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A SUITABLE RESERVE.
The hon. member went on to suggest that economies could be carried too far, and said that in his opinion the financial situation was not such as to necessitate
applying the axe to works urgently re- quired and went on to remark that I suggested last year $5,000,000 as a suit- able figure for a reserve. Speaking under the same conditions as last year I should repeat that, but speaking under the conditions as they exist I am by no means sure that I should. Five million dollars is a nice sum to have in hand for a rainy day when everything is going satisfactorily, and revenue meets expenditure but if your revenue for reasons beyond your control is ex- tremely uncertain and may very likely
ecme very far short of balancing your expenditure, I think it is desirable to keep your reserve as high as you can by cutting out all work not absolutely necessary. I trust and believe that in a few months, or a year's time at the latest, the Colony will be able to bring forward a supplementary list of works which will enable the hon. member to see the streets properly named and the other things he has suggested carried out, but at the present time I deprecate taking a too optimistice view of the situation which cannot be said to be entirely satisfactory.
EDUCATION.
I have left to the last the question of education, which was raised by the Attorney-General, and by the senior Chinese member. I am afraid I was so wrapt up in the wonderful construction of my predecessor's last paragraph that 1 rather missed the exact meaning of the Attorney-General's remarks. I think, however, it must be admitted that some- thing has gone wrong with education as applied to the Chinese from Western quarters, and that part taken by stù- dents, who should be supposed to have acquired an intelligence beyond that of their uneducated countrymen, has shown that they possess less than the beasts which perish. I am inclined to agree with what I know is the view of the Director of Education. Our mistake has been in attaching too much importance to Western education, from which, if you come to examine the matter very closely, it is not clear that all Occid- entals benefit very greatly. It is cer- tainly a mistake that we have not paid more attention to the vernacular educa- tion of Chinese. I may tell you that the Director of Education is devoting much time to the discussion of this subject with my entire sympathy and support, and I hope that in due course it will be possible to provide a chain of Chinese education from the vernacular schools for Chinese to a Chinese faculty in the University. I think I have dealt with all the points raised, but if there are any other points hon, members desire me to dilate upon further I shall be prepar- ed to do so. (Applause.)
UNOFFICIALS' REPLY.
Hon. Mr. HOLYOAK: I wish to reply to some of the statements which have been made, but at the outset I should like to say that the Unofficial Members did not realise that this would be the last occasion on which the Colonial Secretary would be present at the meeting of
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