GREAT BRITAIN.                          
    525

be willing or able to sacrifice their time for the public good, and the choice
of a rep-
resentative of the planting community would probably fall on a merchant or
other
resident of Levwka, who wonld be rather a delegateor advoexte for the district
which
he represented than a representative of the general requirements of the country.
  Q. 4. How, if at all, would the natives be represented in the legislature
?-A. It
would be advisable to give the native chiefs a strong representation in the
govern-
ment, to the extent of equal, or nearly equal, numbers with the white unofficial
mem-
bers in the legislative council. Their good-will would thus be gained, and
the govern-
ment would be fortified by their knowledge of their districts.
   Q. 6. What would be the probable expenses of the government ?-In the appendix
we give a sketch of the government and its expenses, which should suffice
to begin
with, leaving the improvements and enlargement of departments to follow on
an in-
crease of population. An estimate of the revenue and expenditure of the present
gov-
ernment is also appended.
  Q. 7. What is the actual revenue now levied by the existing government?
What
  are the sources from which it is derived? To what extent and in what manner
can
it be increased, and what amount of revenue can reasonably be calculated
upon as
permanent?--A. In appendix (Nos. 14 and 15) we give the actual revenue and
expend-
iture of the government up to 31st December, 1873, distinguishing the sources
from
which the revenue is derived; but it must be remembered that this has changed
con-
tinually, and that the "native taxes' have always disappointed the government.
  The customs duties may be increased from 71 per cent. ad ralorem on certain
articles
  to 10 per cent., and the following spirits from 6s. 6d. to 12s. a gallon;
wine, from 4s. to
  6s. a gallon; tobacco, from 25 per cent. ad valorem to 50 per cent.
  We think that a small tax on uncultivated land should be re-imposed, after
a survey
  has been made, and that the tax on cultivated land should be a local tax
for the
  support of roads, bridges, piers, and wharves within the province where
collected.
  Both these have been lately taken off.
  Q. 8. In what hands is the control over the revenue and expenditure to
be lodged;
  especially how far such control, in aiy circumstances, be exercised froin
this country ?--
  A. The control of such revenue and expenditure would be lodged in the hands
of the
  governor in council, subject to the ultimate approval of the secretary
of state; and it
  would only be necessary that control should be exerted by the secretary
of state in
  cases of the contraction of a fresh loan or the undertaking of operations,
public works,
  &c., which would necessitate a loan and a large expenditure.
  Henceforth Fiji will probably be at a distance of forty days from England
by mail,
  a lapse of time which would not seriously interfere with obtaining the
authority of
  the secretary of state.
  27. We append a statement of the whole indebtedness or liability of the
country.
  We have informed the white residents of the amount, and they have declared
to us,
  more or less formally at different places, their willingness to acknowledge
their respon-
  sibility for it, as well as for the expenses of a future government.
  28. We have been so fortunate as to obtain the assistance of two gentlemen,
namely,
  Mr. Carl L. Sahl, a gentleman connected with mercantile firms in Sydney,
and Mr.
  Thomas Horton, manager of the Fiji Bank, in the investigation of the accounts,
and
  they have given us.a report, which we inclose.
  29. The -greater part of the debt, in fact almost all, has been contracted
for the pur-
  poses of the white settlers, and the portion which alone can be set to
the account of
  natives has been used far more for the benefit of the native chiefs (and
principally
  Ca kobau) than for that of the actual people. The guarantees for the debt
in general
  are laid upon the revenues of the country, the public lands of the country,
and the
  private lands of the King; and we consider that the contribution of such
lands, on
  the part of Cakobau and others, would be a sufficient share of the guarantee
to fall on
  the natives. They contribute also to the revenue by their labor.
  30. The extent of public land is, as will be seen, very small, and the
chief security
for one portion of tlle debt is what has been called the private lands of
the King, but
which are not strictly private. King Cakobau has rights of seignory over
them, and
is'powerful enough to be able to remove and satisfy the population, but it
is not
more than a powerful lord of the manor. It would neither be just nor wise
to allow
the mortgagee to foreclose, but if the Crown could purchase any of them hereafter
by private Agreement it would be advantageous to do so.
   31. With regard to the validity of the engagements entered into with the
lenders of
 the money, as much as was borrowed by the issue of debentures was borrowed
in due
 and legal form under an act of legislature. The debt to the Fiji Bank was
incurred
 when that bank took up treasury notes. The whole of the charter to that
bank is
 nmatter for dispute, inasmuch as there was no power to grant it, and also
that the pre-
 "amble gives as reasons for the illegal power. exerted, that which
is not fact, however
 much the framers of that preamble may have believed it to be so. Still we
think that
 the advantages offered to and taken by the Fiji Banking Company were not
so excess-
 ive as to' invalidate, morally, its claim to confirmation, save and except
the exclusive