The_Open_Door_deel1

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In these years the debt service represented, together with these
unreduced salaries of the- Fiscal Officers, the following
percentages of total revenue: in 1928: 20?; in 1929: 26?; in
1930: 32?; in 1931: 55? whereas the 1932 figure threatened to be
even higher. President Barclay then declared that though his
Government did not seek to repudiate its obligations under the
Loan Agreement he did not want to endanger the proper
functioning of his Government. Subsequently In December 1932 the
Legislature decided to suspend interest payments and amortization
of the loan "until the revenues of the Government shall have
reached the Sum of $ 650,000.00 annually for two consecutive
years" (6). The -reaction of the Finance Corporation of America/
Firestone and of the American Government and the Agreements of
1935 were dealt with before (see Chapter 3).
In January 19 33 the League of Nations informed President Barclay
that it could not respond favourably to the Liberian request for
assistance unless the Moratorium Act were to be repealed.
After the resignation of President King in December 1930,
President Edwin Barclay had "requested the League of Nations to
assist his country. This request had led to the visit to Liberia
of a three-member fact-finding mission (in June - July 1931)
which was composed of a former French Colonial Governor and
expert in general administration, a Dutch financial expert, and
a British medical expert (7). The report which the League of
Nations published in 1933 was in general very unfavourable to
the Liberian Government. On the country's fiscal affairs it said:
"Among the causes for the growth of the foreign debt, in
no way connected with world economic conditions, may be
mentioned the following: Uaste of public funds in the maintenance
of overstaffed or unnecessary institutions and bureaux;
failure of the Department of justice to enforce payment
of delinquent taxes; failure of the Department of justice
to prosecute Liberian officials for embezzlement or
diversion of puLlic funds and Government supplies; failure
of the LiLerian Government to enforce the payment into the
Treasury of Consular and other fees; payments of funds due
soldiers of the 7roniier 7orce, whose money was collected
Ly Liberian politicians and their friends; failure, to institute
reforms and economies repeatedly recommended by the
7inancial Adviser" (8).
The League went even further and accused the Government:
"On the other hand, the Liberian Government has done practically
nothing to foster or encourage commerce, Or to
open the hinterland to trade, a "law" on the subject passed
in 7930 for the contrary notwithstanding
(meant here is the repeal of the Port of Entry Act - the author
No progress in the uplift of the native Liberian peoples
has been seriously attempted by the Liberian Government,
nor have the taxes collected from the natives been spent
for their Lenefit" (9).
The reported amount of hut taxes paid varied in the 193O's
between 20? and 38? of total Government revenue but actual