PUBLIC RECORD OFFICE
Reference :-
TILLLC.O. 882
18
rate so long as gold is available, or to give bills on the Crown Agents in London based on the fixed rate of exchange."
The early establishment of a gold reserve appears to the Committee the all- important feature of the scheme, as at times Government would require to give gold or demand bills or telegraphic transfers on London in exchange for the new dollars, to prevent the rate falling below the fixed ratio. If this is not provided, there will be no sufficient guarantee against a serious decline in exchange.
17.
The Committee do not consider their mission fulfilled until the various phases of the Currency Scheme are carried into effect, as at present it is exceedingly difficult to foresee the many contingencies that will undoubtedly arise.
The Secretary,
Chamber of Commerce.
Enclosure 2 in No. 28.
We are, &c.,
JOHN ANDERSON, W. H. FRIZELL. J. C. NICHOLSON. G. S. MURRAY.
The COLONIAL SECRETARY, Straits Settlements, to the SECRETARY OF THE CHAMBER OF COMMERCE, Singapore.
(Misc. 6332/03.)
SIR,
I AM directed by the Governor to acknowledge the receipt of your letter of 16th instant, enclosing copy of a letter from the Advisory Sub-Committee appointed to watch the progress of the Currency Scheme, and I am to request you to convey His Excellency's thanks to your Committee for their remarks on the Currency Scheme, and to inform them that their observations will receive the careful consideration of Government.
Colonial Secretary's Office, Singapore, 22nd July, 1903.
2. As regards paragraph 10 of the Sub-Committee's letter, I am to inform you that the language of paragraph 58 of the Currency Committee's report appears to His Excellency to be perfectly plain and to admit of but one interpretation.
3. The views of the Chamber of Commerce as regards the importation of Mexican dollars have already been communicated to the Secretary of State, whose reply has been communicated to Committee.
your
I have, &c.,
31799
No. 29.
W. T. TAYLOR,
Colonial Secretary,
Straits Settlements.
THE CHARTERED BANK OF INDIA, AUSTRALIA, AND CHINA to
SIR,
COLONIAL OFFICE.
(Received 26th August, 1903.) [Answered by No. 30.]
Chartered Bank of India, Australia, and China, London,
25th August, 1903.
I TAKE the liberty of calling your pointed attention to what seems to be the very urgent need for the Colonial Office to take immediate steps in the direction of authorising the Government of the Straits Settlements to prohibit the further importation of Mexican dollars. As you are, no doubt, aware, the Chinese have, for weeks past, imported considerable quantities of these coins for speculative purposes, in connection with the impending change of currency, and as our Manager in Singapore telegraphs there is every appearance of a continuance of the flow of dollars into the Colony, it is extremely necessary that these coins should be prevented
19
from accumulating to an extent so greatly in excess of the amount required to adjust the balance of trade. The prohibition is called for on either of two grounds:-
First. If the Government should assume the responsibility of exchanging old coins for new, the continued import of Mexican dollars will greatly add to the amount of new currency to be coined in order to provide for that exchange.
Second. If the individual should be made to suffer, rather than the State, then any addition to the volume of the present currency proportion- ately increases the loss to the natives, and other holders, when they find themselves under the necessity of selling their demonetized dollars at the market rate for bar silver.
Whilst on this subject, I may be permitted to refer to the report* dated Singa- pore, 29th June, 1903, of the Advisory Sub-Committee appointed by the Committee of the Singapore Chamber of Commerce to watch the progress of the scheme for reform of the currency of the Colony. This document, of which I enclose a copy, is a very able production, and the importation of Mexican dollars is dealt with under paragraph 12 to the following effect:-
K
* The knowledge of the terms of the Currency Scheme has already led to large shipments of Mexican dollars to this port. These shipments seem likely to continue, and the Advisory Committee would strongly recommend the Chamber to urge that Government should immediately prohibit the importation of Mexican dollars.
"The Advisory Committee feel that if this action is postponed, the operation of the scheme will be delayed, and a heavier burden thrown upon Government, for it must be manifest that the greater the number of dollars now allowed to be imported the greater will be the quantity of coin to be re-minted by Government."
With reference to your letter of 30th ultimo, No. 27329/1903,† I wish to bring to your notice one point of considerable importance, to which I omitted to make reference in my previous memorandum in connection with the proposed gold stand- ard for the Straits Settlements. That point is that, when the present currency has been demonetized, if the Government should decline to exchange new dollars for old, this unwise policy would probably give rise to serious discontent and possible riots on the part of the natives of the Settlements and of the Federated Malay States, who would have to sell their holdings of the old coins at the market price for bar silver, probably incurring thereby a heavy loss. I am, &c.,
J. HOWARD GWYTHER,
Chairman.
P.S. Since writing the foregoing I have been put in possession of a copy of the Singapore Chamber of Commerce's lettert to the Colonial Secretary, dated 16th July, from which I quote the following remarks:-
"It will be observed that the Advisory Sub-Committee lay special stress upon the necessity of measures being taken immediately to prohibit the importation of the Mexican dollar, as they feel that if this action is deferred, the operation of the scheme will be delayed. In this connection I am desired to bring to the notice of the Government that the Mexican coin still continues to flow into the Colony. The Chinese are collecting them at a premium in China and the Philippines with the intention of shipping such coin to the Straits. The Committee, moreover, understand that the United States Government will have about eight millions of Conant (that is, new) dollars available for circulation in Manila about the middle of August, and this movement may have the effect of releasing the Mexican currency there, and leaving a large amount available for shipment here. The Committee attach importance to that contingency, which they believe was not hitherto contemplated in its effect upon the Currency Scheme."
J. H. G.
In Enclosure 1 in No. 28.
↑ Not printed.
31104
Enclosure 1 in No. 28.
01
I
6
PUBLIC RECORD OFFICE, LONDONİ
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TƠ
20
No comments yet.
Private notes are available after approval.