See 9.
10.
gou.
166
Submits obsons. on 9
1.5.38.
26
At the time the Estimates for 1938 were
received, it was anticipated that the financial
year 1937 would end with a deficit of $862,000,
leaving a surplus of assets at the end of the year
of roughly $12 million. As, at that time, over
$10 million would have been advanced from surplus
funds against a further issue of the 1934 Loan and
as it was estimated that the year 1938 would show a
deficit of over $3 million, it seemed clear that the
Colonial Government's margin of available surplus
funds was very narrow, and we accordingly asked the
Governor to consider the possibility of making a
further issue of the Loan.
The Governor now reports that the Sino-
Japanese hostilities have resulted in a temporary
boom in the Colony's finances. The year 1937
yielded a surplus of over $1 million, and the
surplus of assets at the end of the year was over
$ 14 million, instead of the $12 million which had
been anticipated at the time the revised Estimate
was made. Of this sun over $10 million was
advanced against Loan Account, leaving an apparent
free surplus of $3,682,000; but the available
liquid resources amounted to approximately
$ 5 million, owing to the inclusion of sums held on
behalf of special funds which are not at present
likely to be called upon. Further, the Governor
now states that it is unlikely that there will be a
deficit for 1938.
The Colony is, therefore, not in need of
any more actual cash and if the balance of the 1934
Loan were to be raised the proceeds would have to be
re-invested, at least temporarily. In these
circumstances