of Retrenchment Strict Policy of The Budget for 1932 was form. ally, endorsed on Wednesday at a meeting of the Shanghai Municipal Council which discussed the draft and also the minutes of the Finance Committee held on March 18, which were confirmed. A brief reference to the Budget was made in the "Noxth-China Sunday News" on Sunday, Th presenting the draft Budget to the Finance Committee, the Treasurer and Controller stated that he had, in conformity" with definite view expressed by Mr.
Feetham, endeavoured this draft in members' hands prior to the election of councillors for the ensuing year.
Relative to his progne: September last that owing to the a exchange situation then'
ling and in regard to other' factors a substantial deficit might have to be brought forward to th current ordinary budget, he glad to be able to report that as the result of an appreciation in the sterling-tael exchange rates and retrenchment of expenditure effect-in conjunction with the various Meads of Department it had been possible to carry forward a surplus of Tls. 351,000. In this connee- 20,0 Hon he re-called that in September, 1981, he advocated that certain toms which hitherto "had been chavged to the Ordinary Budget could rightly be charged to capital particularly so as the Council outstanding indebtedness. which was. not being provided for. Apication of this: principle. further factor definitely. Influencing The estimates of Ordinary Bxpenditure for 1992, from which the Eayeation Budget, had been dive 'd, amounted to a total of approxi-ately is, 15,500,000, He" stated that the figures for the majority Departinents were below those for last. year and that this result, had been achieved innpaiving their efficiency. In of the estimates of the Public Works Depavtment, the figures submitted showed a. vedueti 260870 on Tast.'yean's total consultation with the Commissioner of Public Works' this reduction had been effected. by. transferring. certain sums from the Ordinary to the Extraordinary Budget, based percentage cost of the services rendered by the permanent staff in hi connection with expenditure on. capital projects, In this respect the Council's auditors had expressed the view. that the sums thus transferred were fair and reasonable, The fact that a separate Budget had been framed for the Education Department had also contributed to the reduction in cost of the Pubile Works Department and to the provision for maintenance of pro-arties, ete, 'With respect to the cost of the 'Municipal Orchestra, the Treasurer' tated that drastic' retrenchments, its previous cost had been effected; in his opinion still further reductions might become necessary the future. He urged that a endeavour should be made that the receipts from concerts. should be the cost of the accommo tion vented for its performance and he submitted that possibly a type of programme towards this end. that, whenever possible, the musi-ians engaged. from abroad should be substituted by locally engaged ppergonnel would be adhered to, The estimates of the Finance Department (Treasurer proximately the same figure Jast year. No provision had, however, been made for the reply nent of two senior members of staff, and it might be necessary during the current year to arrange for the promotion of two Chinese employees andthe engagement of 'a qualified assistant in order to undue depletion of the senior yanks of his staff.
The estimates for the Revenue Office for the first time were shown tinder the Budget for the Finance Department. The slight excess over the figures for last year was due toa re-allocation of senior posts in recognition of meritorious service. Tt was to be noted that the charge for the emoluments of Mr.
Allen, who had recently been designated "Adviser on Revenue Matters," had been shown under "General Charges."
The total figures for the Seere-4apiat, "which approximated Tis. '25000, were slightly. Tess than those for last year, provision being made for certain adjustments which eventually would be referred to the Staff Committee, The cost of the Legal Department, Tls. 89,000, was approximate-20 per cent. more then for last year owing to normal expansion jand the improved conditions of service which were authorised for the Assistant Municipal Advocates in the latter part of 1931.
Provision for an additional assistant in the office of the Direefor of Chinese Studies was provided for, this engagement being sub-Jiect, to approval Inter by the Council. The cost of the Press Information Office, for which provision appeared, in the Budget for the Vfirst time, was estimated at Tls. 45,000.
"The total appropriation under Charges" was consider-at bly Jess than last year, due to no fi ther provision being necessary respect to matters of a special nature, ie, Feetham Report, Hill Report, Salaries Commission," ete, Replying to the Chairman, the Treasurer stated that although no application for a grant had 100 in anticipation that an apput forward in Institutions to which the Council authorised grants were requested to submit their applica tions, supported by financial details def, the previous year's working, prior t compilation of the final and considerable convenience was caused unless this requirement was complied with, With veferenee to the amount shown under Interest, Brokerage, te., the substantial sums received from the Power Company veresenting interest on the 0 standing " balance of the purchase price had in recent years constit ed a material factor in this count, As periodical capital ments were made by the Company under the agreement and utilised for capital projects the income accruing from this source became The section of the Budget, show-1g the estimated income for the jeurrent year had been framed prior to the commencement of the existing crisis. As it was quite impossible to forecast what reduetions would result under such 1&8 as collection of General al Rate, receipts from Pub-sidered advisable that the Utility, Companies, ete., he con-
original figures should stand and that provision be made elsewhere to cover the cost of the present crisis, He considered this procedure eminently desirable, inasmuch as the budget in this' form enabled one to ascertain precisely the normal collection on the assessed value although _tem-thereof might ion. The figure inserted under Land Tax was rhtly lasa than that for 1931, ance having been made for Properties in respect of which this not collected, 'The estimate of revenue from General Municipal Rate, inclusive of special rate, was somewhat higher" than that for last year, due to. normal developments and' inclusion under this heading of institutions which were privileged to obtain a partial or complete remission of taxation; equivalent counter-entry respect of such concessions was shown in the expenditure sections: of the Budget.
The estimated revenue from wharfage dues was Tis." 150,000 less than the 1931 figures, owing to the revised apportionment these monies between the Council and the neighbouring. municipal authorities and the fact that an creasing quantity of goods was discharged on the Pootung side of the river to the detriment of the Council's revenue from this source.
With regard to. the estimated revenue from public utility and al undertakings, the Trea ted that the ' return on. certain shares held by the Council in the Waterworks Company which were purchased from time to time subsequent to those issued to the Council at the time the franchise was granted, was shown in the "Interest" section of the Budget, under general investments, for the yeason that the income. derived from, these shares bore the same velation to municipal finances as other funds periodically invested.
connection with the amount of Tls. 287,440 transferred to Extraordinary' Income and Expenditure, this figure represented the cost' of establishment charges in respect to capital development dur-
Text read from the printed page and cleaned; old type leaves the occasional error.