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SIR,

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་

Proposes to invest part of earnings of Gold Standard Reserve in India Government 2% rupee paper as being equivalent to a gold security. Requests that no more Consols may be bought on behalf of the Currency Commissioners until the present Consol investments sink to less than one-third of the total investments on the Commissioners' account, and that thereafter Consol investments may be kept at a third of the total invest- mente,

Acknowledges receipt of No. 49; ap- proves of the investment of not more than one-quarter of the whole fund in Indian rupee paper; transmita copy of No. 50.

States that while the coin reserve must be maintained at one-third of total note issue, two-fifths of this reserve may be held in sovereigns; suggests that an amending Ordinance be pre- pared recordingly, and asks that the draft be submitted to Treasury.

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40

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STRAITS SETTLEMENTS.

FURTHER CORRESPONDENCE

[6th April, 1909, to 11th July, 1911.]

RELATING TO

CURRENCY QUESTIONS.

No. 1.

COLONIAL OFFICE to TREASURY.

[Answered by No. 10.]

Downing Street, 6 April, 1909. WITH reference to the letter from this Department of the 26 December, 1906,* and connected correspondence respecting the currency of the Straits Settlements, I am directed by the Earl of Crewe to transmit to you, to be laid before the Lords Commissioners of the Treasury, a copy of a despatcht from the Governor of the Colony forwarding an Ordinance further to amend "The Currency Note Ordinance, 1899. A copy of a confidential despatch‡ from the Governor is also enclosed.

2. It will be observed from the enclosures to this letter that the principal and amending Ordinances have been reprinted in this Department, as one Ordinance, in order that the effect of the proposed changes may be more easily followed.

3. Lord Crewe will be glad to receive their Lordships" observations on the Ordinance at their earliest convenience. The matter has been discussed with Sir John Anderson, who is now in this country, and, as at present advised, the Secretary of State sees no reason why His Majesty should be advised to disallow it.

4. As regards the protest made by the Singapore Chamber of Commerce and the Unofficial Members of the Legislative Council against Section 10 of the amend- ing Ordinance, it will be seen from the Governor's despatches that this action was inspired by Mr. Baker, an Unofficial Member, who is also the Manager of the local branch of the Hong Kong and Shanghai Bank, and Lord Crewe is given to under- stand that Mr. Baker's views on Straits currency questions are not supported at the head office of the Bank of London.

5. I am to request that such of the enclosures to this letter as are sent in original may be returned with your reply.

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53

Crown Agents

June 27

Acknowledge receipt of No. 50; en- closes a statement of the investments held up to the present.

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51

To the Acting Gov-

ernor.

Confi. dential.

July 11

Transmits copies of Nos. 45, 46, 48, and 52, and asks that the draft of an amending Ordinance be sent home.

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No. 2.

I am, &c.,

H. W. JUST.

THE ACTING GOVERNOR to THE SECRETARY OF STATE.

(Received 8.30 a.m.,

TELEGRAM.

May, 1909.)

[Answered by No. 6.]

My despatch 14 January, Confidential.§ Number dollars to be sold will not exceed thirteen millions. Please instruct Crown Agents sell at their discretion but at minimum 25 pence.-YOUNG.

• L.F. transmitting enclosure in No. 181 in Eastern No. 108.

No. 277 in Eastern No. 108.

21005

↑ No. 276 in Eastern No. 108.

f No. 279 in Eastern No. 108.

PUBLIC RECORD OFFICE

Reference :--

T ། ། ། T TlcO. 88?

سنسانا

6

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

PUBLIC RECORD OFFICE, LONDON

15790

+

SM.

No. 3.

CROWN AGENTS to COLONIAL OFFICE.

(Received 11 May, 1909.)

Whitehall Gardens, London, S.W., 10th May, 1909. WITH reference to our letter of the 5th of March* reporting the completion of the recoinage into dollar and half-dollar pieces of the Straits dollars which were sent to this country, I have the honour to state that we are now informed by the Colonial Government that it is not proposed to send any more old dollars to be recoined The Deputy Master of the Royal Mint has been informed accordingly.

I have, &c.,

H. MARTIN,

(for Crown Agents).