4.
390
have already occurred this year, the uncertainty as to the future of silver, and the various influences to which the value of the dollar in terms of sterling is subject the Government has thought it safest to follow the policy of recent years and to fix the rate at 1s. 4d. As is shown in the "Abstract of differences" with which Honourable Members have been supplied, a decrease in expenditure of $436,196 on Personal Emoluments alone is directly due to this higher rate of exchange. If the dollar continues above 1s. 4d. there will, of course, be a further marked saving in sterling commitments especially in respect of the salaries of European Officers.
I now turn to the revenue for 1935. The causes of the falling off in revenue during the current year are referred to in the Treasurer's memorandum. If the present depression continues there is no prospect of the revenue figure improving during 1935. The estimated revenue for next year is $30,585,650. That figure includes, however, a windfall of nearly $1,000,000. As explained in foot- note (16) on page 10 of the Estimates before you the Government has for twelve years paid to Military Contri- bution Suspense Account twenty per cent of its profits on certain exchange transactions. These payments have
accumulated until they amount to $975,410. The War Office has now accepted the view of this Government that such profits are not liable to Military Contribution and this sum will in due course be credited to the revenue
for next year.
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