1935-10-04 — Page 2

Page

HONG KONG DAILY PRESS, FRIDAY,

SHOULD THE COLONY MAINTAIN

Conflicting Views Of The Unofficials

Sir Henry Pollock Attacks

Procedure As

Government

OCTOBER 4, 1935.

ITS RESERVES OR SPEND THEM?

Under Public Works Department, we agree that in these times of depression, it is advisable to re- tain as many employees as pos- sible on a temporary basis.

In regard to Government House and City Development, we con- sider that the Government is wise to call a halt for the time being. to a scheme of this expensive na- more ture which originated in prosperous times,

ANTI-MALARIAL WORK

"Unconstitutional'

"9

Strict Economy The Watchword For Year satisfactory progress which

W

ΠΟ

The debate on the Budget which took place yesterday lasted for about two hours. Sir Henry Pollock, Senior Unofficial Member of the Council, urged that on account must taxation he increased, but that Goverment officials' salaries should bear "unconstitu- the whole burden on the Colony's financial difficulties. He described as tional the action of the Government in consulting the Secretary of State as to methods of meeting a deficit-before the local Finance Committee's views had been obtained,

Sir William Shenton deprecated further of surplus balances and referred in some detail to the uncertainties of the silver situation and the fall in values in the local share market. He urged the Government to make a ten-or at least a 5-per cent cut in the Colony's total expenditure.

Reduction in the asse stent tax, the Hon. Mr. Kotewall argued, would make for the improvement of busines in Hong Kong. He also stressed the importance of closer relationships between Hong Kong and Carton.

""

The Hon. Mr. J. P. Braga's main suggestion was that more Government offi- cers should be local men. He brought up several suggestions, including the question of pig breeding in the New Territories, but one of his proposals-that more bus shelters should be erected in Kowloon--brought forth the reply from the Government that the question was more the Bus Company's affair.

it

In the absence of the Hon. Mr. W. H. Bell, the Hon. Mr. J. J. Paterson spoke on behalf of the Hong Kong General Chamber of Commerce, and said that reduction in charges upon shipping and in the postal rates would meet with general satisfaction.

The Colonial Secretary quoted trade statistics in support of a contention that Sir William Shenton's speech was unduly pessimistic; he assured Mr. Braga that it is in- tended to substitute local for European labour as opportunity occurs, though the process must be gradual. Finally he renewed the assurances ulready given that the Govern-

throughout the working year. ment's watchword is "economy

The Acting Officer Administering the Government, His Excellency Mr. N. L, Smith, expressed thanks to the unofficial members for their careful and generally kindly criticism of the Budget for 1986 as regards both details, and the larger prin- ciples"

However His Excellency was constrained to add:--

I

"I am very sorry to think that Sir Henry Pollock, whose long service on this"... Council and intimate knowledge of procedure give very great weight to any considered judgment which he may exp ess here, should apply the term "unconstitutional" to any action on that part of the Government leading up to the speech which I delivered three Mr. Smith then explained in detail the action weeks ago in introducing the Budget,'

fixing exchange," H. E. said:

the Government had taken, is to

4

The subject is not an easy one to discuss in open debate but I would only say that the proposal was given the earnest consideration of the Government before it was decid.

ed that such a course, to which there are certain objections at any time, would be par- ticularly undesirable at the present moment.

The meeting was presided over by His Excellency, the Officer Administering the

Government,

the Hon. Mr. N. L. Smith and there were also present:-

His Excellency the General Officer Commanding the Troops (Lt- General O. C. Borrett, C.B., C.M.G., C.B.E., D.S.O.)

The Attorney General (Hon. Mr. C. G. Alabaster, KC., O.B.E.)

The Colonial Secretary (Hon. Mr.

R. A. D. Forrest)

The Secretary for Chinese Alluirs

(Hoo, Mr. E. H. Williams) The Colonial Treasurer (Hon. Mr.

Edwin Taylor)

Hon. Dr. W. B. A. Moore (Acting Director of Medical and Seni- tary Services) ·

Hon. Commander G. F. Hole, R. N. (Retired) (Harbour Master)

THE SENIOR MEMBER

Hon. Sir Henry Pollock

As the Senior Unofficial Member I have been asked by my collea- gues to express our joint views upon the Budget for 1936,

economy, the Queen Mary Hospital is being vigorously proceeded with, from whilst the 75-foot road Causeway Bay to Ming Yuen (now known as King's Road); the Cen- tral British School and the new Kowloon Magistracy will be com- pleted next year.

