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he sketched a plan by which the Indian Government should take railway-making into its own hands, and construct the lines on its own account, borrowing the necessary capital on its own credit, and not through the medium of boards sitting in London. He believed the Government could do the work both more cheaply and better than the experience of the last few years showed could be done where the body which contracted and that which had to take the risk were different.

Viscount Halifax had no morbid objection to increased expenditure on its own account, and he saw but little hope of reducing it; but he urged the expediency of facing the fact, and of taking measures to square the expenditure and the revenue. He was himself sceptical as to the alleged re-productiveness in the literal sense of expenditure on public works; but he admitted that was not of itself a sufficient reason against undertaking such works, and he expressed approval of the plan for the undertaking of railway construction by the Government.

The Marquis of Salisbury concurred with the Duke of Argyll as to the wastefulness, and now, though perhaps not formerly, the needlessness, of the policy of guaranteeing railway enterprise.

Lord Lawrence deprecated as injurious, even to our finances, a great reduction in the numbers of the English army maintained in India, which, considering its proportion to the native troops, and considering also the population of India, its size, and the warlike disposition of many of its tribes, especially on the frontier, he denied was now excessive. He saw, moreover, no possibility of making any material increase in the existing taxes, but he suggested that the deficit might be lessened by relieving the Indian revenue from certain charges. For instance, the expense of soldiers who had passed the Indian frontier ought, he maintained, in fairness to fall on the English revenue, on the same principle on which India paid the cost of troops raised for its service before even they left this country. He insisted on the duty of expenditure on barracks and on the policy of expenditure on irrigation. On the question of the guarantee system he thought gratitude was due to the private enterprise which had started railways in India, but he was convinced the expenditure under guarantees was excessive and unreasonable, and he warmly supported the plan referred to by the Duke of Argyll.

Some further remarks having been made by Earl Fortescue and Lord Lyveden, the subject dropped.

Mr. Grant Duff's statement was made, as is customary with Indian Budgets, in a very thin House, and his financial details had been to a considerable extent anticipated by the speech of the Duke of Argyll a few days previously. Mr. Duff, in an elaborate and lucid exposition, divided the matters he had to deal with into three parts, or epochs, viz. 1867, the latest year as to which we had had complete information; 1868-9, two-thirds actual results and one-third estimate; and 1869-70, entirely estimate. In the first period there

had been an income of 48,534,4127., against an expenditure of 49,542,1077., showing a deficit of more than 1,007,000l., exclusive of 700,000l. spent on reproductive works. The largest source of revenue was land assessment-19,000,000l.; and after this the chief items were:-Opium, 9,000,000Z.; salt, 5,700,0007.; Customs, 2,570,000l.; excise on spirits, &c., 2,238,000Z.; stamps, 2,300,0007. On the other side of the account the largest item of expenditure was due to the army-16,000,0007., of which 12,600,000l. was spent in India. Next came public works, 5,800,0007.; interest on debt, 2,761,8137. payable in India, and 1,498,0007. in England; law and justice, 2,500,0007.; public departments, 1,000,000Z.; diplomatic service, 240,0007.; and education and other civilizing influences, 780,0007. Passing to the following year, 1868-9, it showed an increase of 750,000l. in the receipts, and of 3,750,0007. in the expenditure, over the amounts stated in Mr. Massey's last estimates. The last increase was caused by the transfer to ordinary expenditure of works which had formerly been counted as extraordinary, the failure of crops, the increased price of stores, &c.; and the general result for the year, according to Sir R. Temple's calculations in March, was a deficit of over a million, though Mr. Duff added he expected the actual result would be less satisfactory. For the coming year, 1869-70, Sir R. Temple had estimated a revenue of about 49,300,000. The opium yield, it was expected, would fall off, but Sir R. Temple proposed, and the India Office approved the proposal, to redeem that falling off by changing the certificate tax into an income tax. The expenditure for the year was estimated at 49,250,000., showing a small surplus of 50,000l., about the reality of which, however, Mr. Duff did not appear to be very sanguine. This estimate left out of sight a proposed extraordinary expenditure of 3,500,000l. on remunerative public works, of which 2,750,000%. would be on works of irrigation, and 360,8007. on State railways, particularly the line from Lahore to Peshawur. This led Mr. Duff into a long dissertation on the principles which ought to govern expenditure on public works, and he stated that to carry out the programme of the year, and at the same time to maintain the cash balances at their present pitch-over 10,000,0007.—a loan would be necessary. As the borrowing powers of the Indian Government were on the point of expiring, there was a Bill then before the House to empower it to borrow 8,000,000l. On the whole, Mr. Duff took a hopeful view of the condition of India. The revenue was rising, the exports and imports were on the increase, railways were expanding; but for further help we must look to the reduction of military expenditure, the confining of public works within reasonable limits, and the inculcation of economical habits of thought on the Indian public mind.

