Your Lordship's attention is drawn to the fact of the entire Parliamentary Grant being drawn, and the unexpended surplus, amounting to £9,863, 17s, being held in the Colonial Chest to meet the undischarged claims upon the Colony, explained in the Treasurer's letter. These claims amount to £3,818, 4s, 10d, leaving a Balance of £6,044, 16s, 9d in favor of the Colony.

I propose making a recommendation for the commencement of the Government House, should Your Lordship be pleased to sanction the measure and request Parliament to vote the Grant of £20,000 for the present year as referred to in my Despatch No 82 of 25th August last.

The decrease in the Revenue as compared with 1848-49 appears to be £2,338, 19s; but at present there are outstandings due to Government amounting to £1,448, 14s, 9d. Steps have been taken to recover this sum, so that the real deficiency of Revenue collected, compared with the Year 1848-49, will be about £889, 7s, 0d.

I have the honor to be, With the highest respect, Your Lordship's most obedient Humble Servant,

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