The Sun.
London, England, 1860-05-22 00:00:00

•-1;;r4-171-1' 7
THE SUN, !LONDON, 'TUESDAY EVENING, MAY 22, 1860.

hon. gentleman. Whether I refer to the strict binding
pledges which were given by the Government that the in-
come-tax should finally expire in 1860, to the feeling that
the falling in of the Long Annuities should be used as a means
of affording relief, not in the shape of indirect taxes, but to
contribute to the abolition of the income-tax—Whether I look
to the necessity of looking beforehand to another year, and
not being satisfied to deal with the manses of one year only
—whether I look to the necessity of postponing the abolition
of the paper duty, or the necessity of abrogating the war
duties on tea and sugar—upon all these points I am happy
to say I have the high authority of the Chancellor of the
Exchequer, placing himself thereby in direct opposition and
hostility to the right hon. gentlemat who was then Chan-
cellor of the Exchequer, and whois now his colleague at
the head of the Home Department. (Cheers.) In the first
place, let me deal with the finances of the last and present
year, according to the statement cf the Chancellor of the
Exchequer. The right hon. gertleman was anxious to
show what would have been the surplus for the year 1659-
60 if unexpected causes had not arisen to increase expen-
diture on the one hand and diminish the produce of taxes
on the other. Even by taking advantage of a very unex-
pected sum received from Spain in payment of an old debt
—for which, I believe, he was mainly indebted to the exer-
tions of my noble friend the late foreign Secretary—the
right hon. gentleman made the expenditure and income
exactly alike. This year tne ektimated revenue is
£60,700,000 ; the estimated expenditure, £70,000,000 - you
might call it £71,000,000, because there is £1,060,000 of
Exchequer bonds which have to be provided fur in some
way this year. That leaves a deficiency of £9,400,000. The
Chancellor of the Exchequer offered us various modes of
filling this up; for instance, there were the tea and sugar
duties which might be teept on, which would make
£2,100,000, or we might have a 9d. income tax. He says
an income tax at 9d. will produce £9,772,030, and will give
a surplus of £372,000. Well, my lords, in the circum-
stances in which this country was placed, and looking to
the causes which necessitated such great expenditure—
which was not an outlay of the ordinary character, but a
war expenditure in the time of peace, which became abso-
lutely necessary for the security and for the safety of the
country—l do not believe the slightest objection would
have been raised to the imposition of the 9d. income tax,
providing t was shown to be necessary for the safety
and security of the country. And, although it would not
have been as striking and as brilliant a budget as
that brought forward by the right hon. gentleman,
in my opinion it would have been one more likely
to receive the general assent and sanction of Parliament.
(Hear, hear.) But the right hon. gentleman thought this
was a fit occasion for a display of his matchless rhetorical
powers. Having had the pleasure of listening to that most
eloquent and most able speech, I came away with the fullest
conviction that such a budget as was then proposed, such
a financial arrangement, combining so many difficulties
and so many dangers, never could have commanded the
consent of any legislative assembly if they had not been so
dazzled by the brilliancy of the rhetoric of the right bon.
gentleman as to be willing to blind their eyes to the dan-
gerous consequences of that reckless career on which he was
urging them to enter. (Cheers.) With a deficiency of
£9,400,000, the right hon. gentleman proceeded to make
his statement, and, adopting the principle which seems also
to have been followed by the noble duke opposite—who
contended that because you could not strike off the income
tax at all, you might therefore proceed to enlarge the defi-
ciency—(hear, hear, and a laugh)—he proposed that you
should make great experiments in finance. I shall not stop
to show how completely different the measures now proposed
by her Majesty's Government are from those successive
systems and plans originated by the late Sir R. Peel ; but
the Chancellor of the Exchequer laid down this paradoxical
doctrine :—Most persons hold the opinion that periods of
prosperity, in which the revenue is fairly productive, are
those in which you ought to make financial amendments
and improvements ; on the contrary, says the Chancellor
of the Exchequer, that is quite a mistake ; the worse the
position of your affairs, the more desperate your deficiency,
the more serious your loss and the greater your dangers,
the more imperative is the necessity for an audacious and
daring Minister to enlarge that deficiency and to increase
the difficulties, so that you may take your chance of throw-
ing " double or quits." (Cheers.) You are already half
through, he tells you ; one more dashing move, it is possible
you may recover your fortunes, and if you fail you cannot
be much worse off than you were before. My lords, I say
that is not the policy of a statesman—it is the policy of a
desperate and improvident gambler. (Loud cheers.) What
is the course the right hon. gentleman proposes to take ?
Finding a deficiency of £9,400,000, he introduces a
further deficiency by the French treaty, which he esti •
mates at a gross loss of £1,737,000, or a net loss of
£1,190,000. I take all his figures as I find them, and I
suppose him to be perfectly accurate in his calculations.
The loss by the abolition of the Customs' duties is set down
in the gross at £1,440,000, or £910,000 net ; and he winds
up the whole by the abolition of the paper duties at the net
sum of £900,000 for the present year. In this manner he
increased the deficiency of £9,400,000 by £3,090,000, and
he left the House of Commons to deal with the very nice
little deficit of £12,490,000. Now, how did he deal with
that amount ? In the first place he proposed a number of
new charges, and these numerous petty and vexatious im-
posts on commerce will, I believe, be found productiv© in
practice of infinitely more embarrassment and annoyance
than the trifling reduction in the duties will compensate
for. (Hear.) He estimated that from new charges and
savings on the Customs establishment he would realise
£982,000 ; he continued the war duties on tea and sugar ;
from which he derived £2,100,000 ; he put on an income
tax of 10d. in the pound, producing £8,472,000, and carry-
ing out the principle which pervades the whole of this
budget, by a new arrangement of the income tax he ma-
naged to get in for the present year a larger amount than
would be yielded by the ordinary mode of imposition. In-
stead of half a year's proportion of the tax he is to receive
three quarters of the amount in the present year, in addi-

increase the deficit which will have to be encountered in the
year 1861-62. (Hear, hear.) In the 'same year the Fo-
reign-office and the Colonial-office had been found to be
dangerous fr r inhabitation. Plans have been framed, and
I expected that this year vie should have seen the erection
of a new Foreign-office, if not also of a Colonial-office. But
no, it is not so ;. but if the expenditure does not fall upon
this year it must fall upon the diminished resources of 1861-
2. Therefore I say that, following the Chancellor of the
Exchequer's own figures, and only allowing for those cor-

rections which are absolutely necessary to make, and which
have not been denied by the right hon. gentleman's col-
leagues, even for the present year there will not only not be a
surplus of £461,000, but there will be no surplus at all ; and,
as it does not need the gift of prophecy to show, theie will
be a considerable deficiency, even supposing the Chancellor
of the Excheluer's calculations to be correct. Again, we
must remember another element of danger. The Chancellor
of the Exchequer calculated upon a loss upon French wines
of £1,700,000; but, in consequence of increased consump-
tion, it would be only £1,100,000. To make up that loss
the consumption of French wine must increase in•the course
of three-quarters of a year no less than 35 per cent., and

