REPORT ON THE ACCOUNTS FOR THE YEAR, 1937.
1. The Revenue for the year amounted to $33,196,368 and the Expenditure totalled $32,111,222 resulting in a surplus on the year's working of $1,085,146.
The Revenue and Expenditure for the past ten years is shown in a chart which appears herein as Financial Return No. 1.
2. The original estimates provided for a total revenue of $28,760,250 against an expenditure of $32,259,160, forecasting a working deficit of $3,498,910 for the year under review.
3. The accumulated surplus on December 31st, 1937, stood at $14,002,278 compared with $12,917,132 at the close of the previous year.
A Statement of Assets and Liabilities appears as Financial Return No. 2.
4. Revenue. The actual revenue collected during 1937 was $4,436,118 in excess of the estimate. Of this excess $1,210,411 was on account of Duties, all subheads of which showed considerable increases. The most important was $682,203 in respect of Tobacco Duties and was mainly owing to the closing down of North China factories with consequent increased activity in the local tobacco industry.
The abnormal increase in population was responsible for the greater part of the improvement in many items of revenue, particularly import duties on liquor, assessed taxes and opium monopoly. The considerable increase in royalties collected from the various transportation services was entirely due to the influx of refugees from China. A heavy increase in Postal Revenue, $1,204,596 was brought about by several factors—the breakdown of the cable company's services during the fighting in Shanghai diverted considerable business to the Radio Telegraph Office. The expansion of air mail services, increased postage rates, and the phenomenal sales of the Coronation Stamp issue contributed largely to the excess under this head.
A comparison of the revenue with the estimate and with the previous year's revenue appears as Financial Return No. 3. The principal increases are briefly indicated in Financial Return No. 4 and a chart is included as Financial Return No. 5 showing the fluctuations in the various heads of revenue during the past ten years.
5. Expenditure. The expenditure for the year was $147,938 less than the Budget provided. Personal Emoluments amounted to $12,895,932, being $822,984 less than the estimated figure of $13,718,916; chiefly as a result of the Levy on Salaries which operated for the first half of the year.