CO129-378 - Governor Sir Lugard - 1911 [6-7] — Page 180

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down by 7 per centum required specific sanction.

5.

I submit that it is beyond the Local

Auditor's function to record his opinion as to whether or not

the Governor has acted in accordance with a policy and laid

down by the Secretary of State. The meaning which he has

attached to Financial Regulation 311 is to me a novel one. I

have understood that Regulation to refer to direct losses from

theft or similar causes and not to indirect losses arising from

causes such as this. I see no difference in principle between

loss due to discount on coins (foreseen and provided for), and

loss due to fall in exchange, but it has never been suggested

by the Local Auditor that the specific sanction of the

Secretary of State was necessary in the latter case. I may

observe with regard to the title of the vote "Redemption of

Subsidiary Coins" that I have repeatedly pointed out that the

title is erroneous, and I believe that the Local Auditor has

seen those minutes. (See enclosed Hanserd Report for December

29th., 1910.)

ہماکو

I have the honour to be,

Sir,

Your most obedient,

humble servant,

nclosure

Governor, &c. .

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