++

Gov. 504

4/10

Trs. draft Estimates and copies of a bill

"Appropriation Ordce. 1934".

2.

Gov.

515

13/10

2

of

Trs. Ordce. No. 19 1933.

"Appropriation Ordce"

together with obsons. on the "Estimates".

* See now on 13789/33 which is being Bentong

on separately

Though note of caution was sounded in the

official speeches in the Legislative Council during

the passage of the Estimates and is repeated in

para. 3 of the Governor's despatch (2), the financial

position of the Colony cannot, I think, be regarded

as unsatisfactory. Revenue has fallen owing to

trade depression, and the Governor sees no grounds

forexpecting an improvement next year, but there is

at present no reason to anticipate a fall in the

exchange and the Colony has adequate reserves. It

is proposed in 1934 to draw upon surplus balances to

the extent of just over $1,700,000 (including

$100,000 for the City Hall scheme), but it is

nevertheless estimated that by the end of 1934 the

surplus balances will still exceed 10 million

(excluding the one and a quarter million dollars

received during 1933 for the sale of part of the City

Hall site, the transfer of which amount to a special

fund is under consideration on 13862/33) at which

?

minimum figure we suggested last year that they

should be maintained. The Colon, continues to

finance loan works out of surplus balances.

During

the last two years the expected need for the raising

of further money has continued to recede into the

future, but the question of whether a further loan

is to be raised will no doubt come up for considera-

tion shortly.

By the end of 1933 it is anticipated

that

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