AbstractThis article argues that political considerations, economic theory, attitudes toward public finance, and concerns about regional development all influenced contemporary responses to the Galway packet-boat contract of 1859–64. Though historians have conventionally depicted the dispute over the contract as an episode in Victorian high politics, it maintains that the controversy surrounding the agreement between the Galway Company and the state cannot be understood solely in terms of party manoeuvre at Westminster. In the context of the Union between Britain and Ireland, the Galway contract raised important questions about the role of the British government in fostering Irish economic development through public expenditure. Politicians and opinion-makers adopted a variety of ideologically informed positions when addressing this issue, resulting in diverse approaches to state intervention, often across party lines. While political calculation and pressure from interest groups certainly affected policy, the substantive debate on the contract helped to shape the late Victorian Irish policy of both British parties by clarifying contemporary ideas about the economic functions appropriate to the Union state.
The Concept of Comprehensive Income in the Economic Theory of the State
