C83
1
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2 Bolig egyediszə odd.
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A funn
of the dollar falls the upward tendency of prices at once re-Lorarte itself.
254
4.
Given equal conditions of exchange, the increase in the emoluments of the sterling-paid Civil Service since 1914 may be put broadly at 30%. I have shom, however, that the new ayaten of exchange is less favourable than the old, and as the doller falls all local charges rise. The exact effect of the fluctuations of the dollar must reas in a matter of guess work; but it is probable, as far as 1 can judge, that a fall in exchange from, for example, da.8d. to 28.6d., will, if susteined for a sufficient period of time, result in an incresse in local :rices of considerably over 20%.
The simplest method of arranging a sliding acale would be to allow 1o in respect of each fall of ld. in exchange; but this would give a renze of 26" between 48.38, and 2e.6d., which would in my opinion be too great. I scoordingly recommend the adoption of a scale with a range of 20% between 48.00, and 28.6d., se shown in the enclosure.
0.
it is not likely that the dollar will fall
below 28.6d. for some considerable time to come, and in any event 1 should prefer not to make any provision against much an eventuality until nome experience has been gained of the prac-
tical working of the sliding sesle.
I have the honour to be,
Wy Lord,
Your Lordship's most obedient,
sd.
humble servant,
R. E. STUBBS,
Governor, 20.