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PUBLIC RECORD OFFICE

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Reference :-

C.O. 882

5 PUBLIC RECORD OFFICE, LONDO

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC COPYRIGHT PHOTOGRAPH-NOT TO

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COLONIAL CURRENCY COMMITTER :

manifest, and it is understood that the Government of India would be prepared to meet the demand by allowing the Bombay Mint to coin a British dollar, on terms which are understood to be reasonable, and under an arrangement with Her Majesty's Government, on behalf of the Colonies interested.

11. For the above reasons the Straits Bettlements Association begu respectfully to urge upon your Lordship the claims which have been put forward by the Chambers of Commerce of Bingapore and Hong Kong; that arrangements should be made as early a possible by Her Majesty's Government, permitting the ooinage of a British dollar, the same to be made legal tender in their respective Colonies concurrently with the dollars now in use. I have, &c. (Signed)

WILLIAM ADAMSON, Chairman, Straits Settlements Association.

Enclosure in No. 33. RESOLUTION passed by the Singapore Chamber of Commerce at a meeting held on the 22nd March 1894. "That the Committee of the Chamber be instructed to act in co-operation with the Hong Kong Chamber of Commerce in bringing before the Colonial Omoe, through the Government, the necessity of authorising the coinage of British dollar of the same weight and purity sa the Mexican dollar, such coin to be declared legal tender in the Colony and in Hong Kong concurrently with the present legal tender."

Resolation passed by the Ntraits Settlements Asso- ciation at a meeting held on the 22nd May 1894.

**That it is expedient in the interests of the Colony that Immediate facilities should be given by the Government for the coinage of a British dollar of equal fineness and weight with the Mexican dollar, the same to be made a legal tender concurrently with the dollars now in uss in the Colony."

No. 84,

COLONIAL OFFICE to TREASURY.

(Answered by No. 35.)

Downing Street, BIR,

July 91, 1894. Tax Lords Commissioners of the Treasury are doubtless aware that the Marquess of Ripon last year, after the closing of the Indian minta, requested a com- mittee, consisting of the Lord Chancellor, Lord Farrer, Lord Welby, Mr. Leonard Courtney, and Mr. B. W. Currie, acting with Sir R. Meade and Mr. Fairfield of this Ofoe, to consider and advise his Lordship upon questions connected with the currency of the Eastern Colonies.

I am to request you to lay before their Lordships the enclosed copy of a memorandum addressed to that Committes (with socompanying printed papers) relative to a proposal that a British dollar should be coined at the Indian mints, for circulation in the Straits Settle- ments and Hong Kong, of equal weight and fineness with the Mexican dollar.

The committee has nnanimously decided that effect should be given to the proposal, and Lord Bipon pro. poses with their Lordship's ooncurrence to take the necessary steps for carrying it into effect,

His Lordship would be glad if the Deputy Master of the Mint could at once be naked to advise as to a suitable design for this coin.

It would probably be convenient that the matrix for the dies should be made in this country to be sent out to India, from one of the mints of which country the now coin is to be juued,

The expense of ooining the new dollars will be met by the Banks, bat his Lordship proposes that the cost of making the dies should be charged to the Straits Bettlementa and Hong Kong Governments.

In order to legalise the new coin in the two Colonies, (4) as regards the Straite Settlements, it will be necessary to ja ne an Order In Council amending the Straits Settlements Currency Order in Council, 1890; and (b) as regards Hong Kong, a proclamation could be issued by the Governor (see Hong Kong Ordinance 1 of 1864), but their Lordships may perhaps think it preferable, for the sake of uniformity, that the currency of Hong Kong alus should be regulated by an Order in Council similar to the Straits Settlements Currency Order.

In any case, the necessary instruments cannot be inued until the design for the new coin in settled.

I am to add that the matter is regarded as a pressing one, and if, as Lord Ripon assumes, their Lordships concur, I am to request that they will take whatever steps may be necessary at an early date.

I am, &c. (Bigned)

EDWARD FAIRFIELD.

Enclosure in No. 84. MINORANDUM for the ComWIDERATION Of the ColowTAL CURRENCY COMMITTER.

In December last, a memorandum was circulated to legalisation of the Japanese yen in Hong Kong, but the Colonial Currency Committee suggesting the before any decision was taken on that proposal, a telegram" was received from the Governor of Hong Kong, recommending the coinage and legalisation of

■ British dollar of equal weight and fineness with the Mexican dollar. This proposal was put forward by a special committee of the Hong Kong Chamber of Commeron, which on the same time advised the sbandenmand of the proposal to legalise the Japanse yen, "in view of the great uncertainties which sulat în

connexion with that coin."

The coinage of a British dollar is asked for on the No., ground of the scarcity of Mexican dollars during the last twelve months, which, according to the report of Hong Kong Committen, has seriously reduced the "circulating medium in Hong Kong, has been highly "inconvenient, and may very easily at any moment “become dangerons.

