PUBLIC RECORD OFFICE
Reference :--
C.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO.
Amend.
ment of
Section 6 of
the principal Ordinance. Amendment of Beotion 7
(1) of the
principal Ordinance Amend- ment of Bection 7A (2) of the principe! Ordinance.
128
in the (iii) by the omission of all the words, following the word " note
fourth line of Sub-section (3) and the substitution therefor of the following words:- but it shall be lawful for the Commissioners to require a person when presenting notes to accept such current coin as the Commissioners may tender provided that nothing in this section shall entitle the Commissioners to require such person to accept sub- sidiary silver coin in excess of the sum for which such subsidiary silver coin is legal tender:
(iv.) by the addition of the following new sub-section to be numbered (4):— (4) Notwithstanding anything in this section contained it shall be lawful for the Commissioners from such date as shall be notified by Order of the Governor in Council published in the "Gazette" to require a person when presenting notes to accept the equivalent in gold of the notes so presented at the rate fixed under the provisions of this Ordinance."
3. Section 6 of the principal Ordinance is amended by omitting all the words in the section after the words "own notes" in the fourth line.
4. Section 7 (1) of the principal Ordinance is amended by the omission of the word "silver" and the substitution therefor of the word
current.
33
5. Section 7A (2) of the principal Ordinance is amended by the omission of the word "silver" in the sixth line thereof and by the addition of the following words " and it shall be lawful for the Commissioners for this purpose to hold in any part of the Colony such amount of coin reminted as aforesaid as to them shall seem fit."
Passed this 22nd day of October, 1906.
Enclosure 2 in No. 181.
E. L. BROCKMAN,
Clerk of Councils.
REPORT on an Ordinance further to amend "The Currency Note Ordinance, 1899," being Ordinance No. XXVI. of 1906.
1. This Ordinance marks a further stage in the elaboration of the currency The first is to prevent the system of the Colony. The main objects are two. depletion of the silver portion of the Note Guarantee Fund. This is effected by the new Sub-section (4) added to Section 4 of the principal Ordinance. The second is to make the wording of the principal Ordinance conformable with the adoption of a monetary scheme in which gold is legal tender. This is affected by the omission of the word "silver" in the principal Ordinance where the retention of the word is inconsistent with such a scheme."
2. I am of opinion that this Ordinance may properly receive the Royal Assent.
J. R. INNES,
Attorney-General's Chambers, Singapore,
45214
7th November, 1906.
No. 182.
Acting Attorney-General.
THE GOVERNOR to THE SECRETARY OF STATE.
(Confidential.)
MY LORD,
(Received 8th December, 1908.)
-
[Answered by No. 184.]
Government House, Singapore, 15th November, 1906.
I HAVE the honour to acknowledge the receipt of your despatch, confidential, of the 19th ultimo, enclosing draft of the Currency Order in Council which it was proposed to submit to His Majesty in Council on the 22nd ultimo reducing the fine- ness of the Straits dollar to 800.
129
2. During the last month silver has risen from 313 to 32} and appears to be firm at the latter figure, and there is considerable fear amongst the merchants and others in the community that the rise will continue and that even with a dollar only 800 fine we may shortly find ourselves again in the same position as we are at the present moment, when, with silver at 321, the intrinsic value of our dollar is 27 77, as compared with its token value of 28, leaving a margin of less than a farthing on the dollar.
3. The Chamber of Commerce has addressed a letter to me urging that the intrinsic value of the new dollar should be greatly reduced so as to make the cur- rency secure for all time; and the Legislative Council, as you are aware from my telegram of the 8th instant, at its meeting on 7th instant unanimously passed a resolution urging the adoption of a larger margin, and I confess that in all the circumstances, as the issue of a new dollar is absolutely necessary,
appears to
it me that it would be well to be on the safe side and to reduce the intrinsic value of the dollar to a point considerably lower than the eight-ninths of its present value, as recommended in my confidential despatch of 13th September last.†
4. At this date last year silver was only 291, so that it has risen 31 within
a year. In six months, from May to November, last year it rose from 261 to 294, so that in the last 18 months it has risen 62.
