PUBLIC RECORD OFFICE
6
C.O.
Reference :-
882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
7 PUBLIC RECORD OFFICE, LONDON
[viii]
II. Subsidiary Silver Coins.-The amount issued since 1871 is 7,212,000 dollars (nominal). It is estimated by the Colonial Treasurer that of this amount 300,000 dollars is in Foreign Countries.
III. Subsidiary Copper Coins.-The amount issued since 1871 is 1,887,500
dollars (nominal).
IV. Government Note Issue.-The amount in circulation on the 10th of December, 1902, was 13,393,440 dollars. Against this 8,714,555.75 dollars was held in coin on the same date.
V. Bank Notes.-The average monthly circulation in 1901 was 5,473,755
dollars. The figure for 1902 is not yet available.
QUESTION OF A CHANGE IN CURRENCY.
23. The history of the consideration of a gold standard for the Straits Settlements need not be traced back further than the year 1893.
As a result of the Report of the Indian Currency Committee in that year, the Indian Mints were closed to the free coinage of silver, and later in the year a Departmental Committee, presided over by the late Lord Herschell, was appointed to consider the currency questions in the Eastern Colonies. The proceedings of that Committee were not published but they have been laid before the present Committee.
24. Whilst the former Committee was sitting at the Colonial Office, the Secretary of State telegraphed to the Governor of the Straits Settlements asking for a full report as to the remedial measures suggested for securing greater fixity in the rate of exchange. The Governor replied that great difference of opinion existed, that it was impossible to state remedial measures which would be approved by Europeans and natives, and that he had appointed a local Committee to consider the matter, consisting of Government Officials and Members of the Chamber of Commerce.
25. The report of the local Committee is printed among the Appendices to our Report. It will be seen that half the members of that Committee, including all the native members, were in favour of the maintenance of a silver standard. The Acting Governor laid the Report before his Executive Council and invited their opinions upon it, especially regarding the question whether the policy of the Government should be to adopt a gold standard or adhere to free silver. Opinions were equally divided. The acting Governor's own opinion in favour of a gold standard was conveyed in the first section of the Report, which he had signed as member of the Committee.
26. The Currency Committee appointed by the Secretary of State for the Colonies issued no report, and made no recommendation in regard to any change in the standard of currency of the Straits Settlements, but advised that owing to the scarcity of Mexican dollars at that time a British dollar should be issued for circulation in the Straits Settlements and other Eastern Colonies. This recommendation was adopted and the British dollar was made legal tender in Hong Kong, the Straits Settlements and Labuan.
27. The amount of British dollars imported into the Straits Settlements by the banks from 1895 (the year in which they were first coined) to 1901, inclusive, was 119,224,442 dollars. During the same period 80,883,437 other dollars were imported, making a total importation of 200,107,879 dollars. The recorded exportations 1895-1901 amounted to 170,732,168 dollars. This exportation of dollars is, of course, exclusive of the amount of dollars taken out of the Colony by returning Chinese immigrants, an amount which is impossible to ascertain but which may be considerable. It is not known what portion of the total amount exported consisted of British dollars.
28. The question of a gold standard for the Straits Settlements was raised again in 1897. In that year a Sub-committee was appointed by the Committee of the Singapore Chamber of Commerce "to enquire into the local currency with the view of calling attention of Government to the question of converting the Straits currency to a Gold Standard." The Report of the
[ix]
Sub-committee is printed among the Appendices.
The Governor's despatch
of the 9th of March, sending home the Report, and criticising its proposals, will be found among the Appendices to the Report of the Indian Currency Committee of 1898. The statistics on which this Report was based will be found (amended and brought up to date) in a recent letter from the Chamber of Commerce which has been laid before us (Appendix 18 (12) ). A criticisni of the scheme as it affected the Federated Malay States, by the Resident General, now the Governor of the Colony and High Commissioner of the Federated States, will be found in Appendix 18 (4).
29. In view of the difference of opinion prevailing in the Colony, and of the criticisms of the Governor and the Resident General, the question of a change in the standard was allowed to rest until last year. On the 9th of June, 1902, a letter was addressed to the Colonial Government by the Singapore Chamber of Commerce, asking whether "in view of the recent serious decline in the value of the dollar current here, the violent fluctua- tions in the price of silver, and the extreme uncertainty as to the future of this metal, all of which are not only causing great inconvenience to the trade of the Colony but constitute grave obstacles to the development of its natural resources by stopping the flow of capital from other parts of the world" the Government were prepared, now that the question again pressed, to make investigation into the feasibility and expediency of securing fixity of exchange.
