Minute by the Colonial Treasurer.
C.O 9715/282 Race 3 SEP
When the payment of the balance of the Military Contribution for the year 1907 was made in March, 1908, the amount was based on a total of Revenue which included the sum of $28,448.34 being 'Interest' on Government Balances during the year.
At the time of payment it did not occur to the Treasury that the proper method of dealing with 'Interest' amounts, whether Revenue or Expenditure, would be to treat them at the end of the year as virtually one account and that therefore only the balance of such account should be put down to Revenue or Expenditure according to the nature of such balance.
An adjustment on this line was, however, subsequently made with the result that the Revenue item 'Interest' disappeared and the Expenditure "Interest on Advances for Railway Construction" was reduced by the above-mentioned amount.
It appears to me that any other method of accounting would be anomalous since it would show a large expenditure on 'Interest' and at the same time a smaller amount at credit of Interest under Revenue on which latter sum the Military Authorities would levy their contribution.
(Sd) C. G. Alabaster,
Acting Colonial Treasurer.
31st July, 1909.