Government is now prepared to make such further payments as may be requisitioned for on account of the Colonial Defence Contribution up to the amount of £116,000 calculated at the market rate of exchange at the date of each payment.
I am to point out that the estimated expenditure of £111,691 (latterly corrected to £111,746) to the 31st of March 1890, includes an amount estimated at $1,942 which was advanced from the War Department funds in March last in anticipation of the Colony providing the funds for which a requisition had been sent on the 28th of March 1890; this amount is therefore due to the War Department, in addition to the balance of £4,409 11s. (now corrected to £4,255) mentioned in the despatch.
The Major General Commanding considers that the sum of $15,000 which was requisitioned for on the 24th of March 1890, but was refused, should now be paid at the market rate of exchange on the day it would have been paid under ordinary circumstances, say the 27th of March; and that subsequent advances made by the War Department after the 31st of March should be paid at the average rate of exchange for the month in which the payments were made; an advance of $2,000 made by the Colony on the 10th of May 1890, has also to be taken into account. On hearing that these principles are assented to, a statement of the expenditure to the present time and requisitions for the necessary funds to adjust the accounts will be made.