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former vote, and $2000 of the latter were likely to be expended within the year. Useful works are therefore well in hand, and if the Estimates for 1881 are acted up to, all the smaller works recently proposed will be undertaken. At least, as far as I remember, of the greater works, now that the Praya Wall is finished, there remain, the Central School, the Jail, the Breakwater, and Native works, all of which are to be handed over out of the cash accumulated balance, or the "Special Fund".
Before turning to these works, I have two remarks to make of general principle.
First, it appears to me that Mr. Keswick in Comment (see bottom of page 1 of last Enclosure) has got hold of the right idea regarding public works votes, though his remarks are not very clear. In the despatch No. 2225 of 23rd March last (on CO 12909/80), the Secretary of State asked whether the heading in the Liabilities return "Expenditure in arrear" included unexpended votes for Public Works. This question has not been answered.
But from the fact that $3000 of the vote for the Praya reclamation will remain unexpended at the end of 1880, and that no further vote on this account is taken in the Estimates for 1881, it is, I think, clear that the unexpended balance is rightly regarded as a liability. This system has been followed to some extent in Ceylon and has the advantage of avoiding the danger of want of funds to complete a given work. But this contingency is so...