1927-09-02 — Page 11

FRIDAY, SEPTEMBER 2, 1927.

COLONY'S BUDGET.

General Review By H.E. The Governor.

PRE-EMINENCE AS A PORT.

Last Year's Revenue Below Expectations.

"CA' CANNY

POLICY FOR 1928,

Other than increases in fees at Government Schools and for steamship and steam launch surveys, there are no changes contem- plated in the revenue for next year, it was indicated by the Colonial Secretary, in introducing the Budget at yesterday's meeting of the Legislative Council.

The meeting was noteworthy for a masterly review of the Colony's finances over a period of thirty years, by H.E. the Governor, in which the importance of Hong Kong as a port was particularly stressed and figures given showing that Hong Kong retained her

position as one of the world's premier ports.

Among items referred to in the introduction of the Budget was the shortage in revenue last year compared with expectations, the liquor taxes being considerably below amount budgetted for and opium revenue and stamp taxes being considerably down.

The need for tackling the malaria problem of the Colony on a 'more comprehensive scale was stressed and it was indicated that a trained malaria research officer was to be specially appointed.

Economy is the watchword of the budget and many works are being held up. Others are being financed by the loan which the 'Government is about to float.

ECONOMY THE WATCHWORD.

The Governor's Speech.

THE CHINA MAIL.

$ 263,960

666,949

1,634,098

land-sales.

1919

1920

1921

1922

2,721,804

1923

*3,486,797

1924

1925 1926

among us.

1,909,286 570,243 286,342

over

11

possible,

The Trade Loan.

conservative lines (c) The only other loan now Economy has been our watchword

The Halt in Development.

No Extra Taxes,

followed a land-boom in Hong Chinese syndicate, there has thirty years by means of its an- Kong and Kowloon: and the re- since 1914 been a Government (nual revenue, and. without re- cent statistics of the revenue of Monopoly, which is run with a course to borrowing, is unexcel-outstanding is the Trade Loan, in framing it, and however much this Colony from land-sales are view to control of the traffic led in any part of the British raised in 1925 to alleviate com- we may have wished to proceed so significant that I give them rather than to profit.

Empire. In 1893 the Colony mercial difficulties due to the with eminently desirable works, in full:-

Therefore, in order to arrive raised a loan of £200,000 at 31% anti-British boycott. Sums total-we have decided that for the pre- Revenue from

at'a just comparison, it is neces- per cent. interest and spent itling $15,624,688 were granted sent we must cut our cont ac- sary to deduct from last year's chiefly on water-works and on under this scheme and nearly a cording to our cloth, and I am opium revenue the cost of manu- resuming insanitary properties third of this total has already afraid it has resulted in a some- facture, namely $690,913; and at Tai-pin-shan. By 1898 the been repaid. the remaining $2,140,392 can whole of this lean had been ex-outstanding is $10,936,598. We with our policy of maintaining The amount now what tight fit. In accordance then properly be compared with pended. Since then all public have thus been able to repay our estate and a very fine estate' the net revenue of $286,000 works in the Colony, both ordin- £680,000 of the original loan of it is at the highest possible effi- derived by this Government from ary and extraordinary, have been £1,800,000, which was floated infciency we have left our Adminis opium in 1897.. So it results paid for from current revenue, London to finance the scheme;trative and Protective Services at that the Colony's opium revenue with the exception of the con- and, as we recover money from full strength, and have even in- back again at the pre-boom it was 10.6 per cent., and the which was financed by a sterling The interest paid by local bor-Accounting Staffs, in the Har We were, therefore, last year our total income, while in 1897 of the Kowloon-Canton Railway, reduction of our sterling liability. ticulars e.g. in the Clerical and last year was 10.1 per cent. of struction of the British section local borrowers, it is applied to creased them in some minor par- figures of 1919: but at the height apparent of the boom, during 1923, the vanishes.

