272
DESPATCH.
Governor.
No.
383
1902
12 Aug
Last previous Paper.
You
No.
HKONG
No. 40594
(Subject.)
C.O. 40501
Conversion of CA transactions into silver currency
submits with Treasurer's letter on the rate of exchange for -: urges that, under new Financial Instructions, be given power to framing system in vogue, again adopted.
(Minutes.)
D&C(78)-50851-20000-12-09
1-800-8
Next subsequent Paper.
Mr. Johnson finds by the Treasurer, according to the rate of exchange.
The gist of this despatch is that when the Treasurer's rate of exchange for the previous quarter does not tally with the current rate of exchange, the Colonial revenue is credited in all coinage transactions with a fictitious profit either on exchange or on the supply of coinage, which fictitious profit has to be balanced by a corresponding entry on the expenditure side.
This would be a mere matter of book-keeping but for the unfortunate fact that the colony has to contribute a proportion of its total revenue to the W.O. It does not seem worth while to change the system adopted under the new Financial Instructions merely to meet this difficulty; and I would therefore adopt the alternative suggestion of the Treasurer and debit the Subsidiary Coin Account.