average of the amount of its Notes in circulation, and other Liabilities, at the termination of each week or month, during the period to which the Statement refers, and the average amount of Specie or other Assets that were available to meet the same. Copies of these Statements to be submitted to the Government of the Colony within which the Company may be established; and the Company to be prepared, if called upon, to verify such Statements by the production, as confidential documents, of the Weekly or Monthly Balance Sheets from which the same are compiled. And also to be prepared, upon requisition from the Lords of the Treasury, to furnish, in like manner, such further information respecting the state or proceedings of its Banking Establishments as their Lordships may see fit to call for. The Governor to be also empowered to verify the Statements of the Company of the amount of Specie held by them.

333. The Charter or Act of Incorporation may provide for an addition to the Capital of the Company within specified limits, with the sanction of the Lords of the Treasury; such additional Capital and the Shares and Subscriptions which may constitute the same, to be subject in every respect, from and after the date of the signification of such sanction, to conditions and regulations similar to those applying to the original Capital.

§ IV. Applications for Charters.

334. Applications for Charters of Incorporation of Joint Stock Companies engaged exclusively or chiefly in Colonial undertakings, whether made in this Country or in the Colonies, cannot be granted until the heads of the project shall have been submitted for the consideration of the Governor and his Executive Council.

335. The Governor will furnish the Secretary of State with a Report stating whether the undertaking is one which in his opinion it would be desirable to encourage, with a view to Colonial interests, especially as regards the Colony under his Government.

336. The Governor's Report will be taken into consideration by the Secretary of State and by the Board of Trade, or, in cases in which the application relates exclusively to Banking Companies, by the Board of Treasury.

337. Her Majesty's Government reserves to itself the power of deciding whether privileges, to he exercised under Charters granted for this Country, should be extended to Companies, approved by the Colonial Government, for Colonial undertakings.

338. The Imperial Act 18 & 19 Vict., c. 133, provides for the limitation of liability of Members of certain Joint Stock Companies.

See also Circular of 16th March, 1874, as to establishment of Agencies, and Circular of 18th August, 1875, by which it is directed that Laws relating to Banking undertakings and the circulation of Notes should contain a suspending clause.

CHAPTER XI.

§ I. Expenditure of Public Money in Colonies not possessing Representative Assemblies. 539. All disbursements of the public money are to be made by the Colonial Treasurer, under authority from the Officer administering the Government; and any Officer improperly authorizing or directing any expenditure contrary to the instructions which he may receive from Her Majesty's Government will himself be held personally responsible for the amount improperly authorized.

340. Salaries, Fixed Allowances, and Contingencies are to be classed under the head "Establishments;" and all other ordinary expenditure, and all extraordinary and special disbursements are to be classed under separate heads of Service in the Form prescribed in the Treasury Instructions issued to Governors. 340. All Salaries and other authorized Charges up to the end of each financial year should, as far as possible, be defrayed within the year. When the last day of a year happens to be a “dies non,” the payment of Salaries, &c., up to the close of the year could be made on the previous day.

341. The Governor is not authorized to make any addition to the Fixed Establishment of the Colony, or to make any different appropriation of the established salaries of any Public Department, either as regards the number of appointments or the rates of salary and emolument, without the previous sanction of Her Majesty's Government.

342. Should, however, any special circumstances occur which in the opinion of the Governor in Council may render addition or alteration necessary for the due carrying on of the public service. without waiting for such sanction he will cause such new or altered salary to be borne on a Schedule of Provisional or Supplementary Establishment, reporting the same to the Secretary of State.

343. Whenever the approval of Her Majesty's Government to any provisional appointment is received by the Governor, he must cause the same to be transferred to the Schedule of Fixed Establishment. 344. As a general rule, the Governor must not propose to the Council the execution of any new public work, or of extensive alterations and improvements in any existing building, &c., for which he has not obtained the previous sanction of Her Majesty's Government.

345. Whenever the Governor may apply to the Secretary of State for such authority, he must send with such application all the necessary plans, estimates, and specifications, according to which the projected work is to be carried into execution, together with an account of the cost to be incurred under specific heads of expenditure, and a report of the grounds on which the work is recommended.

