CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 52

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4. When 6 per cent WAB TIX H☛ the interest for these Funis and chemes, the ordinary rate of interest payable by Colonial Governments on tair loans, or obtainable by Colonial Governments by investment in securities issued by other Colonial

The dif- Governments, was 3, 34 or 4 per cent. ference between such rates and 6 per cent as intended to we & Government contribution towards the

widows' and 'urphans' Lensions.

b. The recent loans of Nigeria and the Gold Coast Gave been issued at 6 per cent at par; and though qne or two Dominion State Goverments have issued loans at 5%, they have had to do so celom par. aritish Covernment has recently issued bonds at par

at St...

The

6. It may I think fairly be said that the interest er: money has gone up at least 2 per cent since the

12y rate for Colonial widows' and Orphans' lension

C

unas anɑ ~che:nes was fixed and that ut resent the Contributions made by Colonial Governants in this

gy (ie. apart from the payment of manage "unt expenser

the cave of the enemes) have been reduced to an

jāmost ne, iigibiɛsmount. I think therefore tent there is A food case tur revising, buszenvion Tables of the so lunas po benzer by substituting 8,. compound interest

tør u.. This would be a more equitable y and one

ore in harmony with the principles on whichthese buncis

chemos are based tuon increasing pensions by a uni-

Kurs bonus proportionate to the amount of the pensions.

it may be said that the present high rates of interest are temporary end villtall in a few years time, and

a rate of 8. compound interest would then be un-

ustifiqule. It seems however likely no a return to

"re-war rates of interest will not take place for many here, it at si auring this century; and, even it tha↑

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08

С

rates of interest.

re-

do fall more rapidly than at present seuns likely there is much to be said for a colonial

Goverment making: a liberal contribution to- wards the pensions of officers' widows payable from these funds or bonemes. If it does, it

will have an even stronger answer than t sent tu thạ claims, which has been encouraged by the rant on a liberal scale of pensions to the widows and children of Kavel anu ilitary officers and men who have lost their lives in

the war, that Colonisì dovemments should keep, not only retireu Colonial officer:, but their widows for life at the public expense, one tort to expect Coloniel Civil servant tomake pro- vision out of his salary or other income for the suport of his dependents after his weath ie unrevsonnude or at any rate bunt, if the

civil servant fails to mate such provision, bue taxpayers of the colony should compensate his

a

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dependents for his improvicance.

"

Hong Kong

H. I should therefore be ;lnu it the/Govern ent

would consider the question and if you would

then let me kne whether uney & ree to Ema

Stangking

i onsion Tables of the dip iŭows'und Orphanı '

beinų recalculated on the besia

I envion

10

of B,, corpound interest being allowed najsil

pensions (whether alrendy granted or in re-

version, being r-cviculated on the bacia of the

nav iension Truls and paic, in the case of those which commenced before(say)the let of an tuary lv 0, at in increased rates on fru Luc ist

January 1932.

I am sendin Lonies

similar deeatch to the

1 para.1 of\tnim der, åten.