued.
This tended to great stability in the financial world, as the Bank of
England, although a private joint-stock association, has from its
foundation in 1694 been practically the fiscal agent of the
government,--having the management of the public debt, paying dividends
upon it, holding the government moneys, making advances when necessary,
helping the collection of the public revenue, and being the central bank
of the other banks.

In addition to the financial measures by which Sir Robert Peel increased
the revenues of the country, and gave to it a greater degree of material
prosperity than it had enjoyed during the century, he attempted to
soothe the Catholics of Ireland by increasing the grant to the Roman
Catholic College of Maynooth, in Ireland; indeed, he changed the annual
grant to a permanent endowment, but only through a fierce opposition. He
trebled the grant for national education, and exhibited increasing
liberality of mind as he gained experience. But his great exploit was
the repeal of the corn laws, in a Parliament where more than three
quarters of the members represented agricultural districts, and were
naturally on the side of a protection of their own interests. In order
to appreciate more clearly the magnitude of this movement, we must trace
it from the beginning.

The centre of agitation for free-trade, especially in breadstuff's, was
Manchester,--the second city of the kingdom for wealth, population, and
influence, taking in the surrounding towns,--a very uninteresting place
to the tourist and traveller; dingy, smoky, and rainy, without imposing
architecture or beautiful streets; but a town of great intellectual
activity in all matters p