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With respect to the Oriental trade, the Harbour Master says:-"There has been a considerable increase in the trade between this port and India and Singapore, as well as with Japan." As regards the latter, I am disposed to think from what I have myself seen in Japan and ascertained from the merchants there, that the Japanese trade with South China and Hongkong will increase more rapidly, in proportion, than any other branch of our Eastern commerce.
Now, gentlemen, with respect to the Estimates which I propose to lay upon the table, it has been hitherto my practice to submit from time to time the details of the Estimates to the Finance Committee of the Legislative Council, so that in fact the Finance Committee had before them the applications, more or less numerous, for increase of pay, the various applications of the Surveyor General for the expenditure of public money, and the applications of the officers who have the spending of money in other departments. But instead of pursuing that course this year I have, under instructions from the Secretary of State, adopted the course I am now taking, which is that of laying the Estimates before you on my own responsibility, and then, after the statement I make to-day, and to-day's pro- ceedings close, the Council will be able to adjourn when the Finance Committee can go through the Estimates, and then, at a reasonable time, the Council will meet and deal with the Appropriation Ordinance embodying the Estimates.
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The revenue that honourable friend the Acting Colonial Treasurer, Mr. TONNOCHY, anticipates for the year 1880 is based upon the actual receipts which he finds recorded in his books for the first nine months of 1879. My Honourable friend arrives at the conclusion that our revenue will reach the figure of $1,017,956. You will notice that under the head of taxes there is a falling-off. This is to be accounted for by the fact that under the head of Stamps I estimate for $115,000 only and under the head of Police assessment, Water rate, Lighting rate, and Fire Brigade rate, I anticipate receiving a smaller sum than was actually received in the year 1878. But, as you are no doubt aware, the falling off in the house tax arises from the fact, not that the Colony is less prosperous, not that we have fewer houses--for even in spite of the fire that destroyed 366 houses in December 1878 we have more houses at this moment than we had at any other period in the history of the colony--but it arises from the fact that last year I took the responsibility of reducing the rate from twelve per cent. to ten per cent. When I referred in my financial statement last year to the possibility of a reduction in taxation I drew your attention to the fact that there was a great difference between reducing such a tax as that levied on the native junk trade and reducing the house-tax, inasmuch as I stated that the former would require a legislative enactment, which it would be very difficult to go back upon,
whereas the Governor in Executive Council is bound to review every year the question of the house-tax, and determine what should be the rate for the ensuing year. Therefore the reduction in that rate for the current year was not constituted a permanent reduction. may inform the Council that au important proposal has been submitted to me by three gentlemen,-my Honourable friend the senior unofficial member (Mr. RYRIE), and two of the officers of the Government suggesting that water tanks be erected along the side of the hill overlooking the town to provide a supply of water for the extinction of fires. A de putation waited upon me and expressed, on behalf of the community, an earnest desire that the views of that Committee should be carried out. I have reported that to the Secretary of State. The estimate for the proposed scheme amounts to $50,000, and if I am called upon to expend that sum for this purpose I think I may appeal to you, and the whole community that for getting that sum-or $30,000 at all events-I would be fully justified in asking the householders to contribute, and therefore it would be my duty next month, when I have to consider this question of the house rates, if Her Majesty's Gov ernment approve of the expenditure, to re-impose the two per cent. to get the money to pay for that which is practically a fire brigade service, and of course affects, more than any other, the actual house holders. At the present time you won't find this $50,000 included in the Estimates, because it requires the sanction of the Secretary of State; and you will see that the Colonial Treasurer has estimated the house-rates at the lower rate of ten and not twelve per cent.
There is a change, under the head of Postage. The amount of expenditure has increased and the receipts have also increased. On that subject it is only necessary to remind you that for some time past-for a year or two-there has been a question, which has not been discussed at this Council table, but has been discussed in another form, as to how far the Postal revenue is correctly stated on the Estimates. I entertain a decided opinion that we should deal with postal revenue as with everything else, that the Postmaster should include in his estimate of expenditure all the money expended, a in his estimate of receipts the gross receipts. However, he entertained a different opinion and handed in figures of a different character. This occurred during my absence in Japan. Mr. MARSH referred these figures back to him, pointing out what was the practice elsewhere, and what he himself, with his experience as Auditor General, thought it was the proper one to be followed.
On returning to the Colony, I therefore placed before the Treasurer the figures which the Audit Office had resolved upo on a careful investigation of the whole subject, which were the figures showing the gross receipts ant gross expenditure.
