the Opposition-we shall offer to that proposition our most determined opposition. SIR WILFRID LAWSON said, he wished to ask the right hon. Gentleman whether the Resolution giving precedence to the Procedure Rules would be moved during that week, or not until the House met again?

sary that I should commence the Statement I have to make by the usual expression of regret at the period of the Session at which I am now making it being so advanced; but I do regret extremely that year after year it should be necessary to make this Statement at a time when it is impossible to have any MR. GLADSTONE: My intention is considerable part of the House present, to put that down as a Motion to be taken however much they may desire to attend. before the Business commences in the At the same time, I must be permitted regular course on Tuesday, 24th October. to express some doubt whether, at whatMR. ONSLOW asked whether, when ever time the Statement might be made, the House met in October, the Prime it would secure a general or crowded Minister would sanction, or in any way attendance of the House. I hope that support, Private Bills or Motions in the there are here to-day a very considerable Autumn Session? There were many number of Members who take an intehon. Gentlemen who had crotchets, and rest in the discussion of Indian financial would be likely to bring in Bills or Reso-subjects, although it is hardly possible lutions. Would the Government sanc- that a Statement so long and so dry as tion the promotion of such Bills or Resolutions-especially Liquor Bills?

MR. GLADSTONE: The hon. Gentleman is very vigilant on the subject of the particular kind of Bills in which we know he feels a tender interest. I have already stated that the Government have no disposition to ask the House to sit in the Autumn to consider what is commonly termed private legislation; and as it is our intention to ask the House for all its valuable time on each night, down to the usual period of adjournment, I do not think the hon. Member need be in a state of alarm. I do not speak of what are strictly called Private Bills. They take their own course under a different set of Rules, and nothing I have said has any reference to them.

MR. W. M. TORRENS wished to know whether, if Bills which had been referred to Select Committees had to stand over until the expiry of the Adjournment, they would hold the same place as if the Adjournment were only for a week?

MR. GLADSTONE: So far as I am concerned, they will follow the general Rule of the House, and will in no way be affected by any view we may entertain.

that which it is my duty to make should command any general attention or interest. I think it will be desirable, before I begin the Statement I have to make, to offer some explanation upon two points which have caused me considerable perplexity, and which may be described as financial puzzles, but which it is essential the House should understand, as they exercise considerable effect upon the Accounts and the Estimates we have now before us, and, if unexplained, would lead to misapprehension.

The first of these subjects is the mode in which the Imperial contribution in aid of the cost of the Afghan War has been brought to account in the two years 1880-1 and 1881-2. The House may remember that last year I explained the plan which had been adopted in bringing this contribution to account. It was done with the object of securing, as far as possible, that the War Expenditure which fell in 1881-2 should be balanced or eliminated by an equivalent amount of War Contribution, so that, in the years subsequent to 1880-1, the year in which the war ended, the Accounts and Estimates of the Government of India should be as little as possible disturbed by abnormal expenditure arising out of the war. With this view it was determined, as I said last year, at the time the Estimates were prepared, to credit the Revenues of 1881-2 with a portion of this Then the balance of £2,000,000 out of contribution amounting to £3,000,000. the £5,000,000 given in aid of the War Charges remained for the previous year 1880-1. When the Accounts of 1880-1 were about to be closed, it was necessary

