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I stated that customs duties in other Colonies at most add 10% to the price. Bir.M. Nathan says that this is not correct. I have had considerable experience in dealing with customs duties in Mauritius, and this was taken as an axiom. I believe that all who are familiar with the subject will bear me out: as also in this, that in fixing the price of goods the actual customs duty is included as an integral part of the price, a corresponding sum being added or subtracted as the duty is increased or diminished: in which it differs essentially from fluctuations in exchange.
Sir M. Nathan says that $200 a month is "certainly not the average rent of house occupied by Government officers" - I was careful to refer only to the house rent paid by officers holding first-class appointments. The purport of the criticism therefore is not obvious; nor is the parenthesis, that "one of the signatories is provided with Government Quarters". This refers to Mr. Dunn the Director of the Botanic Gardens. His house is included in the emoluments of his office: and I am informed that it is a house which would command from $160 to $175 a month.
vi.
I further stated that "landlords do not find house property a profitable investment": Sir M. Nathan says it is "incredible". It may be incredible to any one who has not gone into the matter fully, but I have not invented this statement out of my own brain. It is the opinion I have heard ever and over again expressed by those who know the subject: and in support of my statement I enclose a letter from a house agent of long standing in the Colony which bears it out in all respects. It also bears out my further statement that "it is hardly possible to anticipate any reduction of rent", in consequence, that is to say, of the rise in exchange. House rent is a mere question of supply and demand: there has, it is true, been a slight reduction in rent in some cases on the Peak, but this has nothing whatever to do with exchange, but to the fact