the first in the world. The secret of its increase, and in great part of its efficiency, lies in the league with the Americans. It now consists of the following force: ships of the line afloat, 9; building, 9; frigates afloat 18; building, 3; corvettes afloat, 10; building, 11; gunboats afloat, 112; building, 25; all other men-of-war included, 187 steam-vessels afloat, and 48 building.

The present naval force of England amounts to 48 line-of-battle ships afloat, of which 28 are steamers, and 11 building, two of which are to be launched within the next two months, and eight more within the year. Frigates, 34 afloat, 9 building or converting; corvettes, 16 afloat, 5 building; sloops, 80 afloat, and 15 building; gunboats, 169 afloat, 23 building; besides 4 iron-cased ships, two of 6000 tons and two of 3368 tons each. In all, 68 men-of-war of 40,000 tons in the aggregate; and 18,800 horsepower, at 55l. 15s. each horse-power, all to be added to the fleet in the ensuing year. The crews are to be increased by 11,700 men and boys. All the ships in commission are fully manned, and there is no difficulty in getting men. But the naval reserve scheme, which it was hoped would give a force of 30,000 men, has not been successful, as the seamen are afraid that if they volunteer for the reserve they will be employed at once on active service. At present the total force of seamen and marines afloat and for the coast-guard service is 85,500. There are 55 men-of-war, but no ships of the line, in China.

The army for India amounts this year to 92,490 men, and the home army to 143,362; in all, 235,852. The actual increase over last year is only 6,456. By far the smallest, and far the most expensive of all the great armies.

On Friday, February 17, in moving the army estimates, Mr. Sidney Herbert described as follows the relative proportion of the army to the whole population in different countries:

In England, with a population of 28,000,000, you have an army of 220,000, being a force in proportion to your population of one to 128 persons. In France, with a population of 36,000,000, you have an army of 378,000 men, which, mind you,

is the number taken from the estimates, that hardly ever agree with the number actually borne on the army. That is one in 95. In Russia, with a population of 65,000,000, the army numbers 900,000, which is one in 72. In Austria, with a population of 40,000,000, there is an army of 587,000, or one in 68. In Prussia, with a population of 17,000,000, there is an army of 211,000, or one in 80. In Spain, with a population of 17,000,000, there is an army of 142,000, or one in 119. That comparison, it will be seen, puts England lowest in proportion of troops to the population.'

The total outlay upon the two arms for the ensuing year is 29,700,000%., being an increase of 3,618,000l. on the vote of last year, and very nearly double the vote of 1852.

This great increase of expenditure, due partly to the state of European politics, partly to the China war, aggravated by a loss of revenue from the treaty of commerce with France, had to be provided for in the Budget, which was introduced in a speech of four hours, on 10th February-a day memorable in the annals of finance. The expenditure is estimated at 70,100,000l., and the income stood at 60,700,000., leaving a deficit of 9,400,000l. The Chinese war causes an excess of 1,170,0007. in the war estimates, and the French treaty produces a deficiency in the customs of 640,000l. In addition to this, a further extensive measure is proposed for the alteration of the customs' duties.

Mr. Gladstone said, "We propose to abolish, entirely and immediately, the duty on butter, which yields 95,000l.; the duty on tallow, which yields 87,0007.; the duty on cheese, which yields 44,0007.; on oranges and lemons, yielding 32,0007.; on eggs, 22,0007.; on nuts, 12,000l.; on nutmegs, 11,000l.; paper, 10,0007.; liquorice, 90007.; dates, 70007.; and various other minor articles, the total of these abolitions amounting to 382,000l. I propose likewise a reduction of duties upon five articles of great importance, one of which strikes at the principal differential duty, except those which we have killed by the French treaty-namely, the duty on timber. I propose to

