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185
unjust that they should pay a reasonable proportion of
their business profita to Revenue to provide among other thinge for the insurance against war risks afforded by our
Land Forces.
The protection afforded to the Naval Docks and coal
depots by the Land Forces, even supposing that the
Colony paid the entire cost of the Forces and land defences,
(instead of only about of their cost - see Table 2),
would be but a very partial return for the protection afforded by the Navy. Since, therefore, the Colony is not prepared, (like those referred to above), to raise its own local forces, and insure itself against war risks, it
remains liable for the whole cost of the Forces it borrOWB
for the purpose and if the Contribution does not exceed the cost of those Forces and Wefences it has no logical ground
for complaint.
If the payment of the Military Contribution leaves too little margin for capital expenditure on works, the remedy is to find a means of increasing the Revenue. If it can be
shown that a Colony is so over-burdened by taxation that it
ie too poor to meet its obligations, it may urge a ples for exemption not on the grounds of the injustion of the tax, but on grounds of poverty.
The ability to pay an assigned Contribution is not measured by the actual Revenue shown in the yearly Budget. This represents only the amount which the Colony has seen fit to contribute to the cost of Administration and Defence
not the amount that it is capable, without undue burden, of contributing. It is not the purpose of this Memorandum
to discuss whether the limit of reasonable taxation has, or
has not yet been reached, but the plea of poverty has ever
been