The fourth and last paper is signed Robert Stuart and Hamilton Ross, and is said to be on the part of the British Inhabitants. I do not hesitate to contradict the assertion that the British Inhabitants at the Cape ever did depute Robert Stuart or Hamilton Ross to convey their sentiments and particularly such as are stated in this paper. I would at once treat it as a forgery were it not for my knowledge of the persons whose names are attached, the former of whom was during the last war taken out of compassion by Mr. Pringle, the Agent for the East India Company, into his employment as a clerk in consequence of his being found on board a vessel accidentally stranded in Table Bay. The latter was formerly an officer in the King's service, but was obliged to leave the Corps in which he served, and is now living at the Cape, where he occasionally acts as Agent for Americans who arrive in the Settlement.

That the respectable part of the British Inhabitants should depute two such persons to represent their sentiments is not to be supposed.

LONDON, October 14th 1811.

(Signed)

CALEDON.

[Original.]

Letter from SIR JOHN CRADOCK to the EARL OF LIVERPOOL.

GOVERNMENT HOUSE, CAPE TOWN, October 15th 1811.

MY LORD, I have the honor to enter upon the consideration of Your Lordship's Dispatch No. 2, with its various enclosures from the Lords of the Committee of Council for Trade and Plantations, and to advert to the several points therein stated, as well as the limited information I can as yet possess will admit.

Such observations as their Lordships have made in approbation of the measures adopted by my predecessor the Earl of Caledon I shall pass over, and proceed only to those articles that are either recommended for execution, or upon which an opinion is desired before the issue of final orders.

1st. The Duty on Public Sales.

Mr. Fagel was appointed sole Vendue Master by Lord Castlereagh, and as the Business seems now well conducted, and the Bank arrangements have done away what appeared prejudicial to the Public Interests, another change would probably be more disadvantageous than otherwise.

2nd. The Land Revenue.

This is a subject of such extreme Importance to every Interest of the Colony and Government that I request permission to suspend for some time the communication of my opinion.

In the mean time I beg to assure Your Lordship that the subject is undergoing the deepest Investigation among the confidential servants of the Government, for its consideration involves great difficulties, from the complicated and defective tenures under which Dutch possessions are held, and the wish, in the cause of improvement, to introduce as far as may be practicable under existing circumstances some of the valuable institutions of England.

3rd. The Tythes.

This is a very extensive subject, and intimately connected with others that will make Parts of a general View for the Improvement of the Revenue. The Tythes, as their Lordships justly observe, have no Relation to any Dues to the Church, and are, in Fact, a Part of the Land Revenue, and cannot well be considered till that Subject is settled.

Formerly a Tenth was levied upon such Articles (for it is not a general Impost) as pay this Duty on passing the Barrier, and this continued for one year during the Administration of Sir George Yonge. Lt Gen Dundas altered the System, and placed it on the present Footing.

There can be no Doubt but the present Tariff ought to be revised and augmented in Proportion to the encreased Riches and Improvements of the Colony. This Arrangement will engage my

earliest attention.

4th. Proceeds of Grain.

I am led to believe that the Lords of the Committee are under some misapprehension with Regard to the Proceeds of the Grain Commission, it being, as I am informed, by no means a Profit upon Grain Sold.

The frequent Recurrence of Dry Seasons must render it adviseable to have a Depot of Grain here in Case of Accident, and a sum of Money was placed at the Disposal of certain Commissioners for that Purpose; but the High Price of Grain has hitherto prevented any Purchase being made. The Receipts in Question arose from the Sale of a Quantity of Rice brought from India to meet the Wants of the Colony; and it will not appear, when the Account is closed, that there has been any Advantage to Government from the Transaction, though it has been a very great Accommodation to the Public. The Rice was brought here in Return Transports, by which the Freight was saved, as they would otherwise have returned empty. It was ordered by Lt General Grey.

