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Auditor General has no desire to raise any question upon it"

4. At the time the above quoted letters were written the Military Contribution paid by the Colony to the Imperial Government was a fixed sum annually, but now it is 17% of the Colonial Revenue.

5. Under the existing system the rates on tenements occupied by military officers are recovered quarterly and carried to account as revenue. The amounts so paid are subsequently refunded and charged as payments to "Miscellaneous Services": Refunds of Revenue, and the Colony has to pay 17% on the total amount as Military Contribution on Revenue which has been refunded.

6. In your letter No.32 of 12th February 1891 you said:

"With respect to the refunds of revenue erroneously brought to credit in any current year, the Comptroller and Auditor General thinks that the more correct method would be to bring all such amounts under the line in the monthly accounts, and in the annual accounts to deduct them from the head or heads of revenue, to which they have been improperly credited."

7. I duly communicated this to the Colonial Treasurer,

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