CO129-345 - Public Offices & Foreign Office - 1907 — Page 805

3. Let

us suppose

that the

valuat" is made on the basis of the exchange at the date of valuation that I that rate is 2/-. At is suppose that the period of the future contributions of existing members is years. During the

i

зо

first part of that soyrs, as you observe, say for

15 что

the receipts will

be in excess of the outgoings

and during the latters

hart, say for NYA,

the

out goings will be in excess of the receipts. If then

the rate happened

during the first period

to be higher

on the

Average than 24 and during the second perios Lappened to be on the I arge lower than 21,

wh. is quite possible

a

contingency, the Fund

793

would suffer a loss during both periods. bice versa, if the rate was low in the first period Thigh

in the Second

Friod, the Fund cod. suffer again benefit during both periods. Pinit as the former contingency Tikely to happen

latter

7.

is just

Just as

a

ao

the

likely

to happen perhaps more likely to happen thom at the rate sho

fot

remain approximately,

constant

a considerable

reserve and have to be

made to provide

against the former

contingency.

It as to hara II A

hast

smice many, if not the majoritin

of the present sterling Contributors, formerly contributed in dollar