66
before the Secretary of State, either directly or indirectly through a Commission of Enquiry, and we have no objection to adhere to such a course because above all we want to attain our end. We do not object either to have an independent enquiry into the administrative conditions of the Colony.
10. We cannot afford to lose two million rupees a year through the present inadequacy of our sugar manufacturing plant, we cannot, each time that some adverse factor-which we should contemplate and be ready for, such as a drought, a cyclone, or a depression in the sugar market-bears upon us, beg for assistance. We want to apply a remedy to the chief source of evil, which is lack of money, because we know that once this cause removed, the other minor causes will cease to affect us too adversely. We are confident that every one of the conditions laid down by the Secretary of State shall be satisfied, when men instructed by him knowing exactly what he wishes will have come here and gathered all the information the planters shall only be too willing to give.
11. The Commissioners would examine with us all the remedies we propose, or suggest others in the interest of this Colony; they would see for themselves and report on the marvellous fertility of our soil, on its admirable adaptedness to the cultivation of the sugar-cane as its main industry; they will testify to the spirit of enterprise, to the energy, that animate the inhabitants of this Colony, and if they agree with us that cheap money would have as an immediate effect to enable this Colony to maintain its place among those self-supporting portions of the Empire that add to its force by contributing to its military expenditure, and to its grandeur by their loyalty and sense of duty, well, we feel confident that on a favourable report the Secretary of State will hold out to us a brotherly hand, and tender that assist- ance which it shall not be beneath our dignity to accept.
To His Excellency
Sir Cavendish Boyle, K.C.M.G.
J. A. DUCLOS.
E. A. O. LAURENT.
G. GÉBERT.
67
5. But I would submit that there are reasons for a reduction of the rate; the objects in view when it was fixed have been, I think, fully attained, for prompt repayment has been secured and it is scarcely possible that any profit can have been made by the bank in re-lending the sum advanced. It is not likely, moreover, that the directors will feel encouraged to make a similar application.
6.
On the rate to be charged becoming known, advantage was at once taken to accuse the Government of demanding ruinously high interest, and should the payment in full be insisted upon the example will be quoted for many years to come, whilst the difficulties encountered in combatting the evils of usury prevalent in the Colony will be increased.
7. It is for the above reason solely that I deemed it to be my duty to recommend a reduction of the rate, and I trust that your Lordship will not view the request herein respectfully preferred as an excess of such duty.
Enclosure in No. 61.
LOAN ACCOUNT.
I have, &c.,
CAVENDISH BOYLE.
Loan to Mauritius Commercial Bank made on the 4th February,
1908
Rs.
1,000,000
PUBLIC RECORD OFFICE
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| PUBLIC RECORD OFFICE, LONDON
5 May, 1908.
23224
(Secret.) MY LORD,
No. 61.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received June 27, 1908.)
[Answered by No. 64.]
Government House, Le Réduit, 25 May, 1908.
I HAVE the honour to acknowledge the receipt of your Lordship's telegram* in reply to my communication on the subject of the rate of interest to be paid by the Commercial Bank of Mauritius on the advance of Rs. 1,000,000 made to them by this Government on the 4th of February last.
2. I transmit herewith a memorandum showing the life of the advance, the repayments made, and the amount of interest due, calculated at the rate of 10 per. cent.; but before finally closing the transaction I venture to ask for your Lordship's reconsideration of my recommendation that such rate should be reduced.
3. In the telegramt from your Lordship's predecessor despatched on the 3rd of February last the following principles are laid down: 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 the bank from making any profit by re-lending the money; secondly, by making it a condition of advance that the sale of the sugar shall be pressed forward as fast as practicable.
4. Fully recognising the soundness of the above principles, I did not exercise the option left to me of fixing the rate of interest at anything below 10 per cent. The payment of the full rate indicated formed a condition of the agreement entered into between the Government and the bank, and the latter are under obligation to pay that rate on demand.
• No. 56.
↑ No. 27.
Repayments.
Received on 20th March, 1908, by telegraphic transfer on the
National Bank of India, Bombay
200,000
Balance due on 31st March
800,000
Rs.
Brought forward
800,000
Received on 15th April, 1908, by Draft No. 600, dated 30th March;
1908, on the National Bank of India, Bombay
300,000
500,000
Received on 27th April, 1908, in specię
150,000
350,000
Received on 29th April, 1908, by telegraphic transfer on Lloyd's
Bank, London (£13,000)
195,000
Balance due on 30th April, 1908
Received on 18th May, 1908, in currency notes
155,000 50,000
105,000
105,000
Received on 14th May, 1908, in currency notes
INTEREST Account at 10 PER CENT.
Rs.
Rs.
"
"
From 5th February, 1908, to 20th March, 1908 (45 days) on 1,000,000 21st March, 1908, to 15th April, 1908 (26 days) on 800,000 16th April, 1906, to 27th April, 1908 (12 days) on 500,000 28th April, 1908, to 29th April, 1908 (2 days) on 350,000 155,000 90th April, 1908, to 18th May, 1908 (14 days) on For 14th May, 1908 (1 day) on
12,500,00 5,777.78
1,666.67
194.44
602.78
105,000
29.17
Rs. 20,770.84
18217
I 1
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