3
(X A profit occurred only twice between
as reserve funds and were merely a lock-up for
surplus moneys.
The Secretary of State in reply agreed that
it was not necessary to establish an Investments
Depreciation Fund in Hong Kong. He accepted a
proposal that the sterling cost of the investments
should be brought into the Annual Account each
year
converted into dollars at the average rate of
exchange ruling from the 16th of November to the
15th of December.
Up to the end of 1921 all gains and
in routine transactions losses on the dollar exchange were carried to an
Exchange Account, below the line, the account
being balanced at the end of the year and the
resulting profit or loss carried to Revenue or
Expenditure.X In 1922 there appeared below
1907 and 1921, i.e. the line, in addition to this Exchange Account,
248447(1913) and 28.97 (1914))
a receipt entry for an Adjustment of Exchange
Account, representing the difference in the
dollar equivalent of sterling investments,
calculated as described in the Secretary of
State's despatch referred to in the previous
paragraph. This was carried direct to the
surplus and deficit Account of the Colony
contravention of Colonial Regulation
in
345
(now 326), which provides that "The Surplus and
Deficit Account will be posted exclusively from
the Accounts of revenue and expenditure;
and
will accordingly furnish the accurate record
of the balance between them, from month to month
and from year to year.
W.O.
(See also W.O. letter 58 11/8/23
~ 40350/23 flagged green below)
40350|23|flagged
In 1923