Erhntrn un ruthiiig inVoritaintut.

PRINCIPAL BUSINESS OP THE WEEK.

HOUSE OF LORDS. Monday, April 18. Maynooth ; Lord Winchilsea's Motion rejected by 110 to 53, and Lord Aberdeen's Amendment carried. Tuesday, April 19. Mr. Kirwan ; Lord Eglinton's Vindication. Thursday, April 21. North American Fisheries ; Question and Answer—Hull Election; Address for Commission agreed to. Friday, April 22. Canada Clergy Reserves Bill, read a second time.

Hoorn or COMMONS. Monday, April 18. The Budget ; Mr. Gladstone's Fi- nancial Statement—South Sea Annuities Commutation Bill, read a second time. Tuesday, April 19. Admiralty Patronage ; Sir Benjamin Hall's Motion for Com- mittee, and Mr. Stafford's Explanation— Maldon Election ; Address for Commission agreed to.

Wednesday, April 20. Judges Exclusion Bill, committed. Thursday, April 21. Customs Reform ; Mr. Wilson's Statement—South Sea Com- mutation Bill, committed pro forma—Pilotage Bill, committed pro forma—Hackney Carriages Bill, leave ,,oiven. Friday, April 22. Hackney Carriages Bill, read a first time—South Sea Commu- tation Bill, committed and amended.

TIME- TABLE.

The lords. The Commons.

Hoar of Hoar of Hour of Hour of Meeting. Adjournment, Meeting. Adjournment. Monday 511. . . Ilh 17m Monday 4h 111. Jim Tuesday 5h 713. 20o1 Tuesday 4h .(m) lb lira Wednesday .. ... No sitting. Wednesday Noon.,.. 5b 45m Thursday 52i . 6h 4510 Thursday 4h .(m) lh Om Friday 5h Ilk 30m Friday 4h .(es) 1211 15m Sittings this Week, 4; Ttme, 16k 52m - Sittings this Week, 5; Time, 3915 30ax — this Session, 59; — 106b 19m this Session, 75; — 453h 20m

THE BUDGET.

The House of Commons having resolved itself into a Committee of Ways and Means, on Monday, Mr. GLADSTONE made his financial statement. He entered on his subject almost without preface ; simply pointing out the greatly enhanced interest to the House, and anxiety to himself, from the increasing eagerness manifested with respect to financial questions ; showing that questions of taxation, long deferred through the distrac- tions of party conflict, had thrown an accumulated task on the present Government ; and making a special appeal to the indulgence of the Com- mittee.

With the lapse of time we obtain larger and still larger proof of the elas- ticity of the revenue and the progress of the productive and consuming power of the country. The revenue was estimated by Mr. Disraeli on the 30th April 1852 at 51,625,000!.; it amounted at the termination of the financial year to 53,089,000k,—an increase of 1,464,0001. over the estimate. Mr. Dis- raeli estimated his expenditure at 51,163,0001.; but the actual expenditure only reached to 50,782,0004—leaving a surplus of 2,460,000/. Mr. Disraeli had estimated his surplus for the present year at 1,600,000!.; but that has been swallowed up in various ways : by an increase on the Navy Estimates, including the packet service, 617,6031.; Army and Commissariat, 90,000!.; Ordnance, 616,0001.; the Militia Estimates were originally 300,0004 but the cost will most likely be 530,0001.; Education will also add 100,000!.; the augmentations of charge, already principally voted, amount to no less than 1,654,000/. Some saving has been made on a few items of public expenditure : on the packet contract service—" which has reached an amount wholly dis- proportionate to the benefit derived "-75,000/. will be saved ; on the charge for Exchequer Bills, 65,0001.; Crown revenues, occasional, 160,000/. • making altogether 310,000/. In round numbers, Mr. Gladstone estimated the expenditure at 52,183,0001., and the income at 52,990,0001.; giving a surplus of 870,000!.; but on account of some uncertain items it would be better to assume it at 700,0004 and it must be borne in mind that 215,000/. arose out of occasional payments. Such is the state of the account of the country at the present moment. Two interests had occupied a prominent position in the statement of his predecessor. Mr. Cardwell had already stated the benefit and.relief intended for the shipping interest, without inflicting an annual charge on the public. The West India interest had asked for reduction of the duty on colonial su- gar proportionate to the fall on foreign sugar, preserving the differential ratio ; and also for power to refine sugar in bond. Government could not grant the former concession; hazard to the revenue would not permit the latter ; and nothing remains to be done in the equalisation of spirits. Only gi4ligklAdvgetuvsed to Government of relieving the West Indies, by ma- blingthem to economise the heavy expenditure of their own governments. Jamaica, for instance has a public debt of 500.,0004 with an interest varying from 6 to 10 per cent': if Government could induce the island of Jamaica to amend its vicious constitution, so as to secure a stricter control over expendi- ture, he would be disposed to use the credit of this country to enable jamaica to borrow money on much easier terms.' Another isolated topic HOB the-Exchequer Loan Fund. After what passed in debate in December, Ministers had felt bound to make a full investiga- tion ; and the accounts had been printed. They showed that a net balance of not less than 227,000/. has been realized by the transactions of the Board ; and he anticipated the sum of 1,000,000/. as the result of its entire transactions. They did not therefore intend to abolish a system which had been alike honourable to those who administered it and highly beneficial to the country. He now came to the most difficult part of his task—the discussion of the Income-tax. The immense magnitude of the question is not to be measured by the simple fact that we draw 5,500,000/. a year from the Income-tax. " If you want to appreciate the Income-tax, you must go back to the time of its birth ; you must consider what it has done for you, and what it may do for you again, if it please God that such times shall return." Deeming itnf vital importance that the Committee should appreciate " this colossal engine of finance," he closely described the mode of meeting public expenditure be- fore the Income-tax was imposed in 1798, when it was only half in opera- tion, from that year to 1802., and when it was in full force from 1806 to 1815; and showed that the enormous accumulation of the debt need not have existed had there been a resolution to submit to the Income-tax at an earlier period. For the six years down to 1798, the annual excess of charge for government, war, and debt contracted before 1793, was 15,404,000!.; the annual charge being 36,030,0001., with a revenue of 20,626,000/. : for the four years from 1799 to 1802, the charge was 47,413,0001. ; the re- venue 33,724,000/., and the annual excess 13,689,000/. : but from 1806 to 1815 the annual excess was only 2,004,0004 although the charge had increased to 65,794,000/.the revenue amounting' to 65,790,0001. Out of the charge, about 9,500,0001. was for charge of debt contracted before 1793: so that, with the Income-tax in full force, we raised during that period 7,000,0001. more than the charge of government and war. That was a most remarkable fact. "It affords to me the proof," continued Mr. Glad- stone, "that if you do not destroy the efficacy of this engine—I do not raise now the question whether it is to be temporary or permanent, which I hold to be quite a different question, and I will go into that by and by—it affords you the means, should unhappily hostilities again break out, of at once rais- ing your army to 300,000, and your fleet to 1001,000, with all your establish- ments in proportion. And, much as may be said of the importance—in which I concur—of an army reserve and navy reserve and of having your dockyards and your arsenals well stored, I say this &Cal reserve is no less important; for, if it be used aright, it is an engine to which you may resort, and with which, judiciously employed, if unhappily necessity arise—which may God in his mercy avert I—with it judiciously employed you may again, if need be, defy the world. (Loud cries of "Hear, hear ! ") This, then is the purpose which the Income-tax has served—that in a time of vital struggle it enabled you to raise the income of the country above its expendi- ture of war and civil government; and that service so performed was per- formed at a time when men do not minutely inquire into the incidence of taxation • they do not then indulge themselves in the adjustment of details, but are afraid lest they should lose the mass and the substance. But times when the hand of violence is let loose and when whole plains are besmeared with carnage are the times when it is desirable that you should have the power of resort to this mighty engine, to make it again available for the defence and the salvation of the country. Well, Sir, the Income-tax dropped along..with the purpose of the Income-tax, in 1816. But it was destined to be revived. Sir Robert Peel, in 1842, called forth from repose this giant, who had once shielded us in war, to come and assist our industrious toils in peace ; and, if'

