The claims of the churches on the treasury (1838) soon threatened the
government with serious difficulties. It was resolved to increase the
revenue by prohibiting colonial distillation. This trade had been often
interrupted by the ordinances of the governors, but when the crown
ceased to purchase wheat at a high fixed price it was deemed unfair to
the farmer to restrict the local market for his produce. Duties were
imposed, but they discriminated between sugar and cereals, and between
colonial and imported grain. This distinction offered ample opportunity
for evasion. The distillers employed these various articles at their own
pleasure, and paid the lowest duty. Colonial spirits were sold as
foreign; and the permits of the police-office covered the transit of
quantities greater than they specified. From L5,000 to L7,000 were
annually lost. The bill introduced to extinguish the trade was resisted
by Mr. W. E. Lawrence and other leaders of the country party. They
objected both to the suppression of a lawful trade and the injury
inflicted on those who had embarked their capital. The government
proposed to include in the bill a provision for the indemnity of the
distillers, leaving its amount to be settled by a committee. To this
Chief Justice Pedder strongly objected. The government was unwilling to
entrust to a jury the claims of the distillers, as proposed by the chief
justice; and, not wishing to delay the law, passed it without granting
any security beyond admitting the equity of compensation.
Public-domain text, read in full here on John Shaqi.
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