Considering these four alternatives as equivalent, the Church would, by adopting any one of them, obtain what would be equivalent to 44l. rent in præsenti, instead of the present septennial fines of 150%., which are equivalent, as above premised, to a rent of 251. This would give the Church an increase of 191. on 25l., i. e. 76 per cent.

On the other hand, the lessee, whilst he retained 561. per annum of the annual value instead of 751. per annum as at present, would be freed from the present uncertainties as to renewal and the rate of fine, and secure the advantage of his own improvements for an extended period.

2nd. Suppose the case of a lease in the excepted districts, the fine being one and a half year's annual finable value, the lease 14 years, and the finable value 1007., the lessee would have the right of perpetual renewal on one or other of the following equivalent alternatives; namely―

(A.) 100l., i. e. two-thirds of the present fine, and 33l. 6s. 8d., one-third of the finable value, as rent to commence 14 years hence;

(B.) or 100%. fine, and 217. rent in præsenti;

(C) or 150%. fine, and 127. 138. 4d. rent in præsenti; or
(D.) 371. 13s. 4d. rent in præsenti.

Comparing this last equivalent alternative, viz., 371. 13s. 4d. rent in præsenti, with the present fines, which are equivalent to 25l. rent, it will be found that the Church would obtain an increase of 50l. per cent. beyond the present fines; whilst the lessee, instead of enjoying practically, although uncertainly, 75%. of the annual value, (i. e.) three-fourths, would retain permanently 621. 6s. 8d., which is more than three-fifths of the annual value, besides the other advantages of improvements before alluded to.

3rd. In the case frequent in the south of England, namely, where the fine
is two years' annual value, the arrangement would stand thus:—
(A.). Either 100l., i. e., half the present fine, and half the finable

value, namely, 50l. rent at the end of 14 years;

(B.) or 100l. fine, and 317. 10s. rent in præsenti;

(C.) or 2001. fine, and 147. 16s. 8d. rent in præsenti; or

(D.) 487. rent in præsenti.

This would give an increase to the Church of 14l. 16s. 8d. above the 33l. 6s. 8d., which is the annual value of the present fines, namely, an increase of 44 per

cent.*

We think that some one of the above alternatives should be made compulsory, in case the parties should not agree; but which of them should be made compulsory, we submit to Your Majesty, should be left to Parliament to determine.

The large actual interest of the lessees in the estates, and the small actual interest of the Church, appear to us to make these terms practicable and advantageous to both parties.

The second case above cited affords a convenient illustration of this point. In that case the lessees enjoy, on the whole, an interest, as has been seen, equivalent to three-fourths of the annual value of the estates; the Church retaining one-fourth. By reducing the interest of the lessees to three-fifths, and making it permanent, the smaller interest of the Church will receive a large comparative augmentation at a very moderate sacrifice on the part of the lessees.

If by default of the lessee the renewal should not be effected at the usual period, or within three calendar months afterwards, we think that interest should be charged, at the rate of 4 per cent. for the first year and of 6 per cent. per annum for the two following years; and if by the like default three years should be allowed to lapse, the lessee should not be entitled, as of right, to any renewal; and the lessor should be at liberty to grant a concurrent lease to take effect in possession at the expiration of the existing term.

* If instead of converting the fine into rent and the rent into fine at 4 per cent. rate of interest they were to be so converted at 3 per cent. rate of interest, the alternatives (A.) and (B.) herein set forth would remain the same as stated. The alternative (C.) would be somewhat increased, and the alternative (D.) slightly diminished.

We should observe, that the foregoing propositions are not intended to be applied to the cases of lands belonging to Ecclesiastical Corporations, where by mutual arrangement between the parties the leases are now in the course of being run out, or are intended so to be, or where there is an express understanding to that effect; or to the cases of lands which have been prospectively assigned towards the augmentation of the endowments of spiritual cures.

There are some lands, more especially smaller holdings, which we think might be advantageously sold or exchanged, with the sanction of the Central Board.

