PUBLIC RECORD OFFICE
Reference :-
C.O. 882
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
Mr. W. E.
Marwell, C.M.G.
5 July 1892.
COLONIAL CURRENCY COMMITTEE :
10. There are exports from the Straits Settlementa to England, to a considerable extent, are there not?— Yes, especially tin, and local produce of various kinds, 11. As between the Straits Settlements and Java has the exchange varied according to the silver
market ?—Yes.
12. Has there been, do you know, a complete corre- spondence, or is it merely that the tendency has been to fall and rise with the fall and rise?—I have not watched the course of exchange at all; but the currency in Java being in florins, guelders, with a gold standard, is not subject to fluctuation, whereas, of course, the Mexican dollar is; and the transactions, therefore, most vary according to the rise and fall of silver.
13. With Siam how is the exchange ?-In Siam the currency is tikels, and there, again, it is subject to fluctuation according to the price of silver.
14. Has Siam a gold standard ?—No.
15. Silver ?—Silver. I am not quite certain what the value of a tikel is. I am not really acquainted with the course of trade in Siam itself.
16. But there, if it was both silver, they would rise and fall together-the exchange would be steady ?---- Exactly.
17. In China the Mexican dollar is also current?— Yen, at its value in silver.
18. That is to say, the dealings between China and the Straits Settlements would not be affected by the fall in the price of silver ?—Not at all.
19. Then the transactions which would be affected by it are transactions with Java and with the United Kingdom, speaking roughly ?—That is so; and with India, under the new arrangement.
20. Is there much trade between the Straits Settle- men's and India?-The trade between the Straits Settlements and India is, I should say, insignificant, except as regards opium; the opium trade is very important.
21. Do they buy opium from India?-Yes, the Government sells to a Chinese monopolist the right of manufacturing the opium into the drug-to turn it into the form in which it is consumed by the smoker, and he, therefore, is the largest importer, and he is bound to Government, In consideration of this monopoly, to pay a certain sum of dollars per annum into the Treasury. He is further bound by his contract to sell to the consumer at or within a maximum retail price. In consequence of the recent action of the Indian Government, the monopolist or "Farmer "will probably have to pay more for his opium in India, and he will, therefore, very likely come to the Government and say, " You must reduce your terins, and allow me to pay you less than my contract requires me to pay, "or else you must allow me to raise the maximum " and sell it to the consumer at a higher retail price." 22. Are you able to form any opinion whether, if the maximum were increased, on such an appeal, the seller would be able to get his price ?—I think he would, but I am not quite sure. We should be told, possibly, that there would be danger of a disturbance of the pence on the part of the Chinese population in consequence of an unpopular rise in opium; or that the danger of smuggling would be so much increased that the farmer could not make his farm pay.
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23. Is there much danger, do you think, of smuggling ?—Yes, very considerable, owing to the great facilities for smuggling which present them- Helves all round Singapore and the other Settlements.
24. Does it go on at present?-Yes, to a great extent. The farmer has to protect himself; he has his own protectiva amevice.
25. (Mr. Courtney) Is Singapore itself a free port -Singapore itself is a free port.
26. Therefore there is no Government supervision of imports ?—None; there is a registration of imports and exports.
27. (Mr. Meade.) Does the farmer now charge the highest legal price, or cows he make a charge short of that?--He charges the highest ; that in my impression. I am pretty certain it was to a short time ago.
28. (Mr. Carrie.) Do the Chinese in the Straits Settlements consume Indian opium ?—Yes, I think, exclusively.
29. Have you observed that the price of Indian opium has fallen from 1,200 odd to 990 rupees per chest at the last sale ?—No, I have not noticed that, I was anxious for information about it. I was told yesterday that the quantity just sold was only five chosts. I understood that the reason was that the purchasers would not pay an enhanced price.
30. It is announced in the papers; it is sold at 990 rupees a chest ?—Indeed!
81. (Mr. Courtney.) What is the smuggled opium- where does that come from?-The smuggled opium is Indian opium, prepared and cooked, outside in the in the shape in which it is smoked. islands, and then imported in the form of the drug,
89. (Chairman.) Then the person affected by that is the farmer ?—Yes; the monopolist.
it is all imported Indian opium, and probably has 83. It would affect the Indian as well?—Not at all;
passed through the Straits Settlements.
34. (Mr. Currie.) Then is this monopolist a buyer at the monthly sales in Calcutta ?—Yes.
