THE GOVERNOR'S REPORT ON THE BLUE BOOK.
1. The Returns in the Blue Book are arranged under thirty-three headings, of which the first seven relate to Finance. The others are concerned with Public Works, Legislation, Census, Education, Commerce, Shipping, and Industrial resources, Gaol and Criminal statistics, Benevolent and Religious institutions.
Finance.
2. A few weeks after I had assumed the Government of Hongkong, the finance returns of the preceding year (1876) were put before me by the Auditor General. The revenue was certified to be £184,405, and the expenditure, £187,569. The fact that the expenditure showed a disposition to run ahead of the revenue, was not owing to any want of care on the part of my predecessor, but to the circumstance that some of the monthly requisitions in the Survey Department, which the Governor had sanctioned, had been subsequently exceeded without previous authority. The attention of Heads of Departments having been called to the necessity of adhering to the Treasury Instructions, and the ordinary checks on the monthly expenditure having been applied, the annual expenses of Government have since then been kept well within the annual income. For the last three years, the revenue and expenditure have been as follows:-
Revenue.
Expenditure.
1878
£197,424
£189,692
1879
£200,853
£193,097
1880
£222,905
£197,502
The chief items of this revenue consist of the House taxes, the Government Opium monopoly, the Crown rents, Stamps, Postage, taxes on shipping, Licences for the manufacture and sale of spirits, and various fees under the Emigration, Shipping and Registration Ordinances.
3. Sir Hercules Robinson, in a despatch which was laid before the House of Commons in 1865, expressed the opinion that nearly ninety-eight per cent of this revenue was paid by the Chinese inhabitants of Hongkong. I am disposed to think Sir Hercules Robinson rather overrated the amount contributed by the Chinese. It is difficult to determine it with accuracy, but, as far as I can ascertain, the Chinese pay more than ninety per cent of the revenue: and the amount they give to the State is certainly increasing, in proportion, every year. It will, doubtless, before very long, reach the figure estimated by Sir Hercules Robinson.
4. The incidence of this taxation seems at first to be rather unfair, but in an Oriental community it would be difficult, if not impossible, to have it otherwise than it is. Whilst the largest item of revenue,―the house rates (£47,916), falls on householders alike, the second largest item, that from the Opium farm (£42,708), falls on the Chinese only. The foreign-built shipping, a considerable amount of which is now getting into the hands of Her Majesty's Chinese subjects in this Colony, pays the small tax of one cent per ton, whereas the Junks that assist in the commercial movement of Hongkong pay fees for licences, anchorage passes and clearances which amount to nearly two cents a ton. As the emigration with which the Ordinances of the Colony deal is Chinese emigration, the fees in connexion with it fall ultimately on the Chinese.
5. On the other hand, the spirit licences, and some items under the Stamp Ordinance, probably fall, in proportion, more on the small European population than on the native community. But whatever may be the actual incidence of the taxation, it is, on the whole, lighter than the taxation in any other British Colony with which I am acquainted.
6. Hongkong is a free port. We have no income tax. We have no public debt. A moderate surplus (less than one year's income) is now invested in sound Colonial securities. In short, the foreign merchants of Hongkong have the advantage of carrying on their operations with greater freedom, financially and otherwise, as far as the action of the State is concerned, than merchants have, perhaps, in any other part of the world.
7. The increase of the Colonial revenue from £184,405 in 1876 to £222,905 in 1880, is not due to any increase in taxation, but to the general progress and prosperity of the Colony. The house taxes were twelve per cent on the annual valuation in 1876, when they contributed £38,439 to the revenue: they were still at twelve per cent in 1880, when they brought in £48,032 to the revenue. The Opium farm, which was worth to the State £27,500 a year in 1876, was subsequently sold for £42,708 a year.
THE GOVERNOR'S REPORT ON THE BLUE BOOK.
1. The Returns in the Blue Book are arranged under thirty three headings, of which the first seven relate to Finance. The others are concerned with Public Works, Legislation, Census, Education, Commerce, Shipping, and Industrial resources, Gaol and Criminal statistics, Benevolent and Religious. institutions.
Finance.
2. A few weeks after I had assumed the Government of Hongkong, the finance returns of the preceding year (1876) were put before me by the Auditor General. The revenue was certified to be £184,405, and the expenditure, £187,569. The fact that the expenditure showed a disposition to run ahead of the revenue, was not owing to any want of care on the part of my predecessor, but to the circumstance that some of the montlily requisitions in the Survey Department, which the Governor had sanctioned, had been subsequently exceeded without previous authority. The attention of Heads of Departments having been called to the necessity of adhering to the Treasury Instructions, and the ordinary checks on the monthly expenditure having been applied, the annual expenses of Government have since then been kept well within the annual income. For the last three years, the revenue and expenditure have been as follows:-
Recenu.
Expenditure.
1878
£197,424
£189,692
1879
£200,853
£193,097
1880
£222,905
£197,502
The chief items of this revenue consist of the House taxes, the Government Opium monopoly, the Crown rents, Stamps, Postage, taxes on shipping, Licences for the manufacture and sale of spirits, and various fees under the Emigration, Shipping and Registration Ordinances.
3. Sir Hercules Robinson, in a despatch which was laid before the House of Commons in 1865, expressed the opinion that nearly ninety-eight per cent of this revenue was paid by the Chinese in- habitants of Hongkong. I am disposed to think Sir Hercules Robinson rather overrated the amount contributed by the Chinese. It is difficult to determine it with accuracy, but, as far as I can ascertain, the Chinese pay more than ninety per cent of the revenue: and the amount they give to the State is' certainly increasing, in proportion, every year. It will, doubtless, before very long, reach the figure estimated by Sir Hercules Robinson.
4. The incidence of this taxation seems at first to be rather unfair, but in an Oriental community it would be difficult, if not impossible, to have it otherwise than it is. Whilst the largest item of revenue,―the house rates (£47,916), falls on householders alike, the second largest item,that from the Opium farm (£42,708), falls on the Chinese only. The foreign built shipping, a considerable amount of which is now getting into the hands of Her Majesty's Chinese subjects in this Colony, pays the small tax of one cent per ton, whereas the Junks that assist in the commercial movement of Hong- kong pay fees for licences, anchorage passes and clearances which amount to nearly two cents a ton. As the emigration with which the Ordinances of the Colony deal is Chinese emigration, the fees in connexion with it fall ultimately on the Chinese.
5. On the other hand, the spirit licences, and some items under the Stamp Ordinance, probably fall, in proportion, more on the small European population than on the native community. But whatever may be the actual incidence of the taxation, it is, on the whole, lighter than the taxation in any other British Colony with which I am acquainted.
6. Hongkong is a free port. We have no income tax. We have no public debt. A moderate surplus (less than one year's income) is now invested in sound Colonial securities. In short, the foreign merchants of Hongkong have the advantage of carrying on their operations with greater freedom, financially and otherwise, as far as the action of the State is concerned, than merchants have, perhaps, in any other part of the world.
7. The increase of the Colonial revenue from £184,405 in 1876 to £222,905 in 1880, is not due to any increase in taxation, but to the general progress and prosperity of the Colony. The house taxes were twelve per cent on the annual valuation in 1876, when they contributed £38,439 to the revenue: they were still at twelve per cent in 1880, when they brought in £48,032 to the revenue.. The Opium farm, which was worth to the State £27,500 a year in 1876, was subsequently sold for £42,708 a year..
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