CO129-393 - Governor Sir May - 1912 [11] — Page 293

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There is a slight reduction in the price of some sorts of fish due

no doubt to some variation in the supply. I have also had a care-

-ful comparison made of the prices of groceries sold by local store

-keepers. The price lists of Chinese Grocers show no diminution.

The price lists of the principal European storekeeper, with whom

however few Civil Servants can afford to deal as he keeps high

class articles only which are dearer than stores to be had from

many other stores, show a few reductions in certain kinds of

biscuits, cakes, jams, preserved fruits, preserved fish, spices,

sauces, preserved vegetables. I find on enquiry that the explana-

-tion of these isolated reductions is due to the replenishment of

stocks at more favourable rates of exchange but that an increase

of from 10% to 12% in most articles manufactured in England has

militated against reduction and has caused increases in certain

cases. There is no reduction in the price of sugar, preserved

butter, tinned milk or bread. One wine merchant has granted a

reduction of 5% discount as from 1st. July, 1912. Others including

the Chinese Grocers with whom subordinate officers principally

deal have made no concession. On the other hand the price of

aerated waters has considerably increased while the cost of wear-

-ing apparel has advanced from 10% to 15% owing to increase of wages in the Colony.

11.

The position therefore is this. There is practically one standard of value and another standard for salari- -es of European officers. No step was taken till 1907 to effect a

reconciliation between the two. I submit that the time has come

for a further move in the same direction. In view of the fact that

the average rate of exchange for the year 1902 in which double exchange compensation was granted and the sterling salaries were instituted was 1/84; that the average rate of exchange for the 10 years ending 31st. December, 1911, was 1/10; that the cost of living has much increased since 1902; and that much the greatest

portion of the liabilities of Civil Servants are valued in dollars, I recommend that as from 1st. January, 1913, 80% of

sterling