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Having thus respectfully laid before Your Excellency the deliberate conviction at which they have arrived, Firstly, with regard to the character and necessity of the proposed expenditure, and, Secondly, as to the mode in which the necessity for more money, if it exists, should be met, they now proceed to entreat Your Excellency's patient and favourable consideration of the feeling entertained by, they may say, the whole Colony, that a Stamp Act or tax to be passed for, or levied on, this Colony, is calculated to do serious and grievous prejudice to the interests of all classes of the residents, and is, in principle, inapplicable to the place and its circumstances, and this quite irrespectively of the amount to be raised by it, or the retention or abandonment of any items in the Schedule to the Ordinance as published.
Your Memorialists are emphatically of opinion that any Stamp Tax must be disastrous in its effects on the welfare and prosperity of the Colony. The trade which is now carried on in the Colony has grown gradually up, induced partly by the protection to property always to be had here, and partly by its being a conveniently situated place for the producer to come to meet the exporter on the one hand, and the consumer, or speculator upon consumption, to meet the importer, on the other. These undoubted advantages possessed by Hongkong, however, did not suffice to bring the trade here, until it was largely favoured by outside influences, and fortuitous circumstances. The Establishment of heavy taxes and duties formerly at Macao, drove a good deal of native Commerce over here, and, though these taxes have now ceased to exist, this trade has remained here, because it has had nothing to gain by returning to Macao hitherto, and, though this is but a small element in the great whole, it is well worthy of consideration as embodying the principle for which Your Memorialists contend. Again, after the destruction of the Factories at Canton, in 1856, came what may be called a turning point in the fortunes of Hongkong; The Merchants had, after the cessation of hostilities, to consider whether, in the utter absence of all taxation on trade here, it was necessary to incur the expense of building at Canton, and keeping separate Establishments there, to do business that could be done equally well here, and, finding, as they did, that the Chinese, on whom the trade depends, were willing to come here and settle, they have almost entirely abandoned Canton, as an Emporium or place of business. A wise and prudent course of legislation in the Colony, has kept the taxation necessary to raise the requisite amount of Revenue, in a purely local and direct channel, and, by carefully abstaining from producing any fear in the minds of people elsewhere, who send to the residents here to have their transactions carried out, that any, even indirect, taxation upon trade would ever be imposed, has mainly contributed to attract new trade hither and keep that already secured. The residents here have always readily paid this local direct taxation, because it pays them to do so, by offering inducements, as there is no doubt it does, for business to be sent here, which might just as readily be transacted elsewhere, and Your Memorialists believe that any additional Revenue, necessary to be raised, would always gladly be paid by the residents here, who, one and all, are dependent for their livelihood upon the influx of trade and commerce to the port, and to induce an increase of which, it is so vitally important that the previous character of the taxation here should not be altered in the smallest degree.
With all respect to the Opinions expressed by Your Excellency, in your letter to Mr. WHITTALL, on the subject of this tax, there is one sentence in that letter which clearly indicates the danger of imposing it, and shews why a tax of this nature will cause dread in the minds of absent traders and speculators, and lead them to send their orders elsewhere. The sentence is this "I see in it a system capable of immediate contraction and expansion according to the Public exigencies." It is this expansive property that is the evil at the bottom of the whole proposition, as, passing a Stamp tax, avowedly as the future proper mode of meeting any "Public exigencies" that may arise, amounts to a declaration that, if money is needed for expenditure in the Colony, Trade must be taxed by new or altered Stamp imposts to supply the amount. While on the subject of Your Excellency's letter your Memorialists would also point out, that though the proposed Stamp tax was originally given out to be merely a temporary measure to provide for the alleged deficit for 1867, it appears, from Your Excellency's avowal in the letter, that $120,000 is fixed as a "yearly addition to the Colonial Revenue," to be derived from and the introduction of this measure will be the more dreaded, as its positively permanent character, and certain "expansion" if money be required, is thus announced as the Policy of the Colonial Government for the future. That the fact of the existence of the dread or apprehension to which they allude, and that its effect will be prejudicial to the welfare of the Colonists, are matters beyond doubt, and not mere baseless suppositions, Your Memorialists have already received substantial evidence in more ways than one. They submit to Your Excellency, that their unanimous feeling against both the principle, and effect, of any Stamp tax, is worthy of serious attention from the fact, that all previous legislation here, has been in accordance with their present convictions, and also because it is not on their part, a captious objection to the expenditure of money, but an anxious protest against its being paid for in this way, coupled with an offer of readiness to be taxed, to any necessary amount, year by year, as real occasion arises, in the mode suggested by them, or in any other way not so likely to be productive of evil results to the Community.
