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PUBLIC RECORD OFFICE
Reference :-
CO. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAYNOT TO
2. The Defence Force of Antigua had already been called out for actual service and the Defence Reserve enrolled as part of the Defence Force, and all reasonable measures for the protection of the island are now in force. Similar action has been taken in the other Presidencies, with the exception of the Virgin Islands. I regret to report that, owing to serious illness, Lieutenant-Colonel E. Bell, Chief Inspector of Police and Commandant, has been unable to take any active part in the direction of the defence since the 2nd August. He is now almost restored to health. I was also obliged to grant leave of absence to the Treasurer and Reporting Officer of Antigua, Mr. F. W. Griffith, in order that he might visit an oculist in Barbados. Mr. Griffith returned to duty to-day.
3. A censorship of cable communications was established in Antigua, St. Kitts, and Dominica on 3rd August, and is working smoothly.
4. In order to allay the anxiety which had arisen in Antigua as to the supply of specie for the payment of labourers, I though it advisable, after consultation with my Executive Council, to summon a special meeting of the Legislature, at which a Bill was unanimously passed relieving the Antigua branch of the Colonial Bank from its obligation to exchange its notes for specie. The only result of this action has been to give the bank authority to refuse or delay payment of large demands for cash, the ordinary business of the island continuing as before. The usual copies of this Ordinance are being forwarded in a numbered despatch.
5. The only other question which caused any expression of popular feeling has been the fear lest the supply of food might be interrupted, which arose mainly from the action of certain firms who attempted to raise the price of foodstuffs in St. John's. The proclamation of martial law and the regulations made under it, together with conversations with the leading merchants, were quite sufficient to restore prices to their ordinary level, and no further action has been needed at present. The confidence in the Government shown by all classes in Antigua is extremely satisfactory.
6. From your knowledge of Mr. Roxburgh, Mr. Drayton, and Lieutenant- Colonel Davidson-Houston, you will understand that I am relieved from any serious anxiety as to the conduct of affairs in St. Kitts-Nevis, Dominica, and Montserrat, and will rely on energetic and well-advised action being taken in those Presidencies should any emergency arise. The people of this Colony are thoroughly loyal to the Crown, and ready to render the best service they can to His Majesty and to the Empire
I have, &c.,
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No. 79.
T. A. V. BEST,
Acting Governor.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 22nd February, 1915.)
(No. 29.) SIB,
In accordance with the instructions contained in your despatch No. 144, of the 20th November, 1914, I have the honour to submit a report giving, in summarized form, an account of the general arrangements (other than defence measures) which have been made in Malta in consequence of the outbreak of war.
The Palace, Valletta, 12th February, 1915.
was
2. On the 2nd August, 1914, I issued a Proclamation publishing Her late Majesty's Order in Council of the 28th October, 1896; this Proclamation followed by others and by various Government Notices which were issued from time to time in connexion with events arising from the state of war. I enclose, for your information, and for facility of reference, a list of all the Proclamations and Notices, grouped according to the subject to which they relate.
* 45801 not printed.
I.-FINANCE.
3. The Moratorium. The first symptoms of an approaching financial crisis became apparent on the 1st of August. Indications were not wanting of a probable run on the Government Savings Bank and on the four local banks, viz. :-the" Banco di Malta," the "Anglo-Maltese Bank," the " Anglo-Egyptian Bank," and the "Banco di Roma." The cash balance available in the Treasury at the time was only £15,000, while the balance at the disposal of the other four banks amounted in the aggregate to only £90,000. The position was further aggravated by the unsuccessful results attending all attempts made by the banks to obtain shipments of specie from the United Kingdom. In these circumstances, after consulting my financial advisers, who themselves held several conferences with representatives of the banks, I pro- claimed a moratorium on the 2nd August, 1914, authorizing the suspension of specie and other payments until the 17th of August, and extending until the same date the period of maturity of bills and other negotiable instruments. On the 14th August, 1914, the maturity period of bills of exchange was extended to the 31st of the same month, while the banks were authorized to limit the repayment of moneys to 10 per cent. as from the 17th to the 31st of August, 1914. On the 31st August, 1914, the moratorium was again extended to the 15th of September, and the repayment limit raised from 10 per cent. to 20 per cent. in the case of certain deposits; the period for noting protest in respect of bills of exchange was at the same time extended to the 7th of September. Finally, on the 15th September, the moratorium was once more extended to the 30th September, and the banks set free to pay any amount of specie in excess of the limits previously imposed.
4. Government Savings Bank.--On the 2nd August a notice was issued inform- ing the public that interest on deposits in the Government Savings Bank would, until further notice, be at the rate of 24 instead of 2 per cent, but that fifteen days' notice would be required for the withdrawal of deposits. This measure had the twofold object of attracting local gold and protecting the Bank from a possible run. It may be observed that, during the whole of the period during which the mora- torium was in force, all demands were met in full, advantage not being taken by the Government of the limit prescribed for bank withdrawals. The withdrawals between the 2nd August and the 31st December last were £82,000, while the deposits amounted to £32,000.
5. Paper Currency.-Notwithstanding the measures adopted to protect the banks from the results of a panic amongst their clients, and the endeavours of the Government to attract gold to the Savings Bank by raising the rate of interest on new deposits, it became necessary to issue a temporary Government paper currency. This was done under the provisions of Ordinance No. VIII. of 1914, an emergency enactment which was brought into operation on the 12th August, 1914.
Notes were issued of the value of 58., 10s., £1, £5, and £10, the authorized limit of the whole issue being £100,000, but the amount of notes in circulation did not at any time exceed £98,457.
Towards the end of September the financial situation had so much improved that it became possible for the Government to discontinue the practice of reissuing the 58. and 108, notes that had been gradually presented at the Treasury. The conversion of the £10 notes and of the £5 notes was not, however, authorized until the 29th September and 19th October respectively. The £1 notes are not being withdrawn as yet.
II.-FooD SUPPLIES.
6. As an immediate result of the declaration of war, there was in Malta, as elsewhere, a general rise in the prices of foodstuffs, attributable to various causes, amongst which may be mentioned the prohibition of exporta from foreign countries, an apprehension that the food supply in these islands might run short, and also some local hoarding of stocks and inflation of prices.
7. Sugar. The price of sugar rose to a level hitherto unknown in Malta, and as the stocks in the two islands were fast running short, while, owing to the uncertain conditions prevailing, local importers showed no inclination to import the article, it was deemed advisable by the Government to obtain a certain quantity from abroad, and supplies were accordingly imported from France, Egypt, and the United States of America. It was thus possible to place at the disposal of the
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