480
more favourable to the Government than any I hoped for at the
time the Farmers' first request for a reduction of $70,000
per mensem threatened very serious embarrassment to the finances
of the Colony. That it has been possible to come to this ar-
rangement is due to the firmness and tact with which the Colo-
nial Secretary, assisted by the Registrar-General, has conducted
the long, intricate and delicate negotiations with the Farmers
and if you approve of the action that has been taken I trust
you will authorise me to express to Mr. May and Mr. Brewin
your appreciation of the services they have rendered in the
matter.
13.
As regards the situation resulting from
the arrangement I do not look upon the loss of $30,000 during
the current year as making any serious difference in the
financial position of the Colony nor do I consider that it is
necessary at present to increase taxation in order to meet the
deficiency of $180,000 on the Estimates for next year.
Those estimates were framed with caution.
Exchange for their purposes was taken at 1s. 8d. to the
dollar. Should it be maintained at 1s. 10d. (it is at pre-
sent considerably over that figure) the saving effected will
be at least $90,000. Moreover, since the Estimates were framed
I have decided to have a new valuation made of the more valuable
portions of the Colony for rating purposes, to come into
operation on the 1st. of July next. It is estimated that the
new valuation will give an increase of from $30,000 to $40,000
to the revenue during next year. The natural expansion of the
Colony and its revenue may I think be relied on to make up
the remaining $50,000 to $60,000.
14.