.relative increase loan raised in 1906. It is worth rowers more than covers the in-bour. Police and Medical Depart- land sales alone than the amount hibit the consumption of opium means that the whole of the de- therefore throws no burden on crease for education. a matter of Morcover, this Gov while to pause a minute and to terest due by this Government ments and in the Defence Corps: Colony derived more money from ernment is very willing to pro-reflect what this means. It in respect of the loan, which and we have allowed a small in- of its total annual revenue prior in the Colony and to forego ita velopment in the Kowloon penin- the general taxpayer." to the beginning of this century. revenue from this source as soon, sula has been paid for from

great importance, and in Public At the opening of this year, Works Recurrent Votes for main The Recent Boycott

as the production and consump-current revenue. The land-boom was already on tion of opium in China are sup

in spite of heavy expenditure on tenance. There is a reduction of This development has been extraordinary public works and nearly $32,000 in Public Works the decline, when Bolshevik in-pressed. Until then prohibition nothing less than the transforma- notwithstanding the anti-British Department trigue, launched against this is not a practical propositión in tion of a rural district into

Personal Emolu- aboycott, the Colony still had a ments. After providing for the Colony the anti-British boycott Hong Kong, and all we can do large modern town, where in surplus balance of $3,486,290, of full maintenance of all the essen which began in June, 1925. is interesting in retrospect to to make opium a luxury and yet that a million or more persons can be regarded as liquid assets certain sum of money for Public It is to keep the price high enough years to come it is not unlikely which a sum of about $1,400,000 tial services we were left with a observe how little injury that not so high as further to encour-will reside. This town has been realisable for current expendi- first items to be provided for were Works Extraordinary and the boycott did to Hong Kong. Inage smuggling.

provided witn an ample water ture. It is a splendid record and one way it even did good, for it Colony's Population. united the Chinese and European

supply, with a splendid rond may well inspire us with con- those works in progress which communities of this Colony, as of the Colony's population, it is age, with a hospital, with fine who talk wildly of making Hong small sum of money left after pro- Turning now to the statistics system, with drainage and sewer-fidence and give pause to those could not be abandoned or delay- ed without serious loss. The they had never been united be-necessary first of all to observe police stations fore, in a fixed determination to that these figures have by no Shamshuipo and Kowloon City island" It was before the Treaty Vision had been made for these

at Yaumati, Kong once again "the barren. destroy the menace of Bolshevism means the same degree of ac

and with a, breakwater and of Nanking.

works has been devoted to some and to root out communism from curacy as the financial returns. typhoon shelter at Mongkoktsui. Centlemen, we have no inten-works which are awaiting atten- of the most urgent of the minor I venture to believe There was a census in 1901, in All public works in the New Ter-tion of calling any halt in the that the same determination now 1911 and 1921: but for the inter-ritories, except the railway, have development of Hong Kong. On

tion. animates the Government of the vening years the total civil popu- been paid for out of current re- the contrary, we have it in mind Kuangtung Province and I hope,lation is only an estimate based venue.

Ia broad outline this

It would, of course, be possible therefore, that it may not be long upon the excess of births

means that, without raising any

to make further progress by con- to increase taxation and so to before the old spirit of friendship deaths and of immigration over loan, we have made a detailed structing an aerodome, which will raise sufficient money to pay for junks was 20,983,190 tons and and co-operation will again pre-emigration. Towards the end of cadastral and contour survey of enable us to participate in the some of the works we have felt of this total 54 per cent, was vail between Hong Kong and an inter-censal period. these the New Territories, showing mercial aviation,

world-wide development of com- obliged to postpone. British. Therefore, during these Canton to our mutual advan- figures are apt to be wide of the every paddy field and thirty years the Colony's revenue tage.

by further would be unwise to lay additional increased more than eight-fold,

mark, and this fact no doubt ac-

house contained therein; improving our water supply to burdens on the community just In considering the stability of counts for the sharp rises

have in

built the we meet the needs of our increas-when trade is beginning to pick trebled, and its shipping engaged course, necessary to examine the vious estimates were suddenly

