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COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.

121

No. 9.

Governor Sir FA. SWETTENHAM to Mr. CHAMBERLAIN.

Government House, Singapore,

December 10, 1902. Sir,-In continuation of my despatch No. 490 of the 27th ultimo, I have the honour to forward for your in- formation a copy of a resolution in favour of fixity of exchange passed at a public meeting held at the Marine Club, Singapore, on the 28th ultimo, together with a copy of a newspaper report of the proceedings at that meeting.

I have, etc.,

F. A. SWETTENHAM.

Enclosure in No. 9.

Resolution in favour of fixity of exchange passed at a public meeting held at the Marine Club, Singapore, on the 28th November:-

"That this meeting expresses its opinion in favour of ▲ currency system which will ensure a fixed rate of exchange.

NEWSPAPER REPORT.

Singapore Free Press," dated November 29th, 1902.

MARINE CLUB.

THE CURRENCY QUESTION.

Between 40 and 50 members of the Marine Club, the Engineers Association, and some visitors, met last night in the club room to formulate an expression of opinion on the Currency Question.

Captain Hunter, the President, introduced Mr. Walter Makepeace, the chairman for the evening, who pointed out that the Government were considering the alvisability and the practicability of fixing the currency to ensure a fixed rate of exchange with gold countries. He suggested that in view of the magnitude of the sub. ject they might also consider resolutions under the same heads. As representative of a large body of wage earners, if they were of opinion that a currency which could always be converted into gold at a fixed rate would be better for them, an expression of opinion would not be without value to the Government, and it might even interest the Chamber of Commerce. If from their point of view they desired stability in exchange, then they might perhaps proceed to discuss at what rate they thought the dullar should be fixed, and might even like to touch upon the means by which this should be done. That they were largely affected directly by the depre- ciation of the dollar was evident when they had to remit money home; that they were also affected indirectly by the cost of living and the cost of articles made in a gold currency country was also plain.

Various speakers then proceeded to express their views, which were none the less forcible and convincing because they were in most cases brief. The chief point made was that accepting a wage of so many dollars, they found that that represented a variable sum from month to month and even from day to day. No sooner had an adjustment been made to compensate for the fall, than another drop took place. There was no stability in the purchase value of the wages earned. The instability was especially felt in the case of those men who had to remit money for the use of their families at home The hole made in their wages was becoming bigger and bigger every month. Still harder was it in the case of savings. Seafaring men (the speakers them- selves said) when they succeeded in saving, had not time to look after remitting or investing their savings. It was usually put straight away in the bank. Then, for no fault of theirs, they found themselves losing 10 per cent. or more by exchange when they wanted to transfer their savings. In the case of some of the elderly men they had seen their savings dwindle down to half the amount in gold that they represented when made.

Such is the gist of the discussion which took place. Questions were asked and answered, fallacies expose and information given. Finally, after thorough debating the subject, the following resolution was pro- posed by Mr. Allison, seconded by Captain Busk, and carried unanimously:-

"That this meeting expresses its opinion in favour of a currency system which will ensure a fixed rate of exchange"

Asked by the Chairman whether the meeting desired to express any opinion at the rate that should be aimed at, while admitting that the rate 28. would be very convenient to them, the sense of the meeting seemeil to be that it would be better if the rate were about tha. current on the day when the change was made. What ever the rate was, things would adjust themselves, They admitted there were difficulties to be thrashed out by experts.

The meeting therefore would not commit itself to any resolution on what the rate of exchange should be fixed at.

Nor was it disposed to more than briefly touch upon the practical steps necessary to prevent dislocation of trade in making the change of currency. No resolu- tion was formulated in that respect, the view taken that this was a question for financial experts.

The only other resolution, also passed unanimously,

WAS

"That a copy of this resolution be sent to the Govern- ment and to the Chamber of Commerce."

A vote of thanks to the chairman brought the meeting to a close.

No. 10.

Governor Sir F. A. SwETTENHAM to Mr. CHAMBERLAIN,

Government House, Singapore,

December 10, 1902.

Sir, I have the honour to enclose, in original, a petition in favour of the adoption of a gold standard of currency which was handed to me this morning by the Honourable C. Stringer (Messrs. Paterson, Simons, and Company) and Mr. J. Anderson (senior partner Guthrie and Company, Chairman Tanjong Pagar Dock Company, and President Bingapore Chamber of Commerce).