346. When the sanction of Her Majesty's Government has been given, the Governor will lay before the Council, at their meeting, to take into consideration the General Estimates for the year next ensuing, the plans, estimates, and specifications of the proposed work, with any other information which he may consider necessary; and when the Council has voted the funds required for the work, the Governor may proceed with it, without waiting for further authority.

347. But should the Governor be of opinion that the work is urgently required, and that serious inconvenience might result from delaying it (after the sanction of Her Majesty's Government had been

obtained) until the period when the Annual Estimates are brought forward, he may propose to the Council a Supplemental Estimate for that purpose.

348. Special cases may arise of pressing emergency (more particularly in distant Colonies), in which it might not be practicable to obtain the previous sanction of Her Majesty's Government for a proposed work. In such cases the Governor will not fail to call for and to lay before the Council the necessary plans, estimates, and specifications according to which the work is to be carried into execution, and to report fully to Her Majesty's Government, by the earliest opportunity, on the absolute necessity of the expenditure which he may have incurred without their previous sanction.

349. In the case of public works of magnitude to be undertaken in any Colony, and to be defrayed by Parliamentary Grant, the following rules must be observed:

1. That as a preliminary step to any such work, a survey and estimate shall be made by an Officer acting under the orders of some responsible Department.

2. That on a first application for a vote of money, an estimate of the sum likely to be required for the whole work shall be laid before the House of Commons.

3. In cases in which such works may require more than one year for their completion, and where money is proposed to be voted on account, there shall be submitted to the House in each year, and before a further vote is proposed, a statement of the sums already voted, of the money actually expended up to the date of the last accounts, of all outstanding demands, and of the sum still wanting to complete the work; and any deviations from the original plan, or any contemplated addition to the magnitude or expense of the whole work, will be inserted in the estimate of the year. 4. No Department of the Government shall authorize any Officer to enter into contract for any work, beyond the limits of the annual grants of money, without the sanction of a Minute of the Lords of the Treasury, which will be laid before the House with as little delay as possible.

§ II. Colonial Estimates.

350. In the Colonies not possessing Representative Assemblies, the Governor should submit to the Council of his Government, before the expiration of the month of June, in each year, such an Estimate as he may think necessary of the whole expenditure, not already fixed under the sanction of Her Majesty's Government, which is intended to be charged upon the Colonial revenue for the year then next ensuing, and he should transmit to the Secretary of State by the earliest opportunity, the Ordinance providing for the service of that year.

351. When the annual Estimate shall have been passed by the Council, and the Ordinance confirmed by Her Majesty, the expenditure of the year must be held to be definitely limited and arranged. Should, however, any further disbursements on account of the service of that year be required which could not have been foreseen, the proper course will be for the Governor to submit to the Legislative Council a Supplementary Estimate of the expenditure so required.

352. The Governor should transmit with the Annual Estimates such full and sufficient information as to every expense of an unusual nature therein comprised as may be necessary to enable Her Majesty's Government to decide upon the propriety of the proposed expenditure, together with a table exhibiting the variations from the preceding year.

353. The Governor should, at the same time that he proposes to the Council the Estimate of the ensuing year's expenditure, submit to them the draft of any Ordinance which may be necessary to provide the ways and means by which the expenditure is to be met.

354. Superseded by Circular of 20th January, 1875.

355. The control of the Local Auditor over all Revenue and Receipts, extends to a comparison of Receipts with all Collectors' Books, and with Statements, Keturns, and other documents which may serve to establish that the sums received are those which ought to have been received; and, if not, to requiring a statement of the cause of each deficiency, and the measures taken for the recovery of any arrears.

356. The Local Auditor's examination should, therefore, include a reference to Tax Rolls and other records of Assessments, to periodical returns of licences, certified by the Colonial Secretary or other Officer empowered to direct the issue of the same; to similar Returns from the Magistrates, or other Law Officers, of all fines, forfeitures, &c.; to Lists, giving the names of any persons liable to be called upon for Tuition Fees, or other periodical payments to the Colonial Government; and, as to casual receipts, under the direction of the Governor, to half-yearly returns of Receivable Orders, issued by his authority in respect thereof.

