CO129-534-6 Loans for public works 24-2-1931 - 11-8-1932 — Page 5

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leaving the estimated deficit for the year

$1,912,800. We must contemplate the

possibility of the deficit being much larger

in view of the optimistic nature of their

original estimates and the aoubt as to the unspecified saving of $1,000,000 on "certain

works".

That is a sufficiently gloomy and

serious position and it is not to be relieved

by some of the surprising statements made in

this uespatch and enclosure. In the first

place on page 10 of the enclosure, it is

stated "The Colony's surplus on 1st Jamary

1931 was approximately $8,500,000, so that

unless there are exceptional and unexpected

calls, the year 1931 should finish with a

surplus over $6,000,000". A glance at the

estimates show that the estimated surplus

on 1st January, 1931 was $5,425,352 and not

$8,500,000 as now stated. It seems incredible

that the year 1930 should have ended with

a deficit of only $1,100,000 instead of the

$4,237,500 which was the revised estimate.

There is a still more surprising statement

in paragraph 3 of this despatch, that "since

other

there remains taxable resources which

should amply suffice for the balancing of

the annual Budget, it is propose to hold back

the imposition of an addition to the Assessment

until such time as a further Loan is approved

and further funds are required for its service."

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