P O STSCRIPT.

SATURDAY.

In the House of Commons, last night, the Premier made the financial statement; the House, on the motion of Sir CHAREX8 WOOD, Chancellor of the Exchequer, having resolved itself into a Committee of Ways and Means.

Lord Joust Itusaraz prefaced his statement by declaring that indis- position made him feel unequal to the important task which he had that evening undertaken. He would confine himself to little more than simple statement; postponing argumentative discussion to future opportunities.

Lord John rapidly surveyed the commercial distress caused by the scarcity, the high price of corn, &c.; its effect on trade, on the social condition of the people, on the Excise, and on the sources of the revenue generally. Mr. Huskisson had remarked, in 1817, that after a great famine a falling-off of ten per cent in the revenue ought not to be made a subject of wonder. Lord John also reminded the House, that in the last statement made by Mr. Goulburn before he went out of office, he only took some of his estimates for three-quarters of the year to which his speech applied. That circumstance, with some others, had transferred 628,0001. which ought properly to have been included in the expenditure of that year, to the expenditure of the following year, 1847-8; apparently augment- ing a deficit which was really no more than 304,0001. Lord John also took cre- dit for the increase of revenue derived from the alteration of the Sugar-duties, which yielded 3,574,0001. in 1845 and 4,414,0001. in 1847. The balance-sheet of the past year was presented on the 3d of February 1848. From that it appeared that there was an excess of expenditure over income during the last year of 2,956,6831.; but in that sum was to be included 1,525,0001. granted for the relief of distress in Ireland, and 450,0001. the remaining China-money, which was stopped at the Cape of Good Hope on its road to England and applied to the pur- poses of the Caffre war. The real excess would be 981,6831. Lord John recited the estimate made by the Chancellor of the Exchequer for the past year, and stated the produce, partly estimated for the remainder of the year to the 5th of April 1848. The Customs, estimated to produce 20,000,0001, had only produced 19,774,0001.; the Fxeise, estimated at 13,700,0001., pro- duced 13,340,0001.; Stamps, estimated at 7,500,0001. produced 7,150,0061.; Taxes, estimated at 4,270,0001., produced 4,340,0001.; Property-tax, estimated at 5,300,0004 produced 5,450,0001.; Post-office, estimated at 845,0004 produced 923,0001.; Crown Lands, estimated at 120,0001., saroduced.60,0001. ; Miscellaneous, estimated at 330,0001., produced 325,0001.: the whole estimate, calculated at 52,065,0001., had produced 51,362,0601. Referring to some of the more important items, Lord John Russell stated that there had been an increase in the pro- duce of duties on molasses, sugar, rum, and tobacco; but, on the other hand, there had been a decrease in the revenue derived from the duties on corn, tim- ber, wine, malt, and spirits. The estimated expenditure for the year ending on the 5th of April 1845 was 51,576,0001.; but the excess on the Navy Estimates has been 185,0001., .m the interest on the Loan 280,0001., and interest on Exchequer Bills 142,0001. The expenditure actually voted for the year 1847-8, including several sums which were not contained in the budget, was 52,315,7091.; the estimated meipts to which he had alluded were 51,862,0601.; leaving a deficiency of 953,6491.

Lord John stated the estimate of the revenue for the year commencing on the 5th of April 1848 and ending on the 5th April 1849—

Customs L19,750,0(0

Excise 13,000,600

Stage-coaches 500.000

Stamps 7,20),000 Taxes 4,310,000 Income-tax 5.200,000 Post °thee 900,000 Crown lands 60,000

Miscellaneous 300,000

making a total amount of 51,250,0001. Taking the expenditure voted at 52,315,7094 and the estimated receipt of revenue for the next year at 51,250,0001., there would therefore be a deficiency of 1,065,709/, that is on the sn'tion that the expenditure would be the same m 1848-9 as in 1847-8. But there was at present a sum of 245,5001. due for the expenditure of the Navy for the year ending in April 1847; there was also a sum of 1,100,0001. to be paid for the expenses of the Caffre war; and, taking these two sums, together with the deficiency which he had already mentioned, there would be a deficiency of 2,411,2091.

