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10. Such a blunder therefore as that committed by the original Licensees in engaging to pay a salary of $20,000 a year to McBaldwell or any one as their general agent is not likely to occur again because the Licensees have discovered to their cost, that irrespective of such payments they are obliged to transact their business direct with the Government, and I submit that such a policy was at first the best which under very certain fixed conditions, I do not at this moment see any reason why it might not hereafter be usefully adopted as the basis of a safe permanent system, the details of which, however, would require to be carefully filled up after much further consideration and experience.

12. It is therefore very fortunate under all circumstances that the working of the present arrangements is so satisfactory, that there is no prospect of any immediate change being required and therefore that there is leisure for reflection. The remarks which I have transmitted in my despatch No. 664 by this mail could have been devised to prevent misconception.

11. In reference however to the other method suggested by His Grace namely distributing Licenses by lot subject to ... may be regarded as favorable to this view, for they prove at least the great exertions which are being made.

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