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as readily obtain the same price as in 1889, I have reason to doubt whether, unless under exceptional circumstances, the price to a buyer would be any less now than then. On this point I will read what is said to me by a gentleman, whose position :- The is one likely to render him specially well acquainted with the subject "value of Marine and Inland Lots has not in my opinion declined since 1888. The "intrinsic values of town and suburban lots have increased within the last two years "to the extent of $2,000,000 at the least by new buildings and improvements. "Even where no improvements have been effected no house property in Victoria "can be purchased now, under ordinary circumstances, at a less price than in 1888. "House property in the villages has increased in value particularly at Yaumati, "and the only apparent depreciation is in suburban property which is occasioned solely from over-building. A great increase in rentals took place in 1888-89, "owing to the great number of two-storied houses which were then pulled down "for the purpose of building houses of three stories in their place. During the period of pulling down and re-building there was a dearth of house accommodation "and many families left the Colony not being able to pay the higher rates demanded. "I find that Chinese tradesmen formerly paying at the rate of $35 were compelled to pay $50 a month for rent or leave and lose their business. Then came the "over-building, upwards of 700 new houses being built to meet a demand for about * 150 houses. The reduction of rents followed of course, but I do not find that "rents in Victoria have decreased except in cases where they had been previously "raised to an almost probibitive extent, and there is no general appearance of "reduction in capital values."
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Now though this gentleman may possibly be somewhat over-sanguine in his views, I myself have reason to believe them by no means far from the truth, and I know them to be correct as to the increased value of land in the villages. In any case they make clear that some of the causes of depreciation are entirely consistent with the absence of any general decline of prosperity.
To sum up the situation. While it must be admitted (1) that a large sum of money has been lost to the Colony in outside enterprises (2) that owing to the great building operations of recent years, the supply of houses is now considerably in excess of the demand and (3) that the value of land has consequently fallen Yet below what I not indistinctly intimated as the inflated values of 1889. on the other hand there are: (1) in the prosperous condition of all our leading enterprises and industries, (2) in the increased quantity of shipping at a time of unusual depression all over the world, (3) in the increase of the regular trade of the Colony as evidenced by the Imperial Customs returns-and considering all things (4) even in the small decrease, if there be any decrease, in the Bank deposit accounts--there are, I in all these things indications of distinctly favourable
say, promise for the future, and such, I venture to think, as give strong grounds for the belief that any depression that exists is merely temporary, and as on many former occasions in the history of Hongkong is only the precursor of still further increase of prosperity at no distant time. It may be judged therefore from what I have said that I do not at all share the gloomy anticipations of the Honourable Member. You no doubt have frequently observed that the organisers of Chinese processions, in order to make a more imposing show of followers, will engage coolies whose labour-soiled rags are barely hidden by coats thrown over them resplendent in gold and colour. Now it seems to me that the Honourable Member hus reversed this process, and has succeeded for the moment, but only I trust. for the moment, in throwing a squalid covering over the brilliant uniform in which Hongkong usually appears to the outside world, and which I shall still venture to believe is rightly belonging to her.
Before coming to the financial position of the Colony, which the Honourable Member regards as so unsatisfactory, I think it right, however invidious may be the duty, of touching on another subject, akin to it, respecting which the Honour-
able Member's statements, if left without criticism, would do a serious injury to the credit of the Colony if, as is probable, it should shortly become necessary to raise a loan for Public Works.
After giving various reasons why the Revenue was likely to dwindle, and why presumably if confined to its present sources, it would be insufficient to meet existing charges on it, he proceeds to say that the taxes are already very high, and that though rates at 13 per cent. on the rental appear moderate, they are in reality heavy inasmuch as rents are here about three times as high as in England; in fact he gives the impression to the outside world that the taxation of the Colouy is already exceedingly burthensome and that the Government relations with the people of Hongkong are analogous to those of a landlord with ruck-rented tenants. I venture to think that in this matter he has given a very wrong impression; and in fact, speaking from experience which is by no means a narrow one, I can state the confident belief that with probably the single exception of the people of the Straits Settlements, if that be an exception, the people of Hongkong are less taxed, and probably far less taxed, than any other equally or more important community in the whole world having a pretention to civilised Government. There are indeed within my experience very few cases where an urban population has not to pay other heavy direct or indirect taxes, besides all the rates and taxes in an equal or greater degree which are paid by the people of Hongkong. To take the case of the mother country with which the Honourable Member has instituted a comparison in the matter of rents. There are few if any important commercial or manufacturing towns in England where the rates are less than 6/- in the £ or 30 ° on the rateable value, and this independently, where it has not been commuted, of some -/9 in the £ inhabited house tax on the actual rental; and I was informed only the other day by a proprietor of houses in the City of Norwich that the rates there were 18/- in the £ (90%) on the rateable value, or some 80 per cent. on the actual rental. I do not forget what the Honourable Member alleges as to rents here being about three times as high as in England, but there as in other passages of his speech I am disposed to think that he has unwittingly used the language of hyperbole. No doubt there may be found places in England where houses are cheaper by 3rds than here, but on the other hand I know well that there are other places where they are not only not cheaper but considerably dearer than here, and judging from what I have learned from a gentleman specially experienced in this matter, I apprehend that the case would certainly not be understated if rents here are estimated at double those of England for houses of equal size in equally favourable situations as regards similarly important centres of business. The mere rates of Hongkong independently of the inhabited house tax are therefore certainly not above, and probably below, the average rates of commercial towns in England, and considerably less than half those mentioned in the case of Norwich; and in this view it is scarcely necessary to point out that the rate-payer of Hongkong is in an incomparably more advantageous position than the English rate-payer. For the latter has to pay in addition to his local rates not only all other taxes that are paid here in an equal or greater degree, but he has also to pay income tax, property tax, (in addi- tion to the inhabited house tax before mentioned) servants' tax, succession duties, sometimes tithe rent charge, besides heavy duties on his wine, spirits, tobacco and tea, from all of which the Hongkong rate-payer is entirely exempt. Indeed if it were fully understood here how heavy are the burthens on people in England in similar positions with those of the people of Hongkong, I am unable to conceive that there would be the same display of opposition to the increased Military Con- tribution. For however unpleasant it may be to be asked to pay for what has hitherto been obtained free or for a comparatively small payment, I do not think there would be begrudged a contribution, which is after all but a small proportion of the cost of defence, if it were understood that our fellow-country mon at home are far more heavily taxed than we are, and it were borne in mind that they are alone paying the debt which enabled Great Britain and her people all over the
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