TIONAL DEFENCES :-Propositions made by Mr. Stafford, Secretary to the
Admiralty-Lord John Russell warmly supports the Vote for an Increase
of the Navy, which is carried-Augmentations are also voted for the
Artillery. FINANCIAL PROJECTS OF THE CHANCELLOR OF THE EX-
CHEQUER :-The Right Honourable Gentleman, in a comprehensive
Speech of Five Hours, developes his Views to the House on the 3rd of
December with respect to Financial Policy--Leading Topics of his Speech
-Alterations affecting the Income Tax, Malt Tax, Tea Duties, House
Tax, Hop Duty, and other minor Branches of Revenue-His Speech is
much applauded, but no definite opinion is pronounced upon the Scheme
when first proposed-A few Days afterwards Mr. Gladstone announces his
decided Hostility to the proposed Re-adjustment of the Income Tax-Mr.
Goulburn expresses the same Views-Observations of the Chancellor of
the Exchequer Lord John Russell expresses his Apprehensions for the
Financial Security of the Country, if Mr. Disraeli's Schemes should be
adopted-The general Discussion of the Ministerial Propositions com-
mences on the 10th of December, and is continued for Four Nights by
successive Adjournments-Most of the leading Members of the House
take part in the Debate, including Sir E. B. Lytton, Mr. T. Duncombe,
Sir Charles Wood, Mr. Cobden, Lord John Manners, Mr. Lowe, Mr. F.
Peel, Mr. Walpole, Mr. Goulburn, Lord Jocelyn, Mr. Bernal Osborne, Mr.
Alderman Thompson, Mr. Hume, Sir James Graham, Sir John Pakington,
Mr. Whiteside, Sir Francis Baring, and other Members-The Chancellor
of the Exchequer retorts upon the Opponents of his Scheme in a Speech
replete with Point and Sarcasm-Mr. Gladstone, in earnest and powerful
Language, answers the Chancellor of the Exchequer-On a Division,
the Government are defeated by 305 to 286-Effect of the Division-
Resignation of the Derby Administration-Her Majesty sends for the
Earl of Aberdeen and the Marquis of Lansdowne-Announcement of the
Resignation by Lord Malmesbury in the House of Lords-Formation of
a New Government under Lord Aberdeen, on the Basis of an Union
between the Whigs and the Followers of Sir Robert Peel-The Earl
of Derby, in a Speech in the House of Lords, explains the Circum
stances of the Defeat of the Government, which he ascribes to a Con-
federacy of hostile Parties-Counterstatement of the Duke of Newcastle
-List of the Aberdeen Cabinet-The New Premier states in the House of
Lords the Circumstances attending the Formation of his Administration,
and the Principles by which it will be guided-Speech of the Earl of
Derby in Answer-A great Number of New Writs are moved for in the
House of Commons, and both Houses adjourn after Christmas to the 10th
of February
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