CO882-(1-2) — Page 187

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

1 ALLY WITHOUT PERMISSION OF THE

PUBLIC RECORD OFFICE, LONDON

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You will also perceive from the papers now laid on your table, that this surplus is no forced or fictitious one produced by the postponement of charges which would, sooner or later, have to be paid. I have to point to you, the pleasing fact, that within the last few months the whole of the outstanding debts to the Presidencies and Agents in Indiu have been paid off by this Government. The debt of 50,000l. to the Oriental Bank, contracted in the embarrass- ment of 1848, has been paid off, principal and interest, with the exception of about 11,000l.; a rum of 10,0001. having been paid within the last few days. Large remittances have been made to the Agent-General in London, who, contrary to precedent of late years, in which he has frequently been in advance for payments on account of the Ceylon Government, will have a considerable balance in hand on the 1st of January next. And with all these payments, and this almost total extinction of the debis due by this Government, the accounts of assets and liabilities which I have had made up to the 1st of October last, shows a balance in favor of the colony at the latter date, of no less than 62,5891. 58. 3 d., as compared with a balance of 36,5327. 13r. 74d. on the 1st of January last, being an increase of 26,056). 11a. 8jd.

This state of affairs gives good augury for the future; and it is satisfactory to me to think that the consideration of the further measures of financial and administrative reform, and of wise and judicious retrenchment, which will hereafter be submitted to your deliberations, will be unembarrassed by any pressing difficulties or exigencies of the passing hour, and may therefore be carried out in that deliberate spirit and with that general forethought for the future, in which, I trust, they were conceived.

The result of the economy enforced by Lord Torrington appears to be, that the expenditure of the colony was reduced by him, as follows:

£ 8. d.

1847.

53,441 10 0

1848.

15,223 0 0

1849.

11,115 0 0

Total

£78,780 0 0 Expenditure in 1849

less than in 1846.

In the first nine months of 1850, as compared with the same period in 1849, a further reduction of 16,4081 was effected, exclusive of the road de- partment. In this department there was a further diminution of the charge on the general revenue, of 4,3351. But the road ordinance having been brought into extensive operation in 1850, the total expenditure in the road department stands as follows:

Annual Report, p. 2.

See also Sir E. Tennent's Evid.,

July 11, 1850, 9291.

Sir George Anderson to Lord Grey;

No. 8. January 6, 1851,

Financial and Commercial Mea- sures of Lord Torrington

Lord Grey to Lord Torrington;

June 18, 1847.

Mr. Wodehouse's Evidence.

Bee Sir E. Tennant's Evidence,

May 10, 1850.

Blue Book, 1863.

Expenditure from General Revenue. Ditto from proceeds of Road Ordi-

Nine months

Nine months

of 1849.

of 1850.

£

22,101

17,765

Dance

Value of Labour Commutation for ditto

nil

4,365

nil

14,598

22,101

36,729

£14,628

Increase of expenditure in 1850 in Road

Department ..

Beyond, however, attempting to bring the expen- diture within the income, Lord Torrington, according to his instructions upon his leaving England, intro- duced various measures calculated to relieve and improve the trade of the island. These instructions were embodied in a Report prepared in the Colo- nial Office, founded, it is proper to remark, solely upon the official documents in the possession of the Secretary of State. It was presented to Lord Grey, April 13, 1847, signed by Mr. Hawes; Mr. Tufnell, who had taken a part in Sir Wil- mot Horton's Government, and was personally acquainted with the colony; Mr. John Lefevre, of the Board of Trade; and Mr. Robert Bird, a gentle- mon of high reputation in the Civil Service of the East India Company. It was not, however, trans- mitted to the Governor with the unqualified appro- bation of the Government at home, but as "a rule for the guidance of the Government of Ceylon, so far, and only so far, as the members of that Govern- ment, after duly weighing it, shall be themselves of opinion that the practical conclusions which it would establish, are just, and can be successfully brought into execution.”

The Executive Council, it is admitted, had this despatch laid before them by the Governor; and the consequence was, that various measures were introduced to relieve trade, and to distribute more justly the taxation of the colony.

The export duties were abolished, except the duty upon cinnamon, which was reduced by two- thirds, viz., from 1s. to 4d. the lb. The import duties wore equalized, differential duties being abo- lished. Generally, the taxes reduced are to be estimated at 42,1631. New taxes were imposed as follows:--