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the first Income-tax produced enduring and memorable results, so I am free to say, at less expenditure by far in money and without those painful ac- companiments of havoc war, and bloodshed, so has the second Income-tax. The second Income-tax has been the instrument by which you have intro- duced, and by which I hope ere long you may perfect, the reform—the ef- fective reform of your commercial and fiscal system ; and I, for one, am bold enough to hope and to expect, that in reforming your own fiscal and commercial system you have laid the foundations of similar reforms—slow, perhaps, but cartel in their progress—through every country of the civilized world. I say, therefore, Sir, that if we rightly use the Income-tax, when we part with it we may look back upon it with some satisfaction, and may console ourselves for the annoyance it may have entailed by the recollection that it has been the means of achieving a great good, immediately to Eng- land, and ultimately to mankind." (Cheers.) But he must attempt a closer analysis of the tax, and the objections to it ; of which he did not make light. In his own opinion, it is not well adapted for a permanent portion of our financial system ; and all are agreed that it is not so adapted unless, by reconstruction its inegualities could be removed. But the reconstruction would open up social questions of the most serious im- port; and the machinery, involving the objectionable principle of self-assess- ment, leading to grievous frauds and immorality,. could never be made satis- factory to the country. What was the composition of this tax,—or rather this code or system of taxation, in bulk a volume, elaborated in successive years, combining a large mass of precedents, and raising 5,500,0001. ? To answer this question, Mr. Gladstone went into a calculation, showing that land, houses, and trades pay 4,200,000/. or 21-281hs of the tax ; while the funds pay 750,000/. or 1-7th, and salaries 1-17th. Professions, after striking out those which partake rather of the character of trades, pay 250,0001., or about 1-22d of the tax. Thus, three-fourths are paid by land houses, and trades and one-fourth by funds, salaries, and professions. The main ques- tion des between land and trade ; and on the justice of the relations between them mainly depends the solution of the question whether this is a just tax or not : wherefore his object was to show the amount of tax really paid by land. Land pays 7d. in the pound without any deduction in respect of the dif- ference between the gross and net income. About 80,000,0004 the gross income of land and houses, pays the tax. At 7d. in the pound, this gives 2,333,000/. Suppose we were about to reconstruct the tax, what deductions ought we in justice to allow ? We must deduct for repairs, law-charges arrears and abatement of rent, and coat of management, to the extent of 16 per cent : this reduces the 80,000,0001. to 67,200,0001., and this reduced amount of actual receipts pays a tax of 2,333,000/. The interest of mort- gages and the money paid under settlements he estimated at one-fourth of the gross income ; and deducting that from 67,200,0001., there remains 47,200,0001.; but as the eneumbrancers also pay Income-tax, their quota, or 583,0004 must be deducted from 2,333,0001. leaving 1,750,0001. paid on a net income of 47,200,000!.; which is 9d. in the pound, instead of 7d. (Cheers from the Opposition.) Suppose the tax reconstructed, ought the dif- ference to be greater than exists at this moment? In December Mr. Dis- raeli proposed that income from realized property should pay 7d., and pre- carious income 5Id, in the pound. If any one would compare Mr. Gladstone's figures with that proposal, it would be found that the present rates are equi- valent to 7d. and 5td. within a small fraction of a farthing. If the Income- tax is broken up, it must be for some object : if that object is to relieve trade at the expense of houses and land, it is well that those who are about to sanction that purpose should consider where they are to begin fixing the proportionate payments, and where they are to end. Going deeper into the consideration of the question, he showed the absurdity of attempt- ing to establish class averages ; and instanced the case of annuities and of trades, which ranged in value between three years' and twenty- five years' purchase. How could they be averaged, in either case ? Be had shown that land pays 7d. in the pound according to a standard of value which does not depend on the will or testimony of its owner. Trade, on the other hand, pays 7d. in the pound assessed by each trader on himself. He stated an extreme case of fraud in self-assessment to show that trade is not dealt with very stringently ; such frauds being inseparable from the character of the impost, human nature remaining as it is. He left that part of the Question with this proposition, that as regards the case between land and trade, reserving other cases for separate consideration, there is no suffi- cient ground to attempt the reconstruction of the Income-tax. Mr. Glad- stone passed to the consideration of three other cases,—first, salaried ser- vants of the public ; second, servants of corporations, whose salaries he re- garded as life incomes; and next the funds paying Income-tax. Here he threw out a "bold challenge" ; putting it to the Committee whether sche- dule C, " even if it stood alone, is not rather a reason why they should not break up the Income-tax, than why they should do so." To show what is

i thought n other countries, he read an official letter from Mr. Everett, in re- ply to a question, stating that in America the Federal Government was not constitutionally precluded from taxing funded property, but the States were, "as this would be an act impairing the obligation of a contract, which is expressly forbidden by the- Federal constitution." We must put some rational construction on those words in the Loan Acts which provide that the public+ dividends shall be paid free of all taxes and charges whatsoever ; and he thought that Mr. Pites construction—that dividends should simply be considered as so much income—the safest and wisest. It has been proposed to levy the tax upon something like the capitalized value of the income. When Mr. Pitt proposed the Income-tax, he declined to do anything with capitalized value or price, and looked only to income. The average capitalized value for the fundholdees income, during the seven- teen years of the old Income-tax, was only sixteen years' purchase—half what it is now ; so that if you admit the new doctrine, you taxed the fund- holder double at that time, and inflicted upon him the grossest injury in time of war.

There are persons who would place industrious incomes on one side and lazy incomes on the other ; and much may be said in favour of that doc- trine, but, he did not believe there is any perfectly lazy income except that of the fundholder. "If that were so, the fundholder would enjoy an entire preeminence in taxation, and the degree of that preeminence it would rest with you to fix. I honour the sense of justice of the honourable Mem- ber for Montrose; and so I honour the sense of justice of those gentlemen— the actuaries—who have recommended the fundamental reconstruction of this tax, and who do look at the durability of incomes. If they had made their proposals in 1798, I do not know that the fundholders would have had much reason to complain ; but, on the contrary, I believe that, upon the whole, they would have been gainers. I think, however, that the proposal of the actuaries is unsound in principle. I conceive that it is unsound in principle to levy the income of the country in substance by a tax upon its property ; for I think that income is the proper basis of taxation. I do not mean, however' to hold that as an extreme doctrine; but, if we have a pro- perty-tax at all, lot us have in substitution for the income-tax a good and honest property-tax, such as the actuaries propose. Unfortunately, the ac- tuaries have the plan which they recommend entirely to themselves' for no one has ever been found to propose it in this House. In fact, nobody will propose that plan; for every one knows it is but a mathematical speculation upon paper, not a project to be submitted to an assembly of men whose bounden duty it Is to provide by practi- cable means for the constantly recurring wants and services of the country. The project of the actuaries I pass by because, while it is of all others the most self-consistent, it is also, I will not say the most difficult, but it is placed the furthest beyond the reach even of imagination as a possible mea- sure."

In old times there was a general belief in hobgoblins; and now there is an analogous conception of an awful being milled "the fundholder," rolling in wealth and living in worthless indolence. Is this monster fact or fic- tion? As far as he could learn, a great change from sole to joint accounts had taken place in the holding of funds. About fifteen years ago, more than a half of the stocks were held in sole accounts ; but at present the whole amount so held amounts to 280,000,0001.; out of which, 60,000,000/. repre- sents the income of persons whose incomes are under 150/. a year. There is therefore a sum of 220,000,000/. held by persons who may be considered as holding perpetuities in the funds anewhom the reformers of the In- come-tax would exempt from that duc. Now the amount held in joint ac- counts in February 1852 was 427,000,000/. But these joint amounts include charities, the great account for savings-banks, the Chancery and Bankruptcy accounts ; and on these monies he thought the House would not lay an ex- ceptional tax ; large sums held by banking and other firms on account of foreigners, a large class having life interests less than perpetuity, and trad- ing companies and associations holding funded property. "Now are you to lay an exceptional tax upon the capital of persons so engaged in trade ? I should say that it is very much better to leave English trade where it is, paying 7d. in the pound, in the place of the 9d. paid by land and houses, and with the power of investing money in the funds when it is convenient for purposes of banking, or for other trades, without the fear of exceptional taxation, than to break up the whole system, and ensconce the trader in schedule C, that you may reimburse him by exceptions in schedule D. Now, the strongest case urged for the reconstruction of the tax is the case of sche- dule C: but in schedule C, against 220,000,000/. held by persons in their own right, you have 430,000,000/. not held by persons in their own right as mere individual property ; and when you have established your exceptional tax against the funds, your very next step must be to exempt the whole of this 430,000,000/." Briefly touching on schedule D, as respects professions, he found that, in- cluding certain amphibious half-trading classes, the proportion of the whole payment by professional persons is about 300,000/. ; but, taking out the mixed eases, the professions pay 250,000/., or 1-22d of the whole Income- tax. He would not at all deny that the case of professional men appeals to the sympathies ; and that is one of the reasons which indicate that the tax ought to be temporary. "But I hope the Committee will pause before it rushes to the conclusion that on account of the case of the professional men they will proceed to such a labour. I will not call it an Herculean labour, because an Herculean labour means a labour that Hercules could accomplish, and this I am persuaded he could not—but to such a labour as that of break- ing up and reconstructing the Income-tax." Mr. Gladstone described how difficult it would be to exempt professional men without exempting so many others—including land-agents and auctioneers—who nestle within the pro- fessions. Then as to the clergy, it would be extremely offensive to recon- struct the Income-tax on behalf of professional men and vet make the clergy- man with 150/. or 200/. a year pay the higher rate. But if he were let in, it was not certain the same favour would be extended to the Dean and the Bishop. Persona holding salaried offices, not public servants, and a large class of retail traders, have a much worse tenure than professional men. But the Committee will have the greatest difficulty when they come, in the midst of their breaking up of the Income-tax, to consider the case of the life-an- nuitants—the desolate widow, the orphaned daughter, the defenceless wo- man, whose right it is to expect justice, tenderness, protection. Would they lay the higher tax on these, in order that they might put the lower tax on bankers, brewers, physicians, and lawyers ? After having vindicated the Government from any shirking of the ques- tion, which he said had been turned over with an earnest desire to consult public feeling, Mr. Gladstone examined the case of the terminable annui- tants, and asked, if an exemption were made in their favour, why not in the case of persons with life interests in the funds, and life interests in lease- holds, liferenters and successors to entailed estates ? There are distinctions between each of those ; but when they come to be treated on broad grounds, applied..eis not one of them to whom the arguments for exemption may not be

