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PUBLIC RECORD OFFICE

Reference :-

TITLC.O. 882

سلسالسا

9

PUBLIC RECORD OFFICE, LONDON

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

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further beg to remark that it cannot be inferred from fortunate posi- tion, sometimes perhaps more apparent than real, of a few planters that planting community has been wanting in thrift and industry:

Chamber of Agriculture, mill owners, planters and others directly or indirectly interested in sugar industry of island assembled to-day therefore request Governor to approach Secretary of State with view to obtaining his sanction to issue by Colonial Government of loan not exceeding £600,000 in aid of sugar industry, the amount of loan to be applied as well to cultivation and general wants of estates as to improvement of sugar factories and adoption of modern methods of manufacture, to creation and extension of irrigation works, and to increasing transport accommodation, a delay of three years being given to make applications for advances to be repaid out of loan and the advances to be repaid in 20 yearly instalments, comprising a sinking fund and interest at 5 per cent. per annum.

Executive Council unanimously of opinion that unless assistance in shape of loan to planters is immediately sanctioned Colony must be inevitably reduced to dire extremity. In endorsing that view. I. without hesitation, urge that impending ruin can only be averted by such means, and I believe that future of Colony will be assured by them. Although time may be necessary to effect the loan if it is sanctioned at once, the actual tension, which is extreme, will be relieved, and I earnestly trust that I may receive early reply agreeing to proposals.—BOYLE.

8611

No. 36.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 3.25 p.m., 18 March, 1908.)

TELEGRAM.

[Answered by No. 37.]

tele- your Your telegram of 9 March.* Statement of overdraft contained in

Inclusive of bill for Rs. 300,000 overdraft is about gram is not understood. £103,500, of which £72,500 is on account of bills on Bombay. Your telegram How do you account for implies that total amount of overdraft is £40,920. difference of £62,580 ?-ELGIN.

9666

No. 37.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 12.54 p.m., 18 March, 1908.) TELEGRAM.

[Answered by No. 53.]

Your telegram of 16th March.† Fear that my telegram of 9 March* has been mutilated in transit.

In reply to question in your telegram of 4th March,‡ I gave £22,220 as having been drawn in bills on Bombay in consequence of advance to Commercial Bank, but this did not affect the total amount so drawn, which was then, as now, £72,500. This amount is entirely on account of Commissioners of Currency; drawn in order to maintain the legal minimum of silver in reserve here, namely, one-third of total note issue, and Crown Agents can realise by sale of securities whenever necessary.

Financial officers still estimate overdraft on ordinary account current at the end of February, apart from transactions on account of Commissioners of Currency, at about £18,400, so that I make total amount required to balance the whole account £90,900, and I should be glad to know how the difference of £12,600 arises. £18,000 are available for remittance to fortify ordinary account current, part of which will be applied to purchase of usual monthly draft of District Paymaster.— BOYLE.

• No. 34.

↑ No. 36.

‡ No. 30.

9826

No. 38.

THE GOVERNOR to THE SECRETARY OF STATE.

(Paraphrase.)

(Received 9.35 a.m., 20 March, 1908.) TELEGRAM.

I have not yet received returns from all the estates, but I believe damage to crop and property on the estates cannot be less than Rs. 7,000,000.

I submit above opinion under reserve, but having regard to your cipher tele- gram of the 4th of March* I think estimate is not excessive.

This is in continuation of my telegram of the 7th instant.1-BOYLE.

10015

(No. 54.)

No. 39.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 21 March, 1908.)

[Answered by No. 59.]

MY LORD,

Government House, Port Louis, 13 February, 1908. WITH reference to my telegram of the 3rd current, in which I reported that, as the Commercial Bank of Mauritius would be forced to suspend payment unless assistance were afforded by the Government, I had undertaken to advance Rs. 1,000,000 in paper currency against the security of Dock warrants to the value of Rs. 1,500,000, I have the honour to transmit herewith a copy of the agreement§ made between my Government and the bank on the 4th current; and to submit the following observations on the action taken, and on the causes which have led to it.

2. The exceptional position of the bank was first brought to my notice on the 6th of January when the failure (in December last) of a leading firm of brokers and sugar estate owners, the shortage in the 1907 crop, the adverse course of exchange, the outflow of silver consequent on the decrease in the number of drafts offering on Bombay, and the high prices ruling for rice and grain were given as the conducing causes to a drain on the resources of the banks, and to a condition of its affairs which caused the directors to view the situation with considerable anxiety.

3. On the 10th of the same month, however, I was informed that matters had assumed a better aspect, and no further representation was made until the 18th, when one of the directors, Mr. H. Leclézio, acting as the mouthpiece of the Board, gave me reason to believe that early application would be made by them for assist- ance, in the shape of a loan of certainly one million of rupees, and probably of twice that amount. In informing your Lordship of the position, I referred to the action taken in 1898 when a somewhat similar application was made by, and granted to, the bank, and I added that I did not think that it would be necessary on the present occasion to suspend the Currency Ordinance, as was then done.

4. I also quoted certain figures gathered from the statements of the affairs of the bank which were handed to me by Mr. Leclézio on the 18th and from the then latest of the monthly returns furnished by the Board in the terms of their Deed of Partnership. I append copies of these statements marked A and B,§ showing (1) the cash position on the 18th of January, and (2) the receipts and payments from the 3rd to the 16th of that month; and also a copy of the monthly returns for December, 1907, and January, 1908.§

5. During the week ending on the 28th of January the position of affairs again seemed to improve, considerable sales of sugar took place at advanced prives, and it was hoped that no application for assistance would be necessary. Early, however, in the ensuing week another firm of brokers and estate owners, with large commitments, suspended payment, and this, coupled with the failure of a number of Chinese retail traders, created a general feeling of panic, and resulted in renewed

(Not printed.

• No. 81.

13917

↑ No. 83.

No. 26.