CO129-544-8 Adjustment of exchange account 1-6-1933 - 31-7-1933 — Page 12

-

• 3

-

12

.X.

Crown Agents to meet current expenditure that the actual

loss can be ascertained, because it is at the Treasury rate

for the month that the sterling expenditure incurred in

England will be converted when the Crown Agents account is

incorporated in the main Treasury account.

10.

This latter view is upheld by the entries which

have actually appeared in the accounts January to April 1932

whereby the dollar difference is treated as a book loss and carried in the Adjustment of Exchange A/c. merely for record, pending withdrawal from Joint Colonial Fund when the transaction

is treated as final, the actual loss ascertained and

adjustment made through the Exchange A/c.

11.

My own opinion is that if the view in paragraph

8 is accepted the t ransaction can be considered as a

remittance under normal circumstances and the method of

accounting adopted by the Treasury may be accepted as being

in accordance with the Secretary of State's instructions.

I attach a memorandum by Mr. Dallin putting

forward his views.

12.

I would add that the two points submitted are

points of principle and, I suggest, can be decided without reference to paragraphs 20 to 24 of my Annual Report for 1931 which deal with a tangle caused by accounting methods

which the Treasurer has agreed to have been incorrect.

(Sa). P.L. Collisson.

Audi tor.

.X. not enclosed.