A-2519, NOVEMBER 8, 1924, 4 COMP. GEN. 431

A-2519: Nov 8, 1924

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WHICH ARE PAYABLE IN CHINESE DOLLARS. THE SUGGESTED BASIS FOR SUCH SETTLEMENTS IS AS FOLLOWS: 1. IN THE EVENT THAT THE ACCOUNTS ARE HANDED OVER AT THE END OF THE SECOND MONTH. TO AMERICAN CONSULAR OFFICERS IN CHINA REGARDING THE RATE OF EXCHANGE ON CHINESE SILVER DOLLARS IS IN PART AS FOLLOWS: THE DEPARTMENT WILL ACCORDINGLY. THE RATE SO TELEGRAPHED SHOULD BE USED BY CONSULAR OFFICERS IN THE COLLECTION OF FEES FOR THE MONTH IN WHICH IT IS TELEGRAPHED IN THE SAME MANNER THAT THE DIRECTOR OF THE MINT RATE HAS HERETOFORE BEEN USED FOR THE QUARTER. WHICH AVERAGE RATE WILL BE FURNISHED TO THE CONSULAR OFFICERS BY THE CONSUL GENERAL AT SHANGHAI AT THE SAME TIME THAT HE TRANSMITS THE RATE FOR THE THIRD MONTH OF THE QUARTER.

A-2519, NOVEMBER 8, 1924, 4 COMP. GEN. 431

EXCHANGE RATES - ACCOUNTS OF AMERICAN CONSULAR OFFICERS STATIONED IN CHINA IN DETERMINING THE RATE OF EXCHANGE ON CHINESE SILVER DOLLARS TO BE USED BY AMERICAN CONSULAR OFFICERS STATIONED IN CHINA IN THE SETTLEMENT OF THEIR ACCOUNTS FOR FRACTIONAL QUARTERS, BOTH IN ACCOUNTING FOR FEES COLLECTED AND IN TAKING CREDIT FOR DISBURSEMENTS MADE IN PAYING ACCOUNTS, WHICH ARE PAYABLE IN CHINESE DOLLARS, THE FOLLOWING PROCEDURE AUTHORIZED IN ACCORDANCE WITH THE EXISTING INSTRUCTIONS OF THE STATE DEPARTMENT: WHEN THE ACCOUNTS COVER THE FULL QUARTER OR MORE THAN TWO MONTHS OF A QUARTER THE AVERAGE RATE FOR SUCH QUARTER SHOULD BE USED AS THE ACCOUNTING RATE. WHEN THE ACCOUNTS COVER MORE THAN ONE MONTH BUT NOT MORE THAN TWO MONTHS THE AVERAGE RATE FOR THE TWO MONTHS SHOULD BE USED AS THE ACCOUNTING RATE. WHEN THE ACCOUNTS COVER NOT MORE THAN ONE MONTH THE RATE FOR SUCH MONTH SHOULD BE USED AS THE ACCOUNTING RATE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF STATE, NOVEMBER 8, 1924:

THERE HAS BEEN RECEIVED YOUR LETTER OF OCTOBER 13, 1924, FILE FA 893.5151/263, TRANSMITTING A COPY OF A DESPATCH FROM THE AMERICAN CONSUL GENERAL AT SHANGHAI RELATIVE TO THE PRACTICE TO BE FOLLOWED IN THE SETTLEMENT OF CONSULAR ACCOUNTS IN CHINA FOR FRACTIONAL QUARTERS.

THE SUGGESTED BASIS FOR SUCH SETTLEMENTS IS AS FOLLOWS:

1. IF DURING OR AT THE END OF THE FIRST MONTH, AT THE RATE FOR THAT MONTH.

2. IF DURING THE SECOND MONTH, BUT BEFORE THE END, THE FIRST MONTH'S ACCOUNTS MAY BE SETTLED AT THE ESTABLISHED RATE FOR THE FIRST MONTH AND THE SECOND MONTH'S ACCOUNTS AT THIS MONTH'S RATE.

3. BUT IN THE EVENT THAT THE ACCOUNTS ARE HANDED OVER AT THE END OF THE SECOND MONTH, THEN IT WOULD APPEAR APPROPRIATE TO USE THE AVERAGE RATE OF EXCHANGE FOR THE FIRST AND SECOND MONTH.

THE CIRCULAR OF INSTRUCTIONS, DATED JUNE 7, 1924, TO AMERICAN CONSULAR OFFICERS IN CHINA REGARDING THE RATE OF EXCHANGE ON CHINESE SILVER DOLLARS IS IN PART AS FOLLOWS:

THE DEPARTMENT WILL ACCORDINGLY, AS STATED IN ITS TELEGRAM OF MAY 28, 1924, TO THE AMERICAN CONSUL GENERAL AT SHANGHAI, TELEGRAPH ON THE FIRST OF EACH MONTH TO THE CONSUL GENERAL AT SHANGHAI THE AVERAGE RATE FURNISHED BY THE FEDERAL RESERVE BOARD FOR THE MEXICAN, HONGKONG, AND YUAN DOLLARS. THE RATE SO TELEGRAPHED SHOULD BE USED BY CONSULAR OFFICERS IN THE COLLECTION OF FEES FOR THE MONTH IN WHICH IT IS TELEGRAPHED IN THE SAME MANNER THAT THE DIRECTOR OF THE MINT RATE HAS HERETOFORE BEEN USED FOR THE QUARTER.

IN MAKING QUARTERLY RETURNS OF FEES AND IN DISBURSEMENTS CONSULAR OFFICERS SHOULD FOLLOW THE PROVISIONS OF GENERAL INSTRUCTION 788 OF JUNE 28, 1921, USING, HOWEVER, IN LIEU OF THE AVERAGE DAILY RATES AS PROVIDED THEREIN THE AVERAGE OF THE THREE MONTHS OF THE QUARTER, WHICH AVERAGE RATE WILL BE FURNISHED TO THE CONSULAR OFFICERS BY THE CONSUL GENERAL AT SHANGHAI AT THE SAME TIME THAT HE TRANSMITS THE RATE FOR THE THIRD MONTH OF THE QUARTER. SUCH AVERAGE RATE, IN THE INTERESTS OF EXACT UNIFORMITY, WILL BE COMPUTED BY THE CONSUL GENERAL AT SHANGHAI FROM THE RATES TELEGRAPHED TO HIM BY THE DEPARTMENT.

IN ACCORDANCE WITH THESE INSTRUCTIONS, WHEN THE ACCOUNTS COVER THE FULL QUARTER OR MORE THAN TWO MONTHS OF A QUARTER THE AVERAGE RATE FOR SUCH QUARTER SHOULD BE USED AS AN ACCOUNTING RATE.

WHERE THEY COVER MORE THAN ONE MONTH AND NOT MORE THAN TWO MONTHS THE AVERAGE RATE FOR THE TWO MONTHS SHOULD BE USED.

WHERE THEY COVER NOT MORE THAN ONE MONTH THE RATE FOR SUCH MONTH SHOULD BE USED.

THESE RATES SHOULD BE USED BOTH IN ACCOUNTING FOR FEES COLLECTED AND IN TAKING CREDIT FOR DISBURSEMENTS MADE IN PAYING ACCOUNTS WHICH ARE PAYABLE IN CHINESE DOLLARS.