The assets are at present mainly,

hypothetical, a consist of an intention to raise

Loone

NISA.

ther Caine in his para. & seems to refer only to The was with Germany: that be- tween Ching & Japan has been

wift- out-ofac-

NYSA

count.

блог

much

mare

-$15,510,395 (of which $4,370,395 will be against the future Loan Dunless The remainder of the 1934 Loon is raised. # He has now done so, pp. have been sent

on.

NISA.

x

1?

4

the memorandum states that, even after allowing for

the extra three months covered by the Estimates, this

figure of $50,188,178 is higher than any on record;

but that if the Estimates are realised the surplus of

assets will remain on the 31st March, 1941, substan-

tially above the figure of $10,000,000 which has been

regarded as a proper reserve.

"Increases in expen-

diture, where they are not either automatic or forced

upon the Government by the current exceptional cir-

cumstances, are no more than an attempt to meet needs

which have long been recognised as urgent. Recurrent

expenditure for the 15 months period amounts to

$44,521,304, and is within the ordinary recurrent

revenue estimate for the same period: on this

estimate recurrent expenditure amounts in fact to

87.6% of revenue. In the present uncertain circum-

stances this figure is, I think, high enough. More-

t over, if as a result of the war' in the East there

should prove to be any serious permanent decline in

the Colony's trade, it may be that the figure of

$10,000,000 quoted above will need some revision; but

I doubt whether there is any case for immediate con-

cern on this score.

It is anticipated that by 31.3.1941 surplus

818

balances will amount to $13,300,000, of which

$

$11,140,000 will have been advanced against Loan

Account capiasă. In his telegram No. 373 of

October 28th the Governor has announced his intention

#

of telegraphing shortly on the subject of the issue

of the balance of the 1934 local loan, which would

have the effect of making surplus balances fully

liquid.

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