Road and the

Taiping population and by dredging up. It must be our first duty to in foreign trade, exclusive of principal sources from which corrected by actual enumeration. across to Shataukok:

via the harbour, where necessary, foster that recovery by every junks, was more than doubled, our revenue is derived, and in The full figures are given in the erected all the police stations and of colonists, who will benent to which I shall refer later it is But we means in our power. Conse- This is a wonderful record and this respect also a comparison sessional paper No. 4 of 1927, to public buildings in the New Ter- from the schemes now initiated, not proposed to alter any of the we have thank that future generations quently with two small exceptions of our financial position, to men- the remarkable continuity of the between the years 1807 sure the rate of colonial pro- progress made is shown in

and which I have already referred. ritories; we have extended the ought to share a 1926 is. full of interest. development, and sessional paper which has to-day a comparison has been made in are

Such The figures for the census years throughout the Territories; we soon to raise a loan by means possibility of proceeding with

Government telephone system cost.

with us in the existing sources of revenue, We thereby to get an insight (if ten laid on the table... detail in the sessional paper to 1901 total civil population 290,124 have made the Shamshuipo re- of which to finance these works of development by means of We propose, therefore, have not, however, overlooked the possible) into what the coming years have in store for

The revenue increased steadily which I have already referred. I 1911 us.

27,035,011 in 1906. Then there the chief items and my task is

464,277 clamation and materially assist schemes; and if, as I for one a loan and I shall at a later point from $2,086,014 in 1897 to need, therefore, only deal with 1921

688,680 ed in the Kowloon Tong Develop-fully expect, the future progress move the first reading of a Bill Consequently the rate of in- ment Scheme.

in our proceedings this afternoon was a brief set-buck, for the re- simplified by the fact that of last crease in the population during when the

of Hong Kong is such as to 280 and in 1908 It fell to cent. was derived from no more and during the second decade 47 venue in 1907 was only $6,602,- year's total revenue 77.7 per the first decade was 60 per cent.

Hong Kong Development. rival its progress in the past, authorising the provision for a the burden of the interest and loan of $5,000,000 to carry out the $6,104,207. Thenceforward the than fifteen sources, the figures per cent. increase was again continuous for which I have tabulated for middle of an inter-censal period ed a system of first class motor will not weigh heavily on the Harbour Dredging and the Col-

We, are now in the Island itself we have construct-

engungsinking fund on the new load Shing Mun Water Scheme, the until in 1918 the revenue collect-convenience's sake side by side and it is difficult to say what roads. We have built the mag- lowed another set-back, the re- the year 1897. ed was $18,665.248. There fol- with the corresponding figures for degree of reliance can be placed nificent Tytamtuk waterworks.

on the estimate of 874,420 souls We have participated in the The stability of our financial however, that nearly $2,000,000 as the total civil population of original Praya Reclamation and position has been amply tested of this amount is required to pay 3,636,668 the year 1926. But it is certain the Praya East reclamation. by the events of the past thirty back to our balances sums al- that our population is larger now We have done much drainage that period the Boxer year wected to be available before the 2,928,389

At the beginning of ready expended on the water- than in 1921, and I shall be much and harbour dredging work. We

works scheme. This sum is ex- 2,831,305

surprised if the 1931 census does have built the Wireless Station came and went without any end of this year and is duly taken 1,835,345

not again reveal a very appre-at Cape d'Aguilar, the Blake Fier check to the Colony's progress. into account in considering the 1,186,313

ciable increase in the Colony's and the Queen's Pier. We have 1904-5 did not disturb local de money available for expenditure

The Russo-Japanese 698.407

population:

also erected a large number of velopment in Hong Kong. Even Harbour Development.

excellent and spacious buildings, the Chinese Revolution of 1911,

Financial Position. It is, of course, the harbour of chief among which are 538,045 Hong Kong and its shipping Supreme Court, the Post Office 1914-18, and succeeded by dis- tails of the budget I propose to

followed by the Great War of

Before proceeding with the de- 471,679 which has made the greatness of Building with the Government astrous years of civil war 393,898 Hong Kong. In this respect also offices therein, the Fire Brigade China, continuing to this day,

In deal briefly with the general fin- ancial position of the Colony, and 286,342 the progress achieved during the Station with the Government has not impeded the advance of in this connection I would ask past thirty years is wonderful. Offices therein, the King's College, this Colony, which finds itself Honourable Members to refer to 247,130 and shows a remarkable con- the Victoria Hospital extension, stronger now than when the my remarks when introducing the

tinuity. In 1897 the total num- the Bacteriological Institute, the cataclysm: began.

