PUBLIC RECORD OFFICE
THILLICO. 882
9
PUBLIC RECORD OFFICE, LONDON).
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- KÖOSYRIGHT PHOTOGRAPH....-NOT TO
162
(18.)
COLONIAL SECRETARY, Straits Settlements, to CROWN AGENTS.
TELEGRAM.
24th July, 1907. Referring to your telegram of 22nd July, if rise in silver likely to continue, better not sell for one month; if not, you may sell up to 3,000,000, giving delivery from dollars in the hands of yourselves or will be shipped from here under your orders up to another million.
(19.)
CROWN AGENTS to COLONIAL SECRETARY, Straits Settlements.
TELEGRAM.
24th July, 1907. In reply to your telegram of yesterday's date, we have sold 843,000 ounces representing $1,000,000, all for shipment to Mint, Calcutta. Refer to my telegrams of 19th July, 23rd July. No dollars here available for sale; all but $500,000 converted into blanks ready for striking dollars. Referring to Governor's despatch, No. 252, to Secretary of State for Colonies, we shall require further shipment of about 2,000,000 dollars for coinage of half-dollars.
(20.)
COLONIAL SECRETARY, Straits Settlements, to CROWN AGENTS.
TELEGRAM.
25th July, 1907. In reply to your telegram. of yesterday's date, sending out by first opportunity Calcutta balance $500,000, completing $1,000,000; discontinue sales until further orders; this cancels the telegram of 24th July regarding sales up
to another million.
(21.)
COLONIAL SECRETARY, Straits Settlements, to CROWN AGENTS.
TELEGRAM.
26th July, 1907. Proceeds of sales of $1,000,000 to Calcutta Mint should be shipped here in gold.
80700
No. 221.
CROWN AGENTS to COLONIAL OFFICE. (Received 27th August, 1907.)
Whitehall Gardens, London, S.W., 26th August, 1907.
In continuation of our letter of the 6th instant, I have the honour to enclose, for the information of the Secretary of State, copies of frther correspondence which we have had with the Government of the Straits Settlements on the subject of the sale locally of uncurrent dollars.
SCHEDULE OF ENCLOSURES.
I have, &c.,
E. E. BLAKE.
1. Colonial Secretary, Straits Settlements, to Crown Agents. 18th July, 1907. 2. Crown Agents to Colonial Secretary, Straits Settlements. 23rd August, 1907. 8. Messrs. Pixley and Abell to Crown Agents. 15th August, 1907.
• No. 220.
A.
163
Enclosure 1 in No. 221.
The COLONIAL SECRETARY, Straits Settlements; to CROWN AGENTS. GENTLEMEN,
Colonial Secretary's Office, Singapore, 18th July, 1907. WITH reference to my letter "Confidential" of the 13th June, 1907, on the subject of selling our surplus silver, I understood from your telegram of the 6th June that the cost of melting and refining to standard silver point our Straits dollars will be about one farthing per ounce; also I learn from your telegram of 28th June that there are other charges at home estimated at another farthing per
ounce.
2. In addition, there is freight and insurance, amounting to .178 pence per ounce, and packing and shipping to .014 pence per ounce.
3. It appears, then, that the cost of sending these dollars home before they can be sold as silver comes to about d. per ounce.
4. Your telegram of the 16th instant stated that you had heard that we had called for tenders locally for $2,000,000, and my telegram of to-day has informed you that we have sold this to the Hong Kong and Shanghai Bank at 7.018 discount (net), which is practically equal to 30 per ounce (net).
5. The Hong Kong Bank are on receipt of the first instalment of the dollars to give us a draft on London payable on demand.
6. On receipt of the draft, I am to request you to invest this on behalf of the
Currency Commissioners.
7. The proceeds from the sale of the small subsidiary silver please hold for us until you receive further instructions, using such as you may require for your general account with us.
SIR,
I have, &c.,
ARTHUR YOUNG,
Colonial Secretary,
Straits Settlements.
Enclosure 2 in No. 221.
CROWN AGENTS to COLONIAL SECRETARY, Straits Settlements.
23rd August, 1907.
I HAVE the honour to acknowledge the receipt of your letter of the 18th July, 15 August, No. C.A. 4607/07, on the subject of the sale made by the Colonial Government of 1907. $2,000,000 to the Hong Kong and Shanghai Banking Corporation.
2. I enclose a copy of a letter from our bullion brokers, Messrs. Pixley and Abell, on the subject, from which it will be seen that, owing to the Indian Govern- ment being willing to take silver in the shape of dollars, a point of which the Hong Kong and Shanghai Bank were no doubt aware when they purchased them, it would have been possible to have obtained better terms if the business had been transacted through us.
8. It will be seen that the price at which the Indian Government were buying was equivalent to a reduction of the refining charge to .092 per ounce standard, .., less than half the usual charge for refining, which amounts to about jd. per ounce, while as the dollars would have been shipped to Calcutta instead of London the freight charges would have been proportionately less.
4. Assuming, however, that the freight charges were the same as for shipment
to London, and that the sale had been effected on the 17th July, the result would have shown as follows:-
d.
Price per ounce 814d.
31.875
Less Freight insurance and packing
.192d.
Equivalent of refining fee
.092d.
Crown Agent's commissionth per cent.
.02d.
.304
81.071
-d. per ounce against the 30fd, obtained in the Colony.
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