CO882-(3-4) — Page 625

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

4 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE

BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

"estimated revenue by Rs. 115,144, and if the expenditure could be kept down to "this figure, there would be no urgent necessity to provide additional resources." In other words, while allowing tor the future growth of expenditure in connexion with the Government loans, Sir J. Longden hardly appears to expect a present deficiency of Rs. 500,000 due to falling revenue; whereas the relief which he hopes to gain by Paragraph 69. retrenchment and by readjustment of revenue, amounts to Rs. 432,200, which he trusts

may be supplemented by a reduction in the military expenditure.

Deficit for 1983.

Page 25 of print.

Increased taxation pre- ferable to

ment.

l'age 23 of Frot.

6. The present year is, however, so far advanced that the deficiency for 1883 has now been to a great extent ascertained, and at this late period there is no advantage in I can only trust discussing the estimates which have been formed as to its amount. that your Government has been insisting on the greatest economy being practised in the public service, and that it will not be found necessary to resort to the unsatis- "to charge the interest for 1883 to factory expedient suggested by Mr. Dickson, viz., "the capital accounts of the railway and other works, except so far as any surplus from the sinking fund of the Kandy Railway may meet the charge, and to raise special taxes to provide for it from 1884."

[13

As regards the following years, it would seem, according to the Committee's figures, that if the Government service is to be efficiently carried on, an additional sum, falling not very far short of a million of rupees, should be provided.

7. It is clear that recourse must be had both to a reduction of expenditure, and also to readjustment, and, in some degree, to an increase of taxation; but (excluding the question of the military contribution, to which I shall refer later), I am of opinion that the efforts of the Government should be devoted at least as much to extending the sources of revenue as to further diminution of expenditure.

My reasons for taking this view are twofold. In the first place, it is clear that while the imposition of new taxes need involve but little delay, the full result of measures great retrench of retrenchment cannot be attained until some considerable time has elapsed, and in a case like the present, where it is hoped that the depression may only be temporary, it is clear that the steps to be taken should be such as will produce an immediate effect.

In the second place, Mr. Dickson has very clearly pointed out that the present diffi- culties have in great measure arisen from expenditure incurred primarily in the interest of the European part of the community, and it would seem but just that the present burden should fall at least as heavily upon them as upon the natives; but, as he shows, reduction of expenditure will affect the natives rather than the Europeans, for it is impossible to retrench in respect of charges on account of loans for railway and harbour works, and economy would therefore have to be practised chiefly in those branches of expenditure with which the native population are mainly concerned, as, e.g., Civil Increase of taxation, on the other Establishments, Hospitals, Education, Irrigation, &c. hand, can be adjusted so as to impose upon each section of the community its fair share of the burden.

Withdrawal of 20 per cent.

Page 3 of

priat

l'aragraphs 24

and 25 of Despatch.

8. I will proceed to consider in detail the suggestions which have been inade for reducing the expenditure, before turning to consider the additions that may possibly

be made to the revenue.

The first proposal made by the Committee is that the 20 per cent. increase given a few years ago to the higher members of the Civil Service should be withdrawn in each case of promotion or vacancy.

I agree with Sir J. Longden in thinking that such a withdrawal would be neither just nor expedient; should the financial difficulties of the Colony hereafter prove very extreme, it might be found necessary to effect a general reduction of salaries throughout the service, as was done by means of a percentage in the case of the Bahamas some years ago; but I do not consider that it would be right to mulct certain members of the service only, to cause a feeling of soreness among the very men to whom the graphs 26-7 of Government looks at such a time as the present for unusual energy, and seriously to damage the prospects of promotion for the junior officers; nor is the proposed measure calculated to give the immediate relief to the revenue which is required.

Governor's salary, page 3 of print para

Despatch.

9. I do not consider that the pay now given to the Governor is more than sufficient Page 3 of print, for the responsible and expensive post which he occupies, and I am not prepared to

consent to the reduction under this head proposed by the Committee.

paragraph 29 of Despatch.

Secretariat.

Rs. 7,100.

10. As the proposed employinent of native magistrates, to which I shall again allude, will facilitate the reduction of the number of writers, no exception need be taken to the proposed saving of seven thousand one hundred rupees in the Secretariat.

7

of print,

Despatch.

