The Sun.
London, England, 1866-05-25 00:00:00

THE S(Th, LONDON, FRIDAY EVENING, MAY 25, 1866,

never been fully argued by him, because he had as-
sumed it as an elementry proposition,
fixed and em-
bedded for a long time in their w e,le financial
Policy. If people said that that policy sl onld be re-
east from its first elements, he granted th .y were entitled
to do so. The policy of terminable a ,uOO es being a fixed
portion of the financial system of the v ntry, the imme-
diate justification of the present measure was to be found
in this : that it was not, as the hon. and learned member
for Suffolk seemed to suppose, a great extension of that
which they had uniformly done ; it was not a marked step
in advance as comparad with the ordinary scale of pro-
ceeding; but a very partial attempt to recur to the scale of
operations with reference to the payment of the national
debt by terminable annuities—a scale which was uniformly
maintained until about five years ago. At the close of the
great war in 1815 the charge of terminable and life annui-
ties was £1,900,000. By the year 1840 this charge had
been brought up to £4,300,000. From 1835 to 1859, a
period of a quarter of a century, the annual charge in re-
spect of terminable annuities—a large part of which repre-
sented
presentiendtecraepsittaol of debt—was nddebt,tbut as bolaargeutplr,tooofo,oowho. I
ichan 1860,
by by the lapse of terminable annuities, tho charge fell to
£2,094,000; so that there was then a considerable reduc-
tion in our efforts for the reduction of debt by terminable
annuities. Since that time we had done something, but
not much, to increase the charge of terminable annuities.
That charge was now £2,400,000; and this would be still
further increased by an Act passed during the present year.
We were, however, now about £1,600,000 within the sum
that was paid for a quarter of a century before 1860; and
the Act to which he had already referred, together with
the bill under discussion, would not bring the annual
charge in respect of terminable annuities up to that sum.
He now came to the question whether we ought, as a mat-
ter of policy, to make an effort to reduce our debt. It was
said by those who argued in the negative that the debt
was held by the public at a rate of interest, say of ail
while the sum taken to pay off that debt was taken from
an industrial community who were making 5, 10, or 20 per
cent. on it. But that argument was fallacious, because it
implied that when debt was paid off there was an end of the
transaction, and the money thus expended was lost. But
that was not so, because the money employed in paying
off debt went into the money market of London, and thus
became available for cheapening capital and stimulating
industry. It was, however, said again we must not only
look to the fact that our debt had during the last 50 years
been brought down from 900 to 800 millions; that we must
also look to the fact that the country was now better able
to bear the latter sum than our forefathers were to bear a
much smaller sum. Well, it might be we were now better
able, if need were, to enter upon and maintain a long and
sanguinary struggle than our forefathers were when Mr.
Pitt entered into war with a debt of some 350 millions.

But that did not seem to him a satisfactory argument. He
should be sorry to see the financial process of that war re-
peated, for he believed it might be truly said we were only
now beginning to extricate ourselves from the mischievous
results which that war had in one way or another entailed
upon this country. It must also be recollected that while
that war entailed great burthens upon the country, it also
opened to us great sources of wealth, by giving us the ab-
solute mastery, indeed the monopoly, of the sea. That was
a thing that could never happen again. There was there-
fore no safe parallel to be drawn between the two periods.
Coming to the bill before the house, the propositionsit con-
tained were twofold. First, by operation A the Govern-
ment proposed to convert a book debt of 24 millions due to
the Commissioners of Savings Banks into an annuity of
£1,725,000 for 152 years, terminating in 1885, which would
entail an annual additional charge of about one million.
This £1,725,000, when paid, would pass into the hands of
the commissioners for the national debt, who would hold it,
liable to the demands of the trustees of the savings banks.
The commissioners would annually invest whatever could
be spared from the balances in their hands, either in pub-
lic securities or-in funds guaranteed by Parliament, as
might be most expedient. No change in the mode of in-
vestment mirth, existed now would be made, but supposing
that a considerable proportion of the investment of these
spare balances should go into the funds, these would be-
come the subject of operation being converted into annul-
ties terminable in 1895. The result of the two operations
would be this : during the present year only half a million
additional charge would become payable. Next year it is
true that the whole of the million due under operation A
would come to charge, but then the additional half million
would be more than met by the falling-in of the Bank dead