RETRENCILMENT

of

(2) Increases in light dues and

in tees for

Government SIR WM. SHENTON

Buoys, and in other items of revenue affecting shipping. estimated to bring in $384,- 000.-

(3) The increase of the General

Unable To Share View

tha

solute predominance over silver market it is impossible for

the authorities to resort with the same conadence to the usual ad- Justing operations.”

I believe the above position has arisen on more than one occasion when a fight of currency from this

The Hon Sir William Shenton Colony might have taken place but for the action of the Chief Man- Bald:--

nger of the Hong Kong and Shang- hai Banking Corporation. The able

universal appreciation. way in which he has controlled our

A survey of the Colony's trade currency position has met with

agures is hardly encouraging and one knows only too well the dim-

Assessment Rate by 4% from 13 to 17%, to bring in about one million four hun- dred thousand dollars Those additional taxes, imposed to meet those increases of salaries, With reference in the Shing Munare still with us, and in times of Dani, we note with pleasure the depression like the present, they

are even less popular than when as my colleagues, highly

they were first imposed. has been made, enabling" "some water to be impounded from the first of last month. We congratu- late Mr. Gifford Hull and his Staff upon being so well forward with this important scheme.«

Shing Munreminds us of the excellent anti-malarial work which has been done by Dr. R. B. Jack son and his Staff not only in that the neighbourhood, but also io Peak District which is now more free from mosquitoes than it has been for many years past. Also much good anti-malarial work has been and is being done in Kowloon Tong, Stanley, Shek and else- where.

Sur-On a caretul consideration of the Estimates, I am unable to take, in a measure, the same view of this Colony's financial position In the preparation of a Colonial Accordingly the Unofficial Mem-Budget the following principles hers contend that the taxpayers of are, I think, fundamental:- this Colony are already paying (1) The Budget must be balanced. practicable no effort must be amply for those increases of salar-12) Where actual balancing is im- ies (which are still in fore) and

neglected to reduce the annual that, to make the taxpayers pay

deficit. more in 1936, if a sharp drop in the

dollar should cnbalance the Budget, is a palpable injustice to the taxpayers of this Colony,

"UNCONSTITUTIONAL” In such an event, as already Civil Servants ought stated, the solely to bear the burden of such taxpayers, who have already been sufficiently maleted.

a drop. to the exclusion

of the

At this point somehody may ask:---

"Why do the Unofficial Members raise tus protest just now Instead of waiting for the contingency 'to occur?"

5

(3) In framing estimates of re- venue and expenditure regard should be had not only to the conditions of the moment but als to the general probablli- ties over a cycle of years.

(4) While every effort should be

cult times through which all mer- cantile concerns are passing.

But for the favourable move- ments in exchange in the years. 1934 and 1935 the deficits, substari- tial as they were, would have been. considerably larger and revenue raising devices or curtailment of expenditure would "have become

essentiai.

·LESS HÖPEFUL VIEW The Honourable Colonial Treasur-

made by Government to assister, in his able and lucid Memoran- the recovery of trade it would dum, indicates under the heading not be proper to assume that recovery will be sufficiently rapid to justify regarding the present emergency as one of a purely temporary nature which can legitimately be tided over by the use of surplus balances. (5) Estimates should be drawn up

on the assumption that the present conditions are likely to prevail for some time to come.

GRAVELY PERTURBED

1936" the general falling off of

various direc- evenue and the possibility" of fur- ther shrinkage in tions. The Honourable Colonial also drawn one Secretary has notice to the same possibility. Personally I take an even less hopeful view; in fact, I am of the

opinion that there must be a fur. ther dwindling of our revenue.

"A full report by Dr. Jackson on during any-malaria)

...measures 1934 appears on pages 118 to 158 of the Report of the Acting Dir- ector of Medical and Sanitary Ser vices for 1934, and induces us to

Our answer to that, Sir, is that urge that if possible, more money we gather, from the above-quoted in the Colonial Secre- should be devoted to anti-malarial"

passage

Govern- work than at present included

tary's speech, that the in the Estimates for 1936...

ment has already been in com- We trust that the forthcoming munication with the Secretary, of

Hammer cemetery, extension at

State on the subject of the po- Hill will, in the course of the next sible deficit, and that the Secre- ten years, enable the Central Cetary of State has, already, with- metery at Kowloon to be released out, the Unofficial Members of or estimated deficit of $830,000, after Kowloon, the New Gaol and, most for building and other develop the Finance Committee of this ment purposes-â very necessary Council being consulted

step forward in the town-planning of Kowloon,.

