§ MR. GREGORYsaid, he wished to ask the Secretary of State for Foreign Affairs if any communications have lately been received from the Peruvian Gevernment on the subject of the reduction of the price of Guano. Guano was now an article of such primary necessity in Ireland, that any reduction in the price of it would be of the greatest benefit to the small farmers of that country. By the instrumentality of the Earl of Malmesbury, a reduction, amounting to £1 per ton, had been made to the English consumer, who was now placed on the same footing as the American. He had, however, been given to understand that a still greater reduction might be ex- 278 pected, if proper representations were made to the President of the Peruvian Government by our charge d'affaires in that country. In July, 1858, the Earl of Malmesbury wrote to Mr. Jerningham to ask the President of the Peruvian Government to consider the propriety of making a material reduction in the price of guano. Mr. Jerningham took up the task with alacrity, and a discussion upon the doctrines of political economy thereupon ensued. The President appeared to think that it was better to sell a small quantity at a high price, and that the Peruvian bonds might thus be kept up, while Mr. Jerningham endeavoured to convince him that by selling a larger portion at a smaller price, a portion of the bonds might be paid off, and the remainder capitalized for the benefit of the State. In September, 1858, the correspondence was still going on, but at that date the Peruvian Government were not ready to recommend a reduction in the price of the article. The present was a proper time to press the matter upon the notice of the Peruvian Government, as there was a large stock of guano on hand. People would not purchase at the present price, and a great deal of ingenuity was at work to discover an article at a lower price. He trusted that the Government would continue to press a reduction of the price of guano upon the Peruvian Government.
§ LORD JOHN RUSSELLsaid, he was not aware that any very late communication had been received on this subject. The subject was one of importance, and he regretted the course pursued by the Peruvian Government, but of course if the Peruvian Government refused to listen, our Minister was powerless. He believed that at present there were 300,000 tons of Peruvian guano in store in this country of the estimated value of £3,000,000. The Peruvian Government appeared to be satisfied to sell a small quantity at a high price; but there were so many artificial manures in use that they were not likely to obtain the high price they demanded. If anything more could be done, Her Majesty's Government would be prepared to make a fresh representation to the Peruvian Government, but it was in the power of that Government to withhold the guano from the English market if they thought proper.