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When the Estimates for 1894 were prepared - the last quarterly payment of the Military Contribution was made at 2/. I would point out to Your Lordship that but for the expenditure on account of the plague alone which amounted to some $150,000, there would have been a surplus of revenue over expenditure amounting to at least $100,000. The fact is that, whilst Expenditure was increasing, the revenue was suffering to a considerable extent owing to the ravages of the plague, and the serious blow which it dealt to the trade generally. The above Estimates, in my opinion, clearly indicate the satisfactory financial position of Hongkong, which, under similar circumstances, could, I think, be shown by many other Colonies.
5. As regards the Estimates for 1895 which are about to be laid before the Legislative Council and which, subject to Your Lordship's approval, will include a provisional sum of $80,000 for Exchange Compensation, a surplus of almost $40,000 is anticipated, this result being attained by the following additional taxation only, viz.:
An increase in the stamp duties, which it is calculated will bring in $40,000, an increase in the fees for Spirit licences estimated at $13,000, and an increase in the fees to pawnbrokers, bringing in about $24,000.
In spite of the falling off of the opium revenue, which, after the expiry of the present farm in March next, will amount to about $55,000 a year, with this slight additional taxation, the Colony will not only be able to meet the expenditure required for Exchange Compensation and for the fall in the value of silver, which largely affects the sterling payments of the Colony on account of Military Contribution, pensions, loans and other charges, but it will have a surplus of about $40,000, which will be sufficient to cover the interest on a loan, if it be considered advisable to raise one, in connection with the resumption of Taipingshan. I may add that the Unofficial members of the Legislative Council, whom I consulted regarding the financial affairs of the Colony, were quite prepared to agree to still further taxation if such had been found necessary, but I am glad to say that this was not required.
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