explanation of the similar rise of prices now going on in this country. A more subtile but very important class of influences were brought to notice by another party, under the able leadership of Mr. Tooke. By these the rise of prices is, to a large degree, attributed to the excited spirit of speculation produced by the war, which, as they show, twice during this period brought the country to the brink of ruin. In favor of this explanation it may be further said that the fall of prices began immediately on the close of the war, and at no time was greater than in 1817, two years before the resumption of specie payment by the Bank. In 1819 the Bank of England resumed the payment of specie. Gold, which had been at one time at a premium of twenty-five per cent., now fell rapidly, and in 1821 was again at par. It is difficult to say which has exerted the largest influence on the finances of Great Britain--the Revolution of 1688, or the wars with France in the beginning of this century. The first gave to England its system of taxation, but the last developed the capabilities of that system, and adapted it to the wants of a growing and commercial people. The nation came out of its long conflict with taxes pressing upon nearly every important branch of industry. In the sixteen years that followed the war with France, taxes to the amount of nearly $200,000,000, were taken off from the country. These changes gave opportunities for many important reforms. While the national debt was slowly reduced, the tax system underwent great changes. Many taxes which had checked the growth of important branches of business were entirely removed. Efforts were made to reduce the excise, which was always an unpopular form of taxation. In carrying forward these changes, it was found that one really productive tax might be made to take the place of a large number of small duties which pressed with peculiar severity upon the people. Government now turned longingly to that 'splendid source of revenue,' as it was aptly called, which it had so reluctantly relinquished in 1816. In 1842, Sir Robert Peel suddenly brought forward a plan for a new tax upon incomes. It was at once adopted. This income tax differed, however, in many important particulars, from the one which the Government had been compelled to make use of in the wars with France. By it incomes under $750 were exempt. A discrimination of very great importance was also made, which has been the occasion since for much refined discussion, and is founded in sound reason, but which has hitherto been wholly overlooked in the legislation in this country. A discrimination was made between salaries and the incomes divided from realized capital. Taxable incomes, partaking of the nature of a salary, and upon which a tax would have the character of a duty on capital, were required by the provisions of this new act to pay only one half as much as those incomes which arose from, and would be therefore added to, wealth already