with the nominal balance in its favour
of $89000-
Stand
The estimates for 1878, as here fragmentarily presented
Revenue $844,281
Expenditure $900,245;
i. Sir Arthur Kennedy proposes to make a further call on the balance for $56,000 which would reduce it to $33,000: to
judge of the propriety of this proposal,
it may be useful first to consider of what this balance is composed: you will find the fifth and sixth enclosures in enclosure 7 of this despatch;
the assets include over $20,000 of copper coins, which the Government has great difficulty in putting into circulation, which cannot therefore be looked upon as a good asset, & $469,000 of Revenue arrears; of this last item it would appear from inclosure 6 that the greater part is land revenue: nothing
is said as to how much
of this is probably recoverable. According to Sir R. Macdonnell's account of Bore Shappp's case (GR1178/1922/32(III)) where poor people had abandoned their holdings as soon as you attempted to enforce payment, & to the tenor of the present despatch, there is fair ground to doubt whether the outstanding business will be recovered.
From the statement of liabilities it would appear that on the last day of each quarter there is due
an instalment of the military contribution
of $23,000, there are also paid Salaries, &c., to about $50,000: unless Revenue is forthcoming to meet this liability
at the same date, there must be cash at the close of each quarter to provide for these payments, & there is also a further deficit of $47,000: against these liabilities the Colony keeps a cash balance which varies from about $100,000 to $190,000 excluding copper coinage; this does not appear to me by any means excessive. Virtually, therefore, the revenue to the credit of the Colony on which Sir A. Kennedy bases these estimates, consists of the copper coinage & the arrears of Land Revenue, unless the former are put in circulation, & the latter paid to a considerable extent in the course of this year, it appears to me not improbable that about the beginning of 1874 Sir A. Kennedy may find himself short of ready money, unless these estimates can be amended.
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