PUBLIC RECORD OFFICE
Reference :-
C.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
Short title.
Defni. tions.
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ranging up to at least 2s. 4d per dollar, in the belief that the value of the dollar was more or less fixed in the neighbourhood of 2s. 4d., and that Government would not again legislate to alter its average exchange value.
6. The reason we aflirm that 2s, 3 27/32d. will come to be the average exchange value of our dollar, or in other words, our standard of value, is that the Currency Commissioners will have to operate at 2s. 4d. per dollar in order to get gold in London, as, unless they do so, gold will be imported into Singapore, it being frequently practicable to import sovereigns into the Straits Settlements at 2s. 41/18d. per dollar, and even at times at rates ranging down to 2s. 3 d., at which last-mentioned rate Government themselves laid down 90,000 sovereigns in Singapore early in the present year; and as 23. 4d. would thus be our maximum exchange, and 2s. 3 11/16d, is the redemption value in London for notes surrendered to the Currency Commissioners in Singapore, 2s. 3 27/32d. becomes the half-way point between the two rates at which the Currency Commissioners will issue and redeem notes in Singapore against gold in London.
7.
We endorse the arguments set forth in the rider (dated 1st October, 1908) by Messrs. Baker and Anderson to the Report of the Select Committee on the Currency Note Bill, and reiterate that the change to be effected by Section 10 of the amending Ordinance has not been called for by reason of any necessities relating to the trade of commercial interests of the Colony; and we are of opinion that experiments in currency matters are liable to be attended by disastrous consequences and unforeseen dangers.
8. We protest against the Currency Commissioners being allowed to operate at will in exchange, and we view with the gravest apprehension the consequences of their doing so. The uncertainty as to when they might operate would at times hold the market in a state of trepidation, and might on occasions even temporarily paralyze business, all of which would be detrimental to the welfare of the Colony.
9. We see no parallel between India and the Straits Settlements such as would warrant this Colony following the example of India in Currency Note matters, and we would, therefore, submit that even if the currency system of India were a success, it would be no criterion that the same system would be the best adaptable to the Straits Settlements, as India, in contradistinction to the Straits Settlements, possesses unlimited wealth and is usually a vast creditor country.
Enclosure 7 in No. 276.
THOS. S. BAKER. JOHN ANDERSON. T. JIAK KIM.
DAVID J. GALLOWAY. EVELYN C. ELLIS.
THE CURRENCY NOTE ORDINANCE 1899."*
(Ordinance No. IV. of 1899.)
(As amended by Ordinance XIII. of 1903, IV. of 1904, III.t of 1905, and I., V., XXIII., and XXVI. of 1906.)
AN Ordinance to provide for the Issue of Government Paper Currency.
[28th February, 1899.]
(L.B.)
C. B. H. MITCHELL,
Governor and Commander-in-Chief.
Whereas it is desirable that there should be an issue of Government Paper Currency to supplement the issue of Notes by the Banks:
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."
2. In this Ordinance--
The expression "Secretary of State" means one of Her Majesty's Principal
Secretaries of State.
• COLONIAL OFFICE NOTH.—As printed here, the amendments made by Ordinance No. XXVII. of 1908 are included,-the portions repealed being included within square brackets and additions shown in italics.
The amendment made by this Ordinance was repealed by Ordinance 1 of 1906.
!
as
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The expression "current coin" means coin which is for the time being legal
tender in the Straits Settlements.
Note Issue.
3. (1) A Board of Commissioners of Currency (in this Ordinance referred to Commis-
the Commissioners ") shall be established for the purpose of this Ordinance and sioners of shall consist of the persons for the time being lawfully discharging the duties of Currency. Colonial Secretary and Treasurer and of one other person nominated by the Governor.
(2) The Commissioners shall have an office at Singapore and at such other places as the Governor may appoint and may employ such officers and persons as may be from time to time authorized by the Governor.
(3) Any act of the Commissioners may be signified in writing under the hands of the Commissioners.
Commissioner is for the time being unable to act the Governor may
(4) If any
appoint a fit person to act in his place during such inability.
*4.-(1) Subject to the provisions of this Ordinance the Commissioners may Power to from time to time provide and issue and re-issue in exchange either for current issue notes. coin or for notes previously issued under this Ordinance notes (in this Ordinance referred to as "currency notes").
(2) A currency note shall be a promise on the part of the Government of the Straits Settlements to pay to the bearer on demand the amount named therein; and the amount required for such payment shall be a charge on the moneys and securities in the hands of the Commissioners under this Ordinance and on the general revenue of the Colony; and if a sum is required to meet any such note and the said moneys are insufficient to meet it the sum shall forthwith on the demand of the Commis- sioners be issued under the order of the Governor out of that general revenue in priority to all other charges except those charged thereon by any Ordinance passed before this Ordinance and for the time being payable.
(3) The holder of a currency note shall be entitled to obtain on demand during the usual banking hours at the office of the Commissioners payment in current coin of the amount expressed in the note; but it shall be lawful for the Commis- sioners 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 subsidiary silver coin in excess of the sum for which such subsidiary silver coin is legal tender:
[(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.
Denomina-
hundred tion and
5. (1) Currency notes may be for the following denominations namely one dollar five dollars ten dollars twenty dollars fifty dollars one dollars and any multiple of one hundred dollars and the amount of notes form of of each denomination shall be such as may be fixed by the Commissioners with the notes. approval of a Secretary of State.
(2) Currency notes shall be in such form and of such design and printed from such plate and on such paper and be authenticated in such manner (whether by the signatures of the Commissioners for the time being or facsimiles of those signatures or otherwise) as may be approved by the Secretary of State.
(3) The plate shall be prepared and kept and the notes printed issued and cancelled under such regulations as a Secretary of State may make for the purpose of preventing fraud and improper issue.
notes.
6. A currency note shall be a legal tender in the Straits Settlements of the Notes to amount expressed therein except a tender by the Commissioners at their office or be legal a tender by any bank lawfully authorized to issue notes in redemption of its own tender.
7-(1) Subject as hereinafter mentioned the current coin received in exchange
Applion- for currency notes shall form the Note Guarantee fund and be held in the Colony tion of coin by the Commissioners or in London by the Crown Agents for the Colonies for received in
exchange meeting the payment of the notes and shall not be applied for any other purpose. for notes.
• As amended by Ordinance XXVI. of 1906.
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