o lay on income tax would be to weaken ourselves in
the opinion of all foreign Powers. Besides, it would prevent our reducing
the Four per Cents.

He calculated the loss of the beer duty at 3,500,000L. and, marine
insurance, cider, remission of hop duty, &c., would make the loss
4,500,000L.

To meet this he expected

L
Surplus of last year 1,700,000
Additional from general improvement 400,000
Additional malt by reducing beer duties 500,000
Increased duty on spirits 500,000
Reducing Four per Cents 750,000
Savings 1,400,000
Ireland, soap, &c. 450,000
Stamps 200,000
---------
5,900,000
4,500,000
---------
1,400,000

There may have been more; but he spoke, and I write from memory.

I told him I thought that with a diminished duty on beer and an increased
duty on spirits he could not expect an increase of 500,000L on spirits. He
admitted that was the weak point. He said he was sure we could not carry an
income tax while we had a million surplus. If we have a good harvest, I
have no doubt the increase on malt will be great; but I apprehend there
must be a repayment of beer duties, and if there should be, the loss will
be enormous.

_March 8._

Sent Mr. Elphinstone a letter giving an account of the travels to the North
of the Paropamisan range into Cabul.

The Duke said we really must look out for a new Governor-General. I
suggested Hardinge. He said Hardinge had not as yet station enough in the
opinion of the public, in the army, or in Parliament. He wished him to be
Secretary in Ireland. It would have been much better if he had gone there
instead of Lord F. Gower, and Lord P. to the War Office. To be sure, then
we should not have had the reductions Hardinge had effected. He had, as I
knew, always wished Hardinge to go to Ireland.

I observed that Hardinge was rising every day in public estimation, which
the Duke acknowledged, and I added that I was sure none would do the duty
better, for he had firmn