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to part with the British coin, at a very heavy discount, or else, as pointed out by Mr Mercer, the Tradesmen would have one price for the general customer, and another, much increased, for the Government Servant. As an instance of this, upon the arrival of the 2nd Battalion "The Royal Regiment from Gibraltar in October last, the officers and men could not obtain a higher valuation than seventeen Shillings for Sovereign, being 15 per cent discount on the Money brought with them.
If the value of the dollar were raised to a figure greater than 4/2d I do not consider that it would relieve the Government from the loss consequent upon the Exchange being so much against England, as I conceive that the Military would have fair grounds for claiming compensation for the following reasons:
1st A report has recently been made to the Home Authorities setting forth the insufficiency of the Pay and Allowances of the officers, but more especially the Juniors, to meet the high prices of the necessaries of life at this Station and the increased Comforts required by the Climate. If therefore their incomes were reduced, which practically they would be, by the valuation of the dollar being raised, it would be impossible for them to exist here...
And it would fall with like severity, upon the married soldiers. These people are already pinched by the high prices of the place, unable as they are in this climate, to eke out their pay by their wives washing for their single Comrades. Any measure, therefore, calculated to reduce their pay would prove a most serious evil.
3. It would give rise to much discontent amongst soldiers generally, whom it would be difficult to persuade that they were not defrauded of their pay in some way or other, and their rights is a subject upon which they are most tenacious.
4. Finally the question seems to resolve itself into
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