Heighing as 87 28th
Govern
Siv
July
1866.
Enting appions of his extention & rain
Duck a Revenus
thalle math the Goot to pupon its duties
to the commonit
Behard Gravelbao@onnell with Efficiency
bo
Right. Honorable
}
add that hop.
from that the Divine
Edivort Cardwell, M. &. provmains ofthe diag
code hamcnd the Maial Romes of
Financial Conditions of depistation, as so per
Colmy-
on it was tracts.
ummitu truitrial.
Speech of Govana as to- ofering before Legislative Council bysed the
Proposes Stamp Get pinson of the (dong. Introduces several important But that the while
body of orde whe Reopens to Exact
Bills.
wit
mein Lot; axximus attention to som
ший
as they reach this county
mcentini dent
a af, the Pering
Coth putte was ofte aday
It has only
Fit has
mplain that ban und a first time
Sendin copies of panas? 1. 12. 13. 14. — and
and
a copy of the last sentenen ofthe draft. Apt avon suffersted.
2. Enelisuris
ort.
27/4
Chf
Page 363
Page 363
Page 363
The Legislative Council, July 25th.
188
IMPORTANT PROCEEDINGS. Jaily Press
PRESENT.
His Excellency the Governor.
The Hon, the Acting Chief Justice. The Acting Colonial Secretary.
The Hon. the Attorney General. The Hon. the Colonial Treasurer.
The Hon. Mr Whittall.
The Hon. Mr. Dent.
The Hon Mr Gibb,
The new unofficial members, Mr. Gibb and Mr. Dent were sworn in by the Governor. The minutes of the last meeting having then been read, and confirmed,
His Excellency laid on the table an Ordinance for incorporating the Hongkong and Shanghai Bank.
MR. WHITTALL without opposing the motion drew attention to the state of the law in this colony with reference to banking, particularly as illustrated by a recent decision by Mr. Whyte in an action for the recovery of money on notes of the Agra and Masterman's Bank. The ordinance now proposed would confer upon the Hongkong and Shanghai Bank, power not only to issue notes up to an amount bearing a certain relation to the capital but to carry on exchange operations to an unlimited extent, for the only restriction was that assets and liabilities should be equal while the quality of the assets was not regulated in any way.
His Excellency promised to give the subject his attention before the ordinance came on for second reading and on this understanding it was read a first time.
THE BUDGET.
His Excellency then addressed the Council as follows
In laying before you the estimates for the year 1867 and moving that the Bill voting the requisite supplies be read a first time, I think it better not to defer to the second reading certain explanations, which if given early are more likely to assist your deliberations than if withheld to a later period.
The Colony is approaching a new and peculiar phase in its history and it will require the exercise of much prudence and forethought on the part of this Council to pilot the vessel of the state safely through the difficulties that are gathering round it. One thing at least we can do, viz., ascertain the present exact financial state of the Colony, and though enquiries of that nature lead often to unpleasant surprises nevertheless a fearless scrutiny of the position is the most effective commencement for solving such difficulty.
I propose we undertake that scrutiny, and the more thoroughly to understand the position of the Colony, I invite you to go back a few years and ascertain the proportions borne by the Revenue to the Expenditure.
Taking the six years from 1860 to 1865 we find the following amounts received and expended.
YEARREVENUEEXPENDITURE 1860$452,063$147,475 1861810,757526,233 1862631,260597,634 1863376,204586,395 1864637,948763,308 1865843,414937,805 TOTAL$3,748,650$3,751,874Thus in six years whilst we find the Revenue steadily increasing till from $452,000 it had risen to upwards of $843,000 or nearly double its amount in 1860, we also find the expenditure increasing so nearly in the same proportion, that at the end of these six years there was only the slight difference of $3,724 in favour of the revenue over expenditure for that period.
Looking first to the Revenue you will find that a large portion of its increase was derived from premiums realised by the sale of Land, and that out of the total amount $670,273 received as premiums for land sold, since the foundation of this Colony, no less than $102,956 were received during these six years from 1860 to the close of 1865. Those premiums however constituted a large portion of the capital of the Colony, which unlike our great Australian and American colonies, has but a very limited capital in land, so much so, that although only 827 acres have been sold, nevertheless it is true that comparatively very little valuable land remains undisposed of.