that without affecting—for if it did it would alter the whole
balance—without affecting the consumption of beer or
spirits. (Hear.) Then, again, as to the trifling articles
amounting to £910,000, a net estimate of loss open .a
gross
loss of £1,040,000; and yet I do not know where the great
increase of consumption is come from, seeing that upon a
greater portion of those articles the duties are remitted alto-
gether. (Hear, hear.) Now, before I proceed further,
this is, perhaps, a convenient time to deal with the finan •
cial prospects of 1861-2. lam assuming that , the expen-
diture for 1861-2 will be no greater than that of the present
year—that is, £70,100,000 ; and the amount by which it is
under-estimated, £230,000, makes it £70r330,000. The re-
venue of 1860-1 is £70,664,000. From that sum we have
to deduct the malt and hop credits, which will
not be available again, £1,400,000 ; the Spanish
payment, £250,000 ; the loss upon the tariff, according to
the Chancellor of the Exchequer, £700,000; and another
sum of £150,000, being the difference of the balance of in-
come tax for the first quarter of a year. These sums taken
together make £2,500,000; and therefore, supposing all
other things to remain as they are, the surplus in 1861-2
will be less or the deficiency greater bythat amount,redttcing
the amount of the income for 1861-2 to £68,064,000, leaving
a deficiency of £2,266,000. That is, supposing the Chan-
cellor of the Exchequer's calculations are all correct, that
no reserve for China be necessary, that there be no charge
for building offices, no charge for fortifications—admitting
none of these matters which are postponed from this year,
and must fall into some succeeding year; admitting the
continuance for another year of the income tax and the
war duties on tea and sugar, giving him every source of
revenue upon which he has calculated, the Chancellor of
the Exchequer's scheme will lead to a deficiency in 1861-2
of £2,268,000. (Hear_) I did state, as the noble earl has
remarked, to the deputation which I saw on Saturday that
I would not ask your lordships to reject this bill unless I
could show that upon the statement of the Chancellor of
Exchequer himself there was every probability that in
1861-2 there would be a deficiency approaching t0£2,000,000.
I have shown you it must be £2,000,000, and will probably
be much more. (Hear.) I said I would not only confine my-
self to the faets and figures of the right hon. gentleman,
but upon the various points of the budget to which 1 ob-
ject I would produce the sanction of his high authority.
And first, my lords, as to the pledges, to use the right hon.
gentleman's own terms in 1863, that measures should be
taken, or, as he phrased it, every nerve should be strained,
to take off the income tax in 1860. lam not finding fault
with him for not taking off the income tax in 1860, because
I know circumstances have been too strong; but what
I am contending for is this, that the Chancellor of the
Exchequer had no right to say that the large falling
in of £2,400,000 afforded him means, or could be made
a justification., for taking off a corresponding amount of
indirect taxation, inasmuch as that very sum was known
to be about to fall in during the present yesr, and
had been assumed by him as a main reason for removing
the income-tax in 1860. (Hear.) Listen to the statement
of Mr. Gladstone in 1853

" How are we to obtain a rational prospect of being able
to part with the income-tax in 1860. . . estimated tax,
£6,140,000 ; new sources of income, £2,549,000 ? Then we
come to the anticipated reductions of charge, which of
course will be as effectual to the purpose in view as positive
additions to the revenue. The first of those reductions of
charge is that on the Three-and-a-Quarter per Cents., which
we owe to the wise measure of the right hon. member for
Cambridge in 1844. That measure will bring to
the account £624,000 Then in 1859-60
there will fall in the heavy burden of the Long Annuities,
and of another large portion of pur terminable annuities.
The first of these is £1,292,000, the second £854,000; to-
gether they will operate a relief of £2,146,000. Adding
this amount to the sum of £3,813,000
there will be an available increase of means of no less an
amount than £5,959, against the £6,140,000 of income-tax,
which will be the total amount of that tax at that period.
In the years 1860-61 half of the income-tax at sd. will be
available. The balance will be applicable as respects the
following year. The committee may now judge whether
I have been justified in the language I have used with re-
spect to the surrender of the income-tax."
The motion then made by the Chancellor of the Exchequer
was, that in April, 1800, except as to the collec,ion of
moneys then due, the said rates and duties shall cease and
determine. That was in 1853, and, no doubt, the circum-
stances have since altered. But, in 1857, and this sup-
ports me in another argument, viz., as to the necessity of
looking ahead and providing not only for the service of the
present year, but for future years, the following moti m
was made by Mr. Disraeli, as -an amendment to the finan-
cial statement of the right hon. gentleman now Home Sec-

retary

" That in the opinion of this house it would be expe-
dient, before sanctioning the financial arrangements for the
ensuing ye tr, to adjust the estimated income and expen-
diture in the manner which shall appear best calculated to
secure the country against the risk of a deficiency in the
years 1858.9 and 1859-60, and to provide for such a balance
of revenue and charge retpectively in the year 1860 as may
place it in the power of Parliament at that period, without
embarrassment to the finances, altogether to remit the in-
come tax."
That motion was supported by the present Chancellor of the
Exchequer, and I must say in the speech he then made he
bore somewhat hardly upon his new colleague who then
filled the office of Chancellor of the Exchequer. I must now
also do him the justice to say that the budget he has now
brought forward is very much in accordance with the views
he then expressed, but if ho had endeavoured to frame a
budget in such a manner as to negative every proposition
laid down by the then Chancellor of the Exchequer, he
could not have done so more faithfully and successfully
than he has done. (Hear, hear.) What were the main points
of Sir G. Lewis's budget in 1857 ? That it was not ex-
pedient to abolish the paper duties ; that it was not expe-
dient to do away with the wine duties ; and that it was
of great importance that you should not so reduce the tariff
to a small number of articles as to diminish the number of
articles over which the taxation of the country was spread.
The budget of the present Chancellor of the Exchequer goes
upon the principle that you should abolish the paper duties,
that you should abolish the wine duties, and that you should
simplify the tariff so as tc, make it comprise the smallest
number of articles possible ; and his predecessor in office bad
the satisfaction of sitting behind him and hearing these
principles enunciated, and of giving to them, of course, his
cordial approbation, (Laughter.) As lam going back to
the question of pledges, your lordships will observe the
language in which Mr. Gladstone commenced his speech on
that occasion :

tion to the one-fourth which remained for the service of
the year, arising from the previous sd. income tax. Even
this would hive left him in a deficiency of something like
a million after taking his new charges : and so, after he
had continued the present war duties on tea and sugar,
after he had saddled the country with an income tax of

