The Sun.
London, England, 1867-04-05 00:00:00

the failure of the barley harvest. Coming to the
question what to do with his surplus, Mr. DISRAELI
truly enough said that it was at this point the real
difficulty of a Budget commenced. Naturally the first
inclination is to reduce taxation ; but then where to
begin is the question. Mr. DISRAELI reminded the
House that the remission of taxation irrespective of the
Income Tax, has, during the last ten years, amounted
to an average of £11,000,000 per annum. In these
circumstances he finds it difficult to fix upon any
one tax so generally obnoxious and oppressive as to
call for any special attention. There is, he thinks,
but one tax which seriously affects any particular
industry, and the balance at his command does not
enable him to deal satisfactorily with the Malt Tax.
The Income Tax is at a lower rate than ever before,
and consequently the Chancellor of the Exchequer
feels himself at liberty to pass from the reduction
of taxation to the payment of debt. He alopts
the simpler portion of the plan proposed by
Mr. GLADsroNE.last year, abandoning the more
elaborate and far-reaching part of it. He proposes
to devote a portion of the surplus to the cancelling
of £24,000,000 of debt, effecting this by means of
two sums of the Public Debt, one of £18,000,000
and the other of £6,000,000. The first amount,
now bearing over half a million of interest, will be
convertedon intoJuly 5, an annuity of £1,332,000, termi-
natinglBBs ; the other, now bearing
interest to the amount of £lBO,OOO, will be con-
verted into an annuity of £440,000, terminating on
April 5, 1885, the joint amount of the two annuities
being £1,776,000. The total charge of these
operations for the ensuing year will be £750,000,
and we have no doubt that the principle of Termin-
able Annuities, once accepted—and it has received
the sanction of the leading financiers on both sides
of the House—further progress will be made. The
only other noticeable item in the Budget is the re-
duction of Marine Insurances—a step in the right
direction—and Mr. DISRAELI sat down amid
general expressions.
mn
ns of approval from
rom both sides
of the Hu
his satisfaction at the method adopted ;

and in fact there were few dissentients.
Mr. DISRAELI, who many years since declared
the National Debt to be a " fleabite," an
assertion provoked from him in answer he says to
a booby on the hustings, will have the credit and
satisfaction of taking some practical step 3 towards
its reduction, if not of being the first to;deal with it
theoretically. Altogether the Budget is likely to
give satisfaction within and without the House, and
we trust it will be a favourable augury of the pro-
ceedings of next week.

The recent publication of the correspondence
with Spain not only serves to confirm the worst
notions we had on the subject, but also tends to
awaken new fears and to give rise to increased ap-
prehensions. The seizure of the Queen Victoria is
indeed a most disgraceful case, and the despatch of
Lord STANLEY, dated March 30, is certain to be
read with interest by all who attach due importance
to this complicated affair. In some respects this is
worse than the case of the Tornado. It cannot be
denied that the noble Lord at the head of Foreign
Affairs has been wanting in spirit in meeting this
case, and we think that the perusal of this mo-
mentous despatch will afford universal satisfaction
to all who value justice, and wish that the dignity
of our country should be preserved in a manner
calculated to command respect. The details of the
affair furnish an instance of most unwarrantable
persecution, and one feels almost at a loss to com-
prehend how the Spaniards dare to take such liberties,
and comport themselves in a manner so totally at
variance with the principles of amity or the general
good understanding supposed to prevail between
the two countries. The Queen Victoria was seized
last January by a Spanish guarda-costa, and not
within Spanish waters ; she was on her way from
Gibraltar to Laraiche. After being seized she was
taken to Cadiz, where the crew was dispersed, and
they were furnished with money to leave. The
master of the vessel had his papers taken from him,
the name of the vessel was defaced from the stern,
and she was reported to have been found " derelict "
at the mouth of Cadiz harbour. Sometime afterwards
this was not repeated, but without information being
given to the English Consul this vessel was con-
demned on the plea that she had landed contraband
goods on the Spanish shore, and goods found in her
were sold. This " outrage, committed on a British
vessel upon the high seas," as Lord STANLEY truly
designates the occurrence, naturally gave rise to a
great deal of remonstrance, but no heed whatever
was paid to the representations of those authorised
to speak on the subject—namely, Sir J. CRAMPTON
at Madrid, and Consul DUNLOP at Cadiz.
The Spanish Minister for Foreign Affairs told
Sir J. CRAMPTON that he was sorry her MAJESTY'S
Government supposed that disinclination to do
justice to Great Britain on the part of the Spanish
Government had anything to do with the delay that
had taken place in replying to his represen-
tations. Furthermore, the Minister said that
the Minister of Finance had been instructed
to lose no time in going on with the proceed-
ings. Up to last November, however, nothing was
done, and it was not until the month of January
last, in reply to a letter from Sir J. CRA3IPTON, the
Spanish Minister announced that the Council and
Finance Minister had decided the action of the
executive. A long rigmarole follows, concluding
by the intimation that if in the final result of
the trial the British Government thought injustice
had been committed, then would be a fitting time
to treat by diplomacy. To this Lord STANLEY
makes a very fitting reply. lie declares tha
her MAJESTY'S Government regret to say that
" they can attach no weight to these tardy as•
surances extracted from the Spanish Government,

