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obstructive, and indeed he believed a great deal of common sense had been shown. However, it was always found that whatever estimates were drawn up and passed, they never could be adhered to; members were always obliged to make allowances, and not maintain a mathematical exactness, unless they voted a sum for extraordinary expenses for the disposal of the Governor. He was happy when possible to avoid anything but reasonable expenditure; and he admitted that the Works and Buildings did look a large sum. But he gave a reason for everything; and he did not think that further discussion would lead to any advantage; besides, the money had been voted by an ordinance.

The Supplementary Estimates for 1868 having passed, the ordinance was numbered 11 of 1869.

ESTIMATES FOR 1870,

The Governor then introduced the Estimates for 1870 (appropriation ordinance) for second reading. They were much less than last year, owing principally to the fact that the arrears of the Military Contribution had been remitted last year. They sent at one time £30,000, part of which was now in their agent's hands at home, and as the exchange was good, the Colony had gained by the transaction. Now, however, they had been ordered to pay the contribution at the rate of 4/3, which would entail a loss of some $4,000 or $5,000.

Mr Rowett: Then that increases the contribution.

H. E. said that the previous discussion as to the principle of expenditure had cleared the way; but he would be glad to hear any remarks.

Mr Keswick said that, in considering the Estimates, he would contend that it was the duty of this Council to see how the Special Fund was spent; the Council should have the control over the manner in which it was spent, and as a member of Council he should say that the money should be spent by its sanction. It was collected in Hongkong, and various items appeared now which would entail expense on the Colony in future. Were they to have one, two, three or more of the Government vessels? They would be saddled with this force hereafter. A navy to be of any effect, would be an expensive thing for this Colony to possess; and the expense of maintaining would fall on the Colony in the event of the Special Fund failing them. The hon. member made reference to various sums thus laid out.

H. E. remarked that all the members of Council had seen the items which make up the Special Fund draft.

Mr Keswick said that he had purposely avoided then. He did not object to the source of the revenue: he approved of the policy adopted thus to suppress crime, and looked upon it as a good way of raising money to preserve order. But that it should be spent without the sanction of the Council, with that he entirely disagreed. In matters of revenue, he drew attention to the opium monopoly. There was no doubt that the opium farmer had a very large profit indeed, and that a combination existed to maintain it; while it was difficult to say how this could be overcome.

When the Chinese had a good thing, they took care that they kept it. There was some whispering of making the gambling licenses a monopoly also; but he was glad to hear the Governor looked upon the licensees as the last people to benefit in that way.

Mr Gibb next addressed the Council. He maintained that the Special Fund should be under the control of the Council. The taxation was not very severe, and most of the items were really necessary. But he would draw attention to the increase of the Police; that item had increased $50,000 during the last three years; and he thought by some means that might be reduced. He was of opinion that the Chinese element might be introduced with greater advantage; in Shanghai this was done to a large extent, and the efficiency of the police was increased. It was now time to consider the reduction of the establishments in such a way as not to reduce the efficiency of the service.

Mr Taylor then rose, and said he agreed with all which had been said about the Police. The Sikhs were anything but efficient policemen, though excellent troopers. Again, touching the Military Contribution, he understood that it was imposed for five years only, and as this was the fifth year, he did not think that the Colony was called upon to undertake this item. He thought that the sense of the Council should be taken on this point: it was a hardship now, and they paid far too much. As to the Albert Road ($15,000), if the Special Fund failed them, he opposed this expenditure. He would be unable to vote for the estimates of 1870. He could not but mark the increased efficiency in every department since the arrival of H. E. in the Colony.

Mr Rowett said it was almost impossible to say anything without referring to the Special Fund, and they must not shut their eyes to the fact that it might cease. They could not look in the direction of increased taxation for relief in such a case; what he would urge was to endeavour to reduce the expenditure in the departments; keep them as low as possible. In the matter of revenue, he was struck by the falling off estimated in lease of lands ($17,000), which did not speak much for the flourishing state of the Colony. Having referred to ground licenses, the hon. member then spoke of the opium monopoly, and said they ought to try and find out the combination at present against the Government. The fees from boats were estimated at least by $12,000 to $8,000, but he hoped that the Commission now sitting on these ordinances would place matters in a better position. They must look now to expenditure: it was difficult to say how; but he trusted that the Harbour Master's department would be reduced with the reduction of the licenses. Touching the Police, he supposed that they would not think of importing any more Sikhs, and by replacing them with Chinese or better men as they go away, they might reduce expenses. In Works and Buildings, the Waterworks swallowed up $95,000: had they any guarantee that this would not be doubled? It was a dreadful thing to talk about—another $90,000.

When was the excess first seen?

H. E. said that the late Surveyor General persisted in saying that there would be no excess, although H. E. always said there would be; and Mr Moorson had since gone into the matter very carefully. It was a source of great anxiety to him; and though he was certain they would have a better supply of water, he was sure they would not have it in that abundance which protection for fire and sanitary laws demanded.

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