10d. in the pound, three-fourths of which was to be
raised in the first half-year, he found it necessary to take
for:the year 1860-61 the malt and hop credits, amounting
to £1,400,000, which properly belong to the ser-
vice of the years 1861-62. (Cheers.) And thus
by anticipating revenues, he converted his large deficit into
an apparent surplus of £164,000, at the expense of the year
1861-62, and without making the slightest provision to meet
the difficulties which must then come upon the Exchequer.
(Cheers.) I said an apparent surplus of £464,000, but the
noble earl has admitted in the first place one very manifest
error, arising from a very shr ple cause. The Budget esti-
mate for the collection of revenue was £4,700,000, but the
Chancellor of the Exchequer in bringing forward this bril-
liant budget forgot that the cost of collecting the income-
tax was by poundage ; and consequently the increased pro-
duction of the income-tax was acquired at an increased
charge, so that when the estimates are brought forward the
amount no longer stands at £4,700,000, but at £4,932,000,
being an increase of £232,000, or exactly half the estimated
surplus. The noble duke behind me pointed out, and it has
not since been denied--that the Chancellor of the Exchequer
has been compelled to admit drawback to the extent of
£250,000 on this very paper duty. That of itself would be
sufficient altogether to exhaust the remaining surplus for
the present year, and leave the Chancellor of the Exchequer

"I have stood at that box, sir, and have addressed the
House of Commons, and I have received on the part of the
Government to which I belonged the assent of the House of
Commons to financial plans which were in every point con-
tradictory to those which are now proposed. How it is that
hon. gentlemen still sitting onthose (the Treasury) benches
find such facility for giving assent to contradictory propo
sitions it is not for me to say—(much laughter)—but of
this I am convinced, that if I may assume to exist in this
House of Commons the same feelings which existed four
years ago—l do not mean as to questions which were the
subjects of party contentions, but-as to the duty of balancing
income and expenditure—the express pledges which were
given to the country on the subject of the income-tax will
be rigorously maintained."
Well, my lords, it was hinted, meekly hinted—that there
were circumstances previous to 1857 which might modify
these pledges. No. He would not listen to any such pro-
posal. True, he did own that he had been deceived in his
estimate of the Succession Duty, respecting which I may
say that there has never been a more gross and signal failure
in a financial point of view, while, at the same time, upon
those luckless individuals who have become subjected
to the tax it has pressed with the utmost seve-
rity. (Cheers.) In 1857 there had been a failure
in Mr. Gladstone's expectations respecting the Suc-
cession Duty, and there was also the trifle of the
Russian war. Mr. Gladstone was not then Chancellor of
the Exchequer, but Sir Cornwall Lewis was. Then with
'eyed eloquence the right hon. gentleman exclaimed that
those circumstances were not sufficient to absolve the house
from those pledges, and that, as the person upon whom they
mostpressed, he should not feel absolved, inhonour or in con-
science, from the duty of straining every nerve still to uphold
and carry out those pledges. Was 1857 the last occasion on
which this language fell from the Chancellor of the Exche-
quer ? By no means ; for when my right hon. friend, being
then Chancellor of the Exchequer, brought forward that
comprehensive scheme which came to its final termination
in 1860, proposing not to interfere with the fall of the income
tax, the right hon. gentleman quite concurred with him :
" It is perfectly true," he said, " th It the war has made a
permanent addition to your burdens of about £1,250,000 per
annum; but no one will say that a change in the circum-
stances of the country to that extent is of itself sutEctent to
cause an abandonment of the expectations which the coun-
try has been taught to entertain witll regard to the extinc-
tion of the income tax."
Up to 188, therefore, we find the Chancellor of the Ex-
chequer declaring that he was bound by the most solemn
pledges that he must positively redeem those pledges, that
he depended on the falling-in of the Long Annuities to en-
able him to reduce the income tax ; and now, when these
annuities have fallen in, he feels it to be his first duty to
apply the amount in the remission of indirect duties, and
not of income tax. (Cheers.) There is something more.
The right hon. gentleman says, in reference always to this
,reduction of the income-tax :
"An hon. member, I think very naturally, cries out for_
the abolition of the paper duty ; another gentleman calls for
the extinction of the hop duty ; another speaks in a nYosti
touching manner of the advantages to bo derived from the

with a deficiency. My noble friend the President of the
Council, in his opening speech, stated that some further
concessions, which were estimated at £lOO,OOO, had been
made. When we come to look at other questions, I think
it will be manifest that even in the present year the Chan-
cellor of the Exchequer has landed us in a most formidable
deficiency, and to that you wish voluntarily, spontaneously,
and unnecessarily to contribute to the amount of a million
by the abolition of the paper duty. (Cheers.) The
miscellaneous estimates are seven in number, and they
were taken at £7,500,000. The six already presented
amount to £6,644,000. The seventh has not yet been pre-
sented, but if the estimated amount for the whole be
£7,500,000, it follows that for the seventh there is only left
the sum of £855,000. The similar article for the miscel-
laneous estimates last year amounted to £1,128,239, and
therefore, to bring it within the seventh estimate with
the stipulated amount of £855,000, you must accomplish a
saving this year of £272,000. But on the whole of the re-
maining £6,644,000 you have only effected a retrenchment
to the extent.of £107,000, and I therefore leave your lordships
to conjecture what chance there is of your saving £272,000
out of a total sum of £855,000. (Hear, hear.) We are told
that in the budget credit was taken for a vote of £500,000,
which, I suppose, mist be taken in addition to the sums
voted for the military and naval forces engaged in the Chinese
war. And, therefore, by whatever amount the expenses of
the war in China exceed that vote of credit of £soo,ooo—and
we may be sure that it will not be a trivial excess—by so
much will there be, on the showing of the Chancellor of the
Exchequer, an addition to the deficiency in his budget for
the present year. I should like to hear some explanation
on this point, and perhaps the noble lord the Under Secre-
tary of State for the War Department will enlighten me on
this subject. lie will remember that the Army Estimates
were taken back and altered after they had been laid on the
table of the house, in consequence of the arrangements of
the Government having been materially interfered with by
a number of troops which were sent back from India. They
were altered, but they were increased by a very small
amount indeed. I want to know the meaning of this. The
establishment was added to by 1,900 men, in addition to those
charged on the previous estimates, and those men had, I
suppose, to be clothed, provisioned, and stores found for
them ; end yet, although a slight addition was made on ac-
count of the men, I find no addit ion for any articles of cloth-
ing, provision, or storage. I want to know how this addi-
tional expenditure is provided for, since it does not appear
in the budget. I believe the vote of credit of £500,000 will
be mainly absorbed by these items ; but at the present mo-
ment we are unable to obtain the slightest information on
the point. In the budget for the present year no reference is
made to any contemplated outlay for fortifications with
a view to the defence of the country, and yet we
.are given to understand that it will be necessary to ex-
pend a large sum of money in this manner. Any portion
of this charge -which may be incurred in the present year must

