At last the curtain has been lifted, and the GOVERNOR has revealed the work which he has been preparing in private. At the meeting of the Legislative Council yesterday, not only were the estimates for the ensuing year brought forward, but a financial statement was laid before the Council by the GOVERNOR in which he reviewed the state of the colonial revenue and expenditure in a masterly manner, and brought forward the scheme by which he proposes to meet the deficit which is to be expected during the ensuing year. This scheme is necessarily based to some extent on the new legislation which is also proposed, and in consequence of this interdependence between the new ordinances and the budget for 1867, all the new ordinances were brought in yesterday and read a first time. Any one of these bills would be a proposal of deep interest if it had been brought forward by itself. As they are brought forward in a mass, they constitute what has been described as a "social revolution" in Hongkong. They go to the root of all the most crying evils of which the community has had to complain, and by one act, the government renders it impossible that any future charges of apathy and indifference can be brought against it.
At the first moment, it is impossible to do more than express in general terms, admiration for the vigor and energy which are exhibited in the ordinances now brought forward. The deep interest which they will excite, will lead to much public discussion of their details, and by the time they come again before the council, it is possible that various modifications may be proposed. Whatever criticism they may elicit, however, the objections which may be urged will not diminish the satisfaction with which the public of this colony will see an honest and sincere attempt to grapple with the difficulties which have paralysed the action of the government so long, and will watch the effect of legislation which has been manifestly based on the purest anxiety for the public welfare, and prepared by means of close application to the difficult problems of government which it is attempted here to solve.
We believe the residents of this colony will heartily recognise the zeal and activity of the present government now that it has risen, as the French say, to the level of the situation. If there has been some impatience while months went by and all the old grievances remained untouched, that feeling will be forgotten now, and while it is still possible that private opinions may, with reference to many subjects be at variance with those embodied in the measures of the government, it is impossible that such differences will give rise to the soreness of feeling which might be produced by a belief that the government was careless and apathetic.
There has been much carelessness and apathy shown in former years; this must explain the suspicious readiness of the community to imagine that the present government was overpowered by the weight of its responsibilities. A new era of confidence in and respect for the government, will date from the Council meeting of yesterday.
With the GOVERNOR's budget, we are but slightly acquainted as yet. The speech in which he dealt with the subject of the deficit to be expected at the close of the next year, and the measures by which he proposed to encounter it, was unaccompanied by the detailed information which would have enabled his listeners to form an opinion on the merits of the financial scheme. All we know is, that it is by means of a Stamp Act that he proposes to fill the expected vacancy.
In reviewing the finances of the past six years, the GOVERNOR began by stating that the capital of this colony was extremely small as compared with that belonging to the extended territories of Australia or North America. In the year 1863, for the first time, the revenue fell short of the expenditure and ever since then the expenditure has continually been greater than the income, so that it has happened at last that the accumulations of capital have been altogether exhausted, that the land, which is the capital, has been all sold, all at any rate which is of any value although the quantity disposed of does not seem very great when expressed in acres.
The argument from this is that an increase in the annual revenue is a necessary measure, as it appears on examination that the expenditure cannot be reduced. The idea that fresh taxes must be imposed seems to follow naturally enough from this, and the GOVERNOR's idea with reference to the proposal of raising a loan which must have been before him, would seem to be that it is inconsistent with a state of things in which there must be an annual deficit and no hope consequently of ever paying it off.
It is certainly a sound principle to reject parsimonious economies as a means of making two ends meet, in dealing with the public affairs of a colony like this. The GOVERNOR's words in that passage of his speech in which he insists on the necessity of maintaining, as it were, the honor of the colony by keeping the roads in a proper state, by improving drainage and water supply, and by avoiding any appearance of public neglect or narrowness of means, will find an echo in the hearts of all who have any regard for the prosperity of this place.
Better certainly a Stamp Act even, than that the streets should fall into ruts and the choking drains breed disease, than that water should flood the streets in rainy weather and the tanks be dry immediately afterwards. But the expenditure on public works is partly a capital expenditure and we greatly doubt whether the capital of the island has been exhausted by any means as yet.
