In India there are Regulation and Non-Regulation Provinces, the Regulation Provinces being those which have been long under our rule, and are subject to all our laws; and the Non-Regulation Provinces being those to which our codes are only partially applied, and where much is left to the discretion of the administrator. In the former the chief offices belong to the regular Civil Service, while in the latter military men as well as civilians are employed. Both classes have furnished most able and capable men. [Sidenote: TAXATION.] Considering the resources of India its taxation is heavy. Our Government pays its servants of every description, high and low, civil and military, with a regularity utterly unknown under native rule, and the income must in regularity keep pace with the outlay. When we read of seventy millions as the expenditure, it must be remembered that what is called the land-tax is really rent, for in India the land has always been considered the property of the state. This is kept before the mind of the people of Madras by the yearly assessment of the tenants, and before the people of the North-Western Provinces by the new assessment made every thirtieth year. By the perpetual settlement of Bengal, the tax-collectors were at once raised to the position of landholders, of which they have often taken undue advantage. It must also be remembered that a considerable sum is expended on remunerative works, such as canals and railways. The expenditure on the army is great. I cannot conceive why our Government keeps up so large a native army. It would appear to those who are outside the Government circle, that its reduction would conduce to safety as well as to economy. The European part of the army is comparatively very small, and it would be most perilous to lessen it. Years before the Mutiny, Sir Henry Lawrence said it was the backbone of our strength, and events proved how true his remark was. Yet it is, and must continue to be, very expensive, like every other form of European agency. The Mutiny among its other results left behind it heavy pecuniary responsibilities, which have added to the debt and led to increased taxation. Many are of opinion that the amalgamation of the Royal and Indian armies was an unwise measure, and has caused much unnecessary expense. Often complaints have been made that successive home Governments, from their unchallenged control over the affairs of India, have imposed an unjust burden on its resources by keeping at home too large a force at its expense, and by undue charges for stores sent out, as well as by making it pay sums which were more properly due by the imperial exchequer.