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I share the view that the method of its incidence has
entirely failed to rive effect to the object which Mr. J.
Chamberlain had in view (as stated in his Despatch No. 337
1900 $
20764/00 of the 24th. October, 1900.
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when the contribution was
instituted, viz.:- that the contribution should fall less
heavily in years when the Colony was in financial difficult-
-les, and should rise in proportion to its prosperity.
The Estimates for the coming year,
which I am forwarding under separate Despatch, furnish a
somewhat striking instance of this. In round figures a
deficit of some 8 lakhs had to be faced and additional
taxation amounting to some 7 lakhs at least has been
inposed. As a consequence the Military Contribution
automatically increases by nearly one lakh
at a time when
the Colony is in greater financial difficulties then it
has experienced for many years.
3.
I have suggested in the attached
minute an alternative system, viz.:- that half the differ-
-ence between the Ordinary Revenue and Ordinary Expenditure
should be assigned to the Military Contribution with the
proviso that it should never be allowed to fall below one-
-quarter or exceed one-third of the actual Imperial Ex-
-penditure on Defence in the Colony. I am aware that there
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