to come to a definite decision as to the Government of India to, or received by amount of the War Contribution to be it from, the Provincial balances. I will credited to that year, and it was then ask the House for a few moments to found that the War Charges which would follow me in a review of the effect fall in 1881-2 would probably not exceed which these items have had during the £2,305,000. That sum only was, there- last three years. In 1880-1 there was a fore, credited to 1881-2, leaving an in- total Expenditure of £76,306,000; but creased sum of £2,695,000 to be credited in that year some of the Provincial Goto the previous year 1880-1. That vernments had saved to the amount of change from what I said last year has, £336,000, while others had exceeded to therefore, been made in the distribution the extent of £38,000, the difference of the contribution. I ought, however, being £298,000, which the Government to add that the present Estimate for the of India had to pay to the Provincial year 1881-2 gives for War Charges a balances, so that the total Expendisum of £1,610,500; Frontier Railways ture of the Supreme Government was are put at £235,200 in 1881-2, besides £76,604,000. In 1881-2 the Budget £223,000 for their completion in 1882-3, Estimates of the Provincial Governments making a total of £2,068,700, so that showed that some of them expected to about £236,000 more than was required draw £821,000 from their balances, while was reserved; and by the postponement on the balances of others there was an of part of this outlay to the present year, increase of £114,000. While, therefore, the Estimates of 1881-2 benefited by the total estimated Expenditure, Im£259,000 more than was intended. perial and Provincial, was £70,012,000, The next point on which I desire to the Supreme Government had only to offer some explanation is with regard to find £69,305,000, the remainder being the Provincial surpluses and deficits, by obtained from the Provincial balances. which the Estimates of the last two years But the flourishing state of the Revenue have been very largely affected. Last for that year enabled the Supreme Goyear I endeavoured to explain what was vernment to repay to the Provincial the effect of the introduction of these Governments the contributions which headings upon the Revenue and Expen- had been demanded from them during diture of the year, and, at the same time, the time of the Afghan War, amounting I expressed a doubt as to whether to £670,000. The quinquennial adjustthough they ought to be shown in the ments of the contracts with the ProvinAccounts somewhere they ought to cial Governments fell in that year, and form part of the Accounts of Revenue the same prosperous condition of the and Expenditure. On that subject a Revenue enabled the Government to correspondence has taken place with the make grants in anticipation of the ProGovernment of India, and I am convinced vincial re-adjustments, amounting to that it would give a false idea of the £360,000. They also made a special position of that Government as regards grant to Bombay, on account of certain its surplus or deficit if these items were refunds of Land Revenue, amounting to altogether omitted. It has, however, been £251,000. Those sums amounted to decided to remove the item of Provincial £1,281,000, which were in the nature deficits from the Revenue side of the of presents made to the Provincial GoAccount, where it used formerly to vernments. But, in addition, the Proappear, so that entries will no longer vincial Governments, instead of exceeding appear which do not actually form an their income, spent less by £41,000, so addition to the income, but only a that the Provincial balances increased transfer of balances. The course now by £1,322,000, instead of being, as was adopted is to show the net result of the anticipated, reduced by £707,000. The deficits and surpluses of the Provincial surplus on the Regular Estimate of Governments on the Expenditure side of 1881-2 was made to appear worse by the Account. Thus, the total Expendi- the sum of those two amounts-or ture of the year, by both the Supreme £2,029,000-than it would have been and the Provincial Governments, being first given, an addition or subtraction is made of the amounts by which the Provincial Governments have either fallen short of or exceeded their income, which amount has accordingly to be paid by the

The Marquess of Hartington

but for the existence of this system of
Provincial finance.
These sums are
simply transferred from the balances of
the Supreme to those of the Provincial
Governments, where they are available
for purposes of Provincial improvement,

been made for a decrease in the Land Revenue of £283,000, owing to the remissions which have been ordered in Bombay, and to the very moderate estimate which has been taken for the North-West Provinces and for Madras, where arrears were collected in 1881-2. Notwithstanding the flourishing condition of the Excise, a reduction has been made in the estimate from that source

and where, as will be seen, it is intended venue Estimates have been, as stated by that they shall be largely utilized in Major Baring, framed with very great that way in the present year. Coming care and moderation. Allowance has to 1882-3, the total estimated Expenditure-the sum of the 36 items enumerated on page 61 of the Budget Statement-will be found to amount to £68,164,000; but a large portion of this is within the control of the Provincial Governments, who, being in funds from the operations which I have been describing, estimate to draw on their balances in the present year to the extent of £1,990,000. The amount, there-in every Province except Bengal, giving fore, which the Government of India will a net reduction of £80,000. The net have to provide is not £68,164,000, but Revenue from the Railways has been that sum less £1,990,000, or £66,174,000. taken at a diminution of £466,000; that I have laid on the Table a Statement. is an estimate which is considered an which contains most of the figures which extremely, almost an absurdly, low one; it has been usual to give in the Financial and I think that, as far as the results of Statement for the purpose of comparing the present year have yet been ascerthe results of the three years under re- tained, it is shown to be very greatly view; and it will therefore be unneces-under-estimated. A very moderate estisary for me to enter into many details respecting them.

The Expenditure of 1880-1 was reduced below the Estimate by £287,000, and, the Revenue being increased by very nearly £2,000,000, the anticipated deficit of £6,220,000 was reduced to an actual deficit of £4,044,000. In 1881-2 the Regular Estimate, as compared with the Budget Estimate, showed that the Revenue, omitting the English War Contribution, was increased by £3,455,000 over the Estimate which I gave last year, one-third of which was derived from opium, another third from Productive Works, and the remainder from excise, interest, extra army receipts, &c. The Expenditure of 1881-2, as compared with the Budget Estimate, shows, apart from the Provincial adjustments, very little change, the reduction being only £75,000. The ordinary Army Charge was about £500,000 more than was anticipated, which was mainly due to expenses indirectly connected with the military operations in Afghanistan, while the direct charges for those operations and the frontier railways was about £1,000,000 less. Comparing the Expenditure shown by the Regular Estimates for 1881-2 with the Accounts for 1880-1, and deducting the War Contribution as well as the War Charges, it appears that the Revenue was increased by £750,000, and that the Expenditure was increased by £6,472,000, which I will presentlyexplain. I come now to the Budget Estimates for the present year, 1882-3. The Re