The Unofficial Members

now

proceed to deal with one part of

Budget the Colonial Secretary's speech, to which they take the strongest exception.

The passage in question reads as follows:-

Way.

in any

A "sanctioned"

scheme whereby such deficit is to be met partly by additional taxation and party by cuts in the salaries of Government Civil Servants.

That procedure of the Govern- ment we object to as being uncon- stitutional

The principal items of the Pub- He Works Extraordinary which we aave on hand are essential to the "I accept these principles as im-colony and had already been too mutable as the laws of the Medes long delayed-chief of these are the and Persians and I am gravely Queen Mary Hospital, the Central perturbed at the prospect of an British School, the Magistracy at taking from our surplus balances important

of all, our Water Of these the Water the sum of $2.055,789, thereby in Schemes. one year reducing our surplus Schemes and the New Gaol are balances to the minimum gure Loan Works but the others have

State: particularly as it follows the venue. permitted by the Secretary of to be paid for out of current re- year 1935 in which we have already an estimated deficit of $152.966. and the year 1934 which had an actual deficit of $1,574,870.

This dipping, year after year, into our surplus balances must stop, or we shall inevitably and provisioned in a manner suitable ourselves in a most difficult post

tion.

No one will deny the importance. and absolute necessity of these works, nor will anyone cavil at the money judiciously spent on them, but the most scrupulous care must be taken to ensure that they are

We are painfully aware of the "In spite of all this, however, fact that the Unofficial Members the Government would be railing of this Council are in all matters in 1s duty if it did not contem of voting in a hopeless minority plate in advance the steps that but surely that fact makes it all will have to be taken in 1936 if the more imperative that they there should either be a sharp should at least be consulted before drop in the dollar rate or a ser-

any definite arrangement is come ious decline in revenue or DOS-

to with the Secretary of State for sibly both. As I have said, no

meeting a possibile deficit in the additional taxation has been im- finances of the Colony by means 2/0 3/16. Notwithstanding these those less fortunately

."all

of additional taxation.

circum- posed in the existing stances; but it is as well that a

VALUABLE PRIVILEGES warning should now be given

Perhaps we may be told that we that this may be necessary f

Unofficials shall be consulted, if the state of the public finances In 1936 should show some serious the emergency in question' should It is also desir- arise, but what a farce any such deterioration.. able that a warning should be consultation must be, in view of given that a temporary levy on the passage in the, above-quoted Government Salaries, both speech of the Colonial Secretary, dollars and sterling, may be ne-in which he says:--

"The Secretary of State has already given his sanction to action on these lines" ie, on the lines. of partly meeting such a deficit by additional taxation. In further support of our con- tention, that, in the event of such a deficit unfortunately arising, the taxpayers should not share the burden with the Civil Servants, we would point out that

cessary before the end of 1938 in the circumstances referred to, and that the Secretary of State has already given his sanction to action on these lines. It is unnecessary at the moment to into details of proposals which winly be required in the event of a contingency which we hope will not arise.

go

In 1934 we budgeted at 1/3 and were fortunate in getting an aver- age rate of 1/8 1/18, whilst to 1935

for the purposes, for which they have been provided and that mis- guided enthusiasm or 'Individual sentiment is not allowed to run riot in luxury and extravagance.

we budgeted at 1/4 and were lucky Care must be taken that we are Eldorado fos to" experience an average rate of not providing an

circura- favourable rates, substantial de stanced in South China, or creat ficits followed. To-day we are ing a standard which will be an budgeting at 1/8 and who will undue strain on our resources to

maintain. venture to foretell the future?

The exchange factor is always a problem in budgeting-to-day it is more than a prodien: it is menace.

SHORT SURVEY

Before proceeding further think a short survey of the local position is not out of place to en- The economic position which this able us to get a correct perspective Colony faces to-day is not only ur business conditions as ther in peculiar but, I believe, novel in its fact exist to-day.