Now he had been desirous to lay this condition of the finances at an early pe- riod before the House, in order that it might take it into the fullest consideration, and might resolve upon that course which was most fitting to the interests and the credit of the nation. Various courses were open to the House; arid all he had to do was to state the course which appeared to the Government to be best; leaving it to be decided by the deliberate judgment of the House, whether what Ministers proposed was most fitting, or whether any other course would be more conducive to the welfare of the country. Itis obvious that deficiency must be met either by taxation or by great reduc- tions in the Army and Navy. Extreme opinions had been expressed out of doors on the defences of the country. On the one hand, it had been stated that Foreign Powers, especially France, were making great preparations; that there might be

sear—invasion- and that our preparations were inadequate to meet this danger. On the other hand, it was said that there was every prospect of peace; that the in. clinations of Foreign Powers were friendly; that invasion was most improbable;

and that our naval and military estimates were extravagantly high. In stating the views of the Government on these discordant opinions, he wished to guard himself against the supposition that there was anything in the present state of our relations with France which threatened the rupture of peace. "Sir, no man in this House can be more persuaded than I am of the advantages to this country, to all the countries of Europe, to all the world—the advantages and the benefits of peace. I am impressed, likewise, with the advantage to both those countries of friendly relations with France; and no one is more anxious

than I am that the relations of these two powerful countries, both possessing representative and constitutional governments, both having had enough of what is called glory to satisfy those who are most greedy for reputation, may hence- forth be of the most amicable—I could wish them to be of the most intimate character." (Cheers.)

He wished to guard himself upon another point A foreign writer, ani- mated by the most kindly feelings towards England, had described the Duke of Wellington as having made a pamphleteering reply to the Prince de Joinville. Nothing could be more foreign to the Intentions of the Duke of Wellington. Nothing had given that illustrious individual greater pain than the publication of senti- ments which he had confidentially expressed to a brother officer. The Duke of Wellington, as was and is his duty, had communicated to the Government of the country that which he conceived to be a deficiency in our defences; but in so doing, nothing was further from his wish than to make any public appeal,

or in any way to inflame or exasperate relations between England and other countries. No one could dispute, however, continued Lord John, that this

country might be involved in war. Since the peace of 1815, disputes between

this country, the United States, Russia, and )!ranee, had been allayed only by great forbearance on both sides. However tranquil, therefore, the atmosphere

might be at present, there might be at any time an unforeseen storm; and he was the more convinced of that circumstance when he recollected that Mr. Pitt in 1792 anticipated a long continuance of peace. It must be borne in mind, that in the last three hundred years the elements on various occasions had been our friends, and expeditions against us, prepared with the most zealous care, bad been defeated only by adverse winds. Thescience and skill of late years had enabled seamen to traverse the sea against winds and tides ; and that circum- stance might induce hostile powers to consider this country more open to invasion. Under a King who is a sincere lover of peace, since 1833, the active preparations and increase of the naval force of France had been very extensive. Lord John read returns to the French Chambers: the number of seamen had increased from 18,000 to 29,000; vessels at sea, from 153 to 216; steamers, from 66 to 120; the expenditure from 2,280,0001. to 3,902,0001.: the whole sum for the French Army and Navy in 1849 is 23,817,0001. Several of the French steamers are of such a size that they each carry from 1,000 to 1,500 men. Preparations have not been wanting on our side. Since 1835, we have increased the number of our seamen from 26,000 to 48,000 men; of our soldiers, from 100,991 to 138,769; and of our ordnance, from 8,252 to 14,294; making an in- crease of 60,321 upon our military force in the whole. Besides, the late Govern- ment had organized 15,000 soldiers of the line as pensioners. The present Go- vernment have formed a force of 9,800 men out of the workmen in the dockyards, who, as infantry and artillery, are in possession of, and know how to work, 1,080 tans. A plan has also been carried into effect for drilling and organizing the Coast Guard, and for keeping a supplemental force ready in case the services of the Coast Guard should be wanted elsewhere; which would supply a force of 6,000 men. Lord John showed that the charge of the Army, Navy, and Ordnance, for the defence of the country, had increased from 11,780,0731. in 1835 to 17,340,0961. in

1847. Lord John then called the attention of the House to our condition as regards the Navy. He proposed to make an increase of 1640001. upon the Naval Estimates; but of that sum only 70,0001. would go to the real increase of our naval expendi-

ture; 94,0001. being for expenditure not naval. He read a letter of Lord Auck- land to himself, describing in detail the various ships which he intended to keep in commission, and in different degrees of preparation during the present year.

It was proposed to have a reserve of steamers at Portsmouth, Plymouth, Cork, and Sheerness. To the Marines would be added 1,500 men; 1,500 had been added

last year. With regard to the defences of our its and dockyards, their de- ficiencies had attracted the attention of the late Government, which had given orders for their examination. That subject had been too long neglected; but since the year 1844, 262,000/ had been expended on the works for the defence of Ports- mouth, Plymouth, and DevoriportS Pembroke, Sheerness, and the Thames; and they were now, in the opinion of theDukeof Wellington and healaster of the Ordnance, in a satisfactory state. Returning to the Army, he said, that although Ministers did not propose to increase its force by a singleman, yet the number of soldiers in the United Kingdom would be increased by the return this year of 5,000 men, if not more, from India; so that in the course of the summer he expected that we should

