2

8

were so brought to credit, large defalcations have been permitted in the reality.

5. This serious accusation does not appear to be supported by facts.

6. Had you ever visited the Treasury, or enquired into the manner in which its business is conducted, you would have found that the Chinese Cashiers report every afternoon to the clerks in charge of the various collections the amounts received by them.

If there tally with those shown in the Clerk's collection books, they are duly reported to the Chief Cashier, who enters the total on a paying-in slip, which he sends to the Bank.

All sums paid into the Treasury were adequately secured. The system pursued by me has been that followed, to the best of my belief, by my predecessors, and it may be well to explain its nature.

The Cash Book is entered with the amounts at the same time as the money is paid into the Bank. The slip is returned by the Bank receipted, and is then sent to the local Auditor. That officer makes it his duty to check the receipts into the departmental books.

7. In the Hong Kong Treasury,

...

Y. In the

and bo

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