weight of £585,000 per annum. The maximum effect of
operation A would, therefore, be to increase the annual
charge by £420,000. He then came to operation B. Sup-
posing the whole of the annuity of £1,725,000 to be in-
vested, which would not be the case on account of the
demands of the savings banks trustees, the figures would
stand thus: There would be outstanding in 1885 a public
charge of £120,000 as the result of operation A. If the
whole of the annuity of £1,725,000 down to that time had
been regularly invested in Three per Cent. stock, there
would then have been created an annuity of £3,170,000
terminable in 1895. But stock would have been cancelled
bearing interest to the amount of £1,875,000, so that the
additional charge under B would be £1,295,000, which,
added to £120,000 under A, would make £1,715,000. Then
in 1885, she annuity of £1,725,000 payable under operation
A would cease, and annuities created by Sir George Lewis
to the amount of £680,000 would also fall in. Therefore
there would be a diminished charge of £2,405,000 against
the increase of £1,715,000 which had been already men- 1
tioned ; shriving a net decrease of £690,000,per annum
compared with the starting point. An objection had been
raised to the bill on the ground that it involved the prin-
ciple of the sinking fund. Now, he would undertake to
endure any penalty that might be inflicted upon him if he
were found knowingly proposing again the institution
of the sinking fund. He did not believe that any part
of the sinking fund was involved in the proposal
which he now made to the house. He had on
all occasions been opposed to the sinking fund, and
during the present session he had obtained powers for the
abolition of two sinking funds pure and proper which had
existed down to the year 1866—one under the name of a
fund for donations and bequests, and another under the
title of the Audit Roll Fund. Let themconsider what were
the real objections to a sinking fund. The first objection
was that they did not pay off debt but only pretended to
pay it off, and it was a fiction to borrow money for which
they were. to ray. The next objection was that the sum
which they paid was infallibly sure to be less than the

sum which they borrowed in order to pay. There was
therefore a positive waste in the operation. In order to

pay for a given amount they borrowed more than that

amount, because in order to go into the market to make the
loan they must pay the contractor his profit, and in order
to redeem the stock they must give the jobber his profit.
Considered, therefore, in an economical point of view, the
proposition would not hold water for a single moment.
Such being the objections to a sinking fund, and these
being, in his opinion, conclusive, the next point that arose
was how far they were applicable to the terminable an-
nuities ; because on the answer to that question would de-
pend
the merits of the bill. Terminable annuities had this
advantage, that they placed a certain payment of debt be-
yond the vicissitudes of the finance of a. particular year.
For his own part, he confessed ho was disposed to side
with those who established our system of terminable an-
nuities. How far were these annuities open to the disad-
vantages of a sinking fund ? In a year of surplus there was
no objection whatever to terminable annuities because they
had a surplus available for the payment of debt. But how
did it operate in a year of deficit ? In such a year un-
doubtedly nothing was gained, to say the least of it. They
were not under the disadvantage which they would have been
under Mr. Pitt's plan of going into the market to purchase
and redeem stock, but still while they were borrowing in
the market they were likewise paying for debt. That
prima facie was a disadvantage. It was one, however,
which really had no application to the proposal now before
the house. Another objection to terminable annuities was
that they were only saleable upon very bad terms in the
open market ; that they did not suit the object of the great
body of those who had money to invest ; and that they
were open to an unfavourable influence in consequence of
the operation of the income tax, which was uncertain in its
amount. For these reasons they 'were a costly method of
borrowing for the public. Sir G. Lewis, in 1856, combined
the two operations of borrowing money at 3 per cent. and
of creating terminable annuities, and ho was by no means
prepared to say that the scheme was not advantageous to
the public. But the objections to terminable annuities did
not apply to the present bill, because under its operation
not one
market. stal
sh
The g
viillin's worth would, be saleable in the open
and fundaxaental consideration of the
whole matter was this, that the public were not only to be
regarded as borrowers, but as bankers; and further that,
whereas they were only occasional borrowers, they were
always bankers. As borrowers they conducted losing ope-
rations, and as bankers they conducted profitable opera-
tions.
which
a
The house should bear in mind that, independent
of their revenuoandexrpuenndetunrtefnuaacicloyu,nta,natheeyn
had
banking account which
such as the Friendly Soci
stood the deposits they recse,ivfeudndfsroamndvatrihe offie
oupsossot-urces,
etiee
,
because the present bill did not propose to deal with them.
Savings Banks funds, both of which he put cut of view
a
There were also the funds theof.n
the ol d
generalsavings banks, but
these he put out of viewargument,
though they had an important bearing upon the
question of conversion. As regarded th
Savings Banks it was very unlikely that, as theyh
alashlte
ytoearmoafintiaiiianharaltaersg,ethbe p
banking
waccountto
during e
ostbeen
e
P ffi
had - e
Post-office
convert the balances, which during the four years' ope-
,cecuoludb
oanxious
ope-
rations stood at £7,000,000 over and above all payments
out ; and during the last year, under the adverse circum-
stances of the money market, the balances stood at one
and
three quarter millions over and above all payments
out. The tendency, the
tion, and he accordingly ref ore, was towards accumula-
uroverntnei
beassumedcertain, that from that source a
surplus would
Post-office Commissionerstheirit sold to banking
establishment having that
surplus,and therefore
the
and to no other customer.
Let them consider the
effect of operation A under this
bill in years of different circumstances It
ewould be most'
convenient to his purpose to divide these y
classes. First, the years of surplus ;
seconda,rtshien to tiareeef
casual and unanticipated deficiencies; and third, trea yresars ,

