CO129-358 - Governor Sir Lugard - 1909 [10-11] — Page 181

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I share the view that the method of its incidence has

entirely failed to rive effect to the object which Mr. J.

Chamberlain had in view (as stated in his Despatch No. 337

1900 $

20764/00 of the 24th. October, 1900.

you/00

138037

when the contribution was

instituted, viz.:- that the contribution should fall less

heavily in years when the Colony was in financial difficult-

-les, and should rise in proportion to its prosperity.

The Estimates for the coming year,

which I am forwarding under separate Despatch, furnish a

somewhat striking instance of this. In round figures a

deficit of some 8 lakhs had to be faced and additional

taxation amounting to some 7 lakhs at least has been

inposed. As a consequence the Military Contribution

automatically increases by nearly one lakh

at a time when

the Colony is in greater financial difficulties then it

has experienced for many years.

3.

I have suggested in the attached

minute an alternative system, viz.:- that half the differ-

-ence between the Ordinary Revenue and Ordinary Expenditure

should be assigned to the Military Contribution with the

proviso that it should never be allowed to fall below one-

-quarter or exceed one-third of the actual Imperial Ex-

-penditure on Defence in the Colony. I am aware that there

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