CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 2

C.ID Financial

1.0.A.G. Conf.

૨૧:૩૪.

Tos. preliminary survey of financial situation

The effect of the present proposals is

shown in the following table:-

2

Surplus or

Deficit $

Surplus of Assets at end of year.

$

1936 Appr. Est.

2,926, 303

9,661,366

Rev.

Est.

- 1,004,030

11,383,639

1937 Est.

—

3,498,910

7,884, 729

1936 Actual

1937 Rev. Est.

1938 Est.

529,331

12,917,000

926,000

11,991,000

9,000,000 (approx.)

(approx)- 3,000,000

It will be seen that, though a deficit is

expected for the year 1937 and a considerably larger

one for the year 1938, the surplus of assets at 31.12.38

is still estimated at (Hong Kong $9,000,000, i.e. it

will then be considerably higher than it would have

been at 31.12.37 if the 1937 Estimates had been

fulfilled in their anticipations. of this surplus

nearly $12,000,000 is in liquid form under the heading

of Cash Balances and Fixed Deposits. (The total under

this head on 31.12.35 was $11,607,204).

This surplus is not unsatisfactory for a

commercial centre not dependent on any one crop as its

source of revenue, and in a period of normal trade.

would

I think there be no objection to be found with the

0.A.G.'s proposals. He is satisfied that, in view of

the many necessary services that had been drastically

curtailed recently, a reduction of surplus assets, even

to the figure of $9,000,000, would be justifiable.

There