Tan Municipal expenditure for 1878-4 is estimated at Tis, 222,879, against a probable income of Ts, 230,202; but the outgoing Council leave a debit lega-ey of Tls. 6,899, which will all but absorb the surplus. And this equalization of revenue and expenditure is only obtained by a proposed increase of taxation which we expect to find se-nously opposed by the Ratepayers. It will of course be urged, on the one hand, that money must be had; but it will probably be replied, on the other, that the Municipal revenue on its present basis has hitherto fully sufficed, and that it is wiser to extricate the Finances by a loan, from the slough into which they have drifted, and to leave intact a standard of taxation which has been found to work well, The actual condition of the Municipal Finances, however, has been dealt with in reviewing the Report. At present, we have to deal with the Council's proposals for the future.
Looking first to the proposed Ex. penditure, we find an increase of is, 2.700 under the head of Police, attributable we believe to an increase in the number of Chinese constables, necessitated by the extension of beats. The Police works so well, and is so essential to our comfort and security, that this vote is hardly likely to be chal-longed. The Sanitary Department shows a gross reduction of Ts. 2,500; the outlay for the Nui. sauce Department, which was inflated last year to Tls. 18,228 is reduced to Tls. 18,876, principally however by the transfer of certain items to another (Stud Branch) heading; while Medical Expenses are raised from Tls. 1,178 to Tls. 3,500 by an appropriation of Tls. 2,000 to open and set going the new Lock Hospital. The Engineer's Department shows a reduction of Tls. 1,400; and the Ge-roral Establishment a reduction of Tis.
14100, effected chiefly on minor items.
We should not be surprised to find the Tls. 40,946 set down under this heading, still objected to as excessive, "Salaries and allowances," for instance, which cost last year Tls. 4,000 more than the estimate, and Ts. 2,400 more than the actual outlay in 1871-72, are again increased by Tls. 800; and stand now at Tis, 29,901, against Tls. 19,750, which was the actual outlay in 1870-71. The work of the Establishment has undoubtedly increased during the last three years, but we should hardly think to the extent indicated by this excess. The Stud Branch is set down at Tls. 9,640, against Tls. 7,582 which it cost last year—the excess arising chiefly from the want of new carts and other stock. Tls. 4,000 are appropriated for the Fire Department, against Tls. 3,000 asked and Tls, 8,159 actually spent Jast year. We can only again remark, on this point, that the refusal of the Home Offices which do a large business in Shanghai, to contribute towards the expenses of the Fire Department, is little creditable to them. They derive the benefit, and Leave others to find the money. The usual Tls. 2,620 are asked for the Volunteer Force, besides a loan of Tls. 8,000 to pay for new arms and ammunition. The actual expenses last year under this head were'Tls. 3,717, besides Tls. 4,000 paid in settlement of Mr. Webb's claim. There is an increase of Tls. 500 under the Local Post Office; but greatly increased facilities have been given, and the Office more than pays its own expenses.
It is upon Public Works that the exigencies of economy have fallen most severely; only Tls. 59,000 being allot ted for 1878-74, against an estimate of Tls. 78,000 and an actual outlay of Tls. 183,700, in 1872-78. Tls. 49,500 of this large amount was spent in constructing a Free Ferry, and buying the bridges over the Soochow creek, so of course does not recur. The Drainage appropriation too is reduced by Tls. 10,600, the entire system of sewers approved in 1869 having, we believe, been now completed, and the present estimate being chiefly for subsidiary drains in back streets and alleys. A supply of drain pipes, too, having being procured for this purpose, an item of Tls. 7,719 on that account disappears. Outside roads are reduced from is.
8,500 at which they were set down last year, to Tls. 3,000; the present state of finance being obviously unfavourable to continuing the Yangtzepoo road, even if it be considered ne in view of the proposed new line of communication with Woosung. Another reduction, of which the wisdom is more questionable, is under the head of "Improving, purchasing and forming new lines of roads in the Settlement." We have always strongly urged that no opportunity should be lost of improving communications in the Settlement as quickly as land can be acquired. We are already half choked; and the evil will not only increase, but become more difficult of remedy. Considerable re. ductions are also made under the heads of building, bunding, and kerb and side-channels. The only considerable items of increase are on account of Bridges and Roads and Footpaths, for which Tls. 4,084 andTls.15,000 are asked respectively, against Tls. 619 and Tls. 7,627 spent last year. Butas the Bund alone will take Ts. 6,000 worth of granite chips, and all the roads inthe Settlements have been allowed to deteriorate as badly, this appropriation seems quite insufficient. Of course there is the difficulty: nomancy! But it may be question whether borrowing, for the purpose both of mending and extending the roads, might not be truer economy.
The income to meet alli this expenditure is derived from three principal sources—Land and Housetax, estimated to produce Tls. 102,000; Dues on merchandize, Tls. 95,000; and Licenses Tis, 28,000. The Sanitary Department contributes is. 8,000, and the Local Post Office Ts. 5,400. Contrasting these estimates with those for 1872-78, we find an increase under the first head, of Dis. 27,000 viz:—on Land tax is. 6,000, on Foreign House tax Tls. 4,700, and on Native House tax Ts, 14,000. The first item is obtained by raising the rate of assessment on land from to 7/20 of 1 per cent; and the two latter by increasing the House assessments from 6 and 8 to 7 and 9 per cent respectively. We anticipate, as we said before, that the proposal will he strongly combated, The income yielded under the present rate of assessment has notanly sufficed hitherto, tocoverMunicipal expenditure, but \has allowed an annual. appropriation of Ts. 12,000 towards extinguishingthelate Idan. The last instalment of that Loan has now been paid; the present budget is the first, since 1867, which has not been weighted with such a charge; yet, this advantage notwithstanding, we are told for the first time that the existing sources of income are insufficient. The last loan was raised, in 1867, to free the Council for that year from previous encumbrances, and the Ratepayers will probably think it wiser to resort again to this policy, instead of disturbing a rate of taxation that has proved sufficient, with economical man. agement, for all current requirements, Wharfage Dues—or Dues on Merchandise as they are officially named—are the next lange item of revenue, and are set down, we observe, at Tls. 25,000 less than in the estimate for 1872-3; the cash receipts from this source, last year, having been only Tls. 89,000 instead of the Tls. 110,000 which were rather sanguinely anticipated. The receipts from Licenses are estimated, in most cases, at slightly lower figures than last year; but the total is larger, owing to an excess of Tls. 1,100 on opium shops and a proposed new tax of Tls. 1,800 on native boats trading at the jetties in the Foreign Settlements.
Text read from the printed page and cleaned; old type leaves the occasional error.