CO129-533-13 Salaries- conversion rate of sterling 30-1-1931 - 21-1-1932 — Page 2

1. Gov. Conf.

30/1

உ

Trs. memorial signed by 552 officers.

The Petitioners make out quite a good

case, but I think there can be no question of going

back on the S. of S's previous decision, which

was justified on three grounds: -

(i) Existing salaries were based on

(ii)

recommendations made by the Salaries

Commission at a time when the exchange

was at 2/-. With exchange at 1/-

conditions have completely changed:

is not merely a case of dividing or

multiplying by 2.

On a falling exchange there is a lag

in the rise in dollar prices. Cost-

of-living rises more slowly than the

it

dollar falls. (Added to this is the fact

that world gold-prices have fallen

rapidly throughout the last year, a

movement preumably reflected in their

silver equivalent.)

(iii)

This is undoubtedly a time of financial

difficulty and a special sacrifice on the

part of civil servants is reasonably

called for. Business houses ought to call

for similar sacrifices from their staffs

and it is probable that this has in fact

happened. In any case Noblesse oblige!

It may before long be necessary to reconsider

the position described at (ii) above. The exchange

appears to have stopped falling: if that condition

is maintained the cost-of-living "lag" may disappear.

The