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Rh future, I could wish to have the best information possible, so that such a system might be adopted for that purpose, particularly in the new and conquered Provinces, as would at the same time serve to promote the good of the Colonies, and lighten the burden which lies upon the mother-country.

Although the reduction of expense in America is a very necessary point, yet I must do the Treasury the justice to say, that they do not wish to retrench any expense which can contribute to the advantage of the country or the good of the service; on the contrary, the intention is that no expense shall be spared which is really useful, but that none shall be incurred which is not so. And indeed it is hardly possible that many articles of expense very necessary at the time, which the exigencies of the war required to be entered into without delay, should not now require reformation and admit of being retrenched. But this desirable point can only be effected by a thorough digest and judicious arrangement of the different departments in America. You cannot therefore be too full in giving your own thoughts upon these matters, nor in procuring the very best intelligence possible from your correspondents in all the Provinces to be transmitted to me from time to time also."

The despatch then proceeded to set out the advantages which would accrue from the establishment of the three proposed new Settlements by reducing the expenses incurred through the extensive cantonment of troops in the back Settlements; by intercepting illicit trade, and by preventing Indian incursions.

Very different from the views of Shelburne were those of Townshend. He had taken service with Chatham without adopting his policy. He regretted the repeal of the Stamp Act, he defended that Act in principle, and in practice, he insisted on the necessity of a colonial revenue; the military expenditure might be reduced, but the garrisons near the colonial towns ought to be kept up; taxes for this object should be imposed; the distinction between internal and external taxation was in his opinion ridiculous. Accordingly on the 26th of January, five days after his speech on the proposals of the East India Company, Townshend took the opportunity of