5. With a dollar 800 fine silver must rise to 37 before our dollar would be
worth exporting.
6. Your Lordship is in a better position than I am to judge whether the rate
of increase of the last 18 months is likely to be maintained, and I would only point out that if it is even approximately maintained we shall in little more than a year hence again be in the position in which we now are.
7. I confess that some time ago I felt that the reduction to '800 would afford a safe margin for years to come, but the recent further rise of more than 2d. in a month has led me to change my views. Even a temporary rise above 37 would do great harm to our trade, even if it was followed by a considerable fall, and a succession of such rises and falls would almost paralyse it.
8. The decision of His Majesty's Government not to raise the gold value of the dollar beyond 2s. 4d. has given general satisfaction, and the issue of dollar notes which has now begun is much appreciated, and coupled with the knowledge of the further steps contemplated, has restored public confidence. It would in fact be impossible now, without grave injustice, to increase the exchange value of the dollar without making provision that all contracts for payments made before such increase should be liquidated by tender of proportionately fewer dollars. This would cause much confusion, and the enhanced price of local products and services would cause acute distress, while the great trade in native produce would suffer severely.
9. A further reason for increasing the margin of safety is the excessively high charge for minting demanded by the Birmingham Mint the effect of which, so far as the Government is concerned, is to reduce the margin by increasing the cost of replacing the existing dollars or the 800 fine dollar if it should have to be replaced.
10. It has, I presume, not escaped your Lordship's notice that if the dollar is simply reduced to 800 fine we shall be in the position of having the half-dollar and the subsidiary coins intrinsically more valuable then the dollar in proportion to their nominal value. The weight of the dollar is 416 grains and that of the half dollar 209 62 and the subsidiary coins in proportion. This can best be met by reducing the fineness of the silver tokens below the 50-cent piece to 600 and leaving their size as at present, the increased proportion of alloy making a small reduction in the weight.
11. I would point out that the draft Order in Council forwarded in your despatch under acknowledgment is incomplete, as, though the amount of alloy in the dollar is doubled, if the size and thickness are to remain the same as at present, as I presume they must if the same die is used, the weight must be less than that of the existing dollar, as the alloy is lighter than the silver displaced.
An amending Order in Council or fresh dies will therefore be required, and
I would urge that advantage be taken to reduce the size of the dollar and half- dollar as proposed in my telegram of the 5th instant, and to recast the whole of
✔ No. 158.
• No. 168.
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↑ No. 146.
↑ No. 160.Page 181
130
the third schedule of the Order of 1895 dealing with the weight and fineness of the subsidiary silver coinage.
46252
No. 183.
I have, &c.,
JOHN ANDERSON.
TREASURY to COLONIAL OFFICE.
(Received 10th December. 1906.)
[Answered by No. 185.]
Treasury Chambers, 8th December, 1906. SIR,
WITH reference to Mr. Lucas's letter of the 27th ultimo (No. 43217/06),* the Lords Commissioners of His Majesty's Treasury direct me to acquaint you, for the information of the Secretary of State for the Colonies, that they are causing a draft Order in Council to be prepared prescribing for the Straits Settlements dollar and half-dollar standard weights of 312 and 156 grains, respectively, with mille- simal fineness, 900.
As regards the other subsidiary silver coins the Master of the Mint takes exception to the proposal to reduce their existing weights by one-1ourth, on the ground of inconvenience. He points out that the 5-cent piece is already of less weight than the threepenny piece, and he suggests, as an alternative, the reduction of the fineness of those coins from 800 to 600.
My Lords do not think it desirable to make such a reduction in the fineness of the small coins if it can be avoided. There is not the same necessity for imme- diate action in the case of the limited tender coins as in the case of the dollar and the half-dollar. Accordingly, my Lords prefer to wait until the need for altera- tion becomes more apparent than at present, and merely to take such power as For will enable the small value coins to be adjusted when the need does arise. this purpose they propose to provide in the new Order in Council that the standard weights or fineness of the subsidiary silver coins below the half dollar may be altered at any time under Proclamation to be made by the Governor of the Colony, with the approval of the Treasury and a Secretary of State.
