Mo
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only pay a fraction of the 100,0001, but need never pay more. The percentage system, however, would in prosperous times and high exchange yield more than the sum asked, or the total cost of the garrison, and could at all times express all the Colony can pay.
13. A reasonable percentage, such as it seems from the despatches has hitherto been contemplated (even if it were the same proportion as that of Hong Kong, although the administration of this Colony, not being so compact, is necessarily more costly than that of Hong Kong), would, it is believed, be found fair, just, and equitable by all in the Colony, and cheerfully assented to.
It would give finality and enable the Colony to make once more a budget. And the absence of finality has been the greatest cause of all the heartburning. Unless the the contribution be fixed in silver, or by a percentage, there can never be anything approaching finality.
The same reasons prevail as in India before the closing of the mints. The percentage system would do away with all arguing as to the terms of an agreement, cost of garrison, and the distinction between troops stationed for local or Imperial pur- poses. It would settle the question on a broad basis and for good, which is so desirable in every respect.
14. The Secretary of State himself one should think to be imbued by the same desire. Apart from the trouble, the long standing dispute must give the inanner the contribution has in the past been drawn from the Colony could easily give--rise to nice questions of constitutional law, which in themselves may become troublesome. The Colony to one man have never consented to pay 100,000l. a-year. Formal protests have each time been lodged by all unofficial members of Council. The officials had to vote under instructions. But it is apparent from the despatches of the late Governor, and the memoranda by nearly all the members of the Executive Council, that with a free hand they would not have voted the sums taken. And whether, under these circumstances the whole question is not still constitutionally a quite open one is, to say the least, a question of great doubt. In this case the Secretary of State disburses the Colony's money against the practically unanimous wish of Government and Colony alike. And yet the Government stated in the House of Commons in a debate on India but a few months ago, "That it was not true that the Secretary of State could by a mere stroke of the pen spend as much money as he liked.”
15. In addition it may be pointed out that the Liberal Government has brought about, and through a deliberate action of its own, the closing of the Indian mints. the depreciation of silver, which traces the course of the impossibility to bear the burden to the Home Government.
If it is further taken into consideration that the sanctioning by the Liberal Government of a more recent date of the British dollar, in the face, it is believed, of the wishes of the Colonial Government to the contrary, which his Lordship shows himself in his despatch of the 27th October, is bound to lead likewise to lower exchange, and thus to a further increase of the burden is equally caused by the Home Govern- ment, it may well be hoped that a proposal to base the contribution on a percentage of the revenue may lead to results, be it for reasons of equity, general policy, or even generosity.
CONCLUSION.
16. I hope I may, in conclusion, be allowed to make a forecast, by trying to penetrate how the future is likely to shape itself if the demand for 100,000%. is insisted on.
Our revenue is about 4,000,000 dollars. The minimmn required for civil charges at exchange of 2s. 3d. is over 3,000,000 dollars, but now that exchange is 28., and with exchange compensations and extras (which will always spring up) about 3,300,000 dollars. Every decline of silver will add to this amount, leaving the Colony with a balance of maximum 700,000 dollars for Military Contribution, the unforeseen, or public works, which latter cannot cease for ever.
17. 100,000% at to-day's exchange will mean, without building barracks, 1,000,000 dollars. Where are the million dollars to come from? The finances of the Colony are now, that is certain, approaching a crisis. There are no more reserves to draw from and the Budget does not balance. Money would have to be found by loan annually. Would Her Majesty's Government use the machinery of the official vote to force the Colony into such loans? It is almost useless to ask that question, because the moment it becomes known amongst investors as a certainty that the Colony would be forced to pay 100,000l. annually, the Colony would not be able to borrow. Investors would not take long to see that in a short time the Colony must staud in bankruptcy. The Colony would have no credit. The idea of making the Colony pay through raising loans would, therefore, have to be abandoned.
18. To raise the rate of exchange is beyond the power of Her Majesty's Govern- ment, and Lord Ripon has vetoed, in his despatch of 27th October, the aspirations of the Colony to a fixed currency, so that this issue, which was opened to India under less distress, is likewise closed to the Clony through the action of the Liberal Government.
