L
། ༄། ། །
PUBLIC RECORD OFFICE
Reference :---
C.O. 882
5
PUBLIC RECORD OFFICE, LONDO
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC COPYRIGHT PHOTOGRAPH—NOT TO
996
COLONIAL CURRENCY COMMITTEE:
In connerion with paragraph 129 of this Report, refering to the effect upon Mauritius and Ceylon of the action taken by the Indian Government in closing its mints, my attention has been called to the conclusions arrived at by the local Currency Committee, whose report was enclosed in Sir J. P. Hennessy's Despatch, No. 34, of 10th January 1889, and I have to observe that I infer therefrom that there will be no desire on the part of Mauritius to sever its connexion with India in ourrency matters.
I have, &o. (Signed)
Sir H. E. II. Jerningham, K.C.MG.
No. 8.
{Answered by No. 6.]
BIPON.
81 W. ROBINSON to the MARQUESS OF BIPON.
(Dated Hong Kong, July 14.)
TELEGRAPHIC.
Banks (and) Chambor (of) Commerce urge Japanese yen legal tender concurrently with Mexican dollar; I agreo. May I proclaim !
No. 4.
8m C. C. SMITH to the MARQUESS OF RIPON. (Dated Singapore, July 14.)
[Answered by No. 5 and No. 7.]
TELEGRAPHIC.
Great anxiety respecting position Currency. Chamber (of) Commerce arging consideration remedial measures with a view to securing greater fixity gold exchange. Position complicated through fear of future scarcity coin.
No. 5.
The MARQUESS OF RIPON to BIR C. C. SMITH. TELEGRAPHIC.
July 15th, 1899.—Silver question under consideration by Currency Committee. I will communicate with you further after next meeting, fixed for 19th July.
Fear of scarcity coin probably unfounded; Mexican mints not closed; large shipments of silver from home are being made to Bingapore and other Eastern porta.
No. 6.
The MARQUESS OF RIPON to Bin W. ROBINSON. (Beat July 19.)
[Answered by No. 8.]
TELEGRAPHIC.
Referring to your telegram of 14th July, Colonial silver question under consideration by Currency Com. mittee. Heport fully by telegraph reasons for legalisa- tion of yen, having regard to objections mentioned in your predecessor's letter, 6th June 1887, to Her Majesty's Ambassador at Tokyo.
If scarcity (of) dollars apprehended, I may say that report of closing Mexican minta has been contradicted.
No. 7.
The MARQUESS OF RIPON to Sin C. C. SMITH. (Sent July 19.)
[Answered by No. 9.] TELEGRAPHIC.
Report fully by telegraph what are remedial measures suggested for securing greater fixity in rate of exchange. Would such mesures probably meet general acceptance amongst Natives and Europeans? Great difference of opinion here amongst those trading with trails Settlements.
No. 8.
Sta W. ROBINSON to the MARQUESS OF RIPON. (Dated Hong Kong, July 21, 1803.)
[Answered by No. 10.] TELEGRAPHIC.
Referring to your telegram of 20th (19) July, Jen current Hong Kong and 8traite Settlements, uniformity in valun; appreciated very much by Chinese, objec- tion 1887 inapplicable. Cannot obtain suficient
number of Mexican dollars from home or United States of America. Banks importing large quantities of yen. Export duty on Mexican dollars apprehended. Legalisation of yen strongly recommended in any one.
No. 9.
SIR C. C. SMITH to the MARQUESS OF RIPON. (Received Colonial Office, July 24, 1893.)
· [Answered by No. 11.]
TELEGRAPHIC.
July 24th, 1893.-Referring to your telegram of 19th July, great difference of opinion here regarding car- rency. Impossible to state remedial measures which will be approved of by Europeans and Natives ;_ have appointed committee, consisting of Government officials and Members of Chambor Commerce.
No. 10.
The MARQUESS OF RIPON to Bin W, ROBINSON.
(Bent 96th July.) [Answered by No. 16.]
TELEGRAPHIC.
