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The estimated decreases are chiefly in the following items:-Boat licences from $5,700 to $5,000; Cargo boat licences from $7,500 to $7,200; Fines from $16,000 to $14,500; Hawkers' licences from $5,300 to $5,000; Emigration, which is on the decrease owing to the unwillingness of certain countries to receive Chinese, from $18,000 to $15,000; Lands other than those leased, but including Stone Quarries, from $30,000 to $28,000.

7. The revised estimated ordinary expenditure for 1891 is $1,674,780. The estimated extraordinary expenditure $920,279 instead of $804,279 as stated by the Officer Administer- ing the Government a short time ago, some omissions having been made in the draft estimates as originally prepared. This makes a total expenditure of $2,595,059 instead therefore of having a balance of $46,000 on hand at the end of 1891 there is an estimated deficit of about $100,000.

The Council has already been informed that the principal causes of additional ordinary expenditure are the increased Military Contribution from £20,000 to £40,000 a year, the additions to salaries amounting to about $47,000, the introduction of the Electric Light and the changes effected in the Audit Department.

Provision has been made for a Chief Assistant to the Observatory at a salary of $1,800 in accordance with the recommendation of the Commission.

A sum of $2,000 has been provided for the upkeep of the Epidemic Hulk now in coursè of construction.

The expenses of the Police Department have been somewhat increased in consequence of the recent changes which have been made in connection with it, while some additional cost has been proposed for the Gaol Department with a view of obtaining men from England to do duty as Turnkeys.

But the greatest increase on expenditure is caused by that estimated as necessary for Public Works.

As a proof of the continued increase of expenditure under this head it is worthy of remark that in the year 1875 the amount expended on the Surveyor General's Department, on Public Works and Buildings, Roads, Streets and Bridges amounted to $169,642 whereas for 1891 the estimated sum for the Surveyor General's, the Water and Drainage and the Sanitary Departments amounts to no less than $920,279 while the total amount estimated for the construction of such Public Buildings as have actually been commenced or are in contemplation is $2,540,237, which will have to be further increased should a new gaol be constructed.

8. The Officer Administering the Government is fully sensible of effecting economy in so far as is possible. It is at all times difficult to lay down any hard-and-fast line as to how this is to be done, but there are many little ways in which those who are entrusted with the expenditure of public moneys can guard against needless expenditure.

The financial condition of the Colony may be regarded on the whole as satisfactory, the revenue being quite sufficient to meet any ordinary expenditure but while this is so and while not begrudging what is necessary for its development and general good the Officer Administering the Government entirely concurs that every prudence should be exercised in dealing with public moneys.

Government House, Hongkong, 20th October, 1890.

F. FLEMING, Officer Administering the Government.

BILL ENTITLED AN ORDINANCE TO AMEND ORDINANCE No. 8 of 1873, entitled THE DANGEROUS GOODS ORDINANCE, 1873."-Council in Committee on the Bill.

Bill reported with amendments.

Council resumed.

BILL ENTITLED (4 AN ORDINANCe to amend Ordinance No. 15 of 1888 entitled The Rating ORDINANCE, 1888."-The Acting Attorney General moved the third reading of the Bill.

The Acting Colonial Secretary seconded.

Question-put and agreed to.

Bill read a third time.

Question put-that this Bill do pass. Bill passed.