The Sun.
London, England, 1860-07-09 00:00:00

Majesty.
On the Saturday following, the 26th, the great
event of the fortnight came off. It was the day
fixed for the presentation of the report of the select
committee on the Income-tax Bill to the members
of the Legislative Council. Mr. Wilson was, of
course, the spokesman. The main purport of his
speech was to declare his adhesion and the adhesion
of the select committee to the principles and details
of the bill as originally promulgated. Great changes,
described as immense improvements, had been made
with the view to simplify the machinery of the bill,
and to bring it more into harmony with the theory
and practice of the existing revenue system ; and
some slight modifications had been introduced in
one or two clauses of the bill itself; but its main
features were unaltered. The modifications may be
thus briefly described. First, the assessment of the
Zemindars, whose estates are not permanently
settled, at one-third instead of one-half of the rent
they pay to Government. The difference between
one-third and one-half is calculated to cover the ex-
penses of management, which had not previously
been taken into consideration. Secondly, with re-
ference to double income-tax---that is, to property
actually in England and subject to taxation there,
and which, under the provisions of the 'bill as it
originally stood, would be liable to taxation here
also if the owner were in this country, the select
committee recommends the exemption from Indian
taxation of all funds, except so far as such income's
may be brought into India and form part of a per-
son's means of living in this country. 3. The same
rule is to be applicable to income derived from
other property, such as lands, houses, or invest-
ments in England or in any foreign country. 4.
Pensions are to be exempted from double taxation ;
that is, to ba taxed only in the country in
which they are drawn. 5. With respect to com-
mercial profits, in cases where establishments are
kept up in England and in India, the committee
had arrived at the conclusion that the profits
of Indian houses, whether made in India or
elsewhere. so long as the business is in either
aspect Indian, should be chargeable. If, for
example, said Mr. -Wilson, "Goods are bought in
Manchester, and consigned to the same house in
Calcutta, though the profits might be made to ap-

pear in the Manchester and not in the Calcutta
books, yet the profits should be regarded as equally
Indian as English, so far as the house here is con-
cerned ; or if produce be shippel to London the
profits in like manner should appear as those of
the Calcutta firm." He added, however, that in the
case of a merchant in Calcutta who was partner in
a London house which had branches of business of
an entirely neutral kind, not involving Indian
business at all, that then that merchant should be
exempt in respect to the profits of such neutral
trade, except so far as he might import such profits
as a part of his Indian income. With respect to
Indian funds the committee had decided upon their
amenability, under all circumstances, to the In-
come-tax. Mr. Wilson showed that the prospect
of this decision had not checked the demand for
them in England, as paper to the extent of a mil-
lion and a-half had during the last two months been
enlaced for the mother country and made subject
to the Income-tax. 5. With regard to the army
and navy the committee decided that all shall be
chargeable whose net incomes and emoluments are
not less than those of a captain in the Royal Army.
Such are the modifications, I might almost de-

scribe them as explanations, of doubtful clauses

proposed by the committee to be introduced into
the bill. All the rest had their approval. This fact

alone, considering the composition of the commit-
tee, all of them being civilians, each of whom has

spent about 30 years of his life among the people of
India, with whose ways and habits of thought they
are thoroughly acquainted, ought to have some in-
fluence on the minds of those alarmists who cry
out against the bill as being the work of a man
strange to India and her people. That bill has been
accepted in all its principles by a committee of
civilians, who have been selected on account of
their " presumed ability and knowledge of the
people to represent the several Presidencies in the
Legislative Council." Of these, the member for
Madras was one; I allude to him because his
opinion regarding this bill would seem to be diame-
trically opposed to that recorded by Sir C. Trevelyan;
and yet that honourable member has passed 30 years
of his life in the Madras Presidency, and must needs
possess a far more intimate knowledge of the feel-
ings and habits of thought of the people than Sir C.
'rrevelyan can have acquired in something less than
two years. Of the labours of the Committee Mr.
Wilson spoke in the highest terms. " I should not,"
he said, "be doing justice to my own feelings if I
did not take the earliest opportunity to express the
deep obligations which not only the Government,
but the public at large owe to my colleagues who
formed this committee for the unremitting attention,
zeal, practical ability, and knowledge which they
have brought to the task."

