been enabled to right itself, and advance from a state of Bankruptcy to a perfectly solvent condition. The enclosed Estimates show convincingly and beyond all cavil that, even if the Colony had given up the Colonial vessels and somewhat reduced its Police Expenditure, it would still be able to provide for all its most essential requirements. The Colony, therefore, is independent of the Special Fund, and has never been indebted to that Fund for its progress from Bankruptcy to Solvency, a fact proved by actual figures.
I am particular in emphasizing this point because, as Your Lordship must be aware, there have been so many attempts to overlay all questions bearing on the Special Fund, either directly or indirectly, with misrepresentations - no doubt intentional, but most founded on ignorance of local facts and circumstances. It is important to bear in mind that Her Majesty's Government is perfectly free to pursue any policy involving abolition of the Special Fund, so far as the Colony's pecuniary considerations are concerned, except that which is connected with the certain increase of crime and demoralisation of the Police, which former experience proves would immediately follow.
I may also draw special attention