Lo Mar kam
78
HONG KONG LEGISLATIVE COUNCIL.
175
As regards the taxable capacity of the Colony, it seems to me that an important point which requires expert investigation is as to how much of the Colony's wealth is in the hands of the permanent resident, and how much of it is fugitive and can be driven away by burdensome taxation. From the earliest Hansard which, thanks to my Honourable friend, Sir Henry Pollock, happens to be in my posses- sion that for 1906-I notice that the estimated revenue for 1907 was under 51⁄2 million. By 1915 the revenue was nearly doubled. In 1930 it nearly reached the 28 million mark, and from then to 1936 it fluctuated between 28 to 33 millon. The average yearly revenue for the past 10 years works out at 321⁄2 million. I venture to think that no one who has studied the Budget figures of past years can fail to experience a sense of concern and dismay at the colossal rise in the cost of Government, culminating in this year's 40 million dollar Budget, or to ask himself anxiously whether the Colony's expenditure is not reaching, if it has not already over-reached, the Colony's taxable capacity. Those who care to read the 1906 Budget Debate will find it interesting reading. They will find, too, that the slogan "Hong Kong is lightly taxed" was already current in those early days! The estimated revenue for 1907 was $5,202,135.00, which apparently represented a somewhat serious decline on the previous year's revenue. The following quotation from Sir Matthew Nathan's address gives an interesting historical background of the Colony's revenue position, and constitutes not an unworthy guide to us as to how the Colony's financial difficulties should be met in times of adverse trade or economic uncertainty :-
"Before going into the long array of figures which I have on my notes I think it will meet your wishes if I explain generally how it is proposed to meet that decline. There are three methods open to us. Either to raise further loans, or to increase taxation, or to reduce expenditure. I am strongly averse to raising addi- tional loans at the present time. . . . . .I am also averse to increasing taxation. It has been pointed out to me that this colony is very lightly taxed, and I by no means promise that I shall not on some future occasion propose additional imposts, but a time like the present one when trade is bad does not seem a suitable one at which to add to the burdens of traders...... There remains a reduction of expenditure, and that is the method which it is proposed to adopt. We must cut our coat according to our cloth. It must necessarily be a simple garment but I hope when I come presently to try it on you, you will agree with me that it is a fairly serviceable one in which the Colony need not feel ashamed to appear next season. It is somewhat of a tight fit, but if we adhere to the estimates we have framed we shall remain in the same sound financial position at the end of 1907 as I am happy to say we shall be in at the end of 1906.”
As regards comparisons between Great Britain and Hong Kong I submit, Sir, that however flattering it may be to compare the Colony with the Mother Country, the greatest and wealthiest democratic
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