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that there are a considerable number of men whose wives havO

gene home, and who therefore are living at the Hotels: and also

to the fact that the opening recently of a new and convenient

boarding house has absorbed many families who would otherwise

●ccupy heuses.

But it is difficult to understand in what

way Sir M. Nathan anticipates that the rise in exchange will

affect rents. Does he imagine that the rent which I, for

example, pay for my house would be reduced even if the dollar went to 3/-, er increased if it sunk te 1/6: if this is not the

anticipated result then it is obvious that supply and demand,

and not exchange governs this question. The following is my personal experience in the matter of rents. I was asked $270 a

month soon after my arrival for a house which had been let at

$150. I think a tenant was found after it had been empty for some time at $170. Another was offered to me at $250; but after being empty for some months owing to the state of the roof, it was, after being repaired, let for $240. These figures are

merely incidental te supply and demand and to nothing else. The

fact is that the cost of building is so great that it is more

than improbable that any reduction of rent will take place

unless a hpuse stands empty for a long time, when it becomes

imperative to find a tenant.

My statement that "servant wages are

roughly no less than $100 a month including 4 chair coolies" applies as I believe te all classes of officers who are house-

-holders. It was not difficult to see to what classes I was

referring. I was net referring to 'subordinate officers'. conveyance allowance has no bearing on the question.

4.

The

I have the heneur te request that this

letter may be forwarded to the Secretary of State, and also

laid on the Table of Council. I have alse to request that a copy

may be forwarded to His Excellency Sir M. Fathan, Governor of

Xatal.

I have etc., (sd.) 3. T. Piggott,

Chief Justice.

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