Beferring to your telegram of 21st July, Currency Committee earnestly deprecate legislation in a hurry : they do not believe that dollars will be soarce, but if you are hard pressed I would not refuse to sanction legalisation of yen, which, however, should be done by Order in Council instead of (by) proclamation.
Report fully by post.
Also state whether yona circulate in South Chios.
No. 11.
The MARQUESS OF BIPON to 8m C. O. SMITH. (Bent 26th July.) TELEGRAPHIC.
(1) agree to appointment of committee to consider currency, but it must hear evidence representing all parties interested, including Natives and Chinese mer- cantile community, and those interested in planting and mining property in Native States.
Add Maxwell on arrival.
No. 12.
Sua C. C. SMITH to the MARQUESS OF RIPON. (Received August 7, 1898.)
(No. 219.)
MY LORD,
[Answered by No. 13.]
Government House, Singapore,
July 12, 1893.
As the mail is closing, I have received the enclosed important letter from the Chamber of Com- merce on the subject of the currency.
I do not doubt that the matter is already engaging the very serious attention of Her Majesty's Govern-
ment.
(Signed)
I have, do.
CEOIL O. SMITH. The Most Hon. the Marquess of Bipon, K.G.
&o.
&c.
do. Colonial Office.
812,
Enclosure in No. 12.
Chamber of Commerce, Singapore, July 11, 1893.
WITH referenos to your letter of Sed February intimating that his Excellency bad forwarded to the Secretary of State a copy of the resolutions passed by the Chamber of Commerce respecting the currency,
I am directed by the Committee respectfully to inquire whether any communication, since that con veyed to the Chamber in your letter of 8th April, has been received from his Lordship indicating that the question would be, or was being, considered in con nexion with the contemplated change in the Indian standard. What was at that time regarded only as a possibility has since become an accomplished fact; the Indian mints were closed on the 26th ultimo, this sotion was immediately followed by a rapid decline in our exchanges, leading to a disturbance of trade, more especially with India and Europe, and, although meh dealine has for the moment been arrested, the net result
APPENDIX II.
leaves the currency still more depreciated, involving. sa it cannot fail to do, confusion and heary permanent lossos.
The Chamber naturally regards with much appre hension the present position as affecting the commerce and property of these Settlements, accentuated as the situation is by the contemplated repeal of the Sherman Aot, which it is stated the American Government will propose as the meeting of Congress early next month
The further serious fall in the value of silver that would then ensue, followed, in the event of the spare bullion being offered on the market, by an immeasurable decline in the value of the metal, could not fail to prove disastrons to the general economic and commercial interests of the Colony, and it is in this view that the Committee feels justified in urging upon the Govern. ment the closest and earliest consideration of the subject which, in their opinion, admits of no further delay.
I enclose a return showing the proportions of the Colony's trade with silver and gold standard countries during 1892, amounting respectively to 119 million dollars and 126 million dollars, exclusive of treasure movements.
If, as in future must be the cass, India had been closed amongst the gold standard countries, the figures would have stood-
Gold countries Silver
11
148 million dollars. 97
and this fact alone renders it important to consider whether greater fixity of value in all trade operations with the gold standard countries will not secure the Colony from evils of larger magnitude than if con. tinuing to drift with the fluctuating and depreciating values of an unprotected silver currency.
It is not possible, within the compass of a letter, to enter into speciño details, but it appears to the Com. mittee that so long as the Mexican and Japanese dollar is allowed free circulation for commercial purposes, no
Other British Possessions
Belgium -
France
Germany -
Holland
Italy
Austria -
Netherlands India
United States of America
Other Countries -
Total Trade
Exclusive of Treasure
87
great dislocation of trade need be apprehended in pur. suing the Indian lines of policy.
The Chamber has on several occasions addressed the Government as to the anomalous position in which the Colony is placed in not having a currency of its own, and in being entirely dependent upon two foreign coun- tries for its supply of alfver coin.
Merican dollars are at the present moment dificult to procure in London, and are relatively dearer than bar silver; telegrams reporting that Maxico contem- plates taking motion to protect itself would apparently point to an increased seignorage, and if Japan ware, in consequence of the increased demand thrown upon its mint, to follow the mme canse or to rednes applies, the farther loss and confusion entailed upon the Colony would be great.
it
We quite recognise that the subject of the currency is very complex and intricate one, calling for careful examination on all sides.
