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of other circumstances, His Excellency is satisfied that there is no such risk of further misappropriations of public moneys in the Treasury, during the time that will be required for enquiring into and settling your case, as to necessitate your interdiction from office.

4. The Governor has next considered whether steps should be taken under the Colonial Regulations with a view to your suspension from office. On this point His Excellency has decided to lay the matter before the Secretary of State, and I am to request you to be so good as to furnish me at your early convenience with any explanation or statement that you may wish to be considered by the Secretary of State. The nature and bearing of the case, so far as it affects you, are sufficiently indicated in the Report of the Commission, and the Evidence attached to it, and the second paragraph of this letter; but I may briefly summarise them by stating that what requires explanation on your part is your failure to discharge the ordinary and primary duty of your office as Treasurer in taking steps to secure the immediate placing to the credit of the Government of all the Govern- ment moneys that reached your Office.

I have the honour to be,

Sir,

Your most obedient servant,

The Honourable N. G. MITCHELL-INNES,

Colonial Treasurer,

&c.,

&c.,

&c.

G. T. M. O'BRIEN, Colonial Secretary.

SIR,

(Mr. N. G. Mitchell-Innes to Colonial Secretary.)

TREASURY, 22nd April, 1893.

I have the honour to acknowledge receipt of your letter-Confidential of 11th instant-stating that His Excellency learns from the Report of the Commission on the Treasury and the Evidence recorded by them that, owing to neglect of duty on my part in not ensuring that the revenue which reached my Office was all placed to credit of Government, misappropriation of public moneys in the Treasury continued on a large scale during my tenure of office.

2. All moneys shewn in the daily collection book as received for Crown rent have, as a matter of fact, been placed to credit of Government, and the only means (other than the balancing of the Rent Roll) by which I could (as now appears) have discovered that these moneys did not represent the full amount actually paid in, was by checking each receipt into the Rent Roll. Apart from the fact that such checking of receipts has always been regarded as the duty of the Auditor and not of the Treasurer, reference to my letter No. 12 of 22nd March, 1892, (C. S. O. 728/92) will shew that more than a year ago I clearly stated what work the Treasury was actually performing, and pointed out that the systematic checking of receipts could not be properly performed by the Treasury with the existing Staff. To that position no exception has, so far as I am aware, been since taken.

3. I am therefore unable to concur in the statement that the misappropriation of public funds has been due to neglect on my part in this particular, nor, I may observe, has the Commission reported that such is the case except as connected with the non-balancing of the 1890 Rent Roll.

4. For my failure to appreciate on taking up office the necessity of having my predecessor's Rent Roll promptly balanced, and for the deplorable results of such failure, I beg to express again to His Excellency, as I have expressed before, my most sincere regret.

I have the honour to be,

Sir,

Your obedient servant,

The Honourable G. T. M. O'BRIEN, C. M.G.,

&c.,

Colonial Secretary, &c.,

&c

N. G. MITCHELL-INNES,

Treasurer.