263
6.
As regards paragraph 7 of your telegaan if the objections to which you refer are in fact raised, you will presumably reply to the effect that in many casca no exact division between expenditure which should be chargeable to revenue end that chargeable to loan is possible, and that a times of commercial prosperity it is only prudent to meet from revenue ge much of current expenditure whether on capital account or on recurrent account as is reasonably possible in order that the Colony may avoid having to bear the burden of loen charges when times are less prosperjus, Moreover increased taxation with its wider application and absence of any loan interest charges is likely to be more effective action against infletdo0827 tendencies than the procedure of meeting capenditove from loa. funda even where the loan is raised locekly.
7
A
On the question of further borrowing redemned to in porsgraph 9 of your telegram I og telegraphing separately,
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R. 3. Roberto.