reduce the duty on timber from 7s. 6d. and 15s. to the colonial rate of 1s. and 2s. There will be a relief of 400,000l. to the consumer, but a considerable recovery by increased consumption. The next article, the duty on which I propose to reduce, with the approval of the House, is the duty on currants. There is no article of greater importance to the mass of the community. All those of the labouring classes who are in good circumstances are large consumers of currants. The duty on currants ought to have been reduced many years ago; but it was impossible, in consequence of the almost entire failure of the crop, which made it impracticable to act upon the consumption by the reduction of the duty. The duty on currants is now 15s. 9d.; we propose to reduce it to 78. per cwt., which will involve a loss of 170,000l. This, however, will be compensated by increased consumption. We propose to reduce the duty on raisins from 10s. to 7s. ; on figs, from 10s. to 7s. I also propose to reduce a duty, with regard to which I shall have to give a further explanation the duty on hops. I propose to reduce the duty on hops from 45s. to 14s. The total amount of these reductions will be 650,0007. and the abolitions 382,000l. There will be a small article of blacking, which will be postponed, making a gross loss of 1,035,000l., but the increase of consumption will only entail a total loss, as estimated, of 910,0007."

The abolition of the excise duty on paper will involve a loss to the revenue of 1,000,000Z It was defended as follows: "Above all, let me say the great advantage of this change, in my opinion, and in the opinion of Her Majesty's Government, is, that you will promote a diffused demand, and a demand for rural labour; that you will not merely stimulate the process of massing people in great centres of industry, but the demand for labour all over the country. Where there are streams, where there are villages, where there is pure and good air, and tolerable access, there are the places where the paper manufacture delights to rest itself."

The portion of the Budget relating

to remission or loss of payments is summed up thus: "The number of articles subject to customs' duties in 1842 was 1052; in 1845, 1163 articles; for I must remind the House that the first operation of the reform of the tariff was to multiply the number of articles, in consequence of an increase of the headings under which they were specified. In 1853, the number of articles was 466; in 1859, 419. After the changes now proposed are adopted, without allowing for a few subdivisions, such as the specification of two or three classes of sugar, the whole number of articles remaining on the tariff will be 48. There are three classes of articles, including in all 15, such as sugar, tea, tobacco, wine, coffee, timber, raisins, &c., which are in reality the only articles that will be retained on the tariff for purposes of revenue. Besides those 15 articles, there are 29 which, though yielding revenue, are only retained on special grounds. Thus five articles are retained on account of countervailing duties on domestic articles, and 24 on account of their resemblance to ⚫one or other of the 15 articles I have adverted to. We could not, for example, admit eau-de-Cologne free of duty while there is a duty on brandy. It thus follows that your customs' revenue will be derived substantially from 15 articles. That is a result which I hope custom-house reformers will be of opinion justifies the changes we have made. There will be a relief from indirect taxation of about 4,000,000%. Out of that, 1,000,000l. paper duty will go directly to stimulate the demand for rural labour; 1,800,000l., or the greater part of 2,000,000/., under the French treaty, will in every instance strike at differential duties, and will be the means of removing from the tariff its greatest, perhaps its only remaining deformities. There will be on the British tariff, after the adoption of these changes, nothing whatever in the nature of protective or differential duties, unless you apply that name to the small charges which will be levied upon timber and corn, which amount in general, perhaps, to about 3 per cent. With that limited exception you will have a final disappearance of all protective

and differential duties, and the consumer will know that every shilling he pays will go to the revenue, and not to the domestic as against the foreign producer. You will have a great extension and increase of trade, you will have a remission of the principal restraints upon travellers, and a great reduction in the expenses of the customs and excise departments."

To meet all this, the government proposed, 1st, a penny taxation, levying upon all goods imported and exported, by way of registration due, a duty of one penny a package. This will produce 300,000l. a year. 2d. Bonding, 120.0007.

3d. A duty on chicory, 90,000%., being a total of 510,000l. additional in customs.

4th. Items of inland revenue, altogether 386,0007.

5th. Saving on customs and inland revenue establishments, 86,0007.

6th. Resumption of malt and hop credits, 1,400,0007.

7th. The income-tax will be renewed at a rate only higher by one penny than that which it would be necessary under any circumstances' to propose-viz. at 10d. in the pound. The assessment will be 10d. in the pound on incomes above 1507., and 7d. in the pound below that amount.

The total estimated income will thus be 70,564,0007., giving a surplus of 464,0007.

