27
The immediate increase involved by these proposals amounted to $6,478 and the ulti- mate increase to $10,638.
Mr. Harcourt in his reply dated 17th December, 1912, approved the above recommen- dations.
Since the receipt of this despatch it has been proposed to extend the recommendations (i), (ii) and (iii) to certain additional officers involving a further increase of $900.
3.-The Subordinate Staff of the Post Office.
In a despatch under date 13th November, 1912, the Governor dealt with the applica- tion by the Subordinate Staff of the Post Office.
There had undoubtedly been a substantial increase in the cost of living during the previous 10 years but an investigation showed that the Petitioners had also received sub- stantial increases in salary during the period. The Governor was therefore unable to recommend a general increase of salaries but he considered that with a view to keeping the clerical staff in the Department for a number of years, Grades IV and V should be made continuous and that the staff should be given such increases as were allowed in the case of officers of similar grade in other departments. He also recommended a re-organiza- tion of the pay of postmen which had been suggested by the l'ostmaster General.
These recommendations would involve an excess of $2,204 on the Estimates for 1913.
Mr. Harcourt in despatch dated 19th December, 1912, approved the above proposals.
4.-Officers in receipt of sterling salaries or of dollar salaries with exchange compensation.
In a despatch under date 22nd November, 1912, (No. 1), the Governor represented to the Secretary of State for the Colonies that dissatisfaction with existing salaries was largely due to the high rate of exchange which had supervened upon an undoubted increase in the cost of living. The main fact to be borne in mind was that the standard of value in the Colony was the Mexican Dollar and not the English Pound Sterling, that to the former standard local products must conform and that these with house rent, wages, doctors' and dentists' fees, which never varied with exchange, represented in the case of married officers 66% and in the case of bachelors 80% of their liabilities.
The average rate for the year 1902, when the sterling salaries scheme was introduced and double exchange compensation was granted, was 1s. 4. The maximum rate of exchange for the payment of sterling salaries and dollar salaries with exchange compensa- tion had been fixed in 1907 at 2s.
The average rates for the years 1908 and following were:-
1908. 1s. 9het. 1909.........1s. 9d.
1910.........ls. I1⁄2d. 1911... s. 93d.
....Is.
The rates for these years had tended to regulate expenditure on the basis more or less of a 1s. 9d. dollar.
The rates for the current year were as follows:
January....... 1s. 10d.
February.........Is. 1d.
March...18. 114.
April...Is. 114d.
May....1s. 11d.
June
July
..28.
.2s.
August...... 1s. 113d.
September.........2s.
October...
25.
It would thus be seen that officers on a sterling salaries had suffered a serious loss of purchasing power.
A careful investigation of the matter showed that the increase in the cost of living since 1902 for officers domiciled in Europe was 211%, a figure which was calculated on a conservative basis.