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becomes even worse when it is looked at in the view of our own currency. In the despatch of 1889, to which I have alluded, it will be found that the Secretary of State in arriving at this sum of 100,0001, and in drawing attention to the proportion it bore to our revenue, took the exchange then current as 3s., at which rate 100,000, are equivalent to 666,666 dollars. In 1894 this same 100,000l. was to cost 929,118 dollars; in 1895 it was estimated at 923,077 dollars; and to prove to the Council how inadequate is the abatement, deducting the 20,000, allowed off the contribution of 1894, it gives in round numbers 729,000 dollars. To arrive at this I have taken the payments for the first three quarters of the year and added thereto the 25,000, which yet remains to be paid at the exchange fixed by the Treasury, which is as low as 28. For 1895, 90,0007. is estimated at 830,770 dollars; that is to say, 164 000 dollars in excess of the amount of dollars computed by the Secretary of State at the time the contribution was fixed in 1888. It represents 22 per cent. of the estimated revenue, as against 17 per cent. in 1888, and 15 per cent. in 1889.
This, then, sir, is the solution offered to the Colony from a financial point of view for the coming year, and, so far as we can understand, for the year only. We are entirely left in the dark, and if Her Majesty's Government have arrived finally at this decision. they have done so without waiting for the result of the letting of the farms, which has brought au increase of 102,000 dollars only, as against over 500,000 dollars in 1889, when they in effect fixed the contribution. It will therefore appear, from what I have said, that, apart altogether from the considerations as to the amount in sterling, it becomes an increasingly grave matter when we are called upon to pay upon that basis. So anprecedented has been the fall in the value of our currency, that the relief in 1895, expressed in sterling at 10,0004, leaves us with an actual increase of 244 per cent. on the amount of dollars paid in 1888. Sir, it is this element of exchange which constitutes such an enormous burden upon the Colony, of which Her Majesty's Government apparently has shown little appreciation; and no satis- factory solution, so far as the Colony is concerned, can be reached without taking note of this question of exchange. In the despatch of December, 1889, it is laid down as one of the first conditions that the contribution should henceforth be paid in sterling, or that it should, if in dollars, be paid at the fixed Treasury rate; attached to the despatch is an Appendix (C), which shows that, in the course of some 13 years, the lowe sustained by the Home Government by exchange was 58,000, the half of which the Colony was called upon to make good. In debating this question for the first time, in 1890, Mr. Adamson drew attention to this matter. He admitted that circumstances had greatly altered with regard to the course of exchange, and that he was not disposed to dispute that we should recognize the change which had taken place, that we should be ready to accept the claim which the Secretary of State had made, and compound for it by the payment of 28,000% At that time all efforts were directed against what was considered, and is still regarded, as the inequity of the arrangement which was proposed, of the proportion chargeable of the whole cost of the garrison. and indeed the question of exchange did not then arise in connection with us. The course of exchange at that time told rather in favour of than against the Colony. Thus accepting the standard of 666,666 dollars as assessed at in 1888, we paid in 1890, 577,633 dollars, in 1891, 622,850 dollars, in 1892 the cost was 667,956 dollars, and it was not till the disastrous year 1893, when the Indian mints were closed, and the price. of silver gradually fell, that we begun to realize the consequences; and in 1893 we paid 752,522 dollars. Sir, the Secretary of State, in his despatch of January, 1891, specially points out the advantages to the Colony, in common with other silver-using countries, derived from the rise in the gold value of silver, and, notwithstanding all that has taken place, I am loth to believe that he is ready to abandon that argument now that it has happened that the boot is put on to the other leg. Admitting, for the sake of comparison only, that the contribution of 100,0001 is continued, it will be seen, by reference to the Statement C, that, whereas the loss from exchange to the Imperial Government from 1876 to 1888 was 316,419 dollars, in the five years 1890 to 1894 the loss to the Colony is 216,749 dollars; taking the estimate for 1895, the difference between the amount entered for that year on the estimates now before us and the amount taken in 1888 by the Secretary of State, shows an increased cost of 256,411 dollars; so that in the six years this contribution has cost the Colony an increase of 473,160 dollars, as against the loss in 13 years to the Imperial Government of 316,419 dollars.
Sir, the comparison of the year 1895 alone shows that the higher of the two sums offered to us, 20,0004, would be insufficient to meet the difference in exchange. But that is not all, for it is impossible to foretell what will be its course, and whether we may not be called upon to pay even still more in dollars. It is this uncertainty which paralyzes the course of the Government, which disorganizes all our finances, and which places us in constant difficulties. Therefore, the ouly hope to arrive at any satisfactory conclusion is the payment of this Military Contribution in our own currency, based upon a proportion of the actual gross revenue. There are many advantages (sic) in this course, but they are, to my mind, all outweighed by the fact that we shall know where we stand. The increase in the prosperity of the Colony will add to the contribution to Her Majesty's Government, and if evil days come again to us, the Imperial Govern- ment will, as the parent country, share in our decline. I do not enter into details.. I have no doubt the suggestion will be met with difficulties-that it will be met with a
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negative in the first instance; but we must press it onwards, and, as a first step in that direction, I move that the vote be reduced to 595,000 dollars, which represents a proportion of 15 per cent. of the estimated revenue; and exceeds what was considered as amply sufficient to meet the demands of Her Majesty's Government in the resolution of February, 1890, to which I have already referred. beg to move the reduction of the vote for Military Contribution to 595,000 dollars.
