COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.
11. According to the official returns the aggregate as well as the net imports and exports of treasure into and out of the Straits Bettlements have been:-
85
14. The imports and exports of merchandise of the Federated Malay States, as shown in the official returna, have been:-
APPENDIX, No. 13.
THE EXPEDIENCY AND THE PRACTICABILITY OF A GOLD STANDARD FOR THE STRAITS SETTLEMENTS AND THE FEDERATED MALAY STATES.
(Memorandum by Mr. T. H. WHITEHEAD.)
1. In reference to a despatch, dated Singapore, 16th July, 1902, from Sir F. A. Swettenham, K.O.M.G., Governor of the Straits Settlements and High Commis- stoner of the Federated Malay States, the British Government, through the Colonial Office, has appointed a committee to consider the expediency and the practi- cubility of a change in the monetary standard of the eaid Settlements and States.
2. From 1874 to 1902, almost continuously, I resided in India, the Straits Settlements, Japan, China, and the Far East From 1890 to 1902 the Hong Kong General Chamber of Commerce elected me its representative on the Legislative Council of Hong Kong, and latterly the Colonial Government appointed me a member of the Executive Council of the Colony. During that period of 28 years I had experience of, and studied to some extent daily, the monetary standards of India, the Straits Settlements, and the Far East.
3. In accordance with the law now in force, viz, an Order of the Queen in Council, the standard of currency in the Straits and the Malay States has been from 2nd February, 1895, and still is, the silver Mexican dollar, but the British dollar and the old Hong Kong dollar are also legal tender.
4. A gold standard is impracticable with an unlimited silver currency. A limited and a restricted issue of silver currency is an indispensable condition of a gold standard.
5. To change the monetary standard of a country tends to dislocate and paralyse its commerce, and de- range its economic equilibrium, as well as to com- pletely after the relationship legally existing up to the time of the change between debtors and creditors. Any substantial change must involve the most far-reaching consequences, which it is impossible to estimate, even approximately, with any approach to accuracy.
6. In whatever way the monetary standard may be ohanged, the money in the Straits and the Staton will continue to be silver money. The natives and other Asiatics, who constitute the great bulk of the inhabi tanta, are too poor, and their means are too limited. to admit of their making general use of gold money. For ⚫ lengthened period, if not from time immemorial, they have been accustomed to act and think in silver money almost exclusively, and I am not aware that any large number of them have memorialised the Government in favour of a change to a gold standard. About two-thirds -nore than one-half, at any rate of the population of the whole world are Asiatics, and the vast majority of them have used from time immemorial, and still use, silver and copper money almost exclusively. They are too impecunious to are gold money. The silver currency in well suited for their requirements, and small copper money is indispensable for their needs. From evidence taken by the Straits Currency Committee, appointed by the Colonial Goremment on 27th July, 1893, it appears that the Asiatics were in favour of the con- tinuance of the silver standard. The principal products in the Straits and in the Malay States are tin, pepper, spices, etc., and apparently their production has not been in any way hindered by the fall in the gold price of silver. As a matter of fact, both exports and im- ports continue to increase.
7. The Government of the Straits Settlements has not
any gold indebtedness, and does not therefore require
to make provision for the service of any go'd loans. The
Federated Malay States have not any gold indebted- ness; Pehang has borrowed from Selangor and Perak $3,041,568 and 349,435 respectively.
Hitherto the
natural resources of the Straits Settlements and the Malay States on the silver monetary standard have been develped in a most remarkable manner. The progress already accomplished has been enormous; commerco has grown by leaps and bounds, and there has been a substantial increase in the value of real estate and in most other forms of property, while rent, wages, the cost of living, etc., etc., have also risen considerably. As before stated, the Government of the Straite is free from debt, and there is abundant evidence almost in every direction of substantial general prosperity in the Straite Settlements and the Federated States.
8. Jara has a gold standard with a silver currency, and is situated near or alongside the Straits Settle- ments. To compare the progress, prosperity, and de velopment of the natural resources of Java with those of the Straits Settlements would be interesting and in- structive, but lack of time prevents my now giving details.
9. Japan changed from a silver to a gold standard on 1st October, 1897, and it may safely be said that cer- tain of the industries of that country, more particularly spinning and weaving, which earned handsome divi- dends while the silver standard prevailed, have been less prosperous on the gold standard, though the change in the standard may only have been a contributory cause of their failure. The new standard in Japan may still ba regarded as in its experimental stage, and a combins- tion of untoward circumstances might arise which would prevent the Government from keeping its gold and render the project & failure.
10. During the last 21 years, as shown in the official returns, the imports and exports of merchandise in the Straits Settlements, exclusive of treasure, have been:-
YEAR.
1881 7,078,037 6,388,018 600,019 1882 10,470,475 11,858,445
YEAR. Imports.
Exports.
Net
Net Imports. Exports.
YEAR.
Imports.
