I suggested that the most important question was the revision of taxation.  My view now is that we must take off some of the taxes which press most on the poorer classes, and have an income tax.  I dislike an income tax as much as any one.  To me it is a very oppressive tax, but I believe it may become necessary.

Walked to the corner of Hyde Park with Lord Rosslyn.  Had some conversation with him respecting the changes necessary in the Government before we meet Parliament.  He says Lord Althorpe will not come in without Lord Grey, and he is not sure Lord Grey would not stipulate for Lord Durham.  The latter is out of the question on account of his temper.  I do not think the Government could go on with the Duke and Lord Grey.  Of the Huskissonians, Palmerston is the only one.  To E. Stanley there is no objection.

August 26.

At 3 Count Moltke came to the office.  He had two Danish claims to speak about.

Dinner at the Albion for Clare.  There were present of the Ministers, Peel, Rosslyn, Goulburn, Herries; then Lord F. Leveson, Calcraft, the Solicitor-General, W. Peel, Lord G. Somerset, Planta, Gen. Macdonald, Col.  Fitz-Clarence, Lord Tenterden.  Of Clare’s friends Glengall, Agar Ellis, Sneyd, Lord Templeton, besides H. Vyner, and Upton, who go with him.

I spoke feebly, not being well; besides, I did not think it in good taste to make a great speech; but to leave Clare’s the first speech of the day.  Peel made a very good speech; but too much of it.  Clare really spoke very feelingly and well.  He spoke a little too much of his gratitude to the Court.

I had some conversation with Loch.  I was as well received as I expected, and better, considering the run that has been made at me.  The Duke went off to Walmer Castle, very wisely, for he wants sea air; but Clare would have been more pleased had he been present, and the Directors too.  The Ministers’ healths were well received.

August 28.

Received from Elphinstone his remarks upon the proposed letter to Bombay, respecting native education, of which he generally approves.  He strongly urges the sending out of European professors, young men, acquainted with English literature, to learn the language there, and teach the natives.  I have sent the extract from his letter to Astell, suggesting that the Universities of Oxford, Cambridge, Dublin, and Edinburgh should each name those from whom should be selected the necessary number.  I have observed that the object of native education is of such importance that the state of the finances must not prevent its accomplishment.

August 30.