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sir,
Chambers,"
Supreme Court, Hongkong,
6th. January, 1908.
138
In my letters of 25th. March and 2nd. April, 1907, to Sir M. Nathan, I suggested that the method of computing the rate of exchange for payment of salaries should be re-considered; and in his letter of 27th. June, 1907, Sir M. Nathan informed me that the Secretary of State saw no reason to alter the system.
2.
Since then the new system for paying salari- -es has been adopted, and for the first time the old average period has been resorted to for ascertaining the monthly rate.
In my letter of even date I have submitted
3.
to Your Excellency my views on the question how this rate should be calculated. But the circumstances which occurred last month
seem to me to render it advisable to draw attention to the very unsatisfactory manner in which this computation by an
average period works.
4.
The facts are that salaries were paid for December at 2/- and that the demand rate on 31st. December was 1/9; there resulting to the civil servant of a loss of 24d, on each dollar remitted. If the dollar rises again it is possible
that some of the loss may be recouped. But even this introduces
another element of uncertainty into the matter; for the loss
may occur at a time when there may be a heavy payment to make,
*.g. for passage money for a wife. But the point which I desire
specially to urge for the Secretary of State's consideration
is that these fluctuations whichever way they turn, ought if
possible to be eliminated from the question of salary. The
importance of the remittance question was emphasised by the
Secretary of State in his despatch on the general question.
Excellency
Sir Frederick Lugard, K.C.M.G.,
5.
Governor of Hongkong.