The Chancellor of the Exchequer refused to accept Mr. George Terrell’s proposal to reduce the Excess Profits Tax from sixty per cent. to forty, but, in reply to Sir G. Younger—­who “has such a way wid him”—­promised that next year he would make the reduction.  He admitted that it was in many ways an unsatisfactory tax, but the Government could not afford to part with it unless a substitute was provided.  Somebody suggested “Economy,” and Sir F. Banbury proved to his own satisfaction that the present estimates could be reduced by a hundred-and-fifty millions.  But unexpected support for the Government came from Mr. Asquith, who as the original sponsor of the tax felt it his duty to support it.

[Illustration:  SIR FREDERICK BANBURY SHOWS HOW IT’S DONE.  “To produce a saving of one hundred-and-fifty millions you merely have to hold the hat firmly in the left hand—­thus.”]

There was a perfect E.P.D.mic of criticism, but it was brilliantly countered by Mr. Baldwin, who declared that the Chancellor, far from leading the country down the rapids, “was the one man who had seized a rock in mid-stream and was hanging on to it with hands and feet.”  The Amendment was rejected by 289 to 117, and the clause as a whole was passed by 202 to 16.

[Illustration:  THE LIMPET OF THE EXCHEQUER.  Mr. Baldwin portrays his chief “hanging to a rock with hands and feet.”]

Tuesday, July 13th.—­Lord O’Hagan was one of the Peers who helped to outvote the Government a few days ago on a motion excusing them of extravagance.  Yet that did not prevent him to-day from saying that the War Office should be more generous in their financial treatment of the Territorial Force, and particularly of the Cadet Corps.  Naturally Lord Peel did not refrain from calling attention to this inconsistency—­common to most of the financial critics of the Administration—­but nevertheless he made a reply indicating that the grants for the Territorial Force were being revised, presumably in an upward direction, since Lord O’Hagan expressed himself grateful.

The Commons, like the Lords, are all for economy collectively, if not individually.  General cheers greeted Mr. Bonar Law’s announcement that all war-subsidies—­save that on wheat—­were to be brought to an end as soon as possible, but then there were similar cheers for those Members who urged the substitution of ex-service men for the less highly-paid women in various Public Departments.

The House enjoyed the unusual experience of hearing from Lieut.-Commander Kenworthy an apology—­and a very handsome one too—­for something that he had said in debate about Colonel Croft.  It was accompanied by a tribute to his military efficiency which made that gallant warrior blush.  It only now remains for the Leader of the National Party to reciprocate by rescuing from the Naval archives some equally complimentary reference to the services of Lieut.-Commander Kenworthy.