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The tendency of all these exemptions, however, is the breaking up and destruction of the tax. I do not say the relinquishment,' because relin- quishment is one thing and breaking up is another. Relinquish it for a time, and when emergencies arrive you may do as your fathers did—take down the weapon from the shelf and make it serve you again for the ends of duty. To relinquish it is altogether safe, because it is altogether honourable. But to break it up is to encourage the House of Commons to venture upon schemes which may look well on paper, and may serve the purpose of the moment, but which will end in the destruction of the tax by the absurdities and ini- quities which they i involve. Sir, if that to be done, it must be by those whose consciences enable them to take a different view of the character and destiny of this great country. It will not be done by men who believe that, although you may enter upon that fatal and se- ductive path, it will lead you into quagmires, will throw the whole finances of the empire into confusion, and will deprive you of that ready and effective resort to which hitherto you have been able in all times to look as a course open to you in circumstances of difficulty and trouble. Sir, the general views of her Majesty's Government with respect to the Income-lax are, that it is an engine of gigantic power for great national purposes ; but at the same time that there are circumstances attending its operation which make it difficult, perhaps impossible, in our opinion not desirable, to maintain it as a portion of the permanent and ordinary finances of the country. (Cheers.) The public feeling of its inequality is a fact most important in itself; the inquisition it entails is a most serious disad- vantage; and the frauds to which it leads are evils which it is not possible to characterize in terms too strong. One thing I hope this House will never do, and that is nibble with great public questions. Don't let them adopt the plan of reconstructing the Income-tax today and aaying, 'If that does not work well, we'll try our hands at it again tomorrow.' That is not the way in which the relations of classes are to be treated. Depend upon it, when you come to close quarters with this subject, when you come to measure and see the respective relations of intelligence and labour and property, and when you come to represent those relations in arithmetical results, you are undertaking an operation which I should say it was beyond the power of man to conduct with satisfaction, but which, at any rate, is an operation to which you ought not constantly to recur ; for if, as my noble friend once said very properly, this country could not bear a revolution once a year, I will venture to say that it could not bear a reconstruction of the Income-tax once a year. Whatever you do in regard to the Income-tax, you must be bold, you must be intelligible, you must be decisive. You must not palter with it. If you do, I have striven at least to point out as well as my feeble powers will permit, the almost desecration I would say, *certainly the gross breach of duty to your country, of which you will be guilty, in thus jeopardizing one of the most valuable among all its material resources. I believe it to be of vital importance, whether you keep this tax or whether you part with it, that you should either keep it or leave it in a state in which it would be fit for service on an emergency ; and that it will be impossible to do if you break up the basis of your Income-tax." On what principle, then, did the Government mean to proceed ? First, to put an end to the uncertainty with respect to the tax ; next, to lay the ground for enabling Parliament to part with the tax at a given period, if it shall think fit. (Cheers.) Meanwhile, he proposed some modes of miti- gating the inequalities. It is proposed to extend the principle of commuta- tions to professions. "There is a general feeling that a man ought to have, at any rate, the opportunity of investing the savings he may_make from his income without being liable to the Income-tax upon them. We do not think it possible to make provisions of that kind applicable to savings simply as such. All we can do is to say, 'If you choose to invest your savings in the form of a deferred annuity or life-assurance, tho premium which you may pay upon that deferred annuity or life-assurance up to one- seventh of your income shall not be chargeable to your Income-tax, but may be deducted from your Income-tax before it is charged.'" "I think it will be necessary to propose that Government itself should be- come assurers of life. If it is to undertake that charge, as will probably be the case, it will assure on the same principles as those on which it is a vendor of life annuities." What the Government understand to be the sen- timent of the country, and what they are disposed to share in, is that the Income-tax bears too hard upon intelligence and skill as compared with pro- perty. The effect of taxation, however, on single classes, must not be judged by the operation of one single tax, but by that of the whole. We propose to reenact the Income-tax for two years, from April 1853 to April 1855, at the rate of 7d. in the pound. From April 1855, to enact it for two more years at 6d. in the pound—(Slight murmurs)—and then, for three more years—(Laughter and murmurs from the Opposition-benches, which prevented the conclusion of the sentence)—I don't wonder at the laughter—for three more years, from April 1857, at 5d. Under this pro- posal the Income-tax will expire on the 5fis April 1860." Ministers thought it better to place before Parliament a real substantive plan and to place it in a condition to part with the tax in 1860, than come with some paltry proposal to shirk the difficulty by reenacting the tax for two years. But while it is proposed to renew the tax, it is also proposed to associate its continuance with great and beneficial remission of taxation. But as that cannot be done out of a surplus of 800,0001., other means must be had. They propose to extend the tax to incomes below 1501.; to tax all incomes between 1001. and 150/. at the rate of 5d. in the pound. The class of persons represented by that range of incomes have largely benefited by the remission of twelve millions of taxes. Mr. Gladstone cited some cases sup- plied by Mr. Baines, President of the Poor-law Board, as to the saving ef- fected in families in consequence of the adoption of the Income-tax and the concurrent measures : it appeared that in six cases of incomes varying from 175/. to 400/. with gross incomes of 1359/., their gross savings were 63/. Is. 3d. ; which even with the tax deducted, amounted to 22/. 16s. 61d., or nearly 2 per cent on their incomes. Of four cases of actual expenditure of persons between 100/. and 150L, with a total income of 4751., the gain has been 291. 6s. 11d. Deducting Income-tax at the rate of 5d. in the pound, the savings would amount to 19/. 9s., or more than 1 per cant; clearly allow- ing that the latter class have apparently profited by recent legislation more than the former. It is therefore proposed, he thought with justice, to tax incomes between 1001. and 1501. at the rate of 6d. for the whole time during which the tax is levied.

He now came to the exemption of Ireland. Ireland has received the be- nefit of the Income-tax, through the changes in our system, without her giving the intended equivalent, which was to have been a spirit-duty of 18. a gallon and an augmentation of stamp-duties. If Ireland has special bur- dens, let them be specially considered ; but as she has benefited by the re- mission of taxes, he would extend the Income-tax to Ireland. tar. Glad- stone estimated that this would yield 460,000/. a year, of which only one half would stand to the credit of 1853-54. The estimated produce of the whole tax for 1853-54, including one-half for Ireland, and 125,000/. for the extension, and deducting one-half of 120,0001. for life assurances, would be 5,845,000/. Another means of equalizing the burdens which are said to press too heavily upon intelligence and skill as compared with property- of equalizing them in a manner that would be safe, honourable, and efficacious-would be the settlement of the Legacy-duty. (Loud cheers.) Denying that it is an odious class question, but admitting that the present arrangement is not just, he proposed to extend the duty to all successions whatever; retaining the present scale of consanguinity except as regards sons-in-law and daughters-in-law, whom he proposed to place on the footing of blood relations. But all descriptions of property ought not to pay the same rate. There is a great mass of taxation which attaches to what may be called "rateable property," including along with real property, leasehold, eopyhold, and so forth, subject to taxation by land-tax, income-tax, and in a less degree, by extra charges on the transfer of property, and a great weight of local taxation. This property is subject in both ways to legacy and probate duties and all the burdens incident to real property; and Go- vernment proposes to give to this property whatever special exemption or partial advantage shall be given to real property. The person who succeeds to personal property will pay according to his interest, abolishing the effect of settlement ; if he succeed to capital, he will pay on capital; and if to a less interest, he will pay on the value of that interest. The duty will be leviable in eight half-yearly instalments ; and the new duty will not be charged upon any succession anterior to the period when the Committee shall adopt the resolution. Mr. Gladstone reckoned on not more than 500,000/. for 1853-54 from this source ; but by the year 1856-7, he reckoned it would add 2,000,000/. per annum to the permanent revenue of the country. (Cheers.) "And I must remind the Committee, this will leave wholly un- touched the intelligence and skill of the country ; giving more than the re- lief aimed at by the reconstruction of the Income-tax, without the danger attending that reconstruction." (Cheers.) He did not propose to deal with the Probate-duty, because he had not the means at present.

The next subject was the Spirit-duties. Ile proposed to add to the duty on Scotch spirits ls. per gallon; on Irish spirits, 8d.; and to allow a drawback for waste upon spirits in bond; and in announcing that concession, he congratulated Lord Naas upon having achieved a triumph which would relieve the distiller and likewise the time of the House.

