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Commerce, as a consequence, is suffering from the ill effects of such difficulties, and the net results of the present crop being insufficient to allow the planters to meet their engagements and pay the expenses they have to incur for preparing and realizing the next crop, the Chamber is unanimous in expressing the hope that Government will contract, as soon as possible, a loan which this Chamber considers is of urgent necessity for the assistance of planters.

"Commerce would then indirectly benefit by such assistance, since the planters, being sure of having the means required for preparing their next crop would be in a position to affect the proceeds of the present crop to the payment of their obligations and engagements, and commerce would thus be enabled to put into circulation its capital now blocked up."

I may mention that some members expressed the opinion that the proposed loan of three millions of rupees would hardly be sufficient to meet the present requirements, and in any case that they trusted it would be considered as a minimum.

41

After September the discounting of bills and accounts is carried on as usual, but the bank's resources are more particularly employed in loans on dock warrants of sugars and in exchange operations (buying of drafts and telegraphic transfers).

By loans on dock warrants the bank thus furnishes to planters the means of meeting their engagements, whilst exchange operations ensure the regular working of the affairs of the Colony in general.

It would, therefore, be with great satisfaction that the Board of Directors would see that His Excellency the Governor is prepared to entertain favourably the assist- ance asked for on behalf of the agricultural interests of this Colony.

I have, &c.,

1574

No. 33.

J. MEE. GOUPILLE,

Secretary.

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

SIR,

I have, &c.,

P. ADAM,

President, Chamber of Commerce.

Enclosure 3 in No. 32,

MANAGER, Bank of Mauritius, to COLONIAL SECRETARY.

December 2, 1902. I HAVE the honour to acknowledge receipt of your No. 11159/02 of the 27th November, and I am requested by my local Board of Directors to state, in reply, that, from careful enquiries made, the present position of the Colony is undoubtedly one surrounded by increasing anxiety and apprehension, and may, at any moment, become critical.

There is no doubt that, through planters not promptly meeting their liabilities for grain, ironmongery, manures, bags, &c., local traders supplying these commodities have been, and are, much inconvenienced. Planters, in many instances, began their present crops with a balance against them, and with a shortfall in the production, and heavy extraordinary expenses, forced upon them in consequence of the "surra," their position by the end of the crop will certainly have been aggravated.

My Board approves of the amendment of the Honourable H. Leclezio, and is further of opinion that it is of paramount importance to the sugar industry and to commerce that a loan should, if possible, be raised to relieve the present tension and pressing needs of many planters.

Enclosure 4 in No. 32.

I have, &c.,

GEO. DICKSON,

Manager.

SECRETARY, Mauritius Commercial Bank, to COLONIAL SECRETARY.

December 4, 1902.

SIR,

I AM directed by the Board of Directors of this bank to acknowledge receipt of your letter, No. 11159/02, dated 27th ultimo, transmitting, on behalf of His Excellency the Governor, copy of a letter addressed to the President of the Chamber of Agricul- ture, on the subject of a resolution moved in the Council of Government, with regard to a loan to be raised for assisting the planters of this Colony, and requesting to be favoured with the bank's views on the subject.

The Board are of opinion that, under the present trying circumstances, the assistance of Government is much needed, and is indispensable to enable the agri- cultural industry to cope with the difficulties due to the losses caused by the cattle discase "surra," the low price of sugar, and the deficiency in the present crop.

Besides the ordinary commercial transactions, it is customary for this bank to assist the sugar industry for the period from April to September in each year, and this assistance enables the planter to meet his expenses up to the time of realising

his crop.

GOVERNOR SIR C. BRUCE to MR. CHAMBERLAIN. (Received January 12, 1903.) [Answered by No. 51.]

(Confidential.)

SIR,

Government House, Mauritius, December 12, 1902. WITH reference to my numbered despatch* of even date, on the subject of a proposed loan to assist the sugar industry in the Colony, I have the honour to inform you that the position of the industry had been engaging my attention for some time before the 16th of September, the day on which a resolution, to which I have referred in my numbered despatch, was debated in the Council of Government. 2. I annex a copy of a confidential Minute prepared for me by Sir Graham Bower, at that date, on the general financial position of the sugar industry in the Colony. The course which has since been followed is, I hope, sufficiently explained in my numbered despatch.

3. I have instituted many enquiries on the subject, and I think the following conclusions may be accepted as approximately accurate.

4. I find it necessary to deal with the position of the sugar industry under two heads:

1. The large estates generally provided with mills for the manufacture of

sugar; and

2. The small proprietors who plant only and sell their canes to the estates

provided with mills.

In order to avoid a confusion which frequently arises, I have to point out that

"

in this Colony the small proprietors are generally spoken of as

planters." The phrase "planters' canes" always means the canes grown by this class of proprietors. The "planters" in this sense are mostly Indians; but small patches of canes are grown, mostly in gardens, by the rest of the community.

5. I will group my observations, therefore, under the heads of "Large Estates" and "Planters' canes."

6.

LARGE ESTATES.

The total value of lands and buildings is estimated at Rs. 54,270,927, on which there exist inscribed mortgages to the amount of Rs. 18,334,529. Assuming that the average rate of interest on those mortgages is 8 per cent., and it is certainly not less, the estates are burdened with an annual charge of about Rs. 1,467,000. As regards the working of estates, I must explain that with very few exceptions their business is entirely carried on with borrowed money. The cost of production— called here "raisance valoir "—is met by advances made by brokers, or financial agents, designated "bailleurs de fonds." The sugars of the estates are consigned to the "bailleurs de fonds," who sell, or cause them to be sold, and apply the proceeds to recouping their advances. The bailleurs de fonds" make advances partly out of their own capital and partly out of assistance furnished by the banks. Some owners of estates are directly assisted by the banks, which discount their bills pay- able out of the following crop. It sometimes, probably frequently, happens that advances made by "bailleurs de fonds" in one year are not fully paid up, and are

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