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Q-Then with regard to the present system, there is no great change, as far as you are aware, that you could suggest?
A.-No, I don't know that I could suggest any alteration in that respect. There is another thing I have found. These are points that have come to my knowledge since I left the Government service. Now I find that if in a contract, if it is rather a heavy job, I specify payment is to be made by cheque, I can get that work done some five or six per cent. cheaper.
Q.-I don't understand what you mean when you say "paid by cheque."
A.-I am doing some work for you, say: I distinctly specify, you give the Con- tractor a cheque, not an order on the Compradore.
Q.-Oh, then there is a squeeze?
A. Yes. I give you a certificate in the morning, you give him a cheque say at noon, and he takes it straight to the Bank.
Q-And where is the difference between that and the system in the Public Works Department?
A.—Mr. PRICE signs a bill to-day, say (this is what the Contractors have told me over and over again) and they probably have to wait a month for their money. That is equal to one or two per cent. with them; and then there are certain squeezes.
Q.-Is there any opportunity?
A. No doubt there is.
Q.-Don't they get paid at the Bank?
A.-No, by the Shroff here.
Q.-Are they paid in specie out of the Treasury?
A. They are supposed to be paid out of the Treasury. A man has to draw $400 say. He will get $300 say, in dollars or notes, and the other $100 in cash-a squeeze
for the Shroff.
Q. In these days of Banking accounts is it possible they have a Shroff who pays in loose money and has power to squeeze?
A.—This is what I have heard lately. I know if it had come up when I was in the service, and had come to the ears of Mr. PRICE it would have been stopped at once.
Hon. A. LISTER.-I may just explain one point. Sir RICHARD MACDONNELL was much troubled by the rapid accumulation of copper in the Treasury. It drifted back again in spite of all efforts to get it into circulation, and he directed (what I think a mistaken policy) that all Contractors should be paid so much per cent. in copper, and this was vigorously carried out.
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