leading to a great enhancement of revenue from land sales, Ground rents, and an increased volume of taxation. His Excellency was further able to point to a vast commerce in a healthy state of progress, with prosperity extraordinary and prospects magnificent. I have almost quoted His Excellency's own words. What is the state of the colony to-day? His Excellency the Officer Administering the Government in his official minute, the latest information furnished to this Council, estimates a deficiency of about $100,000 in our finances at end of this current year. The 39 millions of dollars of deposits in the local Banks have enormously decreased, yes, by millions of dollars. I say so without fear of contradiction; a large amount of the money has hopelessly gone and been lost for ever. More is called for to save a comparatively small portion which may or may not be redeemable from total loss. Mining ventures in the Malay Peninsula, tobacco planting in Borneo, and a number of the now local enterprises have not yet yielded any return on capital invested, while many others are in course of, or on the verge of, liquidation. The market value to-day of companies registered in Hong-kong and referred to in His Excellency's despatch has shrunk at the lowest estimate by a sum of ten millions of dollars. Land has fallen greatly in value, we are largely overbuilt in the city of Victoria, at the Peak, Magazine Gap, and at Kowloon; one has only to look around to realize the fact; there are scores, yes, hundreds of empty houses untenanted and yielding no return on the money so invested.
The position of matters can only be aggravated by Government notification of 28th March last calling for the fulfilment of covenants unfulfilled upon all sales of Government land. For some years to come there will be no great land sales, no addition to our land revenue, and there must be a diminution in the assessed taxes, rents have fallen to so great an extent. The valuations of July next will prove this. About one-fourth of our total revenue is derived from the opium farm, a most unstable and most uncertain source of income in the near future. His Excellency has wisely reminded the Secretary of State that the present large profit on subsidiary silver coin must not be counted on as a permanent source of revenue. The Chinese Government have now a mint at Canton, and may in time supply a large portion of the Canton and Foochow requirements from which ports the chief demand for these coins arises.
Our taxes are already very high. 13 per cent. on the rental sounds moderate but is quite misleading, for rents here are about three times more than rents at home and much higher than in most places in the East. The increase in our garrison of 1,509 men—which was promised but only exists in the imagination of the War Office, though we have all the same pay a double military contribution—would have brought considerable commercial benefit to the ratepayers, large sums would have been disbursed locally for rent, supplies, etc., though the public revenue might not have been largely or directly augmented thereby. The financial position of the Colony is not strong and it is doubtful if the estimated revenue for 1891 will be realised. The revenue shows unmistakable signs of instability and shrinkage, while expenditure is rapidly increasing in every direction, more particularly on public works.
There are very enormously augmented salaries, and an overwhelming and appalling increase in the Surveyor-General's establishment and increasing demands for contributions to Imperial funds, with no appearance or promise of finality. His Excellency now contends that £40,000 is a just and fair military contribution from this Colony, but has not given us any figures or arguments in support of this new contention to set against His Excellency's official statements of eighteen months ago. Trade which seemed to His Excellency in a healthy state of progress in October, 1889, is bad—undoubtedly bad. Every one will tell you so. Excellency's very able speech of 19th ult. he made it clear beyond doubt that although perhaps able to pay our way to-day and to sustain our increasing burdens, it was a matter of grave doubt whether the position of the Colony was an assured one, and its prosperity in the past any guarantee of its future; in fact His Excellency plainly indicated that the Colony in re its financial position had reached the point of danger.
His Excellency told us the sad tale of the West Indian Island of St. Thomas, now deserted if not dead, and pointed out three of the most important causes in operation tending to our destruction which had already hit us very hard, and of which we were not yet in a position to determine the outcome. The position of the Colony has changed very much and for the worse since this question of salaries was first mooted. The actual charge on the revenue has gone on and may go on increasing. When the Appropriation Bill for 1891 came up for the third reading the honourable member opposite (Mr. Keswick) informed this Council (in a speech I have now before me) that the original Select Committee of which he was a member contemplated a total annual increase in salaries of about $10,000. The actual increase for 1891 has now swollen to the simply appalling amount of $102,906 since last year, to $210,489 more than in 1887 or four years ago. In short, salaries now amount to one-third of our total revenue. Much better for the Colony, much better for the officers themselves, to grant no increase of pay, if a few years hence there must be a reduction through our sheer inability to pay.
The question is still under the consideration of the Right Honourable the Secretary of State, Lord Knutsford, and therefore still open. By agreeing to this resolution unofficial members could not be guilty of inconsistency, nor would they thereby stultify themselves in any way. Let us wait at least before charging the Colony with this larger additional permanent expenditure till there has been some revival in trade, some recovery in values, some definite indications that the sad fate which overtook the Island of St. Thomas, and with which His Excellency has threatened us, may not be ours. In view of all the altered circumstances of the Colony for the worse I feel justified in moving this resolution.
Hon. P. RYRIE—Mr. President, I rise to second Mr. Whitehead's resolution. He has certainly gone into the whole question in a most exhaustive manner, and I quite agree with him that with our increased expenditure we want to do a little retrenchment. It is rather an ungracious thing to do, what is proposed in the resolution, but still we think it necessary it should be done. We have to look to our ways and means now, and these salaries cannot be paid for some time, they may be reconsidered by and by, but our ways and means are not very flourishing at present with this much military contribution upon us. I have much pleasure in seconding the resolution of the hon. member on my right.
Hon. J. J. KESWICK—I rise for the purpose of moving an amendment to the motion of my hon. friend Mr. Whitehead. I do so because unable to recognise the reasons given in the resolution why the salaries should not be increased as altogether logical or correct. As I said in this Council on a former occasion, it is a very ungrateful and unpleasant task to discuss questions like this, which in some respects is personal, or at all events a delicate application. But I cannot shut my eyes to the fact that, as I mentioned in this Council in December last, a mistake has been made in the amount of the increase of salaries recommended. The amount recommended by the Committee was only $10,000, and instead of that sum, which would have shown a very moderate percentage of increase, salaries have been increased to the amount of 35 per cent. I quite feel that it is desirable in the public interest to tackle this question without delay and recognise that a mistake has been made and ought to be remedied while there is yet time, and it is for that reason I take advantage of the opportunity now afforded me, which I did not expect to have in December. I feared the matter was then complete.
I think all the unofficial members felt with myself that a right and proper increase of salaries was necessary. I feel so still. But the resolution of my hon. friend opposite reads "that in consequence of the enhanced military contribution" the colony cannot pay the increased salaries recommended. I view the matter quite differently and consider that it is in consequence of a great many extraordinary expenses we have that we are unable to grant this increase. I suppose there never was a time in the history of the colony when the enormous demands for public works and general expenditure were so great in comparison with its shrinking revenue. I am satisfied that the revenue of the colony is declining, and it is on these grounds I consider this increase to official salaries of 35 per cent. should be reconsidered and what may be regarded as an adequate...