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feelings and most inveterate principles of the mercantile community. Whilst the mercantile community contended that Hongkong was simply a depot for the neighbouring coasts, a mere post for general influence and for the protection of the general trade in the China Seas, benefitting Imperial rather than local interests, and that therefore Great Britain ought naturally to bear the greater share in the expenses of the Colonial establishment, Sir John Davis acted on the assumption that Hongkong was a Colony in the ordinary sense and should not only bear the whole burden of its own civil government but contribute also, as soon as possible, towards the military expenses of the Empire. Whilst the merchants therefore still looked to free trade principles to further the growth of Hongkong, Sir JohnDavis thought only of license-fees, farms and monopolies. Compromise or reconciliation was out of the question. Free trade was officially derided, and protection gained the ascendancy. On the day when Sir John announced his fatal intention of extending registration to all the inhabitants of the Colony in the interest of good order (July 24, 1841), he declared also his determination to establish a quarry farm, a salt farm and an opium farm for the purpose of raising a revenue, and on the day when he passed his obnoxious Martial Law Ordinance (November 20, 1844), he launched his first Revenue Ordinance (No. 21 of 1844) by licensing the retail of salt and levying a duty of 2½ per cent. on all goods sold by auction. In connection with these purposes he regulated also local weights and measures (No. 22 of 1844). The British community growled at the auction duty (though on January 15, 1845, it was decided to remit it in certain cases), derided the salt and opium farms, and made fun of the tax imposed on marriage licenses, coupling them with the new burial and tombstone fees (January 15, 1845). The quarry farm yielded (September 1, 1845) only £702. When the Governor (February 23 and May 23, 1845), proceeded to introduce police rates (Ordinance 2 of 1845) and to ascertain the rateable value of all house property, the merchants declared the ruin of Hongkong to be complete and