CO882-(1-2) — Page 140

PUBLIC RECORD OFFICE

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C.O. 882

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PUBLIC RECORD OFFICE, LONDON

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FIRST MINUTE.

In the consideration of the report submitted to the Secretary of State by the gentlemen appointed by his Lordship to examine into the financial condition of this colony, the first and very important feature which presents itself is the fact of their assumption of the existence at the present moment of a large accumulation of public money, and their anticipation of a considerable annual surplus; the one unfortunately does not exist, but, on the contrary, the Government labours under much embarrassment, while there is reason to suppose that the demands upon* for some years will fully equal the revenue that can be levied, even under an improved system.

Import Duty on Rice and Paddy.

I cannot but strongly remonstrate against the contem- plated reduction of the import duty upon rice and paddy; under present circumstances it is impossible to abandon so large an amount of revenue, and I hope to be able to show that there is no urgent demand for it, and indeed that it will be long before so large a revenue can be obtained from other sources with equal facility, or with less pressure upon the community. He then states at length his reasons for dissent.

The rice duty produced (in 1845) 63,3081. Os. 5d., and the paddy duty 11,803). 118. 5d., so that the proposed reduction would have amounted to about 40,0001. This is one of the proposed changes which Lord Torrington did not adopt.

Assessment Duty on Rice and Paddy.

The next suggestion is the abolition of the paddy tax. This is a measure which I had the honour of recommend- ing to the Local Government early in 1846, and which I still think should be carried out the time and mode of doing so will, however, depend upon the steps to be taken by the Government for introducing a land-tax. There will not probably be any difficulty in completing the arrangements for levying a tax upon cinnamon lands, at the expiration of the ten months during which notice must be given of the intended abolition of the duty.

Export Duties.

In the beginning of 1846 I very strongly urged the reduction of the export duty, and would now recommend the immediate publication of a notice that it will be abolished in ten months. The entire abolition of the export duties should, in my opinion, take place simal. taneously, as I think that the revenue to be marifced could then be replaced in some shape.

• Sis.

There

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Import Duties.

can, I think, be no question that the revenue which would in the first instance be sacrificed by the equalization of the import duties on British and foreign produce would be very speedily made good by the increase of trade, if that trade were once established. But there is reason to believe that the view taken in the report as to the removal of the restrictions upon the foreign trade, does

not correspond with that of the officers of the Customs in the colony.

Commissariat.

As to the Commissariat, he mentions a doubt Whether the trade of Colombo could be expected to keep on hand a sufficient stock of goods to meet the demands for the public service, or whether they would not expect the Government to take charge, immediately If the on their arrival, of any stores imported for its use. latter rule were to be established, I can see no benefit to be derived from the abolition of the existing Commiss- riat; for we should then be burthened with the payment

of colonial storekeepers in addition to the officers of the British Commissariat, who, it is distinctly stated by the Lords of the Treasury, are to be paid by the colony.

Tanks.

As to ruined tanks, he is against their restora-

tion, and gives his reasons.

He then observes upon the...

Land-Tax.

I have deferred to the last, any observations upon the scheme laid down in the Report, for the imposition and collection of a land-tax, both because it is the most important of the subjects brought under consideration, and because it is one upon which I am constrained to dissent from the propositions laid down. As a member of the civil service of Ceylon, I am prepared to encounter on the present occasion some degres of mistrust; but I should be wanting in the discharge of my duty not only to the service, but to the colony, were I to pass without remon- strance the proposal made in the Report, that officers abould be borrowed from the East India Company's serviss for the settlement of our land-tax. I would ask, whether any measure could so effectually tend to dishaurion the whole body of the civil servien, and to render them indifferent to the discharge of their duty, as this proposal to bring in for the performance of a duty strictly belonging to them, officers from another service; which would amount, in point of fact, to a new announcement that Her Majesty'a Govermutant - regarded the civil service as undeserving of confidence? The Repost umumes that the settlement will be rapidly effected, and the labours of the settlement officus speedily oszchuded. I confson, that this ampa tion appears to me to be fallacious, &o.