Farms and Lands (exclusive of Manors, House Property, Mines, and Woods), held under Leases for Lives.

We think that the leases for lives should, in the first instance, be converted into leases for years, and when reduced by effluxion of time to terms of 14 years that they should be treated as leases for years are proposed to be dealt with under the preceding recommendations.

The lives should be valued and the rate of interest calculated according to the usage of the district, but a certificate of age and health should be furnished. The Central Board should be empowered to commute a part of the future rent and fines into a smaller rent, to commence at an earlier period.

In the event of any life in the lease being precarious, a shorter term should be given as the equivalent; or, in case of any disagreement on this point, the conversion of the lease for lives into a lease for years should not take effect until the dropping of the precarious life.

In some cases it may happen that the lives in the lease have been insured by the lessee, or that they are the lives of members of the lessee's family, and that, for this or other personal reasons, the lessee may be desirous that his lease should not be at once converted into a lease for years. The Central Board should be authorized, in such cases, instead of converting the lease for lives into a lease for years, to proceed as follows; viz.:

Assuming the case of a full-stated lease:-Upon the dropping of the first life the Central Board should renew the lease, not by the addition of a new life, but by the addition of such a reversionary term of years, to commence on the death of the survivor of the lives in being, as should be equivalent to the addition of such new life.

The like process should be repeated on the dropping of the second life.

On the dropping of the third life the lease would thus become a lease for years, to be dealt with as before mentioned.

The fine to be taken in these cases should be calculated according to the practice of the district, but only upon half the finable value, and a rent should be reserved to the lessor equal to half the finable value, to commence at the dropping of the last life.

Arrangements might easily be made for enabling the lessee to pay a less rent commencing at an earlier period, similar to those already suggested as regards leases for years.

We think it probable that in dealing with these estates held upon leases for lives, some legislative provision will be found necessary in order to meet the consequences which might otherwise result from the conversion of a freehold into a chattel interest.

Woods and Woodlands.

These are frequently held under lease, but a considerable extent of valuable woodlands is in hand.

We would recommend that all timber now growing on the leasehold estates held under the Church should be valued at the next period of renewal, and paid for by the lessee, and thenceforth be considered as his property; and that the future fines should be assessed upon the value. of the land, without reference to any timber growing thereon.

We would here suggest, that in future there be no reservation of game, but that it should in all cases go with the lease.

Tithe Rent-charges and Tithes.

The whole of the tithe commutation rent-charges belonging to the several

bodies into the management of whose revenues Your Majesty has commanded us to inquire now produce a gross annual sum of 650,000l. at the least.

The greater proportion of these rent-charges, and also the uncommuted tithes belonging to the same bodies, are let on leases for lives or twenty-one years.

A considerable amount of tithe property also is in hand.

We think that leases of tithe rent-charges should be dealt with on different principles from those suggested for the management of land. The reasons which exist for retaining the lessees on the landed estates, and establishing a sort of partnership between them and the Church, are not applicable to the case of tithe rent-charges. These have neither been formed by the past exertions, nor are to be improved by the joint future exertions of lessees and lessors; nor is there any feeling in respect of such property analogous to that entertained by a lessee of land.

We recommend, therefore, that all leases of tithe rent-charges and tithes belonging to the bodies before alluded to should be suffered to run out, and not be renewed except in special cases of leases for twenty-one years where they are under settlement or mortgage; and that in such special cases, with the approval of the Central Board, the leases be once more renewed for seven years.

Manors, House Property, and Mines.

We have endeavoured to apply principles, analogous to the foregoing, to the several descriptions of property above mentioned, and had hoped to have embodied in this Report our recommendations thereupon; but each of them has presented so many difficulties and peculiarities, that we have deemed it expedient to reserve them for further consideration, and make them the subject of a Second Report, which we hope to be prepared to lay before Your Majesty very shortly.

Estates let at Rack-rent or in Hand.

