matters of common interest to Local Fund Boards and Municipalities, there should be a District Board at the Head-quarters of each District, composed of two delegates from each Taluq and Municipal Board, and of a certain number of persons nominated by Government. When the size of the Circles is reduced, it will often be found that the funds collected within one Circle are insufficient to defray its expenses of Local Administration without the aid of contributions from neighbouring Circles. An important trunk road might run on the outskirts of a rich Circle and through the heart of a poor one, while benefitting both equally; and if the duty of maintaining the road were entirely thrown on the poorer Circle, it might tax the resources of the Circle to such an extent as to leave little or nothing for improvements of a strictly local character. Oftentimes works may have to be undertaken which benefit a number of Circles, and the quota of expenditure payable by each will have to be equitably adjusted. Economy may dictate the expediency of one establishment for the supervision of Public works, &c., for several Circles in common. In the case of Municipalities, the tolls collected by them on through traffic will have to be equitably divided between them and the Local Fund Circles through which it passes. For these purposes and for general guidance of the Circle Boards, and to check any tendency on their part to degenerate into selfish cliques, the District Council seems to be very necessary, nay, indispensable. At the same time, to avoid centralization and to ensure localization of expenditure, the Association would provide that not less than 50 per cent of the funds collected within a Circle be spent solely for its benefit.

The Association thinks that the District Board should have the following powers over the Circle Boards:

(1.) To allot funds to the various Circles, subject to the provision that not less than 50 per cent of the collection made in each Circle shall be spent within the limits of that Circle.

(2.) To frame general rules for the execution of works, for conduct of business, and for the management of local institutions, such as schools, dispensaries, &c.

(3.) To revise the budget estimates of the Circle Boards and submit a consolidated budget for all the Circles within the District to the Presidency Local Fund Council, the constitution of which will be hereafter explained.

(4.) To sanction estimates of new works and repairs, subject, however, to the proviso, that when the estimated cost of the works is more than Rupees 5,000, the estimate should be submitted to the Chief Engineer for professional check and approval.

(5.) To transfer funds from one minor head in the budget to another minor head, provided the transfer is recommended by the Local Board.

(6.) To sanction the creation of any appointment, on a salary exceeding Rupees 15 proposed by the Circle Board.

(7.) To make appointments of the common officers of two or more Circle Boards or of the District Board itself.

(8.) To hear and decide appeals against the orders of the Circle Boards,

(9.) To hear and decide appeals against the decision of the Vice-Presidents.

(10.) To make special arrangements for the execution of works affecting the interests of a Circle or several Circles in common with their consent.

(11.) To arrange for the audit of accounts.

19. The Association considers that the powers of the District Board over Municipalities should be much less than those recommended above, as the chances of mismanagement are fewer in them than in Local Fund Circles. The Association at first thought that Municipalities might even remain entirely independent of the District Boards, but further reflection has induced it to alter this opinion. There are matters of common concern to Municipalities and Local Fund Boards, and it is necessary to have some authority for arbitrating between them; and the District Board, composed as it will be of the pick of men available, both official and non-official, must needs be the most

competent body for deciding in all cases of conflict of interests and for exercising a wholesome general supervision over all the Local affairs of the District, whether urban or rural.

The Association would therefore make Municipalities subordinate to the District Board in matters defined below:

(1.) No bye-laws proposed by Municipalities should be sanctioned by Government unless the same be recommended by the District Board,

(2.) Municipalities will submit annual budgets and reports to the District Board, which will forward the same to the Presidency Local Fund Council with its remarks.

(3.) No District Board will have power to modify the budget programme of the Municipalities, but will submit its objections for the consideration and decision. of the said Council.

(4.) District Boards will have power to sanction transfer of allotments from one minor head to another in the sanctioned budget on the application of the Municipalities concerned.

(5.) District Boards will have power to call for any reports, returns, or other information connected with Municipalities.

(6.) District Boards will have power to decide in all matters of common interest to Circle Boards and Municipalities, and determine the contributions to be made by the one to the other in respect of such matters.