30. The Governor replied that before the receipt of their letter he had decided to invite their views on the expediency of attempting to adopt an arrangement with neighbouring countries for fixing an uniform relative value between the local currency and gold. The Chamber of Commerce replied that they did not think a scheme of co-operation with the neighbouring countries possible of achievement but they deferred further comment till a definite scheme was placed before them. They reiterated their request for enquiry by an expert, not necessarily on the spot.
31. The Governor forwarded the correspondence to the Secretary of State in a dispatch of the 16th of July, 1902, and asked that the general question might be referred to an expert, preferably with Indian experience. He added that it did not appear that whoever was appointed to conduct this investigation should necessarily do so on the spot. As a result of this despatch from the Governor the present Committee were appointed with the terms of reference already stated.
EXPEDIENCY OF A CHANGE.
32. In considering the expediency of the proposed change in the stan- dard of value of the Straits Settlements the Committee have not thought it necessary to enter at any length into an examination of the many vexed questions, of a somewhat abstract and theoretical nature, which present themselves when a proposal is made for a change of the standard of value in any country. These questions have been dealt with by many writers during the last thirty years, and they have been very fully examined by a series of Committees and Royal Commissions, beginning with the Parlia mentary Committee of 1876, of which Mr. Goschen (now Lord Goschen) was Chairman, and ending with the Committee on the Indian currency presided over by Sir Henry Fowler in 1898-9.
33. The question at issue is whether it is better for the Straits Settlements and the neighbouring Malay States at the present time, and under existing conditions, to maintain the silver standard or to change to a gold one, and the Committee bave endeavoured as far as possible to treat the matter from a practical standpoint. In this view we have considered such papers and documents as would assist us in forming a correct view of the economie position of the Straits Settlements, as well as of the commercial and financial relations of that Colony with the neighbouring States
Page 90Page 91
PUBLIC RECORD
OFFICE
Reference :-
C.O. 882
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
[viii]
II. Subsidiary Silver Coins.----The amount issued since 1871 is 7,212,000 dollars (nominal). It is estimated by the Colonial Treasurer that of this amount 300,000 dollars is in Foreign Countries.
III. Subsidiary Copper Coins.-The amount issued since 1871 is 1,887,500
dollars (nominal).
IV. Government Note Issue.-The amount in circulation on the 10th of December, 1902, was 13,393,440 dollars. Against this 8,714,555.75 dollars was held in coin on the same date.”
V. Bank Notes.-The average monthly circulation in 1901 was 5,173,755
dollars. The figure for 1902 is not yet available.
QUESTION OF A CHANGE IN CURRENCY.
23. The history of the consideration of a gold standard for the Straits Settlements need not be traced back further than the year 1893. As a result of the Report of the Indian Currency Committee in that year, the Indian Mints were closed to the free coinage of silver, and later in the year a Departmental Committee, presided over by the late Lord Herschell, was appointed to consider the currency questions in the Eastern Colonies. The proceedings of that Committee were not published but they have been laid before the present Committee.
24. Whilst the former Committee was sitting at the Colonial Office, the Secretary of State telegraphed to the Governor of the Straits Settlements asking for a full report as to the remedial measures suggested for securing greater fixity in the rate of exchange. The Governor replied that great difference of opinion existed, that it was impossible to state remedial measures which would be approved by Europeans and natives, and that he had appointed a local Committee to consider the matter, consisting of Government Officials and Members of the Chamber of Commerce.
25. The report of the local Committee is printed among the Appendices to our Report. It will be seen that half the members of that Committee, including all the native members, were in favour of the maintenance of a silver standard. The Acting Governor laid the Report before his Executive Council and invited their opinions upon it, especially regarding the question whether the policy of the Government should be to adopt a gold standard or adhere to free silver. Opinions were equally divided. The acting Governor's own opinion in favour of a gold standard was conveyed in the first section of the_Report, which he had signed as member of the Committee.
