Sessional_Paper_1889 — Page 292

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The issue this year will, according to present indications, again show a great advance, having already (October 23rd), reached a total of $948,500 consisting of 11,854,250 separate coins, and though this must not be counted on as a permanent source of Revenue I see no reason to anticipate any falling off in the demand in the immediate future.

5. The desire of the Chinese for these coins (consisting of pieces representing 20 cents, 10 cents, and 5 cents manufactured at Her Majesty's Mint for this Colony) appears to be almost insatiable; and if from any cause there is delay in the supply from England, the purchasing price at once rises to a premium, which has been known at the Chinese New Year to be as high as 20 per cent. I understand that this coinage is growing more and more in favour among the vast population of the neighbouring Empire, probably owing to confidence in its exactly uniform standard of value, and that the coins are not only used as money, but are, to a considerable extent, converted into buttons and other ornaments.

6. Besides the causes for increase of Receipts above indicated there is another which in the next few years is likely to have a greater effect in this direction than any other. I refer to the enhanced return from the Opium Farm, which was in 1888 granted for 3 years from April, 1889, at an increase of $295,200 per annum over the price obtained for the previous term. This result is attributable partly to the large increase of population and partly to efforts, which proved successful, to arouse competition on the part of the Chinese Capitalists of Singapore and Penang.

7. It should be mentioned that the Revenue has in Hongkong a much smaller proportion than in most Colonies to the amount of trade and realised wealth, owing to the complete absence of import duties and to the fact that there are no tonnage duties on shipping beyond the small charge of of one cent per ton for lights. Moreover the Rates, which at the highest (in the Town of Victoria) are fixed at only 13 per cent. of the annual rateable value, compare very favourably with those of the principal towns of England, ranging, I understand, from 20 to 30 per cent. I see no probability of any necessity for increased taxation, and should much deplore it if it occurred, as the lightness of the public burthens has without doubt contributed largely to the extraordinary prosperity of the Colony. I refer to the above facts therefore merely for the purpose of shewing that the amount of the Revenue, by which the importance of a country is not unfrequently gauged, is, when applied to this purpose in Hongkong, entirely misleading.

LAND SALES RECEIPTS.

8. "Land premiums" (the sums received for leases of land sold by auction) which, being wisely separated from "Revenue," are applied to defence and other permanent works, amounted to $160,688 in 1888 and $155,238 in 1887, and thus show an enormous increase by comparison with all former years, though the in- creased area sold was by no means in the same proportion. In the absence of some calamity, such as war, the amount of these premiums is likely to remain large for some years to come, and that already obtained from the same source this year (in the first three quarters) is $155,200. As only a very small proportion of the available building sites in the Colony are as yet leased, it may be expected that the cost of the public works required will for a long time to come be largely defrayed from this source, and this especially if Hongkong should, according to present promise, become a large manufacturing, as well as commercial, centre.

9. It will be observed that a comparison between the year 1887 and 1888 shews an advance in the aggregate of rents which is proportionately somewhat larger than that in premiums. This is due to a change effected last year by which the rent fixed for land to be leased bears a somewhat larger proportion than formerly to the upset price at which leases are offered for competition by auction. In the belief that we had been unduly sacrificing the future to the present by obtaining in premiums so large a share of the proceeds, I had hoped to carry this change still further; but I was induced to be content at first with a short step in the desired direction, partly by the consideration that we are at present burthened with a specially heavy charge for defence and other permanent works, and partly because the local experience of my advisers suggested a doubt whether there would not be a loss in premiums out of proportion to the increase of rents. Owing to the increasing value of land it is impossible to ascertain from subsequent experience whether this doubt had substantial foundation; but as the premiums per acre received since the change was effected have, in most instances, been higher than they have ever been before for land in the same localities, I am disposed to think