357. Should any Return, Statement, or other Record, which may appear to the auditor necessary to substantiate the entries in the Receiver's Accounts, or to exhibit the amount of arrears, be wanting or defective, it will be the duty of the Auditor to call for the proper documents, or, if necessary, to make a representation on the subject to the Governor; and, should any difficulty arise as to the production of the same, a copy of such representation, and of any directions which may be given thereon, should be transmitted, with the Accounts sent home by the Auditor.

358. Detailed statements of the revenue and expenditure of the Colony should be annually published in the Colonial Gazette, immediately after the period when it is required that the Accounts of each year should be transmitted for audit; and in such publication, the funds, arising from the property or droits of the Crown, are to be stated separately from those which arise from taxes levied upon the inhabitants of the Colony

§ III. Treasury Bills.-Funds derived from Imperial Grants in Aid of Local Revenues.

359. It is to be observed that sums voted by Parliament in respect of any financial year are not intended to defray the charges which become due in that year, but to meet such charges only as shall actually come in course of payment within the year. It is desirable, however, that the charges becoming due in each year should, as far as practicable, be defrayed from the Votes for the same year. With this view it will be proper that all Salaries and other authorized charges up to the end of any financial year should be paid before the close of the year, unless there be some special reason to the contrary.

360. Bills for Salaries and Allowances must not be drawn for broken periods of Quarters, except in cases where the services of the Officer have commenced or ceased within the Quarter: and in such cases Certificates should be transmitted, showing the date from which and up to which the Salary or Allowance may be payable.

360a. Governors will not be at liberty, without special authority, to draw funds before the commencement of a financial year, on the credit of any proposed Parliamentary Vote for that year.

3606. All Bills on the credit of the Parliamentary Grants in aid should be drawn on the PaymasterGeneral. When the service is of an ordinary description, they should be drawn at ten days' sight; but in every case of an unusual character, they should be at thirty days' sight. They should bear a serial number for each financial year. Salary Bills should be in the form prescribed in Appendix 13 (p. 362), with the addition of this serial number. All other Bills should distinctly specify the service and the particular Parliamentary Grant in respect of which they are drawn; and whenever the service is of an unusual character the Bills should also show the date and description of the document conveying the authority for the expenditure.

360. In cases where Salaries, Allowances, or Pensions, chargeable to Imperial Funds, are paid by monthly payments of one-twelfth of the annual rates, such payments are to be treated as final settlements-i.e., payments in full-for the periods to which they relate; and in these cases the computation for a broken period of a month is to be made with reference to the number of days in such month; Thus-If a salary of £120 per annum is paid by equal monthly payments, falling due at the close of each calendar month, the monthly amount will be £10; and if payment has to be made for a broken period, say, to 15th January inclusive, the amount to be paid will be }; of £10.

In cases where Salaries, Allowances, or Pensions are paid by quarterly payments of one-fourth of the annual rates, the computation for a broken period of a quarter is to be made with reference to the number of days in that quarter;

Thus-If a salary of £120 per annum is paid by quarterly payments, falling due at the close of each calendar quarter, the quarterly amount will be £30; and if payment has to be made for a broken period, say, to 15th January inclusive, the amount to be paid will be 3 (in leap-year of £30.)

361. It is important that the Secretary of State should be furnished with an immediate and direct advice of every Bill that may be drawn on the credit of the Grants in aid; and this advice should be despatched at once so as to ensure, as far as possible, that it may reach this country as soon as the Bill itself. A duplicate of the advice should be sent by the first subsequent opportunity. It will no longer be necessary that separate advices should in these cases be sent to the Treasury or Paymaster-General. Salary Bills should be advised in the Form given in Appendix 13 (the serial number being added). The advice of other Bills should contain all the particulars given in the Bills themselves.