The culties are not The stock market is a fair baro- history. the known factors, for these can meter and I have obtained the be met by counter measures, but market values of various popular It is the nebulous uncertainty. the shares, taking the highest prices sword of Damocles that hangs sus in the year 1933 and the approxi- pended which may or may not fall,inate values to-day... ■' probably it will, but when no uns can tell.

-

In 1933 the shares of the Dairy Farm. Ice and Cold Storage Com. pany, Limited touched 204: to-day they stand at 181.

retrenchment Regarding Staffs, we are glad to learn that the Government is carefully con- The Hon Sir Henry Pollock, the

In the past we have always had senlor unofficial member said:sidering whether it is abolutely Your Excellency,

necessary to fill up Posts es va-

a sound currency basis to work on

In 1933 the shares of the Hong. Our Staff of CAV cancies occur.

STRONG OBJECTIONS

(1) Civil Servants possess the for the purpose of budgeting as Servants is a very large one, even

a soild and Kong Electric Company, Limited Whilst the Unofficial Members following very valuable privileges, there has existed

natural value of silver. To-day no touched 78: to-day they stand at after making the fullest allowance for the fact that the Government cordially echo the hope expressed damely, pensions, passages for

In 1933 the shares of the Hong At the outset we congratulate has also to perform the duties of a by the Colonial Secretary that themselves and family, housing or one can predict what to-morrow 324. and Mr. Municipality. Indeed it is con- such a contingency will not arise, rent allowance, privileged rates will bring forti.

For years past the currency Kong" aud Kowloon Wharf and Director of Public Works (Hon. Mr. the Colonial Secretary

R. M. Henderson)

Grantham (whose impending de- sidered by some that we have too and that our Budget for 1938 will for medical attendance, contin- parture from the Colony we very many Regulations in this Colony not become unbalanced, we strong-uity of employment, safety of em-policy of this Colony has been to Godown Company, Limited touch-

ployment and protection against keep the value of our dollar in line ed 145; to-day they stand at 73.

In 1933 the shares of the Hang with that of China. To-day the much regret) upon the able and and too large a staff of Subordin-ly object to any additional taxa-

(1) That, as the result of the margin is such that trading be-Kong Land Investment and Agency clear statement which has been ate Officers, fussing about and tion being imposed to meet any arbitrary dismissal, laid before us regarding the Bud-worrying people regarding the, such deficit in our finances, if it

present depression, very drastic comes almost impossible. The cur-Company, Limited touched 80: to- cuts have already been made in rency of China at the moment ts, day they stand at 22. get. We also thank the Colonial meticulous observance of the Re-should unfortunately occur.

Our contention is that any such Treasurer for His Jucid and in- gulations.

the salaries of their employees, by I believe, no longer on sliver but is in 1933 the shares of the Hong formative Memorandum on

Also the prevalent notion that deficit ought to be made good ex-

a managed currency and who Kong and Shanghai Hotels, Láratted maily business houses in this Co-

knows what the next move will be? touched 10.00: to-day they stand financial position, and the Direc- Police Officers and Sanitary Inelusively by cats in the salaries of

lony, and.

The value of suiver has, we are at 3, tor of Public Works for his notes apectors acquire merit by prose Civil Servants.

In support of this contention of) That, in many British Co-

in 1933 the shares of the Hong on Public Works Extraordinary for cuting people is apt to render the

and to ours, we beg leave to remind the lonies, in order to meet bad times, told, been artificially enhanced by

facts, cuts in salaries or in allowances the policy of the United States of Kong Tramways company, Limited. 1936 and also for the information | Government unpopular which he and his staff kindly gave make the main in the street con- Government

have already been made and are America and that a continuance of touched 231; today they stand at us in Public Works Committee. alder that we could do with fewer

this policy will provide them with 10.65. still in force.

These shares represent a part of most of the available stolks of The Estimates contain Uittle con- of such Officers.

this metal. Who will venture to the life blood of this Colony and tentious matier, and it is fully

prophesy how long this polley will it is on the security of their values that much business is transacted. Mr. A. W. G. H. Grantham (Deputy realised that, in view of the estf

Since the preparations of this be maintained?

speech, there has been a slight ap- figures quoted for the year should be repeated as the lowest touched prehension in values so that the

this year.