The Colony had, however, on the 1st January 1860, a surplus accumulated of $207,229 and consequently on the 1st of last January, with the slight addition above mentioned of $3,721, there should have been a surplus of available assets amounting to $210,953. From difficulty in collecting arrears, and other causes, the surplus assets at the beginning of the current year was only $184,000.
At the beginning of last year 1865, however, though we started with a surplus of $293,000, yet at the beginning of this year, that surplus was only $184,000. Therefore in the year 1865 our expenditure had exceeded our revenue by $111,000, and I fear our financial state is not improving, even by taking the most favourable view of matters, and the subject is one into which I have gone very fully. There was, according to the Auditor General, at the end of last year a surplus of only $108,000, and at the close of the current year there will probably be only a nominal surplus of Assets amounting to $85,000, including therein all arrears of taxes, and a large sum of £17,000 sterling which the Colony holds in bills on the Agra and Masterman's Bank.
Thus during the first six months of this year we shall have exceeded our Revenue by $75,000, and it is probable that during the last six months we shall exceed it by $23,000, or nearly $100,000 during the whole year. In reasoning thus I have accepted a calculation of the Auditor General that from the 30th June to 31st of next December the Colonial Revenue will be $380,000, and the Expenditure $403,000, but I am nevertheless bound to say that I have received more unfavourable computations from others, and I certainly think the views of the Auditor General go to the extreme of the favourable aspect of our affairs, which it would be prudent in this Council to adopt as the basis of any Legislative policy or action.
Moreover it would be unsafe to suppose that even the above nominal surplus consists of assets readily available, as part of those assets is in England, some, like the subsidiary coins expected are or may be in transitu when wanted, and part consists of arrears of taxes, consequently it is quite a possible contingency that the Colony although having nominally available assets, may be obliged to borrow money in the course of the next few months to enable it to meet its engagements.
The really important point however to consider is the fact that during the last six years, despite much elasticity in minor branches of Revenue, the Colony has expended more than half a million dollars of its capital in the shape of Premiums received for land, and though its Revenue otherwise has largely increased during the same period, it nevertheless is certain that the time is approaching when the whole of the surplus capital will have been used up, and if the expenditure be continued on the same scale, there will be a considerable deficit.
I agree with the Auditor General in ascribing this great and progressive deficiency in the assets of the Colony to the heavy expenses attending the establishment of the Mint together with the heavy annual cost of the same. The capital sunk in the Mint, including ground, machinery, buildings, &c., has already exceeded $350,000, and the annual cost including wear and tear of machinery and interest on capital is nearly $130,000. For all this outlay the Colony has hitherto received nothing in return, nor is there any immediate prospect of the experiment paying its expenses. The latter are in this country and climate found by experience to be so much heavier than at home in proportion to the amount of work done that the experiment is in various particulars more hazardous here than elsewhere. Nevertheless I consider the progress recently made by the very zealous and hard working staff of the Mint is so encouraging that I have felt justified in putting down $60,000 as likely to be earned by the establishment next year, and to diminish so far the present annual expense, leaving, however, the Colony still a probable loser of more than $60,000 by the speculation in 1867.
As it is impossible to permit the continuance of an annually increasing deficit we must devise a remedy. This may be done in two ways.
1st by diminishing your Expenditure.
2ndly by increasing your Revenue.
I presume no member of this Council would wish to vote for the shutting up of the Mint till it be more clearly ascertained whether the experiment may not succeed better, especially when all the subsidiary coinage is provided for by the establishment. Yet the Mint has been the principal cause of recent deficiencies.
Page 364
Page 364
Page 364
Heighing as 87 28th
Govern
Siv
July
1866.
