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The expenditure on the Volunteers, which is entirely borne by the Colony, was $45,554 compared with $45,253 in 1907.

XII.-GENERAL OBSERVATIONS.

The assessment made in July, 1907, for the year 1907-1908 was adopted for the year 1908-1909, the difference in rateable value being the result of interim-assessments and appeals. The rateable value of the whole Colony increased by 0.93%. In the City of Victoria, the Hill District, Shaukiwan, the Hongkong Villages, Mongkoktsui and the Kowloon Villages there was an increase ranging from 0.84% to 2.92%. In Kowloon Point and Yaumati there was a decrease of 1.21% and 1.45% respectively. New Kowloon shewed an increase of 0.77%. Notices of appeal were given against the assessments of 249 tenements with an aggregate rateable value of $452,180. The Court ordered reductions amounting to $36,195.

Throughout the year negotiations were in progress between this Government and the Chinese Authorities both at Canton and at Peking on the subject of the loss and inconvenience caused by the depreciation of the Colony's subsidiary currency owing to the over-issue of small coins by the Mint in Canton, which circulate freely in the Colony at a heavy discount and cause the legal (subsidiary) currency to fall to a nearly corresponding discount. This Government adopted the expedient of withdrawing from circulation $780,000 of subsidiary silver coin and $30,000 of bronze coin. These coins were shipped to London where they were melted down and sold as bullion for £60,501 1s. 4d. and £1,190 1s. 0d. respectively. Up to the close of the year the negotiations with the Chinese Government had not produced any satisfactory result. The average annual loss to Revenue from this source as calculated for the last 3 years has been $184,204, including the loss by demonetization of unissued stocks. The average loss on the same period, which would have been incurred by payment of discount instead of demonetization, was $26,777.

The rate of exchange fell from over 2/- to the dollar at the end of 1907 to an average throughout the year of 1/9.6. This involved considerable loss to Government and disorganised the budget which had been calculated on a basis of 2/- for salaries and 2/1 for other items.

Piracy in the Canton Delta was much less rife than it has been during recent years.

Mr. R. Mansfield, Consul General at Canton, handed over charge of the Consulate to Mr. H. H. Fox on the 1st June.

For some years past the disgraceful custom of abandoning corpses in the streets, in waste places, or in the Harbour had been rife, and all efforts to put a stop to the practice had proved ineffective. During the year an attempt was made to enlist the co-operation of the leading Chinese in the suppression of this revolting custom. Suspicions that the practice was in part the result of infanticide have been disproved. It is due to fear of disinfection for disease. The decision that infant corpses could be brought to the dispensaries, and no questions would be asked, and $1 reward given, was the first effective step. In February, 1908, there was a meeting at the Tung Wa, and I addressed representatives of the Chinese Community at Government House. Street Committees were appointed, and the work was entrusted to the Directors of the Tung Wa Hospital, who found funds, and took over the dispensaries. A dispensary committee was formed and met at the Tung Wa. The actual work was however done by the Presidents and Vice-Presidents of three Sub-Committees with the help of the district watchmen. Three lecturers were appointed, and every house supplied with handbills. Each case was fully investigated. Detectives were employed, photographs (except in the case of children) taken of the corpse, and rewards offered for identification. Government midwives informed the people of the decision that $1 reward would be given for every infant corpse brought to the dispensaries and that no questions would be asked. To obviate post-mortem examinations, licentiates of the Hongkong College of Medicine were allowed to issue death certificates in cases they had attended, and the dispensary doctors sent corpses to the medical officers of the Tung Wa Hospital, who after enquiry reported cause of death. Post-mortem examinations were held, however, on all unidentified corpses. The members of the Street Committees visited the houses and explained the policy of the Government to the Chinese. In 1907 the total number of corpses abandoned was 938. In 1908 the total was (in spite of plague) only 644, the decrease being continuous. Adult corpses, which have formerly been 50 per cent. of the total number, practically ceased to be abandoned. The number of male and female bodies abandoned was about equal.

Mr. H. N. Mody generously offered to present the Colony with the buildings necessary to start a University. His original offer was to give a sum of $150,000 for this purpose

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