Hon. Mr. M. J. Breen (Postmaster

Generall

Hon. Bir Henry Pollock, Kt. K. C. Hon Sir William Shenton. Hon. Dr. R. H. Kotewall, C.M.G.,

LL.D.

:

Hon. Mr. J. P. Braga, O.B.E,

Hon. Mr. J. J. Paterson

Hon. Mr, T. N. Chau..

Clerk of Councils)

After the Hon. Mr. R. A. D. For

which were

of magnitude.

Dur

by bandits

་་

cf certain

which preceded the considerable increase in salaries which came into force on the ist January, 1931.

These facts are:-

RESOLUTE COURAGE We approve of the additional

To pass cn-We have no doubt are being

(1) That the Unofficial Members, that the residents of this Colony Police defences which mated revenue for 1930 being so erected on the frontier and of the much lower than that for 1935. extra Police engaged for that pur in June 1930, very strongly oppos will continue to face up to the The growing population of ed such increases of salaries, and present difficu ́t situation with re- it is essential that the Gavern- pose.

mast but we courage, rest, the Colonial Secretary badment should refrain from starting the New Territories justifies bet that it was then pointed out by solute been sworn in, the Hon. Mr. C. G.

Senior European Unofficial Mem-saddled with additional taxation. Alabaster, the Attorney General, expenditure on new Public Works ter Police protection against ralds Mr. John Owen Hughes, the then strongly deprecate their being We are convinced that a low moved the first reading of the fol- At the same time we regret that We agree to the new Posts in ber see Hansard for 1930, at p77) lowing two bills

many useful Public Works, over the Treasury and to the proposed that, at the exchange of 18, 10d. exchange would much benefit our Oncers such increases of salaries would local Industries, and would a'so, seconded by the Hon. Colonial 100 in number, in the list marked Aviation Meteorological

"considered but not included in for the Government Observatory, result in the Colony having to pay the draft estimates" (with which and, on the ground of economy, two million dollara extra for the increases in sterling and dollar the Government kindly supplied we agree to the proposed engage- "A Bill to provide for the Pre-us) have had to be postponed ment locally of ten Asiatic Banit- safarles.

ary Inspectors, to replace sterling- vention of Cruelty to. Animals" owing to present financial stress.

It is satisfactory to note that, paid Officers. The. Hon Mr. R. A. D. Forrest then moved the second Reading for the time being, no new taxa- on is being imposed, and we are or:

glad to see that the Government is reducing the charges for excess water.

Secretary:

A Bill to send the Defence Contribution Ordinance, 1091."

"A Bill to upply a sum not ex- ceeding $23,840,416 to the Public "Bervice of the year 1936." This was seconded by the Hon. Mr. Edwin Taylor.

by causing an influx of capital

for investment, tend to relieve the present abnormal sagnation in business conditions. Incidentally, (2), That the direct consequences too, a low dollax would improve were (see Hansard for 1930 st...our tourist traffic.

In conclusion, we would add that pages 176 and 177) that the Gov-

we place great reliance upon that close co-operation between all sec- tons of this Community which has been of such marked asɛis-" (1) An amusement Tax, to pro-tance to Hong Kong's proga in

the past. duce 8 lakhs of dollars.'.

We approve of the two new Por tal kiosks and of the improved ernment were compelled, in order postal deliveries in outside parte to balance their Budget for 1931. of the Colony, and also of the to impose the following additional short-wave telephone transmitter taxation, namely: T It is also satisfactory the not- which was. recommended by the withstanding the need for drastic Economic Commission.

I should like to draw attention to an extract from the City Notes August last which states as fol- of the London "Times" of the 15th

lows:-

"Monetary disturbances was caused in the East when America

́LANDED PROPERTY was busy forcing up the price of Perhaps our most solid asset is allver," and now a great distur- our landed property. Here the bance is being caused by a re-values cause us to think seriously. versal of that policy. Hong Rents on an average have fallen Kong is faced with an awkward somewhere in the neighbourhood problem for yesterday her ex- of 30 to 35 per cent. in the past change fell one penny to 1/11 two years and the value of property being the rate below export about 40 per cent. These percen point. Ordinarily the Hong Kong tages are worked out on a broad authorities by modest operations basis for the whole Colony and are in silver would have been able to intended to represent middle correct this position, but with

(Continued on Páre 6)

one, large buyer exercising ab-