2. The Honourable J. M. Allinson, member of the Legislative Council (Messrs. Barlow and Company), knowing that this petition was to be presented, Landed to the Colonial Secretary a memorandum of which I now onclose a copy. I will not go into the figures of this memorandum, but I do not foel certain that those which concern the value of imports and exports correctly repre- sent the case of this colony and the Federated Malay States, and consequently I am not prepared now to endorse the statements (a) and (b), though I do not dis- pute their accuracy. I think the statements (c), (d), and (e) are correct. As to (f), I see no reason to anticipate that the Government would wait to take action till the dollar was worth only 1s. 6d., or that there is any like- lihood that it would then rise in value to 1s. 10d. As I have already stated in a previous despatch, I look upon the possible or probable production of silver in China as likely to further reduce the value of that metal.

3. The recent adoption of a gold standard in Siam, and the announcement that the American Government is preparing to take a similar course in the Philippines, while the French Government is alarmed and probably disposed to adopt a gold standard in Indo-China, tend to force this colony and the Federated Malay States towards a similar course.

4. It was to be expected that the petition I encloso should be signed by Europeans, and those in receipt of salaries whose homes are in countries with gold atan- dards such as India and Ceylon, but the petition is also signed by a number of wealthy and influential Chinese, the Revenue farmers, shipmasters, bankers, merchants, and landowners.

5. I shall no doubt receive another petition from those in favour of the present currency, and I will forward it

at once.

6. I have asked the Resident-General to consult the Planters and Miners' Association on this subject, and will in due course inform you of the result,

I have, etc.,

__

F. A. SWETTENHAM.

Enclosure 1 in No. 10.

To His Excellency Sir Frank Athelstane Swettenham, Knight Commander of the Most Distinguished Order of St. Michael and St. George, Governor and Com- mander-in-Chief of the Colony of the Straits Bettle-

ments.

The humble petition of the undersigned in- habitants of Singapore and members of the mercantile, commercial, and tradal community, landowners, professional men, Chinese, Indian, and other merchants,

Showeth that-

1. The silver dollar, the legal currency of the colony, has since the first day of the present year declined in value by more than 15 per cent. The dollar being a coin dependent upon the price of silver, and accordingly at the mercy of speculators in that metal, who can raise or depress exchange to suit their interests, is liable to violent fluctuations, and it has been painfully evident that violent fluctuations in exchange are very detri- mental to the general interests of the colony.

2. Even if the contention that a dollar of low value is encouraging to a portion of the trade of the colony be granted, it must without doubt be admitted that thers are numerous interests which have been prejudicially affected by the severe fall in silver which has recently taken place.

3. It is the opinion of those of your petitioners who desire a dollar of low value that there must be some point when the advantages derived from low exchange become distinct disadvantages, and that this point has been passed.

4. Your petitioners, without expressing any views as to the sterling value to be given to the dollar, desire to place before your Excellency their opinion that it is extremely desirable that the legal currency of the colony and of the Federated Malay States should have a fixed relative value to the British sterling sovereign.

Your petitioners therefore humbly pray that your Excellency will, by telegraphic despatch, cause their views to be laid before the Com- mittee which is now sitting to consider the currency of the colony and of the Federated Malay States.

And your petitioners will ever pray, etc.

BOUSTEAD AND (0.

GUTHRIE AND CO. And others.

Enclosure 2 in No. 10.

MEMORANDUM by the Hon. J. M. ALLINSON. Total population of the Straits Settlements and Federated Malay Statos, 1,250,844.

Total Europeans (males over 15):-

Straits Settlements - Federated Malay States

1,890

801

2,781

add

Tamils and other natives

of British India

53,584

Grand

tries

total of those interested in gold coun-

56,365 4.500 per cent.

Percentage of Europeans to total

population

Percentage of Europeans after de- ducting Government and Munici- pal Servants Percentage of Europeans who are

profit earners Chinese population

Malays and other natives of the

Archipelago

-223

17

12

+190 "

*020

"J

- 38

"

♪

- 42.800 * If a gold currency is adopted the following changes will occur:-

4-590 per cent of the population will be relieved of all risks in connection with the currency, while 38 per rent. of the population (the Chinese) will have an ex- change set up which does not now exist. 42.800 per cent. of the population will be deprived of a currency. with which their country has thriven as few countries have done.

Recapitulation.

Percentage of population interested in gold, 4-590 per cent.

Percentage of population interested in silver, 95-410

per cent.

The following figures are taken from the Traile Returns for 1901.

Imports in 1901 (in sterling) Exports in 1901 (in sterling) Balance of imports over exports

£28,614,610

£26,091,775

£3,522,835

Percentage re-exported 87 per cent. Imports of specie in 1901

$23,530,461

$20,068,554

$3,470,807

Exports of specie in 1901 Balance of importe over exports

Percentage re-exported 86 per cent

PUBLIC RECORD OFFICE

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Reference :-

C.O. 882

7PUBLIC RECORD OFFICE, LONDON

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