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been recently debased by the Straits Government, so that it is now eight-tenths instead of nine-tenths fine silver; whether there is any precedent within the British Empire for such a tampering with the currency; and whether the Government would protect the holders of its dollar notes issued on the old system from payment and redemption in the degraded currency issued by them.

MR. RUNCIMAN, in reply, said: "As I have previously stated, an Order in Council has been passed by His Majesty providing for the reduction in fineness of the Straits Settlements dollar from 900 to 800. This measure was taken to preserve the fixed rate of exchange with gold, in accordance with the general wishes of the local community The Governor has since recommended, as a result of the representations of the Singapore Chamber of Commerce and the unanimous vote of the Legislative Council, that further steps should be taken to secure the fixed rate in the direction of reducing the weight of the dollar, and the matter is now under consideration If the weight is reduced it will be possible to retain the fineness of 900. As regards Government notes, they have all been issued either against dollars of a lower value than 2s. 4d. or, since the rate was fixed, against gold or dollars worth 2s. 4d They will be paid either in gold or with dollars worth 23. 4d.. i.e.. with dollars worth in any case as much as those against which they were issued, and for the most part worth far more."

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Lordships will be so good as to cause a draft Order in Council to be prepared to give effect thereto.

The alternative mentioned in paragraph 5 of your letter, viz., that the exigen- cies of the situation might be met by the use of sovereigns and doller notes is, apart from other objections which you point out, rendered impracticable by the slow rate of delivery of one dollar notes as reported in the letter from the Crown Agents of which a copy was transmitted to you in the letter from this Office of the 23rd instant.t

The new Order in Council will no doubt make provision for subsidiary coins also. I am to suggest that as the half-dollar has now been made unlimited legal tender it will be best to provide that future half-dollars shall be half the weight of the new dollar, and of 900 fineness. As regards the other subsidiary silver coins it would seem desirable to reduce their weight proportionally to the reduction in the weight of the dollar, and to retain their fineness at 800 as at present.

I am to request that the Royal Mint may be informed of the changes now con- templated, and may be authorised to undertake the re-coinage operations. It is also desirable that the new dies referred to in the last paragraph of your should be put in hand with the least possible delay.

letter

I am, &c.,

C. P. LUCAS.

43217

No. 179.

45166

No. 181.

THE SECRETARY OF STATE to THE GOVERNOR.

(Confidential.)

SIR,

Downing Street, 27th November, 1906. WITH reference to my telegram of the 22nd instant and to your reply of the 23rd, I have the honour to transmit to you copies of correspondencet with the Lords Commissioners of the Treasury relating to the further proposals as to the new Straits Settlements dollar put forward in your telegrams of the 5th and 8th instant.ţ

As regards the rate of re-coinage, I am afraid that the estimate of the time required given in my telegram of the 3rd instant,§ as the result of semi-official correspondence with the Treasury, was far too sanguine. Since, however, it is now proposed to revert to a fineness of 900, I trust that the Royal Mint will be able to give greater assistance in the coinage (as there are greater facilities there for 900 fine coinage) and that this will materially decrease the cost of the operations. I am still, however, without definite information on these points.

A report from the Crown Agents on the rate of delivery of the one dollar notes was forwarded to you in my despatch, No. 304, of the 23rd instant.¶

THE GOVERNOR to THE SECRETARY OF STATE. (Received 8th December, 1906.)

[Copy of Ordinance to Board of Trade and Treasury, December 26, 1906.

[Answered by No. 186.]

(No. 422.)

MY LORD,

L.F.]

Government House, Singapore, 14th November, 1908. REFERRING to your telegram of the 31st July, I have the honour to forward Ordinance No. XXVI. of 1906, entitled “An Ordinance further to amend 'The Currency Note Ordinance, 1899.'

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

I have, &c.,

JOHN ANDERSON.

PUBLIC RECORD OFFICE

Reference :-

CO. 882

9 PUBLIC RECORD OFFICE, LONDON

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

43217

SIR,

No. 180.

COLONIAL OFFICE to TREASURY.

[Answered by No. 183.]

I have, &c.,

ELGIN.

(L.8.)

Downing Street, 27th November, 1906.

I AM directed by the Earl of Elgin to acknowledge the receipt of your letter of the 21st instant** regarding the currency of the Straits Settlements, and to transmit to you, to be laid before the Lords Commissioners of the Treasury, copies of telegraphic correspondence with the Governor of the Colony.

It will be observed that their Lordships' suggestion that if the proposed reduc- tion in weight is adopted the fineness of the dollar should be retained at 900 has been accepted by the Governor. In view of the considerations advanced in para- graph 4 of your letter Lord Elgin acquiesces in the Governor's proposal for a reduc- tion in weight, with the retention of fineness at 900, and I am to request that their

f No. 165.

* Nos. 176 and 177.

| No. 172.

No. 169, 174 and 180.

1 L.F.

Nos. 166 and 168.

** No. 174.

Enclosure 1 in No. 181.

ORDINANCE No. XXVI. of 1906.

AN Ordinance further to amend "The Currency Note Ordinance 1899."

JOHN ANDERSON,

Governor and Commander-in-Chief.

[22nd October, 1906.]

It is hereby enacted by the Governor of the Straits Settlements with the advice

and consent of the Legislative Council thereof as follows :--

1. This Ordinance may be cited as "The Currency Note Ordinance 1899 Short title. Amendment Ordinance 1906 No. IV." It shall be read and construed as one with Ordinance "The Currency Note Ordinance 1899" (hereinafter called "the principal Ordi- IV. of 1899. Dance") and shall come into force on publication in the "Gazette." Any copy of Reprints." the principal Ordinance printed after the commencement of this Ordinance shall

be printed with the amendments and additions made by this Ordinance.

2. Section 4 of the principal Ordinance is amended

(i.) by the omission in Sub-section (1) of the word "silver" in the third Section 4

line:

Amend. ment of

of the

•

principal (ii) by the omission in Sub-section (3) of the word "silver" in the third Ordinance.

Fine:

• No. 172.

† LP.

No. 141.