No. 64

I have had the honor to receive Your despatch No. 4 of the
30th July last conveying Her Majesty's sanction to the Supply
Ordinances Nos 4 and 11 of 1866, and forwarding a copy of a letter
 from the Lords Commissoners of the Treasury having general
reference to the Colonial Expenditure.

2. The Lords of the Treasury desire to be furnished with an
explanation of the large difference between the estimated expenditure
under the head of Administration of Justice in the Estimates for
1866, as against the actual expenditure of 1864, and also as to
 the discrepancy in the amount voted under the head of Transport.

3. In reply I have the honor to state that the large expenditure
incurred during the year 1864 in the expeditions against the
Chilicoten Indians was partially brought to account in the
Supplementary Estimates of that year under the Head "Administration
of Justice." The cost to the Colony of maintaining a force of one
hundred and fifty Volunteers in the field for over three months
exceeded £20,000.

4. The amount appearing in the Estimates for the present year
is sufficient to cover the ordinary Expenditure incurred in the
Administration of Justice.

5. The discrepancy in the amount inserted in the Estimates
and that appropriated in the Ordinance under the Head of "Transport"
arises from the Vote for travelling Allowances having been reduced
in the Legislative Council by $1000, when the Estimates were
submitted for the consideration of the Legislature. The Council
were of opinion that the completion of the roads to the mining
districts justified a reduction under this head as against the
Estimates of previous years.

6. The financial Returns required by their Lordships were
transmitted in my despatch No. 50 of the 9th July last.