CO129-555-2 Estimates 1936 30-8-1935 - 29-1-1937 — Page 9

remittances were often sufficient to cover

A

possible liabilities over a period of several

months; it would therefore have been in

accordance with the system if the Colonial

Government had remitted the sum of £200,000 at

once instead of making a contract for remitting

it in several instalments, since it was clear

that the sum total of £200,000 would be re-

quired by the Crown Agents over the following

few months. If that had been done, the charge

of speculation with public funds could

scarcely have been put forward. In conclusion,

the Governor asked to be allowed to use dis-

cretion in such matters, subject to any

limitations and conditions which the Secretary

of State thought necessary.

On that occasion you advised that

the buying of exchange forward to meet a known

liability on a known date was the very reverse

of speculation, but in the particular trans-

action in question an element of speculation

was present, since it was not a case of

arranging for a definite liability having to

be discharged on a fixed date. The Governor

was informed accordingly, but it was explained

to him that the Secretary of State approved

of his exercising his judgment in deciding on

any individual occasion what was the best

course to take in the public interest, since

in the Secretary of State's view the remittance

of money by the Colonial Government exactly

when money was required, without the freedom

to use discretion as to the best time for

remittances, would not be an advantageous

procedure