S.0. N. 2471.
Stonghong, 15th September 1869;
(Received: 15 September,
Acting Auditor General. Hon. I. G. Austin)
In 12352/09
Special Fund from Gambling Licence. Statement of actual and Probable
Expenditure from -
Enclosure No. 1 in Governor Sir Richard Graves MacDonnell's Despatch No. 793 of 15 Sept 1884.
Particular
Although the Estimates for 1870 propose nothing very remarkable or that appears to invite attention, they possess a special interest as showing that, after many difficulties, a tolerably sound financial state has been attained, and one which gives fair promise of permanence. No fleeting surplus is shown by disposal of the Colony's Capital, viz. its land - the receipts from Licensed Play Houses do not appear as part of the Revenue - and yet the permanent means of the Colony are made to meet all its liabilities and provide fairly, though not extravagantly, for the general demands of a Community in a state of progressive improvement.
So recently as 1867, the estimated surplus of the Colony's Assets over its Liabilities amounted only to $24,000, whilst of those, $60,000 were unavailable coins, which no creditor could have been compelled to accept, so that practically the Colony was bankrupt. The worst feature, however, of its financial position then, was not so much the diminishing surplus, as the fact that the Colony had been steadily dropping into this insolvent state from a condition of comparative affluence. Thus at the beginning of 1865, it possessed a bona fide surplus of $298,000 - at the beginning of 1866, one of only $184,000 - and at the commencement of 1867, an imaginary surplus of $24,000, but practically a deficiency of nearly $30,000.
It must be remembered also that in 1866, when I arrived, I found the Expenditure of the Colony increasing in proportion as its Income was diminishing - the worst of all conditions whether for States or individuals. So much was this the case that its actual Expenditure in 1865 exceeded its Revenue by $94,361, and in 1866 by $167,877. The Expenditure in 1867, however, was then decreased at once from $936,954 in the previous year, to $730,916 - but not without leaving the Military Contribution in arrear.
The Revenue was permanently raised by means of the Stamp Ordinance, which however did not come into operation till late in 1867 and thus the Colony began to right itself slowly - its Expenditure in 1867 being $128,584 within its Revenue, and in 1868 $142,794 - whilst in the latter year all arrears of the Military Contribution were paid off.
Probably many suppose these results could only have been produced by using the fees received from the Police measure of licensing Gambling Houses under certain Regulations. That, however, is altogether a mistake. The Colony has recovered from its difficulties, paid its current expenses, and discharged all its heavy liabilities without using for those purposes one cent of the License fees in question.
It is undeniable, and I see no reason to regret it, that much assistance in other ways, as we shall presently see, has been derived by the Colony indirectly from those License Fees. It is, however, equally true that all its previous debts were paid, and its ordinary current expenditure met, as well as considerable Public Works carried on out of its own permanent Revenue. This would appear more clearly, if I could lay before you the Colony's account with the Special
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