A.—4.

12

VII.—DIRECT TAXES. Under the Revenue Amendment Ordinance, 1936, the personal tax of £1 ss. payable by adult male Europeans of eighteen years of age and over was abolished, with effect from the Ist April, 1936. The direct taxes now are : —

In addition, there are the usual motor-vehicle licenses, water rates, and other similar fees. VIII. -INDIRECT TAXES. The principal revenue of the country is derived from Customs duties (see the annual report on " Trade, Commerce, and Shipping "), store, and other taxes as set out in the Revenue Ordinance, 1929, and port and shipping fees defined in the Port Control Ordinance, 1932. Stamp duties are also collected in accordance with the provisions of the Stamp Duty Ordinance, 1932. Imports in 1937 were 76-004 per cent, of the value of exports, as compared with 63-44 per cent, in 1936. IX. —TRADE. The trade figures for the calendar year 1937 showed an increase of 44-16 per cent, over those of 1936. Imports increased by £100,848 and exports by £89,181, the increased prices ruling for both cocoa and copra at the beginning of the year being largely instrumental in producing so favourable a position. The London market quotation for copra at the beginning of 1937 was £21 2s. 6d. per ton. This price held for a short time, but a decline then commenced which continued throughout the year, with the result that the London price at the end of the year was only £12 12s. 6d. per ton with indications of a further drop in markets. Copra-production increased slightly during the year, the export being 13,340 tons, as compared with 13,014 tons in 1936. Cocoa prices at the commencement of the year 1937 also maintained their high level (£7O per ton) for a short period, but, as'with copra, a steady decline set in till a level of £40 per ton was reached. This nominal price has ruled for some months and shows no tendency to rise. During the trade year 1937, 1,253 tons of cocoa, valued at £71,138, were exported, as compared with 1,065 tons of value £46,607 in 1936. The export of bananas again proved a favourable and steady source of revenue, a record total of 187,755 cases of an f.o.b. value of £70,446 being shipped to New Zealand. There was a small increase in rubber exports, 61 tons leaving the Territory, representing a value of £5,505, as compared with 51 tons (£3,408) in 1936. During the year the London market price for rubber fell from 9Jtd. to 7d. per pound, with indications of still lower prices being reached. The following return shows the principal imports and the total value of the exports, imports, and total trade of the Territory for recent years : —

Received. 1936-37. 1937-38. £ £ (a) Graduated salary-tax, from £1 on £200-£300 to £30 over £1,500 .. 325 339 (b) Building-tax, 1 per cent, per annum of capital value of European 2,469 2,552 buildings

Exports. Imports. Calendar Year. Copra. Cocoa. Bananas. Total Total Trade. Value. Total Value. Tons. Value. Tons. Value. I Tons. Value. 1 v ' £ £ £ £ £ 1927 .. 11,665 242,672 792 48,216 .. .. 335,978 304,369 640,347 1928 .. 15,989 319,259 959 69.507 815 11,219 422,175 326,553 748,728 1929 .. 12,941 205,330 677 46,286 1,916 24,640 293,938 288,849 582,787 1930 .. 12,285 166,221 1,007 61,294 3,424 44,259 284,515 275,355 559,870 1931 .. 11,062 109,220 620 35,284 3,044 39,022 194,447 164,950 359,397 1932 .. 10,879 108,698 825 49,712 2,383 20,016 183,028 150,902 333,930 1933 .. 11,526 101,347 899 41,813 2,928 26,999 173,837 150,856 324,693 1934 .. 8,948 60,654 1,027 29,498 3,437 35,796 128,117 92,784 220,901 1935 .. 12,501 108,695 576 19,639 3,893 38,146 189,298 135,757 325,055 1936 .. 13,014 156,873 1,065 46,607 4,573 46,737 263,255 167,020 430,275 1937 .. 13,340 199,747 1,253 71,138 6,706 70,446 352,436 267,868 620,304