The Sun.
London, England, 1862-05-31 00:00:00

has produced produced a budget without a real surplus." The
whole real question between him and his.asssilantsl
therefore would seem to be whether the expenditure
, should be deemed " exceptional " or not. If it be i
not, they must cut drone half the word with which
they pelt his financial policy—and, instead of being
a spend-thrift policy, it will be a policy of thrift.
No one will contend for the wasteful process of

sinking a large additional amount of capital for
what are obviously exceptional charges. And Mr.
GLADSTONE contends that the Chinese, New Zea-
land, and American affairs, and also " reconstruc-
tion of the navy," as the phrase is, ought to be
viewed as exceptional.
Now it is not a little remarkable that Lord
DERBY himself last night, cautiously as he spoke
on the subject, confirmed Mr. GLADSTONE'S views
on the most important point. Lord DEBBY con-
cluded his speech with the following remarkable
words—" He did not presume to say in what direction
the Government could effect reductions. He should
be sorry even to take on himself to call on their
lordships to affirm categorically that reduction was
capable of being effected consistently with the
circumstances of the times. His firm belief was that
it was, but he had not the knowledge which should
induce him to ask their lordships to come to such a
categorical result. But the Government had before
them the simple choice between two alternatives.
, Additional taxation was impossible; removal of
taxation was almost equally impossible ; it was im-
possible to contiaue in the past alarming condition
of the finances. The only alternative to which they
must look—and to which he trusted they would
look—was an unsparing, a judieioug. and at the
same time a perfectly safe, reduction of public
expenditure."

These words might almost have fallen from Mr.
GLADSTONE himself. They contain a complete vin-
dication of his financial policy. If Lord DERBY
really believes that such reductions, as he speaks of,
are possible, it would assuredly have been unwise
to diminish yet further the people's incomes that the
money might lie in the national till. Indeed, Lord
DERBY declares that addition to existing taxation is
impossible, if so, what taxes would he have had Mr.
GLADSTONE impose, to create the balance he talks
'of ? Removal of taxation he thinks is impossible;
if so, the only alternative left is reduction of ex-
penditure, which he himself demands should be
" unsparing." Even, however, looking at the taxes
Mr. GLADSTONE has repealed, it would be wonder-
ful, were it not become almost a proverbial result,
to notice how marvellously the remission of duties
has already recouped itself. The remissions which
have created the new French trade, have, indeed,
very nearly made up the loss of American trade
caused by the war and, perhaps equally, by the
Morrill Tariff. He would be a bold man now who
would venture to deny the advantage to the indus-
trial interests of the country of Mr. GLAD-

STONE'S completion of the Free Trade
programme by his last remissions. Lord OVER-
STONE was indeed so ill advised as to mention that
he had looked up his old speeches hostile to the
French treaty, and was much in love still with
them. The Chambers of Commerce, however,
throughout the kingdom, and the last returns of
the Board of Trade, have spared us all trouble in
reply to Lord OVERSTONE'S old speeches. Even
our iron masters and manufacturers have almost
trebled their trade with France, high as the duties
are, and we find at the present moment some of
the towns in Lancashire have actually been saved,
from want of employment, and from being thrown on
the rates, through the:work provided them by the
treaty. On the other hand, we hear of no com-
plaints, unless it be those of French protectionists,
who deplore that England should supply their
customers with cheaper and better articles than
they could furnish.
On the whole the drift of the Tories in the debate
Was to punish the arch-offender, Mr. GLADSTONE,
by fair means or foul, for his mastering the Peers on
the Paper Duty—a second object with them was
to proclaim an anti-Palmerstonian economy.
Luckily for Mr. GLADSTONE the two are incompa-
tible. If Lord PALMERSTON spends our money
too, his financial steward did good service in keep-
ing him with as little spare money as possible in his
pocket. To do Lord PALMERSTON justice, he
seems to be studying now the alphabet of economy,
and though he will certainly never take honours in
that line, we do not despair, under the tuition of
GLADSTONE, and an Opposition impatient for office,
of his making very useful progress.

The alternative that may just possibly arise
out of Mr. STANSFELD'S motion about the Expen-
diture will (in that contingency) be one of so
momentous a character, that it becomes advisable
to take calmly into consideration the present bear-
ing of that motion, and the exact tendency of the
three amendments that have been now one after
another appended to it. The motion itself and the
three amendments are in every way worthy of this
reiterated and deliberate scrutiny beforehand.
Upon the decision about to be arrived at by the
House of Commons in regard to them, but few
imagine perhaps how very much may be dependent.
That decision must involve far more than the fate
of an Administration. Upon it rests, more
or less, the whole policy on which the
British Empire may be governed during
the next generation. It seemed so small, so
(comparatively speaking)—unimportant in itself,
that first amendment of the hon. member for
Halifax ! And yet—" What mighty contexts rise
from trivial things ;" or at any rate, from what to
the less observant or the less reflective, mav, at the
first blush, have borne the superficial aspect of
triviality.
Mr. STANSFELD formally announces that—upon a
day yet to be selected, upon a day at any rate, that we
know already will follow almost immediately upon
the close of the Whitsun holidays—THAT IN THE
OPINION OF THE HOUSE THE NATIONAL EXPEN-

DITURE Is CAPABLE OF REDUCTION, WITHOUT

COMPROMISING THE SAFETY, THE INDEPENDENCE