35. Is he a native of China ?—Not necessarily; I think generally he is a British subject, born in Singa. pore or Penang.
36. (Chairman.) Is there a large importation of the drug into the Straits Settlements ?--Very large- of opium. Besides the opium farmers of Singapore, Penang, and Maincos, there are the opium farmers of the various native States of the Peninsula, and the whole of the Peninsula is practically supplied from Singapore.
37. And all with Indian opium ?—And all with Indian opium. Then there are the English merchants who import opium in order to export it to Siam and elsewhere.
88. (Lord Farrer.) Does the farmer pay the Straits Government a fixed sum ?—Yes, a fixed num; the farm is sold every three years.
39. Every year it is settled afresh ?—No; every three years.
40, (Chairman) Can you give us an idea of what sum he will pay ; of course it may vary, but something like the sum ?It is here in the Blue Book--Opium, Singapore, 1,368,000 dollars; Penang, 852,000 dollars. That is, I see, opium and spirits-it is not opium exclusively.
41. (Lord Farrer). And that is what he pays to the Government, is it ?—That is what he pays to the Government for opium and spirits.
42. (Mr. Currie.) And the quantity ?—I could get it at once from the Straits Settlements Blue Book; there is a table at the end.
43. (Lord Farrer.) What is the whole revenue of the Government ?-Between 3,000,000 and 4,000,000 dollars.
44. (Chairman.) That makes 2,000,000 dollars of it, does it not?-Yes, it is the principal item of revenue the farm of opium and spirita.
45. (Sir R. Welby.) Are they put together, the opium and spirits?—Yes, they are here under the hoad of "Licenses."
48. (Mr. Meade.) I forgot, at the Straits, how long is the farm let for; is it three years?—Three years generally.
47. (Chairman.) You could give us the propor tions of what is opium and what is spirits ?—I can (looking at the book) from the Blue Rook. The farms appear to have been let together, and so the amount of opiuni and spirita are not distinguished. It says: "Singapore: Opium and spirits, 1,888,000 dollars; "Penang, 852,000 dollars; Malacos, 144,000 dollars; "total 2,364,000 dollars." The two farm ware let to the name man, in this instance, for four years from the 1st January, 1891. It usually is for three years. In consequence of the breakdown of the farm the farmer made an appeal to the Government for another year; I think Sir Frederick Dickson,
MINUTES OF EVIDENCE.
when he was administering the Government, sanctioned the extension.
48. (Mr. Monde.) Then what is the result, that the terin lasts for how long ?-The present term is four years from the 1st of January, 1891.
49. Therefore you are bound to him to the lat January, 1895 ?—Yes.
50. (Mr. Currie.) But you cannot tell us how many chests of opium?—Yes, we can tell you that, I think. I do not flud it here, but I am sure it can be ascertained in the office.
51. (Chairman.) Then can you give us the whole revenue from the opium, and the proportion which that bears to the whole revenue of the Straite Settle- ments?—I cannot exactly, here, because opium and spirits are lumped together.
52. You cannot separate them ?—I cannot separate them. If they are let to the same people, there is very possibly only one contract.
53. Only one eontract for the two ?-Only one contract for the opium and spirits.
54. And they are lumped ?—It is probable that that
is ao.
55. Where do the spirits come from? Are they made on the spot 7-Some are manufactured on the spo, some are imported from China-some from Europe.
56. Not from India ?--No.
57. (Jfr. Fairfield.) I think it is generally con- sidered, roughly, that two-thirds of the revenue comes from the various farms ?—Yes, I should say so.
58. I think the whole revenue is slightly under 4,000,000 dollars ?—In the revenne estimates for this year, 1893, licences (that is, opium and spirits, and pawnbrokers') appear at 2,431,800 dollars; my, practically, two million and a half. The total revenue of the colony in 2,826,000 dollars.
59. (Chairman.) Is pawnbroking lamped with opium and spirits ?—No, it is quite a separate con-
Tract.
60. And is that a large part of it?-No; the pawnbroking lisences only brought in in 1891 48,245 dolla 8.
61. Then we may neglect it ?--Yes.
62. (Mr. Fairfield.), I think that opium being a thing that is consumed by natives, the farmer cannot practically enhance the price, even if the dollar goes down; neither will the quantity bought increase, sa that the fall in silver has a permanently adverse effect on the revenue of the Straits Settlements ?—I think that woukl be so; there would be a permanently adverse effect. I do not see, perhaps, why the retail price should not be raised a little.