of known and avowed deficiencies, such as years of war,
when they were obliged to resort to extraordinary re-
sources. The years of surplus did not require to be dis-
cussed, because they were agreed that there was no objec-
tion to the operation of the terminable annuities in those
years. Then as to the years of casual deficiencies. Suppose
that they were going to liquidate debt to the amount of one
million under the form of terminable annuities, and suppose
also that there was a casual deficit amounting also to one
million, what happened? The Chancellor of the Exche-
quer, with his deficit of one million, as Finance Minister
went to the Chancellor of the Exchequer in his capacity of
Commissioner of the National Debt, who had just received
one million to invest, and in his capacity of National Debt
Commissioner he made over to himself, in his capacity of
Finance Minister, this one million, and received in return
Exchequer bills or bonds. It would be seen that there was
no waste or economical objection to this mode of proce-
dure. Coming next to years of avowed deficiency and
loan, the operation was equally simple. Suppose they had
a surplus in their banking account of one million, and sup-
pose they were going to raise a loan of five millions, the
National Debt Commissioners would simply take the one
million of loan upon the same terms as the bidders in the
open market. That was a perfectly simple operation, and
involved no economical objection. The only other con-
tingency which required to be taken into view was the
case of a deficit in their banking account, where the divi-
dends received upon the stock and other securities held by
the National Debt Commissioners, together with the de-
posits, were less than the calls made upon them by the de-
positors ; and secondly, where the banking account instead
of being able to help the Exchequer, was itself in need.
He contended that the operation of this bill was also bene-
ficial there. It would be open to them to borrow money.
Suppose they borrowed a million, and that went to keep
their banking account. That would prevent them selling
so much stock ; and he conceived it was not desirable,
especially in periods of depression, for the Government to
go into the market as sellers of stock. It would be much
better that any deficit should be raised by Exchequer bonds
or in some similar way. Admitting this, he did not think
that even in an extraordinary year mischief would occur,
while in every other year the operation would be of
the greatest convenience. With regard to operation B
the case was precisely the same, because the
house should remember that the money which
they were going to pay—the 4725,000—was the trust
money, and being trust money they must deal with it
according to the conditions of the trust. It was not to be
dealt with for the purposes of the Exchequer, but it was
held liable to the claims of the savings bank trustees. It
was perfectly true they would have to invest the surplus of
that money in the public stocks, but so they did under the
present law, and they did not propose to alter the conditions
as to investment; but these investments would, if this bill

