PUBLIC RECORD OFFICE
Reference
C.O. 882
9
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC COPYRIGHT PHOTOGRAPH--NOT TO
|PUBLIC RECORD OFFICE, LONDON
52
The adverse factors are the weakness of the Far Eastern Exchanges, which has put buying out of the question, and has rendered sales from the Far East a profitable transaction on parity. Large sales have been already made, and we believe there is a fairly big oversold account open for September and October, which will be an element of strength later on.
Mexico is an uncertain factor. If the proposed currency reform takes place, it is supposed that she will sell her surplus product of silver, instead of coining it, as hitherto, into Mexican dollars, and, if this happens, it is suggested that it will have an adverse effect, as the amounts put on the market in the shape of bars will be greater than the amounts that have been hitherto realised in the shape of Mexican dollars, but we state this with all reserve.
On the above statement of facts, one would reasonably predict a firm market, with a tendency to a higher level of, say, 1d. over the present price, but the immediate position is not good, for at present the Indian Government is only a moderate buyer, and may at any moment cease buying.
France and the United States are not in the market. The Indian bazaars are taking nothing, as there is a reported want of rain in some parts of India; while, on the other hand, China has been a seller, and there is no general demand to meet the daily offerings from America.
The result has been that we have fallen from the level of 27d. to close on 26d., and the tendency is to a lower level yet.
Forming the best opinion we can, from a view of all the factors, we believe that silver will continue to fall, with occasional rallies, on shorts covering, for the next two or three weeks, until we find a fresh level between 25d, and 26d., then, in the autumn, we anticipate better markets, with an improvement in the price to a level between 28d. and 27d. for the rest of the year.
With the turn of the year, we take an unfavourable view of the market, as it is unlikely that the Indian Government will have to buy on so large a scale, and we do not see any other large consumer to take their place, while the adverse position in China, caused by the service of the large European loans and the payment of the war indemnity, will remain.
We anticipate then a gradual fall to a lower level of under 25d., though the fall will be retarded by the purchases for subsidiary coinage for America, England, and, later on, the Straits Settlements.
The continuance of the war in the Far East would tend to postpone the fall, and so also would the purchases of the Indian Government, if prolonged into next.
year.
We shall be very pleased to attend personally, and give any further information you may desire.
31864
(No. 272.) SIR,
No. 71.
We are, &c.,
PIXLEY & ABELL.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 12th September, 1904.) [Copy to Treasury, 21st October, 1904. L.F.] [Answered by No. 72.]
Government House, Penang, 19th August, 1904. WITH reference to your despatch, No. 30, of the 29th January last, I have the honour to forward herewith six copies of a Bill which I propose, with your concurrence, to introduce into the Legislative Council.
2. The objects of the Bill are set out in the Attorney General's "objects and reasons," and it is designed to carry intò effect the suggestions contained in para- graphs 4 and 5 of your despatch quoted above.
• No. 58.
I have, &c.,
JOHN ANDERSON.
53
Enclosure in No. 71.
A BILL intituled an Ordinance further to amend "The Currency Note
Ordinance 1899.”
It is hereby enacted by the Governor of the Straits Settlements with the advice and consent of the Legislative Council thereof as follows:-
1. This Ordinance may be cited as "The Currency Note Ordinance 1899 Short title. Amendment Ordinance 1904 No. II" and shall be read and construed as one with "The Currency Note Ordinance 1899" (hereinafter called "the principal Ordin- ance"). Any copy of the principal Ordinance printed after the commencement Reprints, of this Ordinance shall be printed with the amendment and additions required by this Ordinance.
2. Section 7B (2) of the principal Ordinance is amended by inserting at the end Amend. thereof the words following
ment of
Section 7B
or may be paid to any coinage Department which may hereafter be (2) of the created in exchange for an equivalent sum of Straits Dollars to be calculated prindpal at such rate of exchange as aforesaid."
and by the addition of the following sub-section :-
1.
(3) Gold received by the Crown Agents for the Colonies as aforesaid may
be remitted to the Commissioners of Currency in the Colony to be dealt with
by them in accordance with the provisions of this section.
OBJECTS AND REASONS.
This Bill is introduced by the direction of the Secretary of State,
2. In despatch No. 30 of the 29th January, 1904, he says, "It will probably
be convenient that the Note Issue Department though issuing notes in exchange
for gold, should not hold the gold, but pass it on to the Coinage Department in exchange for dollars."
No special provision to this effect was introduced into the previous amendment Bill, and it was believed that the object was sufficiently secured by Section 7B (2) of the amended Ordinance.
3. The Secretary of State is, however, of opinion that a special provision is necessary with regard to obtaining silver in exchange for gold from a Coinage Department.
4. The second amendment provides for the remission of gold received by the Crown Agents to the Currency Commissioners.
5. By paragraph 4 of the despatch No. 423 of 17th December, 1903, it is laid down that it should be provided that the gold received by the Crown Agents should be regarded as part of the Currency Commissioners' Reserve, and should either be invested by them or remitted to the Colony or used for the purchase of silver to be minted at Bombay into Straits dollars.
6. None of these requirements were overlooked in drafting the amending Ordinance but it was considered that they were sufficiently satisfied by Section 78 (2) although it is not therein specifically laid down that the gold, which forms part of the Currency Reserve, may be remitted to the Colony. The Secretary of State, however, considers that a special provision should be made to this effect.
W. R. COLLYER,
Attorney-General,
Straits Settlements.
Attorney-General's Chambers,
Singapore, 18th July, 1904.
31864
No. 72.
(No. 229.)
SIR,
THE SECRETARY OF STATE to THE GOVERNOR. [Copy to Treasury, 21st October, 1904. L.F.}
[Answered by No. 82.]
Downing Street, 14th October, 1904.
I HAVE the honour to acknowledge the receipt of your despatch, No. 272, of
Ordinance.