"It must be emphasized that the inability of the Council to balance its budget is due not so much to natural as to artiflelal causes, As early as 1031, the Association, being then already aware of the impending financial tie-up of Council, submitted for Lits consideration an Economy Memo-random which was subsequently published for public information on November 11.
"In" the memorandum, emphasis was laid on the criterion of taxation, which requires the government 10 build up a public Income by withdrawing from private incomes only those amounts roughly calculated on the basis of the prople's ability to pay.
And referring to the diminishing poying ability of the Shanghai residents we made the statement that it will certainly meet with public approval that the financial policy be pursued by the Council should be one of retrenchment and economy and should not be directed toward the exploration of the source of revenue in order to maintain balance in the Municipal Budget' On this ground, the Council was urged to embark upon an extensive economy scheme in its administration with particular reference to the reduction of person-hel expenses and the discontinuance of non-essential services.
"To be specific, four conerete suggestions were made in the memo-random which, we held. would have appreciable effects ju the direction of economizing municipal expenditure," namely, abolition of Municipal Band and Orchestra, employment of senior Chinese oMcials, curtailment of extraordinary expenditure on road exten sions and widenings and readjustment of the scale of pay.
"The memorandum concluded with, the opinion that municipal economy should be effected only in s0 far does not atest the. expenditures which are vested og capital in pro-Aluctive undertakings or are intended for educational purposes, that efforts shuld be made"ta ensure maximum Fetun by entalling. minimum "cost in the conduct of technical services trid that exploration. of the source revenue inthe" direction of. increased taxation should be avoided far as. possible?
Text read from the printed page and cleaned; old type leaves the occasional error.