The Sun.
London, England, 1861-02-09 00:00:00

rilE SUN,' 'LONDON) SATURDAY EVENING, FEBRUARY 9, 1861.

would be done till there was a general system of rating, and
the existing areas of management and charge broken up.
Mr. DEEDES suggested that the scope of inquiry by the
committee skould be enlarged, so as to include an investi-
gation into the operation of the law itself.

- Sir G. C. LEWIS then moved the addition to the motion
of the words. "And into the operation of the law for the
±ellef of the t00t.,"

Mr. LOCIIE said that the Inquiry should be whether or
not the present Law of Settlement should be continued, and
if abolished, then, how they would adjust the rating
throughout the country.
The motion, with the amendment, was then agreed to.
BANK OF ENGLAND (CONSOLIDATED FUND).
Mr. MASSEY brought up the resolutions of the com-
mittee, which were agreed to. Leave was then given to
bring in a bill founded thereon.
RED SEA AND INDIA TELEGRAPH COMPANY.
The CHANCELLOR of the EXCHEQUER, moved
that the house go into committee.
Sir H. WILLOUGHBY complained that the committee
were about to discuss a resolution, of the terms of which
they were whollyignorant. Why should not a preliminary
notice be given, as in other cases, of the precise naturo of
the resolution about to be proposed?

The CHANCELLOR of the EXCHEQUER said that he
was in the hands of the house. The resolution was pre-
pared, and he for one fully expected to see it on the votes
that morning. The resolution was in close conformity with
the notice given en the votes.
The house then resolved Itself into committee ; Mr.
MASSEY in the chair.

