PUBLIC RECORD OFFICE
Reference :--
TLC.O. 882
سائل
PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
144
APPENDIX:
No. 13.
Governor Sir F. A. SWETTENHAM to Mr. CHAMBERLAIN.
I
Government House, Penang,
December 29, 1902. Sir,-With reference to previous correspondence, have the honour to forward a petition in favour of a silver standard of currency presented by the Honourable J. M. Allinson, M.L.C.
2. It is noticeable that the petition, which is very numerously signed, contains, with half a dozen excep- tions, the names of Chinese only, and Mr. Allinson has not been able to persuade a single European or Eurasian to join him.
3. I cannot agree with many of the statements in the petition. It is needless for me to traverse them here, for that has already been done in correspondence which I have forwarded to you. I may, however, invite atten- tion to two important points. The petitioners say in paragraphs 6 and 11 that a gold standard would be in- jurious to the planters of the Federated Malay States, but these very gentlemen, speaking for themselves, have practically unanimously declared for a gold standard. In paragraph 8 of the petition it is stated that the prosperity of the Federated Malay States has continued to increase under the falling price of silver, and espe cially refers to the solvent position of the Government. The prosperity of the Federated Malay States has been remarkable, and is due, I believe, to a large extent to cheap silver, which meant cheap labour, but I believe the turning point was reached when the value of the dolla fell below 2s. In the last twelve months the value of silver has fallen nearly 25 per cent., and it is quite cer tain that the dollar revenues of the Federated Malay States have not increased in anything like that pro- portion. The same remarks apply to paragraph 10 of the petition, because it is doubtful whether the opium farm would prosper so abundantly if it had to pay an increased rent of 20 per cent. to 25 per cent. above the contract price, and yet the Government, for its own pro- tection, may have in future to ask for a sterling rental, as many of the Government's heaviest obligations have to be met in sterling.
4. Paragraph 12 of the petition is, I think, an admis- sion which must deprive the document of any serious weight. If many of the signatories to this petition signed, only a few days ago, a petition asking for gold standard, I fear it shows that they do not under- stand the questions at issue.—I have, etc.,
F. A. SWETTEN HAM.
Enclosure in No. 13.
To His Excellency Sir FRANK ATHELSTANE SWETTEN- HAM, K.C.M.G., Governor and Commander-in-Chief of the Straits Settlements.
THE HUMBLE PETITION OF THE UNDERSIGNED MERCHANTS AND TRADERS OF SINGAPORE,
SHOWRTH THAT,
1. We regret to find that the continued fall in the gold value of silver has caused loss and inconvenience to those hailing from, and trading with, gold countries. It is with satisfaction that your petitioners learn that a very general and growing movement is on foot to place the European wage-earners on a satisfactory basis, thus tending to remove a just and admitted grievance.
2. In consequence of this disturbance a petition is about to be presented praying that the legal currency of the colony and of the Federated Malay States should have a fixed relative value to the British sterling sovereign.
3. It is contended that this fixed relative value will solve all the difficulties now experienced by those trading with gold countries.
4. In the humble opinion of your petitioners this will not be the case as long as China continues to use free silver sa her currency.
5. Your petitioners beg respectfully to submit to your Excellency that any change in the direction suggested can only be secured at the expense of those trading with silver countries without any commensurate ad- vantages to the colony at large.
6. It is the humble opinion of your petitioners that fixity of value would handicap all our local industries, especially mining and planting, and must weaken their power of competition in the markets of the world, whether silver rises above or falls below the fixed point.
7. A very large percentage of the labour in the colony and the Federated Malay States is recruited from silver- using countries, and not only the surplus earnings of this section of the community, but a considerable amount of Chinese capital invested in this colony and Federated Malay States would be adversely affected were exchange to rise above the fixed point; on the other hand, should exchange fall lower than the fixed point the productive power would lose the stimulus that is given to it by cheap silver.
8. Experience has shown that during the last ten years the prosperity of the Federated Malay States has con- tinued to increase in a quite unexampled manner, not- withstanding the continuous depreciation in the value of silver. Not only have the several States been in a position to meet all their obligations without an effort, but their respective Governments have also been able to meet the demand of their establishments for com- pensation in a manner most satisfactory to the con- cerned.
9. The local industries of this colony are likewise prospering, and have been able to pay their employees increased remuneration to meet the enhanced cost of living, caused, it is suggested, by the depreciation of silver values,
10. To further instance the claim your petitioners make, the opium farm, from which this colony derives the greater portion of its revenue, continues to prosper abundantly, although the opium imported comes from a gold-using country, and is sold in a silver-using country at rates fixed by the Government 20 years ago, when the sterling value of the dollar was 3s. 6d.
11. It is believed by your petitioners that on the whole cheap dollars have contributed largely to stimulate the development of the resources of these settlements and the Federated Malay States, and will continue their beneficial influence in that direction so long as Chine continues to use free silver as her currency. The agri- cultural interest of the F.M.S. and this colony will, your petitioners believe, be furthered and encouraged, especially the cultivation of rice, which is the staple food of the people, and is now almost entirely imported from gold-using countries.
12. Your petitioners include many Asiatic traders who have also signed the petition above referred to, but who have ince reconsidered the issues involved, and have asked to be allowed to join in this petition.
13. In conclusion, your petitioners respectfully cali your attention to the fact that the collection of produce and the distribution of our importa is entirely in the hands of petty traders. This trade may be described sa the "primary trade," and it is difficult to exaggerate its importance to the colony. The trade extends in all directions throughout the Malay Archipelago, and is carried on at considerable risks, both to life and pro- perty. The work is done chiefly in wild or semi-
COMMITTEE ON STRAITS SETTLEMENTS CU....
civilised centres, where the silver dollar is the only recognised means of exchange, and where no banking facilities are enjoyed. Your petitioners believe that if the uncertainty of exchange now only affecting the well- developed European commercial system, with all its banking facilities, were shifted to the shoulders of the petty traders who collect the raw material and dis- tribute our imports, a very serious disaster would befall our trade, and which would most certainly imperil its further expansion.
145
Your petitioners therefore humbly pray that your Excellency will by telegraphic despatch cause their views to be laid before the Committee which is now sitting in England to consider the currency of the colony and of the Federated Malay States.
And your petitioners will ever pray, etc.
J. M. ALLINSON,
(And others).
#
146
APPENDIX:
No. 14.
High Commissioner Sir F. A. SWETTENHAM to Mr. OHAMBERLAIN.