This was before the collapse in the currency, in view of which an increase in the rafes up to 27 per cent. was only tobe expected, That it isnot more is due to the large economies effected by the Council in 1936. If the rates had been gradually increased not only would the present large increase have been unnecessary, but a very great part of the $40,000,000 surplus still would have been available for emergencies, Every attempt to increase the rates has met with strenuous opposition from the Chinese and Japanese communities, who have however from year to year demanded increased grants for "Education." In other words they have followed a policy of trying to eat their cake and have itat the same time, The very restricted basis for obtaining revenue provided for in the Land Regulations indicates that the intention was to provide only for ordinary administrative expenses and was not intended to provide for am elaborate education programme or for the maintenance of an enormous Chinese Gaol.
In 1929, without consulting the Council the Treaty Powers deprived the Council of all the "Provisional Court" fees, whilst leaving the burden of maintaining the Gaol as a charge or the Ratepayers. The upkeep of this Gaol is at present costing the Community over $3,500,000 per annum. This and the cost of education comprise over 70 per cent. of the proposed 9 per cent. increase in the rates and cannot be eliminated unless the Gaol were closed and the prisoners handed over to the local Chinese authorities and the schools were handed, to the various nationalities residing in the Settlement, so that the cost of maintenance ceased to-be a charge on the rates.
Text read from the printed page and cleaned; old type leaves the occasional error.