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it would be advisable if possible to postpone any further payments on account of Watts until after that date.
The balance to the credit of the special fund is $221,733.02 and the Liabilities on account of the Watts detailed in this Memo: are $31,400.
Earl Granville mentions in his despatch that the Estimates should not include the proceeds of Gambling Licenses as "Actual Revenue" which may be appropriated to other objects, but I imagine these receipts should be shown in the Estimates, care being taken not to estimate for a greater expenditure against them than is properly chargeable within the meaning of his Lordship's instructions. Were this not done, I fear complication in the expenditure might occur and the Council would not, unless further Estimates as to the charges on the special fund were laid before them, have the means of judging what the contemplated expenditure actually amounted to. A separate account of the Fund would of course be kept, and the balance to the credit thereof struck off the available Assets at the end of the year.
I am about to send you the separate Report on the subject of the Estimates.
I have …
(signed) W. H. Rennie, Auditor General