2.
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will be forwarded by an early mail.
5. The proceedings, and in particular my reply
to the Unofficial speeches, set out the position fully,
and it appears unnecessary to discuss them further at any
length in this despatch. This Budget has admittedly been
a very difficult one. The Colony is suffering, in common
with the rest of the world, from trade depression. The
low value of the dollar has necessitated a large increase
in the dollar provision for sterling salaries and other
services paid for on a sterling basis. The first draft
showed a very heavy deficit, and it was necessary for me
to scrutinize very carefully and in detail all items of
expenditure, and also to explore new sources of taxation.
6. It was inadvisable to overlap the work of
the Retrenchment Commission and, while there are further
economies, more especially in personnel, which it should
be possible to effect, it seemed desirable to leave these
for investigation by the Commission.
I feel convinced
that, apart from such economies and subject to the
proposed alteration of the basis for the payment of
sterling salaries, it is not possible to reduce the
provision further without a dangerous loss of efficiency.
7. I explored various possible sources of revenue,
in order to obtain the necessary funds to reduce the
deficit on the year's working to a safe figure without
imposing on the Colony too onerous a burden. The
additional taxation finally proposed by me is
set out in the Colonial Secretary's speech on the
introduction of the Bill. While there is always
a measure of opposition voiced against any form of
increased