For the sake of the larger works has been approved years ago.

The Loan Balance might be exhausted first. The matter referred to in this context was paragraph 3 of despatch on 8 December 1882.

No change has taken place in the financial position of the Colony (as Mr. Fleming assured yesterday) since the Legislative Council approved increased salaries placed in the Estimates for this year.

The members were all of them perfectly aware of the increased Military Contribution voted in the Estimates. Though the Unofficials, of course, voted against it, none of them raised any objection to the increases of salary, except W. Keswick who, on the second reading of the Appropriation Ordinance (see Kay D. Press of 9 Dec.), expressed the opinion that in many cases they proposed increases beyond what the Secretary of State had sanctioned (see 1/23).

The 35 percent increase was much larger than was originally recommended by the Committee of which he was a member. He alleged that the Committee's proposals would not have involved the Colony in larger expense than $10,000. In this respect, Mr. W. Keswick was mistaken, for paragraph 15 of despatch 1598/09-1 shows that the cost involved by the scheme which the Secretary practically adopted was about $53,000. The modified scheme which the Secretary sanctioned was actually based on the Committee's proposal with the change that salaries were to be fixed in dollars and not to vary with the rate of exchange (despatches 1598/89-907, and the cost has been about the same).

As there is no change in the financial position or prospects of the Colony since the Estimates were considered and passed, the Council, I think, it would be unfair and unnecessary to postpone the scheme of uniform salaries.

Telegraph to the following effect: "By despatch of 6th April, I see no reason to postpone increased salaries. Inform Unofficial members and write despatch explaining."

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