I have had the honor of receiving your Despatch N 60 of
               the 30 December last, acknowledging receipt of certain
               of my Despatches, and favoring me with a few observations thereon.
               
            
            
               The
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
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
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
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 
3 of December
               
               
               
                  
                     
                     Approved by desp 19 March /59.
                     
                  
                
               
               last (Copy transmitted in my Despatch of the 
4 December
               N 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
to believe that upon the average a very
               large reduction is made upon the 10 per Cent rate.