3.
The great fall in the purchasing value of the current coin of this Colony, the Mexican dollar, presents a difficulty;
4.
The first batch of recruits were enlisted in 1871 at £100 a year each. The value of the dollar being then about 4/2, no difficulty arose as to their payout on arrival; they received forty dollars a month, which is the equivalent of one hundred pounds a year at the Colonial Government rate (Ordinance 1 of 1864) of 4/2 the dollar.
5.
The dollar continuing to fall, the pay was increased in 1887 to forty-five dollars a month, but with the proviso that they should serve fifteen years instead of ten years before receiving pensions.
6.
The depreciation of the dollar has continued; it is now only 3/38 or fifty dollars and forty cents a month as the equivalent of one hundred pounds a year; in other words, the purchasing value of the dollar is more than seventy per cent loss through the rate at which the Colonial Government disburses it.
7.
Having caused confidential inquiry to be made, I learn that the large majority of those who have joined during the past three years should be receiving pensions from the necessity that they serve instead of ten years. Owing to dissatisfaction from these causes, they do not propose to stay in the force after the completion of their first period of five years' service.
8.
Hence, I would most respectfully submit for the consideration of His Excellency the difficulty caused by the depreciation of the dollar.