91
although when expressed in sterling it purports to remain the same, shifts and changes with the value of the dollar. Though for the sake of illustration only exaggerated figures have been indicated it may at once be seen that far less fluctuation, such as often occurs, would constantly throw out the most careful calculations upon which an officer might base his scheme of personal expenditure.
326.
To meet such an unsatisfactory position there is always the alternative of expressing as well as paying the individual in dollar currency but such an alternative presents the serious hardship that, if as often must be the case, an officer wishes to remit money to Europe for the mainten- ance or the education of his family or the purchase of goods or, again, when he is on leave or on pension in any gold standard country, the cost of his remittances or value of his pension must fluctuate with the value of the dollar.
In order therefore to cope with these diffi- culties the Hongkong Government has been compelled from time to time to sanction adjustments of the basis upon which the salary expressed in sterling is payable, and has arranged them upon an artificial foundation which has at the time when they were imperative seemed to offer the most impartial and fairest treatment.
It is unnecessary to enter into the detail of these changes; but they may be summarised by saying that, when the value of the dollar has advanced, a certain proportion of the salaries of the officers has been paid to them at a consider ably lower sterling rate than the value of the dollar at the date of payment; the object of this being that so far as was reasonably possible the number of dollars which the officer received as an equivalent of his salary should notwith- standing the variation in the sterling value of the dollar remain substantially the same.
In pre-war times a rise of a few pence in the value of the dollar was in fact met by a suitable adjustment on these lines; the immense advance in the price of silver and the great enhancement of the sterling value of the dollar which have taken place in consequence of the unexampled conditions produced by the War have been met by the Hongkong Government in a similar fashion as well as by special allowances in other directions, such as grants towards rent.
In the case of large private institutions an increase of salary and grant of bonus have been sometimes similarly utilized to effect the same purpose.
"
in 1906
silver eterling basis, and the present Straits currency scheme,
linked with sterling, was introduced.
In Malaya the local currency/deserted the pure
Nevertheless,
the