2.

was black. Afraid that the public revenue would have to provide

for the deficit the Governor ordered this enquiry to make drastic

When the audit took place about a month ago,

recommendations.

72

there was a surplus of 46000 $ on the year's working, so the

prognostications of the Treasurer over four months were wrong, but

thx he had created the right almosphere. The Finance Committee of

the University which is the Star Chamber of the institution has on

it at present the General Manager of the H.K. Shanghai Bank, a

sub-manager as the Treasurer, and a director. Its influence

therefore in university matters is dominant for there is after that

only the Vice-chancellor whose knowledge of finance is precisely nil,

and the Colonial Treasurer. The same bank has also six members on

the Court but that is a large body. Now the question arises why amI

singled out in this particular report? There are several reasons

I offended the bank some time ago by exercising my right to take my

money out in silver, when the doller was felling to transfer it to

England. The money had been my salary and had been put in t 2/3.

n

-

The dollar dropped to 1/5, though at the time the silver doller

was still selling for 2/- I transferred my account to another bank.

When this committee was appointed I queried its validity. It was

an en uiry imposed by the Governor qua Governor on the University

without any formal approval being sought for from the University

Court or Council. It was merely announce that it would take place.

I enclose the correspondence about that. Again my views are too

liberal for the ruling powers here for I have consistently drawn

attention to the neglect of Education on the primary side, and the

need for higher taxation.

But the chief trouble lies with

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