39
Compared with this scholarship expenditure, the Government spent in 1891 a total of $60389.10 on 7672 scholars or $7.49 per scholar, whilst the cost of those scholarships sent to England was $2268.52 for two scholars, or $1134.26 per scholar. Now the local demand for schools rises from year to year in proportion with the growth of the Chinese population, and though a pro rata reduction of educational Grants may be feasible for year by year, it is practically impossible to curtail the necessary educational demands for any great length of time. Educational expenditure is a small but unavoidable portion of the Colony's liabilities, and if the necessity arises for retrenchment, the question may well arise, on purely financial grounds, whether such a costly Scholarship Scheme should not be suspended until the local educational expenditure can be satisfactorily provided for.
I have (signed) E. J. Eitel, Inspector of Schools.
To F. M. O'Brien, Esq., Colonial Secretary.