Queen's officer of the station, which might lead to serious practical difficulties. The question had been considered by successive Governments in 1857 and 1858, and the conclusion they had come to was, that for local defence against a sudden incursion by sea, a local force was the most natural; but that for general defence in a great foreign war, the defence of an Imperial navy would be most effectual. From these conclusions he did not differ; but up to this time nothing had been done on the subject. Since that time a considerable step had been taken in the maritime defence of this country. In consequence of the difficulty experienced in getting seamen in the Russian war, and again in 1858, when there was a great extension of our navy, a Commission was appointed to consider the subject of manning the navy, and the result was the establishment of the Royal Naval Reserve. That experiment was most successful. The force numbered now 18,000 men, and three years ago, when there was a sudden alarm, the men flocked in not merely for the service for which they were engaged, but volunteered for service which their engagement never contemplated. In examining the conditions on which the force was to be constituted, it was found that even the limitation of 100 leagues from the shore, to which the services of the Naval Coast Volunteers was confined, was a serious practical obstacle to its efficiency, and accordingly an arrangement was made by which, while the men in time of peace belonged to the merchant navy, in time of war they were to become, to all intents and purposes, sailors of Her Majesty's navy, and to be as available as the seamen of the Royal navy. It appeared to the Government that there was no reason why the same principle should not be extended to our colonies possessing a maritime population, so that colonies like those of Australia and British North America might be able in time of peace to train their maritime population to the use of guns, subject to conditions like those of the Royal Naval Reserve, and that in time of war those trained seamen should be available, under the control of the Government of the colony, for all the purposes of maritime defence. In preparing this measure he had had the advantage of the assistance of the Secretary to the Admiralty, and also of the Civil Lord of the Admiralty, who, having been connected with the colonies, was well aware of the measures which were likely to be acceptable to them. Accordingly, the object of the Bill which he sought to introduce was to extend the principle of the Royal Naval Reserve to all the maritime colonies of the empire. One maritime colony had been desirous of having a ship of its own. It had a ship of its own; but that ship, being merely under colonial authority, possessed none of the rights, and, in presence of foreign nations, could have none of the privileges of a ship of war. Those rights and privileges could only be secured by putting the ship under the control of the Admiralty. The second purpose of the Bill was, therefore, to enable a colony, either in time of peace or in time of war, to place

its ships under the control of the Admiralty. The object of the Bill was not only to enable a maritime colony, if it should so think fit, to take effective measures for its own protection at sea, but to enable several colonies to combine for mutual protection under the Admiralty-to enable all the colonies under the British Crown to be united in one body, and to combine their ships so as to form, with the navy of this country, a naval defence for the whole of the British Empire.

The Bill was brought in, and, meeting with general approbation in both Houses, it passed into a law at the termination of the session. The subject of the Colonial defences and of the relations between the Colonies and the mother country was on another occasion brought specially before the House of Commons on a motion by Mr. Marsh, when the policy henceforth to be pursued towards the dependencies of the empire, was distinctly stated by the Colonial Secretary. Mr. Marsh having referred to the cost now incurred in protecting our Colonial possessions, and to the advantages derived from them to the mother country, observed that if England had no colonies, she must have arsenals all over the world. Our exports to China and Japan amounted to 3,327,0007., and for the protection of that commerce there was a garrison of 1300 men at Hong Kong, a regiment at Japan, some troops at Shanghai, and eighteen ships. The exports to Australia were 9,000,000%., and the garrison did not exceed 500 men, and three ships mounting thirtynine guns. The Colonial Naval Defence Bill was one of great importance, and he believed it would have the effect, in time, of enabling the colonies to raise a naval brigade of their own, and he thought the best means of defence would be floating batteries of light draught, and mounting heavy guns.

