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PUBLIC RECORD OFFICE
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Reference :-
C.O. 882
5 PUBLIC RECORD OFFICE, LONDO
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC COPYRIGHT PHOTOGRAPH-NOT TO
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48
COLONIAL CURRENCY COMMITTER:
The Japanese Government have on 16th October last, under Imperial Ordinance No. 103, appointed a Committee of Currency Investigation to inquire into "the origin and general results in the relative value " of gold and silver, the effect produced thereby upon **the economy of Japan, whether any change should be made in the present currency system of Japan, and "if such change be considered necessary, what our rency unit should be adapted." What this committee inay report, it is impossible to say; it may decide to recommend to discontinue the coinage of Japanese yen. In any case, we are of opinion that it would be most inexpedient to recommend the legalisation of the Japanese yen in Hong Kong at present, in view of the groat uncertainties which exist in connexion therewith.
From inquiries made of the Mint Master in London, it appears that his applianors, without costly additions, would not allow of bis undertaking the coinage of British dollar at all times, while the seignorage charged by the mint anthoritics in Birmingham will be so costly, for the present, as to be practically prohibitive.
We are given to understand the India Government is prépared to coin ■ British dollar at the Bombay Mint, and that the charge for seignorage will be 1 per cent, or thereabouts.
Under the circumstances, we are clearly of opinion that it is imperatively necessary, in the interests of the trade of the Colony, and otherwise, that immediate action should be taken in the direction of the coinage and logaliation of a British dollar, equal in weight and fiueness to the Moxican dollar, for circulation in the Colony of Hong Kong concurrently with the dollars which are now legal tender-We are, dear air, your most obedient servants,
SIR,
J. J. KESWICK.
T. JACKSON.
C. P. CHATI.
J. THURBURN.
T. H. WHITEHEAD,
No. 28.
COLONIAL OFFICE to INDIA OFFICE.
[Answered by No. 29.]
Downing Street,
March 10, 1894. I AM directed by the Marquess of Ripon to Acknowledge the receipt of your letter of the 21st ultimo forwarding telegraphic correspondence with the Viceroy of India, from which it appears that under present circumstances the India Mints could coin a large quantity, say about five millions, of British dollars for Hong Kong, for charge of one per cent. Lord Ripon does not clearly gather whether the proposed charge of one per cent is intended only to upply to a coinage of a large amount, or whether it would (as in the case of the Japanese Mint) be a uniform charge of one per cent for coining into British dollara any quantity of silver bullion brought by the public from time to time to the Minta in India, and his Lord. ship would be mnoh obliged if the Secretary of State for India would be good enough to ascertain by telegraph whether the latter is the interpretation to be put upon the telegram of the 17th ultimo from the Government of India.
I am to add that it is not contemplated that the suggested British dollar should be coined and issued at the expense of the Colonial Governments, but merely that, in the event of the Colonial Governmenta, with the sanction of the Secretary of State for the Colonies, deciding to legaliso a British dollar in Hong Kong and the Straits Settlementa cuncurrently with and not in place of the Mexican dollar, and of the Indian Govern. ment consenting to cofu such a dollar, it should be left to the bankers and traders to make their own arrange. ments for obtaining whatever number of dollars might be required, in the same way as the Japanese Jon which is already legal tender in the Straite Settlements) is obtained from Japan.
I am, &c. (Signed)
Tus Under Secretary of State,
India Omoe.
• No. 17.
JOHN BRAMETON.
No. 29.
[Answered by No. 30.]
INDIA OFFICE to COLONIAL OFFICE.
India Office, Whitehall, S.W., SI
March 22, 1894. WITH reference to your letter of the 10th instant,† on the subject of the proposed coinage at the Indian Mints of British dollars for Telegrams to Viceroy circulation in the Straits Settlements Telegram from Vice and Hong Kong, I am directed to
my find March.
transmit, for the information of the Marquees of Ripon, copy of · telegraphic correspondence with the Viceroy.
18 March.
I have, &c. (Signed)
HORACE WALPOLE.
Enclosure 1 in No. 29.
TELEGRAM from SECRETARY OF STATE to VICEROY, March 13, 1894.