.__.;r ------

abolition of the malt-tax. Some of these proposals may be had produced the estimated amount even without the eys-
unreasonable, and some of them ma) be and are very rea- tern of refreshment houses which formed part of the &an-
eonable ; but at this time, owing to the state of our expen-
eial scheme of the Government. It was possible that there
diture, we are not only precluded from the process of
mightre-
be a ficiency next year, but that -was a matter
dustier of debt, but pro hided from carrying forward bene-
. which could not be dealt with at the present moment. He
ficial changes in our commercial system:'
And thereupon the paper duties, on account of the state maintained that the Government would not have been jus-
of the expenditure, could not be reduced in that year. Now tified in proposing a 10d. income-tax for a term of years in
tho estimated- eveniliture in 1858 was £67,000,000, the the absence of any knowledge whether it would be required.
estimated.income £63,000,000, leaving a deficit of £4,000,000. In conclusion, he hoped their lordships or the public would
In the present year • the estimated expenditure is not be led away by the calculations of the noble earl with
170,100,000, and the receipts are £60,700,000, leaving a de- respect to next year—calculations in which he had refused
ficit not of £4,000,000, but £9,400,000, besides those little to take into account a sum of £1,200,000 which would then
items which we won't talk about at present, notwithstand- be available.
ing which the Chancellor of the Exchequer thinks he is Their lordships then divided. The numbers were—
bound to take off the very paper duty which the state For the second reading—
-90
of the revenue prevented him from dispensing with in 1858. Present .......
14
(Cheers.) But really the number of objections which I Proxies .
could ad vance to the Chancellor of the Exchequer's' scheme, Total 104
and which have the sanction of the Chancellor of the Ex- Against,—
chequer himself, render his speech on this memorable occa- Present .............................. 161
32
sion as useful to me as my speech the ,other day was to my Proxies
—193
noble friend. (Laughter.) He considers it Of the utmost Total. ... . . ..................
itnpoitante that an accurate estimate should be taken,
not only ' for the expenditure of the current year,
but of the year following; and no Chancellor of the Ex-
chequer ever stood such an attack and such an amount
of bantering respecting his inability to produce such an
estimate as Sir C. Lewis did from Mr. Gladstone.
(Hear, hear, and laughter.) On one point the right hon.
gentleman was particularly eloquent and impressive, and
that was upon the propriety of having a large margin
in the estimates for a war in which they were engaged,
and the expenditure of which was not provided in the
budget of the year. Now, only subititute the word
" China" for " Persia," and you might at the present
moment read to the right hon. gentleman from his own
speech just that which he then read to Sir C. Lewis :
" When we recollect that we have to carry on two wars .
in the East, and that the right hon. gentleman has not
called upon us to vote any money for the expenses of
those wars ' • that among all the votes he has submitted to
Parliament he has not asked for one farthing for the Chi-
nese war, while, with respect to the Persian war, he finds it
the most convenient course to keep it as long as possible out
of sight—can you believe, with these considerations before
you, that the right hon.. gentleman is correct in his esti-
mate of £900,000 surplus ? He confines himself, as to the
Persian war, to covering the expenses of last year, anddoes
not call upon us to vote any money for its charge in 1857-8.
If there be any life in the House of Commons, any sense of
its constitutional duty, it will not allow the Persian war to
be conducted on those principles. I give the fullest notice
that I do not understand it to be the function of the repre-
sentatives of the people, while attending in this house, to
allow wars to be begun by the Government, to be carried
on by the Government, without any explanation or estimate
of the charges being submitted to us until after the conclu-
sion of the war. After the money has been spent and the
lives of our countrymen sacrificed, the little bills are pre-
sented, and we are told by the Chancellor of the Exchequer
that we have nothing to do but to consider how they shall ,
be paid. That is not my understanding of our duties as
representatives of the people. If the Government form
such an estimateof our duties, I tell them that I for one will
never conform to that estimate, and if the House of Com-
mons shall be of the same determination as myself, we
shall invite the Government to give us a distinct explana-
tion of the character and expenses of those wars. If they
decline our invitation we shall urge them to do so ; and, if
they still refuse, we must coerce them by our votes to
gives us an estimate of the expenses of the Persian war,
that we may know precisely what it is before the war goes
further, and not allow ourselves to be kept in ignorance of
it until the war is over."
One point more. The budget is proposed to be taken, not
for a period of three years, which has the high approbation
of the noble duke opposite, and which, according to him,
would give time for the great commercial change which he
thinks very desirable, but it holds good for one year only;
and it is to be taken for that peripd for the purpose of en-
abling the future Parliament, hoivever constituted, to deal
freely with the finances of the country at a moment when
you have created a deficit of £12,000,000, and by repealing
the paper duties have dried up that source for supplying
the deficit. What did Mr. Gladstone say in March, 1857 ?
" The hon. and learned member for Newcastle (Mr.Head-
lam) says that the only way to keep the income taxunder our
control is to vote it from year to year. Now, I beg leave
to differ in opinion altogether from the hon. member. I
believe that the-transition from voting it for a term of years
to that of voting it from year to year is the sign of another
transition which we should endeavour by all means to shun,
namely, a transition from a solid and steady system of
finance to a vacillating and merely provisional system of
finance."
(Cheers) I leave it to the right hon. gentleman, with all
his eloquence and ability—and no one admires theni3more
than I do—to reconcile these two principles. One more de-
claration on the subject of finance was made by the right
hon. gentleman in 1857. He said the house was called on
to take a burden off the shoulders of the wealthy classes in
order to impose ta• es on tea and sugar, which wore arti-
cles consumed by the poor man ; that he entertained a de-
cided opinion against such a proposition ; and that before
the Speaker left the chair, if health and strength re-
mained to him, he should endeavour to induce the house,
whatever taxes were proposed, not to levy more on the tea
and sugar of the poor man. I have endeavoured, my
lords, to show, and I said I would at the outset,
that whatever objections I entertain to this budget—
namely, because of its improvident character, because of
its rendering it absolutely impossible to take off the in-
come-tax, because of the necessity which I conceive we
are under of looking forward to the rescurces of future ,
years, and because of the impropriety of reducing the
taxes on. the rich man's luxuries, while we retain those
on tea and sugar,—in these objections I am supported
by the recent, repeated, eloquent, and energetic declara-
tions of the Chancellor of Exchequer. Once more I do
not object to the repeal of the paper duties if you can
afford to do so, but I do object, when cur finances are in
au undue, or rather in a hopeless deficiency in
1861-2, and when, with the prospect of foreign
disturbances, of greatly increased taxation, of a large
military and naval expenditure, with the necessity of in-
curring great expense in fortifications and in the national
defences, you voluntarily deprive yourselves of a source of
permanent revenue, collected without difficulty, and yield-
ing £1,285,000 a-year. I should like to hear from the noble
duke opposite a declaration on the part of the Government
that they have nothing in common with the principles an-
nounced by those who are described as forming the Man-
chester school ; but whatever may be the intentions of the
Government, they are by their acts playing into the hands
and furthering the avowed objects of that party. (Hear.)
What is the announcement of that party ? The announce-
ment made—not concealed, but openly proclaimed—is that

Majorit ........................ 89
The announcewent of the numbers by the Lord Chancel-
lor was received with cheers from the Opposition benches.
There was also some cheering in the Strangers' Gallery,
which was immediately suppressed by the officers of the
house.

PUBLIC IMPROVEMENT BILL.

