THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877.
THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877.
HIS EXCELLENCY then says:---Gentlemen, it becomes my duty to lay upon the table the existing probably reach larger figure. I now come to the licences. Of these licences, the important ones 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 for the expenditure of the Colony for 1876, it 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 expenditure of the same year had amounted to $902,500. More than that, whilst the revenue of 1876 was less than the expenditure of that year, it was also less than the revenue of the preceding year, and while 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 came 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's no doubt that that was a very respectable balance to have in the chest, and when my predecessor framed estimates which enabled him to draw only so small a sum as $17,000 from it, every one must feel that his estimates were sound 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 hand to stimulate the revenue, and on the other to carefully watch the expenditure. In a Colony such as this, a Crown Colony, the real responsibility devolves upon the representative of the Crown. The 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 and 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 his 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 in Crown Colonies is watched by the Governor 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 to be incurred in the month of May by various Heads of Departments. What was the use of putting them before me on the 25th May? The expenditure had taken place, and I 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 had been incurred.
The formality was gone through with great strictness for the Government 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 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 Department 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.
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 items 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.
How ought an Opium farm to be sold? If you get a number of tenders, and assume that they are all genuine, you are very likely to be mistaken. If, on the other hand, you do that which the Singapore Government threatened to do, which the Government of Saigon threatened to do, which has been 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 once deal with it in a way which enables you to get at its fair value, and which compels the Chinese traders to give the Government the fair proportion they should of a great business and large profits.
When I went to the little Colony at the other side of the China Sea, $730 a month was received from the Opium farm. It had been $800 a month, but the farmer went to my predecessor, and explained that he was being ruined. Fortunately, on passing through Singapore, I had the opportunity of seeing Sir HARRY ORD, who pointed out to me the proper way of dealing with the Opium farm, and soon after my arrival in Labuan, I had the satisfaction of learning from one or two of the leading Chinese merchants that they were really willing to give me the best advice and assistance they could on the question.
I well remember one of them (Mr. Choa Mansoo) came to me at Government House and said-"The Opium farm is undersold. If you choose to take it into your own hands and let the superintendent boil the Opium, instead of selling it at $730 you will be entitled to get $1,000 a month.' He gave me his figures. He said the number of Chinese is so much, the export of prepared Opium so much, the Government is entitled to expect a fair share, and the farmer will have a handsome profit. I took his advice. The result was that in a few weeks the Opium farmer came and offered $800. That was declined. He then offered $900, and before the end of the year, when we were making our preparations to deal with it, he offered $1,000; and before I left that little Colony I was able to sell that Opium farm for $1,450 a month.
Thoroughly competent judges—I need not quote their names—are of opinion that your Opium farm, instead of declining, ought to have been increasing, and instead of fetching only $132,000, ought to have fetched nearer a quarter of a million this year. When Sir HARRY ORD resolved to exact a larger share of the profits some of the Chinese in Singapore said the Opium farmer in Johore would make all the Chandoo, and that the Singapore Government would lose by the attempt to increase the value of the farm: and to me in Labuan it was also pointed out that the profit would go to the Opium farms in Brunei if I persisted in asking more than the $730. It is the old story. Such things are always said, and I believe they have been said here too;
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THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877.