?assed, be reconvertable into terminable annuities, and the

produce of these annuities would be subject to the same
considerations which he had mentioned as applicable to
operation A. He ought, however, to keep in view the con-
tingency of the Government being bort owars and payers of
debt in the same year ; but this did not demand more than
passing notice, because on all occasions they must look not
to what might happen exceptionally, but to that which
happened ordinarily. All, however, depended, he must
admit, upon a clear comprehension by the house of the
position of the Government as bankers. Through the
Commissioners for the Reduction of the National Debt,
the Government was responsible to the savings bank trus-
tess for the principal and interest at a certain rate of all
moneys they received. The principal and interest con-
stituted the liability of the State considered as bankers.
The State invested the money it received from the trus-
tees of the savings banks, and it was those funds and the
dividends which it received that formed the assets of
the State. This measure was not bringing up its liabi-
lity; it was only bringing up its assets. What, therefore,
he would contemplate, and what he hoped the house and
future Parliaments would adopt, would be to adhere to the
policy of paying off the debt through terminable annuities,
by paying dividends simply as a bank, and by adjusting
their banking accounts to the wants of either years of de-
ficit or years of surplus. He did not, as had often been
suggested, propose going into the market. for the purpose
of selling these securities, but he looked to the public de-
posits as supplying the natural limits of the operations. It
was p.oysse
wouldiable that the deposit in the hands of the State in
mighsteebechgeraepaetlry
menolnaerygeidn.
thislt was probable
aabnlde
was possible that the deposit in the hands of the State in
future years might be greatly enlarged. It was probable
tthat they
that Lo doubt would tend to increase the deposits. If the
operations of the Post Office savings banks were to con-
tinue, say for thirty-five years, at the same rate as they
had gone thus far, they would by that time have received
something like £50,000,000 the whole of which would
come into operation, and be available for being Omit with

in the manner proposed by the present bill. His own be-
lief was there were various funds in this country which
ought to be in the hands of the State, because if a deficit
were to occur in them that house would be called upon to
pay the loss, and that being the case it seemed to be a
corollary that this house should have the custody of them.
While, therefore, they did not propose going beyond
the deposits as a basis of operations, yet it was quite
possible that the fund of which they proposed to make
use might be enlarged from time to time, either by the
causes which were now in operation, or by the possession
by that house of moneys which it now had not. With-
out going through the figures which were in the hands
of hula. gentlemen, it would give him satisfaction to give
any explanation that might be required, and he would be
happy to listen to the sentiments which might be ex-
pressed by other gentlemen, members of that House.
Making freely the admission and setting out with it as a
principle, that they did not desire to be parties to the re-
establishment of a sinking fund, and thinking that they
did possess, through the banking offices of the State, a
means by which they could avail themselves of the un-
doubted advantages for liquidating the debt through the
system of terminable annuities, and avoiding the incon-
veniences which in former times had beset that system,
most anxious was ho not to claim for this proposal
the credit of effecting great operations. It was quite
possible that what might take place under what he had
indeed.
However, operation B might be very insignicant
However, he was bound to point out to the House that in
that case the Post Office savings banks would supply a
fund by which they would have the power to make ter-
minable annuities. The House would observe that he
had not argued the question at all in detail, but had spoken
of the policy of making this application of the moneyrather
than of applying it to the remission of any particular im-
post. He should only be taxing the patience of the house
if he were to enter into any probable operations in an ex-
ceptional year. What he proposed was of the character of
a financial operation that might be easilyunderstood by the
house, so that the house was able to form a judgment upon
the important question whether they were endeavouring to
pursue a public object, whether they were liable or not
liable—he thought they were not liable—for the re-intr o-
ductiou of principles which, however plausible they might
be at first, had been proved unsatisfactory, and principles
which, after such confutation by right and practice, it would
be a mistake on the part of any Government to place on
the statute-book of the country.
Mr. HUBBARD objected to several items in the pro-
posed scheme of terminable annuities, and taxed the Chan-
cellor of the Exchequer with dealing unfairly with savings
banks deposits. He trusted that this would be thoroughly
investigated when passing through committee.
Mr. LAING complained of the disparity which existed
between the Chancellor of the Exchequer's budget speech
and his additional financial statement. The terminable
annuities were then spoken of as a mode of reducing the
national debt which would virtually be by taxation ; but it
appeared now that for them to lapse into a permanent
sinking flied was a mere delusion, as the bill could be
swamped at any moment by decree of the Chancellor of the
Exchequer. He did not approve of entering into pros-
pective engagements, neither did he believe that
the scarcity of coal which was predicted would lessen our
resources to the extent contemplated. If such scarcity
should occur, other branches of industry would take the
place of those which required an abundance of fuel. He
thought that if the duties on consumable articles, such as
sugar, were reduced, we should benefit commerce and the
working classes better than in an attempt to lessen the
national debt by moans of extra taxation.
Sir FITZROY KELLY objected to the principle of
raising large sums of money by means of taxation for the
purpose of reducing the national debt. He reviewed the
scheme of the Chancellor of the Exchequer in an elaborate
speech, and contended that it was unwise, impolitic, and
dangerous in the extreme to bind ourselves to a policy of
annual payments of at least a million extending over forty
years without knowing that the condition of the country
would bear the extra taxation.

