CO885-(7-8)-2 — Page 67

COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.

No. 4.

113

PUBLIC RECORD OFFICE

6

C.O.

Reference :-

882

7 PUBLIC RECORD OFFICE, LONDON

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

3, Lloyd's Avenue,

London, E.C.

No. 3.

15th December, 1902. Sir, We beg to forward you herewith ten communi- cations® addressed to you as Secretary of the Currency Committee, stating that in the opinion of the subscribers it is absolutely essential that the Straits currency should be put on a gold basis with as little delay as possible.

We may mention that the signatures cover almost all the firms and public companies of the Straits Settle- ments represented in this country and on the Continent (bankers excepted).

Since Mr. Secretary Chamberlain appointed your Committee the question of currency has become most urgent owing to the heavy fall in the value of silver.

We respectfully request that the present papers may be brought to the notice of Sir David Barbour and his colleagues-We are, Sir, your obedient servants,

EDWD. BOUStead and Co.

Enclosure in No. 3.

34, Leadenhall Street,

London, EC.,

4th December, 1902.

A. E. Collins, Esq.,

Secretary to the Straits Settlements Currency Committee.

Dear Sir,-We shall feel obliged by your kindly in- forming Sir David Barbour and the other members of your Committee, as also the authorities at the Colonial Uffice, that, looking at the discredited position of silver, in our opinion it is absolutely essential that the Straits currency should be met on a gold basis with as little delay as possible,—We are, dear Sir,

Yours faithfully,

Edw. Boustead and Co.

The "Shell" Transport and Trading Co., Ltd., M. Samuel and Co., Managers.

The Indo-China Steam Navigation Com. pany, Limited, A. G. Wells, Secretary. Ker Bolton and Co.

G. A. Witt.

Peninsular and Oriental Steam Navigation Company, Geo. F. Johnson, Secretary, The British India Steam Navigation Co., Ltd., Duncan Mackinnon, Chairman. McGregor, Gow and Co., Glen Line. Jenkins and Co., Ltd., John J. Jenkins,

Shire Lino, Manager,

I. Henderson.

Alfred H. Drew, M.A., LL.B.

Brinkmann and Co.

Behr Bros.

A. L. Donaldson.

Huttenbach and Co.

J. Fraser.

John Burkinshaw.

• In identical terms.

↑ Dated December 9th.

International Banking Corporation, John

C. Budd, Manager. Kaltenbach and Schmidt, Arnold Otto Meyer, for his firm, Behu, Meyer and Co., Singapore and Penang. Schmidt and Kustermann, for Rautenburg, Schmidt and Co., Singapore; and Schmidt, Kustermann and Co., Penang. O. Puttfarcken, for l'uttfarcken and Co.,

Singapore.

Hugo Brauss, for his firm H. Brauss and

Co

H. Muhlinghaus, Proprietor Singapore Oil

Mills.

A. Friederichs, Attorney for Herm Jebsen,

F'enang.

Paterson and Simons.

John Little and Co., Ltd., S. R. Carr,

Managing Director.

Edward W. Pontifex, Chairman of the Pahang Corporation, Limited, and the Pahang-Kabang, Limited.

Kate Bros., Ltd., R.

Kirchburger,

Director and London Manager.

E. Dumaresq Thomas.

Eastern Mortgage and Agency Co. (1902),

Ltd., P. W. Auchincloss, Secretary. The Straite Sugar Co., Ltd.; J. Arnold,

Secretary.

The Penang Sugar Estates Co., Ltd., J.

Arnold, Secretary,

Kechau Gold Fields, Limited, W F.

Austin, Secretary.

For the London Agency Tanjong Pagar

Dock Co., Ltd., Singapore, L." Fraser, Secretary.

J. Finlayson.

Killick, Martin and Co.

Gellatly, Hankey and Co.

Geo. Mansfield.

James F. Hall, for Harris, Son and Co.

W. J. Bradley, Exors. of Wm. J. Clough-

ton, deceased.

Burgess and Co., Ltd., Swannen, J. H.

Burgess, Managing Director, Livingston and Co., for the Atlantic

Patent Fuel Co., Ltd., J. Reavin Manager and Secretary.

John R. Down and Co., for the Graigula Merthyr Co., Ltd., W. T. Farr, Director. Johnson and Burgess.

M. B. Johnson.

E. M. Pinkham, for Gellyceidrim Colly'a Co., Ltd., Thomas Griffith, Managing Director.

S. C. Johnson.

Kumpers and Co.t

A. Cadonau, of the firm of Cadonau ani

Co., Singapore.†

W. H. Diethelm, senior partner of Messrs.

Hooglandt and Co., Singapore.

A. Straess, partner, Jaeger and Co.,

Singapore.

E. J. Smith, late of Singapore and Sara-

wak.

* Dated December 12th.

bol: May,

Governor Sir F. A. Swettenham to Mr. Chamberlain

Government House, Singapore,

27th November, 1902. Sir, I have the honour to acknowledge your despatch No. 314 of the 22nd of October last, informing me of the appointment of a small Committee to enquire into and report upon the proposed establishment of a gold standard of currency in the Straits Settlements and the neighbouring Malay States.

2. I desire to thank you for so promptly complying with my suggestion, and I may say that the growing importance of this subject is evidenced day by day, and the future of this colony and the neighbouring Malay States will depend to a large extent upon the decision which must be arrived at in reference to this question of currency.

