PUBLIC RECORD OFFICE
Reference :--
PELLIC.O. 882
2286
28
No. 24.
THE SECRETARY OF STATE to THE GOVERNOR.
(Paraphrase.)
(Sent 3.40 p.m., 25 January, 1908.)
TELEGRAM.
[Answered by No. 25.]
Your telegrams of 20 January.* I have the strongest disinclination, unless in event of absolute necessity, to agree to your proposals, especially as this is not the first occasion in which the Bank has been in difficulties. Position as stated by you suggests that Bank has been mismanaging its business. I learn from confidential enquiries that considerable sales of sugar at fair prices have just taken place, and also that Crown Agents have recently sold a telegraphic transfer for £15,000 on Mauritius Government in favour of Commercial Bank. Has not this relieved situation-ELGIN.
3872
No. 25.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 11.10 a.m., 2 February, 1908.)
(Paraphrase.)
TELEGRAM.
[Answered by No. 27.]
Referring to your cypher telegram of 25 January,† position has not improved. Withdrawals have recommenced and I apprehend further serious run on the Bank. Firm of Regnard, owning and operating estates, has gone into liquidation, and I am warned that provision cannot be made for feeding labourers and that applica- tion to Government for rations is imminent, involving the probable sequestration by the Government of many properties, which I deprecate. Situation is grave, and unless Bank is assisted promptly I am convinced that serious results must ensue. On 3 February the Directors of the Bank will make formal application for assistance, and I beg to repeat my request of 20 January‡ for full discretion, reporting each step taken.-BOYLE.
8879
No. 26.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 1.8 p.m., 3 February, 1908.) TELEGRAM.
Referring to my telegram§ of yesterday, Commercial Bank will be forced to suspend payment to-morrow morning unless Colonial Government afford assistance. I have promised Rs. 1,000,000 in paper currency by 10 a.m. against dock warrants Rs. 1,500,000.-BOYLE.
3872
19
I do not approve of following precedent of 1898 and lending money to Bank for fixed period. Conditions of loan should be made so onerous that it will be to the advantage of the Bank to repay as quickly as possible. This will be best effected- first by lending at a high rate of interest, probably 10 per cent. would not be too high, but in any case the rate should be such as will prevent Bank from making any profit by relending money advanced; secondly, by making it a condition of advance that sale of sugar shall be pressed forward as fast as practicable.
Do you understand that Bank requires advance to strengthen itself against a run or for further accommodation to customers? Its position will require serious consideration when crisis is over.
4122
Keep me fully informed by telegraph.-ELGIN.
No. 28.
THE GOVERNOR to THE SECRETARY OF STATE
(Received 11.40 a.m., 5 February, 1908.) TELEGRAM.
(Paraphrase.)
5 February. Government has advanced to Bank Rs. 1,000,000, repayable on demand, with interest at 10 per cent., against dock warrants for Rs. 1 million transferred, to be dealt with at my discretion. Undertaking has been received from the Bank to this effect. I understand that the loan was immediately necessary in order to avert suspension and a consequent general catastrophe, and on that I have acted.
An Ordinance will have to be passed similar to Article 2 of Ordinance 1 of 1898, with a clause validating the action already taken, to which I propose to assent on 7th February. I hope that an increase of the advance will not be necessary, but no further action will be taken under the provisions of the enactment without your consent, and on the termination of these transactions it will be repealed.-BoYLE.
7639
No. 29.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 2.12 p.m., 2 March, 1908.) TELEGRAM.
[Answered by Nos. 30 and 31.]
2 March. Heavy gale since morning of 29 February culminated in cyclone yesterday evening and night which is now abating, but there is still strong gale; no loss of life reported up to now, but telegraphic communication interrupted with districts, and railway communication has been suspended since early in evening of 29 February. Canes, growing produce, and small tenements have sustained serious injury, and I apprehend considerable increase in distress already existing, probably necessitating distribution of food and starting relief works at public expense. Fuller particulars will be sent by telegraph as soon as possible: meanwhile, I apply for permission to draw upon reserve fund to meet expenditure which may be necessary.-BOYLE.
7639
No. 27,
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 2.15 p.m., 3 February, 1908.)
TELEGRAM,
[Answered by No. 32.]
Referring to your telegram of the 2nd instant. §
I recognize that it may be the duty of Government to intervene in order to prevent a general catastrophe. I have not sufficient information to determine whether necessity has actually arisen, and must leave this for
your decision.
No. 30.
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 8.30 p.m., 4 March, 1908.)
TELEGRAM.
[Answered by Nos. 34 and 50.]
Your telegram of 2nd March. Have received news of cyclone with great regret.
I hope that you will find that results are not so serious as you anticipate. You will
• Nos. 21 and 22.
↑ No. 24.
‡ See No. 21.
No. 25.
• No. 29.
6
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
No comments yet.
Private notes are available after approval.