A

Af

expenditure. If

or accumulated balances

you treat borrowed money as revenue,

there now can

can be a deficit. If you

do not treat borrowed money or

accumulated balances as revenue, but

get in include the cost of public works paid for out of borrowed

money

in the expenditure,

any

or accumulated balances, some

2009

we may

amount of deficit. It appears bona fide that Sir J. Hennessy is inclined to follow the latter course with regard

to the accounts of the Colony previous

to his reign and the

course

with regard to the accounts often during his reign,

2-18887. he blames

I harshly for excluding the Public Works

expenditure (paid for out of the "Special Fund")

337

from the general return of Colonial

Expenditure, and in the first printed Enclosure to this despatch (passage

marked at bottom of p.2 & top of p.3) he justifies the opposite course

by quoting

"instructions to Governors" of 1847 which forbid the use of the terms "Extraordinary" or "Special" Expenditure:

It is evident from what Sir J. Hennessy himself goes on to say, that the intention of these instructions was to prevent any

part

of the

expenditure being removed

from the ordinary course of central scrutiny. But even apart from

the fact that it has been found

convenient, according to the circumstances of a Colony, to modify

the system laid down in these instructions, there is nothing in

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