9
Emperor. The reverse might bear the inscription "Straits Settlements, one dollar." and as in the case of the British dollar, the words "one dollar" might As it is desirable that the perhaps be repeated in Chinese and Malay characters. new dollar should be clearly distinguishable from the British dollar, it is sug- gested that a new design should he prepared for the keyboard both of the obverse and of the reverse, and for the tracery on the reverse.
5 Mr. Chamberlain desires to take this opportunity of expressing his appreciation of the services rendered by Mr. Blain, the representative of the Treasury on the Committee.
I am, &c.,
14416
SIR,
No. 2.
TREASURY to COLONIAL OFFICE.
(Received 20th April, 1903.)
C. P. LUCAS
Treasury Chambers, 20th April, 1903.
I HAVE laid before the Lords Commissioners of His Majesty's Treasury Mr. Lucas's letter of the 15th instant (10340/03),* with its enclosures, respecting the currency of the Straits Settlements.
My Lords have read with interest the Report of the Departmental Committee, and they agree generally with the conclusions arrived at. They have instructed the Royal Mint to proceed with the preparation of designs for the proposed Straits Settlements dollar in consultation with your Department, and they will cause a draft Order in Council for the introduction of this coin, and such other amendment of the currency legislation of the Colony as may be considered expedient, to be transmitted to you, for Mr. Secretary Chamberlain's consideration, at an early date. My Lords concur in the terms of the draft despatch (confidential),† which Mr. Chamberlain proposes to address to the Governor of the Straits Settlements, subject to a slight amendment in paragraph 6, for the better safeguarding of the converti- bility of the Government Note Issue while silver is in India for recoinage. As such silver will not be available as a liquid reserve, it is, in their Lordships' opinion, desirable that the Currency Commissioners should retain in the Colony silver dollars to the amount of at least one-third of the total of notes outstanding for the time being, and they suggest that the words " sufficient margin" should be further defined in this sense.
As regards the question dealt with in the second despatch (secret),‡ my Lords concur in Mr. Chamberlain's view that it must be decided in the light of experi- ence to be derived from the measures now in contemplation.
3
3. I shall be glad if you will inforın me by telegram whether you desire that the proposal should be adopted. In the meantime I am in communication with the Lords Commissioners of the Treasury with reference to the Order in Council which will be necessary to provide for the coinage of a Straits Settlements dollar, and the making of it legal tender in the Straits Settlements, and also with reference to the design of the new coin. The enactments which will be required to make the new dollar legal tender in the Federated Malay States can be passed at a subsequent date, and as regards Johore, whose position is referred to in para- graph 9 of the report, I shall be glad to have your opinion as to the steps which
should be taken.
4. The measures referred to in paragraph 58 of the report, for the prohibition of the import of British and Mexican dollars, and of the export of the new Straits dollars, can be taken at the proper time by an Ordinance of the Colonial Legislature, similar to Ordinance XI. of 1898, and by enactments in the Federated Malay States.
5. Before the first shipments of dollars or silver are made to India for the purpose of being coined into the new dollars, it will probably be desirable to amend "The Currency Note Ordinance, 1899," so as to provide that dollars or silver in transit to India for the purpose of being coined, and the same whilst being coined in India, and whilst on the way back to the Colony, shall be regarded as part of the coin reserve of the Currency Commissioners.
6. I am in communication with the India Office with reference to the coinage of the new dollar in India, and am asking them to ascertain whether the Government of India will undertake the coinage, and on what terms, and also at what rate of speed the dollars can be coined. "I am asking that the Government of India may be moved to communicate direct to you the reply they return to these enquiries. I need scarcely say that though it would be desirable to secure a large supply of the new dollars as soon as possible, the coin reserve should not be unduly depleted, but a sufficient margin should be maintained to meet immediate requirements. This margin should, I consider, be not less than one-third of the Note issue.
7. You will observe that the report is marked "confidential." I have no objection, however, to its publication should you consider this course desirable, as no doubt you will. On your informing me by telegraph that you propose to publish it in the Colony, and on what date, steps will be taken for publishing the report in this country by laying it before Parliament.
10340
No. 4.
I have, &c.,
J. CHAMBERLAIN.
10940
No. 3.
I am, &c.,
E. W. HAMILTON.
(Secret.)
SIR,
THE SECRETARY OF STATE to THE GOVERNOR. [Answered by No. 24.]
(Confidential.)
Downing Street, 23rd April, 1903.
SIR,
I HAVE the honour to transmit to you 20 copies of the report, minutes of evidence, and appendices§ laid before me by the Committee which I appointed to consider the expediency and practicability of introducing a gold standard of currency in the Straits Settlements and the neighbouring Malay States.
2. The recommendations of the Committee are contained in paragraph 50 and in paragraph 57 and following paragraphs of their report. If, after consider- ing the report, in consultation with your advisers, you are of opinion that a gold standard should be introduced, and that the method recommended should be adopted, I am prepared to sanction its adoption.
• No. 1. ↑ Bee No. 3.
Bee No. 4. § [Cd. 1556] and [Cd. 1585] of 1903.
THE SECRETARY OF STATE to THE GOVERNOR.
[Answered by No. 25.]
Downing Street, 23rd April, 1903.
WITH reference to my confidential despatch of even date,* forwarding the report of the Straits Settlements Currency Committee, I have the honour to point out that the report is intentionally silent as to the value in gold which the Straits Settlements Government should hereafter fix for the new dollar, if it is decided to establish a gold standard.
2. It is not possible to keep the report secret, and any premature announce- ment as to the future gold value of the dollar might promote speculation, and have a mischievous effect.
3. I am of opinion that if the Government decides to adopt a gold standard it would be best not to attempt to fix the value of the new dollar at first, but to leave that important point to be decided in the light of the experience that will be gained when the further addition of silver coins to the currency is stopped.
4. At the same time I am disposed to think that the Colonial Government might fairly aim at a future value of two shillings for the dollar, which would be a convenient rate as being one-tenth of the pound sterling. I do not think it desir-
• No. 8.
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PUBLIC RECORD OFFICE
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C.O. 882
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PUBLIC RECORD OFFICE, LONDONİ
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