PUBLIC RECORD OFFICE
Reference :-
TC.O. 882
8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
1.
190
NOTES.
I have not taken sums under Rs. 10,000 into account.
2. I have included the Agricultural Company and the Crédit Foncier in No. 2 column. Those companies would, I think, be able to make arrangements to refund the amount due to Government if they were forced to do so, although they might not, perhaps, be able to recover the instalment from their clients.
3. In No. 3 column I have three names whose ability to pay depends entirely on the action of the Commercial Bank or others. As Government has good security for their loan I do not think the Commercial Bank will lend those parties money to pay off Government so probably will refuse them help until this loan is arranged. February 17, 1904.
(Confidential.)
Enclosure 3 in No. 143.
LETTER received from Messrs. Leclézio and Edwards.
DEAR Sir GRAHAM,
February 19, 1904. REFERRING to our conversation in the Executive Council on Friday last I beg to submit what follows for your consideration.
It is estimated that the last crop of sugar will amount to about 205,000 tons, and that the average price thereof will be Rs. 13.40 per 100 kilos: thus giving a total gross revenue of about Rs. 27,470,000.
In average good years the cost price of sugar is about Rs. 13 per 100 kilos. Tak- ing into account the extraordinary output of last year, the cost price of sugar may be reduced to Rs. 12. It would have been less, but for the large sums paid for extra labour and transport.
The working expenses of last crop will thus amount to...
To which must be added:-
1. Interest on the mortgage debt of sugar which is, I believe, Rs.
Rs. 21,600,000
1,280,000
2. The cost of laying tramways, about 750 kilometres, and wire ropes, about 30 kilometres, at Rs. 2,000 per kilometre
1,560,000
16,000,000 at 8 per cent.
3. The sums paid for tramways and wire ropes direct to builders by planters who did not, or could not, apply to Government, as follows:-
Total tramways and wire
laid... ropes
Paid for by Government:-
Tramways
Wire ropes
780k.
457k
20
Paid for direct by planters
477
303
at Rs. 6,000 per kilometre- Rs. 1,818,000, of which it is estimated that about one-third has been bought on credit, and two-thirds for cash, viz.
191
It may be that a few exceptional estates have realised a profit, but the others have either made a loss or simply paid their expenses.
The object of the advances to planters, and bailleurs de fonds, at the end of 1902 was to fill up a deficiency in the working expenses of estates from the 1st December, 1902, to the 31st March, 1903, when it was expected that the banks would come in and provide estates with their ordinary wants until crop time. This they did and most liberally. But were it not for the timely and efficient aid given by the Government those estates that partook of such aid would not probably have been able to overcome their difficulties.
The advances in aid made by the Government to planters and bailleurs de fonds amounted to about Rs. 3,000,000. Ordinance No. 43, of 1902, under which they were made provides that they shall be repaid in one or two instalments on the 30th June, 1904, and the 30th June, 1905, at the option of the borrowers declared at the time of the loan. One estate only elected to pay the whole of the advances on the 30th June, 1904; all the others took the two years' delay.
It was fully believed when the ordinance was passed that the delays given by Government were reasonable and that the instalments of the advances would be repaid regularly when they fell due.
It was expected that the abolition of the sugar bounties would bring about sta- bility, and better prices in the sugar market. Unfortunately, the first result of such abolition has been quite the contrary. Never has the price of sugar fallen so low. However it is generally believed, and rightly so, in my opinion, that the sugar market will improve when the present large stock of bounty-fed beet sugar has been exhausted. So we must look to the future without despondency.
Under the above circumstances I have no hesitation to say that there will be very few borrowers, if any, who will be able to pay the first instalment of the 30th June next.
I suggest that you should take power to postpone the due date of that instal- ment to the 30th June, 1906. It could not be added to that of the 30th June, 1905, and paid at the same date. Of course all interest due on the 30th June, 1904, will have to be paid at that date. An option might be given to borrowers to pay part of the latter instalment at its due date provided they give notice of their intention to do so a reasonable time before such date.
The measure which I advocate requires a prompt solution. Bank credits will have to be renewed on the 1st April next, and unless planters and bailleurs de fonds can then satisfy the banks either that they can meet the payment of the first instal- ment or that they have been given a further delay for the payment of such instalment, the bank will not, I have reason to believe, renew their credit.
A further delay of one year will not prejudice the claims of Government, while
it will be a great relief to many, and, I should say, the Colony in General.
Believe, me, &c.,
H LECLÉZIO.
W. A. EDWARDS.
Enclosure 4 in No. 143.
BUREAU SYNDICAL DES COURTIERS.
1,212,000
Port Louis, Ile Maurice.
Average net price, less discount, for all qualities during the year-
1896
Rs. 9.30 about
1897
8.20
400,000
1898
8.00
1899
7.16
1900
1901
8.50 J 7.25
>>
1902
7.20
1903 pas réalisée, présumée
6.50
ALPH. BOULÉ,
Syndic.
The Rs. 6,000 include cost price, insurance, and freight, landing, carriage of rails, locomotives, wagons, &c.
4. The sums paid for steam lorries, traction engines, and trucks, say about 40 at Rs. 10,000...
Rs. 29,052,000
without mentioning hundreds of thousands rupees spent in purchasing horses and mules and oxen, the tramways and wire ropes that were laid having been far from sufficient to replace the beasts of burden that died from surra, and without mention- ing also the sinking fund of the capital debt of estates.
Therefore the sugar industry of the Colony has not made a sufficient revenue by the last crop to meet both its ordinary and extraordinary expenditure.