PUBLIC RECORD OFFICE
Reference :---
TILICO. 882
6
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
PUBLIC RECORD OFFICE, LONDON
78
At the same time, I would declare that on and after May 1st notes will be issued in Singapore in exchange for gold at the rate of $9 to £1. Only half the amount of gold need be remitted, the rest can be invested.
To do this it would be necessary to amend the Ordinance authorising the issue of notes against telegraphic transfers on London at the best rate tendered, pro- vided that the margin is sufficiently over the fixed rate to cover the cost of remitting gold to Singapore. Amendment can at any time be passed at one sitting on declara- tion of urgency.—ANDERSON.
1978
1978
No. 103.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 8.35 p.m., 17th January, 1906.) TELEGRAM.
[Copy to Treasury, 22nd January, 1906. L.F.] Answered by No. 104.]
Exchange on England, 2s. 3d.—ANDERSON.
No. 104.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 12.30 p.m., 20th January, 1906.)
TELEGRAM.
[Answered by No. 105.]
Your telegrams of 14th and 17th January. In view of unsettled condition of exchange I am not in favour of fixing rate at present, but if you have further argu- ments which you desire to bring to my notice I will give them full consideration.—- ELGIN.
2403
No. 105.
THE GOVERNOR to THE SECRETARY OF STATE. (Received, 11.12 a.m., 22nd January, 1906.) TELEGRAM.
[Copy to Treasury, 27th January, 1906.
[Answered by No. 107.]
(Paraphrase.)
Secret.
L.F.]
Referring to your telegram of 20th instant, for which I am much obliged. Since my statement of 12th January speculation checked, and, after some fluctua- tion, exchange steady about 2s. 4d. Since June price of tin has risen from £134 to £165 a ton and our export averages 4,000-5,000 tons- a month. That alone is sufficient, with a currency of only 50 million dollars, to account for the rise. Note issue provides automatically for maintaining exchange, especially if the sovereign is legal tender and in any case with Government local balances, approximately 10 millions. Government are in position to maintain rate fixed. Legitimate busi- ness is suffering serious loss from uncertainty. Government also will probably find itself unable to accept any tender for Harbour Works and tenders should as soon as possible be invited for urgent Harbour Board Works, and same position will arise as the bulk of the expenditure in both cases will be in local contracts and the contractors must insure against risk.
Loss to Government and to community from the prolongation of uncertainty far in excess of any risk of involuntary failure of fixing rate as I proposed.
↑ No. 104.
Nos. 102 and 103
79
Present position of European police, warders, and others with little or no margin above actual necessaries, very acute, and relief must be given unless fixity declared so that prices will begin to adjust themselves.
Referring to your secret despatch of 17th November, * paragraph 4 [? 6], and to despatch of 24th November,† paragraph 6, last sentence, may I invite, on behalf of the Currency Commissioners, tenders for remittance, in blocks of 50,000 a week, of sums not exceeding £250,000, half for gold remittance pending fixture [ of] lawful rate? This would be relief of present stringency, but this uncertainty should not be prolonged, and I hope that you will agree to fixity immediately proposed rate is reached.-ANDERSON.
2575
SIR,
No. 106.
THE BRITISH NORTH BORNEO COMPANY to COLONIAL OFFICE. (Received 24th January, 1906.)
[Copy to Governor, 26th January, 1906. Confidential. L.F.]
[Answered by No. 108.]
15, Leadenhall Street, E.C., 23rd January, 1906. THE Court of Directors have had under consideration representations made to them through various planting and mining companies which are carrying on operations in British North Borneo on the subject of the rate of exchange at present ruling for the new Straits dollar.
In the interests of those companies and having regard to the very important bearing which the rate of exchange must have on the general development of the Company's territory the Court have decided to appeal to the Secretary of State to give the matter his earnest consideration.
I am to point out that a continuance of the present high rate of exchange will seriously militate against the opening up and development of North Borneo.
The Court venture to submit that the Secretary of State should cause the Singapore authorities to take steps to bring the Straits dollar as near as possible in accordance with the Philippine dollar and the Japanese yen, otherwise the Straits and North Borneo will be at a very considerable disadvantage as fields for the invest- ment of capital, and the present planting, mining, and other industries will be handicapped to the extent of the difference between the respective values of the different dollars.
The Court would respectfully suggest that the remedy for the existing state of affairs is to introduce a new dollar for the Straits Settlements containing such a less amount of silver as would warrant the rate of exchange being fixed at the same level as the Japanese yen and the Philippine dollar, namely, about 29.
I am, &c.,
HARINGTON G. FORBES,
2403
No. 107.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 5.10 p.m., 25th January, 1908.) TELEGRAM.
[Copy to Treasury, 27th January, 1906. Secret. L.F.] [Answered by No. 109.]
>
(Paraphrase.)
Secretary.
With reference to your telegram of January 22nd. At present I cannot agree to your rate of nine dollars to the pound as, in view of recent movements of silver, the margin is too narrow. I should still very greatly prefer, having regard to the
• No. 90.
↑ No. 98.
↑ No. 105.