I am to add that my Lords concur in the view expressed in Mr. Lucas's letter of the 28th ultimo (No. 43310/06)† that the sterling value of the new dollar should not be specified on the face of the coin.
131
and to keep up regular consignments afterwards. The Royal Mint will undertake as much of the re-coinage operations as possible, but they are very full of orders for next year. For the present the dollars received from the Colony are being sent to Birmingham, where the charges for re-coining into pieces of 312 grains and 900 fineness will be some £1,600 per million pieces less than for re-coining into pieces of 416 grains and 800 fineness.
4. I would add, with reference to your despatch, No. 406, of the 31st of October,* that, in view of the fact that the reduction in the weight of the dollar will obviate any difficulty in distinguishing it from the old, I see no necessity for altering the present legend "One dollar, and I do not think it desirable that the sterling value should be specified on the coin. You will see that the Lords Com- missioners of the Treasury concur in this view.
45252
SIR,
No. 185.
COLONIAL OFFICE to TREASURY. [Answered by No. 190.]
I have, &c.,
ELGIN.
Downing Street, 14th December, 1906.
letter your I AM directed by the Earl of Elgin to acknowledge the receipt of of the 8th instant regarding the currency of the Straits Settlements, and to transmit to you, to be laid before the Lords Commissioners of the Treasury, a copy of a despatcht which is being addressed to the Governor on the subject.
Lord Elgin concurs in their Lordships' proposals as to the provision to be made in the new Order in Council for future subsidiary coins below the value of 50 cents. As it may be thought well to meet the difficulty of reducing the weight of the silver 5-cent piece by replacing that coin with one of copper or mixed metal, I am to suggest that the Order in Council should be so worded as to provide for this contingency.
A copy of a confidential despatch§ just received from the Governor is enclosed for their Lordships' information. The Governor's wishes are being met by the measures now in process of execution.
I am, &c.,
C. P. LUCAS.
45252
I am,
&c.,
E. W. HAMILTON.
45166
No. 186.
PUBLIC RECORD OFFICE
Reference :-
TINC.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
SIR,
No. 184.
THE SECRETARY OF STATE to THE GOVERNOR. [Answered by Nos. 201 and 203.]
(Confidential.)
Downing Street, 13th December, 1906.
I HAVE the honour to acknowledge the receipt of your confidential despatch of the 15th ultimo and to refer you to my confidential despatch of the 27th ultimo,§ from which you will have learnt the steps that are being taken for the reduction of the weight of the Straits Settlements dollar.
2. I now enclose a copy of a letter from the Treasury as to the proposed new Order in Council. I have concurred in their Lordships' suggestions as to the pro- vision for future subsidiary coins below the value of 50 cents, and I shall no doubt receive your observations in due course as to the weight and fineness of these coins. The objection to a reduction in the weight of the 5-cent piece might be met by the substitution of a copper or mixed metal coin for that denomination.
· 3. I learn from the Royal Mint, semi-officially, that the Deputy Master hopes to ship the first half-million of the new dollars about the third week in January,
| No. 183.
• No. 180. ↑ Not printed. ↑ No. 182.
No. 179.
THE SECRETARY OF STATE to THE GOVERNOR. [Copy to Treasury and Board of Trade, 26th December, 1906. L.F.] [Answered by No. 213.] (No. 329.)
Downing Street, 20th December, 1906.
SIR,
I HAVE the honour to acknowledge the receipt of your despatch, No. 422, of November 14th,|| and to inform you that His Majesty the King will not be advised to exercise his power of disallowance with respect to the Straits Settlements Ordi- nance, No. 28 of 1906, entitled “An Ordinance further to amend 'The Currency Note Ordinance, 1899.'"
2. I should be glad if you would furnish me with reprints of the main Ordi- nance as altered by the numerous amending Ordinances which have been passed since 1999, as soon as copies are available.
I have, &c.,
ELGIN.
43310: not printed.
† No. 188.
+ No. 184.
f No. 182.
No 181.
31104