CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 393

3.

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increased taxation, it would appear that the opposition to my proposals was not very strong, and the Bill was passed by unanimous vote of the Council. Most of the opposition actually voiced was due rather to principle

than to conviction.

8.

In spite of these measures, however, there still remained a deficit of some $2,299,000, and I should have felt more anxiety regarding this deficit had I not been confident that the Retrenchment Commission

would be able to effect some useful economies, for I feel that it is very undesirable to increase taxation, beyond my proposals, at the present time when the Colony is suffering to a considerable extent from depression.

9.

I welcomed therefore the proposal of the Honourable Mr. P. Lauder (who was a member of the Salaries

Commission) suggesting an alteration in the method of the exchange calculation to be adopted for the payment

of sterling salaries in the Colony. I was induced to

show my own sympathy with the proposal, as while it goes

without saying that every proper effort must be made

to reduce the deficit shown in the Estimates for 1931,

the circumstances of the day do not make the proposed sacrifice of salary any real hardship to the sterling

paid Government servants. For I hold the view that

the increase in the cost of living in the Colony has

not kept pace with the rapid drop in the exchange value

of the dollar, and that the spirit of the recommendations

of the Salaries Commission (which have received Your

Lordship's approval) are not violated by the change.

The position could not have been foreseen by the Commission,

but it is clear that until the local cost of living rises

proportionately to the drop in the dollar, Government

sterling