Chapter 3

The true spirit of enterprise, which has so grandly developed the resources of our imperial domain, has generally been found to prevail among people of modest means. Thus, nearly every dollar of capital contributed toward the establishment of telegraph lines in this country came from the offerings of people in very moderate circumstances. In this connection, therefore, it is extremely gratifying to state that very few enterprises of any kind have returned such generous recompense for the amount of capital invested as the telegraph and telephone lines in America. Considering the apparently temporary and short-lived character of the structures erected for these purposes, it seems difficult to comprehend the truth of this statement.

The method of telegraphic communication devised by Professor Morse has been continued in general use in this country, but instead of requiring separate wire for each circuit as formerly, six independent circuits are now operated simultaneously over a single wire by the use of the sextuplex apparatus.

(1846) REPEAL OF THE ENGLISH CORN LAWS, Justin McCarthy

After the repeal of the corn laws the tariff legislation of Great Britain was guided by a new policy, that of free trade, and it has been followed ever since. The reactionary tendencies of Continental Europe after the fall of Napoleon reached also to England, where they controlled the conduct of political affairs until Canning, in 1822, became Secretary for Foreign Affairs. His policy was liberal and did much in forming the public opinion that at length found voice in Catholic emancipation (1829), in the Reform Bill (1832), and in the abolition of slavery in the English colonies (1833). Then followed important amendments of the poor-laws, extension of local governmental powers in the towns, improvement of popular education, and other reforms.

Through all this gradual progress in liberal government and public amelioration, the need of another reform had been pointed out by some thinkers and statesmen, and at last the condition of the country favored the views of its advocates. The corn laws protected the English producers by imposing heavy duties on imported grain. At one time these duties practically prohibited such importation. McCarthy shows how the laws operated upon the people, and his story of the memorable agitation for their repeal and of the accomplishment of that object could not have been better told.

In 1815 the celebrated Corn Law was passed, which was itself moulded on the Corn Law of 1670. By the Act of 1815 wheat might be exported upon a payment of one shilling per quarter customs duty, but the importation of foreign grain was practically prohibited until the price of wheat in England had reached eighty shillings a quarter, that is to say, until a certain price had been secured for the grower of grain at the expense of all the consumers in this country. It was not permitted to Englishmen to obtain their supplies from any foreign land, unless on conditions that suited the English corn-grower's pocket.

We may perhaps make this principle a little more clear, if it be necessary, by illustrating its working on a small scale and within narrow limits. In a particular street in London, let us say, a law is passed declaring that no one must buy a loaf of bread out of that street, or even round the corner, until the price of bread has risen so high in the street itself as to secure to its two or three bakers a certain enormous scale of profit on their loaves. When the price of bread has been forced up so high as to pass this scale of profit, then it would be permissible for those who stood in need of bread to go round the corner and buy their loaves of the baker in the next street; but the moment that their continuing to do this caused the price of the baker's bread in their own street to fall below the prescribed limit, they must instantly take to buying bread within their own bounds and of their own bakers again. This is a fair illustration of the principle on which the corn laws were moulded. The Corn Law of 1815 was passed in order to enable the landowners and farmers to recover from the depression caused by the long era of foreign war. It was "rushed through" Parliament, if we may use an American expression; petitions of the most urgent nature poured in against it from all the commercial and manufacturing classes, and in vain. Popular disturbances broke out in many places. The poor everywhere saw the bread of their family threatened, saw the food of their children almost taken out of their mouths, and they naturally broke into wild extremes of anger. In London there were serious riots, and the houses of some of the most prominent supporters of the bill were attacked. The incendiary went to work in many parts of the country. At that time it was still the way in England, as it is now in Russia and other countries, for popular indignation to express itself in the frequent incendiary fire. At one place near London a riot lasted for two days and nights; the soldiers had to be called out to put it down, and five men were hanged for taking part in it.

After the passing of the Corn Law of 1815, and when it had worked for some time, there were sliding-scale acts introduced, which established a varying system of duty, so that when the price of home-grown grain rose above a certain figure, the duty on imported wheat was to sink in proportion. The principle of all these measures was the same. How, it may be asked, could any sane legislator adopt such measures? As well might it be asked, How can any civilized nation still, as some still do, believe in such a principle? The truth is that the principle is one which has a strong fascination for most persons, the charm of which it is difficult for any class in its turn wholly to shake off. The idea is that if our typical baker be paid more than the market price for a loaf, he will be able in turn to pay more to the butcher than the fair price for his beef; the butcher thus benefited will be enabled to deal on more liberal terms with the tailor; the tailor so favored by legislation will be able in his turn to order a better kind of beer from the publican and pay a higher price for it. Thus, by some extraordinary process, everybody pays too much for everything, and nevertheless all are enriched in turn. The absurdity of this is easily kept out of sight where the protective duties affect a number of varying and complicated interests, manufacturing, commercial, and productive.

