226
and a
I a
THE HONGKONG WEEKLY PRES 8 AND
but as a matter of fact, after providing for only such works as we are a ready committed to few minor works of urgency, there is not only no, surplus at all but as exce88 revenue of $72,170. of expenditur eover
these circumstances the question of the dimination of receipts from opium in con- sequence of the telegrams which I received from the Secretary of State and read to this Council does not arise in connection with the estimate, and in consequence is not directly involved in the Bill now before you. I hope however at an early date to lay papers before you and to make a statement on this subject which will afford the unofficial members any opportunity they may desire of expressing their
of this capital sum. I believe, and those whose advice I have sought, have arged upon me that to impore taxation at this moment when we are not yet free from the heavy depression which has so reduced ont revenue would be a mistake. Nor is thère adequate reason for supposing that such an increase of laxation would be per- manently required. I have prepared therefore to include it in the estimate of available funds to meet next year's liabilities, as was done with the Praya Reclamation Fand, etc., but I feel it my duty to point out to you that it is, as I have said, in the nature of a loan to tide us over our diffo Ities and that we are liable for the interest upon it in the future and that the same applies to the annual contributions in so far as they exceed the liabilities of the pension list. These contributions aggregate $40,80) while the pensions and expenses of the Fund are estimated in 1909 at 89,500 and we are, moreover, relieved of the sum of $18,500, $500 being the interest we think payable on the fund and equalising of exobange, Litherto thrown under Mollaneous Services. Our total liability therefore amounts to $421,80). For so long as the pensions are less than the estimated annual liabilities, for so long are we living at the expense of posterity; though when the position is reversed, we have to provide the difference to make good the pensions out of our annual revenue. But I confess I do not look for any sympathy with posterity from the tax. payers of the present day who are sore pat to it to meet the exigencies of the present depression, but I can find some justification in the red-ction that we ara to-day paying the full interest on the funds borrowed for railway construction instead of debiting it to capital accouot as is not unusually done, These general considerations are of such par. amount importance in considering our gearly budget that I have not hesitated to occupy some time in dicussing them,
ESTIMATE OF REVENUE.
I turn now to the Estimate of Revenue under its various heads. I do cut propose to go into great detail in the matter for the printed estimates, with their fully explanatory notes and appendices, speak for themselves and are designed to give the fulles' possible information of every increase, and decrease, both in revenue and in expenditure. It would be an insult to your intelligence and an nonecessary waste of time for me to repeat information already at your disposal. I have therefore confined my remarks to such points as I think may be of real use to you in studying the estimates placed before you. You will, I regret to say, note a decrease in the estimate of the amounts which are expected to be produced under most beads. This has neces-itated the imposition of some few increased 1-vies under certain heads, which after most careful con- sideration I have thought it possible to beer. Such are the increased duas on lighters, cargo and water boats, an increase of $17,000; and Emigration House while the operation of the Companies Local Register Act is estimated to bring in $20,(0. In spite of these new im- positions the total under this head is still less by $15,493 than the estimate for the current year. Stamp duties, due to depressed trade, are estimated to produce less than this year, but I am taking steps to ensure their more complete and thorough collection which will bring them up to the same total.
THE OPIUM QUESTION. Yon will observe that except for a small and negligible decrease in the divan licences no redaction has been made in the anticipated receipts from the opium trade. Any decrease therefore which may occur in consequence of the policy of His Majesty's Government remains noprovided for, and if there is no surplus at the end of 1902 they must be met by special taxation or from the colony's reserves, or in some other way. I am in correspondence with the Secretary of State on this subject but the investigations which have been conducted here have taken a long time and the question has not reached any fical solution, so that it has been impossible for me to deal with it in the estimates. If there had been any surplus however small, of revenue over expen diture it would have been incumbent upon me to consider whether a part of it should not be set aside to meet any possible liability on this account instead of devoting it to public works,
views.
in
ware
IMPROVING SOURCES OF REVENUE,
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|
Class 2 of Revenue shows an increase of 841,404 which would have been augmented to 858,404 if the $17,000 for postal transit charges referred to had not been eliminated. This sum is properly a departmental credit under the new Colonial Regulations and has therefore been deducted from postal expenditure, instead of being shown as a credit under the revenue subject to the military contribution. There is an increase of $5,000 ander Goop wder Storage, due to a fuller use being mide of the very fine depot at Green Island which gost this colony a large sum of money and has been little used of the dangers to privato bouses which had been licensed.
