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THE HONGKONG GOVERNMENT GAZETTE, 27TH OCTOBER, 1888.
For though the area of the Colony is small, its Crown lands are of an exceptional value, and a value which is morally certain to increase pari passu with the rapid growth of the population.
Without attaching undue weight to the many recent sales of land at distances of 1 to 2 miles from the town of Victoria at prices varying from 20 cents to 40 cents a square foot, or to the recent valuation (believed to be more than justified by existing. market prices) of the reclamation about to be undertaken in front of the Praya at ($7,910,821, or including that in front of the Government property at) $9,714,777 it may in any case be fairly considered that these figures throw a useful light on the prospect of the future, if the Colony, as there is every reason to suppose it will, should continue to prove an attraction to the people of the neighbouring Empire.
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In the absence of calamity impossible to foresee and on the presumption that the Government is wise enough to maintain the present freedom of trade, there can be no moral doubt that the 20,000 acres of unsold land in the Colony (most of which is as suitable, or not more unsuitable for building than was originally, that which is now Indeed at this moment, covered with houses) will eventually realise an enormous sum.
if the necessity were to arise for changing the present policy of selling without the condition of immediate building, and of thus abandoning to speculators the profit that will otherwise be reaped by the community, there would be little difficulty of obtaining from sales within a few weeks an aggregate sum equal to several times the amount of the annual Revenue of the Colony.
But besides the land, the Colony has a most valuable asset in its two magnificent systems of water works, which unlike similar works elsewhere have been entirely paid for out of income. These could readily be sold for more than their cost viz.: a quarter of a million Sterling, while the rent-charges on land already sold, would, if capitalised, produce about half a million more. When it is further considered that there is an entire absence of import-duty in connection with the trade of a port, which in respect of the tonnage of its shipping is certainly the 4th, if not the 3rd, in the world, there seems no reason why the credit of the Colony should not be at least as high as that of the Corpo- rations and Companies which borrow at 31; and it is with a view to assist towards that end that the Governor has made this special reference to the subject.
There would, however, be a difficulty about obtaining on the most favourable terms a loan which would be repaid in four or five years, short periods not being at all in favour with investors. Some of the funds might indeed be re-invested, as they were recouped, in a road and tramway round the island at the edge of the water--a work which ought in any case to be commenced at no distant date-but even in that case, the expenditure would with equal quickness be returned from the development which would thereby be hastened of the resources of the island.
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For this reason it would probably be advantageous that an arrangement should be made by which the bonds for any Loan that may prove to be required should not be issued to the public, unless the necessity for doing so actually arose, but should be deposited as security for temporary advances. By such a plan, if permitted by Her Majesty's Government, it appears to the Governor that the funds might be obtained at the Bank rate of interest; and it would have this further advantage to set against the possibility of a temporary rise of the Bank rate that it would obviate the necessity of
There may,
as stated borrowing more than was actually required at the moment. above, be no necessity to borrow at all, as the effective expenditure of the large surplus depends on uncertain conditions, and may not for various reasons prove practicable. In any case, the amount required on Loan cannot be estimated at the present moment.
On the supposition that the highly remunerative works referred to above will be carried out by means of a Loan, it would have been quite possible to provide from the balance of ordinary Revenue and Land-premiums for the commencement, and for a con- siderable part of the construction, of another important work which must probably be very soon undertaken, viz., a New Gaol of sufficient size for the confinement of all the convicts on the separate system. This work will be a very costly one, the estimate for it being $420,000, or deducting $50,000, the sum likely to be realised from such portion of the present site as can be sold, $370,000. It is, however, one which is absolutely required if the present system is to be maintained under which there are always in con- finement and supported at the cost of the Colony, some three or four hundred aliens who have come here to practice their misdeeds from the neighbouring Empire. Governor, indeed, believes that under the very exceptional conditions which present themselves here, there would be very fully justified a change substituting short and sharp punishments, followed by banishment, for long periods of imprisonment; in which case the number of prisoners would be so much reduced as to admit of the exclusive
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