In the United States, for example, where the manufacturers are benefited in one place and the producers are benefited in another, and where the country always produces food abundant to supply its own wants, men are not brought so directly face to face with the fallacy of the principle as they were in England at the time of the Anti-Corn Law League. In America "protection" affects manufacturers for the most part, and there is no such popular craving for cheap manufactures as to bring the protective principle into collision with the daily wants of the people. But in England, during the reign of the Corn Law, the food which the people put into their mouths was the article mainly taxed, and made cruelly costly by the working of protection.

Nevertheless, the country put up with this system down to the close of the year 1836. At that time there was a stagnation of trade and a general depression of business. Severe poverty prevailed in many districts. Inevitably, therefore, the question arose in the minds of most men, in distressed or depressed places, whether it could be a good thing for the country in general to have the price of bread kept high by factitious means when wages had sunk and work become scarce. An Anti-Corn-Law association was formed in London, It began pretentiously enough, but it brought about no result. London is not a place where popular agitation finds a fitting centre. In 1838, however, Bolton, in Lancashire, suffered from a serious commercial crisis. Three-fifths of its manufacturing activity became paralyzed at once. Many houses of business were actually closed and abandoned, and thousands of workmen were left without the means of life. Lancashire suddenly roused itself into the resolve to agitate against the corn laws, and Manchester became the headquarters of the movement which afterward accomplished so much.

The Anti-Corn-Law League was formed, and a Free-Trade Hall was built in Manchester on the scene of that disturbance which was called the "massacre of Peterloo." The leaders of the Anti-Corn-Law movement were Richard Cobden, John Bright, and Charles Villiers. Cobden was not a Manchester man. He was the son of a Sussex farmer. After the death of his father he was taken by his uncle and employed in his wholesale warehouse in the city of London. He afterward became a partner in a Manchester cotton-factory, and sometimes travelled on the commercial business of the establishment. He became what would then have been considered a great traveller, distinct, of course, from the class of explorers; that is, he made himself thoroughly familiar with most or all of the countries of Europe, with various parts of the East, and with the United States and Canada. He had had a fair, homely education, and he improved it wherever he went by experience, by observation, and by conversation with all manner of men. He became one of the most effective and persuasive popular speakers ever known in English agitation. He was not an orator in the highest sense. He had no imagination and little poetic feeling, nor did genuine passion ever inflame into fervor of declamation his quiet, argumentative style. But he had humor; he spoke simple, clear, strong English; he used no unnecessary words. He always made his meaning plain and intelligible, and he had an admirable faculty for illustrating every argument by something drawn from reading or from observation or from experience. He was, in fact, the very perfection of a common-sense talker, a man fit to deal with men by fair, straightforward argument, to expose complicated sophistries, and to make clear the most perplexed parts of an intricate question. He was exactly the man for that time, for that question, and for the persuasive and argumentative part of the great controversy which he had undertaken.

Cobden's chief companion in the struggle was John Bright, whose name has been completely identified with that of Cobden in the repeal of the Corn Laws. Bright was an orator of the highest order. He had all the qualifications that make a master of eloquence. His presence was commanding; his voice was singularly strong and clear, and had peculiar tones and shades in it which gave indescribable meaning to passages of anger, of pity, or of contempt. His manner was quiet, composed, serene. He indulged in little or no gesticulation, he had a rich gift of genuine Saxon humor. These two men, one belonging to the middle class of the North, one sprung from the yeomanry of Southern England, had as a colleague Charles Villiers, a man of high aristocratic family, of marked ability, and of indomitable loyalty to any cause he undertook. Villiers for some years represented the free-trade cause in Parliament, and Bright and Cobden did its work on the platform. Cobden first, and Bright after him, became members of the House of Commons, and they were further assisted there by Milner Gibson, a man of position and family, an effective debater, who had been at first a Conservative, but who passed over to the ranks of the Free Traders, and through them to the ranks of the Liberals or Radicals.

