CO885-24 — Page 16

PUBLIC RECORD OFFICE

19

Reference :-

༄། ༴། ་། ། ་། mw m mimC.O. 885

24 PUBLIC RECORD OFFICE, LONDON

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

SIR,

20

BRITISH GUIANA.

Enclosure in No. 11A.

Treasury Chambers, 22nd September, 1914. THE Lords Commissioners of His Majesty's Treasury have had before them Mr. Read's letter of the 8th instant enclosing a copy of a telegram* received from the Governor of British Guiana relative to the difficulties experienced in effecting the shipment of gold from that Colony.

In reply I am directed to state, for the information of Mr. Secretary Harcourt, that my lords understand that the Bank of England would be willing to conclude an arrangement whereby credit would be given in this country for gold deposited for the time being in British Guiana, provided that full responsibility for the custody of the gold until it is found convenient to export it is borne by the Colonial Office I am to enclose herewith a copy of a memorandumt setting forth the con- ditions under which a similar arrangement was agreed upon in the case of gold from the South African mines.

I am to suggest that, should Mr. Harcourt approve this suggestion, he will place himself in communication with the Bank of England with a view to making a similar arrangement.

36504

SIB,

No. 12.

I am, &c.,

T. L. HEATH.

COLONIAL OFFICE to THE BANK OF ENGLAND.

[Answered by No. 13.]

Downing Street, 2nd October. 1914. WITH reference to Colonial Office letter of the 25th September,‡ I am directed by Mr. Secretary Harcourt to transmit to you the accompanying memorandum,§ which it is suggested should form the basis of the arrangement between the Bank of England and the Government of British Guiana for the purchase of gold in the latter Colony. Mr. Harcourt understands, from a verbal communication, that the arrangements set out in the memorandum will be acceptable to the Bank of England, but he would be glad to receive a definite assurance to this effect, in order that the necessary instructions be given to the local Government.

2. "As the next mail for British Guiana is due to leave on the 6th October, I am to request the favour of an early reply.

may

21

BRITISH GUIANA.

Enclosure in No. 13.

MEMORANDUM.

THE Government of British Guiana having agreed to receive, on behalf of the Bank of England, deposits of gold at Georgetown, the Bank are prepared to purchase on the basis of £3 178. 9d. per ounce standard, such gold as may be deposited to their order in the name of the Government Secretary of British Guiana, with either of the following banks at Georgetown, viz. :—

The Colonial Bank,

The Royal Bank of Canada.

Deposits must be made free of expense, including all telegraphic charges, and an amount, representing 97 per cent. of the value certified on the basis of the reports of the Official Assayers of either of the banks named, will be paid on account, the balance to be adjusted on the delivery of the gold in London; all expenses up to the time of its delivery at the Bank of England to be paid by the despositor. Deposits must be of a minimum value of £5,000. The time of shipment to be entirely at the discretion of the Bank of England.

The Government of British Guiana have undertaken to advise the Bank of England by cable, through the Crown Agents for the Colonies, of the name of the depositor, the name of the bank where the deposit has been made, the full value as certified by the Assayers in British Guiana, and the name of the person to whom payment is to be made in London.

Payment will be made by the Bank of England only on receipt of advice from the Government of British Guiana.

The foregoing is subject to such minor alterations or additions as the Govern- ment of British Guiana may desire.

Chief Cashier's Office,

Bank of England,

5th October, 1914.

39583

No. 14.

38267

SIR,

No. 13,

THE GOVERNOR to THE SECRETARY OF STATE. (Received 13th October, 1914.)

I am, &c.,

(Confidential.)

H. J. READ,

SIR,

for the Under-Secretary of State.

THE BANK OF ENGLAND to COLONIAL OFFICE.

(Received 8th October, 1914.)

Bank of England, London, E.C., 5th October, 1914. I BEG to acknowledge the receipt of Mr. Read's letter, No. 38504, of the 2nd instant, and, in reply, to say that the suggested arrangements for the deposit of gold purchased by the Bank of England in British Guiana are quite acceptable to the Bank. A slight alteration has been made at the end of the first paragraph of the memorandum dealing with the question, an altered copy of which I enclose.

It is understood that the Bank of England will be informed as soon as the arrangement may be considered in force.

I am, &c.,

J. G. NAIRNE,

Chief Cashier.

• No. 9. + Not printed. ¦ 36504: not printed.

See enclosure in No. 13.

No. 12.

Government House, Georgetown, Demerara,

27th September, 1914.

I HAVE the honour to acknowledge the receipt yesterday of the following telegram* :-

"Reply will be sent as soon as possible to your telegrams 6th September and 23rd September.t Report by post whether you are satisfied that Royal Bank has in general tried to give reasonable facilities in the circumstances." 2. At the time of my first telegram, I let it be known that I was in tele- graphic communication with you on the subject of the shipment of gold, and the following day I gathered that rather better terms were being granted, and, in con- sequence, gold was shipped by the mail of the 13th instant of £28,580 value, the charge for freight and insurance, including war risk, being reduced to 34 per cent. 3. The Bank is continuing to buy raw gold, but it will only take charge of gold at the depositor's risk, for fear, I understand, of an enemy raid on the town; and I understand it charges 6 per cent. on advances. I cannot say that, consider- ing all the circumstances, the charges are very unreasonable, but as the margin of profit in gold mining has been very much reduced by the increased prices of food- stuffs, any increase above the usual charge is severely felt.

4. I can send a fuller report by next mail; there is no time to make new inquiries this week.

* 86504.

No. 9, and 36504: not printed.