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hitherto dealt with by that office should in future be dealt with by the Treasury. This will mean an increase of work for the Treasurer, as will also the recommendation nade in paragraph two above. To cope with this effectively it will probably eventually be necessary to appoint an Assistant Treasurer, who would relieve the Treasurer of much of the routine work, and who, being' au courant' with the Treasury policy, could act for the Treasurer at a moment's notice, should the necessity arise.
4. The Commissioners urge most strongly that surplus balances be remitted regularly and immediately to England as is required by the Secretary of State. Not to do so as has happened in the past, is to gamble in exchange, which is the reason always given for Government not fixing exchange in respect of its commitments
The Commissioners do not agree with the opinion that to fix exchange is to gamble. Consistently to settle, or consistently to refrain from settling, would over a period of years allow the law of averages to come into operation, and would show the same result. On the other hand to fix exchange enables the Government, whose revenue is in dollars, to know in advance how many dollars it will require in respect of all its commitments, both silver and sterling If sterling be available in London for the Government's gold commitments this point is of course met, but if it be not available and contracts for supplies be entered intr, to be paid later out of dollar revenues not yet in the Treasury, then exchange should be settled when the transaction is authorised. Care should be taken to obtain competitive
rates when settling.
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