Sessional_Paper_1885-1886 — Page 316

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No. 33.

SPEECH OF HIS EXCELLENCY THE OFFICER ADMINISTERING THE GOVERN- MENT AT THE PROROGATION OF THE SESSION OF THE

LEGISLATIVE COUNCIL OF HONGKONG,

21ST MAY, 1886.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL.

1. The time has now arrived for closing the Session of 1885-86, during which a considerable amount of useful legislation and other public business has been dealt with by you.

2. I believe it will be necessary to summon a special meeting in the month of September next, in order to consider the Estimates for the ensuing year; but the opening of the next annual Session will not take place until October or November, in accordance with the practice of the two past years.

3. The financial position of the Colony at the beginning of the present year was better than had been anticipated. The Revenue of 1885, which had been estimated at $1,137,558 yielded $1,251,890, besides $66,659 for premia on sales of land. The only year when the Revenue has been larger was 1883 when, owing to exceptional circumstances, a very large amount was received from licences for boil- ing opium for exportation. The marked increase of receipts over 1884 is due no doubt to the termination of the hostilities recently carried on in this part of the world.

4. In consequence of this improvement in the Revenue of 1885, the balance of assets at the commencement of the present year was $427,692 instead of $190,088 as estimated in October last.

5. I am happy to inform you that the receipts during the first quarter of the present year have been about $17,000 in excess of the Estimates, and $27,642 in excess of the receipts during the first quarter of 1885, thus exhibiting a continued healthy developinent of commerce.

6. In consequence of this satisfactory condition of the finances, it will probably not be necessary for the Colony to borrow any money until towards the end of the year, and I do not anticipate that a larger amount than $300,000 will be required this

year.

7. Before this satisfactory condition of the finances had been ascertained by the closing of the accounts of the past year, it was thought that it would be necessary to raise extra Revenue for the purpose of defraying the interest and sinking fund on the loan, which will amount to about £15,000 a year, when the whole £200,000 has been borrowed; and the Council, being consulted on the means to be devised for providing more funds, unanimously recommended "that the best means of doing so would be chiefly by an increase of the stamp duty."

8. A Special Committee of this Council, to whom the question of details of extra stamp dues was referred for consideration, reported after careful investigation that no urgency exists for extra taxation at the present time, and recommended that the consideration of increase to Revenue should be postponed. I accordingly announced to the Council that I would not proceed any further this session with the measure proposed for this purpose. It does not seem probable that any extra taxation will be necessary until the whole amount of £200,000 has been borrowed. One of the Un-official Members has even expressed the opinion that the ordinary Revenue which we shall receive will, through the progressive development of our commerce, be sufficient to meet all calls made upon it. I should be glad if this forecast were to prove correct.

9. I thank you in the name of Her Majesty's Government for your loyal vote of a further sum of £60,000 for the completion of the Military Defences of the Colony. These works are proceeding as fast as is possible, and I have been in- formed by the Secretary of State for the Colonies that the greater part of the armament will probably be consigned to Hongkong during the current year. The mountings of the breech-loading guns are of new pattern, and require to be specially tested, and this of course to some extent retards the supply.