Tho CHANCELLOR of the EXCHEQUER-1 will not
trouble the house with any lengthened statement, because,
although a great deal may bo said upon it, the point before
us, although important, is a narrow one. I will not say
anything as to the merits, the wisdom, or otherwise of the
agreeteefit that is lender consideration, nor will I enter
upon two other metters—otie a contest between the Red
Sea Telegraph Company and the contractors ; and, secondly,
the course that may have been taken by this unfortunate
line. All this is minded from our present view, and we
ere now not to consider any matter of policy, but simply a
question of good filth, to which I shall accordingly limit
myself. An agreement ieaa made between the Treasury
and the Red Sea Company 41, the *Aar /859, and a bill was
brought into Parliament in the Session of the same year
to giite effect to that agreement. The nature of the agree-
ment was understood by the public in a particular sense,
Mid about that sense there can be no doubt. It was under-
stood that by that rigr6ettiettt the Government guaranteed
to the company a minimum dividend, sinking fund included,
of £llox. upon a certain maximum amount of capital during
50 years ; and although it was stated in the House of Lords
by the noble eatl then at the head of the Government that
this was a conditional guarantee, yet the sense in which he
used the term was that this waif a guarantee conditional
and contingent on the execution of the work, and on its
being brought into working order. But now I come to
speak, not of what was said in the House of Lords, which
passed without record, but of what was understood by
the public and these who subscribed their money. in
the first place, thee, what was this understanding? and,
secondly, were they justified in entertaining it? The un-
derstanding was thet the contract was unconditional in one
respect, and that, according to the intent and meaning of
the agreement, all that the company had to do was to raise
the capital and lay down their line, and then they were not
liable to be prejudbed in respect to this guarantee by any
subsequent failure of the line to perform its functions. At
that time it was thought that the main difficulty consisted
in the laying down of the line, and it was conceived that
after a submarine telegraph wire had once been laid down
any failure was not to be apprehended. The case, therefore,
which has occurred was not distinctly in the contemplation
of the parties ; and if this were a question between private
individuals I do not know that it might not be made the
subject of argument; and contest. But any gentleman who
will examine the course of the transaction between the
Government and ;he company will, I think, come to the
conclusion that any subsequent failure of the line to per-
form its functions, although it was not in the contemplation
of either party as a risk to be seriously guarded against,
was intended to be borne by the Government ; that is to say
although not distinctly and expressly, yet the nature of the
bargain was this—that the company, having laid down the
line in a proper state, were thereafter to be free from risk.
The general facts connected with this case are pretty well
known. It is, I believe, unquestionable that on that under-
standing alone money was raised; and the responsibility of
the Government in the case was a very peculiar responsi-
bility, because two gentlemen were appointed official
directors; their names were announced, they took part in
the proceedings of the company, and they were considered
a conclusive guarantee on the part of the Government to
the public of the security of the undertaking. When I
speak of the Government I speak of them in the discharge
of their natural and proper functions. They con-
cluded a contract subject to the assent of Parliament, and
the assent of Parliament was regularly obtained for that
purpose. The bill passed the Commons in 1859; it did not
contain the contract, although it sanctioned it. In the House
of Lords attention was drawn to this fact, and the bill was
amended by having the contract set out in it. When the
bill came down to this house as amended, and the motion
was made to agree with the Lords' amendments, my right
hon. friend the member for Carlisle observed that these
amendments brought. for the first time under our view a
very important instrument of which we had no cognizance,
and he moved that the consideration of the Lords' amend-
ments should be delayed for a fortnight, in order that the
house might become acquainted with the terms and charac-
tereuhnfooursteu,noant e lay ,
daisy
ils
ot
nhino.ke
eacntedd a sb
yI
a e thoughtonsi
of the contract to which we were about to give a final
matstehnet.timel,ostht
derable majority the motion of my right hon. friend. They
were careful lest the slightest suspicion should be raised as
to the maintenance of the public faith. (Hear, hear.)
Nothing could be more honourable than the motive; the
effect was most unfortunate ; for I don't at all doubt that
if that contract bad been subjected to the view and con-
sideration of the members of the house, by allowing a fort-
night to elapse before the Lords' amendments were con-
sidered, the blot in its formation would have been hit, and,
to the great advantage of all parties, it would have been
removed. The amendments of the Lords, however, were
accepted and the bill became law. Under that law there
were provisions for the payment of dividends during the
submergence of the line, and these were paid. In the latter
part of last year it occurred that in consequence of diffe -
ronces of opinion between the directors, the company, and
the contractors, a reference was made to the Government,
and the due construction of the contract was brought under
the consideration of the law officers of the Crown. They
reported, in very unhesitating terms, that under the con-
tract the Government were not bound to pay, and had no
power to pay anything in the present circumstances and
condition of the line. The first question, then, we had to
consider was, whether we were to avail ourselves of that
state of the contract, or whether we should ask Parliament
to amend the error in its construction, and pass a bill
which should give effect to the original understanding.
Upon an examination of the evidence as to the original
construction put upon the contract and the assurance given
to the parties, and which they were originally justified in
entertaining, we thought our duty was to apply to Parlia-
ment, and that announcement was made to the directors of
the company in an official letter, signed by my right hon.
friend the member for Bury (Mr. F. Pei.l), on the 28 h of
January. There was another question, of a more delicate
and more difficult character, on which the Government
also came to a decision as to their duty, and that was the
question
whether we should at the Treasury assent to cer-
tain preliminary steps necessary for the verification of a
half year's accounts, the consequence of which would be
to give authority for the issuing of half a yeat's dividends.
The money necessary for these dividends was voted by
Parliament ; but for the purpose of enabling us to fulfil
what was thus believed to be a contract, the deliberate
opinion of the legal advisers of the Crown, in cutting away
from under our feet the contract itself, appeared to us, 'on
the just understanding of our constitutional functions,
likewise to cut away from under our feet all title to pay
this dividend. We might, in a case where a great prac-
tical evil was to be apprehended if any lengthened
course of time elapsed, have undertaken the responsibility
of issuing the money; but diffiaulties might have
been interposed by the Controller of the Exchequer.
Whether that was so or not, we certainly came to the con-
clusion that inasmuch!as wo should have the opportunity
within the course of a few days of bringing the matter
under the judgment of Parliament, and inasmuch as we
should be compelled to dose as regarded the general validity
of the contract, it would be but due to Parliament and the
respect we were bound to pay to its authority, that we
should refer to it the whole subject in its entirety, and
that we should not reduce to an idle form the consideration
! of the bill by proceeding at once to anticipate its judgment,
and pay the dividends coming due; for they are not yet
! due, and it is even possible this measure may become law
before that time has actually arrived. A bill has been
drawn for the purpose I have described, and re-establishing
what we take to be tie original contract. For ascertaining
that understanding we have, on one hand, various docu-
ments that passed at an early period of the negotiations,
and the evidence of various declarations in Parliament on
record, both that of the late Secretary of the Treasury, and
the still more authoritative declaration of the right hon.
gentleman the member for Buckinghamshire, who ex-
pressed his view of the nature of the contract in 1859, when
the motion to which I have referred was made by my right
hon. friend the member for Carlisle. The course we pro-
pose to take is this :—lt is a matter of some nicety to deter-
mine the precise form in which an Act of this nature should
be passed, because, although it is our duty to give effect to
the original intention, it is certainly not our duty to do
more. Our desire, therefore, is that, the form of the bill we
propose should bo narrowly canvassed by the house. I now
submit a resolution on the terms of which, if adopted, I
propose to introduce a bill. I will take the second reading
of it on the earliest convenient day, and then I pro
pose to refer the bill itself to the consideration of a
select committee for the examination of its provisions—not
to go into the merits of the arrangements made, or into the
question of what course it may be expedient to take with
reference to this unhappy cable now submerged, and of
which five out of six links aro perfectly useless for all prac-
tical purposes; these may be proper suljects for inquiry,
bpt not in connexion with this bill. The committee will
agree with me that the simple question of public faith
should be kept distinct; the other questions will be more
conveniently handled in a different form. With these
explanations I beg to put into your hands the resolution
that it is expedient to guarantee to the Red Sea and India
Telegraph Company a minimum rate of dividend upon the
amount of capital bona fide called up for the purpose of the
said company's undertaking.
Mr. DIVETT did not blame the Government for the
arrangement which had been made in this case. The
guarantee was in a manner forced upon them by circum-
stances. There was an extraordinary clamour for this tele-
graph at the time. There was great anxiety in reference to
affairs in the East, and the press took a strong view on the
subject, but the difficulties of the case had not been duly
considered. All deep sea telegraphs were failures, and he
trusted no guarantee of this sort would be entered into by
the Gov9rnment in future without the fullest investigation.
Ile admitted, however, that good faith required the present
bill should be passed as speedily as possible.
Sir H. WILLO UGHB Y said that some notion of the im-
portanoe of the question under discussion might be in-

