fortified naval station at Port Arthur. If so, they ought to have given Russia timely notice, and if they had done so they would have prevented this from happening. That would have been an intelligible policy. It was difficult as yet to say whether the arrangement for the lease of Wei-hai-wei was a wise one or not. With regard to the other concessions of the Chinese Government to England, Sir E. Grey thought we had only achieved one right, and that was the right to quarrel with anybody else who interfered with those concessions.

Mr. Courtney, who since the advent to office of the Unionist. Government had assumed the post of its candid friend and counsellor, took the opportunity of surveying mankind from China to Peru. After remarking that among exploded fallacies must be ranked the idea that war came from princes and peace from popular assemblies, he hinted very plainly his conviction that if more time had been allowed to Spain she would have made Cuban autonomy a reality. With regard to our own action in the Far East, he urged the importance of a national compact in favour of free trade, in the belief that a policy of this kind would be ultimately recognised as the true clue to the settlement of a vast and intricate problem. He had never regarded the danger of conflict with Russia in this quarter as one of present and immediate importance. In another part of the world there had been real danger, and men had talked of the possibility of war with France over the West African question. That danger might not even yet have passed entirely away, though he had a strong hope that, in view of the great and transcendent events which were apparently coming upon us across the Atlantic, we should find ourselves in a calmer mood with respect to West Africa, and come to a reasonable and friendly solution of difficulties which might otherwise have become aggravated. He could not agree with those who thought that Lord Salisbury had yielded too much to France. The Premier was a man of great experience and great comprehension; he understood better perhaps than any contemporary statesman the circumstances and the conditions of international life; and he had a temper unrivalled by that of any who might be compared with him in handling the affairs of foreign nations. With respect to the Cuban question, we had to bear in mind that it was the ingrained belief of almost every citizen of the United States that America must become wholly American, and that the time was not far off when European Powers must cease to have any direct political connection with any colony or dependency in the New World.

The long-delayed report of the directors of the British South Africa Company dealing with its affairs since April, 1895, was issued, containing a brief summary of the events of the preceding three years. The board expressed their general concurrence with the proposal of the Government for a new scheme, to be made effective by a supplemental charter and an order in council.

With regard to the native rebellion, the total number of casualties was 629, of whom 264 white persons were murdered or missing, 187 died from their wounds or other causes, and 188 were wounded. Omitting the casualties among the relief forces and imperial troops, 390 inhabitants of the country and 150 had been wounded, or about 10 per cent. of the white population. The credit of bringing the rebellion to an end was ascribed in a large measure to Mr. Rhodes, and since the pacification the attitude of the natives had been satisfactory. The directors maintained their belief in the great mineral wealth of Rhodesia. The company's total receipts for 1895-6 showed an excess over the expenditure of 59,6501. For the following year the expenditure in connection with the rebellion amounted to 2,266,976., while the ordinary expenses of administration were increased and the revenue very largely diminished, but now that normal conditions had been restored the financial situation had been completely changed, and the directors anticipated that the time was not far distant when the expenditure would be balanced by the revenue.

At the meeting, which was held shortly afterwards, Mr. Rhodes attended, and, having been elected a director of the company, made an interesting report of the state of the country. Putting the money that had been spent on the development and conquest of Rhodesia at about 6,000,000l., he held that, as soon as the country became a self-governing state, this amount should become a debenture debt of the country. At present Rhodesia had reached the intermediate stage of semi-responsible government, and it would depend on the settlers when they chose to accept fully responsible government with the contingent burden of the debt. Under the existing regimen he saw his way to balance revenue and expenditure within some fifteen months' time. He had faith in the general as well as the mineral resources of the country, which was capable of supporting a large white population. He advocated the extension of the railway line from Bulawayo to Lake Tanganyika as a means of developing Northern Rhodesia, and had asked the Imperial Government to assist in that work by guaranteeing a loan of 2,000,000l. With a railway to Tanganyika, with Uganda occupied, and Sir Herbert Kitchener coming down from Khartoum, Africa would be secured to this country. Touching on the question of tariffs, he said the company originally proposed to the Imperial Government that the charter should contain a clause laying it down "that the duty on British goods should not exceed the then Cape tariff." The word "British," however, savoured too much of protection to please her Majesty's late ministers, and they suggested that it should be replaced by the word "imported," nor could he induce them to accept the word "British." The present Government had agreed that the clause should run as the company had suggested. In conclusion, Mr. Rhodes defended himself from the charge of having treated the natives with harshness, and was willing to abide by their verdict on his conduct towards them.

