to defray the charges of the Year 1866"
I am also to enclose a copy of a statement made to the Governor when laying the Ordinance before the Legislative Council explanatory of the various items, and I am to state that His Grace would recommend that the expenditure involved should receive their Lordships' sanction.
J.L.El.
SUPPLEMENTARY ESTIMATESHis EXCELLENCY next introduced an Ordinance for supplementary estimates for 1866, and proceeded to read from a paper which he had prepared, as follows:
In considering the Supplementary Estimates which the Council is now called on to vote for last year, it will be advisable to refer to the Original Estimates for that year, and to bear in mind that those estimates were framed so far back as July, 1865. The Original Estimates at that time provided for an Expenditure of $913,810, and out of the money so appropriated only $811,581 were expended in 1866. Thus, if no other expenditure had taken place, there would have been a saving of $102,229. As usual, however, there has been much expenditure which the Council in July, 1865, could not have foreseen. That expenditure, which I shall presently explain, has amounted to $124,973, so that in lieu of a saving, there has in reality been an excess of expenditure to the extent of $22,744, and the vote of the Council is now required to make good that deficiency and provide for the difference of appropriations in the various items.
To arrive more particularly at the mode in which that deficiency has arisen, I shall classify the total actual expenditure of 1866 under General Heads, thus:
Ordinary Expenditure, Mint... $462,597.43 Public Works (exclusive of Mint) $128,308.62 $144,243.03 Payments to Imperial Post office $107,149.93 Military Contribution $93,668.54 $936,984.55To meet that expenditure the Colony received:
Ordinary Revenue $651,436.62 Receipts on account of Imperial Post Office $107,149.93 Mint (Seignorage), &c., &c. $10,490.03 $769,076.58Hence there was a clear excess of expenditure in 1866 over the receipts of the year, to the extent of $167,907.98, a startling deficiency, and which would have reduced the colony at once to Bankruptcy, were it not that there had been former savings and outstanding capital on which to fall back, a contingency, however, which I must impress on the Council can no longer be relied on, as the capital of the colony, excepting its unsold lands, may be regarded now as expended.
That result is of course mainly attributable to the larger outlay which has taken place on the Mint, whereby capital to the extent of $380,000 has now been sunk, whilst the only profit produced by the speculation, including seignorage, subsidiary coinage, &c., in 1866, was $10,490.
Reverting, however, to the original estimates, the expenditure then estimated was $913,819, and the ordinary Revenue $784,845. The actual result showed an excess of more than $23,000 over Expenditure, and a deficiency of Revenue amounting to $133,408.38.
In the financial statement made last August, I estimated that at the end of last year you would have an excess of assets over liabilities of $80,000, a small sum when it is remembered that in 1865 you started with a clear surplus of nearly $300,000. Nevertheless, even that small sum could not have been realised. On the contrary, including everything, subsidiary coinage and outstanding debts, whether available or not, the colony could not have had a surplus last December of more than $24,000, and that, as I say, not available.
That surplus would have been larger, if certain land sales, which it was deemed prudent to defer, could have taken place during last year, but in no case could even the larger surplus of $80,000—locked up as it was in subsidiary coins and unrecovered debts—be regarded as a suitable margin for this government, and consequently I found myself for a time without funds for the ordinary administration of the Government, and was obliged to borrow funds from the Hongkong and Shanghai Bank to enable me to defray the most necessary monthly expenses, an obligation which, though it is now discharged, I am happy to acknowledge.
There is, however, one point in connection with the revenue which is satisfactory, viz., that the actual ordinary revenue, apart from produce of land sales, &c., has on the whole continued steady, but the expenditure on public works, instead of being limited to $90,000 as anticipated in the financial statement of last August, reached $132,000.
And my attention having recently been drawn to the very irresponsible manner in which large sums for public works are expended in this colony, I have adopted stringent measures for bringing the intended monthly expenditure of the Surveyor-General's department early under the notice of the head of the Executive.
The Council will easily understand that in dealing with supplementary estimates they are really dealing with details of expenditure already incurred. Of that expenditure, the Mint still figures for a large amount, viz., $66,757, unavoidably expended in the completion of the building and works connected with it, which could not have been wound up as once expected in 1865.
