882.51/2126
The Chargé in Liberia ( Reber ) to the Secretary of State
[Received November 10.]
Sir: I have the honor to enclose herewith the annual report of the Financial Adviser, R. L.,76 as submitted to the President of Liberia for the twelve-month period from October 1, 1929 to September 30, 1930. This report has not been made public and was prepared for the President’s use in connection with his annual message to the legislature.
The Financial Adviser has reviewed at considerable length the principal financial developments for this period and has stressed the necessity for fiscal reform in order that a larger deficit may not appear during the next budget year. The estimate of revenues for 1931—approximately $772,500—shows a reduction of $238,000 from the budget estimate of $1,010,000 for the current year as submitted by the Financial Adviser in his last report. In addition there is reported to be a deficit of nearly $240,000 which will have to be carried over to the next budget period. This situation is further aggravated by the reduction in native labor personnel employed on the Firestone plantations of nearly 8,000 men, which means a reduction of wages earned equal to approximately 8,000 shillings a day and an equivalent reduction in purchasing power. This labor cut while not permanent is to tide over the period of economic depression, and it is difficult to estimate when an increase may again be counted upon. It is understood that this smaller number of laborers is adequate for the immediate needs of the plantations until the trees are ready for tapping and production begins on a large scale, as no further extension of the development is at present expected.
The Financial Adviser reports that no conclusions have yet been reached in regard to the budget appropriations to be assigned for next year. Under the former Secretary of the Treasury, who was transferred to another Cabinet post on the first of October, a tentative budget was prepared which provided for a general reduction in operating expenses of nearly 66% but without detailing how economies could be effected. Such an arrangement was of course impractical of operation and it is expected that the present Secretary of the Treasury will revise this proposal in consultation with the Financial Adviser. The latter has drawn up a tentative program which provides for the elimination of many office holders and extends the recommendations of the minority report of the special commission—see enclosure to the Legation’s despatch No. 15 of September 18, 1930.76 [Page 411] Subject to the release of the additional $225,000 of loan funds, provision is also included therein for the establishment of a sanitation service at an estimated cost of $24,000, public works described in the Financial Adviser’s report, and an increased allowance for the reorganization of the hinterland administration.
The Financial Adviser has stated that there appear to be at present sufficient funds on deposit in the Treasury to meet the loan interest and amortization payments which are due on November first and to make payments from assigned revenues for the remainder of the present fiscal year. He also reports an improvement in the method of collection of Internal Revenue Hut Taxes in the hinterland, which in March of this year were placed under the supervision of the Supervisor of Internal Revenue. A similar transfer of such collections from the County District Commissioners to officials of the Internal Revenue Department has just been approved by the President. It is estimated that under this improved method an increase in these revenues should follow. For the first year this increase has been calculated at a minimum of $35,000, which it is hoped may later be augmented.
Respectfully yours,