Independent of the apprehension from a dry Season, which might involve the numerous Inhabitants of this Town in the greatest Distress, it appears to be indispensable in a Military Point of View, as well as Civil, that a suitable Depot of Grain should never be neglected in Cape Town; for situated as this Place is (upon which the whole Fate of this Settlement would turn) when the Possession of two or three distant Passes in the Hands of an Enemy would reduce its Defenders to the greatest Difficulties not to be averted at that Crisis, it would be hazardous in the extreme to omit the Precaution of a Magazine; and I shall therefore think it my Duty to avail Myself of the present Prospect of a most abundant Harvest. It may also be added that unless Government, without the View of making any Profit by it, establish such a Check over interested Persons, the Grain of every Species is subject to any Imposition that may be attempted.

5th. The Wine License.

I take the Liberty to express my entire Concurrence in the general opinion of the Lords of the Council on this subject, and

VIII.

N

their Lordships' Recommendations shall be carried into effect as soon as it is practicable.

Unfortunately the License for retailing Wine on the present System was let last Month, previous to the Receipt of your Lordship's Dispatch, for the Year ending first September 1812, for Rix Dollars 101,400, which proves the Importance of this Branch of the Revenue; and however bad the System must be viewed from intrinsick Circumstances, It is very doubtful if any future Arrangements will augment the Profits. It must be remembered that Sir James Craig, under the Conviction of the Defects of the present Mode, altered it, but he was obliged to recur to the old System now in Force, the following year. As I am obliged to wait a Twelvemonth before any Alteration can take place, the Delay will give me the opportunity of considering the subject to the best advantage.

6th. The Rent of a Mill.

The Rent of this Mill is not received in kind, as their Lordships understand, but in Money, according to the Work which is performed.

7th. Customs.

It appears from the Minute of the Lords of Trade that the Instructions which the officers of the Customs act under have been submitted to the Commissioners of Customs, and are to be returned at a future Period, with their Remarks.

In obedience to the Recommendation of their Lordships, I have directed the Adoption of the Regulations upon the Duties Ad Valorem on Foreign Goods, &c., and a Proclamation, which is submitted, has been issued to that Effect, the Benefit of which to the Revenue, I think will be considerable, and is not liable to any local objection.

I have also consulted with the most experienced Persons in the Settlement upon the subject of a low Impost upon the Importation of British Goods, and I do not learn that It would be likely to check the Consumption in the Colony, and certainly It would very materially increase the Revenue. If therefore It is free from objection at Home, I shall receive with Satisfaction the Communication of your Lordship's Orders to this effect.

I have directed the statement of the Imports and Exports, with their Valuation, as required by their Lordships, to be made out, and hope to be able to transmit It by the present Dispatch.

With Respect to the Encrease of Expense in the Customs Department, I am informed It arose from the appointment of a Collector, Comptroller, and Searcher, with inferior officers in England. The Collector arrived in July 1807, the Comptroller in December 1807, the Searcher in July 1807, and the First brought Clerks with Him from England. The Dutch officers, who previously performed these Duties, had very small salaries, but, at the same time, took Fees, which are now credited to the Publick, and they had besides a per centage on the Receipt of the Customs.

It is with much Satisfaction that I can conclude these observations upon your Lordship's late financial Dispatch with an opinion much in Favor of the encreasing Improvements and Prosperity of this Colony, which might be carried to a great extent, were the Restrictions imposed by the East India Charter relaxed or modified. As they stand at present, It forms a lamentable view to behold the natural Advantages of this Station so entirely overthrown. I have etc.

(Signed) J. F. CRADOCK.

P.S. Since I concluded my Letter to your Lordship I learn from the Collector of the Customs that He has not been able to prepare the Statement of the Imports and Exports, with their Valuation, in Time for the present Dispatch.

[Original.]

Letter from SIR JOHN CRADOCK to the EARL OF LIVERPOOL. GOVERNMENT HOUSE, CAPE TOWN, October 18th 1811.

MY LORD, I take the earliest opportunity of submitting to your Lordship the necessity I have felt to enter upon some measures of more effectual operation against the ill-disposed of the Caffre Tribes contiguous to His Majesty's Territory in this