:
Mo c4 4
204
exchange then rose to 5/- the same £800 would be represented in the Colony's accounts at the close of the year at $3,200 or a decrease of $4,800. If exchange subsequently dropped to 2/- this same sum would be
represented by $8,000. If this difference were to be
regarded as revenue then 20% of $4,800 would have to be
paid as Military Contribution, and thus there would be
two such payments on the same original revenue. The total
amount payable in respect of the original $10,000 would
be $2,960 and there would be a possibility of further payments becoming due in the event of a further fall in
exchange in the following year.
A
6. I would ask therefore that this system of
accounting be approved, or else it is considered necessary
for audit purposes that increases in the dollar value
of sterling stock should be shown as Revenue, although
they are no more revenue than the increase in the capital
value of an investment is income, it should be laid down
that they are exempt from payment of Military Contribution.
Sir..
I have the honour to be,
Your most obedient humble servant,
7.E. Stath
Governor, &c.