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Enclosure 1.
155 446
2 JAN C
GAN !
PROTEST BY THE UNDERSIGNED UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL OF HONGKONG WITH REFERENCE TO THE ESTIMATES FOR PUBLIC WORKS EXTRAORDINARY, DURING THE YEAR 1900, AND AGAINST THE REFUSAL OF THE GOVERNMENT TO RECONSIDER AND REMODEL THEM,
1. A careful consideration of the Estimates for the coming year and of the statement to the Council with which His Excellency the Governor introduced the Estimates, suggest one or two points in connection with the financial position of the Colony generally and especially in connection with the Public Works Extraordinary proposed to be executed or commenced in 1900, which appear to require attention and reconsideration.
2. In the first place the Colony is to be congratulated upon the fact that, in spite of the very large and totally unforeseen expenditure incurred in taking over the New Territory, the corrected Estimates for the current year show a probable credit balance on the 31st December next of $400,000, including therein a balance from 1898 of $90,000. The revenue in nearly all its items has shown a surprising elasticity and the amount realised by the sales of land has been exceptionally large. In fact, the greater portion of the estimated surplus is derived from that source. There can be no more convincing proof of the growth and prosperity of the Colony (although other proofs are not wanting) than this increase in the quantity of land sold and the amount of premia realised on such sales.
3. His Excellency the Governor in his opening statement put the credit balance from last year at $90,000 or thereabouts, and the balance at the end of the current year as shown by the corrected Estimates at about $315,000, so making up the estimated total of $400,000. His figures for 1898 are taken apparently from the Treasurer's Financial Returns laid on the table with the draft Estimates, (Paper No.40 of 1899). This paper in its amended form includes two statements of the Assets and Liabilities of the Colony at the end of 1898 differing very considerably from one another and both of which cannot be correct. His Excellency seems to have adopted that dated the 13th March, 1899, and it undoubtedly seems to be the more correct as it contains a statement of the arrears of taxes and Crown rent still outstanding and to be collected on 31st December, 1898; but the paper even as amended appears to be faulty and needs explanation before it can be accepted or even understood. Among the liabilities the Treasurer includes $407,080.76 under the head of "Deposits not available." This amount probably represents monies deposited with the Government in connection with the Praya Reclamation, by suitors in the Supreme Court, and otherwise. The principal items should be stated. It would appear as if these monies have been applied in aid of the general revenue although described as "not available" and as monies to be kept separate.
The statement dated 13th March shows the balance of Assets over Liabilities on 31st December, 1898, to be $213,358.39, whereas the one dated 29th September gives the balance of Assets as $251,056.94, or an increase of $37,698.55. How does this arise?
From the former sum of $213,358.39 there is deducted in the statement $123,334.14, "Balance of 1893 Loan," which, without explanation, is unintelligible. The Loan Accounts are supposed to be kept separate from the general revenue of the Colony. The return does contain a Sinking Fund Account, but no general account showing the present position of the Loan Fund. Has it all been expended? If so, has it all been expended on loan works, i.e., on the works for which it was specifically borrowed, or has any portion of it been taken and applied in aid of the ...