3. In order to assist the Committee, I enclose copy of

■ memorandum by Mr. G. Partile”, an Indian merchant,

th October, long resident in Singapore, together with a criticism thereon by the Honourable G. Murray, member of the Legislative Council and manager of the Singapore October, branch of the Mercantile Bank. I also enclose a copy

of a lettert which has recently been addressed by my direction to the Singapore Chamber of Commerce. I will forward a copy of the reply as soon as it is received. 1 enclose a copy of the letter which 1, as Resident- General, addressed to the High Commissioner on the 18th August, 1898, for on re-reading it I find very little to alter, and I think it is a fair description of how the currency question affects the Federated Malay States, except that some of those who formerly favoured a silver standard are now for gold, whilst those who four years stract from ago desired a gold standard are now more than ever Singapore convinced that they were right. Lastly, I enclose some Press very recent correspondencet which has appeared in the Tab. 18th, local newspapers.

sh. 22nd,

ovember.

4. I do not presume to offer an opinion on a question so difficult and complex as what standard of currency would be best to adopt in this colony and the neighbour. ing Malay States, but it seems to me that there are two points of special importance connected with the subject.

5. After hearing and reading a great deal in reference to this question, I have little doubt that the majority of those best qualified to express am opinion will advocate a change to a gold standard. As to how the change to be made very few people seem to have any clear or definite ideas, but so far as I can see at present it appears to me that this colony and the neighbouring Malay States, regarded as one Government, might have great difficulty in introducing and maintaining any change in the existing standard of currency unless they control a mint of their own. That is one point, and, if any such change as is contemplated here were carried out in Hong Kong, a Singapore Mint would serve for that colony as well. I conclude that Ceylon is bound by the arrangement it already has with the Government of India, but I see that a good deal of dissatisfaction is now being expressed in Ceylon in reference to the want of sufficient silver.

6. The second point is that Sir James Mackay's treaty with China will almost certainly lead to enormous development of the mineral riches of that country. China is known to contain immense quan- tities of silver, and when the mines are worked with Chinese cheap labour, as they probably very soon will be, the present market price of silver might fall much lower than any one has ever yet thought possible. China will probably always remain a silver-using country, but it is likely that it will not only supply its own needs in that respect, but have plenty of the white metal to meet all the requirements of the Far East, anl might even supply those countries which have hitherto provided the hundreds of millions of dollars now cir- culating from Bingapore to the most northern parts of China.

7. It seems a crude ides, but the circumstances of this colony and the Federated Malay States are such that, if it were possible, I am inclined to think thu safest plan might be to leave the currency on its present basis, and endeavour to arrive at a wider ex- tension of the principle lately adopted by Government in what is known as the sterling salary scheme.

8. It is very difficult indeed to say what is the feeling of the Eastern peoples who form the immense majority of our population on this question of currency. They are seldom, heard, and comparatively few of them even know that the question is under consideration. The largest owners of property here are the Chinese and Arabs, and the great mass of trade is done by the Chinese. They are probably content to leave matters alone, and, if a gold standard were adopted, it is difficult to say how it would be received by those who have the largest stake in the country.

9. The European employés, of every class, are the greatest sufferers by the silver currency, and to a less extent the wage earners of every class and nationality. Then come the retail dealers in all commodities which have to be paid for in gold and sold in silver, but thes protect themselves by constantly raising their silver prices to the discontent of purchasers. There would seem to be no reason why employers should not pay all their servants at sterling rates, to be converted into silver at the average exchange of the month, and the tendency to adopt this course is certainly spreading sinco it was adopted by the Government. Retail dealers could also price their goods at sterling rates, and convert them into silver at the exchange of the day. It would give a little more trouble, but nothing exces sive. In other matters of business sterling" prices would be quoted, for convenience, fixity, or as a matter of arrangement between parties, just as the Govern- ment has agreed to pay a sterling price for the steamer which is now being built in Singapore to our order.

10. An arrangement of this kind is certainly no heroic, but if the case of all European and Eurasian employés were thus fairly met, and retail dealers chose to adopt the plan I have described, I question whether there would be then any great outery, or demand for a gold standard of currency. We should keep the dollar, which is the only coin really known to natives; we should avoid all risk of an experiment which might turn out badly, and must cost a very large sum initiate. We should not dislocate trade, either in our Producera own possessions or with our neighbours. would still retain the advantages of getting in a silver market and selling where gold is the standard of cur rency, and owners of property would have no cause for complaint.

tu

11. In India it was necessary for the Government to take action in its own interests, but that is not the case here. As silver becomes cheaper more dollars will come into the Government treasuries, and the revenues will not suffer if the Government takes care to safe- guard its interests. For instance, the postage to Europe on a letter of an ounce was fixed at four cents.. which represented Id. when the dollar was worth 28. Id. The dollar is now worth 18. 9d., and if ther Government raised the postage to five cents. that is wot equal to 1d. at the present exchange. This is only one instance where the Government ought, in my opinion. to see that its sources of revenue do not suffer on account of the diminishing value of silver,

12. The newspaper correspondencet which I enclos will show how opinions vary on this question, and all those who have already spoken or written are Europeans. The great mass of the population, traders. shipowners, native bankers

and money lenders, planters, miners, and others have said nothing yet The reason is, as I have said, that they do not realis what is "in the air." The very fact that they hav hitherto been silent shows, I think, that they have no strong feeling of dissatisfaction with the existing cur- rency, and I am inclined to think that if even tha traders, landowners and small capitalists were ran- vassed a very large majority would say they wanted no change. The labouring classes would almost certainly be of that opinion. On the other hand, all Europea wage-earners and some heads of mercantile firms and other businesses under European management. the Eurasians, natives of India and Ceylon, and all others who are strangers here, and whom homes are in 8 country with a gold standard would like to see such a standard of curruncy adopted he

I have, etc..

The Right Honourable

Joseph Chamberlain, M.P.

F. A. SWETTENHAM,

• Not printed.—See Mr. Pertile's Memo, laid before the Committee, Appendix No 4 (p. 67). + Not printed.