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latest returns of revenue give ground for confidence. Meanwhile however I consider it to be the best policy to frame the Estimates of Expenditure in accordance with the amount of revenue likely to be derived from the present basis of taxation rather than to increase taxation, or to raise a loan. I have dealt with this aspect of the case in my address which also gives full details of the expenditure so that it seems unnecessary to go into detail in this despatch. There are a few increases in establishment, the authority for which is given in the footnotes, but the main feature is the reductions. Whilst it is not possible to abolish posts wholesale, a policy of gradual retrenchment has been adopted, and besides those officers whose services
have been dispensed with, many posts on becoming vacant will be left vacant. Consequently I do not anticipate that the full amount for Personal Emoluments will be spent next year.
The department most affected is that of Public Works, for with a much curtailed programme of works for next year, the present large staff will not be required. In the event of
a return to prosperity it will be for my successor to
consider to what extent works now suspended should be
proceeded with and the manner in which such works should
be financed.
In accordance with suggestions which have
already been made I have added, to the cost of Manufacture
and Working Expenses of the Opium Monopoly, to be deducted
from the Gross Receipts for the purpose of assessment of
Military Contribution, the salaries of those Revenue Officers who are engaged solely on the suppression of divans and
illicit smoking, part of the salaries of the Superintendent
and staff of the Imports and Exports Office who devote a
considerable amount of their time to work in connection
with