No.14. 99.
Lub-en closure 1. 9002 Page 13 SEP 48 C. 8. A. G. 4• 99.
Sir,
Audit Office, Hong Kong, 18th May, 1899.
Between 1893 and 1897 the Crown Agents for the Colonies held very considerable sterling balances on account of this Colony.
2. In order not to let the money be idle, earning no interest, they from time to time lent a portion of it on short loans or put it on deposit and each time they made a loan or deposit or withdrew money from loan or deposit they credited or debited themselves with the various amounts in their cash account with the Colony.
3. As the various sums appeared in the cash account and thus reduced or increased the balance it was necessary for each individual item to be dealt with in the account here, and owing to fluctuations in exchange the system had the effect of throwing out the account here as kept in currency to a large amount, in fact to such an extent that on 31st December 1897
The Comptroller and Auditor General, Somerset House.