'Reopening the question of muni-ipal economy, the Chinese Ratepayers Association has despatched a Jong memorandum to the Shanghai 'Municipal Council, outlining the views of some of' its members on (~The memorandum fol-
"The Shanghai Chinese Ratepayers Association 1s in receipt of the following letter addressed by Mr. Hsu Homo-chu and other members of the Association's Executive Committee on the subject of Municipal Economy, Which, it is requested, be submitted to the Council for its consideration. Tt will be remembered that four years ago, or to be exact on Nov ber 11, 1831, the *North-China News" published in full prominence to the text of an exhaustive memorandum on the same sub-
Ject prepared by the Association in Which the writers suggested as retrenchment measures:—"1. The disbandment of the Muni-ethal Orchestra or its transfer to pri-vote operatic "2. The appointment of capable Chinese to senior positions in the Council's service:
I The extension of road widening programmes, etc., over a larger number of years so that the rate of Drogress will not prove burdensome fon the Budget of any particular year:
4. That reduction of pay should commence with the higher paid el It is interesting for the public to compare the contents of this memo-dum with the suggestions that the executive members of the Association deem fit to make in the present one, bearing in mind the fact that the financial plight In Shanghai was not as*deplorable then as it is now and meditating for a little while on the extent to which the Council had acted upon the advice of the Ratepayers since the above memorandum way drawn up in order to relieve the Aimeulty of the Municipal Treasury. which, it is believed, is now in a deeper abyss. In view of the forces fof depression now raging over this part of the world, there is little sign of an improvement in the local busi ess and economic situation in the near future, and that a greater degree fof anxiety over the financial position fof the Council is being felt by the more articulate section of the Ratepayers is but natural.
The Letter "the main part of Mr. Hsu's fetter follows:—"Shanghai, the foremost trading port in the Far East, is keenly feeling the ravaging effects of the forces of depression which have been attack= ing the world. Reports of liquid: tions bank failures, and closures of usimess houses either on account of credit diMculties or upon a court order for debt become the order of the day. Under such circumstances, but natural for shops and stores to exercise strict economy by reducing the number of their employees cutting down wages. "As. house ent is considered the main item in the expenditure of a shop, @ rent reduction movement is being vigorously conducted and it is expected that the purpose behind the movement will in course of time be consummated. The consummation, if it materiatises, however, would bring with it ad= verse effects on the Municipal Treasury. because the municipal rates at, preterit collected by the Council are. Calculated on the Easis of the rentals fof houses: if the house rent is reduced, the municipal rates will be correspondingly curtailed. It will be observed that the Council depends argoly on the rates to meet the var-fous expenses of the administration fand that according to the Budget for the current year, the total revenue accruing from the collection of rates estimated at approximately $11,- '800,000.
"However, for six months ending June, 1995, there is shown a deficiency of $260,000 in the actual amount of the rales collected. It is presumed that the conditions for the latter half of the year will become worse and that there will be many more shops closing down which would result in possible exodus of the residents to their native cities. An inevitable consequence as far as can be foreseen would be an increase in the number fof the vacant houses in the Settlement, which would ultimately cause a further reduction in the collection of the rates, Foreign Stars Pay reflection "on the Council's administration appears to support the view that the Council rise not ald any attention to this situation. Apart from earning huge sums of pay, the foreign members of the Couneit's staff are liberally treated in other benefits such as exchange coripensation, children's bonus. ete. Furthetmore, the Council makes some attempt to preserve the Orchestra, which in' the consensus of public ' opinion can be disbanded because it is liked only by a minor-Hy of the foreign residents.
It is to be observed that the expenditure of the Orchestra for the Arst half year of 1935 has amounted to $125,000 and for one year the amount will be $250,000, while the educational grants comprise only five per cent. of iis total revenue of $25,200,000. This illustrates. that the allocation of the Council's revenue to the various departments of the municipal activities. is. improper.
"In the opinion of the writers, at the present time of depression, when strict economy such as reduction in staff und wage is being observed, the Council should indeed adopt a similar policy in its administration. While conceded that the expenditure for the Police Force should not be subject to curtailment owing to the possible increase of crime os an effect of the acute unemployment situation in the city, the Connell can, however, save a large amount of money if it will pay. attention to economy in other expenses. The saving thus effected can be converted Into a reserve fund for atonement for future deficiencies in the Muni cipal Budget. This is indeed an Important task which it devolves upon the Council to perform.
Text read from the printed page and cleaned; old type leaves the occasional error.