Sessional_Paper_1886-1887 — Page 176

HONGKONG.

No. 40

MINUTE BY HIS EXCELLENCY THE OFFICER ADMINISTERING THE GOVERNMENT

ON THE ESTIMATES FOR 1887.

173

1886.

Presented to the Legislative Council, by Command of His Excellency the Officer Administering the Government,

on the 17th September, 1886.

W. H. MARSH,

Administering the Government.

I lay before the Council the Estimates of Revenue and Expenditure for 1887, together with an explanatory report by the Honourable Acting Colonial Secretary and Auditor General.

2. The Revenue for 1887 has been estimated at $1,291,270 which I do not think too high. The Revenue of 1885 was $1,251,889 and a revised Estimate of the Revenue of the present year gives the amount of $1,304,263.

3. It is estimated that there will be a balance on hand in the Colony at the beginning of next year of $184,783, and it may appear singular that with so large a balance a sum of $400,000 is shown as borrowed on account of the loan during the present year. The reason is that large payments have to be made at home by the Crown Agents, the average of the past five years being over £80,000, and the payments during 1885, having amounted to £122,600. The investments of assets in England having been exhausted the Crown Agents have in anticipation of the Loan advanced the sum of £60,000, at the Bank rates instead of drawing on the Colony. In the meantime a considerable portion of the surplus funds in the Colony has been placed in deposit bearing interest.

4. I have estimated that a further amount of $600,000, on account of the loan will be required in 1887, the whole of which will be required for payments at home.

5. The expenditure of 1887 has been estimated at $1,245,434. That of 1885 was $1,146,103, and that of the present year is now estimated at $1,193,472.

6. The excesses in the estimates of 1887, over those of the present year, are shewn in detail in a statement prepared by the Acting Colonial Secretary and Auditor General. They are summarised as follows:-

Interest on Loan,

Military Expenditure,

Salaries, Services exclusive,

Roads, Streets, and Bridges,..

$55,000 19,048

10,929

7,000.

7. Interest on the loan is the principal item in the increase over this year's Estimates, and the anticipations of the Special Committee of the Legislative Council on the recently proposed Stamp Bill in April last that this extra expenditure could be met without extra taxation have, fortunately thus far been realized.

8. The next item in importance amongst the increases is $19,000 for Military expenditure, being the difference between 3/6 and 3/ in the rate of exchange. The rate has risen since the Estimates were prepared. The annual contribution of £20,000 for Military expenditure has now been paid and since 1864 at the current rates of exchange which assuming the par value of the sovereign to be five dollars have been advantageous to the Colony until 1876, the sovereign having at one time been as low as $4.50.

9. The amount provided for Extraordinary Public Works is $760,000. For this year provision was originally made for $579,800, but it is probable that about $756,000 will be expended, the construction of Military Defences having been carried out with greater expedition than was originally contemplated. Only $52,000 was provided for this purpose during the present year whereas it is probable that $218,000 will be expended.

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10. The details of the increases to salaries will be seen in the Statement of the Acting Colonial Secretary and Auditor General.

Government House, Hongkong, 17th September, 1886.