2.
19 END
advantage of the position but to have waited on the chance of the dollar being higher when it became necessary to remit to
the Crown Agents.
I expressed this view at the time that I approved of the contract being made, adding that it was not the business of Government to speculate on a further rise in the dollar but to take the opportunity at once of strengthening our budget-
ary position in 1932.
4.
I would add that it is the practice to send from time to time considerable remittances to the Crown Agents to keep them in funds to meet liabilities incurred on behalf of this Government. Such remittances are often sufficient to cover possible liabilities over a period of several months. Under this system it would have been open to this Government to remit the sum of £200,000 at once instead of making a
contract for remitting it in several instalments, as it was clear that this sum would be required by the Crown Agents
during the first few months of 1932. If this had been done
the Director of Colonial Audit would scarcely have preferred
a charge of speculation with public funds.
5.
I would ask for your approval of discretion being exercised locally in such matters subject to such limitations
and conditions as you consider necessary.
I have the honour to be,
Sir,
Your most obedient, humble servant,
mine
Governor, &c.