Enting appions of his extention & rain
Duck a Revenus
thalle math the Goot to pupon its duties
to the commonit
Behard Gravelbao@onnell with Efficiency
bo
Right. Honorable
}
add that hop.
from that the Divine
Edivort Cardwell, M. &. provmains ofthe diag
code hamcnd the Maial Romes of
Financial Conditions of depistation, as so per
Colmy-
on it was tracts.
ummitu truitrial.
Speech of Govana as to- ofering before Legislative Council bysed the
Proposes Stamp Get pinson of the (dong. Introduces several important But that the while
body of orde whe Reopens to Exact
Bills.
wit
mein Lot; axximus attention to som
ший
as they reach this county
mcentini dent
a af, the Pering
Coth putte was ofte aday
It has only
Fit has
mplain that ban und a first time
Sendin copies of panas? 1. 12. 13. 14. — and
and
a copy of the last sentenen ofthe draft. Apt avon suffersted.
2. Enelisuris
ort.
27/4
Chf
The Legislative Council, July 25th.
188
IMPORTANT PROCEEDINGS. Jaily Press
PRESENT.
His Excellency the Governor.
The Hon, the Acting Chief Justice. The Acting C donial Secretary.
The Hon. the Attorney General. The Hon. the Onionial Treas.rer.
The Hon. Mr Whittall.
The Hon. Mr. Dent.
The Hon Mr Gibb,
The new unofficial members, Mr. Gibh and Mr. Dent were sworn in by the governor. Tas mi- nutes of the last meeting having then been read, i and con5rmed,
His Excellency laid on the table an Ordinance for incorporating the Hongkong and Shanghai Bank.
MR. WHITTALL without opposing the motion i drew attention to the state of the law in this colo- ny with reference to banking, particularly as illustrated by a recent decison by Mr. Whyte in an action for the r covery of money on notes of the Agra and Masterman's Bank. The ordinance now proposed would confer upon the Hongkong and Shanghai Bank, power not only to issue notes up to an amount bearing a certain relation to the capital but to cry on exchange operations to? an unlimited sen for the only restriction Was that assets and liabilities should be equal while the quality of the assets was not regulated- in any way.
His Excellency promised to give the subject; his attention before the ordinance came on for 8 s. cond reading and on this understanding it was read a first time.
THE BUDGET.
His Excellency then addressed the Council as follows
In laying before you the estimates for the year? 1967 and moving that the Bill voting the requi- site supplies be read a first time. I think it better not to defer to the second reading certain ex- planations, which if given early are more likely to assist your deliberations than if witheld to a later, period.
The Colony is approaching a new and peculiar phase, in its history and it will require the exercise of much prudence and forethought on the part of this council to pilot the ve sel of the state safely through the difficulties that are gathering round it, One thing at least we can do, víz, ascertain the present exact financial state of the Colony, and though enquiries of that nature lead often to unpleasant surprises nevertheless a fearless scru- tiny of the position is the most effective com• ¦ mencement for solving such difficulty.
I propose we undertake that scrutiny, and the more thoroughly to understand the position of the Colony, I invite you to go back a few years and i ascertain the proportions borne by the Revenue i to the Expenditure-
Taking the six years from 1860 to 1865 we find the following amounts received and expended.
REVENUE.
EXPENDITURE.
1880
$452.063
$147,475
1861
810,757
526,233
1862
€31,260
597,634
1863
376,204
586,395
1864
637,948
763,308
1866
843,414
937,805
TOTAL.
$3.748,650
$3,751,874
Thus in six years whilst we find the Revenue steadily increasing tili from $452,000 it had risen to upwards of $843,000 or nearly double its amount in 1860, we also find the expenditure in creasing so nearly in the same proportion, that at the end of these six years there was only the slight difference of $3,724 in favour of the revenue, over ) expenditure for that period.
Looking first to the Revenue you will find that' a large portion of its increase, was derived from premiums, realised by the sale of Land- and that out of the total amount $670,273 received as pre- miums for land sold, since the foundation of this Colony, no less than $102,956, were received du- ing his six years from 1860 to the close of 1865. Those premiums however constituted Jurge portion of the capital of the Colony, which unlike our great Australian and American colonies, has
26th July
18660
9194/66
but a very limited capital in land, so much so, that! although, only 827 acres have been sold, never- theless it is true that comparatively very little valuable land remains undisposed of.
