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sufficiently complicated by the rapid changes in exchange itself. The rate at which salaries were paid last month was 2.2%; the rate at which remittances were made was 2.1%.
I have therefore the honour to invite Your Excellency's consideration of the following propositions:-
(a). that the introduction of the fluctuations of the silver market during the previous month into the computation of salaries is unsound in principle:
(b). that the just and reasonable method of paying salaries is to adopt the rate at the end of the month, in order to enable civil servants to remit at approximately the same rate as that at which their salaries are paid.
It is to my knowledge that at least one of the leading firms in the Colony acts on this principle. It should not be impossible for the Government to act on a similar principle, and to devise a system by which the pay sheets should be prepared to enable this to be done. In the months of 1906, referred to in the table annexed to Your Excellency's letter, the fluctuations in exchange between the 25th, and the end of the month amounted in nearly all cases to about 1/4.
I trust that in view of the importance of the subject that Your Excellency will bring the matter before the Executive Council for their advice, and that it may be submitted to the Secretary of State as soon as possible.
I have etc.,
(83.) F. P. Piggott, Chief Justice.