Your Memorialists, in addition to objecting to the imposition of a Stamp tax as being in principal wrong, even for providing for a temporary deficit, do most solemnly and earnestly protest against the even more injurious policy, declared in Your Excellency's letter, of seizing the opportunity, of there being an alleged need of money, for a purely temporary and transitory purpose, to impose upon the Colony, and its trade, a yearly additional tax of $120,000, being equal to one-seventh of the present annual Revenue.
The only argument Your Memorialists have heard in favour of taxation in this manner, is, that it is not politically expedient to derive all Revenue from one or more specific sources, but if this be true as an abstract proposition of political economy, surely the fact that, since the existence of the Colony, the Legislature have followed this course without even demur on the part of those taxed, is sufficient to shew, that Hongkong, in its circumstances, is in an exceptional position, and must be dealt with as the position requires, and not in the manner required by any abstract dogma or theory.
There are many other objections to the imposition of any Stamp tax, partly to the principle, and partly to the operation, of such a measure, on which Your Memorialists will not dilate, but they may point out, as instances, the severity and stringency of the provisions punishing breaches of the Ordinance, the difficulty and cost of collection, and almost certain evasion of it by such of the Chinese as remain here, its vexations intricacy, and its inequality, in leaving untaxed a large body
13
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12
Having thus respectfully laid before Your Excellency the deliberate conviction at which they have arrived, Firstly, with regard to the character ☀) and necessity of the proposed expenditure, and, Secondly, as to the mode in which the necessity for more money, if it exists, should be met, they now proceed to entreat Your Excellency's patient and favourable consi- deration of the feeling entertained by, they may say, the whole Colony, that a Stamp Act or tax to be passed for, or levied on, this Colony, is calculated to do serious and grievous prejudice to the interests of all classes of the residents, and is, in principle, inapplicable to the place and its circumstances, and this quite irrespectively of the amount to be raised by it, or the retention or abandonment of any items in the Schedule to the Ordinance as published.
Your Memorialists are emphatically of opinion that any Stamp Tax must be disastrous in its effects on the welfare and prosperity of the Colony. The trade which is now carried on in the Colony has grown gradually up, induced partly by the protection to property always to be had here, and partly by its being a conveniently situated place for the producer to coine to to meet the exporter on the one hand, and the consumer, or speculator upon consumption, to meet the importer, on the other. These undoubted advantages possessed by Hongkong however, did not suffice to bring the trade here, until it was largely favoured by outside influences, and fortuitous circumstances. The Establishment of heavy taxes and duties formerly at Macao, drove a good deal of native Commerce over here, and, though these taxes have now ceased to exist, this trade has remained here, because it has had nothing to gain by returning to Macao hitherto, and, though this is but a small element in the great whole, it is well worthy of consideration as embodying the principle for which Your Memorialists contend. Again, after the des- truction of the Factories at Canton, in 1856, came what may be called a turning point in the fortunes of Hongkong; The Merchants had after the cessation of hostilities, to consider whether, in the utter absence of all taxation on trade here, it was necessary to incur the expense of building at Canton, and keeping separate Establishments there, to do business that could be done equally well here, and, finding, as they did, that the Chinese, on whom the trade depends, were willing to come here and settle, they have almost entirely abandoned Canton, as an Emporium or place of business. A wise and prudent course of legislation in the Colony, has kept the taxation necessary to raise the requisite amount of Revenue, in a purely local and direct channel, and, by carefully abstaining from producing any fear in the minds of people elsewhere, who send to the residents here to have their transactions carried out, that any, even indirect, taxation upon trade would ever be imposed, has mainly con- tributed to attract new trade hither and keep that already secured. The residents here have always readily paid this local direct taxation, because it pays them to do so, by offering inducements, as there is no doubt it does, for business to be sent here, which might just as readily be transacted elsewhere, and Your Memorialists believe that any additional Revenue, necessary to be raised, would always gladly be paid by the residents here, who, one and all, are dependent for their livelihood upon the influx of trade and commerce to the port, and to induce an increase of which, it is so vitally important that the previous character of the taxation here should not be altered in the smallest degree.