You will have observed that among the modifica-
tions introduced into the Income-tax Bill there is
no mention of giving up the 1 per cent. for local
purposes. The whole 4 per cent. is to be levied. I
mentioned in my last a very strong impression that
this 1 per cent. would be abandoned, and it will be
seen from Mr. Wilson's speech that it was the sub-
ject of much discussion, even among the members of
the Select Committed; it was, in fact, the only point
upon which the committee was not unanimous.
The reasons, however, assigned by Mr. Wilson
for its retention would appear unimpeachable. He
pointed out that, though expended on local public
works, it could net fail to benefit indirectly the
Imperial finances ; he showed that there were
many public works which, though purely local,
are yet of such general importance that, if not
performed by the localities from local funds, they
must perforce be carried out by funds provided by
the Imperial exchequer. He alluded to the bad
state of this port, which, if not quickly rectified,
would act prejudicially on trade, and therefore
on the revenue also ; to the condition of rail-
ways, the interest of which had been guaranteed

by Government, whose duty it at once became to
hasten their extension and completion in every
possible way, in order to relieve themselves of the
charge; to the state of the roads in Bengal, regard-
ing which a minute had been received from the
Lieut.-Governor, to the effect that unless new roads
were made the development of the resources of the
country would be much retarded. These, said Mr.
Wilson, are local works, in which Imperial finance
is directly interested, and on that account, there-
fore, it is wise to retain_ them, the general prosperity
being the best guarantee for financial improvement.
I referred, also, in my last, to the idea which ex-
isted in some quarters that the bill would be
amended by raising its limit from 200 r. to 300 r. It
was found, however, that a change of this nature
would materially interfere with the productiveness
of the measure, and it was therefore abandoned.
The limit of 200 rupees will be maintained. I have
pointed out in formerletters that this limit exempts
the entire lower order of agriculturists, correspond-
ing to the peasantry in England, and who may with
propriety be termed the fighting class of the coun-
try. For the arguments contained in the speech in
support of the bill, and for the complete refutation
of the charges urged against Mr. Wilson at Madras,
I must refer you to the speech itself, a copy of which
I enclose. I need only here allude to the fact men-
tioned by Mr. Wilson, that Lord Canning, in his
recent tour through the North-West Provinces and
the Punjab, had communicated with every public
officer at every station, andfrom all he had received
the most satisfactory assurances. Not one had ex-
pressed the smallest doubt of his ability to levy the
taxes without any opposition from the people. The
fact that it had been assessed and collected in Oude
without so much as a murmur—eliciting only the
remark that it was but just that those on the other
side of the Ganges should be taxed also—spoke for
itself. Mr. Wilson also alluded to the perfect con-
currence of the Governor-General and of the
Supreme Council (composed now, besides himself,
of Sir Bartle Frere and Lord Clyde) in the prin-
ciples and details of his bill.
So much for the past. With respect to the future,
I may mention that the bill will now be brought
before the committee of the whole council, and will
probably be read a third time in about a fortnight.
It will have effect from the Ist of May of the cur-
rent year.

It is a curious and significant fact, as showing
that the Income-t?x Bill has not escaped criticism
on account of there being no critics, that while the
natives at large have accepted the principle of this
bill, and have made no demonstration against it,
considerable anxiety has been felt as to the probable
working of the new Excise duty on tobacco. In
India every one smokes; his pipe is to the peasant
an indispensable necessity, as much so as the air he
breathes. To increase materially the cost of tobacco
would, in the opinion of men capable of judging,
cause considerable ill-feeling in that very class which
it is desirable, if possible, to make contented. lam
inclined to believe that the representations which
have been made on this subject will have the effect of
inducing the Government to give up their plan of
levying an Excise duty on tobacco; but it is not im-
probable that a license to sell the " weed," similar
to that in vogue in England, will be made compul-
sory on all vendors ; the main proportions of the tax
would thus fall upon the shopkeeper, who has
hitherto contributed nothing in return for the pro-
tection he receives from the State. I mentioned
above that there had been no demonstration against
the Income-tax Bill. In confirmation of this state-
ment, as well as of the previous accounts I have
given you of the state of feeling among the great
mass of Zemindars, a on-residents of Calcutta, I may
call attention to the fact that the peat petition of
the Bengal Zemindars against Mr. Wilson's bill,
though previously announced by its framers as one
which would produce an array of names, whose
numbers and position would leave no doubt as to
the feeling of the country, received only 147 sig-
natures.

