CO129-524-1 Reports of Salaries Commission 31-12-1929 - 27-10-1930 — Page 110

2.

1/2

receive not less than the exact Dollar equivalent of their

salary. When the sterling value of the Dollar rises above s.d. 2/- there will not in my opinion be a corresponding

decrease in the cost of living. The advantage in such a

case is only secured when money is remitted home. Further

it must be borne in mind that a Britisher requires a

certain number of Dollars on which to live in this Colony.

For example, the class of man recruited from home on a

salary of £300 per annum requires in my opinion $3,000 on

which to live. If owing to exchange the Dollar equivalent

of his salary is reduced to $2,500 it would inflict a real

hardship.

(3)

I have heard it argued that there should

be some stop at which the Sterling salaries are paid and I

admit that at the time the Commission's Report was issued

the Commissioners did not contemplate that the sterling

s.d. demand rate of exchange was likely to drop to 1/5.9/16 as

it is at date. In making recommendations there must

inevitably be certain conditions which it is not possible

to foresee or allow for. For example, if there were a

further considerable collapse in the price of Silver with

a corresponding drop in the sterling exchange the Government

would possibly have to reconsider the whole position of the

Colony's finances and of their Officers' salaries and under

such conditions the method outlined under paragraph 12

might have to be reconsidered. Under normal conditions I

have no doubt that its fairness cannot be called into

dispute.

(4) What constitutes a normal condition is for

the Government to decide. It seems to me largely to

depend upon the Colony's resources. The fact remains that

under paragraph 12 the Commission have recommended that

Officers who receive Sterling salaries should receive the

same at the average demand rate for the month provided

such

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