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enabled to provide men to use them, and if assistance be given "by the loan of a few officers to organize it" a force may be raised sufficient for the protection of St. John's and Harbour Grace.

I have, &c. (Signed)

JOHN H. GLOVER.

Inclosure 1 in No. 131.

At a Meeting of the Executive Council at Government House, May 14, 1878.

THE Council have fully considered the despatch of the 20th April, 1878, from the Right Honourable the Colonial Minister to his Excellency the Governor, conveying a recommendation of the Colonial Defence Committee that, with a view to the defence of St. John's, two 7-ton rifled guns should be sent here, and inquiring if the local Govern- ment would be prepared to defray the cost of this armament and the necessary works, amounting to 3,2001.

The Council would express their grateful sense of the solicitude thus evinced by Her Majesty's Government for the protection of the interests of Her Majesty's subjects in Newfoundland, with their hope that in connection with this question the circumstances of the Colony may receive that degree of consideration which it appears to the Council they may claim.

In no part of the British dominions is there a population more inspired with loyal devotion to the Throne, or who would more cordially give their utmost aid to the defence of its possessions, than the people of this country. Their pecuniary ability, however, does not correspond to the strength of the feeling by which they are animated. The public revenue is now unequal to the constantly growing requirements of local institutions, and should our trade suffer interruption from any cause, a state of serious depression must necessarily ensue.

Recent exigencies have specially tended to produce the present condition of financial affairs.

Throughout the last six months there has been a continuous outlay for the relief of distress, occasioned by the total failure of last year's fishery in several parts of the island. This has amounted to a severe strain upon the only monetary resource available here, the Customs receipts. A very large expenditure has also been rendered necessary by the new organizations on the west coast, for which still further obligations will have to be redeemed during the current year. The effect of these undertakings alone is such that the Council cannot avoid a feeling of anxiety regarding the prospects of the Colony in view of its dependence upon the precarious industrial and commercial operations of the coming

season.

The Council, for these reasons, respectfully trust that Her Majesty's Government will appreciate their unwillingness to assume new burthens, and will deem it not unreasonable that the Colony should be provided with the proposed armaments and works from the Exchequer of the parent country.

(Signed)

E. D. SHEA, Clerk, Executive Council.

Inclosure 2 in No. 131.

Minute of Executive Council, May 16, 1878.

HIS Excellency the Governor stated to the Council his opinion as to the measures which should be taken for the defence of this Colony, especially of St. John's.

The Council were of opinion that, referring to their Minute of the 14th instant, they must reiterate the opinion there expressed as to the inability of the Government, in view of the financial condition of the Colony, to meet the demands incident to the organization and maintenance of an armed force.

At the same time the Council are of opinion that, upon a call being made, there would be a ready volunteering to aid any regular force which might be established here by the Imperial Government; and that it would be the duty of this Government to afford pecuniary aid to a limited extent, commensurate with the means at its disposal, towards supplying such volunteers with clothing.

(Signed)

E. D. SHEA, Clerk, Executive Council.

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