With regard to the Civil Service proper, I have suggested to the Secretary of State several important changes, in the way of abolition and amalgamation of appointments and also reduction of salaries as opportunities occur, by which, if agreed to, a further saving of from $25,000 to $30,000 a year will be secured. To some of these recommendations his Lord- sbip has already consented.
The strength of the Military Forces now stationed in Hongkong and the peaceable and orderly conduct of the population generally render it possible to diminish the cost of the Police. The growth of that force, and the concurrent growth of the Pension list, have in recent years been very remarkable. In 1882 the cost of Pensions was $9,000 and in 1891 $22,000. The time has arrived when they can safely be checked and I hope permanently reduced. The Captain Superintendent has materially assisted the Government by suggesting economies amounting in the whole to $15,000 a year, and these will be effected by a slight alteration in the composition of the Force and by the exercise of greater care in regard to the issue of clothing and stores. This reduction is irrespective of that which I propose in regard to Pensions in the future.
If you will add these figures together, taking the lowest of them you will see that a prospective saving of at least $65,000 a year is contemplated. Retrenchment in several directions has, as I have indicated, already commenced, whilst year by year the amount saved will, on the occurrence of vacancies, increase until the extreme limit is reached.
one.
The question of the erection of a new Gaol has for several years been a very burning Soon after my assumption of the Government I made a representation to the Secretary of State on the subject. I urged his Lordship to reconsider the view which he had previously expressed that a new Prison should be built, block by block, on a site different to that occupied by the existing Prison. I am glad to say that my representation has not been altogether unsuccessful. The Secretary of State has agreed to forego the construction of a new Prison on condition that the "glaring deficiencies," as he describes them, in the present Gaol are removed, and that provision is made for the confinement of Criminal Prisoners on the separate system. This will necessitate the acquisition of additional space, which is available in the neighbourhood of the Gaol, and the remodelling of the cells now used as associated cells. It will of course be necessary for me to satisfy his Lordship that these conditions are not only capable of fulfilment, but will be fulfilled. When that is done the question may be considered as finally, and, I trust, satisfactorily, settled. I appointed a Committee to go thoroughly into the matter and it has just reported. The cost of the proposed works will be $250,000, whereas $600,000 at least would have been required for the construction on an open site of a new cellular prison. I strongly recommend you to accept this solution of the difficulty and, by agreeing to the Report of the Committee and by consenting to the Loan, to give me power to carry out without unnecessary delay the suggested improvements.
With regard to the general condition of the Colony it is hardly necessary to point out that it has not fully recovered from the commercial crisis of exceptional severity through which it has recently passed. Business of nearly every description is still unfortunately somewhat depressed and it will be more or less disorganized throughout the East so long as the existing uncertainty as to the future of silver continues.
The value of land and house property is very low, and the price of shares in most of the local Companies and enterprises has fallen so heavily that large sums of money are locked up and cannot be realized except at a ruinous loss, While the legitimate business of the Colony has not fallen off, a large portion of its capital has been transferred to other countries by somewhat reckless and certainly regrettable speculation.
Though there may be no immediate prospect of rapid improvement, we may look forward to the future hopefully.
The value of land and rents has begun to have an upward tendency. The large volume of trade which is ensured by the unique geographical position of the Colony is increasing. The population, perhaps one of the most industrious in the world, is growing daily, and the public Revenue, although it is not of a very elastic character, must be directly benefitted by the completion of the Praya, the Central Market, and other depôts which will at once be accelerated by the issue of the new Loan.
The frequent fluctuations in silver and eastern exchange are naturally creating great difficulties, and indeed consternation, in countries in which the silver standard is in force, as well as in one of the largest and wealthiest counties in England. It is sincerely to be hoped that the Monetary Conference which is about to meet will decide on some sort of bimetallism which will at all events give a fixity of value to silver coin, which appears to be the first consideration. If such should be the case the effect would be immediately felt by the energetic business community of this well-favoured Island.
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