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highly efficient manner, and in my opinion the public

service of this Colony is one of which we have a right to

be proud.

I ascribe this satisfactory state of affairs largely to the fact that, as a rule, Government officers are

now, owing to the recent revisions of salaries, the provision of quarters at a reasonable rental and the grant of free passages, relieved from grave anxiety as to their

financial position. But even now the average married

officer is able to save very little and I have little doubt that if tree passages were not granted, a further increase of salaries would be necessary, entailing a further

liability for increased pensions.

3.

I recommend, therefore, the retention of the

existing system of free passages as a permanent arrangement, subject to the Government's having the power to withdraw the privilege at any time on giving a year's notice. Some such reservation is necessary to guard against financial

stress in the future.

I have the honour to be,

Sir,

Your most obedient humble servant,

7.5. Stalls.

Governor, &c.

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