sufficiently to allow of the silver yen which are
current in the Straits Settlements and Malay Penin-
sular being replaced by a coin of equal intrinsic
value at a cheaper price. It is expected by the
Government that the operation of calling in the
whole of the sum may take as much as one or two
Consequently the silver yen must continue
365
to circulate for a considerable period, but the
Japanese Government do not anticipate any difficulty
on this score, as the closing of the Osaka Mint is
expected to produce similar effects to those which
followed on the similar measure adopted in India
with regard to the rupee. They will not sell silver
on the market, and have telegraphed instructions to
their Consuls in London and New York to give publici-
ty to their intention in this respect.
The foregoing is the forecast of Japanese finan-
cial authorities, but I believe there is reason to
suppose that the quantity of good silver in circu-
lating in the Straits is three times what the Japan-
ese government has calculated.
I have &c.
(Signed)
Ernest Satow,