3.
41
realized if not exceeded, since that figure is nearly
$1,500,000 below the realized revenue of 1938.
If a
revenue equal to that of 1938 is received and present
estimates of expenditure are adhered to, the Colony will
have a further surplus.
2/53941/58
5.
In your despatch No.302 of the 23rd September,
1938, you pointed out the desirability of a surplus somewhat
larger than the $10,000,000 formerly regarded as the standard
and the present surplus does substantially exceed that
figure. I do not, therefore, consider that this is the
time to add to the surpluses which have been accumulated
in recent years.
I cannot but feel that that has been done
too frequently by putting off very necessary public works.
So far as provision is needed against possible hard times
in the future, I venture to say that, if such need arises,
recourse might well be had to increased taxation before
it is necessary to call on reserves. With this in mind
I have recently appointed a committee to consider the
broadening of the basis of taxation; a copy of a notice
stating the composition and terms of reference of this
committee is enclosed for convenience of reference. It is
not yet in a position to report but I understand that its
deliberations so far have not tended to shake the belief
that there is in the Colony a fair reserve of taxable
capacity as yet untapped.
Enclosure No. 1.
Enclosure No. 2.
6.
With all these considerations in mind I seek
your approval of the addition to the provision made in the
1939 estimates of certain further works, listed in the
enclosed statement and estimated to cost $799,375 during
the current year. Some of these are items which were included
in the original draft estimates or which I intended to add
to them. Others are new, particularly the new Prison works,
which are the outcome of proposals made by the new
Commissioner
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