No. 2

1. My last report of the 31st of October, on the proceedings of
the House of Assembly closed with its adjournment to the 13th day of
November, when it again met and remained in session till 
the 18th of
December, it then adjourned for the Christmas recess.

2. The House has been so far chiefly occupied with matters of
detail, connected with the expenditure, and financial condition of the
Colony. I furnished every means of information in my power connected
with those subjects, as you will observe through my correspondence with
the House, which is herewith forwarded.

3. A Bill granting the sum of 130 Sterling, for paying the
Servants, and defraying the ordinary expenses of the House was passed on
the 18th day of December, and the same will be brought before 
the
Council at an early day.

4. I am now preparing a Bill for imposing a Customs duty on
Imports, as a means of meeting the ordinary expenses of Government; but
the subject must be approached with caution, as there is a very general
feeling in both Council and Assembly against taxation under any form,
and I am prepared to encounter much clamour and opposition in carrying
so unpopular a measure through the Houses.