There may be no more land for sale in the middle of the town, and there may be none for sale anywhere, in the state it is in at present, but it may be that by a small outlay fresh land could be rendered highly desirable, and even that the promise of this small outlay would induce people to come forward with good prices for the land in advance. Plans have been proposed by which this might be tried at no expense in various parts of the island, for instance at Causeway Bay where people of experience believe that a complete Chinese town for the occupation of a better class of Chinese than at present belong to this colony at all, would be erected if the ground were reclaimed, and beyond that, the government could sell the ground as it stands covered with water at a high price by merely giving an undertaking to carry out the necessary works, if the lots should be knocked down at anything over a certain rate.
This is a subject by itself, which we cannot go into here, and the allusion to it was merely made to show that there was some reason for disputing the theory that the capital of the Island was all exhausted. The next point of the GOVERNOR's argument is that the permanent expenditure is greater than the permanent revenue, and that it is consequently useless to think of any temporary or half measures, that the only way of solving the difficulty is to augment the annual income.
But is it a fact that the fair and legitimate colonial expenditure is in excess of the income? We not alone dispute this, but maintain that we have on previous occasions proved by reference to the public accounts that the fact is not so. The finances of the colony have been upset by the sum extorted from us for imperial purposes, in violation of understood engagements on the part of the Home Government towards the first settlers and land purchasers, and by the costly experiment of the Mint, which is being tried, not in accordance with an act of the Legislative Council, but by the orders of the Home Government.
Without the military contribution and the expenses of the Mint, the colony would be paying its way with a full treasury, and no idea of a deficit. If we are required therefore to endure increased taxation, it is in order to pay the War-office, and salaries and coals at East Point. It is in view of this state of things that we have advocated the policy of a small loan which would exactly, in the fairest way possible, solve the difficulty before us. We have no hostility at all to the institution at East Point, great hopes on the contrary for its future, but with reference to its present cost, one of two views must be taken, either that it is a failure for which we are not responsible, or that it is an institution which will ultimately prove profitable.
Page 190
Daily Press 26 July 1886
i
Ar last the curtain has been lifted, and the GOVERNOR has revealed the work which he has been preparing in private. At the meeting of the Legislative Council yesterday, not only were the estimates for the ensuing year brought; forward, but a financial statement was laid before the Council by the GovERNOR in which he reviewed the state of the colonial revenue ! and expenditure in a masterly manner, and brought forward the scheme by which he proposes to meet the deficit which is to be ex- peated during the ensuing year. This scheme is necessarily based to some extent on the new legislation which is also proposed, and in consequence of this interdependence between the new ordinances and the budget for 1867, all the new ordinances were brought in yesterday and read a first time. Any one of these hills would be a proposal of deep interest if it had been brought forward by itself. As they are brought forward in a mass, they constitute? what has been described as a "social revolu-
}
tion" in Hongkong. They go to the root of all the most crying evils of which the commu-! nity has had to complain, and by one act, the government renders it impossible that any future charges of apathy and indifference can! be brought against it. At the first moment, it is impossible to do more than express in general terms, admiration for the vigor and energy which are exhibited in the ordinances now brought fora ard. The deep interest which they will excite, will lead to much public discussion of their details, and by the time they come again before the council, it is possi ble that various modifications may be proposed. Whatever criticism they may elicit, however, the objections which may be urged will not diminish the satisfaction with which the pub- lic of this colony will see an honest and sincere attempt to grapple with the difficulties which have paralysed the action of the government so long, and will watch the effect of legislation which has been manifestly based on the purest, anxiety for the public welfare, and prepared by means of close application to the dificult problems of government which it is attempted here to solve. We believe the residents of this colony will heartily recognise the zeal and activity of the present government now that it has risen as the French say, to the level of the situation. If there has been some im- patience while months went by and all the old grievances remained untouched. That feel- ing will be forgotten now, and while it is still i possible that private opinions may, with refer- ence to many subjects be at variance with those embodied in the measures of the govern- · ment, it is impossible that such differences will give rise to the soreness of feeling which! might be produced by a belief that the go-t vernment was careless and apathetic. There has been much carelessness apathy shown in former years; this must explain the suspi- cious readiness of the community to imagine! that the present government was overpowered by the weight of its responsibilities. A new era of confidence in and respect for the go- vernment, will date from the Council meeting of yesterday.
