CO882-(3-4) — Page 400

PUBLIC RECORD OFFICE

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LICO. 882

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

Minutes of Court.

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EXTRACTS from the AUDIT REPORT.

SUNGEI UJONG-REVENUE and Expenditure for the Year 1877.

Register of Boats and Balance Sheet. Disbursement Book.

Revenue.

1. I have examined all the Revenue Collectors' books for the year 1877, in use in Sungei Ujong (a list is given in the margin), checked the figures in every book, and compared them, with each other in all cases where the comparison acts as a check of accuracy. It is satisfactory to be able to state that, with the exception of some very trifling errors of addition or calculation, I find them all correct.

Import Book.

Opium Book.

Grants of Land

Dally Export of Duty on Tin.

Register of Mining Licenses

Carts and Carriage Book.

Police Book.

Cash Book.

Journal.

Assessment Book.

Vouchers and papers of 1877.

Commitment Book.

Leneral Accounts.

Ledger.

and

Abstract of Revenue and Expen

ditare.

2. Though I believe the whole of the revenue which should be collected in the year 1877 has been collected and properly brought to account, still the system of accounts hitherto employed I cannot but regard as a very faulty one, liable to abuse, though, as I have stated, I believe so far unabused, whilst it affords an auditor but few oppor tunities of checking the real receipts of the Collectors. I am of opinion that the introduction of at least some simple precautions is absolutely necessary to enable the Resident to Leep a proper control over the Collectors, and to furnish an auditor with the means of satisfactorily examining in future years the accounts of this State, and supplying the Governor with thoroughly trustworthy information as to the financial position and prospects of Sungei Ujong, and the working of the present system, by which the whole of the revenues are collected and expenditure defrayed under the control of the Resident and his subordinates, acting of course under the instructions of the Governor of the Straits Settlements, co-operating with and advising the chief Native authority in the State.

3. Before, however, going into this part of the question, I may state that the revenues of Sungei Ujong for the year 1877 amounted to $97,574 87, the principal sources of revenue being the farms (opium, spirit, salt, &c.), which realized $52,218, and the export duty on tin, which amounted to $37,672 96. The remainder of the revenue was raised from the taxation of certain imported articles of consumption, a small land tax, an assessment of houses and conveyances, judicial fines and fees, &c.

The estimated revenue for the year 1877 was $104,900, and the actual amount received therefore was $7,325 13 short of the estimate.

The deficiency was almost entirely due to the loss on the amount estimated to be received from the farms, and that loss was occasioned first by abolishing the pig farm on the first of July 1877, and secondly by the abolition of the opium farm from the same date. Both these changes were made on the earnest representations of the leading Chinese in Sungei Ujong, who declared that the opium farmers, having tendered for that farm at a higher rate ($3,000 a month) than was justified by circumstances, were retailing the drug at extraordinary prices, and thereby driving the Chinese labouring classes from the country.

Accordingly, when the farm expired on the 30th of June 1877, it was not relet, but an import duty on opium, at the rate of $240 a chest, was established in its place, whilst the export duty on tin was raised from $5 a bhara (400 lbs.) to #6 a bhara.

5. It was expected that these measures would produce a re-influx of Chinese into the country, but the anticipation has not, so far, been realized, probably owing to the continued fall in the market price of tin, and the bad crops and dearness of rice which have prevailed in the last two years.

A small duty was also placed on the importation of pige.

Though the revenue has fallen since the stoppage of the opium farm, I do not think that this change has caused the decrease; the real reason is clearly the reduction of the Chinese mining population, who could not find advancers willing to employ them at the present low price of tin.

I believe the abolition of the farm, and the payment of an import duty on opium instead, is sound policy, and that the interests of the State will best be served by continuing the present system. The rate of the import duty on opium, viz., #6 a ball, seems high.

6. The only other items that showed a deficiency on the estimate were land revenue and import trade duty, and in both cases the same explanation applies, viz., the decrease in the population, occasioning fewer applications for land than were anticipated, and ▲ smaller consumption of tax-paying imports.

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7. On the other items of revenue the estimates were exceeded, the export of tin having been apparently under-estimated, whilst the taxes on conveyances, fines and fees, &c., had, when the estimates were submitted, been only lately imposed, and it was therefore difficult to accurately foresee what annual revenue might be expected from

them.

8. On the whole, looking to the fact that two thirds of the population of Sungei Ujong are Chinese, who almost alone produce tin and consume opium, the two greatest sources of revenue, and that when, as now, the price of tin is so low as to stop many nines, and thus reduce the number of miners, most of whom being out of work will leave the country, I think the revenue of Sungei Ujong for-the year 1877 was satisfactory, as showing an amount reasonably to be expected under the circumstances, and but slightly in arrear of the amount received in 1876 under more favourable conditions. Since my arrival I have several times heard it stated by Natives that many who had made a good living by catering for the troops formerly stationed here, had left the country since they were withdrawn. There is no doubt that the presence of a body of English soldiers in a small place like this would make a considerable difference in the amount of many articles of import, both consumed by them and by those to whom their presence would give employment.

9. I have prepared and attach concise statements showing the actual revenues received under each month of the year 1877, with a comparative statement in abstract, showing the estimates and amounts actually realized for the same period.

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Expenditure.

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12. The expenditure in Sungei Ujong is incurred chiefly on the foilowing items: allowances to Chiefs, public works, establishments, including police, and liquidation of debt. The total expenditure for the year 1877 amounted to $97,388 27 cents; of this sum $20,400 was expended in allowances to Chiefs, #24,118 79 in public works, $25,591 91 on salaries, including the police establishment, but not including the prison and hospital, or postal officers, who would appear properly to belong to establishments," and 812,943 93 on liquidation of debt. ~The other items are sinall, the largest being #7,357 expended on miscellaneous account. The estimated expenditure for the same period. ainounted to $114,872, but it was passed on the supposition that the revenue had been under-estimated, and also on the understanding that works would be carried out, and repayment of debt made only in proportion to the available revenue.

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In a State like Sungei Ujong, where there is no treasurer, and I think no absolute need for one, it seems necessary that the Resident, who virtually acts as treasurer, should, also make the payments on his own responsibility.

The system is one to be avoided if possible, but I see no present remedy for it here, where the revenue could hardly afford to pay an officer of the class needed for this duty. Safeguards can, however, and should be provided, and with the least delay. At present the sanctioned estimates exercise the only control over the Resident's expenditure, but that is no doubt a satisfactory one as far as it goes. I have therefore carefully compared every item of the actual expenditure with the approved estimates, and endeavoured as far as possible to ascertain the cause of all differences between the two, and the explanations with which I have been furnished appear to me satisfactory. This, however, is by no means all that is needed, and as a means of improving the present *ystem I would suggest the following.

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In conclusion I may be allowed to remark that the Resident, Captain Murray, appears to me to practise strict economy in disbursing the revenues of Sungei Ujong. The officers of every department are as few as possible, and the salaries are not high,—ind ed the total cost of the establishments sufficiently proves this.

The police are the only exception; they are well pai1, but I understand they are also efficient and trustworthy.

15. The system of farming the revenues is largely employed in Sungei Ujong, and though very much may be said in favour of the plan, removing as it does the necessity for large establishments, and the amount of trouble it saves, still many sound arguments may be advanced against a continuance of some farms at least.

The oil and salt farm appears to me the most objectionable, one which places in the hands of an individual the monopoly of necessities of life; the result is that, I believe, the farmer sells salt in Sungei Ujong at three times the price for which it is purchased in Malacca.

The question is one on which the chief Native authority and the Resident might well consult the leading Natives, both Malay and Chinese, and the result of such

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