would be collected in 1881, he estimated it at $115,000, so that the increase which occurred that year was largely in excess of his anticipations. Now, there is one item in our revenue which, com- pared with the two previous years, shows no change, viz., $205,000 from the opium far.ner. I had the satisfaction of selling the opin farn a few years ago at an increase of price from $132,000 to $205,000. But it was said that I had rather unduly forced up the price of the farm, and it was anticipated that when next should have to dispose of the farm, it would be sold at a smaller figure than the current rate; and indeed one of my officials, a man of ability and knowledge of the Colony, in a communication he made in London to one of the gentlemen in the Colonial Office, expressed great apprehension with respect to the opium farm, and in a memorandum which was trans- mitted to me by the secretary of State, he said that there would be a falling off in the opium re- venue when the opin farm was sold this year. However, these anticipations have not been verified; I have sold the opium farm for 1882-3 for $210,000, so there has been no falling off in the current revenue, which is $205,coo. Now, in looking through the items of revenue which I am putting upon the table, you will see that in this return it states that there is a considerable increase in what are called fces of office. The increase in 1881 amounted to $20,215. On analysing that increase, which I do from a return furnished me by my honourable friend, the Colonial Treasurer, Captain Deane, I find the items of that increase are of importance in considering the question of the prosperity of the Colony. 1 find, for instance, that the items for licenses and fecs of junks, which amounted in 1880 to $18,000, increased in 1881 to $19.839. Now between the years 1880 and 1881, there was also an increase in the foreign shipping, and the foreign steamers pur- chased by the Chinese. The junk trade has to compete with the coasting steamers, and when we find that the trade of the coasting steamers, and the general foreign shipping of the Colony increasing at the same time with an increase in the junk trade, we have a combination which shows the prosperous state of the commerce of this Colony. With regard to the foreign shipping, I have not yet before me the final returns, but as you are aware, the revenue from the light dues furnishes a certain cri- terion for the increase or diminution of the
foreign shipping trade. I find that the increase on light dues of foreign shipping amounts to $2,660. Well, that seems in itself a small sum, but when you remember that the light dues only amount to one cent. per ton, upon the foreign shipping, the small apparent increase means an increase of 266,000 tons on foreign shipping in one year in the harbour. I believe that the tonnage of foreign shipping cleared and entered in Hongkong in 1831 exceeded 8,600,000. There are a few other items, which, though apparently small, undoubtedly indicate mercantile prospe- rity; those are the increase of our revenues from cargo boats and cargo boats' certificates, from the shipping of sailors, and from the examinations of masters and engineers, upon all of which items there is an increase in the past year. Under the head of miscellaneous receipts, I find a considerable in- crease in the revenue from the storage of gun. power and kerosine. The total amount of re- venne under the head of miscellaneous items in 1880, was $6,695, whereas in 1881, it was $18,394. The taxation of the Colony is at the present moment at precisely the same figure 25 it was when I first became Governor of Hong- kong in 1877, and the increase of revenue that has gone on is therefore an increase of revenue dependent upon the progress and prosperity of the Colony. I have not to ask your attention to the expenditure of the Colony. The expenditure in 1880 amounted to $885,000, whereas in 1881 the amount was somewhat larger, viz., $895,000. The difference, you will observe, between the revenue collected in 1881 and the expenditure of that year is about $400,000. You will, perhaps, inquire what has been done with that expenditure, and especial reference has been made to the expenditure of last year under the head of works and buildings. 1 find that the expenditure on works and buildings in 1881 amounted to $59,781, as compared with $50,568 in the preceding year, showing an increase of
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$9,000. Under the head of what are called inis. cellaneous services, there was an increase last year of $11,000. Now, with respect to works and buildings, the items showing an increase consist of repairs to buildings, amounting to $14,098, as compared with $11,923 in the preceding year. One large cause of increase is the typhoon break- water in Causeway Bay, the expenditure upon which is $30,095. The work is proceeding, and will be so far completed before the next typhoon season, as to furnish at that time, if we should have a typhoon, a substantial protection to the junk population. There has been a slight in- crease in the item of street lamps, which amounts to $21,418. There is an increase in the telegraph service from $2,900 to $5,600. As you are aware, our telegraphic communications are now con- nected with all the police stations in the Colony. Two sinall submarine lines have been laid across the harbour, and you are also no doubt aware that we are substituting iron posts in the place of the ordinary wooden poles. Amongst the other miscellaneous items which account for this in- crease I find the item of compensation to Mr. Coughtrie of $1,500. That compensation, I think, was claimed in May, 1878, at all events a considerable time ago, by Mr. Coughtrie, for an injury which he stated was done to his dwelling- house by the bursting of a drain, and he held the survery Department responsible for it. He applied for $1,500, and, after a very long inquiry into the matter, I am happy to say that the Earl of Kimberley sanctioned the claim, and that the sum of $1,500 has been paid to him. As to the ordinary services of the Colony, such as the provision on an efficient police force, providing a proper staff for the Harbour Depart- ment, and doing what is required for the other establishments in the Colony, I have no hesita- tion in saying that the Government has not been in any way backward; I think my hon. friend on my left, the head of the police force, will bear me out in saying that any expenditure required for that force has never been refused by the Executive, and the same, I think, will be said by the gentlemen at the head of the Harbour De- partinent As to our roads, streets, and bridges, i am on the whole perfectly satisfied with the state they are in. I have over and over again intim- ated to Mr. Price and to Mr. Bowdler that any as- sistance required for that department, 1 an pre- pared to sanction; and I believe the condition of our streets and roads, so far from being unsa- tisfactory, is highly creditable to the Survey Department. On the whole, gentlemen, I think you have no reason to be dissatisfied with the expenditure you have voted, and with the mode in which it has been laid out. There are certain works, which I was anxious to see carried out several years ago, with which at that time I remember the Surveyor-General expressed his inability to deal until the repairs to the Praya Wall had been completed. There is a provision for a new gaol on stone Cutters Island.
That is a matter which has been pressed very much upon my attention by the Government, and the Earl Kimberley has expressed an opinion that that is the only suitable site for the gaol. You are aware also that the work of establishing an Observatory at Kowloon is a matter of importance, and you also probably know that the plans and esti- mates for a new Water Police station at Kowloon have been laid before Her Majesty's Govern- ment. At to the water supply scheme, before I proceeded some months ago to Peking, I in- structed Mr. Bowdler to carry out what is known as the Tytam scheme. He recommended the getting out of persons from England who were capable of conducting technical work necessary for the carrying out of the scheme. I telegraphed for them, and in the meantime a question has been raised by a very eminent gentleman now in the Colony, Mr. Chadwick, as to going back upon the still more expensive scheme, in contrast to the later Tytam scheme, and he is about to report upon the matter to Her Majesty's Government. As to the Water Police Station, that matter has been delayed by a reference, very properly made to the surveyor-general, who is now in London. The plans of the Observatory have been referred to eminent scientific anthorities in London, and I am awaiting instructions before beginning the work. The question of the Gaol is also before the Secretary of State, and having been referred to
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