22
The scheme of levy has not ret been reported
2.0.
future to any very wide movements of the exchange.
With the Government's sterling expenditure commitments
amounting to some £750,000 we are therefore faced
with the fact that the estimated expenditure for 1937
may, on account of the fall of 4d. in the exchange,
be increased to the tune of something over $2,000,000.
As a set-off against this, a temporary levy on
salaries has now been decided upon, with effect from
the 1st January, 1936. What difference this may make
in terms of dollars it is premature to estimate.
surplus assets which, according to the valuation
mentioned in the Treasurer's memorandum with these
estimates, may be put down at $11,100,000 on the
31st December, 1935, were to be drawn on to meet part
of the deficit budgeted for in 1936, and would, at
the 31st December, 1936, have been reduced to rather
below $81 millions. On this valuation there would
unbudgeted
The
still be ample to meet the further deficit caused by
the fall of 4d. in the sterling exchange (less the
relief achieved by the levy on salaries).
In the Secretary of State's telegram of the
25th October on 1017/35 General, a copy of which is
attached, the 0.A.G. was informed that the surplus
assets could, in the present emergency, be reduced to
Tveted the extent necessary to balance the 1936 budget, if
it were necessary to tide over the emergency. We had
in mind that the Colonial Government would realise
substantial profits in nationalising the local silver,
and that in the not distant future, when the new
currency arrangements were well established, there
would be available for revenue out of currency
reserve some substantial sums which would go far to
restore the surplus assets. In spite of the difficulty
which has now shown itself in any early and complete
disposal