Mr. Crawford defended the Indian Railway Companies from the charges of extravagance made in recent despatches of the Indian Executive. He did not object to the Government constructing railways for political objects, and lines through the native states,

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but he did not think that their interference ought to be carried farther.

Sir S. Northcote expressed a general approval of the Budget, but exhorted the Government to proceed cautiously in its railway schemes. Taking a sanguine view of the future of India, he maintained that when a loan was raised for extraordinary expenditure, even on reproductive works, the necessity became greater for securing a working surplus on the ordinary expenditure, and he impressed on the Indian Government the importance of not overworking its departments, and not overstraining its finances.

Sir C. Wingfield commented on the large amount of the expenditure for barracks, and suggested the adoption of two reforms, viz. the separation of judicial from executive and fiscal functions, and the establishment of native consultative bodies.

Mr. Fowler and Sir W. Lawson joined in reprobation of the opium traffic, and Colonel Sykes protested against the maintenance of an unnecessarily large European force in India. Mr. J. B. Smith, Mr. Bazeley, and Mr. Pratt urged strongly on the Government the importance of encouraging artificial irrigation and the production of cotton.

A subject of interesting speculation was touched upon just before the close of the Session, but was rather started for discussion than actually discussed, which indeed the state of parliamentary business at that time would not have permitted. But the Chancellor of the Exchequer intimated his wish that the matter should be brought under the test of public opinion, and the question having been thus raised formed the topic of much exposition and controversy by the public press after the Session closed. It related to the National Coinage, and originated in some remarks made in the House of Commons by Mr. J. B. Smith, who called attention to the recent Report of the Master of the Mint upon the Gold Coinage, and inquired whether the Government was disposed to recommend the adoption of any measure extending to this country the advantages of the International Coinage Convention of December, 1865.

The Chancellor of the Exchequer admitted that the gold coinage of the country was in a most unsatisfactory condition, and that the waste occurring under our present system was enormous, for of 98,000,000 sovereigns coined since 1850, according to Mr. Jevons's calculation, 44,000,000 had disappeared altogether from circulation. Unlike almost every other country in the world, we charged nothing for coining bullion; we gave back the manufactured article, in exchange for the raw material brought to the Mint, without imposing a "mintage" or "seignorage." As a result of this a regular trade had been established (the chief seat of which was at Brussels) of picking out the heaviest sovereigns and melting them down, and they were also largely exported as bullion. Moreover, although after eighteen years' wear, on an average, a sovereign became so reduced in weight as to be no longer a legal tender, we took no pains to call in our light coinage, and the consequence was that 31 per

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cent. of our sovereigns, and 40 per cent. of our half-sovereigns, were not of the legal weight. This evil was a practical one of some importance, because it would shortly be necessary to repair this waste in our coinage, which would cost the country no less than 400,0007. The remedy for this prodigality was to charge a seignorage" for coinage, for which Mr. Lowe quoted the authority of Sir Dudley North, Adam Smith, and M'Culloch, as well as of the present Master of the Mint and Colonel Smith. This, to cover the expense of coinage and recoinage and wear and tear, he calculated at a trifle over 1 per cent. The great argument against it was that if the Mint charged more for the sovereign its value would be increased, and the general transactions of the country would be disturbed. After discussing the various modes of meeting the difficulty, Mr. Lowe's opinion inclined in favour of reducing the value of the sovereign by 1 per cent., as a return for the trouble and expense of coinage. As to the question of international coinage, Mr. Lowe said that the French Government had recently written to him, but at present he had gone no farther than to point out to them that it would be impossible as long as France retained both a gold and silver standard; and he believed the French Government was favourable to adhering to a gold standard. There must also be an identity of weight, fineness, and alloy. Mr. Lowe did not agree with those who saw great difficulties in the establishment of an international coinage. For instance, the French Mint was about to coin a 25f. gold piece, which would be about 22c. less in value than our sovereign, and if we were to take 1 per cent. out of the value of our sovereign for mintage, the value of the two would about correspond. France now charged per cent. for mintage, but it would be necessary for her to charge at the same rate as we did; and, considering that the Spanish doubloon, the American eagle, and the Prussian Frederick would be nearly identical with this 25f. piece, the way would be cleared for a general European coinage. Mr. Lowe concluded by remarking that he had nothing now to propose, but wished the subject to be ventilated in the country during the recess.