362. In all cases in which sums have been voted by Parliament for specified Salaries and Allowances, the Bills correctly drawn by a Governor for his own Salary, &c., or in favour of a subordinate Officer for that Officer's Salary, &c., will, if duly endorsed, be taken by the Comptroller and Auditor-General as sufficient final discharges; but where sums have been voted by Parliament, not for payment of Salary, but for particular Colonial services or, in terms still more comprehensive, in aid of Colonial Revenue, the Comptroller of Audit will require evidence of the proper application of the money. With this view it will, in such cases, be necessary that the advice of a Bill should be accompanied (or, if that would not be possible without delaying the advice, then followed immediately) by a Certificate, to be signed by the Colonial Treasurer, or other Officer acting in that capacity, and countersigned by the Governor himself, to the effect that the money had been carried to the credit of the Colonial Revenue. The same course should be adopted in the case of Advances from the Treasury Chest for other services than Salaries specified in the Parliamentary Votes. Copies of the Forms to be used for this purpose are given in Appendix 13a (p. 363). In the absence of these Certificates, the amounts of the Bills, or of the Advances from the Treasury Chests, will ordinarily be charged as Imprests against the Governor. 362a. In any cases in which money has been voted by Parliament for specially named Colonial Services, documentary evidence must be furnished that the money has been applied to the particular Service for which it was voted. On this point special instructions will be given to the Governors concerned. 363. When Salaries are specified in the Parliamentary Votes, Income Tax will be levied on them, under the General Rules laid down in Paragraphs 365 to 368 of the Regulations.

363a. When Salaries are not specified in the Parliamentary Grants, it is undesirable that Bills should be drawn for the actual Salaries of the Governor or other Čolonial Officers. The Secretary of State will, however, be prepared to consider any special circumstances under which a departure from this rule may be desired. It will be proper as a general practice that the Governor should draw for round sums as Imprests on account of the Parliamentary Grant in aid, which Imprests should, of course, be carried to the credit of the Colonial Revenue From that Revenue, Salaries not specified in the Parliamentary Grant should be paid without any deduction on account of the Imperial Income Tax.

364. Governors and other Officers whose Salaries are specified in the Parliamentary Votes, and who may elect to have their Salaries paid through the medium of Agents in this country, can continue so to do. In lieu, however, of the Life Certificates hitherto used, a formal order on the Paymaster-General must be obtained by the Agents from this Department. When Governors and Lieutenant-Governors or Administrators shall, in the first instance, have signified the mode in which their salary shall be drawn, it will be desirable that they should adhere to that mode.

365. All salaries and personal allowances and emoluments, and all pensions and superannuations, retired or compassionate allowances, paid from funds derived from the revenues of Great Britain, whether provided by special Parliamentary Grant or otherwise, are liable to the Income Tax unless the whole annual income of the recipient is less than 1007.* When the whole income is less than 2007.* a year, a deduction of 607.† is made, and the balance only taxed. It will therefore be the duty of the Governor on all occasions to make the proper deductions accordingly from the amount of the bills which he may have occasion in future to draw on the Paymaster-General, whether on his own account or for the

* Now £150 and £400 respectively.

† Now £120.-ED. C.O.L.

salaries or allowances of other persons; and he will convey an intimation to the same effect to any Officers or Functionaries within his Government, who may be authorised to draw bills on the PaymasterGeneral for any such payments.

366. In cases where total or partial exemption may be claimed from the Tax, an affidavit must be made by the claimants and transmitted with the bill, to the effect that his income, including that on account of which the bill is drawn, is in the first case less than 1007.* per annum, in the second case less than 2007.,* and such affidavits must have reference to the whole income of the party from whatever source derived; for, although emoluments derived from Colonial revenues or property are not taxable unless the recipients reside in Great Britain, they must be taken into account in considering a claim to exemption from the Tax, or any portion of it, on Income derived from this Country.

367. When bills are drawn on account of expenses or disbursements as well as for salaries and allowances, a statement of the proportion of the amount applicable to the latter must accompany them, and the proper deductions should be made from the salaries and allowances, unless exemption should be claimed, in which case affidavits ought to accompany the bills.

368. The Forms, to be filled up by persons claiming total or partial exemption from the tax, aro inserted in the Appendix. (These can be obtained from the Paymaster-General.)

§ IV. Expenses on account of Liberated Africans.-Mode of rendering the Accounts of Expenses incurred under the Provisions of the Acts for the Abolition of the Slave Trade.

