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376

223

aggravated by a fall in the exchange value of silver, a heavy

loss on redundant subsidiary coins (on the endeavour to re-

-habilitate which the Colony has spent some 7 lakhs in the

last 3 years) and in the matter of the Opium Trade .

These considerations may perhaps

add some point and force to my observations but it is not

primarily on such grounds that I venture to point out what

appears to me to have been an error in the drafting of the

Estimates for the current year.I prefer to rely upon the

merits of the case as it stands.

3.

In order to construct the Railway

the Colonial Government has borrowed a sum of approximately

£1,200,000, the annual interest on which at a little over

34 per centum with sinking fund at 1 per centum amounts to

£55,000, or say 8600,000. The sun which is raised annually

to pay this interest is not a part of the normal revenue of

the Colony. It decreases annually as the sinking fund operates

to extinguish the loan, and I submit that it should not have

been shown in the Estimates as subject to the 20 per centum

deduction on account of Military Contribution.

The ordinary expenditure on working

expenses, and maintenance of open line is on the other hand

a normal charge, to be met from Revenue, and the receipts

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