£ 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 500,000£ 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 firmness and habits of business. The Duke seems to think of Elphinstone. He said he was a very clever man. I told him I had been an hour and a half with Elphinstone last night. I told the Duke all my notions respecting individual responsibility, members of Council, &c., and that I had begged Elphinstone to think of them. The Duke seemed generally to approve of them. It seems Lord Wellesley never would go to Council. I do not wonder at it; but the Duke used to tell him he was Governor-General _in Council_--that he ought always to go there. _March 10._