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CONTENTS 
liability, and these were largely used for trans-oceanio shipping. The trade 
of the East India Company to India was thrown open in 1813, but the 
exclusive trade with China was retained till 1833, The abandonment of 
well-ordered trade through the Hongists, in favour of open competition, had 
disastrous results, when the last remnant of monopoly in ocean trade was 
given up. The danger of monopoly growing up for internal communication 
led to the interference of Government on behalf of the public, and to the 
institution of the Railway Commission. . ‘ . . * 816 
275. Banking Facilities. The inadequacy, for modern requirements, of 
the credit system was brought out by the crisis of 1825, which led to 
a renewed agitation against the monopoly of the Bank of England, and 
to the development of provincial banks, and of London banks with the power 
of issuing notes. By the Act of 1844 the responsibility for issuing notes was 
concentrated in the Bank of England, but this did not prevent the occur- 
rence of crises; the large amount of capital sunk in railway enterprise, and 
the necessity for large payments abroad, together with a sudden change, due 
to a good harvest, in the corn trade, brought about the crisis of 1847, The 
Bank has justified its position not so much by controlling the issue of notes 
8 by maintaining the reserve. . . . . . . . 822 
276. Public Policy in regard to Navigation. The new conditions of 
commerce gave rise to an agitation by London merchants against the system 
of commeroial regulation through the Navigation Acts. Reciprocal trade 
onder treaties was adopted with several maritime powers, and preferential 
tariffs were arranged within the Empire. Though the privileges of English 
shippers were done away with in 1849, English maritime supremacy has 
been successfully maintained owing to the introduction of iron ship- 
puilding. ee eo s + eo a e os 829 
277. Financial Reform. Commercial progress had been hampered by 
the pressure of taxation ; this was reduced, with the view of encouraging in- 
dustry, before Peel undertook the thorough reform of the fiscal system. Under 
reduced rates, trade revived and revenue expanded. The change of system 
was tided over by the temporary imposition of an income tax, which has been 
retained as a regular charge, owing to its convenience, v . £823 
278. The Relative Depression of the Landed Interest. Economie 
and political antagonism was roused against the Corn Laws, as recast in 
1815, since they benefited a particular class, to the disadvantage of the 
manufacturing interest. The Irish Famine rendered suspension inevitable, 
and repeal followed in 1846. The policy of fostering a home-grown food 
supply was discarded as a failure, and the landed interest was relegated 
to a secondary place in the State, but the work of improvement was taken 
up by substantial tenants. before the full effects of foreign competition 
were felt. . . . . . o . . . . . 840 
279. Effects on Ireland. The depression of the landed interest was 
specially noticeable in Ireland after the Union, for she could not take 
advantage of the new commercial prosperity by obtaining markets for manu: 
Iactures; and subsistence farming was maintained, with disastrous results in 
the Famine. The repeal of the Corn Laws deprived lreland of an advantage 
in the English market, and the State has neither succeeded in atiracting 
capitalist farmers nor in developing a peasant proprietary. . 845 
280. Emigration and the Colonies. The economic principles of latexes