-
26. The Currency Committee appointed by the Secretary of State for the Colonies issued no report, and made no recommendation in regard to any change in the standard of currency of the Straits Settlements, but advised that owing to the scarcity of Mexican dollars at that time a British dollar should be issued for circulation in the Straits Settlements and other Eastern Colonies. This recommendation was adopted and the British dollar was made legal tender in Hong Kong, the Straits Settlements and Labuan.
27. The amount of British dollars imported into the Straits Settlements by the banks from 1895 (the year in which they were first coined) to 1901, inclusive, was 119,224,442 dollars. During the same period 80,883,437 other dollars were imported, making a total importation of 200,107,879 dollars. The recorded exportations 1895-1901 amounted to 170,732,168 dollars. This exportation of dollars is, of course, exclusive of the amount of dollars taken out of the Colony by returning Chinese immigrants, an amount which is impossible to ascertain but which may be considerable. It is not known what portion of the total amount exported consisted of British dollars.
28. The question of a gold standard for the Straits Settlements was raised again in 1897. In that year a Sub-committee was appointed by the Committee of the Singapore Chamber of Commerce "to enquire into the local currency with the view of calling attention of Government to the question of converting the Straits currency to a Gold Standard." The Report of the
[ix]
Sub-committee is printed among the Appendices. The Governor's despatch of the 9th of March, sending home the Report, and criticising its proposals, will be found among the Appendices to the Report of the Indian Currency Committee of 1898, The statistics on which this Report was based will be found (amended and brought up to date) in a recent letter from the Chamber of Commerce which has been laid before us (Appendix 18 (12)). A criticism of the scheme as it affected the Federated Malay States, by the Resident General, now the Governor of the Colony and High Commissioner of the Federated States, will be found in Appendix 18 (4).
29. In view of the difference of opinion prevailing in the Colony, and of the criticisms of the Governor and the Resident General, the question of a change in the standard was allowed to rest until last year. On the 9th of June, 1902, a letter was addressed to the Colonial Government by the Singapore Chamber of Commerce, asking whether "in view of the recent serious decline in the value of the dollar current here, the violent fluctua- tions in the price of silver, and the extreme uncertainty as to the future of this metal, all of which are not only causing great inconvenience to the trade of the Colony but constitute grave obstacles to the development of its natural resources by stopping the flow of capital from other parts of the world" the Government were prepared, now that the question again pressed, to make investigation into the feasibility and expediency of securing fixity of exchange.
30. The Governor replied that before the receipt of their letter he had decided to invite their views on the expediency of attempting to adopt an arrangement with neighbouring countries for fixing an uniform relative value between the local currency and gold. The Chamber of Commerce replied that they did not think a scheme of co-operation with the neighbouring countries possible of achievement but they deferred further comment till a definite scheme was placed before them. They reiterated their request for enquiry by an expert, not necessarily on the spot.
31. The Governor forwarded the correspondence to the Secretary of State in a dispatch of the 16th of July, 1902, and asked that the general question might be referred to an expert, preferably with Indian experience. He added that it did not appear that whoever was appointed to conduct this investigation should necessarily do so on the spot. As a result of this despatch from the Governor the present Committee were appointed with the terms of reference already stated.
EXPEDIENCY OF A CHANGE.
32. In considering the expediency of the proposed change in the stan- dard of value of the Straits Settlements the Committee have not thought it necessary to enter at any length into an examination of the many vexed questions, of a somewhat abstract and theoretical nature, which present themselves when a proposal is made for a change of the standard of value in any country. These questions have been dealt with by many writers during the last thirty years, and they have been very fully examined by a series of Committees and Royal Commissions, beginning with the Parlia mentary Committee of 1876, of which Mr. Goschen (now Lord Goschen) was Chairman, and ending with the Committee on the Indian currency presided over by Sir Henry Fowler in 1898-9.
33. The question at issue is whether it is better for the Straits Settlements and the neighbouring Malay States at the present time, and under existing conditions, to maintain the silver standard or to change to a gold one, and the Committee have endeavoured as far as possible to treat the matter from a practical standpoint. In this view we have considered such papers and documents as would assist us in forming a correct view of the economie position of the Straits Settlements, as well as of the commercial and financial relations of that Colony with the neighbouring States
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