Mr. Cardwell said the policy adopted of late years towards the colonies had established as a principle that they were to be selfsupporting; and with regard to the civil service especially, if any vote were taken for them it must be justified upon strictly exceptional grounds. As to the colonial military expenditure, a Committee had sat and reported in 1862, and in making certain recommendations they had distinguished between such places as Gibralta, Malta, and Bermuda, which were the strongholds of England, maintained for purposes not strictly of colonization, and those possessions which were termed colonies proper. Since 1862 arrangements had been made by which New Zealand was to contribute a substantial sum towards its military expenditure. In the Australias there were scarcely any troops, and similar arrangements were being made there. The number of troops on the West Coast of Africa and in the West Indies had been diminished. Hong Kong, Mauritius, and Ceylon were in like manner required to contribute towards their military protection. So that there was scarcely one of the recommendations of the Committee which had not engaged the practical attention of the Government, and in which some progress had not been made.

E

The annual exposition of the state of the Indian finances was, as usual, postponed till within a few days of the end of the session, and consequently was made to a very thin House, and excited but languid interest. Complaints were made, as before, of the inconvenient arrangements which caused this important branch of public administration to be so postponed as to make the Indian Budget a merely formal ceremony, and the same excuses were again alleged for the delay. Sir Charles Wood, Secretary for India, in laying before the House of Commons the financial results of the past year, traced the progress of the Indian revenue and expenditure during the last three years, and said the improvement in the income showed the general advance of prosperity from one end of the country to the other. At the same time the charge had gone on increasing, especially in the army, owing to the increased price of provisions, the half batta, the Bhootan war, increased pay to medical officers, and increased outlay for public works, law, justice, education, and superannuations. Although there was an extraordinary and satisfactory increase in the revenue year after year, it was necessary to enforce the strictest economy, as the safety of Indian finance depended upon that. As to the important subject of encouraging public works, the people of India were willing to expend any amount in that direction, and he was prepared to borrow money for the purpose, when any sound plan was presented for the execution of really necessary and useful works; but he would not go hand over head to raise loans for every project that was started. During the last six years there had been an enormous expenditure on this account, namely, out of public funds 30,000,000, and from local funds 4,500,0007.; whilst there had been expended for railways 38,500,0007., making a total for the six years of 73,000,0007. Taking the last two years only, the outlay for the same object was from public funds, upwards of 11,000,000, and from local funds upwards of 2,000,000, together 13,200,0007., and that exclusive of the railroads constructed. As to the cultivation of cotton in India, the increased price, and the measures adopted to stimulate this branch of industry had been attended with great success; and he was informed that capitalists at Bombay were introducing at the various railway stations establishments and machinery for cleaning, pressing, and packing cotton, and to a certain extent weaving a class of goods that would not compete with English manufactures, but displace the wasteful process of hand-loom weaving, and divert the persons so employed to useful agricultural pursuits and the culture of the cotton plant. He also adverted to the questions lately in dispute with the talookdars of Oude, and stated that the rights of this class of proprietors had been established; that a very good feeling existed between them and the ryots, and that there had been no necessity for appealing to a judicial decision. After stating the present position of the Bhootan difficulty, the right hon. gentleman moved a series of resolutions setting forth that the

total net revenues of the several presidencies for the year ended the 30th day of April, 1864, amounted to 35,636,8987., and the charges thereof to 26,018,3887., leaving a surplus revenue of 9,618,510.; that the interest on the registered debt of India, paid in the same period, amounted to 3,093,2507., and the charges defrayed in England, on account of the Indian territory, including interest on debt incurred in England and guaranteed interest on the capital of railway and other companies, after deducting net traffic receipts of railways, amounted to 6,446,9137., leaving a surplus of Indian income for the year, after defraying interest and charges, of 78,3477.

Mr. H. Seymour criticized the items in the Budget, and said proper economy had not been used. He recommended the reviving of the Indian Finance Committee, and the instituting of a rigid examination into the number of troops really required without too great a strain on our recruiting service. Only two things, he said, were requisite to ensure the continuous and permanent prosperity of India. These were to respect the systems found existing there, without endeavouring to carry out theories of our own, and next to leave the religion of the natives entirely uninterfered with.

After a long and desultory discussion, the resolutions as proposed by Sir C. Wood were agreed to.

CHAPTER III.

