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1891 averaged $1,930,769; for 1891, it was $1,973,540; for 1888 it was only $1,557,300, and in 1887 it was $1,427,485. As already stated the average revenue, including land sales, for the five years ending with 1886, was $1,291,407. As compared with this the revenue, excluding land sales, for 1891-which we are told was a year of terrible depression-was $1,973,540, which shows an increase over the average revenue for 1882-86, including land sales, of more than 50 per cent. So much for the past and present."

And lastly, in reference to this branch of the question I would solicit Your Lordship's especial attention to the very significant returns, quoted by the Colonial Secretary in speaking to the Loan Bill, under the revenue heading of "Assessed Rates and Taxes."

"In speaking to Supply in Committee I showed that the Colony, taken as a whole, had progressed and was bound to continue to progress and I grounded my statement largely but not exclusively on the revenue returns. It was then neces-

sary only to state the broad results that the revenue bad more than sufficed to meet the ordinary expenditure and that it had continuously increased, and although it is impossible within the limits of a speech to set out all the component details it may be well for me now to supplement my statement by drawing attention to some of the more important items. Postage receipts are generally recognised as affording some criterion of the condition of the community. They have increased in Hongkong during the ten years from 1882 to 1891 from $100,793 in 1882 to $142,770 in 1891, showing an increase of about 40 per cent., and that in spite of large reductions in the postal rates during that period. The item 'Markets,' again, furnishes some test as regards a large section of the community. It has increased from $57,950 in 1882 to $83,592 in 1890 and $96,354 in 1891, showing an increase in the last over the first year of over 66 per cent."

"Honourable T, H. WHITEHEAD-Indirect taxation, for we pay more for what we get from the market."

"The COLONIAL SECRETARY-It is in any case a fair indication of the condition of a large section of the community. To take another item. Rent of leased lands shows an increase of 28 per cent., the figures being $140,467 for 1882 and for 1891 $180,158. But which, sir, of all the items that compose our revenue supplies the most trustworthy answer to the question whether the Colony as a whole is progressing or not? Unquestionably the item of assessed rates and taxes. And what, sir, does that item show? It shows an increase in 1891 over 1882 of more than 80 per cent., the figures being for 1882 $252,937, for 1886 $306,131, for 1889 $374,857, for 1890 $414,892, and for 1891 $464,242. These, sir, are very eloquent figures. They speak for themselves and require no comment. Rates were increased on July 1st, 1885, from 12 per cent. per annum to 13 per cent. in Victoria. The increases in the other divisions, of the Peak District and the villages, are not worth considering as more than five-sixths in value of the whole rateable property in the Colony lies within the limits of Victoria. It would be interesting to know how many towns there are in the British Empire in which, with so trifling an addition to the rates as one-twelfth the revenue derived from the assessment of rateable property has in the ten years increased by over 80 per cent.”

The references to the failure of the New Oriental Bank Corporation and the collapse of the Chartered Mercantile Bank are quite irrelevant unless it be intended to imply that these are attributable, to some material extent at all events, to losses incurred in Hongkong by those institutions. In view of the fact that the circumstances which led to the downfall of the New Oriental Bank Corporation and those which have necessitated the reconstruction of the Chartered Mercantile Bank are very generally known, it is astonishing that a banker-(one of the signatories of the Me- morial, Mr. WHITEHEAD, is the Manager of a local Bank)-should have referred to the cases of the two banks in question as affording an argument in favour of the reduction of certain official salaries in Hongkong. The principal and incomparably the most important bank in Hongkong is the Hongkong and Shanghai Bank. Its accounts for the last half-year have not yet been published, but I have unimpeach- able authority for stating that its transactions for that half-year have been the most satisfactory and profitable that it has had for many years past. The Chinese banks in the Colony also find no difficulty in employing their funds to advantage.

In sub-paragraph (d) the Memorialists quote certain figures from the returns of the revenue of the Chinese Imperial Customs, and they argue therefrom a de- crease in the trade of China, and inferentially, it may be presumed, a decrease in