have a force of 60,000 men in the British islands. As compared with the year 1835, this would be an increase of 20,000 men. The increase on the estimate for

the Army was 43,000/. only. Government proposed to make a much larger in- crease in the Ordnance Estimates. It was obvious that while we could make a rapid increase in our infantry, we could not make an increase of our artillery in less than eighteen months or two years. It was therefore proposed to increase the grant for the Ordnance by a sum of 245,0001. The whole increase on the Mili- tary, Naval, and Ordnance Estimates, would be 358,0001. There was another species of force, respecting which a measure would be laid before the House in the course of the present session. In considering the question of national defence, it is necessary to take into calculation the chance, however

remote, of an enemy's landing on our shores; and in that case our force of 60,000 men would not altogether suffice to garrison the dockyards and other points of

defence, and to supply troops for the field. In former times the country looked for defence to what was the favourite force of one of the greatest men the country ever produced, Lord Chatham: ho meant the Militia. There were, however, difficulties on that subject now, which did not formerly exist. if you were to allow men to serve by substitute, it was probable, from the migratory habits of our labouring population, that the substitute would not be forthcoming when

54,596,500

Now, it would be idle and presumptuous to say that the country would at once return to a state of prosperity; yet they might look forward to an improved con-

dition of commerce and manufactures. They might expect an improvement of income, and a diminution of expenditure occasioned by the Caffre war, which Sir Harry Smith said was now at an end. Lord John therefore thought that only a temporary increase of taxation would be required. He proposed that they should continue the Income-tax, which would expire in April next, for five years, and in.- crease its amount from 7d. to is. in the pound, or from 3 to 5 per cent for the next two years. (Loud ironical cheers.) Considering the distress of Ireland and the efforts which its landlords and tenants are making to relieve it—though in justice we have a right to impose this tax upon Ireland as well as upon England —(Loud cheers)--admitting fully the justice of that course, Ministers considered that this was not the moment—(Bursts of laughter, cries of " 011, oh! " and

cheers from different parts of the House.) He begged honourable gentlemen to consider, that if they checked the exertions in Ireland they would check also the returning prosperity of the United Kingdom. He proposed to take the Property- tax exactly as it was proposed of late years, on the same principles as those on which it was proposed by Mr. Pitt, on which it was increased by Lords Gren- ville and Lansdowne, and on which it was imposed and defended in 1842 by Sir Robert Peel. (Laughter.) Lord John drew attention to the large reduction of duties which had taken place of late years on articles of consumption by great bodies of the people. There bad been taken off taxes on salt, candles, coals, leather, beer and cider, glass, sugar, butter and cheese, grain and meal, amounting to 10,543,6721. in late years; and the whole amount of annual taxes on articles of taxation taken off since the peace amounted to 39,705,3411. The result of his scheme would be this: the ex- penditure being 54,596,5001., and the income 51,250,0004 he proposed to make up the deficiency by the increase of the Income-tax, which he estimated to produce

3,500,0001.; making a total income of 54,750,0001. He also proposed to remit the

highly injurious duties on copper ore, which were imposed in 1842, and produced 41,0001. When those duties were remitted, he should have a surplus of income over expenditure, amounting to 113,000/. In another year, he trusted that the surplus would be largely increased by the cessation of the expense occasioned by the Caffre war; and it might then be applied to the reduction of those taxes which press most heavily on the elastic springs of industry. It was not in his power at

present to propose any such reduction. He had taken that which some considered the odiou, path of duty; and he should conclude by expressing his conviction, that, by adopting his suggestions, they would restore the commercial credit of the country, preserve the public faith unimpaired, and would run no danger of seeing the empire insulted or injured by any power whatever.

Lord John moved two resolutions, embodying his plan for augmenting the Income-tax; stating that he should take the sense of the House upon them on Monday sennight.

A long and desultory debate ensued. Almost all the speakers expressed dismay and reprobations. Mr. Ilumz asked whether they were all mad, that in a time of increasing distress among manufacturers they should pro-

pose increased taxation? He should undoubtedly propose reduction in our establishments to meet the excess of expenditure. Mr. BANKES, the Marquis of GRANBY, Mr. G. R. ROBINSON, and Mr. NEWDEGATE, saw in the disastrous state of the finances the result of free trade. Mr. OSBORNE believed that if there had been a regularly-organized Opposition, such a financial statement

would never have been made—it would have been the death-warrant of

any Administration: Sir Robert Peel was now avenged for Lord John's speeches against his Income-tax. Mr. Osborne thought they might have increased efficiency of national forces with their present expenditure. Sir BENJAMIN HALL hoped that the Income-tax would at least be more justly distributed. Colonel SIBTHORP was surprised at no amount of hypocrisy, duplicity, or tergiversation, from the Treasury bench. Mr. FRANCIS

