C
No.57.
From the Honourable the Colonial Treasurer.
To the Honourable the Colonial Secretary.
C. O.
276
40504
09
TREASURY,
16th August, 1902.
379n
Sir,
I have the honour to request you to be good enough to invite His Excellency's attention to Rule 151 of the Financial Instructions in so far as it regulates the rate of exchange for conversion of the Crown Agents' transactions into silver currency.
I am certain that you will find my objections to this rule stated in a report written previous to the receipt of C.O.D.No.290 of 1901, and I regret to say that a striking example of an objection will occur this year.
Sub Enclosure.
From the attached memo of expenditure on the shipment of $300,000 worth of coins received by the S.S. "Australia", you will observe at A, that the result of conversion in accordance with the rule shows a profit of 18% which is manifestly absurd inasmuch as the difference in the intrinsic value of Subsidiary coins and Mexican dollars is approximately only 10%, and no allowance is made for expenses of minting &c.
This discrepancy arises from the fact that the silver used for these coins was purchased at about 1/8 the dollar and not at 1/10, the rate at which the cost is converted.
The memo at B will show what profit would have been brought to credit as Revenue had the old system of conversion been