Appointments for Your Lordship's approval were drafted by my order, but it was not sent, as the discovery of the Treasury defalcations supervened, and Alves absconded from the Colony.

2. On the disappearance of Alves, I approved of the temporary arrangement recommended by the Treasurer that Mr. Carvalho should succeed Alves as first clerk, drawing half his own salary and half of that which had been provisionally assigned to Alves, and that an additional clerk should be temporarily engaged to work off certain arrears, consequent on the disorganization with which the Treasury work had been thrown by Alves' defalcations.

3. I propose to defer recommending any permanent appointments for Your Lordship's approval until experience has been gained.

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