CO882-(8-9) — Page 156

PUBLIC RECORD OFFICE

Reference:--

TILLLC.O. 882

9

PUBLIC RECORD OFFICE, LONDON,

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- || COPYRIGHT PHOTOGRAPH-NOT TO

80

upward tendency of that market during recent months, not to fix rate at present. If, however, you are clearly convinced of necessity for fixing it, I will agree to dollar at 2s. fd, but rate should not be fixed unless exchange is approximately at that point at time of fixing Objection to doing otherwise applies equally to declaring any fixed rate in advance as suggested by you in your telegram of January 14th.*

I am aware that the above rate is not so simple as that which you suggested, but there is no practical difficulty.

Procedure would be as follows if you decided to fix rate at 2s. 4d: -You would procure amendment of Currency Note Ordinance, deleting the present provision as to tender of gold in London, but providing that notes may be issued at Singapore against telegraphic transfers on London at the best rate tendered, if tenders allow sufficient margin over fixed rate to cover cost (including freight, insurance, and You would then prepare interest) of sending gold to Singapore from London. Order in Council notifying that notes will be issued in exchange for gold at the rate of 2s. 4d. the dollar, but the Order in Council should not be issued until exchange is 2s. 4d. or within a small fraction of that figure. In case exchange has, in the meantime, risen above 2s. 4d., doubtless you could bring it down by gradual remittances to London for investment on account of note reserve, being careful not to remit more than is necessary to bring exchange down to the figure named. In no case must the total exceed two million dollars. It should be made clear to public that Government does not, when it undertakes to give notes for gold, undertake also to give gold in exchange for notes. This is especially neces- sary if Netherlands Bank has been making corner in dollars and notes, as I have heard it rumoured. As each step is taken, please keep me informed.-ELGIN.

2575

No. 108.

COLONIAL OFFICE to THE BRITISH NORTH BORNEO COMPANY. [Copy to Governor, 26th January, 1906. Confidential. L.F.]

Downing Street, 26th January, 1906.

SIR,

I AM directed by the Earl of Elgin to acknowledge the receipt of your letter of the 23rd instantt and to state that the rate of exchange of the Straits Settle- ments dollar is under his attention and that of the Governor of the Colony. The representations of the Court of Directors conveyed in your letter will receive careful consideration.

I am, &c.,

3005

No. 109.

C. P. LUCAS.

3347

81

No. 110.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received 3.30 p.m., 29th January, 1906.)

TELEGRAM.

[Copy to Treasury, 31st January, 1906. L.F.]

[Answered by No. 114.]

Currency Bill passed; Order of Governor in Council issued fixing 2s. 4d.-

ANDERSON.

3704

SIR,

No. 111.

CROWN AGENTS to COLONIAL OFFICE.

(Received 2nd February, 1906.)

[Copy to Governor, 5th February, 1906. No. 34. L.F.] [Answered by L.F. transmitting copy of No. 112.]

Whitehall Gardens, London, S.W., 1st February, 1906.

I HAVE the honour to enclose a copy of a letter which we have received from

the Chartered Bank of India, Australia and China asking for information as to the gold basis of the Straits Settlements dollar.

2. We have informed the Bank that we have passed their letter on to the Colonial Office.

3. I take the opportunity of enclosing copies of a telegraphic correspondence which we have had with the Government of the Straits Settlements as to the cost at which gold could be shipped from this country.

X.

ENCLOSURES.

I have, &c.,

E. E. BLAKE.

Chartered Bank of India, Australia and China. 30th January, 1906. Telegram. Colonial Secretary, Straits. 29th January, 1908.

Telegram. Crown Agents. 30th January, 1906.

Telegram. Colonial Secretary, Straits. 31st January, 1906. Telegram. Crown Agents. 1st February, 1906.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received 7.50 a.m., 27th January, 1906.)

(Paraphrase.)

TELEGRAM.

[Copy to Treasury, 31st January, 1906. L.F.] [Ansivered by No. 114.]

Referring to your telegram of 25th instant. While I regret so high a rate, I am satisfied that it is better to fix the rate now rather than to prolong the uncer- tainty by which trade is being paralyzed. The best informed opinion is that the rate will continue to rise if nothing is done. Accordingly I am summoning & Council for next Monday (January 29th) to pass amendment of Currency Note Ordinance.

Latest quotation for telegraphic transfer is 29. 4fd.—Anderson.

• No. 102.

↑ No. 106.

No. 107.

Enclosure 1 in No. 111.

The MANAGER, Chartered Bank of India, Australia and China, to CROWN AGENTS. [See No. 118.]

Hatton Court, Threadneedle Street, E.C.,

30th January, 1906.

GENTLEMEN,

WE received a telegram from our Singapore Manager on 29th instant, informing us that the Straits Government for the present will pay sixty dollars for seven sovereigns in Singapore and Penang, which represents an equivalent exchange of 28. 4d. per dollar. In connection with this advice we should esteem it a great favour if you could furnish us with further particulars of the arrange- ment. We should like to know whether the intention is that the sovereigns ɛhould be delivered in the Straits, to be held by the Government there, or if the coins could be delivered in London and payment be made in Singapore and/or Penang, the system recently adopted by the India Council. Unless the coins are actually required in the Straits, an arrangement of this nature would save the cost of ship- ping and insurance charges.

$1104

•