their aid it is shown that the immediate Liabilities of the Treasury would reduce its cash in hand by about $45,000.
The statement made by the Auditor General that the Colony had a nominal surplus at the end of last year of $45,000 only has been used to prove that if the Colony had then suddenly wound up and time had been given to collect from its Debtors, a small surplus might have been anticipated if every one of its Debtors had paid in full - a very improbable contingency. It does not however prove that the Colony is in a position to pay its way.
10. My Predecessor pointed out in the 17th paragraph of his Dispatch No.30 of 7th Feb 1864 that it was the view of the Auditor, in which he concurred, that if due regard to Effects and Liabilities were felt much below $100,000, the Colony would be unable to meet its engagements in ready money. This is what has actually arisen, and I am not in a position to borrow any sum with a reasonable prospect of repaying it, unless Your Lordship will consent to relieve this Colony of some of the heavy expenditure with which it is burdened.
11. In fact it is obviously impossible to make remittance without borrowing money, and it was intended to levy a Military contribution from the