M Herbert
                     B. Columbia Estimates 1871.
                     
                     
                     Revenue 
1869 $528,494.
                     
                     " 
1870 Estimated 537,750.
                     
                     " " with later information 502,300.
                     
                     " 
1871 533,950.
                     
                     
 
                  
                  
                     Customs for 1870 were estimated at $350,000—but will only reach
                     $325,000 & are estimated for 1871 [at] $320,000. There are some
                     variations in other Items as shewn in the Auditor's Report—but
                     nothing calling for notice.
                     
                     Expenditure
                     
                  
                  
                     1869 $515,539.
                     
                  
                  
                     1870 Estimated 513,735.
                     
                  
                  
                     1871 " 522,135.
                     
                     
                  
                  
                     The result shews an Estimated surplus of Revenue ag
                     Expenditure of $11,814.
                     
 
                  
                  
                     As regards Items of Expenditure the chief variations are shewn
                     in the Auditors Report. I have nothing to add to the few
                     observations I have made in the margin of the Auditors Report.
                     There is however one Item not noticed
                     in the Report & new this year which may be questionable, $4500
                     subsidy to Union Telegraph to 
Portland,
                     
per annum.
                     The return of April shews a very small sum in hand as available.
                     
 
                  
                  
                     The Governor has attended to the instructions contained in 
Lord
                        Granvilles despatch of 
1 April 1870—2543—& the Estimates were
                     prepared before 
M Musgrave rec Lord Kimberley's despatch

 of
                     the 
16 Dec 1870—12325.
                     
 
                  
                  
                     But under present circumstances, that is with the new
                     Constitution & the coming Union with Canada I do not see that
                     we need do more than sanction the Appropriation Ordinance.