As for the other public expenses, there has been a saving on them, to the amount of $40,740, so that although I am obliged to ask your sanction to upwards of $97,000, yet in reality you have only to provide for an excess under $50,000.
I lay before you a statement marked A, giving further details of the various works on which the saving you above referred to has been effected.
You should also bear in mind that there are some outlays for which the colony will hereafter be recompensed, such as that on the necessary work of the new Slaughter House at West Point, amounting to $6,527.
There is no reasonable doubt that even a larger sum will hereafter be obtained by sale of the site and materials of the old Slaughter House, when a suitable time arrives for selling such property.
There are one or two other items on which the Council is entitled to explanation. Thus, the item of $2,806 for interest on loans contracted on Bills discounted in England was occasioned principally by the suspension of the Agra Bank, and the necessity which the Crown Agents were under of borrowing money at the high rate then ruling in England to meet the colony's engagements, as for a time the Bills of the Agra Bank held by the Colony, and amounting to £17,162 8s. 10d., were not available, though I am happy to say that the whole amount with interest has since been recovered.
In like manner, the smaller item of $1,008 to be voted for the military contribution was occasioned by the lower rate of Exchange ruling during the past year, which of course necessitated the payment of a greater number of dollars to purchase £20,000 in Bills than had been estimated.
On the whole, without wishing to anticipate the more comprehensive financial statement which the Council may expect when I introduce the estimates for 1867, I think I am justified in saying that if the Colony be allowed time to right itself, and if it be relieved of the heavy drain on its resources occasioned by the annual expenditure on the Mint, we may hope that with the additional sources of Revenue which the Council last year provided, the statement of assets and liabilities at the close of 1867 will be much more satisfactory than it was at the termination of the past year.
to defray the changes of the You 1866"
[L
I am ales to enclose
copy of a statement made
to the
Ey
Gor: when Laying the
Ordinance before the Legislative
Covered explanatory of the
Barious items, and I am to
Hate that his Grace would:
recommend that
the
leefenditure involved
should receive their Lordships
Janetion
Sam de
J.L.El.
SUPPLEMENTARY ESTIMATES.
His EXCELLENCY next introduced an Ordinance for supplementary estimates for 1866, and proceeded to read from a paper which he had prepared, as follows :~~
In considering the Supplementary Esti mates-which the Council is now called on to vote for last year-it will be advisable to recte to the Original Estimates for that yoar, and to bear in mind that those estiinates were framed so far back as July,
! 1805. The Original Estimates at that time
provided for aù Expenditure of @913,810, i i and out of the money so appropriated only $811,581 were expended in 1860. Thus, if no other expenditure had taken place, there would have benu a saving of $101,828. As usual, however, there has been mutich expenditure which the Council in July, 1860, could not have foreseen. That ex- penditure which I shall presently explain has amounted to $124,973-so that in lieu of a saving, there has in reality been an excess of expenditure to the extent of $23,135, and the vote of the Council is now required to make good that deficiency and provide for the difference of appropriationa in the various itens. To arrive more particularly at the mode in which that de- ficiency has arisen, I shall classify the total actual expenditure of 1866 under Genera Heads, thus -
Ordinary Expenditure, Mint..
..$462,597.43 128,308.62
Public Works (exclusive of Mint,) 144,243.03 Payments to Imperial Post office, 107,149.93 Military Contribution,
93,668.54
$936,984.55
To meet that expenditure the Colony
received--
Ordinary Revenue,
...$651,436.62
Receipts on account of Imperial,
Post Office,.