63. (Mr. Currie.) Is the price for opium always the same? No, the price in India varies.
64. I understand that the contractor takes the risk. He buys the cheats of opium in Calcutta, but he con- tracts to give a fixed price in the Straits Settlements? -That is so; he takes the risk.
65. Does that fixed price never vary, or does each separate contract have a different fixed price ?—It is liable to vary, it is mere matter of contract.
66. I mean to the consumer ?—Yes.
67. (Mr. Fairfield.) Are there not different qualities of opium, high class and low class, which ho sells at different prices; I think there is choice opium and common opinm ?—I do not think that in the contract there is any difference.
68. It is always at a legal maximum ?—I think the contract only specifies one maximum, and the farmer is supposed to lodge a specimen bottle of the pre- Jured opiam.
69. I believe there is some apprehension on the purt of some officials that rise in price to the retail consumer would involve what they call a danger to public tranquillity, that there might be something like riot ?-I do not think so; I have not myself any apprehension on that score.
70. I only mean that I have heard it ?—Yes, I have heard it mentioned too. It is quite possible that the
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Mr. W. E. Maxwell, C.M.G.
argument would be used by the Chinese monopolist and his friends.
71. And does the consumption of opium entirely depend on the existence of what they call divans or dens?-Oh, not at all.
72. A man can smoke it himself ip private ?—The greater part of the opium smoking is done in private houses; a man does not go necessarily into a divan or den to smoke.
73. The Government has been under the necessity of diminishing the opium dens throughout the colony; we bave practically ordered them to be diminished in number? Yes, that is so.
74. You do not think that that would adversely affect the receipts?—Yes.- somewhat perhaps.
75. The opium divan is supposed to be for the sota?-For the mon who are without homes for the
day. For instance, men who come into the town to sell goods and are all the day in the market, who have no homes of their own to go to; they are all day in the market. If they want to smoke opium, they would go to a public smoking house.
76. (Sir R. Welby.) I gathered from what you maid just now that you are not afraid of a disturbance in consequence of a rise of price in opium but is it practically on the cards to raise the price of opium to the retailer in case the revenue falls ?-A very large in- crease would very likely frighten the Chinese popula- tion and create a riot; but a small rise would have no such effect. We had an instance of disturbance once in a native State, where there was an opium riot because the population-the mining population-were ap prehensive that a farm was about to be introduced in a place where before they had had free liberty to cook opium as they pleased, and then there was a riot.
77. (Chairman.) Do the same people drink spirits that consume opium, or are they different class altogether ?-Oh, the opium smoker will also con- sume spirits.
78. If opium becomes dearer or scareer, do they take to spirits more, do you think ?—No, I think not; I do not think so. It would probably result in a general rise of wages. A man who is given to opium must have opium, and if all agricultural coolies and mining coolice as a body-must have opium, then rise in the price of opium would probably end in the they may be able to buy it. employer having to raise their wages in order that
70. Is this consumption of opium general amongst the people; do the greater part of them take opium? -W, have no statistion, but I should think it is certainly very general; I could not say exactly what proportion.
80. La any opium made in the country ?—None. 81. Any opium imported from anywhere except India ?--I think not..
82. (Mr. Meade.) Malays smoke opium as well as Chinamen ?-Only a small proportion of Malayı.
83. A small proportion ?-A very small proportion in the British Settlements, a few Malays in the towns of the native States, and a few of the richer men and better class men; some of the Rajahs set a very bad example in that respect. I must correct what I said just now about the importation being exclusively from India. I see Turkey down here, but only for a small amount. These are the returns for 1887. The num- bar of chests imported were: Singapore, 8,700 cheats this is Benares opium-value 4,812,025 dollars; Penang, 3,786 chests, value 1,842,798 dollars: Malaces, 126 chests, value 57,854 dollars.
84. (Mr. Currie.) Benares is much the largest, is it not ?-Much the largest.
83. But then if it is a monopoly, no opium can be imported except by the contractor 7-It can be imported for re-export.
86. But not for consumption ?-Not for consump- tion, unless it can be imported and sold to the monopolist. These are the figures, Bonares, Patna, Turkey.
$7. (Mr. Courtney.) It is mainly Indian ?—Mainly Judian.
5 July 1993.
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