For the reasons stated herein, effort should be made to obtain a reduction of the amount of the Military Contribution payable by this Colony, and also to the fifth paragraph of my despatch No.345 of 23rd December last endorsing a recommendation by the Unofficial Members of the Legislative Council that the contribution should be fixed at some stated annual number of dollars.
The arguments in favour of these recommendations have been materially strengthened by the enormous fall in exchange that has occurred since the first of the two despatches in question was written, and by the uncertainty which attaches to the future of silver. At the present rate of exchange the amount of the Military Contribution is equivalent to about one-fifth of the whole revenue of the Colony,