With all respect to the Opinions expressed by Your Excellency, in your letter to Mr. WHITTALL, on the subject of this tax, there is one sentence in that letter which clearly indicates the danger of imposing it,
this
source,
13
and shews why a tax of this nature will cause dread in the minds of absent traders and speculators, and lead them to send their orders else- where. The sentence is this "I see in it a system capable of immediate contraction and expansion according to the Public exigencies." It is this expansive property that is the evil at the bottom of the whole proposition, as, passing a Stamp tax, avowedly as the future proper mode of meeting any "Public exigencies" that may arise, amounts to a declaration that, if money is needed for expenditure in the Colony, Trade must be taxed by new or altered Stamp imposts to supply the amount. While on the subject of Your Excellency's letter your Memorialists would also point out, that though the proposed Stamp tax was originally given out to be merely a temporary measure to provide for the alleged deficit for 1867, it appears, from Your Excellency's avowal in the letter, that $120,000 is fixed as a "yearly addition to the Colonial Revenue," to be derived from and the introduction of this measure will be the more dreaded, as its positively permanent character, and certain "expansion" if money be required, is thus announced as the Policy of the Colonial Government for the future. That the fact of the existence of the dread or appre- hension to which they allude, and that its effect will be prejudicial to the welfare of the Colonists, are matters beyond doubt, and not mere baseless suppositions, Your Memorialists have already received substantial evidence in more ways than one. They submit to Your Excellency, that their unanimous feeling against both the principle, and effect, of any Stamp tax, is worthy of serious attention from the fact, that all previous legislation here, has been in accordance with their present convictions, and also because it is not on their part, a captious objection to the expenditure of money, but an anxious protest against its being paid for in this way, coupled with an offer of readiness to be taxed, to any necessary amount, year by year, as real occasion arises, in the mode suggested by them, or in any other way not so likely to be productive of evil results to the Community.
Your Memorialists, in addition to objecting to the imposition of a Stamp tax as being in principal wrong, even for providing for a temporary deficit, do most solemnly and earnestly protest against the even more injurious policy, declared in Your Excellency's letter, of seizing the oppor- tunity, of there being an alleged need of money, for a purely temporary and transitory purpose, to impose upon the Colony, and its trade, a yearly additional tax of $120,000, being equal to one-seventh of the present annual Revenue.
The only argument Your Memorialists have heard in favour of tax- ation in this manner, is, that it is not politically expedient to derive all Revenue from one or more specific sources, but if this be true as an abstract proposition of political economy, surely the fact that, since the existence of the Colony, the Legislature have followed this course without even demur on the part of those taxed, is sufficient to shew, that Hong- kong, in its circumstances, is in an exceptional position, and must be dealt with as the position requires, and not in the manner required by any abstract dogma or theory.
There are many other objections to the imposition of any Stamp tax, partly to the principle, and partly to the operation, of such a measure, on which Your Memorialists will not dilate, but they may point out, as instances, the severity and stringency of the provisions punishing breaches of the Ordinance, the difficulty and cost of collection, and almost certain evasion of it by such of the Chinese as remain here, its vexations intricacy, and its inequality, in leaving untaxed a large body
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