CO129-324 - Governor Nathan - 1904 [10-12] — Page 481

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more favourable to the Goverment than any I hoped for at the

time the Farmers' first request for a reduction of $70,000

per mensen threatened very serious embarassment to the finances

of the Colony. That it has been possible to come to this ar-

rangement is due to the firmness and tact with which the Colo-

nial Secretary, assisted by the Registrar-General, has conducted

the long, intricate and delicate negotiations with the Farmers

and if you approve of the action that has been taken I trust

you will authorise me to express to Mr. May and Mr. Brewin

your appreciation of the services they have rendered in the

matter.

13.

As regards the situation resulting from

the arrangement I do not look upon the loss of $30,000 during

the current year as making any serious difference in the

financial position of the Colony nor do I consider that it is

necessary at present to increase taxation in order to meet the

deficiency of 7180,000 on the Estimates for next year.

Those stimates were framed with caution.

Exchange for their purposes was taken at 1 s. 8 d. to the

dollar. Should it be maintained at 1 s. 10 d. (it is at pre-

sent considerably over that figure) the saving effected will

be at least $90,000. Moreover, since the Estimates were framed

I have decided to have a new valuation made of the more valuable

portions of the Colony for rating purposes, to come into

operation on the 1st. of July next. It is estimated that the

new valuation will give an increase of from $30,000 to $40,000

to the revenue during next year. The natural expansion of the

Colony and its revenue may I think he relied on to make up

the remaining $50,000 to $60,000.

14.