CO129-378 - Governor Sir Lugard - 1911 [6-7] — Page 179

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this procedure the Local Auditor has never taken exception,

though in theory it is identical with the course now pursued,

and involves the writing off of loss by depreciation without

the specific sanction of the Secretery of State. The vote of

$75,000 in the Estimates is as I have said calculated to cover

this loss, and was approved both by the Legislative Council and

by yourself. No further reference therefore appeared necessary,

and none has been made in the past. In the present case, how-

-ever, the circumstances are much stronger, for I have your

direct orders to desist from withdrawal for demonetization, and

the only alternative is to pass the coin again into circulation,

and accept whatever loss occurs from the discount at which the

coins stand. The Treasurer has pointed out that the expenditure

of this Colony is increased by "at least 835 a day" in

interest by allowing the coins to lie idle in the Bank.

The sale of the first two lakhs out of

the 3 lakhs in hand was effected at a loss of under 7 per

centum discount which was actually less than the amount already

written off in the Treasury, and I am, therefore, at a loss to

understand why the Local Auditor should take exception to the

absence of specific authority from you to write off the loss,

when he did not consider that the Treasury custom of writing

down