PUBLIC RECORD OFFICE
Reference :-
C.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-| COPYRIGHT PHOTOGRAPH—NOT TO
116
5. The steps taken in consequence of this decision explain themselves. Í may point out, in this connexion, that but for the fact that the Commissioners of Cur- rency have retained in their own hands the stock of gold which they have received it might have been impossible to save the situation, since it would have been useless in the absence of that large gold reserve to give them the option of cashing notes in gold, and in that case either the 2s. 4d. rate must have gone, or the Government would have been obliged to cash all its notes in 900 fine dollars at a heavy loss.
6. If the rise in silver continues, as appears probable, the present Straits The exportation of Settlements dollars will no doubt tend to leave the Colony. dollars is, I understand, still prohibited, except to the Netherlands Indies and Borneo, and in reply to your telegram of the 18th instant* I have expressed my agreement with your proposal to cancel the existing exception in favour of the Netherlands Indies, if necessary. It is unlikely that the prohibition of exportation can be made very effective, but in my replyt just referred to, I have pointed out the desirability of insisting, as far as possible, on the dollars being melted down prior to exportation, in order to escape any liability in respect of them hereafter. Other- wise, of course, when silver falls again the exported dollars will return to the Colony to obtain the benefit of the 2s. 4d. rate, and it is unreasonable that the public should take the profit accruing from the enhanced bullion value of the dollar and at the same time retain the Government's guarantee against a fall below the 2s. 4d. rate.
7. It has not been considered desirable to adopt your recommendation as to a change in the design of the dollar, nor to empower you to demonetize the present dollar. The preparation of a new design, and the making of new moulds, would have entailed great delay in the new coinage, which will be a matter of much urgency. Any necessary distinction between the two issues can be obtained by dating the new issue as of the year 1907. No reason is seen for the demonetization of the present dollar, a step in itself scarcely desirable. If the bullion value of the 900 fine dollar is much above 2s. 4d. it will tend to leave the Colony (in the form of bullion, so far as that safeguard can be achieved), but there can be no objection to those that remain in the Colony continuing to be unlimited legal tender at the 28. 4d, rate. If hereafter silver falls again, there will be little difficulty in the dollars of 900 and 800 fine circulating side by side, since both will be overvalued, and the value will not depend on the silver content.
8. On receipt of your telegram of the 17th instant,‡ I at once requested the Lords Commissioners of the Treasury to provide in the proposed Order in Council for the unlimited legal tender of the half-dollar, and provision has been made accordingly. As pointed out in the Treasury letters of which a copy is enclosed there is some disparity in the proportionate weight of the half-dollar-two half- dollars will be of the same fineness and of rather greater weight than the new dollar-but under existing conditions the point is not considered by their Lordships to be of much importance.
9. It is fortunate that there is a large surplus supply of subsidiary coin. I trust that, even if all the existing dollars disappear, currency requirement can be met temporarily by gold, the note issue, and the subsidiary coin.
10. I telegraphed to you on the 19th instant the substance of the proposed Order in Council, and sent a draft of it in my Confidential despatch of the same date. The Order has now been passed and copies are being sent to you in a public despatch.**
39465
(No. 272.)
SIR,
No. 161.
I have, &c.,
ELGIN.
THE SECRETARY OF STATE to THE GOVERNOR.
Downing Street, 28th October, 1908.
I HAVE the honour to forward to you copies of an Order passed by His Majesty
in Council on the 22nd instant, making further provision with regard to the cur
of the Straits Settlements.
rency
I have, &c.,
ELGIN.
• No. 153.
↑ No. 156. + No. 150. No. 134. | No. 157.
No. 158.
• See No. 161.
117-
Enclosure in No. 161.
At the Court at Buckingham Palace,
The 22nd day of October, 1906.
Present,
THE KING'S MOST EXCELLENT MAJESTY IN COUNCIL. Whereas under the Straits Settlements Act, 1866, and other powers enabling Him in that behalf, His Majesty has power to make laws for the peace, order, and good government of the Colony of the Straits Settlements (in this Order referred to as the Colony):
And whereas by the Straits Settlements (Coinage) Order, 1895 (in this Order referred to as the Order of 1895), and by the Straits Settlements (Coinage) Order, 1903 (in this Order referred to as the Order of 1903), provision is made with respect to the currency of the Colony:
And whereas the Governor of the Colony, by a Proclamation made with the consent of the Secretary of State under the Order of 1903, and dated the 5th day of October, 1903, substituted from and after the said date the Schedule to that Order for the First Schedule to the Order of 1995, and accordingly the Straits Settlements dollar became the standard coin of the Colony in substitution for the Mexican dollar:
And whereas it is expedient to make further provision with respect to the currency of the Colony:
Now, therefore, His Majesty, by virtue of all powers vested in Him in that behalf, is pleased, by and with the advice of His Privy Council, to order, and it is hereby ordered, as follows:—
(1) As from such date as may be fixed by the Governor of the Colony by proclamation the tender of payment of money in the Colony, if made in sovereigns coined at His Majesty's Royal Mint in England or at any mint established as a branch of that mint, shall be a legal tender for the payment of any amount at the rate of seven sovereigns for sixty Straits Settlements dollars, if the sovereigns have not been illegally dealt with or have not become diminished in weight by wear or otherwise so as to be of less weight than the weight in that behalf specified in the Schedule to this Order as the least current weight:
Provided that the Straits Settlements dollar shall remain the standard coin of the Colony.
(2) In the Schedule to the Order of 1903, "800" shall be substituted for "900" as the millesimal fineness of Straits Settlements dollars coined after such date as may be fixed by the Governor of the Colony by proclamation.
(3) As from such date as may be fixed by the Governor of the Colony by proclamation the tender of payment of money in the Colony if made in Straits Settlements Fifty cent pieces, mentioned in the Third Schedule to the Order of 1895, shall subject to the provisions of that Order be a legal tender for the payment of any amount, instead of for no greater amount than two dollars as provided by that Order. The Interpretation Act, 1889, shall apply for the purpose of the inter- pretation of this Order, as it applies for the purpose of the interpre- tation of an Act of Parliament.
(5) This Order shall be read as one with the Order of 1895 and the Order of 1909, and may be cited as the Straits Settlements (Coinage) Order, 1906.
And the Lords Commissioners of His Majesty's Treasury and the Right Honour- able the Earl of Elgin, K.G., one of His Majesty's Principal Secretaries of State, are to give the requisite directions herein accordingly.
A. W. FITZROY.