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37
The
trade other than through Hong Kong have more than maintained the volume of trade passing through the Colony. In addition, a very large number of refugees have come into the Colony, many of them persons of some wealth. result is an increase of revenue from practically all sources. Such items as tobacco and liquor duties, entertainment and betting taxes and royalties from ferries and buses are directly affected by the increased population of the Colony. Revenue from rates is also increased by the reduction in the number of vacant tenements and it is
anticipated that owing to the increase of rents the total assessment for 1938-1939 will show an increase over that
for 1937-1938.
In the result the year 1937 yielded a surplus of over one million dollars instead of the estimated
deficit of three and a half millions. I enclose a copy
of the statement of assets and liabilities on 31st
December, 1937, from which it will be seen that the surplus
Of this
of assets at that date amounted to $14,002,278. $10,320,267 was advanced against loan account leaving an apparent free surplus of $3,682,011. The available
liquid resources amounted to $3,984,113 cash in the Treasury and joint Colonial Fund and $1,000,000 on fixed deposit locally, a total of approximately $5,000,000. The cash
resources exceed the apparent free surplus because they include sums held on behalf of special funds such as the Government House and City Development Fund, standing at $839,704, which are not at present likely to be called upon.
As to the probable calls upon these resources in 1938 the estimates show an anticipated deficit of
approximately $3,000,000 but revenue for the first two
months has exceeded expectations, based on the estimates,
5.