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tendency to decline further, coming down to 1/11 in 1897, 1898 and 1899.
3. Exchange Compensation was calculated on the basis of a 5/- dollar. The reason for the adoption of this rate instead of 4/2 must, we presume, have been, first, that in the opinion of the experts a return of the dollar to 4/2 was improbable; secondly, that from 1885 to 1891 (i.e. about the time when the question of re-adjustment of salaries was under consideration) its value seems to have settled in the neighbourhood of 5/-; thirdly, that the opinion of the experts probably was that there being still a marked downward tendency in the silver market it was hardly likely that the dollar would recover beyond this firm rate.
4. Sterling salaries were adopted in 1904 on the basis of the 3/- dollar. It was optional for existing officers, but the general condition being decidedly unfavourable, not more than 3 or 4 officers accepted them.
The dollar continued to fall, reaching the lowest point of 1/4 on 1st December, 1902. The lowest yearly average was reached in the years 1902 and 1903, when it was 1/8.
5. Meanwhile it was inevitable that the price of commodities and the cost of living should rise. It is an undoubted fact that the rate of wages, rent, and of all household goods rose as the dollar fell, and were determined on the basis of a low dollar. This rate has been practically maintained up to the present day.
Attached to the Memorial addressed to the Secretary of State by the Heads and Assistant Heads of Departments in (or about) 1898, will be found a comparative statement of the prices ruling for rents and