The Chamber is not prepared, nor in position at the present moment, to commit itself absolutely to any particular course.
The Committee, however, recognising the far-reach- ing issues involved, desire, with all the force at its command, respectfully to beg that the Governor will be pleased to telegraph to the Secretary of State, repre- senting the great anxiety that exists throughout the entire community, and praying, at the hands of thono best qualified to "deal with" them, the consideration of such remedial measures as may secure the Colony and ita commerce from financial dimmater.
I have, do. (Signed)
The Hon. A. P. Talbot,
Acting Colonial Secretary,
Straits Settlementa. TRADE OF THE STRAITE SETTLEMENTS in 1899. Hundreds omitted.
IMPORTE.
C. SHELFORD,
Chairman.
EXPORTS
Singapore. Penang. Malacca. Ringapore. Penang.
DERED
Malacon.
WITH GOLD COUNTRIES.
United Kingdom -
17,518
4,687
147
729
1
15,838 645
0,947
18
501
156
983
1,090
639
249
6,478 8,950 5,361
145 75
274
4
405 49
288
56
18,109
8,117
405
805
599 20,487 9,134
97
8,256 1,783
760
407
40,993
10,100
61,391
20,004
90
84,869
8,744
235
$4,105 13,915
68
WITH SILVER Countries.
Other British Possessions
British Todia and Burmaḥ Hồng Kong
11,150
9,765
4,046
1,707
9,977
5,311
6,507
2,392
1,083
77
120
50
4,109
658
1,619
1,896
845
16
144
457
6,991
63
4,808
16,696
9,000
7,700
0,168
6,620
3,300
199
4,490
1,018
1,776
1,000
698
639
549
73
60,939
29,028
907
24.049
19,060
上
37,599
28,307
908
25,893
14,389
160
Total.
:
48,384,000 75,083,000
$6,039,000 40,444,000
118,919,000
14,485,000
E 8
China
Japan
French Indo-China
Malay Peninsula -
Sarawak -
Siam
Other Countries
Total Trade
Exclusive of Treasure
Total value of imports of merchandise from gold countries
N
H
exports
to
"
Imports
from silver
"
exports
W
to
#
Page 330Page 331
APPENDIX II,
39
PUBLIC RECORD OFFICE
Π
Reference :--
C.O. 882
5 PUBLIC RECORD OFFICE, LONDO
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC COPYRIGHT PHOTOGRAPH-NOT TO
88
No. 13.
COLONIAL CURRENCY COMMITTEE:
The MARQUESS OF RIPON to Six C. C. SMITH.
(No. 211.)
Downing Street,
August 12, 1893.
8Jx,
I HAVE the bonour to acknowledge the receipt of your Despatch, No. 219 of the 12th ultimo, forwarding a lutter from the Chamber of Commerce on the question of the currency.
I observe that the Chamber does not make any definite suggestion for remedying the state of things to which it refers, and pending the receipt of the report of, and evidence taken by, the local Currency Com- mittee now sitting, I think it bettor to defer any expression of my own views on the subject.
I lave, do, (Signed)
Bir C. C. Smith, G.C.M.G.
No. 14.
RIPON.
SI O. C. SMITH to the MARQUESS OF BIPON. (Received August 21, 1893.)
No. 229.
MT LORD,
Government House, Singapore,
July 25, 1993.
I HAVE the honour to acknowledge the receipt of your Lordship's telegram of the 19th of July, on the bject of the currency which, as translated, was as follows:-
"Report fully by telegraph what are remedial mesaurės suggested for securing greater fixity in rate of exchange. Would such measures probably meet general acceptance amongst Natives and Europeans? Great difference of opinion here amongst those trading with Straits Settlements."
2. To this, after roference to the Chamber of Com. inerce, a copy of whose letter is enclosed, I sent the following reply:-
"Referring to your telegram of 19th July, great difference of opinion here regarding currency. Im- possible to state remedial measures which will be approved by Europeans and Natives. I have appointed Committee, consisting of Government Officials and members of Chamber of Commerce."
