374
349
expenditure that can profitably be cut down.
Practically every head shows an increase, the total estimate of expenditure being $564,000 in excess of this year's estimate; but the explanations appended cut the ground from under our feet, in most cases.
2. The Revenue for 1902 is estimated at $4,605,965. This is an increase of $347,345 on the revised estimate for 1901, and of $403,377 on the actual revenue of 1900. The increase is general.
In 41681 the Acting Treasurer suggests various means of raising the wind, by which he calculates that an addition of from $485,000 to $868,000 might be made to revenue "almost immediately". Mr. Messer's figures are not criticised; and though these Estimates, for which he is responsible, are a considerable improvement in form on the usual run of H.K. estimates, Mr. Messer is an officer of very junior standing. We should ask that his suggestions may be carefully looked into.
3. As to surplus funds. On 31 December, 1900, the Balance of Assets over Liabilities was $1,100,785. (Of the Assets, $958,000 was subsidiary coin, and $970,000 represented coin in transit.) The estimated surplus of revenue over expenditure in 1901 is $358,295.
I think we should do better to keep this reserve in hand until we have some idea of the probable cost of Messrs Simpson and Chadwick's recommendations. We ought to meet them out of balances, if possible, rather than by means of a loan. Even if a loan is decided on, it may be necessary to draw against surplus funds for some time before the psychological moment arrives for issuing the loan.
The full and careful explanations appended to