The Indigo Commission is still sitting. Nothing
of any material importance has as yet been elicited
from the witnesses who have been examined. The
fact is that the planters are engaged with their sow-
ing and cannot come in. It is a noticeable fact, on
the other hand, that the missionaries and natives,
and even civilians, who have brought forward, in
newspapers, pamphlets, and elsewhere, specific
charges against the planters, decline now to come
forward and repeat these charges on their oaths.
Many of them do not hesitate to admit that they
made these statements solely on the faith of the
assertions of ryots, and that they never personally
ascertained the truth or falsehood of those asser-
tions. The enormous prejudice which exists in the
official world against planters has caused every
charge to be accepted, no matter how gross was its
nature ; but that not one of those charges has been
substantiated, that of those who made them not one
has come forward to affirm them, are facts which
must carry conviction to impartial minds. It is
impossible, however, to guess even what will be the
real result of this committee. It is whispered on all
sides that the planters of Lower Bengal are doomed;
and certainly we have as yet seen no attempt to
trace to its source the real cause of the troubles of
the last few months, and unless that be done, the
labours of the committee will be for all practical
purposes in vain.

Oar latest news from the frontier is favourable.
General Chamberlain's force, after achieving per-
fect success, has re-entered our own territory, and
has been broken up. At the time of despatching
my last letter, our latest accounts liad left him in
front of Kaneegoom, an important stronghold of the
Mahsoods, the chief men of whom had advanced
five miles to meet the general with propositions for
peace. The terms, ho wever, were not, apparently of
a nature that could be accepted, for we find that
on the 7th hist. General Chamberlain marched on
the town, and after some slight opposition, occu-
pied• it. On the 9th he marched further into the
hills to Dootya, and on the 10th to Mukeem.
In a defile near this latter town the rear-
guard had a skirmish in which four men were
wounded. Mukeem being the largest town belong-
ing to the Mahsoods, the political agent, Major
Taylor, tried to induce them to accept reasonable
terms, and thus to save their homesteads, but with-
out effect. The barbarians would not treat with
us, although when their town was attacked they
made but a feeble resistance. On our side the loss
was only two men wounded. That of the enemy
was very heavy. The town itself was effectually
destroyed, and all the towers which formed its de-
fence blown up. Every accounts speaks in terms
of the highest admiration of General Chamberlain,
of the perfect generalship he displayed, and of the
confidence and daring with which he inspired his
soldiers. As I stated above, after the destruction
of Mukeem the force returned by way of Bunnoo
to the plains, where it has since been broken up.
The following is Lord Clyde's farewell order :
4, BY TILE CONINIANDEIt-IN-CHIEF.
" Adjutant-General's, office, Calcutta, May 26.
The labours necessary to complete the pacification of
this empire are now over. "
His Excellency the Viceroy has consented to permit
that I may resign the command of her Majesty's forces in
India, and return to England in search of a repose which
my ago and long service demand.
" Lieut.-General Sir Hugh Rose, G.C.8., who conducted
most gloriously an important part of the late campaigns,
will assume the command in my place on the 4th of June.
" OR leaving this country, I take the opportunity of
thanking the officers and soldiers of the two services for
their valour and endurance so severely tried, especially in
the early part of the insurrection.
" History does not furnish a more remarkable exhibition
of heroical resistance to very adverse circumstances than
was shown by the British troops during these mutinies.
" Tho memory of their constancy and daring will never
die out in India, and the natives must feel that, while Bri-
tain contains such sons, the rule of the British Sovereign
must last undisputed.
" Soldiers, both English and native, I bid you all fare-
well and Z roc9rci t% my latest word that the bravery and