after the lapse of nearly a year from the time the
wrong was done." After enumerating some of the

worst features of the case, and the misunderstand,

ing that appears in the statement that the British

representatives of her MAJESTY did not make proper

protests and reclamations at the time, we
meet with this significant passage in the

despatch :—'

" The original capture then was

a lawless and wholly unjustifiable act ; justice,
though frequently demanded, has been denied; the

sale of the cargo and the vessel was illegal, and al
the proceedings taken against the vessel were not

only contrary to justice, and therefore void, bui

'ley must have been taken with a full conviction of
,heir illegality ; and were adopted, as her MAJESTY'S

Government are constrained to believe, for the pur.

pose, or in aid of the purpose, of covering or cou,

ceiling the original lawless act of the captain and

even of the Spanish guarda-costa."

In consequence of this decision being carried out
her-AIAJEsTy's Government decline to accept the

conclusion of General CALARGE, who proposes to

consider the confiscation void, in order that her

MAJESTY'S Consul and others may present them-

selves and defend their interests at the tribunal.
On the contrary, " her MAJESTY'S Government

must at once insist upon the immediate restoration

of the ship and cargo and their full value, and a

proper pecuniary I►4emnity to her captain and crew,

accompanied by an expression of regret addressed
to her MAJESTY'S Government for the outrage

committed on the Vritish flag." This is the proper

way to treat the matter, and we are glad to see in

this despatch something of the old spirit, that in the
days of yore made an important communication
from our Foreign-office a thing to attract the
attention of Europe, instead of the mere jargon of

words that were the practice of the " meddle-and-
muddle" policy of the late Administration. We
hope the Spanish Government will at once
consent to the proposal of the noble lord,
but whether they do so amicably or not
there can be no drawing back now, and no doubt
all who have read this despatch will agree that it

reflects the highest credit on its writer. We think
that he may be left to defend the honour of Eng-
land, and protect the interests of thosQ who have
been injured, without being molested by the imper-
tinent interference of Mr. OSBORNE, who seems to
think nothing can be done unless he is consulted in
the matter, and peremptorily insists upon a direct
answer to all his inquiries.

CORRESPONDENCE FROX PARIS.

