566
You
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04.5.
rate would make a difference of about $40,000 on the whole estimate and recommended the safe rate of 1/8 which was approved by Mr. May. When the estimates had been prepared on this basis and were submitted to me at the beginning of September, the higher rate of exchange then obtaining did not appear a sufficient reason for delaying the submission of the estimates to the Council while rumours which arose about that time as to difficulties that were being met by the Opium farmer showed that any advantages that might be gained by estimating for too low a rate of exchange were likely to be more than counterbalanced by the Opium revenue that would be realised being considerably less than the figure of the contract which had to be embodied in the estimates.
3:
In the 13th paragraph of my despatch No.418 dated the 12th instant, I have pointed out how the caution adopted in the framing of the estimates will probably enable the Government to meet the fall in the Opium revenue due to the reduction that has been granted to the Farmers without inconvenience or change in financial policy. Had it not been for this caution it might have been necessary to recur to the precedent of 1893 when recourse had to be had to a Public Works loan to give relief to the finances of the Colony which were seriously affected by a lower rate of exchange obtaining than that on which the estimates had been based.
4.
I shall not however lose sight, in connection with future estimates, of the suggestions contained in the final sentence of your despatch under reply.
I have the honour to be,
Sir,
Your most obedient
Humble servant,
Me...nathan
Governor...
566
You
939
04.5.
rate would make a difference of about $40,000 on the whole esti- mate and recommended the safe rate of 1/8 which was approved by Mr. May. When the estimates had been prepared on this basis and were submitted to me at the beginning of September, the higher rate of exchange then obtaining did not appear a sufficient rea- son for delaying the submission of the estimates to the Council while rumours which arose about that time as to difficulties that were being met by the Úpium farmer showed that any advantagesthat might be gained by estimating for too low a rate of exchange were likely to be more than counterbalanced by the Opium revenue that would be realised being considerably less than the figure of the contract which had to be embodied in the estimates.
3:
In the 13th. paragraph of my despatch No.418
dated the 12th. instant, 1 have pointed out how the caution adopted in the framing of the estimates will probably enable the Government to meet the fall in the Opium revenue due to the re-. duction that has been granted to the Farmers without inconvenienc or change in financial policy. Had it not been for this caution it might have been necessary to recur to the precedent of 1893 when recourse had to be had to a Public Works loan to give relief to the finances of the Colony which were seriously affected by a lower rate of exchange obtaining than that on which the estimates
had been based.
4.
I shall not however lose sight, in connection with future estimates, of the suggestions contained in the final
sentence of your despatch under reply.
I have the honour to be,
Sir,
Your most obedient
Humble servant,
Me hathan
Governor c..
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