He proposed an increase on the licences of brewers, dealers in tea and coffee, tobacco, and soap,-amounting in all to 113,0001. Here he could not proceed further without stating the nature of their in- tentions with regard to Ireland. Having proposed to make the Income-tax payable in Ireland, and having proposed an additional duty on spirits, he re- commended a measure "which will advance us one great step towards an equalization of taxation between the three countries." The great necessities of a portion of Ireland should be considered, the famine, and the feelings of England to Ireland and Ireland to England ; and whatever should make the debt of 4,500,0001., the capital of the Consolidated Annuities, less of a national debtor and creditor account. Parliament would not consider it a mere question of money. Government had therefore determined to make a large proposition,-namely, that 'from and after the 29th of last Septem- ber, the Consolidated Annuities, shall be wholly swept away." (Cheers from the Irish Members.) Those annuities did amount to 4,500,0001., and are still upwards of 4,000,0001., and an annual charge of 250,0001. The taxation proposed would be in the first two years higher than that removed ; but when Parliament had parted with the Income-tax, Ireland would enjoy a much larger remission of consolidated annuity than additional burden in the shape of spirit duty. "And now," said Mr. Gladstone, "that I have done with that most offensive part of my task the imposition of taxes, I feel as it is said men are wont to feel, and as some of us have felt, when they have come an up-hill journey to the top of the Alps ; now I have got to the downward road, and the plains of Italy are before me." He now came to the remission of taxation. First, he proposed the entire abolition of the duty on soap, involving a net loss of 1,111,000/. revenue ; the duty to be remitted from the 5th of July, giving a credit to this year of 340,0001., and a net loss of 771,000/. Next be would reduce what "is called a tax on prudence "-the tax on life-assurance from 2s. 6d. to 6d. : relief, 29,000/. He proposed an entire change in receipt-stamps, which would be reduced to a uniform rate-a "penny head" as the stamp. He proposed to reduce the duty on indentures of apprenticeship from 20s. to 2s. 6d. Next came the ease of the attornies : he proposed to reduce the charge for annual certificates from 12/. to Si. for Metropolitan solicitors, and from 9/. to 61. for country solicitors ; and to reduce the charge for articles of apprenticeship from 1201. to 80/. With regard to newspaper-advertisements, he trusted the Committee would not consider it disrespectful to the majority who voted against him last week that their view had not been adopted : the plan he was about to propose had already been adopted by Ministers at the time of the debate on Thursday last. But it might be said, "Why did you not say so ?"-Because Government felt, that if the Executive is to discharge the function of the initiative in respect to finance with advantage to the country, " it is absolutely necessary that the strictest silence should be ob- served-not in contempt of pressure, yet notwithstanding pressure, till the time arrive when the views of the Government shall be disclosed." He lire- posed to reduce the advertisement-duty from Is. 6d. to 6d.; and to repeal the ld. and Id. stamps on supplements used for advertisements, which by oper- ating as a check on the multiplication of advertisements would counteract the reduction he proposed. Continuing his statement of reductions, he proposed to reduce the duty on hackney carriages from 18. 5d. to Is. contingent on a bill to be introduced by Mr. Fitzroy.

Then came a proposal for a reform of the Assessed Taxes,-involving the abolition of progressive duties, compositions, and nearly of exemptions; with a substitution of rates and taxes, few, simple, and as nearly as possible uni- form. He proposed a uniform rate of 1/. ls. on servants above eighteen years of age, and 108. 6d. on servants under that age, instead of the present rates running up from a minimum of 1/. 118. 6d. through a great variety of rates. Upon private carriages, instead of such charges of 6/. 12s., 41. 15s. 6d., and 3/. 118. 6d., to charge 3/. 10s., 21., and 158. The duty on carriages let for hire, such as post-chaises, will remain at 31.; but the particulars relating to this subject will be more explicitly stated in the resolutions. The duty on horses, beginning at 1/. 1 ls. 7d.1 runs up to a great variety of rates. He proposed that trade-horses shall remain as now ; that the duty on ponies shall be 108. 6d., and on other horses 21s. Agricultural horses to remain exempt. There are two rates of charge at present on dogs-a duty of 14s. and one of 8s. ; and these it proposed to unite at a sum of 128. With regard to post-horses, it is proposed to adopt the plan of the postmasters, and to levy the bulk of the tax in the form of licences. " Another change under the head of Assessed Taxes is proposed with the view of giving greater facilities for the redemp- tion of the land-tax. The present provision of the law for the redemp- tion of the land-tax is very stringent, and its operation is exceedingly limited. You may redeem a tax of 11. levied on the land, by transferring to the Com- missioners for the Reduction of the National Debt 228. a year in the funds ; but these are extremely unfavourable terms ; and, instead of recovering 10 per cent more than the amount of the tax, we propose to reduce it by 17i per cent, to take 7i per cent leas than the same amount of stock in land. The Committee should be aware that any change made with relation to these matters cannot come into operation during the present year ; and if at a future period of the session we should ask the House to pass an act called the Assessed Tax Act, we shall then fix the date for 5th Ootober 1853, and not for 5th Aprit 1853.' The next subject which came under review was wine ; but on this he could propose no change at present. Then came tea. It would be idle to discuss the reasons for reducing the duty. He agreed with Mr. Disraeli that it would be unwise to make the reduction to Is. at a single leap : he proposed to re- duce the duty at once from 2s. nd. to ls. 10d., and then to proceed more rapidly than was proposed by Mr. Disraeli. " We shall take the duty from the date when the House, if it coincides with us in opinion, shall adopt the resolutions. To the 5th of April 1854, it will be Is. 10d. ; to the 5th of April 18.54-5, it will be Is. 6d. ; to April 1855-56, 18. 3d. ; and from April 1856 it will be one shilling. (Cheers.) The whole time occupied in effecting the descent from 2s. 21d. to ls. will be less than three years." He proposed something like a new revision of the tariff, and to apply the following ge- neral rules. "First, to abolish altogether the duties which are unproductive, except in cases where there may be some special reason on account of their relation to other articles ; and in the next place, to abolish, as far as con- siderations of revenue will permit, duties on articles of manufaoture except such as are in the last stage, and commonly connected with hand-labour, in regard to which eases we have thought it more prudent and proper to pro- ceed in the mode not of abolition but of reduction' and in these cases ws have endeavoured to fix the duties in such a way that they should not reach, as to any class of goods, higher than 10 per cent on their value. As I have referred to 10 per cent, I may state that we have not thought it right to pro- pose a reduction in the silk-duties, which are 15 per cent. The question of the silk-duties is mainly a question of revenue ; and in regard to it we do not think it an article that has the strongest claims upon our consideration ; for, in so far as it is an article into the manufacture of which protection enters, the protection has mainly reference to certain classes of operatives, with respect to whom it would be the disposition of Parliament to proceed carefully and cautiously. We desire further, whenever it can be done, to take the mode of substituting rated duties for duties ad valorem, and to get rid in every case, except in a few instances where it is important on account of revenue, of the 5 per cent customs-duties made in 1840, which, besides iaising duties, greatly complicate the transactions of busi- ness. We propose, in many instances, where there are at present dif- ferential duties in favour of British possessions, to sink those differen- tial duties altogether, by lowering the foreign article to the level of the colonial; but where we are not able to lower the foreign article to the level of the colonial, we have not thought it would be considerate in any case to raise the duty on the colonial article. Lastly, we have been desirous to lower the duties that press on foreign articles of food which enter largely, if not into the necessaries of life, at any rate into the solace and comfort of ihe people. Now, the application of those rules is this-First, as to articles of food, we propose to lower the duty on a number of articles, of which the principal are as follows : apples, from 2s. a bushel to 3d. ; cheese, from 58. to 2s. 6d. per cwt. cocoa, from 2d. to per pound ; nuts, from 28. to Is. per bushel ; eggs, from 10d. to 4d. per 120; oranges and lemons, to 8d. per bushel; butter, from 108. to 58. per cwt. ; raisins, from 158. 9d. to 10s. per cwt. The produce of these articles to the revenue at the present moment is 571,0001.; the immediate relief given by the reduction on the same quan- tities would be 262,0001., but, with the allowance which we think may be made for an immediate increase of consumption, the probable net loss will be 185,0001. Besides these articles of food, which arc 13 in number, including tea, there are 123 articles which we propose to set altogether free from duty, involving a loss of 53,000/., and 133 more articles which we propose to reduce, involving a gross loss of 70,000L, but which with increased consumption may be taken at 52,000/. The effect of this will be to create a simplification of the present system : but at the same time I must draw attention to the fact that the changes of ad valorem duties into rated duties will call for greater specification ; and the resolutions I shall lay on the table will enable the House, when they come to the consideration of them, to assist the Government in determining whether in any of the cases I have stated it will not be better to adhere to the ad valorem duty. All I now say is, that if the proposal does not wear the appearance of simplicity that may be desired, it is because the change tends to multiply specification. The effect of these various changes in the customs-duties, as applicable to the year 1853-54, will be to produce a gross loss of 1,338,0001., but a loss which, we trust, will again be reduced by in- crease of consumption to 658,0001. The remission of taxes we propose as applicable to 1853-54 will cause a gross loss in the excise of 786,0001. or a net loss of 771,0001. ; in stamps, a gross loss of 417,000/., or a net foss of 200,0001. • in post-horses, 27,0001. ; in customs, altogether, the gross amount of 1,338,000/., or a net loss of 658,000!.: thus showing a remission of tax- ation for the present year of 2,568,000!.; and a loss incurred by the revenue, after allowing for the degree in which the remission will be placed by in- creased consumption, of 1,656,0000 (Cheers.)

The state of the account for 1853-54 stands thus-Surplus in hand, 805,0001.; new taxes, 1,344,000!.; loss from taxes remitted, 1,656,0001.; sur- plus 493,0001.

dr. Gladstone then showed that Government are not paltering about the Income-tax, but that when they propose to place the Parliament in a condi- tion to remove it at a future day, they make that proposal on a basis of safe calculations. But first he presented the balance-sheet for 1854-55: addi- tional charge, 1,087,0001., additional income, 1,307,0001. • giving a clear profit which will justify the remissions of indirect taxation-the entire amount of which would be 5,384,0001. But as former remissions had recovered themselves, he assumed that what had happened before would happen again; and he thought that when the time for the expiration of the Income- tax arrived these taxes would be found in amount very nearly what they are now. The amount of the Income-tax with the additions will be 6,140,0001. • towards this, increased permanent sources of income would give 2,549,0001.; then the reductions in charge on the Three-and-a-quar- ter per Cents would bring in 624,000!.; and, assuming the annual reduction of the charge of the Debt (80,0001. for the last eleven years) would continue, that would give 640,000/. in 1861. These items added together give a total of 3,813,000/.; the falling-in of the Long Annuities in 1860 will operate a relief of 2,146,000!.; and the two totals would give an amount of no less than 5,959,000/. against 6,140,0001., the total amount of the Income-tax in 1860, available at the expiration of that period, should the plan of the Government be adopted. (Cheers.)

