423
522 THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877.
HIS EXCELLENCY then says:-Gentlemen, it becomes my duty to lay upon the table the Estimates for the year 1878, and, in doing so, I have first to draw your attention to the financial statement which was placed in my hands immediately on my arrival in the Colony in April last. This is the return of the expenditure of the Colony for 1876, which is dated the 4th April, 1877, and was issued from the Colonial Secretary's Office on the 13th April. As you are aware, this return contains the last complete statement of any one year's financial transactions of the Colony, and on my arrival my attention was at once drawn to this important document by the Colonial Secretary, Mr. GARDINER AUSTIN. I found on examining it that the revenue of the year 1876 had amounted to $885,308, whereas the expendituren of the same year had amounted to $902,500. More than that, whilst the revenue of 1876 was les than the expenditure of that year, it was also less than the revenue of the preceding year, and whilst the expenditure of 1876 was in excess of the revenue, it was also in excess of the expenditure of the preceding year; or, in other words, the authentic figures placed in my hands, showed that the revenue, of the Colony
was declining, that the expenditure was increasing, and had passed beyond the revenue being something like $17,000 in excess of the revenue. Now, how was that $17,000 paid? The $17,000 caine out of the balance in the Colonial chest. The balance in the Colonial chest when the estimates were framed, and at the end of 1876 amounted to $134,297. There is no doubt that was very respectable balance to have in the chest, and when my predecessor framed estimates which enabled had to draw only so small a sum as $17,000 from it, every one must feel that his estimates were sale and prudent. However that may be, it was my duty, having to face a financial condition such as this, to look very carefully at both sides of the balance-sheet of the Colony, to endeavour on the one band to stimulate the revenue, and on the other to carefully watch the expenditure. In a Colony such us this, a Crown Colony, the real responsibility devolves upon the representative of the Crown. Th Governor is expected by his instructions to look most carefully into the expenditure of the Colony, watch it month by month, and under the Treasury regulations which give him that authority a impose the duty upon him, it is laid down that as early in each month as the expenditure for the ensuing month can be seen with sufficient accuracy, the Heads of Departments are to draw up a requisition in accordance with the classified list of heads in the estimates, to be laid before the Governor for hi sanction, and if the Governor sanction it, a letter is written to the Head of the Department to that effect. Such throughout the Colonial Empire is the manner in which the expenditure is watched by the Governo under the Treasury instructions." On the 25th May, I made a minute that I did not see that the Treasury instructions in this respect were complied with in this Colony. On the 25th May, I received requisitions for expenditure incurred in the month of May by various Heads of Departments. Wha was the use of putting them before me on the 25th May? The expenditure had taken place, and had no power of checking it if I thought it necessary to do so. Accordingly, I inquired how it came to happen that the requisitions did not come before the Governor in the time laid down in the Treasury instructions, and then I found it had been the practice for some years to send in the requisition for expenditure near the end of the month in which it bad been incurred. The formality was gone through with great strictness for the Governor to approve of such requisitions; after that, a letter was written to the Heads of Departments informing them they were at liberty to incur the expenditure, which practically, had been already incurred. Of course it may occur to some of you that the Heads of Departments are responsible officers, and that whatever Treasury instructions may say, Heads of Departments will be themselves responsible. That is a very good argument as applying to Colonies with responsible Governments; there the Heads of Departments are responsible, but in a Crown Colony it is different; the Governor is expected to look carefully into the expenditure, to check it if necessary and to stop improper expenditure. Well, it will not require much exertion, it will not be a difficult thing, for Heads of Departments to comply with my wishes in that respect, and work the requisitions in accordance with the Treasury instructions. It does not follow that the Governor is bound every month to cut down the requisitions which come before him. As you all know, the very power of cutting them down and the fact of the Governor's looking after these matters in good time from month to month will often operate to check what may be needless expenditure.
