5
contribution on book profits would then not
arise. These suggestions were adopted.
(1) The "Exchange Account" reappeared in the
1926 Accounts. (2) According to paragraph 1 of
the present despatch, the total profits on
sterling transactions, "i.e. the direct sterling appreciation of securities realized as well as the appreciation in the dollar values of the
original investments, due to lower exchange,"
have been carried to revenue.
In 1925 and 1926 it was found necessary to
realize investments wholesale. The dollar
equivalent of the sterling appreciation was
carried to Revenue and Military Contribution
was paid thereon.
The nett dollar appreciation of the
original sterling value of investments was calculated for the years 1920-26 as $2,307,700.60
and in 1926 this sum also was carried to
Revenue. The corresponding Military
Contribution ( 461.540.13) was, however, not
paid but was placed provisionally in a "Suspense
Acco unt Military Contribution."
C1
This circulation was based on the rate
of exchange when each realization took place, whereas the Adjustment of Exchange Account
(see above) was calculated on the basis of the
The resulting December rate of exchange.
discrepancy of $367,715.66 was written back to
the 1928 Revenue and Expenditure Account from the Adjustment of Exchange Account.
It is
not