PUBLIC RECORD OFFICE
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Reference :-
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C.O. 882
ALLY WITHOUT PERMISSION OF THE | COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
PUBLIC RECORD OFFICE, LONDON
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1 July 1909 1
MAURITIUS ROYAL COMMISSION, 1909:
Mr VICTOR HUTEAU.
4107 You call those charges on land!—Yes. 410% (Chairman.) We asked you a question with I understand that reference to the raising of money you are in favour of the raising of a loan for railway purposes-Yea
$109. We naked you on what terms you thought it uld be got, and you said you thought on the terms that were obtained before-you mean with the guar.
[Continued.
antee of the Imperial Government -Yea, with the With regard guarantee of the Imperial Government.
to the question of the rate of interest charged by the Bank on good security of planters, it is usually 10 per cent., but in case of the realisation of present good For prospects the rate will probably be reduced. commercial purposes the rate is 9 and 10 per cent., according to merit.
Adjourned for a short time.
(3.)
REPLI of Mr. G. DICKBON to Written Questions
A. 1. I would attribute the main causes of the Government difficulties to-
(a) Over expenditure.
More care and forethought might also be
thy Schemes proposed and carried out, which, not being of urgent necessity, could have been postponed
until the Colony was in a position to undertake them. given to cost of undertakings before embarked upon.
•
(r) To the falling-off in revenue caused by a decrease in the spending power of the population, the position of affairs making it necessary for planters to exercise the most rigid economy, thereby curtailing the circulation of money.
The position of planters began to he acute in 1902, when surra broke out amongst their animals Large sums were spent which could not be repaid from proceeds of the crop, consequently many planters finished the year having large balances against them in the books of their "Bailleurs de fonds." The Advance-in-Aid" loan of 1909 gave temporary relief, but the position was little improved in 1906, when the second instalment of the loan was paid off, as it is generally believed wany planters had to borrow to meet this payment.
Although the crop of 1906-7 was a record one, the average price realised was only Rs. 6-60 per 100 lbs., while the price of rice was exceptionally high. I annex a statement showing crops, average prices realised, value and Average price of ration rice from 1884 to 1908. Things were brought to a crisis by the failure in November 1997 and January 1908 of two of the largest "Bailleurs de fonds," which caused a feeling of distrust on the "Place," and led to a lock-up of funds as well as the withdrawal of lendable capital from circulation. The effect of this was surely felt on the revenue.
A. 2. (a) The position of planters appears to have improved. Last orop sugars sold readily, which relieved We are now in view of one the planters of the necessity of borrowing under dock warrant, thus saving interest.
of the finest crops on record, yet money seems abundant, and speaking for the institution with which I am connected. I can say that at present our advances are considerably under the amount estimated by our clients when applying for their credita.
(b) I think the various boards might be abolished with advantage, and more responsibility thrown on the various heads of departments concerned. They appear to me to rather hamper officials in their duty than otherwise.
A. 3. Personally I am adverse to the burden of the Colony being increased unless for very good reasons, as unforeseen circumstances may arise at any time which might render a loan indispensable.
1 July 1909.]
MINUTES OF EVIDENCE.
Mr. G. DICEBON.
27
[Continued.
The majority of electors contribute little or nothing to the revenue, the taxes falling almost exclusively on the upper classes. I fear that the incessant increase of taxation falling on the minority may cause the many who control the voting power to become indifferent to the increasing expenditure of the Colony.
5. The rates for transport of canes should be increased. Some years ago the General Manager of Railwaye stated that oane waggons cost Rs. 3,000 each and were employed for 75 days in the year, sarning Rs. 135. Such a return would not satisfy a private company. Planters who use such waggons should either pay remunerative rates or provide their own waggons.
A. 6. If guaranteed by the Imperial Government it should be possible to raise a 4 per cent. loan at par or perhaps a little over.
The capitation tax might be so adjusted as to cover the interest and sinking fund charges.
A. 7. I have no wish to take up the time of the Commission, but as some statements have been made which are rather misleading, I would most respectfully beg to make the following remarks:----
1. Rates of interest charged by the banks.
Considering the risks, and the large unemployed balances the banks are obliged to keep in case of emergency.
I do not consider the rates charged as very excesive.
2. It was asserted that the "faisance valoir" of the estates amounted to 22 million rupees, while the banks could only lend six million rupees.
This seems to imply that the whole of the industry is carried on on borrowed money, an assertion which cannot be entertained. Admitting that the amount of the "faisance valoir " is correct, is it to be supposed that the whole 22 million rupees will be outstanding at any one particular moment! I think not.
I am prepared to submit a statement of the position of the two banks at two different periods of the year for the last 12 years, which will show that the banks can and do lend very much larger suma that the amount mentioned.
3. An agricultural bank to assist small planters would be an advantage, but I fail to see how an efficient control could be exercised over borrowers; advances are at present made to small planters by factory owners, and I believe losses are rarely made, but the system of supervision exercised by planters could not be carried out by Government except at very heavy cost.
