and unprecedented claim

It is true that as the Home Government contributes the greater part towards the expenses of this Colony, or as any deficiency between the Revenue and expenditure must be made up from Home resources, the payment of such rates would be scarcely more than nominal; but I conceive it to be my duty strictly incumbent upon those who are charged with the administration of Home affairs to protest most urgently against the principle and embarrassment which would thus be involved - particularly as the nominal appearance of increase in the Colonial revenue might perhaps prevent the otherwise practicable reduction of Colonial expenditure.

I venture to hope, however, that His Excellency The Governor may be induced to forego consideration of the claim until at least a reference on the subject can be made to the superior authorities at Home. I consider myself entitled as a public officer to such an appeal in the present case instead of being forced into the degrading position of a common defaulter; but should His Excellency determine it otherwise, I trust the Major General may be pleased to authorize my giving a passive resistance to the claim in question until all the legal extremes shall be enforced, leaving thus an ultimate appeal to the Lords Commissioners of Her Majesty's Treasury as the only alternative for deciding the question upon its proper merits.

I have, &c.,

(Signed) W. Smith,

(Copy) F. M. Hawley, Capt.,

A. G. & M. Secy. (Inclosure)

Colonial Secretary

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