On the order for the third reading of this bill,
The Marquis of SALISBURY made some objections
to the measure, and, after an animated conversation
across the table with the Earl of SHAFTESBURY, the
noble marquis, there being only 14 peers left in the house,
called for a division; on which
The numbers were--

Content
Non-content
Majority against the third readirig -2
Their lordships then adjourned at ten minutes to two

9' cloc k .

HOUSE OF COMMONS.—(YESTERDAY4
The SPEAKER took the chair at four o'clock.
PRIVATE BUSINESS.
,The Lords' amendments to the following bills were con-
sidered and agreed to, and the bills were ordered for third
reading .—Chard Railway,- Midland Railway (Burton-
upon-Trent Branches and Deviations), Midland Railway
(Rowsley and Buxton Lines), Midland Railway (Station
in St. Pancras, &c.), and Widnes Gas and Water.
The following bills were read a third time :—Cilgwrgan,
Bettws, and Tregynon Road ; Moy
.River Navigation;
North and South Lanarkshire Roads.
The following bills were considered and ordered for third
reading :—Bedford and Cambridge Railway ; Blyth Har-
bour and Dock; Grand Surrey Docks and Canal; High-
bridge Markets and Gas ; Macclesfield Gas ; Torquay Gas ;
and Watford, Rickmansworth, and Uxbridge Railway.
The following bills were read a second time :—Letter-
kenny. Railway; Royal Naval School; and Waterford and
Limerick Railway (No. 2).
EAST INDIA ARMY.
Sir C. WOOD moved an address for copies of report of
Mr. Hammach on comparative cost of line and local armies
in India; of report of political and military committee of
Council of India ; and, of other minutes and papers on the
same subject.—Ordered.

THE DISPATCH OF M. THOUVENEL, &c.
Mr. KINGLAKE gave notice that he would draw the
attention of the house to the recent despatch of M. Thou-
venel relating to the affairs of Italy.
REFORM OF PARLIAMENT.
Lord J. RUSSELL moved an address for copies of the
Reform of Parliament (England) Act, 2 and 3 Will. 4, c.
45, and of the several acts amending the said act.—Ordered.
FREIGHT MONEY.
Sir G. B. PECHELL asked the Secretary to the
Admiralty if any steps had been taken (on the
recommendation of the late Naval Commission) to
abolish the present systemof sharing freight money for the
conveyance of specie, jewels, or treasure, on board her
Majesty's ships ; one• fourth share being paid to the
admiral on the station, two-fourths to the captain
of the ship who signed the bill of lading or
receipt for the same, and the remaining one-
fourth share only being paid to Greenwich Hospital for the
use of the institution.
Lord C. PAGET said that the subject was still before
the commission, and was under the consideration of the
Government.

THE INSURRECTION IN SICILY.
Mr. KINGLAKE asked the Secretary for Foreign
Affairs a question of which he had given private notice, as
to whatviewwas entertained by the other Powers of Europe
in reference to the Sicilian insurrection, and particularly as
regarded France?
Lord J. RUSSELL said he could not give the informa-
tion required by the hon. member, but he could state that
Austria and Spain were determined not to take any part
one way or the other.
REFRESHMENT HOUSES AND WINE LICENSES
BILL.
The CHANCELLOR of the EXCHEQUER moved
that this bill be recommitted, in order to consider the
amend ments.
After a few words from Mr. AYRTON, the bill was re-
committed, and several clauses agreed to.
Mr. HUNT moved, in clause 12 (as amended), litie 39,
after " respectively," insert "or that the applicant has
within three years been convicted of any offence, or that
the applicant having within three years held a license to
keep a common inn, alehouse, or victualling house, has
been refused a renewal of such license." After proviso add :
—Provided also, that in the event of any proceedings in
par uance of such summons being still Landing, and the
said Lord Mayor, metropolitan police magistrate, or jus-
tices, being unable to dispose of the same within the time
limited for the making of objections as afores2id, it shall
be lawful for the said Lord Mayor, metropolitan police
magistrate, or justices, to give notice to the
said sapervisoF that such proceedings are so pending; and
the said license shall not be granted until the said super-
visor shall have had notice from the said lord mayor, me-
tropolitan police magistrate, or justices, that such proceed-
ings have been disposed of, which notice he or they, as the
ease maybe, is or are hereby required to give immediately
upon the termination of such proceedings.
The amendment was agreed to.
The CHANCELLOR of the EXCHEQUER moved
an amendment, the object of which was to
give the police a more efficient control over the
houses having mine licenses. The right hon. g.mtleman
also p-oposed different other amendments, which were of a
mere verbal character.
On clause 13 some discussion arose, in the course of

which •
The CHANCELLOR of the EXCHEQUER said that
the object of the clause was to require from parties applying
for licenses every test as to character, and to supply the
magistrates with facilities for obtaimng information of a
reliable description in respect to the same.
Mr. LYALL moved an amendment, the object of which
was to afford magistrates additional means of acquiring in-
formation as to the character of persons applying for
licenses.
Mr. AYRTON contended that the clause was completely
illusory, and that practically justices of the peace
should have no restrictions imposed on them in decid-
ing the character of persons applying for licenses.
(Hear, hear.) Ho believed that the Government
were quite aware of the illusory character of the bill, and
that it was intended to enable persons to obtain a licenss
for the sale of wine whether they had a good or bad cha-
racter.
Sir J. SHELLEY supported the clause.
Mr. BENTINCK said he believed the effect of the bill
would be to operate injuriously on the morality of the
country. He considered that there should be some check
on persons of bad character opening houses for the sale
of wine, and he thought that the tendency of the
clause was to afford such persons facilities for establishing
themselves in the wine business.
The CHANCELLOR of the EXCHEQUER said he
believed the general opinion of the committee was, that the
clause would have an effect directly the reverse oethat pre-
dicted by the last speaker.
After some further discussion the amendment was
agreed to.
The clauses to 20 inclusive were agreed to.
On clause 21,
Mr. AYRTON said he believed the effect of the clause
instead of promoting a taste for foreign wine in this coun-
try would lead to the consumption of an injurious com-
pound, and encourage intemperance.
The clause was agreed to.
The remaining clauses were also agreed to.
The CHAIRMAN, after a few words from Mr. AMTON
and Mr. NEWDEGATE, reported the bill to the house, and
the report is to be brought up this day.
The Bankruptcy and Insolvency (Salaries, &c.), Bill
passed through committee.
BANKRUPTCY AND INSOLVENCY BILL.
On the order of the day for going into committee on this
bill,
Mr. CRAW FORD presented a petition, signed by 12,000
merchants and inhabitants of the city of London, praying
that no unnecessary delay be given to the passing of so
important a bill.
Mr. VANCE objected to the extension given by the
bill to the jurisdiction of the County Courts, as, in his
opinion, it would bring many important claims before
judges net accustomed to adjudicate on such matters. The
denial of the right of appeal was also open to the gravest
objections.
M . BRISCOE thought sweet of injustice would be com •
mitted on the messengers of the Court of Bankruptcy unless
they were adequately compensated.
theAhts a few
e wentwionrtdoscfrmommn
Mr. WALPOLE moved the omission of certain words
illtltre.eLoEnstLhEeYbailni.d Colonel SYBIS
in clause 2 relating to the future duties of the Commissioners
of Bankruptcy as district commissioners.
The ATTORNEY-GENERAL would agree to rest-let
ohuegritnthdencodniismtriisestisno ers ought not to
thseiirreFm.pkoyEmLeNotht
fromhd ew M his Mamendment.EL
it
have duties imposed on them which they had never con-
tracted to discharge.
Mr. BOWYER, on clause 7, entered a strong protest
against any new courts of justice with only one judge.
Amfrt.e
„sr
vaAf eLwr
wastro. IhiaEvNe Ltnsv,o,
oe
03: pa 1
year,ain ed
and the reasonsh is deputy
rOemLEarkwsit
to
'rho ATTORNEY-GENERAL, on clause 13, in reply
w h why
rt the
rneeewmjaVthgps
only £4OO.
An animated discussion took place also on the clause, as
to the system of compensation and pensions for the retiring
officers of the Courts.
In a subsequent clause, Mr. WALPOLE proposed that
the Judge of Bankruptcy should be chosen from one of the
present Commissioners
The ATTORN EY-GENERAL could give no pledge on
the point, as he was not consulted on such appointments.
A division arose on Mr. BOUVERIE'S amendment of
clause 22, as to the expediency of reducing the salaries of
the successors of the present district Judges from £1,860
to 4500 a year. The motion, however, was negatived,
the numbers being—Noes 69, Ayes 68.
Clause 22 was agreed to after a division, in which the
Ayes were 118, and the Noes 38.
Clause 23, on the transfer of the bankruptcy jurisdiction
to the County Courts, gave rise to much discussion on an
amendment of Mr. BOUVEKIE, that the jurisdiction pro-
posed should not be extended to County Courts, which was,
however, ultimately negatived.
The Chairman then reported progress, and the house
resumed.
The Consolidated Fund (L 9,500,000) Bill was read a third
time and passed.
The other orders of the day were then disposed of, and the
house adjourned at a quarter to one o'clock.

