- 2.
-
44
a rate for transfer between Treasury Chest Officer and
Colonial Treasurer.
However, the main obstacle, as I have pointed out,
is that the Colonial Treasurer's policy of remitting sterling
to London under the most favourable circumstances as regards time, rates and financial position, is directly opposed to
the conditions of regularity regardless of market prospects
under which the Treasury Chest Officer sells his sterling.
The interests of the Treasury Chest Officer and the Colonial
Treasurer are, therefore, opposed.
By way of illustrating the points set forth in
paragraph 3 a few actual quotations are appended in connec-
tion with recent transfers of money by the Treasury Chest
Officer and the Colonial Treasurer.
On 2nd August Bank's opening selling rate was 1/5; business done in the money 1/513. In the afternoon I took
16
1s/6d for £50,000. Now I had been on the look out for a
good rate for over a fortnight but could not get anything approaching 1s/6d so I kept off the market, as the last
remittance I had made on 4th July was at 1s/6d and the rate
had dropped. My broker had instructions to keep me informed
of any change and to tell me immediately 1s/6d was obtain-
able. I was repaid for waiting but this is diametrically
opposed to the Treasury Chest Officer's policy. On the
14th August the opening selling rate was 1s/63. Best market
rate was 1/
1/611. I sent out the broker with enquiries for
1/61⁄2 for £50,000 and got it. On September ist the opening rate was 1/6, market rate was 1/613 and I remitted £20,000
16
at 1s/7d. Since the 1st September the market has weakened
and 1/7d is no longer obtainable.
The Treasury Chest Officer sold £65,000 on 17th
August and obtained 1/642 on £35,000 and 1/617 on £30,000.