Every year Villiers brought on a motion in the House in favor of free trade. For a long time this motion was only one of the annual performances which, by an apparently inevitable necessity, have to prelude for many years the practical movement of any great parliamentary question. Villiers might have brought on his annual motion all his life, without getting much nearer to his object, if Manchester, Birmingham, Sheffield, Leeds, and other great northern towns had not taken the matter vigorously in hand; if Cobden and Bright had not stirred up the energies of the whole country, and brought clearly home to the mind of every man the plain fact that reason, argument, and arithmetic, as well as freedom and justice, were distinctly on their side.

The Anti-Corn-Law League showered pamphlets, tracts, letters, newspapers, all over the country. They sent lecturers into every town, preaching the same doctrine, and proving by scientific facts the justice of the cause they advocated. These lecturers were enjoined to avoid as much as possible any appeals to sentiment or to passion. The cause they had in hand was one which could best be served by the clear statement of rigorous facts, by the simple explanation of economical truths which no sophism could darken, and which no opposing eloquence could charm away. The Melbourne Ministry fell in 1841. It died of inanition: its force was spent. Sir Robert Peel came into office. Cobden, who then entered the House of Commons for the first time, seemed to have good hope that even Peel, strong Conservative though he was, might prove to be a man from whom the Free Traders could expect substantial assistance. Sir Robert Peel had, in fact, in those later years expressed again and again his conviction as to the general truth of the principles of free trade. "All agree," he said in 1842, "in the general rule that we should buy in the cheapest and sell in the dearest market." But he contended that while such was the general rule, yet various economical and social conditions made it necessary that there should be some distinct exceptions, and he regarded the corn laws and sugar duties as such exceptions. It may be mentioned, perhaps, that the corn laws had, in fact, been treated as a necessary exception by many of the leading exponents of the principles of free trade. Thus we have to notice the curious fact that while Sir Robert Peel's own party looked upon his accession to power as a certain guarantee against any concession to the Free Traders, the Free Traders themselves were, for the most part, convinced that their cause had better hope from him than from a Whig Ministry.

The Free Traders went on debating and dividing in the House, agitating and lecturing all over the country, for some years without any marked Parliamentary success following their endeavors. An immense and overwhelming majority always voted against them in the House of Commons. They were making progress, and very great progress, but it was not that kind of advance which had yet come to be decided by a Parliamentary vote. Probably a keen and experienced eye might have noted clearly enough the progress they were making. The Whig party were coming more and more round to the principles of free trade. Day after day some Whig leader was admitting that the theories of the past would not do for the present, and, as we have said, the Tory leader had himself gone so far as to admit the justice of the general principles of free trade. At one point the main difference between Sir Robert Peel, the leader of the House of Commons, and Lord John Russell, the leader of the opposition, seems to have been nothing more than this, that Peel still regarded grain as a necessary exception to the principle of free trade, and Lord John Russell was not clear that the time had come when it could be treated otherwise than as an exception.

An event, however, over which no parties and no leaders had any control, suddenly intervened to hasten the action and spur the convictions of the leaders on both sides, and especially of the Prime Minister. This was the great famine which broke out in Ireland in the autumn of 1845. The vast majority of the Irish people had long depended for their food on the potato alone. The summer of 1845 had been a long season of wet and cold and sunlessness. In the autumn the news went abroad that the whole potato crop of Ireland was in danger of destruction, if not already actually destroyed. Before attention had well been awakened to the crisis, it was officially announced that more than one-third of the entire potato crop had been swept away by the disease, and that it had not ceased its ravages, but, on the contrary, was spreading more and more every day.

The general impression of those who could form an opinion was that the whole of the crop must perish. The Anti-Corn-Law League cried out for the opening of the ports and the admission of grain and food from all places. Sir Robert Peel was decidedly in favor of such a course. The Duke of Wellington and Lord Stanley opposed the idea, and the proposition was given up. Only three members of the Cabinet supported Sir Robert Peel's proposals--Lord Aberdeen, Sir James Graham, Mr. Sidney Herbert. All the others objected, some because they opposed the principle of the measure, and were convinced that if the ports were once opened they would never be closed again, which indeed was probably Peel's own conviction; and others on the ground that no sufficient proof had yet been given that such a measure was necessary. Lord John Russell, almost immediately after, wrote a letter from Edinburgh to his constituents, the electors of the city of London, in which he declared that something must immediately be done, that it was "no longer worth while to contend for a fixed duty," and that an end must be put to the whole system of protection, as "the blight of commerce, the bane of agriculture, the source of bitter division among classes, the cause of penury, fever, and crime among the people." This letter produced a decisive effect on Peel. He saw that the Whigs were prepared to unite with the Anti-Corn-Law League in agitating for the total repeal of the corn laws, and he therefore made up his mind to recommend to the Cabinet an early meeting of Parliament, with the view to anticipate the agitation which he saw must succeed in the end, and to bring forward, as a Government measure, some scheme which should at least prepare the way for the speedy repeal of the corn laws.