3. I have appointed on the Joint Committee the Colonial Secretary, the Colonial Treasurer, and the Auditor General. The Chamber of Commerce will nominate its strongest members, and the meetings will begin as soon as possible.
In taking this action, I have adopted the best coarse for ascertaining local opinion on this most intricate question, but I cannot say that I expect any satisfactory or useful result. If Her Majesty's Govern ment, which has at its disposal the most experienced and skilled advisers, who can obtain and have doubtless obtained all possible information as to the details of the trade of the Colony from those in London and Man- chester, who are directly concerned in it, cannot come to a conclusion as to what should be done in the present crisis, I am afraid that there is little prospect of a solution of our difficulties being found. In this Colony there is no one who can be accepted as being able to offer a really useful opinion on the subject, more expecially in view of the fact that our trade is not with nilver-using countries only, but is complicated by the further fact that the trade is with India on the one side, and with China and Japan on the other, rupees being used in the socounts with the former, and dollars with the latter, countries,
I have, &c.· (Signed) CECIL C, SMITH.
The Most Honorable
FIL,
The Marquess of Ripon, K.G.,
&c. do. do. Colonial Office.
Enclosure in No. 14.
The CHẠM OF COMMERCE to the COLONIAL
SECRETARY.
Chamber of Commerce,
Singapore, July 22, 1893.
I HAVE the honour to acknowledge receipt of letter of 20th instant, asking for the views of the Chamber of Commerce relative to the remedial monstron which, in their opinion, should be adopted
for securing greator fixity in exchange, in order to ble his Excellency to reply to a telegram which has n received from the Becretary of State on the bject.
In reply, I have to state that, as is the case in England, considerable difference of opinion exista amongst the merchants here as to what particular palliative steps should be taken.
In dealing with such an important and far-reaching question, the committee would not be justified in urging views not unanimously acquiesced in by the Chamber, which, moreover, is not in a position to express the views of Natives or of the Europeans outside of its own body.
I am respectfully to suggest to you, for the con- sideration of his Excellency, whether it would not be of advantage that a committee, consisting of the #nancial officers or others of the Government, should be with the least possible delay appointed to examine the question in all its bearings, and to associate with them representatives of the Chamber as well as of the general community.
I have, &c.
(Signed) T. SHELFORD,
Chairman.
The Honorable A. F. Talbot,
Acting Colonial Secretary. Biraits Settlements.
No. 15.
SI W. ROBINSON to the MARQUESS OF RIPON. (Received August 29, 1899.) (No. 159.),
MY LORD MARQUESS,
Government House, Hongkong, 21st July 1893.
WITH reference to my telegraphic despatch of tho 14th instant, to Your Lordship's reply of the 19th instant, and to my further telegram of this date, copies of which I attach, I have the honour to transmit for Your Lordship's consideration the enclosed copies of two letters which have been addressed to me by the Honourable J. J. Keswick, in his capacity of Director of the Hongkong and Shanghai Banking Corporation and of Chairman of the Chamber of Commerce respec- tively, on the subject of making the Japanese yen legal tender in this Colony.
I also enclose a copy of a report of the proceedings at a meeting of the latter body, which was held on the 12th instant to consider the question of the local currency and at which the Hongkong and Shanghai Bank and the Chartered Bank of India, Australia, and China, and the leading firms in the Colony were represented.
2. From these documents Your Lordship will see that there is already a considerable scarcity in the supply of Mexican dollars procurable in the London Market, and in the United States of America, and that there is a general apprehension of a greater scarcity in the near future. The reasons for this apprehension are clearly set forth in the report of the proceedings referred to, and I entirely concur in the resolution unanimously adopted by the Chamber of Commerce, that the Japanese yen be adopted as legal tender in the Colony, at least a tentative and precautionary measure against possible contingencies.
