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PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6

PUBLIC RECORD OFFICE, LONDON

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

190

2. Full opportunity has been given for holders of the old dollar and old 50 cent piece to exchange them, and I would suggest, therefore, for your Lordship's consideration that His Majesty may be moved to make an Order in Council demone- tizing these coins from the 1st January, 1909.

3. If this suggestion is approved, I shall be glad to receive a telegram as soon as the Order in Council is passed in order that the necessary notice may be issued stating that the old dollar and old 50 cent piece will not be legal tender from the 1st January, 1909, but the Government is willing to give notes or new dollars and half dollars in exchange for them until that date; such a notice, issued by the 1st July next, will, I consider, give ample time for those who may be still holding them to exchange them before the 1st January, 1909.

I have, &c.,

17243

SIR,

No. 252.

JOHN ANDERSON.

CROWN AGENTS to COLONIAL OFFICE.

(Received May 15, 1908.)

Whiteball Gardens, London, S.W., 15 May, 1908.

I HAVE the honour to report, for the information of the Secretary of State, in continuation of previous correspondence, that we have received the following telegram from the Government of the Straits Settlements, viz.:—

2.

"Have sold Hong Kong and Shanghai Banking Corporation £9,480, delivery 15th May."

We are making the necessary arrangements to meet this payment, which we conclude is on account of the Currency Commissioners.

I have, &c.,

18063

No. 253.

E. E. BLAKE.

-

CROWN AGENTS to COLONIAL OFFICE. (Received May 20, 1908.)

SIR,

Whitehall Gardens, London, S.W., 19 May, 1908. IN continuation of my letter of the 30th of April,* I have the honour to enclose, for the information of the Secretary of State, a copy of a letter which we have addressed to the Government of the Straits Settlements with regard to the remittance of funds between this country and Singapore, and the possibility of coming to an arrangement with Messrs. Aird and Co. and Messrs. Jackson for the adjustment, through the Government, of their money requirements in Singapore.

I have, &c.,

E. E. BLAKE.

(170 A. Straits.)

SIR,

Enclosure in No. 253.

Whitehall Gardens, S.W., 15th May, 1908. I HAVE the honour to confirm the following telegraphic correspondence :- Crown Agents to Colonial Secretary. 25th March.—

We are requiring to draw upon Federated Malay States for $200,000. Before doing so, you might ascertain from Jackson's and Aird's representa- tives whether they require local currency. This could be paid for by them in gold here at 2s. 4d., and thus minimise the amount of drawing through the banks. Telegraph reply."

Colonial Secretary to Crown Agents. 3rd April, 1908.-

KC

'Referring to your telegram of 25th March, Aird and Jackson obtain money required locally at the rates of day, which for some time better than par. As their agreement with banks made at home, suggest your seeing their representatives in London as to Federated Malay States giving them their local requirements."

• No. 250.

2.

191

Between the date of sending our telegram and the receipt of your reply

we had seen both Messrs. Jackson and Messrs. Aird, and we had discussed the subject with them and had informed them that they would probably hear from Messrs. Aird have since discussed their representatives in Singapore in the matter.

the subject with us further, and I now enclose a copy of a letter from them in which they agree in principle to the suggestion we have made.

3. Rates are, of course, so depressed at the present that the contractors are able to obtain currency at Singapore at rates more favourable to them than 2s. 4d. This does not, however, alter the position, which is that it would be in the interests of the contractors as well as of the Government to save the profits made by the banks in connection with exchange operations, and that an arrangement should be made for the transfer through the Government of such funds as the contractors may require to remit, at a price to be agreed upon.

4. As the result of our inquiries from our bill brokers, we have ascertained that the difference between the buying and selling rates, although of course it varies from time to time, may be taken to approximate to 3/16ths of a penny per dollar, and this is the measure of the saving which would be effected by dispens- ing with the services of the banks. It would, however, be necessary for us to employ our brokers on each occasion in order to ascertain what the two rates were whenever The charge for the contractors might desire to make a remittance in this way. which our brokers would be prepared to act in the matter would be half the usual brokerage rates, and would amount, therefore, to 1/32nd of one per cent. There would also be the cost of the telegram.

5. Messrs. Aird suggest in their letter that the saving effected by not remit- ting through the banks should be equally divided between the Colonial Government and the contractors, and that the expenses should be shared equally, and we think that so far as these transactions are concerned this would be a fair basis to adopt. In the case of a remittance of, say, $100,000 being required by the contractors, and assuming the difference in rates to be 3/16ths of a penny per dollar, the saving would amount to £78 2s. 6d., while the brokers' fee of 1/32nd of one per cent. would amount to about £3 15s. Od., and the cost of the telegram should not amount to more than 10s. to 15s. The saving, therefore, to each party in the transaction, if equally divided, would amount to about £37.

6. We think that the arrangement we have suggested deserves the considera- tion of the Colonial Government and of the Government of the Federated Malay States; and if our views are accepted, I have to request that you will send us a telegram to that effect so that it may be put into operation as soon as possible, a we gather that Messrs. Aird are expecting to be shortly in a position to claim of us their first payment under this contract, a portion of which they would like to receive at Singapore.

7. If the system we have suggested should be adopted by the Government, we will then approach Messrs. Jackson again in the matter, and see whether we cannot

bring them as well as Messrs. Aird within the arrangement.

8. I take this opportunity of stating that the Governor's telegram of the 1st March to the Secretary of State as to the use which is being made of the Govern. ment by the banks for remittance purposes was discussed by us with Mr. Anthonisz before he left for the Colony, and we addressed a letter to the Secretary of State un the subject on the 30th April, which will no doubt be communicated to the Governor in due course.

9. If it should be ultimately decided that a gold reserve for the Currency Commissioners should be kept here, it will no doubt be possible to arrange for the issue by us, to the banks or others requiring currency in Singapore, of telegraph transfers upon the Government in exchange for gold paid to us, at rates to be agreed upon on each occasion on the advice of our bill brokers.

10. I enclose a list of secret cyphers, one of which would be prefixed to each telegraph transfer which we may give on the Government. The figures should, of course, be kept locked up.

The Honourable

&c..

The Colonial Secretary,

&c., &c.,

Straits Settlements.

I have, &c.,

E. E. BLAKE.