He began by stating that as members of the Institution of Mechanical Engineers, on revisiting their brother members and friends here in Newcastle, after an interval of twelve years, they came as it were to one of their natural homes; certainly to the home of one of the greatest engineers that England has ever produced, and the birthplace of the locomotive, which has done more than any other improvement, of our age to lessen the cost of materials to the men who have to use them, and therefore to cheapen and extend production in the most wonderful manner. He then went on to say that it seems but a few years ago since George Stephenson, at a meeting in 1847, proposed the resolution that the Institution of Mechanical Engineers be formed. He was strongly supported by a large number of the mechanical engineers of the country, and the speaker had the honor of seconding the resolution that he be first president. The intention was that engineers from all parts of the country should join to form a compact body capable of discussing and judging of all mechanical subjects and appliances. In this the institution had been eminently successful, and it numbered among its members mechanical engineers in every large town in the country, and has increased in strength and importance. The last twelve years have been marked by many very important changes, while low prices have generally ruled. Among other causes of fluctuations in demand and supply (and consequently in values) must be mentioned the occurrence and the threatening of foreign wars, which disturbed the course of commerce greatly for some years. Such causes must be considered as extraneous to the sphere of influence possessed by good or bad manufacturing or engineering. Mr. Cowper does not look upon the very great expense of improved war material and implements as an unmixed evil for this country; for it so happens that we can better meet such outlay than any other nation, and thus our wealth gives rise to greater power and security than our neighbors possess; while, seeing that we are not an aggressive nation, such power tends materially at once to the progress of this country, and to the peace of the world. Having referred briefly to one cause of disturbance to the progress of mechanical engineering, he named another, which at the present moment is occupying thoughtful men to a considerable extent, namely, the arbitrary imposition of duties and bounties for the professed object of protecting manufactures, while in fact they constitute taxes on a nation for the benefit of a few individuals. In some countries excessive duties have been imposed, as against our manufactures, and it is even proposed to increase them; while in other cases bounties are actually paid out of the public purse to men engaged in a particular manufacture, on their exporting to this county certain of their wares, as, for instance, beet-root sugar.