No.

The proposal that a British dollar should be coined Non fur circulation in the Straits Settlements as well as in

No.12 Hong Kong is strongly urged by the Banks in both Colonies, and is supported by the London Chamber of Commerce, by the 'China Association in London, and by the Strait Bettlements Association in London, and the Singapore Chamber of Commerce.

No intimation of any opposition to the proposal has been received from Hong Kong, and the resolutions passed in its favour by the Singapore Chamber of Commerce and the Straits Settlements Association, although not unanimous, were adapted by decided majorities,

It seems that some, at any rate,of those persons connected with the Straits Bettlements who have not supported the proposed British dollar, have been influenced by a desire to put the Straits Settlements currency ultimately on a gold basis. This question was considered by the Straits Settlements Currency Committee, 1893, whose report is anne zed, and it will be seen that the majority of that committee, including all the native members, were in favour of the maintenance of the silver stan dard; and the Colonial Carrenoy Committee will probably agree that it is not expedient under these circumstances to attempt to force the adoption of a gold standard upon the Straits Settlements, and still Tess upon Hong Kong.

The coinage of a British dollar has frequently been No St. mooted before, but hitherto has been considered im. practicable on the ground of expense, but this dimculty is now met by the proposed arrangement under which the Indian Government is willing to issue the coin from the Indian minta at a charge of 1 per cent., the Chartered Bank of India, Australia, and Chins, in conjunction with the Hong Kong and Shangbal Bank," having offered to guarantee the payment of that charge on a minimum of 5,000,000 dollars annusily.

It is possible that this new dollar would not be much used, but if the scarcity of Mexican dollars continues, so that it will be more profitable to obtain the British dollar from the India mints than to buy Mexican dollars, the arrangement will act as a useful safety valve; and the measure, even if no actual usa in maɗo of it, will be very acceptable to the banks and will give confidence to the general community in 'the sufficiency of their circulating medium.

The Marquess of Bipon therefore proposes, with the concurrence of the Colonial Currency Committee, to sanction this experiment of coining a British dollar for eirculation in the Btraite Bettlements and Hong Kong; and his Lordship would be glad to learn, as soon as possible, whether the members of the committee have any objection to this proposal.

A copy of this memorandum and of the annexed correspondence has been circulated to each member of the committee.

By order of the Secretary of State for the Colonies.

(Signed) Gomez W. Jousson, Downing Street,

4 July 1894.

* No. 2.

↑ No. 274.

Becretary:

Bessional Paper No. of 1890.

SIX,

No. 35.

APPENDIX II.

TREASURY to COLONIAL OFFICE.

Treasury Chambers,

October 5, 1894. * THE Lorda Commissioners of Her Majesty's Treasury have had before them Mr. Fairfold's letter of the 1st July last, with its enclosures, proposing that a British dollar should be coined at the Indian Mints, for circulation in the Straits Bettlement, and Hong Kong, and I am to request you to inform the Secretary of State that their Lordships approve of the proposal, upon condition that all expenses (other than the cost of making the dias) connected with the coinage, &c., of the new dollar be borne by the Banks who may demand supplies of the coin.

Their Lordships have communiɑnted with the Deputy Master of the Mint on the subject of the design and of the weight and fineness of the British dollar; and I am to tranamit, for the information of the Marquess of Ripon, copies of three reports, &o. which have been received from him under date the 28th August and the 12th and 28th ultimo, respectively.

In view of the opinion expressed by the two Banka in their letter of the 11th mltima, my Lorda sospiciar that the coin should weigh 416 grains and be of 900 millesi- mal finecem, like the Japanese yon and the earlier Hong Kong Mint dollar (of the second issue). They also approve of the designs inclosed by the Deputy Master in his latest report.

As regards the question of making the British dollar legal tender, I am to state that, in their opinion, it will perhaps be sufficient, so far as Hong Kong is concerned, if the new ooin be for the present authorised by pro- clamation of the Governor under the Royal Proclama tion of 9th January 1863, and Local Ordinance No. 1 of 1864, as was done in the case of the Hong Kong Mint dollar and the United States trade dollar.

But my Lords take this opportunity of pointing out to Lord Ripon the inadequate regulations for the currency which obtain in Hong Kong, as compared with the Straits Settlements, seeing that in the former Colony there is no legislative provision respecting fineness or weight of the standard coin or its authorised equivalents. When experience has been gained of the reception of the British dollar in Hong Kong, if not, indeed, forthwith, it will be a queation for the Secretary of Stats to deside whether stop should not be taken to plaos the currency legislation of the Colony on a sound footing by consolidating and amending Order in Council.

With regard to the Straits Settlements, as the Order in Council of 21st October 1890 contains no provision for admitting new coins to legal tender equally with the coins specified in Part II of the First Schedule to the Order, it will be necessary to obtain a further Order in Council legalising the currency of the British dollar in the StraiM.