"Thus, if the Committee has followed me, they will understand that we stand on the principle that the Income-tax ought to be marked as a tem-

porary measure; that the public feeling that relief should be given to intel- ligence and skill as compared with property ought to be met, and may be met; that the Income-tax in its operation ought to be mitigated by every rational means compatible with its integrity ; and, above all, that it should be associated in the last term of its existence, as it was in its first, with those remissions of indirect taxation which have so greatly redounded to the profit of this country, and have set so admirable an example—an example that has already in some quarters proved contagious—to the other nations of the earth. These are the principles on which we stand, and the figures. I have shown you that if you grant us the taxes which we ask, the moderate amount of 2,500,0001. in the whole, a much less sum than that for the present year you, or the Parliament which may be in existence in 1860, will be in a con- dition, if you so think fit, to part with the Income-tax. I am almost afraid to look at the clock—shamefully reminding me as it must, how long I have trespassed on the time of the House. (Cheers.; All lean say in apology is, that I have endeavoured to keep closely to the topics which Iliad before me " • — hnmensum spathe confecimus vaquor,

Et jam tempus equum fumantia solvere colla.'

These are the proposals of the Government. They may be approved, or they may be condemned ; but I have this full confidence, that it will be ad- mitted that we have not sought to evade the difficulties of the position ; that we have not concealed those difficulties either from ourselves or from others; that we have not attempted to counteract them by narrow or flimsy expe- dients; that we have prepared plans which, if you will adopt them, will go some way to close up many vexed financial questions, which, if not now settled, may be attended with public inconvenience, and even with public dan- ger, in future years and under less favourable circumstances; that we have endeavoured, in the plans we have now submitted to you to make the path

of our successors in future years not more arduous, but easy : and I may be permitted to add, that while we have sought to do justice by the changes we propose in taxation to intelligence and skill as compared with property—while we have sought to do justice to the great labour community of England by furthering their relief from indirect taxation, we have not been guided by any desire to put one class against another; we have felt we should best maintain our own honour, that we should best meet the views of Parliament, and best promote the interests of the country, by declining to draw any invidious distinction between class and class—by adopting it to ourselves as a sacred aim to diffuse and distribute the burdens if we must, and the benefits if we can, with equal and impartial hand: and we have the consolation of believing, that by proposals such as these we contribute as far as in us lies not only to develop the material resources of the country, but to knit the various parts of this great nation yet more closely than ever to that throne and to those institutions under which it is our happiness to live." Mr. Gladstone, who had kept the House in a state of interested attention for five hours, now sat down, saluted with a burst of enthusiastic and protracted cheering.

In reply to Mr. DISRAELI, Mr. GLADSTONE said that he would lay the resolutions on the table and take the discussion on Monday the 25th; first Income-tax, then Legacy-duty, then Spirit-duties.

Some interrogative conversation followed,—including a lament from Mr. Hymn that his Property-tax scheme, which would yield nine or ten

• millions a year, was not adopted by the Government : but nothing occurred of any substantial import.

Cusroms REGULATIONS.

Whser presented pipers relating to the recommendations con- tained in the Report of the Select Committee on the Regulations of the Customs Department, and announced the intentions of the Government. By way of preface, he recapitulated that Mr. Gladstone had promised to a deputation which recently waited upon him, that a bill should be pre- sented this session : that bill would take a considerable time to prepare ; but Government has carefully drawn up a Treasury minute containing all the essential points. In his statement Mr. Wilson took the divisions of the Report seriatim.

First, the constitution of the Board of Customs. Government do not in- tend to deal with that on the present occasion ; but before long a second minute would settle that question, and vacancies in the Board would not be filled up. • The next topic was "the appointment and promotion of Customs-officers." Reformed service in that department would depend for success on the officers; and in order to secure good officers, their position ought to be made as enticing and advantageous as possible. But out of 10,800 officers, 2720 weighers, lockers, and tide-waiters are excluded, whatever their merit, from promotion, beyond a certain limit, on the ground that the different departments require a different description of ability : but the Customs authorities admit that men who have become superintending lockers have acquired much in- formation; and it is proposed that, after three years' standing, these men should be entitled to claim an examination from their superior officer ; and if they pass that, their names should be enrolled for promotion to the higher ranks. Government are prepared to give the Customs Commissioners the right to nominate to the Treasury the most meritorious officers as landing- waiters in respect to one in every five of the appointments made. This he hoped would secure a better class of servants, and better feeling between them and the commercial class.

"Fines and satisfactions," imposed for wrong entry, are now in an unsa- tisfactory state, because the fine and half the profit of the goods seized go to the servant, and he thus becomes open to suspicion. These exactions will not be relinquished ; but they will be collected in a common fund, and re- distributed as rewards for merit; so that the individual officer will no longer have any direct interest in them. This does not extend to the Coast Guard, because they run great risk and danger, and the seizures form an induce- ment At the same time, greater facilities will be given for amending entries.

"Ad valorem duties," formerly a fruitful source of dissension, are now al- most abandoned ; but the few that remain will be treated as they have hitherto been.

"Seizures and stoppages," and adjudication on them. These have led to great and angry discussions-' but Mr. Wilson believed the complaints under this head have been met by the circular issued by the Board, of its own ac- cord, in August last, ordering that the owner of seized property should be furnished • with a written notice, specifying the grounds of detention" : and providing for a hearing of both sides, on oath, before a member of the Board. "Costs and penalties." This is of very great importance. Considering the altered feeling of the times, it has been held that the Crown might now safely place itself on a level with the subject in regard to civil cases. Govern- ment therefore propose that it should be made imperative upon the Crown, in all cases where the duties or penalties to be recovered do not together ex- ceed 100/., to resort to the County Courts, or such other local tribunal as the Treasury may direct ; giving the option, however, of trial by jury in a high- er court. And even in eases which involve a larger amount of duties or penalties than 100/., where the Commissioners of Customs certify to the Treasury that, from the simple nature of the eases, they may safely be left to the local tribunals, the Treasury will be empowered to authorize the step so

recommended. Under the minute now issued, the Board of Customs will be responsible for actions brought against its servants. Government propose that the limit after which actions cannot be brought against the Crown shall be one month ; the limit for the Crown being three years in cases brought before superior courts, three months in eases brought before a magistrate. Then came the " transit system." Mr. Wilson gave details of the rapid growth of this system, by which goods passed from one port to another for re- shipment, in 1852, value 3,414,451/. British shipping increased 368,000 tone between 1849 and 1852, the total increase of shipping being 861,000 tons; and much of this increase he attributed to the transit trade. It has there- fore been resolved, with reference to goods in transitu, that they may be landed and conveyed by railway, under the superintendence of a Custom- house-officer, from one port to another, where they may be reshipped and exported to other parts of the world without being opened or in the slightest degree disturbed. These arrangements have only been in existence about two years. Government propose to increase the facilities.

With regard to " fines on shipping," Government concur with the Com- mittee that crews should be responsible for smuggling, and that the vessel should not be detained unless the officers are detected. But the practice has nearly always coincided with this view. The "bonding or warehousing system." A grievance in the present prac- tice is, that the original importer, although his goods might be sold over and over again, is the only person known to the Crown as legally liable for the duty, ten or twenty years after he has sold the goods. To remedy this, it is proposed that there shall be an optional reentry when an importer parts with his goods, and that there his liability shall cease. Stock to be taken every five years, and deficiency of duty paid then. Another improvement is the reduction of the three distinct classes of warehouses into one.

"Passengers' luggage." Every facility and accommodation will be given. Passengers not having more than two packages may have them examined between Gravesend and London if they please, and passengers having more may have at least a carpet-bag examined but if they contain any article liable to duty, they must go to the Customhouse; and where there is a large quantity of luggage, the present course would be pursued with regard to it. As regards "hours of attendance," every possible facility shall be afforded, especially where merchants are to pay for attendance for extra time ; and arrangements have been made whereby vessels can be cleared out at a later hour.

The next topic—" the simplification of entries of free goods" is the most important of the whole. The proposition of the Committee was, that "the ship's manifest and the report of her consignee be the sole entry required in the case of free goods." Mr. Wilson detailed a number of cases of fraud by the introduction of articles subject to duty under the guise of articles free or nearly free of duty,—such as snuff in oil-cake, tobacco in tins of rape-seed oil, —in order to show the danger of such a regulation. Government propose that with respect to free goods a separate room, distinct from the Long Room, should be opened at the Customhouse, and that on a ship's arrival no time should be lost in making the entry. In regard to free goods outwards, the bill of lading to be sent with the information required. Referring to the codification of acts of Parliament, Mr. Wilson observed, that before 1825 there were 1500 acts relating to the Customs. Perhaps cue of the most laborious and meritorious works ever performed by man was the reducing those 1500 acts of Parliament into the compass of the small volume he held in his hand. That work was performed by Mr. James Deacon Hume; and he believed that the very book he then had before him was the one which Mr. Huskisson produced to the House in the year 1825 as one of the greatest triumphs of human labour that he had ever heard of. In 1836 that work was further reduced, under Mr. Poulett Thomson ; and in 1845 only six acts out of the 1500 were remaining. He hoped shortly to lay on the table of the House a bill containing every law and regulation with re- gard to the Customs. All new regulations should be published from time to time, and at the end of the year added to the act. The last subject Mr. Wilson touched on was "the outports." Considering the rapid increase which the port had made in importance, it has become necessary that Liverpool should be placed in a new position, so that all im- portant questions may be decided day by day. The Commissioners of Cus- toms have therefore been authorized to extend the existing authority at Liverpool, to adjudicate upon all cases not exceeding 100/. value, without requiring the parties to wait, as they are now obliged to do, till the Board of Customs in London be appealed to. Inquiries public; a weekly report made to the London Board ; and the County Court open to those who wish to go to it in all cases within the above-mentioned limits.

