the 3 per cents.

The Duke, Rosslyn, and I were decidedly against income tax. Lord Bathurst
and Lord Melville, as well as the Chancellor, less decidedly so, but still
in favour of abiding by the reduction of the beer and leather tax. Aberdeen
said nothing, neither did Sir G. Murray, so they were understood to go with
the majority.

Goulburn acknowledged the discussion had to a great extent changed his
opinion, and that he was not then prepared to propose the tax.

Herries seemed much in its favour; but more, as it seemed to me, because he
wished to maintain a large surplus according to the decision of the Finance
Committee than for any good reason. Peel was decidedly for a property tax.
He wished to reach such men as Baring, his father, Rothschild, and others,
as well as absentees and Ireland. He thought too it was expedient to
reconcile the lower with the higher classes, and to diminish the burthen of
taxation on the poor man. I accede to the principle; but I doubt whether
taxes on consumption do really press more heavily on the poor man than an
income tax. What he has to look to is not the actual price of the article
he wants, but the proportion which his wages bear to that price. It matters
little to him what the price of candles may be, if he has not money
wherewith to purchase them. That system of taxation is best for the poor
man which most tends to increase the funds for the employment of labour;
and every disturbance in the system, every alteration of demand, does
intrinsic mischief.

After this matter was decided, Peel behaving most fairly, and declaring he
would support the decision of the Cabinet whatever it might be, and that in
this case the decision of the Treasury was to be principally looked to, we
talked of Queen Donna Maria, in whose name Don Pedro has established a
Regency in Terceira.

I read Leopold's letter to Lord Aberdeen, in which he refers to his letter
of February 11, for the statement of his views in taking the Greek coronet,
saying that he only acceded from courtesy, and as a matter of form, to the
protocol, and further urging some alteration in the frontier. He has made
an application for a joint guarantee by the three Powers of a loan of
60,000,000 paras, or 2,400,000L. Now we only agreed to guarantee 50,000L a
year, and that for troops. Nothing will be said upon this point till he has
withdrawn his letter. He seems to be Aberdeen's pet. I do not think, had
the Greeks searched Europe,