of

that the position at

2. With reference to the balance of the table

Faculty of Arts

7th par of this Report,

Liabilities show that the

unspent balance of the Loan

of 1895

at the end

amounted to nearly $200,000 more

than the balance of Assets over

Liabilities. In other words, the

Colony has in effect been spending

on general purposes part of the

Loan money raised for specified

Public Works, which have not

yet been completed, and there was

really a deficit.

This arose from extraordinary

expenditure caused by the

resumption and demolition of

Taipingshan, and the amount

of $175,000 will, I trust, be recovered

before long

mostly by the resale of

Taipingshan building sites. But in the meantime, expenditure should be watched very carefully.

3. I take this opportunity of reminding you that, in future, the Annual Estimates should, as laid

down in Paragraph 35 of the 'Instructions for the preparation of Colonial Estimates', enclosed in

Lord Knutsford's Circular of the

4th February, 1889, be accompanied

by a table of the Assets

and Liabilities of the Colony for the

past year, and one, partly estimated,

for the current year, and especially to the

account of compensation paid for the

and the statement of

the Assets and Liabilities

at the close of the current year.

4. With regard

to the

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