7. The trade in elephants is undoubtedly the most important, as the rest does not amount to much more than Rds. 7,000 to 9,000 a year. During the year 1695-1696 the whole of the sale amounted to Fl. 33,261.5, including a profit of Fl. 15,137.9.11. We find it stated in the annexed Memoir that the merchants spoilt their own market by bidding against each other at the public auctions, but whether this was really the case we will not discuss here. I positively disapprove of the complicated and impractical way in which this trade has been carried on for some years, and which was opposed to the interests of the Company. I therefore considered it necessary to institute the public auctions, by which, compared with the former method, the Company has already gained a considerable amount; which is, however, no more than what it was entitled to, without it being of the least prejudice to the trade. I will not enlarge on this subject further, as all particulars relating to it and everything connected with it may be found in our considerations and speculations and in the decisions arrived at in accordance therewith, which are contained in the daily resolutions from July 24 to August 20 inclusive, a copy of which was left with Your Honours, and to which I refer you. As to the changed methods adopted this year, these are not to be altered by any one but Their Excellencies at Batavia, whose orders I will be obliged and pleased to receive. As a number of elephants was sold last year for the sum of Rds. 53,357, it was a pity that they could not all be transported at once, without a number of 126 being left behind on account of the northern winds. We have therefore started the sale a little earlier this year, and kept the vessels in readiness, so that all the animals may be easily transported during August next. On the 20th of this month all purchasers were, to their great satisfaction, ready to depart, and requested and obtained leave to do so. This year the Company sold at four different auctions the number of 86 elephants for the sum of Rds. 36,950, 16 animals being left unsold for want of cash among the purchasers, who are ready to depart with about 200 animals which they are at present engaged in putting on board. The practice of the early preparation of vessels and the holding of public auctions must be always observed, because it is a great loss to the merchants to have to stay over for a whole year, while the Company also suffers thereby, because in the meantime the animals do not change masters. It is due to this reason and to the want of ready cash that this year 16 animals were left unsold. In future it must be a regular practice in Ceylon to have all the elephants that are to be sold brought to these Provinces before July 1, so that all preparations may be made to hold the auctions about the middle of July, or, if the merchants do not arrive so soon, on August 1. Meanwhile all the required vessels must be got ready, so that no animals need be