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No. 150.

THE GOVERNOR to THE SECRETARY OF STATE.

17th October, 1906.) (Received 8.35 a.m.,

TELEGRAM.

(Paraphrase.)

Your telegram of yesterday, I would ask you to make the half-dollar legal tender for any amount as well as the dollar.-ANDERSON.

(Paraphrase.)

My Confidential despatch of September 13th.* is now 27.52 pence owing to rise in silver -ANDERSON.

Intrinsic value of the dollar

38378

37996

No. 148.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 18th October, 1906.) TELEGRAM.

[Answered by No. 150.]

Your telegram of 14th October.t I agree to your at once passing Ordinance empowering Commissioners to pay notes in gold or silver at their absolute option. You will consider whether it is necessary to give previous notice of the change. If gold is paid out notification should simultaneously be issued that gold will be accepted in payment of all Government dues. Am taking steps to submit Order in Council empowering you to declare gold legal tender, from date to be proclaimed by you, and providing for reduction of fineness of Straits Settlements dollar to 800-ELGIN.

SIR,

No. 151.

COLONIAL OFFICE to TREASURY. [Answered by No. 154.]

Downing Street, 17th October, 1906. WITH reference to the letter from this Department of yesterday's date,t I am directed by the Earl of Elgin to transmit to you, to be laid before the Lords Commissioners of the Treasury, copy of a telegramt from the Governor of the Straits Settlements, requesting that the existing half-dollar may be made unlimited legal tender.

As the proposed Order in Council is to reduce the fineness of the dollar to 800, and as the existing half-dollar is already of this fineness, Lord Elgin approves of the Governor's suggestion, which will no doubt be of great convenience if the rise in silver continues and the present 900 fine dollars flow out of the Colony. I am accordingly to ask that, if their Lordships see no objection, provision may be made in the Order in Council for unlimited legal tender of the existing half-dollar, from a date to be proclaimed by the Governor.

I am, &c.,

H. BERTRAM COX.

37996

No. 149.

COLONIAL OFFICE to TREASURY.

[Answered by No. 154.]

SIR,

Downing Street, 16th October, 1906. I AM directed by the Earl of Elgin to transmit to you, to be laid before the Lords Commissioners of the Treasury, copy of a despatch from the Governor of the Straits Settlements, with regard to the currency of that Colony, and a copy of a telegramt since received.

In view of the urgency of the situation brought about by the continued rise in the price of silver, the telegram of which a paraphrase is enclosed has been despatched to Sir J. Anderson after unofficial consultation with your Department.

It was agreed at the consultation that an Order in Council should be submitted to His Majesty to empower the Governor to declare the sovereign legal tender in the Straits Settlements at the rate of £7 for 60 dollars, from a date to be proclaimed by him, and to provide for the reduction of the fineness of the Straits Settlements dollar to 800. I am to request you to move their Lordships, if they see no objection, to cause a draft Order in Council to be prepared accordingly, if possible in time for submission to His Majesty at the Council of Monday next, the 22nd instant.

I am, &c.,

FRED. GRAHAM.

38472

No. 152.

THE CHARTERED BANK OF INDIA, AUSTRALIA, AND CHINA to

SIB

COLONIAL OFFICE.

(Received 18th October, 1906.)

[Answered by No. 155.]

Hatton Court, Threadneedle Street, London, 17th October, 1908.

In view of the advance in the price of silver, we find ourselves placed in a difficult position with regard to the conduct of exchange operations at our branches in the Straits Settlements, and as it may be in your power to give us information which would obviate the uncertainty under which we labour, we venture to bring the matter to your notice. Should the price of silver continue to advance, the cost of laying down Straits dollars will soon be more than the rate of 2s. 4d. officially fixed by the Colonial Government as the basis for the exchange of dollars for sovereigns, and this may render action, in one of the following directions, necessary on the part of the Government of the Straits Settlements:→→→

(1) The intrinsic value of the silver dollar may be so much above the official rate of exchange, as to prove an incentive to the illicit export, of coins from the Colony, which it would be difficult to prevent, notwithstand- ing the fact that export is forbidden, as we assume the steps taken to enforce this regulation are not of such a stringent nature as to render smuggling impossible.

(2) The Government may find it expedient to gradually raise the official rate of exchange from 28. 4d. until the advance in the price of aliver is obecked. We understand there was at one time a talk of making the

• No. 146.

† No. 147.

Nos. 146 and 147.

No. 148.

• No. 148.

↑ No. 149.

‡ No. 150.

PUBLIC RECORD OFFICE

न

Reference :-

TENCO. 882

سلسل

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

PUBLIC RECORD OFFICE, LONDON