A Cabinet council was held almost immediately after the publication of Lord John Russell's letter, and Peel recommended the summoning of Parliament in order to take instant measures to cope with the distress in Ireland, and also to introduce legislation distinctly intended to prepare the way for the repeal of the corn laws. Lord Stanley could not accept the proposition. The Duke of Wellington was himself of opinion that the corn laws ought to be maintained, but at the same time he declared that he considered good government for the country more important than corn laws or any other considerations, and that he was therefore ready to support Sir Robert Peel's Administration through thick and thin. Lord Stanley and the Duke of Buccleuch, however, declared that they could not be parties to any legislation which tended toward the repeal of the corn-laws. Sir Robert Peel did not feel himself strong enough to carry out his project in the face of such opposition in the Cabinet itself, and he tendered his resignation to the Queen. The Queen sent for Lord John Russell, but Russell's party were not very strong in the country and they had not a majority in the House of Commons. Lord John tried, however, to form a ministry without a Parliamentary majority, and even although Sir Robert Peel would not give any pledge to support a measure for the immediate and complete repeal of the corn laws, Lord John Russell was not successful.

Lord Grey, son of the Lord Grey of the Reform Bill, objected to the foreign policy of Lord Palmerston, and thought a seat in the Cabinet ought to be offered to Cobden. Lord John Russell had nothing to do but to announce to the Queen that he found it impossible to form a ministry. The Queen sent for Sir Robert Peel again and asked him to withdraw his resignation. Peel complied, and almost immediately resumed the functions of First Minister of the Crown. The Duke of Buccleuch consented to go on with him, but Lord Stanley held to his resolution and had no place in the Ministry. His position as Secretary of State for the Colonies was taken by William E. Gladstone. Gladstone, however, did not sit in Parliament during the eventful session when the corn laws were repealed. He had sat for the borough of Newark, which was under the influence of the Duke of Newcastle; and as the Duke of Newcastle had withdrawn his support from the Ministry, Gladstone did not seek re-election for Newark, and remained without a seat in the House of Commons for some months.

Parliament met on January 22, 1846. The "speech from the throne," delivered by the Queen in person, recommended the legislature to take into consideration the necessity of still further applying the principle on which it had formerly acted, when measures were presented "to extend commerce and to stimulate domestic skill and industry, by the repeal of prohibitive and the relaxation of protective duties." In the debate on the "address" Sir Robert Peel rose, after the mover and seconder had spoken and the question had been put from the Chair, and at once proceeded to explain the policy which he intended to adopt. His speech was long and labored, and somewhat wearied the audience by the elaborate manner in which he explained how his opinions had been brought into gradual change with regard to free trade and protection. He made it, however, perfectly clear that he was now a convert to Cobden's opinions, and that he intended to introduce some measure which should practically amount to the abolition of protection.

It was in this debate, and immediately after Peel had spoken, that Benjamin Disraeli made his first great impression on Parliament. He had been in the House for many years, and had made many attempts, had sometimes been laughed at, had sometimes been disliked, and occasionally for a moment admired. But it was when he rose immediately after Sir Robert Peel, and denounced Peel as one who had betrayed his party and his principles, that he made the first deep impression on the House of Commons, and came to be considered as a serious and influential Parliamentary personage. "I am not one of the converts," Disraeli said, "I am perhaps a member of a fallen party." A new Protection party was formed almost immediately under the leadership of George Lord Bentinck, a man of great energy and tenacity of purpose, who had hitherto spent his life almost altogether on the turf, who had had almost no previous preparation for leadership or even for debate, but who certainly, when he did accept the responsible position offered to him, showed a considerable capacity for leadership and an unwearying attention to his duties.

On January 27th Sir Robert Peel explained his financial policy. His intention was to abandon the sliding scale altogether, to impose for the present a duty of ten shillings a quarter on corn when the price of it was under forty-eight shillings a quarter, to reduce that duty by one shilling for every shilling of rise in price until it reached fifty-three shillings a quarter, when the duty should fall to four shillings. This, however, was to be only a temporary arrangement. It was to last but three years, and at the end of that time protective duties on grain were to be wholly abandoned. We need not go at any length into the history of the long debates on Peel's propositions. The discussion of one amendment, which was in substance a motion to reject the scheme altogether, lasted for twelve nights. The third reading of the bill passed the House of Commons on May 15th, by a majority of ninety-eight.