Mr. Gladstone concluded with the following peroration: "There were times of old when sovereigns made progress through the land,

and when, at the proclamation of their heralds, they caused to be scattered heaps of coin among the people. That may have been a goodly spectacle; but it is also a goodly spectacle, in the altered spirit and circumstances of our times, when a sovereign is enabled, through the wisdom of her great council assembled in parliament, again to scatter blessings among the people in the shape of wise and prudent laws, which do not sap in any respect the foundations of duty, but which strike away the shackles from the arm of industry, which give new incentive and new reward to toil, and which win more and more for the Throne and for the institutions of the country the grati

tude, the confidence, and the love of a united people. Let me even say to those who are justly anxious on the subject of our national defences, that that which stirs the flame of patriotism in men, that which binds them together, that which gives them increased confidence in their rulers, that which makes them feel and know that they are treated justly, and that we who represent them are labouring incessantly and earnestly for their good-is in itself no small, no feeble, and no transitory part of national defence."

Perhaps the most remarkable circumstance about the speech of Mr. Gladstone was, his complaint of the readiness with which such a heavy Budget is borne by the people. Lord Castlereagh, he said, had complained of the ignorant impatience of taxation shown by the English people; but he was rather inclined to complain of their ignorant patience of taxation. These words indicate the inconsistent character of the Budget. The principal item in it is the commercial treaty, which is to prove and to secure the continuation of intimate relations of friendship with France. But if we are on such friendly terms with France, it is hard to say why our army and navy are to cost near 30,000,000. The unpleasant task of explaining these reasons was left to the representatives of the Admiralty and of the War Office.

When it is remembered that the treaty was negociated by an advocate of perpetual peace, and that its chief approver and defender at home is a statesman who shares in no degree the popular feelings of fear or of hatred towards the Emperor of the French, it is hardly unnatural to suppose that certain articles, which place England at a great disadvantage with respect to war, were designed for the purpose of imposing the policy of those men on the country, by making it all but impossible to go to war.

The Treaty of Commerce with
France.

The immediate loss to the revenue from the Treaty with France obliges the government to impose the additional income-tax. The statesmen,

who are friends and admirers of the

French government, describe it as having been concluded primarily for political reasons. Mr. Gladstone describes it as follows: "I know that this treaty may be said to bear a political character. The commercial relations of England with France have always borne a political character. What is the history of the system of prohibitions on the one side and on the other which grew up between this country and France? It was simply this: that finding yourselves in political estrangement from her at the time of the Revolution, you followed up and confirmed that estrangement both on the one side and the other by a system of prohibitory duties. And I do not deny that it was effectual for its end. I don't mean for its economical end. Economically, it may possibly have been ruinous to both countries; but for its political end, it was effectual. And because it was effectual, I call upon you to legislate now by the reverse of that process. And if you desire to knit together in amity those two great nations whose conflicts have often shaken the world, undo for your purpose that which your fathers did for their purpose, and pursue with equal consistency an end that is more beneficial. Sir, there was once a time when close relations of amity were established between the governments of England and France. It was in the reign of the later Stuarts, and it marks a dark spot in our annals, because it was a union formed in a spirit of domineering ambition on the one side, and of base and vile subserviency on the other. But that, sir, was not a union of the nations; it was a union of the governments. This is not to be a union of the governments; it is to be a union of the nations (cheers); and I confidently say again, as I have already ventured to say in this house, that there never can be a union between the nations of England and France, except a union beneficial to the world, because directly either the one or the other begins to harbour schemes of selfish aggrandisement (Opposition cheers), that moment the jealousy of its neighbour will powerfully react; and the very fact of their being in harmony will of itself be the most conclusive proof that neither of

them can meditate any thing which is dangerous to Europe."

The same day Lord John Russell said: "When the hon. gentleman asks whether the rejection of this treaty is to be followed by a possible disturbance of the friendly relalations between this country and France, I must tell him our argument is, that the tendency of the treaty is to promote friendly relations between the two governments. We believe it would work gradually, but surely, in improving those relations, and that the benefits both countries would derive from an exchange of each other's productions and manufactures would form such bonds of amity, that it would be found more difficult to create ill-feeling between them than had been the case in past times."

In the autumn, Mr. Cobden, going to Paris on his own affairs, was assured by government that they would be glad to effect an arrangement by which commerce should be facilitated between the two countries. It was some time before any thing came of it.

