File No. 882.51/680.
The conclusion of this agreement is regarded as a most important step in
the efforts that are being made to bring about reforms in the internal
finances of the Republic. The agreement has the sanction and approval of
the Financial Adviser. In fact, I understand, that
[Page 641]
he was freely consulted about its terms
and provisions. Personally I expect material benefits to come to the
Republic as a result of an effective operation of this agreement. A
verbatim copy of the agreement is herewith enclosed.
[Enclosure.]
memorandum of agreement between the government
of the republic of liberia and the bank of british west africa
limited.
An agreement entered into this 29th day of October, one thousand nine
hundred and fifteen between the Government of the Republic of
Liberia (hereinafter styled “the Government”) of the first part and
the Bank of British West Africa Limited (hereinafter styled “the
Bank”) of the second part.
1. Now it is hereby agreed that from and
after the 1st day of November one thousand nine hundred and fifteen
all moneys collected by and/or paid to the Government, including,
taxes, fines, licences, surtax on import duties, residue of revenue
received from the customs receivership, and in fact all revenue of
whatsoever nature accruing or that may hereafter accrue to the
Government shall be paid into the Bank at its nearest branch or
agency and there placed to the credit of an account in the name of
the Liberian Government.
2. Revenues collected in kind, i. e. ivories, horses, cattle, animals
of any description, or anything else that may be accepted in lieu of
cash, are to be listed on arrival by the sub-treasurer at ports
other than Monrovia and in Monrovia by the general treasurer, and
one copy of such list shall be furnished to the Bank and one to the
Secretary of the Treasury. As and when any or all of these revenues
in kind are disposed of, account sales, duly certified shall be
furnished to the Bank, and the proceeds of such sales paid into the
Bank. Revenue in kind may be disposed of only in one of the
following ways (a) sold for cash or (b) debited to the account of a
Government officer or employee at an agreed price.
3. Pending further legislation, when an amendment may be added to
this clause, all indebtedness certificates received by the
Government in payment of those fines and taxes and licences
prescribed by law shall be paid into the Bank together with cash
collections. No credit, however, will be passed to the credit of the
account of the Government in connection with these indebtedness
certificates, but they shall be entered in a register to be kept by
the Bank, and thereafter cancelled by the Bank, subsequently being
handed to the Secretary of the Treasury against his receipt.
4. Liberian silver and copper shall be received from the Government
by the Bank, when forming part of the Government revenues at the
fixed rate of $4.80 to the pound sterling. At the request of the
Bank, however, the Government will take back the whole or any
portion desired by the Bank when drawing from its account with the
Bank.
5. The account of the Government will be kept at the Monrovia branch
of the Bank, and will be operated upon solely by the Secretary of
the Treasury. Revenues paid in at branches or agencies other than
Monrovia will be transferred by the Bank to Monrovia, and if desired
by the Secretary of the Treasury, and provided safe transport
facilities be available, will be transferred thence to any branch or
agency in Liberia in order to meet the drawings of the Secretary of
the Treasury. The Bank will be previously advised of all cheques
drawn by the Secretary of the Treasury for payment at branches or
agencies other than Monrovia.
6. The Bank will render to the Secretary of the Treasury a quarterly
account of the operations of the Bank under this agreement and
settlements will be made quarterly. As remuneration for their
services under this agreement the Bank will be paid as follows:
For keeping the account of the Liberian Government and for
transferring the Government revenues between ports on the Liberian
coast as stipulated in Section 5 of this agreement, a commission of
three quarters per centum (¾%) upon all moneys paid into the Bank by
the Government. This rate applies to all revenues in kind however
disposed of.
[Page 642]
For keeping a register of indebtedness certificates and cancelling
same, a commission of one quarter per centum (¼%) on the face value
of all such certificates paid into the Bank.
7. It is distinctly understood and agreed that the Liberian
Government during the term of this agreement will confine the whole
of the Banking business of the Government except that of the Postal
Service to the Bank of British West Africa Limited.
8. If at any time during the term of this agreement the Bank shall be
desirous of disposing of the whole or any portion of their business
in Liberia this agreement shall thereupon immediately terminate.
9. This agreement shall remain in force for the term of two years
certain from the 1st day of November one thousand nine hundred and
fifteen, to and including the thirty-first of October one thousand
nine hundred and seventeen.
10. This agreement may be amended at any time by mutual consent of
the contracting parties hereto.
In witness whereof we have affixed our
hands and seals at the city of Monrovia in the County of Montserrado
and Republic of Liberia the day and date first above written.
John L. Morris,
Secretary of the Treasury for the Republic of
Liberia.
Bank of British West Africa Ltd.
By their attorney
R. R. Appelby.
Witnesses:
Reed Paige Clark
.
G. Hope.
