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THE COLONY'S SURPLUS ASSETS.
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At the meeting of the Legislative Council on Tuesday a statement of the assets and liabilities of the colony together with a state- ment of the revenue and expenditure for 1894 were laid on the table. The statement of assets and liabilities is something new and the Government is to be congratulated on affording the public the information here- in contained. Formerly it was the custom to attach a so-called statement of assets and liabilities to the annual statement of revenue andexpenditure, but the figures were presented in a quite incomprehensible form, and for a number of years past they have been omitted. The statement now presented is a business- like balance sheet and reflects credit on the officer who has prepared it. It is signed by the Hon. N. G. MITCHELL-INNES, Colonial Treasurer, but whether that gentleman is responsible for the form in which it is drawn up or not we are unable to say. Its publica. tion is no doubt to be accounted for by the criticism evoked by the Governor's statement a few months ago that the colony possessed a balance of $600,000 irrespective of all monies derived from loans. That statement was at the time received with incredulity, and rightly so. According to the figures now presented the total assets of the colony on the 31st December last amounted to $2,009,912, and the liabilities to $581,299, leaving a balance of $1,428,613, of which $979,974 represents the unexpended balance of the 1893 loan of £200,000. This gives a balance in round figures of $450,000 which from the Governor's point of view might be termed irrespective of the loan, or $150,000 less than His Excellency stated; and if the deposit in England at call of $1,157,350 were taken at the rate of exchange at which the money was borrowed a large proportion of the $450,000 would disappear. It is not stated at what rate sterling sums have been converted into dollars, but presumably the rate of the day has been taken. If the fall in exchange has increased the dollar equivalent of the colony's sterling funds it has in the same proportion increased its future liabilities in dollars, so that a balance resulting from a fall in exchange has no substantial value. The money remaining in band from the loan figures amongst the assets, but there is no entry in respect of it under the head of liabilities, as no repay ments were due on the 31st December. The colony, however, is responsible for a loan now standing at nearly £350,000, contracted at a much higher rate of exchange than that which now prevails, and, unless exchange should rise again, the treasury will be a loser to the extent of the difference.
on
[March 20, 1895.
THE HONGKONG WEEKLY PRESS AND
and dollars, but on the other hand pay-its information doled out to it piecemeal ments on account of the postal service are and that the information should always fail in increased to a rather larger amount. The point of complete accuracy. In its Thursday's increase under the head of Stamps, issue the Mail conveyed the impression that $27,000, is more than accounted for by the statement of assets and liabilities had in- probate duty, which is an uncertain source variably been published in the blue book. of income. We have, however, an increase As a matter of fact it appeared in the blue in the profit on subsidiary coins of $54,682, book for the first time in the 1892 issue. the total amount under this heading being On Friday night our contemporary returns $133,824 as against $79,141 the previous to the charge and says that if we will look year, and an increase of $47,000 under the through the supplementary colonial estimates ambiguous heading of "Other miscellaneous for the last seven or eight years the state- receipts." The rent from leased lands ment of assets and liabilities will there be shows an increase of $17,705, which may be found in precisely the same form as that in regarded as the most satisfactory item in the which it was presented to account, as the taking up of land is indica lative Council on the 12th inst., and, to the Legis. tive of progress and development, more be still more precise, that it will be found especially when it happens in a year like 1894, which was almost devoid of specula-latest of the supplementary estimates, those page 2 We accordingly turn to the tion pure and simple.
