Finance during the Occupation
Escapee Denis Vibert report on early months of the Occupation
The States are obliged to supply all labour free of charge according to the requirements of the Germans. They must also provide the hotel and billeting accommodation and food. Consequently Income Tax has risen to 4/6 [22 and a half per cent] in the £. Local rates have also risen to between three and five times.
There are now two currencies circulating in the Island: British and German. The mark is given the value of 2/1d or approximately 9 1/2 to the pound.
Owing to the gradual disappearance of silver from circulation, mainly due to German soldiers taking the coins away as souvenirs, the States have been obliged to print 2/- [two shillings, or 10p] notes. It is expected that further denominations of silver will also be printed.
Some essential food and supplies are purchased from France. The French will not accept sterling and it has been necessary to build up credit in French francs. This has been done in the following manner: In February 1941 the Germans requisitioned all serviceable cars in the Island of the year 1935 onwards. The cars were for export to the mainland [France]. The States paid the car owners in sterling and the Germans paid the States by giving an equivalent credit in French francs. Similarly, when the 1941 potato crop was sold to the Germans for export to northern France, the same financial arrangement was carried out.
Where people had regular incomes from England the Banks are advancing up to two-thirds of their normal income.