 |
| Hannah More's Cheap Repository Tract, 'The Riot', published in 1795 |
Wartime hardship
The summer of 1794 was one of prolonged drought and intense heat, and the result was a disappointing though not a disastrous harvest. This was followed by a severe winter, creating a grain shortage in early 1795. The spring saw rapid price rises. Shortages intensified in the summer, with garrison and naval towns suffering particularly. Bread rioters set fire to mills, sometimes they attacked those whom they believed to be hoarders or selling short measure; at other times they tried to prevent grain from leaving an area. At other times they commandeered goods and sold them at what they regarded as a fair price. This was not thuggery, but what the historian, E. P. Thompson, described as 'moral economy': a traditionalist attempt to rectify what were seen as injustices in the pricing and sale of goods.Women were prominent in these riots. They felt so strongly because they were trying to feed their families under difficult conditions. They also benefited from the law which regarded married women as acting under the direction of their husbands - could they therefore be punished as independent agents?
Solutions to poverty?
The newspapers recommended recipes such as rice or potato bread. The rich were urged to stew their meat rather than roast it. The royal family tried to give a lead by reducing its consumption of white bread and eating more brown bread. The poor were urged to cook rice puddings - but the problem was that they did not have the ovens to cook them. They were also encouraged to eat potatoes rather than bread, but proved resistant.The imposition of excise duty on hair powder (with a £20 fine for those caught breaking the law) was designed to lessen the use of flour. Legislation forbade the use of wheat in distilling and in making starch. It is not clear that anyone starved to death during the shortage - but it must have had a devastating effect on health.
One solution to rural poverty was found by the magistrates of Speenhamland in Berkshire in May 1795. This provided variable amounts of relief according to the size of a labourers’ family and the prevailing price of bread. It was bitterly attacked by political economists as encouraging large families and encouraging farmers to pay the lowest possible wage. It was also criticised for failing to discriminate between the idle and the industrious worker. However the system was quite widely adopted in the southern counties.
Pitt's 'Reign of Terror'
Pitt’s government was fearful of a home-grown revolutionary insurrection and in the mid-1790s, the state increased its powers of coercion. On 23 May 1794 Pitt succeeded in getting the suspension of Habeas Corpus through Parliament in the face of fierce Whig opposition.In 1793 and 1794 a series of trials for sedition took place in Scotland, presided over by the infamous Lord Braxfield. The defendants were transported to Australia. However, in the English treason trials of 1794, the juries returned ‘Not Guilty’ verdicts.The difference between the English and Scottish trials reflects the different legal systems.
Although Fox asked shrewd questions about the purpose of the war and though his attacks on government repression were arguably ‘right’ he did not gain politically. His refusal to support the war split his party. In the summer of 1794 the Duke of Portland, the nominal party leader, entered into a coalition with Pitt, bringing with him his fellow conservative Whigs. Pitt was politically stronger than ever, and the Foxites reduced to irrelevance.
In December 1795 the government brought in the acts known colloquially as the Gagging Acts. The Treasonable Practices Act forbade the expression of views calculated to bring king or government into contempt.The Seditious Meetings Act forbade assemblies of more than 50 persons without prior notice and gave the magistrates power to disperse the onlookers if seditious observations were being made.
Finance
The weakness of the British army, and of the mercenaries hired by the government, was shown in the unsuccessful campaigns in Flanders in 1793 and 1794. Pitt’s strategy was to seek victory through continental coalitions, paid for by loans, and therefore by the British taxpayer. This put unprecedented strains on the economy and the existing system of taxation.The suspension of cash payments: News that French troops were ashore in Wales in February 1797 led to a run on the county banks. Combined with loans to foreign powers, this led to a shortage of gold. On 28 February the Bank of England suspended cash payments. In March an Order in Council allowed the Bank to issue notes without the need or promise to back them up with gold. The Bank and the county banks could issue notes under £5, and the first £1 and £2 notes began to emerge. Some banks failed under the stress. It was an important psychological change when people were forced into accepting a paper currency. By 1803 a Scottish banker said it was an ‘agreeable surprise’ to see how quickly the country had accepted paper money.
The assessed taxes: In the eighteenth century, the main direct tax was the land tax. It was supplemented by the ‘assessed taxes’ – a range of taxes on items such as windows, carriages and male servants, designed to tap the income of the rich – and by excise duties. Collection was delegated to commissioners drawn from the ranks of local taxpayers, which contributed to a high level of consent.
Income tax: The outbreak of war placed strains on the fiscal constitution and exposed the inadequacy of existing taxes. From 1792-8 the national debt increased by about 80 per cent. In his budget speech of 3 December 1798 Pitt outlined his proposal to phase out the land tax and replace the assessed taxes with a new tax which no longer fell upon expenditure but upon incomes and in theory at least allowed the yield to rise in line with the income of the country. The tax involved:
- A general tax of 2/- in the £ on all incomes of £200 or more.
- Incomes under £60 pa were exempt. Those with incomes between £60 and £200 were to pay on a graduated scale.
- Individuals were to draw up their own assessments and swear an oath as to their accuracy. If they did not do this, Crown commissioners, sworn to confidentiality, would assess them.
The tax was deeply controversial, described by the Morning Chronicle as ‘a daring innovation. In the ensuing debates it was described as ‘a confiscation of property'. But the bill became law within five weeks. It commanded patriotic war-time assent – and it was to be temporary! Overall, it was collected with reasonable efficiency.
Conclusion
- As a war-time prime minister, Pitt presided over unprecedented change.
- More people were involved in the war than ever before, either as civilians or members of the armed forces.
- The radicals came under increasing threat.
- The country was forced to accept a paper currency and a new tax – income tax. The first census was undertaken in 1801.
