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(No. 19.)
My Lord,
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No. 5d.
Sir C. B. H. Mitchell to the Marquis of Ripon.
(Received 9th February 1895.)
Government House, Singapore,
15th January, 1895. With reference to the 5th paragraph of my despatch, No. 13, of the 10th instant,* I have the honour to inform your Lordship that soon after my return to Singapore yesterday afternoon I had an interview with Mr. Hüttenbach, when he definitely withdrew his resignation of his seat in the Legislative Council.
2. Just before seeing him I received a letter, of which I forward a copy, addressed by him to the Colonial Secretary, enclosing a memorandum, dealing with the question of the Military Contribution after 1895, drawn up, as I think, in a thoughtful and calm spirit, and which I respectfully commend to your Lordship's favourable consideration.
3. I enclose a copy of the Straits Times of the 12th instant, which contains a report of a public meeting which has been held during my absence, with the object of approving the action which had been previously taken by the Singapore members of Council, Justices of the Peace, and Chinese Advisory Board.
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Dear Sir,
Mr. Hüttenbach to Colonial Secretary,
C. B. H. MITCHELL.
Singapore,
14th January, 1895. Since I wrote you on the 2nd instant circumstances have changed considerably. It now goes without saying that, if his Excellency thinks I can be of the least use, that my services are in every respect entirely at his disposal, and that, if his Excellency wishes it, I am ready to withdraw my resignation.
I desire, however, before asking you to cancel my letter of 2nd instant, to avail of the opportunity and to lay my reasons for resignation personally before his Excellency.
2. Seeing that the Secretary of State asks for observations to guide him in fixing the Military Contribution after 1895, I have, while still a member of Council, drawn up the memorandum enclosed, in the hope that it may be of some little service.
I shall thank you to lay it before his Excellency the Governor with the request, if his Excellency does not object to such a course, to forward it to his Lordship the Secretary of State.
A. HÜTTENBACH.
The Hon. A. P. Talbot,
Acting Colonial Secretary, Singapore.
MEMORANDUM.-The Military Contribution Question in the Straits, after the despatch of
the Secretary of State of 6th November, 1894,
1. The despatch has led to the resignation of practically all honorary appointments in Singapore.
There may be differences of opinion as to the necessity, the wisdom, or the useful- ness of that step, or fault may be found with the organization, the choice of time of the movement, and the like. But the fact is there, that the best men of the Colony, some of whom Her Majesty's Government has acknowledged to have done much service, see no other way to protest against, or to get redress for, what they consider unjust and unfair treatment by the Home Government.
2. The idea that Her Majesty's Ministers should intentionally wrong, or play with the existence of, a Colony, for whose future they are responsible, I consider altogether too ridienlous to be thought of for one moment. But I believe such an impression exists now very generally throughout the Settlements. It is said this is a case as of
• No. 2051.
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Bome exacting tribute from a conquered province, and that the tenor of the despatch is a repetition of: Rome bas spoken the matter is finished."
3. But a careful reading of the despatch shows that the amount of 330,000 for 1896-98 is only provisionally fixed: that is to say, is not yet fixed at all. That the amount is to be fixed in 1895 only, when a forecast of the future is possible, and that observations from the Colony are invited. That when fixed it is intended to be reasonable and clearly to be mado dependent on the Colony being able to afford to pay it without incurring a deficit on the whole period. And a dissection of the views which led Her Majesty's Government to that decision leaves hopes that even this provisional decision, rests on misconception of facts, and that calling attention to these misconceptions in a calm and moderate spirit will lead, and speedily lead, to the so desirable final settlement of the question satisfactory to all concerned.
4. Amongst the paragraphs in the despatch which seem to show that the position of the Colony is not quite realized by Her Majesty's Government are the following:-
(α.) *
(1.) *.
assuming that the conditions remain normal, and that there is a continuation of that expansion in the dollar value of the trade, &c., Her Majesty's Government entertain the hope that the charge above proposed will prove to be a reasonable one." (Paragraph 9 of despatch.) to be borne by the people of this country (England), which are much more heavily taxed than the people of the Straits Settlements, and who are only able to devote to civil purposes about 36 per cent, of their revenue as against 80 per cent. or more so available at the Straits Settlements." (Paragraph 14 of despatch.)
5. The dollar value of our trade does not affect our revenue.
The dollar value of
our trade increases as silver declines, and sterling as measured by dollars gets dearer. The more silver declines, the heavier a sterling contribution of 100,000, will weigh on finances. Therefore, the more the dollar value of our trade increases, the greater the difficulty for the Colony to pay the sterling contribution as contemplated.
The quinquennial charge of 500,000%, cannot "prove to be reasonable" ueither on the experience of the past nor on the basis of present facts.
For the past the Colony was only able to meet it by drawing largely from reserves, and because the average rate of exchange was still comparatively high.
At present exchange, and on the basis of 1695 estimates, a contribution of 100,0001. would mean, notwithstanding the increased taxation, very large deficit.
That would mean, since the reserves are now exhausted, that the Colony would have to get into debt, which would mean, "assuming that the conditions remain normal" that the Colony would get hopelessly involved, even without loans required for public works, which cannot be stopped for ever if the Colony is to go on. It will likewise soon become apparent that large outlays of money will ere long have to be incurred, both at Singapore and Penang, for works to keep transit charges lowest possible, so that these ports may remain cheap and useful entrepôts for British manufactures.
6. The people of this Colony are, in proportion to their wealth and income, much more heavily taxed than those of England.
A balance of 33 per cent. of revenue for civil purposes represents, in proportion, in the case of England, vastly more than 80 per cent. in the Straits Settlements.
The one is a country in the highest state of civilization, where everything exists already, and where the care for futher improvements is divided between Government, numerous local boards, and private enterprise, backed by unlimited capital and credit. Here the country is new, still to be opened up, and everything to be done as yet, requiring outlay of money.
The Government stands alone, and the mission of the Colony is so peculiar that it can only be fulfilled by attracting people and trade through absence of heavy taxation.
But even leaving these considerations out of the question, 36 per cent. would leave to England about 32,000,0001, for civil purposes, and 80 per cent. to the Straits, about 320,000, that is about 188. per head in England, and only 11s, per head in the Straits. Yet the people of the Straits, being largely ignorant Asiatics, require, so to speak, more governing, per head, than do the people of England. They have to be obliged, or induced, to do things that the people of England do as a matter of course. This Colony to go ahead, and to properly open up trade, ought to be able to spend more on civil purposes than the United Kingdom; for our "civil charges" include a great many things that are not included in "civil charges" in England. But were we to spend in the same proportion only, our whole revenue would not be sufficient, and a subsidy would be required.
7. The belief is unfortunately more and more gaining ground that the Home Government does not mean to act fairly by this Colony. That they ask for amounts which it is impossible for the Colony to pay.
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