PUBLIC RECORD OFFICE
Reference :-
TLC.O. 882
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PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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24 June 1902)
MAURITIUS ROYAL COMMISstos, 1909:
Sir CAVENDISH BOYLE, K.CMU
have got no alternative and you mist suggest somebody Let me qualify that HIT IN a means to an end Answer which I gave, that 1 must go to the elective Irald go to an unofficial tion of the Chamber wominee and thereby ally reduce the standing majority against me, but that would not have the same effect.
1653. You have told us that you think the military contribution should be suspended, and, if possible, that You recognise that the it should be done away with Secretary of State has already laid down that if there was any question in regard to the military contribution which led to its suspension or great reduction, that the Imperial Government would point out that that meant
--The withdrawal of the troops?
1654. No, not the withdrawal of the trompa, but larger responsibility in reference to the financial Arrangements here P-1 understand that.
1655. That has to do with the Constitution directly You realise that?--Yea
1656. You yourself. I conclude from that, would prefer to see the military contribution suspended or done away with and that the Colony should return to that system of control which obtains in other Colonies where there are no elective members --I think the price would be worth it
1657 I only wish to ask you one other thing and that is as to your view of the power of the Colony to recover from a position of finance which has left you in the deplorable circumstances which have obtained for
me little time-It is a very hard question to ask me, but I will say this, that in the year 1907 I gave expres. Kon, not having been asked any question as to my views, on that subject, and I am sorry to my those I then stood, as I have views failed to be realised.
told you, with a surplus of over Rs. 1,300,000. 1 had every reason to believe that the estimated revenue was not at all too widely figured; 1 had every reason to believe that the expenditure would not exceed our estimates, that it was a legitimate expenditure and within legitimate bounds with what result? A drought, absolutely unforeseen, took place immediately That continued after the opening of the Session. practically during the remainder of 1907. A general ulonetary stringency took place all over the world, and it was reflected in this small place. Money became extremely tight, to use a colloquial expression, both here and elsewhere; the planter Colunist had been led to suppose that he had only to apply for a loan and he would get it; he had done so before with success and he thought if he represented his needs to the powers He did that be in London, those needs would be met.
The drought continued till, I not succeed in that. think, it was November. The panic which was then beginning to grow became accentuated. The Colonist planter found that he could get no money; the agencies to whom he had been accustomed to look for advances on his crop refused those advances for the whole entre-coupe, or refused them to the extent that they had given before; naturally the weak men began to fail; one large failure took place before the end of the year (this is but a small community as regards its money), at any rate that shook the financial position in the Colony; the new year dawned with very black prospects as regards finance, and then we were met with a very severe, if not disastrous, storm. In the meantime the bank had found itself in the trouble about which I told you, and the result of it was that everything in the shape of public revenue began to
[Continued
diminish and dwindle, and, instead of getting the revenue, which I spoke of, of nearly Rs. 10,000,000), we I umy udl did not realise anything like that amount. that the effects of that year have been prolonged into this year, and therefore to attempt to prophesy what may happen in the future is almost impossible, but if you ask me what are the possibilities of the Colony, I say the possibilities are very much brighter than they look at present, and I will say that in normal circum. stances, in the absence of climatic disturbance. in the absence of any increase in the epizootic diseases from which we have suffered, I think that the revenue will more than balance the expenditure, and I think there will be a financial recovery which will tend to solidify the position and to make it more secure than it was previously to 1907.
1658. Would you agree with the opinion of the Receiver-General, that by reasonable economies in the public service, supposing no further loan is made and under ordinary circumstances such as obtain at present. that the revenue will cover the expenditure? Yes, 1 think so, for the next two or three years certainly
1659. Now is there anything which you would like to state beyond what I have asked you ?-1 do not
think so.
(Sir Edward O'Malley.) I should very much like to ask you several questions upon the question of the Constitution, but I do not think that I can do justice to the answers which you have given us until I have had an opportunity of seeing a note of them; there fore, with your permission, I will postpone my exami nation on that point until hereafter
1660. (Mr. Woodcock.) Perhaps I may be permittel to ask one question. I want to ask you whether you yourself have had any glaring instance brought to your notice of Civil Servants exercising improper influence on their representatives to get them jobs and all that sort of thing-No, I cannot say that I have-nut brought absolutely and specifically to my notice. That Civil Servants do write in the papers and do approach their Members, as they call it, is undoubtedly the fact. To 1661. That will not be peculiar to Mauritius. take it a step further, have you noticed in your dealings with the elective Members any desire on their part to bring influence to bear on you or on heads of depart. ments to get jobs, which you might trace to that sort of influence -I will not say to get jobs.
1062. I did not use the word in a bad sense-to get appointmente?—I am constantly approached by elec. tive Members of the Council of Government to, I will not say do jobs, but constantly in favour of A., B. and C. As you say, that is not confined solely to Mauritius: it is common everywhere else. It is done here, there is no doubt about it, and largely.
1663. Have you any reason to think-I am going to use the word "job" in the other sense now-that the people recommended to you in that way would, very commonly, be improper people to put into the offices that are asked for them I think the result of the system has been that we get a good many hard bar- gains. I will put it in that way. It cannot be helped. That is undoubtedly so; there is doubt about it. 1 have got the papers here, if you would like them, Sir Edward, with regard to the Constitution.