they will effect a change of taxation and so cut down the
indirect taxes as to make the whole dependence of the country
be upon direct taxation ; and the pressure of that direct
taxation, they anticipate, will be so grinding and so odious
that, whatever the circumstances of the country may be,
war will be avoided, because no party will incur the expense
necessary for carrying it on. (Hear, hear.) That is the
avowed object of those persons. They say, "Wo will
secure peace by taking away the power of making war
by throwing the whole burden of taxation on direct
taxation, and making the pressure odious. (Hear, hear )
The Government have quite different views, I have no
doubt ; but if they hai the same objects they could
not more effectually promote them than by the system of
finance they are encouraging. (Cheers.) Ido not, there-
fore, solely on account of the amount, though that is consi-
derable, object to the abolitionof the paperduty, butbecause
you ate taking away an important branch of revenue, and
are establishing a principle contended for by those parties
who, by weakening the financial condition of the coun-
try, desire to effect the purposes they have in view.
For these reasons of political as well as financial ha
portance I object to the proposition of the Government,
and shall not feel myself justified in giving my assent
to it. (Cheers.) I have troubled your lordships at
greater length than I desired, and in closing my ob-
servations I will again avail myself once more of that
valuable speech to which I am. already so largely in-
debted : and I will read the passage in which the right hon.
gentleman sums up his objections to the budget of 1857 in
language more eloquent and forcible than any I could use.
I shall not, therefore, add a single word to the concluding
observations of the right hon. gentleman. The noble lord
then read the following passage from Mr. Gladstone's
speech on the 20th of February, 18b7
" I feel strongly upon this subject, and I dare say I have
expressed myself in strong language. I hope it has not
been stronger than the occasion demands. I confess I
do feel strongly the nature of these propositions. I
will conceal nothing. I may be wrong and my
judgment may err, like that of other men ; but this is the
first time—l will not say that I have heard a defi-
ciency recommended and sanctioned by the Government,
for, and unfortunately, I have heard that, in principle it
was quite as bad as this proposition, though in degree it
was entirely different ; but, certainly, that I have heard
propounded from the Treasury Bench by the Chancellor of
the Exchequer a plan which seems to threaten to throw the
land into financial confusion. I felt that it was our duty to
strip the veil from a statement which was certainly calcu-
lated to convey false impressions to the country, and from
the discharge Of that duty I could not shrink. Every
year that a man lives he learns to estimate more humbly
his own powers. He must be content to see remain
unaccomplished much that he may earnestly desire, but
in this free, happy country there is one privilege and
one corresponding duty which remains to man—
it is to bear bis testimony in open day to the duty and the
necessity of maintaining public obligations, and to strip
away every veil from every scheme which tends to under-
mine this principle. That duty, with the indulgence of the
house, I have endeavoured to discharge. No consideration
on earth would induce me by voice or by vote to be a party
a financial plan with regard to which I feel that it under-
mines the policy which has guided the course of every great
and patriotic Miiiii-ter in this country, and which is inti-
mately associated, not only with the credit and the honour,
but even with the safety cf this country."
The noble lord then resumed his seat ami t load cheers.
Earl G RANVILLE, who, in consequence of the noise
which prevailed in the house, was very imperfectly heard,
briefly replied. lie wo-.. understood to say that he could not
follow the noble earl who pal} just spoken into the many
questions of detail which he had submitted to their lord.
ships, but he wished to protest against the statements which
the noble earl had made to the house. He emphatically de
nied that the financial scheme of the Chancellor of the Ex-
chequer was that of a gambler who played at double or quits_
Such a phrase could not properly be applied to a person
who merely repeated an experiment which had been found
eminently successful. Nor was it correct to say that there
would be a deficiency in the present year, unless, indeed,
there came in claims on account of the Chinese war which
it was impossible to calculate or foresee. The wine duties
in the Short time which had elapsed wince their reduction

DENSON'S WATCHES.
" Perfection of mechanism."—Morning Post.

Gold
Silver 2to 50 guineas.
Send 2 stamps for Benson's Illustrated Pamphlet, descf p-
tive of every construction of watch now made, with their
prices.
Watches sent to all parts of the kingdom free by post, or to
India and the Colonies for ss. extra.
33 an'l 34, Ludgate-hill, London, E.C. Established 1749.

THEATRE-ROYAL, lIAYMARKET.
LfSiee, Mr. J. B. Bukstone...
THIS EVE.NING, will be performed TIIE FAMILY
T SECIIE. Messr4. Chippendale, Howe, W. Farrell, Villiers,
Buckstone, Mrs. B. White, Mrs. Fitzwilliam, Mrs. 'Wilkins,
and Miss Amy Sedgwick.
After which, A CURE FOR LOVE. Mr. Buckstone.
To conclude with THE BOARDING SCHOOL.

