The Daily Press.
Enclosure1.
HONGKONG, APRIL 11TH, 1891.
HONGKONG LEGISLATIVE COUNCIL.
A meeting of the Legislative Council was held yesterday afternoon. There were present:---
Hon. W. M. DEANE, Acting Colonial Secretary, in the chair.
Hon. W. M. GOODMAN, Attorney-General. Hon. N. J. MITCHELL-INNES, Colonial Treasurer.
Hon J. H. STEWART-LOCKHART, Registrar-General.
Hon. S. BROWN, Surveyor-General.
Hon. P. KYRIE
Hon. Ho KAI.
Hon. J. J. KESWICK.
Hon. T. H. WHITEHEAD.
Mr. A. M. THOMSON, Acting Clerk of Councils.
THE MILITARY CONTRIBUTION AND THE INCREASED SALARIES.
Hon. T. H. WHITEHEAD rose to move the following resolution:-" That in consequence of the enhanced military contribution still demanded by the Imperial Government this Colony is not in a position to pay the increased salaries recently recommended by the unofficial members and that the Secretary of State be requested by telegram to withhold his sanction" The hon member said I have to thank His Excellency for acceding to my request for the postponement of the discussion of this motion It was not asked for because of any doubt or uncertainty in my mind as to the facts and figures on which the resolution was deliberately based, or because of any hesitation as to the wisdom and propriety of the position taken up. I asked for an adjournment that the figures might be officially before the Council and the public in such form that the correctness of my statements might not be questioned. I shall endeavour to satisfy hon. members that the position is not untenable, that the motion has not been the outcome of any sudden impulse, or of anything worse, and that in the result, it will strengthen, not weaken, as His Excellency seems to think, the hands of the unofficial members in their protest, their most respectful and moderately worded protest, against the enhanced military contribution. This resolution will have the further advantage, whether intended or not, of giving His Excellency and the hon. the official members of this Council a legitimate opportunity of discussing the general financial situation, and of demonstrating, if it is possible to do so, the ability of the colony to bear even heavier burdens than those now imposed upon it.
His Excellency has twice reproached the unofficial members with their refusal to discuss this question during the course of our recent debates on the revote of the military contribution for 1890. I hope you will not find them backward now, but I adhere to the opinion that such discussion was out of place on the question of the re-vote. I cannot agree with His Excellency in the assertion that the demand of the Imperial Government for the payment of the extra £20,000 was based upon new and general grounds. That statement is not borne out by the Secretary of State's telegram and despatch of the 13th February last. Lord Knutsford simply demands payment of money already voted but unpaid. The Hon. the Colonial Secretary, the Hon. Captain Superintendent of Police, and the Hon. the Attorney-General, each and all have declared that it was simply and solely a re-vote, nothing more and nothing less than a re-vote. It may be correct to say this year's enhanced military contribution has been asked for on other grounds than the promised increase of the Garrison, but this cannot with truth be said with reference to 1890. With regard to that vote there has been a deliberate breach of faith and a glaring violation by the Imperial Government of a solemn agreement with the Colony,
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and His Excellency will not find a dozen persons in the island who will agree with him that there has not been. I cannot concur with His Excellency in the opinion that I must abandon motion if I am not prepared to assert and prove that the Colony is not in a position to pay the increased rate of salaries as well as the enhanced military contribution. I may be of opinion that in this year, or perhaps the next, the Colony is in a position, without grievous loss or hurt, to bear the double burden, and yet be of opinion that the Colony will not in the near future be able to support the present increased army of officials at the higher rates of pay.
From the official statement laid before the Council to-day it appears that salaries for 1891 will aggregate $758,139, as compared with $655,233 for 1890 and $547,050 for 1887. I may further and do think that, unless the Colony can see its way not merely to pay these salaries this year and next, but for several years to come, it would be unjust and unfair to colonists and officials alike to grant an increase of salaries that three or four years hence may have to be reduced to their present or even to a lower level. The question for debate now is not, Is the Colony able to pay these increased salaries this year or next, but are our prospects in the near future such and so assured that we shall be able to continue to pay these enhanced rates of salary permanently. We are not giving a bonus out of the realized profits of a few good years to our official servants, but we are binding the Colony to pay these increased rates for years to come. We may vote the military contribution this year, and contemplate the probability that next year we shall be unable to pay it. We cannot deal that way with the question of salaries. These salaries bind the Colony for years to come. Salaries cannot be reduced without the greatest injustice, and except under the pressure of the most urgent necessity.
There are two points for consideration, the propriety of the proposed increase of salaries, and our ability to pay and to continue to pay this increase. The unofficial members have cordially recognised the propriety and justice of an increase of salaries. It was on their recommendation it was authorized, they are not wavering on that point, but on second thoughts they begin to doubt the ability of the Colony to pay the increased salaries over a course of years, and the wisdom of granting them, if in a few years they may have to be reduced. I am of opinion that the officers of the Government have fair grounds for asking for an increase of salaries, if the Colony can afford to pay such increase, but I think the Council ought to be satisfied not only that it is able to pay them this year and next, but for some years to come.
From the latest official information furnished to the Council there is an estimated deficit of about $100,000 in our finances at the end of this current year. Therefore I do not see how we can honestly pay the heavy increase in salaries even this year. I see no prospect in the near future of wiping out that deficit. It seems to me that it must increase. It was in the early part of 1889, I think, that this question of an increase in salaries took form and that a Committee was appointed by His Excellency to investigate and report on it. What was the position of this Colony, or rather our estimate of its position and prospects, when this question of salaries was first mooted ? It is set forth in His Excellency's brilliant despatch of 31st October, 1889, to the Right Honourable the Secretary of State, Lord Knutsford. His Excellency in that despatch was able to refer to the great wealth of the Colony; to the 39 millions of dollars of deposits in the local European and Chinese Banks; to the market value of all registered companies in Hongkong-63 millions of dollars and over; and to the enormous rise in the value of land, Marine lots having advanced 50 per cent, and Inland lots 15 to 20 per cent.; also to the 35 new joint stock companies formed since 1st January, 1888, with capital then paid up aggregating over 9 millions of dollars, for land investment, manufacture, and trade in Hongkong, and for mining and planting enterprises in the Malay Peninsula, Borneo, and Tonkin. His Excellency was then able to express strong hopes as to the success of nearly all these new companies, and to the certainty of a further great increase in the value of land in Hongkong.