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PUBLIC RECORD OFFICE

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Reference :--

C.O. 882

6

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

PUBLIC RECORD OFFICE, LONDON

ة من لا اله الا الانسانية

174

the following telegraphic correspondence has passed between the Government of the Straits Settlements and ourselves in connection with the requirements of the Currency Commissioners:-

Colonial Secretary to Crown Agents, 1st October, 1907.

We have drawn bill on you through Chartered Bank of India, Australia, and China for £96,552."

Colonial Secretary to Crown Agents, 2nd October, 1907.

"Referring to my telegram of yesterday, sale to Chartered Bank of India, Australia, and China was telegraphic transfer: please pay them and inform me."

Crown Agents to Colonial,Secretary, 2nd October, 1907.

£96,552 paid, Chartered Bank of India, Australia, and China, 2nd October. General account overdrawn £17,000. We propose to use loan balance unless you remit funds."

Colonial Secretary to Crown Agents, 4th October, 1907.

"Referring to your telegram of 2nd October, transfer £96,552 from Currency Commissioners to general account.”

2. I also enclose a copy of a letter which we wrote to the Colonial Government on the 8th November confirming further telegraphic correspondence which took place between the 25th October and 8th November on the subject of telegraph transfers payable by us amounting to £222,000.

3. Since then the following further telegraphic correspondence has passed between us relating to further telegraphic transfers payable by us amounting to £285,000.

Colonial Secretary to Crown Agents, 8th November, 1907.

We have sold £100,000 Chartered Bank of India, Australia, and China, £25,000 Hong Kong and Shanghai Banking Corporation, £10,000 Discounts Gessellschaft on account of Currency Commissioners, payable

11th November."

Colonial Secretary to Crown Agents, 11th November, 1907.

"We have sold £50,000 Union Bank on account of Currency Commis- sioners, payable 14th November.

Colonial Secretary to Crown Agents, 15th November, 1907.

"We have sold £30,000 Hong Kong and Shanghai Banking Corpora tion on account of Currency Commissioners, payable 18th November.” Colonial Secretary to Crown Agents, 25th November, 1907.

"We have sold £50,000 Hong Kong and Shanghai Banking Corpora- tion on account of Currency Commissioners, payable 27th November.'

4. I also enclose a copy of a letter which we have received from the Colonial Government together with a copy of our reply.

5. As will be seen above, the telegraph transfers have amounted in all to £583,552, and they have been met in the following manner:-

By sale of guaranteed (Irish land) 24 per cent. stock... By cash in the Commissioners of Currency Fund lent at

interest

£73,201

185,351

By advances from Straits Loan Account at deposit rate

of interest

345,000

£589,552

6. The question has since become further complicated by the telegram from the Colonial Government of the 23rd of January, communicated to you in our letter of the same date, as to probable further drawings in connection with the demoneti- zation of Straits Settlements currency in Sumatra. We do not, however, think that we can, with advantage, add anything at the present moment to the expression of our views on the general question of such drawings contained in our letter of the 2nd of January.t

I have, &c.,

E. E BLAKE.

• No. 232.

↑ No. 227.

SIB,

175

Enclosure 1 in No. 233.

CROWN AGENTS to COLONIAL SECRETARY, Straits Settlements.

Whitehall Gardens, S.W., 8 November, 1907.

I HAVE the honour to confirm the following telegraphic correspondence:- 25th October. Colonial Secretary to Crown Agents.

"Have we (we have) sold on behalf of Currency Commissioners £42,000 Mercantile Bank, payable 28th October."

26th October.-Colonial Secretary to Crown Agents.

"Have sold £100,000 on behalf of Currency Commissioners, payable Monday, 28th October, Hong Kong and Shanghai Banking Corporation." 29th October.-Crown Agents to Colonial Secretary.

"In answer to your telegrams of 25th October, 26th October, £142,000 has been paid 28th October, cash balance in the hands of Currency Commis- sioners insufficient to meet payment by £73,201; shall we sell securities or meet out of general or loan funds?"

31st October. Colonial Secretary to Crown Agents.

Referring to your telegram of 29th October; sell securities if you can do so without loss, if not meet from loan funds."

5th November.-Colonial Secretary to Crown Agents.

44

we have sold £30,000 Hong Kong and Shanghai Banking Corpora- tion, £25,000 Chartered Mercantile Bank of India, London, and China, on account of Currency Commissioners, payable 5th November, if short use loan temporarily."

6th November.-Colonial Secretary to Crown Agents.

"We have sold £25,000 Chartered Bank of India, Australia, and China on account of Currency Commissioners, payable 6th November."

2. In accordance with the instructions contained in your telegram of the 31st October, we sold from the Commissioners' of Currency Investment Fund £87,535 11s. 8d. 24 per cent. guaranteed (Irish land) stock at 834 in order to provide the sum of £73,201. This price, after allowing for interest and the expenses of purchase and sale, shows a profit of £468, or about 13s. per cent. For the period from 28th October until the 6th November, when the proceeds of the sale were received, the money was provided by transfers from the loan account.

3. In order to provide for the further sum of £80,000, we have transferred that amount from the loan account to the credit of the Currency Commissioners' account in accordance with the instructions contained in your telegram of the 5th November.

4. We do not propose to take any steps to charge interest between the two funds for the monies provided in this manner, and it will be for the Colonial Govern- ment to decide the question, and to make any adjustment on this account locally. It will also devolve upon the Colonial Government to adjust eventually the Currency Commissioners' account. This could be done either by directing us to sell securities or to transfer certain of the securities of the value of the amounts transferred from loan account, to be held as an asset of the loan account. If the latter course should be adopted, the Currency Commissioners could re-absorb the securities if the condi- tions of the Note Issue should again change.

5. The Colonial Government will doubtless consider whether, until there is more stability in the amount of notes in circulation it would not be desirable, when further funds become available for investment on account of the Currency Commis- sioners, that a considerable portion of such funds should be held by us in the form of cash, but at short interest which would be available to meet telegraphic transfers.

I have, &c.,

E. E. BLAI

H