More or less balance one against another; the Excess of 1895 over 1894 is really accounted for by the vote of $80,000 for Exchange Compensation.
This vote will not all be required if we do not concede to Hong Kong the same terms that have now been conceded to Ceylon & the Straits, viz., that the officers may receive the compensation without having the rate of exchange for leave salary reduced to 1s. 3d. On the whole, in view of these favorable signs of expanding revenues, I think that the concession may now safely be made, if it is coupled with the distinct condition (as has been made in the case of Ceylon & Straits) that this Exchange Compensation is subject to the annual vote of the Legislature.
Even if voted, I think we should add that even if the vote is passed, the Secretary of State would consider the question of disallowing it in whole or in part in the year in which the extraordinary expenditure was not fully met by the ordinary revenue.
On the present Estimates, there is only a very small surplus shown of $3,325, and we are on the verge of asking for a Supplementary vote of $50,000 for construction of new Barracks. This ought not, I think, to cause a reduction of excess, as stated below, because we hope to get a contribution of $45,000 from Military.
The new Barracks are to be spread over 10 years, and we hope we can meet the charge out of annual Revenue, without having recourse to a Loan. We ought to impress on the Hong Kong Government the desirability of having a fair margin of Revenue, say $100,000 a year for new Public Works, as new Works of one sort or another are sure to be wanted for some years to come. The debt of the Colony ought not to be increased, if it can be avoided, except for remunerative Public Works.
Besides some reduction in Military Contribution, there will be during 1895 some retrenchment (about $15,000) from the abolition of one of the Inspectors of Police; still more reductions will be made in future years. From immediate reductions made, we do not get much, but we know there will be some expenditure chargeable to balances & not to current revenue – viz., the cost of resumption of Tai Hung Shan.
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