PUBLIC RECORD OFFICE
Reference :-
། ། ། ། ། ། mmimmimi.C.O. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH—NOT TO BE REPRODUCED PHOTOGRAPHIC-
22
BRITISH GUIANA.
5. As regards diamonds, the question is not of very great importance, prob- ably not more than 300 miners being involved. The Bank has stopped giving any advances on diamonds, and the claim holders are therefore unable at present to raise money on the stones they may receive from their claims. I enclose a copy of the table of advances usually made by the Royal Bank of Canada on diamonds. I enclose also a copy of a letter from Messrs. S. and E. Triefus on this subject. They are the chief buyers of diamonds in this Colony, and employ on their own account probably 50 men. If 40 per cent. of the amounts in the table could be safely advanced, there would probably be sufficient to pay the wages of the labourers. The diamond workings are situated very far in the interior, and it will be some time before the workers can be recalled and the workings closed.
6. By far the most serious situation, however, is that of the balata industry. On this subject, the Manager of the Consolidated Company, Mr. A. F. White, who only arrived from England on the 24th instant, is in communication with the Royal Bank of Canada. Here, again, it is quite impossible for me to say whether the Bank is reasonable. They have, I believe, always treated the Company liberally, but the market for balata is so demoralized that it is difficult to say that their action would be unreasonable if they refuse to make further advances to the Company.
7. The crop of balata this year is the largest on record. It has also been produced for less than ever before. The bulk of the expenditure in obtaining the crop, that is, the cost of sending expeditions up into the interior, the advances to the men, and the supplying them with food during the months of their work, has been met. The expeditions are now returning with the balata, and the men on arrival expect to be paid the balance of their earnings, after the deduction of all advances, etc.
8. I understand that the estimated cost to the Company of balata, in George- town, is probably from 18. 8d. to 18. 10d. a lb.; an advance of 8d. a lb. would prob- ably enable them to meet their debts to the labourers, some 3,000 in number, who will arrive in Georgetown between now and the end of November. Recent advices seem to show that even at 1s. 3d. a lb. balata is difficult to dispose of in London or New York, and that this is owing to the sudden cessation of trade with the Continent; Germany and Austria being large consumers. It seems reasonable to expect that the prices will recover very considerably on the cessation of the war. There is probably 400,000-500,000 lbs. of balata still to come in, and of this the Consolidated Company probably own 300,000.
9. The Colony, as you know, at the present moment has no money available, and is dependent upon the Crown Agents for financing any extraordinary outlay. The return of over 3,000 men, and their failing to obtain the payment they expect for months of hard work, would lead to much discontent and possibly very serious disturbances. I have seen Mr. White, and he certainly hopes to obtain Government assistance. I have told him that he should pursue his negotiations with the Bank, and I hope he will be able to come to terms with that institution.
10. The Consolidated Company during the last three years has done excellent work. Their business has become very much better organized, and if it had not been for the terrible depreciation of the product owing to the war, they would cer- tainly have been in a sound financial position. Now Mr. White has returned I hope it will be possible to arrange for the payment of the labourers at least, and, if possible, for the storage of the balata until the prices recover, as otherwise the Company would have to cease work and probably go into liquidation.
I have, &c.,
WALTER EGERTON,
Enclosure 1 in No. 14.
Governor.
EXTRACT FROM COPY OF LETTER FROM S. & E. TRIEFUS, OF 4, HOLBORN CIRCUS, E.C., to MANAGER, ROYAL Bank of Canada, GEORGETOWN, dated 10th August, 1914. DEAR SIR,
*
•
*
*
(2) OWING to the war we cabled you asking to stop advancing on diamonds, as there will be no demand for them for a considerable time. We ask you to dis- courage any one from continuing working for diamonds, as the goods could not be disposed of at any price at all. The miners might easily pay out more in wages than the diamonds might fetch later on.
23
BRITISH GUIANA.
We beg to inform you, too, that it has been given out officially that Messrs. De Beers and Premier Mines are closed as well as all their South African mines. There is no diamond cutting being carried on, as all the factories are closed.
Kindly do not forward even any diamonds you may have on hand, as these are not wanted, as stated above, and we are sure you will agree that it would be useless to pay a high war risk insurance.
*
*
#
We have cabled to Mr. Braddon to finish his workplace and then stop work.
Enclosure 2 in No. 14.
*
S. & E. TRIEFUS.
TABLE OF ADVANCES ON DIAMONDS MADE BY ROYAL BANK OF CANADA, Georgetown. Furnished by Managing Director.
15 per carat or smaller ...
14
J
average
13
"
"1
"
12 11
37
11
+1
1)
"
12s. 6d. per carat.
148. 6d.
11
158. 6d.
"
"
168. 6d. 11 178. 6d.
"
>1
"
The above are for Mazuruni goods. Cuyuni average is better as a rule, but the largest stones are crushing hort, so that though the average may be six per carat the advance should not be more than 16s. 6d.
For advances on goods of presumably higher value than $4:-
Mazaruni only.
4 per carat average
$7
per carat.
3 2
35
"}
$8.50
**
$10
*
10
"}
Cuyuni stones are not so advantageous on account of the large-sized ones being generally of low quality, mostly crushing bort.
41925
SIR,
No. 15.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 29th October, 1914.)
(Confidential.) (Extract.)
Government House, Georgetown, Demerara,
5th October, 1914.
*
4. I am informed by the Commandant of the local forces that the new infantry militia is proving very satisfactory, and that both companies are rapidly becoming efficient. I informed you in my despatch No. 369, of the 29th August, that, on the outbreak of war, it had been decided to raise two companies instead of one, as originally contemplated. The second company will, however, be disbanded on the termination of hostilities.
• No. 11.
*
I have, &c.,
WALTER EGERTON.