ferred from the fact that it involved a sum of something like was about to invite the assent of the committee would, it
£1,500,000. The matter originally came before Parliament was true, be worked through the agency of the Postmaster-
in the shape of a private and unopposed bill, whi. h attracted General and not that of the National Debt Commissioners,
no attention, and was passed without discussion or even whose duty it would be simply to receive and hold the funds
observation, though it saddled the country with an enor- handed over to them by the Post-office for investment; but
mous contingent burden. He much doubted whether it then the new arrangements would in no way interfere
was ever intended to give an unconditional guarantee ; but, with the primary objects, for the attainment of which that
however that might be, what he wished to point out was important branch of the public service was established.
that under the elating system of legislation it was possible He proposed that the Post-office should receive and r.e-
to saddle the public pure with an annuity of £36,000 for turn deposits with interest in the same way as money,-
50 years without advantage to the country, and evenalmost orders were now dealt with, charging merely a fair re-
without the knowledge of the House of Commons. The munerative price for the work thus performed. He might
money would, no doubt, have to be paid ; but, at least, a further observe that the principle upon which his
useful lessen might be learnt from the present ease. Let scheme was founded differed in some respects from
all such bargains be shifted to the bottom, and narrowly that on which savings-banks were based. Those institu-
watched through all the stages of their progress ; and, tions had been established with the notion that the State
above all, let the house adopt the recommendation of the might very fairly offer to the labouring classes a certain pre-
Contract Committee which sat last year, and insist that a mium by way of inducing them to make deposits ; but, while
resolution should be placed upon the table at least one month he was far from desiring to cast any censure upon that prin-
before any action was taken upon it. ciple, he did not deem 3t right in the present case to hold
Mr. AYRTON thought that the resolution submitted by out to depositors the expectation of receiving any high rate
the Chancellor of the Exchequer was not in accordance with of interest. All, then, he meant to do was to give a fair and
the original understanding as stated by the company itself. moderate premium to the depositors of small savings, and
The resolution set forth that the Government should pay that premium he hoped to be able to pay them without im-
the sum necessary to make up a dividend of 41, per cent. ; posing any additional burden on the State, by turning to
but the real engagement, as appeared from the prospectus account the very extensive and extremely economical ma-
d the company, was that the Government should take over chinery of the Post-office. The rate of interest which was
the telegraph, and pay back the capital, £BOO,OOO. He now paid on deposits in savings-banks stood at the some-
wished to know what the Chancellor of the Exchequer un- what high rate of £3 ss. per cent., and he proposed Oat
derstood to be the annual sum which would have :t9 be paid under the operation of the scheme to which he was asking
under his resolution? the assent of the committee it should be fixed at £2 lOs.,
Mr. WALPOLE did not see what good could resulta7eom with power to increase that amount within cer; ain
referring the Bill to a select committee. The safer courry Inasmuch as there were great difficulties in the way of deal-
would be to treat the Bill in the usual way, submitting it ing with the finances of savings-banks and of attempting to
to a committee of the whole house. I alter their form of constitution, the Government proposed
Sir S. NORTHCOTE stated, in reply to the hon. and for the moment to pass over those difficulties, and to ask the
learned member for the Tower Hamlets, that the obligation assent of Parliament to a plan which, avoiding any compe-
upon the Government to take the telegraph into their own titios'l with the existing savings-banks, would greatly en-
hands was not compulsory, but optional. The recommends- large taefacilities of making small deposits. The main
tions of the Contract Committee of last session would difficulty :n the present savings-bank system was its ho-
, render it impossible in future for any such bargain as that perfect organ' isation in regard to the responsibility of the
l under consideration to be completed without the full know- State. State could only be responsible for the acts of
d as no plan had yet been devised by
ledge and sanction of Parliament. It should not be for- its own officers, a,a
d participate in all the proceedings of
gotten, at the same time, that the course pursued with re- which the State coin'
gard to the Red Sea Telegraph Bill, though inconvenient the savings-banks, it asSts impossible to carry out the prin-
enough, was not unusual, but that, on the contrary, it was ciple of a perfect Governtnsent guarantee The State now
the precise course which up to that time had been followed only became responsible for money of the depositors at
in all similar cases. Nor, he was sure, was there the small- the moment it received it from the savings-banks' authos
est idea of deliberate concealment. Those who introduced rities. But as in this case the nnoney. would be received
the bill had every reason to suppose that the terms of the by the officers of the Government it would be inexcusable
contract would be made the subject of a rigid inquiry, and not to give a Government guarantee,—(hear, hear)—and
he was satisfied that there was no intention in any way to ho proposed, therefore, to give uGovernment gua-
elude the vigilance of the house. If, as had been stated, the rantee in the only effective technical fer..m, by providing
law officers of the Crown had advised the Government that that if any difficulty arose in the tneansq of meeting
the contract was not binding upon them, there was obvi- the demands of any lawful depositor, it Bhould be
ously no other course open to the Chancellor of the Exche- charged upon the Consolidated Fund. He hoped tie notion
<peer than that which he had taken. Some surprise had of a Government guarantee would not cause any alarm in
been expressed that the Government had agreed to secure the minds of hon. gentlemen, fur he had expressly statod
to the telegraph company a dividend of 41 per cent. whether the basis of this new arrangement was that it should be
the line was kept in working order or not. It should be re- self-supporting. The right .hon. gentleman concluded by
collected that the Government gave an unconstitutional moving a formal resolution to the effect, that in the event
guarantee, because the opening of the lino was a matter of of savings-banks being established under this bill any deli-
great political interest and even emergency. We were then ciency which might arise in the means of meeting the de-
