Sir Julian Pauncefote to Mr. Gresham.

Sir: In accordance with instructions which I have received from the Earl of Rosebery, I have the honor to inclose a copy of a dispatch addressed to his lordship by Her Majesty’s consul at Apia, reporting on the collection of native taxes in the Navigators Islands.

I have, etc.,

Julian Pauncefote.
[Inclosure.]
No. 57.]

My Lord: I have the honor to report that in pursuance of the information the consuls had obtained that a considerable portion of the native taxes were already in the hands of the native collectors, as reported in my No. 33 of the 11th July, in concert with my colleagues acting as receiver and custodian of the revenues, I summoned the native tax collectors of this island of Upolu to a meeting which took place on the 4th September.

Nine out of the fifteen collectors attended, and others arrived too late for the meeting.

We found an utter want of system, and that our work was rendered difficult owing to there being no census of the native population.

We had previously had a meeting with the King and Government, and at its conclusion we asked the King to assist us in our interview with the tax collectors, but [Page 610] he expressed so much disinclination that we saw at once our meeting with the tax collectors was not intended to be successful.

On our part it was a game of bounce and we determined to play it out. We took each collector separately, which prevented any successful combined action by the tax-collectors, and we praised lists well prepared and sternly refused lists that showed signs of carelessness or worse. We spent a whole day patiently going through the lists.

We consuls then made the King order the native tax to be paid in before the 1st October, and we arranged a meeting with all the tax collectors for the 3d October, on which day the result of our work was very evident: Eight thousand dollars were paid in and the lists and returns were infinitely improved.

We expect to get in about $8,000 more this month. We ought to get a still further $14,000, but there is no likelihood of our doing so.

There was at this time a serious dearth of ready money among the traders, and it was important to release as soon as possible the bulk of the money paid in by the Samoans.

The consuls were unanimous in deciding to pay off the debentures issued by Baron Senfft von Pilsach, as reported in my No. 40 of the 28th July, as they had all been issued for salaries, and as we should, still have sufficient in hand to carry the Government on until the next taxes could be collected.

The debentures are accordingly now being redeemed daily.

I am pleased to be able to report this improvement in the financial position and credit of the Samoan Government, which has also improved the position of the municipal council, any contribution this year to the Government being now avoided.

It should be noted that while the whole of this money was paid in by the Samoans in British coin at 4s. to the dollar, it has to be paid out at 4s. 2d. to the dollar under the other rate of exchange.

I have, etc.,

T. B. Cusack-Smith.