Mr. FAWCETT was sorry to differ from the Chancellor
of the Exchequer, but he thought the terminable annuities
a bad scheme, because it was a.n uncertain scheme. It was
impossible to see what the effect of this extra taxation may
be in 1885. The endeavour to throw upon our successors
a greater manual payment than we were prepared to pay
was an unfortunate project. This was not a period to in-
crease the taxation of the country, and the only way, in
his estimation, to reduce the National Debt was to have a
yearly increasing surplus revenue which could be thus
applied.

Mr. CHILDERS defended the Government Bill, and
went over the scheme proposed by the Chancellor of the
Exchequer, which, he said, would not tax the country to
the extent which had been suggested. It was a sound
financial arrangement, and one which would tend to increase
the credit of the English nation.

Mr. HENLEY ridiculed the Government scheme of ter-
minable annuities, and pointed to the difficulties of meet-
ing the payments guaranteed in future years.

After a few words from Mr. Samuelson, Mr. Liddell, and
Mr. Vivian, the second reading was agreed to.

Mr. COWPER introduced the second reading of the
Commons (Metropolis) Bill, which was intended to facili-
tate the purchase of open spaces for public recreation
within 15 miles of London and four miles of other towns,
and to appoint commissioners to report upon such lands.
After lengthened remarks from Mr. Ayrton, Sir W. Jol-
liffe, and Mr. Buxton,
Mr. COWPER agreed to the bill being referred to a select
committee, with instructions that it should be extended to
all large towns in England.
The remaining orders of the day were then disposed of,
and the house adjourned.

Naval and Military Intelligence.

Yesterday Major-General Sir Robert Walpole,
K.C.8., commanding the Chatham district, com-
menced the half-yearly inspection of the troops under
his command, the first day being devoted to the in-
spection of the Ist Depot Battalion of Infantry,
under the command of Col. J. W. Smith, C.B. In
the morning Sir Robert Walpole inspected the
books, accounts, and the official records and docu-
ments of the battalion, and afterwards visited the
barrack-room and quarters occupied by the troops.
At 4 o'clock yesterday afternoon the various regi-
ments and depots comprising the battalion, includ-
ing the Ist and 2d battalions of the 4th King's Own
Royals, the Ist and 2d battalions of the 15th
Regiment, 35th Regiment, 77th Regiment, and 94th
Regiment, were formed on the review ground within
the inner lines of fortifications, where on the arrival
of Sir R. Walpole the inspection of the various corps
was proceeded with, the arms, kits, accoutrements,
&c., of the non-commissioned officers and men being
first examined, and the companies afterwards exer-
cised in various movements to test their efficiency in
battalion drill. Major-Gen. Sir R. Walpole will
eontinue his inspection of the other troops at the
garrison this evening.
The out-pensioners of Chelsea hospital, attached
to the Chatham district, including those formerly
belonging to the various cavalry and infantry regi-
ments, and the Royal Marines Light Infantry having
completed their annual period of training, under the
command of Col. R. Jenkins, were inspected on
Chatham-lines yesterday by Col. J. W. S. Smith,
C. 8., commanding the Ist battalion of infantry at
the garrison. The various companies, numbering in
the aggregate about 400 men of all ranks, having
assembled in front of their quarters, near St. Mary's
Barracks, were marched to their lines, where they
were put through the manual and platoon exercises,
and afterwards inspected in a variety of movements,
in which the veterans acquitted themselves most effi-
ciently, the whole of the movements being gone
threugh with the utmost steadiness and precision.
The pensioners will return their uniforms, accoutre-
ments, and rifles into store to-day, and will then be
released from further duty until again called out for
training.