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19. Can the civil charges be further reduced? The recommendations of the Retrenchment Committee, it is considered, have already gone too far in that direction.
It is hardly possible to go further, unless it is to weaken efficiency, ultimately leading to a decline in revenue, thus increased inability to pay.
On the contrary. The demands of the subaltern service, as far as they are just, for increase of salaries in lieu of exchange compensation have to be taken into considers- tion. The civil charges will, therefore, have to be further increased in the near future.
20. There remains increased taxation. Fresh taxation also could only be had, if contemplated to any extent, by forcing it through Council by the official vote. That would lead to the greatest dissatisfaction and, almost for certain, to great trouble. The revenue we have now rests on free trade, and the lower the taxation the more that trade will prosper, and the more our revenue will expaud. Heavy taxation would lead to the collapse of the Colony, the cessation of all revenue, and in the end the Colony would not be able to contribute anything at all. The whole of the military charges would then fall on the British taxpayer. It should not be lost sight of that the revenue raised in the Straits is already now about 14 rupees per head as against 3 rupees per head in India. Further taxation of any consequence would be suicidal in any respect.
21. "Assuming that the conditions remain normal," it seems, therefore, that the Colony cannot in the future meet the demand even of 100,000Z.
The results, it seems, as far as hard cash is concerned will be the same whether an equitable basis is fixed, thereby closing the question, or whether the demand is insisted on.
The only difference seems to be this:---
22. If the percentage system or other practicable basis is allowed to the Colony by Her Majesty's Government, content will return, and the Colony will settle down again to ateadiness and harmonious working. Being able to gauge the amounts available for civil purposes, the Colony will by a wise and cautious husbanding of the same be able to proceed in the path of progress, thereby paving the way for the possibility of the future contribution being even larger than the amount now demanded.
23. If on the other hand the demand of 100,0001, and more is persisted in, it will remain hanging over our heads and will create a feeling of hopelessness, paralysing all energies.
Nobody will believe any more in the future of the Colony. Agitators will follow in the wake of the present protesters, with what results it is impossible to say.
The finances of the Colony will be crippled through the very uncertainty of the position. The credit of the Colony will be gone. Goods of foreign manufacture, distributed by competing Colonies, favoured by our mistakes and self-made handicap, will be supplied to neighbouring countries. The downward course will commence to the detriment of the Colony, of the British taxpayer, and of British trade.
SINGAPORE,
14th January, 1895.
A. HÜTTENBACH,
Member Legislative Council,
Straits Settlements.
THE MILITARY CONTRIBUTION.
A great Public Meeting approves the Action of those who have resigned as a Protest against the continued Exaction.
A public meeting was held yesterday afternoon in the Town Hall of Singapore under the auspices of the Straits Settlements Association, to approve the action taken by members of the Legislative Council, Justices of the Peace, and members of the Chinese Advisory Board, in rezigning their offices as a protest against the decision of Her Majesty's Government in regard to the amount of the Military Contribution demanded from the Colony. The meeting was open to all; all of the polyglot com- mmunity of Singapore was invited to attend. As anticipated, there was an exceedingly large attendance, fully representative of all classes; and, in point of numbers, the attendance probably excelled that of the meeting of 1891, called to protest against the same demand. Unfortunately the rain was pouring heavily throughout the whole afternoon, and at the time of meeting. But that circunstance did not tend to keep away many, because the hall was packed in every available part-a significant instance that the whole community were desirour of showing their approval of the action taken, and an evidence of their desire by their presence to protest against the nufair treatment which the Colony is receiving at the hands of Her Majesty's Government.
Amongst those present were:-Messrs. T. Shelford, T. C. Bogaardt, and Seah Liang Seal, ex-M.LC's., who have resigned in consequence of the Military Contri- bution; Mesars. W. Nanson, Stringer, John Anderson, James Millar, Burkinshaw,
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