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25815

193

No. 261.

Enclosure in No. 258.

I have, &c.,

E. E. BLAKE.

SIR,

COLONIAL SECRETARY, Straits Settlements, to CROWN AGENTS. (Treasury 445 · 1908.)

GENTLEMEN,

Singapore, 27 May, 1908.

WITH reference to my letter of the 24 January, I am directed to inform you that the demonetization of Straits dollars in Sumatra has now been completed, and it is not anticipated that many more dollars remain in that country.

2. The total number of dollars returned through the Java Bank amounted to $1,770,500, for which telegraphic transfers on London were given amounting to £204,715.

3. A certain number of dollars have, no doubt, found their way back to the Colony direct already, and others will continue to arrive from time to time in small quantities, but the total number held in Sumatra appears to have been considerably less than was estimated, and the need for special provision with regard to this matter may be considered at an end.

I have, &c.,

A. H. LEMON,

for Colonial Secretary,

Straits Settlements.

CROWN AGENTS to COLONIAL OFFICE.

(Received July 17, 1908.)

[Answered 17 July, 1908; 25815: not printed.]

Whitehall Gardens, London, S. W., 16 July, 1908. REFERRING to our letter of the 19th May,* I have the honour to state that we have received the following telegram from the Government of the Straits Settle-

ments:-

2.

Referring to your letter of 15th May, your views accepted. Federated Malay States can meet local requirements of contractors to £30,000 per month."

+

We now propose, with the Secretary of State's approval, to communicate with Messrs. Aird and Messrs. Jackson accordingly on the subject. Any sums paid to us by them for this purpose we should pass through the Straits Settlements account to the credit of the account of the Federated Malay States and our drafts on the Federated Malay States would be relieved to this extent.

3. On receipt of the money we should telegraph to the Colonial Government leaving it to the Government to pay the representatives of the firms in the Colony, and to make the necessary adjustment with the Government of the Federated Malay States.

4. It is possible that the arrangement now proposed may be the commencement of the larger scheme referred to in our letter to you of the 30th April last.†

5. We should be glad to receive the Secretary of State's approval of our adopt- ing the course proposed as soon as possible as we shall shortly be requiring funds for the Federated Malay States.

I have, &c.,

E. E. BLAKE.

21985

'(No. 154.) SIR,

No. 259.

THE SECRETARY OF STATE to THE GOVERNOR.

Downing Street, 26 June, 1908.

I HAVE the honour to acknowledge the receipt of your despatch, No. 159, of the 15th of April,† and to inform you that the draft of an Order providing for the demonetization of the old Straits Settlements dollar and 50 cent piece from the 1st of January next will be submitted to His Majesty in Council at an early date.

2. I will inform you by telegraph when the Order in Council has been issued.

22936

No. 260.

I have, &c.,

CREWE.

THE SECRETARY OF STATE to THE GOVERNOR.

(Sent 1.40 p.m., 14 July, 1908.) TELEGRAM.

Order in Council will

14 July, 1908. Your despatch, No. 159,† coinage. probably be passed about the end of month. If it is your wish you can at once publish notification that Order in Council will be submitted to His Majesty in Council demonetizing as from 1 January next.-CREWE.

28305

No. 262.

THE DEPUTY GOVERNOR to THE SECRETARY OF STATE. (Received August 4, 1908.)

(Confidential.)

MY LORD,

[Answered by No. 269.]

Government House, Singapore, 8 July, 1908.

I HAVE the honour to acknowledge the receipt of your confidential despatch of the 5th of June,‡ on the subject of Government remittances to and from London.

2. I agree generally in the conclusions of Mr. Anthonisz, the substance of which is that all Government remittances should be made through the agency of the Currency Commissioners.

3. Our recent difficulties were due to the causes suggested in the memorandum† of Sir E. Blake-the inflation of the currency due to the high price of tin, the opera- tions in connection with the Tanjong Pagar Award, and the demonetization of the dollar in Sumatra. Sir E. Blake is in error, however, in thinking that the sale of telegraphic transfers on London was due to a desire to protect our gold reserve here. That reserve has been completely swept away, and the sale of telegraphic transfers was necessary to maintain exchange within the limits contemplated by the law, i.e., the cost of moving gold between Singapore and London.

These telegraphic transfers were all sold at a price which, if the Currency Com- missioners had had a gold reserve in London, would have yielded a profit, and it depends upon the terms upon which the Crown Agents have been able to finance the Currency Commissioners and realize the investments whether a loss will ultimately result.

4. When it was decided to keep the gold reserve here, the fact that gold could be moved more cheaply to India from Singapore than it would be from London,

• No. 238.

† No. 251.

• No. 253.

B1104

↑ No. 250.

‡ No. 256.

181

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