Moreover, by referring to Sir Peter Scratchley's memorandum of 1st April, 1885, forwarded to the Governments of the Australasian colonies, it will be seen that he divided expenditure into three heads—(a) Capital, or first cost, to be raised as a loan; (b) Estimated expenditure for the first year; (c) Annual expenditure for years subsequent. Had he lived to have carried out this classification, which was approved of by the Colonial Governments, many of the items—such as building of house, &c.,—which, under the Auditor-General's Report, appear as annual expenditure, would have been charged to a loan or first cost account. In no way can the expenditure of the year from January, 1885, to January, 1886, be taken as the basis for future expenditure. The work done by Sir Peter Scratchley was preparatory and tentative. He states—"I consider that my duty is to examine and report upon the country for the information of the Imperial Government."
If any systematic administration of the country be attempted, the machinery of government will have to be increased, thereby involving increased expenditure both in—(a) Capital, or first cost; (b) In salaries of Government officers. The principal items under (a), or first cost, will be the building of the houses for the Sub-Commissioners along the coast, providing accommodation for native police, providing whale-boats, &c. The increased expenditure under Schedule B will be the salaries of the Sub-Commissioners and native police, the establishment of a regular mail service, &c. It can, however, be reasonably anticipated that the increased expenditure for administration will index a proportionate increased development of natural sources of revenue.
It has been confidently anticipated by those who have seen the fertility of the Protected Territory, and its capacity for producing articles of tropical growth, that it will ere long become self-supporting. Although in its present condition this, perhaps, would hardly be possible, yet the following methods of raising a revenue to defray local expenditure might be found practical and economical:—
(2) License fees for the erection of smoke huts and copra stations.
(3.) Export duties on cedar and malava, at a fixed rate for so many 100 superficial feet of timber; ad valorem duties on sandal woods and black woods. With reference to this last duty, I may mention that one timber trader alone, if he had paid on his privileges according to Queensland timber dues, would owe the Government about £2,000. The Customs officers at Cooktown and Townsville