This statement occupied three hours in delivery. It was followed by a miscellaneous conversation, of which the staple was approval of the plan, by several Members,—Mr. MITCHELL, Mr. TURNER, Mr. G. A. ILiMILTON, Mr. Joux MACGREGOR, Mr. WILLIAM BROWN, MT. JOHN ABEL SMITH, Mr. Alderman Tuosesos, and Mr. GOULBURN. In reply to several observations, Mr. GLADSTONE said that the consti- tution of the governing authority is of vital importance, and has not been overlooked ; but he could not take upon himself the responsibility of sub- mitting at once a distinct plan.

The papers presented by Mr. Wilson were ordered to be printed.

NATIONAL DEBT BLLL.

The "South Sea and other Annuities Commutation Bill" was read a second time just before the House broke up after the Budget statement on Monday night. This formed a ground of complaint to Mr. DISRAELI on Thursday. They had been told, he said, especially by Lord John Russell, that the passing of the resolutions did not pledge the House in any way to them, but was only intended to enable the Chancellor of the Exchequer to bring in a bill, and that a time would be fixed for a discussion of the prin- ciple. He found a bill had been read a second time ; and he thought the House had not been fairly treated, as no opportunity of discussing the principle had been given. Mr. GLADSTONE explained, that Lord John Russell had simply stated that an opportunity for discussing the bill would occur—without naming any particular stage. Now, from the absence of Mr. Disraeli and many of his friends on Monday, Mr. Gladstone had inferred that they did not intend to discuss the bill. But ample opportunity would arise before the Speaker leaves the chair. Replying to a question from Mr. DutaArsi, Mr. GLADSTONE stated, that he should, as he had proposed, take the In- come-tax on Monday. He suggested that they should commit the South Sea Annuities Bill pro forma, on the understanding that the sense of the House might be taken on its recommittal. This WU agreed to.

ADMIRALTY PATRONAGE.

Sir BENJAMIN Max called the attention of the House to the subject of Dockyard appointments and promotions under the late Administration. As he was obliged to allude frequently to Mr. Augustus Stafford, the late Secretary of the Admiralty, he assured Mr. Stafford that he did not bring forward the subject from any feeling of hostility towards him. He then stated his case.

His object was to show in detail that the influence of the Admiralty and its patronage had been used for political purposes. In February 1847, Mr. H. G. Ward issued a circular to the Superintendents of Doekyards, inform- ing them, that for the future preferment should be the reward of merit and not of political favouritism. On the 26th September 1849, another circular was issued, stating that all reports and correspondence on the subject of vacancies, promotion, or changes, should be transmitted through the Sur- veyor of the Navy. When Lord Derby came into power, and five days after Mr. Stafford entered office, a circular, hearing date "April 19, 1852," was issued by him, stating that the order of the 26th September 1849 was "to be considered as cancelled," and that in future such reports and correspondence [therein alluded to] are to be transmitted

direct to' the Secretary of the Admiralty." This was signed "by command of their Lordships, Augustus Stafford." Sir Benjamin had asked Sir James

Graham whether there was any order in existence in reference to this circular, and Sir James replied there was none. The Surveyor of the Navy was dissatisfied ; and on the 21st April wrote a letter to Mr. Stafford, in wlich, in consequence of the cancelling of the order, which he considered a censure on his conduct, he said—" I must therefore beg to tender to their Lordships my resignation "; as he could not hold the office under the im- putation that he allowed political motives to influence his " submissions " to the Board. What had become of that letter ? That it had caused some com- motion at the Admiralty was clear ; for a circular was issued, "April 26th 1852," stating that " no imputation was intended to be cast on the Surveyor of the Navy," and that the circular of 1847 would be "strictly adhered to." But from that time the Secretary of the Navy had everything in his own hands ; and his political friends had no longer any reason to be dissatisfied. What took place At Devonport, in 1852, before the circular of 1849 was cancelled, only nine persons were entered. After the circular was cancelled, to the end of the year, no fewer than 114 persons were entered ; one-half before the end of June. Men engaged as extra sawyers were removed in April 1852, to make room for others whose friends were Plymouth and De- vonport voters. Nineteen persons were entered at Plymouth between the 14th June and the 17th July. On the 10th May, Sir Baldwin Walker ad- dressed a letter to the Duke of Northumberland, complaining of the system pursued of late in the Dockyards, now that " the admirable circular of P'ebruary 1847, which directs that all advancement in the Dockyards shall be made for merit alone, has been virtually thrown aside" ; alleging that "the Secretary of the Admiralty thought proper to cancel, without the knowledge of the Board, their Lordships' circular of September 1849" ; and that all this had been done for political purposes.* In reply to the ques- tions put by Admiral Berkeley and Sir George Pechell in November last, Mr. Stafford said that "there had been no correspondence with the Surveyor of the Navy on the subject" of the order that the names of persons recom- mended for promotion should be sent through the Surveyor of the Navy,— Mr. Stafford assuming that Admiral Berkeley referred to the circular of 1847; and that the Surveyor of the Navy had not tendered his resignation. Sir Benjamin called for explanation of these discrepancies.

Sir Benjamin then entered into the case of Mr. Wells, who had been re- commended by Sir Baldwin Walker, in pursuance of an order from the Board that a smith from a private yard should be appointed master-smith at Ports- mouth. Wells was appointed, on probation, on the 10th September 1852, but dismissed on the 1st October; and Cotsell, a Chatham voter, was appointed. When inquiry was made the minute appointing Wells was missing. In order to throw some light on its disappearance, Sir Benjamin read the deposition of one Thomas Scott, who had given him authority to use it, to the effect that Cotsell stated to Scott how the thing happened. Cotsell said—" When I found by the 21:mcs paper that Wells was appointed master-smith of Portsmouth, I immediately went to the Board of Admiralty. I there saw a gentleman, a friend of mine. After telling him what I had come up about, he took zee into a room in the Admiralty. I there saw the appointment of Wells made out and lying on the table. My friend said, 'You see you are just in time,' and took the appointment of Wells from the table and thrust it into his pocket; at the same time telling me, I should never hear any more of it, and that my appointment would be all right." In consequence of the removal of Wells, four promotions took place, three of the persons pro- moted having voted for Conservative candidates.

The concluding section of Sir Benjamin's long speech was devoted to showing that Mr. Stafford had visited Chatham, Deptford, Deyonport, and Plymouth, and had walked through the yards with the Conservative candi- dates; but there being no contest at Portsmouth he had sot gone there. At Devonport he gave a dinner to the attornies of the Tory candidate and their election-agents. The last point made in the speech was the citation of an Admiralty order signed "Charles Wood," and dated "July 18, 1835," for- bidding canvassing in the Dockyards. Sir Benjamin moved for a Select Com- mittee to inquire into the various matters he had gone over in his speech. Sir Gzonom PECHELL seconded the motion.

Mr. STAFFORD, cheered by the Opposition, then rose and presented his explanation, with a courteous exordium, acknowledging the mover's fair- ness.