We
Mr. Hüttenbach-I beg to second that, because I quite agree with the hon. member who has just spoken that the contribution should be founded on a maximum percentage according to the prosperity of the Colony. That would be equitable for all contingencies. It is quite irrational to ask any one in this country to consent, binding ourselves to anything to be fixed in pounds sterling or dollars, because we do not know but the exchange or the dollars may at a future date mean more than the whole revenue. The system of percentage is equitable. It may at times give the Home Government much more than they asked for, and no doubt we would all be delighted if at any time it came to 200,0004, instead of 100,0002 If we can only make it understood at home that the position is such that the money is required to retain British trade at these ports. I think it would be gladly given. I fear more oppositiou to this locally when, considering that Singapore members yesterday objected to have a port trust, because we have Tanjong Pagar and New Harbour. The opposition to do something for Singapore's trade I fear more from this table than from Her Majesty's Government. I do not agree that it is advisable to appeal to the Privy Council. I think the constitution is such that, like Parliament, this Council is omnipotent. This Council is the Privy Council to decide what is advisable for the peace, order, and good government of this Colony. If we were to go to the Privy Council, it would amount to this Council asking to have powers curtailed which we now possess in full, nor would it be an advertisement. What we should advertise is that we want to pay a per- centage, and a liberal percentage. I don't say that 15 per cent. is the final offer of this Colony. In being liberal we shall have the sympathy of England; but if we went to the Privy Council we might lose sympathy, as it would seem as if we wanted to repudiate the obligation as a whole. This is just what we should take great care not to do. It is not to insist on the constitution, but to get it altered, what we want. are supposed to decide what is for the good of this Colony. But this is really not left to this Council. As long as Secretary of State orders the official vote, so long it is left to be decided by the Secretary of State. Thus it is an alteration of the constitution which is required. But in that direction I fully see that as a naturalized subject I am in a difficult position. It would be said, if we Englishmen are contented with this constitution, why should it not be good enough for you a naturalized subject? And, therefore, until my unofficial colleagues are with me, it would be impossible for me to proceed, but I know this, that if they thought that this Colony could only shoulder a tenth part of the bayonets that America could in the last century, this question would have been settled at home long ago. As long as it is not fixed on an equitable principle, it remains only settled by might. On the other band, right is also a power, and if we only always keep right on our side we need not despair that ultimately it will be settled satisfactorily. The hon. meraber says we have overpaid 200,0004., I think it is 300,0007 The amount formerly agreed upon is 50,0007, and all since taken from us over that is an over payment, and in dispute. What Mr. Shelford has said regarding the closing of the mints is a strong argument also in another way, because as the Home Government has authorized the closing of the mints, they have brought about the depreciation of silver, and it is thus through their action that the increase arises. It was at Manchester, I think, that Lord Salisbury said England should bear part of the losses of the silver countries caused through the closing of the Indian mints. Well, here would be a chance for the present Government to show that they endorse these views. Anyhow all paid over the old amount is still in dispute, and forms a claim. And I think that claim we should properly formulate. It should be clearly shown that all that has been taken from the Colony over 50,000. in previous years bas never at any time been taken with the consent of the Colony. The orders of the Secretary of State can never amount to consent. Our claim will have to be taken into consideration, when a final settlement is arrived at. But nothing can be considered as final settlement until arrived at by the approval of the members of this Council voting as a whole; but freely, and in accordance with their own convictions, and not on the order of the Secretary of State. At the same time, I think, from the replies in the House of Commons and other indications, we are nearing a settlement. If I may judge from the answers given in the House of Commous, your Excellency has taken it up in the way of exchange. Hitherto it has been so many pounds more or less, and that made a quite different effect, but the moment you have taken up the question of exchange and the principle of percentage, leaving it open what the percentage is to be, everybody in England and anywhere will say it is the right principle to go upon; and, if I may venture to prophecy, I would prophecy that in this despatch the Secretary of State admits the principle of percentage. But that, on account of the budget of England being kept in sterling, a proportionate amount in sterling will be fixed each year, leaving us the risk of exchange for that one year only. That I for one, would consider fair, and then only the amount of the percentage would still have to be settled. In order to enable us to get a satisfactory settlement regarding this we shall have to persist to the last moment, and, therefore, I cordially support the resolution of the hon. member.
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