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Sub-Enclosure (iii) to Enclosure VII.
553
mmmmm C.O.
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
Port of...............................................
Exporter's Name........
EXPORT ENTRY.
For goods liable to export duty.
Wharf, Dock
or
Ship's Name
Station.
Whether British or Foreign; if Foreign, the Country.
Master's Name.
Port or Place of Destina-
tion.
Marks.
%
Numbers.
I..
Value includ- ing cost of Packages.
Number and Description
of Packages.
Quantity, Quality and Description of Goods.
Rate of Duty.
Date of
Shipment.
Amount of Duty.
..declare the quantity and description of the Goods above-mentioned to be
correctly stated, and the value of the said Goods to be....
shillings and...
.pence.
Dated this..
..day of..
Signed..
Comptroller of Customs.
..pounds...
.191
Signed...
Exporter or Agent.
MEMORANDUM ON THE PROBABLE EFFECTS ON THE PALM KERNEL INDUSTRY IN THE GOLD COAST COLONY OF THE PROPOSED EXPORT DUTY OF £2 PER TON ON PALM KERNELS EXPORTED TO PLACES OUTSIDE THE BRITISH EMPIRE.
It is unnecessary in this Memorandum to enter into speculations as to whether the British Empire can control the world's supply of Palm Kernels; whether now and after the war it can prepare and market the oil and bye products in successful competition with all comers; or whether it can and will take our whole production of the raw material at prices at least equal to those that ruled in the German markets before the war. All those and many kindred questions are being debated in the Press of the Empire-from which, let us hope, the best information and inspiration will flow to the proper quarters. To me personally the prospects of success for the experiment seem to be exceedingly favourable, and information Iron Eng- land to the effect that extensive kernel crushing plant is being put down in all directions shows that the people most interested are of the same opinion. Equally favourable, from the kernel producers standpoint, is the time selected for the experiment. The demand for oils and fats is sure to keep up the price of kernels during the war, and the efforts of Germany to recover her positon is sure to lead to a season of keen com- petition and high prices afterwards.
2. Unfortunate, in some respects, is the fact that this Colony is little interested in the question. Here, the Palm Products industries are practically in decay. Our exports of palm kernels dropped from 14,628 tons in the record year 1912, to 9,744 tons in 1913, 5,633 tons in 1914, and 4,064 tons in 1915. This, of course, is due to what may be called the "cocoa boom." Immense quantities of palm kernels are to be had for the gathering, but the necessary labour force is missing. The limited supply of labour available in the Colony is absorbed more and more every year by the more remunerative and less troublesome cocos, and improved and extended roads and railways seem to free labour for the cocoa industry alone. The palm trees, fortunately, are not being destroyed to any large extent, and they may yet become valuable economic assets, but at present they are being exploited practically only in districts where cocoa has not "arrived,"
or as spare time industries for women and children.
3. Nor can we wonder very much at this. From figures kindly supplied by the Director of Agriculture, I find that, granted a palm grove in being and labour paid at ordinary market rates, it would cost on the spot from £10 to £12 to produce a ton of marketable palm kernels, against which, with a cocoa plantation in being and labour paid at the same rates, it would cost on the spot only from £3 to £4 to produce a ton of marketable cocoa. Add to this the fact that the ton of kernels could be purchased at, say Accra, at the moment for about £10 whereas the ton of cocoa would fetch about £34. (Under the peculiar conditions that exist in the Colony we may disregard the capital cost of the cocoa plantation as a factor in the com- parison). It is obvious therefore that the palm kernel Industry can never again become an important economic asset here as long as the cocoa industry enjoys its present prosperity, and the labour supply remains at its present strength.
4. It only remains therefore to consider whether the export duty of £2 per ton on kernels exported to Foreign countries will hasten the decay of the kernel industry. Obviously, it cannot do so, if, as we are assured and have every reason to hope, the British crusher will be able to take the whole supply. If he takes it, the duty will not be paid and the industry, so far, will be in exactly the same position as it was before. But will he pay the same prices as the German crusher paid before the war? Everything depends on the answer, and the answer is with the British crusher alone. Every increase in price will stimulate production and every decrease will depress it.
5. The next question is whether the imposition of the proposed duty is likely to facilitate the formation of rings to depress prices artificially. There is not the least evidence as far as I am aware to show that it can do so. Pools have been formed in the past to keep up the margin of profits but they have always been short lived. There is very little reason to believe that they would be more stable now, and certainly no reason to believe that the proposed tax would contribute to their longevity. True, the elimination of the German merchants would give such pools a better chance of success, but the merchants that remain are sufficiently numerous and independent to render the chances of success still very doubtful. Besides, the merchants as well as the farmers have lost interest in palm products to such an extent that it is doubtful if they would think it worth while to form a pool under present or prospective conditions.
6. Although it seems reasonable therefore to conclude that the proposed duty in itself will not hurt the local palm kernel producer either in the extent of his market or in the competition among the local buyers, I fear the same cannot be said of the method in which it is proposed to grant exemption in respect of kernels shipped to British ports. The condition of exemption is that the exporter here must produce within a certain time proof that the kernels exported have been crushed within the British Empire. Now
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SCHEDULE
FORM B.