to meet the cost of
the new In order emigration sub-department in the Registrar also to meet cur Geusial's office, and needs for general purposes, the fees for the medical examination of emigrants have been increased and this is calculated to yield an increase of $22,000. There is also an increase
fees in the
Government schools and of Technical Institute and this is estimated to bring in altogether an increase of $24,65', but this increase cannot be said to have been imposed for revenue purposes. It is rather a natural result of increased facilities for educa- tion which have resulted in a great increase in the number of pupils, and it must be regarded a set-off against increased expenditure on education. The decrease in the fees for medical treatment, owing to fewer patients in hospital, is the one solitary decrease upon which I can congratulate the Council. Itis] I am compelled to added, partly, due to the opening of the Matilda Hospital and the decrease of paying patient. The more we spend on training and sanitation, etc., be more pullabs
Be our revenue from this we may expect to source decline and the health of the colony improve. The large rise in timber sales, $8,7, is due to the inauguration of felling operations whicb, now that the timber has matured in certain areas, has become possible. The soheme is to fell strips or blocks of timber annually during a cycle of 25 to 30 years, so that when the last strip or block bas been felled the earliest in rotation is again ready. The ia creased estimate from this source should there. fore be permanent, but I do not feel certain that it has not been an optimistic estimate. Toe increase in sales of vaccine is one which I am especially glad to mote since it indicates an increase of vaccination among the Chinese.
as
THE NEW TERRITORY.
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[September 28, 1908.
Fund in Class V are subject to Military
they Contribution and therefore
under the head of Extraordinary Revenue or 'below the line" as the phrase is. The total estimate of revenue, ordinary and ori traordinary, stands at $6,708,996, an increase of 8481 106 over gross expenditure for last year.
ESTIMÁTE OF EXPENDITURE.
I come now to the estimate of expenditure for 1909. This stands at $6,781,168, an inor:ase of $602,635 over the estimates for last year which, in round figures, is accounted for as follows : – The fall in exchange bas bad so large a shire in our deficits in the current year that it means an increase, in salaries only, as compared with the total of for 190% of 8156,278 new posts $13,129, incremental rises $2,480, increases of salary and allowsLCOS 810 677, less small savings on various items $5,523, quals $40,863,
Capital expenditure on Public Works Ex- troardinary $219,700, less a saving on Public Works Recurrent $4,500 and of $47,950 on special expenditure, accounts for $167,250; The military contribution is increased by $25,181 and pensions by $35,000, making together while the additional interest on 860,161
loaus jor
the railway comes to $178,083 making a total of $632,635. The loss by the fall in exchange is not of courss conflard but all to tb items of salaries alone, payments have to be made in sterling and are consequently responsible for a great part increase under Public Works Ex. of the traordinary, because last year, on the best expert advice, we felt justfiled in taking the rate of exchange at 2/. for sterling salaries and a
2, for all other items. I have been advised that it is not safe to bise our calculations for next year at a higher uniform rate than 19. The increases in every depart ment are due entirely to this course. In the Registrar General's department it has bʊooms necessary to create a small emigration sub- department in order to deal with the number of emigrants which had increased by 341 per cent in the ten years prior to 1907 and by 16 per cent over the previous year 1906, in consequGNOS of the provision of the new ordinance which affords
increased protection to assisted emigrants. The examination of this class now trausferred from the Harbour is Cffice to the Registrar General's department, the cost of the sub-department is and $5 123, which is very much more than covered by the additional fees for medical inspection. In the Treasury audit there is nothing special to note. Under the Post Office you will observe that in spite of the reduction of mail subsidy by £1,25 there is an increase of $8,556, due to fail in exchange, while transit payments are increased by $40,0. The question as to whether the receipts from
conducted postal agencies by this Colony in China should be liable to military contribution is still under The reference to the Secretary of State. Imperial Treasury and the Municipality of Teintsin have between them guaranteed to refund the estimated loss on the working of that ageudy for the coming year, and the Post Office will, therefore, 1 am glad to say, remain open. In the
u arbour department a special sum of 82550 has been provided for a buoy for the Cast rocks, and some small expense is incurred abcout of the new light to be placed on Blackhead's bill. These steps will, it is hoped, assist navigation in the Harbour of which com. plaint was made when the cruiser “ Flors” went aground. They are the result of correspondence with the Admiral and the report of the Special Committee. Regarding the Observatory, I undertook last year to inquire very specially into the efficency of this department. The Director assures me that his relations with other observatories are most cordial and that he has the best of instruments. He is the only person who can express an opinion on the
but assessed latter point,
in order to ensare both these points I purpose that after the typhoon season is past he shall visit the at Manila Lnd Shanghai observatories and see their instruments and get into close touch with the directors. Under "Micellaneous, Government is recieved of total payment of $10,000 on account of interest on the Widows and Orphans' fund The sum of $36,000 is retained on the Estimates
In Class III there is nothing very special to of note except the satisfactory collection the rent in the New Territory. During the year I have been in the Colony I have foun ! no subject of greater interest than the land settlement in the New Territorities and I have been impressed alike with the ability shown by the present Assistant Colonial Secretary in the original assessment and the tact, energy and discrimination of his successors, Messrs Messer and Halifax, who have made the collection such a success. T'he revenue derived is many times greater than that levied by the Chinese Govern- ment prior to 1898. Yet it is paid with alacrity and
justly that no hardship or discontent is felt by the people. It is well, perhaps, for this Council have occasionally the opinion of a Governor who comes new to the Colony of this and has had experience of works class and who can estimate the value that it owes to the ability and work of some of its junior officials. Neither the principal nor the annual contributions to the Widows' and Orphans'
to
has been so
on
10
£
Fi