1
CIRCULAR.
COPY.
12 Nov. (Received 16 Nov.) Colonial Secretary,
644.
Enclosure.
2.
After ascertaining the views of the contributors to the Widows and Orphans' Pension Fund on the proposal that the Government should take over the Fund we find:-
1. That a large majority of members is strongly opposed to the Fund being taken over by the Government.
2. With regard to this finding it is argued that the valuation of Fund as it existed on 31st December, 1900, showed that the gross liabilities of the Fund then amounted to $232,337, that there was a surplus of between 4% and 5% of the liabilities and that therefore the Fund was so far in a sound financial position: that although the present liabilities of the Fund could not be determined until a further valuation took place, the balance to credit of the Fund on 31st December, 1908, amounting to $272,022 appeared to indicate that the Fund was maintaining a position of solvency: that the financial position of the Fund as disclosed by the next valuation or by some further valuation might justify an increase in the benefits derived from the Fund and that the benefits now offered were not sufficient compensation for the sacrifice of possible prospective benefits and for the loss of management.
As regards the contention that the Government made in effect a large contribution to the Fund by agreeing to pay interest at the high rate of 3% on the monies belonging to the Fund deposited with it, we would point out that the rate of interest charged on loans against first-class security by the Hongkong and Shanghai Banking Corporation since 1901 has been:-