no assessed taxes were in force. Under these circumstances Sir Robert Peel considered it best with reference to the public interests, wiser, better, and more just,' to endeavour to raise a fair proportion of charge, to be contributed by Ireland, by means of an addition to existing duties, than to create new and expensive machinery for a temporary purpose. The assimilation of the duties involved a payment of about 120,000l. per annum, and was effected by the Act of the 5th The Assi- and 6th years of Vic. c. 82, 'An Act to assimilate the Stamp Duties in Great Britain and Ireland until October 10, 1845.'1

milation'

Act of 1842.

Reductions effected in

1844.

The remaining alterations effected during Sir R. Peel's second administration were those of 1844, viz. (1) a further reduction in the marine insurance duties, which were re-imposed at the following reduced rates per cent. on the sum insured :

a year being the longest period for which policies of this description might be made.

1 The duties imposed by this Act were continued by subsequent Acts, and in 1853 were made perpetual. See post.

(2) a reduction of duty for short agreements, i. e.—not more than fifteen folios in length, from 17. to 2s. 6d.; and (3) a reduction of the duties on proxies for voting at a meeting of the shareholders in any joint stock company (previously chargeable, as letters or powers of attorney, with 17. 10s.), to 2s. 6d.

The consolidation in the year 1849 of the boards of Excise and Stamps and Taxes aptly closes the period under review.

Yield of the Stamp Duties in the Year 1849.

The following is a statement of the yield of the stamp duties in the United Kingdom in the year 1849.

Forming for duties on fire and marine insurance a total of 1,294,530

3. Bills of exchange and promissory notes-United

Inauguration of a period of reform in

1850.

THIRD PERIOD, A.D. 1850–1870.

Revision and Reform of the Stamp Duties.

Thirty-five years had elapsed since the conclusion

of peace with France, and, one by one, other taxes, imposed or raised to high rates for the purposes of the war, had been either considerably reduced in amount or totally repealed, when Sir Charles Wood, Chancellor of the Exchequer in Lord John Russell's Administration, inaugurated a period of reform for the stamp duties. This, however, was not accomplished without considerable difficulty. Sir Charles commenced by introducing in the House of Commons a measure of improvement, which though considerable, was limited, in order to avoid the difficulties experienced by Mr. Goulburn and Mr. Spring Rice and for the third time the chagrin of labour ending in nothing, to the rectification of the most urgent defects of the existing system. It was avowedly only a first instalment of reform, and was recommended as involving a remission of taxation to Sir Charles the amount of 300,000l. Its principal feature was the first Bill. substitution of percentage duties on bonds, mortgages, conveyances, and settlements, for the arbitrary and jumping scales of the Act of 1815, with their maximum charges for transactions over a certain amount; and the excellence of the general scope and principle of the Its general Bill was undeniable. In some of its provisions, howprinciple. ever, which had the effect of increasing the duties on

Wood's

scope and

to the Bill.

particular instruments, and in some of its details, the Bill was open to criticism. Petitions poured in from Opposition all parts of the kingdom from parties who conceived they would be aggrieved by its provisions, or who fancied they saw a design to extend the operation of the stamp duties under the cover of a pretence to reduce and modify them, and the various legal periodicals took up the subject, and pointed out the defects of the Bill with no unsparing hand.' 1

clauses

Notwithstanding some opposition, the clauses forming The the body of the Bill passed through committee; not pass. so, however, the schedule of duties, which stuck fast at the first item, which was the Bond duty. This duty, charged at the same rate as, and therefore involving the Mortgage duty, Sir Charles had originally intended to impose at the rate of 108. per cent., though subsequently he consented to alter it to 5s. per cent. Even at this rate it was a considerable increase for large transactions. The proposed alteration was, therefore, opposed as calculated to prevent mortgagors for large sums availing themselves of changes in the money market, the high duty to which a new mortgage would be subject operating as a fine on the transaction; moreover, it was urged that mortgages are generally the transactions of persons in difficulties and not therefore able to pay a high rate of tax. The late Sir Henry Adverse Willoughby moved an amendment to reduce the first bond and step of the duty, and his motion was carried. This upset the calculations upon which the measure was

1 Chitty's Stamp Laws, 3rd edit., p. 11.

vote on the

mortgage

The bill is withdrawn.

Uno avul

so non de

founded, and the Chancellor of the Exchequer withdrew the Bill.

Subsequently, in the same Session, however, Sir ficit alter. Charles introduced another Bill in which most of the provisions that had raised objections against the former Bill were omitted, and the schedule of duties was to a considerable extent remodelled; and this Bill eventually second bill became law as the Act of the 13th and 14th Victoria, c. 97.

Sir

Charles'

becomes

law.

Alterations ef

fected by

The principal alterations in the duties effected by this Act, taking them in the alphabetical order of the the Act of instruments affected, and stating, under each head, (1) the existing duties, (2) the alteration effected, and (3) the general effect of the alteration, were as follows:

1850.

Principal alterations affecting:

1. Agree

ments.

2. Bonds and mort

gages.

1. The existing duties on agreements touched only agreements relating to matter of the value of 201. or upwards, and were charged with reference to length, at 2s. 6d. for agreements less than fifteen folios in length, and, for longer documents, 17. 15s., with 17. 5s. for every additional quantity of fifteen folios after the first fifteen. These duties were now reduced to 2s. 6d. for agreements under thirty folios in length, and, for more lengthy documents, 2s. 6d. for every entire quantity of fifteen. folios, i.e. 2s. 6d. a sheet. The alteration afforded great relief in cases of contracts for building, &c., where plans and specifications annexed to the contract render it of considerable length.

2. The existing irregular scale for bonds, mortgages, and warrants of attorney ranged from a charge of 11. for securities not exceeding 50l., to a charge of 251. for securities exceeding 20,000l. The duties were now