3.
This system of payment remained in operation throughout the
year 1931 and, in the words of the then Governor, "certainly
saved the Colony some $1,400,000" (Hansard, 1931, p. 190)
211
At the end of 1931, following on representations made by
sterling salaried officers, the cut was abolished and it transpired
that the apprehensions which had led to its imposition had been
unfounded, for the Colony's surplus balance had risen from
$9,3 61,679,74 at the end of 1930 to $11,347,629.47 at the end
of 1931 an increase of $1,985,949.73 on the year.
Commenting on the effect of this cut the then Governor said: -
"This is a considerable surrender, and I am inclined to think
it has not been sufficiently appreciated.
In point of fact
it has meant that an officer has been drawing less dollars
than he would have drawn if the rates prior to the Salaries
Commission had remained in force and he had drawn his pay at
the current rate of exchange. This is probably not realised
by most people and could scarcely have been contemplated."
(Hansard, 1931, p.190).
Notwithstanding this official recognition of the fact that
the effect of the cut had been more drastic than had been contem-
plated and notwithstanding the fact that the surplus balance of
the Colony had increased by $1,985,949.73, the amounts of which
the officers of the civil service had been deprived were not re-
stored to them.
The imposition of this unnecessary cut in 1931 left the sterl-
ing salaried officers of the civil service with a sense of insecur..
ity as to their salaries and their disquiet and sense of grievance
were increased when it become apparent that the money which had
been saved at their expense was regarded as a surplus a windfall
available for expenditure upon Public Works Extraordinary, includ-
ing the erection of an exceedingly costly and little-used week-
end bungalow in the New Territories for the Governor.
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4. When introducing the Budget on the 12th September, 1935, the Colonial Secretary stated that it was "the policy of the
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