We have, Supplementary Supply Bill for 237,444 trade entered and cleared at this Magistracy, the Harbour Office into the future with perfect of $3,486,290, of which we re- 240,156 ber of ships engaged in foreign Central Police Station, the new therefore, every right to look 1026 on 23rd June last. We started this year with a Surplus Balance 232,594 port other than junks was 0,944 and the Western Market.

The confidence. This Colony is a with a total displacement of donation of £250,000 towards the marvellous exemplification of the arded $1,400,000 as liquid assets. .16,428,770 12,124,599 tons., Statistics of cost of the Imperial Naval Base results which can be achieved $1,307,805 to be met from the We budgetted for a deficit of the total tonnage of all kinds en-/at Singapore was also made with when Britons and Chinese col-surplus balance. The Estimates

H.E. The Governor said Honourable Members of the Legislative

road

every

Council, When its population was more than our financial position it is, of 1911 and 1921, when the pre Castle Penk, to Fanling and to a greater depth.

framing the Colony's budget for

a future year, it is always wise

to look back over the past, in

order to estimate the stability

gress and

uch retrospect is valuable even

- in normal times; but, when

times are abnormal,

Colony has been subjected to

special storm and strain, when

Chins of which Hong Kong is

geographically speaking a part

has been swept by Bolshevism

and devastated by civil war, and when an end of the chaos and anarchy now unhappily pre- valent in the Eighteen Provinces

Heads of Revenue.

venue för 1919 being $16,524,974, for 1920 being $14,689,671 and Assessed taxes for 1921 being $17,728,131. Stamp duties is not yet in sight, retrospect Thereafter the revenue suddenly Opium monopoly becomes essential and must be carried further into the past leaped up again, reaching- the Tobacco duties than usual. On this occasion, Colony's record, namely $24,783,- Liquor duties

Since then there Postage therefore, as a preface to the in- 762, in 1923, troduction of next year's budget has been another decline; but Crown rent of leased by the Colonial Secretary, I even so the revenue collected last

land (including the was $21,131,581, appre- year propose briefly to review the

New Territories) Colony's financial history for the ciably more than in any year of Railway. past thirty years, from 1897 to the Colony's history prior to Water supply 1926, both years included.

Chronologists reckon thirty

Three Set-Backs. years to be a generation, and the The Council will see that Kowloon West Ferry thirty years in question do in during the thirty years under licence fact coincide with the service in review there has thrice been a Carriage, chair, etc., Hong Kong of several off-set-back in the steady expansion licences eial members now seated at of the colonial revenue, the first Interest this Council table. They coin- in 1907-8, the second in 1919-21, Markets

1922.

while the third is being experi- enced at the present time.

On

the first of these occasions the

Liquor licences Land sales

Total

ex-Liquor duties

1926.

664,105

do. do.

Meanwhile

1897. tered and cleared are unfortun-out recourse to borrowing. 429,186 ately not available for that year;

252,216

286,000

268,616

67,186 224,500

cide very nearly with the period of my own experience of Hong Kong: and there are also un- official members of this Council trouble was due to trade de- Heads of Revenue. who have had personal know- pression consequent on over. Assessed taxes ledge of Hong Kong through- spiculation in 1904, followed in Stamp duties out these years. I have, 1905 by the boycott of American Opium monopoly however, chosen this period goods in China as a protest Tobacco duties mainly for three other reasons, against the United States' the first being that it is practi- cluaion law. Imports to, and ex- Postage cally co-extensive with the time ports from, China fell off. More- Crown rent of leased during which the New Terri- over, the reduction of the British

lands (including the tories have formed part of the fleet in China, which took place

New Territories) Colony, the second being that at this time, adversely affected Railway.. 1900 was the Boxer year and Hong Kong in many ways, espe

