CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 200

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exchange then rose to 5/- the same £800 would be represented in the Colony's accounts at the close of the year at $3,200 or a decrease of $4,800. If exchange subsequently dropped to 2/- this same sum would be

represented by $8,000. If this difference were to be

regarded as revenue then 20% of $4,800 would have to be

paid as Military Contribution, and thus there would be

two such payments on the same original revenue. The total

amount payable in respect of the original $10,000 would

be $2,960 and there would be a possibility of further payments becoming due in the event of a further fall in

exchange in the following year.

A

6. I would ask therefore that this system of

accounting be approved, or else it is considered necessary

for audit purposes that increases in the dollar value

of sterling stock should be shown as Revenue, although

they are no more revenue than the increase in the capital

value of an investment is income, it should be laid down

that they are exempt from payment of Military Contribution.

Sir..

I have the honour to be,

Your most obedient humble servant,

7.E. Stath

Governor, &c.