‛「 ༴། །‛「 །
PUBLIC RECORD OFFICE
6
19
Reference :-
C.O. 882
1
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
2
system into Mauritius, where so large a field was open for the substitution of notes for coin, would greatly add to the Government's means of making the proposed advances to planters. Accordingly he gave the Governor directions to make the advances, not directly from the coin in hand, but in notes to be obtained by the Treasurer from Currency Commissioners, to double the amount, upon deposit of the coin with the latter. The notes, Lord Grey decided, should be for 5 and 10 rupees, the ides (gathered from the parties who applied for the measure) being that this would facilitate their being paid for wages to the Indian labourers. But by another provision in the plan (which the appli- cants hardly contemplated) they were to be payable by the Commissioners not necessarily in actual rupees, but in any legal coins at the rates established by the Order in Council which regulated the metallic currency.
Lord Grey made it a condition of the entire ineasure, that the two Banks should resign the right of issue they possessed under their charters. But being led to believe they would not object to do so, and the object of making the advances not admitting of delay, he at once had rupee notes, representing altogether 275,0001., made in London, and des-
patched to the colony, and he also sent out a manager of the currency (Mr. Macaulay) on a considerable salary.
On the arrival of the scheme in the colony, which was early in 1848, the Mauritius Bank not only agreed to withdraw its notes, but altogether closed its business. The Commercial Bank refused to make the required concession, and so the whole scheme stood still. An Ordinance (No. 8 of 1848) which had been passed to establish it, remained inoperative, and there were neither advances to planters nor issues of notes.
This stoppage lasted till March 1849, when Lord Grey personally negotiated a revision of the scheme with Mr. Blyth, the Agent of the Commercial Bank. in England, and directed the Governor to submit the revised plan to the Council and Bank, and with their concurrence to give it effect. (Lord Grey to Governor, 22nd Maroh, 1849.)
3
The occasion for the proposed advances had now gone by; so this part of the original plan wan struck out, and the plan was now confined to the establishment of a system of Government paper currency, combined, however, with the employ- ment of the Agency of the Bank. The coin in the Local Treasury, and also certain investments of the Mauritius Government in Exchequer bills, were
to be transferred to the Currency Commissioners, who were to return an equal amount in notes to the Treasurer. The Government were then to lend 100,0001. of these notes to the Bank at a low rate of interest; the Bank depositing with the Government, as security for the loan, an equal value in Govern- ment stock, British or Indian. At the same time the cash business of Government, whether for receipt of revenue or payment of expenditure, was to cease at the Treasury, and to be conducted by the Bank free of charge upon a liberal floating balance, which was to be free of interest. The rupee notes already sent out were to be used, and they were to pass and be cashed by the Commissioners at the legal rates,
as in the original scheme. The reserve of specie was
to be one-half of the issues, also as before; but the remaining specie was to be invested in stock by the Commissioners, and the interest only paid to the Government, instead of the principal being plased
at the Government's disposal, which was the fœner plan.
The Lords of the Treasury concurred in this revised project of 1849. Whether they bad con- curred in every part of the original one of 1047, appears doubtful.
The new plan was set at work by the Gagno in the course of the same pear. The Coungli
a Paper Currency Orillingmen (No. 9 of 1848), so replace the Ordinance of 1948: an agreement form was conslused, batween the Loggi: Govar and the Banky pie sëfhot quotejplan Gray :, the Qyillariusioners were duly com having voohini tho cơìn
Trmeurer (except a man. formed to him in return an equal
which he thun paid one to, the flossing balanse log of insignant,