534
2498
01.2
A third scheme would be to fix upon some
rate, and, if the dollar goes above it, to pay the dollar
equivalent at that rate, and if it goes below it, to pay at
the average rate of the preceding month. If, for instance,
a 2/- rate is fixed upon, then when the dollar is above 2/-
officers drawing sterling salaries would receive 10 dollars
to the £, and if below 2/- some greater number according to
the exchange of the previous month. 2/- would be an arbi-
tary but convenient rate to fix. It is considerably higher
than the rate current at the time of the fixing of the
Sterling salaries by Mr. Chamberlain's despatch of the
13th. June, 1902, but since that date officers have on the
whole gained by the low exchange and they would again pro-
fit if the gold value of silver fell while they would not
lose if it rose. The practical effect of this scheme if
carried out would be to convert sterling salaries into dol-
lar salaries for local payments if the dollar value rose
above 2/-. The disadvantage of this scheme is the loss
that would fall on the Treasury with a very low dollar but
a low dollar is generally good for trade and consequently
when the dollar falls the revenue tends to rise and there-
fore to be in a position to meet the additional expenditure
due to increase in the number of dollars paid on account of
sterling
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