النسيا
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
PUBLIC RECORD OFFICE, LONDON?
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
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to India a limited amount of coin to be recoined into Straits dollars at Government expense and, secondly, if the banks have bullion which they intended to send to India to be coined with British trade dollars, may they now have this bullion coined at once into Straits dollars, at their expense, and so save the double process? I do not at present see any objection to grant the first request, within reasonable limits, as it will no doubt be difficult for the Government alone to supply a sufficient number of Straits dollars to meet the demand; but it might be difficult to control the coinage of bullion and, unless the coins so obtained were placed at the disposal of the Govern ment, it is obvious that this operation would not reduce the number of British and Mexican dollars in the Colony.
10. Lastly, I am asked whether the Government will, in due time, when the new Straits dollar has been established and the trade and Mexican dollars have been demonetized, accept gold in exchange for Straits dollars. I conclude that it is intended that the Government should accept gold (sovereigns) for Straits dollars, but that the Government should only do so at their discretion and when that course. is convenient to them.
I have, &c.,
F. A. SWETTENHAM.
Post-Scriptum. Since writing this despatch, I have received your telegram* telling me that the design of the new coin lias been settled and cannot be altered. I do not know yet what design has been selected.
Enclosure 2 in No. 24.
GOVERNOR OF THE STRAITS SETTLEMENTS AND HIGH COMMISSIONER FOR THE FEDERATED MALAY STATES to the VICEROY OF INDIA. (Confidential.)
MY LORD,
Singapore, 18th May, 1903. WITH reference to your Lordship's secret telegram of the 8th instant, and my reply of the 10th idem, I have now the honour to inform you that, so far as it is yet possible to estimate our future wants, it is believed that between 40 and 50 millions of silver dollars will meet the needs of the trade of the Colony and of the Federated Malay States.
2. Of that amount I am advised that about 20 million dollars will be required within 12 months from the issue of the first order, and of these 10 millions should be supplied as soon as possible after the die for the approved Straits dollar has been received in India.
3. About another 20 million dollars would probably be required within the following period of 12 months, and I do not think that it would be necessary to ask for a further supply for some little time, but this will depend on the ascertained needs of the Colony.
4. As it is necessary that the silver used in minting the new dollars should consist of the British and Mexican dollars now in circulation here, so as to effect a conversion of the existing currency, it is at present proposed to use for this purpose the coin in our currency note reserve.
5. I should be glad to be informed how rapidly shipments of dollars, say to the amount of $1,800,000 per month, or $900,000 fortnightly could be returned reminted. Time is a matter of great importance, as the maximum amount taken at any one time from the reserve will depend on the speed with which the process of reminting can be performed. It is presumed that the Mint of supply would be that at Bombay.
6. I should be much obliged if the Master of the Mint could supply all the neces sary details of information, including the probable cost of packing and handling at Bombay. The Treasury here would also be glad to know whether the sealed boxes used in despatching coin (83,000 in each) could be used for the return journey, and, if so, what address and markings should be put on the boxes when sent from here.
7. I would also ask whether there is not some mistake in the proposed rate of seigniorage, as I am assured that the Eastern Banks at present pay only one per
• 20676: not printed.
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cent. for the silver coinage done for them by the Indian Mints. Your Lordship will understand that it is very important for this Government that the cost of con- version should be kept as low as possible.
I have, &c.,
25109
(Secret.)
SIR,
No. 25.
F. A. SWETTENHAM.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 6th July, 1903.)
Government House, Singapore, 10th June, 1903. I HAVE the honour to acknowledge your secret despatch of the 23rd April* concerning the sterling value of the new Straits dollar.
2. I concur with your despatch in every particular, and, though no one here except my Private Secretary and myself have seen it, I find there is a very general opinion that the value of the new coin will be fixed at two shillings. This is, no doubt, the result of reading the evidence taken by the Committee in London.
3. I believe myself that it will be quite possible to fix the value of the Straits dollar at two shillings, but I agree with you that that should be the limit to be aimed at; and, if present anticipations are not realized by the result, it may be necessary to adopt a smaller sterling value, as it would obviously be a mistake to fix on two shillings if the local exchange price were only, say, one shilling and eleven pence. Twelve months ago, I am inclined to think, the community would have been satisfied with a gold standard and a one-and-eightpenny dollar. idea of a two-shilling dollar is therefore very popular.
25029
SIB,
No. 26.
The
I have, &c.,
F. A. SWETTENHAM.
THE SECRETARY OF STATE to THE GOVERNOR. (Confidential.)
Downing Street, 16th July, 1903. I HAVE the honour to acknowledge the receipt of your confidential despatch of the 6th ultimo,† on the subject of the currency.
I am much gratified at the reception which you and the Colony under your administration have accorded to the report of the Committee, and I trust that the adoption of their recommendations will confer great benefit on the Colony and the adjoining States.
The Order in Council referred to in paragraph 4 of your despatch was forwarded in my despatch, No. 223, of the 3rd instant. As regards the design of the new dollar I would refer you to my despatch, No. 196, of the 5th ultimo.§ The prepara- tion of the matrices for the coin is proceeding as rapidly as possible, but I doubt if it will be practicable to despatch them to India before the mail of the 24th
With regard to the cost of seigniorage, alluded to in paragraph despatch, I would refer you to my confidential despatch of the 22nd of May.||
instant.
of your
As regards paragraph 9, it would be contrary to the spirit of the Committee's proposals to allow the banks to have bullion coined into Straits dollars, but I agree with you that in order to expedite the supply of the new dollars the banks may be allowed to ship a limited amount of British and Mexican dollars to India, to be coined into Straits dollars at Government expense. It will be necessary, however, that the shipment should be made under Government supervision, and that the authority of the Government for the coinage of a definite number of dollars should be given to the Mint at Bombay. This you would, no doubt, arrange direct with the Mint.
• No. 4.
↑ No. 24. (20676: not printed.
* L.F. transmitting oopy of No. 19. 118877: not printed.
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