The Colony had however, on the 1st January 1960, a surplus acumulated, of $207.229 and con- sequently on the 1st of last January, with the slight addition above mentioned of $3,721, there should have been a surplus of available assets, amounting to $210,953. From difficulty in end- lecting arrears, and other uses, the surplus as- sets, at the heg.aning of the current year, was only $184,000,
At the be inning of last year 1865, however though we started with a surplus of $293,000, yet at the beginning of this year, that surplus was on- ly £184.000. Therefore in the year 1865 our es- penditure had exceeded our revenue by $111,000, and I fear our financial state, is not improving, even by taking the most fay urable view of mat- ters, and the subject is one into which I have gone. very fully. There was, according to the Auditor General, at the end of last year a surplus of only $108,000--and at the close of the current year! there will probably be o ly a nominal surplus of Assets amounting to $85,000, including therein all arrears of taxes, and a large sum of £17,000 ater- ling which the Colony holds in bills on the Agra ? and Masterman's Bank.
Thus during the first six months of this year! we shall be exceeded our Revenue by $75,000, and it is probable that during the last six month={ we shall exceed it by $23 000, or nearly $100,000! during the whole year. In reasoning thus I have accepted a calculation of the Auditor General that i from the 30th June to 31st of next December be! Colonial Revenue will be $380,000, and the Ex- penditure $403,000, but I am nevertheless bound to say that I have received more unfavorable com-j putations from others, and I certainly think the views of the Auditor General go to the extreme of the favorable aspect of our affairs, which is would be prudent in this Council to adopt as the basis of any Legislative policy or action.
Moreover it would be unsafe to suppose that even the above nominal surplus coneis s of arsete readily available, as part those assets is in Eug land--sone, like the subsidiary coins 8000 ex- pected are or may be in transitu when wanted, and part consie ́s of arrears of taxes,--consequent. ly it is quite a possible contingency that the Co- lony although having nominally available usrets, may be obliged to borrow money in the course of i the next few months to enable it to meet its enga- gements.
The really important point however to consider is the fact, that during the last six years--despite of much elasticity in minor Branches of Revenue -the Colony has expended more than half a mil- lion of dollars of its capital in the shape of Pre- minus reo-ived for fand-and though its Reve- nua otherwise has largely increased during the same perind-it nevertheless is certain that the time is approaching when the whole of the sur- plus capital will have been used up-and if the expenditure be continued on the same scale, there will be a considerable deficit
I agree with the Auditor General in ascribing this great and progressive deficiency in the assets of the Colony, to the heavy expenses attending the establishment of the Mint together with the heavy annual cost of the same. The capital Bunk in the Mint, including ground, mashinery, build- inge, &c., has already exceeded $350,000, and the annual cost including wear and tear of machinery and interest on capital is nearly $130,000. For all this outlay tue Colony has hitherto received nothing in return, nor is there any immediate prospect of the experiment paying its expenses. The latter are in this country and climate found by experience to be so much heavier than at | home in proportion to the amount, of work done that the experiment is in various particulars more hazardous here than elsewhere. Nevertheless 1 consider the progress recently made by the very zealous and hard working staff of the Mint is so encouraging, that I have felt justified in putting down $60,000 as likely to be earned by the esta- blishment next year, and to diminish so far the present an uai expense, leaving, however, the Co- long still a probabile loser of more than $60,000 by the speculation in 1867.
As it is impossible to permit the continuance { of an annually increasing deficit we must devise a remedy. This may be one in two ways.
lat by diminishing your Expenditure. 2ndly by increasing your Revenue.
I presume no member of this Council wou'd wish to vote for the shulítion of the Mint till it be mure clearly ascertained, whether the expe- riment may not put suqueoed hettar, especially when all the sudšitívy doinge in preclusedne the establishment. Yet the mint has been the principal cause of recent deficiencies.
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