50
on both sides of the account remains the same, in our accounts as kept in currency we have $15,384.62 more on the receipt side than on the payment side.
5. Supposing that the Crown Agents were going to remit the £20,000 to Hong Kong, the $15,384.62 would be a true profit on exchange to us, but as the £20,000 will eventually be spent in sterling by the Crown Agents there is no profit.
6. The method of adjustment adopted as laid down in paragraph 3 of this letter is very clumsy, and the alternative would be to carry to account the difference in exchange as a profit, which, as no profit has been made, is wrong.
7. It appears to me however that if at any future time the Crown Agents were to lend on short loans any money of ours they might have in hand, the difficulty could be got over by no entry of the loans being made in their cash account with us.
8. The suggestion I have made in paragraph 7 would materially simplify the accounts as kept in currency and would not, as far as I can see, complicate the accounts to be kept by the Crown Agents.
9. As I look at the matter the Crown Agents hold a certain