The total estimated expenditure is $964,355, and as the estimated revenue is $1,017,956, the estimated surplus on the transactions of the year 1880 is $53,601. The most important change is that under the head of Police. Now the question of the Police Force in this Colony has engaged the attention of the Governinent more than once. We have had of late years two Committees or Commis- sions sitting upon the subject. I appointed a Committee presided over by my lamented friend, Mr. MAY, to investigate the question of Police and crime in the Colony. I had previously taken the responsibility, I think in August, or September, 1878, of giving instructions to Mr. DEANE, the Captain Superintendent, to strengthen the night force, and I pointed out the desirability of having the night duties of the force increased thirty-three per cent.
The Committee I appointed examined Mr. DEANE, Mr. CREAGH, and a number of the Inspectors and other persons competent to give advice on the subject. No one indeed was more competent than the Chairman himself to form an opinion upon it. They arrived at the conclusion that the two-thirds night system, as it is called, should be tried, and that the system would probably tend to diminish crime, for they expressed a decided opinion that the Colony was not adequately policed at night time. Well, that report was laid before Her Majesty's Government, and about the same time, or indeed a little before that report reached the Government, they also received, from two important sections of the Community, the opinions of those sections upon that very question, as to the Police. Sir MICHAEL HICKS-BEACH received a memorial addressed to him by all the leading Chinese merchauts of the Community, in which amongst other things, they expressed an opinion that the town had not been for some years adequately policed at night, and expressed a hope that he would sanction a moderate increase of the Police Force. On the other hand, a resolution was also laid before Sir MICHAEL HICKS-BEACH in which some of the European section of the Community took a different view, and thought no change was necessary in the Police arrangements of the Colony. Well, that point has been considered carefully by the Secretary of State, and he has conveyed to me the decision that be entirely approves of the two-thirds system of night duty, and he asks me also carefully to consider the question whether some increase ought not to be made in the Police Force. Sir MICHAEL HICKS-BEACH also points out that Mr. MAY'S Committee called attention to the fact that on one particular day in October, to which they referred, there were 106 members of the Police Force employed on what were called special duties, that is five or six at Government House, a few employed taking care of the Courts of justice, and in different parts of the Colony the Police were engaged in that way--my Honourable friend Mr. TONNOCHY had twenty in the Gaol-and in various ways 106 members of the force were diverted from what were really their proper duties. Sir MICHAEL HICKS-BEACH directs that these Policemen should be paid for by the different departments that were using them. Accordingly, in preparing the Esti- mates, I have charged the various departments with these Policemen who were formerly charged to the Police vote, and I requested Captain DEANE to state what increase in the force he would require, inasmuch as all the money not so required would be struck off the Police vote. Mr. DEANE in his minute expresses his views, and is content to have an increase of thirty-six men in the Police force. The sum which will be charged to the various departments, amount to $12,245. However, with certain reductions of salaries which you will see by the pay list-the net increase in the salaries of Police force will be $10,680, and there is a further expenditure for the present year of something over $11,000 in connection with steam launches for the Police. I have told you what the opinion of the Committee was.
I am now able to give you also the opinions of competent persons in the Police force itself as to the actual results of this question of the two-thirds night duty. During my absence in Japan, the Administrator called upon Captain DEANE to let him know how this new system worked, and Captain DEANE reported as follows:-"I have collected reports from the different Inspectors, and their opinions coincide with mine, it has had a decidedly beneficial effect in diminishing the amount of crime during those hours." Chief Inspector HORSPOOL says he was always in favour of the two- thirds system, it was the system under which he worked in London, and it has been most beneficial here; and all the other Inspectors say the result has been most satisfactory and has diminished crime. Captain DEANE was of opinion he required a few more men so as to increase the day duties, and he is now content with the comparatively small increase of thirty-six. So far, I hope our Police system has been improved. I may add that the Senior Acting Magistrate informed me that during the time this system has been in operation, there has been a marked diminution in the number of cases of serious crime.
Now, gentlemen, there is one slight increase in the establishment charges which I am instructed to make in a despatch from the Secretary of State, No. 105 of the 15th August. Sir MICHAEL HICKS. BEACH was good enough to say."In consideration of the expense entailed on the Governor by the numerous entertainments he is called upon to give, I am of opinion the allowance made to him for lighting Government House, etc., should be increased from $1,440 to $4,800, such increase to date from the 1st January last."
There is another change which you will see, and which really does not involve any question of money, it is merely a transfer from one department to another department, and that follows from the