COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.
11. According to the official returns the aggregate aa well as the not imports and exports of treasure into and out of the Straits Settlements have been:—
85
14. The imports and exports of merchandise of the Federated Malay States, as shown in the official returns, have been:
APPENDIX, No. 13.
THE EXPEDIENCY AND THE PRACTICABILITY OF A GOLD STANDARD FOR THE STRAITS SETTLEMENTS AND THE FEDERATED MALAY STATES.
(Memorandum by Mr. T. H. WHITEREAD.)
1. In reference to a despatch, dated Singapore, 16th July, 1902, from Sir F. A. Swettenham, K.C.M.G., Governor of the Straits Settlements and High Commis- moner of the Federated Malay Stats, the British Government, through the Colonial Office, has appointed a committee to consider the expediency and the practi- cability of a change in the monetary standard of the eaud Settlements and States.
2. From 1874 to 1902, almost continuously, I resided in India, the Straits Settlements, Japan, China, and the Far East. From 1890 to 1902 the Hong Kong General Chamber of Commerce elected me its representative on the Legislative Council of Hong Kong, and latterly the Colonial Government appointed me a member of the Executive Council of the Colony. During that period of 28 years I had experience of, and studied to some extent daily, the monetary standards of Indis, the Straits Settlements, and the Far Ehat.
3. In accordance with the law now in force, viz., an Order of the Queen in Council, the standard of currency in the Straits and the Malay States has been from 2nd February, 1895, and still is, the silver Mexican dollar, but the British dollar and the old Hong Kong dollar are also legal tender.
4. A gold standard is impracticable with an unlimited silver currency. A limited and a restricted issue of Hilver currency is an indispensable condition of a gold standari.
5. To change the monetary standard of a country tends to dislocate and paralyse its commerce, and de- ruge its economic equilibrium, as well as to com- pletely alter the relationship legally existing up to the time of the olange between debtors and creditors. Any substantial change must involve the most far-reaching consequences, which it is impossible to estimate, even approximately, with any approach to accuracy.
6. In whatever way the monetary standard may be ohange, the money in the Straits and the Sistes will continue to be silver money. The natives and other Asiatics, who constitute the great bulk of the inhabi- tants, are too poor, and their means are too limited, to admat of their making general use of gold money.
For
a lengthened period, if not from time immemorial, they have been accustomed to act and think in silver money almost exclusively, and I am not aware that any large number of them have memorialised the Government in favour of a change to a gold standard About two-thirds -more than one-half, at any rate of the population of the whole world are Asiatice, and the vast majority of them have used from time immemorial, and still use, silver and copper money almost exclusively. They are too imperunious to use gold money. The silver currency is well suited for their requirements, and amell copper money is indispensable for their needs. From evidence taken by the Straits Currency Committee, appointed by the Colonial Government on 27th July, 1883, it appears that the Asiatica were in favour of the con- tinuance of the silver standard. The principal products in the Straits and in the Malay States are tin, pepper, spices, etc., and apparently their production has not been in any way hindered by the fall in the gold prica of silver. As a matter of fact, both exports and im- ports continue to increase.
7. The Government of the Straits Settlements has not
any gold indebtedness, and does not therefore require
to make provision for the service of any goid loans. The
commerc
Felersted Malay States have not any gold indebted- ness; Pehang has borrowed from Selangor and Perak 83,041,568 and 8349,435 respectively. Hitherto the natural resources of the Straits Settlements and the Malay States on the silver monetary standard have been developed in a most remarkable manner.
The progress already accomplished has been enormous; has grown by leaps and bounds, and there has been a substantial increase in the value of real estate and in moet other forms of property, while rent, wages, the cost of living, etc., etc., have also risen considerably. As before stated, the Government of the Straits is free from debt, and there is abundant evidence almost in every direction of substantial general prosperity in the Straits Settlements and the Federated States.
8. Jane has a gold standard with a silver currency, and is situated near or alongside the Straits Settle- ments. To compare the progress, prosperity, and de- velopment of the natural resources of Java with those of the Straits Settlements would be interesting and in- structive, but lack of time prevents my now giving details,
9. Japan changed from a silver to a gold standard on 1st October, 1897, and it may safely be said that cer tain of the industries of that country, more particularly spinning and weaving, which earned handsome divi- dends while the silver standard prevailed, have been less prosperous on the gold standard, though the change in the standard may only have been a contributory cause of their failure. The new standard in Japan may still ba regarded as in its experimental stage, and a combine- tion of untoward circumstances might arise which would prevent the Government from keeping its gold and render the project a failure.
10. During the last 21 years, as shown in the official returns, the imports and exports of merchandise in the Straits Settlements, exclusive of treasure, have been :-
YEAR.
YEAR. Imports.
Exports.
Net Imports.
Net Exports.
YEAR.
Imports.
