Mss Eur F699/1/1/1/13/74

Thanks Canning for his kind letter of 21 Nov. Expects Sir William Denison about 25 Jan. A letter has been sent to the Supreme Government on their interference with small details, the letter was drawn up with care and Morehead thinks it is a just and discreet one. The amount to be realised by the Income Tax is still unknown, but it will be more than expected. Sends a letter from an old Malabar settler, an Englishman, on the coast. Some of the Tax forms have been modified, as they have caused difficulties. The Revenue Board is preparing a set of modified forms for general use. Sends a letter from the Income Tax Commissioners. The Commander in Chief is annoyed at not being allowed to build expensive barracks, and is looking forward to his departure in Feb. The Commander in Chief expects to be succeeded by Sir Robert Napier. With two Engineers in Council, the Public Works Department should become the model for all India. The 'Benares Gazette' of the 8th is cheering, Morehead has had it printed in the Madras newspapers. Is glad that the Mysore Grant has been discussed in the Legislative Council, though embarrassing at first it must lead to good in the end. He cannot understand the proceedings of the Bombay Government in their Cavalry arrangements, as they have saved no money and may even spend more. He has not seen the Infantry plans yet. Such acts do not make the proceedings of the Madras Government more popular. Much has been done since new Military Auditor General was appointed. Wishes he could have a new Commissary General.

Endorsed: Extract made by order 1 Jan 1861.

Enclosed: 1. Printed letter from the Income Tax Commissioner to the Acting Secretary to Government Revenue Department, 15 Dec on the working of the Income Tax in Madras. Printed. 2. Order in Council on the above letter, 17 Dec. Printed. 3. Copy of letter from F C Brown to Mr Patrick Grant (a Collector) Anjara Kandy, 6 Dec 1860. Brown thanks Grant for noticing favourably the new road, and for encouraging the natives who helped in it. Comments on the printed schedules of the Income Tax. The first 2 papers were well received, but the 3rd was of such complexity as to cause great alarm.