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3. When managers of firms and shops register for the first time they have no ulterior motive of any sort, but when they fail in business and are unable to meet their liabilities to their masters, their conscience pricks them, and they are thus forced into declaring themselves to be the owners of the whole concern, preferring to be held responsible for the liabilities incurred rather than involving their employers. The reason why they are driven to act in this way is that to declare themselves bankrupts involves but a slight penalty, whereas the crime of embezzling or misappropriating funds entrusted to them by others, is very serious.

6. The publication of the names of registered partners will be a great beon, not only to partners and managers but also to the mercantile community of the whole Colony. If partners are held rosponsible, credit for money and goods will be readily given. The registration of the names and villages of the managers to facilitate enquiry and search in the event of failure will still further increase the confidence of those who come from the various ports to trade with Hongkong. When such general confidence exists, no hindrance to trade need be apprehended.

16th August, 1874.

Appendix B.

Copy of a Letter (No. 75 of 28th August, 1874), addressed to the Colonial Secretary

by Mr. Cecil C. Smith, Registrar General,

2531

[C.S.O. ]

SIR,

I am desired by the Board of Directors of the Tung Wa Hospital and other merchants to request that the accompanying paper may be laid before His Excellency the Governor. The object that they have in view is a complete and compulsory registration of all those who carry on any mercantile business in this Colony. But at the same time they wish, what is I expect an alteration in the Law of Bankruptcy, that in the case of any failure, each partner should only be held liable for a share of the losses calculated upon an equal division of the said losses among the whole number of partners.

This, they allege, is the practice in Canton and the absence of such a practice prevents many traders from coming to this Colony,

I have, &c.,

(Signed)

CECIL C. SMITII,

Registrar General.

Appendix D.

Mr. Hayllar's Letter.

The following letter has been addressed to the Colonial Secretary on the subject of the Victoria Regis- tration Ordinance :—

SIR,

HONGKONG, December, 1874.

It may not be out of place if, as a practising lawyer having a professional interest in the subject, I venture to address through you to the Legislature some few observations on that portion of "The Victoria Registration Ordinance, 1874," lately published for general information, which refers to the registration of Chinese traders. The matter requires inore consideration than the Title and Preamble of the Draft, or even the wording of the clauses themselves would lead one at first to suppose. The former speaks of the "better registration of householders and Chinese Traders," as though a mere amendment of an existing law were under contemplation (which is not the case); while the latter, in providing for the registration of Chinese shops, hongs and places of business, scarcely discloses the fact that the sections in question must necessarily have a more or less appreciable influence ou much of the present law of partnership. The measure is indeed altogether of an experimental character, its principle never having been adoptedl hitherto either within this Colony or in England, and having been already more than once rejected by the Supreme Council of India. Being moreover intended to confine its operation exclusively to Chinese, into the workings of whose trade customs we seldom gain anything like an accurate insight, the contingencies to be provided for are more than ordinarily obscure.

The Bill too has a penal aspect, its sanction, or, in other words, provision for enforcing its observance being of a criminal or quasi-criminal description.