E. & A. Dept. Form No. 1 b.
The Local Auditor - Hong Kong to the
Comptroller and Auditor General.
10 18/56/93.
Six.
383
0.0.
19684
224V 93 Audit Office
10th October 1898,
I have the honour to inform you that owing to the varying rates of exchange there is always at the close of the year profit or loss on exchange on money order transactions.
For the past two or three years there has always been a profit and this is easily accounted for as with a falling exchange there will usually be a profit and with a rising exchange a loss. As an example, say Australia, with whom we exchange a large number of orders, sends us lists of orders to pay for, say $500 when exchange is at 2/9, all the orders in these lists whenever fair are paid at 2/10, and so we have to pay out to the public $3636.
Australia remits to us from time to time drafts to cover the balance due to us which is always in our favour. When her drafts arrive exchange has fallen say to 2/8 and we sell the drafts therefore for $3400, showing