2.
1/2
receive not less than the exact Dollar equivalent of their
salary. When the sterling value of the Dollar rises above s.d. 2/- there will not in my opinion be a corresponding
decrease in the cost of living. The advantage in such a
case is only secured when money is remitted home. Further
it must be borne in mind that a Britisher requires a
certain number of Dollars on which to live in this Colony.
For example, the class of man recruited from home on a
salary of £300 per annum requires in my opinion $3,000 on
which to live. If owing to exchange the Dollar equivalent
of his salary is reduced to $2,500 it would inflict a real
hardship.
(3)
I have heard it argued that there should
be some stop at which the Sterling salaries are paid and I
admit that at the time the Commission's Report was issued
the Commissioners did not contemplate that the sterling
s.d. demand rate of exchange was likely to drop to 1/5.9/16 as
it is at date. In making recommendations there must
inevitably be certain conditions which it is not possible
to foresee or allow for. For example, if there were a
further considerable collapse in the price of Silver with
a corresponding drop in the sterling exchange the Government
would possibly have to reconsider the whole position of the
Colony's finances and of their Officers' salaries and under
such conditions the method outlined under paragraph 12
might have to be reconsidered. Under normal conditions I
have no doubt that its fairness cannot be called into
dispute.
(4) What constitutes a normal condition is for
the Government to decide. It seems to me largely to
depend upon the Colony's resources. The fact remains that
under paragraph 12 the Commission have recommended that
Officers who receive Sterling salaries should receive the
same at the average demand rate for the month provided
such
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