Considering that a remedy should be sought rather in a reduction of expenditure in the Colony, than in the imposition of fresh taxation.

Their Lordships have noticed especially the large increase in unproductive expenditure for Establishments. They do not refer to much of the Police additional outlay on Establishment, which may be regarded as counterbalanced by saving under the head of Jail expenditure, as being a steady & rapid growth of the charge for Civil & other Establishments generally, notwithstanding the depression of the Public Revenue.

They are aware that this expenditure has received the sanction of the Finance Committee Board; and that a portion of the increase apparent in the present Estimates has been rendered necessary by the recent Stamp, Registration, and Junk Ordinances, and may not be more than the Revenue that will arise from these enactments will justify.

Nevertheless, they trust that the Government will feel it their duty to resist to the utmost that may consist with an efficient performance of the Public Service, the strong tendency to expansion possessed by this class of expenditure.

Their Lordships have already signified in their letter of the 14th August their consent at the closing of the House of Commons' financial year, but they cannot look forward to any material saving being gained under that head within the current year.

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