redited with receipts on account of Crown
Revenues in Ireland.

8. If expenditure on Constabulary fell below L1,000,000, contribution 3
(_d_) to be correspondingly reduced.

9. Customs and Excise _collected_ in Ireland were to be subject to
following charges:--

(_a_) Cost of collection, not more than 4 per cent.

(_b_) Contributions to Consolidated Fund of the United Kingdom.

(_c_) Payments to National Debt Commissioners.

(_d_) Any sums required under the Land Act of that Session the balance
being paid over to the Irish Government.

10. The Lord Lieutenant's salary not to fall on the Irish Exchequer.

Broadly the scheme gave to the Irish Government credit for the Customs
and Excise _collected_ in Ireland and charged it with annual payments of
L4,502,000 in addition to the cost of collection. It is clear that Mr.
Gladstone, at the time when the Irish population was about one-eighth of
the United Kingdom, assumed Ireland to have a taxable capacity of
one-fifteenth. If such a scheme were introduced at the present moment it
is obvious that, owing to the further decline in the population of
Ireland, a smaller figure for taxable capacity must be taken. What that
figure should be it is difficult, if not impossible, to decide
satisfactorily. It is generally assumed that on the basis of the
calculations made by the Financial Relations Commission in 1896, the
present relative taxable capacity for Ireland would be about
one-twenty-fifth that of the United Kingdom. In the last two financial
years the Irish contribution to Income Tax has been one-twenty-eighth,
and the contribution to Estate Duties one-twenty-sixth of the total
collection in the United Kingdom. These proportions, taken as measures
of taxable capacity must be exceptionally favourable to Ireland, where
the proportion of Income Tax payers and of persons possessing property
paying Death Duties is relatively to the total population smaller than in
the United Kingdom as a whole. If, therefore, for the sake of the present
calculations the mean of two proportions--_i.e._ one-twenty-seventh
deducible from the Income Tax and Death Duty contributions is assumed,
we employ a figure exceptionally favourable to Ireland. The financial
statement on the next page showing the 1886 scheme applied to present
conditions has been drawn up on this basis. The revenue is here assumed
to come in at the average rate of the last two years (1909-10 and
1910-11) and the expenditure i