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Hon, A. LISTER.-That takes place in the Audit Office.

Hon. F. B. JOHNSON.-If on the 20th Mr. GUTIERREZ is in possession of all the bills that are to be paid between that and the next 20th, it seems the requisition should be then

made.

Hon. A. LISTER.—No, the requisition is made before the 15th of the previous month, that is to say, on the 15th March you requisition for the money you think you will want in April.

Hon. F. B. JOHNSON.-What do you requisition upon ?

Hon. A. LISTER.-Simply upon your estimate or guess.

Hon. F. B. JOHNSON.-Whom do you requisition?

Hon. A. LISTER.-The Treasurer.

Hon. F. B. JOHNSON.-Why cannot you requisition on the 20th, when you have to pay the money?

Hon. A. LISTER.-That was what I was telling you. It was put a stop to by Governor HENNESSY, who said "you must requisition a month before you want it," and that drives an officer to requisition for a lot of money for fear he should run short.

The CHAIRMAN.-It strikes me Governor HENNESSY's scheme is one extreme, and the one you speak of the other extreme, both objectionable. Mr. JOHNSON'S suggestion is between the two, that the requisition should be sent in when you have seen by your

bills what the amount is.

Hon. A. LISTER.-Well, if the bills have not been paid the liability has been in- curred. I have not the slightest hesitation in saying the system of requisitioning a month before you want the money is a great obstacle to economy.

Hon. F. B. JOHNSON.-Is that in practice now?

Hon. A. LISTER.-Yes, and it is strictly according to the letter of the regulations, but the other system had grown up, and it was a more economical system than the

system we are going on now.

Q.-The CHAIRMAN.-Suppose that on the 15th of this month there is a big con- tract going on, say a Break-water at Yau-ma Ti, for which the estimate is say, $120,000. Suppose on the 15th of this month there comes to you a bill countersigned by the Surveyor General in which the Contractor asks for an advance of $30,000. In 'an ordinary way will you have that $30,000 provided for in your requisition ?

A. We always ask for $10,000 only.

Q.-You would have $10,000 set aside for payment of advances?

A. Yes.

Q.-And suppose this was for $30,000?

A. We would have to make a supplementary requisition.

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