PUBLIC RECORD OFFICE
سياسيا
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C.O. 882
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PUBLIC RECORD OFFICE, LONDON
38
MINUTES OF EVIDENCE;
Dato Abdul has affected, or would affect, the immigration of Amatica Rahman, into the Malay States and the Straits Settlement. I C.M.G. have some such ides; I think sooner or later they will see that the dollar is not what it used to be, and they 16 Dec 1902. will find probably some other place to go to.
1371. But if they get a larger number of the dollars, would that not meet the difficulty-Yes, but the in. crease in the number of dollars would not be propor- tionate to what they expect.
1372. Do you think the low rate of exchange inter- feres with the development of the resources of the Colony and of the neighbouring States 7-8o far not, but the time, I think," is not far distant when it will have that effect.
1373. Do you think the fall in the rate of exchange and the uncertainty as regards the future would affect the raising of capital for the making of railways and other public works in the Straits Settlements 7-Yes, most certainly.
1374. You think so -Yes, sir.
1375. If the Straits Settlements adopted a gold stan- dard, do you think the Johore State should do the same thing -Oh, yes, I should hope so, and I fully expect, as a Johore official, that Johore would be in- oluded.
1376. And I suppose it would be desirable that the States that are called the Federated Malay States should also adopt a gold standard in that case?—I think so.
1377. I understand that you have given some attention to considering the question of the best method of intro- ducing a gold standard?—I have, air; I sent in a paper the other day on the subject, and my suggestions there- in I offer to you for what they are worth.
1378. You propose that the Straits Government should provicle a sufficient number of dollar and half-dollar notes 7-Yes, sir.
1379. And that the same Goremment should give notice that within three months, say, a gold standard, with silver and paper tokens in circufation, would be adopted ?—Yes.
1380. And you would propose that persons having
silver dollars in the Straite Settlements and the ad joining States should be called on to exchange those silver dollars for the Treasury notes 7-Yes.
1381. But I suppose it would be necessary to prevent the import of British and Mexican dollars from outside during that period?-Yes, I think I said that in some part of the paper.
1382. But, at any rate, whether you said it or not, that would be necessary 7-Yes, that would be neces
sary.
1363. That is part of your scheme?—Yes.
1384. And at the end of that period of three months the Government should refuse to accept as legal tender any silver dollars which might still remain in the Colony-Yes, any silver dollars.
1385. After the lapse of the three months, any silver dollars 1—Any silver dollars except their own.
1366. Well, except those that were specially ismed? -Yes.
1387. Now, do you think that the people would be willing generally to give up their silver dollars and take the notes under the conditions that you have men- tioned I think they would, certainly.
1388. Do you think they would do that in the Jobore State Yes; I think so, because so far as Johore is concerned, with regard to its currency, it is one with the Straits. I do not think the natives, if offered by the Johore Government a paper in exchange for silver dollars, would refuse to take it.
1389. You think they would not refuse They would not refuse. I think that anything done by the Straita Government would be recognised as right. What would hold good in Singapore would hold good in Johore.
1390. Yes, but do you think that the people in Singa- pore would freely give up their silver dollars and take the notes 7-Yes, I think they would.
1391. I asked you the question because I am quite certain that the inhabitants of India would not do it?-- Well, I have no experience of India, sir, but the Straite Government is so strong and so wealthy I do not think it would be challenged by a single person in the Straits.
1392. It comes to this, that the people in the Straits Settlements and the adjoining States have greater
confidence in paper than the people of India ?— So far we have not had much experience of paper, but I think anything that is recognised by the Government, and they say to the natives, "We give you this as our guarantee; this piece of paper, which representa a dollar, Is as good as a silver dollar," would be accepted by all of
them.
1383. Then the dollars that were surrendered by the people in exchange for the notes you would have coined into a new dollar 7-Yes.