Your telegram of 17th February. Dollars. Colonial Office asks whether one per cent. would be accepted for coining any less quantity than five millions of dollars, or only if a large quantity were brought for coinage at one time. They contemplate that Colenial Government shall not do more than legalise British dollars, and that merchants shall themselves make arrangements for procuring what dollars they require from time to time.
Enclosure 2 in No. 29.
COFT of TELEGRAM from the VICEROY dated March 22, 1894.
It is not worth while to undertake coinage on the conditions proposed in your telegram of the 13th March even at much higher per centage.
SIL,
No. 30.
COLONIAL OFFICE to INDIA OFFICE. [Answered by No. 81.]
Downing Street, April 20, 1894. WITH reference to your letter of the 22nd nitimo regarding the proposed coinage of British dollars at the Indian Mints, I am directed by the Marquess of Ripon to request you to lay before Mr. Secretary Fowler the euclosed copy of a letter from the manager of the Chartered Bank of India, Australia, and China, stating that that bank, in conjunction with the Hong-Kong and Shanghai Bank, are prepared to guarantee to Indian Government to pay 1 per cent. for the coat of coinage upon a minimum of five million dollara annually.
the
Lord Ripon would be glad to be informed whether he is right in assuming that if this proposal is formally made, after the matter has been submitted to the Colonial Currency Committee, it will be accepted by the Indian Government. It will be seen that the terms are those offered in the telegram from the Viceroy of 17th February last, a copy of which was enclosed in your leiter of 21st February.
If it is necessary to communicate again with the Indian Government on the subject, his Lordship would be much obliged if the communication could be made by telegraph.
I am, &c. (Signed) EDWARD FAIRFIELD. The Under Secretary of State, India Office.
Enclosure in No. 30. Chartered Bank of India, Australia, and Chins,
Hatton Court, Threadneedle Street, MY DEAR BIR Bonet, London, April 18, 1894.
In view of the pressing need for some immediate Botion in connexion with the proposed British dollar the directors of this bank, at their weekly meeting this morning, determined, in conjunction with the Hong Kong and Shanghai Bank, to give the required guarantee to the Indian Government that they will pay the latter 1 per cent. for the cost of coinage upon a
† No. 29.
• No.fl.
APPENDIX A
minimum of five million dollars anmally, that is to my, the two banks, jointly and severally, would make up by out-of-posisen payment say deśait which might szin by reason of the mon-coimage of the agreed minimuman amount,
I am wiring our Bombay and Onleuits agents this evening to the above effect, so that they can support on the spot any telegram which you may send to the Vicmony through the India Office.
I am, &c.
(Signed). J. Howan. GWYNɛXB.
Sir Robert Maade, K.04B.
P.8:-The proposed agreement would be for 12 months and terminable thereafter by six months' notice.
BIR,
Na $1.
INDIA OFFICE to COLONIAL OFFICE.
Tadis Office, Whitehall, 8.W., April 30, 1994. Wire reference to your letter of the 20th instant, I am directed to forward to you a copy of a telegram rens to the Viceroy of Indfe on the 1st April, and of the reply thereto dated the 29th, respecting the coinage of British dollars in India.
In forwarding this correspondence, I am desired to add that it is of course to be understood that no obligation can be accepted on the part of India in connexion with the proposed coins, in consequence of their having been issued from her Mint.
The Under Secretary
I have, dec. (Bigned)
of State for the Colonies.
Enclosude 1 in No. 31.
A. GODLEY.
COPT of TILIM to GovELEMENT of INDIA.
Dated 21st April.
Your telegram 17th February and 22nd March, Chartered Bank of India, in conjunction with Hong- Kong and Shanghai Bank, offer to guarantee payment of 1 per cent, on mimimum of five million dollars annually, agreement being for 19 months, terminable thereafter on six months' notke. Colonial Office ask whether you would soospt proposal, if formally made.
Emeloense 2 in No. 31. Telegram from Govuuuuure of Impta.
Dated 28th April. Your telegram of 21st April. Coinage of dollars. I would accept proposal as it stands, subject to arrange. ment of various detaile, which some authority should be empowed to settle with ns in India.
No. 39,
CHINA ASSOCIATION to COLONIAL OFFICE,
China Association, 31 Lombard Street, MY LORD MANQUERS,
May 28, 1894. TRE Committee of the China Association trust that the urgency of the question, and the importance of the interests involved, will be held a sufficient excuse for recurring to the project of a British dollar, ragard- ing which they had the honour of addressing your Lordship on the 15th March last,† and which you wors good enough to say was then receiving your attention.