369. The Collectors or chief Officers of the Customs in those Colonies where no other arrangement has been specially directed are to receive, protect, and provide for all such Natives of Africa as may be put in their charge from vessels condemned as prize.

370. The Collector or other Officer is authorized to enter into the requisite contracts, to be approved by the Officer administering the Government, for the maintenance of the Africans at a fixed rate per diem, and for defraying the cost of clothing, necessaries, and other contingencies. This mode of supporting the Africans is considered preferable to that of purchasing provisions in large quantities for their use. 371. The Collector or other Officer will bring in the abstracts of accounts of his expenses, to be passed before the Officer administering the Government in Council, every three months. A certificate, to be signed by the Officer administering the Government, is to be subjoined to the General Abstract of the Expenditure, stating that the detailed documents referred to in the abstract have been carefully inspected, and have been approved.

372. In those cases in which the Colony is dependent on a Superior Government, the Abstracts of Expenditure, when certified by the Officer in charge of the subordinate Government, are to be forwarded to the Governor-in-Chief for his inspection and approval previously to the amount being discharged. Upon the passing of each quarterly account by the Officer administering the Government in Council, and in the case of subordinate Governments upon the subsequent approval of the Governor-in-Chief being signified, the abstract will be returned to the Collector, in whose favour the Officer administering the Government will thereupon grant a Warrant on the Treasury Chest for the amount allowed. The Officer granting such warrant will forthwith transmit a notification and report thereof to the Lords of the Treasury, and will forward with such notification a copy of the account, in discharge of which the issue from the Chest has been authorized. Any neglect of these forms will be productive of embarrassment and delay.

373. Governors are strictly enjoined to abstain from drawing for and issuing for this service any allowance or gratuity of which the propriety or legality may admit of a doubt, until they shall have communicated with and received instructions from Her Majesty's Government on the subject; and they are to limit the payments in the meantime to the amount of the actual outlay, for the maintenance and other unavoidable expenses.

374. If any sums shall have been issued, paid, or expended by their order, which ought not to have been so issued, paid, or expended, or ought not to be charged to the public, they will become personally responsible for the amount, under the provisions of the 1 & 2 Geo. 4, cap. 121, sec. 5.

375. With a due regard, therefore, to their own security, as well as the interests of the public, Governors must at all times exercise a watchful superintendence and control over the expenditure to which these Regulations refer, and enforce the strictest economy consistent with the welfare of the African and the good of the Service.

CHAPTER XII.

§ I. Trade and Navigation.

376. The Customs Establishments in all the Colonies are under the control and management of the several Colonial Governments, and the Colonial Legislatures are empowered to establish their own Customs Regulations and Rates of Duty.

877. The Imperial Act 16 & 17 Vict., c. 107, s. 324-5, provides for a freedom of navigation between the United Kingdom, or the British Possessions and Foreign Countries. But with a view of placing British Ships in Foreign Ports as nearly as possible on the same footing as Foreign Ships in British Ports, the Crown has the power, by Order in Council, of restricting the privileges of Foreign Ships, and of imposing additional Duties, in cases in which British Ships may be subject in any Foreign Country to Prohibitions or Restrictions from which the Ships of that Country are exempt, or in which any Preference whatever may be shown to National Vessels over British Vessels, or in which British Trade and Navigation is not placed by such Country upon as advantageous a footing as the Trade and Navigation of the most favoured Nation.

*Now £150 and £400 respectively.

378. The Crown has also the power, sect. 328, by Order in Council, on Address from the Legislature of any Colony, to regulate its Coasting Trade, and to authorize the conveyance of goods or passengers from one part of a British Possession to another in other than British Ships; or on receiving addresses or a joint address from two or more British Possessions, to place the trade between them on the footing of a Coasting Trade, and otherwise to regulate the same.

379. Under sec. 31 of the Merchant Shipping Act, 1854, the Governor is intrusted with the powers which, in respect to the Registry of Ships or of any interest therein, are vested by the Act in the Commissioners of Customs in England. It is to the Governor, therefore, that the Registrars of Shipping are directed to look for instructions.