THE HONGKONG GOVERNMENT GAZETTE, 24TH NOVEMBER, 1877. 523
HIS EXCELLENCY then says:---Gentlemen, it becomes my duty to lay upon the table the Esting probably reach larger figure. I now come to the licences. Of these licences, the important ones for the year 1878, and, in doing so, I have first to draw your attention to the financial statement white the spirit retailers', the pawnbrokers', and the Opium farm. Now, in every Eastern Colony they was placed in my hands immediately on my arrival in the Colony in April last. This is the retum fave licences or farms of this kind. I had to deal with the little Colony of Labuan, and had opportunities the expenditure of the Colony for 1876, it is dated the 4th April, 1877, and was issued from the of consulting the neighbouring Governors, the Governors of Singapore and Saigon, and others Colonial Secretary's Office on the 13th April. As you are aware, this return contains the last complex interested in the management of such revenue farms. It is of importance to know whether these farms statement of any one year's financial transactions of the Colony, and on any arrival my attention a really bring us in the proper amount of money. Now, what has happened about the Quium firm? at once drawn to this important document by the Colonial Secretary, Mr. GARDINER AUSTIN. I found It fetched in 1875, $137,000 for the whole year; in 1876, $133,000; and this year we will receive from on examining it that the revenue of the year 1876 had amounted to $885,308, whereas the expenditure only $132,000. The Opium farm is declining in value, because it has been sold to the Opium farmer of the same year had amounted to 8902,500. More than that, whilst the revenue of 1876 was less at a slight falling-off in value. Well, it is a curious fact that, while the Opium farm has been declining than the expenditure of that year, it was also less than the revenue of the preceding year, and while in value, the number of chests of Opium forwarded to this Colony have been increasing year by year. the expenditure of 1876 was in excess of the revenue, it was also in excess of the expenditure of the It is very remarkable that our trade in Opium with California, Australia, and a few other places, has preceding year; or, in other words, the authentic figures placed in my bands, showed that the revente been increasing, that our Chinese population has not been declining, and that nevertheless our Opium of the Colony was declining, that the expenditure was increasing, and had passed beyond the reven, farm has been declining. What has happened in the Straits Settlements? The farms there sold in being something like $17,000 in excess of the revenue. Now, how was that $17.000 paid? The 1876 for $837,000. They have been re-let now for $1,020,000, the increase in all the Penang farms $17,000 came out of the balance in the Colonial chest. The balance in the Colonial chest when the being $161,000, and in the Singapore Opima farm $28,000. Whilst they have been increasing, we estimates were framed, and at the end of 1876 amounted to $134,297. Theres no doubt that that was al have been falling back. In Hongkong, there are 130,000 Chinese; in the Straits Settlements, 104,000. very respectable balance to have in the chest, and when my predecessor framed estimates which enabled How is this to be accounted for? There are three means of ascertaining what really is the amount of him to draw only so small a sum as $17,000 from it, every one must fee that his estimates were shOpium consumed by the Chinese, and what the Opium farmer ought to divide with the Government. and prudent. However that may be, it was my dury, having to face a financial condition such as The first depends upon having an intimate business knowledge of the Chinese, of understanding this, to look very carefully at both sides of the balance-sheet of the Colony, to endeavour on the especially the means they have of dealing with questions of this kind, in short to have that genuine hand to stimulate the revenue, and on the other to carefully watch the expenditure. In a Colony such acquaintance with the trading operations of the Chinese, which would enable the Government to form as this, a Crown Colony, the real responsibility devolves upon the representative of the Crown. Th for itself an independent opinion. In addition to that, it is important to have before the Government, Governor is expected by his instructions to look most carefully in the expenditure of the Colony,
authentic facts and opinions from the European houses importing Opium; finally the Hongkong watch it month by month, and under the Treasury regulations which give him that authority and Government is in a position to obtain information from the Chinese Maritime Customs, who have impose the duty upon him, it is laid down that as early in ach month as the expenditure for the accurate means of knowing the number of chests of Opium consumed in this Colony. With these three ensuing month can be seen with sufficient accuracy, the Heads of Departments are to draw up a requisition sources of information at the disposal of the Government, the Opium farm ought to sell for its proper in accordance with the classified list of heads in the estimates, to be laid before the Governor for lås value. Now, what had the Government before it when the farm was sold? The Government had its sanction, and, if the Governor sanction it, a letter is written to the Head of the Department to that effect. own knowledge somewhat imperfect, I fear, of the Chinese, of their business habits, and of the mode in Such throughout the Colonial Empire is the manner in which the expenditure in Crown Colonies is which they would endeavour to get this farm. The Government also had before it statements from the watched by the Governor under the Treasury instructions. On the 25th May, I made a mint leading European importers of the drug into the Colony. But the Government did not appear to have that I did not see that the Treasury instructions in this respect were complied with in this Colony.
any information from the Chinese Maritime Customs' officers. Now, with respect to the information On the 25th May, I received requisitions for expenditure to be incurred in the month of May by obtained from European houses; in looking through the papers on the subject, I observe an important various Heads of Departments. What was the use of putting them before me on the 25th May piece of information was communicated by Mr. Sassoon. The facts he laid before the Government I The expenditure had taken place, and I had 6 power of checking it if I thought it necessary have had an opportunity of testing, and I find they were perfectly accurate. They have been supported to do so. Accordingly, I inquired how it came to happen that the requisitions did not come het by the independent testimony I have obtained of the officers of the Chinese Maritime Customs. But, the Governor in the time laid down in the reasury instructions, and then I found it had been the unfortunately, the Opiun farm was sold not upon the data furnished by Mr. Sassoon.
