CO129-519-4 Adjustment of exchange account- payment of military contribution on profit on exchange 10-9-1929 - 10-6-1931 — Page 19

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The judgement of the Court was complied with by the defendant banking corporation on the 9th of July, 1929, the sum of $260,407.93, together with the accrued interest sum of $7,876.02 being credited by the Bank to the account of the Hong Kong Government,

EXCHANGE ACCOUNT,

2. With reference to paragraph 5 of your letter No. 153/546 of the 22nd of April, 1929, and my reply thereto No. 8/20/1929 of the 4th of June, 1929, the final examination of this Account for the year under review shows that exchange transactions have been accounted for in the Treasury Accounts in accordance with the principle laid down in the Secretary of State's Despatch No. 431 of the 26th November, 1925, with the proviso that the 20% on the nett profit of the dollar exchange has been carried to a Suspense Account, "Military Contribution". In this con- nection I would refer you to a copy of my letter No. 70 of the 30th of May, 1929, addressed to the Colonial Secretary and sub- mitted to you under cover of my letter No. 8/20/1929, request- ing information as to the ultimate disposal of the balance of the "Suspense Account Military Contribution" as at the 31st of December, 1928, $504,104.70. I have not at present been in formed of any decision as to the proposed adjustment of this amount held in suspense but I understand that the Government is addressing the Secretary of State on the matter.

ADJUSTMENT OF EXCHANGE ACCOUNT.

3. This Account, which I regret has become somewhat com- plicated of recent years, has now been adjusted in the Treasury Accounts and the liability shown on the Statement of Assets and Liabilities as at the 31st of December, 1928, represents the dollar book difference of sterling funds and sterling investments in the hands of the Crown Agents at the close of the financial year and may be accepted.

REVENUE.

4. The Revenue Accounts of the Colony were examined in accordance with the procedure adopted in the previous year and as submitted to His Excellency the Governor and approved by yourself in the official programme of work. Four hundred and forty (440) queries were issued during the year 1928, of which four hundred and thirty four (434) have been satisfactorily settled.

5. The total Revenue collected during the year, including proceeds from Land Sales, amounted to $24,968,398.88 being an increase of $3,623,863.16 as compared with $21,344,535.72 in 1927, and an increase of $4.865,008.88 in comparison with the Estimated Revenue of $20,103,390.00. There was, in addition, an opening balance of $632,672.91 which brings the total Re. ceipts available for the financial year to $25,601,071.79.

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6. The various items of Revenue which show an increase or decrease as compared with the estimates are set forth in the detailed statement of Revenue and I submit that the explana- tions tendered by the Colonial Treasurer may be accepted as The Revenue for the year exceeded the Expenditure by $4,870,829,55.

correct.

REVENUE INCREASES.

7. The following sub-heads of Revenue show the most noticeable increases as compared with the Estimates:---

Assessed taxes

Hawkers Licences Liquor Duties Opium Monopoly Pawnbrokers Licences Hong Kong Companies

Registration

Medical Treatment

Official Receiver's Commission Water Excess supply and meter

rent

$ 54,264.78

17,289.00

152,413.07

518,225.95

17,525.00

8,152.90

18,526.39

15,080.40

198,898.60

Message fees

77,517.66

74,400.74

Railway-Passenger Service,

107,746.07

Railway-Interchange of Rolling

Stock

17,976.38

Lands not Leased

38,684.74

Condemned Stores

181,751.72

Compensation in lieu of rates

21,831.85

127,632.64

1,485,285.65

Postage

Foreign Line

Other Miscellaneous Receipts Land Sales, Premia on New

Leuses

8. The number of Queries raised during the year under review shows an increase of 254 as compared with the Revenue Queries for the preceding financial year. The departmental ac- counts to which this increase can be mainly allocated are as follows:-Post Office: Radio Telegrams, Imports and Exports and Harbour Office and the following explanations are submitted for your information.

POST OFFICE: RADIO TELEGRAMS.

During the year the activities of the Radio Office have been extended to other Administrations resulting in an increase of messages which have been subject to detailed examination.

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