suffering under the double affliction of the mutiny in India mends of depositors should become a charge on the Cense-
and of a monetary crisis in this country. The necessity, lidated Fund.
therefore, was great, and the Government thought they Mr. CROSSLEY thought it impossible to over-estimate
I were justified, under the peculiar circumstances of the case, the advantage which the working classes would derive from
in deputing from their usual policy. the proposition of the right hon. gentleman. There were
Sir 0, C. LEWIS was not disposed to charge the late no less than 15 counties in England without such .a thing
Government with any concealment upon the subject of this as a savings bank, and there were also many important
contract. The house, however, was not called upon now to towns with from 10,000 to 20,000 inhabitants where there
go into a disctision of the prudence of the terms upon which was no such institution. The State provided beershops in
the contract was arranged. IVhat the house had to con- every street for working men to spend their money in as
shier was what was :he understanding which existed fast as they earned it ; but hitherto it had not been suffici-
between the parties and wh was ratified by Parliament ? ently forward in giving them facilities for saving their
It would, undoubtedly, bo the `;fish of the house to give money. Working men were often afraid to let their masters
effect; to that understanding, Now, he confessed, having know that they were saving money from a notion that it
looked inn; the matter with some care, the, he felt consider • would lead to a reduction of their wages, and under the
was with re- present system the masters were very often concerned in
able doubt as to what the real uncletatanding.
the entire the management of these banks and could know exactly
spect to the contingency which had arisett —viz ,
how each man's account stood. By this new arrangement
failure of the line. It seemed to him that when the 2eg°-
s each account would be a secret between the depositor and
tiations took place with the late Government both parts,:
the postmaster. He felt very much indebted to the atten-
itassumed as a matter of course that the line once laid down, which the right hon. gentleman had given to the
would remain in working order, subject only to tempo- lion'
etions addressed to him on the subject by Mr. Sykes
re-
rary interruptions. They accordingly entered into a gua- preseni:
geld. He did not think the Government ought
rantee that during any partial disturbance of the line or any of Hudderss
on the business, nor ought they to lose by
temporary want of funds on the part of the company a ter- to make a prou:.'
-
classes of this country did not want
tain dividend should be paid to the subscribers ; but he did it, for the workints
tines ,loped
it was found that more than 21 per
not see any evidence in the papers that either party ever charity. If at any
hoped it would be paid.
contemplated the contingency which had actually occurred. cent. could be afforded he s
° praise could be too high for
That was the contingency which had occurred, and the Colonel SYKES said that 1.2
,the working classes to lay
question the house had to consider was whether they were anything which tended to induce.
-1 that the note of hand
to pay 41 per cent. on these £BOO,OOO for 50 years without by against a bad time. He was same:
the most remote prospect of any advantage to the public. system would entail considerable labels:. on the postmasters,
As it was the desire of every member that the strictest good most of whom had some occupation of thseir own to tend
sou
nd
faith should be observed towards the shareholders, it would to, and suggested that each man's account should be kep
be satisfactory before the question was decided in commit- in a book, as under the present system.
tee, or at any other stage of the bill, that those persons con- Mr. KINNAIRD thought that the plan was: exactly
netted with the late Government who were the principal what was wanted. It was simple and practical, and ..vqied
parties in conducting this negotiation should give their as- save the labouring classes from incalculable loss, entan:
surance to the house that theyunderstood that the contract by their advancing money on all sorts of schemes because
as passed by Parliament did bind the country to the pay they had no place for depositing their savings with seen-
meat of that dividend on that sum in the contingency which rity. He heartily congratulated the Chancellor of the Ex-
had actually occurred. If such an assurance were distinctly chequer on having at last succeeded in one of the fondest
given the house would feel, however disadvantageous the hopes of his heart, that of creating a2l per cent. stock.
contract might be to the nation, the utmost willingness to Mr. AYRTON asked whether further facilities would be
retain faith with the shareholders. (Hear, hoar.) given to the existing savings-banks in using the Post-office
Mr. DISRAELI observed that there were two kinds of for small remittances ?
guarantees in respect to these lines—the conditional gua- The CHANCELLOR of the EXCHEQUER said that
rantee and the unconditional guarantee. The conditional no proposal or suggestion in a practical shape had been
guarantee meant that a certain rate of interest for a certain made to him on the subject, but he should be very glad to
amount of capital was secured to the telegraph company on see the machinery of the Post-office applied. on behalf of
the condition, first, that the line was laid, and next, that it existing savings-banks, to any extent short of entailing
was kept in wee king order. By the unconditional guaran- additional charge. They were indebted to Mr. Sykes,
tee, however, the Government guaranteed a certain rate of whose name had been mentioned, as one who had laboured
interest on a certain capital, provided the line were laid, muchin the cause, and who had been of great public use with
and when laid, placed at once in working order, though not respect to it. The plan adopted was not precisely a plan of
kept in working order. The only unconditional guarantee interest notes, but that was a matter of detail on which he
which was sanctioned by the late Government was this one would not enter now, as the bill would be on the table in
of the Red Sea Telegraph. Tho line was laid, and it was two or three days.
proposed that the guarantee should commence when the The motion was then agreed to, and the house resumed.
line had been 10 days in complete working order after being The Red Sea Telegraph Bill, the Highways Bill, and the
laid down. The Government did not think that a sufficiently Parochial Assessment Bill were severally read a first time.
long time, and they inserted 30 days in the contract.. The The house adjourned at five minutes to 11 o'clock.
line having been completed and in working order for 30
days, the Government felt themselves engaged under the
unconditional guarantee. What happened was certainly
not contemplated. It was not supposed that on the 31st or