Major-Gen. Warde, C. 8., commanding the dis-
trict of Woolwich, on Tuesday brigaded on the re-
view ground at Woolwich-common a large portion
of the non-duty men for inspection, which it is an-
nouneed will be carried out on Thursdays, each
week, during the summer seasons, the weather per-
mitting. The force assembled consisted of three
troops of Horse Artillery of the C Brigade, in com-
mand of Col. A. Huyshe, three batteries of the Bth
Brigade Field Artillery, in command of Col. Riddell,
C. 8., recently marched into garrison from Dublin,
four batteries of other brigades mounted, and a bat-
talion of Royal Marine Light Infantry in command
of Second-Commandant Col. Lambrick, A.D.C. to
the Queen, making a total strength of 1,122 men,
42 guns, and 636 horses of the Royal Artillery and
800 men of the Royal Marines. The ground was
pointed out by Brigade-Major Hay, and the line
was formed soon after nine o'clock, the Light In-
fantry in the centre, and the troop of the Royal
Horse Artillery (acting as cavalry) and the field
batteries right and left. After being inspected front
and rear they marched past, and subsequently went
through a most interesting course of field-day's ma-
noeuvres, occupying three hours. The batteries were
supplied with 10 rounds of blank cartridge per gun,
and the infantry 15 rounds per man. Major-Gen.
Warde stated to Colonel Louis, who commanded
a portion of the Royal Marines, that he was much
gratified at the steady and correct manner in which
the battalion had performed their movements, the
correctness of which would lead one to suppose
that they were at the close, instead of the com-
mencement of the drill season. The firing and
marching of the battalion, he added, were, as usual,
excellent.

Capt. and Adjt. Shadham, Quartermaster Wil-
liams, and the head-quarters staff of the 4th Bri-
gade Field Artillery, accompanied by a detachment
of non-commissioned officers and privates, left
Woolwich on Tuesday for the Euston-square sta-
tion, where they were joined by a detachment from
Warley, and proceeded by a train to Liverpool,
where they were to embark for Canada.

No. 2 company Military Store Staff Corps have
been granted quarters in the Royal Engineer Bar-
racks at Woolwich, 63 non-commissioned officers
and men of various Line regiments having arrived
from the depots of their regiments. The company
will receive its full strength of 100 during the week.
The system appears to work satisfactorily, and will
be extended to the other garrisons shortly, Wool-
wich to be the head-quarters of the corps.

Major Hammersley, Assist.-Quart.-General and
director of gymnastics, accompanied by Capt. Clarke,
Royal Artillery, superintendent, completed his in-
spection of the gymnasia at Woolwich garrison, the
Royal Military Academy, and at Warley, on Wed-
nesday. Each gymnasium was found in excellent
order and the instructors most efficient. Upwards
of 2,000 men have undergone a course of training
during the past year at Warley and Woolwich, not-
withstanding the limited space at present allowed
for that purpose. ft is, however, expected that the
establishment at Woolwich will be considerably
enlarged.

Yesterday a naval court-martial assembled on
board the Formidable, 84, flagship of Vice-Admiral
Sir Baldwin W. Walker, Commander-in-Chief at
the Nore, for the trial of Mr. Chas. Gribble, assist.-
paymaster of and belonging to H.M.S. Dauntless,
31, 580-horse power, Capt. E. P. B. Von Donop,
for having, on or about the all inst., drank intoxi-
cating liquors to such an extent as to unfit him for
the proper performance of his duty on board the
said ship. The prisoner gave a complete denial to
the charge, and urged that he was suffering from
heart disease at the time, the excitement caused by
which might have been mistaken for intoxication.
The prisoner called four witnesses for the defence,
and also handed in certificates from officers under
whom he had served, giving him an excellent cha-
racter. The Court found the prisoner " Guilty,"
and in consideration of his former good conduct, as
shown by the certificates produced, sentenced him
to forfeit one year's seniority of his rank, and to be
dismissed from H.M.S. Dauntless.

The annual regimental dinner of the 38th Regi-
ment was held at Willis's Rooms on the 17th inst.,
and was numerously attended, Colonel E. A. Whit-
more presiding.