mate has been taken of the increased consumption of Salt in consequence of the reduction of duty, to which I shall revert by-and-by. As to the Opium Revenue, it has been estimated in the present year £588,000 below the regular estimate of the net receipts in the preceding year; at the same time, I have to state that it has been estimated in the present Budget at £750,000 more than in that of 1881-2, when it was taken at £6,500,000, a low estimate which I endeavoured to justify this time last year. Major Baring has entered at very great length in his financial statement into a discussion of the Opium Question. It will be unnecessary for me on this occasion to follow him into any discussion on the moral or political aspects of the question. All that we are concerned with at present is its financial aspect, and how far the Estimate which has been taken for the present year is justified by the condition of the Revenue. Major Baring on this point shows that, although, no doubt, elements exist which give to the Opium Revenue a precarious character in future, although competition both from foreign opium and also from the Chinese growth may ultimately affect it, yet the great fluctuations that in former years occurred in the receipts and in the price of opium were chiefly owing to the varying amount of the quantity offered for sale; and he has shown that, since the policy was adopted of establishing a reserve and offering the same number of chests for

I am able to announce some reduction-I regret it is not larger-in one branch of Expenditure, that on the Army.

charges formerly borne by the people. | resume the course of improvement which It is an increase which I am not con- had been necessarily checked, and also, cerned to explain away or to apologize to some extent, to make up for time for. It is in part due to causes over which has been lost. which the Government can exercise no control. It is in part due to the development of Public Works already constructed, and which, as business increases, In the financial discussion at must, of course, cost more in working Calcutta, General Wilson made a comexpenses; but the Expenditure is more parison with the year 1877-8-the last than balanced by the increased Revenue in which there was no disturbance by they bring in. It is in part due to the extraordinary War Charges; and he activity of Provincial Governments and stated that a reduction had been effected local bodies in the construction out of of £259,000. I have not the materials funds at their disposal of a minor class to explain exactly where the reduction of Public Works, such as roads, bridges, has been effected, especially as, accorddrainage works, sanitary improvements, ing to the statement of General Wilson, and minor local improvements of all it is accompanied by an improvement kinds. These are works for the con- in the position, pay, promotion, and nonstruction of which it would not be justi- effective pay of officers and soldiers in fiable to borrow, as they produce no both the British and Native Armies. At. direct return; but they are undoubtedly all events, I think the broad fact will quite as necessary for the progress and show that the Military Administration development of the country as-if they has been conducted with due regard to are even not more necessary than-the economical considerations. Certain remore showy and pretentious works which ductions in the Establishment have been are known by the name of Productive sanctioned recently, for which it has not Works. It is on this class of Public been possible to take full credit in the Works, which do not bring any imme- Estimate for the present year. The rediate and direct return, that the pro- ductions in the British Army which have gress of the country, especially in the been sanctioned are-four batteries of parts that are least advanced, mainly Horse Artillery, two of Field Artillery, depends, and as to these I should be and five garrison batteries of Artillery. sorry to check the activity of the Pro- At the same time, two reduced garrison vincial and the public bodies. Part of batteries have been converted into mounthe increase is due to the improvement tain batteries. There is a reduction of of the revenue-producing branches of 11 and an increase of two, making a Expenditure, such as the institution of net reduction of nine batteries of Ardepôts for salt and advances for the tillery. Two remaining garrison batteries cultivation of opium. Part of the in- are also increased in strength. The crease, though nominally expenditure, is financial results, prospective and practidue to the assumption by the Govern- cal, represent a reduction of between ment of payments hitherto made by the £70,000 and £80,000 a-year. In the cesspayers in parts of the country occu- Native Army the reductions which have pied by the poorest class of cultivators. been recommended and sanctioned are These increases are, in every intsance, in Cavalry, three Bengal regiments the result of improvements which, I admit, could not be made under the pressure of war or famine, or when the disturbance of the rate of exchange placed the Government in difficulty, and compelled it to enforce a disagreeable retrenchment. The late Government was necessarily driven to postpone improvements of this character, and I think they were right in doing it rather than resort to increase of taxation for the purpose. At the same time, I do not think we are liable to any reproach when, under no such pressure, with an increasing Revenue, we endeavour to

and one Bombay regiment; in Infantry, six Bengal, eight Madras, and four Bombay regiments. These are reductions of cadres, and concurrently with them there has been an increase in the numerical strength of the remaining regiments to 550 of all ranks in each Cavalry regiment, and 832 in each regiment of Native Infantry. The practical result is that there is the same number of rank and file in the new Establishment as in the old. The ultimate financial saving is estimated to amount to £100,000 or £120,000 a-year. In making this reduction, the Government of India