On the 26th November last, the Duke of Northumberland told him the Surveyor of the Navy was annoyed at the circular of the 19th, and advised him to see Admiral Hyde Parker and Sir Baldwin. He did so, taking with him the rough draft of the circular issued on the 26th April. Sir Baldwin WS satisfied with that, and the circular was issued. When the notice was given to Mr. Stafford in November of the question respecting the resignation of the Surveyor, he had caused a search to be made, and no correspondence could be found either in Whitehall or Somerset House. Therefore he re- plied that no correspondence existed. It appears that Sir Baldwin intrusted his letter of resignation to Admiral Parker ; that he, as senior Naval Lord, seeing that Sir Baldwin was satisfied with the circular of the 26th April, had, in his discretion, destroyed the letter ; and so the resignation of Sir Baldwin was never heard of. (Cheers.) He thought too much had been made of this transaction. Here he read a private letter from himself to Sir Baldwin, expressing the dissatisfaction his political friends felt that all appoint- ments and promotions were "dispensed among our political opponents " ; but adding, that Sir Baldwin was not to blame, for he was thought "too far removed from polities altogether to understand the small in- trigues that gq on in these places." lie confessed he read with sur- prise the quotation from that letter which appeared in the newspapers. With reference to Sir Baldwin's letter dated 10th May and addressed to the Duke of Northumberland, he stated that the Duke had, as he had power to do, treated that as a private letter. As to cancelling the order of Sep- tember 1849, be had acted strictly in rule in placing the cancelling circular on the ordinary minute-book, and not on the general Board minute-book ; and the circular of 19th April was affirmed by the general Board on the 26th. The charge of his having issued that order without the knowledge of the Board he thought fell to the ground. He defended the cancelling of the minute, on the ground that things had gone well under Mr. Ward, but that a change had taken place when Mr. John Parker became Secretary ; and he read letters to show that the Dockyards had been stuffed by Whig under- lings; that the vesting of all recommendations in the Surveyor of the Navy was intended to secure the position of the party; that promotions had been See Spectator, 2d April 1853, p. 314. onesided—all Liberal ; and that all he had done was to replace the Surveyor in the precise position in which he was placed by Lord Auckland. As to the number of names entered in the Dockyards, there might have been more en- tered in the months named in consequence of fewer in the previous months. His explanation of the ease of Mr. Wells was this. Wells was informally appointed, in fact not appointed at all. His appointment had not issued from the Admiralty. Mr. Stafford was away at the time, and when he returned he found that two letters had issued from the Board of Admiralty on the subject, but that the Admiralty afterwards changed their mind. He met the deposition of Thomas Scott by indignantly asking why they had not been brought face to face before the Chatham Election Committee ? (Cheers.) And he blamed Sir Baldwin for notifying the appointment to Wells prematurely without au- thority. He defended the appointment of Cotsell, who he said, was an able officer, and had raised himself by his own merit. Mr:Stafford admitted the visits to the Dockyards ; said that he had not canvassed or spoken on polities ; but confessed it would have been better had he not gone the round at all, and advised his successor to abstain.

A very long explanatory debate followed ; in which all the speakers acquitted Mr. Stafford of any imputation on his personal honour. It was shown by Admiral BERKELEY, and afterwards at greater length by Sir James Graanau, that the statement of Thomas Scott received some corroboration from the fact that the missing minute of the appointment of Wells had been traced either to Mr. Stafford or to Mr. Grant his private secretary. It was also held that the speech of Mr. Stafford made inquiry necessary on behalf of Sir Baldwin Walker ; who was accused of extraordinary misapprehensions, an un- guarded manner of giving evidence, and the improper use of a private letter. To this last allegation Sir James Graham replied, he was authorized to state solemnly that it was untrue; that the expres- sions in Sir Baldwin's public letter referred to a conversation he had had with Mr. Stafford, who first himself and afterwards by his secretary, re- peatedly solicited Sir who, to bend his recommendations by political considerations; proposals rejected with indignation in the presence of a third person. Sir Firawces Baum also contended for a searching in- quiry. On the other side, it was represented by Sir FREDERICK THESI- GER, very strongly, that an inquiry would be needless, for the House was already in possession of the facts; nay, hypocritical, for it was well known that no peculiar corruption existed in the Admiralty that did not exist in all the other departments : and he sarcastically taunted the House with becoming, all of a sudden, desirous to discover things that were perfectly well known. Against this Sir JAMES Gnauest protested with equal force. He was no purist : Government could not be carried on without giving a fair preference to their political friends ; but when once appointments are made after the strictest exa- mination, then it is of vital importance that promotions be made for merit and merit alone. Nearly at the close, Mr. DISRAELI arguing that Mr. Stafford stood completely vindicated, and therefore no Committee was necessary so far, assented to the motion, "entirely to give Sir Baldwin Walker an opportunity of vindicating his honour." Lord dolor RUSSELL thought Mr. Stafford successfully vindicated" ; but he disapproved of the cancelling of the circular of 1849, and assented to the motion. On the suggestion of Sir FREDERICK THESIGER, the inquiry was ex- tended, without date, "into the exercise of the influence and patronage of the Admiralty in the Dockyards and Government departments connected with the several Parliamentary boroughs" ; and so worded, the motion was agreed to.

ILLYNOOSH COLLEGE.

The Earl of WTh7CHILSEA, in moving for a "Committee to inquire into the system of education pursued at Maynooth," supported his motion by references to extracts from books and documents on the Papacy, deposited in the Universities ,af Oxford, Cambridge, and Dublin; and contended that the moral and social character of Maynooth College was totally at variance with the security of the Protestant throne and the civil and re- ligious liberties of the country. If the canon law taught there is the same as that inculcated by the Court of Rome, which enjoins obedience to the Court of Rome on all occasions, then it behoved their Lordships to ascertain the fact.

The Earl of ARE/MEEK said he would not offer any opposition to the bare subject of the motion. Parliamentary control over an establishment endowed by the State is perfectly right and reasonable. But any inquiry most be made according to the intentions of the Legislature. You are not to expect Protestant doctrines to be taught in a Roman Catholic Col- lege. There was a Commission in 1826, which made a full inquiry fol- lowed by a most elaborate report ; and there is much justice in the obser- vation that the inquiry of 1826 supersedes the necessity of that now pro- posed. But as public opinion is in favour of inquiry, Lord Aberdeen was not desirous to check it ; and he believed it would redound to the advan- tage and credit of the College. The persons most nearly interested do not object to an inquiry ; they pray for it. But he objected to the pro- posed Committee, on account of the obvious animus of the proposers, and the strong religions animosities and unseemly discussion which must en- sue in a Select Committee. If the House desired a fair and impartial in- quiry, conducted by able and independent men, he trusted they would adopt the amendment of which he had given notice. Lord Aberdeen moved- " That a humble address be presented to her Majesty, praying that her Majesty will be graciously pleased to issue a Commission to inquire into the management and government of the College of Maynooth, the discipline, and the course of studies pursued therein ; also into the effects produced by the increased grants conferred by Parliament in 1845." The original motion was supported by the Earl of RODEN, Earl DESAIET, and the Lad of DERBY. Lord DUFFERIN, the Earl of SHAYMBURE, the Bishop of Latinow the Earl of HARROWBY, the Duke of ARGYLL, and the Marquis of LasnowNE, supported the inquiry by a Commission, in preference to an inquiry by Committee. Lord BEAUMONT, the Marquis of CL&NRICARDE, and Earl GREY, saw no necessity for any inquiry at all, but were reduced to acquiesce in Lord Aberdeen's amendment There was an amusing passage of arms between the Duke of Argyll and Lord Derby. The Duke of ARGYLL referred to the part Lord Derby took in 1645: the noble Earl, said the Duke, after reading an extract from one of the speeches of that time, had told them, if a thing were good in the abstract, they must do it although evil might come. Lord DERBY was at a loss to know why such an extraordinary reference had been made to him. The noble Duke was a young man, and a younger minister; and if he would permit him to offer him one word of friendly ad- vice, it would be as a minister not to make an unprovoked attack upon one who had .given him no just cause. Having said so much, in order to show that be received the remarks of the noble Duke with perfect good humour, he would beg, by way of illustration, to remind the noble Duke of a story, which he probably might have heard, of a very powerful man, belonging to that class of industrious labourers who were commonly sailed "navvies." It was said of this man, who was a strapping fellow of six feet four, that he was in the habit of being beaten by his wife, who was a very little woman. On being asked if the report were true, he replied that it was ; and he added, for the purpose of explaining the fact, "Why, you see it amuses her, and it doesn't hurt me." (Much laughter.)

On a division, the numbers were—Content, 53; not content, 110; Go- vernment majority, 57.

The resolution was negatived, and the amendment was agreed to.

M. KIRWAN'S CASE.

The Earl of EGLINTON brought under the consideration of the House of Peers the grounds which induced him to suspend Mr. Kirwan, a sti- pendiary Magistrate of Ballina in the county of Mayo, shortly after the

last general election ; and who had since been restored to the commission of the peace by Earl St. Germans, before the time of suspension had ex- pired. Lord Eglinton disclaimed anything like a spirit of hostility against his successor, and said his only motive was to prove the propriety of his own conduct. To make out the case, he read a number of extracts from Parliamentary papers which have been published. Briefly told, the ease is this. Mr. Kirwan wrote to the Under-Secretary for Ireland, in July last, stating that there had been a riot at the election ; that stones were thrown ; that he had caused the Riot Act to be read, and had ordered the soldiers to prime and load ; but that he then, "at the im- minent risk of his life," with the assistance of the Sub-Inspector of

