CO129-221 - Governor Sir Bowen - 1885 [4-6] — Page 130

Govern

che

over drafts

of

I have

he sitation

in

Report on the Question of the Loan proposed to be raised in London for the Colony of Hongkong.

129

recommending

the Governor

this arrangement

to approve

for the

the year

1886. There will

then

be

exity

eity for

taking steps for raising

money

least

a

in Loudon for at

tivere morik_

that tiine

ney

urney

༧༣༥

will, there

is every probability, be obtainable

far more

I think it is extremely doubtful whether it would be possible at the present moment to raise money in London at the outside rate of 41% contemplated by the Crown Agents; and perhaps as the Imperial Government has declined to guarantee a loan by this Colony it may be difficult to place a loan on the London market even bearing a higher rate of interest than 44%, except at a price very considerably below par. The quotation for consols was yesterday as low as 943. It must be remembered also that public attention has been called to the defenceless state of Hongkong by some of the English newspapers and this circumstance will be taken into consideration when a loan without an Imperial Guarantee is attempted to be put on the market.

2. Under these circumstances I think it advisable that the Government should postpone for the present any endeavour to raise money by borrowing in London, and I think that this could be done for one year or if necessary for two years.

3. The balance of Assets of the Colony on the 1st January last, is estimated at,

I see no reason for anticipating a reduction on the revised Esti- mates of Revenue of 1885 sent home in January last,

Add the unclaimed balances transferred to Credit of Colony by Ordinance No. 7 of 1885,..

$ 659.470*

1,137,558

F

27,000

$1,824,028

The revised expenditure of 1885 is, and extraordinary works,....

.$1,092,981 594,700

$1,687,681

cary terms

than it

Could be

at

present

reut.

(Séqued) W. St. Marsh

Audit Offico

Auditor General

K.

/

Uprie, 1885

The estimated balance of Assets on 1st January, 1886, is therefore,.$ 136,347

And, if absolutely necessary, this amount might be still further increased by effecting reductions on public works proposed to be executed this year.

4. The expenditure on extraordinary public works during 1886 might be limited to $400,000 to be divided between Sanitary Works and the Taitam Water Works. The completion of the Military defences estimated at $52,000 and of the Central School estimated at $40,000 might fairly be charged against current Revenue supposing that no provision is made in next year's Estimates for interest and sinking fund on proposed loan.

On this basis it would be necessary to borrow during the year 1886, a sum of about $265,000 or spreading the expenditure of $400,000 over the whole year rather less than $33,500 will be required monthly. Now the balance of Assets will meet the first four monthly payments of 1886.

* The actual amount of the balance of Assets has, since this report was written, been ascertained to be larger than here shown, viz. $729,562,