4. There is no doubt the position of planters in Mauritius is hampered by the heavy burden of debt hanging over many estates in the Colony.
Some estates work entirely on borrowed capital, and in normal times get along all right, but when there is
a bad year their difficulties begin. Although I do not consider it to be the duty of Government to provide money at low rates to pay off existing mortgages on estates, yet if it is decided to assist planters in some way, it might be well to consider whether such a form of relief might not be of more practical benefit to planters and the sugar industry in general than a loan for the improvement of machinery.
Port Louis, 30th June 1909.
A. (I.)
G10. DICKSON.
Statement showing CROP AVERAGE PRICE and VALUE from 1883 to 1908, also AVERAGE PRICE of RATION
RICE during same Period.
Year.
Tona.
Average Price
per 50 kilos.
Value.
Average price of
Year.
Ration Rice per 75 kilos.
Re. C.
1883-1884
126,293
11 77
Re 0. 29,729,372 20
Ba. C.
1884
8 52
1884-1885
129,479
A
57
22,192,700 60
1885
8
43
1885-1886
113,980
9
91
22,987,236
-
1886
7 87
If, however, it is decided to raise a loan for the objects mentioned, I would place
1. The Health Loan.
2. The Railway Loan.
1886-1887
105,778
9 42
19,928,575 20
1887
8 75
1887-1888
122,309
9
29
22,389,317 40
1888
6 93
1888-1889
129,634
9 32
94,163,777 60
1889
8 61
If the health of the inhabitants is improved, prosperity will follow, as more land in unhealthy districts will be brought into cultivation, while the expenses of the Government hospitals and dispensaries will also diminish.
The railway rolling stock should be improved, but I think this could be done gradually. With the present outlook an "Advance-in-Aid" loan to plaaters is unnecessary, and for the reasons given above I do not consider a loan for the improvement of machinery would be advisable.
This should be left to private enterprise, and it is my belief that if a factory owner is satisfied the result will justify the outlay, he will gradually work the necessary improvement from his own resources.
The industry, on account of the large capital required, is becoming less and less a one-man concern, and the tendency is towards centralisation, the smaller factories being gradually absorbed by the larger. The advance of Government money for the improvement of small factories would simply prolong the struggle and the process of centralisation now going on.
The establishment of central factories by Government funds would, I consider. be unfair to those planters who have already improved their factories from their own resources.
1889-1890
132,593
10 43
27,658,899 80
1890
9
02
1890-1891
126,154
9 15
23,086,182
1891
7 99
1891-1892
114,975
9
57
22,008,215
1892
9
78
1892-1893
71,662
12 19
17,471,195 60
1898
9
74
1893–1894
139,640
10 21
28,514,488
1894
9 68
1894-1895
119,572
9
69
23,179,053
60
1895
7 14
1895-1896
142,705
9 75
27,827,525
1896
7 99
1896-1997
152,748
8 24
25,172,870 40
1897
10 84
1897-1898
124,214
@ 15
20,246,882
1898
8
47
1898-1899
183,028
7 12
28,068,187 20
1899
7 85
1899-1900
160,669
8 15
28,188,069
1900
9 10
1900-1901
189,721
8 75
33,201,175
1901
8
40
1901-1902
155,918
7
25
22,521,110
1902
9
A. 4. I am scarcely in a position to give any views of value on the working of the Government departments, but the large increase in expenditure of the Medical and Health Department in recent years seems to give cause for inquiry.
1902-1903
142,420
7 25
20,650,900
1908
8
157
1908-1904
217,648
8
75
29,882,490
1904
8 23
1904-1905
140,207
9 71
27,228,199 40
1905
9
28
The item under Plague Bervice seems a large sum to spend in precautionary measures, the number of cases of plague now occurring in the Colony being so small.
1905-1906
185,959
7
98,019,490
1906
11 02
1906-1907
217,024
60
28,647,168
1907
19 58
A. 3.-1. A capitation tax of R. 1 per head would bring in about Rs. 250,000, but this might be increased
1907-1908
164.182
29,818,844
1908
11 84
if a scale was fixed based on the rent paid or value of the house occupied.
2. An income tax would, I think," be a mistake owing to the trouble and difficulty of collecting it, and no proper return would be possible.
A tax of, say, 8 per cent, on dividends paid by public companies might be imposed. This would be an uncertain acurve of revenue, but I think a very reasonable estimate would be Rs. 75,000.
3. A licence, say, of 50 cents per month on day labourers, would bring in Rs. 252,000.
On 21st April Lord Crewe, in the House of Lords, gave the number of unindentured Indians employed on sugar estaten is 42,000.
Those men contribute nothing to the revenue, and when they are sick they are entitled to gratuitous medicine and treatment at Government hospitals.
4. A tax on rice would be unpopular, but an increase of 15 cents per 100 kilos. would not be such a burden on the poor. This would bring in about Rs. 100,000.
I.
No comments yet.
Private notes are available after approval.