380. The Governor usually appoints the Collectors of Customs in the Colony to act as Registrars of Shipping and Superintendents of Mercantile Marine under the Merchant Shipping Acts, the duties of the Registrars and Superintendents being defined in the Instructions which are issued from time to time by the Board of Trade, with the sanction of the Secretary of State.

381. It being, however, important for statistical purposes that information respecting the Trade and Navigation of the Colony should be forwarded to the Home Government, the points enumerated in the following sections should have the Governor's careful attention.

§ II. Shipping.

382. Particulars of the Registry, Mortgage, Sale, or Loss of Ships should be forwarded by Registrars of Shipping in the Colonies to the Chief Registrar of Shipping, Custom House, London, and of the changes in the appointments of Masters of Ships to the Registrar-General of Seamen, Adelaide Place, London Bridge, by the next mail after the transaction takes place.

383. The Registry of a Ship should be reported in the Customs Form 19, and the transactions subsequent to her Registry, such as her Sale, Mortgage, or other Dealings, in Customs Form 20. In these Forms the full address of each Owner should be given, and the letters M. O. marked against the name of the Managing Owner, if there are more Owners than one. The Certificate of all closed and cancelled Registries should be forwarded to the Chief Registrar of Shipping, with a memorandum thereon, stating the grounds of closing or cancelling the Register. When the Certificate of Registry is lost, a Form, No. 20, should be sent, giving the date and particulars of the closing the Registry, and the loss of the Certificate. The changes in the appointments of Masters which are endorsed on the Certificate of Registry, should be reported to the Registrar-General of Seamen in Form 21, or by letter.

384. At the end of each year the Registrar of Shipping should prepare and transmit to the Chief Registrar of Shipping, Custom House, London, an Account made up to 31st December, showing:—

(a.) The Names, &c., of all Ships on the Register Books of the Port on the previous 1st January. (b.) The Names, &c., of all Ships registered at the Port during the year,

distinguishing those Vessels in the List which have been lost, sold to Foreigners, or transferred to other Ports. At the end of the List an Abstract should be given of the Number and Tonnage of Vessels belonging to the Port on 31st December. This List should be transmitted as early as possible in the month of January, and as these Returns are the foundation of Statistical information laid before Parlia ment, too much care cannot be exercised by Registrars in ensuring their accuracy.

§ III. Seamen.

385. The duties which Superintendents of Mercantile Marine are required to perform in respect to Merchant Seamen are detailed in their Instructions. The principal point which requires the attention of the Governor, is the necessity for the Home Government being furnished with the Board of Trade Return, CC 21, by each mail. This Return materially assists in tracing the whereabouts of Naval Volunteers who have left their Ships, it also enables the Home Government to obtain from Shipowners repayment of expenses incurred in relieving Seamen who have been left behind sick, and payment of the Wages of Crews where Ships are lost with all papers.

§ IV. Lighthouses, &c.

386. Notice of any new Lighthouses, Buoys, or Beacons placed or erected on the shores of the British Possessions abroad, and of any alterations in those already existing, should be forwarded as early as possible by the Governor through the Secretary of State, in a Memorandum addressed to the Board of Trade, who will communicate to the Admiralty for publication. A Form of Notice of a new Light, or alteration of a Light, is inserted in the Appendix (page 364).

387. Any new facts with regard to Navigation, such as the formation or discovery of new Reefs, Shoals, Currents, &c., should also be sent home as early as possible, in the same manner and for the same purpose.

SV. Wrecks.

388. For the purposes of the Wreck Abstract annually presented to Parliament, particulars of every casualty to Shipping on the shores of any British Possession abroad, or to any British Shipping at sea, concerning which information can be obtained, should be forwarded by the proper Colonial Officer to the Board of Trade, in Board of Trade Form Wr. I. (Colonial), at the earliest opportunity after the occurrence, and an Abstract of such casualties should if possible be forwarded to the Board of Trade at the end of every year.

*

Forms for the Return and the Abstract will be supplied on application to the Board of Trade.*

CHAPTER XIII.

(389-401 cancelled by Circular of 15th December, 1888.)

* Form no longer in use (ED. C. O. LIST).