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REPORT BY T. H. WHITEHEAD.
535
1. I should be very glad indeed to be able to add my signature to the Report dated 5th instant signed by His Honour Sir J. W. CARRINGTON, Kt., C.M.G., the Honourable C. P. CHATER, C.M.G., and Mr. T. JACKSON, as I fully believe the applicants in question for an increase of salary are fully deserving thereof and are in reality underpaid, but I am still of the opinion expressed in my letter of 15th ultimo to the Chairman, copy of which is annexel, that the Committee has imposed on it the duty of taking into consideration in addition to the claims of the applicants the financial position of the Colony and its ability to bear the increased charges proposed, and that unless satisfied on the latter point I would not be justified in recommending increases of salaries and allowances no matter how strong the claims of individuals may be.
2. I entertain grave doubts in re the financial position of the Colony and its ability without increased taxation to meet any addition to the present expenditure. I find that as recently as in 1895 (see Sir WM. ROBINSON's despatch of the 12th July and the Secretary of State's reply of the 3rd Sep- tember of that year as per copy annexed*) several members of the Public Works Department were strongly recommended for increases of salary by the former Director of Public Works, Mr. COOPEE, and that the Governor fully concurred in these recommendations, yet that he with the full approval of Mr. CHAMBERLAIN refused to grant the proposed additions on the ground that the circumstances of the Colony did not justify the additional expenditure. If this was true in 1895 and if the Governor and the Secretary of State felt themselves justified in refusing well-merited augmentations of salary because of the financial position then, what is to be said of the present position? I respectfully submit that the Colony is now worse off than it was in 1895.
3. The cost of the administration for 1887-1896 as shown in the following official statement was :—
Year.
Personal Emoluments.
Exchange Compensation.
Other Charges.
Pensions.
Total.
$
1887 *1888
C.
571,767.29
C.
$ C. 231,726 24
$
C.
$
C.
40,987.41
844,480.94
577,506.03
311,482.11
48,412.66
937,400.80
1889
628,966.75
331,070.10
55,643.75
1,015,680.60
1890
678.238.27
305,610.90
51.619.31
1,035,468.48
1891
720,281.60
352,169.81
52,451.24
1,124,902.65
1892
794,190.73
383,716.72
67,086.54
1,244,993.99
1893
728,238.44
363,407,46
86,706.79
1,178,352.69
1894
742,197.03
22,578.21
401,790.08
100.077.28
1,266,642.60
1895
724,115.73
119,408.85
409,880.06
112,776.97
1,366,181.61
1896
746,617:41
70,369.90
456,633.85
118,054.71
1,391,675.87
It will be observed that the Expenditure, including pensions, exchange compensation and other charges, has been continuously and yearly on the increase ever since 1887. It has grown excessive and out of all proportion to the increase in the population during the same period.
The increase in the expenditure in 1896 as compared with 1887 is upwards of 64%, whereas the increase in the population during the same period is about 27%, and the increase in the rateable value of property is 32%.
4. The Colony's gold payments are annually increasing in amount and the rate of exchange (in other words, the gold price of silver) is continuously falling, and no one knows the limit to which it may descend. The ratepayers have now to face the prospect, however unpleasant, of very heavy and most serious losses forced upon the Colony by the perversity of the Colonial Government, in spite of the strenuous opposition of the majority of the Unofficial Members of the Legislative Council, borrowing in gold instead of in silver, the latter being the currency in which the revenue of the Colony is raised.
5. The Imperial Government annexes 17% of the Colony's total gross revenue, excluding land sales, as a Military Contribution, which is an arbitrary and a most unfair exaction and one which is con- iderably larger and heavier than any other Colony in Her Majesty's dominions is required to pay. So far, the Imperial Government has given no sufficient reason for refusing to extend to this Colony he same fair treatment in respect of Military Contribution as the sister Colony at Singapore receives. Hongkong will also, no doubt, be required to contribute towards the cost of new barracks including the Count Austin Hotel and the palatial quarters it contains, as well as for alterations of the forts for improved ordnance.
6. The Home Government recently proposed to further exact a large increase in the Colony's contribution towards the Imperial mail subsidy which, if carried out, would be grossly unreasonable and manifestly unjust.
7. I much regret my inability at present to recommend any increase of the expenditure, believing as I conscientiously do that the circumstances and the financial position and prospects of the Colony are not such as to justify any addition thereto and as saune has, in my opinion, largely outgrown the requirements of the Colony and is a far greater burden than the ratepayers ought to be called upon to bear.
Hongkong, 9th August, 1897.
* Not printed here.
T. H. WHITEHEAD.
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