With respect to the question of revenue, I have been extremely anxious to ascertain how far the revenue we have been receiving in the Colony is a healthy revenue, and how far it may be developed, if necessary, without imposing any further taxation on the Colony. Now, to take the item as they stand in the estimates laid before you, you will find our first item is the land revenue. I estimate that for the year 1878 at $200,000. The actual sum collected in the first nine months of the present year under that head was $194,000. We expect to get a sum in the three subsequent months which will raise the total to considerably over $200,000, but in making my estimate for the next year, I have confined it to the $200,000, and I do it with the assurance of the Surveyor-General that that sum is well within the mark. I must attribute the sound state of that revenue to the admirable administration of the Department presided over by my Honourable friend the Surveyor General, Mr. PRICE. The improvements at the other side of the harbour, and the drainage, the many useful works he has in hand, and the good sites he has laid out for buildings along the new roads he has constructed, have no doubt in a most healthy manner stimulated the prosperity of the Colony and helped to give us this increasing income. The next item is rents exclusive of land. I estimate that at a few thousand dollars less than actually received in 1876. It then reached $61,446. I estimate it for next year at $58,000, but it will probably reach larger figure. I now come to the licences. Of these licences, the important ones
THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877. 523
ge the spirit retailers', the pawnbrokers', and the Opium farm. Now, in every Eastern Colony they ve licences or farms of this kind. I had to deal with the little Colony of Labuan, and had opportunities of consulting the neighbouring Governors, the Governors of Singapore and Saigon, and others interested in the management of such revenue farms. It is of importance to know whether these farms lly bring us in the proper amount of money. Now, what has happened about the Opium farm? It fetched in 1875, $137,000 for the whole year; in 1876, $133,000; and this year we will receive from it only $132,000. The Opium farm is declining in value, because it has been sold to the Opium farmer at a slight falling-off in value. Well, it is a curions fact that, while the Opium farm has been declining in value, the number of chests of Opium forwarded to this Colony have been increasing year by year. is very remarkable that our trade in Opium with California, Australia, and a few other places, has en increasing, that our Chinese population has not been declining, and that nevertheless our Opium m has been declining. What has happened in the Straits Settlements? The farms there sold in 1876 for $837,000. They have been re-let now for $1,020,000, the increase in all the Penang farms being $161,000, and in the Singapore Opium farm $28,000. Whilst they have been increasing, we have been falling back. In Hongkong, there are 130,000 Chinese; in the Straits Settlements, 101,000. How is this to be accounted for? There are three means of ascertaining what really is the amount of Opium consumed by the Chinese, and what the Opium farmer ought to divide with the Government. The first depends upon having an intimate business knowledge of the Chinese, of understanding especially the means they have of dealing with questions of this kind, in short to have that genuine aquaintance with the trading operations of the Chinese, which would enable the Government to form for itself an independent opinion. In addition to that, it is important to have before the Government, authentic facts and opinions from the European houses importing Opium, finally the Hongkong Government is in a position to obtain information from the Chinese Maritime Customs, who have accurate means of knowing the number of chests of Opium consumed in this Colony. With these three sources of information at the disposal of the Government, the Opium farm ought to sell for its proper value. Now, what had the Government before it when the farm was sold? The Government had its own knowledge somewhat imperfect, I fear, of the Chinese, of their business habits, and of the jean, which they would endeavour to get this form. The Government also had before it stament- from S ing European importers of the drug into the Colony. But the Government did not appear to bise any information from the Chinese Maritime Customs' officers. Now, with respect to the informs tor ained from European houses; in looking through the papers on the subject, I observe an important of information was communicated by Mr. SASSOON. The facts he laid before the Government I e had an opportunity of testing, and I find they were perfectly accurate. They have been the independent testimony I have obtained of the officers of the Chinese Maritime Cases,
| supporte l rtunately, the Opinza farm was sold not upon the date furnished by Mr. Sassoon. Had it been, ught to have realised a far larger sun.
30.
But,
How ought an Opium farm to be sold? If you get a number of tenders, and assume that they all genuine, you are very likely to be mistaken. If, on the other hand, you do that which đẹ Singapore Government threatened to do, which the Government of Saigon threatened to do, which tes done before now by the authorities in Netherlands-India, where they have a population of 300,000 Chinese to deal with, or what I myself had to do in Labuan, then indeed you at nice deal with a way which enables you to get at its fair value, and which compels the Chinese train to pay to Government the fair proportion they should of a great business and large profits. When I went he little Colony at the other side of the China Sea, $440 a month was received from the Opium£ It had been $450 a month, but the farmer went to my predecessor, and explain that he was g ruined. Fortunately, on passing through Singapore, I had the opportunity of seeing Sir RY ORD, who pointed out to nie the proper way of dealing with the Opium far and soon after arrival in Labuan, I had the satisfaction of learning from one or two of the leading Chinese enchants that they were really willing to give me the best advice and assistancey could on the question. 1 well remember one of them (Mr. CnOA MAпsoo) came to me at Govt House and said The Opium farm is undersold. If you choose to take it into your own and and let the superintendent hoil the Opium, instead of selling it at 8440 you will be entitled to AKDEN lle gave roc his figures. He said the number of Chinese is so much, the export of preprise pium so
meth nuch, the Government is entitled to expect a fair share, and the farmer will have a profit. "I took him advice. The result was that in a few weeks the Opium farmer came and tered $600. That was declined. He then offered $800, and before the end of the year, when were making our preparations teal with it, he offered $1,000; and before I left that little Colonyos that Opium for $1,450 a month. Thoroughly competent judges--I need not quote the --are of opthat your Opium farm, instead of declining, ought to have been ingr of fetching only $132,000, ought to have fetched nearer a quarter of a million this west, HARRY ORD resolved to exact a larger share of the profits some of the Chinese in Singapore Opinn farmer in Johore would make all the Chandoo, and that the Singapore Governadet n by the attempt to increase the value of the farm: and to me in Labuan it was also pointed out that flic profit would the Opium farms in Brunnei if I persisted in asking more than the $140. It is the old story uch things are always said, and I believe they have been said here too but itlière is a way of deg with them, and no anticipation of what might occur at Macao ought to preventaus
'sell
No comments yet.
Private notes are available after approval.