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"month (December) as heretofore. No difficulty has hitherto been experienced in assessing the tax, and the people look with favour upon this concession of the "Government."

"

9. One reason, and a sufficient one, why the people have received the new Ordinance with favour is that it directly reduces the burden of taxation. In the Grain Tax Ordi- nance itself, an allowance of 10 per cent. for seed is made in the commutation. No mich clear gain to the cultivator. allowance was made under the old system, and this of course

Again, although the money commutation is founded upon the average annual yink of the land during the last 14 years, yet the sum for which the tax was bornotzteď is in a great many instances lear by more than the 10 per cent, granted for seed than the average sum for which the Government tithe was formerly sold, and this fact implies a consider. able saving to the cultivators, for it may be assumed that the renters"unally make a good profit on their purchase of the tithe.

10. Another and not less powerful inducement to the people to fall in with the new system is the relief that they thereby obtain from the numerous restrictions in regard to reaping and threshing their crops which were necessary to protect the interest of the renters, but were not the less vexations because they were necessary.

11. It is to be regretted that the revenue of the Colony should be at all diminishe as it will at any rate for a time be by the operation of the new law, but I submit the will be amply repaid by the abolition of a system of taxation which from its liabl abuse was a reproach to the Colonial Government, and also by the encouragement the substitution of a fixed and moderate tax for the old tithe holds out to every

It may be fairly expected too owner to improve his holding to the atmost. encouragement, coupled with irrigation works, will lead to the cultivation of add lands, which will from time to time become liable to taxation at the Septennial of the tax provided for in the Grain Tax Ordinance, and thus compensate for 1 mediate loss.

12. The satisfactory manner in which the Ordiannes has been brought into reflects great credit upon the Commissioners, Mr. Moir and Mr. Dawson, selected for this important work. Mr. Moir has lately returned to England, i been succeded as Commissioner by Mr. Allanson Balley, Inte acting Government of the North Western Province, who will, I am sure, equally secure libe confidenos of the people. The satisfactory manner in which this important been received by the people themselves is due in no small dauma to the the Government and the Commissioners received from the natều chief districts where it was brought into operation, and especially from Mr. D. Jayatilakaratna Bandaranayake, Mudalyar of the Governer's Gate, juskice of the in whose korale the Commissioners commenced their work.

The Right Hon. the Earl of Kimberley,

dc.

&c.

I have, &c. (Signed)

J. R. LONGDEN,

Governor,

No. 2.

RIGHT HON. THE EARL OF KIMBERLEY to GovNor Sir J. R. LONGDEN,

K.C.M.G.

(No. 90.)

Sm,

Downing

I have the honour to acknowledge the receipt of your Be 2nd ultimo, reporting on the progrem which has been' zaade lu

the commatist of the grain tazas.

I have read with internet this satisfactory report, and have

service rendered by

ratna Bandaranayaka,

Governor Sir J. B.

anda. Tur Commissioners and tay

of the Governor's Gata.

gin, EC.M.G.,

PUBLIC RECORD OFFICE

Reference

mwimmim TIILICO. 882

PUBLIC RECORD OFFICE

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