20. Funds with which the Boards are to be entrusted and the purposes to which they are to be applied.-The Association is of opinion that no new taxes should for the present be imposed, as any such attempt is likely to prejudice the minds of the people against the proposed scheme of local selfgovernment and to neutralize the earnest efforts contemplated for the advance of the political education of the people. By and bye, when the people feel the need for adequately providing for local improvements, doubtless they would be less unwilling to be taxed for the purpose. The housetax, an unpopular species of taxation which is provided for in the Local Fund Act, but which has not till now been levied any where, may well be removed from the list of taxes to prevent its revival. The Government

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might well transfer to the management of Local Fund Boards and Municipalities cattle pounds and ferries, with, of course, the revenues derived from them. The duty of holding public exhibitions, cattle shows, and maintaining model farms and industrial schools, may be transferred to Local Boards on the condition, however, that the Government makes to the Boards grants sufficient to meet the expenditure connected therewith. It should be provided by law that the assignments so made in lieu of services transferred should, under no circumstances, be withdrawn. The Association observes that in 1871, when the Local Fund Act was introduced and certain services formerly maintained at the cost of the Imperial exchequer were transferred to Local Fund Boards, a grant-in-aid of 19 lacs was made to the Local Boards to meet the additional cost. The bulk of it was intended for the maintenance of what are called trunk roads, which had always been maintained from the Imperial exchequer. For the next four years, grants averaging 11 lacs of Rupees were made annually for this purpose, but in 1876-77 the grant was suddenly reduced to less than 2 lacs, and in subsequent years it has dwindled into almost nothing, and at present it consists of an assignment of about half a lac made for the purpose of maintaining the roads of Ootacamund.

The sudden withdrawal, at one stroke, of nearly 12 lacs of Rupees, amounting to nearly one-third of the local income, has crippled the resources of most of the Local Fund Circles to such an extent that, after meeting the fixed charges on account of the cost of the roads and establishments, little is left for doing anything in the way of substantial local improvements. The construction of local roads to connect the principal lines of communication, which was the chief object of the Local Fund Act, and which it was expected that the ryots would much appreciate, has been little attended to, and the complaint is general among the tax-payers that they have derived very little benefit for the thousands of Rupees they have contributed to Local Funds during the last dozen years. The maintenance of imperial lines of communication hardly comes within the scope of the Local Fund Act, and the Association would strongly urge the restoration

of the grant of 12 lacs of Rupees to the Local Funds of this Presidency. This would at once dispel the notion that local self-government is intended as a device to supplement Imperial revenues by throwing really Imperial expenditure upon Local Funds, and will convince the people that money raised by local taxation will not be spent on purposes other than strictly local. Suggestions have been made by some of the gentlemen whom the Association has consulted, that the management of Devastanums and the maintenance of Minor Irrigation works may be entrusted to Local Boards, but after full consideration, the Association has reluctantly come to the conclusion that, while these are duties which, if well performed, will popularize the Committees, they are not such as could well be entrusted at present to Local Fund Boards. The management of Devastanums is likely to engender sectarian feelings and animosities, and the duty of maintaining irrigation works is likely to be better performed by parties directly interested in their up-keep, i. e., the Government which derives the revenues, or the landholders who actually cultivate lands under them, than by a body elected by the people, of whom only a section have a direct or immediate interest in them. Of course the Association sees no objection to the Local Fund Engineers repairing the irrigation works selected by the Collector, if the requisite funds are placed at the disposal of the Boards, and a suitable payment in the shape of a percentage on the sum expended be made to them as contribution for services rendered; but it considers it objectionable that the maintenance of irrigation works should be made a charge upon the Local Funds with or without a fixed grant for the same.

21. The mode of conducting business.-The first point for consideration under this head is the appointment of the President and Vice-President of the Circle and District Boards, and of Municipalities. The Association is of opinion that the Presidents of Municipalities and the Vice-Presidents of Circle Boards as well as of Municipalities, should be elected by the Boards themselves. the Boards will be composed of influential men in society, they may be trusted to exercise their rights wisely. But in the case of District Boards, the Association thinks it

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