1. Dec. 23. Lord Cowley writes to Lord John Russell: "Your Lordship has no doubt been informed that confidential communications have been going on for some weeks past between Mr. Cobden, on the one hand, and M. Rouher, the Minister of Commerce, on the other. Count Walewski having requested to see me, I waited upon his Excellency yesterday. Count Walewski said, that neither the Emperor nor himself had overlooked the advantages which might result to the two countries by increased commercial facilities, as nothing would tend more to allay the irritation which unfortunately prevailed on both sides of the Channel." The confidential communications only obtained an official character about the time of the appearance of the pamphlet, Le Pape et le Congrès. Lord John Russell's published answer is dated Jan. 17th, 1860; what confidential or official communications were exchanged in the interval, respecting Italian affairs, must remain in obscurity. Lord John says: "But over and above these considerations, they attach a high social and political value to the conclusion of a

commercial treaty with France. Its general tendency would be to lay broad and deep foundations in common interest and in friendly intercourse for the confirmation of the amicable relations that so happily exist between the two countries; and while thus making a provision for the future, which would progressively become more and more solid and efficacious; its significance at the present moment, when the condition of some parts of the Continent is critical, would be at once understood, and would powerfully reassure the public mind in the various countries of Europe.

On this account her Majesty's government are prepared to entertain a negotiation on such a footing as will, they trust, give promise not only of a favourable, but of a speedy issue."

The Treaty was signed at Paris, January 23d, and ratified February 4th, 1860. The chief provisions are as follows:

I. H. M. the Emperor of the French engages, that on the following articles of British production and manufacture, imported from the United Kingdom into France, the duties shall in no case exceed 30 per cent ad valorem, the two additional decimes included.

Refined sugar. Iron forged in lumps or prisms. Soap. Stoneware. Earthenware. China and porcelainware. Glass, crystal, mirrors, and plate-glass. Cotton yarn. Worsted and woollen yarn. Yarns of flax and hemp. Cotton manufactures, and all worsted and woollen manufactures. Cloth list. Silk manufactures. Manufactures of flax and hemp. Mixed manufactures of every description. Hosiery. Haberdashery and small wares. Articles of clothing, wholly or in part made up. Prepared skins. Articles of every sort manufactured from leather or skins. Plated articles. Cutlery. Metal wares. Pig and cast iron of every description, without distinction of weight. Bar and wrought iron, with the exception of the kinds specified in Article XVII. Steel. Machinery, tools, and mechanical instruments. Brandies and spirits, including those not distilled from wine, cherries, molasses, or rice. Ships and boats, &c. &c. &c.

II. His Imperial Majesty engages

to reduce the import duties in France on British coal and coke to the amount of 15c. for the hundred kilogrammes, with the addition of the two decimes.

His Majesty the Emperor also engages, within four years from the date of the ratification of the present treaty, to establish upon the importation of coal and coke by land and by sea a uniform duty, which shall not exceed that which is fixed by the preceding paragraph.

III. It is understood that the rates of duty mentioned in the preceding articles are independent of the diferential duties in favour of French shipping, with which duties they shall not interfere.

IV. The duties ad valorem stipulated in the present treaty shall be calculated on the value at the place of production or fabrication of the object imported, with the addition of the cost of transport, insurance, and commission, necessary for the importation into France as far as the port of discharge.

For the levying of these duties the importer shall make a written declaration at the Custom-house, stating the value and description of the goods imported. If the Custom-house authorities shall be of opinion that the declared value is insufficient, they shall be at liberty to take the goods on paying to the importer the price declared, with an addition of 5 per

cent.

This payment, together with the restitution of any duty which may have been levied upon such goods, shall be made within the 15 days following the declaration.

V. Her Britannic Majesty engages to recommend to Parliament to enable her to abolish the duties of importation on the following articles:

Arms. Jewels. Toys. Čorks. Embroideries and needlework. Brass and bronze manufactures, and bronzed metal. Gloves, stockings, socks, and other articles of cotton or linen, wholly or in part made up. Leather manufactures. Lace manufactured of cotton, wool, silk, or linen. Manufactures of iron and steel. Machinery and mechanical instruments, tools, and other instruments. Cutlery, and other articles of steel, iron, or cast-iron. Millinery and artificial flowers. Raw fruits. Gloves and