CO129-511-6 Salaries and conditions of service of government staff 27-4-1928 - 2-11-1928 — Page 37

2.

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that there had been during the previous year and a half a

general advance in the cost of such items as rent, servants,

food, clothing, laundry and travelling.

Since 1922 the dollar has fallen further and

its value has now been for some time in the neighbourhood of s.d.

2/0, the resultant effect on the cost of living being such as

my predecessor anticipated.

This progressive increase in the cost of

living has given rise to much anxiety in the Colony. The

subject was recently raised at the Sanitary Board and has

received the anxious consideration of an unofficial committee

of business men, which included Unofficial Members of the Legislative Council. A large increase since 1922 is universally admitted, though all attempts to put a definite

figure on the increase have failed, since accurate statistics have not been compiled which would enable the matter to be treated scientifically; and in any case the circumstances of individuals vary so greatly, as for example in the matter of

sterling remittances for education of children, that it would be very difficult to obtain an index figure which would be at all representative. Estimates varying between an increase of 10% to 30% or even 40% on the cost of living in 1920 have

been put forward and are probably true for different types

of cases.

3.

The increase would appear to be due to three

main causes.

(a) Firstly, the higher cost of local products is due in

large measure to the disturbed conditions in China and the exactions levied by troops and by bandits on

produce coming down the waterways to Hong Kong. This

increased cost of food and necessaries affects the

cost of living directly as well as indirectly,

because