greatest proportion of it to the most hard-pressed areas; the grants would bear a direct relation to the expenditure; the assigned revenues would be abolished, and efficient service would be a condition of the grant. These grants, for England and Wales in the first full year, would be: Poor law, 3,615,000_l._; police, 3,400,000_l._; criminal prosecutions, 120,000_l._; suppression of cattle disease, 71,300_l._; mental deficiency (optional provisions), 45,000_l._ additional; small grants under Shops and Employment of Children Acts, 22,500_l._; Reformatories and Industrial Schools, 22,000_l._ additional; Public Health, 4,000,000_l._ (first year, l,300,000_l._); Tuberculosis, Nursing, and Pathological Laboratories, 750,000_l._ The Education grant would be reconstituted on the principles sanctioned by the Kempe Committee (_post_, Chron., March 30), so as to give the greatest relief to the poorest districts and to those where the expenditure was highest. For the current year the increase--2,750,000_l._ for England and Wales only--would be confined to the necessitous areas. But besides this, the Exchequer would contribute half the cost of feeding necessitous school children, and give further grants for health work--physical training, open-air schools, crippled and feeble-minded children, and maternity centres, and for technical, secondary, and higher education. These grants for the first year would be 560,000_l._, the health grants 282,000_l._ For insurance, also, there would be further assistance, 1,250,000_l._ for the whole United Kingdom. Something would be done for deposit contributors, and health lectures would be established. The grant would be distributed on the "Goschen principle"--80 per cent, for England and Wales, 11 per cent. for Scotland, and 9 per cent. for Ireland, omitting education and police, which were almost exclusively paid for there by Imperial grants. The grant would begin on December 1, subject to the condition that legislation as to the basis of distribution, including valuation, should have passed in time. For the current year the new grants would increase the deficit by 4,218,000_l._, and he needed a margin of 252,000_l._ He had, therefore, to find 9,800,000_l._ The best method of equalising the burden was by a graduated income tax. A local income tax, according to experts, would not work; in Germany it drove away the men with large independent incomes. He would not interfere with earned incomes up to 1,000_l._ a year, but after that the scale would be: 1,000_l._ to 1,500_l._, 10-1/2_d._ in the pound; 1,500_l._ to 2,000_l._, 1_s._; 2,000_l._ to 2,500_l._, 1_s._ 2_d._; 2,500_l._ to 3,000_l._, 1_s._ 4_d._ On unearned income and all income above 3,000_l._ it would be 1_s._ 4_d._ The allowance for each child of 7_s._ 6_d._ in the case of incomes under 500_l._ would be doubled; and the 25 per cent. limit on deduction for repairs would be abolished. The supertax would begin at 3,000_l._ instead of 5,000_l._; the first