32d day the machinery would fail ; but it was perfectly
clear that if the line was in successful operation for 30 days
the Government was entirely bound by the contract. He
agreed that the present was not the occasion on which to
enter into the policy of these undertakings, though he was
prepared to do so were it necessary. He would only remark
in reference to an observation made by an hon. member,
who seemed to argue that, after the failure of the Atlantic
cable, the Government should not have sanctioned such an
operation as this, that the Government entered into the
engagement before the failure of the Atlantic cable.
Mr. JAMES said that some of his constituents were in-
terested in this question, and had subscribed their money
upon the security of the public faiiin and on considerations
which he thought would influence tiny gentlemen of ordi-
nary prudence. There could be no doubt that the public
faith was pledged to the undertaking, and he cot:id not see
that the late Government should be taxed with any it.-2Dr°-
vident proceeding. It was easy to find fault after a failure
which no hit maxi e97,a pity could contemplate, but at the time
this line was proposed it was extremely desirable to have
' telegraphic communication with India. He agreed with the
hon member for Evesham that this proceeding might operate
as warning against the house voting hastily in such matters,
but they had now to deal with parties out of doors, who
had subscribed their money on the faith of the Government
guarantee. He, however, did not see the necessity for the
appointment of a committee on the subject.
The CHANCELLOR of the EXCHEQUER was glad
that the house had' had so clear a declaration front the
right hors. member for Buckinghamshire of the intention
and understanding of the late Government with regard to
the contract. He quite agreed with what had fallen from
the hon. baronet the member for Evesham as to the dan-
gerous practice of inserting money clauses, which made a
charge on the Consolidated Fund, in private bills; and,
without presuming to pronounce an absolute opinion on the
point, it nevertheless appeared to him well worth the con-
sideration of the House of Commons whether it would not
be proper to provide that no such charge should be im-
posed, except through the medium of a public bill. The
hon. member for Cambridge had asked what would be the
functions of the select committee. He did not think, as he
had already stated, that the functions of the committee
would be to enter into the policy or providence of the ar-
rangement made; but the contract was an instrument some-
what complex and very peculiar in its forte, and it had been
a matter of doubt what was the understanding on
which the contract was adopted and the act passed. These
wet e matters which Government had examined for them•
selves, but the house did not act upon what the Govern-
ment had done, and it was desirable that it should by an
organ of its own—a select committee—try these questions
and verify the facts on which the bill was founded. A com-
mittee could, on the part of the house, very easily satisfy
itself by the inspection of documents, and by the examina-
tion perhaps of a single witness, what was the understanding
on which the contract was founded, and whether or not the
terms of the Act carried out that understanding.
As to the question whether, in the event of the working
expenses of the company not being defrayed by its receipts,
the public of this country and the Indian Government
jointly would be liable to be called upon to make good the
deficit, the most consolatory answer he could give was that
the working expenses were brought within the discretion
of the Government, and would be reduced within very nar-
row limits. According to the wording of the contract itself,
he was afraid of the working expenses, as well as the pay-
ment of the necessary advances, would have to be borne by
this country in the event of the failure of certain resources
mentioned in the instrument as originally drawn up.
Mr. KINNAIRD expressed his regret that the public
credit seemed to have been somewhat tampered with by the
course with respect to the question which had tieen adopted.
The motion was then agreed to.
`POST-OFFICE SAVINGS-BANKS.
The house having gone into committee for the purpose
of taking into consideration a resolution with respect to
the establishment of Post-office savings banks which the
Government had given notice of their intention to propose.
The CHANCELLOR of the EXCHEQUER took occa-
sion to state that, in submitting the resolution to the notice
of the committee, he did not seek to pledge hon. members
to an approval of the bill which it was his intention to found
upon it. The object which he had in view in dealing with
the question was to afford greater facilities for the deposit
of savings of small amount than under the present system
existed. The establishment of savings banks had un •
doubtedly been of immense service to the humbler classes
throughout the country ; but, whilst it was the wish of
the Government so to improve their constitution as to
render them still more advantageous, the mode of doing so
was a problem which they found extremely difficult to
solve. Under those circumstances, they proposed to avail
themselves of another description of machinery already in
existence, simple in form, and recommended by its
incomparable convenience, for the purpose of carrying
out more effectually the objects for which savings banks had
been set on foot. Of those institutions there were only
about 600 scattered throughout the country, and of that
number but a small proportion were open for a sufficient
number of hours in the week. Looking, however, to the
Post -office Department, he found that it comprised between
2,000 and 3,000 money-order offices ; that the number of
postmasters was perfectly adequate to the transaction of in-
creased money business • that they held their situations
under pecuniary responsibility, and that every one of their
offices was open six days in the week for not less than eight
or ten hours each day. Now, there was a machinery ready
to hand, and admirably adapted for extending the usefulness
of the savings-bank system. The experience, he might add,
of the present winter must have demonstrated to anybody
who thought upon the subject that the resources of the
labouring population of the country had not of late years in-
creased in proportion to the increase in the rate of their
wages and the improvement in their standard of living ; nor
did he think he was indulging in too sanguine an expecta-
tion in supposing that if readier means of laying by their
small savings were afforded them than they now possessed,
those savings would become much larger in amount and
their ability to cope with periods of distress consequently
greater. He did not, of course, intend to propose that the
machinery of the Post-office should be applied at once and
wholesale to the purpose of affording to the working classes
the facilities of whiclA he spoke, The scheme t 9 Which he

