Under these circumstances the attention of the Community should be directed to the desirability of establishing Cotton Mills in Hongkong. The Government is in possession of several eligible sites, and if only capitalists, either European or Chinese, will come forward and invest their capital in such enterprises I will endeavour that so far as the acquisition of land is concerned they shall be treated with exceptional liberality. The success which has attended other efforts of this nature in Hongkong ought, under these favourable circum- stances, to lead to the introduction of additional local Industries, such as Cotton Spinning and Weaving, and no more fitting time than the present seems likely to occur. This matter is worthy therefore of the earnest consideration not only of this Community, but of capitalists in the neighbouring provinces in China.
In connection with the fall of silver and the scarcity of the circulating medium in Hong- kong and elsewhere in the East, it is probable, unless the Japanese Yen is made a legal tender, that action will shortly be taken in the direction of the coinage of a British Dollar. I under- stand that some of the Banks are in favour of this step, and that they have arrived at their conclusion in consequence of the lengthened period during which the Mexican Exchange has been unable to adapt itself to the fall in the price of silver. Should any application from the Banks in Hongkong urging the coinage of, and introduction into the Colony, of a British Dollar be received by the Government, I will use all my influence with the Home Government in support of that request.
I now lay upon the table the Estimates for 1894 and will briefly refer to their leading features.
The Estimated Revenue for 1893 was $1,906,396.
The Estimated Ordinary Expenditure $1,899,375, leaving a surplus of only $7,021. So far as can be judged the Revenue for 1893 will be about $2,050,000 and the Ex- penditure, exclusive of Extraordinary Expenditure chargeable against the Loan, will be about $1,940,000.
It will thus be seen that the Revenue of 1893 will probably be about $110,000 in excess of the Ordinary Expenditure, and consequently about $140,000 in excess of the Estimate.
This surplus is nearly accounted for by an increase in the amount of fees received for the Examination of Emigrants, and the profit on an increased import of Subsidiary Coins, which profit was $56,000 over the Estimate. Ample supplies of these Coins will be ordered as required; but absolute reliance cannot, of course, be placed on them as a source of steady Revenue.
The Estimated Revenue for 1894 is $2,007,210 and the Estimated Ordinary Expenditure $1,982,745. To this Expenditure must, however, be added $16,000 expended on Roads in Kowloon, and new streets in Kennedy Town which is chargeable against Current Revenue bringing the total Expenditure up to $1,998,745. These Estimates have been framed with the greatest possible caution, and show a probable Surplus of Revenue over Expenditure at the end of 1894 of $8,465. As in 1893 it may perhaps be found that the Revenue has been under-estimated, but it would not be safe to count upon such a contingency.
On an examination of the Estimates you will observe that the increased Expenditure of 1894 over that of 1893 is principally accounted for by the following items :—
Public Debt Military
Post Office Pensions
Police
.$30,236
37,647
15,880
6,860
6,992
Making a total of.......................$97,615
Owing to the fall in Exchange the provision for the Military Contribution alone in 1894, exceeds that of 1893 by $37,647. In 1891 the Colony found $228,572 for that pur- pose, it now has to find $320,000.
It is in a measure satisfactory that the Colony has not yet been, and I trust will not be hereafter, called upon to raise additional taxation to meet the many additional charges imposed upon it by the falling value of silver.
When the Appropriation Bill is moved the Public Officers specially concerned there- with will doubtless give you fuller information in regard to these items if you should desire it.