1364. And that new dollar would be merely a token coin-That is my scheme, sir.
1395. That is what you propose?—Yes, sir.
1396. And then you think it would be necessary for the Straits Government to have a certain quantity of gold as a reserve to maintain the value of its new dollar-I think so, because I think it ought to be so.
1397. And you think that a beginning of that reserve might be made by taking the profit on the re-coinage of the dollars --Well, that would be a very small mat ter, but still it would be a beginning.
1398. Do you think that Johore and the Federated States would be prepared to find a portion of the gold reserve I am not quite sure how they are placed, but I think some such understanding should be made as between those States and the Straits Government.
1399. Then you say that for a period, say, two years, the new coin should not be redeemable in gold, except at a reduction of, say, 1 per cent. Now, why do you put in that stipulation I think I have explained it else there.
1400. l'erhaps you would not mind explaining it again I make that stipulation, because I fear, as soon as the Straits are placed on a gold basis, natives would flock in even with the new dollar to get gold, and in order to give the Straits and the Federated Malay States sufficient time to accumulate gold in their Treasuries, and therefore there should not be a ruu on gold during those two years.
1401. But if they came in and exchanged their dollars day to day, when they had no dollars-No; I do not for gold, how would they carry on their business from
think that they all would do it, but some of them might. The Chinese, for instance, might want to take gold to China.
1402. And during the same period, if a man presented sovereign or half a sovereign, you would give him silver coins, and a profit of, say, a half per cent. ?—Yes, as an inducement. I have not, sir, got the percentage exactly; it is only a tentative auggestion; whether it should be one per cent. or half per cent. I am not quite
sure.
1403. I quite understand that. And you think it might then be worth while for the Colonial Government to borrow a certain amount of gold to strengthen the reserve, to enable it to cash the dollars where necessary/
I think so, sir.
1404. But you would not make it obligatory on the Government to meet its obligations in gold; that is to say, the Government would not be bound to pay its servants, for instance, în gold No.
1405. It might pay them in the new dollar or in gold, as it pleased Yes.
1406. Then, I think, you would prohibit the making of contracts to be discharged in gold coin -I think, as between parties out there, certainly not. I think it should be arranged that they should pay in dollars, otherwise it would be a drain on
the Treasury.
1407. But even at the beginning you think the Colonial Treasury should give gold for dollars, if the gold was intended for remittance to a gold standard country think that would help trade, and other intercourse as between the Straits and gold countries.
1408. Is there anything else you would like to say on the subject 7-No, sir; except this, that indirectly 1 have heard that most of the Chinese merchants of the first rank there would be pleased to see the dollar put upon a gold basis,
1409. That is Chinese merchants who are now carry- ing on business in the Straits Settlements and in Johore-In the Straits Settlements, yes; especially those who have to do with British trade.
1410. (Mr. Adamson.) Johore is purely an agricul tural country Yes, it is, but we are trying to develop
COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.
We do not know to what extent
our mining resources. those resources are.
1411 Has it been very prosperous of late years 7-- Yes, we have done fairly well.
1412. Have you any idea of what the advance in the wages of coolies has been in the last eight or nine years? -think they have advanced about one-third; one third more.
1413. Not more during the last 10 years 1-During the last 10 years it might be a little more even When I
say that I mean throughout, whether it is for agricul tural labour, or mining labour, or domestic labour.
1414. Those coolies are mainly Chinese 1-They are Chinese, Tamils, or Indians and Javanese,
1415. Mainly Chinese?-Mainly Chinese.
1416. They take away with them when they leave-- and about two-thirds of the number that come in leave every year-they take away with them, do they not, money that they have accumulated during their stay? -Yes, as a rule.
39
1417. Then, what would they do with the notes that you are going to give them ?—Óh I they would exchange them for dollars.
do Abdul Rahman,
C.K.G.
