Peel told me the House was quite excited against the Bombay judges, and that the division fairly represented its real opinion.
March 12.
There was but one black ball in the election of Lord Clare, and the Chairs think that was put in by mistake; no one objected.
March 13.
Read Sir H. Parnell's pamphlet on taxation.
Cabinet room at two. I had only got half through the Russian answer when the Cabinet met for the subject of taxation.
I rather expected to find that the Duke had had communications with Goulburn, and that the idea of a property tax was given up. However, that seemed not to be the case. It was determined the whole beer duty should be given up in any case.
£
The expected revenue is 50,250,000
The expected expenditure 47,930,000
—————
Surplus 2,320,000
Add by reduction of Four per Cents 777,000
By 1_s_. 6_d_. on British,
and 2_d_. on Irish and Scotch Spirits 400,000
By stamps in Ireland 220,000
3,717,000
Deduct beer tax, £3,200,000, but the loss to
the revenue from the probable increase of malt,
calculated at 2,500,000
—————
1,217,000
Probable increase of revenue 450,000
—————
Sinking fund 1,667,000
The conversion of stock into annuities is proceeding at the rate of 1,000,000 pounds a month, and the increased annual charge already is 250,000 pounds. Certainly to this extent the estimated three millions of surplus might be fairly reduced; but to reduce the surplus to 1,200,000 pounds or 1,600,000 pounds would be an entire abandonment of the system adopted by the Finance Committee and the Government.
It seemed to me that the members of the House of Commons were all in favour of the income tax; all the Peers against it. The Duke was strongly against it. He apprehended the reduction of establishments, and particularly the pressure of the tax on men of 1,200 pounds a year, and under.