The Challenger, 18, screw steam corvette, 1,462
tons, 400-horse power, left Sheerness yesterday for
her destination as the flagship of Commodore R.
Maguire, on the Australian and New Zealand sta-
tion. The ship was last employed on the West
Indies station, under the command of Capt. Ken-
nedy. She returned to Sheerness about a year and
a half ago, and was placed in the first division of
the steam reserve. Since she has been at Sheerness
some extensive alterations and repairs have been
effected, and she has now been commissioned as the
flagship of the station mentioned above. Her arma-
ment consists of eight Bin. or 65cwt. guns, eight
64 pounder shunt
guns, and two Armstrong guns.
Since the vessel has been lying in commission in
Sheerness harbour the following officers have joined
her :--Commodore Maguire, Commander Brown-
rigg ; Lieuts. Hornby, Boyd, and Bell ; Master
Slader ; Dr. Watson, M.D. ; Chaplain Rev. Mr.
M'Dowell ; Chief Engineer Brown; Naval Instruc-
tor Mr. Fowles ; Lieut. (Royal Marines) Airey ;
Assistant-surgeon Pickthorne ; Paymaster Antey ;
Secretary Parish. Previously to her departure the
ship was inspected by Sir Baldwin Walker, who
expressed himself as highly satisfied. The Chal-
lenger takes out several supernumerary officers to
fill up vacancies occurring in ships on the station.
The ship will call at Portsmouth to take up super-
numeraries, and will then proceed to Malta, where
she may stay a shoat time, after which she will pro-
ceed directly to Sydney.
The Mullet, 5, screw gun vessel, 430 tons, 80
horse power, Commander Robinson, loft Sheerness
harbour on Wednesday for the West Coast of Africa
station.

The following appointments have been made at
the Admiralty :—.Commander J. Hutchison, to the
Curacoa, for surveying service ; Lieut. Francis W.
Lowther, to the Formidable, as Flag.-Lieut., to'
Vice-Admiral Sir Baldwin W. Walker; Joseph B.

Doyle, master, additional, to the Indus, for the
Vestal ; George A. Stubb, master, additional, to
the Frederick William ; and Richard Sainthill, pay-
master, additional, to the Topaze.

Railway and other Companies.

LONDON AND NORTH WESTERN.

The adjourned W harncliffe meeting of this com-
pany, appointed to be held yesterday at the Euston
station, Mr. Moon in the chair, was further ad-
journed, in consequence of none of the bills being
ready, to the 29th inst.

METROPOLITAN AND ST. JOHN'S WOOD.
A special general meeting of this company was
held on Wednesday at the offices, Duke-street,
Westminster, for the purpose of considering agree-
ments with the Metropolitan Railway Company for
the working, use, and maintenance of the St. John's-
wood line, and to raise additional capital under the
company's Extension to Hampstead Act, 1865; Mr.
W. Austin in the chair.

The CHAIRMAN said the works on the line had
progressed satisfactorily, and he had no doubt the
line to the Swiss Cottage would be completed and
opened by the end of the year. The Metropolitan
Company were to work the Metropolitan and St.
John's-wood line for 50 per cent. of the gross earn-
ings. The Metropolitan Company were to allow the
St. John's-wood Company a rebate of 121 per cent.
on the gross through traffic over the whole of their
system until the St. John's-wood Company paid a
dividend equal to 6 per cent., and before the St.
John's-wood Company paid a larger dividend than
6 per cent. they were to repay to the Metropolitan
Company any sum paid by way of rebate, with in-
terest at the rate of 5 per cent.; and the agreement
also provided that the Metropolitan Company was
to have the option of taking the St. John's-wood
line at any time within five years from the opening
of the line, at 6 per cent. in perpetuity. He pro-
posed the adoption of the agreements, which, having
been seconded by Mr. W. Lee, M.P., was unani-
mously agreed to.

The CHAIRMAN then moved a formal resolution,
authorizing the raising of new share capital to an
amount not exceeding £200,000 by the issue of
20,000 shares of £lO each.

Mr. LEE, M.P., seconded the resolution, which
was carried, and the proceedings terminated.

NORWICH AND SPALDING.

A Wharncliffe meeting of this company was held
on Wednesday, at the Westminster Palace Hotel,
for the purpose of considering a bill for the amalga-
mation of the Lynn and Sutton-bridge and the
Spalding and Bourn Railway Companies, and for a
lease of the Norwich and Spalding Railway to the
amalgamated company; Mr. J. Wilkinson in the
chair.

The CHAIRMAN, in moving a resolution approving
the bill, said it was proposed to lease their line to
the amalgamated companies for 99 years at a gua-
ranteed rent of £9,000 per annum, which the di-
rectors considered was a very fair sum to pay.
The resolution was carried, and the meeting se-
parated.