533
case of a salary of £500 and assuming possible in the fu-
ture a fluctuation of the gold value of the dollar to be
about as much as it has been in the last 30 years i.e.
between 4/- and 1/6 the fluctuation of the salary in dol-
lars would be from $4,250 to $6,333 or about its lowest
amount.
6.
Another scheme would be to fix a range with-
in which sterling salaries and exchange compensation would
be paid at the average rate of exchange of the preceding
month and beyond which they would be paid at the rate of
the limits of the range. Thus if the range was 1/8 to 2/-
and the dollar was above 2/- they would be paid at 2/- and
if the dollar was below 1/8 at 1/8. The objection to this
system is that, if the range is small as it would be with
the above limits, the scheme would practically be the same
as converting all sterling salaries into dollar salaries
for local payments and if large, say 1/6 to 2/2, would not
remove the present difficulties.
Taking the same concrete instance as before,
the salary in dollars would be liable to fluctuate from
$5,000 to $6,000 or 1/5 of its lowest amount with the
smaller range suggested or from $4,615 to $6,660 or 4/9 of
its lowest amount with the wider range.
7.