PUBLIC RECORD OFFICE
Reference :-
6
C.O. 885
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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imaginary. The Committee had before them no They were actual returns later than 1845. obliged to rely on estimates, as far as 1846 and 1847 were concerned. Now the fact turned out to be that there was a deficit in 1846 of 74,8677.,* and of above 57,000l. in 1847 (Governor's despatch July 4, 1848†). And not only had the accumulated balance relied on by the Committee
to bear the set-off of these deficits, but other New Papers, pp. 7 to 11. very important ones, which escaped their notice
altegether, consisting in the first place of the
amount of the unissued Government notes which lay Ditto, pp. 11 to 13.
idle in the treasuries, and yet figured, according to
the then custom of account in Ceylon, in the state-
ment of balances on which the Committee had
relied; and in the second place, of the reserve of Ditto, pp. 11 to 13. specie requisite to be held against the notes
These two items of
actually in circulation. deduction alone could not be taken at less than the whole amount of the existing Government notes, or 87,4001.; the sum actually in circulation being at times but a small proportion of the whole sum.
In point of fact by the beginning of 1848 no balance could be said to exist at all in Ceylon, beyond that absolutely necessary to work the treasuries with.
The Governor therefore saw that whatever exist- ing taxes he took off he must put on new ones to
It seemed even at least a corresponding amount. necessary that the new taxes should be more remu- nerative than those taken off, or else that a great effort must be made to reduce expenditure. The nearly total cessation of sales of land since 1845 had
• Arising from a decrease of revenue as com pared with 1845 (chiefly in land sales), of And an increase of expenditure as compared with 1845 of £49,972, partly roads, but chiefly civil establishment, which was now increased above £7,000 a-year, in each of the three depart- ments of civil, judicial, and revenue
£
37,742
49,972
Total deficit
87,714
Reduced by various transfers in account to a net
deficit of
74,867
See inclosure to Governor's despatch dated June 8, 1847.
↑ Vide printed Annual Report on Ceylon for the year 1847, laid before Parliament in 1848 (bound up with the similar Reports on the condition of the other Colonies).
Now Papers, p. 9.
* Decrease 00 sales of land
£24,892."
Despatch dated Dec. 13, 1847. New Papers p. 33.
Despatch dated Dec. 13, 1847. Ditto, p. 33.
Despatch dated Dec. 13, 1847. Ditto, p. 33.
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deprived the Government of an important branch
(1846 as compared with 1845, of revenue, while large additions had, since the same period, been made to the fixed public esta- blishments under Lord Stanley's directions at great increase of expense." * The measures which in this state of things the Governor resolved upon in con- cert with his Council were these:-To reduce the duties on foreign imports to the British rates (as advised by the Committee) without any delay, viz., from January 6, 1848;-To reduce, as soon as the requisite noticet should expire, viz., on September 1, 1848, the export duty on cinnamon from 1s. to 4d. for the reasons which had weighed with the Committee ; the existence of financial difficulties which were not thought of by the Committee was not a good reason for postponing a relief to a languishing trade, which to be effectual must be immediate ;-To abolish the coffee export-duty from the same period, viz., September 1, 1848, without waiting for the imposition of the equivalent land-tax in order to afford relief to the planters in the depressed state into which the market had began to fall even while the Committee were sitting in England, though then thought to be temporary, but had now sunk so completely as to cause great loss, embarrassment and alarm;-To abolish also from the same period, September 1, 1848, the other and insignificant export duties; And to seek com- pensation for the loss of revenue involved in these measures and a resource for fortifying the revenue generally against its apparent tendency to decline in A revision of the stamp duties, as suggested by the Committee and previously by Mr. Templer; A-tax on fire-arms, as suggested by Sir E. Tennent and concurred in by the Committee, though its amount as fixed by the Governor was certainly - greatly heavier than either Sir E. Tennent or the Committee contemplated, being fixed at 2s. 6d. instead of 18. Gd.; A shop-tax or prohibition to retail dealers occupying premises of a greater yearly rental than 51. to trade without a licence costing 11. a year, which tax had been thought of by Sir E. Tennent, though not so confidently as to find a place in his plan; A tax on boats let for hire; A tax
• Vide Note, preceding page.
Despatch dated Dec. 13, 1847. Ditto, p. 33.
Ditto, p. 69.
Ditto, p. 40.
Ditto, p. 107. *
Ditto, p. 94. Ditto, p. 110.
+ The local Government was pledged to give ten months' notice
to the trade, of any change in the export duties on cinnamon.