CO882-(8-9) — Page 266

PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

لتسلسليلا

9

PUBLIC RECORD OFFICE, LONDON

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

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General, Mr. MacGregor, is no doubt perfectly capable of conducting the former operation, and he would also, doubtless, be efficient in protecting Government interests in the future conduct of the affairs of the bank; but his time is very fully occupied, and for this, and, perhaps, for other reasons, it would seem desirable that a person qualified as an accountant and experienced in bank management should be employed from outside the Colony, and apart from the Colonial Service.

19. I am of opinion that this course would lead to less friction, and would be more acceptable to the general body of shareholders, at all events, than if a The time for the examination has not resident official were selected for the work.

yet fully arrived, the contingency has not arisen, and possibly may not arise; I deem it advisable, however, to submit the above remarks at once, and to add my belief that experienced supervision and control of the affairs of the bank in the manner indicated (provided always that the cause existed in the shape of continuing assist- ance from the Government), would not only result in an improvement of the bank's position, but would tend to the re-establishment of financial soundness in the Colony, and to a removal of many of the difficulties now encountered in the administration of its government.

20 I do not burden this communication with copies of all the enclosures transmitted under cover of my numbered despatch quoted above, but for facility of reference I append a printed paper containing the Articles of Association* (Deed of Partnership. 1880) of the bank, now in force, together with copies of the agree- ment of the 4th,* and of the Ordinance passed on the 7th of the present month.*

I have, &c.,

CAVENDISH BOYLE.

10306

No. 41.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 1.33 p.m., 23 March, 1908.)

TELEGRAM.

Referring to my telegram of 18 Marcht and previous correspondence, Com- mercial Bank have repaid amount Rs. 200,000 in reduction of advance of Rs. 1,000,000 by telegraphic transfer on National Bank of India, and I have requested Crown Agents to collect and credit Account of Commissioners of Currency with that amount.-BOYLE.

0186

No. 42.

THE SECRETARY OF STATE to THE GOVERNOR.

(Paraphrase.)

(Sent 6.20 p.m., 30 March, 1908.)

TELEGRAM.

[Answered by Nos. 43 and 45.]

Your telegram of the 18th March. I feel that I have not sufficient informa- tion at my command to enable me to form a satisfactory opinion on the application for a loan, though such a review of the situation as I can make with the evidence available does not lead me to regard it with favour.

It would obviously be impossible to obtain such information by the course of official correspondence, and the only procedure which would seem likely to afford satisfactory evidence would be the appointment of a Commission, which would investigate fully and in detail the circumstances of the estates which require assist- ance, the necessity or otherwise of improvements or additions to the existing machinery, and generally the economic condition of the sugar industry.

If the Commission were appointed I should desire to take advantage of the opportunity to utilize its services for other purposes. I consider it would be very advantageous that an independent enquiry should be made into the administrative

‡ No. 35.

• Not printed.

† No. 37.

43

conditions of the island with a view of determining whether it would be possible to effect economies in the administration, and to make the sources of revenue more productive.

Lastly, the question of the Commercial Bank, which has in ten years twice compelled the Government to come to its assistance, can hardly be left in its present position. I consider that the Commission should make a full investigation of the methods by which the Bank has conducted its business in recent times, with special reference to the late crisis.

If, therefore, the Colony desires to press its application for a loan, I suggest that the Legislative Council should by resolution invite the appointment of a Com- mission of investigation, and declare its readiness to provide the necessary expendi- On receipt of such a resolution I will lose no time in selecting the members

ture.

of the Commission.

You may probably think it desirable to ascertain confidentially the views of the unofficial members of the Council of Government before taking any public action. If so, you have my permission to make known to them the substance of this telegram.-ELGIN.

11572

.No. 49.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 8.35 p.m., 31 March, 1908.)

(Paraphrase.)

TELEGRAM.

[Answered by No. 44.]

Before making known to the Unofficial Members of the Council of Government the substance of your telegram of the 30th instant,* I have consulted the Executive Council, who are unanimously of opinion that it would not be possible to keep the matter confidential, and that the immediate effect would be a run on the Commercial Bank conducing to a fresh crisis and defeating the object of making the advance which is gradually being repaid.

Under the Charter I have full power to enquire into the affairs of the Bank whenever expedient, and I advise, therefore, that any enquiry which may ultimately be found necessary should be made independently of the foreshadowed Commission and apart from their functions, and that the reference to such enquiry'should be omitted from any communication to the members of the Council of Government.

I should be glad if you would reply as soon as possible, as the tension is considerable.--BOYLE.

11572

No. 44.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 7.15 p.m., 2 April, 1908.)

(Paraphrase.)

TELEGRAM.

[Answered by No. 45.]

Your telegram of 31 March. In view of your advice I consent to omission of reference to the Bank from your communication to Members of Council of Govern- ment. I reserve, however, my decision as to what enquiry into affairs of Bank may be necessary till a subsequent stage.-ELGIN.

13129

No. 45.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 11 April, 1908.)

(Paraphrase.)

TELEGRAM.

[Answered by No. 47.]

No. 1. Referring to your cipher telegrams of 30 March and 2 April, and to

↑ No. 43.

18217

• No. 42.