The stringency of the situation has considerably in- creased, in Hong Kong, since that date; Mexican dollars having reached premium of 5 per cent, at which they are source and dimoult to procare. Some relief has been obtained by the consignment of dollars from Singapore (where they are replaced, doubtless, by the yên) in response to the preminin offered. But that source of supply can only be temporary; while the export period for Chinese produce is approaching, when the head for currency will be more active, so that s degree of inconvenlence not free from danger may be expected to arise.
The diffenities placed in the way of our trade with silver a cing countries, by the divergence in value bstween the precious metals, resulting from the parsis. tent disqualification of silver, seem to proclude any likelihood of relief from a revived importation of Mexican dollars in exchange for English manufactures,
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on the old terms. The same influeness, on the contrary, which encourage the developmens, of mann. faciuzing industry in Japan. are tending in produce similar effects in Mexico, wàtinh la equally aliver-neing. -The prepá inter-odnosion of a. British' faller sppanen, therefore, to be the only affectand remedy for the mámation; and, an shat project invalves, ne radical change in the Galonial currency, but is designed
to supplement, and supply an admitted dañaissay of, the present legal tender," this Association, temats that Her Majesty's Government will see fis to mushorine the parmiative esinaga, sé the Bombay Mint, of a Prisiak dollar in socordsses with the ananimously expressed. desire of the offisisi and serosatile community of Hong Kong.
I have, do
(Bigned) B. 8. GUNDRY,
Hon. Secretary China Association.
No.. 33,
THE STRAITS SETTLEMENTS ASSOCIATION to OOLONIAL OFFICE Straits Satilamenta Association,
2, Whittington Avenus, E.G.
May 18, 1834.
MS LORD. MARQUBAS,
Ta scarcity of the Maxinna dollar and the consequent restricted supply of coinage in the Straits Settlements have already caused serious inconvenience and mày nó any moment name proportions which would gravely interfere with the trade of the Colony.
2 The importanon and vegency of this question ĥave been recently afirmed by the mercantile community, both here and in the titanite, si məstings specially con vanad to consider it.
3. I have the honour to encloss, for the information of your Lordship, copies of two resolutions passed, respectively, at a meeting of the Singapore Chamber of Commerce, held on the 22nd March last, and at a meeting of the Straits Settlements Association, bald on the 23rd instant, bearing on this question. Is will be noticed that both sgree in stating that it is very desir- able that Her Majesty's Government should give immediate facilities for the coinage of a British dollar to be made legal tender in the Colony sunonrrently with the dollar now in use,
4. As your Lordship is aware, the Mariona dollar, and Japanese yên aro ́në present both legal tender in the Straits.
5. It is on their free supply that the trade of the Colony is dependent for the means for carrying it on, and as that trade is mainly with countries lying outside tha settlements of Singapore, Penang, and Malaces, large amounts of dollars must be regularly available for export in payment of the produos daily coming forward, and any permanent restriction of the supply could not fail to have injurious affects in seriously impeding the trade.
It cannot be safely assumed that the present scarcity of Mexican dollars is of a temporary character, nor can reliance be placed on the permanency of the present arrangements for obtaining supplies of JapanOS0 you.
7. The mpply of Mexican dollars is dependent on the movement of the import trade of Mexico, the returns for which are largely made in the coinage of that country. The heavy fall in the value of silver has had the double effect of lessening the imports into Mexico, and checking pari-pass the export of dollars, and it has, at the mme time, largely increased the nee of, and demand for, then in the Straits and China.
8. It is also important to note that the scarcity of Mexican dollars has forced the price to a relatively high level, as compared with that of bar silver. Last weak bayers on the Loudon market were offering a price equivalent to a premium of five per cent. on the current valus of bar silver without, however, obtaining Pupplies. The premium paid at any given moment is, it hardly necessary to add, equivalent to a tax of the same amount on the countries using the Mexican dollar.
1. As regards the continued mpply of Japanese yên, there in some uncertainty, sa it is known that the Japanese Government have under consideration pro- posals for a change in their currency laws, which, if adopted, would probably limit the supply of you available for expert.
10. The necessity for a frash soures of supply of the silver currency of the Straits has, therefois, "become
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