No. 116

I have had the honor of receiving your Despatch No 60 of
the 30th December last, acknowledging receipt of certain
of my Despatches, and favoring me with a few observations thereon.

2. The highly gratifying manner in which you are pleased
to express to me your own approval of my course of action,
and in which you assure me of the sense entertained by Her
Majesty's Government of my humble endeavours faithfully to
discharge the trust reposed in me, is most acceptable and pleasing.

3. My subsequent Despatches will have put you in possession
of the information which you express your anxiety to receive,
upon the subject of the resources of the Colony, and the
probable revenue to be derived during the present year.

4. I feel much indebted to you for your remarks in regard
to the duty imposed upon imported Articles, and in respect
to the amount of the duty itself. In all financial matters
I have borne the axiom in mind that a true policy of all
Nations is to be found in unrestricted industry, and that a
system of high duties will lead to fraudulent Invoices, to
smuggling, and to other attempts to defraud the Revenue.
I conceived that those evils would be inseparable from an
extravagant rate of duty, and that smuggling, especially,
would be created if the duties exceeded the risk and expense
of illicit intercourse, but in adopting a duty of 10 per
Cent ad valorem, I believed I was not departing from these
principles, for I did not consider that such an amount
would bear too heavily upon industry nor that it would furnish
sufficient inducements for smuggling, except, perhaps in the
single article of spirits, which might be surreptitiously
introduced by the overland route from the American Frontier.
However, under the Proclamation of the 3rd of December
*

last (Copy transmitted in my Despatch of the 4th December
No 42) there is a considerable modification of the duties
upon imports, many Articles being free, and others at a low
specific rate, so that the general ad valorem duty is dispensed
with, and I am led to believe that upon the average a very
large reduction is made upon the 10 per Cent rate.