To His Excellency
Sir MATTHEW NATHAN, K.C.M.G.
574
Enclosure 1.
We the undersigned Heads of Departments who are paid on a sterling basis beg respect- fully to submit to Your Excellency the following remarks on the subject of Exchange Com- pensation and the question of salaries generally and to beg Your Excellency to forward the same to the Right Honourable the Secretary of State for the Colonies, with a request that he may be pleased to re-consider his decision to take no action in the matter.
2. In 1898, a meeting of Heads and Assistant Heads of Departments was held to make representations to the Secretary of State on the subject of salaries generally on account of the fall of Exchange. We have adopted a similar course on the present occasion in order to make representations on a subject which not only affects ourselves and our wives and families, but also the junior officials in our several Departments.
3. We deeply regret the Secretary of State's decision to take no action in the matter, as we anticipated that he would sympathise on a subject which affects nearly all the Civil Servants of the Colony, reducing their salaries by a considerable proportion while there is a probability of a still larger reduction in the future. We confidently believe that on con- sidering the facts which we have the honour to lay before Your Excellency, the Secretary of State will recognize the justice of our appeal.
4. The first point on which we desire to lay stress is the following:
The position of officers paid on a silver or on a sterling basis is identical so far as salaries are concerned: both suffer alike from the rise in silver. Both the silver and sterling systems of payment are based on a fictitious value of the dollar; with the result that the amounts paid for nearly two years as salaries have been reduced, though no change whatever in the price of commodities or in the cost of living has taken place.
a. The principle on which exchange compensation is granted to officers ou a silver basis is that they are paid the difference between the average rate of exchange for the month and a 3/- dollar.
The conversion from a silver to a sterling basis was effected by turning the dollar salary into sterling at the rate of 3/- to the dollar small odd sums being omitted.
The annexed Table (4) shows that in the case of the officers therein mentioned the monthly payments under the old and new systems are practically identical.
b. The dollar had remained at the rate 4/2 till 1874, after which date it steadily declined, as shewn on the annexed Table (B). The relief which has been granted to Civil Servants at different times in conse- quence of the decline in value of the local currency is as follows:-
I. In 1882, family remittances were granted to the extent of half
the officer's salary, the dollar having fallen to 3/7.
II. In 1890, salaries were re-adjusted. At this period the value of the dollar was, for 1887-1888, 3/1; for 1889, 3/2 : 1890, 3/5; and for 1891, 3/1.
III In 1894, Exchange Compensation was granted on half salary, the dollar having fallen to 2/-. One year's arrears were also granted.
IV. In 1901, Exchange Compensation was extended to the whole salary: the dollar shewing a tendency to decline further, coming down to 1/11 in 1897, 1898 and 1899.
e. Exchange Compensation was calculated on the basis of a 3/- dollar. The reasons for the adoption of this rate instead of 4/2 must we presume have been, first, that in the opinion of the experts a return of the dollar to 4/2 was improbable: secondly, that from 1885 to 1891 (i.e., about the time when the question of re-adjustment of salaries was