On the reassembling of Parliament after the recess, the rule giving up the mornings of Tuesdays and Fridays to Government business was at once put in force, and the Government proceeded with the second reading of the Vaccination Bill (April 19), of which the principal objects were to abolish arm to arm vaccination, and substitute the use of calf-lymph, to extend the age from three months to twelve, to perform the operation. at the abode of the children, instead of at a public station, and to abolish repeated penalties in cases of conscientious objection. On the question of the second reading, Sir W. Foster (Derbyshire, Ilkestone) said that he considered that the proposed extension of the age limit, the regulations with regard to the place where vaccination was to be performed, and the use of a new form of vaccine lymph, were very valuable provisions. He thought it would be advisable to abolish compulsion altogether. Another medical authority from the Conservative side, Sir W. Priestly (Edinburgh University), pointed out that the bill only touched the fringe of a large subject. The anti-vaccinationists were championed by Mr. T. Bayley (Chesterfield, Derbyshire) and Mr. Steadman (Stepney), who argued that sanitation, isolation and cleanliness would do more to prevent disease than any system of vaccination. The President of the Local Government Board, Mr. Chaplin, explained that the duties of vaccination officers and public vaccinators would undoubtedly be increased to some extent, and it was proposed that both classes of officers should be remunerated first by a payment based on the number of births in order to cover their general duties, and secondly by a payment in every case for successful vaccination. In addition to this, the existing system of awards would be continued. With regard to the cost of all these operations, he observed that the amount raised by public rates in this country was about 35,000,000l., whereas the vaccination expenses were at present 78,000l. a year. If the whole cost of vaccination were doubled, which was improbable, it would mean the addition of less than half a farthing in the pound on the rateable value. He had refrained from introducing provisions for re-vaccination into the bill because he desired to pass the measure into law during the present session. The debate was not brought to a conclusion, and three weeks elapsed before it could be resumed, when, after a further protracted discussion, the second reading was carried (May 9) by 201 to 50 votes.

The Government lost no time in bringing forward their annual statement of ways and means. It was known that the serious demands for naval, military, and educational services had anticipated the application of the surplus, and it was therefore with grateful surprise that the Chancellor of the Exchequer's slight reductions were received. Sir M. Hicks-Beach remarked (April 20), at the outset, that there had been a steady advance in the activity of our trade, in the spending power of the masses, in the profits of the nation, and in the accumulation of wealth. The total revenue raised by the State in the year just concluded,

including a sum of 9,402,000l. paid to the local taxation account, came to 116,016,000l. against 112,199,000l., with 8,249,000l. paid to the local taxation account in the previous year. Last year the customs produced 21,798,000l., or an increase of 298,000l. over his estimate, and 532,000l. over the receipts of the previous year. Excise produced last year 28,300,000l., or 550,000l. more than his estimate, and 840,000l. more than the receipts of the previous year. A most remarkable feature in the revenue of last year was the increase in the death duties. Last year he put the probable yield of those duties at no more than 9,700,000l., whereas in fact they produced 1,400,000l. more than his estimate. The total yield was 15,328,000l., that of the previous year having been 13,963,000l. The total net expenditure of 1897-8 exceeded the estimate by 395,000l., and amounted to 102,936,000l. That, deducted from the revenue receipts of 106,614,000l., left a surplus of 3,678,000l. Of that surplus 2,550,000l. had been appropriated for the purpose of public buildings in the metropolis, and 1,128,000l. remained to augment the Exchequer balances for the coming twelve months. But in addition to this Exchequer expenditure he said he must place 9,402,000l., which went to the local taxation account, and 2,751,000l. capital expenditure on naval and military works, barracks, and telephones, the purchase of sites for public offices, and the Uganda railway, making a total expenditure for which the State had provided last year of 115,089,000l. This was the largest expenditure for which a Chancellor of the Exchequer had ever been called upon to provide, and yet it had not depleted the Treasury surplus. Turning to the general financial position of the country, he said that the total liability on April 1, 1897, was 644,910,000l., and on March 31, 1898, it was 638,305,000l. The total reduction of the National Debt in the year was 6,605,000l. He then passed to the expenditure and revenue of the coming year, which in a tabular statement would stand thus:

Thus the total estimated revenue would amount to 108,615,000l., against an estimated expenditure of 106,829,000l., so that there would be a surplus of 1,786,000l. He had not sufficient means to reduce the income tax, but one class of the payers of income tax were entitled to some special measure of relief. He referred to the class just below and just above the present limit of abatement. What he proposed was, to leave the law as to incomes up to 400l. the same as it was now; and then to make an abatement of 150l. on incomes between 400l. and 500l.; an abatement of 1207. between 500l. and 600; and an abatement of 701. between 6001, and 700l. This would afford relief to the poorer income tax payer, and would not cost more than 100,000%. a year to the revenue. He also proposed to make a slight change in regard to allowances on the legacy and succession duties. The total estimated cost of these proposals, including a small proposal with regard to the land tax, was 285,000l. Coming next to the question of indirect taxation, he should have to ask the House to strengthen the law with respect to a process called grogging," which consisted of getting hold of emptied spirit casks, soaking them in water, and selling the spirits secured in that way free of duty. As to the reduction of indirect taxation, he proposed that the duty on unmanufactured tobacco should be reduced by 6d. in the pound, and that the duty on other classes of tobacco should be reduced proportionately, with the exception of cigars. The reduction in the duty would commence on May 16. After these changes the total revenue amounted to 107,110,000l., against a total expenditure of 106,829,000l., leaving a margin of 281,000l. to provide for the possible additional grants to Scotland and to the West Indies.

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The general result of the Chancellor of the Exchequer Budget, summarised in the following manner, showed the highest amount raised and expended in this country in time of peace :