639
them to shew cause why they should not be held pecuniarily responsible for the amounts misappropriated during their several tenures of the office of Treasurer. Copies of these letters, and of their replies, and of further correspondence with Mr Airdhouse and Mr Maguire on the subject are enclosed. I also caused a separate letter, of which I enclose a copy, to be addressed to the Colonial Treasurer, commenting on his neglect of duty disclosed by the report of the Commission and the evidence recorded by them, informing him that the matter would be laid before the Secretary of State, and requesting him to furnish any explanations or statement that he might wish to be considered by Your Lordship. Copies of his reply, and of a further despatch which he has asked to be submitted to Your Lordship are enclosed.
3. It will be seen from the report of the Commissioners that the defalcations extend over the years 1888-92 inclusive, and amount to some $62,817, that the books have been balanced and the defalcations discovered in excess of $17,600, and that there is no reason to believe that any misappropriations have been committed by anyone in the Treasury except Alves.
4. The first question that I have had to consider has been whether