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Mexico are so favourable, that if they should be confirmed I think it only right that the Government should encourage the emigration thither which it is desired to conduct from Hongkong. If it is true, as I am informed, that Mexico will welcome all the free Chinese which can be sent there, I shall expect that in no long time the trade which will spring up with that rich country,-rich I mean in its soil and its minerals-will not only equal but surpass all that has been lost by the restrictive laws in the United States and Australia. But, however, this may be the correctness of the indication from tonnage that the volume of trade is increas- ing was signally confirmed only the other day, since I began the examination of this question, by the statistical report of the Chinese Customs for the last year (for a copy of which I am indebted to the kindness of Sir ROBERT HART and the local Commissioner). Though I have not had time as yet to examine care- fully all the figures, it suffices for my purpose to take the figures shewing the value of the general trade between China and Hongkong which are Taels 122,358,507 for 1888, Taels 118,046,381 in 1889 and Taels 125,844,901 for 1890. Thus the value of our trade with China actually increased last year by more than Taels 3,000,000 as compared with 1888 and by over Taels 7,000,000 (or about £1,750,000 sterling) as compared with 1889. As also indicating that the volume of trade is not decreasing I may mention that from a return furnished by the Registrar General, it appears that in the first three months of this year 174 Chinese shops were closed, and 236 opened shewing a favourable balance of 62, and though owing to my being unable to get the similar return for former years I do not count this balance as proof of increase, I think the figures at least suggest the probability that Chinese trade is not falling off.
Turning now to the matter of Bank deposits I see as little reason for alarm or despondency. Having requested information on the subject from the four British Banks in the Colony, the answers obtained from three of them shew that as regards them, there has been not a decrease but an increase of deposits to the extent of over $800,000. The only one of the four which returns a decrease, the amount of which is not stated, is the Bank under the management of the Honourable Member, who in replying to my letter as Manager reiterates his statement made as Member of Council in respect of the decrease of "millions of dollars," but in this instance limits it to Chinese Banks. Now on this matter of Chinese Banks I have made enquiries from high authorities Banking and others as well as from the Registrar General. The estimates thus received vary considerably in amount, but I am most inclined to that of Mr. WEI YUK, Compradore of the Chartered Mer- cantile Bank, not only because it is the result, I understand, of careful enquiries at each of the Banks referred to but because it represents a mean between the extreme estimates on either side. According to his calculation the aggregate decrease of deposits in the Chinese Banks as compared with 1889 is about $1,000,000, the figures being $6,000,000 for 1889 and $5,000,000 for this year, Deducting from this decrease the $800,000 increase in the British Banks, there is left $200,000— so that there requires the large decrease of $1,800,000 in some unaccountable quarter to make up the two millions which would be the minimum amount to justify the Honourable Member's indefinite statement as to "millious" of decrease.
I should mention that the Registrar General in forwarding his estimate of Chinese Bank deposits accompanies it with the statement that despite all losses, money is at present plentiful among the Chinese, and that the rate of interest among them just now is 42 cents per month per $100-this being scarcely over 5 per cent. per annum and is even lower than the rate among Europeans.
Now as regards Land which the Honourable Member says has fallen greatly in value, I do not doubt that as regards a considerable area of the less valuable land of the Colony, there has been considerable depreciation by comparison with the inflated prices of 1889, but I question whether there has been any depreciation at all as regards what is of incomparably greater importance, viz.: the large area of specially valuable land in Victoria. For though a seller of such land might not