der of the
revenue the excise might be regarded as equal to the income-tax, but
less to be relied on in times of depression. Valuable as were the
reforms of the excise after 1820, they were insignificant as compared
with the changes in the customs. The particular circumstances of English
political life have led to perhaps undue emphasis being placed on this
particular branch of financial development. Between 1820 and 1860 the
customs system was transformed from a highly complicated arrangement of
duties, pressing with severity on nearly all foreign imports, into a
simple and easily understood set of charges on certain specially
selected commodities. All favours or preferences to home or colonial
producers disappeared. Expressed in financial terms, all duties were
imposed "for revenue only," and estimated in reference to their
productiveness. An assimilation between the excise and customs rates
necessarily followed. The stages of the development under the guidance
of (1) Huskisson, (2) Peel, and (3) Gladstone are commonly regarded as
part of the movement for Free Trade; but the financial working of the
alteration is understood only by remembering that the duties removed by
"tens" or by "hundreds" were quite trivial in yield, and did not involve
any serious loss to the revenue. Perhaps the most remarkable feature of
the English customs of the 19th century was the steadiness of the
receipts. In spite of trade depressions, commercial crises and sweeping
changes in rates, the annual revenue in the period 1815-1900 only varied
between L19,000,000 and L24,000,000; though, on balance, duties
amounting to L30,000,000 were remitted. The potential resources of this
branch of revenue were made evident in the rapid rise of the yield by
the new taxation imposed for the South African War (1899-1902). In
consequence of this increase the customs became equal to the excise in
return, and, combined, they collected over L60,000,000 annually from the
consumption of commodities. They accordingly afforded a counterpoise to
the burden put on income and property, or, more accurately speaking,
they obtained due, or somewhat more than due, contribution from the
smaller incomes, particularly those of the working class.

The exemption of raw materials and food; the absence of duties on
imported, as on home manufactures; the selection of a small number of
articles for duty; the rather rigorous treatment of spirits and tobacco,
were the salient marks