Had it been, practice for some years to send in the requisition for expenditure near the end of the month in it ought to have realised a far larger sum. which it had been incurred. The formality was gone through with great strictness for the Governme 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 a already incurred. Of course it may ccur to some of you that the Heads of Departments ar responsible officers, and that whatever Treasury instructions may say, Heads of Department 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 Treatury instructions. It does not follow that the Governor is bond every month to cut down the requisitions which come before him. As you all know, the very power of entting them down and the fact of the Governor's looking after these matters in good time from month wi month will often operate to check what may be neciless expenditure.
With respect to the question of revenue, I have been extremely anxious to ascertain how far fr revenue we have been receiving in the Colony is a healthy revenue, and how far it may be develope if necessary, without imposing any further taxation on the Colony. Now, to take the items as they stand in the estimates laid before you, you will find our first item is the land revenue. I estimate the for the year 1878 at $200,000. The actual sum collected in the first nine months of the
present yea under that he was $194,000. We expect to get a sum in the three subsequent months which w raise the total to considerably over $200,000, but in making my estimate for the next year, I ha confined it to the $200,000, and I do it with the assurance of the Surveyor-General that that sum 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. T 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 doub in most healthy manner stimulated the prosperity of the Colony and helped to give us this increasing infome. The next item is rents exclusive of land. I estimate that at a few thousand dollars less the actually received in 1876. It then reached $61,446. I estimate it for next year at $58,000, but i
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How ought an Opium farm to be sold? If you get a number of tenders, and assume that they are all genuine, you are very likely to be mistaken. If, on the other hand, you do that which the Singapore Government threatened to do, which the Government of Saigon threatened to do, which has been 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 once deal with it in a way which enables you to get at its fair value, and which compels the Chinese traders to the Government the fair proportion they should of a great business and large profits. When I went to the little Colony at the other side of the China Sea, $730 a month was received from the Opium being ruined. farm. It had been $800 a month, but the farmer went to my predecessor, and explained that he was Fortunately, on passing through Singapore, I had the opportunity of seeing Sir HARRY ORD, who pointed out to me the proper way of dealing with the Opium farm, and soon after my arrival in Labuan, I had the satisfaction of learning from one or two of the leading Chinese merchants that they were really willing to give me the best advice and assistance they could on the question. I well remember one of them (Mr. Choa Mansoo) came to me at Government House and said-"The Opium farm is undersold. If you choose to take it into your own hands and let the superintendent boil the Opium, instead of selling it at 8730 you will be entitled to get $1,000 a month.' He gave me his figures. He said the number of Chinese is so much, the export of prepared Opium so much, the Government is entitled to expect a fair share, and the farmer will have a handsome profit. I took his advice. The result was that in a few weeks the Opium farmer came and offered $800. That was declined. He then offered $900, and before the end of the year, when we were making our preparations to deal with it, he offered $1,000; and before I left that little Colony I was able to sell that Opium farm for $1,450 a month. Thoroughly competent judges-I need not quote their names are of opinion that your Opium farm, instead of declining, ought to have been increasing, and instead of fetching only $132,000, ought to have fetched nearer a quarter of a million this year. When Sir HARRY ORD resolved to exact a larger share of the profits some of the Chinese in Singapore said the Opium farmer in Johore would make all the Chandoo, and that the Singapore Government would lose by the attempt to increase the value of the farm: and to me in Labuan it was also pointed out that the profit would go to the Opium farms in Brunnei if I persisted in asking more than the $730. It is the old story. Such things are always said, and I believe they have been said here too; but there is
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