Sessional_Paper_1887-1888 — Page 45

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such a tax, viz., $45,000 appears in the estimates of Revenue. But since the above decision was arrived at early in the year, the financial prospect has much improved; and as it is a fact clearly recognised by competent opinion, that taxes on trade affect it injuriously to an extent which is by no means measured by the amount of Revenue produced, it appears to the Governor specially desirable to render such an impost as light as practicable in a Colony to which its Commerce is of such paramount importance. For this reason the Governor will recommend to the Secretary of State that the special vote for this Light-house shall be a cent instead of 1 cent per ton. By this means the burthen will be distributed over a longer period; and it is probable that in the course of a year or two the condition of the Revenue may warrant the complete relief from it which at the present moment would be imprudent. Should this proposal be approved by the Council and receive the sanction of the Secretary of State, a sum of $30,000 will require to be deducted from the total estimate of Revenue; the balance of Revenue over expenditure being also reduced by a like amount.

As regards other remissions of taxation, the abolition of the licence for cargo- boatmen scarcely needs explanation. As the number of licences was unlimited, no advantage was obtained from the tax, and such an impost on mere unskilled labourers could therefore receive a slight justification only from the fact that the licence was useful for Police purposes.

But as identification was impossible without photographs, to obtain which in the cases of some 4,000 people has been found impracticable, all reason for the tax completely fails.

The other and more important remission, for which allowance is made in the Estimates, consists of a reduction of one-and-a-half per cent. in the assessed rates-a remission which is over eleven-and-a-half per cent. of the whole of the rates paid in the town of Victoria and of course forms a much larger proportion of the lower rates paid in the country districts. The Governor had hoped to be able to propose a still larger reduction of this tax; but owing to an uncertainty which will probably come to an end in the course of a few months, and which he will then be able to explain, he is unable to do so at present lest he should thereby repeat the mistake of some years ago by taking a step which may shortly have to be retraced. The reduction actually proposed however is a substantial relief, and it is hoped that it may prove practicable to make a further reduction at no very distant date.

Another point requires notice. The present favourable condition of the finances appears to afford a fitting opportunity for drawing attention to the Imperial Institute- an object which in the Governor's opinion is well deserving of a contribution from this Colony. As Hongkong is almost entirely dependent on Commerce, and has little or no manufacturing or agricultural industry which would derive benefit from a more ex- tended knowledge of its products in England, the objection to taking part in a mere Exhibition is intelligible, and not without force. But the addition to the original project of a plan for a Commercial Museum seems in itself not only to justify, but to render most desirable, some substantial support to the Institution on the part of this Colony. The Governor understands that the excellent Museums of this kind which have been established in Germany have been a very appreciable factor in the remarkable commer- cial progress which has been made by that country in recent years; and it seems evident that a collection which is kept continually supplied with samples of the goods actually required by, or likely to prove attractive to, the peoples of all countries, cannot but be of great advantage to a community which, relatively to its numbers, possesses a commerce not only not equalled but probably not approached in magnitude by any other in the world. The Governor is therefore of opinion that without appealing to British senti- ment or to Imperial sentiment or indeed to any sentiment at all, the taking of some share in the Institute by this Colony may be advocated on purely "business" grounds; and apart from this consideration he believes that it would hereafter become for various reasons a subject of regret if Hongkong should persist in standing aloof from a Great Institution which has been deemed worthy of the support of all the rest of the Empire.

Though holding these views, the Governor does not feel that he would be justified in giving to them practical effect by placing a vote for the purpose on the Estimates without the unanimous, or almost unanimous, approval of the Legislative Council; and he refers to the subject here in order that it may receive consideration in Finance Committee.

In conclusion the Governor indulges the hope that whether his opinions as above expressed meet with the concurrence of the Council or not, the Members will at least agree with him that the financial condition and prospects of the Colony, as revealed by the above survey, may be regarded as a subject of very justifiable congratulation.

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