PUBLIC RECORD OFFICE
wh
Reference :--
ELEC.O. 882
9
PUBLIC RECORD OFFICE, LONDON
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No. 33.
THE GOVERNOR to THE SECRETARY OF STATE.
(Paraphrase.)
(Received 11.37 a.m., 7 March, 1908.)
TELEGRAM.
With reference to your cypher telegram of the 4th instant,* I am collecting as reliable information as to damage to crops as is possible, and I will telegraph it when complete. The first estimates give a 15 per cent. reduction which, without regular rain during next month, may be largely increased. Directly the storm ceased the renewal of application for loan was publicly discussed and Chamber of Agriculture on 12th March will submit a resolution urging the sanction of a loan of £600,000 for the purpose of general assistance of estates.
I will send a reply to your other telegram of 4th Marcht as soon as possible. Meanwhile six deaths have been reported; damage to dwellings is not so general as anticipated, and I hope that relief of distress and repairs will be effected with no necessity for drawing on Reserve investments.-ELGIN.
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No. 34.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 1.10 p.m., 9 March, 1908.)
TELEGRAM.
[Answered by No. 36.]
Your telegram of 4 March. Damage to tenements mostly amongst poorest class unable to pay for repair of them, but they are not so numerous as to necessitate sale of securities at present.
The proportion of drafts on Bombay, including Bill for Rs. 300,000 drawn to-day, which is due to advance to Commercial Bank, is about £22,220. Financial officers estimate present overdraft on ordinary account current with Crown Agents at about £18,700. Crown Agents have been authorised to draw for £10,000, but experience difficulty in so doing. There are Rs. 500,000 in Treasury available for current expenses, but estimate of deficit on the whole financial year to 3 June is Rs. 600,000, of which Rs. 400,000 was the shortage on 29 February.
Although I hope to be able to provide for the temporary relief rendered neces- Bary by actual injurious effects of storm on property apart from any growing crops, there is much distress due to financial condition of community, which has led to reduction in wages and numbers being out of employment, and there is reason to fear that it will be necessary to provide for more comprehensive measures than those within the means of public revenue or private resources.-BOYLE.
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No. 35.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 9.20 p.m., 18 March, 1908.)
TELEGRAM.
[Answered by No. 42.]
Chamber Agriculture passed resolution to following effect at public meeting attended largely by representative body of planters :—
Chamber refer Governor to resolutions voted 7th May last, whereby Chamber, mill owners, planters, and others interested in sugar industry requested him to approach Secretary of State with view to obtaining sanction to loan £600,000 for improving sugar factories and adopting modern
No. 81.
* No. 80.
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methods of manufacture. Chamber also refer to speeches of members on the occasion.
Chamber considering that since above resolutions were voted Colony has been visited by series of calamities culminating in cyclone of great violence and of uncommon duration, most seriously damag- ing next crop and all plantations; that last crop, which produced only 160,000 tons of sugar, has not given sufficient proceeds to pay work- ing expenses of estates and interest on mortgages; that working ex- penses can fairly be estimated at 24,000,000 rupees, and interest on mortgage debt at 1,200,000 rupees, while revenue will not exceed 22,000,000 rupees; that this reduction came after large but not re- munerative crop, which had to bear payment of second instalment of advance in aid 1903; that coming crop cannot now be expected to be remunerative and will probably leave deficit:
Considering, further, that resources of Colony have been concen- trated so that our local bank was compelled to apply for help to Government in order to continue to assist agriculture and trade; that on 5th November last Antelme, seconded by Ritter, moved (here follows resolution of that date), that motion as modified was voted unani- mously by unofficial members; that Secretary of State declined to give his sanction to said loan, and in despatch of 23rd January* stated there were certain conditions to be satisfied before proposal could be entertained (here follow six conditions); that Secretary of State has admitted that first condition may be regarded as being fulfilled; that Chamber believe that Secretary of State is now in possession of sufficient information to convince him that a general collapse of the industry is inevitable in default of Government assistance; that with respect to third condition, Chamber repeat what they said on 13th December, 1897, when they averred that if waste in course of manufacture was materially diminished industry might be carried on at a profit, and that profitable increase in production might be obtained, among other means, by extending irrigation works, by increasing transport accommodation, and especially by improving machinery, and on 7th May, 1907, when Chamber showed by figures that if since 1898 planters generally had been in position to improve their machinery and bring it up to date, they would have overcome by themselves the difficulties which beset them, and would have realised £1,000,000 rupees more by better extraction of sugar. That there is reasonable ground for believing that industry can be restored to a normally sound condition and thus be able to cope with adverse and transitory circumstances if Government assistance is afforded; that present financial difficulties are due chiefly to unsatisfactory condi tion of factories coupled with bad seasons, low prices of sugar, and high prices of foodstuffs and all commodities; that although in December last drought was succeeded by copious rains and the price rose slightly, yet rains could not affect last crop, then nearly gathered, and their good effect on next crop has been destroyed by last hurricane, and that rise of few cents in price could affect only smaller portion of crop then unsold; that Chamber agree with Bruce and Executive Council that in 1898 Colony was at last extremity, short of actual shipwreck, and that loan of £200,000 was absolutely necessary; it, however, happened that Commercial Bank, which Government had assisted to large amount, was thus put in position to finance agricul- ture and commerce, and applications for Government funds were consequently made for limited amount; that, in fact, assistance given by Government to agriculture and commerce at that time either directly or through Commercial Bank amounted to about 3,600,000 rupees; that doubtless some individual planters have preserved their business in sound condition owing to special and favourable circum- stances, but these form very small minority, and it may be gathered from returns of last crop and anticipated results of next crop that That Chamber agriculture is not now in prosperous condition.
• No. 23.
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