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Attached to 12349

60

No. 79.

MR. BLAIN (TREASURY) to MR. COLLINS (COLONIal Office).

DEAR COLLINS,

(Received 4th May, 1905.)

[Answered by No. 81.]

Treasury Chambers, Whitehall, S.W., 4th May, 1905.

Your letter of the 26th April (12349/05)* as to the Straits note issue.

I am not sure that the proviso you propose is altogether consistent with the one suggested by the Treasury.

Our idea was that the profits should continue to be employed in paying 1 per cent. to the Depreciation Fund, and the balance to revenue, to be re-issued there- from to the Guarantee Fund.

Your proviso would require the whole profit to go to the Depreciation Fund. That seems inconsistent.

Nor do I quite see the need for such an addition. Even without it the whole amount of the profit must go to strengthen the Guarantee Fund so long as there is any deficiency therein.

Possibly I have overlooked some loophole that you want to stop. If so, perhaps you will kindly let me know.

16043

(No. 150.)

SIB,

61

No. 82.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 13th May, 1905.)

[Ordinance sanctioned 17th May, 1905. No. 722. L.F.]

Government House, Singapore, 17th April, 1905. WITH reference to your despatch, No. 229, of the 14th October last,* I have the honour to forward copies of an Ordinance No. III. of 1905, entitled "An Ordi- nance further to amend 'The Currency Note Ordinance, 1899.'"

2. I also enclose a copy of the Attorney-General's report on the Ordinance.

I have, &c.,

JOHN ANDERSON.

PUBLIC RECORD OFFICE

Reference :---

TTILLCO. 882

9

PUBLIC RECORD OFFICE, LONDOSS

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SIR,

No. 108.)

No. 80.

Yours, &c.,

W. BLAIN.

THE SECRETARY OF STATE to THE GOVERNOR.

Downing Street, 5th May, 1905.

I HAVE the honour to acknowledge the receipt of your despatch, No. 140, of April 6th,† with regard to the accounts of the Commissioners of Currency for the year ending February 28th, 1905.

2. As regards paragraph 3, I have to refer you to my despatch, No. 100, of April 28th.‡

I have, &c.,

ALFRED LYTTELTON.

Attached to 12349

No. 81.

MR. COLLINS (COLONIAL OFFICE) to MR. BLAIN (TREASURY).

DEAR BLAIN,

Downing Street, 9th May, 1906. YOUR note of the 4th instant as to the Straits note issue. We thought we had sufficiently met your views by leaving the Ordinance un- altered so far as concerns the liability of general revenue to make up the full value of investments, subject to temporary suspension of the liability by the Secretary of State, as suggested in your letter. We prefer, however, that the whole proft on investments should be paid at once to the Depreciation Fund, while a deficiency exists, rather than that they should be paid to general revenue, and advanced from general revenue against the deficiency. For many years to come, all the profits will be required, and it would be, we think, misleading to allow them to swell revenue, when we know they will be required again from revenue, in the shape of an advance which there is no early prospect of recovering. Moreover, we do not see the fun of paying the military contribution percentage on these profits, which are not profite at all, but are to be employed in wiping out a deficiency arising out of the business of the note issue.

We hope, therefore, you will accept the course proposed in our last letter.

Yours, &o..

A. E. COLLINS.

• No. 77. ↑ No. 78. ‡ L.F. transmitting copies of Nos. 75, 76 and 77.

f No. 79.

Enclosure 1 in No. 82. ORDINANCE No. III. of 1905.

AN ORDINANCE further to amend "The Currency Note Ordinance, 1999."

(L.8.)

JOHN ANDERSON,

Governor and Commander-in-Chief.

[17th March, 1905.]

It is hereby enacted by the Governor of the Straits Settlements with the advice and consent of the Legislative Council thereof as follows:-

Short title.

1. This Ordinance may be cited as The Currency Note Ordinance 1890 Amendment Ordinance, 1905," and shall be read and construed as one with "The Currency Note Ordinance, 1899" (hereinafter called "the principal Ordinance". Any copy of the principal Ordinance printed after the commencement of this Ordi- Reprints. nance shall be printed with the amendments and additions required by this Ordinance.

Amendment

of Beation TE

2. Section 7B of the principal Ordinance is repealed and the following section of the is inserted in place thereof:-

priasiyal

Di dinanas.

Notes in

7B. (1) Notwithstanding anything in this Ordinance contained it shall Issue of be lawful for the Commissioners to issue Notes in exchange for gold received exchange on behalf of the Commissioners by the Crown Agents for the Colonies in for gold. London or by the Commissioners at Singapore at a rate of exchange to be notified by an Order of the Governor in Council to be issued with the previous approval of the Secretary of State.

(2) The gold so received shall form part of the Note Guarantee Fund and shall be subject to investment by the Commissioners in accordance with the provisions of this Ordinance or shall be used by them for the purchase of silver to be minted into Straits Settlements dollars in accordance with such instructions as may be issued by the Secretary of State.

Provided that the whole of the profit on such minting shall be carried to a separate Gold Reserve Fund and not form part of the Note Guarantee Fund.

Passed this 17th day of March, 1905.

E. L. BROCKMAN,

Clerk of Councils.

Enclosure 2 in No. 82.

REPORT on an Ordinance intituled "An Ordinance further to amend the Currency Note Ordinance, 1899."

1. This Ordinance was passed in accordance with the Secretary of State's instructions.

• No. 72