CO129-279 - Public Offices - 1897 — Page 369

sufficiently to allow of the silver yen which are

current in the Straits Settlements and Malay Penin-

sular being replaced by a coin of equal intrinsic

value at a cheaper price. It is expected by the

Government that the operation of calling in the

whole of the sum may take as much as one or two

Consequently the silver yen must continue

365

to circulate for a considerable period, but the

Japanese Government do not anticipate any difficulty

on this score, as the closing of the Osaka Mint is

expected to produce similar effects to those which

followed on the similar measure adopted in India

with regard to the rupee. They will not sell silver

on the market, and have telegraphed instructions to

their Consuls in London and New York to give publici-

ty to their intention in this respect.

The foregoing is the forecast of Japanese finan-

cial authorities, but I believe there is reason to

suppose that the quantity of good silver in circu-

lating in the Straits is three times what the Japan-

ese government has calculated.

I have &c.

(Signed)

Ernest Satow,