JUNE 6.
The monsoon has not yet begun here, though a
few partial showers have fallen, and indications of
its approach are observable in south-westerly
breezes laden with clouds, so that we may hope for
a seasonable downpour in a few days' time. Mean-
time business languishes, and great stagnation per-
vades nearly all markets. The most noticeable fact
is the continued extreme abundanceof money, which
finds no profitable outlet, and the further relaxation
of the Bank of Bombay's rates on the 31st ult. by
2 per cent., leaving discounts at the almost unpre-
cedented figures of 3 per cent. for Government and
5 per cent, for short private bills. Even this had
little effect in causing applications for accommoda-
tion, the joint•stock banks lending at still lower
rates. Government paper slightly declined in value
on the arrival of the English advices a fortnight
ago, but the demand for investment has caused an
advance again, especially in Five-and-a-Halfs,
which have been dealt in at 1341 per cent. We
now quote Fours at 851, Fives at 991, and Five-
and-a-Halfs at 1051 per cent.
The tenders of the holders of Treasury-bills for
conversion of the same into Government stock were
opened at the Bank on the 2d inst., when the rates
which Government were prepared to accept
were announced to be 83 per cent. for Four,
97 for Five, and 103 for Five-and-a-Half per cent.
paper. At these, or slightly higher rates, about 60
Lacs of rupees were taken up, being nearly the
whole amount of bills granted in this Presidency.
This addition to the loans as yet produces no effect
upon the stock-market, the notes being issuable
only about two months hence.

The demand for cotton piece goods, as might be
expected, has been very small, and no great re-
sumption of inquiry can be expected until the
rains have begun, and some idea can be enter-
tained, however vague, of the prospects for the
crops now to be sown. The transactions have been
almost confined to gray skirtings, in the sale of
which, however, holders have been firm, and a
trifling advance may be quoted for some qualities.
In fact, we may consider all under 81b. weight of
40-inch to be stronger in price to the extent of 1
anna and, in some instances, 2 annas per piece.
Above 81b. we quote as before, the stock being
rather heavier of such kinds than of the lower de-
scriptions. 45-inch are very steady and saleable.
Of other fabrics no detailed report can be given,
nothing having been done worth naming,.and we
leave our prices nominally the same. A few pieces
of heavy 40. inch domestics have been quitted at
about 9a. per lb., and the stocks of these goods are
said to be small.

White shirtings of good quality are in fair local
demand at former value. Lappets are saleable
also, while dhoties, being oversupplied, are in
limited request. Some fine ylb. Turkey red cam-
bt ics have realised sr. 13a.

Cotton twist remains in the same position as
before, entirely out of demand, and no sales making
from first hands, though dealers report a slightly
better feeling in the bazaar. We leave all our
rates nominally the same, but, as stocks will
not now increase much, it appears probable that a
little firmness on the part of holders when any in-
quiry sets in will enable them to obtain some ad-
vantage in price.
Coloured yarns are unchanged in value, and
there is a fair demand for the season ; B,ooolb.
Turkey red, Nos. 40 to 50, have changed hands at
Ir. 101 a., and 3,6001 b. orange, Nos. 30 to 50, have
been quitted at 12a. per lb.
Metals partake of the general stagnation for im-
ported goods, and there aie few transactions to re-
cord. Copper in particular is exceedingly dull, so
much so that offers at lower rates fail in attracting
buyers, and nothing has been done. Braziers is
quoted 64r. ; sheathing the same ; raised bottoms,
66r. ; tile, 59 ; and ingot, 60r. Other sorts are un-
changed, but there is no demand for the moment
either for consumption or on speculation. Yellow
metal is nominally 51r, per cwt.
In iron, Swedish bars are unchanged in value,
but in little demand. British bar is in some inquiry
and the improved price of 31r. per candy has been
paid for several parcels sold together, aggregating
450 tons. A parcel of 2,000 bundles square nail
rod has changed bands at 33r. 700 bundles of
hoops have sold at 6r. 3a. Sheets and nails main-
tain their value, but nothing has been done. Pig
and sheet lead are again in some demad for China
shippers at 12r. to 13r. 75 bottles of quicksilver
have been quitted at 41r. Spelter is unchanged
and in fair inquiry. Steel is wanted, and a parcel
of 50 tons fagot has found a market at 13r.
Beer is in good demand, and little is left in first
hands. We quote 77r. per hhd. for Allsopp and
Bass, 65r. for Tennant (both beer and porter), and
50r. to 60z. for other brands. Sales of Tennant's
beer in quarts have been made at sr. 5a., of porter
at sr. 4a., and of both descriptions in pints at
3r. 4a. per dozen. Brandy is quiet. Bottles
dull at 12a. No sales of cochineal are reported.
Cordage is wanted at 16r. to 18r. Coals are
overstocked, and dull of sale at 20r. for the best
kinds. Tar is in demand at 15r. to 20r. for
Stockholm, and 15r. for coal per barrel. Saffron is
unchanged in value ; 100 kegs of red lead are re-
ported sold at 14r. 2a.