ROYAL PRINCESS'S THEATRE.-
-Ali Lessee, Mr. A. Harris.
THIS EVENING, OTHELLO. Mr. Phelps.
To conclude with the extravaganza of THE SYLPHIDE.
Miss C. Lcclercq, Miss Louise Keeley, Miss Helen Howard,
Miss Rose Leclercq, Mr. Shore, Mr. Saker, and Mr. Frank
Matthews,

Commence at 7.

ROYAL LYCA
COMEUMIQUE. THEATRE.-
OPER

Under the management of M. LAURENT, Sen.
THIS EVENING, the first representation of Ambroise
Thomas's favourite Opera Bouffe, in two acts, LE CAIL)
Virginia, Madame Faure.
To conclude with LES DETJX DIVORCES.
Commence at eight o'clock.

ADELPHT, NEW THEATRE-ROYAL.
Sole froprletor and Manager, Mr. Benj. Webster.
Ee-appearance of Mr. and Mrs. A. Wigan—Third week of
the populae American Actress, Miss Julia Daly.

THIS EVENING (eighth time), ITS AN ILL WIND
THAT BLOWS NOBODY GOOD. Messrs. Alfred Wigan,
J. L, Toole, Stuart, Billington, C. J. Smith, Ward, Mrs. A.
Wigan, and Miss 11. Simms..
After which, OUR FEMALE AMERICAN COUSIN.
Messrs. Stuart, C. Selby, Billing-ton, Eburne, Miss Julia
Daiy, K. Kelly, Laidlaw, and Mrs. Chatterley.

To conclude with THE BIRTHPLACE OF PODGE RS.
Massrs. J. L. Toole, 14,:burne ; Mrs. Chatterly, Miss K. Kelly
Box-office open from 10 till 5.
Private boxes, £2 2s. ; Family Boxes, It
Orchestra Stalls, ss. ; Balcony, 4s. ; Front Circle Stalls, 3s. ;
Pit Stalls, 25.; Pit, ls. 6d. ; Amphitheatre, is ; Gallery, ficil
-

Acting Manager—Mr. Wm. Smith.

ROYAL ST. JAMES'S THEATRE,
King-street, St. James's. Lessee, Mr. T. B. Chatter-
ton. Directress, Miss Wyndham. The nearest Theatre to
Chelsea, Pimlico, and Westminster, the Park being open to
carriages and foot passengers all hours of the night.
THis EVENING the performances will commence with
a new and original comedy, entitled A FRIEND IN NEED.
F Robinson, C. Young, Arc.
To be follow:Al by DIDO.
After which, A CHANGE OF SYSTEM.

Reduced Prices—Gallery, 6d ; is. The Box-office open
from 11 to 5 daily. Doors open at half-past six ; perform
awe commences at 7.

A STLEY'S ROYAL AMPHITHEATRE.-
_ Proprietor, Mr. Wm. BATTY.
Thirty-seventh Night of the GREAT MILITARY SPEC-
TACLE. In compliance with numerous inquiries at the Box
Office, the Management has arranged to give Four Grand
Mid-day Performances during the Whitsun Holidays, viz.—
on Whit-Monday, May 28th, Tuesday, 29th, Thursday, 31st,
and Saturday, June 2d. The Entertainments will consist of
a Recherche Display of Equestrian Performances and a
Light pleasing Dramatic Piece; commencing each day at
Two o'Clock.
On MONDAY, MAY 21, 1860, and during the Week,
The Grand Hippo-Drama. " THE HISTORY OF A FLAG."
Wondrous Scenes in the Cirque, supported by the most
talented Equestrian and Gymnastic Artistes in the World.
Concluding with a Laughable Farce.
The maznificent Chandeliers manufactured by Messrs. Da-
iries and Sons, Houndsditch.

Dom s open at half-past 6, performance commence at 7.
Box -office open daily from 11 till 4.
Stage Manager—Mr. W. WEST.

CANTERBURY HALL CONCERTS.-
THIS EVENING.
C. H. GOUNOD'S OPERA,
FAUST.
First Time in this Country.
Faust Mr. Henry Herbert.
Mephistopheles Mr. C. Bernard.
Siobel Mrs. Anderson.
Marguerite
Conductor Mr. Jonghmans.
And selections from
Dinorah, Trovatore, Macbeth, and numerous other
Entertainments.
Balcony, is, Hall. 6d.
Comic Vocalists —Messrs. George Hodson (the Irish Come-
dian and Mimic). and W. T. Critchfield.
The AFRICAN OPERA TitOUPE, their first appearance
since 1852, consisting of ELEVEN STAR PERFORMERS,
who will give the whole of their inimitable entertainment
every evening.
The gallery is open from 5 till 11 on Sunday Evening.

THE WEATHER.-Syx OFFICE, MAY 22, 1860.

THERMOMETER, IN THE SHADE.
69—highest since noon yesterday.
53—lowest this morning and during the night.
72—this day at noon.

BAROMETER-30.37.
WlND—South-Easterly; light, with fine weather, but
sultry.

HIGH WATER AT LONDON BRIDGE.

Tula DA-T.—Morning, 2h. 40m.—Afternoon, 2h. 59m.
To-movatow.-Morning, 3h. 18m.—Afternoon, 3h. 38m.

(
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+4 41‘," • 11 0

THE SUN.

LONDON, TUESDAY, MAY 22, 1860.

St Martin's Hall and the penny newspapers have
defeated themselves more completely than ever we
had anticipated. We felt little doubt that every
threat would call forth hostile votes in the House
or L9rds, but we did not expect that the majority
would be Rearly two to one against yizading to
intimidation. More than one of their lordships,
the most venerable of them all especially, adverted
to this meeting and its deputation, in a manner
which showed how little they felt disposed to bow
to its behests. And the similar tone of the " Man-
chester school" all over the country had doubtless
no little influence on the division.

We must confess that, in regard to the constitu•
tional question, the Lords had much to say. They
freely conceded that, constitutionally, they had no
right to originate, to alter, or to amend a money
bill; but they seem to have all authority, and some
precedents, also, in their favour, as to their right to
reject a bill of Supply as a whole. Not only
the books, but even the Commons themselves in
conferences with the Lords, had admitted that
"the Lords had a negative to the whole." Some,
perhaps, of Lord LYN D HURST'S precedents could not
be fairly reckoned as such. For the 'reuse of Lords
to decline abolition "fees," and similar payments,
was altogether in keeping with the Conservative
character of that body, but there were other cases
mentioned by him and by Lord MONTEAGLE which
could not well be got rid of. That of 1811 espe-
cially, when it was proposed to lower the duties on
molasses, on account of the high price of malt—a
repeal of a duty of obvious advantage to distillers,
and to the consumers of their manufacture. Yet
the Lords refused, and the Government acquiesced,
and modified their measures accordingly. The
case also of refusal to assent to the bill for
lowering the duties on tallow in 1758—was not
met by Lord CRANWORTII, probably cannot be.
indeed, the result of the discussion is to leave it a
settled question that the Lords have not only a
technical but a constitutional right to reject any
money bill as a whole.

