1

likely to cause that decision to be modified.

In the Governor's opinion, the opposition to

the conversion of sterling salaries at the

current rate of exchange us from the 1st of

January, 1932, is dying down.

The Estimates were framed on the basis

of 1/ .When the despatch forwarding the

Appropriation Ordinance was sent off on the

23rd of October. it had risen 25 per cent.

At present it stands around 1/6d.

The effect of this rise will be a very

considerable drop in the dollar value of

the Tobacco and Spirit duties which have recently

been placed on a sterling basis. The yield

from these duties was estimated as follows:

$ at 1/ Tobacco.

at 1/2d. $1,800,000 Tobacco. $955,000

Spiritis. $150,000

Spirits. $124,000

On the other hand, the Colony has many

sterling commitments including sterling salaries

to meet and the general situation must have

been much improved on balance by the rise in

the dollar and there now seems to be every

prospect that the Governor will be able,

as

he hopes, to reconsider in the Spring, provisions

for certain urgent items which had to be

omitted from the Estimates in order to balance

the Budget.

Provision

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