With the GOVERNOR's budget, we are but slightly acquainted as yet. The speech in which he dealt with the subject of the deficit to be expected at the close of the next year, and the measures by which he proposed to en counter it, was unaccompanied by the detailed information which would have enabled his listeners to form an opinion on the merits of the financial scheme. All we know ie, that it i is by means of a Stamp Act that he proposes to fill the expected vacancy. In reviewing the finances of the past six years, the GovER- NOR began by stating that the capital of this colony was extremely small as compared with that belonging to the extended territories of Australia or North America. In the year 1863 for the first time, the revenue fell short of the expenditure and ever since then the expenditure has continually been greater than the income, so that it has happened at last that the accumulations of capital have been altogether exhausted, that the land, which is the capital, has been all sold, all at any rate which is of any value although the quantity
Daily Ress 26 July
1886
disposed of does not seem very great when expressed in acros. The argument from this is that an increase in the annnal revenue is a necessary measure, as it appears on examina- tion that the expenditure cannot be reduced. The idea that fresh taxes must be imposed seems to follow naturally enough from this,! and the GOVERNOR's idea with reference to the proposal of raising a loan which must hav
190 been before him, would seem to be that it is
inconsistent with a state of things in which there must be an annual deficit and no hope consequently of ever paying it off. It is certainly a sound principle to reject parsimo- nious economies as a means of making two ends meet, in dealing with the public affairs of a colony like this. The GovERNOR's words in that passage of his speech in which he insists on the necessity of maintaining, as it were, the honor of the colony by keeping the roads in a proper state, by improving drainage and water supply, and by avoiding any ap- pearance of public neglect or narrowness of means, will find an echo in the hearts of all who have any regard for the prosperity of this place. Better certainly a stump act even, than that the streets should fall into ruts and the choking drains breed disease, than that water should flood the streets in rainy weather and the tanks be dry immediately afterwards. But the expenditure on public works is partly a capital expenditure and we greatly doubt; whether the capital of the island has been ex- hausted by any meaus as yet. There may be no more land for sale in the middle of the town, and there may be none for sale any where, in the state it is in at present, but it may be that by a small outlay fresh, land could be rendered highly desirable, and even that the promise of this small outlay would induce people to come forward with good prices for the land in advance. Plans have been proposed; by which this might be tried at no expense in various parts of the island, for instance at Causeway Bay where people of experience believe that a complete Chinese town for the occupation of a better class of Chinese than at present belong to this colony at all, would be erected if the ground were reclaimed, and beyond that, the government could sell the ground as it stands covered with water at a bigh price by merely giving an undertaking to carry out the nenessary works, if the lots should be knocked down at any thing over a certain rate. This is a subject by itself, which we cannot go into here, and the allusion to it was merely made to show that there was some reason for disputing the theory that the capi. tal of the Island was all exhausted. The next point of the GOVERNOR's argument is that the permanent expenditure is greater than the permanent revenne, and that it is consequent- ly useless to think of any temporary or half measures, that the only way of solving the difficulty is to augment the annual income. But is it a fact that the fair and legitimate colonial expen.iture is in excess of the income? We not alone dispute this, but maintain that we have on previous occasions proved by re- ference to the public accounts that the fact is not so. The finances of the colony have been upset by the sum extorted from us for impe- rial purposes, in violation of understood en- gagements on the part of the Home Go- vernment towards the first settlers and land purchasers, and by the costly experiment of the Mint, which is being tried, notin accordance with an act of the Legislative Council, but by the orders of the Home Government. Without the military contribution and the expenses of the Mint, the colony would be paying its way with a full treasury, and no idea of a deficit. If we are required therefore to endure increased taxation, it is in order to pay the War-office, and salaries and coals at East Point. It is in view of this state of things that we have advocated the policy of a small loan which would exactly, in the fairest way possible, solve the difficulty before us. We have no hostility at all to the institution at East Point, great hopes on the contrary for its future, but with reference to its present cost, one of two views must be taken, either that it is a failure for which we are not responsible, or that it is an institution which will ultimately prove profita-,
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