There are sad delays in England about the loan, but I am working hard.
Finally, in January, 1862, in virtue of a convention between Her Majesty the Queen and the Emperor of Morocco, the loan was issued in bonds amounting to £501,200. The terms of the payment were that half of the custom’s duties were to be hypothecated as security, Her Majesty undertaking to appoint Commissioners to receive the customs duties. The Consuls and consular agents at the various ports were directed to act as these commissioners, and the moneys so collected were delivered to the British Representative to be transferred by him to the contractors in London.
At the time the loan was issued, the customs duties were assessed as follows:—
| Imports paying 10 per cent | £91,676 |
| Exports paying 25 per cent | 231,228 |
| Total | £322,904 |
It was expected that this sum would be increased by a duty on exportation of wheat and barley, which would have added another £100,000, raising the total to be paid to the contractors to £211,452[42].
The other moiety of the customs duties was paid to the Spanish Government to cover the remainder of the war indemnity—they also appointing Commissioners.
When the loan was finally paid off in 1883, the returns were—
| Exports | £832,212 |
| Imports | 807,536 |
| Total | £1,639,748 |
as against £322,904, quoted in 1862. This increase was attributable, not only to larger commerce, but also to the improved system introduced at the customs which Mr. Hay persuaded the Sultan to adopt. Hitherto the officials, as was common in Morocco, were a permanent unpaid staff, who were supposed to pay themselves by subtracting a percentage from the duties levied. Under the new system supervisors were appointed, who received a fixed salary, and these officials were changed every three months. This reform worked well. It at once materially increased the revenue derived from customs duties, and, after the loan and war indemnity were paid off in 1883, the Custom House officers continued to be appointed and paid on the same system.
Mr. Hay’s services were recognised by Her Majesty’s Government, and he writes to his wife’s sister in May, 1862:—