Water supply that useful lessons may be drawn cially by a decrease in the re- Liquor licences from a comparison of conditions pairing and docking of ships. Land sales in the Colony then and now, and The general trade depression Kowloon West Ferry the third being that at the com- continued in 1906, when there

licence mencement of this period our were heavy losses through the Carriage, chair, etc.,. 1893 loan had been fully expend fall in price of Indian yarn,

and that since then the while shares in local undertak Interest Colony's development has been ings much depreciated in value. Markets financed almost entirely from It was accentuated towards the annual revenue.

end of 1907 by world-wide re- striction of commerce following upon

financial crisis in Thirty years ago, on Jan-America. Shipping in particu

Ports. uary 1, 1897, the Colony's sur-lar suffered and the same trouble tories. plus balances amounted to continued in 1908. Thereafter

Hong Kong $548,964: The revenue of the a gradual improvement began nor was there a Kowloon West New York

In 1897 there was no railway, London Colony collected during 1897 was both in trade and in shipping. Ferry. Liquor duties were first $2,686,914 and the expenditure and this was at once reflected in imposed in 1909 and tobacco was $2,641,409. The total civil an improved collection of re-duties in 1916. So these four

venue in Hong Kong.

sources of revenue The second set-back was dur-exist in 1897. Nevertheless London"

did not Hong Kong

ed

Thirty Years Ago, ··

licences

Total

Opium Revenue, -Exclusive of New Terri

tons.

1924.

all kinds.

66,731,077

Colony's Loans.

the

re

is

sum-

community.

years.

Stable Finances.

■

War of

But it

ony's share of the Kai Tak Aero-

drome. It must be remembered,

next year.

laborate in the development of a of Revenue and Expenditure for country.

Such collaboration has the current year have been care-- done wonders for the Far East fully revised and are shown on

an years gone by and I am quite pages 6 and 12 of the draft sure that the future holds even Estimates now in Honourable better things in store. *

Budget Introduced.

Members' hands.

It will be seen that we anti- cipate a shortfall of revenue of nearly $500,000 and an under

but in 1902, the first year in

The present position with which these figures were record- ed, a total of 21,333,568 tons of gard to the Colony's loans shipping of all kinds entered and satisfactory and can be cleared in Hong Kong. By 1924 marised in a few words. the total tonnage of all kinda, en- Government raised a 4 per cent. (a) In 1887 the Hong Kong tered and cleared, had reached loan of £200,000 for the purpose 241,798 the record figure of 56,781,077 of constructing various public

tons. In that year 30,240 ships works.

The budget was introduced by expenditure of some $730,000. Of this loan a sum of the Colonial Secretary, the Hon. Since the figures were printed it 110,047 engaged in foreign trade other £60,000 had been repaid by 1898 Mr. W. T. Southors, who said in has been decided to charge to re- than junks entered and cleared and the balance, namely £140,000, part: I rise to move the first venue instead of to the loan the at Hong Kong, and their aggre- was in that year converted into reading of a Bill. intituled "an cost of the old site of the Dioce- gate displacement waa 35,471,671 31 per cent, inscribed stock and Ordinance to apply a sum not ex-san Boys' School, viz. $258,500. It is interesting to com- amalgamated with the additional ceeding seventeen million four which will reduce our under ex- pare the shipping: statistics of loan of £200,000 then raised. hundred and fifty thousand one penditure of $476,544, and leave 43,323 London and New York for that When, in 1906, the Hong Kong hundred and three dollars to the us with an estimate deficit on this 4,576 year. The details are given in Government floated a further 31% Public Service of the year 1928." year's working of $1,302,257 to 70,519 essional paper No. 4 of 1927 per cent. loan for the construc- I would once again remind Hon. be met from our estimated liquid but the result can be shown at a tion of the British Section of ourable Members that the total balance of $1,400,000. We might 1,997,867 glance as follows.

