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Rh year 1882, the property market was encumbered with the estates of embarrassed owners. What the original cause of this sudden mania for gambling in land and in house property was, is difficult to say with certainty. Foreign residents generally attributed it to Sir John's inflated periodical laudations of the general prosperity of the Colony, and to his personal influence with the so-called leading Chinese traders, whom he constantly urged to take the position occupied by foreign merchants in the Colony and to purchase dwelling houses and offices in the European quarter of the town. But whatever may have caused this gambling mania, this much is clear, that the greatest gainer in the matter was the Government which derived, at the expense of Chinese gamblers, a net increase of its revenue, amounting, in one year, to the sum of $242,322.

Such was the result of Sir John's financial policy in the year 1881: profit from gambling in land $197,661, profit from gambling in house property $44,661, total $242,322. So marked was this success, that the unofficial Members of Council, before they had had time to realize the true character and cause of the increase of revenue, complimented the Governor (August 23, 1881) on 'the success of his financial policy.' They added, however, to their rash eulogy the modest request that, in the face of such a large reserve and annual surplus, a reduction of taxation should now be made. Sir John replied that he would, indeed, like to reduce the house tax from 12 to 6 per cent., and he thought if larger powers were given to the opium farmer, the monopoly would yield $400,000, in which case a reduction of the taxation might be allowed.

Turning now to the question of expenditure, we find that there was in 1877 a decrease in the expenditure of the Colony, amounting to $29,008, caused chiefly by a reduction of expenses for public works. In 1878 there was an increase of expenditure, amounting to $37,315, caused by the payment of the Colony's share in the Postal Convention ($20,023), increased Police expenses ($10,051), and laying of submarine cable to Green Island ($5,211); but expenditure on public