This Society was founded in 1826 by Lord Brougham and other gentlemen, described by Mr. Knight as the leading statesmen, lawyers, and philanthropists of the day. “It was a blow aimed at the monopoly of literature--the opening of the flood-gates of knowledge.” At first the Society possessed no charter, but obtained one in May, 1832, not probably a very useful or essential gift, nominating Brougham as president, Lord John Russell as vice-president, and William Tooke, Esq., treasurer. No subscriptions were called for, or rather these means had been at once abandoned, and the “arrangements made with the publisher since the beginning of the Society have gone upon the principle of leaving the committee as far as possible free from risk, and unencumbered with commercial responsibility; but at the same time deriving a fair proportion of pecuniary advantage from the ultimate success of the undertaking.” The publisher in the first instance paid down a certain sum for the copyright, sufficient to cover the disbursements to the authors by the committee, who, after a limit of sale, received a royalty of so much per thousand copies. At first the Society’s publications abounded in almanacs; “The British Almanack,” “The British 4_d._ Almanack,” “The Penny Sheet Almanack,” and “The British Working-man’s Almanack.” Then came the _Penny Magazine_, the _British Quarterly Journal of Education_, and the “Penny Encyclopædia,” the first number of which was issued in July, 1833. It was originally projected to form a moderate-sized book of eight volumes, and every article was to be written expressly for the work. This limited size was found to be incompatible with original work by the best writers, and after a year the price and quantity were doubled; after three years more, quadrupled. In the present form, and according to the original scheme, the issue would have taken thirty-seven years. But this increase of matter, while it largely enhanced the intrinsic value of the work, was utterly fatal to its commercial success. The committee got, says Mr. Knight, the credit of the work, without incurring any of the risk; and the expenditure on literary matter alone amounted to £40,000. The sale, owing to the increase of matter and price, rapidly declined: at first consisting of 75,000 copies, it fell at the increase to twopence to 55,000, in the second year to 44,000, and at the close of the fourpenny period it was actually reduced to 20,000; and this chronic loss entailed upon Mr. Knight for the duration of eleven years absorbed every other source of profit in his extensive business. This loss was still further augmented by the enormously heavy paper duty of threepence per pound, but which was reduced in 1836 to half that price. Mr. Knight was originally associated with Mr. Long in the editorial duties, but soon wisely gave up the management of the literary department.