3. With regard to the reference, made in Your Lordship's telegram, to Major-General Cameron's letter of the 8th June, 1887, to Her Majesty's Minister at Tokyo, I beg leave to point out that the decision of this Government as conveyed in that letter was based upon the views of the Chamber of Commerce as expressed at that time, the reason for the objection to the legislation of the yon being that that coin was not theu generally accepted by the Chinese. Since that time circumstances have considerably changed, a fact which is evident from the change in the views expressed by the Chamber of Commerce, and I am informed that the yen is most highly appreciated on socount of its uniformity of valau for melting purposes, and is now readily accepted by the Chinese in all the Treaty porta.
4. Under these circumstances I trust that Your Lordship will authorise me to give effect to the resoln- tion of the Chamber of Commerce by legalising the Japanese yen as current coin in Hongkong.
I have do.
(Signed) WILLIAM ROBINSON. The Right Hon. the Marquess of Ripon, K.G,
&q.
&c.
40.
Enclosure 1 in No. 15.
Mr. J. J. KESWICK to GOVERNOR OF HONGKONG.
So,
Hongkong, July 7, 1898. In reply to your Excellency's note of the 5th instant, I have the honour to inform you that I submitted it to the directors of the Hongkong and Shanghai Bank at the Board Meeting which took place at noon to-day.
The Directors and Chief Manager were unanimously of opinion after a full discussion of the question that it is extremely desirable that the Japanese yen should be made legal tender in Hongkong, in view not only of the fact that it is already current in the Colony and in the Straits Settlements, but also because there is a noosaxity to legalize it on account of the possible curtailment of the supply of Mexican dollars.
The history of the yen has thus far been entirely satisfactory as to uniformity of value for melting par- poses, which recommends it to the Chinese, who estimate it only by that standard; and the supply being main- tained it will be an exceedingly useful addition to the "legal tender" of the Colony,
In reply to the inquiry in Your Excellency's note as to whether the Government should take any steps in regard to the Chinese dollar and subsidiary coins the Directors of the Hongkong Bank did not specifically express their views, but I gathered from "desultory remarks made, that it would be desirable after due notion, to make an intimation which would reach the Chinese, that neither are “legal tender " in the Colony, and I may venture to point out that there is room for considerable loss to the public through the tacit admis. sion to currency of these coins, for the uniform value of which there is no guarantee whatever.
Thanking Your Excellency on behalf of the Directors of the bank for the opportunity afforded them of expressing their views in thile matter, and for the interest you take in it,
His Excellency
I have, &c.
(Signed)
Sir William Robinson, K.C.M.G.
J. J. KrawICK.
Enclosure 2 in No. 15. CHAMBER of Coxon to GoFELSOR or Honekone. Hongkong General Obamber of Commerce.
Hongkong, July 18 1893.
SIE,
I HAVE the honour to inform Your Excellency that at a general meeting of the members of this Chamber held yesterday the following resolution was unanimously adopted :-"That this Chamber move the Government **to make the Japanese yen legal tendor in this Colony." The proceedings at the meeting to consider this important subject will no doubt be of interest to your Excellency, and I beg to send herewith a report of them from the columns of the Hongkong “Daily Press" of this date.
It is hoped that the reasons advanced in support of the proposal to make the yon "legal tender" wilt com- mend themselves to Your Excellency, and that you may be pleased to give effect to them at an early date.
I have, &c. (Signed) J. J. KESWICK, His Excellency
Chairman. Governor Sir William Robinson, K.C.M.G.
Enclosure 3 in No. 15.
The Daily Press, Hongkong, July 18th, 1893. Hoxoxoxo xxeral Chamber of CommKROK, The currency of the Oolony. Recommandation to legalise the Japaness Yon.
A special meeting of the members of the Chamber of Commerce was held yesterday at the City Hall for the purpose of discussing the desirability of recommending the Government to make the Japanese yen a lagal tender in Hongkong, and further to urge the adoption of the necessary messures for the coinage of a British dollar. There were present Mosers. J. J. Keswick (Chairman), A. G. Wood, N. J. Ede, B. H. Gray, 0. Jantzen, H. H. Joseph, J. H. Soott, T. H. Whitehead (Committee), T. Jackson, J. J. Franois, L. Mendel, J. H. Garrels, G. Sharp, B. Byramjee, Gustav von Wille, J. 8. Larraik, E. R. Balilios, J. 8. Moses, D. R. 8az. soon, W. H. Gaskoli, E. F. Alford, A. McConachis, O, J. Holliday, W. R. Loxley, V. A. C. Hawkins, F. Seip, F. Henderson (Secretary), and others.
