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the Colonial Secretary, the Treasurer and I myself replied. The Appropriation Bill was then read a second time, and passed the third reading on the same day.

4.

Before dealing with the Estimates for next

year I propose briefly to sumarize the financial situation.

When forwarding the Estimates for this year I

anticipated that the balance of Assets over Liabilities on the

31st. December, 1914, would amount to $2,826,375. This estimate was more than realized, the sum actually brought to account being 82,910,473. The revenue for 1916, as revised, is expected to yield $11,380,605 or $27,027 less than was estimated. The expenditure for 1915, which was originally estimated at $12,436,771, is now

expected to fall short of that figure by 858,525. There will there.

-fore be a deficit on the 31st. December, 1915, if these figures

are realised, of £1,047,641, and the balance of Assets on that

date will be reduced to $1,862,832.

As regards the anticipated saving of 258,525

on this year's Estimates, I would refer you to the remarks on the

financial situation in my address to the Council, which explain at

some length how the large economies effected under certain heads

have been almost neutralised by expenditure under other heads.

5.

The estimated revenue for 1916 is 811,409,010

or 81,378 in excess of that approved for the current year. The

principal increases, of which explanations will be found in the

foot-notes, occur in the items Money Changers Licences, $8,340;

Opium Monopoly, $250,000; Stamp Duties, 250,000; Analyses, $6,000;

Sunday Cargo-working Permits, £5,000; Kowloon-Canton Railway,

Goods Through Traffic, 85,000; Lands not Leased, 27.420; Royalty

payable by Hongkong Tramway Company, 86,030; Widows' and Orphans'

Pensions Contributions, 87,200. These increases aggregate

8344,990, and the decreases in various other items amount to

almost

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