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253
9.
In view of the foregoing figures I trust you
will agree that even if the authorised Loan of £250,000 is not raised the financial position of the Colony is far from unsatis- -factory.
*
I would remind you that the existing deficit is entirely the result of expenditure out of ordinary revenue on Public Works Extraordinary and of the redemption of subsidiary coin, an item which may disappear in the near future, and that the debt of the Colony owing to the pursuit of the sound policy of not borrowing is only £250,000 in round figures.
The ordinary revenue of the Colony for 1915
will exceed the ordinary expenditure by considerably over $1,000,000. I would add that in the site of the old Supreme Court and Post Office the Goverment possesses land which is valued at
$920,000. It is at present leased for 3 years but I am consider- -ing a scheme for a fresh laying out which will largely enhance
the value and I have no doubt that in 1919 the land can be sold
for over $1,000,000.
Again in connection with the Railway Terminus
at Kowloon the Government acquired land which is worth £1,120,000
excluding considerable areas reserved for Government purposes. I
am considering the offer at auction of some of these lots now and
it may be that they will find a ready sale even this year.
10.
I should like before concluding this Despatch
to refer to the overdraft with the Hongkong and Shanghai Banking
Corporation to which you referred in your telegram of the 16th.
December. As the loan of £250,000 was not available, it became
necessary to overdraw the Government account at the Bank. In
addition to this the monthly withdrawal of $400,000 in subsidiary
coin caused a temperary increase in the overdraft pending the
receipt of permission from the Crown Agents to draw on them on
account of the sales of the subsidiary coin at bullion
value. On the 31st.
December the
overdrafi