Exports have been very dull, the exorbitant
prices asked by dealers preventing any extensive
purchases by European houses.

- Of coffee 1,000 c'vvt. of Berbera have sold at from
14r. Ba. to 15r. per cwt., but Mocha is a little lower,
say 12r. to 12r. Ba.

Cotton continued with little change until yester-
day, when a telegram from Gallo with news to the
10th ult. from England, reporting American a little
firmer, and a sudden fall in frieghts caused by nume-
rous arrivals, led the dealers to raise their prices,
and a few bargains have been made, chiefly among
themselves, at an advance. They now quote 128 r.
to 130 r. for Broach, and 120 r. to 124 r. for Dliollera
and Bhownuggur per candy, but these rates have
not been paid, while the remainder of our quota-
tions, though raised, are also nearly nominal. Very
few English houses have been in the market, and
the pripe is chiefly kept up by native purchases,
most of which go forward to the China market. It
is difficult to estimate the stock in the godowns,
and with which we shall commence the monsoon,
but it is not believed to be as large as that of last
year, which, judging from the exports during the
rains, could not have been less than 250,000 bales.
The sailings during May were 91,1431 bales to
Great Britain, and 93,8441 bales to all quarters.
Hemp is only in local inquiry. Myrabolams are
in good demand at 14r. to 15r. Bhutcole pepper
has been placed at 96r. to 100 r. per candy, Mala-
bar having fallen to 88r. to 90r.
Linseed was quiet at 4r. 2a. until the fall in
freights mentioned above, when several purchases
in succession raised the rate to 4r. Ba., which
is now demanded. Little has been done
in rapeseed, and the natives are shipping chiefly
on their own account. The prices asked are sr. to
sr. 4a. Gingelly is scarce, and 30r. per candy is

Since the sur ply of water has been more abun-
dant the yield of gold has improved and been well
maintained; but still a large proportion of the
population on the goldfields is in an unsettled state,
and many men are wasting their time for nothing.
If the number actually at work could be ascertained
t heaverageper man would no doubt be good, but with
so many idly shepherding at new rushes, or waiting,
as some of the least energetic and persevering of the
miners too commonly do, for what they may con-
sider good information of a likely place to try their
fortune, the average yield per man for all who are
classed as'producers of gold is much below what it
should be. Tlais winter the population will be even
more unsettled than usual, for many broke adrift a
month or two back from their old ties and pro-
ceeded to Snowy River, whence most of the Victo-
rian miners have returned, but only to pass the
winter ; and many who have not yet been there are
determined to go, and will require little inducement
to get rid of any encumbrances they may have, and
take part in new rushes here, if only for practice
sake, to prepare them for the more important move-
merit in the spring. This anticipated exodus has
caused no little anxiety among the merchants and
business people here, for it would be very injurious
to the trade of Melbourne if an extent of rich
ground should be found to detain a large number
of their present customers, and if these should draw
their supplies from another port, and send thither
the gold they raise also. All this is not only pos-
sible but probable too, and the imminency of the risk
has led to the adoption of a course of action which
may convert the threatened danger to a great gain
and benefit to this colony. A large part of Gipps
Land, in the direction of the Snowy River, and the
other streams which take their rise in the southern-
most extremity of the Australian Alps, is quite un-
explored, and in difference to the wishes of the pub-
lic the Government is now fitting out two parties of
the best men selected from some hundreds of ap-
plicants for the thorough prospecting of the most
likely localities near these rivers. One party is to
proceed at once to the Tambo, and explore the coun-
try between it and the Snow River, endeavouring at
the same time to ascertain where some parties of
millers who occasionally visit Sale with parcels of gold
to dispose ofare working,while the other government
party is to examine the streams more to the west-
ward, and try all those places where gold has been
already found in greater or less quantity. Assist-
ance in the way of tools and rations is also to be
afforded under certain conditions to properly or-
ganised parties of experienced miners, who, being
more unfettered in their action, and depending en-
tirely on their own exertions for any return, will
be quite as likely to make important discoveries as
the paid men. Captain Cadell, too, has been ren-
dering aid in his own peculiar way, and after an
examination of the Snowy River, declares his ex-
pectation of as great success in the navigation of it
as he has already had with the Murray and its tri-
butaries on the other side of the mountains. The
attempt is to be made, and if such should be the re-
sult, and a good road be found up the ranges from
the highest navigable point on the river, the trade
of Kiandra must chiefly pass through Gipps Land;
but we have great hopes of rich and extensive gold
fields being found within our own territory, now
that this comparatively unknown portion of it is to
be so fully explored.