BARING could not concur in a proposition which recognized the Income-tax as a permanent impost; and he called the House to its duty of investigating

the votes proposed by Government with somewhat more rigid attention to economy than had been the practice. Mr. DISRAELI effused one of his most animated criticisms on the formidable recurrence of a Whig deficit; on Sir Robert Peel's plausible professions that the Income-tax should be only tem- porary; on the result of the Reformed Parliament—constantly increasing expenditure; on free trade, that great principle which inflicts 5 per cent In- come-tax upon us; on Mr. Cobden's perpetual peace, copied from St. Pierre, Rousseau, and Robespierre, that " apostle of perpetual peace," and followed by M. Cremienx's anticipation of "liberty, equality, and fraternity," the motto of the Jacobin banner. Mr. COBDEN characterized Lord John's speech as a menace to France, and enforced the policy of reducing the establishments to the level of income by means of slashing retrenchment*. Mr. BRIGHT followed.

Some few speakers supported Lord John. Sir CHARLES WOOD de- fended the Ministerial scheme. Mr. MONCKTON MILNES extended to them the asgis of his goodnatured apologetics. Sir ROBERT Itimais gave his general concurrence. In his defensive speech, Sir CHARLES WOOD declared his belief that when the Income-tax was voted in 1845, no man really believed that there

you would place parties under military service who had hitherto been

I believe it to be right, as I am sure it is useful, to have a portion of -Ai it most consider, next year, whether it would not be expedient to make an addi- tion to the Regular Army of the country. He proposed, for the present, to take a grant of 150,0001. to lay the foundation of this Militia force.

Lord John stated the whole expenditure which he contemplated for the year Fended Debt.

Unfunded Debt £27,778,000 752,600

£28,530,600

Consolidated Fund charges 2,750,000 Caffre War 1,100,000

Naval excess 245,500

1,345,500

7,726,610 Navy

Army 7,162,996

Ordnance

2,924,835

Miscellaneous

4,006,000

21,820,400

54,446,500

Militia

t50,000

he was wanted; and if you were to refuse permission to serve 'Lute, it. He should propose a measure to meet those difficulties. " If it be trained to the use of marched to any point at which their services might be required." But if the House should come to the conclusion that a Militia force was not desirable, then and on the breaking out of arms, capable, hostilities,

ending the 5th of April 1849, as follows—

The Committee voted 8,000,0001. out of the Consolidated Fund towards the supply granted to her Majesty ; and .ordered lloird:John, Russell's re- solutions to be reported. .

The House of Lords, yesterday, proceeded with the Diplomatic Rela- tions with Rome Bill. An amendment suggested by the Duke of WEL- LINGTow, substituting the title " Sovereign of the Roman States" for that of " Sovereign Pontiff," was adopted by Lord LANSDOWNE and the Hoide. The Earl of EGLI-NTOUN proposed an amendment prohibiting the reception of any ecclesiastic as the accredited Minister of the Pope in this country : a smart discussion arose. The Marquis of LANSDOWNE thought that the right' to refuse any Minister who might be distasteful to the Crown ought to be left, in the case of the Pope as in that of any other foreign sovereign, to her Majesty and the Government. The Earl of ABERDEEN said that the amendment could not be rejected without incurring the dan- ger of grave consequences, and deprecated the presence of an ecclesiastic as the Pope's Nuncio in this country. Lord STANLEY. and Lord BEAU- moNT supported the amendment. The Earl of SHREWSBURY demanded perfect diplomatic reciprocity. The Duke of WELLINGTON suggested another amendment, leaving the question still open to the discretion of Government. At last the House divided; and Lord Eglintoun's amend- ment was carried against Ministers,_ by 67 to 64. Another amendment suggested by the Duke of WELLINGTON was adopt- ed, in the shape of an addition, as follows- " Whereas it has been enacted and declared, in the provisions of various ancient laws of this realm, that the Sovereign thereof, acting by and with the advice and under the authority of both Houses of Parliament, is the sole and supreme head and governor of all matters, ecclesiastical and civil, within this realm or elsewhere the dominions of the Crown of England; and the same acts contain provisions having for their objects to control, regulate, and restrain the acts, conduct, and relations of the subjects of this realm with Foreign Powers upon the said matters; and whereas it is essential to the welfare of these realms that the said provisions, as to the crown and government thereof, should be invariably maintained, and it is expedient, nevertheless, to remove any doubts which may exist as to the competence of her Majesty, her heirs and successors, to establish diplomatic rela- tions with the Sovereign of the Roman State."

The bill passed through Committee; to be reported on Monday.