The Sun.
London, England, 1863-04-16 00:00:00

mises the whole policy of the Federal comnlanders ,
and the general tenonr of the instructions given to

them at headquarters. Also the paragraph that
relates to the mail-bags is a most important one.
Reference is made to this subject in the course of
the instructions, where a stipulation is made that
"no official seals or fastenings of.foreign authorities
are on any pretext to be broken." After further
directions it is said that all such parcels are to be
delivered to the consul or legislation of the foreign
government to be opened, upon the understanding
that whatever is contraband will be remitted
to the prize court or Secretary of State at
Washington. Mr. SEWARD has shown unusual
good sense in- giving these instructions to naval
Federal officers, and it is to be hoped that they
will be attended to both in the letter and the spirit.
One thing attracts notice, and that is that all the
fuss and pretensions that have been made have not
gained the point of preventing traffic with the
South. In spite of innumerable precautions, we
learn that Charleston is enjoying a larger direct
foreign trade than she has ever had before.
This proves that the most violent measures are not
always the most effective ones, and that a more con-
siderate policy from the outset would have been
the wisest and best course for the Washington Go-
vernment to have followed.

Among the notices of motion dropped on Tuesday.
owing to the rising of the house, was one by Mr.
SHERIDAN with regard to Fire Insurances. The
hon. member last night expressed his hope that the
Government would make some arrangement re-
pecting these notices, but he also indulged in the
anticipation that the financial statement, which we
are all anxiously awaiting, might render his own
motion superfluous. There are certainly few sources
of taxation which more imperatively demand relief,
and Mr. GLADSTONE could hardly dispose better
of a portion of his surplus than by removing this
obnoxious and unfair impost. It is, in fact, only
another form of property tax, charging a man's
property in proportion to his prudence, his caution,
and all those qualities which the Legislature is
bound to encourage rather than to levy duty upon.
The mere principle of the tax is unjust and censur-
able; but the rate at which it is levied is simply
preposterous. The insurance offices, as we all know,
charge in proportion to risk, but the Government fol-
lo-ws a plan of Its own, sometimes being so moderate
as to charge only 100 per cent, at other 'times rising
in its demands to 200 or 300 per cent. Thus
if the office charge at the rate of 2s. 6d. per cent. on
the amount of the insurance, the Government duty
on that half-crown will be 3s. 6d., raising the sum
aid as security against fire to a height which is a
very serious discouragement to men of property.
The consequence is that the greed of the Govern-
ment, as is so often the case, defeats itself and large
amounts are insured in Hamburg and elsewhere
where there is no duty, and thus a good deal of busi-
ness that should, by rights, be transacted in London
is carried to foreign offices. It is not to be expected
that men who wish to insure for tens of thousands
will be very willing to pay mcre than double the
amount claimed as a a fair investment by the office,
knowing all the while that for these large sums
disbursed yearly they will get not one penny of
value. A merchant may insure in Hamburg for
£lO,OOO for less than half what it will cost him in
London to insure for £5,000, and it is not pro-
bable that under these conditions he should put
the matter in the hands of his countrymen
when foreigners conduct their business on more
reasonable terms. The duty on fire insurances has

long been complained of, but the complaints have
been passed over, and less pressing claims disposed
•f, while this very urgent reform was left uuheeded.
We are inclined to regret that Mr. SHERIDAN'S

motion has not been discussed before the Budget
came on, as a strong expression of public feeling on
the subject might have had weight with the Chan-
cellor c f the Exchequer. That brilliant but eccentric
financier does not always think fit to give us
what we most need. Perhaps he thinks we

shall appreciate his gifts the more if he
keeps us a few years in eager expectation. It is
very possible he may think it more advisable to take
the duty off some elaborate luxury used only by the
upper ten thousand than to relieve us of this heavy
burden, which presses most severely on those com-
mercial classes which Mr. GLADSTONE professes to

favour. We must hope, however, that the financial
statement will carry out Mr. SHERIDAN'S anticipa-
tions, by abolishing a duty so contrary to every
sound principle of fiscal legislation. Every
branch of insurance should be free of
duty, and every encouragement should be
afforded to commercial prudence, instead of
obstacles and impediments being thus placed
in the way. The Government certainly take no
part in protecting property from fire. The ela-
borate system of our Fire Brigades, the well-
appointed engines and efficient men, are not regu-
lated under any Government system, or with official
help. It is a matter of business between the in-
surers and the insured. The owner of valuable pro-
perty is unwilling to incur the risk of damage or
destruction without some compensation for the
loss. The office, in its turn, accepts the risk
and provides the means of protection. Why should
the Government step in to take the lion's share by
imposing a tax which doubles the expense of the
one party without adding to the profits of the other.
Were such interference of frequent occurrence
in commercial transactions the trade of London
would certainly not be what it is. We shall look
with interest for Mr. GLADSTONE'S views on this
matter, hoping they will be in accordance with
the doctrines of common sense and justice.