202 THE EXECUTIVE GOVERNMENT [parr II 
ditions of the public finances, it will be impossible for him, in 
the interests of the State, to continue to recommend the 
abolition of a substantial part of the income tax, although 
some modification of its incidence is, in his opinion, desirable. 
He also is of opinion that additional taxation is necessary. 
Supplies have been granted for the period up to the 30th 
September next. 
The public business of the country is at a standstill, there 
is a growing deficit and a decreasing revenue, and it is im- 
perative that without unnecessary delay measures should be 
adopted by Parliament for adjusting the finances. In these 
circumstances the Acting Governor is advised to grant a 
dissolution. 
The prerogative power of dissolving Parliament ought not 
to be exercised except for the benefit of the people. A 
dissolution is an appeal by Ministers to the people in the 
last resort to determine some question of policy, and in almost 
every case in which it is granted it is preceded by some 
adverse vote of the popular Chamber. In the present case 
there has been no adverse vote. Is there any question of 
policy on which Ministers can appeal 2 When the Govern- 
ment took office its policy was to repeal the personal exertion 
clauses of the income tax, but altered conditions have made 
that policy inexpedient, if not impossible, and Ministers can 
no longer pursue it. This brings Ministers substantially 
into accord with the view taken by the Legislative Council 
as regards the income tax, and presumably removes the 
difficulty created by the expressed intention of Ministers 
not to collect the tax. The Acting Governor thinks that this 
circumstance will go far to remove the difference of opinion 
between the two Houses as regards other taxation proposals, 
and will conduce to more harmonious relations. The finan- 
cial condition of the country itself appears to have solved 
one great difficulty, and it is obvious that as there is no 
difference on this question, there is nothing to appeal to the 
sountry upon. The proposal for constitutional reform of 
the Legislative Council has been made a definite issue by 
Ministers, but it does not appear to the Acting Governor to 
be the paramount and pressing question now. It is to a 
great extent factitious, and has arisen out of the rejection of 
financial measures. The adjustment of the finances is now 
the supreme question, and the Acting-Governor is of opinion 
that the people of the State would so regard it. The altered 
financial conditions appear to necessitate a reconsideration 
of the position, and the submitting of new financial proposals