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 £62,735 15s. 11d. The expenditure has risen in 1898 to £192,760, which gives an excess of £130,025. The total cost of the staff in 1888 was £15,932, while the present cost amounts to £41,604, which is an increase of £25,672. This increase, apart from the augmentation in the Governor's salary, is mainly in respect to the following departments:— Secretariat, Harbour Department, Constabulary and Police, and the Public Works Department. The cost of working the secretariat has been increased by £1,074, due to the following additional officers:—Two assistant colonial secretaries, a chief clerk, and a first clerk. It is well known that in 1888, when the department cost the colony about one-half its present expenses as regards the European staff, the work was performed with efficiency and despatch; while at present it is not only difficult to get business got through, but, what is more, if the business is not followed up with watchful care, it will become lost in the super-abundance of assistants and clerks who crowd the department, and the practical expression of whose work is more discernible on the public revenue than anything else." The Lagos Record goes on to say, "There is room for retrenchment in the matter of expenditure on account of the European official staff." I do not follow it here. It is room for retrenchment in mere routine workers, black and white, that is wanted, and the liberation of the Europeans to do work worth their risking their lives in West Africa for. The percentage of black officials, mainly clerks—excellent and faithful to their duties—is increasing in all our colonies there too rapidly; and the existence of poorly paid but numerous posts under Government with a certain amount of prestige, is a dangerous allurement to