COLONIAL AND FOREIGN AFFAIRS-Relations of the British Government with the United States-Situation of Canada-Notice given by President Lincoln's Government for the termination of the Convention respecting armed force on the Canadian lakes-Apprehensions arising from this event-Report made to the Government by Colonel Jervis on the defences of Canada-The question is raised by Sir John Walsh, who asks for information from the Ministers-Cautious answer of Lord Palmerston -Debate on the subject in the House of Lords originated by Lord LyvedenSpeeches of the Earl of Derby, Earl Granville, and Earl Russell-Mr. Seymour Fitzgerald introduces the same question in the House of Commons-Important debate on the possibility of defending Canada against invasion, and the policy to be pursued in that event-Views of Mr. Lowe, Mr. Bright, and Lord Palmerston-A vote of 50,000l. for the fortifications of Quebec, proposed by the Marquis of Hartington, leads to a renewal of the discussion-Mr. G. W. Bentinck opposes the vote, but declines to press his Motion, and after much discussion the vote is carried by a large majority-Conclusion of the Civil War in America-State of public feeling in England on that subject-Questions addressed to the Government in both Houses respecting the withdrawal of belligerent rights from the Southern States-Misapprehensions entertained on that subject-Lucid explanations given by Lord Palmerston and Earl Russell-Mr. Cardwell announces the withdrawal by the United States of the notice for terminating the Convention respecting the Canadian lakesObservations of Lord Derby on the policy of the United States after the termination of the war.-Affairs of Poland-Motion by Mr. Pope Hennessy condemnatory of the conduct of Russia towards that country-Lord Palmerston deprecates the

expression of any Parliamentary judgment upon the case-The Motion withdrawn.— The war in New Zealand-Observations by Mr. Arthur Mills on that subject in the House of Commons-Mr. Roebuck expresses his views on the right mode of dealing with the natives-Mr. Cardwell states the new policy proposed by the local Govern ment, and expresses his approval of it-His anticipations as to the conclusion of the war.-Ill treatment of British subjects in Abyssinia-Lord Chelmsford brings the case of Consul Cameron and the imprisoned missionaries before the House of Lords -Lord Russell vindicates the course taken by the Foreign Office-Lord Chelmsford's Motion for papers is carried against the Government by one vote-Further debates on the subject in the House of Commons on the Motion of Sir Hugh Cairns-Explanations given by the Under-Secretary for Foreign Affairs.

THE state of the relations of the British Government with that of the United States, and the consequences which might arise out of the civil war in America to the interests of this country or its possessions abroad, were topics which, during this year, engaged a good deal of public attention, and thereby naturally led to occasional discussions in Parliament. Under the various phases which that eventful contest assumed, the diplomatic embarrassments which sometimes arose, and the demonstrations of feeling towards England which the incidents of the war occasionally evoked, the position of Canada was such as could not but be regarded with some anxiety in this country. The uneasiness felt as to the security of that province was not lessened by the circumstance that shortly before the meeting of Parliament the Government of the President gave formal notice to our Minister of their intention to terminate the convention under which England and the United States had mutually agreed not to fit out naval armaments upon the Canadian lakes. Some steps had also been taken which indicated an intention on the part of the American Government to terminate the treaty of commerce between the States and the Provinces of British North America. These proceedings, coupled with the unfriendly and even menacing language sometimes vented by the Press of that country against England, were regarded by many persons as unequivocal indications of a hostile policy on their part, and as a warning to us to strengthen those points on which we might be most vulnerable. The defences of Canada thus became a prominent subject of consideration, and the Queen's Government, while they disavowed and discouraged the language of alarm which was used in some quarters, did not consider the matter as undeserving of attention. They had directed a Report to be prepared by an engineer officer, Colonel Jervis, upon the existing state of the province as to the means of defence against invasion, and as to the measures and expenditure required to place the frontier in a complete state of security. The Report when published attracted much attention, and was freely commented upon in the public journals. No sooner had Parliament met than the subject was broached in both Houses; the first occasion being an appeal to the Government for information by Sir John Walsh, who referred to the steps already mentioned as having been taken by the United States' Government, and which he regarded as almost equivalent