107,149,93 Mint (Seignorage), &c., &c.,... 10,490.03
$769,076.58
Heuce there was a clear excess of expendi- ture in 1866 over the receipts of the year, to the extent of $167,878, a startling deficiency, and which would have reduced the colony at once to Bankruptcy, were it not that there had been former savings and outstanding capital on which to fall back, a contingency, however, which I must impress on the Council can no longer be relied on, as the capital of the colony, ex- cepting its unsold finds, may be regarded now as expendod. That result is of course mainly attributable to the larger outlay which has taken place on the Mint, where- by capital to the extent of 8380,000 has now been sunk, whilst the only profit produced by the speculation, including seignorage, subsidiary coinage, &c., in 1866, was $10,490. Reverting, however, to the origi
the expenditure then estimated was $913,819, and the ordinary Revenue $784,845. The actual result showed an excess of more than $23,000 over Expendi ture, and a deficiency of Revenue amount- ing to $15,000. These figures, whilst they shew a fair approximation to those esti- mated, nevertheless exhibit a difference on the wrong side which I trust will not be repeated. In the financial statement made last August, I estimated that at the end of last year you would have an excess of assets over liabilities of $80,000, a small sum when it is remembered that in 1865 you started with a clear surplus of early $300,000. Nevertheless even that small sum could not have been realised. On the contrary, including everything, subsidiary coinage and outstanding debts, whether available or not, the colony could not have had a surplus last December of more than $24,000 and that, as 1
say, not Rvailable. That surplus would have been larger, if certain land sales, which it
i
47530
158
was deemed prodent to defer, could have taken place during last year, but in no case could even the larger surplus of $80,000---locked up as it was in subsidiary coins and unrecovered debts,-be regarded as a suitable margin for this government, aud consequently I found myself for a time without funds for the ordinary administra- tion of the Government, and was obliged to borrow funds from the Hongkong and Shanghai Bark to enable me to defray the most necessary monthly expenses, an obli- gation which, though it is now discharged, I am happy to acknowledge. There is, however, one print in connection with the revenue which is satisfactory, viz, that the actual ordinary revenue, apart from pro- duce of land sales, &c., has on the whole continued steady, but the expenditure on public works, instead of being limited to $90,000 as anticipated in the financial state- ment of last August, reached $132,000. And my attention having recently been drawn to the very irresponsible manner in which large sums for public works are ex- pended in this colony, have adopted stringent measures for bringing the intend- ed mouthly expenditure of the Surveyor- General's department early under the no- tice of the head of the Executive. The Council will easily understand that in deal- ing with supplementary estimates they aro really dealing with details of expenditure already incurred. Of that expenditure the Mint still figures for of the amount, viz, $66,757, unavoidably expended in the com- pletion of the building and works connected with it, which could not have been wound up as once expected in 1865. As for the uther public expenses there has been a say- ing on them, to the amount of $40,740, su that although I am obliged to ask your sanction to upwards of $97,000, yet in real- ity you have only to provide for an excess under $50,000. I lay before you a state- ment marked A., giving further details of the various works, on which the saving You above referred to las been effected. should also bear in mind that there are some outlays, for which the colony will here- after be recompensed, such as that on the necessary work of the new Slaughter House at West Point, amount.ng to $6,527. There is no reasonable doubt that even a larger sum will hereafter be obtained by sale of the site and materials of the old Slaughter House, when a suitable time arrives for seiling such property. There are one or two other items on which the Council is entitled to explanation. Thus the item of $2,806 for interest on loans contracted on ́- Bills discounted in England, was occasioned principally by the suspension of the Agra Bauk, and the necessity which the Crown #gents were-under of borrowing money at the high rate then ruling in England to meet the colony's engagements, as for a time the Bills of the Agra Bank held by the Colony, and amounting to £17,162, 8s. 10. were not available, though I am happy to say that the whole amount with interest has since been recovereil In like manner the smaller items of $1,008 to be voted for the military contribution was Occa sioned by the lower rate of Exchange ruling during the past year, which of course ne- cessitated the payment of a greater number of dollars to purcitase £20,000 in Bills than had been estimated. Ou the whole, without wishing to anticipate the more comprehen- sive financial statement which the Council may expect when I introduce the estimates for 1867, I think I am justified in saying that if the Colony be allowed time to right itself, and if it be relieved of the heavy tiraib on its resources occasioned by the annual expenditure on the Mint, wo may hope that with the additional sources of Revenue which the Council last year provided, the statement of assets and liabi lities at the close of 1867 will be much może satisfactory than it was at the termination of the past year.
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