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his Memorandum. As regards the action taken by the Government
for which I am responsible, I would desire to correct a mis-
-apprehension which as it seems to me is present to Commander
Taylor's mind. He complains that he has been "condemned un-
-heard and apparently regards his liability as in the nature
of a fine for neglect. Apart from the fact (as shewn by the
Memorandum enclosed) that Commander Taylor was notified of and
himself recognised his liability and that no record can be
found of the repeated enquiries which he states that he made
the fact appears to have escaped his notice that under
Financial Regulations the Head of a Department is charged with
responsibility for the safety of Public monies in his care,
the loss of which has to be made good by him unless the
Governor can certify that his responsibility has been fully
discharged. In the face of the evidence I found myself unable
to conscientiously give such a certificate, and the Executive
Council were unanimous that as Head of the Department he could
not be wholly exonerated. I was however able to recommend to
you that only a portion of the loss should fall upon Commander
Taylor. His opportunity for exculpating himself arises when
your decision is made known to him, and though it happens that
he is on leave and has not therefore access to official records
I
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