We recommend that all property let at rack-rent, or in hand, should, as a general rule, be retained in the same condition, subject to the power of sale or exchange hereinafter advised.

Having reported to Your Majesty in the preceding recommendations our opinions and suggestions for the better management of Church property generally belonging to episcopal and capitular bodies, we propose next to offer some further remarks as to the particular mode in which we think the proposed new system of management might be best carried out with respect to the estates of each class of dignitaries and bodies separately, and also as to "what improvement might be made in the existing law and practice relating "to the incomes of such bodies respectively, so as best to secure to them fixed "instead of fluctuating incomes."

Following the order contained in Your Majesty's Commission, we proceed,

Firstly, with respect to the Estates of Archbishops and Bishops, and their Incomes. It may be useful here to explain how the episcopal revenues are at present regulated under the provisions of the Act 6 and 7 Will. IV., c. 77.

That Act aims at securing to the Archbishops, and to certain Bishops named, average annual incomes of stated amounts, and to the other Bishops average annual incomes of not less than 4,000l., nor more than 5,000/.; and it expressly provides, that the arrangements for that purpose shall be effected by charging on the one hand, and granting on the other, fixed annual payments. Power is also given by the Act for a revision of the fixed annual payments at the end of every seven years, upon new returns of the episcopal revenues; but any alteration made upon any such periodical revision is not to come into operation till the then next vacancy of the See.

These enactments are in the terms of the recommendations of the Church Inquiry Commissioners, and do not affect the management of or control over the episcopal estates, which continues to be exercised by the respective Archbishops and Bishops.

This plan has not, however, worked well in practice, owing to the uncer

tainty of the events which determine the incomes, and the varying amounts of the fines which fall in in different years. Some Bishops have thus received much more, some much less, than the income intended for them. To suggest

means of making those incomes regular is one of the duties Your Majesty has intrusted to us.

We think that (regard being had to vested rights, and subject to the principles herein-before recommended) the management of the whole of the episcopal estates (except residences and convenient demesnes) should be placed, but only for a time, in some central body:

That such central body should consist of a Committee of Bishops, selected by themselves, combined with and aided by two or three persons conversant with the management of real estates, to be appointed as Parliament should direct, who together should form a Board, to be called "The Board of "Episcopal Estates:"

That immediately after the passing of an Act for this purpose, the Board of Episcopal Estates should be responsible for the payment of the sum decided on as the proper income of each See; that the whole of the funds and property in their hands should be made effectively subject to that liability; and that the surplus income should be transferred to the Ecclesiastical Commissioners for England for Church purposes:

That the Board of Episcopal Estates should be imperatively required, as soon as circumstances would permit, to assign to each Bishop lands, tithe rentcharges, or other endowments of a nature not likely to vary materially in amount, situate or arising within or convenient to his diocese, and sufficient to produce the annual net income which he is intended to receive; and that the property so assigned to each See should thereafter be enjoyed and managed by the Bishop himself:

Under these arrangements the legal estate in fee simple will remain in the respective Bishops until they shall have been provided with separate estates or endowments, when the surplus estates and revenues should be altogether transferred to the Ecclesiastical Commissioners for the purposes of that Commission:

That, upon the vacancy of any See, inquiries should be instituted into the then actual annual value of the property belonging to it, with a view to a readjustment, if necessary, so as to preserve to the new Bishop the income intended for such vacant See, and not a greater or less; but in estimating such annual value, any material change in the value of money affecting the income of the See, should be taken into consideration before diminishing the property assigned to it and

That it should be open to the Ecclesiastical Commissioners, if they shall think fit, to accept the offer of any Bishop having a vested interest in the existing endowments of his See, to put himself in the position of Bishops hereafter to be appointed, and thus to secure to himself the advantage of a fixed income.

Secondly, with respect to the Corporate Estates belonging to the Cathedral and Collegiate Churches in England and Wales, and the Incomes of the Deans and Canons thereof.

