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Australia to England against the issue of notes in Singapore, without regard to the provisions of the Ordinance.

10. This might, however, be a slow process and not at first be sufficient to The Crown meet the requirements of the Colony and Federated Malay States. Agents, however, could make arrangements to borrow sums of money for the gold reserve in exchange for an equivalent amount of dollars to be placed to their credit in Singapore by the Currency Commissioners. This latter sum would naturally be utilised in the purchase of gold for delivery in London as soon as a favourable opportunity occurs for doing so without loss.

11. The responsibility of the Currency Commissioners to the public with regard to the sale of telegraphic transfers is limited by Section 7 (c) of the Ordin- ance, and it may be asserted that, even in exceptional periods, the limit will soon be reached in consequence of the prohibitive rate fixed under that section. The balances in local currency in the different banks, particulars of which the bankers are always ready to furnish to the Treasurer when required, should serve as a guide to the Government as to the extent of the need for the banks' demands for the purchase of transfers from the Currency Commissioners. In India, I am told, the Government acknowledges no obligation to sell transfers, but I doubt whether it would be wise to follow this policy, owing to the different conditions obtaining in the Straits and the comparatively small payments that are made by the Colonial Government in England.

12. If the proposal to allow the Crown Agents to keep the main part of the gold reserve in London is agreed to, the details can be settled after consultation with the India Office and submitted to the Government-no hard and fast rules can, of course, be laid down with reference to the proportion of gold to be held by the Crown Agents, the proportion to be kept in Singapore, and the proportion to be maintained between the gold and silver reserve; but general instructions for observ- ance under ordinary and normal conditions could be drawn up for the guidance of the financial officers concerned.

7 March, 1908.

- J. O. ANTHONISZ.

NOTE-Under Section 7 (b.) of the Ordinance the Crown Agents are authorized to receive gold which may be held temporarily for the purchase of silver for coinage, for investment or for shipment to Singapore, but cannot be held permanently as part of the coin portion of the Note Guarantee Fund. The rate that may be fixed under this section is so prohibitive as to prevent all possibility of accumulating a gold reserve in London. This provision has been taken advantage of only once, when the Netherlands Trading Society, having exhausted its supply of local cur- rency, was refused help by the other banks except at exorbitant rates, and, not being able to tender gold in Singapore, sold a telegraphic transfer in favour of the Crown Agents for £45,000 or £50,000.

8387

!

8387

SIR,

No. 243.

COLONIAL OFFICE to MR.

J. O. ANTHONISZ.

Downing Street, 13 March, 1908. I AM directed by the Earl of Elgin to acknowledge, with thanks, the receipt of

your letter of the 8th instant* on the subject of the remittance of funds between this country and the Straits Settlements.

2. A copy of the memorandum which you enclosed is being forwarded to the Crown Agents for their observations, and they are being informed that you will hold yourself at their disposal until the end of this month.

8083

No. 244.

I am, &c.,

R. L. ANTROBUS.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 1.20 p.m., 28 March, 1908.)

TELEGRAM.

[Answered by No. 245.]

Your telegram of 22 February.t In my opinion it is premature to realize securities until more is known as to results of operations for reducing currency. It would be bad business to sell now and re-invest later at higher prices. Loan funds can supply the advances at present and should continue to do so until they must be repaid, unless the Crown Agents see good opportunity for realizing any securities at a profit. If you agree I will instruct them to use their discretion as to this.-ELGIN.

11731

No. 245.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 4 p.m., 2 April, 1908.) TELEGRAM.

Referring to your telegram of 28 March, prospects of re-investment for Cur- rency Commissioners remote: recommend Crown Agents sell whenever they can without loss up to (amount of ?) advances from loan.-ANDERSON.

12804

No. 246.

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

PUBLIC RECORD OFFICE, LONDON |

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

No. 242.

COLONIAL OFFICE to CROWN AGENTS.

[Answered by No. 250.]

Downing Street, 18 March, 1908.

GENTLEMEN,

I AM directed by the Earl of Elgin to transmit to you the enclosed copy of a letter from Mr. J. O. Anthonisz, in which he forwards a memorandum prepared by him with regard to the remittance of funds between this country and the Straits Settlements, and to state that his Lordship would be glad to receive your observa- tions on the subject.

2. You will observe that Mr. Anthonisz will hold himself at your disposal until the end of this month.

I am, &c.,

R. L. ANTROBUS.

SIR,

CROWN AGENTS to COLONIAL OFFICE.

(Received April 11, 1908.)

Whitehall Gardens, London, S.W., 10 April, 1908.

IN continuation of our letter of the 5th of March,§ I have the honour to report, for the information of the Secretary of State, that we have received the following telegrams from the Government of the Straits Settlementa, viz. :——

2nd April.—

"Have sold Hong Kong and Shanghai Banking Corporation £63,146, delivery 6th April, on account of Currency Commissioners." 2nd April.-

"My telegram of to-day, suspend action till further instructions." 6th April.--

Referring to my telegram of 2nd April, payment to be made by Thursday, 9th April."

• No. 241.

• No. 241.

↑ No. 287.

↑ No. 244.

§ No. 240.

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