11. The offices of Treasurer and Collector of Customs are the subject of separate Treasury, &c., correspondence, and therefore need not be now considered in detail. It is, perhaps, safe int, para 1 calculate on a saving of some fifteen thousand rupees under this head, but the graph so of amount of saving will entirely depend on the decision which may be finally arrived at Rs. 15,000. with regard to these offices.

12. The small reduction of two thousand rupees in respect of the staff of mes- Western Pro- sengers, &c., in the Western Province, having already appeared on the estimates, cannot be again included in the calculation of possible savings.

vince, pages 3,

4,

of print, paragraphs 30, 31, of Des- patch. Rs. 2,000.

Agency of

The proposal to abolish the assistant agency of Negombo would involve, as I gather Assistant from the papers on the subject, great inconvenience to the residents in one of the most Negombo. populous districts of the island, and a loss to the revenue exceeding the amount which would be saved by the abolition.

I therefore concur with Sir J. Longden in thinking that retrenchment in this direction would be very inexpedient.

The question of giving further office assistance to the Government Agent is dealt with in separate correspondence relating to the offices of the Treasurer and Collector of Customs; my opinion is that instead of being given additional help, the Government agent should be relieved of the extra work which he has been called upon to perform as Chairman of the Municipal Council.

and North

13. The objections urged to the withdrawal of the assistant agent from Negombo North Western seem to me to apply also to the proposed partition of the North Central Province Central Pro- between the North Western and Eastern Provinces.

"

vinces.

Page 4 of

I have noted that in supporting the change, Sir J. Longden has stated that "there print, para-

Dospatch. is no reason for supposing that any native interests will be imperilled by it in the graph 33 of slightest degree," and I have given full consideration to his opinion and to the fact that the whole Committee, with the exception of Mr. Dickson, have reported in favour of the abolition of the province.

Still, the economy to be effected is comparatively small, and I have already stated that in my view it would be better to impose some slight additional taxation than to carry out reductions, which may possibly check such progress as Mr. Dickson shows to Paragraphs have been made in the province lately under his charge.

It is true that the province is thinly populated; but I am inclined to think that a large area inhabited by a scattered country population especially requires the presence in its centre of a high officer responsible only to the Central Government, and that the interests both of the natives and of the revenue would be likely to suffer by abolishing the Govern- nient Agency at Anuradhapura and entrusting that station to an officer of lower position and smaller experience.

17-8-9, 40, of print.

Of the thirteen thousand rupees scheduled for saving under the North Western and Rs. 13,000. North Central Provinces, four thousand eight hundred rupees are on account of the M

As Sir J. Longden takes Kalpitiya and abolition of the police magistrate of Kalpitiya and Puttalam.

Magistrate of

Pattalam,

pagos 4 and 8

Paragraph 44.

no objection to this step, it can be carried out, although I notice that Mr. Rama Nathan opposes it in the second paragraph of his memorandum. It is stated in the Governor's of print. Despatch that the duties of this officer will be handed over to the Assistant Agent at Puttalam, whereas, according to the report of the Committee, his magisterial work at Kalpitiya will be undertaken by the District Judge of the somewhat distant station of Chilaw; in any case the arrangement bas, I presume, received due consideration.

Maranlia.

I agree with the Governor, that, if possible, the court, which is held at Maranila Police Court of by the District Judge of Chilaw, should not be given up.

Southern

of Despatch.

14. The proposal to reduce the pay of the Government Agent' of the Southern Government Province from sixteen thousand eight hundred rupees to fourteen thousand four hundred

Paragraph 5 of rupees, can be carried out upon a vacancy. It had occurred to me, that a similar saving Province. might more advantageously have been effected by placing the pay both of the Northern print. and Southern Agencies at sixteen thousand rupees, inasmuch as Jaffna would seem to be Paragraph 18 much on a par with Galle, whereas the pay of the former agency is at present equal to R. 16,800. that drawn by the Government Agents of the more important Western and Central R. 14.400. provinces. I understand, however, that it is thought well to retain the pay of the Government Agents of the Northern Province at its present sum, as he holds à peculiarly independent position on account of the distance of Jaffna from the centre of Govern- ment, and also because he must be considered the chief officer of the Tamil population.

15. I agree with Sir J. Longlen that it would be unwise to reduce the District Eastern Pro- Judgeship of Batticaloa from the second to the third class of the service, or to transfer rice, pages of

A 4

Rs. 16,000.

print.

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