Exports.*
8
8
1881
3,289,266
$
3,032,469
8
1882
5,660,078
5,538,641
1881 7,078,037 6,388,018 090,019 1882 10,470,475 11,858,445
1883
6,968,85-4
8,043,542
1,387,970 1884
8,541,034
8,096,568
13,724,579 18,521,486
1883 11,869,140 12,939,200 188-1 10,712,674 15,422,104 1885 8,497,375 15,538,946 1888 12,540,709 11,470,800 1,069,909 1887 19,205,090 14,647,689 4,557,401 1888 20,151,050 14,439,200 5,711,841 1889 12,401,184 13,356,761 1890 15,975,366 20,313,858 1891 1892 11,533,357 18,909,165
1,070,080
-1885
8,067,425
9,691,786
4,709,430
1886
10,413,884
13,202,382
7,041,871
1887
12,905,489
19,207,870
1888
17,327,393
19,784,110
1889
15,653,456
19,720,689
1890
15,443,809
17,602,093
955,577
1891
14,880,942
18,495,554
4,338,492
1892
19,161,159
22,662,350
4,796,907
1893
21,806,117
27,373,760
7,375,808
1894
24,499,615
32,703,147
2,547,720
1895
22,853,27]
31,622,805
1896
21,148,895
28,395,855
1807
25,000,682
31,148,340
1898
27,116,448
35,241,003
1899
33,765,073
54,305,139
1900
38,402,581
B0,381,045
1901
39,524,603
63,107,177
392,936,052
529,026,343
1693 16,057,376 18,605,096 1804 35,885,981 25,372,022 10,513,959 1895 23,967,769 | 23,367,307 1896 24,863,014 | 22,075,314 1897 32,500,070 30,322,689 1898 34,939,834 27,253,392 1899 37,653,596 23,026,813 1900 34,156,600 22,897,130 1901 27,287,586 21,485,445
600,462 2,787,700 2,177,381 7,686,46% 14,626,783 11,259,470 5,802,121
421,470,862 388,210,889 67,483,508 34,223,535
The average annual excess of imports over exports of troasure into the Straits during the twenty-one years ending 31st December, 1901, has been $1,583,808, or a total of $33,259,973.
12. The population of the Straits Settlements has
been :-
1881 -
1891 -
1901 -
13. The income and expenditure Government have been:-
Year.
423,384
512,342
572,249
of the Straits
Revenue.
Expenditure,
The excess of exports over imports of merchandise during 21 years to 31st December, 1001, is $136,990,291. The official returns do not state whether the importa and exports of treasure are included in the above figures. The net excess of imports over exports of merchandise into the Straits and the Federated Malay States during the 21 years ending 31st December, 1901, amounts to $224,313,124. To this sum there is to be added the net excess of imports of treasure into the Straits during the same period, viz., $33,269,973, making a total of $257,573,097. Presumably this is incorrect. Because, if there was an actual net excess amount of imports of merchandise and treasure over exporta during the 21 years of $257,573,097, how were they paid for?
15. The population of the Federated Malay States has been:-
1891
1901
418,509
678,595
16. The income and expenditure of the Federated Malay States have been:-
YEAR.
Revenue.
8
8
1881
2,433,321
2,355,807
Expenditure.
Imports.
Exports.
1882
2,405,153
2,344,548
1883
3,049,220
3,200,295
1881
1881
+ 77,521,360
8
1884
3,515,841
3,238,030
1882
8 1,025,753 1,316,220
&
960,790 1,299,453
71,537,944
1883
2,042,138
1882
1885
80,453,559
79,736,229
3,508,074
1,052,999
3,593,149
1884
2,148,165
2,138,710
1883
92,773,422
93,405,741
1886
3,747,501
3,495,639
1885
2,208,709
2,261,954
1884
93,529,741
88,804,013
1886
1887
1883
94,521,388
84,074,276
3,847,053
3,511,096
2,501,041
2,280,539
1887
3,142,727
2,616,368
1886
100,034,248
92,651,474
1988
3,858,108
3,569,307
1888
3,657,673
3,013,943
1887
112,577,969
106,693,522
1889
1889
5,018,000
1888
126,707,937
119,769,226
4,410,820
3,918,194
4,091,076
1890
4,840,065
5,237,275
1880
133,737,536
119,862,520
1890
4,209,125
3,757,001
1891
4,572,310
0,554,800
1890
131,321,91
107,609,824
1802
1891
1891
122,161,638
3,820,583
107,284,286
4,599,199
6,347,180
5,883,407
1893
6,413, 134
6,797,838
1892
129,894,595
115,728,542
1892
3,652,877
4,265,783
1894
7,511,809
7,162,396
1893
144,091,584
126,152,298
1895
1893
1894
173,468,242
3,706,308
8,481,007
150,028,294
3,915,482
7,582,553
1890
8,434,088
8,598,147
1895
174,250,537
149,607,646
1894
3,904,774
3,714,620
1897
8,296,087
8,795,313
1800
176,450,686
151,045,500
1898
1897
1895
187,699,806
4,048,360
161,044,193
3,782,456
9,384,467
11,110,042
1899
13,488,410
11,499,478
1808
213,170,693
185,054,637
1896
4,266,064
3,957,090
1000
15,609,807
12,728,930
1899
246,285,856
216,027,914
1901
1897
1900 1001
279,933,260
4,320,207
239,720,215
4,429,694
17,541,507
17,273,158
283,093,528
245,067,825
1898
5,071,282
4,587,367
TOTAL
1899
3,173,709,534
2,812,406,119
5,200,025
5,060,814
1900
5,386,557
6,030,744
1901
7,041,685
7,315,000
6B 19.
The excess of imports over exports during 21 yours to 31st December, 1901, is $361,303,415.
17. On the rupee basis of 18. 4d., the equivalent gold price of silver is about 424. per ounce.
The Indian
mints were closed to the free coinage of silver on 26th June, 1893, and on that date the market price of silver was 37td. per ounce. Between 374d. and 42d. tha difference is about 12 per cent
M
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Reference :-
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