FROM THE GAZETTE 07 LAST NIGHT.

WAR-OFFICE, FEB. 6.

The Queen has been graciously pleased to give orders for
the appointment of Charles Pressly, Esq., Chairman of the
Board of Inland Revenue, to be an Ordinary Member of
the Civil Division of the Third Class, or Companions, of
the Most Honourable Order of the Bath.
WHITEHALL, FEB. 4.

The Queen has been pleased to approve of the appoint-
ment of the Right;Hon. Edward George Fitzalan Howard
(commonly called Lord Edward George Fitzalan Howard),
to be Deputy Earl Marshal of England.
FOREIGN-OFFICE, FEE. 6.
- - -

The Queen has been pleased to approve of Mr. Augustus
Charles Gumpert as Consul at Bombay for his Majesty the
Emperor of Austria.

THE PRINCE OF WALES'S COUNCIL CHAMBER,

-
BUCKINGHAM GATE, FEB. 5.
John Francis Basset of Tehidy, in the county of Corn-
wail,. Esq., has been appointed Sheriff of the county of
COM.V7b.." •
CROWN-OFFICE, FEB. 8.
MEMBER RE,C.URNED TO SERVE IN THIS PRESENT
-*A.RLIAMENT.
Borough of Leicester—.WiliamUnwin Heygate, Esq.,of Hertford, in the
of Brent Pelham Hall, in the fou7ty
room of Joseph William Noble, Esq deceased.
WAR-OFFICE, PALL-MAL.._L, FEB. 8.
2d Regiment of Dragoon Guards—Cornet rederick Grea-
torex to be Lieutenant, by purchase, vice Barn: 8, who has
retired ; Michell Duncan Gordon, Gent., to be Cornet,
by purchase, vice Greatorex.
sth Dragoon Guards—Cornet William Miles Nairn King'
ton b be Lieutenant, by purchase, vice George Frederic:
Heyworth, who retires.

