CO129-331 - Public Offices - 1905 — Page 319

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3. I shall be glad if you will inform me by telegram whether you desire that the proposal should be adopted. In the meantime I am in communication with the Lords Commissioners of the Treasury with reference to the Order in Council which will be necessary to provide for the coinage of a Straits Settlements dollar, and the making of it legal tender in the Straits Settlements, and also with reference to the design of the new coin. The enactments which will be required to make the new dollar legal tender in the Federated Malay States can be passed at a subsequent date, and as regards Johore, whose position is referred to in paragraph 9 of the Report, I shall be glad to have your opinion as to the steps which should be taken.

4. The measures referred to in paragraph 58 of the Report, for the prohibition of the import of British and Mexican dollars, and of the export of the new Straits dollars, can be taken at the proper time by an Ordinance of the Colonial Legislature, similar to Ordinance XI. of 1898, and by Enactments in the Federated Malay States.

5. Before the first shipments of dollars or silver are made to India for the purpose of being coined into new dollars it will probably be desirable to sinend "The Currency Note Ordinance, 1899," so as to provide that dollars or silver in transit to India for the purpose of being coined, and the same, whilst being coined in India, and whilst on the way back to the Colony, shall be regarded as part of the coin reserve of the Currency Commissioners.

6. I am in communication with the India Office with reference to the coinage of the new dollar in India, and am asking them to ascertain whether the Government of India will undertake the coinage, and on what terms, and also at what rate of speed the dollars can be coined. I am asking that the Government of India may be moved to com- municate direct to you the reply they return to these enquiries. I need scarcely say that though it would be desirable to secure a large supply of the new dollars as soon as possible, the coin reserve should not be unduly depleted, but a sufficient margin should be maintained to meet immediate requirements. This margin should, I consider, he not less than one-third of the Note issue.

I

7. You will observe that the Report is marked "Confidential." have no objection, however, to its publication should you consider this course desirable, as no doubt you will. On your informing me by telegram that you propose to publish it in the Colony, and on what date, steps will be taken for publishing the Report in this country by laying it before Parliament.

I bave, &c.,

Governor Sir F. Swettenham, K.C.M.G,

&c.,

&c.,

&c.

J. CHAMBERLAIN.

Lord Curzon's reply will be communicated to you at once receipt.

I have, &c.,

The Under Secretary of State,

Colonial Office.

LIONEL ABRAHAMS.

Sir,

Enclosure No. 3.

India Office to Colonial Office.

F. 2905. (Immediate and Confidential.)

India Office, 8th May 1903.

on

In continuation of the letter from this Office of the 27th of April, I am directed to inform you that the Government of India have telegraphed that they are willing to undertake the coinage of dollars for the Straits Settlements, on the following terms :-

Seigniorage to be ordinarily 2 per cent. on the sterling value of the

coins;

The coinage to be carried on at either of the Indian Mints (Calcutta or Bombay) according to the convenience of the Government of India: Should an extraordinary and unexpected demand for rupees arise,

the coinage of dollars to be suspended.

In the absence of such a demand for rupees, it is estimated that 60,000,000 dollars could be coined annually, and probably more if desired; but, if a considerable excess over this number were required, it would be necessary that the mint should work overtime and an addition of per cent. would be made to the seigniorage.

The Government of India state that their telegram has been repeated to the Governor of the Straits Settlements.

The Under Secretary of State,

Colonial Office.

Enclosure No, 4.

Colonial Office to India Office.

(Confidential and Immediato.) No. 16,723.

Sir,

I have, &c.,

A. GODLEY.

Colonial Office, Downing Street, 9th May 1903,

Sir,

Enclosure No. 2.

India Office to Colonial Office.

F. 2517, (Confidential.)

India Office, 27th April 1903.

I am directed to acknowledge the receipt of Mr. Lucas's letter No. 10340/1903 of 23rd instant, regarding the proposed introduction of a gold standard of currency in the Straits Settlements and the Federated Malay States, and in reply to forward, for the information of Mr. Secretary Chamberlain, a copy of a telegram* addressed to the Viceroy

* Dated 24th April 1903.

of India on the subject.

t

I am directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter (No. F. 2758) of the 7th instant, nclosing a copy of a letter from the Government of India relating to the agreement made on the 14th December 1894 for the coinage of British dollars in India, and of your confidential letter (No. F. 2905) of the 8th instant, stating the terms on which the Government of India are prepared to undertake the coinage of the proposed new Straits Settlements dollar.

Mr. Chamberlain has no objection to offer to the proposal of Lord George Hamilton to give notice to the Chartered Bank of India, Australia, and China, and to the Hong Kong and Shanghai Banking Corporation of the termination of the existing agreement at the end of six months, and at the same time to intimate the terms on which he is prepared to enter into a new agreement. Mr. Chamberlain is content to leave the negotiations with regard to the new agreement for the

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