$197,424; in 1879, £200,853; in 1880 it reached £222,905. The expenditure for each of these years respectively was, for 1878, £189,692; for 1879, £193,097; for 1880, £197,502. The expenditure was therefore kept, I think prudently, within the revenue. The valuators' returns for ten years past, recently laid before you, show that the valuation of house property fluctuated but little from 1871 to 1876, but that it rose steadily with the influx of Chinese in 1877, and has continued to increase. Hence the house taxes, which were at the same rate (12 per cent.) in 1876 and in 1880, produced in these years respectively, £38,439, and £48,032. The opium farm also rose from £27,500 in 1876 to £42,708 in 1880. The other chief items of our revenue are stamps, postage, taxes on shipping, and certain licences, as well as various fees under the emigration and shipping ordinances. At a first glance, our taxation appears a little unfair, but in an Oriental community like this, I think it would be impossible to have it otherwise than it is. The opium farm falls exclusively on Chinese. On the other hand, the spirit licences, and certain items under the Stamp Ordinance, probably fall more, in proportion to their small numbers, on the Europeans; but, upon the whole, I am of opinion, and I am sure you will agree with me, that we are very lightly taxed. Hongkong is a free port; we have no income tax; we have no public debt, and we have a moderate surplus,-less than one year's income.
For that revenue, which, as I say, has been a growing revenue for some years past, and that without the imposition of any additional taxation-for that revenue, what has the Government done? We have kept up, I think, an efficient Police force, and there has been no stinting of money in those ordinary functions of Government represented by the various services and establishments of the Colony. Whatever has been required for getting the Supreme Court into that working order which the Chief Justice and His Honour the Acting Chief Justice urged over and over again upon successive Governors as being necessary, has now been provided. It has involved a little expense with respect to interpretation and other points. The vote for public instruction is now larger than ever it was: so is the vote for medical and sanitary purposes. I have added a new branch to the Harbour Department, the Surveyorship under our Merchant Shipping Ordinance of 1879. Instead of $700 a year as in 1877, we now spend $10,000 a year in tree planting. In short, I don't think anything absolutely needed for the wants of the Colony has been neglected.
I am bound to say, that during the four years of my Government of the Colony, whenever this Council has met, I have been only too anxious to receive from my honourable friends any suggestions either with respect to prudent retrenchment or to any necessary outlay. And during these four years, there has not occurred one single division in Council. Now, my two honourable friends on my right (the Acting Chief Justice and the Attorney General) have had experience in other Crown Colonies-in Singapore and Jamaica,―and I think they will learn with some surprise and gratification the fact that for four years we have never had a division in this Council.
Perhaps there is some misunderstanding with respect to the functions of this Council. It has been asserted that an unofficial member of the Legislative Council has not the power of initiating anything, and that his position is a peculiar and somewhat discouraging one on that account. But, as a matter of fact, an unofficial member of the Legislative Council has, in that respect, exactly the same powers and privileges as a member of the House of Commons: a member of the Legislative Council can, in fact, initiate any vote or motion he pleases, with the one proviso that he cannot propose the expenditure of money. The same rule applies precisely in the House of Commons; there is no difference whatever; any motion may be made by members of Council in the form prescribed by the rules and regulations, all of which are really based on the orders and procedure of Parliament in England.
Our Legislative Council, as constituted at this moment, represents the community. We have now, and have had for some time past, a Chinese member sitting in this Council Chamber. No one, I am sure, will deny that I was justified in recommending the Queen to appoint a Chinese member on the Legislative Council in a Colony where so much of the commercial life is conducted by the Chinese-where the wealthiest merchants are Chinese-where the Chinese possess so much property-where they are the permanent inhabitants, and where nine-tenths of the Government revenues are contributed by them. We have, I am happy to say, a representative here of the old house of TURNER & Co., and a representative of the house of JARDINE, MATHESON & Co., and the official members of the Council, they also represent something more than the Government; so that, as far as this body is concerned, it has, I think, every requisite a legislative body should possess for the proper conduct of public business. And that is one reason why I regard the progress this Colony has made as natural and safe. It has not been the doing of any one man. It has been brought about, in fact, by the community, and under the watchful eye of the legislature of the Colony.
I may, perhaps, take this opportunity of saying a few words upon a subject which has, no doubt, sometimes attracted your attention, and that is the allegation made that, during the four years of my Government of this Colony, I have too much encouraged the Chinese. Now, I believe that the duty of a Governor in dealing with a community such as I find here, is to avoid what is popularly called encouragement of any body, or of any class, but to simply hold the balance evenly between all men. And that is what I have done. Coming here with a few year's experience, at the other side of the China Sea, of the Government of a Chinese community, I very soon after my arrival was waited on by some Chinese gentlemen of Hongkong, who frankly told me their position in the Colony. They pointed out to me that there were certain restrictions, some laid upon them, others attempted to be laid upon them, to which they objected, and they asked me, at all events, to assist them to this extent,--not to allow