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member, will, of course, be sent to the Secretary of State in due course. Personally, I ain bound to say frankly that I do not fully share the views which the hon. wember repre- senting the Chamber of Commerce las expresă- ed, because I think it is the duty of a British colony to support British policy, and I do not think it is dignified for a colony of this size and magnitude to be suing in forma pauperis for additional grants. First, let us look at the facts. The first is as regards the general trade in opium. The country of export and the country of import together agree to restrict a certain line of goods. The middleman naturally suffers. He has had ten years notice. Surely be exporter and importer are perfectly free agents, and if pressure is brought to bear on the exporter it is for him to protest, and not the middleman as to the restrictions on the import of uncertified opium. The average amount we received for the licence of opium divana was $1,755, and the somewhat reduced tender we received from the Opium Farm this year was ascribed to the clos- ing of the divans, though I think there may probably bave been other causes as well. The Imperial Government has for three years given us almost exactly balf of our loss. This year the amount we lost only amounts to $11,764. I do not consider that ungenerous. If, later on, further restrictions are imposed on this Colony and the Imperial Government does not give any further asssistance, it will be time enough thes for us to raise an outery. I can recollect hearing in a previous debate more than one member say- ing that this Colony supported the policy of the Imperial Government. I think the last point 1 bavo to deal with is the suggestion by the hon. member representing the Chamber of Commerce that insurance companies should pay probato on life insurance policies cashed in the Colony as part of an estate. That suggestion will re- ceive the most careful consideration. I see on the face of it no reason against it, and I can assure the hon, member I am most grateful for any suggestion that will tend to increase the revenue without bardship. I am tempted with the unofficial members to spend more time on the front pages of the estimates. The bon. membor suggested expenditure on wireless, education, police, nallalis, lucatics, public works, and on various other subjects. I echo his desires in all of them, and can assure the Council specially on behalf of the Government that it is my poverty and not my will which consents to the estimates as they stand. The hou. member also emphasised strongly the fact that times are hard and that there is no money to be spent on public works unless it is demonstrated that they are urgently needed, There is a modest contribution on one side, and large items on the other. Of course, if the Col- ony demands increased expenditure, especially on the subject of wireless, and an increas on public works, it will be necessary to raise more taxes. That perhaps can be done without great hardship by adding a little to the rates. I have often been tempted to do so in the past three. yours, but the property market has been so bad that I refrained. Still, we have it in reserve in cases of emergency. I said, and it has been repeated by speakers, that the financial outlook is not bad, and I congratu lated the Colony on the fact that the revenus had doubled in the last twelve years. It may be interesting, before I sit down, as a last observation, if I note the fact that that increase has been maintained in spite of a loss on opium of $134,272. On subsidiary ooinage for the ten years prior to 1906 we had an aver- age steady income of $129 000 a year. That during the last three years has been converted into a deficit of $70,000. On tand sales for the 16 yours prior to 1907 we had a steady revenue

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of $313,561, and we have any entered on the. estimates a sum of only $100,000. That is to say that on those three items alone we have had to face an annual loss during the last three years of 43 lakhs. On the other hand, during the last two years we have bad some very heavy resumptions, partly in land for the railway, and we have paid out of the revenus sums ainounting in all to $734,758. I hope now that we are turning the corner I am not in a position to dieruss with the hon. member the prospect of trade, but so far as the Colonial budget is concerned it appears to me that the prospects are not bad. "If they im- prove, as I hope they may, we may trust to be in a position to undertake some of the mere important of the items which have been fore- shadowed this afteraoon as urgent and neces sary public works. (Applause.)

The motion was spreed to.

The COLONIAI. SECRETARy then moved that the Bill be referred to the Finance ommittee.

The COLONIAL TREASURER seconded, and the Council adjourned while the Finance Committee considered the Bill.

Ou Council resuming,

The COLONIAL SECRETARY reported that the Appropriation Bill had been considered by the Finance Committee and adopted with ono clerics) amendment He moved that the Bill be read a third time.

The COLONIAL TREASURER seconded, and the Bill was read a third time and passed.

His EXCELLENCY-Council will adjourn

until this day week.

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