283
No. 215.
GOVERNOR SIR C. BOYLE to MR. LYTTELTON,
(Paraphrase.)
(Received 5.30 p.m., September 24, 1904.) TELEGRAM.
[Answered by No. 216;]
Referring to your telegram of 23rd September, I propose to await the arrival of your despatch, meanwhile considering the question of income tax.
In this connection I think that an example should be set to the other Government officers, and if you see no objection I propose to forego at once one-fifth of my salary other than entertainment allowance, namely, £800. I have already undertaken personally to pay half of the cost of the Réduit Gardens, namely, Rs. 3,000; these arrangements not to affect any income tax which may be imposed upon the remainder
emoluments. Please reply by telegraph.
of
my
33476
(Paraphrase.)
No. 216.
MR. LYTTELTON to GOVERNOR SIR C. BOYLE. (Sent 12.45 p.m., September 30, 1904.) TELEGRAM.
Referring to your telegram of 24th September, † your public spirit and generosity much appreciated, but precedent might be inconvenient, and bear hardly on official class. Would suggest that you should rather press for a tax which will fall pro rata on incomes both official and unofficial, and which the Governor will both initiate and be the first to pay.
34132
No. 217.
GOVERNOR SIR C. BOYLE to MR. LYTTELTON. (Received 2.40 p.m., October 1, 1904.) TELEGRAM.
[Answered by No. 218.]
If you please ask my predecessor Bruce if he authorised Surveyor-General to assume that issue of loan for Black River Railway would be at a premium of or about Rs. 30,000, and that amount of expenditure on construction might be increased by that amount. There is reason to fear that amount already expended is in excess of sum authorised to be raised on loan, and that at least Rs. 100,000 required to complete road and necessary equipment not provided for. Telegraph reply.
34521
No. 218.
MR. LYTTELTON to GOVERNOR SIR C. BOYLE. (Sent 6.35 p.m., October 7, 1904.) TELEGRAM.
Your telegram of 1st October, Bruce states that he authorised Surveyor- General assume nothing not openly stated in papers dealing with question.
• No. 214.
† No. 215
‡ No. 217.
36626
(Confidential.)
SIR,
No. 219.
Governor Sir C. BOYLE to MR. LYTTELTON.
(Received October 24, 1904.)
[Answered by No. 222.]
Government House, Port Louis, September 20, 1904. In some of the telegraphic despatches which I have had the honour of address- ing to you since my arrival, I have stated that I regard the financial position of the Colony as critical, and the figures which have been submitted to you by the officer lately administering the Government, supplemented by those contained in my message of the 9th current, support that view. I am pressing the financial officers for returns and explanatory details to enable me to address you at greater length on the subject, but in the meantime I beg to confirm my statement as to the excess of expenditure over revenue for the year ended on the 30th of June last, which amounted to R. 1,211,554, and which has been met from the reserve balance, reducing that asset to R. 68,834. I am also of opinion that the estimated deficit for the current financial year, R. 400,000, will be reached, if not exceeded, for it is doubtful whether the estimated revenue will be realised, especially in respect of an item of R. 400,000, which represents a portion of the outstanding accounts due to the Railway Depart- ment by the owners of sugar estates, whilst applications for revotes of unexpended balances of the past year, and for special warrants for unprovided expenditure are of frequent occurrence.
2. After the recent debates in the Council of Government on the Colony's financial position, the people will, in my opinion, be found to be of no mind, even if they are in a condition, to bear additional taxation, and it is questionable whether increased imposts would result in any appreciable addition to revenue. It is neces- sary, therefore, to be prepared for a depleted Treasury chest, at no distant date.
3. I believe that the present condition of the money market in England renders the successful placing of any Colonial loan difficult, and I am fully aware that con- siderable sums have been advanced by the Crown Agents pending a favourable opportunity for the issue of bonds already authorised, and that the indefinite continu- ance of such an arrangement can be regarded as neither desirable nor possible; but I consider that I should be lacking in my duty if I did not point to the probability, or, indeed, as I view it, to the certainty, of a condition arising in the near future wherein the Treasury will, without further assistance, be found to be unable to meet the necessary expenditure of the Colony.
4. There are several incompleted undertakings of the Government, such as extensions, upkeep and renewals of railways, and improvement of the harbour accom modation, all of which entail a considerable drain on the Exchequer, and none of which can be abandoned or even suspended, now that they have been commenced, whilst economising in what may be termed the ordinary expenses of the Colony, however determinedly initiated, and however rigidly enforced, can produce none but small and gradual results in re-establishing an equilibrium for some time to
5. It is with much reluctance that I submit these conclusions, but I am con- strained to do so, and to state, that after as careful an examination of the position as it has been possible for me to make since my arrival, I can see no method of avoiding a serious crisis, other than in the borrowing of a sufficient sum of money in aid of revenue to enable the Government to meet its obligations during the remainder of the current financial year; and that sum of money I estimate at R. 1,000,000.
come.
6. I am aware that this will entail an additional charge on the revenue for the service of the loan, in the shape of interest and sinking fund, of at least R. 50,000, but it must be borne in mind that the whole of the funded and floating debt of the Colony is not relatively a large amount, and I believe that with careful and economical administration the additional charge could, in future years, be provided without increased taxation.
7. I have not hitherto touched upon the prospects of this year's sugar crop, for it is not possible to forecast with any certainty what may be the final result as regards prices; but it is abundantly clear that whilst these, in the Indian and South
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• No. 210.
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