Two Conundrums.

Star (Christchurch), Volume LXVI, Issue 20483, 8 December 1934, Page 12

Two Conundrums.

Dear Sir,—ln a newspaper of November 20, I find the following statement :—r" The and fittings of the Bank of England are carried in the balancesheet as assets to the value of one pound sterling.” Would you kindly explain to me w h>‘? I do not mean the mechanism by' which it is brought about. i.e., writing down annually for depreciation, but the motive for showing in their balance-sheet a building and site (one of the most costly buildings and sites in the Empire) with furniture and fittings at such an absurd figure as one pound sterling, when their actual value is undoubtedly many thousands of pounds. Again, can you tell me who pays the salary of £SOOO per y'ear to Mr L. Lefeaux. governor of the Reserve Bank, and why is Mr Lefeaux’s salarv taxation free> —I am, etc., S. W. LAMB TON.

If the asset is shown in the balance-sheet at £1 the figure has the force of a bookkeeping symbol, or reminder that there is such an asset, whatever its value as a reserve may be. The salary of the Governor of the Reserve Bank, or any bank, is paid from the earnings, like the wages of the. charwoman. If the salary is tax free, ■which is highly unlifcelv, the “ Star" cannot suggest a reason for it.—Ed., “Star."