On the older fields there have been few impor-
tant changes of late. Inglewood, the best of the
new ones, is quite overcrowded, although th e aurife-
rous country around it must be of much extent, and
some parts are very rich. A few days since a lump
of gold, weighing exactly 188 oz. 15dwt. after being
freed from quartz and other impurities, was found
on the surface of the ground by some men out pro-
specting in the scrub. This weighed 2200 z. in the
gross, and was covered with moss when first picked
up by lucky finders. Reefs also abound in this dis-
trict, and must be extensively worked in time. The
finding of nuggets of a good size has been rather a
common occurrence of late. One of 501 b. weight
was taken into Castlemaine last week by two men,
who would give no information as to where they
found it, but some of the many persons on the watch
for intelligence regarding the locality of their claim
have decided that it must have been taken from
Some partially-abandoned ground at Yandoit,
from a spot in which the same party of men pre-
viously obtained gold to the value of upwards of
£l,OOO each. " Nuggets of less weight have been
rather more common, and, among others, two of
600 z. and 1440 z. respectively were found by China-
men, near Creswick. The deep leads of Ballarat
have been often referred to for their extraordinary
richness, and in one of the late papers from there
some particulars of the yields from a few of the
claims on these are given. Thus, on the Inkermann
Lead one company has obtained from as much of
the gutter as they have already worked £120,000,
or £240 per foot ; another on the same lead, £26,000.
or £l3O per foot ; another, £36,000, or £l2O per
foot ; another, £28,000, or £93 per foot ; and an-
other, £B,OOO, or £5B per foot. From three claims
on the Golden Point Lead the returns are—from the
first, £18,505, or £37 per foot ; from the second,
£36,000, or £45 per foot ; and from the third,
£15,000, or £3OO per foot. None of these claims
are worked out, and returns appear large, bat it
must be remembered that the gold is found at a
great depth, and that thousands of pounds are fre-
quently expended before the gutter is reached.
Some of the shafts on the quartz reef in this dis-
trict are now down more than 300 feet, and one has
been sunk to a depth of 470 feet. There have been
some very large yields from quartz, too, within the
last few weeks, and not the least remarkable of
these was announced a day or two since. Ten tons
of quartz taken from a reef near Rushworth, in the
Goulborn district, produced a cake of amalgamated
gold weighing 6440 z. 2dwt., or close upon 64L-ox. to
the ton. Some of the newly-discovered reefs near
Morse's Creek, in the Ovens district,
have also
yielded very largely. From 39 tons taken out of
a claim on one of these no fewer than 1,7380 z.
lldwt. were obtained, or an average of 440 z.
lldwt. to the ton. Several reefs have been
lately opened in the neighbourhood of this creek,
and some of them are said to promise even better than
did the reef from which the stone alluded to was
obtained. In this district veritable diamonds have
also been found, although none of much value
have yet been discovered. Ono, about the size of a
Ps a, has been within the last few dfays submitted to
every test except the final one of combustion, and
.has been declared a true diamond by all the jewel-
lers and lapidaries who have seen it. This was
found among the black sand which abounds in the
district, and where there was one diamond there
must be more ; and for the future, no doubt, pre-
cious sto ties will be more carefully looked for than
they have been hitherto.