CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 87

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by the war as any place in the world and it appears that the Colony has been up to the present less affected

But it by the universal depression than most places. would none the less be idle to suppose that we are or can be permanently untouched by that depression. this world depression must be added the more direct effect on the Colony of the very disheartening

continuation of the Civil War in China.

A new re-

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arrangement of party leaders seems now to be emerging, but a sound basis for lasting peace has yet to be

found.

Locally the framing of the Budget for 1931 has been seriously influenced by three considerations. In the first place the unprecedented fall in the exchange rate of the dollar has caused a situation which by itself would necessitate a very drastic increase in the provision to be made for sterling commitments, including of course the salaries of all officers paid on a sterling basis. In the Budget for 1930 the exchange rate of 1/10d. was adopted. In the Budget which is now before

the Council it will be observed that the rate has been put at 1/4d, after much consideration of the uncertain factors which will control the prevailing rate for 1931. Even where a sterling figure remains unaltered the increase in dollars of 37% which a drop of 6d. in

exchange

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