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violent, the recent rise in the dollar has been to cuddon, that there is no security against an equally sudden fall, and tradesmen would be bound, in order to protect themselves against a fall, to fix their prices for new goods on the low dollar basis.
The uncertainty of commercial dealings caused by the rapid fluctuations of the dollar, can best be tested by a simple illustration.
Case 1. If a tradesman orders £100 worth of goods when the exchange is at 3/6, if he sends a draft with the order he will pay $800.
If he pays by Bill of Exchange drawn on him at sight and the dollar has meanwhile fallen to 5/-, he will pay $1000.
Case B. If for the same goods the rate is 2/8 at the date of payment he will pay $600. If he proposes to make 20% profit he will ultimately receive $1000. But if before he sells the goods the rate has fallen to 2/-, if he maintains his prices, the $1000 will only represent £100, and his intended profit will be lost.
Experience shows that although the dollar has risen, in 6 months, the utmost concession that a few tradesmen have made is a reduction of 5% on their prices, more than ...
The Government itself acts on this principle in the matter of advances to Civil Servants made by the Secretary of State. Repayment is made by monthly instalments calculated at the rate the advance is made current at the time, irrespective of any subsequent rise in exchange.
Your Excellency has said that "house rent is the chief if not the only expense of living which is not lower in this Colony than in most others, where customs duties are levied and where wages are higher" and the Secretary of State has said that "the rate of pay of Government Servants in Hongkong compares favourably with that obtaining in most other parts of the Empire".
With great respect we submit that it is not ...
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505
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violent, the recent rise in the dollar has been to cuddon, that
there is no security against an equally sudden full, and
tradesmen would be bound, in order to protect thencelves aginct
n fell, to fix their prices for new roode on the low doller baria
The uncertainty of commercial deulings caured by the rapid
fluctuations of the dollar, can best be terted by a cimple
illustration.
Caso 1. If a trademan orders £100 worth of goods when the
exchange is at 3/6, if he cendo a draft -ith the order
he will pay $800.
If he pays by 111 of Exchange drum on him at sight
and the dollar has neanwhile fallen to 5/-, he rill
pay (1000.
Unte B. If for the same goods the rate 10 2/8 at the date of
payment he will pay (600. If he propones to make 200
profit he will ultimately receive $1000. ut if before he sells the goods the rate has fallen to 2/-, if he
maintaing his prices, the 1000 vill only represent
£100, and his intended profit will be loct.
Experience shows that although the dollar hes risen, ed in 1
months, the utmost conceccion that a fer trudechon have made ic
a reduction of 5% on their prices,
more than
The Government itself nets on this principle in the matter of advanced to Civil Cerventr made by the Secretary of State. Repayment is made by monthly inetulmentr crlcuinted at the rate
the advance is made current at the time, irrespective of any subcecuent rise in
exchange.
Your Excellency hac caid that "house rent is the chief if not the only expense of living which is not lover in this Colony than in most others, where curtons duties are levied and where wages are higher" and the Secretary of State hec
the saide of pay of loverment Cervente in longkong compares favourably with that obtaining in most other partt of
the Empire"
naded that
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with great respect me cubmit that it ir not
!
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