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dollars arriving this week. Can I issue Proclamation? If so, telegraph date of passing Order in Council.-ANDERSON.

4233

147

No. 207.

PUBLIC RECORD OFFICE

لسنس-سانسلسا

CO. 882

-9 ALLY WITICAT PINSSON OF THE

PUBLIC RECORD OFFICE, LONDOSS

BE REPRODUCED REDIOBRAPVIC-

་

7197

No. 205.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 6.10 p.m., 26th February, 1907.)

TELEGRAM.

Referring to your telegram of 25th February, yes, date 11th February.-

ELGIN.

7004

SIR,

No. 206.

COLONIAL OFFICE to TREASURY.

[Answered by No. 208.]

Downing Street, 8th March, 1907. WITH reference to your letter of the 8th of December,† I am directed by the Earl of Elgin to transmit to you, to be laid before the Lords Commissioners of the

Governor, Telegram, 31st December.

Secretary of State, Telegram, 2nd January.

Treasury, copies of the correspondence‡ noted

in the margin with regard to the subsidiary coinage of the Straits Settlements.

It

Governor, Confidential, 24th January, 2. Lord Elgin does not understand why Governor, Confidential, 31st January.

the fact that there is a large redun- dancy of subsidiary coin should lead the Government to press for its recoinage. is apparent that recoinage into pieces of less fineness would, by itself, merely increase the redundancy. The remedy for redundancy is, of course, to sell off the surplus as bullion, as the Colony of Hong Kong has recently done the loss falling on general revenue, which has hitherto reaped the profit-and this course is quite independent of the recoinage of the remainder.

3. It is possible that a considerable part of the surplus might safely be disposed of at once, but on the other hand there is the consideration, to which the Governor's attention has already been invited in paragraph 9 of Lord Elgin's despatch of the 26th of October,§ a copy of which accompanied the letter from this office of the 29th of October,|| that while the danger of the Straits Settlements dollar leaving the country exists, owing to a further rise in silver before the recoinage is completed, it may be unwise to part with the surplus subsidiary coin, which would be useful in an emergency. Indeed, the half-dollar has been made unlimited legal tender to provide against this contingency.

4. In any case there seems to be no urgency as regards the recoinage of the subsidiary coins, and Lord Elgin is in accord with the views expressed in your letter above referred to. I am, however, to enquire whether their Lordships (in view of the Governor's recommendation) are inclined to waive their objection to 600 fine coins or have any further observations to offer on the point.

5. His Lordship considers that the right course to pursue is first to complete the recoinage of the dollar, then to proceed with the recoinage of the half-dollar into a piece of the reduced weight and of 900 fineness, and then to sell off the redundant small coins and take such measures for recoining the rest as may appear advisable having regard to conditions existing at the time.

I am, &c.,

R. L. ANTROBUS.

A

THE SECRETARY OF STATE to THE GOVERNOR. [Copy to Treasury, 12th March, 1907. L.F.] [Answered by No. 211.]

(Confidential.)

SIR,

Downing Street, 8th March, 1907. I HAVE the honour to acknowledge the receipt of your despatch, No. 12, of the 10th of January,* proposing the withdrawal in some six or eight months' time of the prohibition of the importation of British and Mexican dollars.

2. This course was contemplated, as you point out, in paragraph 63 of the Committee's report, but the step has hitherto been postponed. I would refer you in this connexion to my predecessor's confidential despatch of the 3rd of December, 1903.† In view of the replacement of the Straits Settlements dollar by pieces of less weight now proceeding, I think that the withdrawal of the prohibition in the near future would be very inadvisable. There would be great temptation to pass into circulation full-weight British or Mexican dollars instead of the light Straits Settlements dollar of higher gold value.

3. The reason given by you for your proposal is the desirability of providing facilities for exchange in favour of coolies proceeding to China, but I would suggest that this requirement might be met more satisfactorily and without danger if the Government were itself to provide facilities. It would only be necessary for the Government to import a certain amount of British or Mexican dollars, to open bureaux of exchange at the ports of embarkation, and there provide the coolies with dollars for use in China at the current rate of exchange. The coolies would thus be saved from the money-changers, and there would be no interference with legitimate banking business, since the facilities would only be taken advantage of by the ignorant classes, carrying their property in cash.

4. "I shall be glad if you will consider this suggestion and furnish me with your views upon it.

10974

SIR,

No. 208.

TREASURY to COLONIAL OFFICE.

(Received 27th March, 1907.)

I have, &c.,

ELGIN.

Treasury Chambers, 26th March, 1907.

In reply to Mr. Antrobus's letter of the 8th instant (7004/07),‡ relative to the currency of the Straits Settlements, I am directed by the Lords Commissioners of His Majesty's Treasury to acquaint you that they agree with the Secretary of State for the Colonies that in the existing circumstances the redundancy of the subsidiary coinage does not in itself afford ground for pressing forward its re- coinage; also as to the successive stages in which the different portions of the currency should be dealt with.

My Lords have communicated with the Deputy Master of the Mint in the matter, and they learn that the recoinage could not in any case be undertaken by his Department in the current year. The employment of the Birmingham Mint for the purpose would, of course, entail additional expense.

A further report has been obtained from the Mint on the question of the standard to be adopted for the new subsidiary coinage, and my Lords now concur in the proposal that the standard fineness of 600 should be adopted, the existing dimensions and weights being retained, in preference to any other alternative. Before the new coins could be put into circulation the new standard would require to be legalised by Proclamation of the Governor under Article 3 of the Order in Council of the 11th February last.

I am, &c.,

E. W. HAMILTON.

• No. 198.

A

↑ No. 53.

91104

• No. 204. ↑ No. 183.

No. 188, 189, 201, and 203.

§ No. 160.

No. 168.

* No. 206.

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