The CHAIKMan said—Gentleman, the disturbance to all financial affairs throughout the world consequent upon the aetion of the Indian Government in declaring a gold standard of value in that Empire, and the influence apon exchanges generally which has ensued, has been felt as much in Hongkong and in the trading ports of China se in say other places. When it became known here that the Viceroy's Council was sitting in Simla last month to decide upon the recommendations of Lord Harschell's Committee this Chamber forwarded to His Excellency the Viceroy a telegram deprecating any aotion tending to injure the trade between India and China and mentioning that anticipations were already paralyzing busine. Similar messages were sent by bankers and merchants, and I believe by the Hong. kong Government, but the replies, as you are aware, were practically that "the matter was settled." For the present we are in the dark as to the precise recom- mendations of the Herschell Committee, but their result has been such a to cause the enactment of a policy in India which, with the information before us, seems unlikely to be to the benefit of the people of that country at large or of the British mercantile, manufacturing, and planting communities there, who have done so much, especially within the last ten years, to promote the wealth and general prosperity of that dependency. The adoption of a gold standard, in other words the protection of the rupes and the non-protection of the dollar, has had its natural effect, and we have soon silver for the first time in the world's history worth only 80 pence an ounce, and the value of the dollar in Hongkong at less than half-a-crown Great silver- producing countries like America and Mexico have not jet declared the measures they will adopt in consequence of India's financial policy, but from Mexico we have at least note of warning which requires that in this distani Colony we should take such setian mo we can for our own protection and for the safeguarding of banking and trading interests. For well-nigh half a century the Mexican dollar has been the coin at the Treaty ports of China and Hongkong, and lately of the Straits Settlements, and we are able to fully appreciate the inconvenience which may arise if there should be any curtailment of its supplies in the absence of another token to meet the waus thas created. It is for the pur- pose of considering what should be done to meet mach a contingency thai we are here to day, and it is satin- factory to see mch a good and representative attendance, His Excellency the Governor, too, takes the deepest interest in the question, and has expressed a wish for your view as to making the Japanese yon a legal tender in Hongkong, and his Excellency will, I am aure, give the fullest effect in his power to the room- mendation of this Chamber. When your Committee had this question under consideration a few days ago they were, 1 thiuk I may my, ananimously in favour of the Japanese yen being made legal tender here so the only immediate relief we can look for in the event of the supply of the time-honoured Mexican dollar being inadequate to the requirements of the great and growing China trade in connection with which the banking facilities find a focus in Hongkong. The yen is of at Jonat equal value with the Mexican dollar, is highly appreciated by the Chinese, is an unusually handsome and well-finished comm, and I may say that its history for nearly twenty yestw has been in every respect satis- factory as to uniformity of value. Buch being the onse I think I may venture to any that your Committee would be glad if this meeting would favourably view a recom- mendation to the Government that it should be inade a legal tender. The popularity of the coin and the not unnatural_ossire of the enterprising and progressivo Japanese Government to furnish the trading medium of the East seem to indieste it as the most valuable auxili- ary we can obtain if there is to be, na we fear, an under- tainty in the supply of the Mexican coin, It is not the first time that this proposal has been before this Cham- ber. Oor predecessors in the seventies recommended. the Government to legalize the yen, but for some rear. ons with which I am unsoqushita, possibly that there was no necessity at the time, no effect was given to the suggestion. Pat, gentlemen, If you recommend that the yen be made a legal tender, sa î is hoped you may, it should be borne in mind that by many it will be deemed but half a measure of safety, and that there are those who consider in order to obviste a recurrence of our present danger of a dearth of currency that we should have a dollar of our own, a British dollar, or « Hong- kong dollar; a dollar by whatever name you call it, of which the supply shall be regulated by our requirements. Now such a proposal is probably in every way command-
E 4