(Bir Edward O'Malley.) No, it was more the answers which you gave. I have not got the Constitution; it is rather puzzling me, but it is more your answers I should like to look at.
The witness withdrew. Adjourned until to-morrow at 10.90.
MINITES OF EVIDENCE.
23
SEVENTH SITTING.
Thursday, 1st July 1909.
At Government House, Port Louis.
(2.)
Mr. VICTOR Huteau called in and examined through an Interpreter.
4021. (Chairman.) You are the Manager of the Commercial Bank, I think P-I am the President.
4022. You are the President and the Managing Director of the Commercial Bank of Mauritius -Yee, the President, not the Managing Director.
4023. I have here your answers to the questions which we put to you They are made after full Consideration, and you adhere to them P-I confirm what I have said in writing.
4024. You sacribe the present financial difficulties of the Colony to a reduction in the revenue and an increase in the expenditure ?-Yes, I attribute the decrease in the revenue to plague; to surra; to the bad erop and the low prices obtained for sugar, the consequence of which brought on a decrease in the revenue of the Colony.
4025. And then, as to the increase in the expendi. ture, what do you say -Fur a long time I have personally been convinced that the expenditure of the Government was very high.
4026. Too high P-The expenditure is very high, and altogether not in relation to the revenue of the Colony.
4027. Do you think that it is higher than is means of necessary There ought to be some reducing the expenditure of the Government.
4028. Have you thought of it yourself, as to how it could be reduced -I am not sufficiently versed in the uffairs of the Government to adopt or present a plan, but I believe there are too many servants in the administration. I think there should be an efficient staff, well paid, but that work should be exacted from them.
4029. Fewer men; better pay and harder work ?— Yes, that is so.
4030. How long have you been in Mauritius ?--I was born in Mauritius, and have never left it.
H
4031. We naked you, if it were necessary for the Colony to borrow money, on which object it should first be spent, and you say, First for the railway; secondly, for malaria," and that you are not in favour of lending money for planting purposes That is my
answer.
4032. Are the banks sufficient to supply all the ordinary needs the legitimate needs of planters P-I believe so, in a most emphatic manner, and if necessary I am ready to cite facts in support of my statement.
4033. So far as you are aware, there has never been any time when the banks have refused to give legiti- mate assistance Every time there has been legitimate business offered---1 am speaking, of course, for my bank, the Mauritius Commercial Bank--with a good security, that business has never been declined. This year there has been no single instance of an offer made for assistance that has been declined.
4084. But now the forecast is very good P-Yes, it is very good.
4035. But in cases of extreme depression the bank naturally is much more careful, I imagine ?—Yes, certainly; when money is tight we are more particular with regard to the business that is offered.
* She Appendix B, section 25.
4036. I am sure that you are aware that several witnesses have told us that there is a great want of money in Mauritius. Is that the case-I am not at all of that opinion. There is not a scarcity of funda actually on the market, and. I maintain, that if the money is scarce it is for those who do not offer sufficient guarantees.
I am speaking for the present. There is no doubt we have a magnificent crop before us. The crop should realise 220,000 tons, and if the prices of sugar average Rs. 7 per 50 kilon
4087. A very moderate price, I understand ?-There" will be still more money in the Colony; more money than really is required, and I maintain that money is not wanting just now.
4038. When the Colony was depressed, did the money go out of Mauritius, or was it merely on socount of depression that it was difficult to raise money without giving security, which people had not to give P-There were several reasons. First of all the crop was a very bad one. The crop averaged 165,000 tona; sugars were very badly sold, at an average of Rs. 7 per 30 kilos : consequently sugars then being of dimoult realisation. money was raised on them against the security of dock warranta. The cash balance at the bank was repre- sented by these dock warrants. There was consequently some tightness. Then two failures of two of the prin cipal brokers took place. This provoked a ran on the bank. That, in my opinion, is the reason. It is very difficult to avoid a rush in a small place like this. In other centres, when banks require assistance, it is easy for them to negotiate their billa, whereas here it was impossible to negotiate the dock warrants in hand. The run was a great cause of what took place. De positors came to withdraw their funds by Rs. 10,000, Ba. 15,000, and Rs. 25,000 at a time. That was proved when order was restored. People never took the trouble to hide these sort of things; some were seen leaving with bundles of notes; they kept the money in their houses, and some of them returned with the very same bundles they had taken away. This occurred at the end of January.
4039. What was the capital of the bank reduced to at the worst moment of the run -Do you mean the osah balance ?
4040. Yes ?-May I be permitted to look at my notes ?
4041. Certainly !—The run was at its height at the end of January. I will give you the figures, Before the 29th January the cash balance had declined on socount of these circumstances, On the 29th January the cash balance stood at Rs. 885,000, and within four days, that is to my, up to the 3rd February, the cash balance had declined and stood at Rs. 390,000. The advance of 4th February to the bank against dock warrants saved the position, and also the orop which turned out good and the improvement in the price of
ngar.
4042. (Mr. Woodcock.) Was that the lowest ?—That was the lowest. I was not on the Board at the time this occurred, but the figures I give are absolutely
correct.
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