2.
31
for.58663/20
51234/28
certain subsequent developments, which will have a bearing
on the Colony's acceptance of the altered system, comunicat-
ed in Mr. Amery's circular despatch of July 26th, 1928, under
which the Crown Agents employ floating money balances. The
accretions to "Profit on Exchange" since the institution of that system are comparatively insignificant as yet, but their
normal yearly recurrence renders the matter worthy of special
attention. The bulk, however, of the sum which now appears
in the Suspense Account is the result of the wholesale
realizations in 1926 and 1927, due to disastrous circumstances
which, I trust, will remain unique in the history of the
Colony and will not reappear in the future.
3.
Prior to 1921 the item "Profit on Exchange
體
was never serious. The records between 1907 and 1921 shew
a profit only twice and then the amounts involved were so
insignificant, i.e. $248.47 (1913) and $28.97 (1914), that
they were carried to Revenue through the Exchange Account
without more ado.
The losses shewn for the other years of the
period were carried to Expenditure and not deducted from
Revenue, consequently no countervailing rebate or relief in respect of Military Contribution was obtained, though 1919
shewed a loss on Exchange of no less than $786,665.
4.
But in 1921 the post-war fall in silver began,
and dollar exchange has dropped fairly continuously ever
since, and may reach yet lower levels. In 1922 the "Adjustment of Exchange Account" was instituted on the instructions communicated in Mr. Churchill's despatch No.116
of April 21st, 1922, in which it was agreed that the sterlin
cost of investments should be brought into the annual Account
converted into dollars at the average rate of exchange ruling
in