The challenge thus offered to public discussion was speedily taken up, but the correspondence which took place in various public channels brought to light a great diversity of opinion among eminent and well-informed persons on the much-controverted doctrines of the currency.

CHAPTER V.

EDUCATION-The Endowed Schools Bill, brought in by Mr. W. E. Forster on behalf of the Government-Objects and character of the Measure-Discussed in the House of Commons, and modified in a Select Committee-Debates on the Measure in the House of Lords-The Bill passed-University Tests Abolition Bill

introduced by the Solicitor-General, Sir J. D. Coleridge-It is opposed by Conservative Members-Sir Roundell Palmer moves Amendments, which are afterwards withdrawn-The Third Reading is carried by 116 to 65-In the Lords it is unfavourably received, and rejected by 91 to 54, the previous Question being moved by Lord Carnarvon-Trinity College Dublin-Mr. Fawcett moves a Resolution condemnatory of Restrictions on Fellowships and Scholarships-Dr. Ball announces that the authorities of the College will not oppose the change-Remarks of Mr. Chichester Fortescue and other Members-The Annual Education Vote for Great Britain-The Vote is moved and Statement made by Mr. W. E. Forster-Debates in both Houses of Parliament on the subject of National Education-Earl Russell introduces the subject in the House of Lords, and Mr. Melly moves for a Select Committee in the House of Commons-Debates on these Motions, which are withdrawn -The Scotch Education Bill, brought in by the Duke of Argyll, and passed by the House of Lords with important Amendments-Taken up by the House of Commons late in the Session-Again much discussed and amended-Returned, with Amendments, to the Lords, who decline to entertain the Bill at that period, and it is lostState of the Episcopal Bench in England-Large Proportion of Bishops disabled by age and infirmity-Lord Lyttelton's Bill for Increase of the Episcopate-It meets with much objection in the House of Lords, and is rejected by a large majority-The Archbishop of Canterbury's Bill for providing for the retirement of incapacitated holders of Sees-Discussions on the Measure in both Houses-It is passed, but limited to two years-Resignation of two English Bishops, and removal of a third by Death before the end of the year-Serious illness of the Primate. ALTHOUGH the Government found itself unable to deal with the large subject of National Education during the present year, in consequence of the pre-engagement of the time of Parliament by the Irish Church Bill, yet the Session was not wholly barren of educational legislation; nor were the great interests involved in the subject lost sight of, but formed the topic of many discussions in both Houses. The principal step taken, and by no means an unimportant one in this direction, was the passing of an Act for turning to advantageous account the funds of the numerous endowed schools scattered throughout the country, whose revenues, either in consequence of the restrictions with which they were fettered, or the apathy and negligence of trustees, had long been wasted or misused. An inquiry into the administration of these schools had recently taken place, by means of a Royal Commission, whose Report threw much light on the mismanagement and neglect into which those institutions had fallen, and showed the urgent need that there was of remodelling the schools, and making more profitable use of their large revenues. On the basis of this Report the Government now resolved to legislate, and Mr. W. E. Forster, as the Vice-President of the Committee of Council on Education, was commissioned to bring in a Bill for the reconstruction and regulation of the endowed schools. This measure he introduced to the House of Commons on the 18th of February in an able speech, which he commenced by referring to the labours of the School Inquiry Commission, of which he had been himself a member, and wished to be considered responsible for the whole of its Report. It was a Commission composed of gentlemen of different politics and different religious persuasions, and they had the satisfaction of presenting an entirely unanimous Report. The object of the Commission was to inquire into the condition of all endowed schools in England and Wales that had not been in

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