The essential features of the 1886 scheme were as follows:—­

1.  Customs and Excise to be under the complete control of the Imperial Parliament.

2.  Irish Parliament to have power to levy any other taxes.

3.  Ireland to contribute annually to the Consolidated Fund of the United Kingdom.

(a) L1,466,000 for interest and management of Irish share of National Debt.

(b) L1,466,000 for contribution to Imperial Defence.

(c) L110,000 for contribution to Imperial Civil Services.

(d) L1,000,000 for Irish Constabulary.

4.  Contributions 3 (a) to 3 (d) were not to be increased for thirty years, but might be diminished.

5.  Irish share of National Debt to be reckoned at L48,000,000, and Irish Sinking Fund to begin at L360,000, increasing by amount of interest released on redeemed portion of debt.

6.  Contribution to Imperial Defence and Civil Services not to exceed one-fifteenth of the total cost in any year.

7.  Irish contribution to be credited 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