----~ --

(FROM OUR OWN CORRESPONDENT.)
PARIS, Thursday Evening.
The chief point of interest with the Paris papers
to-day is the important speech of M. de Bismarck
in the Parliament of Northern Germany, in answer
to the interpellation of M. Bennigsen, relative to
Luxembourg. The Siecle has the following remarks
are not so clear and precise as
upon the subject The answers of M. de Bis-
marck,
apply. They do not
ihoincinhtends to withdraw from the
explaintmh ao r
situationc , i
tnh
that
tn r opinion, p i
Prussia
wn
citadel of Luxembourg the troops who are gar.
risoned there. The ancient German Confederation
of the Rhine is dissolved. The sovereign right of
Holland is proclaimed without restriction. How is
it then that you wait, and that your soldiers still
occupy a territory whigh is nct Federal? now
is it that in a communique to the Cologne
Gazette, dated the 29th instant, General
de Branchitz, Prussian Governor of Luxembourg,
declares that the statement accarding to which the
officers of the garrison of Luxembourg received
during parade the news that the conclusion of a
convention relative to the evacuation of Luxem-
bourg is an invention, contrary to truth in every
respect, and also malevolent. How is it that you
continue to observe one of the clauses of the treaty
signed at Vienna on the 3d of February, 1815, when
the state of things created by that treaty is de-
stroyed by your own hands ? M. de Bismarck ad-
mita that negotiations, the result of which he is
ignorant, have taken place between France and
Holland. To the demand made officially by the
Grand Duke, How would Prussia be inclined to
treat the proposed cession of her sovereignty ?'
Prussia replied that she would leave the responsi-
bility of it to the King of Holland ; but what would
she do in the case of the cession of the Grand Duchy?
That is what remains in doubt and vagueness.
The Prussian Government will pay deference to
public opinion, and will consult the Reichstag. It
opposes a war between the German people and the
French people. The two nations,' he says, may
live by the side of each other in peace and friend-
ship. Any war would do great injury to the pro-
gress of prosperity and civilisation.' M. de Bismarck
hopes that peace will not be interrupted. He eludes
more ample explanations, and reserves to himself
entire freedom of action. As to M. de Bennigsen,
he was at once aggressive, provoking, and violent.
We agree with the Journal .des Debats that he is a
real thunder-clap of war, and he appeared upon the
point of placing himself at the head of the Parlia-
ment to take the field and open the campaign
against France. Happily, as his colleagues were
not worked up to the same pitch of excitement, M.
de Bennigsen replaced his sword in the scab-
bard. In his eyes the Grand Duchy of Luxembourg
which has successively belonged to the Empire, to
Spain, and to Holland, is exclusively a German ter-
ritory. It is no doubt only temporarily, and for
condescension, that ha deigns to leave it to the
Netherlands.
" 'When M. Benningsen asserts that there are
hardly 200 natives of Luxembourg
who speak
French, he proves that he has never visited the
country. The orator, in considering a private letter
as the expression of the general wish, deceived him-
self. There exist differences of opinion in Luau_
bourg as well as elsewhere. The
objection which might have been made to the cession of Luzern-
bourg was that it could not be made without the
consent of the populations, and that their decided
queetien---' Ought
chuisate the fortress of
objection would invalidate it. %Ve are without in-
not the day after the
formation as to the present feeling of the natives of
Luxembourg towards France, but we believe we are
in a position to affirm that if they were permitted to
a deep
decidetheLuxembourg?
Prussian by vote,
troops
thereoype as
would
or
oo
un
leodv,
at
ballot be a single Prussian soldier in that fortress.,,
equitable.ng,lt only
that a duel took
The Constitutionnel, in a sort of semi-official
article, contends that France has no antiquated
motive to threaten the interests of Germany, and
regard thatA s
letterhfeor hwa has
from
moi
justbe
slibcaooons
de
states
teae
si
place in that city, on the 29th of March, between
Dom Jose Julis, alPortuguese deputy, and Dom sa,
de Nogeuina, aide-de-camp to the King, and nephew of the Marquis Sa Bandiera. Dom Julis
the office
was killed. A personal insult was the
cause of
hostile meeting.the
aela y a
filled
Count Gallina, Minister of State and Senator of
few days
athgeo kaitnTgdoroimo.of Italy
of Minister of Finance and Minister of the Interior.
In my account of the opening of the International
He before
dsac:
Ba4f
uB,
l died
Exhibition on Monday, I mentioned that various
presentations to the Emperor took place. The must
remarkable, perhaps, was the presentation to the
Emperor and Empress, by M. Grehau, Consul to
the King of Siam, of a Siamese mandarin. His
Excellency, who was attired in gorgeous national
costume, prostrated himself before their Majesties
in the Oriental fashion, and they accepted the
homage very graciously. M. Grehau informed
the Emperor that the King of Siam was the first
Sovereign of the extreme East who had accepted
the invitation of France to send the products of
his kingdom to •the Exhibition, and that they
were also the first articles which had been sent
across the Isthmus of Suez. The Emperor re-
quested the Consul to convey his thanks to the
King of Siam.
The General Omnibus Company, who hitherto
had 656 vehicles a day engaged in the transmission
of passengers to various parts of Paris have, in con-
sequence of the extra demand for transport to and
from the Exhibition, increased the number of
vehicles to 700. This increase of carriages with 28
places, and making 14 journeys a day, will afford
additional accommodation to 18,000 travellers a
day.

The Imperial Commission have just insured the
Palace and dependencies in the Champ de Mara for
7,500,000 f.
The Empress being slightly indisposed, a grand
dinner which was to have taken place to-day at the
Tuileries has been postponed.
There was a Cabinet Council yesterday at the
Tuileries, at which the Emperor presided.
Count Walewski has been raised to the dignity
of Senator.

The Moniteur seems to doubt the report received
in Paris by private telegram of the speedy convo-
cation of the Croatian Diet to deliberate upon a
proposal for the incorporation of Croatia with the
kingdom of Hungary.
The official journal views the speech of M.
Bismarck in a very different light from the Siecle.
It says that an accurate translation of it differs in
several points from the telegraphic version, and
" proves still more clearly the elevated sentiments
expressed by the President of the Council of Minis-
ters of the King of Prussia."

r MADAME TUSSAUD'S. The old-established
favourite Wax-work Exhibition, in Baker-street, con-
tinues to be as attractive as ever. The ftnely-executed
model of her Majesty QAtegn Victoria, size of life, is un-
questionably a faithful likeness, and is so acknowledged by
all who have paid a visit to Madame Tussaud's magnificent
galleries. The beautiful models of England's Dfonarchs,
from the Conqueror to that of our present Queen, are in
themselves alone Well Worth seeing.