1418. Do you not think that a Chinese coolie who had 16 Dec. 1902, a few dollars to exchange with a native money lender would be at very great disadvantage in making that exchange-I think the disadvantage would be very emall
1419. That the Chitty would not get the batter of him? ---Not much
1420. I understand you are not of the opinion that the fall in the value of silver has been of great advantage to your planting interests in Johore 1-It has been a dia- advantage.
1421. No, it has been a great advantage?-The fall?
1422. Are you of opinion that the fall in the value of silver has been of great advantage to the planters of Johore 7-No.
1423. It has not 1-No, it has not.
SIXTH DAY.
Tuesday, 30th December 1902.
PRESENT:
Sir David Barbour, K.C.8.1., K.O.M.G. (Chairman), presiding.
Mr. W. ADAMSON, C.M.G, Mr. G. W. JOHNSON.
¡
Mr. W. BLAIN.
Mr. A. E. COLLINS, Secretary.
Mr. ROBERT CRAIG, called; and Examined. 1424. (Chairman.) You are a member of a firm which does business in Singapore 7-Yes.
1425. What is the name of the firm 3-Messrs. Edward Boustead and Co., of London, and Messrs. Boustead and Co., of Singapore and Penang.
1426. Have you resided in the East yourself ?—Yes, I have been there about 22 years.
1427. In Singapore ?-In Singapore nearly the whole time.
1428. Where else have you been besides Singapore - A short time in Penang only.
1429. Mainly in Singapore 1-You may say entirely in Singapore.
1430. What is the nature of the business your firm does 1-We are general merchants. We import Man- chester goods and other goods from this country, and export Straits produce to Europe and America; and then we do a coal business as well and look after shipping. 1-131. So that you are familiar with the course of general trade in Singapore 7-Yes, I suppose I am to a certain extent.
1432. Now, the articles that you import from Europe, to whorn do you chiefly sell them in Singapore; to what class of people -Nearly entirely to Chinese; the Chinese are the principal dealers there.
1433. For local consumption, or for export, or for both-Well the great trade of the place, of course, is exporting from there.
1434. Of course it is indifferent to you whether the articles are sold locally or exported; I merely wanted to know as matter of fact whether the articles are sold for local consumption or for export -The great bulk of the imports into Singapore are exported from there.
1435. Quite so; and the Singapore produce that you buy, I understand, is mainly imported into Singapore from elsewhere 1-There is practically nothing grown jn Singapore; it is a very small island.
1438. The exports are mainly imported from else- where You may say entirely imported from else- where.
1437. From what places do they come chiefly 7-The Native States.
4
Mr.
R. Craig.
1438. The Federated Malay States 7-The Federated Malay States; they produce all the tin, as probably you 30 Dec. 1902. know.
1439. And Johore ?-Well, Johore does not produce much tin; tapioca and pepper are produced in the Native States.
1440. And does much come from Java 7-Well, copra comes from Java and Balli.
1441. And does much come from Borneo 1-Fago over from Bornea, and pepper, gambier and sago flour come from Sarawak.
comes
1442. Residing in the East and doing business there your attention has naturally been attracted to the question of the exchange between Singapore and countries with the gold standard ?-It is a question that is forced on you.
1443. Are you in favour of trying to establish a gold standard in Singapore --Yes, certainly; I have been so for many years.
1444. And I understand that you are prepared to suggest a plan by which you think the gold standard might be established -I do not think I ought to say that I suggest a plan. Mr. Adamson spoke to me some time ago, and said that as I was very strongly in favour of a gold standard, why could I not suggest a means of introducing it.
1445. In point of fact you do suggest a means 1— -Well, I do, but I am not a financial expert.
1446. But you suggest it in order that it may be taken into consideration. Your first proposal, I gather from your memorandum, is that a loan of £500,000 should be raised in gold to be used as a gold reserve against the note sad silver dollar issue, and to form the basis of a gold currency or gold standard we will say Yes, I thought that might be one way of starting it.
1447. I am not throwing any doubt upon your pro- posal; merely want to get it upon the evidence; that