CO129-334 - Governor Nathan - 1906 [5-7] — Page 538

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constantly realizing with greater resentment the unfavoura-

ble conditions under which they are now serving. The fact

that the Colony raises its revenue and frames its estimate

of expenditure in dollars and so apparently saves at the

expense of its servants when the dollar goes above the rate

of exchange at which the annual estimates are made adds to

the dissatisfaction arising from the present condition of

affairs.

17274

5.

The suggestion embodied in my telegram of

the 14th. May was based on a conviction that some action

in the matter was necessary. The practical effect of the

suggestion, if it had been carried out, was to make half the

sterling salaries and half exchange compensation payable

at a fixed rate rather lower than that current at the date

of the Secretary of State's despatch of the 20th. June 244 24

02

1902-

1/8 instead of 1/83-- and half at the average rate

of the preceding month. In other words, sterling salaries

and exchange compensation become half a dollar and half a

sterling emolument. By the permanent adoption of this

arrangement when the dollar was above 1/8 the Government's

gain and officers' loss and when it was below that amount

the officers' gain and Government's loss would be one-half

what it is with existing arrangements. Taking a concrete

case