Pollee, had quelled the riot. Incidentally he stated that he was as- sisted throughout by a Mr. Howley, J.P., and that the Roman Catholic clergymen did everything to preserve order. In a subsequent letter he blamed the military, who were with difficulty prevented from firing on the "infuriated assemblage." But rumours soon reached Dublin that Mr. Kir- wan's representation of the affair was not correct ; and that he had pub- lished a letter, dated 24th July, thanking the Roman Catholic priests for their able assistance in preserving the peace; asserting that had not the priests rushed in with him at a most critical period of the riot, and com- manded the people to disperse, the most deplorable consequences would have ensued ; and winding up with "Vox populi vox Dei." This caused inqui- ries to be made by the order of the Lord-Lieutenant, and Mr. Kirwan re- sponded in terms less enthusiastic than he had previously used. He ex- plained the Latin quotation by saying that he had used it in consequence of being "grossly calumniated," and that he intended to convey by it that he did not fear a public inquiry; but if it did not convey his meaning, he added, "I can truly assure you I did not read a Latin book these twenty-one years." (Great laughter.) The inhabitants of Ballina brought various charges,—that Mr. Howley had distributed inflammatory placards; that Mr. Kirwan himself had made light of the riot, disregarded the appeals of the Protestants for decisive measures, and liberated three prisoners taken by the Police ; that he was accustomed to spend his time with Roman Catholic clergymen ; and that he called on the people to desist in the name of O'Con- nell. Lord Eglinton sent down a lawyer, Mr. Martley, a man of moderate opinions, to conduct an inquiry. The result of Mr. Martley's inquiries was, that he acquitted Mr. Kirwan of impropriety in liberating the prisoners, but considered it ill-judged, in his personal associations at Ballina, and in calling on the people to desist in the name of O'Connell. Ile found that Mr. Kir- wan bad remained inactive, and had shown want of energy and prompti- tude; but that he had acted with impartiality, and had always borne a good character. Under these circumstances, 'Lord Eglinton felt bound to inflict some punishment ; he hesitated between suspension and dismissal, and finally decided on the former. He expressed himself surprised at finding the first public act of his successor was to reverse the sentence on Mr. Kirwan. He felt this to be an uncalled-for and improper exercise of authority on the part of Lord St. Germans, and a needless interference with the acts of his predecessor, tending to lower the character of the Viceroy. Ireland had too long been the battle-field of English party strife. There were signs that the present Administration intended to govern through the agency of the priests. As a matter of form, he moved for copies of the representations made to the Earl of St. Germans for the restoration of Mr. Kirwan, "al- though he believed none were in existence." The Earl of ABERDEEN supposed it was because the question was an Irish one that Lord Eglinton had taken the somewhat Hibernian course of moving for the production of something which was not in existence. (Laughter.) As regarded the main question, he assured Lord Eglinton that not the slightest censure on his acts was intended by lord St. Ger- mans. Lord Aberdeen did not think it a wise exercise of authority to suspend a magistrate for six months, who, not a bit better nor a bit worse, would return to the exercise of his functions exactly the same man as be- fore. Mr. Kirwan might have been visited with severe censure ; but, after Mr. Martley's report, it would have been difficult to dismiss him. Assuring Lord Eglinton that he found no fault with the sentence passed on Mr. Kirwan, he thought at the same time that Lord Eglinton could not complain that two months of the punishment were substantially re- mitted. It was not the first act of the Lord-Lieutenant, as it was de- cided three weeks before he left London for Ireland.

Some debate ensued, but no further progress was made with the ques- tion. The Earl of GLExessim supported Lord Eglinton's views. The Earl of DERBY, bestowing great praise on Lord Eglinton's Irish Admi- nistration, which the House cheered, combated Lord Aberdeen's argu- ments against suspending a magistrate ; and complained that in the letter reinstating Mr. Kirwan, no allusion was made to his past conduct, and no grounds were stated why the sentence was remitted. The Duke of NEWCASTLE explained, that Mr. Kirwan had been rein- stated because it was believed le had undergone sufficient punishment for faults which were nothing more—although he did not wish to extenuate them—than want of energy and judgment ; and it was held that the cause of justice would not suffer from this act of clemency. In order to show that no partiality existed, the Duke mentioned that a similar offer had been made to Lord Roden ; which, from a feeling of high honour, 'that nobleman had declined to accept. The Earl of RODMI said, it now appeared from the speech of the Duke of Newcastle, that the offer made to him had been made in connexion with the restoration of Mr. Kirwan, and on similar grounds. The Duke of .Nisweeirrix explained, that Lord St. Germans had.not acted upon any such principle. Lord RODEN -accepted the explanation, and then read the correspondence respecting the offer to reinstate him, to show that he had not accepted it because the letter of the Lord-Lieutenant 'stated that " the necessity " for suspending -him had ceased to exist. Lord Roden denied that any necessity ever did exist, and he would only accept his restoration "as an act of justice " ; but at the same time, he thanked

Lord St. Germans for his kindness. Having made this declaration, he bad left it to the Lord-Lieutenant to reappoint him or not ; but Lord St. Germans had replied that it was impossible to assent to the condition on which alone Lord Roden would resume the magisterial office.

After some argument between Lord Sr. LEONARD& the Lord Clasis- essr.on, and the Earl of CLANCARTY, on the policy of suspending magis- trates, the subject dropped.

CONTROVERTED ELECTIONS AND CONDEMNED BOROUGH&

Decisions have been come to this week on the election petitions from Barnstaple, Cockermouth, and Mayo. In the case of Barnstaple, the Committee report that eight distinct acts of bribery were committed, with sums varying from 10/. to 4/. 16s., by the agents of the sitting Members ; that Mr. Bremridge, one of the sit- ting Members, was cognizant of an offer of money to John Ireland, and that he ratified that offer. Both the sitting Members, Sir W. A. Fraser and Mr. Richard Bremridge, are declared not duly elected ; further it is declared, that both were by their agents guilty of bribery, that the elec- tion is void, and that "corrupt practices extensively prevailed." The Cockermouth Committee report that General 'Wyndham and Mr. Aglionby are both duly elected. Undue influence was proved, but it could not be directly connected with either. Intimidation and rioting were alleged in the Mayo petition ; and it was shown that Mr. George Henry Moore and Mr. Ouseley Higgins had placed themselves in the hands of the Independent Club, an association of which Dr. M`Hale was a leading member, and that rioting had occurred. But the Committee held that Mr. Moore and Mr. Higgins were duly elected. Costs refused.

The allegations made against the validity of Mr. Charles Gavan Duffs qualification not being sustained, the Committee have declared that he was duly elected for New Boss. It appears that two rent-charges were granted to Mr. Duffy, for neither of which had he given any consideration, nor received any beneficial interest. It was argued on the one side, that, as he was not better off for his property, he was not seised of the lands "for his own use and benefit," as the statute required; and on the other it was replied, that he had a full.legal right to the property, and that if he chose to leave that right imexercised it was his own concern. Costs have been awarded to Mr. Duffy on the allegations of mobbing, kidnap- ping, and violence, which had been withdrawn by the petitioners.

Sir Thomas Colebrooke has not fared better than Mr. Mills in respect to the inquiry into the corrupt practices at the last election for Taunton. The Committee have found that he was guilty of bribery by his agents, and that as far as Mr. Mills is concerned the election was void.

Some unwonted revelations have been made before the Committee of inquiry into corrupt practices at Bye. It appears that since the Reform Bill a local land-agent, or, as he describes himself, tenant of 5000 acres, largely engaged in shipping and commercial transactions, Commissioner of the Property-tax, Poor-law Guardian, and trustee for many estates, whose name is Jeremiah Smith, has carried on an extensive series of ope- rations by means of loans to electors' placing the representation of the borough more or less at his disposal. At first he acted on behalf of Major Curteis, and expended, according to his own statement, 7000/. in loans. Quarrels about the money claimed by Smith seem to have broken out several times ; and it is to one of these unpleasant incidents that we owe the present disclosures.

On the motion of Lord ROBERT GROSVENOR, the House agreed, by a majority of 69 to 48, to address the Crown to issue a Commission to in- quire into corrupt practices in the borough of slia/don ; the Commissioners to be Mr. Shapland Whitmore, the Honourable Frederick Ponsonby, and Mr. John Carlen Heath.

The House of Peers has agreed to the motion for an address praying that a Commission may issue to inquire into corrupt practices at HulL

JUDGES EXCLUSION BILL.

When lord HOTHAM moved that the Speaker do leave the chair, in order that the House might go into Committee on the bill, Mr. Daum- atoms caused some laughter by saying he had come down to move that "the Speaker do not leave the chair till that day six months." Ho looked upon the bill as one of the most destructive tendency ; but he should reserve his opposition until the third reading. The House went into Committee, and both the clauses of the bill were agreed to at once. Mr. HUME moved that the Recorder of London should be included in the schedule ; the exclusion, however, not to apply to the present Recorder. Mr. STUART WORTLEY spoke against the proposed exclusion ; urging that the duties of the office he holds are not incom- patible with the possession of a seat in the House of Commons ; and pointing out that he was not appointed by the Crown, but by an inde- pendent corporation. The feeling against the amendment was so general, that, after considerable disenasion, Mr. HOME withdrew it. The schedule was agreed to.

PILOTAGE BILL.

On the motion for going into Committee on this bill, Mr. Tonzs-sn moved that it be referred to a Select Committee. So much is at stake, that a Select Committee alone could properly investigate the subject. This motion was seconded by Sir EDWARD DERINO p debated at some length, and pressed to a division. But then the amendment was nega- tived, by 219 to 83; and the bill was committed pro forma.

HACKNEY CARRIAGES.

Mr. Errantly has obtained leave to bring in a bill for the better regu- lation of hackney carriages in the Metropolis.

The principal provisions of the bill are—reduction of fare to 6d a mile, or 28.-by the hour reduction of the duty on the original licence from 51. to 11., and of the duty on the weekly licence from 10s. to 7s. ; inspection of carriages proposed to be licensed by the Commissioners of Police, and fresh inspection from time to time ; the appointment of men at the various cab- stands, furnished by the Commissioners of Police with lists of fares, charged to keep order and to inform the hirer of the amount of his fare for a given distance • and in case of any dispute between driver and hirer, power for the latter to insist on being driven to the nearest Police Court for a summary

hearing. •

AMERICAN FISHERIES.

In reply to the Earl of MALMFSBURY, the Earl of CLARENDON stated that the fisheries question and the commercial relations of Great Britaihi and the 'United States are now under negotiation for settlement. With respect to the protection of the fisheries, precisely the same orders have been issued as those of last year, and the sante Admiral has been sent to the station.