138
It was below 1/6 Jesterday
1.17.M.4.3.30
- 5·
result in a reduction of this sum. As the Table shows, at exchange $1 -1/9d, the net extra cost of the scheme
would be under $1,350,000. It must, moreover, be
borne in mind that the existing rules for conversion
of sterling salaries are powerless to mitigate the
on
effect of officers with sterling commitments of an
exchange of $1
*
1/6td. The sliding scale itself
ceases to be of value below an exchange rate of 1/8d and the temporary allowance does not compensate for any lower rate than 1/9d. Therefore, without any revision of salaries, it has already become necessary to consider what steps should be taken to compensate the officers with sterling commitments for this further drop in the sterling value of the dollar. Should it
prove necessary to abandon the sliding scale and to
convert sterling salaries at current rate with the maximum temporary allowance on the results so obtained, and assuming an exchange rate of 1/6d, it would be necessary to increase the sum voted for 1930 by $797,653. The maximum cost of the revision, if the dollar should fall to 1/6d, may therefore be put at $2,541,458 over the sum voted for 1930, but at only $1,743,805 over the sum which it may in any case be necessary to vote, if the dollar should fall to and remain at 1/6d. I do not, however, anticipate that the dollar will fall as low as 1/6d or that it will even remain at its present low level.
7.
It is necessary at this point to consider
how far the Colony can meet the increased cost of the scheme without resort to additional taxation.
The