All, therefore, turned upon the prudence of doing
so in this special case. And we cannot doubt that
very many of the lords were strongly influenced by
the consideration pressed by Lord CHELMSFORD.
The right had been so questioned out of doors,
and such solemn warnings uttered, that "his
n)ble and learned friend seemed to consider
there was some evil impending over them
if they rejected this bill. He must say he
thought their lordships would incur a much greater
danger by refusing to take the course suggested to
them, because they would really show that they were
mere cyphers in the Constitution, and that they had
no power whatever upon any occasion when the
magical name of a money bill was mentioned, even
when the publ_ic were most deeply interested.
If their lordships lost this opportunity of showing
that they had power, upon an occasion when they
might do the greatest possible good to the public,
they would depose themselves—they would refuse to
exercise those import ant functions which belonged
to them as a part of ate constitution, and they would
certainly bring on themsflves infinitely more mis-

chievous consequences than they had been threat-
ened with by the noble and learned lord opposite
by adopting the amendment."
If the Lords thought it a matter of prudence to
save their rights when they seemed to be questioned,
no one can deny that the financial case might be
made almost as strong as Lord DERBY could desire.
Figures are not generally supposed to be his de•
partment, yet into them he plunged with a zest
which showed his strong conviction: He surpass d
the ex-Chancellor and the present Controller of
the Exchequer, Lord MONTEAGLE himself, and cer-
tainly made it as clear as figures taken from Mr.
GLADSTONE'S statements themselves could do, that
we must in the coming year be landed in a serious
deficiency, and that for the present year we should
have a deficit rather than a surplus.
He did not contend that the House of Lords ought
capriciously and lightly to interfere with the ordi-
nary course of assenting to all bills relating to
taxation as sent up by the Commons, but he cer-
tainly made out a strong case for affirming that
this was one of the exceptional cases. lie had
shown from the statements of the Chancellor of the
Exchequer himself that the deficiency must be
£2,268,000 in 1861-2, and would probably be much
more, while the present year would leave, according
to the same statements, no surplus towards meeting
it, but rather the reverse. Some may hold that,
even in a case like this, the Lords ought to bear
with the Commons the entire responsibility of the
finances of the country ; others will think this just
the case in which the Government ought to equalise
the movements of the State financial-engine.
It is evident, too, that the Lords are disposed to
thwart the influence of Manchester counsels on the
Government. Perhaps Lord DERBY was a little
hard upon the Government here, since in the
balanced state of parties, that small and ener-
getic clique hold so much the turn of the scales
in their power that even his own party could not
do without their aid when they were last in power.
The movements of BRIGHT, and his tail, are now as
nervously watched as used to be those of O'CoN-
NELL and his tail. The Manchester school, how-
ever, will now see how they are estimated by the
august school which has refused to repeal the
Paper Duties at their command. "I am charmed,
said Lord DERBY, to hear the noble duke declar-
ing, on the part of the Government, that there is
nothing in common in their principles and the prin-
ciples of the Manchester school ; but whatever may
be the intentions of her Majesty's Government
they are by their acts playing into the hands of the
Manchester school. The announcement made, and
openly and publicly proclaimed, is this, " We will
limit the range of taxation. We will make the
whole dependence of the country rest on direct
taxation ; and the pressure of that direct taxation
will be so grinding and so odious that whatever
may be the circumstances of the country war will
be avoided, because no one will be willing to defray
the expenses." That is the avowed object. They say
they will secure peace by taking away the power of
going to war, and that is to be done by making
direct taxation the sole source of the revenues of
the state. My lords, it is not therefere solely on
account of the revenue that I object to the abolition
of the paper duty at this moment. It is because
you are taking away an important part of the re-
venue, and, pro tanto, establishing the principles
and promoting the objects of those parties by weak-
ening the finances of the country. It is upon this
political principle as well as upon financial grounds
that I object to the proposition of her Majesty's
Government, and I shall not give my assent to that
proposition."

What the intentions of the Government are, we
cannot yet know. We presume, however, from
all we hear, that they will neither resign nor dis-
solve, but very prudently, as Englishmen often do,
" pocket the affront." Whether Mr. GLADSTONE
and Mr. MILNER GIBSON will do so in their indi-
vidual capacity, remains to be seen. Our contem-
porary, the 5 orninq Post, adverting to the large
majority, remarks :—" Of this majority so many
Peers were the habitual supporters of the Govern-
ment as to take off from the vote all suspicion of
its having been a mere party move. Under these
circumstances, we understand that the Cabinet will
accept the decision of the House of Lords, and re-
tain the tax as it at present exists."

A telegram of more than ordinary importance
apprises us that the gauge of battle has been flung
down before the Western Allies by John China-
man. One Ministerial change at any rate is there-
fore at this moment inevitable. The Earl of
ELGIN'S anomalous position in the Cabinet as Post-
master-General will have to be definitively as-
sumed by some other administrator. The Duke
of ARGYLL"wiII no longer be called upon to dis-
charge double duty by combining the temporary
responsibilities of his absent colleague, now en route
for China, with those hitherto devolving
upon his grace in connection with his own official
rank as President of the Council of Education.
A permanent substitute, and not one merely tem-
porary in his character, will. have to be selected
by the noble viscount the First Lord of the Trea-
sury. Of one thing, we presume, we may rest
tolerably well assured in regard to the
filling up of this office once more under
Lord PALMERSTON —namely, that the selection
of the noble lord will not fall this time
upon the most honourable ULICK, Marquess of
of CLANRICARDE. The appointment of that noble
marquess, as Postmaster-General, towards the close
of the PALMERSTON Administration was ominous
of the collapse that followed so soon afterwards.
Hardly had the Marquess of CLANRICARDE been
installed in St. Martin's-le-Grand, when the
strong Government was discovered one fine day
to be comatose. And we all know that the
state of coma is often only immediately anterior
to that of a full stop,"whether in the career of a '
Cabinet or in the gradations of grammatical punc-
tuation.

It is scarcely, however, so much in reference to the
Ministerial modifications the intelligence brought
by this Asiatic telegrame involves, that the signi-
ficance of the important intimation it contains is
to our thinking so peculiarly deserving of our
consideration. It is rather, we would say,
at once in its vital bearing, on the one band,
through our chief alliance, upon our foreign rela-
tions ; and, on the other hand, through our financial
complications, upon our internal government. The
Chinese having, as we learn through this telegram,
definitively and peremptorily refused to accede to
our propositions, there result from this point-
blank rejection of the Ultimatum jointly
submitted by France and England to the Councils;of
the Celestial EMPEROR at Pekin, two grand and
obvious consequences. First of all, it will bind
together yet more closely at the actual seat of war
the warlike interests of the two leading Powers of
Europe, of the two great races, we may say, who
are foremost in the march of natidern civilisa-
tion. Secondly, the drain upon the Exchequer
Chinawards is now pretty safe to be far more con-
siderable than was anticipated two months ago by
the Chancellor of the same in his gigantesque and
picturesque, but singularly rash and glaringly ex-
perimental financial statement. There is a tro-
bability, there is more than a: probability merely;