My Lords will await the reply of the Secretary of State to this letter before taking staps to prepare the above Order in Council.

Biz,

I am, &c. (Signed)

Enclosure 1 in No. 35,

G. L. RYDER.

Royal Mint, August 98, 1894.

I AM directed by the master of the Mint to return horewith a letter from the Colonial Office, dated the 21st ultimo, and other papers, relating to a proposal that a British dollar should be issued for circulation in the Straits Settlements and Hong Kong, and referred to me by order of the Lords Commissioners of Her Mujonky's Treasury, and to report as follows.

As regards the question of designs for the proposed coin, I am to state, for their Lordships' information, that difficulty is to be anticipated in the future, if the ordinary practice is adopted of placing the Sovereign's head on the obverse, as it would be necessary to change the effigy with each succeeding reign, sud is is well known that Eastern races view any change of design with suspicion. As an instance of this suspicion, "it may be mentioned that the Maria Theresa dollar {"Levantinen-Thaler ") issued by the Austrian Govern- ment for circulation in the Levant, is still struck with dies bearing the date 1780, and of the design adopted at - that period. The absence of any special inscription in Chinese or other Eastern characters from the Mexican

• No. 34

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dollar would suggest the conclusion that, in the case of a British dollar, no such special inscription is required, but it is the opinion of the two gentlemen whom I mention below as having been consulted in this matter, that it might be well that the new coin should bear upon it the expression of its value "one dollar" in Chinese characters, and it would appear destrable, as the coin is for circulation in the Straits Settlements as well as in China, that the inscription should also be in Malay. Both could, if it is thought desirable, be without difficulty introduced into the design for the reverse of the coin. Bearing in mind that the sacred character of the dragon in the countries in which the new dollar would principally circulate precludes the use of any representation of St. George and the dragon, I have obtained designs which are enclosed, and which I am to recommend for adoption for the obverse and reverse of the proposed coin. Their Lordships will perosiva thas the obverse bears the Royal Arms on a shield, and the reverse the words "One Dollar" and the date.

-

Certain other points arise in considering the proposal to issue those coins to whịch ở is necessary thas I should draw their Lordship's attention. The most important of those han refurasoe to the standards to be adopted for weight and fineness. Throughout the reports of the Straits Settlements and Hong Kong Currency Committees, in the methofándum addressed by the Marquess of Ripon to the Oolonial Currency Committee, and in the letter of the 21st July last, from the Colonial Office, reference is frequietly made to the fact that the new coins should be " of equal weight and "Anenous with the Maxiosa dollar." The standard weight of thin cein being 417 · 8 grains, and the finenes 909 7, it follows that the standard amount of fine silver contained in it is 877 · 18 grains, but, as it appears from a report to their Lordships from this department in 1891, the actual average amount of fine silver con. tained in coins sa issued from the Mexican minta, is about 376.5 grains.

An Order in Council of the 91st October 1890, provides that, while this coin is the standard coin of the Straite Settlements, certain other coins, and notably the Japanese dollar or yen, are also legal tender for any amount, As the standard weight and Aneness of this latter coin are 416 grains and 900 respectively, the standard amount of Ins silver contained in it is only 3744 graina, or 9-78 graina less than in the Mexican dollar. An important question at once arises, therefore, sa to how far it is necomary that a British dollar intended to circulate side by side with the yen should possera qu intrinsic value above that of the latter ouin represented by 2.78 grains of fine silver, or 0·743 per cent. The Banks at whose expense the coins will be issued are eridently the bodies primarily interested in this question, and on this point I have been favoured with the views of two gentlemen representing the two most important banks having relations with Hong Kong and the Straits Settlements. These gentlemen, Kr. Thomas Forrest, manager of the Chartered Bank of India, Australia, and China, and Mr. G. E. Noble, Joint Kanager of the Hong Kong and Shanghai Banking Corporation, advocate the adoption of 417 graina as thọ standard weight and 900 as the standard finestees of the new coin, which would thus contain 375-3 grains of fine silver, and they assure me that such a coin would be well received in the Chinese Empire as well as by the trading communities with which they are more directly connected. It is anticipated that the slight increase of one grain in weight as compared with the Jon would afford an indnooment to the Chinese to Rccept the coin, while the advantage thus gainel would compensate the Banks for the additional expense entailed.

In regard to the possible competition of dollars struck at the Canton Mini, I should mention that the native issues have hitherto consisted mainly of coins of the lower denominations, and that, although the pieces which have been examined in this country have approximated alossly to the standard of weight, their standard of fineness has been found, on sway, to be much below that prescribed by law. While, therefore, the coinage of Ohinese pieces is so defective, they would not appear likely to become serious rivals of the

new coin.

The yon bears on its face figures indiosting its legal weight and standard fineness in English, and on the Mexican dollar also the fineness is usually indicatori but there does not appear to be any sufficient resou for adopting such a practice in the case of a British

COLONIAL QURRENCY

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