1

4

on the high and strict principles required in the case of pri-

vate trustees.

That the revenue will suffer some very slight

loss, spread over a number of years in the future, is irrelevant,

especially as the Government has had ample opportunity, by con-

version into sterling, of guarding it against any loss. There

seems little doubt that if the fund had been a private trust,

an appropriate part of the accumulations would have been conver-

ted by the trustees into sterling at a favourable rate, seeing

that the prospective liabilities were partly in sterling. The

current rate at the time when the last of the dollar contribu-

tors now concerned ceased to contribute on a dollar basis was,

as it happens, 4/10.

21

7. Besides being embodied in the financial resolution of

the 7th August 1902, the 3/- rate also received indirect legis-

lative recognition in section 29 of the 1908 Ordinance, which

treated as equivalent a dollar pension of $1500 and a sterling

pension of £225. Under this section the contributing officer

was compellable to make contributions providing a pension under

the Ordinance up to the limits of these sums. Evidently the

legislature at this time regarded a pension of $1500, or £225.

per annum as a sufficient provision to be aimed at for an

officer's widow. It is clear that the sufficiency of the dollar

pension depended upon the maintenance of the 3/- rate of exchange.

At an exchange rate of 1/3 this pension becomes £93.15.0. per

annum.

8. Upon our retirement we were, in accordance with the

Ordinance, given the option of having our future contributions

calculated either on our pensions or on our former pay. Pro-

bably most of us elected to continue to contribute on pay, but

we might have elected to contribute on pension.

Contribution

on pension, involving a decrement, would have meant the reduction

of our registered widows' pensions. If we had so elected, we

should have done so in the belief that the dollar pensions

would be paid at 3/-, and we should now be finding that we had

altered our position for the worse in partial reliance on a

representation which the Government is now secking to withdraw.

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