J

250

t

question as to the form was subsequently raised eitner by the

Director of Colonial Audit or the Colonial office it did not

occur to the Colonial Government that it was not strictly in accord

-ance with the Financial Instructions.

3.

After the recent criticism by the late Mr. E.

A. Hewett in Legislative Council it was decided to revise the

form for September last so as to show the reimbursement in a foot-

-note as formerly, although it should be noted that Mr. Hawett's

criticism was directed against the non-appearance of the total

loans of the Colony in the list of Liabilities as well as that of

the Sinking Fund among the Assets, and not particularly against

the matter under discussion,

The amount of reimbursement now due since the

repayment or the last instalment of the Fuchang Loan in October

last stands at $2,790,698, being the equivalent of £250,000 to be

raised under authority of the Loan Ordinance No. 1 of 1913, and

the Statement of Estimated Assets and Liabilities should as on the

31st. December, 1915, be modified accordingly to show a debit

balance of $927,865, although the necessary foot-note would have

shown the balance to be a credit one of the amount given in the

published statement.

But I anticipate that when the accounts for

the year 1915 are closed the position will be much more favourable

for it is already found that the revenue exceeds the revised

the

Estimate by $297,000 while expenditure will probably be less than

the revised Estimate by 128,000. The debit balance will therefore

be reduced to about 8505,000.

5.

Turning now to the financial position during the current year it is necessary to revise to some extent the figures which were submitted to the Legislative Council. The Estimates contemplate a deficit of 8473,764, but a sum of only $58,000 has been entered for the maintanance of the prisoners of

war. Their removal from the Colony will, however, result in a reduction in the vote for "other items of expenditure" $90,000 of about $12,000, making a total of $70,000. It is estimated that

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