4th Light Dragoons--Lieutenant William Howley Burder,
from the 6th Dragoon Guards,. to be Lieutenant, vico
James Edward Bradshaw, deceased.
9th Light Dragoons—Ensign Thomas Albin Saunders,
from.the 23rd Foot, to be Cornet, vice Bashford, pro-

moted.
17th Light Dragoons—Lieutenant John Illidge Frazer
has been superseded for being absent without leave.
2d Regiment of Foot—Lieut. Henry Grattan to be Cap-
tain, by purchase, vice William Campbell, promoted by
purchase to ao. Unattached Majority; Ensign Frederick
Blake to be Lieutenant, by purchase, vice Phillips, pro-
moted ; Ensign James Campbell Stratford to be Lieu-
tenant by purchase, vice Grattan ; Gentleman Cadet
Charles William Davie, from the Royal Military College,
to be Ensign, without purchase, vice Blake, promoted ;
Gentleman Cadet Robert Bleazby, from the Royal Mill.
tary College, to be Ensign, without purchase, vice Wm.
Edward Montague, appointed to the 9.lth Foot.
3d Foot—Lieutenant George Grant Suttie to be Captain,
without purchase,vice William Edmund Cater, deceased ;
Ensign Henry Thomas Halahan to be Lieutenant, with-
out purchase, vice Suttie.
sth Foot—Ensign Adolphus Nicole to be Lieutenant by
purchase, vice Legge, whose promotion by purchase on
the 18th January, 1861, has been cancelled.
6th Foot—Lieutenant John Dennis Ryan, from half-pay
of the late 22d Dragoons, to be Lieutenant, vice William
Wastle, appointed Paymaster 6th Foot ; Ensign James
Fitz-Gerald to be Lieutenant, by purchase, vice Ryan,

who retires.
Bth Foot—Gentleman-Cadet William Willoughby Eger-
ton, from the Royal Military College, to be Ensign,
without purchase, vice Chute, promoted ; Gentleman-
Cadet Charles Frederick Malet, from the Royal Military
College, to be Ensign, without purchase, vice Jones,

promoted.
10th Foot—Gentleman-Cadet Henry Guy Carleton, from
the Royal Military College, to be Ensign, without pur-
chase, vice Kelly, promoted.
12th Foot—Gentleman-Cadet Charles Henry Gardner,
from the Royal Military College, to be Ensign, without
purchase, vice Gun, promoted.
13th Foot—Captain Henry Neville Cotton Thurston, from
the 61st Foot, to be Captain, vice Samuel Head, who
exchanges; Captain Henry Seymour Hill, from the 41st
Foot, to be Captain, vice Richard Nugent Clayton, who
exchanges Gentleman-Cadet Charles Bowerbank Camp-
bell, from the Royal Military College, to be Ensign with-
out purchase, vice Burton, promoted; Lieut. John J.
Paterson Fox to be Adjutant, vice Edward Lutwyche
England, who resigns that appointment.
15th Foot—Gentleman-Cadet Francis Walter Cary, from
the Royal Military College, to be Ensign, without pur-
chase, vice Boultbee, promoted.
18th Foot—Gentleman-Cadet George Albert Macdonnell,
from the Royal Military College, to be Ensign, without
purchase, vice Smith, promoted.
20th Foot—Gentleman-Cadet Agathus Henry Elster, from-
the Royal Military College, to be Ensign, without pur-
chase, vice Gibb, appointed to the 3d West India Regi-

ment.
22d Foot—Gentleman-Cadet John Claxton Addison, from
the Royal Military College, to be Ensign, without pur-
chase, vice William Farley, who retires.
23d Foot—Gentleman Cadet Rebut Frederick Williamson
from the Royal Military College, to be Ensign, without
purchase, vice Thomas Albin Saunders, appointed to the
9th Light Dragoons; Gentleman Cadet Alexander Spink
Beaumont, from the Royal Military College, to be En-
sign, without purchase, vice Worswick promoted in the
3d West India Regiment.
30th Foot—Gentleman Cadet Thomas Brown Stewart, from
the Royal Military College, to be Ensign, without pur-
chase, vice David Matthew La Touche, who retires.
33d Foot—Gentleman-Cadet Frederick William Durrant,
from the Royal Military College, to be Ensign, without
purchase, vice Lynch, promoted.
41st Foot—Captain Richard Nugent Clayton, from the
13th Foot, to be Captain, vice Henry Seymour Hill, who
exchanges.
51st Foot—Ensign. Empson Edward Middleton, to be
Lieutenant, by purchase, vice William Henry Saunders,
who retires ; Lieutenant William Hoare Hume, from the
Royal Antrim Rifles Militia, to be Ensign, by purchase,
vice Middleton.
57th Foot—Gentleman Cadet John Thornton Down, from
the Royal Military College, to be Ensign, without pur-
chase, vice Murray, promoted.
58th Foot—elitlvaiaA 4aavt Alictroy M 4491 Crogb,

