In the present situation, the imposition of additional taxation is being considered.
In drafting the above, make it clear that all expenditure, except what is really extraordinary and such as has been specially sanctioned from special funds or surpluses, must be covered by the revenue of the year. If the revenue is not estimated to be sufficient, either there must be more taxation or items must be omitted on the expenditure side.
Endorse the new despatch noting that works to be paid for from surpluses must be specially sanctioned, as expressed in para. 4 of the above.
We are doing as in the West Indies, avoiding large supplementary estimates, but note that we recognize some could not be foreseen, e.g., the subscription to the War Fund.
Let out the figures as in the above minutes to show what we understand the position to be. I do not think that the case is made out for an immediate increase of taxation, but we should certainly rather than wait, act at once.
In the draft herewith, I have not followed exactly but have summarized its substance. I think it is sufficient.
Send to Audit Office for information a copy of the Estimates under the Appropriation Ordinance. I add that the Secretary of State has, since these estimates were prepared, approved certain increases of salaries, which will be communicated on receipt of further information from the colony for which we have asked.
The additional estimates need not now be communicated to A, as they will appear in supplementary estimates.
Sept. 17/~
I. (x)--12483---2000-1-99
22917--8000-10-99
383
C-P.d
M.Lucas
14
15 A 0
LA