The management of the corporate estates of cathedral and collegiate churches is not affected by the Chapter Acts, but still remains under the absolute control of the several chapters, who are liable to the payment to the Ecclesiastical Commissioners for England, of the proportions of the chapter revenues belonging to the suspended canonries; and in the cases of Durham, Saint Paul's, and Westminster, of the annual sums also with which those chapters are respectively charged.

Subject to the application of the new system of management, we think the control over the estates should continue vested in those bodies.

In order to ensure to future members of Chapters fixed instead of fluctuating annual incomes, we recommend that the amounts of the incomes which they are respectively to receive should be defined; and that, with regard to future members of Chapters, so long as their estates realize sums sufficient only for the payment of such incomes and the average annual expenses of the chapter establishments (including the maintenance of the services and the sustentation of the fabrics, and the expenses of any school attached to the cathedral or col

legiate church), the control over their estates should not be disturbed; but that if and so soon as such estates, in any case, should be found to realize more than sufficient for those purposes, a proportionate part of the estates (equal in value to the amount of the surplus so ascertained) should be transferred to the Ecclesiastical Commissioners for England.

That with respect to the amount to be provided for the sustentation of the fabrics, which should be ample, and include a sufficient sum for insurance against fire, the surplus of each year beyond what may be found necessary to expend should be accumulated by the respective chapters to meet future demands.

That the powers vested in the Ecclesiastical Commissioners for England for enforcing the production of documents and the attendance and examination of witnesses, should be extended to the purposes of any Act to be passed for carrying out the above principles.

That the same opportunities as are proposed to be given to existing Bishops fo immediately securing to themselves fixed incomes, should be afforded to existing members of chapters.

Thirdly, with respect to the Separate Estates of the Members of Cathedral and
Collegiate Churches, being Corporations Sole.

We have included in this class all Deans and Canons having separate estates, and all Non-residentiary Prebendaries, Dignitaries, and Officers of Cathedral and Collegiate Churches, whose estates will, under the provisions of the Cathedral Acts, be vested in the Ecclesiastical Commissioners on the next avoidance of the several preferments.

The control over these estates, until such avoidance, remains with the respective dignitaries, and we do not think it advisable to disturb that arrangement, except so far as regards the application of the new system of management hereinbefore recommended.

Fourthly, with respect to the Estates of the several minor Corporations Aggregate within the Cathedral and Collegiate Churches, and the Incomes of the Members thereof.

We think that a plan of proceeding similar to that which we have hereinbefore recommended with regard to the higher Capitular Bodies might be made applicable to the minor corporations.

Fifthly, with respect to the Estates belonging to the Ecclesiastical Commissioners for
England.

These consist of the separate estates and endowments formerly held by Deans and Canons in certain Chapters, the endowments of Non-residentiary Prebends, Dignities, and Offices, and the endowments of suppressed Sinecure Rectories, which have become vested in the Commissioners, either upon the vacancies of such preferments, or, in certain cases, by commutation of the interests of the holders thereof.

A portion also of the Commissioners' property consists of the estates formerly belonging to archdeaconries now otherwise endowed by the Board, and also estates which have from time to time been purchased by the Board by way of investment.

The estates, on their vesting in the Commissioners, have been, for the most part, under lease either for lives or years, but some have been found to be subject to arrangements under special Acts of Parliament, or let at rack rent, and others have come into their possession "in hand."

Under the provisions of the Acts by which the proceedings of the Commissioners are governed, the Board possess absolute rights and powers of ownership over their estates, and, acting under the authority of those provisions, and more particularly the express provisions of the Church Endow6 and 7 Vict., c. 37. ment Act, passed in 1843, the Commissioners have mortgaged the whole of the property vested and to be vested in them to the Governors of Queen Anne's Bounty for a sum of 600,000l. Three per Cent. Reduced Bank Annuities.

Notwithstanding the charge thus created, the Commissioners still retain the