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[Page 163]
(3) [4]
"Government desires information why thought necessary continue German Bank Notes as legal tender. Who is responsible for payment, and from what source payment to be made." The following reply has been prepared, and will be despatched as soon as the atmospheric conditions will permit:-
"German Bank Notes have not been declared legal tender, but continuance of circulation has been tacitly permitted. Paper money taken over from late German Administration amounts to £3,368 and most of the currency in possession of Merchant Firms here is Bank Notes, and if declared not legal tender business will be paralysed. Suggest Banking Expert be sent here to advise me on the situation.
About a fortnight ago a very serious complaint was lodged by the Rev. Mr. Cox head of the Methodist Mission in these parts, that he had been shamefully ill treated and thrashed by certain German residents at Namatanai, New Ireland. He stated that he had been taken by an armed party from the house of the local Missionary after dark, and, without any enquiry whatever, was placed over a tub and thrashed by half a dozen Germans with a cane. He submitted himself for examination by the Principal Medical Officer here, and the result bore out fully his contentions as to the flogging he had received.
All but but one of the offenders are now Prisoners here in Rabaul, and I am holding an enquiry into the whole of the circumstances. If found guilty, I shall probably administer to those concerned similar treatment to that meted out by them to the Rev. Mr. Cox before I forward them to Australia as Prisoners of war.
Since the date of my last despatch I have sent an expedition to the Admirality Islands, to hoist the flag and post a small garrison there; I am also taking the opportunity of making a business trip of it as well, by forwarding to these parts on behalf of the Merchants here on payment of freight charges, the goods the goods which they have purchased from Burns, Philp's shipments.
The only other place then left for attention will be Kieta, and this will be taken in hand and a garrison placed there as soon after the arrival of the "Una" as possible.
I have the honor to be, Sir,
Your obedient servant,
(sgd.) William Holmes, Colonel.
Administrator.