Kowloon-Canton Railway this estimated expenditure as shown therefore have expected that we loan also was amalgamated within the printed estimates exceeds should have to commence next Total tonnage of the Colony's previous loan. The the total shown in the Bill by the year with a surplus balance of total of the consolidated 31% amount of Military Contribution $2.184,088, of which only some per cent. loans thus became and Public Debt Charges. 897,000 would be liquid and avail £1,485,738; and with a view to The last two years have been able. As it happens, however, repayment, annual contributions difficult years for the Colony, but more of our balances have become Foreign going ton-of 1 per cent. are made to a sink- as Your Excellency has just liquid during the current year and nage excluding ing fund, which at the close of pointed out in the historical re there should be at least $500,000 last year amounted to £583,787. trospect which must have been available for expenditure at the souls; the total shipping engaged ing the years of world-wide dis- the remaining eleven Items, pro- New York...... 37,773,000 (b) During the Great War a that it has experienced, not seted before the end of the year the This loan is due to be paid off in of great interest to Honourable end of this year without taking April, 1948.

Members this is not the first time into account repayments from in foreign trade entered and organisation which followed the duced 74.8 per cent. of that Indisputably, therefore, Hong local loan of $3,000,000 was I share: Your Excellency's consum of $1,916,406 expended from a set loan. To this will have been add- cleared at Hong Kong, excluding conclusion, of the Great War. year's income and were, there Kong is one of the greatest ship raised by the Hong Kong Gov-fidence and I am sure Honourable revenue on the Shing Mun Scheme. junks, was 12,124,599 tons and The trade depression of that time fore, then as now, the principal ping ports in the world; and ernment as a contribution to the Members do so too, that it will and reimbursed from the loan. of this total 67 per cent. was was by no means confined to foundations of the Colony's fin- although the anti-British boycott Imperial Government on account not be long before we are not only We therefore expect to start the British. It is interesting to Hong Kong, but it was aggra-ancial structure. A scrutiny of of 1925 and 1926, caused a de of the mother country's war ex-back where we were prior to the year 1928 with a Surplus of place in immediate juxta-position vated here by the disturbed state these heads of revenue shows crease in the number and ton penditure. This loan bears in- outbreak of the strike and boy Assets over liabilities of $4.100,- the figures for last year. On of the neighbouring province of that each one of them is sound. nage of the shipping entered and terest at 6 per cent. per annum cott, but advancing far beyond, 489 and liquid balances of January 1, 1926, the Colony's Kuangtung and of China general Objection might perhaps be taken cleared at Hong Kong, there is and is in process of liquidation: But until that time comes we $2,416,406, surplus balances amounted to ly. Eventually, however, this in some quarters to the revenue every reason to believe that this By the May 1 this year $2,100,000 must be content to hold firmly on $8,118,482. The revenue collect very state of chaos and anarchy derived by the Colony from set-back is only temporary and had been repaid and arrange to what we have got, and to re- ed during 1926 was $21,131,581 in China reacted beneficially opium, which is now 18.3 per that a rapid recovery will be ments have been made to repay strain ourselves from any under- expenditure was upon the revenues of Hong Kong, cent of our total income and made as soon as normal trading the outstanding $900,000 on takings which would jeopardise $28,624,715. The total civil because the Chinese realised was 10.6 per cent of the total conditions in China can be re November 1 next. No call will be our financial stability when we population of the Colony was that this Colony afforded a safe in 1897, thus showing at first stored.- estimated to be 874,420 souls; refuge from the storm and they sight a relative increase. But, Kowloon Development. venue for this purpose, as the forward

made on the current year's re- wish to take the next big step It is most annoying, as well as dis therefore, became anxious in whereas in 1897 the sale of increasing numbers to find oplum in Hong Kong was farm Kong in financing its amazing suffice. This liability will, there

The achiev tof Hong sinking fund will more than Economy Necessary

Agate }} | grecable to be troubled with pwips in some foothold within it There ed out by the Government to a development

the stomach, and there is no need of Consequently the present bude it for one dose of Chamberlain's Colle fore, Boon disappear.

I got has been framed phuthernor and Diarrhoet Rames

population of the Colony in that was estimated to be 248,565

and the

the total shipping engaged in

foreign trade entered and clear at Hong Kong, excluding

Ports.

47,064,975 40,022,508

junks. 35,471,671 32,557,466

(Continued on Page 12.)

PAIN IN THE STOMACH