for 1893, laid before the Legislative Council If the revenue has increased, however, the in September last, and we find-what? expenditure has increased to a still greater That the statement is not there and that It is unkind of our extent, the net increase on this side of the page 2 is a blank. account bezug $378,572. Of this amount contemporary's informant to place it in $55,000 is accounted for by the increased such a ridiculous position. On referring to charge on account of the public debt, and previous years' supplementary estimates, there is an increase of $74,382 under the however, we find there have been statements head of military expenditure, due to the low of the assets and liabilities in the same form, exchange, while under the head of "mis-as regards geueral ontline, as that presented cellaneous services" there is an increase of at the last Council meeting. The praise we no less than $179,481. The Post Office bestowed on some unknown present day shows an increased expenditure of $30,000, official for originating that form was there- and there is an increase under the bead of fore unmerited. But whereas in former pensions of $13,370. Decreases are shown years the statement was presented under under four beads only, amounting to the such conditions that it was generally over- insignificant total of $12,759, while the in- looked it is now presented under conditions creases amount to no less than $391 331, al- which most every department showing an increase marked attention to it; and the intention were evidently intended to draw of larger or smaller amount. The total ex- has been fulfilled, for the statement has penditure of the colony was $2,299,096, ex-been, for the first time, reproduced in all clusive of extraordinary public works charge the English newspapers of the colony and able against the loan, while the total has no doubt been read and studied revenue was $2,287,203, showing a small | more or less closely balance on the wrong side of $11,893. community, which has
by the entire never been the The colony therefore spent more than its case before. That the newspapers, the income last year. The figures show how China Mail included, should have overlooked important is the practice of a rigid economy the statement when presented in previous in the immediate future, for unless expen-years may be a reflection on their vigilance, diture can be brought well within the limits but it has no bearing whatever on the of income the credit of the colony will soon significance attachable to the manner in suffer. But it should be pointed out that which the statement has been presented this the unfavourable balance of last year was year. In 1895 for the first time the statement largely due to the plague. The estimate has been presented to the Legislative Council under the bead of miscellaneous services was as a separate paper; in 1895 for the first $72,411 and the actual expenditure $277,329, time it appears in the Government Gazette ; the expenses incurred in coping with the in 1895 it is rendered more complete by the epidemic being presumally brought under addition of a footnote showing what portion this heading, for they are not shown of the nominal surplus assets consists of separately, as we think they ought to have money derived from the loan; and in 1895 been. Had the expenditure for miscellaneous it is presented early in March instead of services been confined within the estimate some months later. Why this unusual ex- the total expenditure of the colony would pedition, the special attention drawn to the have been about $190,000 less than the statement by the manner of its presentation, Turning now to the statement of revenue revenue, which might perhaps have been and its greater fulness? In our first article and expenditure, it is a poteworthy fact, and considered moderately satisfactory though on the subject, being at the time under the one showing conspicuously the vitality of the seeing that we now have the charges on ac-impression that the statement was colony's prosperity, that the year of the count of the Taipingshan resumption to plague should have yielded the largest meet out of balances, as well as the expense revenue that has ever been collected. The of the re-erection of Gap Rock Lighthouse, total was $2,287,203, which is a substantial and various other public works not charge- increase on the revenue for 1893. Of the able to the loan, a surplus of that amount is eighty-tw obeads under which the figures nothing to boast of. The colony is now are given forty-four show a decrease, thirty-paying away nearly one tenth of its income six an increase, and three are the same for on account of the public debt, which should both years; but while the decreases amount mark the limit of its borrowing, so that the to $41,425 only, the increases tot 1 $250,493, cost of public works which may be found leaving the net increase at the very handsome necessary, outside those already provided sum of $209,068. A portion of this increase, for, will for some years to come have to be however, does not represent any real defrayed out of revenue. augmentation of income. There is, for in- stance an increase of $30,000 in interest, the amount received under this heading being a little over $37,000 as against rather less than $7,000 the previous year; this is interest on borrowed money and will dis- appear as the balance of the loan is used up. Postage, again, shows an increase of between twenty-four and twenty-five thous
II.
In connection with the dispute (rather a puerile one) raised by the China Mail in reference to the statement of the colony's assets and liabilities, our contemporary says it had not by any means, exhausted its sources of information when it mentioned the blue book of 1893. It is unfortunate for our contemporary that it should have
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thing entirely new, as in fact it is so far as its presentation to the public is concerned, we suggested that it was intended as the Governor's reply to the criticism evoked some months ago by His Excellency's state- ment that the colony had a balance, in- dependent of all monies derived from loans, of $600,000. Our contemporary on Thursday said it was "absurd to argue that the publication of the statement was due to the hostile criticisms of the Governor's reported balance of $600,000, which still requires explanation." By Friday night that opinion seems to have undergone a reversal, for our contemporary then "frank- ly admits" that until we called attention to the matter it was unaware that "this annual statement of assets and liabilities had much direct bearing upon the recent statement of the Governor that the colony "had a balance in band of $600,000.” The discussion has therefore done some good,
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