The contention that advances to officials amounting to _L2,398,506 16s. 8d._ have remained unaccounted for is also absolutely incorrect; and the endeavour to pass this circumstance off as constituting defalcations on the part of officials bears ample witness to the strong desire to mislead which has actuated the informants of Her Majesty's Government. Any person who is even superficially acquainted with financial administration will readily admit that this is due to a system of accounting which was followed until recently by Her Majesty's Government, and which obtains in some British Colonies, in Natal, for instance, at the present moment. This system may deserve condemnation; it does not, however, necessarily follow that because the advances may not be speedily accounted for they have been embezzled, and it does not appear either from the report of the Inspector of Offices, or from the debates of the Volksraad, that such accusations were made. But in addition to this a sum of at least L1,968,306 is included in the aforesaid total of L2,398,506 16s. 8d. (but which is not comprised in the customary advances), such as Orphan Chamber L80,000, Indigent Burghers L150,000, Postal Orders L60,000, various loans to School Committees, Sanitary Boards, and for Waterworks, Hospitals, Committees, monies placed at interest in Europe, provisional loans to Railway Companies, purchases of food stuffs and mules in time of famine, and many others. Items, too, of considerable importance appear in the advances, although they have really been accounted for up to within a pound or two, because for one reason or another it has not been possible to write off the exact total, the amounts still to be accounted for having dwindled to a very insignificant figure. The contention that during 1896 a sum of L191,837 was paid out of the Secret Service Money is also absolutely unfounded, for in that amount a sum of L158,337 was included which was used for special Government Works, as was expressly stated in a foot-note on page 44 of the Estimates for 1897. The Secret Service Fund for that year (1896) did not amount to more than L33,500. This faulty information, supplied to Her Majesty's Government, is apparently taken from the said Estimates, it would seem with the fixed determination to ignore the explanatory foot-note on page 44. It is incorrect to state that the system of granting concessions remains in full force. Where the Right Hon. the Secretary of State in his despatch refers to industrial concessions, this Government may remark that these are privileges granted in order to stimulate and protect local industry, and the contention that these concessions will develop into practical monopolies is not supported by any evidence; results will show that misleading information has been given here as well.