from the Roy; k 1 Military College, to be Ensign, without
purchase. vice, Key, promoted.
61st Foot- -Capta: in Samuel Bead, from the 13th Foot, to
be Captain, YiCA Henry Neville Cotton Thurston, who
exhanges.
62d Foot—En 'sip L Charles Callaway Ross, from the East
Kent to be Ensign, by purchase, vice John P.
Sargent, who. retires.
70th Foot—The second Christian name of Ensign Cuppago
is Greer, and : aot Green, as stated in the Gazette of Dec.

21, 1860.
71st Foot—Gentleman Cadet Felix James Taylor Brown,
from the Roya 1 Military College, to be Ensign, without
uurchase, vice Morgan, promoted.
72d Foot—Gen deman Cadet Walter Frederick Kelsey,
from the Royal Military College, to be Ensign, without
Wrchase , vice Maar, promoted.
78th Foot—Gentleman Cadet Anthony Jones Carstairs,
from ilia Royal Military College, to be Ensign, without
purchase, vice James Hart, who retires.
83d Foot- _-Gentleman Cadet Charles Hay Tollemache,
from the goyal Military College, to be Ensign, without
purchase, vice Powys, promoted.
84th Foot-1 ntenant Thomas White to be Captain, by
Walter C. E. Snow, who retires; Ensign
pJuorhenhaHseun, v'',c:te,Knox, to be Lieutenant, by purchase, vice

White. •
92d Foot—Lieuten,cint George Hollings Best to be Captain,
b 3, purchase, vice Gibson Stott, who retires ; -Ensign and
Adjutant Adam aidington, to have the rank of Lieute-
nant ; Ensign Alex ander Robert Abercromby Boyd to
be Lieutenant, by purchase, vice Best; Ensign Charles
Calla way Ross, front thl3 62d Foot, to be Ensign, vice
Hicko, promoted ; Evsiga Adam Eddington, to be Adju-
tant, vice Lieutenant Chmrles Alexander Humfrey, who
has resigned that appoitr.tment.
2d West „India Regiment—,Captain Henry Augustus Wil-
liams, from half-pay unattoched, to be Captain, vice W.
C. O'Shnughnessh appointod to the 12th Foot; Lieu-
tenant Arthur G. Smith has been permitted to retire from
• the service by the sale of his commission.
UNATTACHED.—Captain William! Campbell, from the 2d
Foot, to be Major, by purchase; Lieutenant Arthur
Gonne Bell 'biotin, from the 9th Light Dragoons, to be
Captain, without purchase.
MEDICAL DEPARTNENT.—Staff-Surgeon James Carroll
Dempster, M.D., to be Surgeon-Major. Staff .Surgeon
Edward Scott _Docker to be purgeon-Major. •
PURVEYOR'S DEE'ARTMENT.--DepUty Purveyor-in-Chief
David Fitz Gerald to be also a Principal Purveyor to the
Forces, under the Royal Warrant of 24th December, 1860.
The following Purveyors to be Principal Purveyors to
the Forces, under the Royal Warrant of 24th December,
1860 :—Matthew Wreford, William Henry Clapp, Wil-
liam Macdonnell, 'William John Arnold Tucker, Kentish
Jenner, Thomas 0. Hagger, Edward Morris, Charles
Barrett Knapp, GrugeoREVET n Bridgett.
B.

The undermentioned promotions to take place come-
quent on the death of General Sir George Scovell,
Colonel of the 4th Light. Dragoons, on Jan. 17, 1861 :
Lieutenant-General Richard Lluellyn, C. 8., Colonel of
the 39th Foot, to be Generati-
Vajor-General Thomas Bluke, Colonel of the 10th Foot,
to be Lieutenant-General.
Brevet-Colonel Henry John French, from Lieutenant-
Colonel Unattached, to be Major- General.
Brevet-Lieutenant-Colonel the Bon. James Colborne,
Major, half-pay, Unattached, to be Colonel.
Brevet-Major William Christopher Parkin Elliott,
Royal Marines, to bo Lieutenant-Colonel.
Captain Dudley Clarges Hill, 40th Foot, Dietric In-
structor of Musketry, to be Major. ,