Exports.*
8
$
1881
3,286,266
3,032,469
8
1882
5,609,078
5,538,641
1883
6,968,854
8,043,542
1883
1,387,970 1,070,000 4,709,430
1884
8,541,034
8,096,569
1885
8,607,425
9,601,786
1886
10,413,884
13,202,382
1885
7,041,071
1887
12,905,489
19,207,879
1,069,909
1888
17,327,393
19,784,110
4,557,401
1889
15,653,456
19,720,689
5,711,841
1890
15,443,809
17,602,093
955,577
1801
14,889,942
18,495,554
1092
4,338,492
19,161,159
22,662,359
4,796,907
1R93
21,808,117
27,373,760
7,375,808
1894
24,499,015
32,703,147
E
1895
2,647,720
22,653,271
31,622,805
1896
21,148,895
28,395,855
1897
25,000,682
31,148,340
1898
27,116,440
35,241,003
1899
33,705,073
54,305,139
1900
38,402,581
60,361,045
1901
39,524,603
63,107,177
392,936,052
629,026,3.13
11,869,140 12,930,200 1884 10,712,674 15,422,104 8,497,375 15,538,946 1888 12,540,709 11,470,800 1887 19,205,090 14,047,689 1888 20,151,050 14,439,209 1889 12,401,184 13,356,761 1890 15,975,366 20,313,858 1891 13,724,579 18,521,488 1892 11,533,357 18,909,165 1693 16,057,376 18,605,096
1894 35,885,981 25,372,022 | 10,513,959
1895 23,967,769 23,367,307
600,482 1896 24,863,014 22,075,314 2,787,700 1897 32,500,070 30,322,689 2,177,381 1898 34,939,854 27,253,392 7,686,469 1899 37,653,596 23,026,813 14,626,783
1900 34,156,600 22,897,130 11,259,470 1901 27,287,566 21,485,445 5,802,121
8 421,470,862 388,210,889 | 67,483,508 34,223,536
The average annual excess of imports over exports of treasure into the Straits during the twenty-one years ending 31st December, 1901, has been $1,583,808, or a total of $33,259,973.
12. The population of the Straits Settlements has been:
1881-
1891 -
1901 -
13. The income and expenditure Government have been:-
Year.
423,384
512,342
572,2-49
of the Straits
Revenue.
Expenditure,
The excess of exports over imports of merchandise during 21 years to 31st December, 1901, is $136,990,291. The official returns do not state whether the imports and exports of treasure are included in the above figures.
The net excess of importe over exports of merchandise into the Straits and the Federated Malay States during the 21 years ending 31st December, 1901, amounts to 8224,313,124. To this sum there is to be added the net excess of imports of treasure into the Straits during the same period, viz., $33,259,973, making a total of $257,673,097. Presumably this is incorrect. Because, if there was an actual net excess amount of importa of merchandise and treasure over exports during the 21 years of $257,573,087, how were they paid for?
15. The population of the Federated Malay States has been :-
1801
1901
418,509
678,595
1b. The income and expenditure of the Federated Malay States have been:
YEAR.
Revenue.
8
8
Expenditure.
1881
2,433,321
2,355,807
Importa,
Exports.
1882
2,465,153
2,344,548
8
$
1883
3,040,220
3,290,295
1881
1,025,753
960,790
8
8
1884
3,515,841
3,238,030
1882
1,315,220
1,299,453
1881 1882
77,521,360
71,537,944
1883
1885
2,042,138
1,952,990
80,453,559
3,508,074
79,736,229
3,593,149
1884
2,148,165
2,138,710
1883
92,773,422
93,405,741
1986
3,747,501
3,495,639
1885
2,208,709
2,261,954
1884
93,529,741
88,80-1,013
1886
1885
1887
94,521,388
84,974,276
3,847,653
2,501,041
2,266,539
3,511,006
1887
3,142,727
2,616,368
1886
100,034,246
02,051,474
1888
3,858,108
3,509,507
1898
3,657,673
3,013,943
1887
112,677,969
100,093,522
1889
1889
5,013,000
1888
126,707,937
119,700,226
4,410,620
4,091,078
3,910,194
1890
4,840,065
5,237,275
1889
133,737,536
119,862,520
1890
4,209,125
3,757,001
1891
4,572,310
5,554,800
1890
131,321,951
107,009,824
1602
1891
1891
122,161,638
3,820,583
5,347,180
5,883,407
107,284,286
4,599,199
1893
6,413,134
6,797,038
1892
120,894,595
115,728,542
1892
3,052,877
4,265,783
1894
7,511,809
7,102,396
1893
144,001,584
126,152,298
1895
1893
1894
173,468,242
3,706,308
8,481,007
7,582,553
150,028,294
3,915,482
1896
8,434,083
8,598,147
1895
174,250,537
149,607,646
1994
3,904,774
3,714,620
1897
8,296,687
8,795,313
1890
170,450,686
161,645,500
1898
1895
1897
187,699,806
4,048,360
9,364,407
11,110,042
161,044,193
3,782,456
1800
13,486,410
11,499,478
1808
213,170,693
185,054,637
1896
4,206,064
3,957,090
1900
15,609,807
12,728,930
1800
246,285,866
216,027,914
1901
1897
1900
279,933,260
4,320,207
17,541,507
230,720,215
4,129,694
17,273,158
1901
283,003,528
245,067,820
1898
5,071,282
4,587,367
TOTAL
1899
3,173,709,534
2,812,400,119
5,200,025
5,060,614
1900
5,380,557
0,030,744
1901
7,041,885
7,315,000
6819.
The excess of imports over exports during 21 yours to 31st December, 1901, is $361,303,415.
17. On the rupea basis of 1s. 4d., the equivalent gold price of silver is about 42d. per ounce. The Indian mints were closed to the free coinage of silver on 26th June, 1883, and on that date the market price of silver was 371d. per ounce. Between 371d. and 42d. the difference is about 12 per cent.
M
PUBLIC RECORD OFFICE
Reference :-
TITLC.O. 882
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7 PUBLIC RECORD OFFICE, LONDON
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